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 Com-
mission shall take appropriate action in accordance with 
subsections (c)–(e) of section 3662 (as if a complaint aver-
ring 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.’’. 
SEC. 205. COMPLAINTS; APPELLATE REVIEW AND EN-
FORCEMENT. 
Chapter 36 of title 39, United States Code, is amend-
ed by striking sections 3662 and 3663 and inserting the 
following: 
‘‘§ 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 
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 
Commission shall, within 90 days after receiving a 
complaint 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 Commis-
sion fails to act in the time and manner required by 
paragraph (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 Service take such action as the Commission con-
siders appropriate in order to achieve compliance with the 
applicable requirements and to remedy the effects of any 
noncompliance (such as ordering unlawful rates to be ad-
justed to lawful 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 
period of time pending expedited proceedings under this 
section. In evaluating whether circumstances warrant sus-
pension, 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 suf-
fer substantial injury, loss, or damage absent a suspen-
sion, (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 de-
liberate noncompliance by the Postal Service with the re-
quirements of this title, the Postal Regulatory Commission 
may order, based on the nature, circumstances, extent, 
and seriousness of the noncompliance, a fine (in the 
amount specified by the Commission in its order) for each 
incidence of noncompliance. Fines resulting from the pro-
vision of competitive products shall be paid out of the 
Competitive Products 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 Dis-
trict of Columbia. The court shall review the order or deci-
sion 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 ‘person’ 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
Service from violating, any order issued by the Postal Reg-
ulatory Commission.’’. 
SEC. 206. WORKSHARE DISCOUNTS. 
(a) IN GENERAL.—Title 39, United States Code, is 
amended by adding after section 3686 (as added by sec-
tion 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 workshare discounts do not exceed the cost 
that the Postal Service avoids as the result of private sec-
tor workshare activity, except— 
‘‘(1) where the discount is associated with a 
new product or service or with a change to an exist-
ing product or service and is necessary, over a pe-
riod of time not to exceed 4 years, to induce mailer 
behavior that will enable the new or changed product 
or service in furtherance of the overall economically 
efficient operation of the Postal Service; 
‘‘(2) to the extent that a reduction in the dis-
count would lead to a loss of volume in the affected 
category and reduce the aggregate contribution to 
institutional costs of the Postal Service, from the 
mail matter subject to the discount, below what it
otherwise would have been if the discount had not 
been reduced to costs avoided; would result in a fur-
ther increase in the rates paid by mailers not able 
to take advantage of the discount; or would impede 
the efficient operation of the Postal Service; 
‘‘(3) where the amount of the discount above 
costs avoided is necessary to mitigate rate shock and 
will be phased out over time; or 
‘‘(4) where the workshare discount is provided 
in connection with subclasses of mail consisting ex-
clusively of mail matter of educational, cultural, sci-
entific, or informational value. 
‘‘(b) REPORTING
REQUIREMENT.—Whenever the 
Postal Service establishes or maintains a workshare dis-
count, the Postal Service shall, at the time it publishes 
the workshare discount rate, file with the Postal Regu-
latory Commission a detailed report and explanation of its 
reasons for establishing or maintaining the rate, setting 
forth the data, economic analyses, and other information 
relied on by the Postal Service to justify the rate. 
‘‘(c) DEFINITION.—For purposes of this section, the 
term ‘workshare discount’ refers to rate discounts pro-
vided to mailers for presorting, prebarcoding, handling, or 
transportation, as further defined by the Postal Regu-
latory Commission as part of regulations established 
under section 3622(a).’’. 
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 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 amend-
ed 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. 
‘‘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.’’. 
TITLE III—PROVISIONS RELAT-
ING TO FAIR COMPETITION 
SEC. 
301. 
POSTAL 
SERVICE 
COMPETITIVE 
PRODUCTS 
FUND. 
(a) PROVISIONS RELATING
TO POSTAL SERVICE 
COMPETITIVE PRODUCTS FUND
AND RELATED MAT-
TERS.— 
(1) IN
GENERAL.—Chapter 20 of title 39, 
United States Code, is amended by adding at the 
end the following: 
‘‘§ 2011. Provisions relating to competitive products 
‘‘(a) There is established in the Treasury of the 
United States a revolving fund, to be called the Postal 
Service Competitive Products Fund, which shall be avail-
able to the Postal Service without fiscal year limitation 
for the payment of— 
‘‘(1) costs attributable to competitive products; 
and 
‘‘(2) all other costs incurred by the Postal Serv-
ice, to the extent allocable to competitive products.
For purposes of this subsection, the term ‘costs attrib-
utable’ has the meaning given such term by section 3631. 
‘‘(b) There shall be deposited in the Competitive 
Products Fund, subject to withdrawal by the Postal Serv-
ice— 
‘‘(1) revenues from competitive products; 
‘‘(2) amounts received from obligations issued 
by the Postal Service under subsection (e); 
‘‘(3) interest and dividends earned on invest-
ments of the Competitive Products Fund; and 
‘‘(4) any other receipts of the Postal Service 
(including from the sale of assets), to the extent al-
locable to competitive products. 
‘‘(c) If the Postal Service determines that the moneys 
of the Competitive Products Fund are in excess of current 
needs, it may invest such amounts as it considers appro-
priate in— 
‘‘(1) obligations of, or obligations guaranteed 
by, the Government of the United States; and 
‘‘(2) in accordance with regulations which the 
Secretary of the Treasury shall prescribe (by not 
later than 18 months after the date of the enact-
ment of the Postal Accountability and Enhancement 
Act), such other obligations or securities as it deems 
appropriate.
‘‘(d) The Postal Service may, in its sole discretion, 
provide that moneys of the Competitive Products Fund be 
deposited in a Federal Reserve bank or a depository for 
public funds. 
‘‘(e)(1) Subject to the limitations specified in section 
2005(a), the Postal Service is authorized to borrow money 
and to issue and sell such obligations as it determines nec-
essary to provide for competitive products and deposit 
such amounts in the Competitive Products Fund, except 
that the Postal Service may pledge only assets related to 
the provision of competitive products (as determined 
under subsection (h) or, for purposes of any period before 
accounting practices and principles under subsection (h) 
have been established and applied, the best information 
available from the Postal Service, including the audited 
statements required by section 2008(e)), and the revenues 
and receipts from such products, for the payment of the 
principal of or interest on such obligations, for the pur-
chase or redemption thereof, and for other purposes inci-
dental thereto, including creation of reserve, sinking, and 
other funds which may be similarly pledged and used, to 
such extent and in such manner as it deems necessary or 
desirable. 
‘‘(2) The Postal Service may enter into binding cov-
enants with the holders of such obligations, and with the
trustee, if any, under any agreement entered into in con-
nection with the issuance thereof with respect to— 
‘‘(A) the establishment of reserve, sinking, and 
other funds; 
‘‘(B) application and use of revenues and re-
ceipts of the Competitive Products Fund; 
‘‘(C) stipulations concerning the subsequent 
issuance of obligations or the execution of leases or 
lease purchases relating to properties of the Postal 
Service; and 
‘‘(D) such other matters as the Postal Service 
considers necessary or desirable to enhance the mar-
ketability of such obligations. 
‘‘(3) Obligations issued by the Postal Service under 
this subsection— 
‘‘(A) may not be purchased by the Secretary of 
the Treasury; 
‘‘(B) shall not be exempt either as to principal 
or interest from any taxation now or hereafter im-
posed by any State or local taxing authority; 
‘‘(C) shall not be obligations of, nor shall pay-
ment of the principal thereof or interest thereon be 
guaranteed by, the Government of the United 
States, and the obligations shall so plainly state; and
‘‘(D) notwithstanding the provisions of the Fed-
eral Financing Bank Act of 1973 or any other provi-
sion of law (except as specifically provided by ref-
erence to this subparagraph in a law enacted after 
this subparagraph takes effect), shall not be eligible 
for purchase by, commitment to purchase by, or sale 
or issuance to, the Federal Financing Bank. 
‘‘(4)(A) This paragraph applies with respect to the 
period beginning on the date of the enactment of this 
paragraph and ending at the close of the 5-year period 
which begins on the date on which the Secretary of the 
Treasury makes the submission required under subsection 
(h)(1). 
‘‘(B) During the period described in subparagraph 
(A), nothing in subparagraph (A) or (D) of paragraph (3) 
or the last sentence of section 2006(b) shall, with respect 
to any obligations sought to be issued by the Postal Serv-
ice under this subsection, be considered to affect such obli-
gations’ eligibility for purchase by, commitment to pur-
chase by, or sale or issuance to, the Federal Financing 
Bank. 
‘‘(C) The Federal Financing Bank may elect to pur-
chase such obligations under such terms, including rates 
of interest, as the Bank and the Postal Service may agree, 
but at a rate of yield no less than the prevailing yield on
outstanding marketable securities of comparable maturity 
issued by entities with the same credit rating as the rating 
then most recently obtained by the Postal Service under 
subparagraph (D), as determined by the Bank. 
‘‘(D) In order to be eligible to borrow under this 
paragraph, the Postal Service shall first obtain a credit 
rating from a nationally recognized credit rating organiza-
tion. Such rating— 
‘‘(i) shall be determined taking into account 
only those assets and activities of the Postal Service 
which are described in section 3634(a)(2) (relating 
to the Postal Service’s assumed taxable income from 
competitive products); and 
‘‘(ii) may, before final rules of the Postal Regu-
latory Commission under subsection (h) are issued 
(or deemed to have been issued), be based on the 
best information available from the Postal Service, 
including the audited statements required by section 
2008(e). 
‘‘(f) The receipts and disbursements of the Competi-
tive Products Fund shall be accorded the same budgetary 
treatment as is accorded to receipts and disbursements of 
the Postal Service Fund under section 2009a. 
‘‘(g) A judgment against the Postal Service or the 
Government of the United States (or settlement of a
claim) shall, to the extent that it arises out of activities 
of the Postal Service in the provision of competitive prod-
ucts, be paid out of the Competitive Products Fund. 
‘‘(h)(1) The Secretary of the Treasury, in consulta-
tion with the Postal Service and an independent, certified 
public accounting firm and such other advisors as the Sec-
retary considers appropriate, shall develop recommenda-
tions regarding— 
‘‘(A) the accounting practices and principles 
that should be followed by the Postal Service with 
the objectives of (i) identifying and valuing the as-
sets and liabilities of the Postal Service associated 
with providing, and the capital and operating costs 
incurred by the Postal Service in providing, competi-
tive products, and (ii) preventing the subsidization 
of such products by market-dominant products; and 
‘‘(B) the substantive and procedural rules that 
should be followed in determining the Postal Serv-
ice’s assumed Federal income tax on competitive 
products income for any year (within the meaning of 
section 3634). 
Such recommendations shall be submitted to the Postal 
Regulatory Commission no earlier than 6 months, and no 
later than 12 months, after the effective date of this sec-
tion.
‘‘(2)(A) Upon receiving the recommendations of the 
Secretary of the Treasury under paragraph (1), the Com-
mission shall give interested parties, including the Postal 
Service, users of the mails, and an officer of the Commis-
sion who shall be required to represent the interests of 
the general public, an opportunity to present their views 
on those recommendations through submission of written 
data, views, or arguments with or without opportunity for 
oral presentation, or in such other manner as the Commis-
sion considers appropriate. 
‘‘(B) After due consideration of the views and other 
information received under subparagraph (A), the Com-
mission shall by rule— 
‘‘(i) provide for the establishment and applica-
tion of the accounting practices and principles which 
shall be followed by the Postal Service; 
‘‘(ii) provide for the establishment and applica-
tion of the substantive and procedural rules de-
scribed in paragraph (1)(B); and 
‘‘(iii) provide for the submission by the Postal 
Service to the Postal Regulatory Commission of an-
nual and other periodic reports setting forth such in-
formation as the Commission may require. 
Final rules under this subparagraph shall be issued not 
later than 12 months after the date on which the Sec-
retary of the Treasury makes his submission to the Com-
mission under paragraph (1) (or by such later date as the 
Commission and the Postal Service may agree to). The 
Commission is authorized to promulgate regulations revis-
ing such rules. 
‘‘(C) Reports described in subparagraph (B)(iii) shall 
be submitted at such time and in such form, and shall 
include such information, as the Commission by rule re-
quires. The Commission may, on its own motion or on re-
quest of an interested party, initiate proceedings (to be 
conducted in accordance with such rules as the Commis-
sion shall prescribe) to improve the quality, accuracy, or 
completeness of Postal Service data under such subpara-
graph whenever it shall appear that— 
‘‘(i) the quality of the information furnished in 
those reports has become significantly inaccurate or 
can be significantly improved; or 
‘‘(ii) such revisions are, in the judgment of the 
Commission, otherwise necessitated by the public in-
terest. 
‘‘(D) A copy of each report described in subpara-
graph (B)(iii) shall also be transmitted by the Postal Serv-
ice to the Secretary of the Treasury and the Inspector 
General of the United States Postal Service.
‘‘(i) The Postal Service shall render an annual report 
to the Secretary of the Treasury concerning the operation 
of the Competitive Products Fund, in which it shall ad-
dress such matters as risk limitations, reserve balances, 
allocation or distribution of moneys, liquidity require-
ments, and measures to safeguard against losses. A copy 
of its then most recent report under this subsection shall 
be included with any other submission that it is required 
to make to the Postal Regulatory Commission under sec-
tion 3652(g).’’. 
(2) CLERICAL AMENDMENT.—The analysis for 
chapter 20 of title 39, United States Code, is 
amended by adding after the item relating to section 
2010 the following: 
‘‘2011. Provisions relating to competitive products.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) DEFINITION.—Section 2001 of title 39, 
United States Code, is amended by striking ‘‘and’’ 
at the end of paragraph (1), by redesignating para-
graph (2) as paragraph (3), and by inserting after 
paragraph (1) the following: 
‘‘(2) ‘Competitive Products Fund’ means the 
Postal Service Competitive Products Fund estab-
lished by section 2011; and’’. 
(2) CAPITAL OF THE POSTAL SERVICE.—Sec-
tion 2002(b) of title 39, United States Code, is
amended by striking ‘‘Fund,’’ and inserting ‘‘Fund 
and the balance in the Competitive Products Fund,’’. 
(3) POSTAL SERVICE FUND.— 
(A) PURPOSES FOR WHICH AVAILABLE.— 
Section 2003(a) of title 39, United States Code, 
is amended by striking ‘‘title.’’ and inserting 
‘‘title (other than any of the purposes, func-
tions, or powers for which the Competitive 
Products Fund is available).’’. 
(B) DEPOSITS.—Section 2003(b) of title 
39, United States Code, is amended by striking 
‘‘There’’ and inserting ‘‘Except as otherwise 
provided in section 2011, there’’. 
(4) RELATIONSHIP BETWEEN THE TREASURY 
AND THE POSTAL SERVICE.—Section 2006 of title 
39, United States Code, is amended— 
(A) in subsection (b), by adding at the end 
the following: ‘‘Nothing in this chapter shall be 
considered to permit or require the Secretary of 
the Treasury to purchase any obligations of the 
Postal Service other than those issued under 
section 2005.’’; and 
(B) in subsection (c), by inserting ‘‘under 
section 2005’’ before ‘‘shall be obligations’’.
SEC. 302. ASSUMED FEDERAL INCOME TAX ON COMPETI-
TIVE PRODUCTS INCOME. 
Subchapter II of chapter 36 of title 39, United States 
Code, as amended by section 202, is amended by adding 
at the end the following: 
‘‘§ 3634. Assumed Federal income tax on competitive 
products income 
‘‘(a) DEFINITIONS.—For purposes of this section— 
‘‘(1) the term ‘assumed Federal income tax on 
competitive products income’ means the net income 
tax that would be imposed by chapter 1 of the Inter-
nal Revenue Code of 1986 on the Postal Service’s 
assumed taxable income from competitive products 
for the year; and 
‘‘(2) the term ‘assumed taxable income from 
competitive products’, with respect to a year, refers 
to the amount representing what would be the tax-
able income of a corporation under the Internal Rev-
enue Code of 1986 for the year, if— 
‘‘(A) the only activities of such corporation 
were the activities of the Postal Service allo-
cable under section 2011(h) to competitive 
products; and 
‘‘(B) the only assets held by such corpora-
tion were the assets of the Postal Service allo-
cable under section 2011(h) to such activities.
‘‘(b) COMPUTATION
AND
TRANSFER
REQUIRE-
MENTS.—The Postal Service shall, for each year beginning 
with the year in which occurs the deadline for the Postal 
Service’s first report to the Postal Regulatory Commission 
under section 3652(a)— 
‘‘(1) compute its assumed Federal income tax 
on competitive products income for such year; and 
‘‘(2) transfer from the Competitive Products 
Fund to the Postal Service Fund the amount of that 
assumed tax. 
‘‘(c) DEADLINE FOR TRANSFERS.—Any transfer re-
quired to be made under this section for a year shall be 
due on or before the January 15th next occurring after 
the close of such year.’’. 
SEC. 303. UNFAIR COMPETITION PROHIBITED. 
(a) SPECIFIC LIMITATIONS.—Chapter 4 of title 39, 
United States Code, is amended by adding after section 
404 the following: 
‘‘§ 404a. Specific Limitations 
‘‘(a) Except as specifically authorized by law, the 
Postal Service may not— 
‘‘(1) establish any rule or regulation (including 
any standard) the effect of which is to preclude com-
petition or establish the terms of competition unless 
the Postal Service demonstrates that the regulation
does not create an unfair competitive advantage for 
itself or any entity funded (in whole or in part) by 
the Postal Service; 
‘‘(2) compel the disclosure, transfer, or licens-
ing of intellectual property to any third party (such 
as patents, copyrights, trademarks, trade secrets, 
and proprietary information); or 
‘‘(3) obtain information from a person that pro-
vides (or seeks to provide) any product, and then 
offer any product or service that uses or is based in 
whole or in part on such information, without the 
consent of the person providing that information, 
unless substantially the same information is obtained 
(or obtainable) from an independent source or is 
otherwise obtained (or obtainable). 
‘‘(b) The Postal Regulatory Commission shall pre-
scribe regulations to carry out this section. 
‘‘(c) Any party (including an officer of the Commis-
sion representing the interests of the general public) who 
believes that the Postal Service has violated this section 
may bring a complaint in accordance with section 3662.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) GENERAL
POWERS.—Section 401 of title 
39, United States Code, is amended by striking
‘‘The’’ and inserting ‘‘Subject to the provisions of 
section 404a, the’’. 
(2) SPECIFIC POWERS.—Section 404(a) of title 
39, United States Code, is amended by striking 
‘‘Without’’ and inserting ‘‘Subject to the provisions 
of section 404a, but otherwise without’’. 
(c) CLERICAL AMENDMENT.—The analysis for chap-
ter 4 of title 39, United States Code, is amended by insert-
ing after the item relating to section 404 the following: 
‘‘404a. Specific limitations.’’. 
SEC. 304. SUITS BY AND AGAINST THE POSTAL SERVICE. 
(a) IN GENERAL.—Section 409 of title 39, United 
States Code, is amended by striking subsections (d) and 
(e) and inserting the following: 
‘‘(d)(1) For purposes of the provisions of law cited 
in paragraphs (2)(A) and (2)(B), respectively, the Postal 
Service— 
‘‘(A) shall be considered to be a ‘person’, as 
used in the provisions of law involved; and 
‘‘(B) shall not be immune under any other doc-
trine of sovereign immunity from suit in Federal 
court by any person for any violation of any of those 
provisions of law by any officer or employee of the 
Postal Service. 
‘‘(2) This subsection applies with respect to—
‘‘(A) the Act of July 5, 1946 (commonly re-
ferred to as the ‘Trademark Act of 1946’ (15 U.S.C. 
1051 and following)); and 
‘‘(B) the provisions of section 5 of the Federal 
Trade Commission Act to the extent that such sec-
tion 5 applies to unfair or deceptive acts or prac-
tices. 
‘‘(e)(1) To the extent that the Postal Service, or other 
Federal agency acting on behalf of or in concert with the 
Postal Service, engages in conduct with respect to any 
competitive product, the Postal Service or other Federal 
agency (as the case may be)— 
‘‘(A) shall not be immune under any doctrine of 
sovereign immunity from suit in Federal court by 
any person for any violation of Federal law by such 
agency or any officer or employee thereof; and 
‘‘(B) shall be considered to be a person (as de-
fined in subsection (a) of the first section of the 
Clayton Act) for purposes of— 
‘‘(i) the antitrust laws (as defined in such 
subsection); and 
‘‘(ii) section 5 of the Federal Trade Com-
mission Act to the extent that such section 5 
applies to unfair methods of competition.
‘‘(2) No damages, interest on damages, costs or at-
torney’s fees may be recovered, and no criminal liability 
may be imposed, under the antitrust laws (as so defined) 
from any officer or employee of the Postal Service, or 
other Federal agency acting on behalf of or in concert with 
the Postal Service, acting in an official capacity. 
‘‘(3) This subsection shall not apply with respect to 
conduct occurring before the date of the enactment of this 
subsection. 
‘‘(f)(1) Each building constructed or altered by the 
Postal Service shall be constructed or altered, to the max-
imum extent feasible as determined by the Postal Service, 
in compliance with one of the nationally recognized model 
building codes and with other applicable nationally recog-
nized codes. 
‘‘(2) Each building constructed or altered by the 
Postal Service shall be constructed or altered only after 
consideration of all requirements (other than procedural 
requirements) of zoning laws, land use laws, and applica-
ble environmental laws of a State or subdivision of a State 
which would apply to the building if it were not a building 
constructed or altered by an establishment of the Govern-
ment of the United States.
‘‘(3) For purposes of meeting the requirements of 
paragraphs (1) and (2) with respect to a building, the 
Postal Service shall— 
‘‘(A) in preparing plans for the building, con-
sult with appropriate officials of the State or polit-
ical subdivision, or both, in which the building will 
be located; 
‘‘(B) upon request, submit such plans in a 
timely manner to such officials for review by such 
officials for a reasonable period of time not exceed-
ing 30 days; and 
‘‘(C) permit inspection by such officials during 
construction or alteration of the building, in accord-
ance with the customary schedule of inspections for 
construction or alteration of buildings in the locality, 
if such officials provide to the Postal Service— 
‘‘(i) a copy of such schedule before con-
struction of the building is begun; and 
‘‘(ii) reasonable notice of their intention to 
conduct any inspection before conducting such 
inspection. 
Nothing in this subsection shall impose an obligation on 
any State or political subdivision to take any action under 
the preceding sentence, nor shall anything in this sub-
section require the Postal Service or any of its contractors
to pay for any action taken by a State or political subdivi-
sion to carry out this subsection (including reviewing 
plans, carrying out on-site inspections, issuing building 
permits, and making recommendations). 
‘‘(4) Appropriate officials of a State or a political 
subdivision of a State may make recommendations to the 
Postal Service concerning measures necessary to meet the 
requirements of paragraphs (1) and (2). Such officials 
may also make recommendations to the Postal Service 
concerning measures which should be taken in the con-
struction or alteration of the building to take into account 
local conditions. The Postal Service shall give due consid-
eration to any such recommendations. 
‘‘(5) In addition to consulting with local and State 
officials under paragraph (3), the Postal Service shall es-
tablish procedures for soliciting, assessing, and incor-
porating local community input on real property and land 
use decisions. 
‘‘(6) For purposes of this subsection, the term ‘State’ 
includes the District of Columbia, the Commonwealth of 
Puerto Rico, and a territory or possession of the United 
States. 
‘‘(g)(1) Notwithstanding any other provision of law, 
legal representation may not be furnished by the Depart-
ment of Justice to the Postal Service in any action, suit,
or proceeding arising, in whole or in part, under any of 
the following: 
‘‘(A) Subsection (d) or (e) of this section. 
‘‘(B) Subsection (f) or (g) of section 504 (relat-
ing to administrative subpoenas by the Postal Regu-
latory Commission). 
‘‘(C) Section 3663 (relating to appellate re-
view). 
The Postal Service may, by contract or otherwise, employ 
attorneys to obtain any legal representation that it is pre-
cluded from obtaining from the Department of Justice 
under this paragraph. 
‘‘(2) In any circumstance not covered by paragraph 
(1), the Department of Justice shall, under section 411, 
furnish the Postal Service such legal representation as it 
may require, except that, with the prior consent of the 
Attorney General, the Postal Service may, in any such cir-
cumstance, employ attorneys by contract or otherwise to 
conduct litigation brought by or against the Postal Service 
or its officers or employees in matters affecting the Postal 
Service. 
‘‘(3)(A) In any action, suit, or proceeding in a court 
of the United States arising in whole or in part under any 
of the provisions of law referred to in subparagraph (B) 
or (C) of paragraph (1), and to which the Commission
is not otherwise a party, the Commission shall be per-
mitted to appear as a party on its own motion and as 
of right. 
‘‘(B) The Department of Justice shall, under such 
terms and conditions as the Commission and the Attorney 
General shall consider appropriate, furnish the Commis-
sion such legal representation as it may require in connec-
tion with any such action, suit, or proceeding, except that, 
with the prior consent of the Attorney General, the Com-
mission may employ attorneys by contract or otherwise for 
that purpose. 
‘‘(h) A judgment against the Government of the 
United States arising out of activities of the Postal Service 
shall be paid by the Postal Service out of any funds avail-
able to the Postal Service, subject to the restriction speci-
fied in section 2011(g).’’. 
(b) TECHNICAL AMENDMENT.—Section 409(a) of 
title 39, United States Code, is amended by striking ‘‘Ex-
cept as provided in section 3628 of this title,’’ and insert-
ing ‘‘Except as otherwise provided in this title,’’. 
SEC. 305. INTERNATIONAL POSTAL ARRANGEMENTS. 
(a) IN GENERAL.—Section 407 of title 39, United 
States Code, is amended to read as follows: 
‘‘§ 407. International postal arrangements 
‘‘(a) It is the policy of the United States—
‘‘(1) to promote and encourage communications 
between peoples by efficient operation of inter-
national postal services and other international deliv-
ery services for cultural, social, and economic pur-
poses; 
‘‘(2) to promote and encourage unrestricted and 
undistorted competition in the provision of inter-
national postal services and other international deliv-
ery services, except where provision of such services 
by private companies may be prohibited by law of 
the United States; 
‘‘(3) to promote and encourage a clear distinc-
tion between governmental and operational respon-
sibilities with respect to the provision of inter-
national postal services and other international deliv-
ery services by the Government of the United States 
and by intergovernmental organizations of which the 
United States is a member; and 
‘‘(4) to participate in multilateral and bilateral 
agreements with other countries to accomplish these 
objectives. 
‘‘(b)(1) The Secretary of State shall be responsible 
for formulation, coordination, and oversight of foreign pol-
icy related to international postal services and other inter-
national delivery services, and shall have the power to con-
clude treaties, conventions and amendments related to 
international postal services and other international deliv-
ery services, except that the Secretary may not conclude 
any treaty, convention, or other international agreement 
(including those regulating international postal services) 
if such treaty, convention, or agreement would, with re-
spect to any competitive product, grant an undue or un-
reasonable preference to the Postal Service, a private pro-
vider of international postal or delivery services, or any 
other person. 
‘‘(2) In carrying out the responsibilities specified in 
paragraph (1), the Secretary of State shall exercise pri-
mary authority for the conduct of foreign policy with re-
spect to international postal services and international de-
livery services, including the determination of United 
States positions and the conduct of United States partici-
pation in negotiations with foreign governments and inter-
national bodies. In exercising this authority, the Sec-
retary— 
‘‘(A) shall coordinate with other agencies as ap-
propriate, and in particular, shall give full consider-
ation to the authority vested by law or Executive 
order in the Postal Regulatory Commission, the De-
partment of Commerce, the Department of Trans-
portation, and the Office of the United States Trade 
Representative in this area; 
‘‘(B) shall maintain continuing liaison with 
other executive branch agencies concerned with post-
al and delivery services; 
‘‘(C) shall maintain continuing liaison with the 
Committee on Government Reform of the House of 
Representatives and the Committee on Govern-
mental Affairs of the Senate; 
‘‘(D) shall maintain appropriate liaison with 
both representatives of the Postal Service and rep-
resentatives of users and private providers of inter-
national postal services and other international deliv-
ery services to keep informed of their interests and 
problems, and to provide such assistance as may be 
needed to ensure that matters of concern are 
promptly considered by the Department of State or 
(if applicable, and to the extent practicable) other 
executive branch agencies; and 
‘‘(E) shall assist in arranging meetings of such 
public sector advisory groups as may be established 
to advise the Department of State and other execu-
tive branch agencies in connection with international 
postal services and international delivery services.
‘‘(3) The Secretary of State shall establish an advi-
sory committee (within the meaning of the Federal Advi-
sory Committee Act) to perform such functions as the Sec-
retary considers appropriate in connection with carrying 
out subparagraphs (A) through (D) of paragraph (2). 
‘‘(c)(1) Before concluding any treaty, convention, or 
amendment that establishes a rate or classification for a 
product subject to subchapter I of chapter 36, the Sec-
retary of State shall request the Postal Regulatory Com-
mission to submit a decision on whether such rate or clas-
sification is consistent with the standards and criteria es-
tablished by the Commission under section 3622. 
‘‘(2) The Secretary shall ensure that each treaty, con-
vention, or amendment concluded under subsection (b) is 
consistent with a decision of the Commission adopted 
under paragraph (1), except if, or to the extent, the Sec-
retary determines, by written order, that considerations of 
foreign policy or national security require modification of 
the Commission’s decision. 
‘‘(d) Nothing in this section shall be considered to 
prevent the Postal Service from entering into such com-
mercial or operational contracts related to providing inter-
national postal services and other international delivery 
services as it deems appropriate, except that—
‘‘(1) any such contract made with an agency of 
a foreign government (whether under authority of 
this subsection or otherwise) shall be solely contrac-
tual in nature and may not purport to be inter-
national law; and 
‘‘(2) a copy of each such contract between the 
Postal Service and an agency of a foreign govern-
ment shall be transmitted to the Secretary of State 
and the Postal Regulatory Commission not later 
than the effective date of such contract. 
‘‘(e)(1) With respect to shipments of international 
mail that are competitive products within the meaning of 
section 3631 that are exported or imported by the Postal 
Service, the Bureau of Customs and Border Protection of 
the Department of Homeland Security and other appro-
priate Federal agencies shall apply the customs laws of 
the United States and all other laws relating to the impor-
tation or exportation of such shipments in the same man-
ner to both shipments by the Postal Service and similar 
shipments by private companies. 
‘‘(2) For purposes of this subsection, the term ‘pri-
vate company’ means a private company substantially 
owned or controlled by persons who are citizens of the 
United States.