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The Postal Service could be restructured for the first
time in more than 30 years, under legislation approved Wednesday (May 12,
2004) by the House Government Reform Committee.
In a 40-0 vote, the panel approved the bill (H.R. 4341), which
would grant the Postal Service more flexibility to change its rates and
manage its costs, while increasing the power of the postal regulatory
board. (GovExec)
The major provisions of the Postal Accountability and
Enhancement Act are:
Modern Rate
Regulation - shifting the basis of the Postal Rate Commission from a
costly, complex scheme of rate cases to a modern system designed to ensure
that rate increases generally do not exceed the annual change in the
Consumer Price Index. This applies only to market-dominant products
(letters, periodicals, advertising mail) because the Postal Service is
provided with different pricing freedom for its competitive products
(Express Mail, Priority Mail, etc.)
Combining Market
Disciplines with Regulation -
combining market mechanisms with Commission regulation to govern the rates
of competitive products. The Postal Service would be given additional
pricing freedom but would lose favored legal treatment for such products.
Limitations on Postal Monopoly and Nonpostal Products
- requiring the Postal Service
to only offer postal services and for the first time defining exactly
what constitutes "postal services." The bill also revises the
authority of the Postal Service to regulate competitors.
Reform of
International Mail Regulation - clarifying the authority of the State
Department to set international policy, applying customs laws equally to
postal and private shipments, and giving the Postal Service the authority
to contract with airlines for transport of international mail.
Strengthening
of the Commission - giving the Postal Rate Commission "teeth" by
granting it subpoena power and a broader scope for regulation and
oversight. The PRC would be renamed the "Postal Regulatory Commission."
Establish a
Basis for Future Reforms - mandating several studies, including a
comprehensive assessment of the scope and standards for universal
services.
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