SEC. 1. SHORT TITLE.

    This Act may be cited as the ``Postal Service Enhancement Act''.

                   TITLE I--RATEMAKING FLEXIBILITIES

SEC. 101. COMPETITIVE AND NONCOMPETITIVE PRODUCTS DEFINED.

    Section 102 of title 39, United States Code, is amended by striking 
``and'' at the end of paragraph (3), by striking the period at the end 
of paragraph (4) and inserting a semicolon, and by adding at the end 
the following:
            ``(5) `competitive product' refers to any postal product 
        which the Postal Rate Commission has determined, based on 
        appropriate economic factors prescribed by the Commission, 
        competes for business in a competitive market; and
            ``(6) `noncompetitive product' refers to any postal product 
        that is not a competitive product.''.

SEC. 102. RATES AND FEES FOR NONCOMPETITIVE PRODUCTS.

    (a) Current Ratemaking Procedures Cease To Apply With Respect to 
Competitive Products.--Section 3622(a) of title 39, United States Code, 
is amended by adding at the end the following: ``This section shall 
apply only in the case of noncompetitive products.''.
    (b) Prohibition on Subsidizing Competitive Products.--Section 
3622(b) of title 39, United States Code, is amended by striking ``and'' 
at the end of paragraph (8), by redesignating paragraph (9) as 
paragraph (10), and by inserting after paragraph (8) the following:
            ``(9) the requirement that no rate or fee for a 
        noncompetitive product shall subsidize any rate or fee for a 
        competitive product; and''.

SEC. 103. AUTHORITY TO INCREASE RATES FOR NONCOMPETITIVE PRODUCTS 
              INCREMENTALLY.

    Section 3624 of title 39, United States Code, is amended by adding 
at the end the following:
    ``(e) If a request made by the Postal Service under section 3622 
proposes that one or more rates of postage or fees for postal services 
be changed incrementally, the recommended decision of the Commission 
may include provisions responsive to that proposal.''.

SEC. 104. NEGOTIATED SERVICE AGREEMENTS.

    Title 39, United States Code, is amended by inserting after section 
3642 the following:
``Sec. 3643. Negotiated service agreements
    ``(a) The Postal Service may enter into negotiated service 
agreements with mail users under this section and in accordance with 
the policies of this title.
    ``(b) A negotiated service agreement may not be entered into unless 
each of the following conditions is met:
            ``(1) The agreement can reasonably be expected to result in 
        net benefits to the operation of a nationwide postal system.
            ``(2) The Postal Service remains willing and able to enter 
        into similar negotiated service agreements with other similarly 
        situated mail users (determined without regard to size).
            ``(3) Rates and fees payable during the term of the 
        negotiated service agreement are reasonably calculated to yield 
        to the Postal Service total revenues (after taking into account 
        any costs avoided, and any additional costs incurred, by the 
        Postal Service pursuant to the agreement) at least equal to the 
        revenues that would be generated over that same period of time 
        by application of the rate or rates chargeable under the 
        classification or classifications of mail service most similar 
        to the services performed under the agreement.
    ``(c) A negotiated service agreement that involves one or more 
noncompetitive products shall not become effective unless the Postal 
Rate Commission first certifies, in accordance with such expedited 
procedures as the Commission shall by regulation establish, that the 
agreement meets the requirements of this section. Certifications under 
this subsection may, notwithstanding section 3628, be appealed to any 
court of appeals of the United States.
    ``(d) For purposes of this section, the term `negotiated service 
agreement' means an agreement between a mail user and the Postal 
Service requiring performance by the mail user, the Postal Service, or 
both, of any combination of activities that, with respect to one or 
more classes of mail, differs significantly from those that would 
otherwise apply.''.

SEC. 105. COMPETITIVE PRODUCTS.

    Subchapter II of chapter 36 of title 39, United States Code, is 
amended by adding at the end the following:
``Sec. 3630. Competitive products
    ``(a) The Postal Service may offer competitive products under this 
section and in accordance with the policies of this title.
    ``(b) A competitive product may not be offered unless each of the 
following conditions is met:
            ``(1) The product can reasonably be expected to result in 
        net benefits to the operation of a nationwide postal system.
            ``(2) The rates or fees for the product--
                    ``(A) comply with the factors specified in section 
                3622(b); and
                    ``(B) are not subsidized by any rates or fees for 
                noncompetitive products.
    ``(c)(1) Interested parties who believe the Postal Service is 
offering a competitive product which does not conform to the policies 
set out in this title may lodge a complaint with the Postal Rate 
Commission in such form and in such manner as it may prescribe. The 
Commission may, in its discretion, hold hearings on such complaint and 
may issue an order providing for such interim relief as the Commission 
considers appropriate. The Commission shall issue an order deciding the 
complaint as expeditiously as possible.
    ``(2) The Postal Service shall comply with orders of the Commission 
under this subsection. Such orders may, notwithstanding section 3628, 
be appealed to any court of appeals of the United States.
    ``(3) Section 3662 shall not apply to complaints relating to 
competitive products.''.

SEC. 106. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) The heading for section 3622 of title 39, United States Code, 
is amended to read as follows:
``Sec. 3622. Rates and fees for noncompetitive products''.
    (b) The table of sections for chapter 36 of title 39, United States 
Code, is amended--
            (1) by striking the item relating to section 3622 and 
        inserting the following:

``3622. Rates and fees for noncompetitive products.'';
            (2) by adding after the item relating to section 3629 the 
        following:

``3630. Competitive products.''; and
            (3) by inserting after the item relating to section 3642 
        the following:

``3643. Negotiated service agreements.''.

SEC. 107. SAVINGS PROVISIONS.

    (a) Postal Products; Rates and Fees.--Until otherwise provided in 
accordance with title 39, United States Code (as amended by this title 
or as deemed to have remained in effect under subsection (b), as the 
case may be)--
            (1) all postal products offered immediately before this Act 
        takes effect shall continue being offered; and
            (2) all rates and fees in effect under such title 
        immediately before this Act takes effect shall remain in 
        effect.
    (b) Proceedings Pending.--This title shall not affect any 
proceedings pending immediately before the date of enactment of this 
Act, and any such proceedings shall continue under applicable 
provisions of title 39, United States Code, as last in effect before 
such date of enactment, until completed or terminated in accordance 
therewith.

   TITLE II--NATIONAL COMMISSION ON POSTAL EFFICIENCY AND ENHANCEMENT

SEC. 201. ESTABLISHMENT.

    There is established a commission to be known as the ``National 
Commission on Postal Efficiency and Enhancement'' (hereinafter in this 
title referred to as the ``Commission'').

SEC. 202. FUNCTIONS OF THE COMMISSION.

    The Commission shall review the present practices and 
organizational structure of the United States Postal Service, with a 
view toward identifying--
            (1) areas of inefficiency or waste; and
            (2) methods for improving operations involved in the 
        collection, processing, or delivery of mail.

SEC. 203. MEMBERSHIP.

    (a) Number and Appointment.--The Commission shall be composed of 8 
members appointed by the President, except that of those members--
            (1) 2 shall be appointed from among individuals recommended 
        by the majority leader of the Senate; and
            (2) 2 shall be appointed from among individuals recommended 
        by the Speaker of the House of Representatives.
    (b) Qualifications.--An individual appointed to serve on the 
Commission shall have expertise in mail delivery, organizational 
efficiency, labor relations, or other relevant subject areas.
    (c) Initial Appointments.--It is the sense of the Congress that the 
members of the Commission should be appointed within 90 days after the 
date of enactment of this Act.
    (d) Chairman.--The Chairman of the Commission shall be designated 
by the President.
    (e) Pay.--Members shall be paid at a rate to be established by the 
President, not to exceed the rate payable for level I of the Executive 
Schedule under section 5312 of title 5, United States Code.

SEC. 204. ADMINISTRATION.

    (a) In General.--The Chairman of the Commission shall exercise the 
executive and administrative functions of the Commission, and may 
appoint such staff as may be necessary for the operation of the 
Commission.
    (b) Information From Agencies.--The Commission may secure from any 
department, agency, independent establishment, or other instrumentality 
of the United States, any information necessary to enable it to carry 
out its functions under this title. Upon receiving a request under the 
preceding sentence, the head of the instrumentality involved shall, to 
the extent authorized by law, furnish such information directly to the 
Commission.

SEC. 205. REPORTING REQUIREMENTS.

    The Commission shall transmit to the President and the Congress, 
within 2 years after the date of enactment of this Act, a report 
containing a detailed statement of the findings and conclusions of the 
Commission, together with its recommendations for any legislation or 
administrative actions which the Commission considers appropriate.

SEC. 206. TERMINATION.

    The Commission shall terminate as of the date on which the work of 
the Commission has been completed.

     TITLE III--ENHANCED AUTHORITIES FOR THE POSTAL RATE COMMISSION

SEC. 301. ENHANCED AUTHORITIES.

    Section 3604 of title 39, United States Code, is amended by adding 
at the end the following:
    ``(f)(1) Any Commissioner of the Postal Rate Commission, any 
administrative law judge appointed by the Commission under section 3105 
of title 5, and any employee of the Commission designated by the 
Commission, may administer oaths, examine witnesses, take depositions, 
and receive evidence.
    ``(2) The Chairman of the Commission, any Commissioner designated 
by the Chairman, and any administrative law judge appointed by the 
Commission under section 3105 of title 5 may, with respect to any 
proceeding conducted by the Commission under this title--
            ``(A) issue subpoenas requiring the attendance and 
        presentation of testimony, or the production of documentary or 
        other evidence in the possession, of any covered individual; 
        and
            ``(B) order the taking of depositions or responses to 
        written interrogatories by a covered individual.
    ``(3) In the case of contumacy or failure to obey a subpoena or 
order issued under this subsection, upon application by the Commission, 
the district court of the United States for the district in which the 
person to whom the subpoena or order is addressed resides or is served 
may issue an order requiring such person to appear at any designated 
place to testify or produce documentary or other evidence. Any failure 
to obey the order of the court may be punished by the court as a 
contempt thereof.
    ``(4) For purposes of this subsection, the term `covered 
individual' means an officer or employee or agent of the Postal Service 
or of a contractor of the Postal Service.
    ``(g)(1) If the Postal Service determines that any testimony, 
document, or other matter provided pursuant to a subpoena or order 
issued under subsection (f), or otherwise provided by the Postal 
Service to the Postal Rate Commission in connection with any proceeding 
or other purpose under this title, contains information which is 
described in section 410(c) of this title, or exempt from public 
disclosure under section 552(b) of title 5, the Postal Service shall, 
at the time such matter is provided to the Commission, notify the 
Commission, in writing, of its determination (and the reasons 
therefor).
    ``(2) The Commission shall establish procedures for ensuring, where 
appropriate, the confidentiality of any information as to which it has 
been notified under paragraph (1).''.
Output: (Sec. 104) Outlines conditions under which the Postal Service (Service) may enter into negotiated service agreements with mail users, including that: (1) the agreement will result in net benefits to the nationwide postal system; and (2) rates and fees payable under the agreement are calculated to yield revenues to the Service that are at least equal to revenues generated by rates chargeable for other mail services. Allows any such agreement that involves one or more noncompetitive products to be effective only after the Postal Rate Commission (Commission) first certifies that such agreement meets requirements applicable to all mail service agreements.
(Sec. 105) Outlines conditions under which the Service may offer competitive products. Provides conditions under which a party who believes that the Service is offering a competitive product which does not conform to such conditions may lodge a complaint with the Commission.
Title II: National Commission on Postal Efficiency and Enhancement
 - Establishes the National Commission on Postal Efficiency and Enhancement to review and report on the present practices and organizational structure of the Service, with a view toward identifying waste or inefficiency and improving the collection, processing, and delivery of mail.
Title III: Enhanced Authorities for the Postal Rate Commission
 - Authorizes any Commission commissioner, any administrative law judge appointed by the Commission, and any Commission employee to administer oaths, examine witnesses, take depositions, and receive evidence. Authorizes the Commission Chairman, any designated commissioner, or any Commission-appointed administrative law judge to issue subpoenas and order the taking of depositions or responses to written interrogatories.