PROVISIONS RELATING TO COMPETITIVE PRODUCTS.

SEC. 202. PROVISIONS RELATING TO COMPETITIVE PRODUCTS. Chapter 36 of title 39, United States Code, is amended by inserting after section 3629 the following:“SUBCHAPTER II—PROVISIONS RELATING TO COMPETITIVE PRODUCTS“§ 3631. Applicability; definitions and updates“(a) Applicability.—This subchapter shall apply with respect to—“(1) priority mail;“(2) expedited mail;“(3) bulk parcel post;“(4) bulk international mail; and“(5) mailgrams; subject to subsection (d) and any changes the Postal Regulatory Commission may make under section 3642.“(b) Definition.—For purposes of this subchapter, the term ‘costs attributable’, as used with respect to a product, means the direct and indirect postal costs attributable to such product through reliably identified causal relationships.120 STAT. 3206“(c) Rule of Construction.—Mail matter referred to in subsection (a) shall, for purposes of this subchapter, be considered to have the meaning given to such mail matter under the mail classification schedule.“§ 3632. Action of the Governors“(a) Authority To Establish Rates and Classes.—The Governors, with the concurrence of a majority of all of the Governors then holding office, shall establish rates and classes for products in the competitive category of mail in accordance with the requirements of this subchapter and regulations promulgated under section 3633.“(b) Procedures.—“(1) In general.—Rates and classes shall be established in writing, complete with a statement of explanation and justification, and the date as of which each such rate or class takes effect.“(2) Rates or classes of general applicability.—In the case of rates or classes of general applicability in the Nation as a whole or in any substantial region of the Nation, the Governors shall cause each rate and class decision under this section and the record of the Governors’ proceedings in connection with such decision to be published in the Federal Register at least 30 days before the effective date of any new rates or classes. “(3) Rates or classes not of general applicability.—In the case of rates or classes not of general applicability in the Nation as a whole or in any substantial region of the Nation, the Governors shall cause each rate and class decision under this section and the record of the proceedings in connection with such decision to be filed with the Postal Regulatory Commission by such date before the effective date of any new rates or classes as the Governors consider appropriate, but in no case less than 15 days. “(4) Criteria.—As part of the regulations required under section 3633, the Postal Regulatory Commission shall establish criteria for determining when a rate or class established under this subchapter is or is not of general applicability in the Nation as a whole or in any substantial region of the Nation. “(c) Transition Rule.—Until regulations under section 3633 first take effect, rates and classes for competitive products shall remain subject to modification in accordance with the provisions of this chapter and section 407, as such provisions were as last in effect before the date of enactment of this section. “§ 3633. Provisions applicable to rates for competitive products“(a) In General.—The Postal Regulatory Commission shall, within 18 months after the date of enactment of this section, promulgate (and may from time to time thereafter revise) regulations to—“(1) prohibit the subsidization of competitive products by market-dominant products;“(2) ensure that each competitive product covers its costs attributable; and120 STAT. 3207“(3) ensure that all competitive products collectively cover what the Commission determines to be an appropriate share of the institutional costs of the Postal Service.“(b) Review of Minimum Contribution.—Five years after the date of enactment of this section, and every 5 years thereafter, the Postal Regulatory Commission shall conduct a review to determine whether the institutional costs contribution requirement under subsection (a)(3) should be retained in its current form, modified, or eliminated. In making its determination, the Commission shall consider all relevant circumstances, including the prevailing competitive conditions in the market, and the degree to which any costs are uniquely or disproportionately associated with any competitive products.” .