POST OFFICE CONSUMER ACTION GROUP MODEL STATUTE – Center for Study of Responsive Law

Post Office Consumer Action Group Model Statute

Sec. 1. Short Title. — This Act may be cited as the ” Post Office Consumer Action Group Act (POCAG).”

Post Office Consumer Action Group Model Statute

Sec. 1. Short Title. — This Act may be cited as the ” Post Office Consumer Action Group Act (POCAG).”

Sec. 2. Findings and Purposes. —

(a) FINDINGS. — The legislature finds that:

(1) Individual action by residential postal users for the purposes of participating in postal matters and communicating their views is rendered impracticable by reason of the disproportionate expense of taking such action.

(2) Such participation and representation can be best secured by the creation of a permanent, not-for-profit organization which is under the democratic control of its membership, solely responsive to that membership’s goals, and which is funded by voluntary contributions.

(3) The formation of such an entity by consumers acting voluntarily is impeded because consumers have neither the resources nor an efficient mechanism to contact all residential postal users, raise initial funds and join such an entity.

(4) In order to create such an entity, it is necessary to establish a democratically structured organization and to provide for the dissemination, to all postal users, of information as to the formation and purposes of such organization and to provide an efficient means for joining and contributing to such organization.

(b) PURPOSES. — It is the purpose of this Act —

(1) To assist in establishing adequate and affordable postal service to all residential postal users.

(2) To foster and encourage active citizen participation in postal matters and to facilitate effective representation and advocacy of the interests of residential postal users before regulatory agencies, Congress, the courts and other bodies; and for these purposes create a permanent not-for-profit organization.

(3) To create an efficient funding mechanism for the organization, involving no compulsory burden whatsoever [*296] on the taxpayers of the United States, whereby individual residential postal users and others may voluntarily contribute to the organization.

(4) To ensure that public policies affecting the provision, quality and cost of postal services fairly reflect the needs and concerns of those users.

For these reasons there shall be established a permanent not-for-profit Corporation know as the ” Post Office Consumer Action Group, Inc.” with the responsibility to promote adequate representation of residential postal users; to collect operating funds; to assist in the redress of residential postal user
complaints; and to provide for residential postal users’ membership in such Corporation and residential postal users’ direction of the actions of such Corporation.

Sec. 3. Definitions. —

(a) “Individual residential postal user” means any person who sends or receives letters, packages and other items through the United States Postal Service for non-business purposes.

(b) “Private mail delivery service” means any establishment which regularly delivers second-class, third-class, fourth-class, overnight or other category of mail for profit.

(c) “Agency” means any local, state or federal department, commission, office, authority or other public body with the legal authority to establish or alter rates or services for the provision of postal services within the United States.

(d) “Proceeding” means any formal hearing or meeting conducted by the United States Postal Servid by an administrative law judge, regarding:

(1) The establishment or alteration of rates and charges for the provision of postal services within the United States.

(2) The promulgation of rules and regulations concerning postal services and other matters that affect the interests of individual residential postal consumers,

(3) Adjudication of complaints, claims, disputes and petitions of residential postal users.

(4) The gathering of information on matters that affect the interests of individual residential postal consumers.

[*297] (e) “The Corporation” means the Postal Office Consumer Action Group, Inc.

(f) “Member” means any person who meets the requirements for membership in the Corporation set forth in this Act.

(g) “Director” means any member of the Corporation duly elected or appointed to the board of directors of the Corporation.

(h) “Delegate” means any person duly elected or appointed as a delegate under the provisions this Act.

(i) A “District” means a district designated by the board of directors pursuant to this Act.

(j) “Campaign expenditure” means a purchase, payment, distribution, loan, advance, deposit, or gift of money or anything of value, made for the

purpose of electing a candidate as a director or delegate, or a contract, promise, or agreement therefore.

(k) “Campaign contribution” means money, goods, services, or other benefits paid, made, loaned, given, conferred, or promised, including but not limited to, use of office space, telephones, equipment, staff services and provisions of meals, drinks, entertainment, services or transportation

made for the purpose of electing a candidate as a director or delegate.

(l) “Political committee” means any committee, club, association, or other group of persons which makes campaign expenditures or receives campaign contributions during the year before an election of directors or delegates.

Sec. 4. Creation of Corporation Membership —

(a) There is hereby created a not-for-profit membership corporation to be known as the Post Office Consumer Action Group Inc., herein referred to as the Corporation.

(b) The membership of the Corporation shall consist of all individuals of sixteen years of age or older who have contributed to the Corporation at least an annual membership fee at such times as shall be set by the board of directors, provided, that any person may resign from membership.

Sec. 5. Duties, Rights and Powers. —

(a) The Corporation shall:

(1) Represent and promote the interests of individual residential postal users. All actions by the Corporation under this Act shall be directed toward such duty.

(2) Inform, insofar as possible, all residential postal users [*298] about the Corporation, including the procedure for obtaining membership in the Corporation.

(3) Establish an annual membership fee which shall be set at a level that provides sufficient funding for the Corporation to effectively perform its powers and duties, and is affordable for as many residential postal users as is possible, but nevertheless not less than eight dollars.

(4) Have all rights and powers accorded generally to, and be subject to all duties imposed generally upon, not-for-profit membership corporations under the laws of the United States.

(b) In addition, the Corporation shall have the following rights and powers:

(1) To solicit and accept gifts, loans, grants or other aid, in order to support activities concerning the interests of residential postal users, except that the Corporation may not accept gifts, loans or other aid from the Postal Service or from any governor, employee or agent or member of the immediate family of a
governor, employee or agent of the Postal Service.

(2) To seek tax-exempt status under state and Federal law.

(3) To conduct, support and assist research, surveys, investigations, planning activities, conferences, demonstration projects, individual counseling of postal
users, and public information activities concerning the interests of individual residential postal users.

(4) To contract for services which cannot reasonably be performed by its employees.

(5) To represent the interests of individual residential postal users before the United States Postal Service, Postal Rate Commission, Congress, state legislatures, federal and state courts, and other agencies, except as this Act otherwise provides.

(6) To support or oppose ballot propositions concerning matters which it determines may affect the interests of individual residential postal users.

(7) To transmit complaints by individual postal users concerning the United States Postal Service and private postal delivery services to the United States Postal Service and other appropriate agencies. Any such agency shall promptly inform the Corporation of its response to such complaints.

(8) To initiate, to intervene as a party, to maintain, or to [*299] otherwise participate on behalf of residential postal users in any proceeding which affects the interests of residential postal users.

(b) The Corporation shall have, in addition to the rights and powers enumerated in this Act, such other incidental powers as are reasonably necessary for the effective representation of the interests of individual residential postal users.

(c) The Corporation shall not sponsor, endorse, or otherwise support, nor shall it oppose, any political party or candidacy of any person for public office.

Sec. 6. Representation of Citizens in Proceedings. —

(a) Notification of Impending Proceedings. —

(1) The United States Postal Service, the Postal Rate Commission, and other agencies which regulate postal rates or services, shall notify or cause notice to be given to the Corporation in advance of the time, place, and subject of each formal proceeding of the agency, in which the Corporation may be eligible to
participate. The agency shall notify or cause notice to be given to the Corporation at least thirty days before the scheduled date of such proceeding or within five days after the date and calendar for such proceeding is fixed, whichever is later. In addition, the agency shall give notice or cause notice to be given within five days to the Corporation of any filed statement proposing to modify or increase rates, services, schedule of rates or any other rating rule or to adopt or amend any rate or service rule or regulations.

(b) Intervention and Participation in Proceedings. —

(1) The Corporation may intervene as of right as a party or otherwise participate in any proceeding of the United States Postal Service, Postal Rate Commission or agency which the Corporation reasonably determines would affect the interests of individual residential postal consumers.

(2) The intervention or participation of the Corporation in any such proceeding will not affect the obligation of the United States Postal Service, Postal Rate Commission, or other agency to operate in the public interest.

(1) When the Corporation intervenes or participates in a proceeding of the United States Postal Service, Postal Rate Commission, or other agency, it shall be subject [*300] to all laws and rules of procedure generally applicable to the conduct of the proceeding and the rights of interveners and participants. The
Corporation shall have the same rights regarding representation by counsel, participation in pre-hearing confernd cross-examination of witnesses, oral and written arguments, participation in settlement negotiations, and other aspects of the proceeding as are accorded to other interveners under the laws of the United States or, in instances where a proceeding is held by state or local public body, under the laws of that state, except as otherwise provided in this Act.

Sec. 7. Judicial Review of Decisions by Public Bodies; Enforcement Actions. —

The Corporation shall be deemed to have an interest sufficient to maintain, intervene as of right in, or otherwise participate in any civil action, proceeding or appeal for the review or enforcement of any decision by the United States Postal Service, Postal Rate Commission, or other public body which the Corporation determines would substantially affect the interests of individual residential postal users.

Sec. 8. Representation of Members in Lawsuits. —

(a) If the Board or Executive Director reasonably determine that bringing a civil action against the United States Postal Service on behalf of any member or group would further the general purposes of this Act, the Corporation shall provide the legal services necessary and the expert witness services reasonably appropriate for prosecution of the action.

(b) Any member who receives money due to a settlement or judgment attained with assistance in litigation provided by the Corporation as described in subsection (a) of this Section shall reimburse the Corporation for its expense in prosecution of the action, provided, that such reimbursement shall not exceed ten percent of the money received by the member.

Sec. 9. Funding of the Corporation. —

(a) The Corporation shall have the authority to prepare a statement concerning the organization and activities of the Corporation, including the purpose, history, nature, [*301] structure and achievements of the Corporation, and other matters which may affect the interests of individual residential postal users. The statement shall indicate that the statement is not connected to the Postal Service or any governmental agency. The statement shall indicate the procedure for becoming a member of the Corporation. The statement shall not contain an individual postal address.

(a) The Corporation shall furnish such a statement to the United States Postal Service, which will then print a quantity of the statements sufficient to provide one statement for every residential postal address. Each such statement shall weigh no more than () ounces avoir. Prior to furnishing a statement to the United States Postal Service, the Corporation shall seek and obtain the approval of the Postal Rate Commission of the content of the statement. The Commission shall approve the statement if it determines that the enclosure (a) is not false and misleading, and (b) contains and is limited to the information permitted by subsection

(b) of this section. The Commission shall be deemed to have approved the statement unless it disapproves the statement within fourteen days of receipt.

(c) The Postal Service shall, subject to subsection (d) of this section, deliver to each individual post office or postal facility in the United States, a quantity of the mailings, pursuant to subsections (a) and (b) of this section, which approximately equals the number of residential addressees in the region served by the postal facility. Individual post offices and postal facilities shall deliver such mailings to every residential address in their district during regular delivery rounds.

(d) The United States Postal Service may implement a procedure for distributing such mailings o(c) of this section, unless such other procedure would be more costly to the Corporation or would be a slower or otherwise less efficient means of distributing such mailings.

(e) The United States Postal Service shall be required to distribute such mailings within 60 to 90 days of the date on which the statement is given to the Postal Service by the Corporation.

(f) The United States Postal Services shall not be required to deliver such mailings pursuant to subsections (c) and (d) of this section at intervals of less than six months This provision shall not affect the obligation of the United States [*302] Postal Service to deliver any mailings for the Corporation for which the Corporation pays postage fees.

(g) The United States Postal Service shall bear all cost incurred in distributing mailings pursuant to subsections (c) and (d) of this Section.

(h) Any disputes arising from the operations of subsections (a) through (g) of this section shall be resolved by negotiations between the Corporation and the United States Postal Service if possible, or by a civil proceeding in the courts of the United States. Neither the United States Postal Service nor the Corporation may fail to comply with the provisions of this Act by reason of such a dispute.

(i) An individual may contribute to the Corporation by sending a payment to any office of the Corporation. He or she may list the names of additional contributors in his or her household who are sixteen years of age and older and the amount each has contributed.

Sec. 10 Prohibited Acts. —

(a) No official or employee of the United States Postal Service, or any other public official or employee or officer, or any employee or agent of any private mail delivery service may interfere or threaten to interfere with or cause any interference with mail delivery to, or penalize or threaten to penalize or cause to be penalized, any person who contributes to the Corporation or participates in any of its activities, in retribution for such contribution or participation.

(b) No official or employee of the United States Postal Services, or any other public official or employee or officer, or employee or agent of any private postal delivery service may prevent, interfere with, or hinder the activities described in this Act.

(1) A person who violates subsection (b) or (c) of this Section shall be subject to a civil penalty of not more than $ 10,000. Each such violation shall constitute a separate and continuing violation of the Act.

(c) No person shall use any list of contributors to the Corporation, nor any part of such list, for purposes other than the conduct of business of the Corporation the as prescribed in this Act. No person shall disclose any such list or part thereof to any other person unless the person has substantial reason to believe that such list or part thereof is intended to be used for the lawful purposes described in this Act. A person who violates this subsection shall be subject to a civil
penalty of not more than $ 10,000

[*303] Sec. 11. Board of Directors. —

(a) The affairs of the Corporation shall be managed by a board of directors. There shall be twenty directors.

(b) The term of office of elected directors shall be three years and no member shall serve more than two consecutive terms. One third of the directors first elected to the board shall serve a one-year term; one third of such directors shall serve a two-year term; and one third of such directors shall serve a full three-year term. The directors shall draw lots upon their installation in office to determine the length of their first terms. The term of office of directors appointed pursuant to this Act shall end when the first elected directors are installed in office.

(d) The directors shall serve without salary, but each director may be entitled to reimbursement for actual and necessary expenses. The board of directors shall establish standard allowances for mileage, room and meals and the purposes for which such allowances may be made and shall determine the reasonableness and necessity for such reimbursements.

(e) No director nor members of his or her immediate family shall, either directly or indirectly, be employed for compensation as a staff member or consultant of the Corporation.

(f) Any director who shall handle, disburse, or receive money on behalf of the Corporation shall be bonded. Such bond shall be a cost to the Corporation.

(g) Each director shall represent the interests of residential postal users of the United States.

(h) Each director shall have one vote of the board of directors.

(i) Elected directors shall be installed in office by the president of the outgoing board of directors.

Sec. 12. Duties of the Board of Directors. —

The Board of Directors shall have the following duties:

(a) To establish the policies of the Corporation regarding appearances before the Postal Rate Commission, other agencies, the courts, and other public bodies, and regarding the activities which the Corporation has the authority to perform under this Act.

(b) To maintain up-to-date membership rolls, and to keep them in confidence to the extent required by the provisions of section nine of this Act. [*304]

(c) To keep minutes, books, and records which shall reflect all the acts and transactions of the board of directors which shall be open to examination by any member during regular business hours.

(d) To make all reports, studies, data pertaining to the finances of the Corporation, and other information compiled by the Corporation, available for public inspection during regular business hours.

(e) To maintain for inspection by membership quarterly statements of the financial and substantive operations of the Corporation.

(f) To cause the Corporation’s books to be audited by a certified public accountant at least once each fiscal year, and to make the audit available to the general public;

(g) To prepare, as soon as practicable after the close of the Corporation’s fiscal year, an annual report of the Corporation’s financial and substantive operations to be made available for public inspection.

(h) To report to the delegates at the annual meeting of delegates on the past and projected activities and policies of the Corporation.

(i) To employ an executive director and to direct and supervise his or her activities.

(j) To hold regular meetings at least once every three months on such dates and at such places as it may determine. Special meetings may be called by the president or by at least one-quarter of the directors upon at least five days’ notice. One-half of the directors plus one shall constitute a quorum. All meetings of the board of directors and of its committees and subcommittees shall be open to the public. Complete minutes of the meetings shall be kept.

(k) To carry out all other duties and responsibilities imposed upon the Corporation and the board of directors by this Act.

Sec. 13. Appointment of Interim Board of Direthe Speaker of the House, the President Pro Tempore of the Senate, the majority and minority leaders of the House, and the majority and minority leaders of the Senate of the United States shall each appoint two interim directors of the Corporation to serve until a board of directors is first elected. The interim directors shall be installed in office by the President of the United States. If the Corporation fails to reach the level
required [*305] by this Act within three years of the appointment of the complete interim board of directors, the Corporation shall be dissolved after having satisfied its debts, liabilities and obligations to the extent possible from funds made available to the Corporation. Individuals considered for appointment for the board of directors shall have the same qualifications as candidates for the permanent board of directors pursuant to this Act, and shall, to the extent possible, represent each region of the United States.

(b) The interim board of directors shall:

(1) Inform the residential postal users of the United States of the of the existence, nature, and purpose of the Corporation, and encourage residential postal users to join the Corporation’s activities and to contribute to the Corporation.

(2) As soon as possible after appointment, organize for the transaction of business.

(3) Elect officers.

(4) Employ such staff as the directors deem necessary to carry out the purpose of this Act;

(5) Make all necessary preparations for the first election of delegates and directors, oversee the election campaign and tally the votes.

(6) Solicit funds for the Corporation.

(7) Carry out all other duties and exercise all other powers accorded to the board of directors of this Act.

Sec. 14. Delegates. —

(a) The Corporation shall elect one delegate from each congressional district in the United States, including the District of Columbia.

(b) The delegates shall serve without salary.

(d) No delegate nor members of his or her immediate family shall, either directly or indirectly, be employed for compensation as a staff member or consultant of the Corporation.

(e) Any delegate who shall handle, disburse, or receive money on behalf of the Corporation shall be bonded. Such bond shall be a cost to the Corporation.

Sec. 15. Duties of Delegates. —

The delegates shall have the following duties. —

(a) To publicize the activities of the Corporation in their districts.

[*306] (b) To encourage members in their districts to participate in the Corporation’s programs and activities.

(c) To act as a liaison between the board of directors and members in their districts. To transmit to the board of directors comments, writings and suggestions concerning the Corporation from members in their districts and to inform such members of the board’s response to their statements.

(d) To vote at the annual meeting of delegates and at special meetings of delegates called by the board on matters involving basic changes in the policies and operations of the Corporation. A majority vote of the delegates shall be necessary to institute such changes.

(e) To vote on other items submitted to delegates by the board of directors at annual and special meetings. A majority vote of the delegates shall indicate approval by the delegates of such items.

(f) To carry out all other duties and exercise all other powers accorded to delegates under this Act.

Sec. 16. Election of Delegates and Directors. —

(a) Not more than sixty days after the membership of the Corporation has reached 50,000 persons, with at least 100 members in each district, and the Corporation has received $ 250,000 in contributions, the interim board of directors
shall set a date for the first election of delegates and shall notify every member. The date set for the election shall be not less than four months nor more than six months after such notification.

(b) Each general election of delegates other than the first election shall be held not less than eleven months and not more than fourteen months after the last preceding general election. The date of such elections shall be fixed at least four months in advance of the date chosen for the election.

(c) Within eleven months of the first elof twenty members. Only delegates shall be eligible to run for the board of directors. Any delegate may nominate himself or herself or any other delegate for election to the board.

(d) Subsequent elections of directors shall be held at not less than eleven months and not more than thirteen months after the last preceding general election. Elections may be held at the annual meeting of delegates if the elections would conform to the requirement of this subsection.

[*307] Sec. 17. Qualifications of Candidates. —

(a) No present employee, director, consultant, attorney, accountant, real estate agent, shareholder, bondholder of the Postal Service or Postal Rate Commission shall be eligible to be a delegate or director. No delegate or director nor any candidate for delegate or director may hold an elective public office or be a candidate for an elective public office or be appointed to hold a public office.

(b) To be eligible for election as a delegate, a candidate must:

(1) Meet the qualifications for candidates.

(2) Submit a petition for nomination.

(3) Be a member of the corporation and resident of the United States district which he or she seeks to represent as a delegate.

(4) Submit a statement of financial interest and a statement of personal background and position.

(5) Affirm, under penalty of perjury, that the information contained in the statement of financial interest and personal background and position is true and complete.

(1) Meet the qualifications for candidates.

(2) Be a member of the corporation and a delegate.

(3) Submit a petition for nomination.

(4) Submit a statement of financial interest and personal background and position.

(5) Affirm, under penalty of perjury, that the information contained in the statement of financial interest and personal background and position is true and complete.

Sec. 18. Nomination. —

(a) The interim board of directors and every subsequent board of directors shall make available for inspection by any member, upon request, a list of the current members in that member’s district.

(b) A candidate for election as a delegate shall submit to the board, no later than sixty days prior to the election, a petition for nomination signed by at least [five percent] of the members residing in his or her district. Upon receipt of a member’s nominating petition, the board of directors shall certify that such member is a nominated candidate for delegate.

(c) A candidate for election as a director shall submit to the [*308] board, no later than sixty days prior to the election, a petition for nomination signed by at least [five percent] of the delegates. Upon receipt of a member’s nominating petition, the board of directors shall certify that such member is a nominated candidate for delegate.

Sec. 19. Statement of Financial Interests. —

A candidate for election as a delegate or director shall submit to the board of directors, not later than [sixty] days prior to the election, a statement of financial interests upon a form provided by the board of directors. The statement of financial interests, which shall be open to public inspection, shall include the following information:

(a) The occupation, employer, and position at place of employment of the candidate and of his or her immediate family members.

(b) A list of all corporate and organizational directorships or other offices, and of all fiduciary positions held in the past three years by the candidate and by his or her immediate family members; and

(c) An affirmation, subject to penalty of perjury, that the information contained in the statement of financial interests is true and complete.

(d) Such other information as the board of directors shall require candidates to disclose, which disclosure is required of other public officials at the time, and shall be in the judgement of the board of directors in the best interests of the Corporation.

Sec. 20. Statement of Personal Background and Positions. —

A candidate for election as delegate or direcection, on a form to be provided by the board of directors, a statement concerning his or her personal background and positions relating to postal issues or the operations of the Corporation. The statement shall contain an affirmation, subject to penalty of perjury, that the information contained in the statement of personal background is true and complete and that the candidate meets the qualifications prescribed for delegates and directors.

Sec. 21. Restrictions on and Reporting of Campaign Contributions and Expenditures.

(a) No candidate for delegate or director may accept more than [$ 100.00] in campaign contributions from any person or political committee during the year preceding the date of the election.

[*309] (b) Each candidate for election to the board of directors or as a delegate shall keep complete records of all contributions to his or her campaign of fifty dollars or more during the year preceding the election. Such records shall be available for inspection by the public.

(c) Each candidate shall keep complete records of his or her campaign expenditures, and such records shall be available for inspection by the public.

(d) Each candidate, no earlier than the next day succeeding the election and no later than thirty days after the election, shall submit to the board of directors, on a form provided by the board of directors, an accurate statement of his or her campaign contributions accepted and campaign expenses incurred, and shall affirm to the board, subject to penalty of perjury, that he or she has fully complied with the requirements of this subsection.

(e) No candidate shall accept campaign contributions from the Postal Service, the Postal Rate Commission, or a private postal delivery service.

(f) If the board of directors determines that the candidate’s campaign expenses have exceeded the limits contained in this section, the candidate shall be disqualified and may be required to pay the expenses incurpersonal background and position. The Corporation may pursue all civil remedies to recover the cost of mailing the candidate’s statement of personal background and position. In the event of disqualification, the board of directors shall call a special election to be held not fewer than four months and not more than six months after the determination of disqualification.

(g) No candidate may use any campaign contribution for any purpose except for campaign expenditures.

Sec. 22. Election Procedures for Delegates. —

(a) The board of directors shall send or have sent to each member in the district of a candidate for delegate, to be postmarked no later than twenty days before the date fixed for a special or general election, the following:

(1) An official ballot listing all candidates for delegate from the member’s district who have complied with the requirements of this Act.

(2) Each such candidate’s statement of financial interests.

[*310] (3) Each such candidate’s statement of personal background and positions

(b) Each residential postal user who is a member of the Corporation on the thirtieth day preceding a special or general election may cast a vote in such election by returning his or her official ballot, properly marked, to the principal office of the Corporation by eight p.m. of the date fixed for the election. Voting shall be by secret ballot. The candidate receiving the greatest number of votes in each district shall be declared elected as a delegate.

(c) The board of directors may prescribe rules for the conduct of elections and election campaigns not inconsistent with this Act.

Sec. 23. Election Procedures for Directors. —

(a) The board of directors shall send or have sent to each delegate, to be postmarked no later than twenty days before the date fixed for a special or general election, the following:

(1) An official ballot listing all candidates for director who have complied with the requirements of this Act.

(2) Each such candidate’s statement of financial interests.

(3) Each such candidate’s statement of personal background and positions

(b) Each member of the Corporation who is a delegate on the thirtieth day preceding a special or general election may cast a vote in such election by returning his or her official ballot, properly marked, to the principal office of the Corporation by eight p.m. of the date fixed for the election, or by casting such vote in person if an election is held at an annual or special meeting of delegates. Voting shall be by secret ballot.

(c) Each delegate may vote for a maximum of twenty candidates for director and may cast only one vote for each candidate. If over twenty candidates each receive at least thirty percent of the vote on the first ballot, the twenty candidates with the highest number of votes shall be elected to the board. If less than twenty candidates receive at least thirty percent of the vote on the first ballot, the second ballot shall be conducted to elect candidates to the remaining positions on the board. If there are fifteen or more remaining positions left after the first ballot, then the names of the forty [*311] candidates, excluding those already elected, who received the highest number of votes in the first ballot shall be placed on the second ballot, and the candidates receiving the highest number of votes on the second ballot shall be elected to the remaining positions. If there are less than forty candidates for the remaining positions, the names of all remaining candidates shall be placed on the second ballot. If there are less than fifteen remaining positions left after the first ballot, then the names of the twenty-five candidates, excluding those already elected, who received the highest number of votes on the first ballot shall be placed on the second ballot, and the candidates receiving the highest number of votes on the second ballot shall be elected to the remaining positions. If there are less than twenty-five candidates for the remaining positions, the names of all remaining candidates shall be placed on the second ballot.

(d) The board of directors may prescribe rules for the conduct of elections and election campaigns not inconsistent with this Act.

Sec. 24 Installation of Elected Candidates. —

The president of the board of directors shall install in office within thirty days after the election all elected candidates who meet the qualifications prescribed in this Act.

Sec. 25 Recall of Directors. —

Upon receipt by the president of the board of directors of a petition to recall any director with the valid signatures of at least forty percent of the delegates, forty percent of the members of the district from which such director was elected as delegate, or ten percent of the Corporation’s total membership, the president shall call a special election, to be held not less than four months and not more than six months after receipt of the petitior to serve out the term of the recalled director; provided, that no petition to recall a director may be filed within six months of his or her election. A director may become a candidate in an election following his or her own recall. A director recalled shall continue to serve until the installation in office of his or her replacement. A director who has been recalled shall be allowed to complete his or her term of office as a delegate, unless the petition for recall clearly states that its purpose is to recall a person from the office of delegate as well as director. No delegate removed from office shall be allowed to continue serving as director.

[*312] Sec. 26 Vacancies on the Board of Directors. —

When a director dies, resigns, is disqualified, or otherwise vacates his or her office, except as provided in section twenty-two of this Act, the board of directors shall select, within three months, a successor from among the delegates for the remainder of the director’s term of office. Any director may nominate any qualified delegate as successor. The board of directors shall select the successor from among those nominated, by a two-thirds majority of the remaining
directors present and voting. The successor shall be installed in office by the president of the board of directors.

Sec. 27 Recall of Delegates. —

Upon receipt by the president of the board of directors of a petition to recall any delegate with the valid signatures of at least forty percent of the members from such delegate’s district, the president shall call a special election for the district to be held not less than four months and not more than six months after receipt of the petition, for the purpose of electing a delegate to serve out the term of the recalled delegate; provided, that no petition to recall a delegate may be filed within six months of his or her election. A delegate may become a candidate in an election following his or her own recall. The Delegate recalled shall cllment in office of his or her successor.

Sec. 28 Vacancies of Delegates.

When a delegate dies, resigns, is disqualified, or otherwise vacates his or her office, the board of directors shall hold, within three months of the date on which such vacancy was created, an election in the delegate’s district for the purpose of electing a successor for the remainder of the delegate’s term of office. The successor shall be installed by the president of the board of directors.

Sec. 29 Annual Meetings of Delegates. —

(a) An annual meeting of delegates shall be held on a date and at a place within the United States of America to be determined by the board of directors.

(b) All delegates shall be eligible to attend, participate in, and vote in the annual meeting of delegates. Two-thirds of the delegates shall constitute a quorum. Each delegate shall have one vote at such meeting.

(1) By request of any director or delegate not less than five days and not more than four months in advance of the date of such meeting.

[*313] (2) By petition containing the valid signatures of at least twenty percent of the members of any district or at least one percent of the total membership. Such petition must be filed with the board of directors not less than two days and not more than five months in advance of the date of such meeting.

(d) The form of the annual meeting of delegates shall be provided in the laws of the United States regarding not-for-profit membership corporations.

(e) The annual meeting of delegates shall be open to the public. Members shall be given a reasonable opportunity at such meeting to present their comments, criticisms and suggestions concerning the Corporation, but members may not vote at such meeting.

(f) The treasurer shall reimburse delegates for actual expenses necessarily incld a special meeting of delegates to consult with delegates on matters concerning the Corporation’s policies, activities, and operations. The board of directors shall set a time and place for a special meeting and shall inform every delegate of such time and place not less than fourteen days and not more than sixty days in advance of the date of such meeting. The directors shall be required to call a special meeting when they receive a petition containing the valid signatures of over fifty percent of the delegates or at least five percent of the members or when the majority of delegates vote for such a meeting. The meeting shall be held not more than thirty days after the filing of such petition or the date of such vote.

Sec. 30. Officers. —

(a) At the first regular meeting of the board of directors at which a quorum is present and subsequent to the initial appointment of directors, and at the first regular meeting of the board of directors at which a quorum is present subsequent to the installation of new directors following each annual election, the board shall elect by a majority vote of members present and voting from among the directors a president, a vice-president, a secretary, and a treasurer. The board also has the power to elect a comptroller and such other officers as it deems necessary.

(b) Officers shall be installed by the president immediately upon their election. The term of office for officers shall be one year; provided that an officer may resign, or may be [*314] removed from office by a two-thirds vote of all the directors. After an officer’s term of office has expired, the officer shall continue to serve until his or her successor is installed.

(c) When an officer dies, resigns, is removed, or otherwise vacates his or her office, the board of directors shall elect a successor to serve out such officer’s term of office.

(d) The officers shall exercise such powers and perform such duties as are prescribed by this Act or are delegates to them by the board of directors.

Sec. 31. Executive Director. —

(a) The executive director hired by the board of directors shall have the same qualifications as a candidate. The executive director may not be a candidate for the board of directors or delegate while serving as executive director. The by-laws of the Corporation shall provide a method for discharging the executive director, but in no event shall such discharge occur unless one-half of the directors plus one shall have consented to such discharge.

(b) The board of directors shall require all applicants for the position of executive director of the Corporation to file a financial statement. The board of directors shall require the executive director to file a financial statement annually.

(1) To implement the policies of the board of directors.

(2) To employ and discharge employees of the Corporation.

(3) To supervise the offices, facilities and work of the employees of the Corporation.

(4) To have custody of and maintain the books, records and membership rolls of the Corporation.

(5) To prepare and submit to the board of directors annual and quarterly statements of the financial estimates for the operations of the Corporation.

(6) To attend and participate in meetings of the board of directors as a non-voting director.

(7) To exercise such other powers and perform such other duties as the board of directors delegate.

Sec. 32. Relationship to Existing Law and Policy. —

(a) The not-for-profit corporation law applies to the Corporation; provided, that if any provision of the not-for-profit corporation law conflicts with any provision of this Act, the conflicting provision of the not-for-profit law shall not apply [*315] in such case. If any provision of this Act relates to a matter embraced in the not-for-profit corporation law but is not in conflict therewith, both provisions shall apply.

(b) Nothing in this Act shall be construed to limit the right of any individual or group or class of individuals to initiate, intervene in, or otherwise participate in any proceeding before any regulatory agency or court; nor to require any petition or notification to the Corporation as a condition precedent to such right, nor to relieve any postal agency, court or other public body of any obligation, or affect its discretion to permit intervention or participation by a postal user or class of postal users in any proceeding or activity, nor to limit the right of any individual or individuals to obtain administrative or judicial review.

(c) The intervention or participation of the Corporation in a proceeding or activity shall not affect the obligation of any regulatory agency or other public body to operate in the public interest.

Sec. 33. Corrupt Practices and Conflor agent of the Corporation if the offer or gift influences, or is intended to influence, the action or judgement of the director, employee or agent of the Corporation in his or her capacity as director, delegate, employee or agent of the Corporation.

(b) No director, delegate, employee or agent of the Corporation may solicit or accept anything of monetary value form any person if their solicitation or acceptance influences, or is intended to influence, the official action or judgement of the director, employee or agent in his or her capacity as director, employee or agent of the Corporation.

(c) Any person who knowingly and willfully violates this section shall be subject to a civil penalty of not more than $ 10,000.

(d) The board of directors shall remove from any director, delegate, employee or agent of the Corporation violating the provisions of this section.

Sec. 34. Penalties. —

A violation of any provision of this Act pertaining to conduct by the Postal Service of officers or employees thereof shall be subject to a civil penalty of nor more than $ 10,000 for each violation.

[*316] Sec. 35. Construction. —

This Act, being necessary for the welfare of the United States and its inhabitants, shall be liberally construed to effect its purposes.

Sec. 36. Severability. —

If any clause, sentence, paragraph or part of this Act or the application thereof be adjudged by a court of competent jurisdiction to be invalid, such judgement shall not affect, impair or invalidate the remainder, and the application thereof, but shall be confined in its operation to the clause, sentence, paragraph or part thereof directly involved in the controversy in which such judgement shall have been rendered.

Sec. 37. Effective Date. —

This Act shall become effective on the date of its enactment.