Source: https://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title39-chapter20&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGUzOS1zZWN0aW9uMjAwNQ%3D%3D%7C%7C%7C0%7Cfalse%7Cprelim&edition=prelim
Timestamp: 2020-08-09 06:14:00
Document Index: 164525813

Matched Legal Cases: ['§401', '§7003', '§4001', '§3', '§804', '§401', '§2002', '§401', '§4', '§2003', '§2', '§1725', '§3', '§101', '§201', '§101', '§201', '§6252', '§4004', '§638', '§7003', '§401', '§603', '§1008', '§105', '§7003', '§401', '§401', '§1008', '§603', '§7003', '§7003', '§638', '§638', '§101', '§201', '§101', '§201', '§7003', '§4004', '§1727', '§1721', '§6002', '§2004', '§7003', '§2005', '§3', '§502', '§502', '§502', '§502', '§502', '§502', '§3', '§401', '§401', '§2007', '§2', '§2008', '§2009', '§3', '§3', '§603', '§101', '§662', '§2009', '§4001', '§900', '§13101', '§101', '§4001', '§4001', '§2010', '§2011', '§401']

[USC02] 39 USC Ch. 20: FINANCE
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39 USC Ch. 20: FINANCE
CHAPTER 20—FINANCE
Capital of the Postal Service.
The Postal Service Fund.
Relationship between the Treasury and the Postal Service.
Public debt character of the obligations of the Postal Service.
Audit and expenditures.
Budgetary treatment of the Postal Service Fund.
Restrictions on agreements.
Provisions relating to competitive products.
2006—Pub. L. 109–435, title IV, §401(a)(2), Dec. 20, 2006, 120 Stat. 3225, added item 2011.
1997—Pub. L. 105–33, title VII, §7003(a)(2)(A), Aug. 5, 1997, 111 Stat. 663, struck out item 2004 "Transitional appropriations".
1989—Pub. L. 101–239, title IV, §4001(a)(2), Dec. 19, 1989, 103 Stat. 2133, added item 2009a.
Disposition of Savings Accruing to the United States Postal Service
Pub. L. 108–18, §3, Apr. 23, 2003, 117 Stat. 627, which provided for disposition of savings accruing to the United States Postal Service, was repealed by Pub. L. 109–435, title VIII, §804(a), Dec. 20, 2006, 120 Stat. 3253.
(1) "Fund" means the Postal Service Fund established by section 2003 of this chapter;
(2) Competitive products fund.—The term "Competitive Products Fund" means the Postal Service Competitive Products Fund established by section 2011; and
(3) "obligations", when referring to debt instruments issued by the Postal Service, means notes, bonds, debentures, mortgages, and any other evidence of indebtedness.
(Pub. L. 91–375, Aug. 12, 1970, 84 Stat. 738; Pub. L. 109–435, title IV, §401(b)(1), Dec. 20, 2006, 120 Stat. 3225.)
2006—Pars. (2), (3). Pub. L. 109–435 added par. (2) and redesignated former par. (2) as (3).
§2002. Capital of the Postal Service
(a) The initial capital of the Postal Service shall consist of the equity, as reflected in the budget of the President, of the Government of the United States in the former Post Office Department. The value of assets and the amount of liabilities transferred to the Postal Service upon the commencement of operations of the Postal Service shall be determined by the Postal Service subject to the approval of the Comptroller General, in accordance with the following guidelines:
(1) Assets shall be valued on the basis of original cost less depreciation, to the extent that such value can be determined. The value recorded on the former Post Office Department's books of account shall be prima facie evidence of asset value.
(2) All liabilities attributable to operations of the former Post Office Department shall remain liabilities of the Government of the United States, except that upon commencement of operations of the Postal Service, the unexpended balances of appropriations made to, held or used by, or available to the former Post Office Department and all liabilities chargeable thereto shall become assets and liabilities, respectively, of the Postal Service.
(b) The capital of the Postal Service at any time shall consist of its assets, including the balance in the Fund and the balance in the Competitive Products Fund, less its liabilities.
(c) The Postal Service, and the Administrator of General Services where properties under the jurisdiction of the Administrator are involved, with the approval of the Director of the Office of Management and Budget, shall determine which Federal properties shall be transferred to the Postal Service and which shall remain under the jurisdiction of any other department, agency, or establishment of the Government of the United States upon the commencement of operations of the Postal Service. The transfer shall be accomplished at the time of or as near as possible to the commencement of operations of the Postal Service and the valuation of the assets and capital of the Postal Service shall be adjusted accordingly. The following properties shall be included in the transfer:
(1) the mail equipment shops located in Washington, District of Columbia;
(2) all machinery, equipment, and appurtenances of the former Post Office Department;
(3) all real property whose ownership was acquired by the Postmaster General under former section 2103 of this title, as in effect immediately prior to the effective date of this section, or which immediately prior to such effective date, is under the administration of the former Post Office Department for the purpose of constructing a postal building from funds appropriated or transferred to the former Post Office Department, together with all funds appropriated or allocated therefor;
(4) all real property 55 percent or more of which is occupied by or under control of the former Post Office Department immediately prior to the effective date of this section;
(5) all contracts, records, and documents relating to the operation of the departmental service and the postal field service of the former Post Office Department; and
(6) all other property and assets of the former Post Office Department.
(d) After the commencement of operations of the Postal Service, the President is authorized to transfer to the Postal Service, and the Postal Service is authorized to transfer to other departments, agencies, or independent establishments of the Government of the United States, with or without reimbursement, any property of that department, agency, or independent establishment and the Postal Service, respectively, when the public interest would be served by such transfer.
(Pub. L. 91–375, Aug. 12, 1970, 84 Stat. 738; Pub. L. 109–435, title IV, §401(b)(2), Dec. 20, 2006, 120 Stat. 3225.)
2006—Subsec. (b). Pub. L. 109–435 substituted "Fund and the balance in the Competitive Products Fund," for "Fund,".
Pub. L. 91–375, §4(b), Aug. 12, 1970, 84 Stat. 774, provided that: "Postal revenues and fees collected on and after the effective date of this section [see note below] shall be considered assets of the Postal Service."
Provisions of section 4(b) of Pub. L. 91–375 effective within 1 year after Aug. 12, 1970, on date established therefor by the Board of Governors of the United States Postal Service and published by it in the Federal Register, see section 15(a) of Pub. L. 91–375, set out as an Effective Date note preceding section 101 of this title.
§2003. The Postal Service Fund
(e)(1) 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 parenthetical 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 General, subject to the availability of amounts appropriated under section 8G(f) of the Inspector General Act of 1978. The Postmaster General shall transfer from the Fund to the Secretary of the Treasury for deposit in the Department of the Treasury Forfeiture Fund amounts appropriate to reflect the degree of participation of Department of the Treasury law enforcement organizations (described in section 9705(o) of title 31) in the law enforcement effort resulting in the forfeiture pursuant to laws enforced or administered by the Postal Service. Neither the Fund nor any of the funds credited to it shall be subject to apportionment under the provisions of subchapter II of chapter 15 of title 31.
(h) Liabilities of the former Post Office Department to the Employees' Compensation Fund (appropriations for which were authorized by former section 2004, as in effect before the effective date of this subsection) shall be liabilities of the Postal Service payable out of the Fund.
(Pub. L. 91–375, Aug. 12, 1970, 84 Stat. 739; Pub. L. 94–421, §2(c), Sept. 24, 1976, 90 Stat. 1304; Pub. L. 97–35, title XVII, §1725, Aug. 13, 1981, 95 Stat. 760; Pub. L. 97–258, §3(l)(1), Sept. 13, 1982, 96 Stat. 1066; Pub. L. 99–500, §101(m) [title II, §201(b)], Oct. 18, 1986, 100 Stat. 1783–308, 1783-314, and Pub. L. 99–591, §101(m) [title II, §201(b)], Oct. 30, 1986, 100 Stat. 3341–308, 3341-314; Pub. L. 100–690, title VI, §6252, Nov. 18, 1988, 102 Stat. 4362; Pub. L. 101–239, title IV, §4004(a), Dec. 19, 1989, 103 Stat. 2135; Pub. L. 102–393, title VI, §638(g), Oct. 6, 1992, 106 Stat. 1790; Pub. L. 105–33, title VII, §7003(a)(2)(B), (b), Aug. 5, 1997, 111 Stat. 663; Pub. L. 109–435, title IV, §401(b)(3), title VI, §603(c)(2), title X, §1008(c)(1), Dec. 20, 2006, 120 Stat. 3225, 3241, 3260; Pub. L. 114–22, title I, §105(c)(2)(A)(iii), May 29, 2015, 129 Stat. 237.)
Section 2004, as in effect before the effective date of this subsection, referred to in subsec. (h), means section 2004 of this title, as in effect before Oct. 1, 1997. Section 2004 was repealed by Pub. L. 105–33, title VII, §7003(a)(1), Aug. 5, 1997, 111 Stat. 663.
2015—Subsec. (e)(1). Pub. L. 114–22 substituted "section 9705(o)" for "section 9703(p)".
2006—Subsec. (a). Pub. L. 109–435, §401(b)(3)(A), substituted "title (other than any of the purposes, functions, or powers for which the Competitive Products Fund is available)" for "title".
Subsec. (b). Pub. L. 109–435, §401(b)(3)(B), substituted "Except as otherwise provided in section 2011, there" for "There".
Subsec. (b)(9). Pub. L. 109–435, §1008(c)(1), added par. (9).
Subsec. (e)(1). Pub. L. 109–435, §603(c)(2), substituted "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 parenthetical 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 General, subject to the availability of amounts appropriated under section 8G(f) of the Inspector General Act of 1978." for "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, subject to the provisions of section 3604 of this title, all of the expenses of the Postal Rate Commission."
1997—Subsec. (e)(2). Pub. L. 105–33, §7003(a)(2)(B), substituted "section 2401" for "sections 2401 and 2004" in two places.
Subsec. (h). Pub. L. 105–33, §7003(b), added subsec. (h).
1992—Subsec. (b)(8). Pub. L. 102–393, §638(g)(1), added par. (8).
Subsec. (e)(1). Pub. L. 102–393, §638(g)(2), inserted after first sentence "The Postmaster General shall transfer from the Fund to the Secretary of the Treasury for deposit in the Department of the Treasury Forfeiture Fund amounts appropriate to reflect the degree of participation of Department of the Treasury law enforcement organizations (described in section 9703(p) of title 31) in the law enforcement effort resulting in the forfeiture pursuant to laws enforced or administered by the Postal Service."
1988—Subsec. (b)(7). Pub. L. 100–690 struck out "administrative" after "civil" and "under title 18" after "Service".
1986—Subsec. (b)(7). Pub. L. 99–500 and Pub. L. 99–591, §101(m) [title II, §201(b)(1)–(3)], added par. (7).
Subsec. (e)(1). Pub. L. 99–500 and Pub. L. 99–591, §101(m) [title II, §201(b)(4)], substituted "as provided by law" for "under this title".
1982—Subsec. (e)(1). Pub. L. 97–258 substituted "subchapter II of chapter 15 of title 31" for "section 665 of title 31".
Pub. L. 105–33, title VII, §7003(c), Aug. 5, 1997, 111 Stat. 663, provided that:
"(1) In general.—This section [amending this section and repealing section 2004 of this title] and the amendments made by this section shall take effect on the date of the enactment of this Act [Aug. 5, 1997] or October 1, 1997, whichever is later.
"(2) Provisions relating to payments for fiscal year 1998.—
"(A) Amounts not yet paid.—No payment may be made to the Postal Service Fund, on or after the date of the enactment of this Act, pursuant to any appropriation for fiscal year 1998 authorized by section 2004 of title 39, United States Code (as in effect before the effective date of this section).
"(B) Amounts paid.—If any payment to the Postal Service Fund is or has been made pursuant to an appropriation for fiscal year 1998 authorized by such section 2004, then, an amount equal to the amount of such payment shall be paid from such Fund into the Treasury as miscellaneous receipts before October 1, 1998."
Pub. L. 101–239, title IV, §4004(b), Dec. 19, 1989, 103 Stat. 2135, provided that: "The amendment made by subsection (a) [amending this section] shall take effect on October 1, 1989."
Pub. L. 97–35, title XVII, §1727, Aug. 13, 1981, 95 Stat. 761, provided that: "The provisions of this subtitle [subtitle B (§§1721–1727) of title XVII of Pub. L. 97–35, amending this section and section 2401 of this title and enacting provisions set out as notes under sections 403, 2004, and 2401 of this title] (other than section 1726 and this section) shall take effect on October 1, 1981. The provisions of sections 1726 [enacting a provision set out as a note under section 403 of this title] and this section [enacting this provision] shall take effect on the date of the enactment of this Act [Aug. 13, 1981]."
Pub. L. 100–203, title VI, §6002, Dec. 22, 1987, 101 Stat. 1330–276, provided that:
"(a) Establishment of Postal Service Escrow Fund.—There is established as a separate account in the United States Treasury, the 'Postal Service Escrow Fund'. Such Fund shall—
"(1) have such amounts described under subsection (b)(2) deposited no later than October 31, 1988;
"(2) not be available for expenditures of any amounts therein during the existence of such Fund; and
"(3) cease to exist on October 1, 1989, and on such date all amounts deposited in such Fund under subsection (b)(2) shall be deposited in the Postal Service Fund established under section 2003 of title 39, United States Code.
"(b) Deposit of Certain Savings in Certain Funds.—
"(1) Fiscal year 1988.—From all funds available to the United States Postal Service in fiscal year 1988, the Postal Service shall deposit into the Civil Service Retirement and Disability Fund established under section 8348 of title 5, United States Code, an amount of $350,000,000 in fiscal year 1988, in addition to any amount deposited pursuant to subsection (h) of such section.
"(2) Fiscal year 1989.—From all funds available to the United States Postal Service in fiscal year 1989, the Postal Service shall deposit into the Postal Service Escrow Fund an amount of $465,000,000 no later than October 31, 1988.
"(c) Capital Limitations for Fiscal Years 1988 and 1989.—
"(1) The United States Postal Service may not make any commitment or obligation to expend any monies deposited in the Postal Service Fund established under section 2003 of title 39, United States Code, for the capital investment program—
"(A) in excess of $625,000,000 in fiscal year 1988; and
"(B) in excess of $1,995,000,000 in fiscal year 1989.
"(2) Capital investment programs.—For the purposes of paragraph (1) the term 'capital investment program' shall include all investments in long-term assets and capital investment expenditures (including direct and indirect costs associated with such investments and expenditures, such as obligations through contracts)."
[§2004. Repealed. Pub. L. 105–33, title VII, §7003(a)(1), Aug. 5, 1997, 111 Stat. 663]
Repeal effective Oct. 1, 1997, with special provisions relating to payments for fiscal year 1998, see section 7003(c) of Pub. L. 105–33, set out as an Effective Date of 1997 Amendment note under section 2003 of this title.
§2005. Obligations
(a)(1) The Postal Service is authorized to borrow money and to issue and sell such obligations as it determines necessary to carry out the purposes of this title, other than any of the purposes for which the corresponding authority is available to the Postal Service under section 2011. The aggregate amount of obligations issued by the Postal Service which may be outstanding at any one time shall not exceed the maximum amount then allowable under paragraph (2) of this subsection. In any one fiscal year, the net increase in the amount of obligations outstanding issued for the purpose of capital improvements and the net increase in the amount of obligations outstanding issued for the purpose of defraying operating expenses of the Postal Service shall not exceed a combined total of $3,000,000,000.
(A) $10,000,000,000 for fiscal year 1990;
(B) $12,500,000,000 for fiscal year 1991; and
(C) $15,000,000,000 for fiscal year 1992 and each fiscal year thereafter.
(3) For purposes of applying the respective limitations under this subsection, the aggregate amount of obligations issued by the Postal Service which are outstanding as of any one time, and the net increase in the amount of obligations outstanding issued by the Postal Service for the purpose of capital improvements or for the purpose of defraying operating expenses of the Postal Service in any fiscal year, shall be determined by aggregating the relevant obligations issued by the Postal Service under this section with the relevant obligations issued by the Postal Service under section 2011.
(b)(1) The Postal Service may pledge the assets of the Postal Service and pledge and use its revenues and receipts for the payment of the principal of or interest on obligations issued by the Postal Service under this section, for the purchase or redemption thereof, and for other purposes incidental 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. The Postal Service is authorized to enter into binding covenants with the holders of such obligations, and with the trustee, if any, under any agreement entered into in connection with the issuance thereof with respect to the establishment of reserve, sinking, and other funds, application and use of revenues and receipts of the Postal Service, stipulations concerning the subsequent issuance of obligations or the execution of leases or lease purchases relating to properties of the Postal Service and such other matters as the Postal Service deems necessary or desirable to enhance the marketability of such obligations.
(A) the authority to pledge assets of the Postal Service under this subsection shall be available only to the extent that such assets are not related to the provision of competitive products (as determined under section 2011(h) or, for purposes of any period before accounting practices and principles under section 2011(h) have been established and applied, the best information available from the Postal Service, including the audited statements required by section 2008(e)); and
(B) any authority under this subsection relating to the pledging or other use of revenues or receipts of the Postal Service shall be available only to the extent that they are not revenues or receipts of the Competitive Products Fund.
(1) shall be in such forms and denominations;
(2) shall be sold at such times and in such amounts;
(3) shall mature at such time or times;
(4) shall be sold at such prices;
(5) shall bear such rates of interest;
(6) may be redeemable before maturity in such manner, at such times, and at such redemption premiums;
(7) may be entitled to such relative priorities of claim on the assets of the Postal Service with respect to principal and interest payments; and
(8) shall be subject to such other terms and conditions;
(1) be negotiable or nonnegotiable and bearer or registered instruments, as specified therein and in any indenture or covenant relating thereto;
(2) contain a recital that they are issued under this section, and such recital shall be conclusive evidence of the regularity of the issuance and sale of such obligations and of their validity;
(3) be lawful investments and may be accepted as security for all fiduciary, trust, and public funds, the investment or deposit of which shall be under the authority or control of any officer or agency of the Government of the United States, and the Secretary of the Treasury or any other officer or agency having authority over or control of any such fiduciary, trust, or public funds, may at any time sell any of the obligations of the Postal Service acquired under this section;
(4) be exempt both as to principal and interest from all taxation now or hereafter imposed by any State or local taxing authority except estate, inheritance, and gift taxes; and
(5) not be obligations of, nor shall payment of the principal thereof or interest thereon be guaranteed by, the Government of the United States, except as provided in section 2006(c) of this title.
(Pub. L. 91–375, Aug. 12, 1970, 84 Stat. 740; Pub. L. 101–227, §3(a), Dec. 12, 1989, 103 Stat. 1944; Pub. L. 109–435, title V, §502, Dec. 20, 2006, 120 Stat. 3233.)
2006—Subsec. (a)(1). Pub. L. 109–435, §502(c)(2), substituted "obligations issued by the Postal Service which may be" for "any such obligations" in second sentence.
Pub. L. 109–435, §502(b), substituted third sentence for former third sentence which read: "In any one fiscal year the net increase in the amount of obligations outstanding issued for the purpose of capital improvements shall not exceed $2,000,000,000, and the net increase in the amount of obligations outstanding issued for the purpose of defraying operating expenses of the Postal Service shall not exceed $1,000,000,000."
Pub. L. 109–435, §502(a), substituted "title, other than any of the purposes for which the corresponding authority is available to the Postal Service under section 2011" for "title" in first sentence.
Subsec. (a)(3). Pub. L. 109–435, §502(c)(1), added par. (3).
Subsec. (b). Pub. L. 109–435, §502(d), substituted "obligations issued by the Postal Service under this section," for "such obligations,", designated existing provisions as par. (1), and added par. (2).
1989—Subsec. (a). Pub. L. 101–227 designated existing provisions as par. (1), substituted "the maximum amount then allowable under paragraph (2) of this subsection" for "$10,000,000,000", "$2,000,000,000" for "$1,500,000,000", and "$1,000,000,000" for "$500,000,000" and added par. (2).
Pub. L. 101–227, §3(b), Dec. 12, 1989, 103 Stat. 1944, provided that:
"(1) Subject to the provisions of paragraph (2), the amendments made by subsection (a) [amending this section] shall take effect on October 1, 1990.
"(2) Notwithstanding any other provision of this section, the amendments made by subsection (a) shall not take effect, if no law to provide for reconciliation pursuant to section 5 of the concurrent resolution on the budget for the fiscal year 1990 is enacted before October 1, 1990." [Omnibus Budget Reconciliation Act of 1989, Pub. L. 101–239, Dec. 19, 1989, 103 Stat. 2106, was enacted Dec. 19, 1989.]
(c) Notwithstanding section 2005(d)(5) or 2011(e)(4)(E) of this title, obligations issued by the Postal Service shall be obligations of the Government of the United States, and payment of principal and interest thereon shall be fully guaranteed by the Government of the United States, such guaranty being expressed on the face thereof, if and to the extent that—
(Pub. L. 91–375, Aug. 12, 1970, 84 Stat. 741; Pub. L. 109–435, title IV, §401(b)(4), Dec. 20, 2006, 120 Stat. 3225.)
2006—Subsec. (a). Pub. L. 109–435, §401(b)(4)(A), inserted "or 2011" after "section 2005" in first sentence.
§2007. Public debt character of the obligations of the Postal Service
For the purpose of any purchase of the obligations of the Postal Service, the Secretary of the Treasury is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under chapter 31 of title 31, as now or hereafter in force, and the purposes for which securities may be issued under chapter 31 of title 31, as now or hereafter in force, are extended to include any purchases of the obligations of the Postal Service under this chapter. The Secretary of the Treasury may, at any time, sell any of the obligations of the Postal Service acquired by him under this chapter. All redemptions, purchases, and sales by the Secretary of the obligations of the Postal Service shall be treated as public debt transactions of the United States.
(Pub. L. 91–375, Aug. 12, 1970, 84 Stat. 741; Pub. L. 97–452, §2(f), Jan. 12, 1983, 96 Stat. 2479.)
1983—Pub. L. 97–452 substituted "chapter 31 of title 31" for "the Second Liberty Bond Act" wherever appearing.
§2008. Audit and expenditures
(a) The accounts and operations of the Postal Service shall be audited by the Comptroller General and reports thereon made to the Congress to the extent and at such times as he may determine.
(b) The Postal Service shall maintain an adequate internal audit of the financial transactions of the Postal Service.
(c) Subject only to the provisions of this chapter, the Postal Service is authorized to make such expenditures and to enter into such contracts, agreements, and arrangements, upon such terms and conditions and in such manner as it deems necessary, including the final settlement of all claims and litigation by or against the Postal Service.
(d) Nothing in this section shall be construed as denying to the Postal Service the power to obtain audits of the accounts of the Postal Service and reports concerning its financial condition and operations by certified public accounting firms. Such audits and reports shall be in addition to those required by this section.
(e) At least once each year beginning with the fiscal year commencing after June 30, 1971, the Postal Service shall obtain a certification from an independent, certified public accounting firm of the accuracy of any financial statements of the Postal Service used in determining and establishing postal rates.
§2009. Annual budget
The Postal Service shall cause to be prepared annually a budget program which shall be submitted to the Office of Management and Budget, under such rules and regulations as the President may establish as to the date of submission, the form and content, the classifications of data, and the manner in which such budget program shall be prepared and presented. The budget program shall be a business-type budget, or plan of operations, with due allowance given to the need for flexibility, including provision for emergencies and contingencies, in order that the Postal Service may properly carry out its activities as authorized by law. The budget program shall contain estimates of the financial condition and operations of the Postal Service for the current and ensuing fiscal years and the actual condition and results of operation for the last completed fiscal year. Such budget program shall include a statement of financial condition, a statement of income and expense, an analysis of surplus or deficit, a statement of sources and application of funds, and such other supplementary statements and information as are necessary or desirable to make known the financial condition and operations of the Postal Service. Such statements shall include estimates of operations by major types of activities, together with estimates of administrative expenses and estimates of borrowings. The budget program shall also include separate statements of the 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 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. The President shall include these amounts, with his recommendations but without revision, in the budget transmitted to Congress under section 1105 of title 31.
(Pub. L. 91–375, Aug. 12, 1970, 84 Stat. 742; Pub. L. 93–328, §3, June 30, 1974, 88 Stat. 288; Pub. L. 97–258, §3(l)(2), Sept. 13, 1982, 96 Stat. 1066; Pub. L. 109–435, title VI, §603(c)(1), Dec. 20, 2006, 120 Stat. 3241.)
2006—Pub. L. 109–435 substituted "The budget program shall also include separate statements of the 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 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." for "The budget program shall also include separate statements of the amounts which the Postal Service requests to be appropriated under subsections (b) and (c) of section 2401 of this title."
1982—Pub. L. 97–258 substituted "section 1105 of title 31" for "section 11 of title 31".
1974—Pub. L. 93–328 required the budget program to include separate statements of the amounts which the Postal Service requests to be appropriated under section 2401(b) and (c) of this title and the President to include these amounts in the budget transmitted to Congress.
Amendment by Pub. L. 109–435 applicable with respect to fiscal years beginning on or after Oct. 1, 2008, subject to savings provisions, see section 603(d) of Pub. L. 109–435, set out as a note under section 8G of the Inspector General Act of 1978, Pub. L. 95–452, in the Appendix to Title 5, Government Organization and Employees.
Pub. L. 104–208, div. A, title I, §101(f) [title VI, §662(a)(3)], Sept. 30, 1996, 110 Stat. 3009–314, 3009-379, provided that: "For purposes of the fifth sentence of section 2009 of title 39, United States Code, the operations of the Office of Inspector General of the United States Postal Service shall be considered a major type of activity."
§2009a. Budgetary treatment of the Postal Service Fund
(1) shall not be included in the totals of—
(A) the budget of the United States Government as submitted by the President, or
(3) shall be exempt from any order issued under part C of the Balanced Budget and Emergency Deficit Control Act of 1985, and shall not be counted for purposes of calculating the deficit under section 3(6) of the Congressional Budget and Impoundment Control Act of 1974 for purposes of comparison with the maximum deficit amount under the Balanced Budget and Emergency Deficit Control Act of 1985 nor counted in calculating the excess deficit for purposes of sections 251 and 252 1 of the Balanced Budget and Emergency Deficit Control Act of 1985, for any fiscal year.
(Added Pub. L. 101–239, title IV, §4001(a)(1), Dec. 19, 1989, 103 Stat. 2133.)
The Balanced Budget and Emergency Deficit Control Act of 1985, referred to in par. (3), is title II of Pub. L. 99–177, Dec. 12, 1985, 99 Stat. 1038. Part C of the Act is classified generally to subchapter I (§900 et seq.) of chapter 20 of Title 2, The Congress. Sections 251 and 252 of the Act are classified to sections 901 and 902, respectively, of Title 2, and were amended generally by Pub. L. 101–508, title XIII, §13101(a), Nov. 5, 1990, 104 Stat. 1388–577, 1388-581. Section 251 of the Act was further amended generally by Pub. L. 112–25, title I, §101, Aug. 2, 2011, 125 Stat. 241. For complete classification of this Act to the Code, see Short Title note set out under section 900 of Title 2 and Tables.
Section 3(6) of the Congressional Budget and Impoundment Control Act of 1974, referred to in par. (3), is classified to section 622(6) of Title 2.
Pub. L. 101–239, title IV, §4001(c), Dec. 19, 1989, 103 Stat. 2133, provided that: "The amendments made by this section [enacting this section] shall apply with respect to budgets for fiscal years beginning after September 30, 1989."
Pub. L. 101–239, title IV, §4001(b), Dec. 19, 1989, 103 Stat. 2133, provided that: "Nothing in any amendment made by subsection (a) [enacting this section] shall be considered to diminish the oversight responsibilities or authority of the Congress under law, rule, or regulation with respect to the budget and operations of the United States Postal Service."
§2010. Restrictions on agreements
The Postal Service shall promote modern and efficient operations and should refrain from expending any funds, engaging in any practice, or entering into any agreement or contract, other than an agreement or contract under chapter 12 of this title, which restricts the use of new equipment or devices which may reduce the cost or improve the quality of postal services, except where such restriction is necessary to insure safe and healthful employment conditions.
(Pub. L. 91–375, Aug. 12, 1970, 84 Stat. 742.)
§2011. Provisions relating to competitive products
(a)(1) In this subsection, the term "costs attributable" has the meaning given such term by section 3631.
(2) 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 available to the Postal Service without fiscal year limitation for the payment of—
(A) costs attributable to competitive products; and
(B) all other costs incurred by the Postal Service, to the extent allocable to competitive products.
(b) There shall be deposited in the Competitive Products Fund, subject to withdrawal by the Postal Service—
(1) revenues from competitive products;
(2) amounts received from obligations issued by Postal Service under subsection (e);
(3) interest and dividends earned on investments of the Competitive Products Fund; and
(4) any other receipts of the Postal Service (including from the sale of assets), to the extent allocable to competitive products.
(c) If the Postal Service determines that the moneys of the Competitive Products Fund are in excess of current needs, the Postal Service may request the investment of such amounts as the Postal Service determines advisable by the Secretary of the Treasury in obligations of, or obligations guaranteed by, the Government of the United States, and, with the approval of the Secretary, in such other obligations or securities as the Postal Service determines appropriate.
(d) With the approval of the Secretary of the Treasury, the Postal Service may deposit moneys of the Competitive Products Fund in any Federal Reserve bank, any depository for public funds, or in such other places and in such manner as the Postal Service and the Secretary may mutually agree.
(e)(1)(A) 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 the Postal Service determines necessary to provide for competitive products and deposit such amounts in the Competitive Products Fund.
(B) Subject to paragraph (5), any borrowings by the Postal Service under subparagraph (A) shall be supported and serviced by—
(i) the revenues and receipts from competitive products and the assets related to the provision of competitive products (as determined under subsection (h)); or
(ii) 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).
(2) The Postal Service may enter into binding covenants with the holders of such obligations, and with any trustee under any agreement entered into in connection with the issuance of such obligations with respect to—
(A) the establishment of reserve, sinking, and other funds;
(B) application and use of revenues and receipts 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 marketability of such obligations.
(3) Obligations issued by the Postal Service under this subsection—
(A) shall be in such forms and denominations;
(B) shall be sold at such times and in such amounts;
(C) shall mature at such time or times;
(D) shall be sold at such prices;
(E) shall bear such rates of interest;
(F) may be redeemable before maturity in such manner, at such times, and at such redemption premiums;
(G) may be entitled to such relative priorities of claim on the assets of the Postal Service with respect to principal and interest payments; and
(H) shall be subject to such other terms and conditions,
(4) Obligations issued by the Postal Service under this subsection—
(A) shall be negotiable or nonnegotiable and bearer or registered instruments, as specified therein and in any indenture or covenant relating thereto;
(B) shall contain a recital that such obligations are issued under this section, and such recital shall be conclusive evidence of the regularity of the issuance and sale of such obligations and of their validity;
(C) shall be lawful investments and may be accepted as security for all fiduciary, trust, and public funds, the investment or deposit of which shall be under the authority or control of any officer or agency of the Government of the United States, and the Secretary of the Treasury or any other officer or agency having authority over or control of any such fiduciary, trust, or public funds, may at any time sell any of the obligations of the Postal Service acquired under this section;
(D) shall not be exempt either as to principal or interest from any taxation now or hereafter imposed by any State or local taxing authority; and
(E) except as provided in section 2006(c), shall not be obligations of, nor shall payment of the principal thereof or interest thereon be guaranteed by, the Government of the United States, and the obligations shall so plainly state.
(5) The Postal Service shall make payments of principal, or interest, or both on obligations issued under this section out of revenues and receipts from competitive products and 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, including the audited statements required by section 2008(e). For purposes of this subsection, the total assets of the Competitive Products Fund shall be the greater of—
(A) the assets related to the provision of competitive products as calculated under subsection (h); or
(B) the percentage of total Postal Service revenues and receipts from competitive products times the total assets of the Postal Service.
(f) The receipts and disbursements of the Competitive 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 (or settlement of a claim) against the Postal Service or the Government of the United States shall be paid out of the Competitive Products Fund to the extent that the judgment or claim arises out of activities of the Postal Service in the provision of competitive products.
(2)(A) Upon receiving the recommendations of the Secretary of the Treasury under paragraph (1), the Commission shall give interested parties, including the Postal Service, users of the mails, and an officer of the Commission 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 Commission considers appropriate.
(B)(i) After due consideration of the views and other information received under subparagraph (A), the Commission shall by rule—
(I) provide for the establishment and application of the accounting practices and principles which shall be followed by the Postal Service;
(II) provide for the establishment and application of the substantive and procedural rules described under paragraph (1)(A)(ii); and
(III) provide for the submission by the Postal Service to the Postal Regulatory Commission of annual and other periodic reports setting forth such information as the Commission may require.
(ii) Final rules under this subparagraph shall be issued not later than 12 months after the date on which recommendations are submitted under paragraph (1) (or by such later date on which the Commission and the Postal Service may agree). The Commission is authorized to promulgate regulations revising such rules.
(C)(i) Reports described under subparagraph (B)(i)(III) shall be submitted at such time and in such form, and shall include such information, as the Commission by rule requires.
(ii) The Commission may, on its own motion or on request of an interested party, initiate proceedings (to be conducted in accordance with such rules as the Commission shall prescribe) to improve the quality, accuracy, or completeness of Postal Service information under subparagraph (B)(i)(III) 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 interest.
(D) A copy of each report described under subparagraph (B)(i)(III) shall be submitted by the Postal Service to the Secretary of the Treasury and the Inspector General of the United States Postal Service.
(i)(1) The Postal Service shall submit an annual report to the Secretary of the Treasury concerning the operation of the Competitive Products Fund. The report shall address such matters as risk limitations, reserve balances, allocation or distribution of moneys, liquidity requirements, and measures to safeguard against losses.
(2) A copy of the most recent report submitted under paragraph (1) shall be included in the annual report submitted by the Postal Regulatory Commission under section 3652(g).
(Added Pub. L. 109–435, title IV, §401(a)(1), Dec. 20, 2006, 120 Stat. 3221.)