As expected, Sen. Thomas Carper (D-DE) Wednesday introduced a reform bill that would give the U.S. Postal Service wider authority to make business decisions. The bill also calls for the creation of a new oversight agency.
“We’re supportive of this bill and the [Senate Governmental Affairs] Committee’s interest in it,” said Neal Denton, executive director of the Alliance of Nonprofit Mailers.
“The issue of postal reform is critical to the country, magazine readers and the entire mailing industry,” said Ann Moore, CEO of Time Inc. in a statement. “Senator Carper’s bill provides the Postal Service with much-needed flexibility that allows it to operate in a more businesslike manner, which is important to any reform bill.”
According to Carper’s office, the legislation, the Postal Accountability and Enhancement Act of 2003, would begin the process of developing a modern rate system for pricing Postal Service products, as expected [Direct Newsline, June 16]. The bill would also create a strong regulatory body to ensure that the Postal Service competes fairly with other national mail carriers.
Specifically, the bill:
*Maintains the current requirement that the USPS continue delivering to every address in the country.
*Renames the Postal Rate Commission the Postal Regulatory Commission and gives it the authority to create a new system of rates and service standards for most USPS products.
*Requires this new Commission to create a new system for pricing and classifying the Postal Service’s Market Dominant products, such as First Class Mail and others that are part of the postal monopoly.
*Gives the Postal Regulatory Commission the power to institute emergency price increases during certain times, such as a national fuel crisis, that threaten the agency’s ability to fulfill its universal service mandate.
*Mandates that mailers, the USPS and Commission to agree to a schedule of rate increases over a period of time to make them more predictable and less frequent.
*Authorizes the USPS to make negotiated service agreements with mailers.
*Prevents the USPS from using revenue from its monopoly products, such as First Class Mail, to underwrite expenses for its competitive products, like Priority Mail.
*Requires the USPS to pay an assumed federal income tax on products that private firms also offer.
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