[Senate Report 109-140]
[From the U.S. Government Publishing Office]
109th Congress Report
SENATE
1st Session 109-140
_______________________________________________________________________
Calendar No. 221
EXTENDING THE SPECIAL POSTAGE STAMP FOR BREAST CANCER
__________
R E P O R T
of the
COMMITTEE ON HOMELAND SECURITY AND
GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
to accompany
S. 37
EXTENDING THE SPECIAL POSTAGE STAMP FOR BREAST CANCER
September 26, 2005.--Ordered to be printed
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
SUSAN M. COLLINS, Maine, Chairman
TED STEVENS, Alaska JOSEPH I. LIEBERMAN, Connecticut
GEORGE V. VOINOVICH, Ohio CARL LEVIN, Michigan
NORM COLEMAN, Minnesota DANIEL K. AKAKA, Hawaii
TOM COBURN, Oklahoma THOMAS R. CARPER, Delaware
LINCOLN D. CHAFEE, Rhode Island MARK DAYTON, Minnesota
ROBERT F. BENNETT, Utah FRANK LAUTENBERG, New Jersey
PETE V. DOMENICI, New Mexico MARK PRYOR, Arkansas
JOHN W. WARNER, Virginia
Michael D. Bopp, Staff Director and Chief Counsel
Ann C. Fisher, Deputy Staff Director
Joyce A. Rechtschaffen, Minority Staff Director and Counsel
Jason M. Yanussi, Minority Professional Staff Member
Trina D. Tyrer, Chief Clerk
Calendar No. 221
109th Congress Report
SENATE
1st Session 109-140
======================================================================
EXTENDING THE SPECIAL POSTAGE STAMP FOR BREAST CANCER
_______
September 26, 2005.--Ordered to be printed
_______
Mr. Collins, from the Committee on Homeland Security and Governmental
Affairs, submitted the following
R E P O R T
[To accompany S. 37]
The Committee on Homeland Security and Governmental
Affairs, to whom was referred the bill (S. 37) to extend the
special postage stamp for breast cancer research for 2 years,
having considered the same reports favorably thereon without
amendments and recommends that the bill do pass.
I. Purpose and Summary
S. 37 reauthorizes the Stamp Out Breast Cancer Act (P.L.
105-41) through December 31, 2007. This special postage stamp
for first-class mail was designed specifically to raise funds
for breast cancer research efforts. The price of this stamp is
45 cents, 8 cents above the regular rate of 37 cents.
II. Background
Breast cancer is considered the most commonly diagnosed
cancer among women in every major ethnic group in the United
States. About three million women in the U.S. are living with
breast cancer, one million of whom have yet to be diagnosed.
Annually, nearly $7 billion is spent on the treatment of breast
cancer. In the past five years alone, the federal government
has spent about $3 billion on breast cancer research.\1\ To
supplement these federal dollars, Congress passed legislation
creating the Breast Cancer Research Semipostal (BCRS) to
increase public awareness of the disease and allow the public
to participate directly in raising funds for such research.
Since its first issuance in July of 1998 through May 31, 2005,
the BCRS has raised a total of $43.9 million.
---------------------------------------------------------------------------
\1\ U.S. Government Accountability Office, Breast Cancer Research
Stamp: Effective Fund-Raiser, but Better Reporting and Cost-Recovery
Criteria Needed, GAO-03-1021 (September 2003), 1.
---------------------------------------------------------------------------
The BCRS is widely supported by groups, such as the
American Cancer Society and the Susan G. Komen Breast Cancer
Foundation, and the general public, as evidenced by strong
annual sales of the stamp. The Committee also recognizes that
with 68 cosponsors, the BCRS and S. 37 has widespread Senate
support. The Committee recommends the bill pass, even though it
has previously considered legislation which would remove the
legislative branch from the process of issuing semipostal
stamps, because of the importance of the cause, as well as the
considerable support for the bill.
In 2000, when the Committee considered legislation
reauthorizing the BCRS, it also considered the broader issue of
semipostal stamps. At that time, the BCRS had already
experienced three years of highly successful sales. However, as
a result of the BCRS's success, Members of Congress had
introduced numerous bills for the issuance of semipostals to
raise funds for such issues as AIDS research and education,
Alzheimer's disease research, prostate cancer awareness, and
World War II Memorial funding, to name a few. However, postal
rules at the time prohibited the Postal Service from issuing
semipostal stamps. For this reason, the Committee approved the
Semipostal Authorization Act, granting the Postal Service the
authority to design a fair process by which to offer specially
priced semipostal stamps for voluntary purchase by the public
so long as they are of public interest and appropriate. The
intent of this Act was to take the legislative branch out of
the process of issuing semipostal stamps in the same spirit
that commemorative stamps are the purview of the Postal
Service.
The Postal Service has expressed concern that the
popularity of the BCRS does not necessarily portend the success
of future semipostals, whether mandated by Congress or
initiated by the Postal Service, and that future semipostals
might generate only modest amounts of revenue while still
requiring substantial postal expenditures. Ongoing work by the
U.S. Government Accountability Office appears to support this
concern. As of August 2003, the Postal Service has not issued
any semipostals of its own choosing under the authority of the
Semipostal Authorization Act and has no plans to do so until
the sales periods for congressionally mandated semipostals have
ended.\2\ The Committee finds this position consistent with the
discretion afforded the Postal Service under the Semipostal
Authorization Act.
---------------------------------------------------------------------------
\2\ GAO-03-1021, 32.
---------------------------------------------------------------------------
The Stamp Out Breast Cancer Act provides that the Postal
Service is to deduct from the surcharge revenue its reasonable
costs incurred in carrying out the act. After deducting its
reasonable costs, the Postal Service is to remit the remaining
proceeds from the BCRS surcharge revenue to the National
Institutes of Health (NIH) and the Department of Defense (DOD)
for breast cancer research. Seventy percent of the net proceeds
go to NIH, with the remaining 30 percent going to DOD's medical
research program.
In a 2003 report, GAO pointed out that neither the NIH or
DOD are subject to the same statutory reporting requirements as
agencies that are to receive funds generated by semipostals
issued under the Semipostal Authorization Act.\3\ Agencies that
receive funds from semipostals issued under the Semipostal
Authorization Act are required to submit annual reports to
Congress that include: (1) the total amount of funds received
during the year; (2) an accounting of how the funds were
allocated or otherwise used; and (3) a description of any
significant advances or accomplishments made during the year
that were funded, in whole or in part, out of amounts received.
Considering this, GAO has recommended that Congress consider
establishing annual reporting requirements for NIH and DOD
similar to those required of any agency that was to receive
funds generated from semipostals issued under the Semipostal
Authorization Act. The Committee agrees with GAO's
recommendation. Whether a semipostal is congressionally
mandated, or selected by the Postmaster General, the federal
agencies benefitting from sale of the stamp should be subject
to the same reporting requirements.
---------------------------------------------------------------------------
\3\ Ibid, 34.
---------------------------------------------------------------------------
III. Legislative History
S. 37 was introduced on January 24, 2005 by Senator Dianne
Feinstein, for herself and Senator Hutchison. It currently has
68 cosponsors. The bill was referred to the Committee
onHomeland Security and Governmental Affairs. On June 22, 2005, the
Committee considered the bill and by voice vote ordered it reported
favorably without amendment. Present were Senators Collins, Voinovich,
Coleman, Chafee, Bennett, Coburn, Lieberman, Levin, Akaka, Carper,
Lautenberg and Pryor.
IV. Section-by-Section Analysis
Section 1. Extends the issuance of the Breast Cancer
Research Stamp an additional two years.
V. Regulatory Impact Statement
Paragraph 11(b)(1) of rule XXVI of Standing Rules of the
Senate requires that each report accompanying a bill evaluate
``the regulatory impact which would be incurred in carrying out
this bill.''
Enactment of this legislation will have no significant
regulatory impact. S. 37 contains no intergovernmental or
private-sector mandates as defined in the Unfunded Mandates
Reform Act and would impose no costs on the budgets of state,
local, or tribal governments.
VI. Congressional Budget Office Cost Estimate
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 29, 2005.
Hon. Susan M. Collins,
Chairman, Committee on Homeland Security and Governmental Affairs,
U.S. Senate, Washington, DC.
Dear Madam Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 37, a bill to extend
the special postage stamp for breast cancer research for two
years.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Mark
Grabowicz.
Sincerely,
Elizabeth M. Robinson
(For Douglas Holtz-Eakin, Director).
Enclosure.
S. 37--A bill to extend the special postage stamp for breast cancer
research for two years
Summary: The Stamp Out Breast Cancer Act (Public Law 105-
41) authorized a special postage stamp for first-class mail.
The price of this stamp is 45 cents, 8 cents above the regular
rate of 37 cents, and the authority to issue this stamp expires
on December 31, 2005. After accounting for the Postal Service's
administrative costs, amounts above the regular postal rate
collected from sales of the special stamp are transferred to
the National Institutes of Health (NIH) and the Department of
Defense (DoD) to spend on breast cancer research efforts. S. 37
would extend this program until December 31, 2007.
Over the 2006-2015 period, CBO estimates that enacting S.
37 would have no net effect on direct spending, and would not
affect either revenues or discretionary spending. S. 37
contains no intergovernmental or private-sector mandates as
defined in the Unfunded Mandates Reform Act (UMRA) and would
not affect the budgets of state, local, or tribal governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 37 is shown in the following table. The
costs of this legislation fall within budget functions 050
(national defense), 370 (commerce and housing credit), and 550
(health).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
---------------------------------------------------------------------
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
----------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
OFF-BUDGET EFFECTS
Impact on the Postal Service:
Estimated Budget Authority............ -3 0 3 0 0 0 0 0 0 0
Estimated Outlays..................... -3 0 3 0 0 0 0 0 0 0
ON-BUDGET EFFECTS
Impact on NIH and DoD:
Estimated Budget Authority............ -1 -3 0 3 1 0 0 0 0 0
Estimated Outlays..................... -1 -3 0 3 1 0 0 0 0 0
UNIFIED BUDGET EFFECT
Total:
Estimated Budget Authority............ -4 -3 3 3 1 0 0 0 0 0
Estimated Outlays..................... -4 -3 3 3 1 0 0 0 0 0
----------------------------------------------------------------------------------------------------------------
Basis of estimate: Based on sales of the special breast
cancer stamp in recent years, CBO estimates that enacting S. 37
would generate collections above the regular postage rate of
roughly $5 million in each of fiscal years 2006 and 2007 and
about $2 million in 2008. After covering its administrative
costs (about $1 million over this period), the Postal Service
would transfer those collections to NIH and DoD in May and
November of each year. Thus, the net impact on the Postal
Service over the 2006-2008 period would be zero. Spending and
collections of the Postal Service are classified as ``off-
budget.''
We estimate that enacting S. 37 would increase NIH and DoD
collections (from Postal Service Transfers) by about $1 million
in 2006, $6 million in 2007, and $4 million in 2008. Spending
of these collections by those two agencies would lag behind the
amounts collected by several months. We estimate research
spending would be $1 million in fiscal year 2006, $3 million a
year in 2007, $4 million in 2008, $2 million in 2009, and about
$1 million in 2010. Thus, the net unified budget impact of the
proposal (including on-budget and off-budget effects) would be
zero over the 2006-2010 period, with no effect after 2010.
Intergovernmental and private-sector impact: S. 37 contains
no intergovernmental or private-sector mandates as defined in
UMRA and would not affect the budgets of state, local, or
tribal governments.
Estimate prepared by: Federal Costs: Mark Grabowicz. Impact
on State, Local, and Tribal Governments: Sarah Puro. Impact on
the Private Sector: Alicia Handy.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
VII. Changes to Existing Law
In compliance with subsection 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill S. 37, as ordered reported, are shown as follows
(existing law proposed to be omitted is enclosed in black
brackets, new matter is printed in italic, existing law in
which no change is proposed is shown in roman):
TITLE 39. POSTAL SERVICE
PART I. GENERAL
CHAPTER 4. GENERAL AUTHORITY
Sec. 414. Special postage stamps
* * * * * * *
(h) This section shall cease to be effective after December
31, [2005] 2007.