I 

112TH CONGRESS 

1ST SESSION H. R. 3591 

To recalculate and restore retirement annuity obligations of the United States 

Postal Service, eliminate the requirement that the United States Postal 

Service pre-fund the Postal Service Retiree Health Benefits Fund, place 

restrictions on the closure of postal facilities, create incentives for innovation for the United States Postal Service, to maintain levels of postal 

service, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 7, 2011 

Mr. DEFAZIO (for himself, Mr. HINCHEY, and Ms. SLAUGHTER) introduced 

the following bill; which was referred to the Committee on Oversight and 

Government Reform, and in addition to the Committee on the Judiciary, 

for a period to be subsequently determined by the Speaker, in each case 

for consideration of such provisions as fall within the jurisdiction of the 

committee concerned 

A BILL 

To recalculate and restore retirement annuity obligations of 

the United States Postal Service, eliminate the requirement that the United States Postal Service pre-fund 

the Postal Service Retiree Health Benefits Fund, place 

restrictions on the closure of postal facilities, create incentives for innovation for the United States Postal Service, to maintain levels of postal service, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Postal Service Protec3 tion Act of 2011’’. 

4 TITLE I—RETIREMENT ANNUITY 

5 OBLIGATION RECALCULA6 TION AND RESTORATION 

7 SEC. 101. MODIFIED METHODOLOGY. 

8 (a) IN GENERAL.—Section 8348(h) of title 5, United 

9 States Code, is amended by adding at the end the fol10 lowing: 

11 ‘‘(4)(A) To the extent that a determination under 

12 paragraph (1), relating to benefits attributable to civilian 

13 employment with the United States Postal Service, is 

14 based on a provision of law described in subparagraph (C), 

15 the determination shall be made in accordance with that 

16 provision and any otherwise applicable provisions of law, 

17 subject to the following: 

18 ‘‘(i) The ‘average pay’ used in the case of any 

19 individual shall be a single amount, determined in 

20 accordance with section 8331(4), taking into account 

21 the rates of basic pay in effect for the individual 

22 during the periods of creditable service performed by 

23 the individual. Nothing in this subsection shall be 

24 considered to permit or require— 


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1 ‘‘(I) 1 determination of average pay with 

2 respect to service performed with the United 

3 States Postal Service; and 

4 ‘‘(II) a separate determination of average 

5 pay with respect to service performed with its 

6 predecessor entity in function. 

7 ‘‘(ii) In determining the portion of an annuity 

8 attributable to civilian employment with the United 

9 States Postal Service, with respect to any period of 

10 employment with the United States Postal Service 

11 that follows any other period of employment cred12 itable under section 8332 (without regard to whether 

13 the employment was with an entity referred to in 

14 clause (i)(II)), the total service of an employee for 

15 purposes of any provision of law described in sub16 paragraph (C) shall be the sum of— 

17 ‘‘(I) any period of employment with the 

18 United States Postal Service; and 

19 ‘‘(II) any period of employment creditable 

20 under section 8332 that precedes the period de21 scribed in subclause (I). 

22 ‘‘(B)(i) Not later than 6 months after the date of en23 actment of this paragraph, the Office shall determine (or, 

24 if applicable, redetermine) the amount of the Postal sur25 plus or supplemental liability as of the close of the fiscal 


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1 year most recently ending before that date of enactment, 

2 in conformance with the methodology required under sub3 paragraph (A). 

4 ‘‘(ii)(I) If the result of the determination or redeter5 mination under clause (i) is a surplus, the Office may 

6 transfer the amount of the surplus, or any portion of the 

7 amount of the surplus, at the request of the United States 

8 Postal Service, to— 

9 ‘‘(aa) the Postal Service Retiree Health Bene10 fits Fund established under section 8909a; and 

11 ‘‘(bb) the Postal Service Fund established 

12 under section 2003 of title 39. 

13 ‘‘(II) If a determination or redetermination under 

14 clause (i) for a fiscal year is made before a determination 

15 under paragraph (2)(B) is made with respect to the fiscal 

16 year, the Office may not make a determination under 

17 paragraph (2)(B) with respect to the fiscal year. 

18 ‘‘(C) The provisions of law described in this subpara19 graph are— 

20 ‘‘(i) the first sentence of section 8339(a); and 

21 ‘‘(ii) section 8339(d)(1).’’. 

22 (b) COORDINATION PROVISIONS.— 

23 (1) DETERMINATION OF AMOUNT PAYABLE.— 

24 Section 8909a of title 5, United States Code, is 

25 amended by adding at the end the following: 


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1 ‘‘(e) Notwithstanding any other provision of law, the 

2 Office shall determine the amount payable by the Postal 

3 Service under subsection (d) in any fiscal year ending on 

4 or before September 30, 2013, without regard to the re5 quirements under section 8348(h)(4).’’. 

6 (2) RULE OF CONSTRUCTION.—Nothing in this 

7 Act shall affect the amount of any benefits otherwise 

8 payable from the Civil Service Retirement and Dis9 ability Fund to any individual. 

10 (c) TECHNICAL AND CONFORMING AMENDMENT.— 

11 The heading for section 8909a of title 5, United States 

12 Code, is amended by striking ‘‘Benefit’’ and inserting 

13 ‘‘Benefits’’. 

14 SEC. 102. RELATING TO A POSTAL SURPLUS. 

15 Section 8348(h)(2)(C) of title 5, United States Code, 

16 is amended— 

17 (1) by inserting ‘‘2021,’’ after ‘‘2015,’’; and 

18 (2) by striking ‘‘if the result is’’ and all that 

19 follows through ‘‘terminated.’’ and inserting the fol20 lowing: ‘‘if the result is a surplus— 

21 ‘‘(i) that amount, or any portion of that 

22 amount, may be transferred at the request of the 

23 United States Postal Service to— 

24 ‘‘(I) the Postal Service Retiree Health 

25 Benefits Fund; and 


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1 ‘‘(II) the Postal Service Fund established 

2 under section 2003 of title 39; and 

3 ‘‘(ii) any prior amortization schedule for pay4 ments shall be terminated.’’. 

5 SEC. 103. TREATMENT OF CERTAIN SURPLUS RETIREMENT 

6 CONTRIBUTIONS. 

7 Section 8423(b) of title 5, United States Code, is 

8 amended— 

9 (1) by redesignating paragraph (5) as para10 graph (6); and 

11 (2) by inserting after paragraph (4) the fol12 lowing: 

13 ‘‘(5) If, for fiscal year 2010, the amount computed 

14 under paragraph (1)(B) is less than zero (in this section 

15 referred to as ‘surplus postal contributions’), the amount 

16 of the surplus postal contributions, or any portion of the 

17 amount, may be transferred at the request of the United 

18 States Postal Service to— 

19 ‘‘(A) the Postal Service Retiree Health Benefits 

20 Fund established under section 8909a; 

21 ‘‘(B) the Postal Service Fund established under 

22 section 2003 of title 39; 

23 ‘‘(C) the Employees’ Compensation Fund estab24 lished under section 8147; and 


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1 ‘‘(D) the United States Postal Service for the 

2 repayment of any obligation issued under section 

3 2005 of title 39.’’. 

4 SEC. 104. ELIMINATION OF REQUIREMENT TO PRE-FUND 

5 THE POSTAL SERVICE RETIREE HEALTH BEN6 EFITS FUND. 

7 (a) IN GENERAL.—Section 8909a of title 5, United 

8 States Code, as amended by this Act, is amended— 

9 (1) in subsection (d)— 

10 (A) by striking paragraph (3); and 

11 (B) by redesignating paragraphs (4) 

12 through (6) as paragraphs (3) through (5), re13 spectively; and 

14 (2) by adding at the end the following: 

15 ‘‘(f) Nothing in this section shall be construed to re16 quire the Postal Service to pay any amount into the Postal 

17 Service Retiree Health Benefits Fund established under 

18 section 8909a.’’. 

19 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

20 Section 803(b)(1)(A) of the Postal Accountability and En21 hancement Act (5 U.S.C. 8909a note) is amended by 

22 striking ‘‘8909a(d)(5)’’ and inserting ‘‘8909a(d)(4)’’. 


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1 SEC. 105. EFFECTIVE DATE; RULE OF CONSTRUCTION. 

2 (a) IN GENERAL.—This title and the amendments 

3 made by this title shall take effect on the date of enact4 ment of this Act. 

5 (b) INTENT OF CONGRESS.—It is the intent of Con6 gress that this title apply with respect to the allocation 

7 of past, present, and future benefit liabilities between the 

8 United States Postal Service and the Treasury of the 

9 United States. 

10 (c) RULE OF CONSTRUCTION.—Nothing in this Act 

11 or the amendments made by this Act shall be construed 

12 to prohibit the Postal Service from paying any amount of 

13 surplus contributions to the Civil Service Retirement and 

14 Disability Fund and the Federal Employees’ Retirement 

15 System into— 

16 (1) the Postal Service Retiree Health Benefits 

17 Fund established under section 8909a of title 5, 

18 United States Code; and 

19 (2) the Postal Service Fund established under 

20 section 2003 of title 39, United States Code. 

21 TITLE II—RESTRICTIONS ON 

22 POSTAL FACILITY CLOSURES 

23 SEC. 201. MODIFIED PROCEDURES. 

24 (a) IN GENERAL.—Section 404(d) of title 39, United 

25 States Code, is amended by striking ‘‘(d)(1)’’ and all that 

26 follows through paragraph (4) and inserting the following: 


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1 ‘‘(d)(1) Before making a determination under sub2 section (a)(3) to close or consolidate a postal facility, the 

3 Postal Service shall— 

4 ‘‘(A) conduct an investigation to assess the 

5 need for the proposed closure or consolidation; and 

6 ‘‘(B) ensure that each person served by the 

7 postal facility has an opportunity to present views by 

8 providing appropriate notice— 

9 ‘‘(i) to each person by mail; and 

10 ‘‘(ii) by publication in a newspaper of gen11 eral circulation in the area in which each person 

12 resides. 

13 ‘‘(2) In conducting an investigation under paragraph 

14 (1)(A) and determining whether to close or consolidate a 

15 postal facility under subsection (a)(3), the Postal Serv16 ice— 

17 ‘‘(A) shall consider— 

18 ‘‘(i) the effect the closing or consolidation 

19 would have on the community served by the 

20 postal facility; 

21 ‘‘(ii) the effect the closing or consolidation 

22 would have on employees of the Postal Service 

23 employed at the postal facility; and 

24 ‘‘(iii) whether the closing or consolidation 

25 would be consistent with the policy of the GovVerDate Mar 15 2010 00:04 Dec 14, 2011 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3591.IH H3591

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1 ernment under section 101(b), that the Postal 

2 Service shall provide a maximum degree of ef3 fective and regular postal services to rural 

4 areas, communities, and small towns where 

5 postal facilities are not self-sustaining; and 

6 ‘‘(B) may not consider compliance with any 

7 provision of the Occupational Safety and Health Act 

8 of 1970 (29 U.S.C. 651 et seq.). 

9 ‘‘(3)(A) Upon completion of an investigation under 

10 paragraph (1), the Postal Service shall make a decision, 

11 in writing, whether to proceed with the proposal to close 

12 or consolidate a postal facility, which shall include the 

13 findings of the Postal Service with respect to each factor 

14 specified in paragraph (2)(A). 

15 ‘‘(B) Not later than 90 days before the Postal Service 

16 makes a final determination under this subsection, the 

17 Postal Service shall— 

18 ‘‘(i) post notice of the decision and findings 

19 under subparagraph (A) in a prominent place in 

20 each postal facility that would be affected by the 

21 closing or consolidation; and 

22 ‘‘(ii) send notice of each posting under clause 

23 (i) by mail to each person served by the postal facil24 ity in which the notice is posted. 

25 ‘‘(C) Notice under subparagraph (B) shall include— 


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1 ‘‘(i) a statement as follows: ‘This is notice of a 

2 proposal to lllll this postal facility. A final 

3 determination will not be made before the end of the 

4 90-day period beginning on the date on which this 

5 notice is first posted.’, with the blank space being 

6 filled in with ‘close’ or ‘consolidate’ (whichever is ap7 propriate), and with instructions for how any inter8 ested person may submit comments; 

9 ‘‘(ii) a brief summary of the findings of the 

10 Postal Service with respect to the factors specified in 

11 paragraph (2)(A); and 

12 ‘‘(iii) the amount of cost savings the Postal 

13 Service estimates the Postal Service will realize from 

14 the closing or consolidation, in the first year fol15 lowing the date of the closing or consolidation, to16 gether with an explanation of the assumptions and 

17 methodologies used in making the estimate. 

18 ‘‘(4) The Postal Service shall make a final determina19 tion to close or consolidate a postal facility in writing after 

20 taking into consideration any comments received during 

21 the 90-day period described under paragraph (3). The 

22 Postal Service shall take no action to close or consolidate 

23 a postal facility before the date that is 60 days after the 

24 date on which the Postal Service— 


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1 ‘‘(A) posts a copy of the final determination in 

2 a prominent location in each affected postal facility; 

3 and 

4 ‘‘(B) sends to each person served by the postal 

5 facility— 

6 ‘‘(i) a notice of the determination; and 

7 ‘‘(ii) notice of any appeal rights available 

8 with respect to the determination.’’. 

9 (b) DE NOVO REVIEW.—Section 404(d)(5) of title 

10 39, United States Code, is amended— 

11 (1) by striking ‘‘post office’’ and inserting 

12 ‘‘postal facility’’; and 

13 (2) by striking ‘‘The Commission shall set 

14 aside’’ and all that follows through ‘‘final disposition 

15 of the appeal.’’ and inserting the following: ‘‘The 

16 Commission shall review de novo the determination 

17 of the Postal Service. In conducting a review de 

18 novo, the Commission shall consider the factors de19 scribed in paragraph (2)(A). If the Commission 

20 finds fault with a determination of the Postal Serv21 ice, the Commission shall suspend the effectiveness 

22 of the determination of the Postal Service.’’. 

23 (c) EXCEPTION; CALCULATION OF ACTUAL COST

24 SAVINGS.—Section 404(d) of title 39, United States Code, 

25 is amended by adding at the end the following: 


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1 ‘‘(7)(A) Paragraphs (1) through (6) shall not apply 

2 in the case of a closing or consolidation which occurs by 

3 reason of an emergency suspension, as described in section 

4 241.3 of title 39, Code of Federal Regulations, or any suc5 cessor thereto. 

6 ‘‘(B) For purposes of this paragraph, the term ‘emer7 gency suspension’ does not, in the case of a leased facility, 

8 include the termination or cancellation of the lease by a 

9 party other than the Postal Service. 

10 ‘‘(8)(A) Not later than 2 years after the date of the 

11 closing or consolidation of any postal facility occurring 

12 after the date of enactment of this paragraph, the Inspec13 tor General shall determine the amount of the cost savings 

14 realized by the Postal Service from the closing or consoli15 dation for the first year following the closing or consolida16 tion. 

17 ‘‘(B) The Inspector General shall submit to the Post18 master General and to Congress— 

19 ‘‘(i) a report for each postal facility for which 

20 the Inspector made a determination of cost savings 

21 under subparagraph (A) during the preceding year 

22 that includes— 

23 ‘‘(I) the amount of the cost savings deter24 mined to be realized with respect to each clos25 ing or consolidation of a postal facility, together 


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1 with an explanation of the assumptions and 

2 methodologies used in making the determina3 tion; 

4 ‘‘(II) a comparison of— 

5 ‘‘(aa) the cost savings determined by 

6 the Inspector General; and 

7 ‘‘(bb) the estimates provided by the 

8 Postal Service under paragraph (3)(C)(iii); 

9 and 

10 ‘‘(III) an explanation of the reasons for 

11 any differences between the determination of 

12 the Inspector General and the estimates of the 

13 Postal Service, together with recommendations 

14 for any legislation or administrative action that 

15 the Inspector General considers appropriate to 

16 provide for more accurate estimates; and 

17 ‘‘(ii) an annual report with respect to all the 

18 postal facilities for which the Inspector made a de19 termination of cost savings under subparagraph (A) 

20 that includes the information required under clause 

21 (i).’’. 

22 SEC. 202. DEFINITIONS. 

23 Section 404(d) of title 39, United States Code, as 

24 amended by this Act, is amended by adding at the end 

25 the following: 


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1 ‘‘(9) In this subsection— 

2 ‘‘(A) the term ‘postal facility’ includes an office, 

3 branch, station, or other facility which— 

4 ‘‘(i) is operated by the Postal Service; and 

5 ‘‘(ii) provides services to persons described 

6 in subparagraph (B); and 

7 ‘‘(B) any reference to the persons served by a 

8 postal facility shall include a postal customer receiv9 ing mail delivery service from the postal facility, a 

10 resident of a ZIP code served by the postal facility, 

11 a postal customer having a post office box at the 

12 postal facility, and any relevant local government of13 ficial as defined by the Postal Service by rule.’’. 

14 TITLE III—INCENTIVES FOR 

15 INNOVATION 

16 SEC. 301. AUTHORITY TO OFFER NONPOSTAL SERVICES 

17 AND PRODUCTS. 

18 (a) SPECIFIC POWER.—Section 404(a) of title 39, 

19 United States Code, is amended— 

20 (1) in paragraph (7), by striking ‘‘and’’ at the 

21 end; 

22 (2) in paragraph (8), by striking the period and 

23 inserting ‘‘; and’’; and 

24 (3) by adding at the end the following: 


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1 ‘‘(9) to provide nonpostal services and products 

2 in accordance with subsection (e).’’. 

3 (b) NONPOSTAL SERVICES AND PRODUCTS.—Section 

4 404(e) is amended to read as follows: 

5 ‘‘(e)(1) The Postal Service may provide any nonpostal 

6 service or product in a manner consistent with the public 

7 interest. 

8 ‘‘(2) Not later than 90 days before providing a non9 postal service or product that the Postal Service did not 

10 provide before the date of enactment of this subsection, 

11 the Postal Service shall request an advisory opinion from 

12 the Postal Regulatory Commission that evaluates the ex13 tent to which the provision of that nonpostal service or 

14 product— 

15 ‘‘(A) would use the processing, transportation, 

16 delivery, retail network, technology, or other re17 sources of the Postal Service; and 

18 ‘‘(B) would be consistent with the public inter19 est. 

20 ‘‘(3) Not later than 45 days after the date on which 

21 the Postal Regulatory Commission receives a request 

22 under paragraph (2), the Postal Regulatory Commission 

23 shall— 

24 ‘‘(A) issue an advisory opinion to the Postal 

25 Service concerning the request; and 


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1 ‘‘(B) transmit a copy of the advisory opinion, 

2 together with the original request, to— 

3 ‘‘(i) the Committee on Oversight and Gov4 ernment Reform of the House of Representa5 tives; and 

6 ‘‘(ii) the Committee on Homeland Security 

7 and Governmental Affairs of the Senate. 

8 ‘‘(4) In this title, the term ‘nonpostal service or prod9 uct’ means any service or product other than a postal serv10 ice, including— 

11 ‘‘(A) check-cashing services; 

12 ‘‘(B) technology and media services; 

13 ‘‘(C) warehousing and logistics; 

14 ‘‘(D) facility leasing; 

15 ‘‘(E) public Internet access services; 

16 ‘‘(F) driver licensing; 

17 ‘‘(G) vehicle registration; 

18 ‘‘(H) hunting and fishing licensing; 

19 ‘‘(I) notary services; and 

20 ‘‘(J) voter registration. 

21 ‘‘(5) The Postal Service may enter into a contract 

22 with a State or local agency to provide a nonpostal service 

23 or product authorized under this subsection.’’. 

24 SEC. 302. WINE AND BEER SHIPPING. 

25 (a) MAILABILITY.— 


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1 (1) NONMAILABLE ARTICLES.—Section 1716(f) 

2 of title 18, United States Code, is amended by strik3 ing ‘‘mails’’ and inserting ‘‘mails, except to the ex4 tent that the mailing is allowable under section 

5 3001(p) of title 39’’. 

6 (2) INTOXICANTS.—Section 1154(a) of title 18, 

7 United States Code, is amended, by inserting ‘‘or, 

8 with respect to the mailing of wine or malt bev9 erages, to the extent allowed under section 3001(p) 

10 of title 39’’ after ‘‘mechanical purposes’’. 

11 (b) REGULATIONS.—Section 3001 of title 39, United 

12 States Code, is amended by adding at the end the fol13 lowing: 

14 ‘‘(p)(1) Wine or malt beverages shall be considered 

15 mailable if mailed— 

16 ‘‘(A) by a licensed winery or brewery, in accord17 ance with applicable regulations under paragraph 

18 (2); and 

19 ‘‘(B) in accordance with the law of the State, 

20 territory, or district of the United States where the 

21 addressee or duly authorized agent takes delivery. 

22 ‘‘(2) The Postal Service shall prescribe such regula23 tions as may be necessary to carry out this subsection, 

24 including regulations providing that— 


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1 ‘‘(A) the mailing shall be by a means estab2 lished by the Postal Service to ensure direct delivery 

3 to the addressee or a duly authorized agent at a 

4 postal facility; 

5 ‘‘(B) the addressee (and any duly authorized 

6 agent) shall be an individual at least 21 years of 

7 age, and shall present a valid, government-issued 

8 photo identification at the time of delivery; 

9 ‘‘(C) the wine or malt beverages may not be for 

10 resale or other commercial purpose; and 

11 ‘‘(D) the winery or brewery involved shall— 

12 ‘‘(i) certify in writing to the satisfaction of 

13 the Postal Service, through a registration proc14 ess administered by the Postal Service, that the 

15 mailing is not in violation of any provision of 

16 this subsection or regulation prescribed under 

17 this subsection; and 

18 ‘‘(ii) provide any other information or af19 firmation that the Postal Service may require, 

20 including with respect to the prepayment of 

21 State alcohol beverage taxes. 

22 ‘‘(3) For purposes of this subsection— 

23 ‘‘(A) a winery shall be considered to be licensed 

24 if that winery holds an appropriate basic permit 

25 issued— 


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1 ‘‘(i) under the Federal Alcohol Administra2 tion Act (27 U.S.C. 201 et seq.); and 

3 ‘‘(ii) under the law of the State in which 

4 the winery is located; and 

5 ‘‘(B) a brewery shall be considered to be li6 censed if that brewery— 

7 ‘‘(i) possesses a notice of registration and 

8 bond approved by the Alcohol and Tobacco Tax 

9 and Trade Bureau of the Department of the 

10 Treasury; and 

11 ‘‘(ii) is licensed to manufacture and sell 

12 beer in the State in which the brewery is lo13 cated.’’. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall take effect on the earlier of— 

16 (1) the date on which the Postal Service issues 

17 regulations under section 3001(p) of title 39, United 

18 States Code, as amended by this section; or 

19 (2) 120 days after the date of enactment of this 

20 Act. 

21 SEC. 303. INNOVATION AND ACCOUNTABILITY. 

22 (a) IN GENERAL.—Chapter 2 of title 39, United 

23 States Code, is amended by adding at the end the fol24 lowing: 


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1 ‘‘§ 209. Innovation and accountability 

2 ‘‘(a) CHIEF INNOVATION OFFICER.—There shall be 

3 in the Postal Service a Chief Innovation Officer appointed 

4 by the Postmaster General who shall have proven expertise 

5 and a record of success in— 

6 ‘‘(1) the postal and shipping industry; 

7 ‘‘(2) innovative product research and develop8 ment; 

9 ‘‘(3) marketing brand strategy; 

10 ‘‘(4) emerging communications technology; or 

11 ‘‘(5) business process management. 

12 ‘‘(b) DUTIES.—The Chief Innovation Officer shall— 

13 ‘‘(1) lead the development of innovative non14 postal products and services that maximize the rev15 enue of the Postal Service; 

16 ‘‘(2) develop innovative postal products and 

17 services, particularly products and services that use 

18 emerging information technologies, to maximize the 

19 revenue of the Postal Service; 

20 ‘‘(3) supervise the implementation of products 

21 and services described in paragraphs (1) and (2); 

22 and 

23 ‘‘(4) monitor the performance of products and 

24 services described in paragraphs (1) and (2) and 

25 modify the products and services as needed to ad26 dress changing market trends. 


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1 ‘‘(c) CONSIDERATIONS.—The Chief Innovation Office 

2 shall take into consideration comments or advisory opin3 ions, if applicable, issued by the Postal Regulatory Com4 mittee before the initial sale of innovative postal or non5 postal products and services. 

6 ‘‘(d) DESIGNATION.— 

7 ‘‘(1) DEADLINE.—As soon as practicable after 

8 the date of enactment of this section, and not later 

9 than 90 days after the date of enactment of this sec10 tion, the Postmaster General shall appoint a Chief 

11 Innovation Officer. 

12 ‘‘(2) CONDITION.—The Chief Innovation Offi13 cer may not, while serving as Chief Innovation Offi14 cer, hold any other office or position in the Postal 

15 Service. 

16 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

17 this section shall be construed to prohibit an indi18 vidual who holds another office or position in the 

19 Postal Service at the time the individual is appointed 

20 Chief Innovation Officer from serving as the Chief 

21 Innovation Officer under this section. 

22 ‘‘(e) ADVISORY COMMISSION.— 

23 ‘‘(1) ESTABLISHMENT.—There is established 

24 the Postal Innovation Advisory Commission (herein25 after the ‘Commission’). 


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1 ‘‘(2) MEMBERSHIP.— 

2 ‘‘(A) IN GENERAL.—The Commission shall 

3 be composed of— 

4 ‘‘(i) the Chief Innovation Officer es5 tablished under subsection (a), who shall 

6 serve as Chairperson of the Commission; 

7 and 

8 ‘‘(ii) 5 other members as the Postal 

9 Regulatory Commission shall appoint, of 

10 whom— 

11 ‘‘(I) 1 member shall have exper12 tise in labor; 

13 ‘‘(II) 1 member shall have exper14 tise in small business issues; 

15 ‘‘(III) 1 member shall have ex16 pertise in consumer protection; 

17 ‘‘(IV) 1 member shall have exper18 tise in small periodicals and news19 papers; and 

20 ‘‘(V) 1 member shall have exper21 tise in the postal industry. 

22 ‘‘(B) PERIOD OF APPOINTMENT.—Mem23 bers shall be appointed for 5-year terms. 

24 ‘‘(C) VACANCIES.—Any vacancy in the 

25 Commission shall not affect the powers of the 


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1 Commission, but shall be filled in the same 

2 manner as the original appointment. 

3 ‘‘(D) MEETINGS.—The Commission shall 

4 meet at the call of the Chairperson. 

5 ‘‘(E) QUORUM.—A majority of the mem6 bers of the Commission shall constitute a 

7 quorum, but a lesser number of members may 

8 hold hearings. 

9 ‘‘(3) DUTIES OF THE COMMISSION.— 

10 ‘‘(A) STUDY.—The Commission shall 

11 study— 

12 ‘‘(i) additional postal and nonpostal 

13 services that the Postal Service may offer 

14 to raise revenue; and 

15 ‘‘(ii) services that postal services in 

16 foreign countries have offered to respond 

17 to the increasing demand for high-tech 

18 services, including— 

19 ‘‘(I) banking and insurance serv20 ices; 

21 ‘‘(II) communication services; 

22 ‘‘(III) physical delivery of e-mail 

23 correspondence to individuals who do 

24 not have Internet access; 


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1 ‘‘(IV) scanning physical mail and 

2 delivering that mail through e-mail; 

3 and 

4 ‘‘(V) communication through se5 cure servers. 

6 ‘‘(B) RECOMMENDATIONS.—The Commis7 sion shall generate recommendations for addi8 tional services that the Postal Service should 

9 provide based on the study conducted under 

10 subparagraph (A). 

11 ‘‘(C) REPORT.—Not later than 1 year 

12 after the date of enactment of this section, and 

13 each year thereafter, the Commission shall sub14 mit to the Postmaster General a report that 

15 contains each recommendation described under 

16 subparagraph (B) that the Commission ap17 proves by a majority vote. 

18 ‘‘(4) POWERS OF THE COMMISSION.— 

19 ‘‘(A) HEARINGS.—The Commission may 

20 hold such hearings, take such testimony, and 

21 receive such evidence as is necessary to carry 

22 out this subsection. 

23 ‘‘(B) INFORMATION FROM FEDERAL AGEN24 CIES.—The Commission may secure directly 

25 from any Federal department or agency such 


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1 information as the Commission considers nec2 essary to carry out this subsection. Upon re3 quest of the Chairperson of the Commission, 

4 the head of such department or agency shall 

5 furnish such information to the Commission. 

6 ‘‘(C) POSTAL SERVICES.—The Commission 

7 may use the United States mails in the same 

8 manner and under the same conditions as other 

9 departments and agencies of the Federal Gov10 ernment. 

11 ‘‘(D) GIFTS.—The Commission may ac12 cept, use, and dispose of gifts or donations of 

13 services or property. 

14 ‘‘(5) COMMISSION PERSONNEL MATTERS.— 

15 ‘‘(A) COMPENSATION OF MEMBERS.—Each 

16 member of the Commission who is not an offi17 cer or employee of the Federal Government (in18 cluding the Postal Service) shall be com19 pensated at a rate equal to the daily equivalent 

20 of the annual rate of basic pay prescribed for 

21 level IV of the Executive Schedule under section 

22 5315 of title 5 for each day (including travel 

23 time) during which such member is engaged in 

24 the performance of the duties of the Commis25 sion. All members of the Commission who are 


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1 officers or employees of the United States, in2 cluding the Postal Service, shall serve without 

3 compensation in addition to that received for 

4 their services as officers or employees of the 

5 United States. 

6 ‘‘(B) TRAVEL EXPENSES.—The members 

7 of the Commission shall be allowed travel ex8 penses, including per diem in lieu of subsist9 ence, at rates authorized for employees of agen10 cies under subchapter I of chapter 57 of title 5 

11 while away from their homes or regular places 

12 of business in the performance of services for 

13 the Commission. 

14 ‘‘(C) STAFF.— 

15 ‘‘(i) IN GENERAL.—The Chairperson 

16 of the Commission may, without regard to 

17 the civil service laws and regulations, ap18 point and terminate an executive director 

19 and such other additional personnel as 

20 may be necessary to enable the Commis21 sion to perform its duties. The employment 

22 of an executive director shall be subject to 

23 confirmation by the Commission. 

24 ‘‘(ii) COMPENSATION.—The Chair25 person of the Commission may fix the comVerDate Mar 15 2010 00:04 Dec 14, 2011 Jkt 019200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H3591.IH H3591

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1 pensation of the executive director and 

2 other personnel without regard to chapter 

3 51 and subchapter III of chapter 53 of 

4 title 5 relating to classification of positions 

5 and General Schedule pay rates, except 

6 that the rate of pay for the executive direc7 tor and other personnel may not exceed the 

8 rate payable for level V of the Executive 

9 Schedule under section 5316 of title 5. 

10 ‘‘(D) DETAIL OF GOVERNMENT EMPLOY11 EES.—Any Federal Government employee, in12 cluding an employee of the Postal Service, may 

13 be detailed to the Commission without reim14 bursement, and such detail shall be without 

15 interruption or loss of civil service status or 

16 privilege. 

17 ‘‘(E) PROCUREMENT OF TEMPORARY AND

18 INTERMITTENT SERVICES.—The Chairperson of 

19 the Commission may procure temporary and 

20 intermittent services under section 3109(b) of 

21 title 5 at rates for individuals that do not ex22 ceed the daily equivalent of the annual rate of 

23 basic pay prescribed for level V of the Executive 

24 Schedule under section 5316 of title 5. 


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1 ‘‘(6) PERMANENT ADVISORY COMMISSION.— 

2 Section 14 of the Federal Advisory Committee Act 

3 (5 U.S.C. App.) shall not apply to the Commission. 

4 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.— 

5 ‘‘(A) IN GENERAL.—There are authorized 

6 to be appropriated such sums as may be nec7 essary to the Commission to carry out this Act. 

8 ‘‘(B) AVAILABILITY.—Any sums appro9 priated under the authorization contained in 

10 this section shall remain available, without fis11 cal year limitation, until expended. 

12 ‘‘(f) INNOVATION STRATEGY.— 

13 ‘‘(1) IN GENERAL.—Not later than 1 year after 

14 the date of enactment of this section, the Postmaster 

15 General shall submit, at the same time the President 

16 submits the annual budget request under section 

17 1105 of title 31 for that year, and together with the 

18 report on performance under subsection (g), a com19 prehensive strategy for maximizing the revenue of 

20 the Postal Service through innovative postal and 

21 nonpostal products and services to— 

22 ‘‘(A) the Committee on Homeland Security 

23 and Governmental Affairs of the Senate; 


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1 ‘‘(B) the Committee on Oversight and Gov2 ernment Reform of the House of Representa3 tives; and 

4 ‘‘(C) the Postal Regulatory Commission. 

5 ‘‘(2) MATTERS TO BE ADDRESSED.—At a min6 imum, the strategy required by this subsection shall 

7 address— 

8 ‘‘(A) the specific innovative postal and 

9 nonpostal products and services to be developed 

10 and offered by the Postal Service, including the 

11 nature of the market demand to be satisfied by 

12 each product and service and the estimated 

13 date by which each product and service will be 

14 introduced; 

15 ‘‘(B) the cost of developing and offering 

16 each product or service; 

17 ‘‘(C) the anticipated sales volume for each 

18 product and service; 

19 ‘‘(D) the anticipated revenues and profits 

20 expected to be generated by each product and 

21 service; 

22 ‘‘(E) the likelihood of success of each prod23 uct and service and the risks associated with 

24 the development and sale of each product and 

25 service; 


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1 ‘‘(F) the trends anticipated in market con2 ditions that may affect the success of each 

3 product and service during the 5-year period 

4 following the submission of the report; and 

5 ‘‘(G) the metrics that will be used to assess 

6 the effectiveness of the innovation strategy. 

7 ‘‘(3) STRATEGY UPDATES.—The Postmaster 

8 General shall— 

9 ‘‘(A) update the strategy required under 

10 this subsection every 2 years; and 

11 ‘‘(B) submit the updated strategy, at the 

12 same time the President submits the annual 

13 budget request under section 1105 of title 31 

14 for that year, and together with the report on 

15 performance under subsection (g), to— 

16 ‘‘(i) the Committee on Homeland Se17 curity and Governmental Affairs of the 

18 Senate; 

19 ‘‘(ii) the Committee on Oversight and 

20 Government Reform of the House of Rep21 resentatives; and 

22 ‘‘(iii) the Postal Regulatory Commis23 sion. 

24 ‘‘(g) REPORT ON PERFORMANCE.— 


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1 ‘‘(1) IN GENERAL.—The Postmaster General 

2 shall submit an annual report that describes the 

3 progress of the Postal Service in implementing the 

4 strategy under this section, at the same time the 

5 President submits the annual budget request under 

6 section 1105 of title 31, to— 

7 ‘‘(A) the Committee on Homeland Security 

8 and Governmental Affairs of the Senate; 

9 ‘‘(B) the Committee on Oversight and Gov10 ernment Reform of the House of Representa11 tives; and 

12 ‘‘(C) the Postal Regulatory Commission. 

13 ‘‘(2) MATTERS TO BE ADDRESSED.—At a min14 imum, a report under this subsection shall include— 

15 ‘‘(A) the revenue generated by each prod16 uct and service developed through the strategy 

17 under this section and the costs of developing 

18 and offering each product or service for the pre19 ceding year; 

20 ‘‘(B) the total sales volume and revenue 

21 generated by each product and service on a 

22 monthly basis for the preceding year; 

23 ‘‘(C) trends in each market in which a 

24 product or service is intended to satisfy a de25 mand; 


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1 ‘‘(D) products and services identified in 

2 the strategy under this section that are to be 

3 discontinued, the date on which the discontinu4 ance will occur, and the reasons for the dis5 continuance; 

6 ‘‘(E) alterations in products and services 

7 identified in the strategy under this section that 

8 will be made to address changing market condi9 tions, and an explanation of how the alterations 

10 will ensure the success of the products and 

11 services; and 

12 ‘‘(F) the performance of the strategy 

13 under this section according to the metrics 

14 identified under subsection (e)(2)(G). 

15 ‘‘(h) STUDY AND REPORT BY COMPTROLLER GEN16 ERAL.— 

17 ‘‘(1) STUDY.— 

18 ‘‘(A) IN GENERAL.—The Comptroller Gen19 eral of the United States shall conduct a study 

20 on the implementation of the strategy under 

21 this section that assesses the effectiveness of 

22 the Postal Service in identifying, developing, 

23 and selling innovative postal and nonpostal 

24 products and services. 


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1 ‘‘(B) CONTENTS.—The study under sub2 paragraph (A) shall include— 

3 ‘‘(i) an audit of the costs of devel4 oping each innovative postal and nonpostal 

5 product and service developed or offered by 

6 the Postal Service; 

7 ‘‘(ii) the sales volume of each product 

8 and service; 

9 ‘‘(iii) the revenues and profits gen10 erated by each product and service; and 

11 ‘‘(iv) the likelihood of continued suc12 cess of each product and service. 

13 ‘‘(2) REPORT.—Not later than 3 years after the 

14 date of enactment of this section, the Comptroller 

15 General shall submit a report concerning the study 

16 under paragraph (1) to— 

17 ‘‘(A) the Committee on Homeland Security 

18 and Governmental Affairs of the Senate; and 

19 ‘‘(B) the Committee on Oversight and Gov20 ernment Reform of the House of Representa21 tives.’’. 

22 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

23 The table of sections for chapter 2 of title 39, United 

24 States Code, is amended by adding at the end the fol25 lowing: 

‘‘209. Innovation and accountability.’’. 


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1 TITLE IV—MAINTAINING LEVELS 

2 OF SERVICE 

3 SEC. 401. SIX-DAY DELIVERY. 

4 Section 404a(a) of title 39, United States Code, is 

5 amended— 

6 (1) in paragraph (2), by striking ‘‘or’’ at the 

7 end; 

8 (2) in paragraph (3), by striking the period and 

9 inserting ‘‘; or’’; and 

10 (3) by adding at the end the following: 

11 ‘‘(4) reduce the frequency of the delivery of 

12 mail to fewer than 6 days each week.’’. 

13 SEC. 402. SERVICE STANDARDS FOR MARKET-DOMINANT 

14 PRODUCTS. 

15 Section 3691 of title 39, United States Code, is 

16 amended by adding at the end the following: 

17 ‘‘(e) RESTRICTION ON AUTHORITY.—Notwith18 standing subsections (a), (b), and (c), the Postal Service 

19 may not increase the expected delivery time for market20 dominant products required under part 121 of title 39, 

21 Code of Federal Regulations, as in effect on March 2, 

22 2010.’’. 

Æ 


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