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S. 631

BillFederalSenateIn Committee
A bill to amend title 39, United States Code, with respect to cooperative mailings.
About This Bill
Committee
Latest Action · March 17, 2003
Read twice and referred to the Committee on Governmental Affairs.
Congress
108th (2003–2005)
Introduced
March 17, 2003
Cosponsors (2)
1D 1R
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Summary

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Amends Federal postal law to apply certain reduced postage rates to specified mail matter (cooperative mailings) sent (or proposed to be sent) by or on behalf of an organization authorized to mail at non-profit postage rates even though it has a contractual or any other business relationship with an entity not so authorized.Deems a conflict of interest creating a presumption against eligibility for use of such non-profit postage rates any contractual relationship between a qualified nonprofit organization with a commercial entity for solicitation of funds for or on behalf of the nonprofit organization, or for counseling services for the solicitation of funds. Exempts from this rule any such contract if the parties act severally and independently in forming it, or it is approved in advance: (1) by the governing body of the nonprofit organization, the controlling voting percentage of which is composed of persons other than officers, board members, principals, or employees of the commercial entity; or (2) by other persons authorized by such governing body to act on its behalf.Allows a rebuttal of the presumption against eligibility even if a conflict of interest is found to exist, if it can be demonstrated to the Postal Service that the contract meets certain standards of the Internal Revenue Service under the Internal Revenue Code establishing a rebuttable presumption that a transaction is not an excess benefit transaction.

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