such documentation in a manner that readily per-
mits the audit and examination by representatives of
the Postal Service or the Secretary.
‘‘(3) Documentation under paragraph (2) shall be re-
tained for 7 years or until the Secretary indicates that
the records may be destroyed. Copies of flight logs for air-
craft sold or disposed of shall be retained.
‘‘(4) Carriers qualified to be tendered nonpriority by-
pass mail shall submit to the Secretary the number and
type of aircraft in the carrier’s fleet, the level of passenger
insurance covering its fleet, and the name of the insurance
company providing such coverage.
‘‘(5) Not later than 30 days after the last day of each
calendar month, carriers shall report to the Secretary the
excise taxes paid by city pair to the Department of the
Treasury and the weight of and revenue earned by the
carriage of nonmail freight. Final compiled data shall be
made available to carriers providing service in the hub.
‘‘(l) No qualified carrier may be tendered nonpriority
bypass mail under subsections (h) and (i) simultaneously
on a route unless no other carrier is tendered mail under
either subsection.
‘‘(m)(1) Carriers qualifying for tender under sub-
sections (h) and (i) simultaneously shall be tendered non-
priority bypass mail under subsection (h).
‘‘(2) A carrier shall be tendered non-priority bypass
mail under subsection (i) if that carrier—
‘‘(A) was qualified under both subsections (h)
and (i) simultaneously; and
‘‘(B) becomes unqualified under subsection (h)
but remains qualified under subsection (i).
‘‘(n)(1) A carrier operation resulting from a merger
or acquisition shall have the passenger and nonmail
freight of all such merged or acquired carriers on the ap-
plicable route counted toward meeting the resulting car-
rier’s minimum requirements to receive equitable tender
of nonpriority bypass mail on such route for the 6-month
period following the merger or acquisition, if—
‘‘(A)(i) 2 or more mainline passenger carriers
operating under part 121 merge; or
‘‘(ii) 2 or more bush passenger or bush nonmail
freight carriers merge; or
‘‘(B)(i) a mainline passenger carrier operating
under part 121 purchases the operating certificate of
another mainline passenger carrier operating under
part 121; or
‘‘(ii) a bush passenger or nonmail freight car-
rier purchases the operating certificate of another
bush passenger or nonmail carrier.
‘‘(2) After the 6-month period described under para-
graph (1), the carrier resulting from the merger or acqui-
sition shall demonstrate that the carrier meets the min-
imum passenger or nonmail freight carriage requirements
of this section to continue receiving tender of such mail.
An operating certificate transferred to a carrier receiving
tender of nonpriority bypass mail under this section shall
retain the status of the certificate as of the date of trans-
fer. An operating certificate purchased or acquired by an-
other carrier shall merge with the acquiring carrier’s cer-
tificate and shall not be available for further sale or trans-
fer as a separate certificate.
‘‘(o) In addition to any penalties applied to a carrier
by the Federal Aviation Administration or the Secretary,
any carrier that significantly misstates passenger or
nonmail freight data required to be reported under this
section on any route, in an attempt to qualify for tender
of nonpriority bypass mail, shall receive—
‘‘(1) a 1-month suspension of tender of nonpri-
ority bypass mail on the route where the data was
misstated for the first offense;
‘‘(2) a 6-month suspension of tender of nonpri-
ority bypass mail on the route where the data was
misstated for the second offense;
‘‘(3) a 1-year suspension of tender of all nonpri-
ority bypass mail in the entire State of Alaska for
the third offense in the State; and
‘‘(4) a permanent suspension of tender of all
nonpriority bypass mail in the entire State of Alaska
for the fourth offense in the State.
‘‘(p)(1) The Postal Service or the Secretary, in car-
rying out subsection (g)(2), (h), or (i), may deny equitable
tender to an otherwise qualified carrier who does not oper-
ate under this section in good faith.
‘‘(2) The Postal Service or the Secretary may waive
any provision of subsection (h) or (i), if the carrier pro-
vides substantial passenger or nonmail freight service on
the route where the carrier seeks tender of nonpriority by-
pass mail.
‘‘(3) In granting waivers for or denying tender to car-
riers under this subsection, the Postal Service or the Sec-
retary shall consider—
‘‘(A) the passenger needs of the destination to
be served (including amount and level);
‘‘(B) the nonmail freight needs of the destina-
tion to be served;
‘‘(C) the mail needs of the destination to be
served;
‘‘(D) the amount or level of passenger service
already available to the destination;
‘‘(E) the amount of nonmail freight service al-
ready available to the destination;
‘‘(F) the amount of nonpriority bypass mail
service already available to the destination; and
‘‘(G) the savings to the Postal Service in terms
of payments made to carriers.
‘‘(q) The Secretary shall make a regular review of
carriers receiving, or attempting to qualify to receive, equi-
table tender of nonpriority bypass mail. If the Secretary
finds a carrier is operating in an unsafe manner, including
evidence that the carrier is repeatedly flying in unsafe con-
ditions to the detriment of itself, its passengers, or the
general public, in order to qualify to receive equitable ten-
der under this section, the Secretary shall notify the Post-
al Service. Upon such notification, the Postal Service shall
cease tender of mail to such carrier until the Secretary
certifies the carrier is operating in a safe manner. Upon
such receipt, the carrier shall demonstrate that it other-
wise meets the minimum carriage requirements of this sec-
tion before being tendered mail under this section.
‘‘(r) The United States Postal Service shall have the
authority to tender nonpriority bypass mail to any carrier
that meets the requirements of subsection (g)(1) on any
route on an emergency basis. Such emergency tender shall
cease when a carrier qualifies for tender on such route
under the terms of this section.’’.
(d) ALASKAN INTRASTATE AIR TRANSPORTATION
PILOT AGE LIMITATIONS.—With respect to air transpor-
tation between any 2 points within the State of Alaska—
(1) an air carrier certificated under chapter 411
of title 49, United States Code, may use the services
of any person as a pilot on an airplane engaged in
operations under part 121 of title 14, Code of Fed-
eral Regulations, if that person—
(A) is more than 60 years of age; and
(B) is less than 66 years of age; and
(2) a person may serve as a pilot on an airplane
engaged in operations under part 121 of title 14,
Code of Federal Regulations, if that person—
(A) is more than 60 years of age; and
(B) is less than 66 years of age.
(e) ACTIONS OF AIR CARRIERS TO QUALIFY.—Be-
ginning 6 months after the date of enactment of this Act,
if the Postal Service or the Secretary determines that an
air carrier being tendered nonpriority bush bypass mail
is not taking actions to attempt to qualify as a bush pas-
senger or nonmail freight carrier under section 5402 of
title 39, United States Code, (as amended by this Act)
the Postal Service shall immediately cease tender of all
nonpriority bypass mail to such carrier.
(f) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) TITLE 39.—Section 5402 of title 39, United
States Code, is amended—
(A) in subsections (b) through (e) (as re-
designated by this Act) and subsection (f) by
striking ‘‘Secretary of Transportation’’ each
place it appears and inserting ‘‘Secretary’’; and
(B) in subsection (f)—
(i) by striking ‘‘subsections (a), (b),
and (c)’’ and inserting ‘‘subsections (b),
(c), and (d)’’; and
(ii) by striking ‘‘subsection (d)’’ and
inserting ‘‘subsection (e)’’.
(2) TITLE
49.—Section 41901 of title 49,
United States Code, is amended in subsection (a), by
striking ‘‘5402(d)’’ and inserting ‘‘5402(e)’’.
(g) REPORTS
TO CONGRESS.—Not later than 12
months after the date of enactment of this Act, the Postal
Service and the Secretary of Transportation shall submit
a report to the Committee on Government Reform of the
House of Representatives and the Committee on Govern-
mental Affairs of the Senate on the progress of imple-
menting this Act.
(h) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided under
paragraphs (2) and (3), this Act (including the
amendments made by this Act) shall take effect on
the date of enactment of this Act.
(2) 
SELECTION
OF
CARRIERS.—Subsection
(c)(5) shall take effect 15 months after the date of
enactment of this Act.
(3) ALASKAN
INTRASTATE
AIR
TRANSPOR-
TATION
PILOT
AGE
LIMITATION.—Subsection (d)
shall take effect 30 days after the date of enactment
of this Act.
Æ