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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1853 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1853

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 SENATE OF THE UNITED STATES

                           November 10, 2011

 Mr. Sanders (for himself, Mrs. Gillibrand, Mr. Leahy, and Mr. Wyden) 
introduced the following bill; which was read twice and referred to the 
        Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

                                 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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Postal Service Protection Act of 
2011''.

  TITLE I--RETIREMENT ANNUITY OBLIGATION RECALCULATION AND RESTORATION

SEC. 101. MODIFIED METHODOLOGY.

    (a) In General.--Section 8348(h) of title 5, United States Code, is 
amended by adding at the end the following:
    ``(4)(A) To the extent that a determination under paragraph (1), 
relating to benefits attributable to civilian employment with the 
United States Postal Service, is based on a provision of law described 
in subparagraph (C), the determination shall be made in accordance with 
that provision and any otherwise applicable provisions of law, subject 
to the following:
            ``(i) The `average pay' used in the case of any individual 
        shall be a single amount, determined in accordance with section 
        8331(4), taking into account the rates of basic pay in effect 
        for the individual during the periods of creditable service 
        performed by the individual. Nothing in this subsection shall 
        be considered to permit or require--
                    ``(I) 1 determination of average pay with respect 
                to service performed with the United States Postal 
                Service; and
                    ``(II) a separate determination of average pay with 
                respect to service performed with its predecessor 
                entity in function.
            ``(ii) In determining the portion of an annuity 
        attributable to civilian employment with the United States 
        Postal Service, with respect to any period of employment with 
        the United States Postal Service that follows any other period 
        of employment creditable under section 8332 (without regard to 
        whether the employment was with an entity referred to in clause 
        (i)(II)), the total service of an employee for purposes of any 
        provision of law described in subparagraph (C) shall be the sum 
        of--
                    ``(I) any period of employment with the United 
                States Postal Service; and
                    ``(II) any period of employment creditable under 
                section 8332 that precedes the period described in 
                subclause (I).
    ``(B)(i) Not later than 6 months after the date of enactment of 
this paragraph, the Office shall determine (or, if applicable, 
redetermine) the amount of the Postal surplus or supplemental liability 
as of the close of the fiscal year most recently ending before that 
date of enactment, in conformance with the methodology required under 
subparagraph (A).
    ``(ii)(I) If the result of the determination or redetermination 
under clause (i) is a surplus, the Office may transfer the amount of 
the surplus, or any portion of the amount of the surplus, at the 
request of the United States Postal Service, to--
            ``(aa) the Postal Service Retiree Health Benefits Fund 
        established under section 8909a; and
            ``(bb) the Postal Service Fund established under section 
        2003 of title 39.
    ``(II) If a determination or redetermination under clause (i) for a 
fiscal year is made before a determination under paragraph (2)(B) is 
made with respect to the fiscal year, the Office may not make a 
determination under paragraph (2)(B) with respect to the fiscal year.
    ``(C) The provisions of law described in this subparagraph are--
            ``(i) the first sentence of section 8339(a); and
            ``(ii) section 8339(d)(1).''.
    (b) Coordination Provisions.--
            (1) Determination of amount payable.--Section 8909a of 
        title 5, United States Code, is amended by adding at the end 
        the following:
    ``(e) Notwithstanding any other provision of law, the Office shall 
determine the amount payable by the Postal Service under subsection (d) 
in any fiscal year ending on or before September 30, 2013, without 
regard to the requirements under section 8348(h)(4).''.
            (2) Rule of construction.--Nothing in this Act shall affect 
        the amount of any benefits otherwise payable from the Civil 
        Service Retirement and Disability Fund to any individual.
    (c) Technical and Conforming Amendment.--The heading for section 
8909a of title 5, United States Code, is amended by striking 
``Benefit'' and inserting ``Benefits''.

SEC. 102. RELATING TO A POSTAL SURPLUS.

    Section 8348(h)(2)(C) of title 5, United States Code, is amended--
            (1) by inserting ``2021,'' after ``2015,''; and
            (2) by striking ``if the result is'' and all that follows 
        through ``terminated.'' and inserting the following: ``if the 
        result is a surplus--
            ``(i) that amount, or any portion of that amount, may be 
        transferred at the request of the United States Postal Service 
        to--
                    ``(I) the Postal Service Retiree Health Benefits 
                Fund; and
                    ``(II) the Postal Service Fund established under 
                section 2003 of title 39; and
            ``(ii) any prior amortization schedule for payments shall 
        be terminated.''.

SEC. 103. TREATMENT OF CERTAIN SURPLUS RETIREMENT CONTRIBUTIONS.

    Section 8423(b) of title 5, United States Code, is amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following:
    ``(5) If, for fiscal year 2010, the amount computed under paragraph 
(1)(B) is less than zero (in this section referred to as `surplus 
postal contributions'), the amount of the surplus postal contributions, 
or any portion of the amount, may be transferred at the request of the 
United States Postal Service to--
            ``(A) the Postal Service Retiree Health Benefits Fund 
        established under section 8909a;
            ``(B) the Postal Service Fund established under section 
        2003 of title 39;
            ``(C) the Employees' Compensation Fund established under 
        section 8147; and
            ``(D) the United States Postal Service for the repayment of 
        any obligation issued under section 2005 of title 39.''.

SEC. 104. ELIMINATION OF REQUIREMENT TO PRE-FUND THE POSTAL SERVICE 
              RETIREE HEALTH BENEFITS FUND.

    (a) In General.--Section 8909a of title 5, United States Code, as 
amended by this Act, is amended--
            (1) in subsection (d)--
                    (A) by striking paragraph (3); and
                    (B) by redesignating paragraphs (4) through (6) as 
                paragraphs (3) through (5), respectively; and
            (2) by adding at the end the following:
    ``(f) Nothing in this section shall be construed to require the 
Postal Service to pay any amount into the Postal Service Retiree Health 
Benefits Fund established under section 8909a.''.
    (b) Technical and Conforming Amendment.--Section 803(b)(1)(A) of 
the Postal Accountability and Enhancement Act (5 U.S.C. 8909a note) is 
amended by striking ``8909a(d)(5)'' and inserting ``8909a(d)(4)''.

SEC. 105. EFFECTIVE DATE; RULE OF CONSTRUCTION.

    (a) In General.--This title and the amendments made by this title 
shall take effect on the date of enactment of this Act.
    (b) Intent of Congress.--It is the intent of Congress that this 
title apply with respect to the allocation of past, present, and future 
benefit liabilities between the United States Postal Service and the 
Treasury of the United States.
    (c) Rule of Construction.--Nothing in this Act or the amendments 
made by this Act shall be construed to prohibit the Postal Service from 
paying any amount of surplus contributions to the Civil Service 
Retirement and Disability Fund and the Federal Employees' Retirement 
System into--
            (1) the Postal Service Retiree Health Benefits Fund 
        established under section 8909a of title 5, United States Code; 
        and
            (2) the Postal Service Fund established under section 2003 
        of title 39, United States Code.

           TITLE II--RESTRICTIONS ON POSTAL FACILITY CLOSURES

SEC. 201. MODIFIED PROCEDURES.

    (a) In General.--Section 404(d) of title 39, United States Code, is 
amended by striking ``(d)(1)'' and all that follows through paragraph 
(4) and inserting the following:
    ``(d)(1) Before making a determination under subsection (a)(3) to 
close or consolidate a postal facility, the Postal Service shall--
            ``(A) conduct an investigation to assess the need for the 
        proposed closure or consolidation; and
            ``(B) ensure that each person served by the postal facility 
        has an opportunity to present views by providing appropriate 
        notice--
                    ``(i) to each person by mail; and
                    ``(ii) by publication in a newspaper of general 
                circulation in the area in which each person resides.
    ``(2) In conducting an investigation under paragraph (1)(A) and 
determining whether to close or consolidate a postal facility under 
subsection (a)(3), the Postal Service--
            ``(A) shall consider--
                    ``(i) the effect the closing or consolidation would 
                have on the community served by the postal facility;
                    ``(ii) the effect the closing or consolidation 
                would have on employees of the Postal Service employed 
                at the postal facility; and
                    ``(iii) whether the closing or consolidation would 
                be consistent with the policy of the Government under 
                section 101(b), that the Postal Service shall provide a 
                maximum degree of effective and regular postal services 
                to rural areas, communities, and small towns where 
                postal facilities are not self-sustaining; and
            ``(B) may not consider compliance with any provision of the 
        Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et 
        seq.).
    ``(3)(A) Upon completion of an investigation under paragraph (1), 
the Postal Service shall make a decision, in writing, whether to 
proceed with the proposal to close or consolidate a postal facility, 
which shall include the findings of the Postal Service with respect to 
each factor specified in paragraph (2)(A).
    ``(B) Not later than 90 days before the Postal Service makes a 
final determination under this subsection, the Postal Service shall--
            ``(i) post notice of the decision and findings under 
        subparagraph (A) in a prominent place in each postal facility 
        that would be affected by the closing or consolidation; and
            ``(ii) send notice of each posting under clause (i) by mail 
        to each person served by the postal facility in which the 
        notice is posted.
    ``(C) Notice under subparagraph (B) shall include--
            ``(i) a statement as follows: `This is notice of a proposal 
        to _____ this postal facility. A final determination will not 
        be made before the end of the 90-day period beginning on the 
        date on which this notice is first posted.', with the blank 
        space being filled in with `close' or `consolidate' (whichever 
        is appropriate), and with instructions for how any interested 
        person may submit comments;
            ``(ii) a brief summary of the findings of the Postal 
        Service with respect to the factors specified in paragraph 
        (2)(A); and
            ``(iii) the amount of cost savings the Postal Service 
        estimates the Postal Service will realize from the closing or 
        consolidation, in the first year following the date of the 
        closing or consolidation, together with an explanation of the 
        assumptions and methodologies used in making the estimate.
    ``(4) The Postal Service shall make a final determination to close 
or consolidate a postal facility in writing after taking into 
consideration any comments received during the 90-day period described 
under paragraph (3). The Postal Service shall take no action to close 
or consolidate a postal facility before the date that is 60 days after 
the date on which the Postal Service--
            ``(A) posts a copy of the final determination in a 
        prominent location in each affected postal facility; and
            ``(B) sends to each person served by the postal facility--
                    ``(i) a notice of the determination; and
                    ``(ii) notice of any appeal rights available with 
                respect to the determination.''.
    (b) De Novo Review.--Section 404(d)(5) of title 39, United States 
Code, is amended--
            (1) by striking ``post office'' and inserting ``postal 
        facility''; and
            (2) by striking ``The Commission shall set aside'' and all 
        that follows through ``final disposition of the appeal.'' and 
        inserting the following: ``The Commission shall review de novo 
        the determination of the Postal Service. In conducting a review 
        de novo, the Commission shall consider the factors described in 
        paragraph (2)(A). If the Commission finds fault with a 
        determination of the Postal Service, the Commission shall 
        suspend the effectiveness of the determination of the Postal 
        Service.''.
    (c) Exception; Calculation of Actual Cost Savings.--Section 404(d) 
of title 39, United States Code, is amended by adding at the end the 
following:
    ``(7)(A) Paragraphs (1) through (6) shall not apply in the case of 
a closing or consolidation which occurs by reason of an emergency 
suspension, as described in section 241.3 of title 39, Code of Federal 
Regulations, or any successor thereto.
    ``(B) For purposes of this paragraph, the term `emergency 
suspension' does not, in the case of a leased facility, include the 
termination or cancellation of the lease by a party other than the 
Postal Service.
    ``(8)(A) Not later than 2 years after the date of the closing or 
consolidation of any postal facility occurring after the date of 
enactment of this paragraph, the Inspector General shall determine the 
amount of the cost savings realized by the Postal Service from the 
closing or consolidation for the first year following the closing or 
consolidation.
    ``(B) The Inspector General shall submit to the Postmaster General 
and to Congress--
            ``(i) a report for each postal facility for which the 
        Inspector made a determination of cost savings under 
        subparagraph (A) during the preceding year that includes--
                    ``(I) the amount of the cost savings determined to 
                be realized with respect to each closing or 
                consolidation of a postal facility, together with an 
                explanation of the assumptions and methodologies used 
                in making the determination;
                    ``(II) a comparison of--
                            ``(aa) the cost savings determined by the 
                        Inspector General; and
                            ``(bb) the estimates provided by the Postal 
                        Service under paragraph (3)(C)(iii); and
                    ``(III) an explanation of the reasons for any 
                differences between the determination of the Inspector 
                General and the estimates of the Postal Service, 
                together with recommendations for any legislation or 
                administrative action that the Inspector General 
                considers appropriate to provide for more accurate 
                estimates; and
            ``(ii) an annual report with respect to all the postal 
        facilities for which the Inspector made a determination of cost 
        savings under subparagraph (A) that includes the information 
        required under clause (i).''.

SEC. 202. DEFINITIONS.

    Section 404(d) of title 39, United States Code, as amended by this 
Act, is amended by adding at the end the following:
    ``(9) In this subsection--
            ``(A) the term `postal facility' includes an office, 
        branch, station, or other facility which--
                    ``(i) is operated by the Postal Service; and
                    ``(ii) provides services to persons described in 
                subparagraph (B); and
            ``(B) any reference to the persons served by a postal 
        facility shall include a postal customer receiving mail 
        delivery service from the postal facility, a resident of a ZIP 
        code served by the postal facility, a postal customer having a 
        post office box at the postal facility, and any relevant local 
        government official as defined by the Postal Service by 
        rule.''.

                  TITLE III--INCENTIVES FOR INNOVATION

SEC. 301. AUTHORITY TO OFFER NONPOSTAL SERVICES AND PRODUCTS.

    (a) Specific Power.--Section 404(a) of title 39, United States 
Code, is amended--
            (1) in paragraph (7), by striking ``and'' at the end;
            (2) in paragraph (8), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(9) to provide nonpostal services and products in 
        accordance with subsection (e).''.
    (b) Nonpostal Services and Products.--Section 404(e) is amended to 
read as follows:
    ``(e)(1) The Postal Service may provide any nonpostal service or 
product in a manner consistent with the public interest.
    ``(2) Not later than 90 days before providing a nonpostal service 
or product that the Postal Service did not provide before the date of 
enactment of this subsection, the Postal Service shall request an 
advisory opinion from the Postal Regulatory Commission that evaluates 
the extent to which the provision of that nonpostal service or 
product--
            ``(A) would use the processing, transportation, delivery, 
        retail network, technology, or other resources of the Postal 
        Service; and
            ``(B) would be consistent with the public interest.
    ``(3) Not later than 45 days after the date on which the Postal 
Regulatory Commission receives a request under paragraph (2), the 
Postal Regulatory Commission shall--
            ``(A) issue an advisory opinion to the Postal Service 
        concerning the request; and
            ``(B) transmit a copy of the advisory opinion, together 
        with the original request, to--
                    ``(i) the Committee on Oversight and Government 
                Reform of the House of Representatives; and
                    ``(ii) the Committee on Homeland Security and 
                Governmental Affairs of the Senate.
    ``(4) In this title, the term `nonpostal service or product' means 
any service or product other than a postal service, including--
            ``(A) check-cashing services;
            ``(B) technology and media services;
            ``(C) warehousing and logistics;
            ``(D) facility leasing;
            ``(E) public Internet access services;
            ``(F) driver licensing;
            ``(G) vehicle registration;
            ``(H) hunting and fishing licensing;
            ``(I) notary services; and
            ``(J) voter registration.
    ``(5) The Postal Service may enter into a contract with a State or 
local agency to provide a nonpostal service or product authorized under 
this subsection.''.

SEC. 302. WINE AND BEER SHIPPING.

    (a) Mailability.--
            (1) Nonmailable articles.--Section 1716(f) of title 18, 
        United States Code, is amended by striking ``mails'' and 
        inserting ``mails, except to the extent that the mailing is 
        allowable under section 3001(p) of title 39''.
            (2) Intoxicants.--Section 1154(a) of title 18, United 
        States Code, is amended, by inserting ``or, with respect to the 
        mailing of wine or malt beverages, to the extent allowed under 
        section 3001(p) of title 39'' after ``mechanical purposes''.
    (b) Regulations.--Section 3001 of title 39, United States Code, is 
amended by adding at the end the following:
    ``(p)(1) Wine or malt beverages shall be considered mailable if 
mailed--
            ``(A) by a licensed winery or brewery, in accordance with 
        applicable regulations under paragraph (2); and
            ``(B) in accordance with the law of the State, territory, 
        or district of the United States where the addressee or duly 
        authorized agent takes delivery.
    ``(2) The Postal Service shall prescribe such regulations as may be 
necessary to carry out this subsection, including regulations providing 
that--
            ``(A) the mailing shall be by a means established by the 
        Postal Service to ensure direct delivery to the addressee or a 
        duly authorized agent at a postal facility;
            ``(B) the addressee (and any duly authorized agent) shall 
        be an individual at least 21 years of age, and shall present a 
        valid, government-issued photo identification at the time of 
        delivery;
            ``(C) the wine or malt beverages may not be for resale or 
        other commercial purpose; and
            ``(D) the winery or brewery involved shall--
                    ``(i) certify in writing to the satisfaction of the 
                Postal Service, through a registration process 
                administered by the Postal Service, that the mailing is 
                not in violation of any provision of this subsection or 
                regulation prescribed under this subsection; and
                    ``(ii) provide any other information or affirmation 
                that the Postal Service may require, including with 
                respect to the prepayment of State alcohol beverage 
                taxes.
    ``(3) For purposes of this subsection--
            ``(A) a winery shall be considered to be licensed if that 
        winery holds an appropriate basic permit issued--
                    ``(i) under the Federal Alcohol Administration Act 
                (27 U.S.C. 201 et seq.); and
                    ``(ii) under the law of the State in which the 
                winery is located; and
            ``(B) a brewery shall be considered to be licensed if that 
        brewery--
                    ``(i) possesses a notice of registration and bond 
                approved by the Alcohol and Tobacco Tax and Trade 
                Bureau of the Department of the Treasury; and
                    ``(ii) is licensed to manufacture and sell beer in 
                the State in which the brewery is located.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the earlier of--
            (1) the date on which the Postal Service issues regulations 
        under section 3001(p) of title 39, United States Code, as 
        amended by this section; or
            (2) 120 days after the date of enactment of this Act.

SEC. 303. INNOVATION AND ACCOUNTABILITY.

    (a) In General.--Chapter 2 of title 39, United States Code, is 
amended by adding at the end the following:
``Sec. 209. Innovation and accountability
    ``(a) Chief Innovation Officer.--There shall be in the Postal 
Service a Chief Innovation Officer appointed by the Postmaster General 
who shall have proven expertise and a record of success in--
            ``(1) the postal and shipping industry;
            ``(2) innovative product research and development;
            ``(3) marketing brand strategy;
            ``(4) emerging communications technology; or
            ``(5) business process management.
    ``(b) Duties.--The Chief Innovation Officer shall--
            ``(1) lead the development of innovative nonpostal products 
        and services that maximize the revenue of the Postal Service;
            ``(2) develop innovative postal products and services, 
        particularly products and services that use emerging 
        information technologies, to maximize the revenue of the Postal 
        Service;
            ``(3) supervise the implementation of products and services 
        described in paragraphs (1) and (2); and
            ``(4) monitor the performance of products and services 
        described in paragraphs (1) and (2) and modify the products and 
        services as needed to address changing market trends.
    ``(c) Considerations.--The Chief Innovation Office shall take into 
consideration comments or advisory opinions, if applicable, issued by 
the Postal Regulatory Committee before the initial sale of innovative 
postal or nonpostal products and services.
    ``(d) Designation.--
            ``(1) Deadline.--As soon as practicable after the date of 
        enactment of this section, and not later than 90 days after the 
        date of enactment of this section, the Postmaster General shall 
        appoint a Chief Innovation Officer.
            ``(2) Condition.--The Chief Innovation Officer may not, 
        while serving as Chief Innovation Officer, hold any other 
        office or position in the Postal Service.
            ``(3) Rule of construction.--Nothing in this section shall 
        be construed to prohibit an individual who holds another office 
        or position in the Postal Service at the time the individual is 
        appointed Chief Innovation Officer from serving as the Chief 
        Innovation Officer under this section.
    ``(e) Advisory Commission.--
            ``(1) Establishment.--There is established the Postal 
        Innovation Advisory Commission (hereinafter the `Commission').
            ``(2) Membership.--
                    ``(A) In general.--The Commission shall be composed 
                of--
                            ``(i) the Chief Innovation Officer 
                        established under subsection (a), who shall 
                        serve as Chairperson of the Commission; and
                            ``(ii) 5 other members as the Postal 
                        Regulatory Commission shall appoint, of whom--
                                    ``(I) 1 member shall have expertise 
                                in labor;
                                    ``(II) 1 member shall have 
                                expertise in small business issues;
                                    ``(III) 1 member shall have 
                                expertise in consumer protection;
                                    ``(IV) 1 member shall have 
                                expertise in small periodicals and 
                                newspapers; and
                                    ``(V) 1 member shall have expertise 
                                in the postal industry.
                    ``(B) Period of appointment.--Members shall be 
                appointed for 5-year terms.
                    ``(C) Vacancies.--Any vacancy in the Commission 
                shall not affect the powers of the Commission, but 
                shall be filled in the same manner as the original 
                appointment.
                    ``(D) Meetings.--The Commission shall meet at the 
                call of the Chairperson.
                    ``(E) Quorum.--A majority of the members of the 
                Commission shall constitute a quorum, but a lesser 
                number of members may hold hearings.
            ``(3) Duties of the commission.--
                    ``(A) Study.--The Commission shall study--
                            ``(i) additional postal and nonpostal 
                        services that the Postal Service may offer to 
                        raise revenue; and
                            ``(ii) services that postal services in 
                        foreign countries have offered to respond to 
                        the increasing demand for high-tech services, 
                        including--
                                    ``(I) banking and insurance 
                                services;
                                    ``(II) communication services;
                                    ``(III) physical delivery of e-mail 
                                correspondence to individuals who do 
                                not have Internet access;
                                    ``(IV) scanning physical mail and 
                                delivering that mail through e-mail; 
                                and
                                    ``(V) communication through secure 
                                servers.
                    ``(B) Recommendations.--The Commission shall 
                generate recommendations for additional services that 
                the Postal Service should provide based on the study 
                conducted under subparagraph (A).
                    ``(C) Report.--Not later than 1 year after the date 
                of enactment of this section, and each year thereafter, 
                the Commission shall submit to the Postmaster General a 
                report that contains each recommendation described 
                under subparagraph (B) that the Commission approves by 
                a majority vote.
            ``(4) Powers of the commission.--
                    ``(A) Hearings.--The Commission may hold such 
                hearings, take such testimony, and receive such 
                evidence as is necessary to carry out this subsection.
                    ``(B) Information from federal agencies.--The 
                Commission may secure directly from any Federal 
                department or agency such information as the Commission 
                considers necessary to carry out this subsection. Upon 
                request of the Chairperson of the Commission, the head 
                of such department or agency shall furnish such 
                information to the Commission.
                    ``(C) Postal services.--The Commission may use the 
                United States mails in the same manner and under the 
                same conditions as other departments and agencies of 
                the Federal Government.
                    ``(D) Gifts.--The Commission may accept, use, and 
                dispose of gifts or donations of services or property.
            ``(5) Commission personnel matters.--
                    ``(A) Compensation of members.--Each member of the 
                Commission who is not an officer or employee of the 
                Federal Government (including the Postal Service) shall 
                be compensated at a rate equal to the daily equivalent 
                of the annual rate of basic pay prescribed for level IV 
                of the Executive Schedule under section 5315 of title 5 
                for each day (including travel time) during which such 
                member is engaged in the performance of the duties of 
                the Commission. All members of the Commission who are 
                officers or employees of the United States, including 
                the Postal Service, shall serve without compensation in 
                addition to that received for their services as 
                officers or employees of the United States.
                    ``(B) Travel expenses.--The members of the 
                Commission shall be allowed travel expenses, including 
                per diem in lieu of subsistence, at rates authorized 
                for employees of agencies under subchapter I of chapter 
                57 of title 5 while away from their homes or regular 
                places of business in the performance of services for 
                the Commission.
                    ``(C) Staff.--
                            ``(i) In general.--The Chairperson of the 
                        Commission may, without regard to the civil 
                        service laws and regulations, appoint and 
                        terminate an executive director and such other 
                        additional personnel as may be necessary to 
                        enable the Commission to perform its duties. 
                        The employment of an executive director shall 
                        be subject to confirmation by the Commission.
                            ``(ii) Compensation.--The Chairperson of 
                        the Commission may fix the compensation of the 
                        executive director and other personnel without 
                        regard to chapter 51 and subchapter III of 
                        chapter 53 of title 5 relating to 
                        classification of positions and General 
                        Schedule pay rates, except that the rate of pay 
                        for the executive director and other personnel 
                        may not exceed the rate payable for level V of 
                        the Executive Schedule under section 5316 of 
                        title 5.
                    ``(D) Detail of government employees.--Any Federal 
                Government employee, including an employee of the 
                Postal Service, may be detailed to the Commission 
                without reimbursement, and such detail shall be without 
                interruption or loss of civil service status or 
                privilege.
                    ``(E) Procurement of temporary and intermittent 
                services.--The Chairperson of the Commission may 
                procure temporary and intermittent services under 
                section 3109(b) of title 5 at rates for individuals 
                that do not exceed the daily equivalent of the annual 
                rate of basic pay prescribed for level V of the 
                Executive Schedule under section 5316 of title 5.
            ``(6) Permanent advisory commission.--Section 14 of the 
        Federal Advisory Committee Act (5 U.S.C. App.) shall not apply 
        to the Commission.
            ``(7) Authorization of appropriations.--
                    ``(A) In general.--There are authorized to be 
                appropriated such sums as may be necessary to the 
                Commission to carry out this Act.
                    ``(B) Availability.--Any sums appropriated under 
                the authorization contained in this section shall 
                remain available, without fiscal year limitation, until 
                expended.
    ``(f) Innovation Strategy.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this section, the Postmaster General shall submit, 
        at the same time the President submits the annual budget 
        request under section 1105 of title 31 for that year, and 
        together with the report on performance under subsection (g), a 
        comprehensive strategy for maximizing the revenue of the Postal 
        Service through innovative postal and nonpostal products and 
        services to--
                    ``(A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    ``(B) the Committee on Oversight and Government 
                Reform of the House of Representatives; and
                    ``(C) the Postal Regulatory Commission.
            ``(2) Matters to be addressed.--At a minimum, the strategy 
        required by this subsection shall address--
                    ``(A) the specific innovative postal and nonpostal 
                products and services to be developed and offered by 
                the Postal Service, including the nature of the market 
                demand to be satisfied by each product and service and 
                the estimated date by which each product and service 
                will be introduced;
                    ``(B) the cost of developing and offering each 
                product or service;
                    ``(C) the anticipated sales volume for each product 
                and service;
                    ``(D) the anticipated revenues and profits expected 
                to be generated by each product and service;
                    ``(E) the likelihood of success of each product and 
                service and the risks associated with the development 
                and sale of each product and service;
                    ``(F) the trends anticipated in market conditions 
                that may affect the success of each product and service 
                during the 5-year period following the submission of 
                the report; and
                    ``(G) the metrics that will be used to assess the 
                effectiveness of the innovation strategy.
            ``(3) Strategy updates.--The Postmaster General shall--
                    ``(A) update the strategy required under this 
                subsection every 2 years; and
                    ``(B) submit the updated strategy, at the same time 
                the President submits the annual budget request under 
                section 1105 of title 31 for that year, and together 
                with the report on performance under subsection (g), 
                to--
                            ``(i) the Committee on Homeland Security 
                        and Governmental Affairs of the Senate;
                            ``(ii) the Committee on Oversight and 
                        Government Reform of the House of 
                        Representatives; and
                            ``(iii) the Postal Regulatory Commission.
    ``(g) Report on Performance.--
            ``(1) In general.--The Postmaster General shall submit an 
        annual report that describes the progress of the Postal Service 
        in implementing the strategy under this section, at the same 
        time the President submits the annual budget request under 
        section 1105 of title 31, to--
                    ``(A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    ``(B) the Committee on Oversight and Government 
                Reform of the House of Representatives; and
                    ``(C) the Postal Regulatory Commission.
            ``(2) Matters to be addressed.--At a minimum, a report 
        under this subsection shall include--
                    ``(A) the revenue generated by each product and 
                service developed through the strategy under this 
                section and the costs of developing and offering each 
                product or service for the preceding year;
                    ``(B) the total sales volume and revenue generated 
                by each product and service on a monthly basis for the 
                preceding year;
                    ``(C) trends in each market in which a product or 
                service is intended to satisfy a demand;
                    ``(D) products and services identified in the 
                strategy under this section that are to be 
                discontinued, the date on which the discontinuance will 
                occur, and the reasons for the discontinuance;
                    ``(E) alterations in products and services 
                identified in the strategy under this section that will 
                be made to address changing market conditions, and an 
                explanation of how the alterations will ensure the 
                success of the products and services; and
                    ``(F) the performance of the strategy under this 
                section according to the metrics identified under 
                subsection (e)(2)(G).
    ``(h) Study and Report by Comptroller General.--
            ``(1) Study.--
                    ``(A) In general.--The Comptroller General of the 
                United States shall conduct a study on the 
                implementation of the strategy under this section that 
                assesses the effectiveness of the Postal Service in 
                identifying, developing, and selling innovative postal 
                and nonpostal products and services.
                    ``(B) Contents.--The study under subparagraph (A) 
                shall include--
                            ``(i) an audit of the costs of developing 
                        each innovative postal and nonpostal product 
                        and service developed or offered by the Postal 
                        Service;
                            ``(ii) the sales volume of each product and 
                        service;
                            ``(iii) the revenues and profits generated 
                        by each product and service; and
                            ``(iv) the likelihood of continued success 
                        of each product and service.
            ``(2) Report.--Not later than 3 years after the date of 
        enactment of this section, the Comptroller General shall submit 
        a report concerning the study under paragraph (1) to--
                    ``(A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate; and
                    ``(B) the Committee on Oversight and Government 
                Reform of the House of Representatives.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 2 of title 39, United States Code, is amended by adding at the 
end the following:

``209. Innovation and accountability.''.

                TITLE IV--MAINTAINING LEVELS OF SERVICE

SEC. 401. SIX-DAY DELIVERY.

    Section 404a(a) of title 39, United States Code, is amended--
            (1) in paragraph (2), by striking ``or'' at the end;
            (2) in paragraph (3), by striking the period and inserting 
        ``; or''; and
            (3) by adding at the end the following:
            ``(4) reduce the frequency of the delivery of mail to fewer 
        than 6 days each week.''.

SEC. 402. SERVICE STANDARDS FOR MARKET-DOMINANT PRODUCTS.

    Section 3691 of title 39, United States Code, is amended by adding 
at the end the following:
    ``(e) Restriction on Authority.--Notwithstanding subsections (a), 
(b), and (c), the Postal Service may not increase the expected delivery 
time for market-dominant products required under part 121 of title 39, 
Code of Federal Regulations, as in effect on March 2, 2010.''.
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