House, Senate Pass Postal-Reform Legislation

he House and Senate passed historic postal reform legislation in the final hours of the 109th Congress after key negotiators brokered an agreement to modernize the U.S. Postal Service for the 21st Century, according to the office of Sen Susan Collins (R-Maine).

The measure was passed by the Senate early Saturday and now goes to President Bush, who is expected to sign the bill, the Associated Press reported.

The bill also changes how rates are revised and gives the post office more flexibility to offer discounts and make changes, provided it stays under the inflation rate, AP said.

The legislation, the first major overhaul of the USPS since 1970, will help stabilize mail volume and stamp prices, said Collins, one of the negotiators of the bill.

The Postal Accountability and Enhancement Act would force the USPS to concentrate on what it does best: processing and delivering mail. The law would dramatically rethink the way the Postal Service prices its products by giving it the same ability any other business has to change prices whenever it needs to do so.

To protect businesses and mailers from sudden and dramatic price hikes, the legislation would ensure that price increases be kept below an inflation-based ceiling, Collins' office said in a statement.