Postal Regulatory Commission

The United States Postal Regulatory Commission (or PRC) is an independent regulatory agency created by the Postal Reorganization Act of 1970. Like the Postal Service, it is legally referred to as an independent establishment of the executive branch.

History

Origins: 1970-2006

President Richard Nixon signed the Postal Reorganization Act of 1970 into law following the U.S. postal strike of 1970.

The Postal Reorganization Act of 1970 created the PRC—originally named the Postal Rate Commission—to set the rates for different classes of mail by holding hearings on rates proposed by the USPS.

From 1970 through 2006, the PRC also had oversight authority over the USPS in areas besides rates changes. Specifically, that additional oversight consisted of conducting public, on-the-record hearings concerning proposed mail classification or major service changes and of recommending actions to be taken by the postal Governors.^[1]

Changes under the Postal Accountability and Enhancement Act of 2006

President George W. Bush signed the PAEA into law in December of 2006, giving the PRC its current form.

The Postal Accountability and Enhancement Act of 2006 (PAEA) - H.R. 6407^[2][3] enacted on December 20, 2006, made several changes to the PRC. Besides giving the body its current name, the PAEA significantly strengthened the Commission's authority to serve as a counterbalance to new flexibility granted to the Postal Service in setting postal rates.

The Act requires the Commission to develop and maintain regulations for a modern system of rate regulation, consult with the Postal Service on delivery service standards and performance measures, consult with the Department of State on international postal policies, prevent cross-subsidization or other anticompetitive postal practices, promote transparency and accountability, and adjudicate complaints.

The law also assigns new and continuing oversight responsibilities to the PRC, including annual determinations of USPS compliance with applicable laws, development of accounting practices and procedures for the Postal Service, review of the Universal Service requirement, and assurance of transparency through periodic reports. New enforcement tools given to the PRC include subpoena power, authority to direct the Postal Service to adjust rates and to take other remedial actions, and levying fines in cases of deliberate noncompliance with applicable postal laws.

The PAEA stipulates that the USPS is to take any surplus at the end of a fiscal year, and put that amount into the Postal Service Retiree Health Benefits Fund to prepay for employees retirement costing the USPS a total of 500 billion dollars between 2007 and 2015. This requirement also explicitly stated the USPS it stop using its savings to reduce postal debt, which was stipulated in Postal Civil Service Retirement System Funding Reform Act of 2003^[4]. This is in addition to deductions from pay for federal contribution to social services^[5] . This pre-funding method is unique to the USPS In June of 2011, the USPS had to suspend its weekly payment of 115 million into the fund because it had reached 8 billion dollars in debt and the retirement plan had a surplus of 6.9 billion dollars^[6]. The schedule rate of payment has been changed and the USPS is currently expected to make a payment of 5.6 billion no later than September 30, 2012^[7] .

Composition

The PRC is composed of five Commissioners—each of whom is appointed to a six-year term of office by the President and confirmed by the Senate, similar to many other high-level Executive Branch office holders.^[8] As with postal Governors, PRC commissioners are permitted to serve for one additional "holdover" year beyond the end of their term if a replacement has not been nominated and confirmed. The President designates one Commissioner as Chairman of the Commission. The Commissioners together designate one of their number as a Vice-Chairman for a one-year term.

The current members are: Term expires: Chairman Ruth Y. Goldway (D) Nov, 22, 2014 Vice Chairman Mark Acton (R) Oct, 14, 2010 Commissioner Nanci E. Langley (D) Nov, 22, 2012 Commissioner Tony Hammond (R) Oct, 14, 2010

Mr. Richard G. Taub has been nominated for the 5th seat, but is still awaiting Senate confirmation.

The PRC is organized into five operating offices: Accountability and Compliance, General Counsel, Public Affairs and Government Relations, Secretary, and Inspector General.^[9]

Office of Accountability & Compliance

The Office of Accountability & Compliance has the responsibility to formulate and technically analyze PRC policy recommendations—both domestic and foreign. Some of the domestic policy analyses of this office include USPS rate changes, new product classification, post office closings, et cetera. This office also evaluates various business aspects of the Postal Service, including accounting records and financial reports, based on their accuracy, conformance to PRC standards, and similar factors.

This office also assists the PRC in creating its the annual report to the President and Congress.

Office of General Counsel

The Office of General Counsel assists the PRC with legal issues involving its responsibilities. This office also serves as defense counsel for the PRC when it is the defendant in court and oversees complaints received by the PRC.

Office of Public Affairs & Government Relations

The Office of Public Affairs & Government Relations manages all communications of the PRC, whether with the USPS, the federal government, the media, or the general populace.

Office of Secretary & Administration

The Office of Secretary & Administration records and preserves PRC actions and documents. It also helps to manage the business-like aspects of the PRC.

Office of Inspector General

The Office of Inspector General is a watchdog office that seeks out fraud and abuse in the PRC programs and operations, auditing cases of fraud and abuses when necessary.

See also

• Independent agencies of the United States government
• United States Postal Service
• Board of Governors of the United States Postal Service

Notes

External links

• Postal Regulatory Commission web site
• Postal Accountability and Enhancement Act of 2006