A bill to amend chapter 36 of title 39, United States Code, to modify rates relating to reduced rate mail matter, and for other purposes.
PL 106-384 (S.2686), enacted 10/27/2000

114 STAT. 1460 
PUBLIC LAW 106-384—OCT. 27, 2000 
Public Law 106-384 
106th Congress 
An Act 
Oct. 27, 2000 
To amend chapter 36 of title 39, United States Code, to modify rates relating 
[g 2686] 
*° reduced rate mail matter, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SPECIAL RATEMAKING PROVISIONS. 
(a) ESTABLISHMENT OF REGULAR RATES FOR MAIL CLASSES WITH 
CERTAIN PREFERRED SUBCLASSES.—Section 3622 of title 39, United 
States Code, is amended— 
(1) by redesignating subsection (c) as subsection (d); and 
(2) by inserting sifter subsection (b) the following: 
"(c) Regular rates for each class or subclass of mail that includes 
1 or more special rate categories for mail under former section 
4358 (d) or (e), 4452 (b) or (c), or 4554 (b) or (c) of this title 
shall be established by applying the policies of this title, including 
the factors of section 3622(b) of this title, to the costs attributable 
to the regular rate mail in each class or subclass combined with 
the mail in the corresponding special rate categories authorized 
by former section 4358 (d) or (e), 4452 (b) or (c), or 4554 (b) 
or (c) of this title.". 
(b) RESIDUAL RULE FOR PREFERRED PERIODICAL MAIL.—Section 
3626(a)(3)(A) of title 39, United States Code, is amended to read 
as follows: 
"(3)(A) Except as provided in paragraph (4) or (5), rates 
of postage for a class of mail or kind of mailer under former 
section 4358 of this title shall be established in a manner 
such that the estimated revenues to be received by the Postal 
Service from such class of mail or kind of mailer shall be 
equal to the sum of— 
"(i) the estimated costs attributable to such class of 
mail or kind of mailer; and 
"(ii) the product derived by multiplying the estimated 
costs referred to in clause (i) by the applicable percentage 
under subparagraph (B).". 
(c) SPECIAL RULE FOR NONPROFIT AND CLASSROOM PERIODI-
CALS.—Section 3626(a)(4) of title 39, United States Code, is 
amended to read as follows: 
"(4)(A) Except as specified in subparagraph (B), rates of 
postage for a class of mail or kind of mailer under former 
section 4358 (d) or (e) of this title shall be established so 
that postage on each mailing of such mail shall be as nearly 
as practicable 5 percent lower than the postage for a cor-
responding regular-rate category mailing. 
PUBLIC LAW 106-384—OCT. 27, 2000 
114 STAT. 1461 
"(B) With respect to the postage for the advertising pound 
portion of any mail matter under former section 4358 (d) or 
(e) of this title, the 5-percent discount specified in subparagraph 
(A) shall not apply if the advertising portion exceeds 10 percent 
of the publication involved.". 
(d) SPECIAL RULE FOR NONPROFIT STANDARD (A) MAIL.—Section 
3626(a) of title 39, United States Code, is amended by adding 
at the end the following: 
"(6) The rates for mail matter under former sections 4452 
(b) and (c) of this title shall be established as follows: 
"(A) The estimated average revenue per piece to be 
received by the Postal Service from each subclass of mail 
under former sections 4452 (b) and (c) of this title shall 
be equal, as nearly as practicable, to 60 percent of the 
estimated average revenue per piece to be received from 
the most closely corresponding regular-rate subclass of 
mail. 
"(B) For purposes of subparagraph (A), the estimated 
average revenue per piece of each regular-rate subclass 
shall be calculated on the basis of expected volumes and 
mix of mail for such subclass at current rates in the test 
year of the proceeding. 
"(C) Rate differentials within each subclass of mail 
matter under former sections 4452 (b) and (c) shall reflect 
the policies of this title, including the factors set forth 
in section 3622(b) of this title.". 
(e) SPECIAL RULE FOR LIBRARY AND EDUCATIONAL MATTER.— 
Section 3626(a) of title 39, United States Code, as amended by 
subsection (d) of this section, is amended by adding at the end 
the following: 
"(7) The rates for mail matter under former sections 4554 
(b) and (c) of this title shall be established so that postage 
on each mailing of such mail shall be as nearly as practicable 
5 percent lower than the postage for a corresponding regular-
rate mailing.". 
SEC. 2. TRANSITIONAL AND TECHNICAL PROVISIONS. 
39 USC 3622 
(a) TRANSITIONAL PROVISION FOR NONPROFIT STANDARD (A) °°*^' 
MAIL.—In any proceeding in which rates are to be established 
under chapter 36 of title 39, United States Code, for mail matter 
under former sections 4452 (b) and (c) of that title, pending as 
of the date of enactment of section 1 of this Act, the estimated 
reduction in postal revenue from such mail matter caused by the 
enactment of section 3626(a)(6)(A) of that title, if any, shall be 
treated as a reasonably assignable cost of the Postal Service under 
section 3622(b)(3) of that title. 
114 STAT. 1462 
PUBLIC LAW 106-384—OCT. 27, 2000 
(b) TECHNICAL AMENDMENT.—Section 3626(a)(1) of title 39, 
United States Code, is amended by striking "4454(b), or 4454(c)" 
and inserting "4554(b), or 4554(c)". 
Approved October 27, 2000. 
LEGISLATIVE HISTORY—S. 2686: 
SENATE REPORTS: No. No. 106-468 (Comm. on Governmental Affairs). 
CONGRESSIONAL RECORD, Vol. 146 (2000): 
Oct. 6, considered and passed Senate. 
Oct. 11, considered and passed House.