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Week Ending February 10, 2006
S.662 A bill to reform the postal laws of the United States.
The bill is an extensive effort to improve or address changes in details of the US Postal Service procedures and does so primarily by creating the Postal Regulatory Commission. The PRC would regulate rates for dominant products such as first-class mail, parcels, cards, periodicals, standard mail, single-piece parcel post, media mail, bound printed matter, library mail, special services and single-piece international mail. The PRC would include annual limitation on percentage rater changes and to inform the public and review rate adjustments 45 days prior to implementation. The USPS would also set more accurate rates for work-share such as when a mailer puts barcodes on the mail saving post office personnel the time.
The bill directs the PRC in Competing with other delivery services to assure that competitive prices cover costs, to conduct market tests for experimental products up to 36 months before marketing the product. Products can be added or removed from the market-dominant list but prohibits delivery of mail that is not on the list or similar lists as a product of the USPO.
The USPO is directed to establish service standards that enhance the value of postal service, preserve access to services in communities, reasonably assure reliable, speedy and frequent deliveries. The USPO needs to expand market retail access to postal services through vending machines, the Internet, the bill says and should make plans for reemployment assistance and early retirement benefits for PO employees displaced due to automation of the consolidation of facilities.
The USPO is prohibited from establishing anti-competitive rules, compelling disclosure, transfer or licensing of intellectual property to any third party or using product information provided by someone without getting their consent.
Funds saved from reductions in benefits paid would be freed from escrow and allowed use for capital expenditures. Local zoning and land use is to be considered before building or altering a PO building.
The USPO would be allowed to file for bankruptcy and the USPO must represent itself in most legal proceedings. The Secretary of State is made responsible for foreign policy as it relates to international postal service.
The cap on USPO borrowing from the Treasury is kept at $3 billion per year and the USPO must continue to support itself through sales of products.
Private mail carriers are allowed to do the USPO business if the amount paid the private carrier is at least 6 times the rate charged for the 1st ounce of a single-piece first-class letter, when the letter weighs at least 12 ½ ounces and when private carriage is within the scope of current Postal Service regulations that permit private carriage.
Pension plans for postal employees is transferred to the Treasury Department when the employees is drawing retirement based on military service. A Postal Service Retiree Health Benefits Fund is also established for cover unfunded USPO liability for healthcare costs of current and future retirees. An employee claiming temporary disability would not be paid for the first three days of the disability but the employee can use vacation, sick leave or leave without pay for those three days. If the disability extends beyond 14 days the employee would be paid for the first three days.
Total or partial disability compensation is converted to 50% of the employee’s monthly pay after reaching retirement age of one year after compensation begins, whichever comes first.
The USPO is authorized to post guards for any or all buildings it owns. Mail transportation contract length limitations are removed
Sponsor: Senator Susan M. Collins (R-ME)
Vote: Passed Senate by Unanimous Consent February 9, 2006
Cost to the taxpayers: “CBO estimates that enacting this legislation would result in on-budget savings of $37.7 billion and off-budget costs of $41.6 billion over the 2006-2015 period. (The net expenditures of the USPS are classified as "off-budget.") Thus, CBO estimates the net cost to the unified budget would be $3.9 billion over the 2006-2015 period.” “In addition, we estimate that implementing S. 662 would cost about $1.6 billion over the 2006-2015 period, assuming appropriation of the necessary amounts, mostly to fund the USPS Office of the Inspector General and the Postal Regulatory Commission.”
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MORE INFORMATION
1. S.AMDT.2696 to S.662 Purpose will be available when the amendment
is proposed for consideration. See Congressional Record for text.
Sponsor: Sen Snowe, Olympia J. [ME] (introduced 1/27/2006) Cosponsors
(None)
Latest Major Action: 1/27/2006 Senate amendment submitted
2. S.AMDT.2750 to S.662 To modify provisions relating to objectives,
unused rate adjustment authority, transition rules, rate and service complaints,
and for other purposes.
Sponsor: Sen Collins, Susan M. [ME] (introduced 2/9/2006) Cosponsors
(1)
Latest Major Action: 2/9/2006 Senate amendment agreed to. Status:
Amendment SA 2750 agreed to in Senate by Unanimous Consent.
3. S.AMDT.2751 to S.662 To provide for procedures by the Postal
Service to give notice on certain actions affecting communities.
Sponsor: Sen Harkin, Tom [IA] (introduced 2/9/2006) Cosponsors
(None)
Latest Major Action: 2/9/2006 Senate amendment agreed to. Status:
Amendment SA 2751 agreed to in Senate by Unanimous Consent.
4. S.AMDT.2752 to S.662 To modify qualifications and terms of
Governors of the United States Postal Service.
Sponsor: Sen Reid, Harry [NV] (introduced 2/9/2006) Cosponsors
(None)
Latest Major Action: 2/9/2006 Senate amendment agreed to. Status:
Amendment SA 2752 agreed to in Senate by Unanimous Consent.
5. S.AMDT.2753 to S.662 To modify contracts for the transportation of
mail by air, and for other purposes.
Sponsor: Sen Stevens, Ted [AK] (introduced 2/9/2006) Cosponsors
(None)
Latest Major Action: 2/9/2006 Senate amendment agreed to. Status:
Amendment SA 2753 agreed to in Senate by Unanimous Consent.
## All Rights Reserved. © 2006 TheWeekInCongress.com.
No reproduction, language translation or distribution without written permission from TheWeekInCongress.com.