Statements on Introduced Bills and Joint Resolutions - S. 2468 - Part 2
SEC. 206. CLERICAL AMENDMENT.
Chapter 36 of title 39, United States Code, is amended by striking the heading and analysis for such chapter and inserting the following:
"CHAPTER 36-POSTAL RATES, CLASSES, AND SERVICES
"SUBCHAPTER I-PROVISIONS RELATING TO MARKET-DOMINANT PRODUCTS
"Sec.
"3621. Applicability; definitions.
"3622. Modern rate regulation.
"3623. Service agreements for market-dominant products.
"[3624. Repealed.]
"[3625. Repealed.]
"3626. Reduced Rates.
"3627. Adjusting free rates.
"[3628. Repealed.]
"3629. Reduced rates for voter registration purposes.
"SUBCHAPTER II-PROVISIONS RELATING TO COMPETITIVE PRODUCTS
"3631. Applicability; definitions and updates.
"3632. Action of the Governors.
"3633. Provisions applicable to rates for competitive products.
"3634. Assumed Federal income tax on competitive products.
"SUBCHAPTER III-PROVISIONS RELATING TO EXPERIMENTAL AND NEW PRODUCTS
"3641. Market tests of experimental products.
"3642. New products and transfers of products between the market-dominant and competitive categories of mail.
"SUBCHAPTER IV-REPORTING REQUIREMENTS AND RELATED PROVISIONS
"3651. Annual reports by the Commission.
"3652. Annual reports to the Commission.
"3653. Annual determination of compliance.
"SUBCHAPTER V-POSTAL SERVICES, COMPLAINTS, AND JUDICIAL REVIEW
"3661. Postal Services.
"3662. Rate and service complaints.
"3663. Appellate review.
"3664. Enforcement of orders.
"SUBCHAPTER VI-GENERAL
"3681. Reimbursement.
"3682. Size and weight limits.
"3683. Uniform rates for books; films, other materials.
"3684. Limitations.
"3685. Filing of information relating to periodical publications.
"3686. Bonus authority.
"SUBCHAPTER VII-MODERN SERVICE STANDARDS
"3691. Establishment of modern service standards.".
TITLE III-MODERN SERVICE STANDARDS
SEC. 301. ESTABLISHMENT OF MODERN SERVICE STANDARDS.
Chapter 36 of title 39, United States Code, as amended by this Act, is further amended by adding at the end the following:
"SUBCHAPTER VII-MODERN SERVICE STANDARDS
"§ 3691. Establishment of modern service standards
"(a) AUTHORITY GENERALLY.-The Postal Regulatory Commission shall, within 12 months after the date of the enactment of
this section, by regulation establish (and may from time to time thereafter by regulation revise) a set of service standards for
market-dominant products consistent with sections 101 (a) and (b) and 403.
"(b) OBJECTIVES.-Such standards shall be designed to achieve the following objectives:
"(1) To enhance and preserve the value of postal services to both senders and recipients.
"(2) To provide a system of objective external performance measurements for each market-dominant product as a basis for measurement of Postal Service performance.
"(3) To guarantee Postal Service customers delivery reliability, speed and frequency consistent with reasonable rates and best business practices.
"© FACTORS.-In establishing or revising such standards, the Postal Regulatory Commission shall take into account-
"(1) the actual level of service that Postal Service customers receive under any service guidelines previously established by the Postal Service or service standards established under this section;
"(2) the degree of customer satisfaction with Postal Service performance in the acceptance, processing and delivery of mail;
"(3) mail volume and revenues projected for future years;
"(4) the projected growth in the number of addresses the Postal Service will be required to serve in future years;
"(5) the current and projected future cost of serving Postal Service customers;
"(6) the effect of changes in technology, demographics and population distribution on the efficient and reliable operation of the postal delivery system; and
"(7) the policies of this title as well as such other factors as the Commission determines appropriate.".
SEC. 302. POSTAL SERVICE PLAN.
(a) IN GENERAL.-Within 6 months after the establishment of the service standards under section 3691 of title 39, United States Code, as added by this Act, the Postal Service shall, in consultation with the Postal Regulatory Commission, develop and submit to Congress a plan for meeting those standards.
(b) CONTENT.-The plan under this section shall-
(1) establish performance goals;
(2) describe any changes to the Postal Service's processing, transportation, delivery, and retail networks necessary to allow the Postal Service to meet the performance goals; and
(3) describe any changes to planning and performance management documents previously submitted to Congress to reflect new performance goals.
© POSTAL FACILITIES.-The Postal Service plan shall include a description of its long-term vision for rationalizing its infrastructure and workforce and how it intends to implement that vision, including-
(1) a strategy for how it intends to rationalize the postal facilities network and remove excess processing capacity and space from the network, including estimated timeframes, criteria and processes to be used for making changes to the facilities network, and the process for engaging policy makers and the public in related decisions;
(2) an update on how postal decisions related to mail changes, security, automation initiatives, worksharing, information technology systems, and other areas will impact network rationalization plans;
(3) a discussion of what impact any facility changes may have on the postal workforce and whether the Postal Service has sufficient flexibility to make needed workforce changes; and
(4) an identification of anticipated costs, cost savings, and other benefits associated with the infrastructure rationalization alternatives discussed in the plan.
(d) ALTERNATE RETAIL OPTIONS.-The Postal Service plan shall include plans to expand and market retail access to postal services, in addition to post offices, including-
(1) vending machines;
(2) the Internet;
(3) Postal Service employees on delivery routes; and
(4) retail facilities in which overhead costs are shared with private businesses and other government agencies.
(e) REEMPLOYMENT ASSISTANCE AND RETIREMENT BENEFITS.-The Postal Service plan shall include-
(1) a plan under which reemployment assistance shall be afforded to employees displaced as a result of the automation or privatization of any of its functions or the closing and consolidation of any of its facilities; and
(2) a plan, developed in consultation with the Office of Personnel Management, to offer early retirement benefits.
(f) INSPECTOR GENERAL REPORT.-
(1) IN GENERAL.-Before submitting the plan under this section to Congress, the Postal Service shall submit the plan to the Inspector General of the United States Postal Service in a timely manner to carry out this subsection.
(2) REPORT.-The Inspector General shall prepare a report describing the extent to which the Postal Service plan-
(A) is consistent with the continuing obligations of the Postal Service under title 39, United States Code; and
(B) provides for the Postal Service to meet the service standards established under section 3691.
(3) SUBMISSION OF REPORT.-The Postal Service shall submit the report of the Inspector General under this subsection with the plan submitted to Congress under subsection (a).
TITLE IV-PROVISIONS RELATING TO FAIR COMPETITION
SEC. 401. POSTAL SERVICE COMPETITIVE PRODUCTS FUND.
(a) PROVISIONS RELATING TO POSTAL SERVICE COMPETITIVE PRODUCTS FUND AND RELATED MATTERS.-
(1) IN GENERAL.-Chapter 20 of title 39, United States Code, is amended by adding at the end the following:
"§ 2011. Provisions relating to competitive products
"(a) 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-
"(1) costs attributable to competitive products; and
"(2) all other costs incurred by the Postal Service, to the extent allocable to competitive products.
For purposes of this subsection, the term 'costs attributable' has the meaning given such term by section 3631.
"(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 the 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.
"© If the Postal Service determines that the moneys of the Competitive Products Fund are in excess of current needs, it may invest such amounts as it considers appropriate in accordance with regulations which the Secretary of the Treasury shall prescribe within 12 months after the date of enactment of the Postal Accountability and Enhancement Act.
"(d) The Postal Service may, in its sole discretion, provide that moneys of the Competitive Products Fund be deposited in a Federal Reserve bank or a depository for public funds.
"(e)(1) 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 it determines necessary to provide for competitive products and deposit such amounts in the Competitive Products Fund, except that the Postal Service may pledge only 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 from the Postal Service, including the audited statements required by section 2008(e)), and the revenues and receipts from such products, for the payment of the principal of or interest on such obligations, 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 the Postal Service determines necessary or desirable.
"(2) The Postal Service may 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-
"(A) the establishment of reserve, sinking, and other funds;
"(B) application and use of revenues and receipts of the Competitive Products Fund;
"© 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) may not be purchased by the Secretary of the Treasury;
"(B) shall not be exempt either as to principal or interest from any taxation now or hereafter imposed by any State or local taxing authority;
"© 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; and
"(D) notwithstanding the provisions of the Federal Financing Bank Act of 1973 or any other provision of law (except as specifically provided by reference to this subparagraph in a law enacted after this subparagraph takes effect), shall not be eligible for purchase by, commitment to purchase by, or sale or issuance to, the Federal Financing Bank.
"(4)(A) This paragraph applies with respect to the period beginning on the date of the enactment of this paragraph and ending at the close of the 5-year period which begins on the date on which the Postal Service makes its submission under subsection (h)(1).
"(B) During the period described in subparagraph (A), nothing in subparagraph (A) or (D) of paragraph (3) or the last sentence of section 2006(b) shall, with respect to any obligations sought to be issued by the Postal Service under this subsection, be considered to affect such obligations' eligibility for purchase by, commitment to purchase by, or sale or issuance to, the Federal Financing Bank.
"© The Federal Financing Bank may elect to purchase such obligations under such terms, including rates of interest, as the Bank and the Postal Service may agree, but at a rate of yield no less than the prevailing yield on outstanding marketable securities of comparable maturity issued by entities with the same credit rating as the rating then most recently obtained by the Postal Service under subparagraph (D), as determined by the Bank.
"(D) In order to be eligible to borrow under this paragraph, the Postal Service shall first obtain a credit rating from a nationally recognized credit rating organization. Such rating-
"(i) shall be determined taking into account only those assets and activities of the Postal Service which are described in section 3634(a)(2) (relating to the Postal Service's assumed taxable income from competitive products); and
"(ii) may, before final rules of the Postal Regulatory Commission under subsection (h) are issued (or deemed to have been issued), be based on the best information available from the Postal Service, including the audited statements required by section 2008(e).
"(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 against the Postal Service or the Government of the United States (or settlement of a claim) shall, to the extent that it arises out of activities of the Postal Service in the provision of competitive products, be paid out of the Competitive Products Fund.
"(h)(1) The Postal Service, in consultation with an independent, certified public accounting firm and such other advisors as it considers appropriate, shall develop recommendations regarding-
"(A) the accounting practices and principles that should be followed by the Postal Service with the objectives of identifying the capital and operating costs incurred by the Postal Service in providing competitive products, and preventing the cross-subsidization of such products by market-dominant products; and
"(B) the substantive and procedural rules that should be followed in determining the Postal Service's assumed Federal income tax on competitive products income for any year (within the meaning of section 3634).
Such recommendations shall be submitted to the Postal Regulatory Commission no later than 12 months after the effective date of this section.
"(2)(A) Upon receiving the recommendations of the Postal Service under paragraph (1), the Commission shall give interested parties, including the Postal Service, enterprises in the private sector of the economy engaged in the delivery of mail matter other than letters, 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) 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 in paragraph (1)(B); 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.
Final rules under this subparagraph shall be issued not later than 12 months after the date on which the Postal Service makes its submission to the Commission under paragraph (1) (or by such later date as the Commission and the Postal Service may agree to). If final rules are not issued by the Commission by the deadline under the preceding sentence, the recommendations submitted by the Postal Service under paragraph (1) shall be treated as the final rules. The Commission is authorized to promulgate regulations revising such rules.
"© Reports described in subparagraph (B)(iii) shall be submitted at such time and in such form, and shall include such
information, as the Commission by rule requires. 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 data under such subparagraph 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 in subparagraph (B)(iii) shall also be transmitted by the Postal Service to the Secretary of the Treasury and the Inspector General of the United States Postal Service.
"(i) The Postal Service shall render an annual report to the Secretary of the Treasury concerning the operation of the Competitive Products Fund, in which it shall address such matters as risk limitations, reserve balances, allocation or distribution of moneys, liquidity requirements, and measures to safeguard against losses. A copy of its then most recent report under this subsection shall be included with any other submission that it is required to make to the Postal Regulatory Commission under section 3652(g).".
(2) CLERICAL AMENDMENT.-The analysis for chapter 20 of title 39, United States Code, is amended by adding after the item relating to section 2010 the following:
"2011. Provisions relating to competitive products.".
(b) TECHNICAL AND CONFORMING AMENDMENTS.-
(1) DEFINITION.-Section 2001 of title 39, United States Code, is amended by striking "and" at the end of paragraph (1), by redesignating paragraph (2) as paragraph (3), and by inserting after paragraph (1) the following:
"(2) 'Competitive Products Fund' means the Postal Service Competitive Products Fund established by section 2011; and".
(2) CAPITAL OF THE POSTAL SERVICE.-Section 2002(b) of title 39, United States Code, is amended by striking "Fund," and inserting "Fund and the balance in the Competitive Products Fund,".
(3) POSTAL SERVICE FUND.-
(A) PURPOSES FOR WHICH AVAILABLE.-Section 2003(a) of title 39, United States Code, is amended by striking "title." and inserting "title (other than any of the purposes, functions, or powers for which the Competitive Products Fund is available).".
(B) DEPOSITS.-Section 2003(b) of title 39, United States Code, is amended by striking "There" and inserting "Except as otherwise provided in section 2011, there".
(4) RELATIONSHIP BETWEEN THE TREASURY AND THE POSTAL SERVICE.-Section 2006 of title 39, United States Code, is amended-
(A) in subsection (b), by adding at the end the following: "Nothing in this chapter shall be considered to permit or require the Secretary of the Treasury to purchase any obligations of the Postal Service other than those issued under section 2005."; and
(B) in subsection (c), by inserting "under section 2005" before "shall be obligations".
SEC. 402. ASSUMED FEDERAL INCOME TAX ON COMPETITIVE PRODUCTS INCOME.
Subchapter II of chapter 36 of title 39, United States Code, as amended by section 202, is amended by adding at the end the following:
"§ 3634. Assumed Federal income tax on competitive products income
"(a) DEFINITIONS.-For purposes of this section-
"(1) the term 'assumed Federal income tax on competitive products income' means the net income tax that would be imposed by chapter 1 of the Internal Revenue Code of 1986 on the Postal Service's assumed taxable income from competitive products for the year; and
"(2) the term 'assumed taxable income from competitive products', with respect to a year, refers to the amount representing what would be the taxable income of a corporation under the Internal Revenue Code of 1986 for the year, if-
"(A) the only activities of such corporation were the activities of the Postal Service allocable under section 2011(h) to competitive products; and
"(B) the only assets held by such corporation were the assets of the Postal Service allocable under section 2011(h) to such activities.
"(b) COMPUTATION AND TRANSFER REQUIREMENTS.-The Postal Service shall, for each year beginning with the year in which occurs the deadline for the Postal Service's first report to the Postal Regulatory Commission under section 3652(a)-
"(1) compute its assumed Federal income tax on competitive products income for such year; and
"(2) transfer from the Competitive Products Fund to the Postal Service Fund the amount of that assumed tax.
"© DEADLINE FOR TRANSFERS.-Any transfer required to be made under this section for a year shall be due on or before the January 15th next occurring after the close of such year.".
SEC. 403. 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) Except as specifically authorized by law, the Postal Service may not:
"(1) establish any rule or regulation (including any standard) the effect of which is to preclude competition or establish the terms of competition unless the Postal Service demonstrates that the regulation does not create an unfair competitive advantage for itself or any entity funded (in whole or in part) by the Postal Service;
"(2) compel the disclosure, transfer, or licensing of intellectual property to any third party (such as patents, copyrights, trademarks, trade secrets, and proprietary information); or
"(3) obtain information from a person that provides (or seeks to provide) any product, and then offer any postal service that uses or is based in whole or in part on such information, without the consent of the person providing that information, unless substantially the same information is obtained (or obtainable) from an independent source or is otherwise obtained (or obtainable).
"(b) The Postal Regulatory Commission shall prescribe regulations to carry out this section.
"© Any party (including an officer of the Commission representing the interests of the general public) who believes that the Postal Service has violated this section may bring a complaint in accordance with section 3662.".
(b) CONFORMING AMENDMENTS.-
(1) GENERAL POWERS.-Section 401 of title 39, United States Code, is amended by striking "The" and inserting "Subject to the provisions of section 404a, the".
(2) SPECIFIC POWERS.-Section 404(a) of title 39, United States Code, is amended by striking "Without" and inserting "Subject to the provisions of section 404a, but otherwise without".
© CLERICAL AMENDMENT.-The analysis for chapter 4 of title 39, United States Code, is amended by inserting after the item relating to section 404 the following:
"404a. Specific limitations.".
SEC. 404. SUITS BY AND AGAINST THE POSTAL SERVICE.
(a) IN GENERAL.-Section 409 of title 39, United States Code, is amended by striking subsections (d) and (e) and inserting the following:
"(d)(1) For purposes of the provisions of law cited in paragraphs (2)(A) and (2)(B), respectively, the Postal Service-
"(A) shall be considered to be a 'person', as used in the provisions of law involved; and
"(B) shall not be immune under any other doctrine of sovereign immunity from suit in Federal court by any person for any violation of any of those provisions of law by any officer or employee of the Postal Service.
"(2) This subsection applies with respect to-
"(A) the Act of July 5, 1946 (commonly referred to as the 'Trademark Act of 1946' (15 U.S.C. 1051 and following)); and
"(B) the provisions of section 5 of the Federal Trade Commission Act to the extent that such section 5 applies to unfair or deceptive acts or practices.
"(e)(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 product which is not reserved to the United States under section 1696 of title 18, the Postal Service or other Federal agency (as the case may be)-
"(A) shall not be immune under any doctrine of sovereign immunity from suit in Federal court by any person for any violation of Federal law by such agency or any officer or employee thereof; and
"(B) shall be considered to be a person (as defined in subsection (a) of the first section of the Clayton Act) for purposes of-
"(i) the antitrust laws (as defined in such subsection); and
"(ii) section 5 of the Federal Trade Commission Act to the extent that such section 5 applies to unfair methods of competition.
For purposes of the preceding sentence, any private carriage 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) No damages, interest on damages, costs or attorney's fees may be recovered under the antitrust laws (as so defined) from the Postal Service or any officer or employee thereof acting in an official capacity for any conduct with respect to a product in the market-dominant category of mail.
"(3) This subsection shall not apply with respect to conduct occurring before the date of the enactment of this subsection.
"(f) To the extent that the Postal Service engages in conduct with respect to the provision of competitive products, it shall be considered a person for the purposes of the Federal bankruptcy laws.
"(g)(1) Each building constructed or altered by the Postal Service shall be constructed or altered, to the maximum extent feasible as determined by the Postal Service, in compliance with 1 of the nationally recognized model building codes and with other applicable nationally recognized codes.
"(2) Each building constructed or altered by the Postal Service shall be constructed or altered only after consideration of all
requirements (other than procedural requirements) of zoning laws, land use laws, and applicable environmental laws of a State or subdivision of a State which would apply to the building if it were not a building constructed or altered by an establishment of the Government of the United States.
"(3) For purposes of meeting the requirements of paragraphs (1) and (2) with respect to a building, the Postal Service shall-
"(A) in preparing plans for the building, consult with appropriate officials of the State or political subdivision, or both, in which the building will be located;
"(B) upon request, submit such plans in a timely manner to such officials for review by such officials for a reasonable period of time not exceeding 30 days; and
"© permit inspection by such officials during construction or alteration of the building, in accordance with the customary schedule of inspections for construction or alteration of buildings in the locality, if such officials provide to the Postal Service-
"(i) a copy of such schedule before construction of the building is begun; and
"(ii) reasonable notice of their intention to conduct any inspection before conducting such inspection.
Nothing in this subsection shall impose an obligation on any State or political subdivision to take any action under the preceding sentence, nor shall anything in this subsection require the Postal Service or any of its contractors to pay for any action taken by a State or political subdivision to carry out this subsection (including reviewing plans, carrying out on-site inspections, issuing building permits, and making recommendations).
"(4) Appropriate officials of a State or a political subdivision of a State may make recommendations to the Postal Service concerning measures necessary to meet the requirements of paragraphs (1) and (2). Such officials may also make recommendations to the Postal Service concerning measures which should be taken in the construction or alteration of the building to take into account local conditions. The Postal Service shall give due consideration to any such recommendations.
"(5) In addition to consulting with local and State officials under paragraph (3), the Postal Service shall establish procedures for soliciting, assessing, and incorporating local community input on real property and land use decisions.
"(6) For purposes of this subsection, the term 'State' includes the District of Columbia, the Commonwealth of Puerto Rico, and a territory or possession of the United States.
"(h)(1) Notwithstanding any other provision of law, legal representation may not be furnished by the Department of Justice to the Postal Service in any action, suit, or proceeding arising, in whole or in part, under any of the following:
"(A) Subsection (d) or (e) of this section.
"(B) Subsection (f) or (g) of section 504 (relating to administrative subpoenas by the Postal Regulatory Commission).
"© Section 3663 (relating to appellate review).
The Postal Service may, by contract or otherwise, employ attorneys to obtain any legal representation that it is precluded from obtaining from the Department of Justice under this paragraph.
"(2) In any circumstance not covered by paragraph (1), the Department of Justice shall, under section 411, furnish the Postal Service such legal representation as it may require, except that, with the prior consent of the Attorney General, the Postal Service may, in any such circumstance, employ attorneys by contract or otherwise to conduct litigation brought by or against the Postal Service or its officers or employees in matters affecting the Postal Service.
"(3)(A) In any action, suit, or proceeding in a court of the United States arising in whole or in part under any of the provisions of law referred to in subparagraph (B) or (C) of paragraph (1), and to which the Commission is not otherwise a party, the Commission shall be permitted to appear as a party on its own motion and as of right.
"(B) The Department of Justice shall, under such terms and conditions as the Commission and the Attorney General shall consider appropriate, furnish the Commission such legal representation as it may require in connection with any such action, suit, or proceeding, except that, with the prior consent of the Attorney General, the Commission may employ attorneys by contract or otherwise for that purpose.
"(i) A judgment against the Government of the United States arising out of activities of the Postal Service shall be paid by the Postal Service out of any funds available to the Postal Service, subject to the restriction specified in section 2011(g).".
(b) TECHNICAL AMENDMENT.-Section 409(a) of title 39, United States Code, is amended by striking "Except as provided in section 3628 of this title," and inserting "Except as otherwise provided in this title,".
TITLE V-GENERAL PROVISIONS
SEC. 501. QUALIFICATION AND TERM REQUIREMENTS FOR GOVERNORS.
(a) QUALIFICATIONS.-
(1) IN GENERAL.-Section 202(a) of title 39, United States Code, is amended by striking "(a)" and inserting "(a)(1)"
and by striking the fourth sentence and inserting the following: "The Governors shall represent the public interest generally, and shall be chosen solely on the basis of their demonstrated ability in managing organizations or corporations (in either the public or private sector) of substantial size. The Governors shall not be representatives of specific interests using the Postal Service, and may be removed only for cause.".
(2) APPLICABILITY.-The amendment made by paragraph (1) shall not affect the appointment or tenure of any person serving as a Governor of the United States Postal Service under an appointment made before the date of the enactment of this Act however, when any such office becomes vacant, the appointment of any person to fill that office shall be made in accordance with such amendment. The requirement set forth in the fourth sentence of section 202(a)(1) of title 39, United States Code (as amended by subsection (a)) shall be met beginning not later than 9 years after the date of the enactment of this Act.
(b) CONSULTATION REQUIREMENT.-Section 202(a) of title 39, United States Code, is amended by adding at the end the following:
"(2) In selecting the individuals described in paragraph (1) for nomination for appointment to the position of Governor, the President should consult with the Speaker of the House of Representatives, the minority leader of the House of Representatives, the majority leader of the Senate, and the minority leader of the Senate.".
© 5-Year Terms.-
(1) IN GENERAL.-Section 202(b) of title 39, United States code, is amended in the first sentence by striking "9
years" and inserting "5 years".
(2) APPLICABILITY.-
(A) CONTINUATION BY INCUMBENTS.-The amendment made by paragraph (1) shall not affect the tenure of any person serving as a Governor of the United States Postal Service on the date of enactment of this Act and such person may continue to serve the remainder of the applicable term.
(B) VACANCY BY INCUMBENT BEFORE 5 YEARS OF SERVICE.-If a person who is serving as a Governor of the United States Postal Service on the date of enactment of this Act resigns, is removed, or dies before the expiration of the 9-year term of that Governor, and that Governor has served less than 5 years of that term, the resulting vacancy in office shall be treated as a vacancy in a 5-year term.
© VACANCY BY INCUMBENT AFTER 5 YEARS OF SERVICE.-If a person who is serving as a Governor of the United States Postal Service on the date of enactment of this Act resigns, is removed, or dies before the expiration of the 9-year term of that Governor, and that Governor has served 5 years or more of that term, that term shall be deemed to have been a 5-year term beginning on its commencement date for purposes of determining vacancies in office. Any appointment to the vacant office shall be for a 5-year term beginning at the end of the original 9-year term determined without regard to the deeming under the preceding sentence. Nothing in this subparagraph shall be construed to affect any action or authority of any Governor or the Board of Governors during any portion of a 9-year term deemed to be 5-year term under this subparagraph.
(d) TERM LIMITATION.-
(1) IN GENERAL.-Section 202(b) of title 39, United States Code, is amended-
(A) by inserting "(1)" after "(b)"; and
(B) by adding at the end the following:
"(2) No person may serve more than 3 terms as a Governor.".
(2) APPLICABILITY.-The amendments made by paragraph (1) shall not affect the tenure of any person serving as a Governor of the United States Postal Service on the date of enactment of this Act with respect to the term which that person is serving on that date. Such person may continue to serve the remainder of the applicable term, after which the amendments made by paragraph (1) shall apply.
SEC. 502. OBLIGATIONS.
(a) PURPOSES FOR WHICH OBLIGATIONS MAY BE ISSUED.-The first sentence of section 2005(a)(1) of title 39, United States Code, is amended by striking "title." and inserting "title, other than any of the purposes for which the corresponding authority is available to the Postal Service under section 2011.".
(b) INCREASE RELATING TO OBLIGATIONS ISSUED FOR CAPITAL IMPROVEMENTS.-Section 2005(a)(1) of title 39, United States Code, is amended by striking the third sentence.
© AMOUNTS WHICH MAY BE PLEDGED.-
(1) OBLIGATIONS TO WHICH PROVISIONS APPLY.-The first sentence of section 2005(b) of title 39, United States Code, is amended by striking "such obligations," and inserting "obligations issued by the Postal Service under this section,".
(2) ASSETS, REVENUES, AND RECEIPTS TO WHICH PROVISIONS APPLY.-Subsection (b) of section 2005 of title 39, United States Code, is amended by striking "(b)" and inserting "(b)(1)", and by adding at the end the following:
"(2) Notwithstanding any other provision of this section-
"(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.".
SEC. 503. PRIVATE CARRIAGE OF LETTERS.
(a) IN GENERAL.-Section 601 of title 39, United States Code, is amended by striking subsection (b) and inserting the following:
"(b) A letter may also be carried out of the mails when-
"(1) the amount paid for the private carriage of the letter is at least the amount equal to 6 times the rate then currently charged for the 1st ounce of a single-piece first class letter;
"(2) the letter weighs at least 12½ ounces; or
"(3) such carriage is within the scope of services described by regulations of the United States Postal Service (as in effect on July 1, 2001) that purport to permit private carriage by suspension of the operation of this section (as then in effect).
"© Any regulations necessary to carry out this section shall be promulgated by the Postal Regulatory Commission.".
(b) EFFECTIVE DATE.-This section shall take effect on the date as of which the regulations promulgated under section 3633 of title 39, United States Code (as amended by section 202) take effect.
SEC. 504. 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 and such other functions as may be assigned to the Postal Service under any provisions of law outside of this title;".