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Bill 790

                    Current Status

Bill Number:                      790
Type of Legislation:              Concurrent Resolution CR
Introducing Body:                 Senate
Introduced Date:                  19990505
Primary Sponsor:                  Setzler
All Sponsors:                     Setzler and Bauer
Drafted Document Number:          l:\council\bills\nbd\11364jm99.doc
Residing Body:                    Senate
Current Committee:                Finance Committee 06 SF
Subject:                          Postal Rate Commission, requests to 
                                  strengthen oversight power of services, 
                                  Revenue Department, Federal


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
Senate  19990505  Introduced, referred to Committee      06 SF


                             Versions of This Bill

MEMORIALIZING CONGRESS TO PASS LEGISLATION TO STRENGTHEN THE OVERSIGHT POWER AND THE AUTHORITY OF THE POSTAL RATE COMMISSION, PARTICULARLY WITH RESPECT TO THE UNITED STATES POSTAL SERVICE, AND DIRECTING THE SOUTH CAROLINA DEPARTMENT OF REVENUE TO UNDERTAKE AN ANALYSIS TO QUANTIFY THE IMPACT OF LOST TAXES AND FEES NOT BEING COLLECTED BY SOUTH CAROLINA STATE AND LOCAL AGENCIES BECAUSE OF THE POSTAL SERVICE'S SPECIAL STATUS AND TO REPORT THE FINDINGS OF THIS ANALYSIS TO THE GENERAL ASSEMBLY ANNUALLY.

Whereas, the United States Postal Service holds a monopoly on first-class mail and certain bulk mail services and generates annual multi-million dollar surpluses from its services; and

Whereas, the United States Postal Service has in recent years expanded its activities beyond its core mission of universal mail service to include many competitive and nonpostal related business products and services, such as consumer goods, telephone calling cards, and cellular towers in direct competition with South Carolina private sector enterprises; and

Whereas, the United States Postal Service has used surplus revenues from universal mail delivery (first-class postage) to expand into these competitive and nonpostal activities with no evidence that these activities benefit the citizens of South Carolina by improving regular mail service; and

Whereas, the United States Postal Service, an agency of the federal government, enjoys monopoly advantages in the marketplace over private sector enterprises with its ability to maintain lower prices from competitive products (due to the multi-million dollar surpluses generated from first-class postage) and its ability to set the rates of private sector competitors; and

Whereas, the United States Postal Service, an agency of the federal government, enjoys many marketplace advantages not available to private sector enterprises, including exemption from state and local taxes, parking fees, local zoning ordinances, vehicle use taxes, vehicle licensing fees, and other local government regulations, which deprive South Carolina state and local governments of needed revenue and fees to offset the effect of the United States Postal Service operations on highways, law enforcement, and air quality; and

Whereas, the Postal Rate Commission does not have binding authority over the actions or activities of the United States Postal Service related to setting postal rates, entering new business sectors, or using surplus revenues from first-class mail to compete with the private sector. Now, therefore,

Be it resolved by the Senate, the House of Representatives concurring:

That the General Assembly of the State of South Carolina, by this resolution, urges Congress to pass legislation to strengthen the oversight power and the authority of the Postal Rate Commission, to include:

(1) subpoena power to examine all records and financial data of the United States Postal Service in order to make informed decisions on postal rate increases, pricing actions, and product offerings;

(2) jurisdiction and final approval authority on all domestic and international postal rate adjustments; and

(3) authority over all competitive and nonpostal business endeavors, including all products and services outside the scope of universal mail service.

Be it further resolved that the South Carolina Department of Revenue be directed to undertake an analysis to quantify the impact of the lost taxes and fees not being collected by South Carolina state and local agencies as a result of the United States Postal Service's special status and to report the findings of this analysis to the General Assembly annually each July first.

Be it further resolved that copies of this resolution be forwarded to the President of the United States Senate, the Speaker of the United States House of Representatives, and the members of the South Carolina Congressional Delegation, all at Washington, D.C., and to the Director of the South Carolina Department of Revenue, at Columbia.

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