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‘‘(III) shall use the unused rate
adjustment authority from the earliest
year such authority first occurred and
then each following year; and
‘‘(IV) for any class or service,
may not exceed the annual limitation
under paragraph (1) by more than 2
percentage points.
‘‘(e) WORKSHARE DISCOUNTS.—
‘‘(1) DEFINITION.—In this subsection, 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 Regulatory Commission under subsection (a).
‘‘(2) REGULATIONS.—As part of the regulations
established under subsection (a), the Postal Regu-
latory Commission shall establish rules for workshare
discounts that ensure that such discounts do not ex-
ceed the cost that the Postal Service avoids as a result
of workshare activity, unless—
‘‘(A) the discount is—
‘‘(i) associated with a new postal serv-
ice, a change to an existing postal service,
or with a new workshare initiative related
to an existing postal service; and
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‘‘(ii) necessary to induce mailer behav-
ior that furthers the economically efficient
operation of the Postal Service and the por-
tion of the discount 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;
‘‘(B) a reduction in the discount would—
‘‘(i) lead to a loss of volume in the af-
fected category or subclass of mail and re-
duce the aggregate contribution to the insti-
tutional 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 reduced to costs
avoided;
‘‘(ii) result in a further increase in the
rates paid by mailers not able to take ad-
vantage of the discount; or
‘‘(iii) impede the efficient operation of
the Postal Service;
‘‘(C) the amount of the discount above costs
avoided—
‘‘(i) is necessary to mitigate rate shock;
and
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‘‘(ii) will be phased out over time; or
‘‘(D) the discount is provided in connection
with subclasses of mail consisting exclusively of
mail matter of educational, cultural, scientific,
or informational value.
‘‘(3) REPORT.—Whenever the Postal Service es-
tablishes or maintains a workshare discount, the Post-
al Service shall, at the time it publishes the workshare
discount rate, submit to the Postal Regulatory Com-
mission a detailed report that—
‘‘(A) explains the Postal Service’s reasons
for establishing or maintaining the rate;
‘‘(B) sets forth the data, economic analyses,
and other information relied on by the Postal
Service to justify the rate; and
‘‘(C) certifies that the discount will not ad-
versely affect rates or services provided to users
of postal services who do not take advantage of
the discount rate.
‘‘(f) TRANSITION RULE.—For the 1-year period begin-
ning on the date of enactment of this section, rates and
classes for market-dominant products shall remain subject
to modification in accordance with the provisions of this
chapter and section 407, as such provisions were last in
effect before the date of enactment of this section. Pro-
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ceedings initiated to consider a request for a recommended
decision filed by the Postal Service during that 1-year pe-
riod shall be completed in accordance with subchapter II
of chapter 36 of this title and implementing regulations,
as in effect before the date of enactment of this section.’’.
(b) REPEALED SECTIONS.—Sections 3623, 3624, 3625,
and 3628 of title 39, United States Code, are repealed.
(c) REDESIGNATION.—Chapter 36 of title 39, United
States Code (as in effect after the amendment made by sec-
tion 601, but before the amendment made by section 202)
is amended by striking the heading for subchapter II and
inserting the following:
‘‘SUBCHAPTER I—PROVISIONS RELATING TO
MARKET-DOMINANT PRODUCTS’’.
SEC. 202. PROVISIONS RELATING TO COMPETITIVE PROD-
UCTS.
Chapter 36 of title 39, United States Code, is amended
by inserting after section 3629 the following:
‘‘SUBCHAPTER II—PROVISIONS RELATING TO
COMPETITIVE PRODUCTS
‘‘§ 3631. Applicability; definitions and updates
‘‘(a) APPLICABILITY.—This subchapter shall apply
with respect to—
‘‘(1) priority mail;
‘‘(2) expedited mail;
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‘‘(3) bulk parcel post;
‘‘(4) bulk international mail; and
‘‘(5) mailgrams;
subject to subsection (d) and any changes the Postal Regu-
latory Commission may make under section 3642.
‘‘(b) DEFINITION.—For purposes of this subchapter,
the term ‘costs attributable’, as used with respect to a prod-
uct, means the direct and indirect postal costs attributable
to such product through reliably identified causal relation-
ships.
‘‘(c) RULE OF CONSTRUCTION.—Mail matter referred
to in subsection (a) shall, for purposes of this subchapter,
be considered to have the meaning given to such mail matter
under the mail classification schedule.
‘‘(d) LIMITATION.—Notwithstanding any other provi-
sion of this section, nothing in this subchapter shall be con-
sidered to apply with respect to any product then currently
in the market-dominant category of mail.
‘‘§ 3632. Action of the Governors
‘‘(a) AUTHORITY TO ESTABLISH RATES AND CLASS-
ES.—The Governors, with the written concurrence of a ma-
jority of all of the Governors then holding office, shall estab-
lish rates and classes for products in the competitive cat-
egory of mail in accordance with the requirements of this
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subchapter and regulations promulgated under section
3633.
‘‘(b) PROCEDURES.—
‘‘(1) IN GENERAL.—Rates and classes shall be es-
tablished in writing, complete with a statement of ex-
planation and justification, and the date as of which
each such rate or class takes effect.
‘‘(2) PUBLIC
NOTICE; REVIEW; AND
COMPLI-
ANCE.—Not later than 30 days before the date of im-
plementation of any adjustment in rates under this
section—
‘‘(A) the Governors shall provide public no-
tice of the adjustment and an opportunity for re-
view by the Postal Regulatory Commission;
‘‘(B) the Postal Regulatory Commission
shall notify the Governors of any noncompliance
of the adjustment with section 3633; and
‘‘(C) the Governors shall respond to the no-
tice provided under subparagraph (B) and de-
scribe the actions to be taken to comply with sec-
tion 3633.
‘‘(c) TRANSITION RULE.—Until regulations under sec-
tion 3633 first take effect, rates and classes for competitive
products shall remain subject to modification in accordance
with the provisions of this chapter and section 407, as such
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provisions were as last in effect before the date of enactment
of this section.
‘‘§ 3633. Provisions applicable to rates for competitive
products
‘‘(a) IN GENERAL.—The Postal Regulatory Commis-
sion shall, within 180 days after the date of enactment of
this section, promulgate (and may from time to time there-
after revise) regulations to—
‘‘(1) prohibit the subsidization of competitive
products by market-dominant products;
‘‘(2) ensure that each competitive product covers
its costs attributable; and
‘‘(3) ensure that all competitive products collec-
tively cover their share of the institutional costs of the
Postal Service.
‘‘(b) REVIEW
OF
MINIMUM
CONTRIBUTION.—Five
years after the date of enactment of this section, and every
5 years thereafter, the Postal Regulatory Commission shall
conduct a review to determine whether the institutional
costs contribution requirement under subsection (a)(3)
should be retained in its current form, modified, or elimi-
nated. In making its determination, the Commission shall
consider all relevant circumstances, including the pre-
vailing competitive conditions in the market, and the degree
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to which any costs are uniquely or disproportionately asso-
ciated with any competitive products.’’.
SEC. 203. PROVISIONS RELATING TO EXPERIMENTAL AND
NEW PRODUCTS.
Subchapter III of chapter 36 of title 39, United States
Code, is amended to read as follows:
‘‘SUBCHAPTER III—PROVISIONS RELATING TO
EXPERIMENTAL AND NEW PRODUCTS
‘‘§ 3641. Market tests of experimental products
‘‘(a) AUTHORITY.—
‘‘(1) IN GENERAL.—The Postal Service may con-
duct market tests of experimental products in accord-
ance with this section.
‘‘(2) PROVISIONS WAIVED.—A product shall not,
while it is being tested under this section, be subject
to the requirements of sections 3622, 3633, or 3642,
or regulations promulgated under those sections.
‘‘(b) CONDITIONS.—A product may not be tested under
this section unless it satisfies each of the following:
‘‘(1) SIGNIFICANTLY DIFFERENT PRODUCT.—The
product is, from the viewpoint of the mail users, sig-
nificantly different from all products offered by the
Postal Service within the 2-year period preceding the
start of the test.
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‘‘(2) MARKET DISRUPTION.—The introduction or
continued offering of the product will not create an
unfair or otherwise inappropriate competitive advan-
tage for the Postal Service or any mailer, particularly
in regard to small business concerns (as defined under
subsection (h)).
‘‘(3) CORRECT
CATEGORIZATION.—The Postal
Service identifies the product, for the purpose of a test
under this section, as either market-dominant or com-
petitive, consistent with the criteria under section
3642(b)(1). Costs and revenues attributable to a prod-
uct identified as competitive shall be included in any
determination under section 3633(3)(relating to pro-
visions applicable to competitive products collec-
tively). Any test that solely affects products currently
classified as competitive, or which provides services
ancillary to only competitive products, shall be pre-
sumed to be in the competitive product category with-
out regard to whether a similar ancillary product ex-
ists for market-dominant products.
‘‘(c) NOTICE.—
‘‘(1) IN GENERAL.—At least 30 days before initi-
ating a market test under this section, the Postal
Service shall file with the Postal Regulatory Commis-
sion and publish in the Federal Register a notice—
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‘‘(A) setting out the basis for the Postal
Service’s determination that the market test is
covered by this section; and
‘‘(B) describing the nature and scope of the
market test.
‘‘(2) SAFEGUARDS.—For a competitive experi-
mental product, the provisions of section 504(g) shall
be available with respect to any information required
to be filed under paragraph (1) to the same extent
and in the same manner as in the case of any matter
described in section 504(g)(1). Nothing in paragraph
(1) shall be considered to permit or require the publi-
cation of any information as to which confidential
treatment is accorded under the preceding sentence
(subject to the same exception as set forth in section
504(g)(3)).
‘‘(d) DURATION.—
‘‘(1) IN GENERAL.—A market test of a product
under this section may be conducted over a period of
not to exceed 24 months.
‘‘(2) EXTENSION
AUTHORITY.—If necessary in
order to determine the feasibility or desirability of a
product being tested under this section, the Postal
Regulatory Commission may, upon written applica-
tion of the Postal Service (filed not later than 60 days
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before the date as of which the testing of such product
would otherwise be scheduled to terminate under
paragraph (1)), extend the testing of such product for
not to exceed an additional 12 months.
‘‘(e) DOLLAR-AMOUNT LIMITATION.—
‘‘(1) IN GENERAL.—A product may only be test-
ed under this section if the total revenues that are an-
ticipated, or in fact received, by the Postal Service
from such product do not exceed $10,000,000 in any
year, subject to paragraph (2) and subsection (g).
‘‘(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
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‘‘(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 to meet 1 or more of the requirements of
this section, it may order the cancellation of the test in-
volved or take such other action as it considers appropriate.
A determination under this subsection shall be made in ac-
cordance 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
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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 sub-
stantial business to other firms offering similar prod-
ucts. The competitive category of products shall con-
sist of all other products.
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‘‘(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
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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 under section 3633. The provisions of section
504(g) shall be available with respect to any informa-
tion 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
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previous lists (including the lists under sections 3621
and 3631) are superseded, and shall be published in
the Federal Register.
‘‘(e) PROHIBITION.—Except as provided in section
3641, no product that involves the physical delivery of let-
ters, printed matter, or 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)
either—
‘‘(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—
(1) by striking the heading for subchapter IV
and inserting the following:
‘‘SUBCHAPTER V—POSTAL SERVICES,
COMPLAINTS, AND JUDICIAL REVIEW’’; and
(2) by striking the heading for subchapter V and
inserting the following:
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‘‘SUBCHAPTER VI—GENERAL’’.
(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, 3633, and
3691.
‘‘(b) 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, RATES, AND SERVICE.—Ex-
cept as provided 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 to the report as the
Commission may require under subsection (e))—
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‘‘(1) which shall analyze costs, revenues, rates,
and quality of service in sufficient detail to dem-
onstrate that all products during such year complied
with all applicable requirements of this title; and
‘‘(2) which shall, for each market-dominant
product provided in such year, provide—
‘‘(A) product information, including mail
volumes; and
‘‘(B) measures of the service afforded by the
Postal Service in connection with such product,
including—
‘‘(i) the level of service (described in
terms of speed of delivery and reliability)
provided; and
‘‘(ii) the degree of customer satisfaction
with the service provided.
Before submitting a report under this subsection (in-
cluding any annex to the report and the information
required under subsection (b)), the Postal Service
shall have the information contained in such report
(and annex) audited by the Inspector General. The re-
sults of any such audit shall be submitted along with
the report to which it pertains.
‘‘(b) INFORMATION RELATING TO WORKSHARE DIS-
COUNTS.—The Postal Service shall include, in each report
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under subsection (a), the following information with respect
to each market-dominant product for which a workshare
discount was in effect during the period covered by such
report:
‘‘(1) The per-item cost avoided by the Postal
Service by virtue of such discount.
‘‘(2) The percentage of such per-item cost avoided
that the per-item workshare discount represents.
‘‘(3) The per-item contribution made to institu-
tional costs.
‘‘(c) SERVICE AGREEMENTS AND MARKET TESTS.—In
carrying out subsections (a) and (b) with respect to service
agreements and experimental products offered through mar-
ket tests under section 3641 in a year, the Postal Service—
‘‘(1) may report summary data on the costs, rev-
enues, and quality of service by service agreement and
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.
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‘‘(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 to the report) to be
provided by the Postal Service under this section. In
carrying out this subsection, the Commission shall
give due consideration to—
‘‘(A) providing the public with timely, ade-
quate information 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—
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‘‘(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) such 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 under subsection (d) contains information
which is described in section 410(c) of this title, or ex-
empt from public disclosure under section 552(b) of
title 5, the Postal Service shall, at the time of pro-
viding such matter to the Commission, notify the
Commission of its determination, in writing, and de-
scribe 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-
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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 the Postal Service is required to make
under this section in a year, copies of its then most recent—
‘‘(1) comprehensive statement under section
2401(e);
‘‘(2) strategic plan under section 2802;
‘‘(3) performance plan under section 2803; and
‘‘(4) 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-
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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);
or
‘‘(2) whether any service standards in effect dur-
ing such year were not met.
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 any appropriate remedial action authorized
by section 3662(c).
‘‘(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 under para-
graphs (1) and (2) of subsection (b)) during the year to
which such determination relates.’’.
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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.—Any interested party (including
an officer of the Postal Regulatory Commission representing
the interests of the general public) who believes the Postal
Service is not operating in conformance with the require-
ments of the provisions of chapter 1 (except section 101(c)),
sections 401, 403, 404, 404a, 601, or this chapter (or regula-
tions promulgated under any of those provisions) may lodge
a complaint 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)—
‘‘(A) either—
‘‘(i) upon a finding that such com-
plaint raises substantial and material
issues of fact or law, begin proceedings on
such complaint; or
‘‘(ii) issue an order dismissing the
complaint; and
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‘‘(B) with respect to any action taken under
subparagraph (A) (i) or (ii), issue a written
statement setting forth the bases of its determina-
tion.
‘‘(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 under 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
upon clear and convincing evidence the complaint to be jus-
tified, it shall order that the Postal Service take such action
as is necessary to achieve compliance with the applicable
requirements and to remedy the effects of any noncompli-
ance.
‘‘(d) 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-
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fied by the Commission in its order) for each incidence of
noncompliance. Fines resulting from the provision of com-
petitive products shall be paid from 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, including the Postal Service, adversely af-
fected 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 re-
view thereof by filing a petition in the United States Court
of Appeals for the District of Columbia. The court shall re-
view 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.
‘‘§ 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. 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:
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‘‘CHAPTER 36—POSTAL RATES, CLASSES, AND SERVICES
‘‘SUBCHAPTER I—PROVISIONS RELATING TO MARKET-DOMINANT
PRODUCTS
‘‘Sec.
‘‘3621. Applicability; definitions.
‘‘3622. Modern rate regulation.
‘‘[3623. Repealed.]
‘‘[3624. Repealed.]
‘‘[3625. Repealed.]
‘‘3626. Reduced Rates.
‘‘3627. Adjusting free rates.
‘‘[3628. Repealed.]
‘‘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.
‘‘SUBCHAPTER IV—REPORTING REQUIREMENTS AND RELATED
PROVISIONS
‘‘3651. Annual reports by the Commission.
‘‘3652. Annual reports to the Commission.
‘‘3653. Annual determination of compliance.
‘‘SUBCHAPTER V—POSTAL SERVICES, COMPLAINTS, AND JUDICIAL
REVIEW
‘‘3661. Postal Services.
‘‘3662. Rate and service complaints.
‘‘3663. Appellate review.
‘‘3664. Enforcement of orders.
‘‘SUBCHAPTER VI—GENERAL
‘‘3681. Reimbursement.
‘‘3682. Size and weight limits.
‘‘3683. Uniform rates for books; films, other materials.
‘‘3684. Limitations.
‘‘3685. Filing of information relating to periodical publications.
‘‘3686. Bonus authority.
‘‘SUBCHAPTER VII—MODERN SERVICE STANDARDS
‘‘3691. Establishment of modern service standards.’’.
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TITLE III—MODERN SERVICE
STANDARDS
SEC. 301. ESTABLISHMENT OF MODERN SERVICE STAND-
ARDS.
Chapter 36 of title 39, United States Code, as amended
by this Act, is further amended by adding at the end the
following:
‘‘SUBCHAPTER VII—MODERN SERVICE
STANDARDS
‘‘§ 3691. Establishment of modern service standards
‘‘(a) AUTHORITY GENERALLY.—Not later than 12
months after the date of enactment of this section, the Postal
Service shall, in consultation with the Postal Regulatory
Commission, by regulation establish (and may from time
to time thereafter by regulation revise) a set of service
standards for market-dominant products consistent with the
Postal Service’s universal service obligation as defined in
sections 101 (a) and (b) and 403.
‘‘(b) OBJECTIVES.—Such standards shall be designed
to achieve the following objectives:
‘‘(1) To enhance the value of postal services to
both senders and recipients.
‘‘(2) To preserve regular and effective access to
postal services in all communities, including those in
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rural areas or where post offices are not self-sus-
taining.
‘‘(3) To reasonably assure Postal Service cus-
tomers delivery reliability, speed and frequency con-
sistent with reasonable rates and best business prac-
tices.
‘‘(4) To provide a system of objective external
performance measurements for each market-dominant
product as a basis for measurement of Postal Service
performance.
‘‘(c) FACTORS.—In establishing or revising such stand-
ards, the Postal Service shall take into account—
‘‘(1) the actual level of service that Postal Service
customers receive under any service guidelines pre-
viously established by the Postal Service or service
standards established under this section;
‘‘(2) the degree of customer satisfaction with
Postal Service performance in the acceptance, proc-
essing and delivery of mail;
‘‘(3) the needs of Postal Service customers, in-
cluding those with physical impairments;
‘‘(4) mail volume and revenues projected for fu-
ture years;
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‘‘(5) the projected growth in the number of ad-
dresses the Postal Service will be required to serve in
future years;
‘‘(6) the current and projected future cost of serv-
ing Postal Service customers;
‘‘(7) the effect of changes in technology, demo-
graphics, and population distribution on the efficient
and reliable operation of the postal delivery system;
and
‘‘(8) the policies of this title and such other fac-
tors as the Postal Service determines appropriate.
‘‘(d) REVIEW.—The regulations promulgated pursuant
to this section (and any revisions thereto) shall be subject
to review upon complaint under sections 3662 and 3663.’’.
SEC. 302. POSTAL SERVICE PLAN.
(a) IN GENERAL.—Within 6 months after the estab-
lishment of the service standards under section 3691 of title
39, United States Code, as added by this Act, the Postal
Service shall, in consultation with the Postal Regulatory
Commission, develop and submit to Congress a plan for
meeting those standards.
(b) CONTENTS.—The plan under this section shall—
(1) establish performance goals;
(2) describe any changes to the Postal Service’s
processing, transportation, delivery, and retail net-
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works necessary to allow the Postal Service to meet
the performance goals;
(3) describe any changes to planning and per-
formance management documents previously sub-
mitted to Congress to reflect new performance goals;
and
(4) contain the matters relating to postal facili-
ties provided under subsection (c).
(c) POSTAL FACILITIES.—
(1) FINDINGS.—Congress finds that—
(A) the Postal Service has more than 400
logistics facilities, separate from its post office
network;
(B) as noted by the President’s Commission
on the United States Postal Service, the Postal
Service has more facilities than it needs and the
streamlining of this distribution network can
pave the way for the potential consolidation of
sorting facilities and the elimination of excess
costs;
(C) the Postal Service has always revised its
distribution network to meet changing conditions
and is best suited to address its operational
needs; and
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(D) Congress strongly encourages the Postal
Service to—
(i) expeditiously move forward in its
streamlining efforts; and
(ii) keep unions, management associa-
tions, and local elected officials informed as
an essential part of this effort and abide by
any procedural requirements contained in
the national bargaining agreements.
(2) IN GENERAL.—The Postal Service plan shall
include a description of—
(A) the long-term vision of the Postal Serv-
ice for rationalizing its infrastructure and work-
force; and
(B) how the Postal Service intends to im-
plement that vision.
(3) CONTENT OF FACILITIES PLAN.—The plan
under this subsection shall include—
(A) a strategy for how the Postal Service
intends to rationalize the postal facilities net-
work and remove excess processing capacity and
space from the network, including estimated
timeframes, criteria, and processes to be used for
making changes to the facilities network, and the