Sanctions for certain failures of service

(a) In general Subchapter VII of chapter 36 of title 39, United States Code, is amended by adding at the end the following new section: 3693. Sanctions. (a) In general If, pursuant to section 3653 or a complaint proceeding conducted pursuant to section 3662, the Postal Regulatory Commission determines that the Postal Service failed to meet a target established under section 3692 and that such failure is a covered failure, the Commission may reduce the maximum amount by which the Postal Service may adjust the rates for the market-dominant products affected by such failure under section 3622, except that such reduction may not cause such maximum amount to be less than zero. In making such determination, the Commission shall consider evidence of losses incurred by users of the product or products concerned as a result of the failure. (b) Applicability (1) In general A reduction under subsection (a) to the maximum amount by which the Postal Service may adjust the rates for a market-dominant product under section 3622 shall apply only with respect to— (A) the first implementation of such an adjustment for such market-dominant product occurring during the period beginning on the date on which the Postal Regulatory Commission makes such reduction and ending on the date on which Commission determines that the Postal Service is meeting the target established under section 3692 with respect to which the Commission made such reduction; and (B) each subsequent implementation of such an adjustment for such market-dominant product occurring during such period to the extent determined appropriate by the Commission. (2) Subsequent implementation determination In making the determination described in paragraph (1)(B) with respect to a reduction for a failure described in subsection (a), the Postal Regulatory Commission shall consider evidence of losses incurred by users of each product affected by such failure. (c) Covered failure defined In this section, the term covered failure means a failure to meet a target established under section 3692— (1) that is not the result of a natural disaster or another disruptive event the cause of which was outside the control of the Postal Service; (2) that has persisted for not less than one year; and (3) with respect to which the Postal Service does not have a credible plan for achieving and maintaining performance sufficient to meet the targeted level within a reasonable time.. (b) Clerical amendment The table of sections for chapter 36 of title 39, United States Code, is amended by inserting after the item relating to section 3692 the following: 3693. Sanctions..