100
(c) APPLICABILITY.—Nothing in this section shall af-
fect the tenure of any individual serving as a Commis-
sioner on the Postal Regulatory Commission or a Director
of the Board of Directors of the United States Postal
Service pursuant to an appointment made before the date
of enactment of this Act, or, except as provided in the
amendment made by subsection (b)(3), any nomination
made before such date of enactment.
SEC. 213. APPROPRIATIONS FOR THE COMMISSION.
(a) AUTHORIZATION
OF
APPROPRIATIONS.—Sub-
section (d) of section 3604 of title 39, United States Code,
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
appropriation under this subsection for a fiscal year, the
Commission shall prepare and submit to the Congress
under section 2009 a budget of the Commission’s ex-
penses, including expenses for facilities, supplies, com-
pensation, and employee benefits.’’.
(b) 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
101
amounts which (1) the Postal Service requests to be
appropriated under subsections (b) and (c) of section
2401, (2) the Office of Inspector General of the
United States Postal Service requests to be appro-
priated, out of the Postal Service Fund, under sec-
tion 8G(f) of the Inspector General Act of 1978, and
(3) the Postal Regulatory Commission requests to be
appropriated, out of the Postal Service Fund, under
section 3604(d) of this title.’’.
(2) 
CONFORMING
AMENDMENT.—Section
2003(e)(1) of title 39, United States Code, is
amended by striking the matter before the second
sentence and inserting the following:
‘‘(e)(1) The Fund shall be available for the payment
of all expenses incurred by the Postal Service in carrying
out its functions as provided by law and—
‘‘(A) subject to the availability of amounts ap-
propriated pursuant to section 3604(d), all of the
expenses of the Postal Regulatory Commission; and
‘‘(B) subject to the availability of amounts ap-
propriated pursuant to section 8G(f) of the Inspec-
tor General Act of 1978, all of the expenses of the
Office of Inspector General.’’.
(c) EFFECTIVE DATE.—
102
(1) IN GENERAL.—The amendments made by
this section shall apply with respect to fiscal years
beginning on or after October 1, 1999.
(2) SAVINGS
PROVISION.—The provisions of
title 39, United States Code, that are amended by
this section shall, for purposes of any fiscal year be-
fore 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. 214. CHANGE-OF-ADDRESS ORDER INVOLVING A COM-
MERCIAL MAIL RECEIVING AGENCY.
(a) IN GENERAL.—Subchapter V of chapter 36 of
title 39, United States Code, is amended by adding at the
end the following:
‘‘§ 3686. Change-of-address order involving a commer-
cial mail receiving agency
‘‘(a) For the purpose of this section, the term ‘com-
mercial mail receiving agency’ or ‘CMRA’ means a private
business that acts as the mail receiving agent for specific
clients.
‘‘(b) Upon termination of an agency relationship be-
tween an addressee and a commercial mail receiving
agency—
103
‘‘(1) the addressee or, if authorized to do so,
the CMRA may file a change-of-address order with
the Postal Service with respect to such addressee;
‘‘(2) a change-of-address order so filed shall, to
the extent practicable, be given full force and effect;
and
‘‘(3) any mail for the addressee that is delivered
to the CMRA after the filing of an appropriate order
under this subsection shall be subject to subsection
(c).
‘‘(c) Mail described in subsection (b)(3) shall, if
marked for forwarding and remailed by the CMRA, be for-
warded by the Postal Service in the same manner as, and
subject to the same terms and conditions (including limita-
tions on the period of time for which a change-of-address
order shall be given effect) as apply to, mail forwarded
directly by the Postal Service to the addressee.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 36 of title 39, United States
Code, is amended by adding after the item relating to sec-
tion 3685 the following:
‘‘3686. Change-of-address order involving a commercial mail receiving agency.’’.
SEC. 215. RATES FOR MAIL UNDER FORMER SECTION 4358.
Section 3626 of title 39, United States Code, is
amended by adding at the end the following:
104
‘‘(n) In the administration of this section, matter that
satisfies the circulation standards for requester publica-
tions shall not be excluded from being mailed at the rates
for mail under former section 4358 solely because such
matter is designed primarily for free circulation or for cir-
culation at nominal rates, or fails to meet the require-
ments of former section 4354(a)(5).’’.
TITLE III—GENERAL AUTHORITY
SEC. 301. RULEMAKING AUTHORITY.
Paragraph (2) of section 401 of title 39, United
States Code, is amended to read as follows:
‘‘(2) to adopt, amend, and repeal such rules
and regulations, not inconsistent with this title, as
may be necessary in the execution of its functions
under this title;’’.
SEC. 302. GENERAL DUTIES.
Section 403(c) of title 39, United States Code, is
amended—
(1) by inserting ‘‘domestic or international’’
after ‘‘users of the’’; and
(2) by striking ‘‘user.’’ and inserting ‘‘user, ex-
cept that this subsection shall not apply to competi-
tive products (as defined in chapter 37).’’.
105
SEC. 303. EMPLOYMENT OF POSTAL POLICE OFFICERS.
Section 404 of title 39, United States Code, is
amended by adding at the end the following:
‘‘(c)(1) The Postal Service may employ guards for all
buildings and areas owned or occupied by the Postal Serv-
ice or under the charge and control of the Postal Service,
and such guards shall have, with respect to such property,
the powers of special policemen provided by the first sec-
tion of the Act cited in paragraph (2), and, as to such
property, the Postmaster General (or his designee) may
take any action that the Administrator of General Services
(or his designee) may take under section 2 or 3 of such
Act, attaching thereto penalties under the authority and
within the limits provided in section 4 of such Act.
‘‘(2) The Act cited in this paragraph is the Act of
June 1, 1948 (62 Stat. 281), commonly known as the Pro-
tection of Public Property Act.’’.
SEC. 304. DATE OF POSTMARK TO BE TREATED AS DATE OF
APPEAL IN CONNECTION WITH THE CLOSING
OR CONSOLIDATION OF POST OFFICES.
(a) IN GENERAL.—Section 404(b) of title 39, United
States Code, is amended by adding at the end the follow-
ing:
‘‘(6) For purposes of paragraph (5), any appeal re-
ceived by the Commission shall—
106
‘‘(A) if sent to the Commission through the
mails, be considered to have been received on the
date of the Postal Service postmark on the envelope
or other cover in which such appeal is mailed; or
‘‘(B) if otherwise lawfully delivered to the Com-
mission, be considered to have been received on the
date determined based on any appropriate docu-
mentation or other indicia (as determined under reg-
ulations of the Commission).’’.
(b) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall apply with respect to any
determination to close or consolidate a post office which
is first made available, in accordance with paragraph (3)
of section 404(b) of title 39, United States Code, after
the end of the 3-month period beginning on the date of
enactment of this Act.
SEC. 305. 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) In providing products and services and in estab-
lishing classifications, rates, and fees under this title, the
Postal Service, any corporation established under section
2012, and any other entity funded, in whole or in part,
107
by the Postal Service, shall not, directly or indirectly, ex-
cept as specifically authorized by law—
‘‘(1) provide any postal or nonpostal product or
service, with respect to which the Postal Service or
any such corporation or entity (as the case may be),
precludes competition or otherwise establishes the
terms of competition through regulation (including
standard-setting), licensing, or policy-setting;
‘‘(2)(A) establish any regulation (including any
standard) the effect of which is (or would be) to cre-
ate a monopoly or any competitive advantage for
itself, any such corporation or entity, or any other
person; or
‘‘(B) enter into any agreement, establish any
policy, or take any other action (not covered by sub-
paragraph (A)), the effect of which is (or would be)
to create a monopoly or any other unlawful competi-
tive advantage for itself, any such corporation or en-
tity, or any other person;
‘‘(3) regulate competition or engage in any reg-
ulatory or enforcement activity with respect to ac-
tions or practices that are subject to the antitrust
laws;
‘‘(4) obtain information from a person that pro-
vides, or seeks to provide, a postal or nonpostal
108
product or service, and subsequently disclose that in-
formation, or offer any product or service that uses
or is based in whole or in part on that information,
without the consent of the person providing that in-
formation, unless substantially the same information
is obtained from an independent source or is other-
wise obtained by the Postal Service, corporation, or
other entity (as the case may be) in a manner not
inconsistent with this paragraph; or
‘‘(5) compel the disclosure, transfer, or licens-
ing of intellectual property (such as patents, copy-
rights, trademarks, trade secrets, and proprietary in-
formation).
‘‘(b)(1) For purposes of this section, the term ‘anti-
trust laws’ has the meaning given such term in subsection
(a) of the first section of the Clayton Act (15 U.S.C.
12(a)), but includes section 5 of the Federal Trade Com-
mission Act (15 U.S.C. 45) to the extent that such section
5 applies to unfair methods of competition.
‘‘(2) Nothing in this section shall be construed as lim-
iting the scope or effect of intellectual property rights rec-
ognized under the laws of the United States.
‘‘(c) The Postal Regulatory Commission shall pre-
scribe regulations to carry out the purposes of this sec-
tion.’’.
109
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 4 of title 39, United States
Code, is amended by adding at the end the following:
‘‘404a. Specific limitations.’’.
SEC. 306. INTERNATIONAL POSTAL ARRANGEMENTS.
(a) INTERNATIONAL POSTAL ARRANGEMENTS.—
(1) 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
110
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, except that the Secretary may
not negotiate or conclude any treaty, convention, or other
international agreement (including those regulating inter-
national postal services) if such treaty, convention, or
agreement would, with respect to any competitive product
(as that term is defined in chapter 37), grant an undue
or unreasonable preference to the Postal Service, a private
provider 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—
‘‘(A) exercise primary authority for the conduct
of foreign policy with respect to international postal
services and international delivery services, including
the determination of United States positions and the
conduct of United States participation in negotia-
tions with foreign governments and international
111
bodies; in exercising this responsibility, the Secretary
shall coordinate with other agencies as appropriate,
and in particular, shall give full consideration to the
authority vested by law or Executive order in the
Postal Regulatory Commission, the Department of
Commerce, the Department of Transportation, and
the Office of the United States Trade Representative
in this area;
‘‘(B) maintain continuing liaison with other ex-
ecutive branch agencies concerned with postal and
delivery services;
‘‘(C) maintain continuing liaison with the Com-
mittee on Government Reform and Oversight of the
House of Representatives and the Committee on
Governmental Affairs of the Senate;
‘‘(D) maintain appropriate liaison with rep-
resentatives of the Postal Service to keep informed
of its interests and problems, and to provide such
assistance as may be needed to ensure that matters
of concern to the Postal Service are promptly consid-
ered by the Department of State or (if applicable,
and to the extent practicable) other executive branch
agencies;
‘‘(E) maintain appropriate liaison with rep-
resentatives of users and private providers of inter-
112
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
‘‘(F) assist in arranging meetings of such pub-
lic sector advisory groups as may be established to
advise the Department of State and other executive
branch agencies in connection with international
postal services and international delivery services.
‘‘(c) 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) must 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
113
and the Postal Regulatory Commission not later
than the effective date of such contract.
‘‘(d)(1) With respect to shipments of international
mail within the meaning of section 3741 that are exported
or imported by the Postal Service—
‘‘(A) the Postal Service shall not tender ex-
ported shipments to governmental authorities of any
other country for clearance and importation except
in accordance with procedures and laws which are
equally applicable to similar shipments transmitted
by private companies; and
‘‘(B)(i) subject to clause (ii), the Customs Serv-
ice and other appropriate Federal agencies shall
apply the customs laws of the United States and all
other laws relating to the importation or exportation
of such shipments in the same manner to both ship-
ments by the Postal Service and similar shipments
by private companies; and
‘‘(ii) the Customs Service and other Federal
agencies shall deny shipments imported by the Post-
al Service from a foreign country access to special
customs procedures established in accordance with
international postal or customs agreements for ship-
ments by postal authorities of other countries unless
that foreign country makes available such special
114
customs procedures both to shipments to such coun-
try from the United States by the Postal Service and
similar shipments to such country from the United
States by private companies.
‘‘(2)(A) The provisions of paragraph (1)(B)(i) shall
take effect beginning on the date of enactment of this sub-
section.
‘‘(B) The provisions of subparagraphs (A) and (B)(ii)
of paragraph (1) shall take effect beginning 5 years after
the date of enactment of this subsection.
‘‘(C) The Secretary of State shall, to the maximum
extent practicable, take such measures as are within the
control of the Secretary—
‘‘(i) to complete the renegotiation of any trea-
ties, conventions, or other international agreements
(including those regulating international postal serv-
ices), and
‘‘(ii) to encourage the governments of other
countries to make any changes in their laws (consist-
ent with the policies carried out by the provisions re-
ferred to in subparagraph (B)),
which may be necessary in order to facilitate the timely
implementation of the provisions that are subject to sub-
paragraph (B). The Secretary of State shall consult with
115
the United States Trade Representative and the Commis-
sioner of Customs in carrying out this subparagraph.
‘‘(3) 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.’’.
(2) EFFECTIVE DATE.—Notwithstanding para-
graph (1), the authority of the United States Postal
Service to establish the rates of postage or other
charges on mail matter conveyed between the United
States and other countries shall remain available to
the Postal Service until the date as of which the
baseline 
rates 
are 
determined 
under 
section
3721(e)(2) of title 39, United States Code (as
amended by section 201).
(b) TRADE-IN-SERVICES PROGRAM.—The second sen-
tence of paragraph (5) of section 306(a) of the Trade and
Tariff Act of 1984 (19 U.S.C. 2114b(5)) is amended by
inserting ‘‘postal and delivery services,’’ after ‘‘transpor-
tation,’’.
SEC. 307. SUITS BY AND AGAINST THE POSTAL SERVICE.
(a) IN GENERAL.—Section 409 of title 39, United
States Code, is amended by striking subsections (c)
through (e) and inserting the following:
116
‘‘(c) For purposes of the Act of July 5, 1946 (com-
monly referred to as the ‘Trademark Act of 1946’ (15
U.S.C. 1051 and following)), the Postal Service shall be
considered to be a ‘person’, as used in that Act, and shall
not be immune under any other doctrine of sovereign im-
munity from suit in Federal court by any person for any
violation of that Act by any officer or employee of the
Postal Service.
‘‘(d)(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
service which is not reserved to the United States under
section 1696 of title 18, the Postal Service or other Fed-
eral agency—
‘‘(A) shall not be immune under any doctrine of
sovereign immunity from suit in Federal court by
any person for any violation of law by such agency
or any officer or employee thereof;
‘‘(B) shall not be considered a ‘Federal agency’
for purposes of section 1346(b) and chapter 171 of
title 28, and shall be liable for actions in tort in the
same manner as a private company; and
‘‘(C) shall be considered to be a person (as de-
fined in subsection (a) of the first section of the
Clayton Act (15 U.S.C. 12(a)) for purposes of—
117
‘‘(i) the antitrust laws (as defined in sub-
section (a) of the first section of the Clayton
Act (15 U.S.C. 12(a)); and
‘‘(ii) section 5 of the Federal Trade Com-
mission Act (15 U.S.C. 45) to the extent that
such section 5 applies to unfair methods of
competition.
For purposes of the preceding sentence, any private car-
riage of mail allowable by virtue of section 601 shall not
be considered a service reserved to the United States
under section 1696 of title 18.
‘‘(2) This subsection shall not apply with respect to
conduct occurring before the date of enactment of this
subsection.
‘‘(e)(1) Motor vehicles owned or leased by the Postal
Service that are primarily and regularly used for the
transport or delivery of products in the competitive cat-
egory of mail shall be subject to Federal and State laws
and regulations associated with the parking and operation
of such motor vehicles, to the same extent and in the same
manner as if they were owned or leased by a private com-
pany.
‘‘(2) Any motor vehicle owned or leased by the Postal
Service that is primarily and regularly used for the trans-
port or delivery of products in the competitive category
118
of mail shall be clearly identified as such by appropriate
symbol or other marking.
‘‘(3) This subsection shall become effective on the
first day of the first ratemaking cycle.
‘‘(4) For purposes of this subsection—
‘‘(A) the terms ‘product in the competitive cat-
egory of mail’ and ‘ratemaking cycle’ have the mean-
ings given them by chapter 37; and
‘‘(B) the term ‘State’ includes the District of
Columbia, the Commonwealth of Puerto Rico, and a
territory or possession of the United States.
‘‘(f)(1) The Postal Service shall comply with—
‘‘(A) any zoning, planning, and land use regula-
tions applicable to State or local public entities; and
‘‘(B) any building codes applicable to State or
local public entities.
‘‘(2) For purposes of this subsection, the term ‘State’
has the meaning given such term by subsection (e).
‘‘(g)(1) The Postal Service shall employ attorneys by
contract or otherwise to conduct litigation on its behalf
in any litigation arising, in whole or in part, under any
of the following:
‘‘(A) Subsection (c), (d), or (e) of section 409
(relating to application of certain laws to the Postal
Service).
149
‘‘(1) who knowingly mails or causes to be
mailed any parcel, the contents of which constitute
or include any hazardous matter which has been de-
clared by statute or Postal Service regulation to be
nonmailable under any circumstances;
‘‘(2) who knowingly mails or causes to be
mailed a parcel in violation of any statute or Postal
Service regulation restricting the time, place, or
manner in which hazardous matter may be mailed;
or
‘‘(3) who knowingly manufactures, distributes,
or sells any container, packaging kit, or similar de-
vice that—
‘‘(A) is represented, marked, certified, or
sold by such person for use in the mailing of
any hazardous matter; and
‘‘(B) fails to conform with any statute or
Postal Service regulation setting forth stand-
ards for containers, packaging kits, or similar
devices used for the mailing of hazardous mat-
ter;
shall be liable to the Postal Service for a civil penalty in
an amount not to exceed $25,000 per violation.
‘‘(c) The Postal Service may enforce this section by
commencing a civil action in accordance with section