39 U.S.C. § 3642 — New products and transfers of products

Page 112 TITLE 39—POSTAL SERVICE § 3642 (Pub. L. 91–375, Aug. 12, 1970, 84 Stat. 763; Pub. L. 94–421, § 6(a), Sept. 24, 1976, 90 Stat. 1306; Pub. L. 109–435, title II, § 203, Dec. 20, 2006, 120 Stat. 3207.) Editorial Notes REFERENCES IN TEXT Section 3 of the Small Business Act, referred to in subsec. (h), is classified to section 632 of Title 15, Com- merce and Trade. AMENDMENTS 2006—Pub. L. 109–435 amended section generally. Prior to amendment, section consisted of subsecs. (a) to (f) relating to temporary changes in rates and classes. 1976—Subsec. (a). Pub. L. 94–421 added subsec. (a). Former subsec. (a) redesignated (e) and amended. Subsec. (b). Pub. L. 94–421 added subsec. (b). Former subsec. (b) redesignated (f). Subsec. (c). Pub. L. 94–421 substituted provision lim- iting the temporary rate increase to an amount no greater than the permanent fee requested for that class or service, for provision which limited a temporary in- crease to the lesser of either the rate or fee requested or an amount more than one-third greater than the permanent fee in effect for that class or service at the time a permanent change is requested. Subsec. (d). Pub. L. 94–421 added subsec. (d). Subsec. (e). Pub. L. 94–421 redesignated former subsec. (a) as (e) and struck out reference to requests for deci- sions on change in the rates of postage or fees for post- al service. Subsec. (f). Pub. L. 94–421 redesignated former subsec. (b) as (f). Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Jan. 20, 1971, pursuant to Resolution No. 71–10 of the Board of Governors. See section 15(a) of Pub. L. 91–375, set out as a note preceding section 101 of this title. RATE CHANGE REQUEST MADE ON SEPTEMBER 18, 1975, OR UNDER DOCKET NUMBER R76–1 Pub. L. 94–421, § 6(b)(1), Sept. 24, 1976, 90 Stat. 1307, provided that: ‘‘The amendment made by subsection (a) of this section [amending this section] shall not apply to any action or proceeding with respect to the rec- ommended decision of the Postal Rate Commission [now Postal Regulatory Commission] relating to pro- posed changes in rates of postage and in fees for postal services requested on September 18, 1975, by the United States Postal Service in a request which bears, or which at any time has been included under, Postal Rate Commission Docket Number R76–1.’’ APPLICABILITY OF FORMER PROVISIONS OF SECTION TO RATE CHANGE REQUEST MADE ON SEPTEMBER 18, 1975, UNDER DOCKET NUMBER R76–1 Pub. L. 94–421, § 6(b)(2), Sept. 24, 1976, 90 Stat. 1307, provided that: ‘‘The provisions of section 3641 of title 39, United States Code, as such provisions were in effect on the day before the date of the enactment of this Act [Sept. 24, 1976], shall apply to any temporary rate or fee established by the Postal Service pursuant to its re- quest to the Postal Rate Commission [now Postal Reg- ulatory Commission], dated September 18, 1975, for a recommended decision, bearing Docket Number R76–1.’’ § 3642. New products and transfers of products between the market-dominant and competi- tive categories of mail (a) IN GENERAL.—Upon request of the Postal Service or users of the mails, or upon its own initiative, the Postal Regulatory Commission may change the list of market-dominant prod- ucts under section 3621 and the list of competi- tive products under section 3631 by adding new products to the lists, removing products from the lists, or transferring products between the lists. (b) CRITERIA.—All determinations by the Post- al Regulatory Commission under subsection (a) shall be made in accordance with the following criteria: (1) The market-dominant category of prod- ucts shall consist of each product in the sale of which the Postal Service exercises suffi- cient market power that it can effectively set the price of such product substantially above costs, raise prices significantly, decrease qual- ity, or decrease output, without risk of losing a significant level of business to other firms offering similar products. The competitive category of products shall consist of all other products. (2) EXCLUSION OF PRODUCTS COVERED BY POST- AL MONOPOLY.—A product covered by the post- al monopoly shall not be subject to transfer under this section from the market-dominant category of mail. For purposes of the pre- ceding sentence, the term ‘‘product covered by the postal monopoly’’ means any product the conveyance or transmission of which is re- served to the United States under section 1696 of title 18, subject to the same exception as set forth in the last sentence of section 409(e)(1). (3) ADDITIONAL CONSIDERATIONS.—In making any decision under this section, due regard shall be given to— (A) the availability and nature of enter- prises in the private sector engaged in the delivery of the product involved; (B) the views of those who use the product involved on the appropriateness of the pro- posed action; and (C) the likely impact of the proposed ac- tion on small business concerns (within the meaning of section 3641(h)). (c) TRANSFERS OF SUBCLASSES AND OTHER SUB- ORDINATE UNITS ALLOWABLE.—Nothing in this title shall be considered to prevent transfers under this section from being made by reason of the fact that they would involve only some (but not all) of the subclasses or other subordinate units of the class of mail or type of postal serv- ice involved (without regard to satisfaction of minimum quantity requirements standing alone). (d) NOTIFICATION AND PUBLICATION REQUIRE- MENTS.— (1) NOTIFICATION REQUIREMENT.—The Postal Service shall, whenever it requests to add a product or transfer a product to a different category, file with the Postal Regulatory Commission and publish in the Federal Reg- ister a notice setting out the basis for its de- termination that the product satisfies the cri- teria under subsection (b) and, in the case of a request to add a product or transfer a product to the competitive category of mail, that the product meets the regulations promulgated by the Postal Regulatory Commission under sec- tion 3633. The provisions of section 504(g) shall be available with respect to any information required to be filed. Page 113 TITLE 39—POSTAL SERVICE § 3652 (2) PUBLICATION REQUIREMENT.—The Postal Regulatory Commission shall, whenever it changes the list of products in the market- dominant or competitive category of mail, prescribe new lists of products. The revised lists shall indicate how and when any previous lists (including the lists under sections 3621 and 3631) are superseded, and shall be pub- lished in the Federal Register. (e) PROHIBITION.—Except as provided in section 3641, no product that involves the physical deliv- ery of letters, printed matter, or packages may be offered by the Postal Service unless it has been assigned to the market-dominant or com- petitive category of mail (as appropriate) ei- ther— (1) under this subchapter; or (2) by or under any other provision of law. (Added Pub. L. 103–123, title VII, § 704(a)(2), Oct. 28, 1993, 107 Stat. 1268; amended Pub. L. 109–435, title II, § 203, Dec. 20, 2006, 120 Stat. 3209.) Editorial Notes AMENDMENTS 2006—Pub. L. 109–435 amended section generally. Prior to amendment, section consisted of subsecs. (a) to (d), related to special authority relating to reduced-rate categories of mail. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable with respect to rates for mail sent after Sept. 30, 1993, see section 704(c)(1) of Pub. L. 103–123, set out as an Effective Date of 1993 Amendment note under section 3626 of this title. SUBCHAPTER IV—REPORTING REQUIRE- MENTS AND RELATED PROVISIONS Editorial Notes PRIOR PROVISIONS A prior subchapter IV was redesignated subchapter V of this chapter. § 3651. Annual reports by the Commission (a) IN GENERAL.—The Postal Regulatory Com- mission shall submit an annual report to the President and the Congress concerning the oper- ations of the Commission under this title, in- cluding the extent to which regulations are achieving the objectives under sections 3622 and 3633, respectively. (b) ADDITIONAL INFORMATION.— (1) IN GENERAL.—In addition to the informa- tion required under subsection (a), each report under this section shall also include, with re- spect to the period covered by such report, an estimate of the costs incurred by the Postal Service in providing— (A) postal services to areas of the Nation where, in the judgment of the Postal Regu- latory Commission, the Postal Service ei- ther would not provide services at all or would not provide such services in accord- ance with the requirements of this title if the Postal Service were not required to pro- vide prompt, reliable, and efficient services to patrons in all areas and all communities, including as required under the first sen- tence of section 101(b); (B) free or reduced rates for postal services as required by this title; and (C) other public services or activities which, in the judgment of the Postal Regu- latory Commission, would not otherwise have been provided by the Postal Service but for the requirements of law. (2) BASIS FOR ESTIMATES.—The Commission shall detail the basis for its estimates and the statutory requirements giving rise to the costs identified in each report under this section. (c) INFORMATION FROM POSTAL SERVICE.—The Postal Service shall provide the Postal Regu- latory Commission with such information as may, in the judgment of the Commission, be necessary in order for the Commission to pre- pare its reports under this section. (Added Pub. L. 109–435, title II, § 204(b), Dec. 20, 2006, 120 Stat. 3211.) § 3652. Annual reports to the Commission (a) COSTS, REVENUES, RATES, AND SERVICE.— Except as provided in subsection (c), the Postal Service shall, no later than 90 days after the end of each year, prepare and submit to the Postal Regulatory Commission a report (together with such nonpublic annex to the report as the Com- mission may require under subsection (e))— (1) which shall analyze costs, revenues, rates, and quality of service, using such meth- odologies as the Commission shall by regula- tion prescribe, and in sufficient detail to dem- onstrate that all products during such year complied with all applicable requirements of this title; and (2) which shall, for each market-dominant product provided in such year, provide— (A) product information, including mail volumes; and (B) measures of the quality of service af- forded by the Postal Service in connection with such product, including— (i) the level of service (described in terms of speed of delivery and reliability) provided; and (ii) the degree of customer satisfaction with the service provided. The Inspector General shall regularly audit the data collection systems and procedures utilized in collecting information and pre- paring such report (including any annex there- to and the information required under sub- section (b)). The results of any such audit shall be submitted to the Postal Service and the Postal Regulatory Commission. (b) INFORMATION RELATING TO WORKSHARE DIS- COUNTS.—The Postal Service shall include, in each report under subsection (a), the following information with respect to each market-domi- nant product for which a workshare discount was in effect during the period covered by such report: (1) The per-item cost avoided by the Postal Service by virtue of such discount. (2) The percentage of such per-item cost avoided that the per-item workshare discount represents.