Title 39 — Postal Service
Part IV · Chapter 36 — Postal Rates, Classes, and Services
§ 3641. Market tests of experimental products
Statutory text
Authority.—
In general.—
The Postal Service may conduct market tests of experimental products in accordance with this section.
Provisions waived.—
A product shall not, while it is being tested under this section, be subject to the requirements of sections 3622, 3633, or 3642, or regulations promulgated under those sections.
Conditions.—
A product may not be tested under this section unless it satisfies each of the following:
Significantly different product.—
The product is, from the viewpoint of the mail users, significantly different from all products offered by the Postal Service within the 2-year period preceding the start of the test.
Market disruption.—
The introduction or continued offering of the product will not create an unfair or otherwise inappropriate competitive advantage for the Postal Service or any mailer, particularly in regard to small business concerns (as defined under subsection (h)).
Correct categorization.—
The Postal Service identifies the product, for the purpose of a test under this section, as either market-dominant or competitive, consistent with the criteria under section 3642(b)(1). Costs and revenues attributable to a product identified as competitive shall be included in any determination under section 3633(3) 1 (relating to provisions applicable to competitive products collectively). Any test that solely affects products currently classified as competitive, or which provides services ancillary to only competitive products, shall be presumed to be in the competitive product category without regard to whether a similar ancillary product exists for market-dominant products.
Notice.—
In general.—
At least 30 days before initiating a market test under this section, the Postal Service shall file with the Postal Regulatory Commission and publish in the Federal Register a notice—
setting out the basis for the Postal Service’s determination that the market test is covered by this section; and
describing the nature and scope of the market test.
Safeguards.—
For a competitive experimental product, the provisions of section 504(g) shall be available with respect to any information required to be filed under paragraph (1) to the same extent and in the same manner as in the case of any matter described in section 504(g)(1). Nothing in paragraph (1) shall be considered to permit or require the publication of any information as to which confidential treatment is accorded under the preceding sentence (subject to the same exception as set forth in section 504(g)(3)).
Duration.—
In general.—
A market test of a product under this section may be conducted over a period of not to exceed 24 months.
Extension authority.—
If necessary in order to determine the feasibility or desirability of a product being tested under this section, the Postal Regulatory Commission may, upon written application of the Postal Service (filed not later than 60 days before the date as of which the testing of such product would otherwise be scheduled to terminate under paragraph (1)), extend the testing of such product for not to exceed an additional 12 months.
Dollar-Amount Limitation.—
In general.—
A product may only be tested under this section if the total revenues that are anticipated, or in fact received, by the Postal Service from such product do not exceed $10,000,000 in any year, subject to paragraph (2) and subsection (g). In carrying out the preceding sentence, the Postal Regulatory Commission may limit the amount of revenues the Postal Service may obtain from any particular geographic market as necessary to prevent market disruption (as defined under subsection (b)(2)).
Exemption authority.—
The Postal Regulatory Commission may, upon written application of the Postal Service, exempt the market test from the limit in paragraph (1) if the total revenues that are anticipated, or in fact received, by the Postal Service from such product do not exceed $50,000,000 in any year, subject to subsection (g). In reviewing an application under this paragraph, the Postal Regulatory Commission shall approve such application if it determines that—
the product is likely to benefit the public and meet an expected demand;
the product is likely to contribute to the financial stability of the Postal Service; and
the product is not likely to result in unfair or otherwise inappropriate competition.
Cancellation.—
If the Postal Regulatory Commission at any time determines that a market test under this section fails, with respect to any particular product, to meet 1 or more of the requirements of this section, it may order the cancellation of the test involved or take such other action as it considers appropriate. A determination under this subsection shall be made in accordance with such procedures as the Commission shall by regulation prescribe.
Adjustment for Inflation.—
For purposes of each year following the year in which occurs the deadline for the Postal Service’s first report to the Postal Regulatory Commission under section 3652(a), each dollar amount contained in this section shall be adjusted by the change in the Consumer Price Index for such year (as determined under regulations of the Commission).
Definition of a Small Business Concern.—
The criteria used in defining small business concerns or otherwise categorizing business concerns as small business concerns shall, for purposes of this section, be established by the Postal Regulatory Commission in conformance with the requirements of section 3 of the Small Business Act.
Effective Date.—
Market tests under this subchapter may be conducted in any year beginning with the first year in which occurs the deadline for the Postal Service’s first report to the Postal Regulatory Commission under section 3652(a).
Footnotes
- 1 So in original. Probably should be section “3633(a)(3)”.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Postal Reorganization Act
Pub. L. 91–375 · 84 Stat. 719
Enacted · 39 U.S.C. § 3641
Pub. L. 91–375, Aug. 12, 1970, 84 Stat. 763
Source evidence
Code source credit
Pub. L. 91–375, Aug. 12, 1970, 84 Stat. 763Postal Reorganization Act Amendments of 1976
Pub. L. 94–421 § 6(a) · 90 Stat. 1303
Redesignated · 39 U.S.C. § 3641(a)
Pub. L. 94–421 added subsec. (a). Former subsec. (a) redesignated (e)
Amended · 39 U.S.C. § 3641(a)
Pub. L. 94–421 amended
Source evidence
Code amendment note
Subsec. (a). Pub. L. 94–421 added subsec. (a). Former subsec. (a) redesignated (e) and amended.Enacted provision · exact public law section
(a) Section 364] of title 39, United States Code, is amended to read as follows: “§ 3641. Temporary changes in rates and classes “(a) In any case in which the Postal Rate Commission fails to transmit a recommended decision on a change in rates of postage or in fees for postal services to the Governors in accordance with section Supra. 3624(c) of this title, the Postal Service may establish temporary changes in rates of postage and in fees for postal services in accordance with the proposed changes under consideration by the Commission. Publication in Federal Register. Such temporary changes may take effect upon such date as the Postal Service may determine, except that such temporary changes may take effect only after 10 days’ notice in the Federal Register. “(b) Any temporary rate or fee established by the Postal Service under subsection (a) of this section shall be in accordance with the policies of this title and shall not exceed such amount as may be necessary for sufficient revenues to assure that the total estimated income, including appropriations, of the Postal Service shall, to the extent practicable, be equal to the total estimated costs of the Postal Service. “(c) Notwithstanding the provisions of subsection (b) of this section, the Postal Service may not establish any temporary rate for a class of mail or any temporary fee for a postal service which is more than the permanent rate or lee requested for such class or postal service by the Postal Service under section 3622 of this title. “(d) Any temporary change in rates of postage or in fees for postal services made by the Postal Service mid er tins section shall remain in effect no longer than 150 days after the date on which the Commis-sion transmits its recommended decision to the Governors under section 3624(d) of this title, unless such temporary change is terminated 39 USC 3624. by the Governors before the expiration of such period. “(e) If the Postal Rate Commission does not transmit to the Publication in Federal Register. Governors within 90 days after the Postal Service has submitted, or within 30 days after the Postal Service has resubmitted, to the Commission a request for a recommended decision on a change in the mail classification schedule (after such schedule is established under-section 3623 of this title), the Postal Service, upon 10 days’ notice in the 39 USC 3623. Federal Register, may place into effect temporary changes in the mail classification schedule in accordance with proposed changes under consideration by the Commission. Any temporary change shall Ire effective for a period ending not later than 30 days after the Commission has transmitted its recommended decision to the Governors. “(f) If, under section 3628 of this title, a court orders a matter 39 USC 3628. returned to the Commission for further consideration, the Postal Service, with the consent of the Commission, may place into effect temporary changes in rates of postage, and fees for postal services, or in the mail classification schedule.”.Postal Reorganization Act Amendments of 1976
Pub. L. 94–421 § 6(a) · 90 Stat. 1303
Redesignated · 39 U.S.C. § 3641(b)
Pub. L. 94–421 added subsec. (b). Former subsec. (b) redesignated (f)
Source evidence
Code amendment note
Subsec. (b). Pub. L. 94–421 added subsec. (b). Former subsec. (b) redesignated (f).Enacted provision · exact public law section
(a) Section 364] of title 39, United States Code, is amended to read as follows: “§ 3641. Temporary changes in rates and classes “(a) In any case in which the Postal Rate Commission fails to transmit a recommended decision on a change in rates of postage or in fees for postal services to the Governors in accordance with section Supra. 3624(c) of this title, the Postal Service may establish temporary changes in rates of postage and in fees for postal services in accordance with the proposed changes under consideration by the Commission. Publication in Federal Register. Such temporary changes may take effect upon such date as the Postal Service may determine, except that such temporary changes may take effect only after 10 days’ notice in the Federal Register. “(b) Any temporary rate or fee established by the Postal Service under subsection (a) of this section shall be in accordance with the policies of this title and shall not exceed such amount as may be necessary for sufficient revenues to assure that the total estimated income, including appropriations, of the Postal Service shall, to the extent practicable, be equal to the total estimated costs of the Postal Service. “(c) Notwithstanding the provisions of subsection (b) of this section, the Postal Service may not establish any temporary rate for a class of mail or any temporary fee for a postal service which is more than the permanent rate or lee requested for such class or postal service by the Postal Service under section 3622 of this title. “(d) Any temporary change in rates of postage or in fees for postal services made by the Postal Service mid er tins section shall remain in effect no longer than 150 days after the date on which the Commis-sion transmits its recommended decision to the Governors under section 3624(d) of this title, unless such temporary change is terminated 39 USC 3624. by the Governors before the expiration of such period. “(e) If the Postal Rate Commission does not transmit to the Publication in Federal Register. Governors within 90 days after the Postal Service has submitted, or within 30 days after the Postal Service has resubmitted, to the Commission a request for a recommended decision on a change in the mail classification schedule (after such schedule is established under-section 3623 of this title), the Postal Service, upon 10 days’ notice in the 39 USC 3623. Federal Register, may place into effect temporary changes in the mail classification schedule in accordance with proposed changes under consideration by the Commission. Any temporary change shall Ire effective for a period ending not later than 30 days after the Commission has transmitted its recommended decision to the Governors. “(f) If, under section 3628 of this title, a court orders a matter 39 USC 3628. returned to the Commission for further consideration, the Postal Service, with the consent of the Commission, may place into effect temporary changes in rates of postage, and fees for postal services, or in the mail classification schedule.”.Postal Reorganization Act Amendments of 1976
Pub. L. 94–421 § 6(a) · 90 Stat. 1303
Substituted · 39 U.S.C. § 3641(c)
Pub. L. 94–421 substituted provision limiting 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 increase 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
Source evidence
Code amendment note
Subsec. (c). Pub. L. 94–421 substituted provision limiting 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 increase 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.Enacted provision · exact public law section
(a) Section 364] of title 39, United States Code, is amended to read as follows: “§ 3641. Temporary changes in rates and classes “(a) In any case in which the Postal Rate Commission fails to transmit a recommended decision on a change in rates of postage or in fees for postal services to the Governors in accordance with section Supra. 3624(c) of this title, the Postal Service may establish temporary changes in rates of postage and in fees for postal services in accordance with the proposed changes under consideration by the Commission. Publication in Federal Register. Such temporary changes may take effect upon such date as the Postal Service may determine, except that such temporary changes may take effect only after 10 days’ notice in the Federal Register. “(b) Any temporary rate or fee established by the Postal Service under subsection (a) of this section shall be in accordance with the policies of this title and shall not exceed such amount as may be necessary for sufficient revenues to assure that the total estimated income, including appropriations, of the Postal Service shall, to the extent practicable, be equal to the total estimated costs of the Postal Service. “(c) Notwithstanding the provisions of subsection (b) of this section, the Postal Service may not establish any temporary rate for a class of mail or any temporary fee for a postal service which is more than the permanent rate or lee requested for such class or postal service by the Postal Service under section 3622 of this title. “(d) Any temporary change in rates of postage or in fees for postal services made by the Postal Service mid er tins section shall remain in effect no longer than 150 days after the date on which the Commis-sion transmits its recommended decision to the Governors under section 3624(d) of this title, unless such temporary change is terminated 39 USC 3624. by the Governors before the expiration of such period. “(e) If the Postal Rate Commission does not transmit to the Publication in Federal Register. Governors within 90 days after the Postal Service has submitted, or within 30 days after the Postal Service has resubmitted, to the Commission a request for a recommended decision on a change in the mail classification schedule (after such schedule is established under-section 3623 of this title), the Postal Service, upon 10 days’ notice in the 39 USC 3623. Federal Register, may place into effect temporary changes in the mail classification schedule in accordance with proposed changes under consideration by the Commission. Any temporary change shall Ire effective for a period ending not later than 30 days after the Commission has transmitted its recommended decision to the Governors. “(f) If, under section 3628 of this title, a court orders a matter 39 USC 3628. returned to the Commission for further consideration, the Postal Service, with the consent of the Commission, may place into effect temporary changes in rates of postage, and fees for postal services, or in the mail classification schedule.”.Postal Reorganization Act Amendments of 1976
Pub. L. 94–421 § 6(a) · 90 Stat. 1303
Added · 39 U.S.C. § 3641(d)
Pub. L. 94–421 added subsec. (d)
Source evidence
Code amendment note
Subsec. (d). Pub. L. 94–421 added subsec. (d).Enacted provision · exact public law section
(a) Section 364] of title 39, United States Code, is amended to read as follows: “§ 3641. Temporary changes in rates and classes “(a) In any case in which the Postal Rate Commission fails to transmit a recommended decision on a change in rates of postage or in fees for postal services to the Governors in accordance with section Supra. 3624(c) of this title, the Postal Service may establish temporary changes in rates of postage and in fees for postal services in accordance with the proposed changes under consideration by the Commission. Publication in Federal Register. Such temporary changes may take effect upon such date as the Postal Service may determine, except that such temporary changes may take effect only after 10 days’ notice in the Federal Register. “(b) Any temporary rate or fee established by the Postal Service under subsection (a) of this section shall be in accordance with the policies of this title and shall not exceed such amount as may be necessary for sufficient revenues to assure that the total estimated income, including appropriations, of the Postal Service shall, to the extent practicable, be equal to the total estimated costs of the Postal Service. “(c) Notwithstanding the provisions of subsection (b) of this section, the Postal Service may not establish any temporary rate for a class of mail or any temporary fee for a postal service which is more than the permanent rate or lee requested for such class or postal service by the Postal Service under section 3622 of this title. “(d) Any temporary change in rates of postage or in fees for postal services made by the Postal Service mid er tins section shall remain in effect no longer than 150 days after the date on which the Commis-sion transmits its recommended decision to the Governors under section 3624(d) of this title, unless such temporary change is terminated 39 USC 3624. by the Governors before the expiration of such period. “(e) If the Postal Rate Commission does not transmit to the Publication in Federal Register. Governors within 90 days after the Postal Service has submitted, or within 30 days after the Postal Service has resubmitted, to the Commission a request for a recommended decision on a change in the mail classification schedule (after such schedule is established under-section 3623 of this title), the Postal Service, upon 10 days’ notice in the 39 USC 3623. Federal Register, may place into effect temporary changes in the mail classification schedule in accordance with proposed changes under consideration by the Commission. Any temporary change shall Ire effective for a period ending not later than 30 days after the Commission has transmitted its recommended decision to the Governors. “(f) If, under section 3628 of this title, a court orders a matter 39 USC 3628. returned to the Commission for further consideration, the Postal Service, with the consent of the Commission, may place into effect temporary changes in rates of postage, and fees for postal services, or in the mail classification schedule.”.Postal Reorganization Act Amendments of 1976
Pub. L. 94–421 § 6(a) · 90 Stat. 1303
Redesignated · 39 U.S.C. § 3641(e)
Pub. L. 94–421 redesignated former subsec. (a) as (e)
Struck · 39 U.S.C. § 3641(e)
Pub. L. 94–421 struck out reference to requests for decisions on change in the rates of postage or fees for postal service
Source evidence
Code amendment note
Subsec. (e). Pub. L. 94–421 redesignated former subsec. (a) as (e) and struck out reference to requests for decisions on change in the rates of postage or fees for postal service.Enacted provision · exact public law section
(a) Section 364] of title 39, United States Code, is amended to read as follows: “§ 3641. Temporary changes in rates and classes “(a) In any case in which the Postal Rate Commission fails to transmit a recommended decision on a change in rates of postage or in fees for postal services to the Governors in accordance with section Supra. 3624(c) of this title, the Postal Service may establish temporary changes in rates of postage and in fees for postal services in accordance with the proposed changes under consideration by the Commission. Publication in Federal Register. Such temporary changes may take effect upon such date as the Postal Service may determine, except that such temporary changes may take effect only after 10 days’ notice in the Federal Register. “(b) Any temporary rate or fee established by the Postal Service under subsection (a) of this section shall be in accordance with the policies of this title and shall not exceed such amount as may be necessary for sufficient revenues to assure that the total estimated income, including appropriations, of the Postal Service shall, to the extent practicable, be equal to the total estimated costs of the Postal Service. “(c) Notwithstanding the provisions of subsection (b) of this section, the Postal Service may not establish any temporary rate for a class of mail or any temporary fee for a postal service which is more than the permanent rate or lee requested for such class or postal service by the Postal Service under section 3622 of this title. “(d) Any temporary change in rates of postage or in fees for postal services made by the Postal Service mid er tins section shall remain in effect no longer than 150 days after the date on which the Commis-sion transmits its recommended decision to the Governors under section 3624(d) of this title, unless such temporary change is terminated 39 USC 3624. by the Governors before the expiration of such period. “(e) If the Postal Rate Commission does not transmit to the Publication in Federal Register. Governors within 90 days after the Postal Service has submitted, or within 30 days after the Postal Service has resubmitted, to the Commission a request for a recommended decision on a change in the mail classification schedule (after such schedule is established under-section 3623 of this title), the Postal Service, upon 10 days’ notice in the 39 USC 3623. Federal Register, may place into effect temporary changes in the mail classification schedule in accordance with proposed changes under consideration by the Commission. Any temporary change shall Ire effective for a period ending not later than 30 days after the Commission has transmitted its recommended decision to the Governors. “(f) If, under section 3628 of this title, a court orders a matter 39 USC 3628. returned to the Commission for further consideration, the Postal Service, with the consent of the Commission, may place into effect temporary changes in rates of postage, and fees for postal services, or in the mail classification schedule.”.Postal Reorganization Act Amendments of 1976
Pub. L. 94–421 § 6(a) · 90 Stat. 1303
Redesignated · 39 U.S.C. § 3641(f)
Pub. L. 94–421 redesignated former subsec. (b) as (f)
Source evidence
Code amendment note
Subsec. (f). Pub. L. 94–421 redesignated former subsec. (b) as (f).Enacted provision · exact public law section
(a) Section 364] of title 39, United States Code, is amended to read as follows: “§ 3641. Temporary changes in rates and classes “(a) In any case in which the Postal Rate Commission fails to transmit a recommended decision on a change in rates of postage or in fees for postal services to the Governors in accordance with section Supra. 3624(c) of this title, the Postal Service may establish temporary changes in rates of postage and in fees for postal services in accordance with the proposed changes under consideration by the Commission. Publication in Federal Register. Such temporary changes may take effect upon such date as the Postal Service may determine, except that such temporary changes may take effect only after 10 days’ notice in the Federal Register. “(b) Any temporary rate or fee established by the Postal Service under subsection (a) of this section shall be in accordance with the policies of this title and shall not exceed such amount as may be necessary for sufficient revenues to assure that the total estimated income, including appropriations, of the Postal Service shall, to the extent practicable, be equal to the total estimated costs of the Postal Service. “(c) Notwithstanding the provisions of subsection (b) of this section, the Postal Service may not establish any temporary rate for a class of mail or any temporary fee for a postal service which is more than the permanent rate or lee requested for such class or postal service by the Postal Service under section 3622 of this title. “(d) Any temporary change in rates of postage or in fees for postal services made by the Postal Service mid er tins section shall remain in effect no longer than 150 days after the date on which the Commis-sion transmits its recommended decision to the Governors under section 3624(d) of this title, unless such temporary change is terminated 39 USC 3624. by the Governors before the expiration of such period. “(e) If the Postal Rate Commission does not transmit to the Publication in Federal Register. Governors within 90 days after the Postal Service has submitted, or within 30 days after the Postal Service has resubmitted, to the Commission a request for a recommended decision on a change in the mail classification schedule (after such schedule is established under-section 3623 of this title), the Postal Service, upon 10 days’ notice in the 39 USC 3623. Federal Register, may place into effect temporary changes in the mail classification schedule in accordance with proposed changes under consideration by the Commission. Any temporary change shall Ire effective for a period ending not later than 30 days after the Commission has transmitted its recommended decision to the Governors. “(f) If, under section 3628 of this title, a court orders a matter 39 USC 3628. returned to the Commission for further consideration, the Postal Service, with the consent of the Commission, may place into effect temporary changes in rates of postage, and fees for postal services, or in the mail classification schedule.”.Pub. L. 109–435 title II § 203 · 120 Stat. 3198
Amended · 39 U.S.C. § 3641
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
Source evidence
Code amendment note
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.Enacted provision · exact public law section
SEC. 203. PROVISIONS RELATING TO EXPERIMENTAL AND NEW PRODUCTS. Subchapter III of chapter 36 of title 39, United States Code, is amended to read as follows: “SUBCHAPTER III— PROVISIONS RELATING TO EXPERIMENTAL AND NEW PRODUCTS “§ 3641. Market tests of experimental products “(a) Authority.— “(1) In general.— The Postal Service may conduct market tests of experimental products in accordance with this section. Deadline. Federal Register, publication. “(2) Provisions waived.— A product shall not, while it is being tested under this section, be subject to the requirements of sections 3622, 3633, or 3642, or regulations promulgated under those sections. “(b) Conditions.— A product may not be tested under this section unless it satisfies each of the following: “(1) Significantly different product.— The product is, from the viewpoint of the mail users, significantly different from all products offered by the Postal Service within the 2-year period preceding the start of the test. “(2) Market disruption.— The introduction or continued offering of the product will not create an unfair or otherwise inappropriate competitive advantage for the Postal Service or any mailer, particularly in regard to small business concerns (as defined under subsection (h)). “(3) Correct categorization.— The Postal Service identifies the product, for the purpose of a test under this section, as either market-dominant or competitive, consistent with the criteria under section 3642(b)(1). Costs and revenues attributable to a product identified as competitive shall be included in any determination under section 3633(3) (relating to provisions applicable to competitive products collectively). Any test that solely affects products currently classified as competitive, or which provides services ancillary to only competitive products, shall be presumed to be in the competitive product category without regard to whether a similar ancillary product exists for market-dominant products. “(c) Notice.— “(1) In general.— Deadline. Federal Register, publication. At least 30 days before initiating a market test under this section, the Postal Service shall file with the Postal Regulatory Commission and publish in the Federal Register a notice— “(A) setting out the basis for the Postal Service’s determination that the market test is covered by this section; and “(B) describing the nature and scope of the market test. “(2) Safeguards.— For a competitive experimental product, the provisions of section 504(g) shall be available with respect to any information required to be filed under paragraph (1) to the same extent and in the same manner as in the case of any matter described in section 504(g)(1). Nothing in paragraph (1) shall be considered to permit or require the publication of any information as to which confidential treatment is accorded under the preceding sentence (subject to the same exception as set forth in section 504(g)(3)). “(d) Duration.— “(1) In general.— A market test of a product under this section may be conducted over a period of not to exceed 24 months. “(2) Extension authority.— If necessary in order to determine the feasibility or desirability of a product being tested under this section, the Postal Regulatory Commission may, upon written application of the Postal Service (filed not later than 60 days before the date as of which the testing of such product would otherwise be scheduled to terminate under paragraph (1)), extend the testing of such product for not to exceed an additional 12 months. “(e) Dollar-Amount Limitation.— “(1) In general.— A product may only be tested under this section if the total revenues that are anticipated, or in fact received, by the Postal Service from such product do not exceed $10,000,000 in any year, subject to paragraph (2) and subsection (g). In carrying out the preceding sentence, the Postal Regulatory Commission may limit the amount of revenues the Postal Service may obtain from any particular geographic market as necessary to prevent market disruption (as defined under subsection (b)(2)). “(2) Exemption authority.— The Postal Regulatory Commission may, upon written application of the Postal Service, exempt the market test from the limit in paragraph (1) if the total revenues that are anticipated, or in fact received, by the Postal Service from such product do not exceed $50,000,000 in any year, subject to subsection (g). In reviewing an application under this paragraph, the Postal Regulatory Commission shall approve such application if it determines that— “(A) the product is likely to benefit the public and meet an expected demand; “(B) the product is likely to contribute to the financial stability of the Postal Service; and “(C) the product is not likely to result in unfair or otherwise inappropriate competition. “(f) Cancellation.— If the Postal Regulatory Commission at any time determines that a market test under this section fails, with respect to any particular product, to meet 1 or more of the requirements of this section, it may order the cancellation of the test involved or take such other action as it considers appropriate. A determination under this subsection shall be made in accordance with such procedures as the Commission shall by regulation prescribe. “(g) Adjustment for Inflation.— For purposes of each year following the year in which occurs the deadline for the Postal Service’s first report to the Postal Regulatory Commission under section 3652(a), each dollar amount contained in this section shall be adjusted by the change in the Consumer Price Index for such year (as determined under regulations of the Commission). “(h) Definition of a Small Business Concern.— The criteria used in defining small business concerns or otherwise categorizing business concerns as small business concerns shall, for purposes of this section, be established by the Postal Regulatory Commission in conformance with the requirements of section 3 of the Small Business Act. “(i) Effective Date.— Market tests under this subchapter may be conducted in any year beginning with the first year in which occurs the deadline for the Postal Service’s first report to the Postal Regulatory Commission under section 3652(a). “§ 3642. New products and transfers of products between the market-dominant and competitive 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 products under section 3621 and the list of competitive 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 Postal Regulatory Commission under subsection (a) shall be made in accordance with the following criteria: “(1) The market-dominant category of products shall consist of each product in the sale of which the Postal Service exercises sufficient market power that it can effectively set the price of such product substantially above costs, raise prices significantly, decrease quality, 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 postal monopoly.— A product covered by the postal monopoly shall not be subject to transfer under this section from the market-dominant category of mail. For purposes of the preceding sentence, the term ‘product covered by the postal monopoly’ means any product the conveyance or transmission of which is reserved 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 enterprises 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 proposed action; and “(C) the likely impact of the proposed action on small business concerns (within the meaning of section 3641(h)). “(c) Transfers of Subclasses and Other Subordinate 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 service involved (without regard to satisfaction of minimum quantity requirements standing alone). “(d) Notification and Publication Requirements.— “(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 Register a notice setting out the basis for its determination that the product satisfies the criteria 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 section 3633. The provisions of section 504(g) shall be available with respect to any information required to be filed. “(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. Federal Register, publication. The revised lists shall indicate how and when any previous lists (including the lists under sections 3621 and 3631) are superseded, and shall be published in the Federal Register. “(e) Prohibition.— Except as provided in section 3641, no product that involves the physical delivery of letters, printed matter, or packages may be offered by the Postal Service unless it has been assigned to the market-dominant or competitive category of mail (as appropriate) either— “(1) under this subchapter; or “(2) by or under any other provision of law.” .
9 of 10 references resolved to an enrolled provision · 1 partial
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, Commerce and Trade.
Amendments1976–2006 · 2 rounds
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 limiting 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 increase 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 decisions on change in the rates of postage or fees for postal service.
Subsec. (f). Pub. L. 94–421 redesignated former subsec. (b) as (f).
Statutory Notes and Related Subsidiaries
Effective Date
Section effective , 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), , 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 recommended decision of the Postal Rate Commission [now Postal Regulatory Commission] relating to proposed changes in rates of postage and in fees for postal services requested on , 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), , 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 [], shall apply to any temporary rate or fee established by the Postal Service pursuant to its request to the Postal Rate Commission [now Postal Regulatory Commission], dated , for a recommended decision, bearing Docket Number R76–1.”
Credits
1970–2006 · 3 acts
- 1970Pub. L. 91–375, , 84 Stat. 763
- 1976Pub. L. 94–421, § 6(a), , 90 Stat. 1306
- 2006Pub. L. 109–435, title II, § 203, , 120 Stat. 3207.
Show as published
(Pub. L. 91–375, , 84 Stat. 763; Pub. L. 94–421, § 6(a), , 90 Stat. 1306; Pub. L. 109–435, title II, § 203, , 120 Stat. 3207.)