HR 2589 IH

To provide for the privatization of the United States Postal Service.

July 22, 1999

Mr. CRANE (for himself, Mr. ROHRABACHER, and Mr. COX) introduced the following bill; which was referred to the Committee on Government Reform

To provide for the privatization of the United States Postal Service.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. TRANSFER TO A PRIVATE CORPORATION.

(a) IN GENERAL- In accordance with the plan prescribed under section 3, all right, title, and interest of the United States in and to all property of the Postal Service shall be transferred to a corporation if, within 1 year after the date of the enactment of this Act, such corporation satisfies the requirements set forth in section 2.

(b) SPECIFIC REQUIREMENT- The plan prescribed under section 3 shall include such provisions as may be necessary to ensure that no payment shall be required in consideration for any rights or assets of the Postal Service which are transferred pursuant to this Act.

SEC. 2. REQUIREMENTS FOR THE CORPORATION.

(a) IN GENERAL- A corporation shall be considered to satisfy the requirements of this section if such corporation--

(1) is incorporated under the laws of a State;

(2) is not a department, agency, or establishment of the United States;

(3) is incorporated by not more than 9 individuals who are especially qualified to establish and operate an effective mail system by virtue of their education, training, or experience, and who are chosen by the employees of the Postal Service in an election which shall be held at such time and in such manner as the President shall by regulation prescribe;

(4) includes among its purposes the delivery of postal services in a manner consistent with section 101(b) of title 39, United States Code, at rates established in a manner consistent with section 101(d) of such title;

(5) issues securities in a manner consistent with subsection (b); and

(6) satisfies such other requirements as the President may by regulation prescribe in order to carry out the purposes of this Act.

(b) SECURITIES- Any securities issued by the corporation--

(1) shall, during the 1-year period beginning on the date of the enactment of this Act, be issued--

(A) only to employees of the Postal Service; and

(B) in a manner to be determined by the Postal Privatization Commission.

(c) RETIREMENT BENEFITS- Retirement benefits provided to individuals who become employees of the corporation by transfer from the Postal Service must be comparable to those which would have been afforded to those individuals as employees of the Postal Service had this Act not been enacted.

SEC. 3. TRANSFER PLAN; PRESIDENTIAL DETERMINATION; RATE-SETTING AUTHORITY.

(a) TRANSFER PLAN- Not later than the sixtieth day after the date on which a corporation first satisfies the requirements of section 2, as determined under subsection (b), the President shall, in conformance with the requirements of section 1, and after consultation with the Postal Privatization Commission, transmit to Congress--

(1) a comprehensive plan providing for the orderly transfer of all property subject to this Act, including a timetable under which such transfer is completed not later than 180 days after the date on which such corporation first satisfies such requirements; and

(2) such recommendations for legislation as the President considers necessary in order to carry out the plan described in paragraph (1), including recommendations--

(A) for the abolishment of the Postal Service;

(B) for the continuation of the private express statutes with respect to the corporation during the first 5 years of its existence; and

(C) for the repeal or modification of appropriate Federal statutes.

(b) PRESIDENTIAL DETERMINATION- The President shall, for purposes of this section, determine the date on which a corporation first satisfies the requirements of section 2.

(c) RATE-SETTING AUTHORITY- After consulting with the Postal Rate Commission, the President shall develop and include as part of the recommendations submitted under subsection (a) proposals relating to the means by which rates of postage would be established during the 5-year period referred to in subsection (a)(2)(B). Such recommendations may include continuing any operations of the Postal Rate Commission (whether on a modified basis or otherwise) which may be appropriate.

SEC. 4. POSTAL PRIVATIZATION COMMISSION.

(a) ESTABLISHMENT- In order to carry out the functions set forth in sections 2(b)(1)(B) and 3(a), there is established a commission to be known as the `Postal Privatization Commission'.

(b) MEMBERSHIP- The Commission shall consist of 9 members, to be selected by the President. Of those members--

(1) 3 shall be selected from among individuals recommended jointly by the Speaker of the House of Representatives and the President pro tempore of the Senate;

(2) 2 shall be selected to represent the interests of employees of the Postal Service;

(3) 2 shall be selected to represent the interests of postal management; and

(4) 2 shall be selected from such other postal experts as the President considers appropriate.

(c) COMPENSATION-

(1) IN GENERAL- Except as provided in paragraph (2), members of the Commission shall be paid at the daily equivalent of a rate, not to exceed the rate of basic pay payable for level IV of the Executive Schedule, for each day (including travel time) during which they are engaged in the performance of duties of the Commission.

(2) EXCEPTION- Members of the Commission who are full-time officers or employees of the United States shall receive no additional pay by reason of their service on the Commission.

(d) TERMINATION- The Commission shall cease to exist as of the date on which the work of the Commission has been completed.

SEC. 5. DEFINITIONS.

For purposes of this Act--

(1) the term `Postal Service' means the United States Postal Service and the Postal Rate Commission;

(2) the term `property', when used with respect to the Postal Service, means all assets and rights, and all liabilities and obligations, of the Postal Service;

(3) the term `State' means each of the several States, the District of Columbia, and the Commonwealth of Puerto Rico; and

(4) the term `Postal Privatization Commission' refers to the commission established under section 4.

END