,i #aacth ,,congress #b;d ,session ,h4 ,r4 #dagd ,,in ,,the ,,house ,,of ,,representatives ,march #f1 #bjad ,mr4 ,issa 7for himself and ,mr4 ,farenthold7 introduced the following bill2 which was referred to the ,committee on ,oversight and ,government ,reform ,a ,,bill ,to amend title #ci1 ,united ,states ,code1 to modernize and improve ,alaska bypass freight mail transportation4 #a4 ,short title ,this ,act may be cited as the ,alaska ,bypass ,modernization ,act of #bjad4 #b4 ,alaska bypass mail transportation 7a7 ,in general ,section #edjb of title #ci1 ,united ,states ,code1 is amended-- 7#a7 in the section heading by striking ,contracts for transportation of mail by air and inserting ,alaska bypass mail transportation2 7#b7 in subsection 7a7-- 7,a7 by striking paragraphs 7#b71 7#g71 and 7#i72 and 7,b7 by redesignating paragraphs 7#c71 7#d71 7#e71 7#f71 7#h71 7#aj71 7#aa71 7#ab71 7#ac71 7#ad71 7#ae71 7#af71 7#ag71 7#ah71 7#ai71 7#bj71 7#ba71 7#bb71 7#bc71 7#bd71 and 7#be7 as paragraphs 7#b7 through 7#bb71 respectively2 7#c7 by striking subsections 7b7 through 7f72 7#d7 by redesignating subsections 7g7 through 7s7 as subsections 7c7 through 7o71 respectively2 7#e7 by inserting after subsection 7a7 the following3 7b7 ,efficient transport of ,alaska bypass mail ,in selecting a carrier of nonpriority bypass mail to a point in the ,state of ,alaska1 the ,postal ,service shall-- 7#a7 ensure a minimum of #a scheduled flight per week to each nonpriority bypass mail destination with guaranteed capacity for nonpriority bypass mail1 subject to the condition that weather conditions1 lack of available service1 or other extraordinary circumstances do not interfere with the fulfillment of this minimum requirement2 and 7#b7 ensure that any flight that transports nonpriority bypass mail to a nonpriority bypass mail destination and is in addition to the minimum flights required under paragraph 7#a7-- 7,a7 is necessary to the delivery of nonpriority bypass mail2 and 7,b7 maximizes the cost efficiency to the ,postal ,service4 2 7#f7 in subsection 7c77#b7 7as redesignated by paragraph 7#d7 of this subsection7-- 7,a7 in subparagraph 7,e7 by striking 7,e77i7 and all that follows through the end of clause 7i7 and inserting the following3 7,e7 7i7 may offer tender of nonpriority mainline bypass mail at mainline rates to a bush carrier operating from an acceptance point to a hub point in the ,state of ,alaska1 in addition to the terms of subparagraph 7,c72 and 2 7,b7 by striking subparagraph 7,f7 and inserting the following3 7,f7 shall offer equitable tender of nonpriority bypass mail in proportion to passenger and nonmail freight pools described in this section between qualified passenger and nonmail freight carriers on a route from an acceptance point to a bush destination in the ,state of ,alaska at a composite rate if-- 7i7 7,i7 for a passenger carrier1 the carrier receiving the composite rate provided passenger service in accordance with the requirements of subsection 7d77#b72 or 7,,ii7 for a nonmail freight carrier1 the carrier receiving the composite rate provided at least #be percent of the nonmail freight service for the #ab months immediately preceding the date on which the carrier seeks tender of such mail2 7ii7 the carrier qualifies under subsection 7d7 to be tendered nonpriority bypass mail out of the hub point being bypassed2 7iii7 the tender of such mail will not decrease efficiency of delivery of nonpriority bypass mail service into or out of the hub point being bypassed2 and 7iv7 such tender will result in reduced payments to the carrier by the ,postal ,service over flying the entire route2 and 2 7,c7 in subparagraph 7,g7 by striking notwithstanding subparagraph 7,f712 and 7,d7 in the matter following subparagraph 7,g7 by striking subparagraph 7,g7 and inserting subparagraphs 7,f7 and 7,g72 and 7#g7 in subparagraph 7c77#d77;,a7 7as redesignated by paragraph 7#d7 of this subsection7 by striking subparagraph 7,b7 and inserting subparagraph 7,b71 paragraph 7#b77;,e714 7b7 ,clerical amendment ,the table of sections for chapter #ed of such title is amended by striking the item relating to section #edjb and inserting the following3 #edjb4 ,alaska bypass mail transportation4 4 7c7 ,conforming amendments ,section #edjb of such title is amended-- 7#a7 in subsection 7a7-- 7,a7 in paragraph 7#d7 by striking subsection 7g77#a77;,a77iv77,i7 and inserting subsection 7c77#a77;,a77iv77,i72 7,b7 in paragraph 7#e7 by striking subsection 7g77#a77;,a77iv77,i7 and inserting subsection 7c77#a77;,a77iv77,i72 7,c7 in paragraph 7#ac7 by striking subsection 7g77#a77;,a77iv77,,ii7 and inserting subsection 7c77#a77;,a77iv77,,ii72 and 7,d7 in paragraph 7#ae77;,a7 by striking subsection 7g77#a77;,a77iv7 and inserting subsection 7c77#a77;,a77iv72 7#b7 in subsection 7c7 7as redesignated by subsection 7a77#d7 of this section7-- 7,a7 in paragraph 7#b7-- 7i7 in subparagraph 7,c77ii7 by striking subsection 7h77#e7 and inserting subsection 7d77#e72 and 7ii7 in subparagraph 7,d7-- 7,i7 in clause 7i77,,ii7 by striking subsection 7h77#e7 and inserting subsection 7d77#e72 and 7,,ii7 in clause 7ii77,,ii7 by striking subsection 7i77#f7 and inserting subsection 7e77#f72 and 7,b7 in paragraph 7#e7-- 7i7 in subparagraph 7,a77i7 by striking subsection 7g77#a77;,a77iv77,,ii7 and inserting paragraph 7#a77;,a77iv77,,ii72 7ii7 in subparagraph 7,b77iii7 by striking subsection 7h77#e7 and inserting subsection 7d77#e72 7iii7 in subparagraph 7,c7 by striking subsection 7h77#b77;,b7 and inserting subsection 7d77#b77;,b72 and 7iv7 in subparagraph 7,d7 by striking subsection 7h77#e7 and inserting subsection 7d77#e72 7#c7 subsection 7d7 7as redesignated by subsection 7a77#d7 of this section7-- 7,a7 in paragraph 7#a77;,a7 by striking subsection 7g77#a7 and inserting subsection 7c77#a72 7,b7 in paragraph 7#c7-- 7i7 in subparagraph 7,a7 by striking subsection 7g77#a7 and inserting subsection 7c77#a72 and 7ii7 in subparagraph 7,b77i77,,ii7 by striking subsection 7i77#a7 and inserting subsection 7e77#a72 7,c7 in paragraph 7#e77;,a7 by striking subsection 7k7 and inserting subsection 7g72 and 7,d7 in paragraph 7#f7 by striking subsection 7k7 each place it appears and inserting subsection 7g72 7#d7 in subsection 7e7 7as redesignated by subsection 7a77#d7 of this section7-- 7,a7 in paragraph 7#c7 by striking subsection 7g77#a7 and inserting subsection 7c77#a72 7,b7 in paragraph 7#d7 by striking subsection 7h7 and inserting subsection 7d72 and 7,c7 in paragraph 7#f7 by striking subsection 7k7 and inserting subsection 7g72 7#e7 in subsection 7f7 7as redesignated by subsection 7a77#d7 of this section7-- 7,a7 in paragraph 7#a7-- 7i7 by striking subsection 7g77#a7 and inserting subsection 7c77#a72 and 7ii7 by striking subsection 7h7 or 7i7 and inserting subsection 7d7 or 7e72 7,b7 in paragraph 7#b7-- 7i7 in the matter preceding subparagraph 7,a7 by striking subsections 7h7 and 7i7 and inserting subsections 7d7 and 7e72 7ii7 in subparagraph 7,a7 by striking subsection 7h7 and inserting subsection 7d72 and 7iii7 in subparagraph 7,b7 by striking subsection 7i7 and inserting subsection 7e72 and 7,c7 in paragraph 7#c7-- 7i7 in subparagraph 7,b7-- 7,i7 in clause 7i7 by striking subsection 7g77#a7 and inserting subsection 7c77#a72 and 7,,ii7 in clause 7ii7 by striking subsection 7h7 or 7i7 and inserting subsection 7d7 or 7e72 and 7ii7 in subparagraph 7,c7 by striking subsection 7h7 or 7i7 and inserting subsection 7d7 or 7e72 7#f7 in subsection 7h7 7as redesignated by subsection 7a77#d7 of this section7 by striking subsections 7h7 and 7i7 and inserting subsection 7d7 or 7e72 7#g7 in subsection 7i7 7as redesignated by subsection 7a77#d7 of this section7-- 7,a7 in paragraph 7#a7-- 7i7 by striking subsections 7h7 and 7i7 and inserting subsections 7d7 and 7e72 and 7ii7 by striking subsection 7h7 and inserting subsection 7d72 and 7,b7 in paragraph 7#b7-- 7i7 in the matter preceding subparagraph 7,a7 by striking subsection 7i7 and inserting subsection 7e72 7ii7 in subparagraph 7,a7 by striking subsections 7h7 and 7i7 and inserting subsections 7d7 and 7e72 and 7iii7 in subparagraph 7,b7-- 7,i7 by striking subsection 7h7 and inserting subsection 7d72 and 7,,ii7 by striking subsection 7i7 and inserting subsection 7e72 7#h7 in subsection 7l7 7as redesignated by subsection 7a77#d7 of this section7-- 7,a7 in paragraph 7#a7 by striking subsection 7g77#b71 7h71 or 7i7 and inserting subsection 7c77#b71 7d71 or 7e72 7,b7 in paragraph 7#b7 by striking subsection 7h7 or 7i7 and inserting subsection 7d7 or 7e72 and 7,c7 in paragraph 7#c7-- 7i7 by striking subsection 7g77#a77;,a77iv71 7g77#b77;,e71 7g77#d71 or 7g77#e7 and inserting subsection 7c77#a77;,a77iv71 7c77#b77;,e71 7c77#d71 or 7c77#e72 and 7ii7 by striking subsection 7h7 and inserting subsection 7d72 7#i7 in subsection 7n7 7as redesignated by subsection 7a77#d7 of this section7 by striking subsection 7g77#a7 and inserting subsection 7c77#a72 and 7#aj7 in subsection 7o7 7as redesignated by subsection 7a77#d7 of this section7 by striking subsections 7b71 7c7 and 7d7 and inserting subsections 7b71 7c71 and 7d7 of section #edjd4 #c4 ,contracts for foreign and interstate air transportation 7a7 ,in general ,at the end of chapter #ed of title #ci1 ,united ,states ,code1 add the following3 #edjd4 ,contracts for foreign and interstate air transportation 7a7 ,definitions ,in this section-- 7#a7 the terms air carrier1 foreign air carrier1 foreign air transportation1 and interstate air transportation have the meanings given such terms in section #djajb7;a7 of title #di2 7#b7 the term certificated air carrier means an air carrier that holds a certificate of public convenience and necessity issued under section #daajb7;a7 of title #di2 7#c7 the term code-share relationship means a relationship pursuant to which any certificated air carrier or foreign air carrier's designation code is used to identify a flight operated by another air carrier or foreign air carrier2 and 7#d7 the term ,secretary means the ,secretary of ,transportation4 7b7 ,international mail 7#a7 ,in general 7,a7 ,use of certificated air carriers2 code-share relationships ,except as otherwise provided in this subsection1 the ,postal ,service may contract for the transportation of mail by aircraft between any of the points in foreign air transportation only with certificated air carriers4 ,a contract may be awarded to a certificated air carrier to transport mail by air between any of the points in foreign air transportation that the ,secretary has authorized the carrier to serve either directly or through a code-share relationship with #a or more foreign air carriers4 7,b7 ,use of foreign air carriers ,if the ,postal ,service has sought offers or proposals from certificated air carriers to transport mail in foreign air transportation between points1 or pairs of points within a geographic region or regions1 and has not received offers or proposals that meet ,postal ,service requirements at a fair and reasonable price from at least #b such carriers1 the ,postal ,service may seek offers or proposals from foreign air carriers4 ,where service in foreign air transportation meeting the ,postal ,service's requirements is unavailable at a fair and reasonable price from at least #b certificated air carriers1 either directly or through a code-share relationship with #a or more foreign air carriers1 the ,postal ,service may contract with foreign air carriers to provide the service sought if1 when the ,postal ,service seeks offers or proposals from foreign air carriers1 it also seeks an offer or proposal to provide that service from any certificated air carrier providing service between those points1 or pairs of points within a geographic region or regions1 on the same terms and conditions that are being sought from foreign air carriers4 7,c7 ,methodology for determining fair and reasonable prices ,for purposes of this subsection1 the ,postal ,service shall use a methodology for determining fair and reasonable prices for the ,postal ,service designated region or regions developed in consultation with1 and with the concurrence of1 certificated air carriers representing at least #ea percent of available ton miles in the markets of interest4 7,d7 ,ceiling prices ,for purposes of this subsection1 ceiling prices determined pursuant to the methodology used under subparagraph 7,c7 shall be presumed to be fair and reasonable if they do not exceed the ceiling prices derived from-- 7i7 a weighted average based on market rate data furnished by the ,international ,air ,transport ,association or a subsidiary unit thereof2 or 7ii7 if such data are not available from those sources1 such other neutral1 regularly updated set of weighted average market rates as the ,postal ,service1 with the concurrence of certificated air carriers representing at least #ea percent of available ton miles in the markets of interest1 may designate4 7,e7 ,situations in which concurrence cannot be attained ,if1 for purposes of subparagraph 7,d77ii71 concurrence cannot be attained1 the most recently available market rate data described in this paragraph shall continue to apply for the relevant market or markets4 7#b7 ,contract process ,the ,postal ,service shall contract for foreign air transportation as set forth in paragraph 7#a7 through an open procurement process that will provide-- 7,a7 potential offerors with timely notice of business opportunities in sufficient detail to allow them to make a proposal2 7,b7 requirements1 proposed terms and conditions1 and evaluation criteria to potential offerors2 and 7,c7 an opportunity for unsuccessful offerors to receive prompt feedback upon request4 7#c7 ,emergency or unanticipated conditions2 inadequate lift space ,the ,postal ,service may enter into contracts to transport mail by air in foreign air transportation with a certificated air carrier or a foreign air carrier without complying with the requirements of paragraph 7#a7 or 7#b7 if-- 7,a7 emergency or unanticipated conditions exist that make it impractical for the ,postal ,service to comply with such requirements2 or 7,b7 the ,postal ,service's demand for lift exceeds the space available to the ,postal ,service under existing contracts and-- 7i7 there is insufficient time available to seek additional lift using procedures that comply with those requirements without compromising the ,postal ,service's service commitments to its own customers2 and 7ii7 the ,postal ,service first offers any certificated air carrier holding a contract to carry mail between the relevant points the opportunity to carry such excess volumes under the terms of its existing contract4 7c7 ,good-,faith effort required ,the ,postal ,service and potential offerors shall put a good-faith effort into resolving disputes concerning the award of contracts made under subsection 7b74 7d7 ,special circumstances ,if the ,postal ,service determines that service by certificated air carriers or combination of air carriers between any pair or pairs of points in foreign air transportation is not adequate for its purposes1 the ,postal ,service may contract1 without advertising for bids1 in such manner and under such terms and conditions as the ,postal ,service may deem appropriate1 with any air taxi operator or combination thereof for such air transportation service4 ,contracts made under this subsection may be renewed at the existing rate by mutual agreement between the holder and the ,postal ,service4 ,the ,postal ,service1 with the consent of the air taxi operator1 may adjust the compensation under such contracts for increased or decreased costs occasioned by changed conditions occurring during the contract term4 ,the ,postal ,service shall cancel such a contract when the ,secretary authorizes an additional certificated carrier or carriers to provide service between any pair or pairs of points covered by the contract1 and such carrier or carriers inaugurate schedules adequate for its purposes4 7e7 ,transportation of mail by aircraft in interstate air transportation 7#a7 ,determination of rates and contract terms ,the ,postal ,service may determine rates and contract with any air carrier for the transportation of mail by aircraft in interstate air transportation either through negotiations or competitive bidding4 7#b7 ,mail shipments of live animals 7,a7 ,in general ,in the exercise of its authority under paragraph 7#a71 the ,postal ,service may require any air carrier to accept mail shipments of day-old poultry1 honeybees1 and such other live animals as postal regulations allow to be transmitted as mail matter4 ,the authority of the ,postal ,service under this subparagraph shall not apply in the case of any air carrier who commonly and regularly refuses to accept any live animals as cargo4 7,b7 ,surcharges ,notwithstanding any other provision of law1 the ,postal ,service is authorized to assess1 as postage to be paid by the mailers of any shipments covered by subparagraph 7,a71 a reasonable surcharge that the ,postal ,service determines in its discretion to be adequate to compensate air carriers for any necessary additional expense incurred in handling such shipments4 7f7 ,applicability to points within ,alaska ,the authority of the ,secretary and the ,postal ,service under subsections 7b71 7c71 and 7d71 as in effect on ,september #cj1 #bjjh1 shall also apply1 and the authority of the ,postal ,service under subsection 7e7 shall not apply1 to the transportation of mail by aircraft between any #b points both of which are within the ,state of ,alaska and between which the air carrier is authorized by the ,secretary to engage in the transportation of mail4 4 7b7 ,clerical amendment ,the table of sections for chapter #ed of such title is amended by adding at the end the following3 #edjd4 ,contracts for foreign and interstate air transportation4 4 #d4 ,reduction of ,alaska bypass mail subsidy 7a7 ,in general ,chapter #ed of title #ci1 ,united ,states ,code 7as amended by this ,act71 is further amended by adding at the end the following3 #edje4 ,reduction of ,alaska bypass mail subsidy 7a7 ,competitive product classification 7#a7 ,in general ,except as provided in this section1 ,alaska bypass mail service under section #edjb shall be treated as a separate competitive product for all purposes4 7#b7 ,transfer prohibited ,no part of ,alaska bypass mail service may be transferred to the market-dominant category of mail under section #cfdb4 7#c7 ,limitations ,alaska bypass mail service shall not be treated as a competitive product for purposes of the implementation of sections #cfcc7;a7 and #cfcd4 7b7 ,minimum cost coverage 7#a7 ,in general ,the ,postal ,service shall establish and maintain rates and fees for matter sent by ,alaska bypass mail service-- 7,a7 for fiscal year #bjae1 that cover at least #cj percent of the costs attributable to ,alaska bypass mail service in that fiscal year2 7,b7 for fiscal year #bjaf1 that cover at least #cd percent of the costs attributable to ,alaska bypass mail service in that fiscal year2 7,c7 for fiscal year #bjag1 that cover at least #ch percent of the costs attributable to ,alaska bypass mail service in that fiscal year2 7,d7 for fiscal year #bjah1 that cover at least #db percent of the costs attributable to ,alaska bypass mail service in that fiscal year2 7,e7 for fiscal year #bjai1 that cover at least #df percent of the costs attributable to ,alaska bypass mail service in that fiscal year2 and 7,f7 for fiscal year #bjbj1 and for each fiscal year thereafter1 that cover at least #ej percent of the costs attributable to ,alaska bypass mail service in that fiscal year4 7#b7 ,costs attributable ,the costs attributable to ,alaska bypass mail service for a fiscal year shall include all the direct and indirect costs of ,alaska bypass mail service during that fiscal year that are attributable to that service through reliably identified causal relationships4 7#c7 ,institutional costs ,costs that can be attributed to ,alaska bypass mail service may not be classified as institutional costs of the ,postal ,service4 7#d7 ,rate increase limitation ,for fiscal years #bjad through #bjbj1 no rate for any type of ,alaska bypass mail service may be increased in a fiscal year by more than the maximum permitted rate increase for market dominant products plus an additional #a percent4 7c7 ,compliance 7#a7 ,annual review ,at least once each fiscal year1 the ,postal ,regulatory ,commission shall determine whether the ,postal ,service is in compliance with the requirements under subsection 7b74 7#b7 ,remedial actions ,if1 under paragraph 7#a71 the ,postal ,regulatory ,commission determines that the ,postal ,service has not complied with the requirements under subsection 7b7 with respect to a fiscal year1 the ,commission shall prescribe1 not later than #fj days after making such determination1 actions to ensure-- 7,a7 the establishment and maintenance of rates and fees for ,alaska bypass mail service that recover any costs required to have been covered for such fiscal year under subsection 7b71 but that were not covered1 by the date that is not later than the last day of the fiscal year that follows such fiscal year2 and 7,b7 compliance with the requirements under subsection 7b7 in subsequent fiscal years4 7#c7 ,limitation ,the ,postal ,regulatory ,commission may not order the ,postal ,service to discontinue ,alaska bypass mail service4 7#d7 ,regulations ,not later than #ij days after the date of enactment of this subsection1 the ,postal ,regulatory ,commission shall issue regulations to implement this subsection4 4 7b7 ,clerical amendment ,the table of sections for chapter #ed of such title 7as amended by this ,act7 is further amended by adding at the end the following3 #edje4 ,reduction of ,alaska bypass mail subsidy4 4