101
‘‘(B) the Board of Governors shall approve 
any such request if the Board certifies, for the 
annual appraisal period involved, that the per-
formance appraisal system for affected officers 
and employees of the Postal Service (as de-
signed and applied) makes meaningful distinc-
tions based on relative performance. 
‘‘(3) REVOCATION AUTHORITY.—If the Board 
of Governors of the Postal Service finds that a per-
formance appraisal system previously approved 
under paragraph (2)(B) does not (as designed and 
applied) make meaningful distinctions based on rel-
ative performance, the Board may revoke or suspend 
the authority of the Postal Service to continue a pro-
gram approved under paragraph (2) until such time 
as appropriate corrective measures have, in the judg-
ment of the Board, been taken. 
‘‘(c) EXCEPTIONS FOR CRITICAL POSITIONS.—Not-
withstanding any other provision of law, the Board of Gov-
ernors may allow up to 12 officers or employees of the 
Postal Service in critical senior executive or equivalent po-
sitions to receive total compensation in an amount not to 
exceed 120 percent of the total annual compensation pay-
able to the Vice President under section 104 of title 3 as 
of the end of the calendar year in which such payment
102
is received. For each exception made under this sub-
section, the Board shall provide written notification to the 
Director of the Office of Personnel Management and the 
Congress within 30 days after the payment is made setting 
forth the name of the officer or employee involved, the 
critical nature of his or her duties and responsibilities, and 
the basis for determining that such payment is warranted. 
‘‘(d) INFORMATION FOR INCLUSION IN COMPREHEN-
SIVE STATEMENT.—Included in its comprehensive state-
ment under section 2401(e) for any period shall be— 
‘‘(1) the name of each person receiving a bonus 
or other payment during such period which would 
not have been allowable but for the provisions of 
subsection (b) or (c); 
‘‘(2) the amount of the bonus or other payment; 
and 
‘‘(3) the amount by which the limitation set 
forth in the last sentence of section 1003(a) was ex-
ceeded as a result of such bonus or other payment. 
‘‘(e) REGULATIONS.—The Board of Governors may 
prescribe regulations for the administration of this sec-
tion.’’.
103
TITLE VI—ENHANCED 
REGULATORY COMMISSION 
SEC. 601. REORGANIZATION AND MODIFICATION OF CER-
TAIN PROVISIONS RELATING TO THE POSTAL 
REGULATORY COMMISSION. 
(a) TRANSFER
AND
REDESIGNATION.—Title 39, 
United States Code, is amended—
(1) by inserting after chapter 4 the following: 
‘‘CHAPTER 5—POSTAL REGULATORY 
COMMISSION
‘‘Sec. 
‘‘501. Establishment. 
‘‘502. Commissioners. 
‘‘503. Rules; regulations; procedures. 
‘‘504. Administration. 
‘‘505. Officer of the Postal Regulatory Commission representing the general 
public.
‘‘§ 501. Establishment 
‘‘The Postal Regulatory Commission is an inde-
pendent establishment of the executive branch of the Gov-
ernment of the United States. 
‘‘§ 502. Commissioners 
‘‘(a) The Postal Regulatory Commission is composed 
of 5 Commissioners, appointed by the President, by and 
with the advice and consent of the Senate. The Commis-
sioners shall be chosen solely on the basis of their technical 
qualifications, professional standing, and demonstrated 
expertise in economics, accounting, law, or public adminis-
tration, and may be removed by the President only for
104
cause. Each individual appointed to the Commission shall 
have the qualifications and expertise necessary to carry 
out the enhanced responsibilities accorded Commissioners 
under the Postal Accountability and Enhancement Act. 
Not more than 3 of the Commissioners may be adherents 
of the same political party. 
‘‘(b) No Commissioner shall be financially interested 
in any enterprise in the private sector of the economy en-
gaged in the delivery of mail matter. 
‘‘(c) A Commissioner may continue to serve after the 
expiration of his term until his successor has qualified, 
except that a Commissioner may not so continue to serve 
for more than 1 year after the date upon which his term 
otherwise would expire under subsection (f). 
‘‘(d) One of the Commissioners shall be designated 
as Chairman by, and shall serve in the position of Chair-
man at the pleasure of, the President. 
‘‘(e) The Commissioners shall by majority vote des-
ignate a Vice Chairman of the Commission. The Vice 
Chairman shall act as Chairman of the Commission in the 
absence of the Chairman. 
‘‘(f) The Commissioners shall serve for terms of 6 
years.’’; 
(2) by striking, in subchapter I of chapter 36 
(as in effect before the amendment made by section
105
201(c)), the heading for such subchapter I and all 
that follows through section 3602; 
(3) by redesignating sections 3603 and 3604 as 
sections 503 and 504, respectively, and transferring 
such sections to the end of chapter 5 (as inserted by 
paragraph (1)); and 
(4) by adding after such section 504 the fol-
lowing: 
‘‘§ 505. Officer of the Postal Regulatory Commission 
representing the general public 
‘‘The Postal Regulatory Commission shall designate 
an officer of the Postal Regulatory Commission in all pub-
lic proceedings (such as developing rules, regulations, and 
procedures) who shall represent the interests of the gen-
eral public.’’. 
(b) APPLICABILITY.—The amendment made by sub-
section (a)(1) shall not affect the appointment or tenure 
of any person serving as a Commissioner on the Postal 
Regulatory Commission (as so redesignated by section 
604) under an appointment made before the date of enact-
ment of this Act or any nomination made before that date, 
but, when any such office becomes vacant, the appoint-
ment of any person to fill that office shall be made in ac-
cordance with such amendment.
106
(c) CLERICAL AMENDMENT.—The analysis for part 
I of title 39, United States Code, is amended by inserting 
after the item relating to chapter 4 the following:
‘‘5. Postal Regulatory Commission .............................
501’’
SEC. 602. AUTHORITY FOR POSTAL REGULATORY COMMIS-
SION TO ISSUE SUBPOENAS. 
Section 504 of title 39, United States Code (as so 
redesignated by section 601) is amended by adding at the 
end the following: 
‘‘(f)(1) Any Commissioner of the Postal Regulatory 
Commission, any administrative law judge appointed by 
the Commission under section 3105 of title 5, and any 
employee of the Commission designated by the Commis-
sion may administer oaths, examine witnesses, take depo-
sitions, and receive evidence. 
‘‘(2) The Chairman of the Commission, any Commis-
sioner designated by the Chairman, and any administra-
tive law judge appointed by the Commission under section 
3105 of title 5 may, with respect to any proceeding con-
ducted by the Commission under this title or to obtain 
information to be used to prepare a report under this 
title—
‘‘(A) issue subpoenas requiring the attendance 
and presentation of testimony by, or the production 
of documentary or other evidence in the possession 
of, any covered person; and
107
‘‘(B) order the taking of depositions and re-
sponses to written interrogatories by a covered per-
son. 
The written concurrence of a majority of the Commis-
sioners then holding office shall, with respect to each sub-
poena under subparagraph (A), be required in advance of 
its issuance. 
‘‘(3) In the case of contumacy or failure to obey a 
subpoena issued under this subsection, upon application 
by the Commission, the district court of the United States 
for the district in which the person to whom the subpoena 
is addressed resides or is served may issue an order requir-
ing such person to appear at any designated place to tes-
tify or produce documentary or other evidence. Any failure 
to obey the order of the court may be punished by the 
court as a contempt thereof. 
‘‘(4) For purposes of this subsection, the term ‘cov-
ered person’ means an officer, employee, agent, or con-
tractor of the Postal Service. 
‘‘(g)(1) If the Postal Service determines that any doc-
ument or other matter it provides to the Postal Regulatory 
Commission under a subpoena issued under subsection (f), 
or otherwise at the request of the Commission in connec-
tion with any proceeding or other purpose under this title, 
contains information which is described in section 410(c)
108
of this title, or exempt from public disclosure under sec-
tion 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 rea-
sons therefor). 
‘‘(2) Except as provided in paragraph (3), no officer 
or employee of the Commission may, with respect to any 
information as to which the Commission 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)(A) Paragraph (2) shall not prohibit the 
Commission from publicly disclosing relevant infor-
mation in furtherance of its duties under this title, 
provided that the Commission has adopted regula-
tions under section 553 of title 5, that establish a 
procedure for according appropriate confidentiality 
to information identified by the Postal Service under 
paragraph (1). In determining the appropriate de-
gree of confidentiality to be accorded information 
identified by the Postal Service under paragraph (1), 
the Commission shall balance the nature and extent
109
of the likely commercial injury to the Postal Service 
against the public interest in maintaining the finan-
cial transparency of a government establishment 
competing in commercial markets. 
‘‘(B) Paragraph (2) shall not prevent the Com-
mission from requiring production of information in 
the course of any discovery procedure established in 
connection with a proceeding under this title. The 
Commission shall, by regulations based on rule 26(c) 
of the Federal Rules of Civil Procedure, establish 
procedures for ensuring appropriate confidentiality 
for information furnished to any party.’’. 
SEC. 603. AUTHORIZATION OF APPROPRIATIONS FROM THE 
POSTAL SERVICE FUND. 
(a) POSTAL REGULATORY COMMISSION.—Subsection 
(d) of section 504 of title 39, United States Code (as so 
redesignated by section 601) is amended to read as fol-
lows: 
‘‘(d) There are authorized to be appropriated, out of 
the Postal Service Fund, such sums as may be necessary 
for the Postal Regulatory Commission. In requesting an 
appropriation under this subsection for a fiscal year, the 
Commission shall prepare and submit to the Congress 
under section 2009 a budget of the Commission’s ex-
110
penses, including expenses for facilities, supplies, com-
pensation, and employee benefits.’’. 
(b) OFFICE
OF
INSPECTOR
GENERAL
OF
THE 
UNITED STATES POSTAL SERVICE.—Section 8G(f) of the 
Inspector General Act of 1978 (5 U.S.C. App.) is amend-
ed—
(1) by redesignating paragraph (4) as para-
graph (5); 
(2) by redesignating the second paragraph (3) 
(relating to employees and labor organizations) as 
paragraph (4); and 
(3) by adding at the end the following: 
‘‘(6) There are authorized to be appropriated, 
out of the Postal Service Fund, such sums as may 
be necessary for the Office of Inspector General of 
the United States Postal Service.’’. 
(c) BUDGET PROGRAM.—
(1) IN GENERAL.—The next to last sentence of 
section 2009 of title 39, United States Code, is 
amended to read as follows: ‘‘The budget program 
shall also include separate statements of the 
amounts which (1) the Postal Service requests to be 
appropriated under subsections (b) and (c) of section 
2401, (2) the Office of Inspector General of the 
United States Postal Service requests to be appro-
111
priated, out of the Postal Service Fund, under sec-
tion 8G(f) of the Inspector General Act of 1978, and 
(3) the Postal Regulatory Commission requests to be 
appropriated, out of the Postal Service Fund, under 
section 504(d) of this title.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
2003(e)(1) of title 39, United States Code, is 
amended by striking the first sentence and inserting 
the following: ‘‘The Fund shall be available for the 
payment of (A) all expenses incurred by the Postal 
Service in carrying out its functions as provided by 
law, subject to the same limitation as set forth in 
the parenthetical matter under subsection (a); (B) 
all expenses of the Postal Regulatory Commission, 
subject to the availability of amounts appropriated 
under section 504(d); and (C) all expenses of the Of-
fice of Inspector General, subject to the availability 
of amounts appropriated under section 8G(f) of the 
Inspector General Act of 1978.’’. 
(d) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by 
this section shall apply with respect to fiscal years 
beginning on or after October 1, 2008. 
(2) SAVINGS
PROVISION.—The provisions of 
title 39, United States Code, and the Inspector Gen-
112
eral Act of 1978 (5 U.S.C. App.) that are amended 
by this section shall, for purposes of any fiscal year 
before the first fiscal year to which the amendments 
made by this section apply, continue to apply in the 
same way as if this section had never been enacted. 
SEC. 604. REDESIGNATION OF THE POSTAL RATE COMMIS-
SION. 
(a) AMENDMENTS TO TITLE 39, UNITED STATES 
CODE.—Title 39, United States Code, is amended in sec-
tions 404, 503 and 504 (as so redesignated by section 
601), 1001 and 1002, by striking ‘‘Postal Rate Commis-
sion’’ each place it appears and inserting ‘‘Postal Regu-
latory Commission’’; 
(b) AMENDMENTS
TO TITLE 5, UNITED STATES 
CODE.—Title 5, United States Code, is amended in sec-
tions 104(1), 306(f), 2104(b), 3371(3), 5314 (in the item 
relating to Chairman, Postal Rate Commission), 5315 (in 
the item relating to Members, Postal Rate Commission), 
5514(a)(5)(B), 
7342(a)(1)(A), 
7511(a)(1)(B)(ii), 
8402(c)(1), 8423(b)(1)(B), and 8474(c)(4) by striking 
‘‘Postal Rate Commission’’ and inserting ‘‘Postal Regu-
latory Commission’’. 
(c) AMENDMENT TO THE ETHICS IN GOVERNMENT 
ACT OF 1978.—Section 101(f)(6) of the Ethics in Govern-
ment Act of 1978 (5 U.S.C. App.) is amended by striking
113
‘‘Postal Rate Commission’’ and inserting ‘‘Postal Regu-
latory Commission’’. 
(d) AMENDMENT TO THE REHABILITATION ACT OF 
1973.—Section 501(b) of the Rehabilitation Act of 1973 
(29 U.S.C. 791(b)) is amended by striking ‘‘Postal Rate 
Office’’ and inserting ‘‘Postal Regulatory Commission’’. 
(e) AMENDMENT
TO TITLE 44, UNITED STATES 
CODE.—Section 3502(5) of title 44, United States Code, 
is amended by striking ‘‘Postal Rate Commission’’ and in-
serting ‘‘Postal Regulatory Commission’’. 
(f) OTHER REFERENCES.—Whenever a reference is 
made in any provision of law (other than this Act or a 
provision of law amended by this Act), regulation, rule, 
document, or other record of the United States to the 
Postal Rate Commission, such reference shall be consid-
ered a reference to the Postal Regulatory Commission. 
SEC. 605. INSPECTOR GENERAL OF THE POSTAL REGU-
LATORY COMMISSION. 
(a) IN GENERAL.—Section 8G(a)(2) of the Inspector 
General Act of 1978 is amended by inserting ‘‘the Postal 
Regulatory Commission,’’ after ‘‘the United States Inter-
national Trade Commission,’’. 
(b) ADMINISTRATION.—Section 504 of title 39, 
United States Code (as so redesignated by section 601)
114
is amended by adding after subsection (g) (as added by 
section 602) the following: 
‘‘(h)(1) Notwithstanding any other provision of this 
title or of the Inspector General Act of 1978, the authority 
to select, appoint, and employ officers and employees of 
the Office of Inspector General of the Postal Regulatory 
Commission, and to obtain any temporary or intermittent 
services of experts or consultants (or an organization of 
experts or consultants) for such Office, shall reside with 
the Inspector General of the Postal Regulatory Commis-
sion. 
‘‘(2) Except as provided in paragraph (1), any exer-
cise of authority under this subsection shall, to the extent 
practicable, be in conformance with the applicable laws 
and regulations that govern selections, appointments, and 
employment, and the obtaining of any such temporary or 
intermittent services, within the Postal Regulatory Com-
mission.’’. 
(c) DEADLINE.—No later than 180 days after the 
date of the enactment of this Act—
(1) the first Inspector General of the Postal 
Regulatory Commission shall be appointed; and 
(2) the Office of Inspector General of the Post-
al Regulatory Commission shall be established.
115
TITLE VII—EVALUATIONS 
SEC. 701. ASSESSMENTS OF RATEMAKING, CLASSIFICA-
TION, AND OTHER PROVISIONS. 
(a) IN GENERAL.—The Postal Regulatory Commis-
sion shall, at least every 5 years, submit a report to the 
President and Congress concerning—
(1) the operation of the amendments made by 
this Act; and 
(2) recommendations for any legislation or 
other measures necessary to improve the effective-
ness or efficiency of the postal laws of the United 
States. 
(b) POSTAL SERVICE VIEWS.—A report under this 
section shall be submitted only after reasonable oppor-
tunity has been afforded to the Postal Service to review 
the report and to submit written comments on the report. 
Any comments timely received from the Postal Service 
under the preceding sentence shall be attached to the re-
port submitted under subsection (a). 
SEC. 702. REPORT ON UNIVERSAL POSTAL SERVICE AND 
THE POSTAL MONOPOLY. 
(a) REPORT BY THE POSTAL REGULATORY COMMIS-
SION.—
(1) IN GENERAL.—Not later than 24 months 
after the date of enactment of this Act, the Postal
116
Regulatory Commission shall submit a report to the 
President and Congress on universal postal service 
and the postal monopoly in the United States (in 
this section referred to as ‘‘universal service and the 
postal monopoly’’), including the monopoly on the 
delivery of mail and on access to mailboxes. 
(2) CONTENTS.—The report under this sub-
section shall include—
(A) a comprehensive review of the history 
and development of universal service and the 
postal monopoly, including how the scope and 
standards of universal service and the postal 
monopoly have evolved over time for the Nation 
and its urban and rural areas; 
(B) the scope and standards of universal 
service and the postal monopoly provided under 
current law (including sections 101 and 403 of 
title 39, United States Code), and current 
rules, regulations, policy statements, and prac-
tices of the Postal Service; 
(C) a description of any geographic areas, 
populations, communities (including both urban 
and rural communities), organizations, or other 
groups or entities not currently covered by uni-
versal service or that are covered but that are
117
receiving services deficient in scope or quality 
or both; and 
(D) the scope and standards of universal 
service and the postal monopoly likely to be re-
quired in the future in order to meet the needs 
and expectations of the United States public, 
including all types of mail users, based on dis-
cussion of such assumptions, alternative sets of 
assumptions, and analyses as the Postal Service 
considers plausible. 
(b) RECOMMENDED CHANGES TO UNIVERSAL SERV-
ICE AND THE MONOPOLY.—The Postal Regulatory Com-
mission shall include in the report under subsection (a), 
and in all reports submitted under section 701 of this 
Act—
(1) any recommended changes to universal serv-
ice and the postal monopoly as the Commission con-
siders appropriate, including changes that the Com-
mission may implement under current law and 
changes that would require changes to current law, 
with estimated effects of the recommendations on 
the service, financial condition, rates, and security of 
mail provided by the Postal Service; 
(2) with respect to each recommended change 
described under paragraph (1)—
118
(A) an estimate of the costs of the Postal 
Service attributable to the obligation to provide 
universal service under current law; and 
(B) an analysis of the likely benefit of the 
current postal monopoly to the ability of the 
Postal Service to sustain the current scope and 
standards of universal service, including esti-
mates of the financial benefit of the postal mo-
nopoly to the extent practicable, under current 
law; and 
(3) such additional topics and recommendations 
as the Commission considers appropriate, with esti-
mated effects of the recommendations on the service, 
financial condition, rates, and the security of mail 
provided by the Postal Service. 
(c) CONSULTATION.—In preparing the report re-
quired by this section, the Postal Regulatory Commis-
sion— 
(1) shall solicit written comments from the 
Postal Service and consult with the Postal Service 
and other Federal agencies, users of the mails, en-
terprises in the private sector engaged in the deliv-
ery of the mail, and the general public; and 
(2) shall address in the report any written com-
ments received under this section.
119
(d) CLARIFYING PROVISION.—Nothing in this section 
shall be considered to relate to any services that are not 
postal services within the meaning of section 102 of title 
39, United States Code, as amended by section 101 of this 
Act. 
SEC. 703. STUDY ON EQUAL APPLICATION OF LAWS TO 
COMPETITIVE PRODUCTS. 
(a) IN GENERAL.—The Federal Trade Commission 
shall prepare and submit to the President and Congress, 
and to the Postal Regulatory Commission, within 1 year 
after the date of enactment of this Act, a comprehensive 
report identifying Federal and State laws that apply dif-
ferently to the United States Postal Service with respect 
to the competitive category of mail (within the meaning 
of section 102 of title 39, United States Code, as amended 
by section 101) and to private companies providing similar 
products. 
(b) RECOMMENDATIONS.—The Federal Trade Com-
mission shall include such recommendations as it con-
siders appropriate for bringing such legal differences to 
an end, and in the interim, to account under section 3633 
of title 39, United States Code (as added by this Act), 
for the net economic effects provided by those laws. 
(c) CONSULTATION.—In preparing its report, the 
Federal Trade Commission shall consult with the United
120
States Postal Service, the Postal Regulatory Commission, 
other Federal agencies, mailers, private companies that 
provide delivery services, and the general public, and shall 
append to such report any written comments received 
under this subsection. 
(d) COMPETITIVE
PRODUCT
REGULATION.—The 
Postal Regulatory Commission shall take into account the 
recommendations of the Federal Trade Commission, and 
subsequent events that affect the continuing validity of the 
estimate of the net economic effect, in promulgating or 
revising the regulations required under section 3633 of 
title 39, United States Code. 
SEC. 704. REPORT ON POSTAL WORKPLACE SAFETY AND 
WORKPLACE-RELATED INJURIES. 
(a) REPORT BY THE INSPECTOR GENERAL.—
(1) IN
GENERAL.—Not later than 6 months 
after the enactment of this Act, the Inspector Gen-
eral of the United States Postal Service shall submit 
a report to Congress and the Postal Service that—
(A) details and assesses any progress the 
Postal Service has made in improving workplace 
safety and reducing workplace-related injuries 
nationwide; and