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(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 Regu-
latory Commission (as so redesignated by section 604)
under an appointment made before the date of enactment
of this Act or any nomination made before that date, but,
when any such office becomes vacant, the appointment of
any person to fill that office shall be made in accordance
with such amendment.
(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 redes-
ignated 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 em-
ployee of the Commission designated by the Commission
may administer oaths, examine witnesses, take depositions,
and receive evidence.
‘‘(2) The Chairman of the Commission, any Commis-
sioner designated by the Chairman, and any administrative
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law judge appointed by the Commission under section 3105
of title 5 may, with respect to any proceeding conducted
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
‘‘(B) order the taking of depositions and re-
sponses to written interrogatories by a covered person.
The written concurrence of a majority of the Commissioners
then holding office shall, with respect to each subpoena
under subparagraph (A), be required in advance of its
issuance.
‘‘(3) In the case of contumacy or failure to obey a sub-
poena 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 ad-
dressed 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.
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‘‘(4) For purposes of this subsection, the term ‘covered
person’ means an officer, employee, agent, or contractor of
the Postal Service.
‘‘(g)(1) If the Postal Service determines that any docu-
ment 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 connection
with any proceeding or other purpose under this title, con-
tains information 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 Com-
mission, in writing, of its determination (and the reasons
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 em-
ployee of the Commission to have access to any such
information.
‘‘(3)(A) Paragraph (2) shall not prohibit the
Commission from publicly disclosing relevant infor-
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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 pro-
cedure for according appropriate confidentiality to
information identified by the Postal Service under
paragraph (1). In determining the appropriate degree
of confidentiality to be accorded information identi-
fied by the Postal Service under paragraph (1), the
Commission shall balance the nature and extent of the
likely commercial injury to the Postal Service against
the public interest in maintaining the financial
transparency of a government establishment com-
peting 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 pro-
cedures for ensuring appropriate confidentiality for
information furnished to any party.’’.
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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 follows:
‘‘(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 ap-
propriation under this subsection for a fiscal year, the Com-
mission shall prepare and submit to the Congress under sec-
tion 2009 a budget of the Commission’s expenses, including
expenses for facilities, supplies, compensation, and em-
ployee 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 amended—
(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.’’.
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(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 appro-
priated under subsections (b) and (c) of section 2401,
(2) the Office of Inspector General of the United
States Postal Service requests to be appropriated, out
of the Postal Service Fund, under section 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 fol-
lowing: ‘‘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 parenthet-
ical 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 Office of Inspector
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General, subject to the availability of amounts appro-
priated 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 be-
ginning on or after October 1, 2005.
(2) SAVINGS PROVISION.—The provisions of title
39, United States Code, and the Inspector General
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 Commission’’ each
place it appears and inserting ‘‘Postal Regulatory Commis-
sion’’;
(b) AMENDMENTS
TO TITLE 5, UNITED STATES
CODE.—Title 5, United States Code, is amended in sections
104(1), 306(f), 2104(b), 3371(3), 5314 (in the item relating
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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 Government
Act of 1978 (5 U.S.C. App.) is amended by striking ‘‘Postal
Rate Commission’’ and inserting ‘‘Postal Regulatory Com-
mission’’.
(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 insert-
ing ‘‘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, doc-
ument, or other record of the United States to the Postal
Rate Commission, such reference shall be considered a ref-
erence to the Postal Regulatory Commission.
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SEC. 605. FINANCIAL TRANSPARENCY.
(a) IN GENERAL.—Section 101 of title 39, United
States Code, is amended—
(1) by redesignating subsections (d) through (g)
as subsections (e) through (h), respectively; and
(2) by inserting after subsection (c) the fol-
lowing:
‘‘(d) As an independent establishment of the executive
branch of the Government of the United States, the Postal
Service shall be subject to a high degree of transparency
to ensure fair treatment of customers of the Postal Service’s
market-dominant products and companies competing with
the Postal Service’s competitive products.’’.
(b) FINANCIAL REPORTING REQUIREMENTS AND EN-
FORCEMENT POWERS APPLICABLE TO POSTAL SERVICE.—
Section 503 of title 39, United States Code (as so redesig-
nated by section 601 and 604) is amended by—
(1) inserting ‘‘(a)’’ before ‘‘The Postal Regu-
latory Commission shall promulgate’’; and
(2) adding at the end the following:
‘‘(b)(1) Beginning with the first full fiscal year fol-
lowing the date of enactment of the Postal Accountability
and Enhancement Act, the Postal Service shall file with the
Postal Regulatory Commission —
‘‘(A) within 35 days after the end of each fiscal
quarter, a quarterly report containing the informa-
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tion prescribed in Form 10–Q of the Securities and
Exchange Commission under section 13 of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78m), or any
revised or successor form;
‘‘(B) within 60 days after the end of each fiscal
year, an annual report containing the information
prescribed in Form 10–K of the Securities and Ex-
change Commission under section 13 of the Securities
Exchange Act of 1934 (15 U.S.C. 78m), or any re-
vised or successor form; and
‘‘(C) periodic reports within the time frame and
containing the information prescribed in Form 8–K
of the Securities and Exchange Commission under
section 13 of the Securities Exchange Act of 1934 (15
U.S.C. 78m), or any revised or successor form.
‘‘(2) For purposes of preparing the reports required
under 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 Securities and Exchange Commission regulations are ap-
plicable.
‘‘(3) For purposes of preparing the reports required
under paragraph (1), the Postal Service shall comply with
the rules prescribed by the Securities and Exchange Com-
mission implementing section 404 of the Sarbanes-Oxley
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Act of 2002 (15 U.S.C. 7262; Public Law 107–204) begin-
ning with fiscal year 2007 and in each fiscal year there-
after.
‘‘(c)(1) The reports required under subsection (b)(1)(B)
shall include, with respect to the financial obligations of
the Postal Service under chapters 83, 84, and 89 of title
5 for retirees of the Postal Service—
‘‘(A) the funded status of such obligations of the
Postal Service;
‘‘(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 underlying
the relevant actuarial valuations;
‘‘(E) the effect of a one-percentage point increase
in the assumed health care cost trend rate for each fu-
ture year on the service and interest costs components
of net periodic cost and the accumulated obligation of
the Postal Service under chapter 89 of title 5 for re-
tirees of the Postal Service;
‘‘(F) actual contributions to and payments from
the funds for the years presented and the estimated
future contributions and payments for each of the fol-
lowing 5 years;
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‘‘(G) the composition of plan assets reflected in
the fund balances; and
‘‘(H) the assumed rate of return on fund bal-
ances and the actual rates of return for the years pre-
sented.
‘‘(2)(A) Beginning with the fiscal year 2007 and in
each fiscal year thereafter, for purposes of the reports re-
quired under subsection (b)(1) (A) and (B), the Postal Serv-
ice shall include segment reporting.
‘‘(B) The Postal Service shall determine the appro-
priate segment reporting under subparagraph (A), after
consultation with the Postal Regulatory Commission.
‘‘(d) For purposes of the annual reports required under
subsection (b)(1)(B), the Postal Service shall obtain an
opinion from an independent auditor on whether the infor-
mation listed under subsection (c) is fairly stated in all
material respects, either in relation to the basic financial
statements as a whole or on a stand-alone basis.
‘‘(e) The Postal Regulatory Commission shall have ac-
cess to the audit documentation and any other supporting
matter of the Postal Service and its independent auditor
in connection with any information submitted under sub-
section (b)(1)(B).
‘‘(f) The Postal Regulatory Commission may, on its
own motion or on request of an interested party, initiate
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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 section whenever it shall ap-
pear that the data—
‘‘(1) have become significantly inaccurate;
‘‘(2) can be significantly improved; or
‘‘(3) are not cost beneficial.’’.
TITLE VII—EVALUATIONS
SEC. 701. ASSESSMENTS OF RATEMAKING, CLASSIFICATION,
AND OTHER PROVISIONS.
(a) IN GENERAL.—The Postal Regulatory Commission
shall, at least every 3 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 effectiveness or effi-
ciency of the postal laws of the United States.
(b) POSTAL SERVICE VIEWS.—A report under this sec-
tion shall be submitted only after reasonable opportunity
has been afforded to the Postal Service to review the report
and to submit written comments on the report. Any com-
ments timely received from the Postal Service under the pre-
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ceding sentence shall be attached to the report 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 Reg-
ulatory 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 subsection
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 mo-
nopoly 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
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title 39, United States Code), and current rules,
regulations, policy statements, and practices 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 re-
ceiving 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, in-
cluding all types of mail users, based on discus-
sion of such assumptions, alternative sets of as-
sumptions, and analyses as the Postal Service
considers plausible.
(b) RECOMMENDED CHANGES TO UNIVERSAL SERVICE
AND THE MONOPOLY.—The Postal Regulatory Commission
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-
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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 de-
scribed under paragraph (1)—
(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.
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SEC. 703. STUDY ON EQUAL APPLICATION OF LAWS TO COM-
PETITIVE 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 re-
port 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 sec-
tion 102 of title 39, United States Code, as amended by
section 101) and similar products provided by private com-
panies.
(b) RECOMMENDATIONS.—The Federal Trade Commis-
sion shall include such recommendations as it considers ap-
propriate for bringing such legal discrimination 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 advantages provided by those laws.
(c) CONSULTATION.—In preparing its report, the Fed-
eral Trade Commission shall consult with the United 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.
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(d) COMPETITIVE PRODUCT REGULATION.—The Postal
Regulatory Commission shall take into account the rec-
ommendations of the Federal Trade Commission in promul-
gating 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 General 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
(B) identifies opportunities for improve-
ment that remain with respect to such improve-
ments and reductions.
(2) CONTENTS.—The report under this subsection
shall also—
(A) discuss any injury reduction goals es-
tablished by the Postal Service;
(B) describe the actions that the Postal
Service has taken to improve workplace safety
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and reduce workplace-related injuries, and assess
how successful the Postal Service has been in
meeting its injury reduction goal; and
(C) identify areas where the Postal Service
has failed to meet its injury reduction goals, ex-
plain the reasons why these goals were not met,
and identify opportunities for making further
progress in meeting these goals.
(b) REPORT BY THE POSTAL SERVICE.—
(1) REPORT TO CONGRESS.—Not later than 6
months after receiving the report under subsection (a),
the Postal Service shall submit a report to Congress
detailing how it plans to improve workplace safety
and reduce workplace-related injuries nationwide, in-
cluding goals and metrics.
(2) PROBLEM
AREAS.—The report under this
subsection shall also include plans, developed in con-
sultation with the Inspector General and employee
representatives, including representatives of each post-
al labor union and management association, for ad-
dressing the problem areas identified by the Inspector
General in the report under subsection (a)(2)(C).
SEC. 705. STUDY ON RECYCLED PAPER.
(a) IN GENERAL.—Within 12 months after the date
of enactment of this Act, the Government Accountability Of-