§3633 — Title 39 Postal Service | U.S. Code

Summary

The Postal Regulatory Commission must set rules within 18 months and may change them later. The rules must stop market-dominant products from subsidizing competitive products, make each competitive product pay the costs that are directly linked to it, and make all competitive products together pay a fair share of the Postal Service’s overall (institutional) costs. Five years after enactment, and every five years after that, the Commission must review whether the institutional-cost share rule should stay, be changed, or be removed. The review must look at market conditions and whether certain costs are mainly tied to competitive products.

Title 39, §3633

Postal Service — Source: USLM XML via OLRC

(a)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; and

(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)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.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The date of enactment of this section, referred to in text, is the date of enactment of Pub. L. 109–435, which was approved Dec. 20, 2006.

Statutory Notes and Related Subsidiaries

Review of Postal Service Cost Attribution Guidelines Pub. L. 117–108, title II, § 203, Apr. 6, 2022, 136 Stat. 1147, provided that: “Not later than the date that is one year after the date of the enactment of this Act [Apr. 6, 2022], the Postal Regulatory Commission shall initiate a review of the

Regulations

issued pursuant to section 3633(a) and 3652(a)(1) of title 39, United States Code, to determine whether revisions are appropriate to ensure that all direct and indirect costs attributable to competitive and market-dominant products are properly attributed to those products, including by considering the underlying methodologies in determining cost attribution and considering options to revise such methodologies. If the Commission determines, after notice and opportunity for public comment, that revisions are appropriate, the Commission shall make modifications or adopt alternative methodologies as necessary.” [For definitions of terms used in section 203 of Pub. L. 117–108, set out above, see section 2 of Pub. L. 117–108, set out as a note under section 501 of this title.] Study on Equal Application of Laws to Competitive Products Pub. L. 109–435, title VII, § 703, Dec. 20, 2006, 120 Stat. 3244, required the Federal Trade Commission to prepare and submit to the President and Congress, and to the Postal Regulatory Commission, within 1 year after Dec. 20, 2006, a comprehensive report identifying Federal and State laws that applied differently to the United States Postal Service with respect to the competitive category of mail (within the meaning of section 102 of this title) and to private companies providing similar products.

§3633 Provisions Applicable to Rates for Competitive Products