I 

113TH CONGRESS 

1ST SESSION H. R. 2748 

To restore the financial solvency of the United States Postal Service and 

to ensure the efficient and affordable nationwide delivery of mail. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 19, 2013 

Mr. ISSA (for himself, Mr. FARENTHOLD, and Mr. ROSS) introduced the following bill; which was referred to the Committee on Oversight and Government Reform 

A BILL 

To restore the financial solvency of the United States Postal 

Service and to ensure the efficient and affordable nationwide delivery of mail. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS; REF4 ERENCES. 

5 (a) SHORT TITLE.—This Act may be cited as the 

6 ‘‘Postal Reform Act of 2013’’. 

7 (b) TABLE OF CONTENTS.— 

Sec. 1. Short title; table of contents; references. 

Sec. 2. Definitions. 

TITLE I—POSTAL SERVICE MODERNIZATION 


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Sec. 101. Nationwide mail delivery schedule. 

Sec. 102. Delivery-point modernization. 

Sec. 103. Efficient and flexible universal postal service. 

Sec. 104. Applicability of procedures relating to closures and consolidations. 

Sec. 105. Enhanced reporting on Postal Service efficiency. 

Sec. 106. Area and district office structure. 

TITLE II—POSTAL SERVICE GOVERNANCE 

Subtitle A—Temporary Governance Authority 

Sec. 201. Purposes. 

Sec. 202. Establishment of the Postal Service Financial Responsibility and 

Management Assistance Authority. 

Sec. 203. Membership and qualification requirements. 

Sec. 204. Organization and staff. 

Sec. 205. Funding. 

Sec. 206. Responsibilities and powers. 

Sec. 207. Development of financial plan and budget for the solvency of the 

Postal Service. 

Sec. 208. Process for submission and approval of financial plan and budget. 

Sec. 209. Dissolution of the Authority; reconstitution of the Board of Governors. 

Subtitle B—Other Matters 

Sec. 211. Appointment of the Postal Service Inspector General. 

Sec. 212. Membership of the Board of Governors. 

TITLE III—POSTAL SERVICE WORKFORCE 

Sec. 301. Applicability of reduction-in-force procedures. 

Sec. 302. Postal Service FEHBP and FEGLI funding requirements. 

Sec. 303. Repeal of provision relating to overall value of fringe benefits. 

Sec. 304. Modifications relating to determination of pay comparability. 

Sec. 305. Last-best-final-offer negotiations. 

Sec. 306. Postal Service workers’ compensation reform. 

Sec. 307. Reporting requirement. 

TITLE IV—POSTAL SERVICE REVENUE 

Sec. 401. Adequacy, efficiency, and fairness of postal rates. 

Sec. 402. Repeal of rate preferences for qualified political committees. 

Sec. 403. Use of negotiated service agreements. 

Sec. 404. Nonpostal services. 

Sec. 405. Alaska bypass mail modernization. 

Sec. 406. Appropriations modernization. 

Sec. 407. Enhanced product innovation. 

TITLE V—POSTAL SERVICE FINANCE 

Sec. 501. Treatment of Postal Service postemployment benefit funding projected surpluses. 

Sec. 502. Retiree health benefit liability payment schedule. 

Sec. 503. Supplementary borrowing authority during a control period. 

Sec. 504. Postal Service Delivery-Point Modernization Fund. 

Sec. 505. Specific retirement liability calculations relating to the Postal Service. 


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TITLE VI—POSTAL CONTRACTING REFORM 

Sec. 601. Contracting provisions. 

Sec. 602. Technical amendment to definition. 

Sec. 603. Contract limitation. 

TITLE VII—OTHER PROVISIONS 

Sec. 701. Postal facility designations. 

Sec. 702. Response to submissions by the Postal Service. 

Sec. 703. Fair stamp-evidencing competition. 

Sec. 704. USPS innovation officer and accountability. 

Sec. 705. Postal regulatory commission travel reporting. 

1 (c) REFERENCES.—Except as otherwise expressly 

2 provided, whenever in this Act an amendment or repeal 

3 is expressed in terms of an amendment to, or repeal of, 

4 a section or other provision, the reference shall be consid5 ered to be made to a section or other provision of title 

6 39, United States Code. 

7 SEC. 2. DEFINITIONS. 

8 For the purposes of this Act— 

9 (1) the term ‘‘Postal Service’’ means the United 

10 States Postal Service; 

11 (2) the term ‘‘postal retail facility’’ means a 

12 post office, post office branch, post office classified 

13 station, or other facility which is operated by the 

14 Postal Service, and the primary function of which is 

15 to provide retail postal services, but does not include 

16 a contractor-operated facility offering postal services; 

17 (3) the term ‘‘district office’’ means the central 

18 office of an administrative field unit with responsi19 bility for postal operations in a designated geoVerDate Mar 15 2010 00:03 Jul 20, 2013 Jkt 029200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2748.IH H2748

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1 graphic area (as defined under regulations, direc2 tives, or other guidance of the Postal Service, as in 

3 effect on January 1, 2013); and 

4 (4) the term ‘‘area office’’ means the central of5 fice of an administrative field unit with responsibility 

6 for postal operations in a designated geographic area 

7 which is comprised of designated geographic areas 

8 as referred to in paragraph (3). 

9 TITLE I—POSTAL SERVICE 

10 MODERNIZATION 

11 SEC. 101. NATIONWIDE MAIL DELIVERY SCHEDULE. 

12 (a) IN GENERAL.—Section 404 is amended by insert13 ing after subsection (e) the following: 

14 ‘‘(f)(1) The Postal Service may establish a general, 

15 nationwide mail delivery schedule of 5 days per week. 

16 ‘‘(2) The Postal Service shall ensure that under any 

17 schedule established under paragraph (1), there shall not 

18 occur more than 2 consecutive days on which mail is not 

19 delivered, including as a result of Federal holidays. 

20 ‘‘(3) For a period not to end before December 31, 

21 2018, the Postal Service shall provide domestic competi22 tive product service 6 days per week to each street address 

23 that was scheduled to receive package service 6 days per 

24 week as of September 30, 2012. 


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1 ‘‘(4) Nothing in this section shall be construed to au2 thorize a reduction, or to require an increase, in frequency 

3 of mail delivery for any address for which the Postal Serv4 ice provided delivery on fewer than 6 days per week as 

5 of January 1, 2013.’’. 

6 (b) MAILBOX ACCESS.—If the Postal Service estab7 lishes a general, nationwide mail delivery schedule of 5 

8 days per week, consistent with the provisions of section 

9 404 of title 39, United States Code, as amended by sub10 section (a), the Postal Service shall amend the Mailing 

11 Standards of the United States Postal Service (as set 

12 forth in the Domestic Mail Manual) to ensure that the 

13 provisions of section 508.3.2.10 of such Manual, as in ef14 fect on September 30, 2012, shall apply on any day on 

15 which the Postal Service does not deliver mail under the 

16 established delivery schedule. 

17 SEC. 102. DELIVERY-POINT MODERNIZATION. 

18 (a) IN GENERAL.—Subchapter VII of chapter 36 is 

19 amended by adding at the end the following: 

20 ‘‘§ 3692. Delivery-point modernization 

21 ‘‘(a) DEFINITIONS.—For the purposes of this sec22 tion— 

23 ‘‘(1) the term ‘delivery point’ means a mailbox 

24 or other receptacle to which mail is delivered; 


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1 ‘‘(2) the term ‘primary mode of mail delivery’ 

2 means the typical method by which the Postal Serv3 ice delivers letter mail to the delivery point of a 

4 postal patron; 

5 ‘‘(3) the term ‘door delivery’ means a primary 

6 mode of mail delivery whereby mail is placed into a 

7 slot or receptacle at or near the postal patron’s door 

8 or is hand delivered to a postal patron, but does not 

9 include curbside or centralized delivery; 

10 ‘‘(4) the term ‘centralized delivery’ means a pri11 mary mode of mail delivery whereby mail receptacles 

12 of a number of delivery points are grouped or clus13 tered at a single location; and 

14 ‘‘(5) the term ‘curbside delivery’ means a pri15 mary mode of mail delivery whereby a mail recep16 tacle is situated at the edge of a sidewalk abutting 

17 a road or curb, at a road, or at a curb. 

18 ‘‘(b) POLICY.—It shall be the policy of the Postal 

19 Service to use the most cost-effective primary mode of 

20 mail delivery feasible for postal patrons. 

21 ‘‘(c) PHASEOUT OF DOOR DELIVERY.— 

22 ‘‘(1) NEW ADDRESSES.—Subject to paragraph 

23 (4), the Postal Service shall implement a program, 

24 wherever feasible, to provide a primary mode of mail 

25 delivery other than door delivery to new addresses 


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1 established after the date of enactment of this sec2 tion. 

3 ‘‘(2) BUSINESS ADDRESS CONVERSION.—Sub4 ject to paragraph (4), the Postal Service shall imple5 ment a program to convert existing business ad6 dresses with door delivery to centralized delivery to 

7 the maximum extent feasible. In cases in which con8 version to centralized delivery is impractical, conver9 sion to curbside delivery shall be implemented to the 

10 maximum extent feasible. 

11 ‘‘(3) RESIDENTIAL ADDRESS CONVERSION.— 

12 ‘‘(A) IDENTIFICATION.—Within one year 

13 after the date of enactment of this section, each 

14 district office shall identify residential addresses 

15 within its service area that are appropriate can16 didates for conversion from door delivery to 

17 curbside or centralized delivery, in accordance 

18 with standards established by the Postal Serv19 ice. 

20 ‘‘(B) VOLUNTARY CONVERSION.—Subject 

21 to paragraph (4), the Postal Service shall seek 

22 to voluntarily convert the delivery points identi23 fied under subparagraph (A) from door delivery 

24 to more cost-effective primary modes of mail 

25 delivery. 


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1 ‘‘(C) PROCEDURES.—In carrying out con2 versions under subparagraph (B), the Postal 

3 Service shall establish procedures to— 

4 ‘‘(i) solicit, consider, and respond to 

5 input from postal patrons, State and local 

6 governments, local associations, and prop7 erty owners; and 

8 ‘‘(ii) place centralized delivery points 

9 in locations that maximize delivery effi10 ciency, ease of use for postal patrons, and 

11 respect for private property rights. 

12 ‘‘(4) CONSIDERATIONS.—In making any deter13 mination to convert the primary mode of mail deliv14 ery for an existing address from door delivery to any 

15 other primary mode of mail delivery, or to provide 

16 a primary mode of mail delivery to a new address, 

17 the Postal Service may consider— 

18 ‘‘(A) the impact of weather conditions, 

19 physical barriers, or any other factor that may 

20 impact the feasibility of providing a primary 

21 mode of mail delivery other than door delivery 

22 (such as a factor that may significantly reduce 

23 the potential cost savings associated with pro24 viding centralized or curbside delivery); 


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1 ‘‘(B) whether the address is in a registered 

2 historic district (as that term is defined in sec3 tion 47(c)(3)(B) of the Internal Revenue Code 

4 of 1986) is listed on the National Register of 

5 Historic Places, or is of historic value; and 

6 ‘‘(C) population density and the concentra7 tion of poverty. 

8 ‘‘(5) WAIVER FOR PHYSICAL HARDSHIP.—The 

9 Postal Service shall establish and maintain a waiver 

10 program under which, upon application, door deliv11 ery may be continued, or provided, at no cost to the 

12 applicant in any case in which— 

13 ‘‘(A) centralized or curbside delivery would, 

14 but for this paragraph, otherwise be the pri15 mary mode of mail delivery; and 

16 ‘‘(B) door delivery is necessary in order to 

17 avoid causing significant physical hardship to a 

18 postal patron. 

19 ‘‘(6) LEGACY DOOR DELIVERY SERVICE.— 

20 ‘‘(A) IN GENERAL.—The Postal Service 

21 may continue to provide, for a fee to be paid by 

22 the addressee, door delivery to an address that 

23 received door delivery as of January 1, 2013, 

24 but was converted to a different primary mode 


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1 of mail delivery as a result of the requirements 

2 of subsection (d). 

3 ‘‘(B) OFFSET.—The fee shall, when taken 

4 in the nationwide aggregate, offset the addi5 tional cost to the Postal Service for door deliv6 ery (compared to the cost of the primary mode 

7 of mail delivery which would otherwise exist for 

8 such address) as a result of the requirements of 

9 subsection (d). 

10 ‘‘(C) REQUIREMENTS.—The fee shall be 

11 subject to the requirements of section 

12 3622(d)(1)(B) and the Postmaster General may 

13 by regulation prescribe the method of the fee’s 

14 calculation. 

15 ‘‘(d) MODERNIZATION REQUIREMENT.— 

16 ‘‘(1) MINIMUM POINTS TO BE CONVERTED.— 

17 Not later than September 30, 2022, the Postal Serv18 ice shall convert not less than 30,000,000 of the 

19 door delivery points extant on December 31, 2012, 

20 to centralized or curbside delivery. 

21 ‘‘(2) CONVERSION ORDER.—In determining 

22 which delivery points to convert under paragraph 

23 (1), postal patrons who voluntarily agree to convert 

24 their delivery point or points under subsection (c)(3) 


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1 shall take precedence over any other conversions to 

2 the greatest extent practicable. 

3 ‘‘(3) FUNDING AND REPAYMENT.—Until Sep4 tember 30, 2022, the Postal Service may withdraw 

5 funds from the Postal Service Delivery-Point Mod6 ernization Fund to carry out the purposes of this 

7 section. All savings accrued by the Postal Service 

8 from conversions under this subsection shall be re9 paid to the Fund on a monthly basis until all funds 

10 have been repaid. All funds withdrawn under this 

11 paragraph must be repaid not later than September 

12 30, 2023. 

13 ‘‘(4) VOUCHER PROGRAM.—The Postal Service 

14 shall, in accordance with such standards and proce15 dures as the Postal Service shall by regulation pre16 scribe, provide for a voucher program, funded 

17 through the Postal Service Delivery Point Mod18 ernization Fund, under which, upon application, the 

19 Postal Service may defray all or any portion of the 

20 costs associated with conversion from door delivery 

21 under this section which would otherwise be borne 

22 by postal patrons. 

23 ‘‘(5) TREATMENT OF EXEMPTION.—Addresses 

24 receiving door delivery or legacy door delivery as a 

25 result of paragraph (5) or (6) of subsection (c)— 


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1 ‘‘(A) shall be counted as addresses that re2 ceive the primary mode of mail delivery which 

3 the address would be subject to if not for the 

4 applicable exemption; and 

5 ‘‘(B) shall, within 30 days after ceasing to 

6 meet the requirements of such paragraph (5) or 

7 (6), as applicable, be converted to the primary 

8 mode of mail delivery which was otherwise ap9 plicable. 

10 ‘‘(6) ANNUAL REPORTS.—Not later than 60 

11 days after the end of each of fiscal years 2013 

12 through 2023, the Postal Service shall submit to 

13 Congress and the Inspector General of the Postal 

14 Service a report on the implementation of this sec15 tion during the most recently completed fiscal year. 

16 Each such report shall include— 

17 ‘‘(A) the number of residential and busi18 ness addresses that— 

19 ‘‘(i) receive door delivery as of the end 

20 of the fiscal year preceding the most re21 cently completed fiscal year; 

22 ‘‘(ii) receive door delivery as of the 

23 end of the most recently completed fiscal 

24 year; and 


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1 ‘‘(iii) during the most recently com2 pleted fiscal year, were converted from 

3 door delivery to— 

4 ‘‘(I) centralized delivery points; 

5 ‘‘(II) curbside delivery points; 

6 and 

7 ‘‘(III) any other primary mode of 

8 mail delivery, respectively; 

9 ‘‘(B) the estimated cost savings from the 

10 conversions described in subparagraph (A)(iii); 

11 ‘‘(C) a description of the progress made by 

12 the Postal Service toward meeting the require13 ments of subsection (c) and paragraph (1) of 

14 this subsection; and 

15 ‘‘(D) any other information which the 

16 Postal Service considers appropriate. 

17 ‘‘(e) REVIEW.—Subchapters IV and V shall not apply 

18 with respect to any action taken by the Postal Service 

19 under this section.’’. 

20 (b) CLERICAL AMENDMENT.—The table of sections 

21 for chapter 36 is amended by adding after the item relat22 ing to section 3691 the following: 

‘‘3692. Delivery-point modernization.’’. 

23 SEC. 103. EFFICIENT AND FLEXIBLE UNIVERSAL POSTAL 

24 SERVICE. 

25 (a) POSTAL POLICY.— 


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1 (1) IN GENERAL.—Section 101(b) is amended 

2 to read as follows: 

3 ‘‘(b) The Postal Service shall provide effective and 

4 regular postal services to rural areas, communities, and 

5 small towns where post offices are not self-sustaining.’’. 

6 (2) CONFORMING AMENDMENT.—Clause (iii) of 

7 section 404(d)(2)(A) is amended to read as follows: 

8 ‘‘(iii) whether such closing or consolidation 

9 is consistent with the policy of the Government, 

10 as stated in section 101(b), that the Postal 

11 Service shall provide effective and regular post12 al services to rural areas, communities, and 

13 small towns where post offices are not self-sus14 taining;’’. 

15 (b) GENERAL DUTY.—Paragraph (3) of section 

16 403(b) is amended to read as follows: 

17 ‘‘(3) to ensure that postal patrons throughout 

18 the Nation will, consistent with reasonable econo19 mies of postal operations, have ready access to es20 sential postal services.’’. 

21 (c) CONDITIONS.—Clause (i) of section 404(d)(2)(A) 

22 is amended to read as follows: 

23 ‘‘(i) the effect of such closing or consolida24 tion on the community served by such post ofVerDate Mar 15 2010 00:03 Jul 20, 2013 Jkt 029200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H2748.IH H2748

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1 fice, including through an analysis of such fac2 tors as— 

3 ‘‘(I) the distance (as measured by 

4 public roads) to the closest postal retail fa5 cility not proposed for closure or consolida6 tion under such plan; 

7 ‘‘(II) the characteristics of such loca8 tion, including weather and terrain; 

9 ‘‘(III) whether commercial mobile 

10 service (as defined in section 332 of the 

11 Communications Act of 1934) and com12 mercial mobile data service (as defined in 

13 section 6001 of the Middle Class Tax Re14 lief and Job Creation Act of 2012) are 

15 available in at least 80 percent of the total 

16 geographic area of the ZIP codes served by 

17 the postal retail facility proposed for clo18 sure or consolidation; and 

19 ‘‘(IV) whether fixed broadband Inter20 net access service is available to households 

21 in at least 80 percent of such geographic 

22 area at speeds not less than those suffi23 cient for service to be considered 

24 broadband for purposes of the most recent 

25 report of the Federal Communications 


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1 Commission under section 706 of the Tele2 communications Act of 1996;’’. 

3 (d) PRC REVIEW OF DETERMINATIONS TO CLOSE

4 OR CONSOLIDATE A POST OFFICE.— 

5 (1) DEADLINE FOR REVIEW.—Section 

6 404(d)(5) is amended by striking ‘‘120 days’’ and 

7 inserting ‘‘60 days’’. 

8 (2) EXCLUSION FROM REVIEW.—Section 404(d) 

9 is amended by adding at the end the following: 

10 ‘‘(7)(A) The appeals process set forth in paragraph 

11 (5) shall not apply to a determination of the Postal Service 

12 to close a post office if there is located, within 2 miles 

13 of such post office, a qualified contract postal unit. 

14 ‘‘(B) For purposes of this paragraph— 

15 ‘‘(i) the term ‘contract postal unit’ means a 

16 store or other place of business which— 

17 ‘‘(I) is not owned or operated by the Postal 

18 Service; and 

19 ‘‘(II) in addition to its usual operations, 

20 provides postal services to the general public 

21 under contract with the Postal Service; and 

22 ‘‘(ii) the term ‘qualified contract postal unit’, as 

23 used in connection with a post office, means a con24 tract postal unit which— 


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1 ‘‘(I) begins to provide postal services to the 

2 general public during the period— 

3 ‘‘(aa) beginning 1 year before the date 

4 on which the closure or consolidation of 

5 such post office is scheduled to take effect; 

6 and 

7 ‘‘(bb) ending on the 15th day after 

8 the date on which the closure or consolida9 tion of such post office is scheduled to take 

10 effect; and 

11 ‘‘(II) has not, pursuant to subparagraph 

12 (A), served as the basis for exempting any other 

13 post office from the appeals process set forth in 

14 paragraph (5). 

15 ‘‘(C)(i) If the qualified contract postal unit does not 

16 continue to provide postal services, as required by sub17 paragraph (B)(i)(II), for at least the 2-year period begin18 ning on the date on which such post office was closed or, 

19 if later, the date on which such unit began providing postal 

20 services to the general public, the contract postal unit shall 

21 be subject to a closure determination by the Postal Service 

22 to decide whether a post office must be reopened within 

23 the area (delimited by the 2-mile radius referred to in sub24 paragraph (A)). 


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1 ‘‘(ii) A decision under clause (i) not to reopen a post 

2 office may be appealed to the Postal Regulatory Commis3 sion under procedures which the Commission shall by reg4 ulation prescribe. Such procedures shall be based on para5 graph (5), except that, for purposes of this clause, para6 graph (5)(C) shall be applied by substituting ‘in violation 

7 of section 101(b), leaving postal patrons without effective 

8 and regular access to postal services’ for ‘unsupported by 

9 substantial evidence on the record’.’’. 

10 (3) APPLICABILITY.—The amendments made 

11 by this subsection shall not apply with respect to 

12 any appeal, notice of which is received by the Postal 

13 Regulatory Commission before the date of enactment 

14 of this Act (determined applying the rules set forth 

15 in section 404(d)(6) of title 39, United States Code). 

16 (e) EXPEDITED PROCEDURES.— 

17 (1) IN GENERAL.—Section 3661 is amended by 

18 adding at the end the following: 

19 ‘‘(d)(1) The Commission shall issue its opinion within 

20 90 days after the receipt of any proposal (as referred to 

21 in subsection (b)) concerning— 

22 ‘‘(A) the closing or consolidation of postal retail 

23 facilities (as that term is defined in section 2(2) of 

24 the Postal Reform Act of 2013) to a degree that will 


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1 generally affect service on a nationwide or substan2 tially nationwide basis; or 

3 ‘‘(B) an identical or substantially identical pro4 posal on which the Commission issued an opinion 

5 within the preceding 5 years. 

6 ‘‘(2) If necessary in order to comply with the 90-day 

7 requirement under paragraph (1), the Commission may 

8 apply expedited procedures which the Commission shall by 

9 regulation prescribe.’’. 

10 (2) REGULATIONS.—The Postal Regulatory 

11 Commission shall prescribe any regulations nec12 essary to carry out the amendment made by para13 graph (1) within 90 days after the date of enact14 ment of this Act. 

15 (3) APPLICABILITY.—The amendment made by 

16 this subsection shall apply with respect to any pro17 posal received by the Postal Regulatory Commission 

18 on or after the earlier of— 

19 (A) the 90th day after the date of enact20 ment of this Act; or 

21 (B) the effective date of the regulations 

22 under paragraph (2). 

23 (f) RURAL POST OFFICE ANNUAL CLOSURE LIMITA24 TION.—Section 404a(a) is amended— 


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

2 end; 

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

4 inserting ‘‘; or’’; and 

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

6 ‘‘(4) close, consolidate, or suspend the oper7 ations of more than 5-percent of the number of cur8 rently operating postal retail facilities on January 1, 

9 of each year that were within the K or L cost ascer10 tainment grouping on January 1, 2012, excluding 

11 any postal retail facility scheduled for closure and 

12 ineligible for appeal due to section 404(d)(7)(A) 

13 shall not count toward the 5 percent limitation.’’. 

14 (g) ALTERNATE POSTAL ACCESS CHOICE.—Section 

15 404(d) is amended by striking paragraph (1) and inserting 

16 the following: 

17 ‘‘(d)(1) The Postal Service, prior to making a deter18 mination under subsection (a)(3) as to the necessity for 

19 the closing or consolidation of any post office, shall— 

20 ‘‘(A) provide adequate notice of its intention to 

21 close or consolidate such post office at least 60 days 

22 prior to the proposed date of such closing or consoli23 dation to postal patrons served by such post office; 

24 ‘‘(B) conduct a nonbinding survey on the pro25 posed closing or consolidation to allow postal patrons 


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1 served by such post office an opportunity to indicate 

2 their preference between or among— 

3 ‘‘(i) the closing or consolidation; and 

4 ‘‘(ii) 1 or more alternative options; and 

5 ‘‘(C) ensure that— 

6 ‘‘(i) should the closure or consolidation of 

7 a postal retail facility be deemed necessary, it 

8 shall be the policy of the Postal Service to pro9 vide alternative access to postal services to 

10 those served by the postal retail facility by the 

11 option chosen by the highest number of survey 

12 respondents under subparagraph (B)(ii); and 

13 ‘‘(ii) if the Postal Service is unable to pro14 vide alternative access through the option iden15 tified in clause (i), or if that option is cost pro16 hibitive, the Postal Service may provide alter17 native access through a different means. Upon 

18 selection of an alternative access method other 

19 than the one identified by clause (i), the Postal 

20 Service must provide written notice to those pa21 trons served by the postal retail facility identi22 fying and explaining why the option identified 

23 by clause (i) was not possible or cost prohibi24 tive.’’. 


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1 SEC. 104. APPLICABILITY OF PROCEDURES RELATING TO 

2 CLOSURES AND CONSOLIDATIONS. 

3 (a) IN GENERAL.—Section 404(d) is amended by 

4 adding after paragraph (7) (as added by section 

5 103(d)(2)) the following: 

6 ‘‘(8) For purposes of this subsection, the term ‘post 

7 office’ means a post office and any other facility described 

8 in section 2(2) of the Postal Reform Act of 2013.’’. 

9 (b) EFFECTIVE DATE.—In the case of any post office 

10 (within the meaning of the amendment made by sub11 section (a)) which, but for such amendment, would not 

12 otherwise be subject to section 404(d) of title 39, United 

13 States Code, the amendment made by subsection (a) shall 

14 be effective with respect to any closure or consolidation, 

15 the proposed effective date of which occurs on or after the 

16 60th day following the date of enactment of this Act. 

17 SEC. 105. ENHANCED REPORTING ON POSTAL SERVICE EF18 FICIENCY. 

19 Section 3652(a) is amended— 

20 (1) in paragraph (1), by striking ‘‘and’’ after 

21 the semicolon; 

22 (2) in paragraph (2), by striking the period at 

23 the end and inserting ‘‘; and’’; and 

24 (3) by adding after paragraph (2) the following: 

25 ‘‘(3) which shall provide the overall change in 

26 Postal Service productivity and the resulting effect 


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1 of such change on overall Postal Service costs during 

2 such year, using such methodologies as the Commis3 sion shall by regulation prescribe.’’. 

4 SEC. 106. AREA AND DISTRICT OFFICE STRUCTURE. 

5 (a) IN GENERAL.—Not later than 120 days after the 

6 date of enactment of this Act, the Postal Service, in con7 sultation with the Inspector General of the United States 

8 Postal Service, shall develop and begin implementation of 

9 a plan for the closure or consolidation of such area and 

10 district offices as the Postal Service considers necessary 

11 and appropriate so that, by October 1, 2015, the combined 

12 total number of area and district offices will be at least 

13 30 percent less than the corresponding combined total as 

14 of September 30, 2012. 

15 (b) CONTENTS.—The plan shall include— 

16 (1) a list of the area and district offices pro17 posed for closure or consolidation; 

18 (2) a proposed schedule under which closures 

19 and consolidations of area and district offices would 

20 be carried out; 

21 (3) the estimated total annual cost savings at22 tributable to the proposed closures and consolida23 tions described in the plan; 

24 (4) the criteria and process used to develop the 

25 information described in paragraphs (1) and (2); 


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1 (5) the methodology and assumptions used to 

2 derive the estimates described in paragraph (3); and 

3 (6) any changes to the processing, transpor4 tation, delivery, or other postal operations antici5 pated as a result of the proposed closures and con6 solidations described in the plan. 

7 (c) PLAN SUBMISSION REVISION.—Not later than 

8 120 days after the date of enactment of this Act, the plan 

9 shall be submitted to the Committee on Homeland Secu10 rity and Governmental Affairs of the Senate and the Com11 mittee on Oversight and Government Reform of the House 

12 of Representatives. Any revision to the plan shall be sub13 mitted not later than 14 days after such revision is adopt14 ed by the Postal Service. 

15 TITLE II—POSTAL SERVICE 

16 GOVERNANCE 

17 Subtitle A—Temporary Governance 

18 Authority 

19 SEC. 201. PURPOSES. 

20 (a) PURPOSES.—The purposes of this subtitle are as 

21 follows: 

22 (1) To eliminate budget deficits and cash short23 ages of the Postal Service through strategic financial 

24 planning, sound budgeting, accurate revenue fore25 casts, and careful spending. 


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1 (2) To ensure that universal service, as required 

2 by section 101 of title 39, United States Code, is 

3 maintained during the period of any fiscal emer4 gency. 

5 (3) To conduct necessary investigations and 

6 studies to determine the fiscal status and oper7 ational efficiency of the Postal Service. 

8 (4) To assist the Postal Service in— 

9 (A) restructuring its organization and 

10 workforce to bring expenses in line with dimin11 ishing revenue and generate sufficient profits 

12 for capital investments and repayment of debt; 

13 (B) meeting all fiscal obligations to the 

14 Treasury of the United States; and 

15 (C) ensuring the appropriate and efficient 

16 delivery of postal services. 

17 (5) To ensure the long-term financial, fiscal, 

18 and economic vitality and operational efficiency of 

19 the Postal Service. 

20 (b) RESERVATION OF POWERS.—Nothing in this sub21 title may be construed— 

22 (1) to relieve any obligation of the Postal Serv23 ice to the Treasury of the United States existing as 

24 of the date of enactment of this Act; or 


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1 (2) to limit the authority of Congress to exer2 cise legislative authority over the Postal Service. 

3 SEC. 202. ESTABLISHMENT OF THE POSTAL SERVICE FI4 NANCIAL RESPONSIBILITY AND MANAGE5 MENT ASSISTANCE AUTHORITY. 

6 (a) ESTABLISHMENT.—There is established, in ac7 cordance with the provisions of this subtitle, an entity to 

8 be known as the ‘‘Postal Service Financial Responsibility 

9 and Management Assistance Authority’’ (hereinafter in 

10 this subtitle referred to as the ‘‘Authority’’). 

11 (b) OPERATIONS DURING THE CONTROL PERIOD.— 

12 (1) CONTROL PERIOD DEFINED.—For the pur13 poses of this subtitle, the term ‘‘control period’’ 

14 means the period that commences on the date as of 

15 which the Authority has at least 4 members and ter16 minates as of the date determined under paragraph 

17 (5). 

18 (2) TRANSFER OF AUTHORITIES AND RESPON19 SIBILITIES.—Effective as of the date on which the 

20 control period commences— 

21 (A) subsections (a) and (b) of section 202 

22 are repealed; 

23 (B) the term of office of each of the 9 Gov24 ernors (appointed under the second sentence of 

25 section 202(a)(1) of title 39, United States 


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1 Code, as last in effect before the date of enact2 ment of this Act) shall terminate; and 

3 (C) the Authority shall assume its respon4 sibilities, as set forth in section 206. 

5 (3) TREATMENT OF CERTAIN EXECUTIVES.— 

6 (A) DEFINITION.—For the purposes of 

7 this section, the term ‘‘Level-Two Postal Serv8 ice Executive’’ includes the Postmaster General, 

9 the Deputy Postmaster General, and all the 

10 other officers and employees of the Postal Serv11 ice in level two of the Postal Career Executive 

12 Service (or the equivalent), but does not include 

13 any officer or employee of the Office of Inspec14 tor General of the United States Postal Service. 

15 (B) TREATMENT.—Notwithstanding any 

16 other provision of law or the provisions of any 

17 employment contract, during the control pe18 riod— 

19 (i) all Level-Two Postal Service Ex20 ecutives shall serve at the pleasure of the 

21 Authority; 

22 (ii) the duties and responsibilities of 

23 all Level-Two Postal Service Executives, as 

24 well as the terms and conditions of their 

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1 tion), shall be subject to determination or 

2 redetermination by the Authority; 

3 (iii) total compensation of a Level4 Two Postal Service Executive may not, for 

5 the first full fiscal year occurring in such 

6 control period or any subsequent fiscal 

7 year commencing in such control period, 

8 exceed the annual rate of basic pay payable 

9 for level I of the Executive Schedule under 

10 section 5312 of title 5, United States 

11 Code, for that year; for purposes of this 

12 clause, the term ‘‘total compensation’’ 

13 means basic pay, bonuses, awards, and all 

14 other monetary compensation; 

15 (iv) the percentage by which the rate 

16 of basic pay of a Level-Two Postal Service 

17 Executive is increased during any year 

18 may not exceed the percentage change in 

19 the Consumer Price Index for All Urban 

20 Consumers, unadjusted for seasonal vari21 ation, for the most recent 12-month period 

22 available, except that, in the case of a 

23 Level-Two Postal Service Executive who 

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1 sibilities, a greater change shall be allow2 able if approved by the Authority; 

3 (v) apart from basic pay, a Level-Two 

4 Postal Service Executive may not be af5 forded any bonus, award, or other mone6 tary compensation for any full fiscal year 

7 in the control period if expenditures of the 

8 Postal Service for such fiscal year exceeded 

9 revenues of the Postal Service for such fis10 cal year (determined in accordance with 

11 generally accepted accounting principles); 

12 and 

13 (vi) no deferred compensation may be 

14 paid, accumulated, or recognized in the 

15 case of any Level-Two Postal Service Exec16 utive, with respect to any full year in the 

17 control period, which is not generally paid, 

18 accumulated, or recognized in the case of 

19 employees of the United States (outside of 

20 the Postal Service) in level I of the Execu21 tive Schedule under section 5312 of title 5, 

22 United States Code, with respect to such 

23 year. 

24 (C) BONUS AUTHORITY.—Section 3686 of 

25 title 39, United States Code, shall, during the 


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1 period beginning on the commencement date of 

2 the control period and ending on the termi3 nation date of the control period— 

4 (i) be suspended with respect to all 

5 Level-Two Postal Service Executives; but 

6 (ii) remain in effect for all other offi7 cers and employees of the Postal Service 

8 otherwise covered by this section. 

9 (4) CERTIFICATION REQUIREMENT.—The con10 trol period may not terminate until after the Author11 ity, with the concurrence of the Secretary of the 

12 Treasury and the Director of the Office of Personnel 

13 Management, certifies to the Director of the Office 

14 of Management and Budget that— 

15 (A) for 2 consecutive fiscal years (occur16 ring after the date of enactment of this Act), 

17 expenditures of the Postal Service did not ex18 ceed revenues of the Postal Service (as deter19 mined in accordance with generally accepted ac20 counting principles); 

21 (B) the Authority has approved a Postal 

22 Service financial plan and budget that shows 

23 expenditures of the Postal Service not exceeding 

24 revenues of the Postal Service (as so deter25 mined) for the fiscal year to which such budget 


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1 pertains and each of the next 3 fiscal years; 

2 and 

3 (C) the Postal Service financial plan and 

4 budget (as referred to in subparagraph (B)) in5 cludes plans— 

6 (i) for the repayment of any 

7 collateralized debt authorized by section 

8 503; and 

9 (ii) to properly fund Postal Service 

10 pensions and retiree health benefits in ac11 cordance with applicable provisions of title 

12 5, United States Code. 

13 (5) TERMINATION OF CONTROL PERIOD.— 

14 (A) TERMINATION DATE.— 

15 (i) GENERAL RULE.—Except as pro16 vided in clause (ii), the control period shall 

17 terminate 180 days after the date on which 

18 the certification described in paragraph (4) 

19 is made. 

20 (ii) ALTERNATIVE DATE.— 

21 (I) AUTHORITY.—The Director 

22 of the Office of Management and 

23 Budget may, by written notice given 

24 to the Authority within 15 days after 

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1 scribed in paragraph (4) is made, pro2 vide for an alternative termination 

3 date (in lieu of the date that would 

4 otherwise apply under clause (i)). 

5 (II) RANGE.—An alternative date 

6 under this clause shall not apply un7 less such date occurs not less than 30 

8 days after the date on which written 

9 notice under subclause (I) is given 

10 and not later than 180 days after the 

11 date on which the certification de12 scribed in paragraph (4) is made. 

13 (B) PUBLIC NOTICE.—The Authority shall 

14 cause to be published in the Federal Register— 

15 (i) the date on which the certification 

16 described in paragraph (4) is made, not 

17 later than 1 business day after the date on 

18 which such certification is made; and 

19 (ii) the termination date of the control 

20 period, not later than 16 business days 

21 after the date on which the certification 

22 described in paragraph (4) is made. 

23 SEC. 203. MEMBERSHIP AND QUALIFICATION REQUIRE24 MENTS. 

25 (a) MEMBERSHIP.— 


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1 (1) IN GENERAL.—The Authority shall consist 

2 of 5 members appointed by the President who meet 

3 the qualifications described in subsection (b), except 

4 that the Authority may take any action under this 

5 subtitle at any time after the President has ap6 pointed the initial 4 of its members. Members of the 

7 Authority shall report to the Secretary of the Treas8 ury. 

9 (2) RECOMMENDATIONS.—Of the 5 members so 

10 appointed— 

11 (A) 1 shall be appointed by the President 

12 taking into account any individuals rec13 ommended by the Speaker of the House of Rep14 resentatives; 

15 (B) 1 shall be appointed by the President 

16 taking into account any individuals rec17 ommended by the majority leader of the Senate; 

18 (C) 1 shall be appointed by the President 

19 taking into account any individuals rec20 ommended by the minority leader of the House 

21 of Representatives; 

22 (D) 1 shall be appointed by the President 

23 taking into account any individuals rec24 ommended by the minority leader of the Senate; 

25 and 


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1 (E) 1 shall be appointed by the President 

2 taking into account any individuals rec3 ommended by the Comptroller General. 

4 (3) POLITICAL AFFILIATION.—No more than 3 

5 members of the Authority may be of the same polit6 ical party. 

7 (4) CHAIR.—The President shall designate 1 of 

8 the members of the Authority as the Chair of the 

9 Authority. 

10 (5) SENSE OF CONGRESS REGARDING DEAD11 LINE FOR APPOINTMENT.—It is the sense of Con12 gress that the President should appoint the members 

13 of the Authority as soon as practicable after the 

14 date of enactment of this Act, but no later than 30 

15 days after such date. 

16 (6) TERM OF SERVICE.— 

17 (A) IN GENERAL.—Except as provided in 

18 subparagraph (B), each member of the Author19 ity shall be appointed for a term of 3 years. 

20 (B) APPOINTMENT FOR TERM FOLLOWING

21 INITIAL TERM.—As designated by the President 

22 at the time of appointment for the term imme23 diately following the initial term, of the mem24 bers appointed for the term immediately fol25 lowing the initial term— 


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1 (i) 1 member shall be appointed for a 

2 term of 1 year; 

3 (ii) 2 members shall be appointed for 

4 a term of 2 years; and 

5 (iii) 2 members shall be appointed for 

6 a term of 3 years. 

7 (C) VACANCIES AND SUCCESSION.—Any 

8 member of the Authority appointed to fill a va9 cancy before the expiration of the term for 

10 which the predecessor of the member of the Au11 thority was appointed shall serve for the re12 mainder of such term. 

13 (D) REMOVAL.—The President may re14 move any member of the Authority only for 

15 cause. 

16 (E) COMPENSATION FOR SERVICE.—Each 

17 member of the Authority shall be paid for full18 time service at a rate of pay equivalent to the 

19 rate of basic pay payable for level III of the Ex20 ecutive Schedule under section 5314 of title 5, 

21 United States Code. 

22 (b) QUALIFICATION REQUIREMENTS.— 

23 (1) IN GENERAL.—An individual meets the 

24 qualifications for membership on the Authority if the 

25 individual— 


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1 (A) has significant knowledge and exper2 tise in finance, management, and the organiza3 tion or operation of businesses having more 

4 than 500 employees; and 

5 (B) represents the public interest gen6 erally, is not a representative of specific inter7 ests using or belonging to the Postal Service, 

8 and does not have any business or financial in9 terest in any enterprise in the private sector of 

10 the economy engaged in the delivery of mail 

11 matter. 

12 (2) SPECIFIC CONDITIONS.—An individual shall 

13 not be considered to satisfy paragraph (1)(B) if, at 

14 any time during the 5-year period ending on the 

15 date of appointment, such individual— 

16 (A) has been an officer, employee, or pri17 vate contractor with the Postal Service, United 

18 States Postal Service Inspector General, or the 

19 Postal Regulatory Commission; or 

20 (B) has served as an employee or con21 tractor of a labor organization representing em22 ployees of the Postal Service, the United States 

23 Postal Service Inspector General, or the Postal 

24 Regulatory Commission. 


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1 SEC. 204. ORGANIZATION AND STAFF. 

2 (a) ADOPTION OF BYLAWS FOR CONDUCTING BUSI3 NESS.—As soon as practicable after the appointment of 

4 its members, the Authority shall adopt bylaws, rules, and 

5 procedures governing its activities under this subtitle, in6 cluding procedures for hiring experts and consultants. 

7 Upon adoption, such bylaws, rules, and procedures shall 

8 be submitted by the Authority to the Postmaster General, 

9 the President, and Congress. 

10 (b) EXECUTIVE DIRECTOR AND STAFF.— 

11 (1) EXECUTIVE DIRECTOR.—The Authority 

12 shall have an Executive Director who shall be ap13 pointed by the Chair with the consent of the Author14 ity. The Executive Director shall be paid at a rate 

15 determined by the Authority, except that such rate 

16 may not exceed the rate of basic pay payable for 

17 level IV of the Executive Schedule under section 

18 5315 of title 5, United States Code. 

19 (2) STAFF.—With the approval of the Author20 ity, the Executive Director may appoint and fix the 

21 pay of such additional personnel as the Executive 

22 Director considers appropriate, except that no indi23 vidual appointed by the Executive Director may be 

24 paid at a rate greater than the rate of pay for the 

25 Executive Director. Personnel appointed under this 


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1 paragraph shall serve at the pleasure of the Execu2 tive Director. 

3 (3) INAPPLICABILITY OF CERTAIN CIVIL SERV4 ICE LAWS.—The Executive Director and staff of the 

5 Authority may be appointed without regard to the 

6 provisions of title 5, United States Code, governing 

7 appointments in the competitive service, and paid 

8 without regard to the provisions of chapter 51 and 

9 subchapter III of chapter 53 of such title relating to 

10 classification and General Schedule pay rates. 

11 (4) STAFF OF FEDERAL AGENCIES.—Upon re12 quest of the Chair, the head of any Federal depart13 ment or agency may detail, on a reimbursable or 

14 nonreimbursable basis, any of the personnel of such 

15 department or agency to the Authority to assist it 

16 in carrying out its duties under this subtitle. 

17 SEC. 205. FUNDING. 

18 (a) GENERAL RULE.—There are authorized to be ap19 propriated, out of the Postal Service Fund, such sums as 

20 may be necessary for the Authority. In requesting an ap21 propriation under this section for a fiscal year, the Au22 thority shall prepare and submit to the Congress under 

23 section 2009 of title 39, United States Code, a budget of 

24 the Authority’s expenses, including expenses for facilities, 


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1 supplies, compensation, and employee benefits, not to ex2 ceed $10,000,000. 

3 (b) INITIAL RULE.—Notwithstanding any other pro4 vision of this section, effective as of the date on which 

5 at least 4 members of the Authority have been appointed, 

6 there shall be available to the Authority, out of the Postal 

7 Service Fund, such sums as the Authority may require 

8 in order to carry out this subtitle, not to exceed the 

9 amount equal to the product obtained by multiplying— 

10 (1) the dollar amount specified in subsection 

11 (a), times 

12 (2) a fraction— 

13 (A) the numerator of which is the number 

14 of months remaining in the fiscal year as of the 

15 date on which at least 4 members of the Au16 thority have been appointed (rounding any frac17 tion of a month to the next highest whole num18 ber); and 

19 (B) the denominator of which is 12. 

20 (c) AMENDMENT TO SECTION 2009.—Section 2009 

21 is amended in the next to last sentence— 

22 (1) by striking ‘‘, and (3)’’ and inserting ‘‘, 

23 (3)’’; and 

24 (2) by striking the period and inserting ‘‘, and 

25 (4) the Postal Service Financial Responsibility and 


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1 Management Assistance Authority requests to be ap2 propriated, out of the Postal Service Fund, under 

3 section 205 of the Postal Reform Act of 2013.’’. 

4 SEC. 206. RESPONSIBILITIES AND POWERS. 

5 The exercise of the powers of the Postal Service shall 

6 be directed by the Authority, including— 

7 (1) all duties and responsibilities ascribed to the 

8 Governors and the Board of Governors by title 39, 

9 United States Code; 

10 (2) determining the overall strategies of the 

11 Postal Service; 

12 (3) hiring, monitoring, compensating, and, 

13 when necessary, replacing senior management at the 

14 level of vice president and higher, as well as ensur15 ing adequate succession planning for these positions; 

16 (4) approving major policies, particularly those 

17 that have an important effect on the Postal Service’s 

18 financial position and the provision of universal 

19 postal service; 

20 (5) approving corporate budgets, financial and 

21 capital plans, operational and service performance 

22 standards and targets, human resource strategies, 

23 collective-bargaining strategies, negotiation param24 eters, collective-bargaining agreements, and the com25 pensation structure for nonbargaining employees; 


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1 (6) formulating and communicating organiza2 tional policy and positions on legislative and other 

3 public policy matters to Congress and the public; 

4 and 

5 (7) carrying out any responsibility, not other6 wise listed in this section, that was the responsibility 

7 of the Board of Governors of the Postal Service at 

8 any time during the 5-year period ending on the 

9 date of enactment of this Act. 

10 SEC. 207. DEVELOPMENT OF FINANCIAL PLAN AND BUDG11 ET FOR THE SOLVENCY OF THE POSTAL 

12 SERVICE. 

13 (a) DEVELOPMENT OF FINANCIAL PLAN AND BUDG14 ET.—For each fiscal year during a control period, the 

15 Postmaster General shall submit to the Authority, by Au16 gust 1 before the start of such fiscal year, a financial plan 

17 and budget for such fiscal year for the long-term solvency 

18 of the Postal Service, except that, for fiscal year 2014, 

19 the deadline for submission of the plan and budget under 

20 this subsection shall be the 30th day after a majority of 

21 the Authority take office. If a majority of the Authority 

22 do not take office before August 1, 2014, the requirement 

23 for a financial plan and budget under this subsection for 

24 fiscal year 2014 is waived. 


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1 (b) CONTENTS OF FINANCIAL PLAN AND BUDGET.— 

2 A financial plan and budget under this section for a fiscal 

3 year shall specify the budget for the Postal Service as re4 quired by section 2009 of title 39, United States Code, 

5 for the applicable fiscal year and each of the next 3 fiscal 

6 years, in accordance with the following requirements: 

7 (1) The financial plan and budget shall meet 

8 the requirements described in subsection (c) to pro9 mote the financial stability of the Postal Service. 

10 (2) The financial plan and budget shall— 

11 (A) include the Postal Service’s annual 

12 budget program (under section 2009 of title 39, 

13 United States Code) and the Postal Service’s 

14 plan commonly referred to as its ‘‘Integrated 

15 Financial Plan’’; 

16 (B) describe lump-sum expenditures by all 

17 categories traditionally used by the Postal Serv18 ice; 

19 (C) describe capital expenditures (together 

20 with a schedule of projected capital commit21 ments and cash outlays of the Postal Service 

22 and proposed sources of funding); 

23 (D) contain estimates of overall debt (both 

24 outstanding and anticipated to be issued); and 


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1 (E) contain cash flow and liquidity fore2 casts for the Postal Service at such intervals as 

3 the Authority may require. 

4 (3) The financial plan and budget shall include 

5 a statement describing methods of estimations and 

6 significant assumptions. 

7 (4) The financial plan and budget shall include 

8 any other provisions and shall meet such other cri9 teria as the Authority considers appropriate to meet 

10 the purposes of this subtitle, including provisions 

11 for— 

12 (A) changes in personnel policies and levels 

13 for each component of the Postal Service; and 

14 (B) management initiatives to promote 

15 productivity, improvement in the delivery of 

16 services, or cost savings. 

17 (c) REQUIREMENTS TO PROMOTE FINANCIAL STA18 BILITY.— 

19 (1) IN GENERAL.—The requirements to pro20 mote the solvency and financial stability of the Post21 al Service applicable to the financial plan and budget 

22 for a fiscal year are as follows: 

23 (A) For fiscal year 2016 and each subse24 quent fiscal year during a control period, budg25 eted expenditures of the Postal Service for the 


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1 fiscal year involved may not exceed budgeted 

2 revenues of the Postal Service for the fiscal 

3 year involved. 

4 (B) In each fiscal year where a financial 

5 plan and budget must be developed, the finan6 cial plan and budget shall provide for contin7 uous, substantial progress toward long-term fis8 cal solvency of the Postal Service. 

9 (C) The financial plan and budget shall 

10 provide for the orderly repayment of any out11 standing obligations authorized under section 

12 503. 

13 (D) The financial plan and budget shall 

14 assure the continuing long-term solvency of the 

15 Postal Service, as indicated by factors such as 

16 the efficient management of the Postal Service’s 

17 workforce and the effective provision of services 

18 by the Postal Service. In so doing, the financial 

19 plan and budget shall consider— 

20 (i) the legal authority of the Postal 

21 Service; 

22 (ii) the changes in the legal authority 

23 and responsibilities of the Postal Service 

24 under this Act; 


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1 (iii) any cost savings that the Postal 

2 Service anticipates will be achieved through 

3 negotiations with employees of the Postal 

4 Service; 

5 (iv) projected changes in mail volume; 

6 (v) the impact of regulations the Post7 al Service was required by law to promul8 gate; 

9 (vi) projected changes in the number 

10 of employees needed to carry out the re11 sponsibilities of the Postal Service; and 

12 (vii) the long-term capital needs of the 

13 Postal Service, including the need to main14 tain, repair, and replace facilities and 

15 equipment. 

16 (2) APPLICATION OF SOUND BUDGETARY PRAC17 TICES.—In meeting the requirements described in 

18 paragraph (1) with respect to a financial plan and 

19 budget for a fiscal year, the Postal Service shall 

20 apply sound budgetary practices, including reducing 

21 costs and other expenditures, improving productivity, 

22 increasing revenues, or a combination of such prac23 tices. 

24 (3) ASSUMPTIONS BASED ON CURRENT LAW.— 

25 In meeting the requirements described in paragraph 


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1 (1) with respect to a financial plan and budget for 

2 a fiscal year, the Postal Service shall base estimates 

3 of revenues and expenditures on Federal law as in 

4 effect at the time of the preparation of such finan5 cial plan and budget. 

6 (d) DEFINITION.—For the purposes of this section, 

7 the term ‘‘long-term solvency’’ means the ability of the 

8 Postal Service over the long term to pay debts and meet 

9 expenses, including the ability to perform maintenance 

10 and repairs, make investments, and maintain financial re11 serves, as necessary to fulfill the requirements and comply 

12 with the policies of title 39, United States Code, and other 

13 obligations of the Postal Service. 

14 SEC. 208. PROCESS FOR SUBMISSION AND APPROVAL OF FI15 NANCIAL PLAN AND BUDGET. 

16 (a) REVIEW BY THE AUTHORITY.—Upon receipt of 

17 a financial plan and budget required by section 207, the 

18 Authority shall promptly review such financial plan and 

19 budget. In conducting the review, the Authority may re20 quest any additional information it considers necessary 

21 and appropriate to carry out its duties. 

22 (b) APPROVAL OF POSTMASTER GENERAL’S FINAN23 CIAL PLAN AND BUDGET.— 

24 (1) IN GENERAL.—If the Authority determines 

25 that the final financial plan and budget for the fiscal 


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1 year submitted by the Postmaster General under 

2 subsection (a) meets the requirements of section 

3 207— 

4 (A) the Authority shall approve the finan5 cial plan and budget and shall provide the Post6 master General, the President, the Committee 

7 on Homeland Security and Governmental Af8 fairs in the Senate, and the Committee on 

9 Oversight and Government Reform in the 

10 House of Representatives with a notice certi11 fying its approval; and 

12 (B) the Postmaster General shall promptly 

13 submit the annual budget program for the rel14 evant fiscal year to the Office of Management 

15 and Budget pursuant to section 2009 of title 

16 39, United States Code. 

17 (2) DEEMED APPROVAL AFTER 30 DAYS.—If 

18 the Authority has not provided the Postmaster Gen19 eral, the President, and Congress with a notice certi20 fying approval under paragraph (1)(A) or a state21 ment of disapproval under subsection (c) before the 

22 expiration of the 30-day period which begins on the 

23 date the Authority receives the financial plan and 

24 budget from the Postmaster General under sub25 section (a), the Authority shall be deemed to have 


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1 approved the financial plan and budget and to have 

2 provided the Postmaster General, the President, the 

3 Committee on Homeland Security and Governmental 

4 Affairs in the Senate, and the Committee on Over5 sight and Government Reform in the House of Rep6 resentatives with the notice certifying approval 

7 under paragraph (1)(A). 

8 (c) DISAPPROVAL OF POSTMASTER GENERAL’S FI9 NANCIAL PLAN AND BUDGET.— 

10 (1) IN GENERAL.—If, after reviewing the finan11 cial plan and budget for a fiscal year submitted by 

12 the Postmaster General under subsection (a) in ac13 cordance with the procedures described in this sec14 tion, the Authority determines that the revised final 

15 financial plan and budget does not meet the applica16 ble requirements under section 207, the Authority 

17 shall— 

18 (A) disapprove the financial plan and 

19 budget; 

20 (B) provide the Postmaster General, the 

21 President, and Congress with a statement con22 taining the reasons for such disapproval and de23 scribing the amount of any shortfall in the fi24 nancial plan and budget; and 


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1 (C) approve and recommend a financial 

2 plan and budget for the Postal Service which 

3 meets the applicable requirements under section 

4 207, and submit such financial plan and budget 

5 to the Postmaster General, the President, the 

6 Committee on Homeland Security and Govern7 mental Affairs in the Senate, and the Com8 mittee on Oversight and Government Reform in 

9 the House of Representatives. 

10 (2) SUBMISSION TO OMB.—Upon receipt of the 

11 recommended financial plan and budget under para12 graph (1)(C), the Postmaster General shall promptly 

13 submit the recommended annual budget program to 

14 the Office of Management and Budget pursuant to 

15 section 2009 of title 39, United States Code. 

16 (d) DEADLINE FOR TRANSMISSION OF FINANCIAL

17 PLAN AND BUDGET BY THE AUTHORITY.—Notwith18 standing any other provision of this section, not later than 

19 September 30th before the start of each fiscal year for 

20 which a financial plan and budget is required, the Author21 ity shall— 

22 (1) provide Congress with a notice certifying its 

23 approval of the Postmaster General’s financial plan 

24 and budget for the fiscal year under subsection (c); 

25 or 


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1 (2) submit to Congress an approved and rec2 ommended financial plan and budget developed by 

3 the Authority for the fiscal year under subsection 

4 (c)(1)(C). 

5 (e) REVISIONS TO FINANCIAL PLAN AND BUDGET.— 

6 (1) PERMITTING POSTMASTER GENERAL TO

7 SUBMIT REVISIONS.—The Postmaster General may 

8 submit proposed revisions to the financial plan and 

9 budget for the control period to the Authority at any 

10 time during the fiscal year. 

11 (2) PROCESS FOR REVIEW, APPROVAL, DIS12 APPROVAL, AND POSTMASTER GENERAL ACTION.— 

13 The procedures described in subsections (b), (c), and 

14 (d) shall apply with respect to a proposed revision to 

15 a financial plan and budget in the same manner as 

16 such procedures apply with respect to the original fi17 nancial plan and budget. 

18 (f) REQUIREMENTS OF THE AUTHORITY.— 

19 (1) IN GENERAL.—It shall be the policy of the 

20 Authority to direct the Postal Service to take any 

21 action necessary and permitted by law to ensure that 

22 the approved financial plan and budget is fully im23 plemented over the course of each fiscal year and 

24 that the budgetary goals for expenses and revenues 

25 are achieved. 


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1 (2) ADDITIONAL FIDUCIARY ACTIONS.—In addi2 tion to paragraph (1), the Authority shall take any 

3 additional actions it deems necessary and permitted 

4 by law to ensure the requirements of the financial 

5 plan and budget are achieved in practice so that the 

6 total revenue of the Postal Service exceeds its total 

7 operating expenses for the full fiscal year not later 

8 than fiscal year 2016 and each fiscal year thereafter. 

9 Such actions may include accelerating the conversion 

10 of door delivery points to more cost-effective delivery 

11 methods, the consolidation of additional mail proc12 essing facilities, transition to a 2-day or 3-day First13 Class Mail delivery standard for the continental 

14 United States, and any other action consistent with 

15 this Act and the provisions of title 39, United States 

16 Code. For the purposes of this paragraph, the term 

17 ‘‘total operating expenses’’ refers to all categories of 

18 expenses identified under that term in the Report on 

19 Form 10–K filed by the Postal Service for fiscal 

20 year 2012. 

21 SEC. 209. DISSOLUTION OF THE AUTHORITY; RECONSTITU22 TION OF THE BOARD OF GOVERNORS. 

23 (a) IN GENERAL.—Effective as of the date on which 

24 the control period terminates (as determined under section 

25 202(b)(5))— 


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1 (1) the Authority is dissolved; and 

2 (2) section 202 of title 39, United States Code 

3 (as amended by section 202(b)(2)(A) of this Act) is 

4 amended by inserting after the section heading the 

5 following: 

6 ‘‘(a)(1) The exercise of the power of the Postal Serv7 ice shall be directed by a Board of Governors composed 

8 of 5 members appointed in accordance with this section. 

9 The members, to be known as Governors, shall be ap10 pointed by the President, by and with the advice and con11 sent of the Senate. Not more than 3 of the Governors may 

12 be adherents of the same political party. The Governors 

13 shall elect a Chairman from among the individual Gov14 ernors. The Governors shall represent the public interest 

15 generally, and shall be chosen solely on the basis of their 

16 experience in the field of public administration, law, or ac17 counting, or on their demonstrated ability in managing or18 ganizations or corporations (in either the public or private 

19 sector) of substantial size; except that at least 3 of the 

20 Governors shall be chosen solely on the basis of their dem21 onstrated ability in managing organizations or corpora22 tions (in either the public or private sector) that employ 

23 at least 10,000 employees. The Governors shall not be rep24 resentatives of specific interests using the Postal Service, 

25 and may be removed only for cause. Each Governor shall 


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1 receive a salary of $30,000 a year plus $300 a day for 

2 not more than 42 days of meetings each year and shall 

3 be reimbursed for travel and reasonable expenses incurred 

4 in attending meetings of the Board. Nothing in the pre5 ceding sentence shall be construed to limit the number of 

6 days of meetings each year to 42 days. 

7 ‘‘(2) In selecting the individuals described in para8 graph (1) for nomination for appointment to the position 

9 of Governor, the President should consult with the Speak10 er of the House of Representatives, the minority leader 

11 of the House of Representatives, the majority leader of 

12 the Senate, and the minority leader of the Senate. 

13 ‘‘(3) Not later than 60 days after the end of each 

14 fiscal year, the Board of Governors shall submit an 

15 itemized report describing all travel and reimbursable 

16 business travel expenses paid to each Governor when per17 forming Board duties to the Committee on Oversight and 

18 Government Reform of the House of Representatives and 

19 the Committee on Homeland Security and Governmental 

20 Affairs of the Senate. The report submitted under this 

21 paragraph shall include a detailed justification for any 

22 travel or reimbursable business travel expense that devi23 ates from the Board’s travel and reimbursable business 

24 travel expense policies and guidelines under paragraph 

25 (1). 


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1 ‘‘(b)(1) The terms of the 5 Governors shall be 7 

2 years, except that— 

3 ‘‘(A) upon the reconstitution of the Board of 

4 Governors pursuant to the Postal Reform Act of 

5 2013— 

6 ‘‘(i) the 5 members last comprising the 

7 Postal Service Financial Responsibility and 

8 Management Assistance Authority before the 

9 termination of the control period (as defined in 

10 section 202(b)(1) of the Postal Reform Act of 

11 2013) shall become the initial members of the 

12 reconstituted Board of Governors; and 

13 ‘‘(ii) the term of each of the 5 respective 

14 individuals under clause (i) shall expire at the 

15 end of the term which would have applied with 

16 respect to that individual, if— 

17 ‘‘(I) the control period (as so defined) 

18 had not terminated; and 

19 ‘‘(II) such individual had remained a 

20 member of the Postal Service Financial 

21 Responsibility and Management Assistance 

22 Authority; and 

23 ‘‘(B) the terms of the Governors first taking of24 fice after the initial Governors of the reconstituted 

25 Board (as described in subparagraph (A)) shall be 


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1 as fixed by the President at the time of their ap2 pointment, except that each such term— 

3 ‘‘(i) shall be for a period of years not less 

4 than 3 years and not more than 7 years; and 

5 ‘‘(ii) shall be fixed such that the term of 

6 not more than 1 Governor is thereafter sched7 uled to expire in any calendar year (determined 

8 disregarding the term of an initial Governor ex9 piring as described in subparagraph (A)(ii)). 

10 ‘‘(2) Any Governor appointed to fill a vacancy before 

11 the expiration of the term for which his predecessor was 

12 appointed shall serve for the remainder of such term. A 

13 Governor may continue to serve after the expiration of his 

14 term until his successor has qualified, but not to exceed 

15 1 year. 

16 ‘‘(3) No person may serve more than 14 years as a 

17 Governor. For purposes of the preceding sentence, there 

18 shall be taken into account any period served as a member 

19 of— 

20 ‘‘(A) the Postal Service Financial Responsibility 

21 and Management Assistance Authority; or 

22 ‘‘(B) the Board of Governors, as constituted be23 fore the start of the control period.’’. 

24 (b) CONFORMING AMENDMENTS.— 


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1 (1) Section 102(3) is amended by striking ‘‘9’’ 

2 and inserting ‘‘5’’; and 

3 (2) Section 205(c) is amended by striking all 

4 after ‘‘present, and’’ and inserting ‘‘an absolute ma5 jority of the Governors in office shall constitute a 

6 quorum for the transaction of business by the 

7 Board.’’. 

8 Subtitle B—Other Matters 

9 SEC. 211. APPOINTMENT OF THE POSTAL SERVICE INSPEC10 TOR GENERAL. 

11 (a) APPOINTMENT OF INSPECTOR GENERAL OF THE

12 POSTAL SERVICE BY PRESIDENT.—The Inspector General 

13 Act of 1978 (5 U.S.C. App.) is amended— 

14 (1) in section 8G— 

15 (A) in subsection (a)— 

16 (i) in paragraph (2), by striking ‘‘the 

17 Postal Regulatory Commission, and the 

18 United States Postal Service’’ and insert19 ing ‘‘and the Postal Regulatory Commis20 sion’’; 

21 (ii) in paragraph (3), by striking 

22 ‘‘subsection (h)(1)’’ and inserting ‘‘sub23 section (g)(1)’’; and 

24 (iii) in paragraph (4)— 


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1 (I) in the matter preceding sub2 paragraph (A), by striking ‘‘sub3 section (h)(1)’’ and inserting ‘‘sub4 section (g)(1)’’; 

5 (II) by striking subparagraph 

6 (B); and 

7 (III) by redesignating subpara8 graphs (C) through (H) as subpara9 graphs (B) through (G), respectively; 

10 (B) in subsection (c), by striking ‘‘Except 

11 as provided under subsection (f) of this section, 

12 the’’ and inserting ‘‘The’’; 

13 (C) by striking subsection (f); and 

14 (D) by redesignating subsections (g) and 

15 (h) as subsections (f) and (g), respectively; 

16 (2) by inserting after section 8L the following: 

17 ‘‘SEC. 8M. SPECIAL PROVISIONS CONCERNING THE INSPEC18 TOR GENERAL OF THE UNITED STATES POST19 AL SERVICE. 

20 ‘‘(a) OVERSIGHT OF POSTAL INSPECTION SERV21 ICE.—In carrying out the duties and responsibilities speci22 fied in this Act, the Inspector General of the United States 

23 Postal Service (in this section referred to as the ‘Inspector 

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1 nal investigation performed by the Postal Inspection Serv2 ice. The Chief Postal Inspector shall promptly report the 

3 significant activities being carried out by the Postal In4 spection Service to such Inspector General. 

5 ‘‘(b) SUPERVISION; ADDITIONAL DUTIES AND RE6 SPONSIBILITIES; REPORT.— 

7 ‘‘(1) AUTHORITY, DIRECTION, AND CONTROL.— 

8 ‘‘(A) AUDITS, INVESTIGATIONS, SUB9 POENAS.—The Inspector General shall be under 

10 the authority, direction, and control of the Gov11 ernors with respect to audits or investigations, 

12 or the issuance of subpoenas, which require ac13 cess to sensitive information concerning— 

14 ‘‘(i) ongoing civil or criminal inves15 tigations or proceedings; 

16 ‘‘(ii) undercover operations; 

17 ‘‘(iii) the identity of confidential 

18 sources, including protected witnesses; 

19 ‘‘(iv) intelligence or counterintel20 ligence matters; or 

21 ‘‘(v) other matters the disclosure of 

22 which would constitute a serious threat to 

23 national security. 

24 ‘‘(B) AUTHORITY OF GOVERNORS.—With 

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1 paragraph (A), the Governors may prohibit the 

2 Inspector General from carrying out or com3 pleting any audit or investigation, or from 

4 issuing any subpoena, after such Inspector Gen5 eral has decided to initiate, carry out, or com6 plete such audit or investigation or to issue 

7 such subpoena, if the Governors determine that 

8 such prohibition is necessary to prevent the dis9 closure of any information described under sub10 paragraph (A) or to prevent the significant im11 pairment to the national interests of the United 

12 States. 

13 ‘‘(C) NOTICE REQUIRED.—If the Gov14 ernors exercise any power under subparagraph 

15 (A) or (B), the Governors shall notify the In16 spector General in writing stating the reasons 

17 for such exercise. Within 30 days after receipt 

18 of any such notice, the Inspector General shall 

19 transmit a copy of such notice to the Com20 mittee on Homeland Security and Govern21 mental Affairs of the Senate and the Committee 

22 on Oversight and Government Reform of the 

23 House of Representatives, and to other appro24 priate committees or subcommittees of the Con25 gress. 


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1 ‘‘(2) ADDITIONAL DUTIES AND RESPONSIBIL2 ITIES.—In carrying out the duties and responsibil3 ities specified in this Act, the Inspector General— 

4 ‘‘(A) may initiate, conduct, and supervise 

5 such audits and investigations in the United 

6 States Postal Service as the Inspector General 

7 considers appropriate; and 

8 ‘‘(B) shall give particular regard to the ac9 tivities of the Postal Inspection Service with a 

10 view toward avoiding duplication and insuring 

11 effective coordination and cooperation. 

12 ‘‘(3) REPORT REQUIRED.—Any report required 

13 to be transmitted by the Governors to the appro14 priate committees or subcommittees of the Congress 

15 under section 5(d) shall also be transmitted, within 

16 the seven-day period specified under such section, to 

17 the Committee on Homeland Security and Govern18 mental Affairs of the Senate and the Committee on 

19 Oversight and Government Reform of the House of 

20 Representatives. 

21 ‘‘(c) GOVERNORS DEFINED.—As used in this section, 

22 the term ‘Governors’ has the meaning given such term by 

23 section 102(3) of title 39, United States Code. 

24 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

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1 ice Fund, such sums as may be necessary for the Office 

2 of Inspector General of the United States.’’; and 

3 (3) in section 12— 

4 (A) in paragraph (1), by striking ‘‘or the 

5 Federal Cochairpersons of the Commissions es6 tablished under section 15301 of title 40, 

7 United States Code’’ and inserting ‘‘the Federal 

8 Cochairpersons of the Commissions established 

9 under section 15301 of title 40, United States 

10 Code; or the Board of Governors of the United 

11 States Postal Service’’; and 

12 (B) in paragraph (2), by striking ‘‘or the 

13 Commissions established under section 15301 

14 of title 40, United States Code’’ and inserting 

15 ‘‘the Commissions established under section 

16 15301 of title 40, United States Code, or the 

17 United States Postal Service’’. 

18 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

19 Title 39, United States Code, is amended— 

20 (1) in section 102(4), by striking ‘‘section 

21 202(e) of this title’’ and inserting ‘‘section 3 of the 

22 Inspector General Act of 1978 (5 U.S.C. App.)’’; 

23 (2) in section 1001(b), in the first sentence, by 

24 inserting ‘‘and section 3 of the Inspector General 


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1 Act of 1978 (5 U.S.C. App.)’’ after ‘‘1001(c) of this 

2 title’’; 

3 (3) in section 1003(a), by striking ‘‘8G’’ and in4 serting ‘‘8M’’; 

5 (4) in section 1005(a)(3), by inserting ‘‘and 

6 section 3 of the Inspector General Act of 1978 (5 

7 U.S.C. App.)’’ after ‘‘1001(c) of this title’’; 

8 (5) in section 2003(e) by striking ‘‘8G(f)’’ and 

9 inserting ‘‘8M(d)’’; and 

10 (6) in section 2009 by striking ‘‘8G(f)’’ and in11 serting ‘‘8M(d)’’. 

12 (c) APPLICABILITY.— 

13 (1) IN GENERAL.—The amendments made by 

14 this section shall apply with respect to the first indi15 vidual appointed as Inspector General of the Postal 

16 Service after the date of enactment of this Act. 

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

18 Act may be construed to alter the authority or the 

19 length of the term of the individual serving as In20 spector General of the Postal Service on the date of 

21 enactment of this Act. 

22 SEC. 212. MEMBERSHIP OF THE BOARD OF GOVERNORS. 

23 (a) POSTMASTER GENERAL.—Section 202(c) is 

24 amended to read as follows: 


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1 ‘‘(c) The Governors shall appoint and shall have the 

2 power to remove the Postmaster General. His pay and 

3 term of service shall be fixed by the Governors.’’. 

4 (b) DEPUTY POSTMASTER GENERAL.—Section 

5 202(d) is amended to read as follows: 

6 ‘‘(d) The Governors shall appoint and shall have the 

7 power to remove the Deputy Postmaster General. His 

8 term of service shall be fixed by the Governors and the 

9 Postmaster General and his pay by the Governors.’’. 

10 TITLE III—POSTAL SERVICE 

11 WORKFORCE 

12 SEC. 301. APPLICABILITY OF REDUCTION-IN-FORCE PROCE13 DURES. 

14 Section 1206 is amended by adding at the end the 

15 following: 

16 ‘‘(d) Collective-bargaining agreements between the 

17 Postal Service and bargaining representatives recognized 

18 under section 1203, ratified after the date of enactment 

19 of this subsection, shall contain no provision restricting 

20 the applicability of reduction-in-force procedures under 

21 title 5 with respect to members of the applicable bar22 gaining unit. 

23 ‘‘(e)(1) If a collective-bargaining agreement between 

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1 ment of this subsection, includes reduction-in-force proce2 dures which can be applied in lieu of reduction-in-force 

3 procedures under title 5, the Postal Service may, in its 

4 discretion, apply with respect to members of the applicable 

5 bargaining unit— 

6 ‘‘(A) the alternative procedures (or, if 2 or 

7 more are agreed to, 1 of the alternative procedures); 

8 or 

9 ‘‘(B) the reduction-in-force procedures under 

10 title 5. 

11 ‘‘(2) In no event may, if procedures for the resolution 

12 of a dispute or impasse arising in the negotiation of a col13 lective-bargaining agreement (whether through binding ar14 bitration or otherwise) are invoked under this chapter, the 

15 award or other resolution reached under such procedures 

16 provide for the elimination of, or the substitution of any 

17 alternative procedures in lieu of, reduction-in-force proce18 dures under title 5.’’. 

19 SEC. 302. POSTAL SERVICE FEHBP AND FEGLI FUNDING RE20 QUIREMENTS. 

21 Section 1005(d)(1) is amended— 

22 (1) in the first sentence, by striking ‘‘chapters 

23 83 and 84’’ and inserting ‘‘chapters 83, 84, 87, and 

24 89’’; and 


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1 (2) by adding at the end the following: ‘‘Begin2 ning not later than January 1, 2020, the Postal 

3 Service shall withhold from pay and shall pay into 

4 the Employees Life Insurance Fund and the Em5 ployee Health Benefits Fund the amounts specified 

6 in or determined under chapters 87 and 89, respec7 tively.’’. 

8 SEC. 303. REPEAL OF PROVISION RELATING TO OVERALL 

9 VALUE OF FRINGE BENEFITS. 

10 The last sentence of section 1005(f) is repealed. 

11 SEC. 304. MODIFICATIONS RELATING TO DETERMINATION 

12 OF PAY COMPARABILITY. 

13 (a) POSTAL POLICY.—The first sentence of section 

14 101(c) is amended— 

15 (1) by inserting ‘‘total’’ before ‘‘rates and types 

16 of compensation’’; and 

17 (2) by inserting ‘‘entire’’ before ‘‘private sec18 tor’’. 

19 (b) EMPLOYMENT POLICY.—The second sentence of 

20 section 1003(a) is amended— 

21 (1) by inserting ‘‘total’’ before ‘‘compensation 

22 and benefits’’ each place it appears; and 

23 (2) by inserting ‘‘entire’’ before ‘‘private sec24 tor’’. 


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1 (c) CONSIDERATIONS.—For purposes of the amend2 ments made by this section, any determination of ‘‘total 

3 rates and types of compensation’’ or ‘‘total compensation 

4 and benefits’’ shall, at a minimum, take into account pay, 

5 health benefits, retirement benefits, life insurance benefits, 

6 leave, holidays, and continuity and stability of employ7 ment. 

8 SEC. 305. LAST-BEST-FINAL-OFFER NEGOTIATIONS. 

9 Section 1207 is amended by striking subsections (c) 

10 and (d) and inserting the following: 

11 ‘‘(c)(1) If no agreement is reached within 30 days 

12 after the appointment of a mediator under subsection (b), 

13 or if the parties decide upon arbitration before the expira14 tion of the 30-day period, an arbitration board shall be 

15 established consisting of 1 member selected by the Postal 

16 Service (from the list under paragraph (2)), 1 member se17 lected by the bargaining representative of the employees 

18 (from the list under paragraph (2)), and the mediator ap19 pointed under subsection (b). 

20 ‘‘(2) Upon receiving a request from either of the par21 ties referred to in paragraph (1), the Director of the Fed22 eral Mediation and Conciliation Service shall provide a list 

23 of not less than 9 individuals who are well qualified to 

24 serve as neutral arbitrators. Each person listed shall be 

25 an arbitrator of nationwide reputation and professional 


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1 nature, a member of the National Academy of Arbitrators, 

2 and an individual whom the Director has determined to 

3 be willing and available to serve. If, within 7 days after 

4 the list is provided, either of the parties has not selected 

5 an individual from the list, the Director shall make the 

6 selection within 3 days. 

7 ‘‘(3) The arbitration board shall give the parties a 

8 full and fair hearing, including an opportunity to present 

9 evidence in support of their claims, and an opportunity 

10 to present their case in person, by counsel, or by other 

11 representative as they may elect. The hearing shall be con12 cluded no more than 40 days after the arbitration board 

13 is established. 

14 ‘‘(4) No more than 7 days after the hearing is con15 cluded, each party shall submit to the arbitration board 

16 2 offer packages, each of which packages shall specify the 

17 terms of a proposed final agreement. 

18 ‘‘(5) If no agreement is reached within 7 days after 

19 the last day allowable for the submission of an offer pack20 age under paragraph (4), each party shall submit to the 

21 arbitration board a single, final offer package specifying 

22 the terms of a proposed final agreement. 

23 ‘‘(6) No later than 3 days after the submission of 

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1 tion board shall select 1 of those packages as its tentative 

2 award, subject to paragraph (7). 

3 ‘‘(7)(A) The arbitration board may not select a final 

4 offer package under paragraph (6) unless it satisfies each 

5 of the following: 

6 ‘‘(i) The offer complies with the requirements of 

7 sections 101(c) and 1003(a). 

8 ‘‘(ii) The offer takes into account the current fi9 nancial condition of the Postal Service. 

10 ‘‘(iii) The offer takes into account the long-term 

11 financial condition of the Postal Service. 

12 ‘‘(B)(i) If the board unanimously determines, based 

13 on clear and convincing evidence presented during the 

14 hearing under paragraph (3), that neither final offer pack15 age satisfies the conditions set forth in subparagraph (A), 

16 the board shall by majority vote— 

17 ‘‘(I) select the package that best meets such 

18 conditions; and 

19 ‘‘(II) modify the package so selected to the min20 imum extent necessary to satisfy such conditions. 

21 ‘‘(ii) If modification (as described in subparagraph 

22 (B)(i)(II)) is necessary, the board shall have an additional 

23 7 days to render its tentative award under this subpara24 graph. 


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1 ‘‘(8) The parties may negotiate a substitute award 

2 to replace the tentative award selected under paragraph 

3 (6) or rendered under paragraph (7) (as the case may be). 

4 If no agreement on a substitute award is reached within 

5 10 days after the date on which the tentative award is 

6 so selected or rendered, the tentative award shall become 

7 final. 

8 ‘‘(9) The arbitration board shall review any substitute 

9 award negotiated under paragraph (8) to determine if it 

10 satisfies the conditions set forth in paragraph (7)(A). If 

11 the arbitration board, by a unanimous vote taken within 

12 3 days after the date on which the agreement on the sub13 stitute award is reached under paragraph (8), determines 

14 that the substitute award does not satisfy such conditions, 

15 the tentative award shall become final. In the absence of 

16 a vote, as described in the preceding sentence, the sub17 stitute agreement shall become final. 

18 ‘‘(10) If, under paragraph (5), neither party submits 

19 a final offer package by the last day allowable under such 

20 paragraph, the arbitration board shall develop and issue 

21 a final award no later than 20 days after such last day. 

22 ‘‘(11) A final award or agreement under this sub23 section shall be conclusive and binding upon the parties. 


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1 ‘‘(12) Costs of the arbitration board and mediation 

2 shall be shared equally by the Postal Service and the bar3 gaining representative. 

4 ‘‘(d) In the case of a bargaining unit whose recog5 nized collective-bargaining representative does not have an 

6 agreement with the Postal Service, if the parties fail to 

7 reach agreement within 90 days after the commencement 

8 of collective bargaining, a mediator shall be appointed in 

9 accordance with the provisions of subsection (b), unless 

10 the parties have previously agreed to another procedure 

11 for a binding resolution of their differences. If the parties 

12 fail to reach agreement within 180 days after the com13 mencement of collective bargaining, an arbitration board 

14 shall be established to provide conclusive and binding arbi15 tration in accordance with the provisions of subsection 

16 (c).’’. 

17 SEC. 306. POSTAL SERVICE WORKERS’ COMPENSATION RE18 FORM. 

19 (a) IN GENERAL.—Effective 12 months after the 

20 triggering date of this section (as defined in subsection 

21 (e)(2)), section 1005 is amended by striking subsection (c) 

22 and inserting the following: 

23 ‘‘(c)(1) For purposes of this subsection— 


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1 ‘‘(A) the term ‘postal employee’ means an offi2 cer or employee of the Postal Service or the former 

3 Post Office Department; and 

4 ‘‘(B) the term ‘retirement age’ has the meaning 

5 given such term under section 216(l)(1) of the Social 

6 Security Act. 

7 ‘‘(2) The Postal Service shall design and administer 

8 a program for the payment of benefits for the disability 

9 or death of an individual resulting from personal injury 

10 sustained while in the performance of such individual’s du11 ties as a postal employee. 

12 ‘‘(3) The program under this subsection— 

13 ‘‘(A) shall be designed by the Postal Service in 

14 consultation with appropriate employee representa15 tives; 

16 ‘‘(B) shall not provide for any amount payable 

17 to a disabled postal employee to be augmented on 

18 the basis of number of dependents; and 

19 ‘‘(C) shall include provisions for automatic 

20 transition, upon attainment of retirement age, to 

21 benefits involving, coordinated with, or otherwise de22 termined by reference to retirement benefits.’’. 

23 (b) RECOMMENDATIONS.—Not later than 6 months 

24 after the triggering date— 


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1 (1) the Office of Personnel Management shall 

2 submit to the appropriate committees of Congress 

3 recommendations for any legislation or administra4 tive actions which the Office considers necessary to 

5 carry out the purposes of this section with respect 

6 to any matter within the jurisdiction of the Office, 

7 including any amendments which may be necessary 

8 with respect to chapter 87 or 89 of title 5, United 

9 States Code; and 

10 (2) the Postal Service shall submit to the ap11 propriate committees of Congress recommendations 

12 for any legislation which the Postal Service considers 

13 necessary to carry out the purposes of this section 

14 with respect to any matter within the jurisdiction of 

15 the Postal Service. 

16 (c) NOTIFICATION REQUIREMENTS.—Not later than 

17 9 months after the triggering date, the Postal Service shall 

18 submit to the appropriate committees of Congress and 

19 shall cause to be published in the Federal Register a de20 scription of the program proposed by the Postal Service 

21 for implementation under section 1005(c) of title 39, 

22 United States Code, as amended by subsection (a). In23 cluded in the notification provided under the preceding 

24 sentence shall be— 


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1 (1) a detailed statement of the benefits to be of2 fered and the persons eligible to receive those bene3 fits; 

4 (2) provisions to ensure an orderly transition to 

5 the system proposed to be implemented; and 

6 (3) such other information as the Postal Service 

7 considers appropriate. 

8 (d) COMMENCEMENT DATE.—The program under 

9 section 1005(c) of title 39, United States Code, as amend10 ed by subsection (a)— 

11 (1) shall begin to operate on such date as the 

12 Postmaster General shall determine, except that 

13 such date shall be a date occurring— 

14 (A) not earlier than 12 months after the 

15 triggering date; and 

16 (B) not later than 24 months after the 

17 triggering date; and 

18 (2) shall apply with respect to amounts payable 

19 for periods beginning on or after the date on which 

20 the program begins to operate, irrespective of date 

21 of the disability or death to which such amounts re22 late. 

23 (e) CONDITION PRECEDENT.— 

24 (1) IN GENERAL.—The preceding provisions of 

25 this section shall not become effective until the date 


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1 on which the Postal Service Financial Responsibility 

2 and Management Assistance Authority (established 

3 under section 202)— 

4 (A) makes a written determination that 

5 conditions warrant their implementation; and 

6 (B) submits such written determination to 

7 the Postal Service, the Office of Personnel 

8 Management, and the appropriate committees 

9 of Congress. 

10 (2) TRIGGERING DATE.—For purposes of this 

11 section, the term ‘‘triggering date of this section’’ or 

12 ‘‘triggering date’’ means the date described in para13 graph (1). 

14 (f) APPROPRIATE COMMITTEES OF CONGRESS DE15 FINED.—For purposes of this section, the term ‘‘appro16 priate committees of Congress’’ means— 

17 (1) the Committee on Oversight and Govern18 ment Reform of the House of Representatives; and 

19 (2) the Committee on Homeland Security and 

20 Governmental Affairs of the Senate. 

21 SEC. 307. REPORTING REQUIREMENT. 

22 (a) IN GENERAL.—Chapter 10 is amended by adding 

23 at the end the following: 


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1 ‘‘§ 1012. Official time reporting 

2 ‘‘(a) Not later than March 31 of each calendar year, 

3 the Postal Service, in consultation with the Office of Man4 agement and Budget, shall submit to each House of Con5 gress a report on the operation of this section during the 

6 fiscal year last ending before the start of such calendar 

7 year. 

8 ‘‘(b) Each report by the Postal Service under this 

9 subsection shall include, with respect to the fiscal year de10 scribed in subsection (a), at least the following informa11 tion: 

12 ‘‘(1) The total amount of official time granted 

13 to employees. 

14 ‘‘(2) The average amount of official time ex15 pended per bargaining unit employee. 

16 ‘‘(3) The specific types of activities or purposes 

17 for which official time was granted, and the impact 

18 which the granting of such official time for such ac19 tivities or purposes had on agency operations. 

20 ‘‘(4) The total number of employees to whom 

21 official time was granted, and, of that total, the 

22 number who were not engaged in any activities or 

23 purposes except activities or purposes involving the 

24 use of official time. 

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1 tion with activities or purposes for which they were 

2 granted official time. 

3 ‘‘(c) All information included in a report by the Post4 al Service under this subsection with respect to a fiscal 

5 year— 

6 ‘‘(1) shall be shown both for each supervisory 

7 and managerial organization recognized under sec8 tion 1004 and labor organization recognized under 

9 section 1203 and for all organizations together; and 

10 ‘‘(2) shall be accompanied by the corresponding 

11 information (submitted by the Postal Service in its 

12 report under this subsection) for the fiscal year be13 fore the fiscal year to which such report pertains, to14 gether with appropriate comparisons and analyses. 

15 ‘‘(d) For purposes of this subsection, the term ‘offi16 cial time’ means any period of time, regardless of Postal 

17 Service nomenclature— 

18 ‘‘(1) which may be granted to an employee 

19 under this chapter or chapter 12 (including a collec20 tive-bargaining agreement entered into under chap21 ter 12) to perform representational or consultative 

22 functions; and 

23 ‘‘(2) during which the employee would otherwise 

24 be in a duty status.’’. 


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1 (b) APPLICABILITY.—The amendment made by sub2 section (a) shall be effective beginning with the report 

3 which, under the provisions of such amendment, is first 

4 required to be submitted by the Postal Service to each 

5 House of Congress by a date which occurs at least 6 

6 months after the date of the enactment of this Act. 

7 (c) CLERICAL AMENDMENT.—The table of sections 

8 for chapter 10 is amended by adding at the end the fol9 lowing: 

‘‘1012. Official time reporting.’’. 

10 TITLE IV—POSTAL SERVICE 

11 REVENUE 

12 SEC. 401. ADEQUACY, EFFICIENCY, AND FAIRNESS OF POST13 AL RATES. 

14 (a) IN GENERAL.—Section 3622(d) is amended— 

15 (1) in paragraph (1)— 

16 (A) by redesignating subparagraphs (B) 

17 through (E) as subparagraphs (D) through (G), 

18 respectively; and 

19 (B) by inserting after subparagraph (A) 

20 the following: 

21 ‘‘(B) subject to the limitation under sub22 paragraph (A), establish postal rates to fulfill 

23 the requirement that each market-dominant 

24 class, product, and type of mail service (except 

25 for an experimental product or service) bear the 


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1 direct and indirect postal costs attributable to 

2 such class, product, or type through reliably 

3 identified causal relationships plus that portion 

4 of all other costs of the Postal Service reason5 ably assignable to such class, product, or type; 

6 ‘‘(C) establish postal rates for each group 

7 of functionally equivalent agreements between 

8 the Postal Service and users of the mail that— 

9 ‘‘(i) cover attributable cost; 

10 ‘‘(ii) improve the net financial position 

11 of the Postal Service; and 

12 ‘‘(iii) do not cause unreasonable dis13 ruption in the marketplace, consistent with 

14 subsection (c)(10)(B); 

15 for purposes of this subparagraph, a group of 

16 functionally equivalent agreements shall consist 

17 of all service agreements that are functionally 

18 equivalent to each other within the same mar19 ket-dominant product, but shall not include 

20 agreements within an experimental product;’’; 

21 (2) in paragraph (3), by striking ‘‘subsection 

22 (c),’’ and inserting ‘‘subsection (c) and the provi23 sions of title IV of the Postal Reform Act of 2013,’’; 

24 and 

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


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1 ‘‘(4) PRC STUDY.— 

2 ‘‘(A) IN GENERAL.—Within 90 days after 

3 the end of the first fiscal year beginning after 

4 the date of enactment of the Postal Reform Act 

5 of 2013, the Postal Regulatory Commission 

6 shall complete a study to determine the quan7 titative impact of the Postal Service’s excess ca8 pacity on the direct and indirect postal costs at9 tributable to any class that bears less than 100 

10 percent of its costs attributable (as described in 

11 paragraph (1)(B)), according to the most recent 

12 annual determination of the Postal Regulatory 

13 Commission under section 3653. 

14 ‘‘(B) REQUIREMENTS.—The study re15 quired under subparagraph (A) shall— 

16 ‘‘(i) be conducted pursuant to regula17 tions that the Postal Regulatory Commis18 sion shall prescribe within 90 days after 

19 the date of enactment of the Postal Re20 form Act of 2013, taking into account ex21 isting regulations for proceedings to im22 prove the quality, accuracy, or complete23 ness of ratemaking information under sec24 tion 3652(e)(2) in effect on such date; and 


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1 ‘‘(ii) for any year in which any class 

2 of mail bears less than 100 percent of its 

3 costs attributable (as described in para4 graph (1)(B)), be updated annually by the 

5 Postal Service and included in its annual 

6 report to the Commission under section 

7 3652, using such methodologies as the 

8 Commission shall by regulation prescribe. 

9 ‘‘(5) ADDITIONAL RATES.—Starting not earlier 

10 than 12 months and not later than 18 months after 

11 the date on which the first study described in para12 graph (4) is completed, and at least once in each 

13 subsequent 12-month period, the Postal Service shall 

14 establish postal rates for each loss-making class of 

15 mail to eliminate such losses (other than those 

16 caused by the Postal Service’s excess capacity) by 

17 exhausting all unused rate authority as well as maxi18 mizing incentives to reduce costs and increase effi19 ciency, subject to the following: 

20 ‘‘(A) The term ‘loss-making’, as used in 

21 this paragraph with respect to a class of mail, 

22 means a class of mail that bears less than 100 

23 percent of its costs attributable (as described in 

24 paragraph (1)(B)), according to the most recent 

25 annual determination of the Postal Regulatory 


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1 Commission under section 3653, adjusted to ac2 count for the quantitative effect of excess ca3 pacity on the costs attributable of the class. 

4 ‘‘(B) Unused rate authority shall be annu5 ally increased by 2 percentage points for each 

6 class of mail that bears less than 90 percent of 

7 its costs attributable (as described in paragraph 

8 (1)(B)), according to the most recent annual 

9 determination of the Postal Regulatory Com10 mission under section 3653, adjusted to account 

11 for the quantitative effect of excess capacity on 

12 the costs attributable of the class, with such in13 crease in unused rate authority to take effect 

14 30 days after the date that the Commission 

15 issues such determination.’’. 

16 (b) EXCEPTION.—Section 3622(d) is amended by 

17 adding after paragraph (5) (as added by subsection 

18 (a)(2)) the following: 

19 ‘‘(6) EXCEPTION.—The requirements of para20 graph (1)(B) shall not apply to a market-dominant 

21 product for which a substantial portion of the prod22 uct’s mail volume consists of inbound international 

23 mail with terminal dues rates determined by the 

24 Universal Postal Union (and not by bilateral agree25 ments or other arrangements).’’. 


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1 SEC. 402. REPEAL OF RATE PREFERENCES FOR QUALIFIED 

2 POLITICAL COMMITTEES. 

3 Subsection (e) of section 3626 is repealed. 

4 SEC. 403. USE OF NEGOTIATED SERVICE AGREEMENTS. 

5 (a) STREAMLINED REVIEW OF QUALIFYING SERVICE

6 AGREEMENTS FOR COMPETITIVE PRODUCTS.—Section 

7 3633 is amended by adding at the end the following: 

8 ‘‘(c) STREAMLINED REVIEW.—Not later than 90 

9 days after the date of enactment of this subsection, after 

10 notice and opportunity for comment, the Postal Regu11 latory Commission shall promulgate (and may from time 

12 to time thereafter revise) regulations for streamlined 

13 after-the-fact review of newly proposed agreements be14 tween the Postal Service and users of the mail that provide 

15 rates not of general applicability for competitive products. 

16 Streamlined review shall apply only if agreements are 

17 functionally equivalent to existing agreements that have 

18 collectively covered attributable costs and collectively im19 proved the net financial position of the Postal Service. The 

20 regulations issued under this subsection shall provide that 

21 streamlined review shall be concluded not later than 5 

22 business days after the date on which the agreement is 

23 filed with the Commission and shall be limited to approval 

24 or disapproval of the agreement as a whole based on the 

25 Commission’s determination of its functional equivalence. 


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1 Agreements not approved may be resubmitted without 

2 prejudice under section 3632.’’. 

3 (b) SUBMISSION OF SERVICE AGREEMENTS FOR

4 STREAMLINED REVIEW.—Section 3632(b) is amended— 

5 (1) by redesignating paragraph (4) as para6 graph (5); and 

7 (2) by inserting after paragraph (3) the fol8 lowing: 

9 ‘‘(4) RATES FOR STREAMLINED REVIEW.—In 

10 the case of rates not of general applicability for com11 petitive products that the Postmaster General con12 siders eligible for streamlined review under section 

13 3633(c), the Postmaster General shall cause the 

14 agreement to be filed with the Postal Regulatory 

15 Commission by a date that is on or before the effec16 tive date of any new rate established under the 

17 agreement, as the Postmaster General considers ap18 propriate.’’. 

19 (c) TRANSPARENCY AND ACCOUNTABILITY FOR

20 SERVICE AGREEMENTS.— 

21 (1) CERTAIN INFORMATION REQUIRED TO BE

22 INCLUDED IN DETERMINATIONS OF COMPLIANCE.— 

23 Section 3653 is amended— 


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1 (A) by redesignating subsections (c), (d), 

2 and (e) as subsections (d), (e), and (f), respec3 tively; and 

4 (B) by inserting after subsection (b) the 

5 following: 

6 ‘‘(c) WRITTEN DETERMINATION.—Each annual writ7 ten determination of the Commission under this section 

8 shall include the following: 

9 ‘‘(1) REQUIREMENTS.—For each group of func10 tionally equivalent agreements between the Postal 

11 Service and users of the mail, whether such group 

12 fulfilled requirements to— 

13 ‘‘(A) cover costs attributable; and 

14 ‘‘(B) improve the net financial position of 

15 the Postal Service. 

16 ‘‘(2) NONCOMPLIANCE.—Any group of function17 ally equivalent agreements not meeting subpara18 graphs (A) and (B) of paragraph (1) shall be deter19 mined to be in noncompliance under this subsection. 

20 ‘‘(3) DEFINITION.—For purposes of this sub21 section, a group of functionally equivalent agree22 ments shall consist of 1 or more service agreements 

23 that are functionally equivalent to each other within 

24 the same market-dominant or competitive product, 


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1 but shall not include agreements within an experi2 mental product.’’. 

3 (2) CRITERIA FOR SPECIAL CLASSIFICATIONS

4 RELATING TO MARKET-DOMINANT PRODUCTS.— 

5 (A) AMENDMENT.—Section 3622(c)(10) is 

6 amended by striking subparagraphs (A) and 

7 (B) and inserting the following: 

8 ‘‘(A) improve the net financial position of 

9 the Postal Service by reducing Postal Service 

10 costs or increasing the overall contribution to 

11 the institutional costs of the Postal Service; and 

12 ‘‘(B) do not cause— 

13 ‘‘(i) unfair competitive advantage for 

14 the Postal Service or postal users eligible 

15 for the agreements; or 

16 ‘‘(ii) unreasonable disruption to the 

17 volume or revenues of other postal users.’’. 

18 (B) APPLICABILITY.—The amendment 

19 made by subparagraph (A) shall take effect on 

20 the date of enactment of this Act and shall 

21 apply with respect to an agreement that— 

22 (i) is filed with the Commission on or 

23 after such date of enactment; or 

24 (ii) is remanded to the Commission by 

25 a court on or after such date of enactment. 


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1 SEC. 404. NONPOSTAL SERVICES. 

2 (a) NONPOSTAL SERVICES.— 

3 (1) IN GENERAL.—Part IV is amended by add4 ing after chapter 36 the following: 

5 ‘‘CHAPTER 37—NONPOSTAL SERVICES 

‘‘Sec. 

‘‘3701. Purpose. 

‘‘3702. Definitions. 

‘‘3703. Postal Service advertising program. 

‘‘3704. Postal Service program for State governments. 

‘‘3705. Postal Service program for other government agencies. 

‘‘3706. Transparency and accountability for nonpostal services. 

6 ‘‘§ 3701. Purpose 

7 ‘‘This chapter is intended to enable the Postal Service 

8 to increase its net revenues through specific nonpostal 

9 products and services that are expressly authorized by this 

10 chapter. Postal Service revenues and expenses under this 

11 chapter shall be funded through the Postal Service Fund. 

12 ‘‘§ 3702. Definitions 

13 ‘‘As used in this chapter— 

14 ‘‘(1) the term ‘nonpostal services’ is limited to 

15 services offered by the Postal Service that are ex16 pressly authorized by this chapter and are not postal 

17 products or services; 

18 ‘‘(2) the term ‘attributable costs’ has the same 

19 meaning as is given such term in section 3631; and 

20 ‘‘(3) the term ‘year’ means a fiscal year. 


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1 ‘‘§ 3703. Postal Service advertising program 

2 ‘‘Notwithstanding any other provision of this title, 

3 the Postal Service may establish and manage a program 

4 that allows entities to advertise at Postal Service facilities, 

5 on Postal Service assets, and on Postal Service vehicles. 

6 Such a program shall be subject to the following require7 ments: 

8 ‘‘(1) The Postal Service shall at all times en9 sure advertising it permits is consistent with the in10 tegrity of the Postal Service. 

11 ‘‘(2) Any advertising program is required to 

12 cover a minimum of 200 percent of its attributable 

13 costs in each year. 

14 ‘‘(3) All advertising expenditures and revenues 

15 are subject to annual compliance determination (in16 cluding remedies for noncompliance) applicable to 

17 nonpostal products. 

18 ‘‘(4) Total advertising expenditures and reve19 nues must be disclosed in Postal Service annual re20 ports. 

21 ‘‘§ 3704. Postal Service program for State govern22 ments 

23 ‘‘(a) IN GENERAL.—Notwithstanding any other pro24 vision of this title, the Postal Service may establish a pro25 gram to provide services for agencies of State governments 

26 within the United States, but only if such services— 


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1 ‘‘(1) shall provide enhanced value to the public, 

2 such as by lowering the cost or raising the quality 

3 of such services or by making such services more ac4 cessible; 

5 ‘‘(2) do not interfere with or detract from the 

6 value of postal services, including— 

7 ‘‘(A) the cost and efficiency of postal serv8 ices; and 

9 ‘‘(B) unreasonable access to postal retail 

10 service, such as customer waiting time and ac11 cess to parking; and 

12 ‘‘(3) provide a reasonable contribution to the in13 stitutional costs of the Postal Service, defined as re14 imbursement for each service and covering at least 

15 150 percent of the attributable costs of such service 

16 in each year. 

17 ‘‘(b) PUBLIC NOTICE.—At least 90 days before offer18 ing any services under this section, the Postal Service shall 

19 make each agreement with State agencies readily available 

20 to the public on its Web site, including a business plan 

21 that describes the specific services to be provided, the en22 hanced value to the public, terms of reimbursement, the 

23 estimated annual reimbursement to the Postal Service, 

24 and the estimated percentage of attributable Postal Serv25 ice costs that will be covered by reimbursement (with docVerDate Mar 15 2010 00:03 Jul 20, 2013 Jkt 029200 PO 00000 Frm 00088 Fmt 6652 Sfmt 6201 E:\BILLS\H2748.IH H2748

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1 umentation to support these estimates). The Postal Serv2 ice shall solicit public comment for at least 30 days, with 

3 comments posted on its Web site, followed by its written 

4 response posted on its Web site at least 30 days before 

5 offering such services. 

6 ‘‘(c) APPROVAL REQUIRED.—The Governors of the 

7 Postal Service shall approve the provision of services 

under this section by a recorded vote, with at least 2 8 ⁄3 of 

9 its membership voting for approval, with the vote publicly 

10 disclosed on the Postal Service Web site. 

11 ‘‘(d) CLASSIFICATION OF SERVICES.—All services for 

12 a given agency provided under this section shall be classi13 fied as a separate activity subject to the requirements of 

14 annual reporting under section 3706. Such reporting shall 

15 also include information on the quality of service and re16 lated information to demonstrate that it satisfied the re17 quirements of subsection (a). Information provided under 

18 this section shall be according to requirements that the 

19 Postal Regulatory Commission shall by regulation pre20 scribe. 

21 ‘‘(e) DEFINITIONS.—For the purpose of this sec22 tion— 

23 ‘‘(1) the term ‘State’ includes the District of 

24 Columbia, the Commonwealth of Puerto Rico, the 

25 United States Virgin Islands, Guam, American 


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1 Samoa, the Commonwealth of the Northern Mariana 

2 Islands, and any other territory or possession of the 

3 United States; and 

4 ‘‘(2) the term ‘United States’, when used in a 

5 geographical sense, means the States. 

6 ‘‘§ 3705. Postal Service program for other government 

7 agencies 

8 ‘‘(a) IN GENERAL.—The Postal Service may establish 

9 a program to provide property and services for other gov10 ernment agencies within the meaning of section 411, but 

11 only if such program provides a reasonable contribution 

12 to the institutional costs of the Postal Service, defined as 

13 reimbursement by each agency that covers at least 100 

14 percent of the attributable costs of all property and service 

15 provided by the Postal Service in each year to such agency. 

16 ‘‘(b) CLASSIFICATION OF SERVICES.—For each agen17 cy, all property and services provided by the Postal Service 

18 under this section shall be classified as a separate activity 

19 subject to the requirements of annual reporting under sec20 tion 3706. Information provided under this section shall 

21 be according to requirements that the Postal Regulatory 

22 Commission shall by regulation prescribe. 

23 ‘‘§ 3706. Transparency and accountability for non24 postal services 

25 ‘‘(a) ANNUAL REPORTS TO THE COMMISSION.— 


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1 ‘‘(1) IN GENERAL.—The Postal Service shall, 

2 no later than 90 days after the end of each year, 

3 prepare and submit to the Postal Regulatory Com4 mission a report (together with such nonpublic 

5 annex to the report as the Commission may require 

6 under subsection (b)) which shall analyze costs, reve7 nues, rates, and quality of service for this chapter, 

8 using such methodologies as the Commission shall 

9 by regulation prescribe, and in sufficient detail to 

10 demonstrate compliance with all applicable require11 ments of this chapter. 

12 ‘‘(2) AUDITS.—The Inspector General shall reg13 ularly audit the data collection systems and proce14 dures utilized in collecting information and pre15 paring such report. The results of any such audit 

16 shall be submitted to the Postal Service and the 

17 Postal Regulatory Commission. 

18 ‘‘(b) SUPPORTING MATTER.—The Postal Regulatory 

19 Commission shall have access, in accordance with such 

20 regulations as the Commission shall prescribe, to the 

21 working papers and any other supporting matter of the 

22 Postal Service and the Inspector General in connection 

23 with any information submitted under this section. 

24 ‘‘(c) CONTENT AND FORM OF REPORTS.— 


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1 ‘‘(1) IN GENERAL.—The Postal Regulatory 

2 Commission shall, by regulation, prescribe the con3 tent and form of the public reports (and any non4 public annex and supporting matter relating to the 

5 report) to be provided by the Postal Service under 

6 this section. Such reports shall be included with the 

7 annual compliance determination reported under sec8 tion 3653. In carrying out this subsection, the Com9 mission shall give due consideration to— 

10 ‘‘(A) providing the public with timely, ade11 quate information to assess compliance; 

12 ‘‘(B) avoiding unnecessary or unwarranted 

13 administrative effort and expense on the part of 

14 the Postal Service; and 

15 ‘‘(C) protecting the confidentiality of infor16 mation that is commercially sensitive or is ex17 empt from public disclosure under section 

18 552(b) of title 5. 

19 ‘‘(2) REVISED REQUIREMENTS.—The Commis20 sion may, on its own motion or on request of any 

21 interested party, initiate proceedings (to be con22 ducted in accordance with regulations that the Com23 mission shall prescribe) to improve the quality, accu24 racy, or completeness of Postal Service data required 


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1 by the Commission under this subsection whenever 

2 it shall appear that— 

3 ‘‘(A) the attribution of costs or revenues to 

4 property or services under this chapter has be5 come significantly inaccurate or can be signifi6 cantly improved; 

7 ‘‘(B) the quality of service data provided to 

8 the Commission for annual reports under this 

9 chapter has become significantly inaccurate or 

10 can be significantly improved; or 

11 ‘‘(C) such revisions are, in the judgment of 

12 the Commission, otherwise necessitated by the 

13 public interest. 

14 ‘‘(d) CONFIDENTIAL INFORMATION.— 

15 ‘‘(1) IN GENERAL.—If the Postal Service deter16 mines that any document or portion of a document, 

17 or other matter, which it provides to the Postal Reg18 ulatory Commission in a nonpublic annex under this 

19 section contains information which is described in 

20 section 410(c) of this title, or exempt from public 

21 disclosure under section 552(b) of title 5, the Postal 

22 Service shall, at the time of providing such matter 

23 to the Commission, notify the Commission of its de24 termination, in writing, and describe with particu25 larity the documents (or portions of documents) or 


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1 other matter for which confidentiality is sought and 

2 the reasons therefor. 

3 ‘‘(2) TREATMENT.—Any information or other 

4 matter described in paragraph (1) to which the 

5 Commission gains access under this section shall be 

6 subject to paragraphs (2) and (3) of section 504(g) 

7 in the same way as if the Commission had received 

8 notification with respect to such matter under sec9 tion 504(g)(1). 

10 ‘‘(e) ANNUAL COMPLIANCE DETERMINATION.— 

11 ‘‘(1) OPPORTUNITY FOR PUBLIC COMMENT.— 

12 After receiving the reports required under subsection 

13 (a) for any year, the Postal Regulatory Commission 

14 shall promptly provide an opportunity for comment 

15 on such reports by any interested party, and an offi16 cer of the Commission who shall be required to rep17 resent the interests of the general public. 

18 ‘‘(2) DETERMINATION OF COMPLIANCE OR NON19 COMPLIANCE.—Not later than 90 days after receiv20 ing the submissions required under subsection (a) 

21 with respect to a year, the Postal Regulatory Com22 mission shall make a written determination as to 

23 whether any nonpostal activities during such year 

24 were or were not in compliance with applicable pro25 visions of this chapter (or regulations promulgated 


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1 under this chapter). The Postal Regulatory Commis2 sion shall issue a determination of noncompliance if 

3 the requirements for coverage of attributable costs 

4 are not met. If, with respect to a year, no instance 

5 of noncompliance is found to have occurred in such 

6 year, the written determination shall be to that ef7 fect. 

8 ‘‘(3) NONCOMPLIANCE.—If, for a year, a timely 

9 written determination of noncompliance is made 

10 under this chapter, the Postal Regulatory Commis11 sion shall take appropriate action. If the require12 ments for coverage of attributable costs specified by 

13 this chapter are not met, the Commission shall, 

14 within 60 days after the determination, prescribe re15 medial action to restore compliance as soon as prac16 ticable, which shall also include the full restoration 

17 of revenue shortfalls during the following fiscal year. 

18 The Commission may order the Postal Service to 

19 discontinue a nonpostal service under section 3703 

20 or 3704 that persistently fails to meet cost coverage 

21 requirements. 

22 ‘‘(4) DELIBERATE NONCOMPLIANCE.—In addi23 tion, in cases of deliberate noncompliance by the 

24 Postal Service with the requirements of this chapter, 

25 the Postal Regulatory Commission may order, based 


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1 on the nature, circumstances, extent, and serious2 ness of the noncompliance, a fine (in the amount 

3 specified by the Commission in its order) for each 

4 incidence of such noncompliance. All receipts from 

5 fines imposed under this subsection shall be depos6 ited in the general fund of the Treasury of the 

7 United States.’’. 

8 (2) CLERICAL AMENDMENT.—The table of 

9 chapters at the beginning of part IV is amended by 

10 adding after the item relating to chapter 36 the fol11 lowing: 

‘‘37. Nonpostal Services ................................................................... 3701’’. 

12 (b) CONFORMING AMENDMENTS.— 

13 (1) SECTION 404(e).—Section 404(e) is amend14 ed by adding at the end the following: 

15 ‘‘(6) Licensing which, before the date of enactment 

16 of this paragraph, has been authorized by the Postal Reg17 ulatory Commission for continuation as a nonpostal serv18 ice may not be used for any purpose other than— 

19 ‘‘(A) to continue to provide licensed mailing and 

20 shipping supplies offered as of June 23, 2011; or 

21 ‘‘(B) to license other goods, products, or serv22 ices, the primary purpose of which is to promote and 

23 enhance the image or brand of the Postal Service. 

24 ‘‘(7) Nothing in this section shall be considered to 

25 prevent the Postal Service from establishing nonpostal 


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1 products and services that are expressly authorized by 

2 chapter 37.’’. 

3 (2) SECTION 409.—Section 409(f) is amended 

4 by inserting at the end the following: 

5 ‘‘(7) The provisions of this section shall not apply to 

6 any outdoor advertising structure or sign constructed, in7 stalled, operated, or maintained on a facility or asset 

8 owned or operated by the Postal Service except in a juris9 diction in which posting of off premise advertising signs 

10 for all persons, entities, governmental agencies, and others 

11 is prohibited by law.’’. 

12 (3) SECTION 411.—The last sentence of section 

13 411 is amended by striking ‘‘including 

14 reimbursability’’ and inserting ‘‘including 

15 reimbursability within the limitations of chapter 

16 37’’. 

17 (4) TREATMENT OF EXISTING NONPOSTAL

18 SERVICES.—All individual nonpostal services, pro19 vided directly or through licensing, that are contin20 ued pursuant to section 404(e) of title 39, United 

21 States Code, shall be considered to be expressly au22 thorized by chapter 37 of such title (as added by 

23 subsection (a)(1)) and shall be subject to the re24 quirements of such chapter. 


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1 SEC. 405. ALASKA BYPASS MAIL MODERNIZATION. 

2 (a) FAIR COMPETITION FOR ALASKA BYPASS

3 MAIL.— 

4 (1) IN GENERAL.—Section 5402 is amended— 

5 (A) in subsection (g)(4)— 

6 (i) in subparagraph (A), by striking 

7 ‘‘existing’’; 

8 (ii) in subparagraph (B)— 

9 (I) in the matter preceding clause 

10 (i), by striking ‘‘an existing mainline 

11 carrier’’ and inserting ‘‘a carrier per12 mitted under subparagraph (A)’’; and 

13 (II) in clause (i), by striking ‘‘ex14 isting mainline carriers’’ and inserting 

15 ‘‘mainline carriers providing service’’; 

16 and 

17 (iii) in subparagraph (C), by striking 

18 ‘‘existing’’; 

19 (B) in subsection (g)(5)— 

20 (i) in subparagraph (A), by striking 

21 ‘‘new’’; 

22 (ii) in subparagraph (B), by striking 

23 ‘‘new’’; and 

24 (iii) in subparagraph (C), by striking 

25 ‘‘new’’; 


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1 (C) in subsection (h)(3)(A), by striking 

2 ‘‘new or existing’’; and 

3 (D) in subsection (i)(3), by striking ‘‘new’’. 

4 (2) CONFORMING AMENDMENT.—Paragraphs 

5 (12) and (15) of section 5402(a) are repealed. 

6 (b) REDUCTION OF ALASKA BYPASS MAIL SUB7 SIDY.— 

8 (1) IN GENERAL.—Chapter 54 is amended by 

9 adding at the end the following: 

10 ‘‘§ 5404. Reduction of Alaska bypass mail subsidy 

11 ‘‘(a) COMPETITIVE PRODUCT CLASSIFICATION.— 

12 ‘‘(1) IN GENERAL.—Except as provided in this 

13 section, Alaska bypass mail service under section 

14 5402 shall be treated as a separate competitive 

15 product for all purposes. 

16 ‘‘(2) TRANSFER PROHIBITED.—No part of 

17 Alaska bypass mail service may be transferred to the 

18 market-dominant category of mail under section 

19 3642. 

20 ‘‘(3) LIMITATIONS.—Alaska bypass mail service 

21 shall not be treated as a competitive product for 

22 purposes of the implementation of sections 3633(a) 

23 and 3634. 

24 ‘‘(b) MINIMUM COST COVERAGE.— 


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1 ‘‘(1) IN GENERAL.—The Postal Service shall es2 tablish and maintain rates and fees for matter sent 

3 by Alaska bypass mail service— 

4 ‘‘(A) for fiscal year 2014, that cover at 

5 least 30 percent of the costs attributable to 

6 Alaska bypass mail service in that fiscal year; 

7 ‘‘(B) for fiscal year 2015, that cover at 

8 least 35 percent of the costs attributable to 

9 Alaska bypass mail service in that fiscal year; 

10 ‘‘(C) for fiscal year 2016, that cover at 

11 least 40 percent of the costs attributable to 

12 Alaska bypass mail service in that fiscal year; 

13 ‘‘(D) for fiscal year 2017, that cover at 

14 least 45 percent of the costs attributable to 

15 Alaska bypass mail service in that fiscal year; 

16 and 

17 ‘‘(E) for fiscal year 2018 and for each fis18 cal year thereafter, that cover at least 50 per19 cent of the costs attributable to Alaska bypass 

20 mail service in the applicable fiscal year. 

21 ‘‘(2) COSTS ATTRIBUTABLE.—The costs attrib22 utable to Alaska bypass mail service for a fiscal year 

23 shall include all the direct and indirect costs of Alas24 ka bypass mail service during that fiscal year that 


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1 are attributable to that service through reliably iden2 tified causal relationships. 

3 ‘‘(3) INSTITUTIONAL COSTS.—Costs that can be 

4 attributed to Alaska bypass mail service may not be 

5 classified as institutional costs of the Postal Service. 

6 ‘‘(c) COMPLIANCE.— 

7 ‘‘(1) ANNUAL REVIEW.—At least once each fis8 cal year, the Postal Regulatory Commission shall de9 termine whether the Postal Service is in compliance 

10 with the requirements under subsection (b). 

11 ‘‘(2) REMEDIAL ACTIONS.—If, under paragraph 

12 (1), the Postal Regulatory Commission determines 

13 that the Postal Service has not complied with the re14 quirements under subsection (b) with respect to a 

15 fiscal year, the Commission shall prescribe, not later 

16 than 60 days after making such determination, ac17 tions to ensure— 

18 ‘‘(A) the establishment and maintenance of 

19 rates and fees for Alaska bypass mail service 

20 that recover any costs required to have been 

21 covered for such fiscal year under subsection 

22 (b), but that were not covered, by the date that 

23 is not later than the last day of the fiscal year 

24 that follows such fiscal year; and 


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1 ‘‘(B) compliance with the requirements 

2 under subsection (b) in subsequent fiscal years. 

3 ‘‘(3) LIMITATION.—The Postal Regulatory 

4 Commission may not order the Postal Service to dis5 continue Alaska bypass mail service. 

6 ‘‘(4) REGULATIONS.—Not later than 90 days 

7 after the date of enactment of this subsection, the 

8 Postal Regulatory Commission shall issue regula9 tions to implement this subsection.’’. 

10 (2) CLERICAL AMENDMENT.—The table of sec11 tions for chapter 54 is amended by adding at the 

12 end the following: 

‘‘5404. Reduction of Alaska bypass mail subsidy.’’. 

13 SEC. 406. APPROPRIATIONS MODERNIZATION. 

14 (a) IN GENERAL.—Section 2401 is amended by strik15 ing subsections (b) through (d). 

16 (b) EFFECTIVE DATE.—The amendment made by 

17 subsection (a) shall be effective with respect to fiscal years 

18 beginning after the date of enactment of this Act. 

19 (c) CONFORMING AMENDMENT.—Section 3627 is re20 pealed. 

21 SEC. 407. ENHANCED PRODUCT INNOVATION. 

22 (a) DOLLAR-AMOUNT LIMITATION RELATING TO

23 MARKET TESTS OF EXPERIMENTAL PRODUCTS.—Section 

24 3641(e)(1) is amended by striking ‘‘$10,000,000’’ and in25 serting ‘‘$50,000,000’’. 


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1 (b) DOLLAR-AMOUNT LIMITATION RELATING TO EX2 EMPTION AUTHORITY.—Section 3641(e)(2) is amended by 

3 striking ‘‘$50,000,000’’ and inserting ‘‘$100,000,000’’. 

4 TITLE V—POSTAL SERVICE 

5 FINANCE 

6 SEC. 501. TREATMENT OF POSTAL SERVICE 

7 POSTEMPLOYMENT BENEFIT FUNDING PRO8 JECTED SURPLUSES. 

9 Section 8423(b)(4) of title 5, United States Code, is 

10 amended by adding at the end the following: 

11 ‘‘(C) Not later than 30 days after the end 

12 of each fiscal year, the Office of Personnel 

13 Management shall transfer from Postal Service 

14 Federal Employee Retirement System monies 

15 within the Civil Service Retirement and Dis16 ability Fund to the Postal Service Retiree 

17 Health Benefits Fund an amount equal to the 

18 negative supplemental liability (if any), as cal19 culated under paragraph (1)(B), for the most 

20 recent fiscal year available, less the sum of— 

21 ‘‘(i) the Postal supplemental liability, 

22 calculated under section 8348(h), for the 

23 same fiscal year (if any); and 

24 ‘‘(ii) any contribution required by this 

25 section that the Postal Service has not 


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1 made between the close of the fiscal year 

2 of the calculation under paragraph (1)(B) 

3 and the close of the most recent fiscal 

4 year, as determined by the Office of Per5 sonnel Management.’’. 

6 SEC. 502. RETIREE HEALTH BENEFIT LIABILITY PAYMENT 

7 SCHEDULE. 

8 (a) IN GENERAL.—Subsection 8909a(d) of title 5, 

9 United States Code, is amended— 

10 (1) in paragraph (2)(B), by striking ‘‘2017’’ 

11 and inserting ‘‘2015’’; and 

12 (2) in paragraph (3)— 

13 (A) in subparagraph (A)— 

14 (i) in clause (iii), by adding ‘‘and’’ at 

15 the end; 

16 (ii) in clause (iv), by striking the 

17 semicolon at the end and inserting a pe18 riod; and 

19 (iii) by striking clauses (v) through 

20 (x); and 

21 (B) in subparagraph (B), by striking 

22 ‘‘2017’’ and inserting ‘‘2015’’. 

23 (b) CONFORMING AMENDMENT.—Section 

24 8906(g)(2)(A) of title 5, United States Code, is amended 

25 by striking ‘‘2016’’ and inserting ‘‘2014’’. 


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1 (c) TECHNICAL CORRECTION.—The heading for sec2 tion 8909a of title 5, United States Code, is amended by 

3 striking ‘‘Benefit’’ and inserting ‘‘Benefits’’. 

4 SEC. 503. SUPPLEMENTARY BORROWING AUTHORITY DUR5 ING A CONTROL PERIOD. 

6 (a) IN GENERAL.—Chapter 20 is amended by adding 

7 after section 2011 the following: 

8 ‘‘§ 2012. Supplementary borrowing authority 

9 ‘‘(a) SUPPLEMENTARY BORROWING AUTHORITY.— 

10 Upon the commencement of the control period, subject to 

11 the approval of the Authority, the Postal Service is author12 ized to borrow money and issue and sell such obligations 

13 as may be necessary to carry out the purposes of this title, 

14 to the same extent, in the same manner, and subject to 

15 the same terms and conditions as if the maximum amount 

16 allowable under the provisions of section 2005(a)(2) for 

17 the fiscal year involved were equal to the maximum 

18 amount which (but for this section) would otherwise be 

19 allowable under such provisions, increased by 

20 $5,000,000,000. 

21 ‘‘(b) SUNSET.—The authority to borrow money and 

22 to issue and sell obligations under subsection (a) shall 

23 cease to be available after September 30, 2022. 

24 ‘‘(c) DEPOSIT.—Any amounts received under this 

25 section shall be deposited in the Postal Service Fund. 


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1 ‘‘(d) PROPERTIES TO BE SET ASIDE.—Notwith2 standing section 2005(b)(2), the Postal Service shall take 

3 such measures as may be necessary and appropriate so 

4 that, during any period in which the Postal Service is 

5 using supplemental borrowing authority under subsection 

6 (a), a sufficient amount of real property has been pledged 

7 or otherwise set aside by the Postal Service to carry out 

8 subsection (e). 

9 ‘‘(e) OUTSTANDING SUPPLEMENTAL DEBT REDUC10 TION.— 

11 ‘‘(1) IN GENERAL.—In the case of any full fis12 cal year in which the Postal Service borrows funds 

13 pursuant to subsection (a), the Postal Service shall, 

14 not later than September 30 of such fiscal year, de15 posit into the Postal Service Fund an amount such 

16 that the total obligations accrued and outstanding 

17 pursuant to subsection (a) are, as of the close of 

18 such fiscal year, at least 20 percent less than the 

19 total obligations so accrued and outstanding as of 

20 the start of such fiscal year. 

21 ‘‘(2) SENSE OF CONGRESS.—It is the sense of 

22 Congress that, to achieve the requirement of para23 graph (1), the Postal Service should dispose of such 

24 real property as may be necessary. 

25 ‘‘(f) DEFINITIONS.—For purposes of this section— 


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1 ‘‘(1) the term ‘Authority’ means the Postal 

2 Service Financial Responsibility and Management 

3 Assistance Authority, established in title II of the 

4 Postal Reform Act of 2013; and 

5 ‘‘(2) the term ‘control period’ has the meaning 

6 given such term in section 202(b)(1) of such Act.’’. 

7 (b) CLERICAL AMENDMENT.—The table of sections 

8 for chapter 20 is amended by adding at the end the fol9 lowing: 

‘‘2012. Supplemental borrowing authority.’’. 

10 SEC. 504. POSTAL SERVICE DELIVERY-POINT MODERNIZA11 TION FUND. 

12 (a) IN GENERAL.—Chapter 20 is further amended by 

13 adding after section 2012 (as added by section 503(a)) 

14 the following: 

15 ‘‘§ 2013. Postal Service Delivery-Point Modernization 

16 Fund 

17 ‘‘(a) ESTABLISHMENT.—There is established within 

18 the Treasury of the United States a revolving fund to be 

19 known as the ‘Postal Service Delivery-Point Moderniza20 tion Fund’, which shall be available without fiscal year 

21 limitation pursuant to the requirements of this section. 

22 ‘‘(b) FUNDING.— 

23 ‘‘(1) AUTHORIZATION.—The Postal Service is 

24 authorized to borrow money and to issue and sell 

25 such obligations as it determines necessary solely to 


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1 carry out the purposes of section 3962. The aggre2 gate amount of obligations issued by the Postal 

3 Service which may be outstanding at any one time 

4 under this paragraph shall not exceed 

5 $1,000,000,000. 

6 ‘‘(2) APPLICABILITY OF SECTION 2005.—The 

7 provisions of subsections 2005(b), (c), and (d) shall 

8 apply to obligations issued under this subsection. 

9 ‘‘(3) DEPOSIT.—Any amounts received by the 

10 Postal Service as a result of paragraph (1) shall be 

11 deposited in the Postal Service Delivery-Point Mod12 ernization Fund. 

13 ‘‘(c) SUNSET.—The authority to borrow money and 

14 to issue and sell obligations under subsection (b) shall 

15 cease to be available after September 30, 2023. 

16 ‘‘(d) BUDGETARY TREATMENT.—The receipts and 

17 disbursements of the Postal Service Delivery-Point Mod18 ernization Fund shall be accorded the same budgetary 

19 treatment as is accorded to receipts and disbursements of 

20 the Postal Service Fund under section 2009a. 

21 ‘‘(e) TERMINATION OF FUND.—On September 30, 

22 2023, any funds remaining in the Postal Service Delivery23 Point Modernization Fund shall be used to satisfy any re24 maining obligations under subsection (b)(1), and any 

25 funds in excess of such obligations shall be deposited in 


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1 the Postal Service Fund. After any excess funds have been 

2 so deposited, the Postal Service Delivery-Point Moderniza3 tion Fund shall be terminated.’’. 

4 (b) CLERICAL AMENDMENT.—The table of sections 

5 for chapter 20 is amended by adding after the item relat6 ing to section 2012 (as added by section 503(b)) the fol7 lowing: 

‘‘2013. Postal Service Delivery-Point Modernization Fund.’’. 

8 SEC. 505. SPECIFIC RETIREMENT LIABILITY CALCULA9 TIONS RELATING TO THE POSTAL SERVICE. 

10 (a) FEDERAL EMPLOYEES RETIREMENT SYSTEM.— 

11 Section 8423(a) of title 5, United States Code, is amend12 ed— 

13 (1) in paragraph (1)— 

14 (A) in subparagraph (A)— 

15 (i) in clause (i), by striking ‘‘subpara16 graph (B)),’’ and inserting ‘‘subparagraph 

17 (B) or (C)),’’; and 

18 (ii) in clause (ii), by striking ‘‘and’’ 

19 after the semicolon; 

20 (B) in subparagraph (B)(ii), by striking 

21 the period at the end and inserting ‘‘; and’’; 

22 and 

23 (C) by adding at the end the following: 

24 ‘‘(C) the product of— 


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1 ‘‘(i) the normal-cost percentage, as deter2 mined for employees (other than employees cov3 ered by subparagraph (B)) of the United States 

4 Postal Service under paragraph (5), multiplied 

5 by 

6 ‘‘(ii) the aggregate amount of basic pay 

7 payable by the United States Postal Service, for 

8 the period involved, to employees of the United 

9 States Postal Service.’’; and 

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

11 ‘‘(5)(A) In determining the normal-cost percentage 

12 for employees of the United States Postal Service for pur13 poses of paragraph (1)(C), the Office— 

14 ‘‘(i) shall use demographic factors specific to 

15 such employees, unless such data cannot be gen16 erated; and 

17 ‘‘(ii) may use economic assumptions regarding 

18 wage and salary growth that reflect the specific past, 

19 and likely future, pay for such employees. 

20 ‘‘(B) The United States Postal Service shall provide 

21 any data or projections the Office requires in order to de22 termine the normal-cost percentage for employees of the 

23 United States Postal Service, consistent with subpara24 graph (A). 


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1 ‘‘(C) The Office shall review the determination of the 

2 normal-cost percentage for employees of the United States 

3 Postal Service and make such adjustments as the Office 

4 considers necessary— 

5 ‘‘(i) upon request of the United States Postal 

6 Service, but not more frequently than once each fis7 cal year; and 

8 ‘‘(ii) at such other times as the Office considers 

9 appropriate. 

10 ‘‘(6) For the purpose of carrying out subsection 

11 (b)(1)(B), and consistent with paragraph (5), for fiscal 

12 year 2013, and each fiscal year thereafter, the Office— 

13 ‘‘(A) shall use demographic factors specific to 

14 current and former employees of the United States 

15 Postal Service, unless such data cannot be gen16 erated; and 

17 ‘‘(B) may use economic assumptions regarding 

18 wage and salary growth that reflect the specific past, 

19 and likely future, pay for current employees of the 

20 United States Postal Service.’’. 

21 (b) CIVIL SERVICE RETIREMENT SYSTEM.—Section 

22 8348(h) of title 5, United States Code, is amended by add23 ing at the end the following: 


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1 ‘‘(4) For the purpose of carrying out paragraph (1), 

2 consistent with section 8423(b)(1)(B), for fiscal year 

3 2013, and each fiscal year thereafter, the Office— 

4 ‘‘(A) shall use demographic factors specific to 

5 current and former employees of the United States 

6 Postal Service, unless such data cannot be gen7 erated; and 

8 ‘‘(B) may use economic assumptions regarding 

9 wage and salary growth that reflect the specific past, 

10 and likely future, pay for current employees of the 

11 United States Postal Service.’’. 

12 TITLE VI—POSTAL 

13 CONTRACTING REFORM 

14 SEC. 601. CONTRACTING PROVISIONS. 

15 (a) IN GENERAL.—Part I is amended by adding at 

16 the end the following: 

17 ‘‘CHAPTER 7—CONTRACTING PROVISIONS 

‘‘Sec. 

‘‘701. Definitions. 

‘‘702. Advocate for competition. 

‘‘703. Delegation of contracting authority. 

‘‘704. Posting of noncompetitive purchase requests for noncompetitive contracts. 

‘‘705. Review of ethical issues. 

‘‘706. Ethical restrictions on participation in certain contracting activity. 

18 ‘‘§ 701. Definitions 

19 ‘‘In this chapter— 

20 ‘‘(1) the term ‘contracting officer’ means an 

21 employee of a covered postal entity who has author22 ity to enter into a postal contract; 


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1 ‘‘(2) the term ‘covered postal entity’ means— 

2 ‘‘(A) the Postal Service; or 

3 ‘‘(B) the Postal Regulatory Commission; 

4 ‘‘(3) the term ‘head of a covered postal entity’ 

5 means— 

6 ‘‘(A) in the case of the Postal Service, the 

7 Postmaster General; or 

8 ‘‘(B) in the case of the Postal Regulatory 

9 Commission, the Chairman of the Postal Regu10 latory Commission; 

11 ‘‘(4) the term ‘postal contract’ means— 

12 ‘‘(A) in the case of the Postal Service, any 

13 contract (including any agreement or memo14 randum of understanding) entered into by the 

15 Postal Service for the procurement of goods or 

16 services; or 

17 ‘‘(B) in the case of the Postal Regulatory 

18 Commission, any contract (including any agree19 ment or memorandum of understanding) in an 

20 amount exceeding the simplified acquisition 

21 threshold (as defined in section 134 of title 41 

22 and adjusted under section 1908 of such title) 

23 entered into by the Postal Regulatory Commis24 sion for the procurement of goods or services; 

25 and 


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1 ‘‘(5) the term ‘senior procurement executive’ 

2 means the senior procurement executive of a covered 

3 postal entity. 

4 ‘‘§ 702. Advocate for competition 

5 ‘‘(a) ESTABLISHMENT AND DESIGNATION.— 

6 ‘‘(1) There is established in each covered postal 

7 entity an advocate for competition. 

8 ‘‘(2) The head of each covered postal entity 

9 shall designate for the covered postal entity 1 or 

10 more officers or employees (other than the senior 

11 procurement executive) to serve as the advocate for 

12 competition. 

13 ‘‘(b) RESPONSIBILITIES.—The advocate for competi14 tion of a covered postal entity shall— 

15 ‘‘(1) be responsible for promoting— 

16 ‘‘(A) the contracting out of functions of 

17 the covered postal entity that the private sector 

18 can perform equally well or better, and at lower 

19 cost; and 

20 ‘‘(B) competition to the maximum extent 

21 practicable consistent with obtaining best value 

22 by promoting the acquisition of commercial 

23 items and challenging barriers to competition; 

24 ‘‘(2) review the procurement activities of the 

25 covered postal entity; and 


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1 ‘‘(3) prepare and transmit the annual report re2 quired under subsection (c). 

3 ‘‘(c) ANNUAL REPORT.— 

4 ‘‘(1) PREPARATION.—The advocate for competi5 tion of a covered postal entity shall prepare an an6 nual report describing the following: 

7 ‘‘(A) The activities of the advocate under 

8 this section. 

9 ‘‘(B) Initiatives required to promote con10 tracting out and competition. 

11 ‘‘(C) Barriers to contracting out and com12 petition. 

13 ‘‘(D) In the case of the report prepared by 

14 the competition advocate of the Postal Service, 

15 the number of waivers made by the Postal Serv16 ice under section 704(c). 

17 ‘‘(2) TRANSMISSION.—The report under this 

18 subsection shall be transmitted— 

19 ‘‘(A) to Congress; 

20 ‘‘(B) to the head of the postal entity; 

21 ‘‘(C) to the senior procurement executive 

22 of the entity; 

23 ‘‘(D) in the case of the competition advo24 cate of the Postal Service, to each member of 

25 the Postal Service Board of Governors; and 


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1 ‘‘(E) in the case of the competition advo2 cate of the Postal Regulatory Commission, to 

3 each of the Commissioners of the Commission. 

4 ‘‘§ 703. Delegation of contracting authority 

5 ‘‘(a) IN GENERAL.— 

6 ‘‘(1) POLICY.—Not later than 60 days after the 

7 date of enactment of this chapter, the head of each 

8 covered postal entity shall issue a policy on con9 tracting officer delegations of authority for postal 

10 contracts for the covered postal entity. 

11 ‘‘(2) CONTENTS.—The policy issued under 

12 paragraph (1) shall require that— 

13 ‘‘(A) notwithstanding any delegation of au14 thority with respect to postal contracts, the ulti15 mate responsibility and accountability for the 

16 award and administration of postal contracts 

17 resides with the senior procurement executive; 

18 and 

19 ‘‘(B) a contracting officer shall maintain 

20 an awareness of and engagement in the activi21 ties being performed on postal contracts of 

22 which that officer has cognizance, notwith23 standing any delegation of authority that may 

24 have been executed. 

25 ‘‘(b) POSTING OF DELEGATIONS.— 


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1 ‘‘(1) IN GENERAL.—The head of each covered 

2 postal entity shall make any delegation of authority 

3 for postal contracts outside the functional con4 tracting unit readily available and accessible on the 

5 Web site of the covered postal entity. 

6 ‘‘(2) EFFECTIVE DATE.—This paragraph shall 

7 apply to any delegation of authority made on or 

8 after 30 days after the date of enactment of this 

9 chapter. 

10 ‘‘§ 704. Posting of noncompetitive purchase requests 

11 for noncompetitive contracts 

12 ‘‘(a) POSTING REQUIRED.— 

13 ‘‘(1) POSTAL REGULATORY COMMISSION.—The 

14 Postal Regulatory Commission shall make the non15 competitive purchase request for any noncompetitive 

16 award for any contract (including any agreement or 

17 memorandum of understanding) entered into by the 

18 Postal Regulatory Commission for the procurement 

19 of goods and services, in an amount of $20,000 or 

20 more, including the rationale supporting the non21 competitive award, publicly available on the Web site 

22 of the Postal Regulatory Commission— 

23 ‘‘(A) not later than 14 days after the date 

24 of the award of the noncompetitive contract; or 


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1 ‘‘(B) not later than 30 days after the date 

2 of the award of the noncompetitive contract, if 

3 the basis for the award was a compelling busi4 ness interest. 

5 ‘‘(2) POSTAL SERVICE.—The Postal Service 

6 shall make the noncompetitive purchase request for 

7 any noncompetitive award of a postal contract in an 

8 amount of $250,000 or more, including the rationale 

9 supporting the noncompetitive award, publicly avail10 able on the Web site of the Postal Service— 

11 ‘‘(A) not later than 14 days after the date 

12 of the award; or 

13 ‘‘(B) not later than 30 days after the date 

14 of the award, if the basis for the award was a 

15 compelling business interest. 

16 ‘‘(3) ADJUSTMENTS TO THE POSTING THRESH17 OLD FOR THE POSTAL SERVICE.— 

18 ‘‘(A) REVIEW AND DETERMINATION.—Not 

19 later than January 31 of each year, the Postal 

20 Service shall— 

21 ‘‘(i) review the $250,000 threshold es22 tablished under paragraph (2); and 

23 ‘‘(ii) based on any change in the Con24 sumer Price Index for All Urban Con25 sumers of the Department of Labor, deterVerDate Mar 15 2010 00:03 Jul 20, 2013 Jkt 029200 PO 00000 Frm 00118 Fmt 6652 Sfmt 6201 E:\BILLS\H2748.IH H2748

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1 mine whether an adjustment to the thresh2 old shall be made. 

3 ‘‘(B) AMOUNT OF ADJUSTMENTS.—An ad4 justment under subparagraph (A) shall be made 

5 in increments of $5,000. If the Postal Service 

6 determines that a change in the Consumer 

7 Price Index for a year would require an adjust8 ment in an amount that is less than $5,000, the 

9 Postal Service may not make an adjustment to 

10 the threshold for the year. 

11 ‘‘(4) EFFECTIVE DATE.—This subsection shall 

12 apply to any noncompetitive contract awarded on or 

13 after the date that is 90 days after the date of en14 actment of this chapter. 

15 ‘‘(b) PUBLIC AVAILABILITY.— 

16 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

17 the information required to be made publicly avail18 able by a covered postal entity under subsection (a) 

19 shall be readily accessible on the Web site of the cov20 ered postal entity. 

21 ‘‘(2) PROTECTION OF PROPRIETARY INFORMA22 TION.—A covered postal entity shall— 

23 ‘‘(A) carefully screen any description of the 

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1 section (a) to determine whether the description 

2 includes proprietary data (including any ref3 erence or citation to the proprietary data) or se4 curity-related information; and 

5 ‘‘(B) remove any proprietary data or secu6 rity-related information before making publicly 

7 available a description of the rationale sup8 porting a noncompetitive award. 

9 ‘‘(c) WAIVERS.— 

10 ‘‘(1) WAIVER PERMITTED.—If the Postal Serv11 ice determines that making a noncompetitive pur12 chase request for a postal contract of the Postal 

13 Service publicly available would risk placing the 

14 Postal Service at a competitive disadvantage relative 

15 to a private sector competitor, the senior procure16 ment executive, in consultation with the advocate for 

17 competition of the Postal Service, may waive the re18 quirements under subsection (a). 

19 ‘‘(2) FORM AND CONTENT OF WAIVER.— 

20 ‘‘(A) FORM.—A waiver under paragraph 

21 (1) shall be in the form of a written determina22 tion placed in the file of the contract to which 

23 the noncompetitive purchase request relates. 

24 ‘‘(B) CONTENT.—A waiver under para25 graph (1) shall include— 


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1 ‘‘(i) a description of the risk associ2 ated with making the noncompetitive pur3 chase request publicly available; and 

4 ‘‘(ii) a statement that redaction of 

5 sensitive information in the noncompetitive 

6 purchase request would not be sufficient to 

7 protect the Postal Service from being 

8 placed at a competitive disadvantage rel9 ative to a private sector competitor. 

10 ‘‘(3) DELEGATION OF WAIVER AUTHORITY.— 

11 The Postal Service may not delegate the authority to 

12 approve a waiver under paragraph (1) to any em13 ployee having less authority than the senior procure14 ment executive. 

15 ‘‘§ 705. Review of ethical issues 

16 ‘‘If a contracting officer identifies any ethical issues 

17 relating to a proposed contract and submits those issues 

18 and that proposed contract to the designated ethics official 

19 for the covered postal entity before the awarding of that 

20 contract, that ethics official shall— 

21 ‘‘(1) review the proposed contract; and 

22 ‘‘(2) advise the contracting officer on the appro23 priate resolution of ethical issues. 


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1 ‘‘§ 706. Ethical restrictions on participation in certain 

2 contracting activity 

3 ‘‘(a) DEFINITIONS.—In this section— 

4 ‘‘(1) the term ‘covered employee’ means— 

5 ‘‘(A) a contracting officer; or 

6 ‘‘(B) any employee of a covered postal en7 tity whose decisionmaking affects a postal con8 tract as determined by regulations prescribed 

9 by the head of a covered postal entity; 

10 ‘‘(2) the term ‘final conviction’ means a convic11 tion, whether entered on a verdict or plea, including 

12 a plea of nolo contendere, for which a sentence has 

13 been imposed; and 

14 ‘‘(3) the term ‘covered relationship’ means a 

15 covered relationship described in section 

16 2635.502(b)(1) of title 5, Code of Federal Regula17 tions, or any successor thereto. 

18 ‘‘(b) IN GENERAL.— 

19 ‘‘(1) REGULATIONS.—The head of each covered 

20 postal entity shall prescribe regulations that— 

21 ‘‘(A) require a covered employee to include 

22 in the file of any noncompetitive purchase re23 quest for a noncompetitive postal contract a 

24 written certification that— 

25 ‘‘(i) discloses any covered relationship 

26 of the covered employee; and 


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1 ‘‘(ii) states that the covered employee 

2 will not take any action with respect to the 

3 noncompetitive purchase request that af4 fects the financial interests of a friend, rel5 ative, or person with whom the covered 

6 employee is affiliated in a nongovernmental 

7 capacity, or otherwise gives rise to an ap8 pearance of the use of public office for pri9 vate gain, as described in section 2635.702 

10 of title 5, Code of Federal Regulations, or 

11 any successor thereto; 

12 ‘‘(B) require a contracting officer to con13 sult with the ethics counsel for the covered 

14 postal entity regarding any disclosure made by 

15 a covered employee under subparagraph (A)(i), 

16 to determine whether participation by the cov17 ered employee in the noncompetitive purchase 

18 request would give rise to a violation of part 

19 2635 of title 5, Code of Federal Regulations 

20 (commonly referred to as the Standards of Eth21 ical Conduct for Employees of the Executive 

22 Branch), or any successor thereto; 

23 ‘‘(C) require the ethics counsel for a cov24 ered postal entity to review any disclosure made 

25 by a contracting officer under subparagraph 


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1 (A)(i) to determine whether participation by the 

2 contracting officer in the noncompetitive pur3 chase request would give rise to a violation of 

4 part 2635 of title 5, Code of Federal Regula5 tions (commonly referred to as the Standards of 

6 Ethical Conduct for Employees of the Executive 

7 Branch), or any successor thereto; 

8 ‘‘(D) under subsections (d) and (e) of sec9 tion 2635.502 of title 5, Code of Federal Regu10 lations, or any successor thereto, require the 

11 ethics counsel for a covered postal entity to— 

12 ‘‘(i) authorize a covered employee that 

13 makes a disclosure under subparagraph 

14 (A)(i) to participate in the noncompetitive 

15 postal contract; or 

16 ‘‘(ii) disqualify a covered employee 

17 that makes a disclosure under subpara18 graph (A)(i) from participating in the non19 competitive postal contract; 

20 ‘‘(E) require a contractor to timely disclose 

21 to the contracting officer in a bid, solicitation, 

22 award, or performance of a postal contract any 

23 conflict of interest with a covered employee; and 

24 ‘‘(F) include authority for the head of the 

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1 wise mitigate any organizational or personal 

2 conflict of interest, if the head of the covered 

3 postal entity determines that the waiver or miti4 gation is in the best interests of the covered 

5 postal entity. 

6 ‘‘(2) POSTING OF WAIVERS.—Not later than 30 

7 days after the head of a covered postal entity grants 

8 a waiver described in paragraph (1)(F), the head of 

9 the covered postal entity shall make the waiver pub10 licly available on the Web site of the covered postal 

11 entity. 

12 ‘‘(c) CONTRACT VOIDANCE AND RECOVERY.— 

13 ‘‘(1) UNLAWFUL CONDUCT.—In any case in 

14 which there is a final conviction for a violation of 

15 any provision of chapter 11 of title 18 relating to a 

16 postal contract, the head of a covered postal entity 

17 may— 

18 ‘‘(A) void that contract; and 

19 ‘‘(B) recover the amounts expended and 

20 property transferred by the covered postal enti21 ty under that contract. 

22 ‘‘(2) OBTAINING OR DISCLOSING PROCUREMENT

23 INFORMATION.— 

24 ‘‘(A) IN GENERAL.—In any case in which 

25 a contractor under a postal contract fails to 


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1 timely disclose a conflict of interest to the ap2 propriate contracting officer as required under 

3 the regulations promulgated under subsection 

4 (b)(1)(E), the head of a covered postal entity 

5 may— 

6 ‘‘(i) void that contract; and 

7 ‘‘(ii) recover the amounts expended 

8 and property transferred by the covered 

9 postal entity under that contract. 

10 ‘‘(B) CONVICTION OR ADMINISTRATIVE DE11 TERMINATION.—A case described under sub12 paragraph (A) is any case in which— 

13 ‘‘(i) there is a final conviction for an 

14 offense punishable under section 2105 of 

15 title 41; or 

16 ‘‘(ii) the head of a covered postal enti17 ty determines, based upon a preponderance 

18 of the evidence, that the contractor or 

19 someone acting for the contractor has en20 gaged in conduct constituting an offense 

21 punishable under section 2105 of such 

22 title.’’. 

23 (b) CLERICAL AMENDMENT.—The table of chapters 

24 at the beginning of part I is amended by adding at the 

25 end the following: 

‘‘7. Contracting Provisions ............................................................. 701’’. 


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1 SEC. 602. TECHNICAL AMENDMENT TO DEFINITION. 

2 Section 7101(8) of title 41, United States Code, is 

3 amended— 

4 (1) by striking ‘‘and’’ at the end of subpara5 graph (C); 

6 (2) by striking the period at the end of sub7 paragraph (D) and inserting ‘‘; and’’; and 

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

9 ‘‘(E) the United States Postal Service and 

10 the Postal Regulatory Commission.’’. 

11 SEC. 603. CONTRACT LIMITATION. 

12 (a) IN GENERAL.—Each covered contract entered 

13 into within 6 months after the date on which the Postal 

14 Service commences any reduction in force shall include a 

15 requirement that the contractor provide a preference in 

16 the hiring of qualifying individuals for full-time positions 

17 created by or as a result of the contract. 

18 (b) COVERED CONTRACT.—For the purposes of this 

19 section, the term ‘‘covered contract’’ means a contract— 

20 (1) for an amount greater than $250,000; 

21 (2) entered into by the Postal Service— 

22 (A) within 2 years after the date of enact23 ment of this Act; 

24 (B) with a person other than a small busi25 ness concern; and 


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1 (C) for the procurement of goods or serv2 ices; and 

3 (3) for which such person will hire 10 or more 

4 individuals. 

5 (c) QUALIFYING INDIVIDUAL.—For the purposes of 

6 this section, the term ‘‘qualifying individual’’ means an in7 dividual who— 

8 (1) is separated from the Postal Service due to 

9 a reduction in force; 

10 (2) at the time of separation— 

11 (A) is a career postal employee; and 

12 (B) is not a retirement-eligible individual; 

13 (3) as of the date of hire (as referred to in sub14 section (b)(3)) has been continuously unemployed for 

15 a period not exceeding 78 weeks; and 

16 (4) is qualified for the position involved. 

17 (d) RETIREMENT-ELIGIBLE INDIVIDUAL.—For pur18 poses of this section, the term ‘‘retirement-eligible indi19 vidual’’, as used with respect to a qualifying individual, 

20 means an individual who, at the time of such individual’s 

21 separation (as described in subsection (c)(1)), satisfies the 

22 age and service requirements for entitlement to an annuity 

23 under— 

24 (1) subsection (a), (b), (c), or (f) of section 

25 8336 of title 5, United States Code; or 


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1 (2) subsection (a), (b), (c), (d), or (g) of section 

2 8412 of title 5, United States Code. 

3 (e) SMALL BUSINESS CONCERN.—For purposes of 

4 this section, the term ‘‘small business concern’’ means a 

5 small business as defined pursuant to section 3 of the 

6 Small Business Act and relevant regulations prescribed 

7 pursuant thereto. 

8 TITLE VII—OTHER PROVISIONS 

9 SEC. 701. POSTAL FACILITY DESIGNATIONS. 

10 (a) FACILITIES DESIGNATED.— 

11 (1) OFFICER TOMMY DECKER MEMORIAL POST

12 OFFICE.— 

13 (A) DESIGNATION.—The facility of the 

14 United States Postal Service located at 14 Red 

15 River Avenue North in Cold Spring, Minnesota, 

16 shall be known and designated as the ‘‘Officer 

17 Tommy Decker Memorial Post Office’’. 

18 (B) REFERENCES.—Any reference in a 

19 law, map, regulation, document, paper, or other 

20 record of the United States to the facility re21 ferred to in subsection (a) shall be deemed to 

22 be a reference to the ‘‘Officer Tommy Decker 

23 Memorial Post Office’’. 

24 (2) RICHARD K. SALICK POST OFFICE.— 


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1 (A) DESIGNATION.—The facility of the 

2 United States Postal Service located at 500 

3 North Brevard Avenue in Cocoa Beach, Flor4 ida, shall be known and designated as the 

5 ‘‘Richard K. Salick Post Office’’. 

6 (B) REFERENCES.—Any reference in a 

7 law, map, regulation, document, paper, or other 

8 record of the United States to the facility re9 ferred to in subsection (a) shall be deemed to 

10 be a reference to the ‘‘Richard K. Salick Post 

11 Office’’. 

12 (3) NATIONAL PARK RANGER MARGARET AN13 DERSON POST OFFICE.— 

14 (A) DESIGNATION.—The facility of the 

15 United States Postal Service located at 103 

16 Center Street West in Eatonville, Washington, 

17 shall be known and designated as the ‘‘National 

18 Park Ranger Margaret Anderson Post Office’’. 

19 (B) REFERENCES.—Any reference in a 

20 law, map, regulation, document, paper, or other 

21 record of the United States to the facility re22 ferred to in subsection (a) shall be deemed to 

23 be a reference to the ‘‘National Park Ranger 

24 Margaret Anderson Post Office’’. 


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1 (4) JUDGE SHIRLEY A. TOLENTINO POST OF2 FICE BUILDING.— 

3 (A) DESIGNATION.—The facility of the 

4 United States Postal Service located at 369 

5 Martin Luther King Jr. Drive in Jersey City, 

6 New Jersey, shall be known and designated as 

7 the ‘‘Judge Shirley A. Tolentino Post Office 

8 Building’’. 

9 (B) REFERENCES.—Any reference in a 

10 law, map, regulation, document, paper, or other 

11 record of the United States to the facility re12 ferred to in subsection (a) shall be deemed to 

13 be a reference to the ‘‘Judge Shirley A. 

14 Tolentino Post Office Building’’. 

15 (b) SENSE OF CONGRESS.—It is the sense of Con16 gress that additional postal facility designations be in17 cluded in postal reform legislation. 

18 SEC. 702. RESPONSE TO SUBMISSIONS BY THE POSTAL 

19 SERVICE. 

20 (a) IN GENERAL.—Chapter 5 is amended by adding 

21 at the end the following: 

22 ‘‘§ 506. Submissions by the Postal Service to the Post23 al Regulatory Commission 

24 ‘‘Whenever the Postal Service submits to the Postal 

25 Regulatory Commission any notice, petition, request, or 


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1 other filing intended to initiate a new proceeding before 

2 the Commission, the Commission shall make an initial de3 termination that such filing presents adequate information 

4 upon which the Commission may make its decision or ad5 visory opinion. If the Commission’s initial determination 

6 is that the Postal Service’s filing is inadequate, it shall 

7 dismiss the filing without prejudice.’’. 

8 (b) CLERICAL AMENDMENT.—The table of sections 

9 for chapter 5 is amended by adding at the end the fol10 lowing: 

‘‘506. Submissions by the Postal Service to the Postal Regulatory Commission.’’. 

11 SEC. 703. FAIR STAMP-EVIDENCING COMPETITION. 

12 Section 404(a) is amended— 

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

14 end; 

15 (2) in paragraph (3), by striking the period at 

16 the end and inserting ‘‘; or’’; and 

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

18 ‘‘(4) offer to the public any postage-evidencing 

19 product or service that does not comply with any 

20 rule or regulation that would be applicable to such 

21 product or service if the product or service were of22 fered by a private company.’’. 


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1 SEC. 704. USPS INNOVATION OFFICER AND ACCOUNT2 ABILITY. 

3 (a) IN GENERAL.—Chapter 2 is amended by adding 

4 at the end the following: 

5 ‘‘SEC. 209. USPS INNOVATION OFFICER AND ACCOUNT6 ABILITY. 

7 ‘‘(a) IN GENERAL.—There shall be in the Postal 

8 Service a Chief Innovation Officer selected by the Post9 master General who shall have proven expertise and a 

10 record of success in 1 or more of the following: postal and 

11 shipping industry, innovation product research and devel12 opment, marketing brand strategy, emerging communica13 tions technology, or business process management. The 

14 Chief Innovation Officer shall manage the Postal Service’s 

15 development and implementation of innovative postal and 

16 nonpostal products and services. 

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

18 have as primary duties— 

19 ‘‘(1) leading the development of innovative non20 postal products and services that will maximize rev21 enue to the Postal Service; 

22 ‘‘(2) developing innovative postal products and 

23 services, particularly those that utilize emerging in24 formation technologies, to maximize revenue to the 

25 Postal Service; 


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1 ‘‘(3) monitoring the performance of innovative 

2 products and services and revising them as needed 

3 to meet changing market trends; and 

4 ‘‘(4) taking into consideration comments or ad5 visory opinions, if applicable, issued by the Postal 

6 Regulatory Committee prior to the initial sale of in7 novative postal or nonpostal products and services. 

8 ‘‘(c) DESIGNATION.— 

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

10 the date of enactment of this section, but no later 

11 than January 1, 2014, the Postmaster General shall 

12 designate a Chief Innovation Officer. 

13 ‘‘(2) CONDITION.—Nothing in this section shall 

14 be construed to prohibit an individual who holds an15 other office or position in the Postal Service from 

16 serving as the Chief Innovation Officer under this 

17 chapter. However, upon appointment to the position 

18 of the Chief Innovation Officer, such individual may 

19 not, while serving in such office, concurrently hold 

20 any other office or position in the Postal Service. 

21 ‘‘(d) INNOVATION STRATEGY.— 

22 ‘‘(1) IN GENERAL.—Not later than 12 months 

23 after the date on which the Chief Innovation Officer 

24 is designated under subsection (c)(1), the Post25 master General shall submit to the Committee on 


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1 Homeland Security and Governmental Affairs of the 

2 Senate and the Committee on Oversight and Govern3 ment Reform of the House of Representatives a 

4 comprehensive strategy for maximizing revenues 

5 through innovative postal and nonpostal products 

6 and services. 

7 ‘‘(2) MATTERS TO BE ADDRESSED.—At a min8 imum, the strategy required by this section shall ad9 dress— 

10 ‘‘(A) the specific innovative postal and 

11 nonpostal products and services to be developed 

12 and offered by the Postal Service, including the 

13 nature of the market to be filled by each prod14 uct and service and the likely date by which 

15 each product and service will be introduced; 

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

17 each product or service; 

18 ‘‘(C) the anticipated sales volume of each 

19 product and service; 

20 ‘‘(D) the anticipated revenues and profits 

21 expected to be generated by each product and 

22 service; 

23 ‘‘(E) the likelihood of success of each inno24 vative product and service as well as the risks 


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1 associated with the development and sale of 

2 each innovative product and service; 

3 ‘‘(F) the trends anticipated in market con4 ditions that may affect the success of each 

5 product and service over the 5-year period be6 ginning on the date such strategy or update is 

7 submitted; and 

8 ‘‘(G) the metrics that will be utilized to as9 sess the effectiveness of the innovation strategy. 

10 ‘‘(3) STRATEGY UPDATES.—On January 1, 

11 2018, and every 3 years thereafter, the Chief Inno12 vation Officer shall submit an update to the innova13 tion strategy submitted under paragraph (1) to the 

14 Committee on Homeland Security and Governmental 

15 Affairs of the Senate, the Committee on Oversight 

16 and Government Reform of the House of Represent17 atives, and the Postal Regulatory Commission. 

18 ‘‘(e) REPORT ON PERFORMANCE.— 

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

20 shall submit to the Committee on Homeland Secu21 rity and Governmental Affairs of the Senate, the 

22 Committee on Oversight and Government Reform of 

23 the House of Representatives, and the Postal Regu24 latory Commission with the President’s budget sub25 mission under section 1105(a) of title 31 a report 


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1 that details the Postal Service’s progress in imple2 menting the innovation strategy. 

3 ‘‘(2) MATTERS TO BE ADDRESSED.—At a min4 imum, the report required by this section shall ad5 dress— 

6 ‘‘(A) the revenue generated by each prod7 uct and service developed through the innova8 tion strategy and the costs of developing and 

9 offering each such product and service for the 

10 most recent fiscal year; 

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

12 generated by each product and service on a 

13 monthly basis for the preceding year; 

14 ‘‘(C) trends in the markets filled by each 

15 product and service; 

16 ‘‘(D) products and services identified in 

17 the innovation strategy that are to be discon18 tinued, the date on which the discontinuance 

19 will occur, and the reasons for the discontinu20 ance; 

21 ‘‘(E) alterations in products and services 

22 identified in the innovation strategy that will be 

23 made to meet changing market conditions, and 

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1 sure the success of the products and services; 

2 and 

3 ‘‘(F) the performance of the innovation 

4 strategy according to the metrics identified in 

5 subsection (d)(2)(G). 

6 ‘‘(f) COMPTROLLER GENERAL.— 

7 ‘‘(1) IN GENERAL.—The Comptroller General 

8 shall conduct a study on the implementation of the 

9 innovation strategy not later than 4 years after the 

10 date of enactment of this section. 

11 ‘‘(2) CONTENTS.—At a minimum, the Comp12 troller General shall assess the effectiveness of the 

13 Postal Service in identifying, developing, and selling 

14 innovative postal and nonpostal products and serv15 ices. The study shall also include— 

16 ‘‘(A) an audit of the costs of developing 

17 each innovative postal and nonpostal product 

18 and service developed or offered by the Postal 

19 Service during the period beginning on the date 

20 of enactment of this section and ending 4 years 

21 after such date; 

22 ‘‘(B) the sales volume of each such product 

23 and service; 

24 ‘‘(C) the revenues and profits generated by 

25 each such product and service; and 


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1 ‘‘(D) the likelihood of continued success of 

2 each such product and service. 

3 ‘‘(3) SUBMISSION.—The results of the study re4 quired under this subsection shall be submitted to 

5 the Committee on Homeland Security and Govern6 mental Affairs of the Senate and the Committee on 

7 Oversight and Government Reform of the House of 

8 Representatives.’’. 

9 (b) CLERICAL AMENDMENT.—The table of sections 

10 at the beginning of chapter 2 is amended by adding at 

11 the end the following: 

‘‘209. USPS innovation officer and accountability.’’. 

12 SEC. 705. POSTAL REGULATORY COMMISSION TRAVEL RE13 PORTING. 

14 Section 504(d) is amended— 

15 (1) by striking ‘‘(d)’’ and inserting ‘‘(d)(1)’’; 

16 and 

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

18 ‘‘(2) Not later than 60 days after the end of 

19 each fiscal year, the Postal Regulatory Commis20 sioners shall submit an itemized report describing all 

21 travel and reimbursable business travel expenses 

22 paid to each Commissioner, including the Chairman, 

23 when performing regulatory duties to the Committee 

24 on Oversight and Government Reform of the House 

25 of Representatives and the Committee on Homeland 


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1 Security and Governmental Affairs of the Senate. 

2 The report submitted under this paragraph shall in3 clude a detailed justification for any travel or reim4 bursable business travel expense that deviates from 

5 the Commission’s travel and reimbursable business 

6 travel expense policies and guidelines.’’. 

Æ 


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