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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9839 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 9839

To amend title 39, United States Code, to modernize the Postal Service 
                  regulations, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 25, 2024

 Mr. LaTurner introduced the following bill; which was referred to the 
               Committee on Oversight and Accountability

_______________________________________________________________________

                                 A BILL

 
To amend title 39, United States Code, to modernize the Postal Service 
                  regulations, and for other purposes.

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

SECTION 1. MODERNIZING POSTAL REGULATIONS.

    (a) Cost and Efficiency Reforms.--
            (1) In general.--Section 3622(d) of title 39, United States 
        Code, is amended--
                    (A) in paragraph (1)(A), by striking ``to be set 
                by'' and all that follows and inserting the following: 
                ``equal to the amount that is the difference between--
                            ``(i) the percentage change in the Consumer 
                        Price Index for All Urban Consumers unadjusted 
                        for seasonal variation over the most recent 
                        available 12-month period preceding the date 
                        the Postal Service files notice of its 
                        intention to increase rates; and
                            ``(ii) a percentage determined by the 
                        Commission to be sufficient to ensure that the 
                        rate of cost growth of the Postal Service will 
                        be significantly less than the percentage 
                        change described in clause (i) (but not less 
                        than zero);''; and
                    (B) by amending paragraph (3) to read as follows:
            ``(3) Revisions.--In revising the system as permitted by 
        subsection (a), the Postal Regulatory Commission shall make no 
        change which would cause the revised system to be inconsistent 
        with this section.''.
            (2) Regulations.--Not later than 60 days after the date of 
        the enactment of this Act, the Postal Regulatory Commission 
        shall issue such regulations as are necessary to carry out 
        section 3622(d)(1)(A) of title 39, United States Code, as 
        amended by this subsection.
    (b) Sanctions for Certain Failures of Service.--
            (1) In general.--Subchapter VII of chapter 36 of title 39, 
        United States Code, is amended by adding at the end the 
        following new section:
``Sec. 3693. Sanctions.
    ``(a) In General.--If, pursuant to section 3653 or a complaint 
proceeding conducted pursuant to section 3662, the Postal Regulatory 
Commission determines that the Postal Service failed to meet a target 
established under section 3692 and that such failure is a covered 
failure, the Commission may reduce the maximum amount by which the 
Postal Service may adjust the rates for the market-dominant products 
affected by such failure under section 3622, except that such reduction 
may not cause such maximum amount to be less than zero. In making such 
determination, the Commission shall consider evidence of losses 
incurred by users of the product or products concerned as a result of 
the failure.
    ``(b) Applicability.--
            ``(1) In general.--A reduction under subsection (a) to the 
        maximum amount by which the Postal Service may adjust the rates 
        for a market-dominant product under section 3622 shall apply 
        only with respect to--
                    ``(A) the first implementation of such an 
                adjustment for such market-dominant product occurring 
                during the period beginning on the date on which the 
                Postal Regulatory Commission makes such reduction and 
                ending on the date on which Commission determines that 
                the Postal Service is meeting the target established 
                under section 3692 with respect to which the Commission 
                made such reduction; and
                    ``(B) each subsequent implementation of such an 
                adjustment for such market-dominant product occurring 
                during such period to the extent determined appropriate 
                by the Commission.
            ``(2) Subsequent implementation determination.--In making 
        the determination described in paragraph (1)(B) with respect to 
        a reduction for a failure described in subsection (a), the 
        Postal Regulatory Commission shall consider evidence of losses 
        incurred by users of each product affected by such failure.
    ``(c) Covered Failure Defined.--In this section, the term `covered 
failure' means a failure to meet a target established under section 
3692--
            ``(1) that is not the result of a natural disaster or 
        another disruptive event the cause of which was outside the 
        control of the Postal Service;
            ``(2) that has persisted for a material period of time; and
            ``(3) with respect to which the Postal Service does not 
        have a credible plan for achieving and maintaining performance 
        sufficient to meet the targeted level within a reasonable 
        time.''.
            (2) Clerical amendment.--The table of sections for chapter 
        36 of title 39, United States Code, is amended by inserting 
        after the item relating to section 3692 the following:

``3693. Sanctions.''.
    (c) Improving Change-in-Service Procedures.--Section 3661 of title 
39, United States Code, is amended--
            (1) in subsection (b)--
                    (A) by striking ``When the'' and insert ``(1) When 
                the'';
                    (B) by striking ``advisory opinion'' and inserting 
                ``a decision''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(2)(A) In the absence of a decision with respect to a 
        proposal under paragraph (1), if the Commission determines that 
        a plan or initiative of the Postal Service clearly indicates 
        the need for a change described in such paragraph but such plan 
        or initiative does explicitly make such a change a purpose or 
        goal of such plan or initiative, the Commission shall order the 
        Postal Service to explain why the Postal Service determined 
        that the Postal Service did not need to submit a proposal to 
        the Commission under such paragraph with respect to such plan 
        or initiative.
            ``(B) An order under subparagraph (A) pursuant to a 
        determination of the Commission described in such subparagraph 
        shall include an explanation of the reasoning for such 
        determination.
            ``(C)(i) If the Commission determines that the explanation 
        of the Postal Service provided pursuant to subparagraph (A) is 
        not sufficient to support the determination of the Postal 
        Service that the Postal Service did not need to submit a 
        proposal to the Commission under paragraph (1) with respect to 
        a plan or initiative, the Postal Service shall justify the 
        change in the nature of postal services implied by the plan or 
        initiative and, to the extent necessary, justify the underlying 
        plan or initiative in a hearing before the Commission.
            ``(ii) Each hearing under clause (i) shall be conducted in 
        accordance with sections 556 and 556 of title 5.
            ``(3) Each decision of the Postal Regulatory Commission 
        under this subsection shall be transmitted to the Governors of 
        the Postal Service. The Governors may accept the decision or, 
        by unanimous written decision, reject the decision and adopt 
        the original proposal of the Postal Service, in the case of a 
        request by the Postal Service for a decision, or approve the 
        plan or initiative found by the Commission to have required a 
        decision under paragraph (2). The decision of the Governors 
        shall be a final order for purposes of section 3663 of this 
        title. If the Governors have not acted upon a Commission 
        decision within 60 days of receiving it, the Commission 
        decision will be deemed a final order for purposes of section 
        3663 of this title.''; and
            (2) in subsection (c)--
                    (A) by inserting ``designated pursuant to section 
                505 of this title'' after ``officer of the 
                Commission''; and
                    (B) by striking ``his judgment'' and inserting 
                ``the judgment of such Commissioner''.
    (d) One Rate Increase Annually.--Section 3622(d)(1)(B) of title 39, 
United States Code, is amended by inserting after ``amounts'' the 
following: ``, except that rates may not change more frequently than 
once every 12 months''.
    (e) Limit on Underwater Surcharges.--Section 3622(d)(2) of title 
39, United States Code, is amended by adding at the end the following 
new subparagraph:
                    ``(D) Use of rate authority for non-compensatory 
                classes.--
                            ``(i) Limitation.--Notwithstanding 
                        paragraph (1)(A), the Commission may authorize 
                        the Postal Service to increase the rates for a 
                        non-compensatory class in excess of annual 
                        limitation under paragraph (1)(A) if--
                                    ``(I) the change in the 
                                attributable cost (as such term is 
                                defined in section 3631) per piece of 
                                mail for such class does not exceed the 
                                annual limitation under paragraph 
                                (1)(A), as determined using year-to-
                                year comparable costing methodologies;
                                    ``(II) in the immediately preceding 
                                fiscal year, the Postal Service has--
                                            ``(aa) pursuant to section 
                                        3652 and without the use of any 
                                        proxy data not approved by the 
                                        Commission, directly measured 
                                        and reported the compliance of 
                                        the Postal Service with the 
                                        targets established under 
                                        section 3692 for each product 
                                        in such class for such fiscal 
                                        year; and
                                            ``(bb) met each such target 
                                        for such fiscal year; and
                                    ``(III) no target described in 
                                subclause (II) for the immediately 
                                preceding fiscal year was reduced from 
                                the preceding fiscal year.
                            ``(ii) Non-compensatory class defined.--In 
                        this subparagraph, the term `non-compensatory 
                        class' means a class of mail for which the 
                        attributable costs (as defined in section 
                        3631(b)) of the Postal Service exceed revenues 
                        of the Postal Service attributable to such 
                        class of mail.''.
    (f) Case-Specific Objectives.--Section 3622 of title 39, United 
States Code, is amended--
            (1) in subsection (b), in the matter preceding paragraph 
        (1), by inserting ``, and all of which shall be applied to each 
        class or type of mail service and product'' after ``others''; 
        and
            (2) in subsection (c), in the matter preceding paragraph 
        (1), by inserting after ``such system,'' the following: ``or 
        when evaluating whether a class or type of mail service or 
        product complies with the applicable provisions of this chapter 
        and the regulations issues under such provisions,''.
    (g) Retained Earnings From Cost Savings.--Section 3622(b)(5) of 
title 39, United States Code, is amended by inserting after ``retained 
earnings'' the following: ``resulting from improvements in efficiency 
or reductions in cost only''.
    (h) Office of the Customer Advocate.--
            (1) In general.--Section 505 of title 39, United States 
        Code, is amended to read as follows:
``Sec. 505. Office of the Customer Advocate
    ``(a) In General.--The Postal Regulatory Commission shall establish 
in the Postal Regulatory Commission an Office of the Customer Advocate 
(in this section referred to as the `Office').
    ``(b) Representation.--
            ``(1) In general.--The Office shall represent the interests 
        of the general public in all public proceedings of the 
        Commission, including the interests of customers of market-
        dominant products and classes.
            ``(2) Rights and limits.--
                    ``(A) In general.--The Office--
                            ``(i) shall have the same right as any 
                        interested person to lodge a complaint with or 
                        petition the Commission, or otherwise seek to 
                        have the Commission initiate a public 
                        proceeding, including rulemakings; and
                            ``(ii) is subject to the same ex parte 
                        rules and limitations as any other litigant 
                        with respect to communication with the 
                        Commission, Commissioners, and the advisory 
                        staff of the Commission.
                    ``(B) Represent conflicting interest.--
                            ``(i) In general.--The Office may represent 
                        conflicting interests of the general public in 
                        a public proceeding of the Commission to the 
                        extent that the head of the Office determines 
                        necessary for the Office to effectively 
                        represent the interests of the general public 
                        in such proceeding.
                            ``(ii) Separate representatives.--If the 
                        Office is representing conflicting interests of 
                        the general public in a public proceeding of 
                        the Commission, the head of the Office shall 
                        ensure that such conflicting interests are 
                        represented by different individuals to the 
                        extent and in such manner as the head of the 
                        Office determines necessary for the Office to 
                        effectively represent the interests of the 
                        general public in such proceeding.
            ``(3) Office autonomy.--The Commission may not terminate or 
        otherwise take adverse employment action against any employee 
        of or individual detailed to the Office based on the 
        representation of the interests of the general public by such 
        employee or detailee as an employee of or detailee to the 
        Office, respectively, in a public proceeding of the Commission, 
        except for cause.
    ``(c) Research Authority.--The Office may--
            ``(1) conduct research and policy development for the 
        purposes of representing the interests of the general public, 
        including research and policy development that is unrelated to 
        a specific proceeding of the Commission; and
            ``(2) subject to the availability of funds, obtain the 
        temporary or intermittent services of experts or consultants 
        for such purposes.
    ``(d) Outside Consultation.--The Office shall consult with outside 
persons and organizations whose postal interests are relevant to the 
mission of the Office, including those persons and organizations that 
are actual or potential litigants before the Commission.
    ``(e) Rate and Classification Inquiry.--The Office shall inquire 
into the rates and classifications of competitive products only to the 
extent necessary to evaluate compliance with sections 3622(b)(8) and 
3622(b)(9) of this title, subchapter II of chapter 36 of this title, 
and the regulations issued under such subchapter.
    ``(f) Office Staff.--The Commission shall ensure that, to the 
extent practicable, the Office has employees of a sufficient quantity 
and quality for the Office to effectively carry out the 
responsibilities of the Office under this section, including by 
maximizing the duration of the detail of individuals detailed to the 
Office.''.
            (2) Clerical amendment.--The table of sections for chapter 
        5 of title 39, United States Code, is amended by striking the 
        item relating to section 505 and inserting the following:

``505. Office of the Customer Advocate.''.
    (i) Complaint Process Improvement.--Section 3662 of title 39, 
United States Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A)--
                                    (I) by striking ``The Postal'' and 
                                inserting ``With respect to a complaint 
                                received under subsection (a), the 
                                Postal''; and
                                    (II) by striking ``, within 90 days 
                                after receiving a complaint under 
                                subsection (a)''; and
                            (ii) in subparagraph (A)--
                                    (I) by striking clause (i) and 
                                inserting the following:
                            ``(i) begin proceedings on such complaint--
                                    ``(I) immediately after the 
                                expiration of the period described in 
                                paragraph (3) if the Commission finds 
                                that such complaint raises material 
                                issues of fact or law and no motion 
                                described in clause (ii) with respect 
                                to such complaint is filed in such 
                                period;
                                    ``(II) immediately after the 
                                Commission denies all motions described 
                                in clause (ii) with respect to such 
                                complaint that were filed during the 
                                period described in paragraph (3) if 
                                the Commission finds that such 
                                complaint raises material issues of 
                                fact or law and all such motions are 
                                denied not later than 45 days after the 
                                date on which the Commission received 
                                such complaint under such subsection; 
                                or
                                    ``(III) not later than 45 days 
                                after the date on which the Commission 
                                receives such complaint under such 
                                subsection if subclause (I) and (II) do 
                                not apply with respect to such 
                                complaint; or''; and
                                    (II) in clause (ii)--
                                            (aa) by inserting before 
                                        ``issue'' the following: ``if 
                                        the Commission finds that, 
                                        after consideration of any 
                                        motion asserting that such 
                                        complaint raises no material 
                                        issues of law or fact, that 
                                        such complaint raises no such 
                                        issue, upon making such 
                                        finding''; and
                                            (bb) by inserting ``within 
                                        45 days after receiving such 
                                        complaint under such 
                                        subsection'' after ``dismissing 
                                        the complaint''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(3) Prompt motions.--A motion described in subparagraph 
        (A)(ii) with respect to a complaint may only be filed during 
        the 25-day period beginning on date on which such complaint is 
        filed, or during such shorter period as the Postal Regulatory 
        Commission may prescribed by regulation.''; and
            (2) in subsection (c)--
                    (A) by striking ``or requiring'' and inserting 
                ``requiring''; and
                    (B) by inserting after ``competitive products'' the 
                following: ``or, upon a finding that the Postal Service 
                has unreasonably delayed the proceeding, ordering 
                reimbursement consistent with section 3681''.
    (j) Reimbursement of Unlawful Rates; Penalty for Unreasonable 
Delay.--Section 3681 of title 39, United States Code, is amended--
            (1) by striking ``No mailer'' and inserting ``(a) No 
        mailer'';
            (2) by striking ``through 3664 of this title, or is 
        superseded by a lower rate or fee established under subchapter 
        II of this chapter''; and
            (3) by adding at the end the following new subsection:
    ``(b)(1)(A) If the Postal Regulatory Commissions determines that a 
rate or fee for a product is unlawful in a review conducted pursuant to 
section 3653 of this title or in a complaint proceeding conducted 
pursuant to section 3662 of this title, the Commission shall order the 
price increase authority for such product and all other products in the 
class of mail containing such product to be reduced (but not below 
zero) for the next following price adjustment and each succeeding price 
adjustments until the amount of foregone revenue is equal to amount of 
revenue received by the Postal Service from the portion of such rate or 
fee that exceeded the lawful amount such rate or fee.
    ``(B) In this paragraph, the term `foregone revenue' means the 
difference between--
            ``(i) the revenue that the Postal Service would have 
        received from the sale of the products subject to an order 
        under subparagraph (A) during the period that the Postal 
        Service is unable to increase the prices of such products 
        pursuant to such order if--
                    ``(I) the Commission had not issued such order; and
                    ``(II) the rate or fee for the product with the 
                unlawful rate or fee for which the Commission issued 
                such order was the maximum lawful rate or fee for such 
                product at the time the Commission issued such order; 
                and
            ``(ii) the revenue the Postal Service receives from the 
        sale of the products subject to such order during such period.
    ``(2)(A) In a complaint proceeding conducted pursuant to section 
3662 of this title, if the Postal Regulatory Commission finds that the 
Postal Service has unreasonably delayed the proceeding, the Commission 
may order a reduction in the price increase authority for the product 
or products whose rate or fee it has determined to be unlawful to the 
extent that the unreasonable delay caused by the Postal Service has 
extended the time during which users of such product or products have 
paid the unlawful rate or fee.
    ``(B) A reduction under subparagraph (A) shall be in addition to 
any reduction under paragraph (1).
    ``(C) The Commission shall include in an order under subparagraph 
(A) with respect to the unreasonably delay of a proceeding an 
explanation of the basis for the determination of the Commission 
regarding the time such proceeding would have required absent such 
unreasonable delay.''.
    (k) Mail Volume System Objective.--Section 3622(b) of title 39, 
United States Code, is amended--
            (1) by redesignating paragraph (9) as paragraph (10); and
            (2) by inserting after paragraph (8) the following new 
        paragraph:
            ``(9) To maintain and, to the extent practicable, increase 
        the volume of market-dominant mail, with due regard to total 
        contribution to the institutional costs of the Postal 
        Service.''.
    (l) New Product Definition Criteria.--Section 3642(b)(3) of title 
39, United States Code, is amended--
            (1) in subparagraph (B), by striking ``and'';
            (2) in subparagraph (C), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(D) the importance of paragraphs (7), (8), and 
                (11) of section 3622(c) of this title in the 
                appropriate definition of market-dominant products.''.
    (m) Mail Volume Estimation Model.--
            (1) In general.--Not later than 120 days after the date of 
        the enactment of this Act, the Postal Regulatory Commission 
        shall develop a model for estimating the demand for postal 
        services.
            (2) Independent development.--The Commission may not 
        consider any models for estimating demand developed by the 
        Postal Service when developing the model required under this 
        subsection.
            (3) Public comment.--In developing the model required under 
        this subsection, the Postal Regulatory Commission shall solicit 
        and provide adequate opportunity for public comment regarding 
        the model.
            (4) Regulations.--The Postal Regulatory Commission may 
        issue such regulations, after notice and comment in accordance 
        with section 553 of title 5, United States Code, as the 
        Commission determines necessary to develop the model required 
        under this subsection.
            (5) Expert advisors.--The Commission may obtain the 
        temporary or intermittent services of experts or consultants to 
        facilitate the development of the model required under this 
        subsection.
    (n) Labor Dispute Arbitration Considerations.--Section 1207(c)(2) 
of title 39, United States Code, is amended by inserting after ``they 
may elect.'' the following: ``When making a decision, the arbitration 
board shall consider the current and, to the extent practicable, 
projected financial condition of the Postal Service in addition to any 
other relevant considerations.''.

SEC. 2. INVESTMENT OF THE POSTAL SERVICE RETIREE HEALTH BENEFITS FUNDS.

    Section 8909a(c) of title 5, United States Code, is amended--
            (1) by striking ``(c) The Secretary'' and inserting 
        ``(c)(1) Subject to paragraph (2), the Secretary''; and
            (2) by adding at the end the following:
            ``(2)(A) The Secretary of the Treasury shall immediately 
        invest a specified percentage of the Fund, using one or more 
        qualified professional asset managers, in index funds modeled 
        after those established under subparagraphs (B), (C), (D), and 
        (E) of section 8438(b)(1). The Secretary shall ensure, to the 
        maximum extent practicable, that the investment replicates the 
        performance of the longest-term target date asset allocation 
        investment fund established by the Federal Retirement Thrift 
        Investment Board.
            ``(B) In exercising authority under subparagraph (A), 
        including in the selection of specific qualified professional 
        asset managers and in the development of specific investment 
        guidelines to meet the requirement of such subparagraph, the 
        Secretary shall consult with the Postal Service Retiree Health 
        Benefits Fund Investment Committee.
            ``(C)(i) There is established a Postal Service Retiree 
        Health Benefits Fund Investment Committee that shall consist 
        of--
                    ``(I) the Secretary;
                    ``(II) the Chair of the Board of Governors of the 
                United States Postal Service;
                    ``(III) the Chairman of the Federal Retirement 
                Thrift Investment Board; and
                    ``(IV) two members, appointed by the President, 
                who--
                            ``(aa) shall represent the interests of 
                        Postal Service employees and annuitants;
                            ``(bb) have experience and expertise in the 
                        management of financial investments and Postal 
                        Service employee benefits; and
                            ``(cc) shall serve for a term of 3 years.
            ``(ii) Subsections (b)(1) and (c)(2) of section 8477 shall 
        apply with respect to the Postal Service Retiree Health 
        Benefits Fund Investment Committee and each member of the 
        Postal Service Retiree Health Benefits Fund Investment 
        Committee in the same manner as such subsections apply to a 
        fiduciary with respect to the Thrift Savings Fund.
            ``(D)(i) The Secretary shall annually engage an independent 
        qualified public accountant (as defined in section 8439) to 
        audit and provide a report on the financial statements of the 
        investments made pursuant to subparagraph (A).
            ``(ii) Not later than 180 days after the end of each fiscal 
        year beginning after the date of the enactment of this 
        paragraph, the Secretary shall submit to Congress an annual 
        management report regarding the Fund that includes--
                    ``(I) a statement of financial position;
                    ``(II) a statement of operations;
                    ``(III) a statement of cash flows;
                    ``(IV) a statement on internal accounting and 
                administrative control systems;
                    ``(V) the most recent report resulting from an 
                audit of the financial statements of the investments 
                conducted under clause (i); and
                    ``(VI) any other comments and information the 
                Secretary determines necessary to inform the Congress 
                about the operations and financial condition of the 
                investments.
            ``(E) In this paragraph--
                    ``(i) the term `specified percentage' means 25 
                percent of the currently available portions of the Fund 
                as are not immediately required for payments from the 
                Fund, except that the Postal Service Retiree Health 
                Benefits Fund Investment Committee may specify a higher 
                percentage, not to exceed 30 percent, not earlier than 
                5 years after the date of enactment of the Postal 
                Service Financial Improvement Act of 2019, and as 
                appropriate thereafter; and
                    ``(ii) the term `qualified professional asset 
                manager' has the meaning given that term in section 
                8438(a).''.
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