IB 

Union Calendar No. 564 

113TH CONGRESS 

2D SESSION H. R. 2748 

[Report No. 113–733, Part I] 

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 

JANUARY 2, 2015 

Reported with amendments and referred to the Committee on Education and 

the Workforce for a period ending not later than January 2, 2015, for 

consideration of such provisions of the bill and amendment as fall within 

the jurisdiction of that committee pursuant to clause 1(e) of rule X 

[Omit the part struck through and insert the part printed in italic] 

JANUARY 2, 2015 

The Committee on Education and the Workforce discharged; committed to the 

Committee of the Whole House on the State of the Union and ordered 

to be printed 

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A BILL 

To restore the financial solvency of the United States Postal 

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

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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 

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. 

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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. 

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; 

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

2 post office, post office branch, post office classified 

3 station, or other facility which is operated by the 

4 Postal Service, and the primary function of which is 

5 to provide retail postal services, but does not include 

6 a contractor-operated facility offering postal services; 

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

8 office of an administrative field unit with responsi9 bility for postal operations in a designated geo10 graphic area (as defined under regulations, direc11 tives, or other guidance of the Postal Service, as in 

12 effect on January 1, 2013); and 

13 (4) the term ‘‘area office’’ means the central of14 fice of an administrative field unit with responsibility 

15 for postal operations in a designated geographic area 

16 which is comprised of designated geographic areas 

17 as referred to in paragraph (3). 

18 TITLE I—POSTAL SERVICE 

19 MODERNIZATION 

20 SEC. 101. NATIONWIDE MAIL DELIVERY SCHEDULE. 

21 (a) IN GENERAL.—Section 404 is amended by insert22 ing after subsection (e) the following: 

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

24 nationwide mail delivery schedule of 5 days per week. 

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

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

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

4 delivered, including as a result of Federal holidays. 

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

6 2018, the Postal Service shall provide domestic competi7 tive product service 6 days per week to each street address 

8 that was scheduled to receive package service 6 days per 

9 week as of September 30, 2012. 

10 ‘‘(4) Nothing in this section shall be construed to au11 thorize a reduction, or to require an increase, in frequency 

12 of mail delivery for any address for which the Postal Serv13 ice provided delivery on fewer than 6 days per week as 

14 of January 1, 2013.’’. 

15 (b) MAILBOX ACCESS.—If the Postal Service estab16 lishes a general, nationwide mail delivery schedule of 5 

17 days per week, consistent with the provisions of section 

18 404 of title 39, United States Code, as amended by sub19 section (a), the Postal Service shall amend the Mailing 

20 Standards of the United States Postal Service (as set 

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

22 provisions of section 508.3.2.10 of such Manual, as in ef23 fect on September 30, 2012, shall apply on any day on 

24 which the Postal Service does not deliver mail under the 

25 established delivery schedule. 

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1 SEC. 102. DELIVERY-POINT MODERNIZATION. 

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

3 amended by adding at the end the following: 

4 ‘‘§ 3692. Delivery-point modernization 

5 ‘‘(a) DEFINITIONS.—For the purposes of this sec6 tion— 

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

8 or other receptacle to which mail is delivered; 

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

10 means the typical method by which the Postal Serv11 ice delivers letter mail to the delivery point of a 

12 postal patron; 

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

14 mode of mail delivery whereby mail is placed into a 

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

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

17 include curbside or centralized delivery; 

18 ‘‘(4) the term ‘centralized delivery’ means a pri19 mary mode of mail delivery whereby mail receptacles 

20 of a number of delivery points are grouped or clus21 tered at a single location; and 

22 ‘‘(5) the term ‘curbside delivery’ means a pri23 mary mode of mail delivery whereby a mail recep24 tacle is situated at the edge of a sidewalk abutting 

25 a road or curb, at a road, or at a curb. 

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

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

3 mail delivery feasible for postal patrons. 

4 ‘‘(c) PHASEOUT OF DOOR DELIVERY.— 

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

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

7 wherever feasible, to provide a primary mode of mail 

8 delivery other than door delivery to new addresses 

9 established after the date of enactment of this sec10 tion. 

11 ‘‘(2) BUSINESS ADDRESS CONVERSION.—Sub12 ject to paragraph (4), the Postal Service shall imple13 ment a program to convert existing business ad14 dresses with door delivery to centralized delivery to 

15 the maximum extent feasible. In cases in which con16 version to centralized delivery is impractical, conver17 sion to curbside delivery shall be implemented to the 

18 maximum extent feasible. 

19 ‘‘(3) RESIDENTIAL ADDRESS CONVERSION.— 

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

21 after the date of enactment of this section, each 

22 district office shall identify residential addresses 

23 within its service area that are appropriate can24 didates for conversion from door delivery to 

25 curbside or centralized delivery, in accordance 

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1 with standards established by the Postal Serv2 ice. 

3 ‘‘(B) VOLUNTARY CONVERSION.—Subject 

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

5 to voluntarily convert the delivery points identi6 fied under subparagraph (A) from door delivery 

7 to more cost-effective primary modes of mail 

8 delivery. 

9 ‘‘(C) PROCEDURES.—In carrying out con10 versions under subparagraph (B), the Postal 

11 Service shall establish procedures to— 

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

13 input from postal patrons, State and local 

14 governments, local associations, and prop15 erty owners; and 

16 ‘‘(ii) place centralized delivery points 

17 in locations that maximize delivery effi18 ciency, ease of use for postal patrons, and 

19 respect for private property rights. 

20 ‘‘(4) CONSIDERATIONS.—In making any deter21 mination to convert the primary mode of mail deliv22 ery for an existing address from door delivery to any 

23 other primary mode of mail delivery, or to provide 

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

25 the Postal Service may shall consider— 

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

2 physical barriers, or any other factor that may 

3 impact the feasibility of providing a primary 

4 mode of mail delivery other than door delivery 

5 (such as a factor that may significantly reduce 

6 the potential cost savings associated with pro7 viding centralized or curbside delivery); 

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

9 historic district (as that term is defined in sec10 tion 47(c)(3)(B) of the Internal Revenue Code 

11 of 1986) is listed on the National Register of 

12 Historic Places, is designated as a National 

13 Historic Landmark, or is of historic value; and 

14 ‘‘(C) population density and the concentra15 tion of poverty. 

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

17 Postal Service shall establish and maintain a waiver 

18 program under which, upon application, door deliv19 ery may be continued, or provided, at no cost to the 

20 applicant in any case in which— 

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

22 but for this paragraph, otherwise be the pri23 mary mode of mail delivery; and 

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

2 avoid causing significant physical hardship or 

3 physical safety risks to a postal patron. 

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

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

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

7 the addressee, door delivery to an address that 

8 received door delivery as of January 1, 2013, 

9 but was converted to a different primary mode 

10 of mail delivery as a result of the requirements 

11 of subsection (d). 

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

13 in the nationwide aggregate, offset the addi14 tional cost to the Postal Service for door deliv15 ery (compared to the cost of the primary mode 

16 of mail delivery which would otherwise exist for 

17 such address) as a result of the requirements of 

18 subsection (d). 

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

20 subject to the requirements of section 

21 3622(d)(1)(B) and the Postmaster General may 

22 by regulation prescribe the method of the fee’s 

23 calculation. 

24 ‘‘(d) MODERNIZATION REQUIREMENT.— 

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

2 Not later than September 30, 2022, the Postal Serv3 ice shall convert not less than 30,000,000 of the 

4 door delivery points extant on December 31, 2012, 

5 to centralized or curbside delivery. 

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

7 which delivery points to convert under paragraph 

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

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

10 shall take precedence over any other conversions to 

11 the greatest extent practicable. 

12 ‘‘(3) PROCEDURES.—In carrying out conversions 

13 under paragraph (1), the Postal Service shall estab14 lish procedures to— 

15 ‘‘(A) solicit, consider, and respond to input 

16 from the general public, postal patrons, State 

17 and local governments, local associations, and 

18 property owners which shall include but not be 

19 limited to a minimum of a public community 

20 meeting prior to the commencement of the con21 version of a community, prior to the completion 

22 of the conversion of a community and at any 

23 point in the process when the District Manager 

24 makes a change to the delivery method or the lo25 cation of centralized delivery points; 

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1 ‘‘(B) calculate and make publicly accessible 

2 the cost or savings of the conversion to the Postal 

3 Service as well as the average conversion cost or 

4 savings to each postal patron and any cost or 

5 savings to the State and local government; and 

6 ‘‘(C) place centralized delivery points in lo7 cations that maximize delivery efficiency, ease of 

8 use for postal patrons, and respect for private 

9 property rights. 

10 ‘‘(3)(4) FUNDING AND REPAYMENT.—Until 

11 September 30, 2022, the Postal Service may with12 draw funds from the Postal Service Delivery-Point 

13 Modernization Fund to carry out the purposes of 

14 this section. All savings accrued by the Postal Serv15 ice from conversions under this subsection shall be 

16 repaid to the Fund on a monthly basis until all 

17 funds have been repaid. All funds withdrawn under 

18 this paragraph must be repaid not later than Sep19 tember 30, 2023. 

20 ‘‘(4)(5) VOUCHER PROGRAM.—The Postal Serv21 ice shall, in accordance with such standards and pro22 cedures as the Postal Service shall by regulation pre23 scribe, provide for a voucher program, funded 

24 through the Postal Service Delivery Point Mod25 ernization Fund, under which, upon application, the 

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1 Postal Service may defray all or any portion of the 

2 costs associated with conversion from door delivery 

3 under this section which would otherwise be borne 

4 by postal patrons. 

5 ‘‘(5)(6) TREATMENT OF EXEMPTION.—Address6 es receiving door delivery or legacy door delivery as 

7 a result of paragraph (5) or (6) of subsection (c)— 

8 ‘‘(A) shall be counted as addresses that re9 ceive the primary mode of mail delivery which 

10 the address would be subject to if not for the 

11 applicable exemption; and 

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

13 meet the requirements of such paragraph (5) or 

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

15 mode of mail delivery which was otherwise ap16 plicable. 

17 ‘‘(6)(7) ANNUAL REPORTS.—Not later than 60 

18 days after the end of each of fiscal years 2013 

19 through 2023, the Postal Service shall submit to 

20 Congress and the Inspector General of the Postal 

21 Service a report on the implementation of this sec22 tion during the most recently completed fiscal year. 

23 Each such report shall include— 

24 ‘‘(A) the number of residential and busi25 ness addresses that— 

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

2 of the fiscal year preceding the most re3 cently completed fiscal year; 

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

5 end of the most recently completed fiscal 

6 year; and 

7 ‘‘(iii) during the most recently com8 pleted fiscal year, were converted from 

9 door delivery to— 

10 ‘‘(I) centralized delivery points; 

11 ‘‘(II) curbside delivery points; 

12 and 

13 ‘‘(III) any other primary mode of 

14 mail delivery, respectively; 

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

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

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

18 the Postal Service toward meeting the require19 ments of subsection (c) and paragraph (1) of 

20 this subsection; and 

21 ‘‘(D) any other information which the 

22 Postal Service considers appropriate. 

23 ‘‘(8) INSPECTOR GENERAL AUDIT.—The Inspec24 tor General of the Postal Service shall issue an an25 nual audit report on the implementation of the conmstockstill on DSK4VPTVN1PROD with BILLS

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1 version requirement from paragraph (1) not later 

2 than 90 days after date on which the Postal Service 

3 releases its annual report under paragraph (7). At a 

4 minimum, the report under this paragraph shall con5 tain— 

6 ‘‘(A) an audit of the data contained in the 

7 Postal Service’s report under paragraph (7); and 

8 ‘‘(B) an evaluation of the Postal Service’s 

9 implementation of the procedural requirements 

10 described in paragraph (3). 

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

12 with respect to any action taken by the Postal Service 

13 under this section.’’. 

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

15 for chapter 36 is amended by adding after the item relat16 ing to section 3691 the following: 

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

17 SEC. 103. EFFICIENT AND FLEXIBLE UNIVERSAL POSTAL 

18 SERVICE. 

19 (a) POSTAL POLICY.— 

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

21 to read as follows: 

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

23 regular postal services to rural areas, communities, and 

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

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

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

3 ‘‘(iii) whether such closing or consolidation 

4 is consistent with the policy of the Government, 

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

6 Service shall provide effective and regular post7 al services to rural areas, communities, and 

8 small towns where post offices are not self-sus9 taining;’’. 

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

11 403(b) is amended to read as follows: 

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

13 the Nation will, consistent with reasonable econo14 mies of postal operations, have ready access to es15 sential postal services.’’. 

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

17 is amended to read as follows: 

18 ‘‘(i) the effect of such closing or consolida19 tion on the community served by such post of20 fice, including through an analysis of such fac21 tors as— 

22 ‘‘(I) the distance (as measured by 

23 public roads) to the closest postal retail fa24 cility not proposed for closure or consolida25 tion under such plan; 

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1 ‘‘(II) the characteristics of such loca2 tion, including weather and terrain; 

3 ‘‘(III) whether commercial mobile 

4 service (as defined in section 332 of the 

5 Communications Act of 1934) and com6 mercial mobile data service (as defined in 

7 section 6001 of the Middle Class Tax Re8 lief and Job Creation Act of 2012) are 

9 available in at least 80 percent of the total 

10 geographic area of the ZIP codes served by 

11 the postal retail facility proposed for clo12 sure or consolidation; and 

13 ‘‘(IV) whether fixed broadband Inter14 net access service is available to households 

15 in at least 80 percent of such geographic 

16 area at speeds not less than those suffi17 cient for service to be considered 

18 broadband for purposes of the most recent 

19 report of the Federal Communications 

20 Commission under section 706 of the Tele21 communications Act of 1996;’’. 

22 (d) PRC REVIEW OF DETERMINATIONS TO CLOSE

23 OR CONSOLIDATE A POST OFFICE.— 

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1 (1) DEADLINE FOR REVIEW.—Section 

2 404(d)(5) is amended by striking ‘‘120 days’’ and 

3 inserting ‘‘60 days’’. 

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

5 is amended by adding at the end the following: 

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

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

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

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

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

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

12 store or other place of business which— 

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

14 Service; and 

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

16 provides postal services to the general public 

17 under contract with the Postal Service; and 

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

19 used in connection with a post office, means a con20 tract postal unit which— 

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

22 general public during the period— 

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

24 on which the closure or consolidation of 

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1 such post office is scheduled to take effect; 

2 and 

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

4 the date on which the closure or consolida5 tion of such post office is scheduled to take 

6 effect; and 

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

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

9 post office from the appeals process set forth in 

10 paragraph (5). 

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

12 continue to provide postal services, as required by sub13 paragraph (B)(i)(II), for at least the 2-year period begin14 ning on the date on which such post office was closed or, 

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

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

17 be subject to a closure determination by the Postal Service 

18 to decide whether a post office must be reopened within 

19 the area (delimited by the 2-mile radius referred to in sub20 paragraph (A)). 

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

22 office may be appealed to the Postal Regulatory Commis23 sion under procedures which the Commission shall by reg24 ulation prescribe. Such procedures shall be based on para25 graph (5), except that, for purposes of this clause, paramstockstill on DSK4VPTVN1PROD with BILLS

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1 graph (5)(C) shall be applied by substituting ‘in violation 

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

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

4 substantial evidence on the record’.’’. 

5 (3) APPLICABILITY.—The amendments made 

6 by this subsection shall not apply with respect to 

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

8 Regulatory Commission before the date of enactment 

9 of this Act (determined applying the rules set forth 

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

11 (e) EXPEDITED PROCEDURES.— 

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

13 adding at the end the following: 

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

15 90 days after the receipt of any proposal (as referred to 

16 in subsection (b)) concerning— 

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

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

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

20 generally affect service on a nationwide or substan21 tially nationwide basis; or 

22 ‘‘(B) an identical or substantially identical pro23 posal on which the Commission issued an opinion 

24 within the preceding 5 years. 

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

2 requirement under paragraph (1), the Commission may 

3 apply expedited procedures which the Commission shall by 

4 regulation prescribe.’’. 

5 (2) REGULATIONS.—The Postal Regulatory 

6 Commission shall prescribe any regulations nec7 essary to carry out the amendment made by para8 graph (1) within 90 days after the date of enact9 ment of this Act. 

10 (3) APPLICABILITY.—The amendment made by 

11 this subsection shall apply with respect to any pro12 posal received by the Postal Regulatory Commission 

13 on or after the earlier of— 

14 (A) the 90th day after the date of enact15 ment of this Act; or 

16 (B) the effective date of the regulations 

17 under paragraph (2). 

18 (f) RURAL POST OFFICE ANNUAL CLOSURE LIMITA19 TION.—Section 404a(a) is amended— 

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

21 end; 

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

23 inserting ‘‘; or’’; and 

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

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1 ‘‘(4) close, consolidate, or suspend the oper2 ations of more than 5-percent of the number of cur3 rently operating postal retail facilities on January 1, 

4 of each year that were within the K or L cost ascer5 tainment grouping on January 1, 2012, excluding 

6 any postal retail facility scheduled for closure and 

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

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

9 (g) ALTERNATE POSTAL ACCESS CHOICE.—Section 

10 404(d) is amended by striking paragraph (1) and inserting 

11 the following: 

12 ‘‘(d)(1) The Postal Service, prior to making a deter13 mination under subsection (a)(3) as to the necessity for 

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

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

16 close or consolidate such post office at least 60 days 

17 prior to the proposed date of such closing or consoli18 dation to postal patrons served by such post office; 

19 ‘‘(B) conduct a nonbinding survey on the pro20 posed closing or consolidation to allow postal patrons 

21 served by such post office an opportunity to indicate 

22 their preference between or among— 

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

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

25 ‘‘(C) ensure that— 

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

2 a postal retail facility be deemed necessary, it 

3 shall be the policy of the Postal Service to pro4 vide alternative access to postal services to 

5 those served by the postal retail facility by the 

6 option chosen by the highest number of survey 

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

8 ‘‘(ii) if the Postal Service is unable to pro9 vide alternative access through the option iden10 tified in clause (i), or if that option is cost pro11 hibitive, the Postal Service may provide alter12 native access through a different means. Upon 

13 selection of an alternative access method other 

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

15 Service must provide written notice to those pa16 trons served by the postal retail facility identi17 fying and explaining why the option identified 

18 by clause (i) was not possible or cost prohibi19 tive.’’. 

20 SEC. 104. APPLICABILITY OF PROCEDURES RELATING TO 

21 CLOSURES AND CONSOLIDATIONS. 

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

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

24 103(d)(2)) the following: 

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

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

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

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

5 (within the meaning of the amendment made by sub6 section (a)) which, but for such amendment, would not 

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

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

9 be effective with respect to any closure or consolidation, 

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

11 60th day following the date of enactment of this Act. 

12 SEC. 105. ENHANCED REPORTING ON POSTAL SERVICE EF13 FICIENCY. 

14 Section 3652(a) is amended— 

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

16 the semicolon; 

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

18 the end and inserting ‘‘; and’’; and 

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

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

21 Postal Service productivity and the resulting effect 

22 of such change on overall Postal Service costs during 

23 such year, using such methodologies as the Commis24 sion shall by regulation prescribe.’’. 

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1 SEC. 106. AREA AND DISTRICT OFFICE STRUCTURE. 

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

3 date of enactment of this Act, the Postal Service, in con4 sultation with the Inspector General of the United States 

5 Postal Service, shall develop and begin implementation of 

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

7 district offices as the Postal Service considers necessary 

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

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

10 30 percent less than the corresponding combined total as 

11 of September 30, 2012. 

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

13 (1) a list of the area and district offices pro14 posed for closure or consolidation; 

15 (2) a proposed schedule under which closures 

16 and consolidations of area and district offices would 

17 be carried out; 

18 (3) the estimated total annual cost savings at19 tributable to the proposed closures and consolida20 tions described in the plan; 

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

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

23 (5) the methodology and assumptions used to 

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

25 (6) any changes to the processing, transpor26 tation, delivery, or other postal operations anticimstockstill on DSK4VPTVN1PROD with BILLS

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1 pated as a result of the proposed closures and con2 solidations described in the plan. 

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

4 120 days after the date of enactment of this Act, the plan 

5 shall be submitted to the Committee on Homeland Secu6 rity and Governmental Affairs of the Senate and the Com7 mittee on Oversight and Government Reform of the House 

8 of Representatives. Any revision to the plan shall be sub9 mitted not later than 14 days after such revision is adopt10 ed by the Postal Service. 

11 TITLE II—POSTAL SERVICE 

12 GOVERNANCE 

13 Subtitle A—Temporary Governance 

14 Authority 

15 SEC. 201. PURPOSES. 

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

17 follows: 

18 (1) To eliminate budget deficits and cash short19 ages of the Postal Service through strategic financial 

20 planning, sound budgeting, accurate revenue fore21 casts, and careful spending. 

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

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

24 maintained during the period of any fiscal emer25 gency. 

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1 (3) To conduct necessary investigations and 

2 studies to determine the fiscal status and oper3 ational efficiency of the Postal Service. 

4 (4) To assist the Postal Service in— 

5 (A) restructuring its organization and 

6 workforce to bring expenses in line with dimin7 ishing revenue and generate sufficient profits 

8 for capital investments and repayment of debt; 

9 (B) meeting all fiscal obligations to the 

10 Treasury of the United States; and 

11 (C) ensuring the appropriate and efficient 

12 delivery of postal services. 

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

14 and economic vitality and operational efficiency of 

15 the Postal Service. 

16 (b) RESERVATION OF POWERS.—Nothing in this sub17 title may be construed— 

18 (1) to relieve any obligation of the Postal Serv19 ice to the Treasury of the United States existing as 

20 of the date of enactment of this Act; or 

21 (2) to limit the authority of Congress to exer22 cise legislative authority over the Postal Service. 

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1 SEC. 202. ESTABLISHMENT OF THE POSTAL SERVICE FI2 NANCIAL RESPONSIBILITY AND MANAGE3 MENT ASSISTANCE AUTHORITY. 

4 (a) ESTABLISHMENT.—There is established, in ac5 cordance with the provisions of this subtitle, an entity to 

6 be known as the ‘‘Postal Service Financial Responsibility 

7 and Management Assistance Authority’’ (hereinafter in 

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

9 (b) OPERATIONS DURING THE CONTROL PERIOD.— 

10 (1) CONTROL PERIOD DEFINED.—For the pur11 poses of this subtitle, the term ‘‘control period’’ 

12 means the period that commences on the date as of 

13 which the Authority has at least 4 members and ter14 minates as of the date determined under paragraph 

15 (5). 

16 (2) TRANSFER OF AUTHORITIES AND RESPON17 SIBILITIES.—Effective as of the date on which the 

18 control period commences— 

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

20 are repealed; 

21 (B) the term of office of each of the 9 Gov22 ernors (appointed under the second sentence of 

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

24 Code, as last in effect before the date of enact25 ment of this Act) shall terminate; and 

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1 (C) the Authority shall assume its respon2 sibilities, as set forth in section 206. 

3 (3) TREATMENT OF CERTAIN EXECUTIVES.— 

4 (A) DEFINITION.—For the purposes of 

5 this section, the term ‘‘Level-Two Postal Serv6 ice Executive’’ includes the Postmaster General, 

7 the Deputy Postmaster General, and all the 

8 other officers and employees of the Postal Serv9 ice in level two of the Postal Career Executive 

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

11 any officer or employee of the Office of Inspec12 tor General of the United States Postal Service. 

13 (B) TREATMENT.—Notwithstanding any 

14 other provision of law or the provisions of any 

15 employment contract, during the control pe16 riod— 

17 (i) all Level-Two Postal Service Ex18 ecutives shall serve at the pleasure of the 

19 Authority; 

20 (ii) the duties and responsibilities of 

21 all Level-Two Postal Service Executives, as 

22 well as the terms and conditions of their 

23 employment (including their compensa24 tion), shall be subject to determination or 

25 redetermination by the Authority; 

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1 (iii) total compensation of a Level2 Two Postal Service Executive may not, for 

3 the first full fiscal year occurring in such 

4 control period or any subsequent fiscal 

5 year commencing in such control period, 

6 exceed the annual rate of basic pay payable 

7 for level I of the Executive Schedule under 

8 section 5312 of title 5, United States 

9 Code, for that year; for purposes of this 

10 clause, the term ‘‘total compensation’’ 

11 means basic pay, bonuses, awards, and all 

12 other monetary compensation; 

13 (iv) the percentage by which the rate 

14 of basic pay of a Level-Two Postal Service 

15 Executive is increased during any year 

16 may not exceed the percentage change in 

17 the Consumer Price Index for All Urban 

18 Consumers, unadjusted for seasonal vari19 ation, for the most recent 12-month period 

20 available, except that, in the case of a 

21 Level-Two Postal Service Executive who 

22 has had a significant change in job respon23 sibilities, a greater change shall be allow24 able if approved by the Authority; 

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

2 Postal Service Executive may not be af3 forded any bonus, award, or other mone4 tary compensation for any full fiscal year 

5 in the control period if expenditures of the 

6 Postal Service for such fiscal year exceeded 

7 revenues of the Postal Service for such fis8 cal year (determined in accordance with 

9 generally accepted accounting principles); 

10 and 

11 (vi) no deferred compensation may be 

12 paid, accumulated, or recognized in the 

13 case of any Level-Two Postal Service Exec14 utive, with respect to any full year in the 

15 control period, which is not generally paid, 

16 accumulated, or recognized in the case of 

17 employees of the United States (outside of 

18 the Postal Service) in level I of the Execu19 tive Schedule under section 5312 of title 5, 

20 United States Code, with respect to such 

21 year.; and 

22 (vii) in the case of any Level-Two 

23 Postal Service Executive, the expense in24 curred by the Postal Service for non-cash 

25 awards or honorary recognitions covered 

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1 under section 4503 of title 5, United States 

2 Code, may not exceed a combined total of 

3 $200 with respect to any full year in the 

4 control period. 

5 (C) BONUS AUTHORITY.—Section 3686 of 

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

7 period beginning on the commencement date of 

8 the control period and ending on the termi9 nation date of the control period— 

10 (i) be suspended with respect to all 

11 Level-Two Postal Service Executives; but 

12 (ii) remain in effect for all other offi13 cers and employees of the Postal Service 

14 otherwise covered by this section. 

15 (4) CERTIFICATION REQUIREMENT.—The con16 trol period may not terminate until after the Author17 ity, with the concurrence of the Secretary of the 

18 Treasury and the Director of the Office of Personnel 

19 Management, certifies to the Director of the Office 

20 of Management and Budget that— 

21 (A) for 2 consecutive fiscal years (occur22 ring after the date of enactment of this Act), 

23 expenditures of the Postal Service did not ex24 ceed revenues of the Postal Service (as determstockstill on DSK4VPTVN1PROD with BILLS

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1 mined in accordance with generally accepted ac2 counting principles); 

3 (B) the Authority has approved a Postal 

4 Service financial plan and budget that shows 

5 expenditures of the Postal Service not exceeding 

6 revenues of the Postal Service (as so deter7 mined) for the fiscal year to which such budget 

8 pertains and each of the next 3 fiscal years; 

9 and 

10 (C) the Postal Service financial plan and 

11 budget (as referred to in subparagraph (B)) in12 cludes plans— 

13 (i) for the repayment of any 

14 collateralized debt authorized by section 

15 503; and 

16 (ii) to properly fund Postal Service 

17 pensions and retiree health benefits in ac18 cordance with applicable provisions of title 

19 5, United States Code. 

20 (5) TERMINATION OF CONTROL PERIOD.— 

21 (A) TERMINATION DATE.— 

22 (i) GENERAL RULE.—Except as pro23 vided in clause (ii), the control period shall 

24 terminate 180 days after the date on which 

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1 the certification described in paragraph (4) 

2 is made. 

3 (ii) ALTERNATIVE DATE.— 

4 (I) AUTHORITY.—The Director 

5 of the Office of Management and 

6 Budget may, by written notice given 

7 to the Authority within 15 days after 

8 the date on which the certification de9 scribed in paragraph (4) is made, pro10 vide for an alternative termination 

11 date (in lieu of the date that would 

12 otherwise apply under clause (i)). 

13 (II) RANGE.—An alternative date 

14 under this clause shall not apply un15 less such date occurs not less than 30 

16 days after the date on which written 

17 notice under subclause (I) is given 

18 and not later than 180 days after the 

19 date on which the certification de20 scribed in paragraph (4) is made. 

21 (B) PUBLIC NOTICE.—The Authority shall 

22 cause to be published in the Federal Register— 

23 (i) the date on which the certification 

24 described in paragraph (4) is made, not 

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1 later than 1 business day after the date on 

2 which such certification is made; and 

3 (ii) the termination date of the control 

4 period, not later than 16 business days 

5 after the date on which the certification 

6 described in paragraph (4) is made. 

7 SEC. 203. MEMBERSHIP AND QUALIFICATION REQUIRE8 MENTS. 

9 (a) MEMBERSHIP.— 

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

11 of 5 members appointed by the President who meet 

12 the qualifications described in subsection (b), except 

13 that the Authority may take any action under this 

14 subtitle at any time after the President has ap15 pointed the initial 4 of its members. Members of the 

16 Authority shall report to the Secretary of the Treas17 ury. 

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

19 appointed— 

20 (A) 1 shall be appointed by the President 

21 taking into account any individuals rec22 ommended by the Speaker of the House of Rep23 resentatives; 

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1 (B) 1 shall be appointed by the President 

2 taking into account any individuals rec3 ommended by the majority leader of the Senate; 

4 (C) 1 shall be appointed by the President 

5 taking into account any individuals rec6 ommended by the minority leader of the House 

7 of Representatives; 

8 (D) 1 shall be appointed by the President 

9 taking into account any individuals rec10 ommended by the minority leader of the Senate; 

11 and 

12 (E) 1 shall be appointed by the President 

13 taking into account any individuals rec14 ommended by the Comptroller General. 

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

16 members of the Authority may be of the same polit17 ical party. 

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

19 the members of the Authority as the Chair of the 

20 Authority. 

21 (5) SENSE OF CONGRESS REGARDING DEAD22 LINE FOR APPOINTMENT.—It is the sense of Con23 gress that the President should appoint the members 

24 of the Authority as soon as practicable after the 

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

2 days after such date. 

3 (6) TERM OF SERVICE.— 

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

5 subparagraph (B), each member of the Author6 ity shall be appointed for a term of 3 years. 

7 (B) APPOINTMENT FOR TERM FOLLOWING

8 INITIAL TERM.—As designated by the President 

9 at the time of appointment for the term imme10 diately following the initial term, of the mem11 bers appointed for the term immediately fol12 lowing the initial term— 

13 (i) 1 member shall be appointed for a 

14 term of 1 year; 

15 (ii) 2 members shall be appointed for 

16 a term of 2 years; and 

17 (iii) 2 members shall be appointed for 

18 a term of 3 years. 

19 (C) VACANCIES AND SUCCESSION.—Any 

20 member of the Authority appointed to fill a va21 cancy before the expiration of the term for 

22 which the predecessor of the member of the Au23 thority was appointed shall serve for the re24 mainder of such term. 

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1 (D) REMOVAL.—The President may re2 move any member of the Authority only for 

3 cause. 

4 (E) COMPENSATION FOR SERVICE.—Each 

5 member of the Authority shall be paid for full6 time service at a rate of pay equivalent to the 

7 rate of basic pay payable for level III of the Ex8 ecutive Schedule under section 5314 of title 5, 

9 United States Code. 

10 (b) QUALIFICATION REQUIREMENTS.— 

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

12 qualifications for membership on the Authority if the 

13 individual— 

14 (A) has significant knowledge and exper15 tise in finance, management, and the organiza16 tion or operation of businesses having more 

17 than 500 employees; and 

18 (B) represents the public interest gen19 erally, is not a representative of specific inter20 ests using or belonging to the Postal Service, 

21 and does not have any business or financial in22 terest in any enterprise in the private sector of 

23 the economy engaged in the delivery of mail 

24 matter. 

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1 (2) SPECIFIC CONDITIONS.—An individual shall 

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

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

4 date of appointment, such individual— 

5 (A) has been an officer, employee, or pri6 vate contractor with the Postal Service, United 

7 States Postal Service Inspector General, or the 

8 Postal Regulatory Commission; or 

9 (B) has served as an employee or con10 tractor of a labor organization representing em11 ployees of the Postal Service, the United States 

12 Postal Service Inspector General, or the Postal 

13 Regulatory Commission. 

14 SEC. 204. ORGANIZATION AND STAFF. 

15 (a) ADOPTION OF BYLAWS FOR CONDUCTING BUSI16 NESS.—As soon as practicable after the appointment of 

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

18 procedures governing its activities under this subtitle, in19 cluding procedures for hiring experts and consultants. 

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

21 be submitted by the Authority to the Postmaster General, 

22 the President, and Congress. 

23 (b) EXECUTIVE DIRECTOR AND STAFF.— 

24 (1) EXECUTIVE DIRECTOR.—The Authority 

25 shall have an Executive Director who shall be apmstockstill on DSK4VPTVN1PROD with BILLS

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1 pointed by the Chair with the consent of the Author2 ity. The Executive Director shall be paid at a rate 

3 determined by the Authority, except that such rate 

4 may not exceed the rate of basic pay payable for 

5 level IV of the Executive Schedule under section 

6 5315 of title 5, United States Code. 

7 (2) STAFF.—With the approval of the Author8 ity, the Executive Director may appoint and fix the 

9 pay of such additional personnel as the Executive 

10 Director considers appropriate, except that no indi11 vidual appointed by the Executive Director may be 

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

13 Executive Director. Personnel appointed under this 

14 paragraph shall serve at the pleasure of the Execu15 tive Director. 

16 (3) INAPPLICABILITY OF CERTAIN CIVIL SERV17 ICE LAWS.—The Executive Director and staff of the 

18 Authority may be appointed without regard to the 

19 provisions of title 5, United States Code, governing 

20 appointments in the competitive service, and paid 

21 without regard to the provisions of chapter 51 and 

22 subchapter III of chapter 53 of such title relating to 

23 classification and General Schedule pay rates. 

24 (4) STAFF OF FEDERAL AGENCIES.—Upon re25 quest of the Chair, the head of any Federal departmstockstill on DSK4VPTVN1PROD with BILLS

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1 ment or agency may detail, on a reimbursable or 

2 nonreimbursable basis, any of the personnel of such 

3 department or agency to the Authority to assist it 

4 in carrying out its duties under this subtitle. 

5 SEC. 205. FUNDING. 

6 (a) GENERAL RULE.—There are authorized to be ap7 propriated, out of the Postal Service Fund, such sums as 

8 may be necessary for the Authority. In requesting an ap9 propriation under this section for a fiscal year, the Au10 thority shall prepare and submit to the Congress under 

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

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

13 supplies, compensation, and employee benefits, not to ex14 ceed $10,000,000. 

15 (b) INITIAL RULE.—Notwithstanding any other pro16 vision of this section, effective as of the date on which 

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

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

19 Service Fund, such sums as the Authority may require 

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

21 amount equal to the product obtained by multiplying— 

22 (1) the dollar amount specified in subsection 

23 (a), times 

24 (2) a fraction— 

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1 (A) the numerator of which is the number 

2 of months remaining in the fiscal year as of the 

3 date on which at least 4 members of the Au4 thority have been appointed (rounding any frac5 tion of a month to the next highest whole num6 ber); and 

7 (B) the denominator of which is 12. 

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

9 is amended in the next to last sentence— 

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

11 (3)’’; and 

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

13 (4) the Postal Service Financial Responsibility and 

14 Management Assistance Authority requests to be ap15 propriated, out of the Postal Service Fund, under 

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

17 SEC. 206. RESPONSIBILITIES AND POWERS. 

18 The exercise of the powers of the Postal Service shall 

19 be directed by the Authority, including— 

20 (1) all duties and responsibilities ascribed to the 

21 Governors and the Board of Governors by title 39, 

22 United States Code; 

23 (2) determining the overall strategies of the 

24 Postal Service; 

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

2 when necessary, replacing senior management at the 

3 level of vice president and higher, as well as ensur4 ing adequate succession planning for these positions; 

5 (4) approving major policies, particularly those 

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

7 financial position and the provision of universal 

8 postal service; 

9 (5) approving corporate budgets, financial and 

10 capital plans, operational and service performance 

11 standards and targets, human resource strategies, 

12 collective-bargaining strategies, negotiation param13 eters, collective-bargaining agreements, and the com14 pensation structure for nonbargaining employees; 

15 (6) formulating and communicating organiza16 tional policy and positions on legislative and other 

17 public policy matters to Congress and the public; 

18 and 

19 (7) carrying out any responsibility, not other20 wise listed in this section, that was the responsibility 

21 of the Board of Governors of the Postal Service at 

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

23 date of enactment of this Act. 

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1 SEC. 207. DEVELOPMENT OF FINANCIAL PLAN AND BUDG2 ET FOR THE SOLVENCY OF THE POSTAL 

3 SERVICE. 

4 (a) DEVELOPMENT OF FINANCIAL PLAN AND BUDG5 ET.—For each fiscal year during a control period, the 

6 Postmaster General shall submit to the Authority, by Au7 gust 1 before the start of such fiscal year, a financial plan 

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

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

10 the deadline for submission of the plan and budget under 

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

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

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

14 for a financial plan and budget under this subsection for 

15 fiscal year 2014 is waived. 

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

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

18 year shall specify the budget for the Postal Service as re19 quired by section 2009 of title 39, United States Code, 

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

21 years, in accordance with the following requirements: 

22 (1) The financial plan and budget shall meet 

23 the requirements described in subsection (c) to pro24 mote the financial stability of the Postal Service. 

25 (2) The financial plan and budget shall— 

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1 (A) include the Postal Service’s annual 

2 budget program (under section 2009 of title 39, 

3 United States Code) and the Postal Service’s 

4 plan commonly referred to as its ‘‘Integrated 

5 Financial Plan’’; 

6 (B) describe lump-sum expenditures by all 

7 categories traditionally used by the Postal Serv8 ice; 

9 (C) describe capital expenditures (together 

10 with a schedule of projected capital commit11 ments and cash outlays of the Postal Service 

12 and proposed sources of funding); 

13 (D) contain estimates of overall debt (both 

14 outstanding and anticipated to be issued); and 

15 (E) contain cash flow and liquidity fore16 casts for the Postal Service at such intervals as 

17 the Authority may require. 

18 (3) The financial plan and budget shall include 

19 a statement describing methods of estimations and 

20 significant assumptions. 

21 (4) The financial plan and budget shall include 

22 any other provisions and shall meet such other cri23 teria as the Authority considers appropriate to meet 

24 the purposes of this subtitle, including provisions 

25 for— 

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1 (A) changes in personnel policies and levels 

2 for each component of the Postal Service; and 

3 (B) management initiatives to promote 

4 productivity, improvement in the delivery of 

5 services, or cost savings. 

6 (c) REQUIREMENTS TO PROMOTE FINANCIAL STA7 BILITY.— 

8 (1) IN GENERAL.—The requirements to pro9 mote the solvency and financial stability of the Post10 al Service applicable to the financial plan and budget 

11 for a fiscal year are as follows: 

12 (A) For fiscal year 2016 and each subse13 quent fiscal year during a control period, budg14 eted expenditures of the Postal Service for the 

15 fiscal year involved may not exceed budgeted 

16 revenues of the Postal Service for the fiscal 

17 year involved. 

18 (B) In each fiscal year where a financial 

19 plan and budget must be developed, the finan20 cial plan and budget shall provide for contin21 uous, substantial progress toward long-term fis22 cal solvency of the Postal Service. 

23 (C) The financial plan and budget shall 

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1 standing obligations authorized under section 

2 503. 

3 (D) The financial plan and budget shall 

4 assure the continuing long-term solvency of the 

5 Postal Service, as indicated by factors such as 

6 the efficient management of the Postal Service’s 

7 workforce and the effective provision of services 

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

9 plan and budget shall consider— 

10 (i) the legal authority of the Postal 

11 Service; 

12 (ii) the changes in the legal authority 

13 and responsibilities of the Postal Service 

14 under this Act; 

15 (iii) any cost savings that the Postal 

16 Service anticipates will be achieved through 

17 negotiations with employees of the Postal 

18 Service; 

19 (iv) projected changes in mail volume; 

20 (v) the impact of regulations the Post21 al Service was required by law to promul22 gate; 

23 (vi) projected changes in the number 

24 of employees needed to carry out the re25 sponsibilities of the Postal Service; and 

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

2 Postal Service, including the need to main3 tain, repair, and replace facilities and 

4 equipment. 

5 (2) APPLICATION OF SOUND BUDGETARY PRAC6 TICES.—In meeting the requirements described in 

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

8 budget for a fiscal year, the Postal Service shall 

9 apply sound budgetary practices, including reducing 

10 costs and other expenditures, improving productivity, 

11 increasing revenues, or a combination of such prac12 tices. 

13 (3) ASSUMPTIONS BASED ON CURRENT LAW.— 

14 In meeting the requirements described in paragraph 

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

16 a fiscal year, the Postal Service shall base estimates 

17 of revenues and expenditures on Federal law Gen18 erally Accepted Accounting Principles and Federal 

19 law (including regulations) as in effect at the time 

20 of the preparation of such financial plan and budget. 

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

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

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

24 expenses, including the ability to perform maintenance 

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1 serves, as necessary to fulfill the requirements and comply 

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

3 obligations of the Postal Service. 

4 SEC. 208. PROCESS FOR SUBMISSION AND APPROVAL OF FI5 NANCIAL PLAN AND BUDGET. 

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

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

8 Authority shall promptly review such financial plan and 

9 budget. In conducting the review, the Authority may re10 quest any additional information it considers necessary 

11 and appropriate to carry out its duties. 

12 (b) APPROVAL OF POSTMASTER GENERAL’S FINAN13 CIAL PLAN AND BUDGET.— 

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

15 that the final financial plan and budget for the fiscal 

16 year submitted by the Postmaster General under 

17 subsection (a) meets the requirements of section 

18 207— 

19 (A) the Authority shall approve the finan20 cial plan and budget and shall provide the Post21 master General, the President, the Committee 

22 on Homeland Security and Governmental Af23 fairs in the Senate, and the Committee on 

24 Oversight and Government Reform in the 

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1 House of Representatives with a notice certi2 fying its approval; and 

3 (B) the Postmaster General shall promptly 

4 submit the annual budget program for the rel5 evant fiscal year to the Office of Management 

6 and Budget pursuant to section 2009 of title 

7 39, United States Code. 

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

9 the Authority has not provided the Postmaster Gen10 eral, the President, and Congress with a notice certi11 fying approval under paragraph (1)(A) or a state12 ment of disapproval under subsection (c) before the 

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

14 date the Authority receives the financial plan and 

15 budget from the Postmaster General under sub16 section (a), the Authority shall be deemed to have 

17 approved the financial plan and budget and to have 

18 provided the Postmaster General, the President, the 

19 Committee on Homeland Security and Governmental 

20 Affairs in the Senate, and the Committee on Over21 sight and Government Reform in the House of Rep22 resentatives with the notice certifying approval 

23 under paragraph (1)(A). 

24 (c) DISAPPROVAL OF POSTMASTER GENERAL’S FI25 NANCIAL PLAN AND BUDGET.— 

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1 (1) IN GENERAL.—If, after reviewing the finan2 cial plan and budget for a fiscal year submitted by 

3 the Postmaster General under subsection (a) in ac4 cordance with the procedures described in this sec5 tion, the Authority determines that the revised final 

6 financial plan and budget does not meet the applica7 ble requirements under section 207, the Authority 

8 shall— 

9 (A) disapprove the financial plan and 

10 budget; 

11 (B) provide the Postmaster General, the 

12 President, and Congress with a statement con13 taining the reasons for such disapproval and de14 scribing the amount of any shortfall in the fi15 nancial plan and budget; and 

16 (C) approve and recommend a financial 

17 plan and budget for the Postal Service which 

18 meets the applicable requirements under section 

19 207, and submit such financial plan and budget 

20 to the Postmaster General, the President, the 

21 Committee on Homeland Security and Govern22 mental Affairs in the Senate, and the Com23 mittee on Oversight and Government Reform in 

24 the House of Representatives. 

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

2 recommended financial plan and budget under para3 graph (1)(C), the Postmaster General shall promptly 

4 submit the recommended annual budget program to 

5 the Office of Management and Budget pursuant to 

6 section 2009 of title 39, United States Code. 

7 (d) DEADLINE FOR TRANSMISSION OF FINANCIAL

8 PLAN AND BUDGET BY THE AUTHORITY.—Notwith9 standing any other provision of this section, not later than 

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

11 which a financial plan and budget is required, the Author12 ity shall— 

13 (1) provide Congress with a notice certifying its 

14 approval of the Postmaster General’s financial plan 

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

16 or 

17 (2) submit to Congress an approved and rec18 ommended financial plan and budget developed by 

19 the Authority for the fiscal year under subsection 

20 (c)(1)(C). 

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

22 (1) PERMITTING POSTMASTER GENERAL TO

23 SUBMIT REVISIONS.—The Postmaster General may 

24 submit proposed revisions to the financial plan and 

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1 budget for the control period to the Authority at any 

2 time during the fiscal year. 

3 (2) PROCESS FOR REVIEW, APPROVAL, DIS4 APPROVAL, AND POSTMASTER GENERAL ACTION.— 

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

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

7 a financial plan and budget in the same manner as 

8 such procedures apply with respect to the original fi9 nancial plan and budget. 

10 (f) REQUIREMENTS OF THE AUTHORITY.— 

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

12 Authority to direct the Postal Service to take any 

13 action necessary and permitted by law to ensure that 

14 the approved financial plan and budget is fully im15 plemented over the course of each fiscal year and 

16 that the budgetary goals for expenses and revenues 

17 are achieved. 

18 (2) ADDITIONAL FIDUCIARY ACTIONS.—In addi19 tion to paragraph (1), the Authority shall take any 

20 additional actions it deems necessary and permitted 

21 by law to ensure the requirements of the financial 

22 plan and budget are achieved in practice so that the 

23 total revenue of the Postal Service exceeds its total 

24 operating expenses for the full fiscal year not later 

25 than fiscal year 2016 and each fiscal year thereafter. 

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1 Such actions may include accelerating the conversion 

2 of door delivery points to more cost-effective delivery 

3 methods, the consolidation of additional mail proc4 essing facilities, transition to a 2-day or 3-day First5 Class Mail delivery standard for the continental 

6 United States, and any other action consistent with 

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

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

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

10 expenses identified under that term in the Report on 

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

12 year 2012. 

13 SEC. 209. DISSOLUTION OF THE AUTHORITY; RECONSTITU14 TION OF THE BOARD OF GOVERNORS. 

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

16 the control period terminates (as determined under section 

17 202(b)(5))— 

18 (1) the Authority is dissolved; and 

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

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

21 amended by inserting after the section heading the 

22 following: 

23 ‘‘(a)(1) The exercise of the power of the Postal Serv24 ice shall be directed by a Board of Governors composed 

25 of 5 members appointed in accordance with this section. 

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1 The members, to be known as Governors, shall be ap2 pointed by the President, by and with the advice and con3 sent of the Senate. Not more than 3 of the Governors may 

4 be adherents of the same political party. The Governors 

5 shall elect a Chairman from among the individual Gov6 ernors. The Governors shall represent the public interest 

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

8 experience in the field of public administration, law, or ac9 counting, or on their demonstrated ability in managing or10 ganizations or corporations (in either the public or private 

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

12 Governors shall be chosen solely on the basis of their dem13 onstrated ability in managing organizations or corpora14 tions (in either the public or private sector) that employ 

15 at least 10,000 employees. The Governors shall not be rep16 resentatives of specific interests using the Postal Service, 

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

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

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

20 be reimbursed for travel and reasonable expenses incurred 

21 in attending meetings of the Board. Nothing in the pre22 ceding sentence shall be construed to limit the number of 

23 days of meetings each year to 42 days. 

24 ‘‘(2) In selecting the individuals described in para25 graph (1) for nomination for appointment to the position 

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1 of Governor, the President should consult with the Speak2 er of the House of Representatives, the minority leader 

3 of the House of Representatives, the majority leader of 

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

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

6 fiscal year, the Board of Governors shall submit an 

7 itemized report describing all travel and reimbursable 

8 business travel expenses paid to each Governor when per9 forming Board duties to the Committee on Oversight and 

10 Government Reform of the House of Representatives and 

11 the Committee on Homeland Security and Governmental 

12 Affairs of the Senate. The report submitted under this 

13 paragraph shall include a detailed justification for any 

14 travel or reimbursable business travel expense that devi15 ates from the Board’s travel and reimbursable business 

16 travel expense policies and guidelines under paragraph 

17 (1). 

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

19 years, except that— 

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

21 Governors pursuant to the Postal Reform Act of 

22 2013— 

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

24 Postal Service Financial Responsibility and 

25 Management Assistance Authority before the 

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1 termination of the control period (as defined in 

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

3 2013) shall become the initial members of the 

4 reconstituted Board of Governors; and 

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

6 individuals under clause (i) shall expire at the 

7 end of the term which would have applied with 

8 respect to that individual, if— 

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

10 had not terminated; and 

11 ‘‘(II) such individual had remained a 

12 member of the Postal Service Financial 

13 Responsibility and Management Assistance 

14 Authority; and 

15 ‘‘(B) the terms of the Governors first taking of16 fice after the initial Governors of the reconstituted 

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

18 as fixed by the President at the time of their ap19 pointment, except that each such term— 

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

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

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

23 not more than 1 Governor is thereafter sched24 uled to expire in any calendar year (determined 

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1 disregarding the term of an initial Governor ex2 piring as described in subparagraph (A)(ii)). 

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

4 the expiration of the term for which his predecessor was 

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

6 Governor may continue to serve after the expiration of his 

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

8 1 year. 

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

10 Governor. For purposes of the preceding sentence, there 

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

12 of— 

13 ‘‘(A) the Postal Service Financial Responsibility 

14 and Management Assistance Authority; or 

15 ‘‘(B) the Board of Governors, as constituted be16 fore the start of the control period.’’. 

17 (b) CONFORMING AMENDMENTS.— 

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

19 and inserting ‘‘5’’; and 

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

21 after ‘‘present, and’’ and inserting ‘‘an absolute ma22 jority of the Governors in office shall constitute a 

23 quorum for the transaction of business by the 

24 Board.’’. 

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1 Subtitle B—Other Matters 

2 SEC. 211. APPOINTMENT OF THE POSTAL SERVICE INSPEC3 TOR GENERAL. 

4 (a) APPOINTMENT OF INSPECTOR GENERAL OF THE

5 POSTAL SERVICE BY PRESIDENT.—The Inspector General 

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

7 (1) in section 8G— 

8 (A) in subsection (a)— 

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

10 Postal Regulatory Commission, and the 

11 United States Postal Service’’ and insert12 ing ‘‘and the Postal Regulatory Commis13 sion’’; 

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

15 ‘‘subsection (h)(1)’’ and inserting ‘‘sub16 section (g)(1)’’; and 

17 (iii) in paragraph (4)— 

18 (I) in the matter preceding sub19 paragraph (A), by striking ‘‘sub20 section (h)(1)’’ and inserting ‘‘sub21 section (g)(1)’’; 

22 (II) by striking subparagraph 

23 (B); and 

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1 (III) by redesignating subpara2 graphs (C) through (H) as subpara3 graphs (B) through (G), respectively; 

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

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

6 the’’ and inserting ‘‘The’’; 

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

8 (D) by redesignating subsections (g) and 

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

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

11 ‘‘SEC. 8M. SPECIAL PROVISIONS CONCERNING THE INSPEC12 TOR GENERAL OF THE UNITED STATES POST13 AL SERVICE. 

14 ‘‘(a) OVERSIGHT OF POSTAL INSPECTION SERV15 ICE.—In carrying out the duties and responsibilities speci16 fied in this Act, the Inspector General of the United States 

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

18 General’) shall have oversight responsibility for all activi19 ties of the Postal Inspection Service, including any inter20 nal investigation performed by the Postal Inspection Serv21 ice. The Chief Postal Inspector shall promptly report the 

22 significant activities being carried out by the Postal In23 spection Service to such Inspector General. 

24 ‘‘(b) SUPERVISION; ADDITIONAL DUTIES AND RE25 SPONSIBILITIES; REPORT.— 

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

2 ‘‘(A) AUDITS, INVESTIGATIONS, SUB3 POENAS.—The Inspector General shall be under 

4 the authority, direction, and control of the Gov5 ernors with respect to audits or investigations, 

6 or the issuance of subpoenas, which require ac7 cess to sensitive information concerning— 

8 ‘‘(i) ongoing civil or criminal inves9 tigations or proceedings; 

10 ‘‘(ii) undercover operations; 

11 ‘‘(iii) the identity of confidential 

12 sources, including protected witnesses; 

13 ‘‘(iv) intelligence or counterintel14 ligence matters; or 

15 ‘‘(v) other matters the disclosure of 

16 which would constitute a serious threat to 

17 national security. 

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

19 respect to the information described under sub20 paragraph (A), the Governors may prohibit the 

21 Inspector General from carrying out or com22 pleting any audit or investigation, or from 

23 issuing any subpoena, after such Inspector Gen24 eral has decided to initiate, carry out, or com25 plete such audit or investigation or to issue 

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1 such subpoena, if the Governors determine that 

2 such prohibition is necessary to prevent the dis3 closure of any information described under sub4 paragraph (A) or to prevent the significant im5 pairment to the national interests of the United 

6 States. 

7 ‘‘(C) NOTICE REQUIRED.—If the Gov8 ernors exercise any power under subparagraph 

9 (A) or (B), the Governors shall notify the In10 spector General in writing stating the reasons 

11 for such exercise. Within 30 days after receipt 

12 of any such notice, the Inspector General shall 

13 transmit a copy of such notice to the Com14 mittee on Homeland Security and Govern15 mental Affairs of the Senate and the Committee 

16 on Oversight and Government Reform of the 

17 House of Representatives, and to other appro18 priate committees or subcommittees of the Con19 gress. 

20 ‘‘(2) ADDITIONAL DUTIES AND RESPONSIBIL21 ITIES.—In carrying out the duties and responsibil22 ities specified in this Act, the Inspector General— 

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

24 such audits and investigations in the United 

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1 States Postal Service as the Inspector General 

2 considers appropriate; and 

3 ‘‘(B) shall give particular regard to the ac4 tivities of the Postal Inspection Service with a 

5 view toward avoiding duplication and insuring 

6 effective coordination and cooperation. 

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

8 to be transmitted by the Governors to the appro9 priate committees or subcommittees of the Congress 

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

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

12 the Committee on Homeland Security and Govern13 mental Affairs of the Senate and the Committee on 

14 Oversight and Government Reform of the House of 

15 Representatives. 

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

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

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

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

20 are authorized to be appropriated, out of the Postal Serv21 ice Fund, such sums as may be necessary for the Office 

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

23 (3) in section 12— 

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

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1 tablished under section 15301 of title 40, 

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

3 Cochairpersons of the Commissions established 

4 under section 15301 of title 40, United States 

5 Code; or the Board of Governors of the United 

6 States Postal Service’’; and 

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

8 Commissions established under section 15301 

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

10 ‘‘the Commissions established under section 

11 15301 of title 40, United States Code, or the 

12 United States Postal Service’’. 

13 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

14 Title 39, United States Code, is amended— 

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

16 202(e) of this title’’ and inserting ‘‘section 3 of the 

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

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

19 inserting ‘‘and section 3 of the Inspector General 

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

21 title’’; 

22 (3) in section 1003(a), by striking ‘‘8G’’ and in23 serting ‘‘8M’’; 

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

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

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

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

5 inserting ‘‘8M(d)’’; and 

6 (6) in section 2009 by striking ‘‘8G(f)’’ and in7 serting ‘‘8M(d)’’. 

8 (c) APPLICABILITY.— 

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

10 this section shall apply with respect to the first indi11 vidual appointed as Inspector General of the Postal 

12 Service after the date of enactment of this Act. 

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

14 Act may be construed to alter the authority or the 

15 length of the term of the individual serving as In16 spector General of the Postal Service on the date of 

17 enactment of this Act. 

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

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

20 amended to read as follows: 

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

22 power to remove the Postmaster General. His pay and 

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

24 (b) DEPUTY POSTMASTER GENERAL.—Section 

25 202(d) is amended to read as follows: 

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

2 power to remove the Deputy Postmaster General. His 

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

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

5 TITLE III—POSTAL SERVICE 

6 WORKFORCE 

7 SEC. 301. APPLICABILITY OF REDUCTION-IN-FORCE PROCE8 DURES. 

9 Section 1206 is amended by adding at the end the 

10 following: 

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

12 Postal Service and bargaining representatives recognized 

13 under section 1203, ratified after the date of enactment 

14 of this subsection, shall contain no provision restricting 

15 the applicability of reduction-in-force procedures under 

16 title 5 with respect to members of the applicable bar17 gaining unit. 

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

19 the Postal Service and bargaining representatives recog20 nized under section 1203, ratified after the date of enact21 ment of this subsection, includes reduction-in-force proce22 dures which can be applied in lieu of reduction-in-force 

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

24 discretion, apply with respect to members of the applicable 

25 bargaining unit— 

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

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

3 or 

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

5 title 5. 

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

7 of a dispute or impasse arising in the negotiation of a col8 lective-bargaining agreement (whether through binding ar9 bitration or otherwise) are invoked under this chapter, the 

10 award or other resolution reached under such procedures 

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

12 alternative procedures in lieu of, reduction-in-force proce13 dures under title 5.’’. 

14 SEC. 302. POSTAL SERVICE FEHBP AND FEGLI FUNDING RE15 QUIREMENTS. 

16 Section 1005(d)(1) is amended— 

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

18 83 and 84’’ and inserting ‘‘chapters 83, 84, 87, and 

19 89’’; and 

20 (2) by adding at the end the following: ‘‘Begin21 ning not later than January 1, 2020, the Postal 

22 Service shall withhold from pay and shall pay into 

23 the Employees Life Insurance Fund and the Em24 ployee Health Benefits Fund the amounts specified 

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1 in or determined under chapters 87 and 89, respec2 tively.’’. 

3 SEC. 303. REPEAL OF PROVISION RELATING TO OVERALL 

4 VALUE OF FRINGE BENEFITS. 

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

6 SEC. 304. MODIFICATIONS RELATING TO DETERMINATION 

7 OF PAY COMPARABILITY. 

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

9 101(c) is amended— 

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

11 of compensation’’; and 

12 (2) by inserting ‘‘entire’’ before ‘‘private sec13 tor’’. 

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

15 section 1003(a) is amended— 

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

17 and benefits’’ each place it appears; and 

18 (2) by inserting ‘‘entire’’ before ‘‘private sec19 tor’’. 

20 (c) CONSIDERATIONS.—For purposes of the amend21 ments made by this section, any determination of ‘‘total 

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

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

24 health benefits, retirement benefits, life insurance benefits, 

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1 leave, holidays, and continuity and stability of employ2 ment. 

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

4 Section 1207 is amended by striking subsections (c) 

5 and (d) and inserting the following: 

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

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

8 or if the parties decide upon arbitration before the expira9 tion of the 30-day period, an arbitration board shall be 

10 established consisting of 1 member selected by the Postal 

11 Service (from the list under paragraph (2)), 1 member se12 lected by the bargaining representative of the employees 

13 (from the list under paragraph (2)), and the mediator ap14 pointed under subsection (b). 

15 ‘‘(2) Upon receiving a request from either of the par16 ties referred to in paragraph (1), the Director of the Fed17 eral Mediation and Conciliation Service shall provide a list 

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

19 serve as neutral arbitrators. Each person listed shall be 

20 an arbitrator of nationwide reputation and professional 

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

22 and an individual whom the Director has determined to 

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

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

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

2 selection within 3 days. 

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

4 full and fair hearing, including an opportunity to present 

5 evidence in support of their claims, and an opportunity 

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

7 representative as they may elect. The hearing shall be con8 cluded no more than 40 days after the arbitration board 

9 is established. 

10 ‘‘(4) No more than 7 days after the hearing is con11 cluded, each party shall submit to the arbitration board 

12 2 offer packages, each of which packages shall specify the 

13 terms of a proposed final agreement. 

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

15 the last day allowable for the submission of an offer pack16 age under paragraph (4), each party shall submit to the 

17 arbitration board a single, final offer package specifying 

18 the terms of a proposed final agreement. 

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

20 the final offer packages under paragraph (5), the arbitra21 tion board shall select 1 of those packages as its tentative 

22 award, subject to paragraph (7). 

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

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

25 of the following: 

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

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

3 ‘‘(ii) The offer takes into account the current fi4 nancial condition of the Postal Service. 

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

6 financial condition of the Postal Service. 

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

8 on clear and convincing evidence presented during the 

9 hearing under paragraph (3), that neither final offer pack10 age satisfies the conditions set forth in subparagraph (A), 

11 the board shall by majority vote— 

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

13 conditions; and 

14 ‘‘(II) modify the package so selected to the min15 imum extent necessary to satisfy such conditions. 

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

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

18 7 days to render its tentative award under this subpara19 graph. 

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

21 to replace the tentative award selected under paragraph 

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

23 If no agreement on a substitute award is reached within 

24 10 days after the date on which the tentative award is 

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1 so selected or rendered, the tentative award shall become 

2 final. 

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

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

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

6 the arbitration board, by a unanimous vote taken within 

7 3 days after the date on which the agreement on the sub8 stitute award is reached under paragraph (8), determines 

9 that the substitute award does not satisfy such conditions, 

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

11 a vote, as described in the preceding sentence, the sub12 stitute agreement shall become final. 

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

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

15 paragraph, the arbitration board shall develop and issue 

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

17 ‘‘(11) A final award or agreement under this sub18 section shall be conclusive and binding upon the parties. 

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

20 shall be shared equally by the Postal Service and the bar21 gaining representative. 

22 ‘‘(d) In the case of a bargaining unit whose recog23 nized collective-bargaining representative does not have an 

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

25 reach agreement within 90 days after the commencement 

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1 of collective bargaining, a mediator shall be appointed in 

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

3 the parties have previously agreed to another procedure 

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

5 fail to reach agreement within 180 days after the com6 mencement of collective bargaining, an arbitration board 

7 shall be established to provide conclusive and binding arbi8 tration in accordance with the provisions of subsection 

9 (c).’’. 

10 SEC. 306. POSTAL SERVICE WORKERS’ COMPENSATION RE11 FORM. 

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

13 triggering date of this section (as defined in subsection 

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

15 and inserting the following: 

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

17 ‘‘(A) the term ‘postal employee’ means an offi18 cer or employee of the Postal Service or the former 

19 Post Office Department; and 

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

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

22 Security Act. 

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

24 a program for the payment of benefits for the disability 

25 or death of an individual resulting from personal injury 

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1 sustained while in the performance of such individual’s du2 ties as a postal employee. 

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

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

5 consultation with appropriate employee representa6 tives; 

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

8 to a disabled postal employee to be augmented on 

9 the basis of number of dependents; and 

10 ‘‘(C) shall include provisions for automatic 

11 transition, upon attainment of retirement age, to 

12 benefits involving, coordinated with, or otherwise de13 termined by reference to retirement benefits.’’. 

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

15 after the triggering date— 

16 (1) the Office of Personnel Management shall 

17 submit to the appropriate committees of Congress 

18 recommendations for any legislation or administra19 tive actions which the Office considers necessary to 

20 carry out the purposes of this section with respect 

21 to any matter within the jurisdiction of the Office, 

22 including any amendments which may be necessary 

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

24 States Code; and 

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1 (2) the Postal Service shall submit to the ap2 propriate committees of Congress recommendations 

3 for any legislation which the Postal Service considers 

4 necessary to carry out the purposes of this section 

5 with respect to any matter within the jurisdiction of 

6 the Postal Service. 

7 (c) NOTIFICATION REQUIREMENTS.—Not later than 

8 9 months after the triggering date, the Postal Service shall 

9 submit to the appropriate committees of Congress and 

10 shall cause to be published in the Federal Register a de11 scription of the program proposed by the Postal Service 

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

13 United States Code, as amended by subsection (a). In14 cluded in the notification provided under the preceding 

15 sentence shall be— 

16 (1) a detailed statement of the benefits to be of17 fered and the persons eligible to receive those bene18 fits; 

19 (2) provisions to ensure an orderly transition to 

20 the system proposed to be implemented; and 

21 (3) such other information as the Postal Service 

22 considers appropriate. 

23 (d) COMMENCEMENT DATE.—The program under 

24 section 1005(c) of title 39, United States Code, as amend25 ed by subsection (a)— 

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

2 Postmaster General shall determine, except that 

3 such date shall be a date occurring— 

4 (A) not earlier than 12 months after the 

5 triggering date; and 

6 (B) not later than 24 months after the 

7 triggering date; and 

8 (2) shall apply with respect to amounts payable 

9 for periods beginning on or after the date on which 

10 the program begins to operate, irrespective of date 

11 of the disability or death to which such amounts re12 late. 

13 (e) CONDITION PRECEDENT.— 

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

15 this section shall not become effective until the date 

16 on which the Postal Service Financial Responsibility 

17 and Management Assistance Authority (established 

18 under section 202)— 

19 (A) makes a written determination that 

20 conditions warrant their implementation; and 

21 (B) submits such written determination to 

22 the Postal Service, the Office of Personnel 

23 Management, and the appropriate committees 

24 of Congress. 

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

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

3 ‘‘triggering date’’ means the date described in para4 graph (1). 

5 (f) APPROPRIATE COMMITTEES OF CONGRESS DE6 FINED.—For purposes of this section, the term ‘‘appro7 priate committees of Congress’’ means— 

8 (1) the Committee on Oversight and Govern9 ment Reform of the House of Representatives; and 

10 (2) the Committee on Homeland Security and 

11 Governmental Affairs of the Senate. 

12 SEC. 307. REPORTING REQUIREMENT. 

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

14 at the end the following: 

15 ‘‘§ 1012. Official time reporting 

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

17 the Postal Service, in consultation with the Office of Man18 agement and Budget, shall submit to each House of Con19 gress a report on the operation of this section during the 

20 fiscal year last ending before the start of such calendar 

21 year. 

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

23 subsection shall include, with respect to the fiscal year de24 scribed in subsection (a), at least the following informa25 tion: 

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

2 to employees. 

3 ‘‘(2) The average amount of official time ex4 pended per bargaining unit employee. 

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

6 for which official time was granted, and the impact 

7 which the granting of such official time for such ac8 tivities or purposes had on agency operations. 

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

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

11 number who were not engaged in any activities or 

12 purposes except activities or purposes involving the 

13 use of official time. 

14 ‘‘(5) The total amount of compensation (includ15 ing fringe benefits) afforded to employees in connec16 tion with activities or purposes for which they were 

17 granted official time. 

18 ‘‘(c) All information included in a report by the Post19 al Service under this subsection with respect to a fiscal 

20 year— 

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

22 and managerial organization recognized under sec23 tion 1004 and labor organization recognized under 

24 section 1203 and for all organizations together; and 

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

2 information (submitted by the Postal Service in its 

3 report under this subsection) for the fiscal year be4 fore the fiscal year to which such report pertains, to5 gether with appropriate comparisons and analyses. 

6 ‘‘(d) For purposes of this subsection, the term ‘offi7 cial time’ means any period of time, regardless of Postal 

8 Service nomenclature— 

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

10 under this chapter or chapter 12 (including a collec11 tive-bargaining agreement entered into under chap12 ter 12) to perform representational or consultative 

13 functions; and 

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

15 be in a duty status.’’. 

16 (b) APPLICABILITY.—The amendment made by sub17 section (a) shall be effective beginning with the report 

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

19 required to be submitted by the Postal Service to each 

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

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

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

23 for chapter 10 is amended by adding at the end the fol24 lowing: 

‘‘1012. Official time reporting.’’. 

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1 TITLE IV—POSTAL SERVICE 

2 REVENUE 

3 SEC. 401. ADEQUACY, EFFICIENCY, AND FAIRNESS OF POST4 AL RATES. 

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

6 (1) in paragraph (1)— 

7 (A) by redesignating subparagraphs (B) 

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

9 respectively; and 

10 (B) by inserting after subparagraph (A) 

11 the following: 

12 ‘‘(B) subject to the limitation under sub13 paragraph (A), establish postal rates to fulfill 

14 the requirement that each market-dominant 

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

16 for an experimental product or service) bear the 

17 direct and indirect postal costs attributable to 

18 such class, product, or type through reliably 

19 identified causal relationships plus that portion 

20 of all other costs of the Postal Service reason21 ably assignable to such class, product, or type; 

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

23 of functionally equivalent agreements between 

24 the Postal Service and users of the mail that— 

25 ‘‘(i) cover attributable cost; 

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1 ‘‘(ii) improve the net financial position 

2 of the Postal Service; and 

3 ‘‘(iii) do not cause unreasonable dis4 ruption in the marketplace, consistent with 

5 subsection (c)(10)(B); 

6 for purposes of this subparagraph, a group of 

7 functionally equivalent agreements shall consist 

8 of all service agreements that are functionally 

9 equivalent to each other within the same mar10 ket-dominant product, but shall not include 

11 agreements within an experimental product;’’; 

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

13 (c),’’ and inserting ‘‘subsection (c) and the provi14 sions of title IV of the Postal Reform Act of 2013,’’; 

15 and 

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

17 ‘‘(4) PRC STUDY.— 

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

19 the end of the first fiscal year beginning after 

20 the date of enactment of the Postal Reform Act 

21 of 2013, the Postal Regulatory Commission 

22 shall complete a study to determine the quan23 titative impact of the Postal Service’s excess ca24 pacity on the direct and indirect postal costs at25 tributable to any class that bears less than 100 

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1 percent of its costs attributable (as described in 

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

3 annual determination of the Postal Regulatory 

4 Commission under section 3653. 

5 ‘‘(B) REQUIREMENTS.—The study re6 quired under subparagraph (A) shall— 

7 ‘‘(i) be conducted pursuant to regula8 tions that the Postal Regulatory Commis9 sion shall prescribe within 90 days after 

10 the date of enactment of the Postal Re11 form Act of 2013, taking into account ex12 isting regulations for proceedings to im13 prove the quality, accuracy, or complete14 ness of ratemaking information under sec15 tion 3652(e)(2) in effect on such date; and 

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

17 of mail bears less than 100 percent of its 

18 costs attributable (as described in para19 graph (1)(B)), be updated annually by the 

20 Postal Service and included in its annual 

21 report to the Commission under section 

22 3652, using such methodologies as the 

23 Commission shall by regulation prescribe. 

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

25 than 12 months and not later than 18 months after 

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1 the date on which the first study described in para2 graph (4) is completed, and at least once in each 

3 subsequent 12-month period, the Postal Service shall 

4 establish postal rates for each loss-making class of 

5 mail to eliminate such losses (other than those 

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

7 exhausting all unused rate authority as well as maxi8 mizing incentives to reduce costs and increase effi9 ciency, subject to the following: 

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

11 this paragraph with respect to a class of mail, 

12 means a class of mail that bears less than 100 

13 percent of its costs attributable (as described in 

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

15 annual determination of the Postal Regulatory 

16 Commission under section 3653, adjusted to ac17 count for the quantitative effect of excess ca18 pacity on the costs attributable of the class. 

19 ‘‘(B) Unused rate authority shall be annu20 ally increased by 2 percentage points for each 

21 class of mail that bears less than 90 percent of 

22 its costs attributable (as described in paragraph 

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

24 determination of the Postal Regulatory Com25 mission under section 3653, adjusted to account 

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1 for the quantitative effect of excess capacity on 

2 the costs attributable of the class, with such in3 crease in unused rate authority to take effect 

4 30 days after the date that the Commission 

5 issues such determination.’’. 

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

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

8 (a)(2)) the following: 

9 ‘‘(6) EXCEPTION.—The requirements of para10 graph (1)(B) shall not apply to a market-dominant 

11 product for which a substantial portion of the prod12 uct’s mail volume consists of inbound international 

13 mail with terminal dues rates determined by the 

14 Universal Postal Union (and not by bilateral agree15 ments or other arrangements).’’. 

16 SEC. 402. REPEAL OF RATE PREFERENCES FOR QUALIFIED 

17 POLITICAL COMMITTEES. 

18 Subsection (e) of section 3626 is repealed. 

19 SEC. 403. USE OF NEGOTIATED SERVICE AGREEMENTS. 

20 (a) STREAMLINED REVIEW OF QUALIFYING SERVICE

21 AGREEMENTS FOR COMPETITIVE PRODUCTS.—Section 

22 3633 is amended by adding at the end the following: 

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

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

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1 latory Commission shall promulgate (and may from time 

2 to time thereafter revise) regulations for streamlined 

3 after-the-fact review of newly proposed agreements be4 tween the Postal Service and users of the mail that provide 

5 rates not of general applicability for competitive products. 

6 Streamlined review shall apply only if agreements are 

7 functionally equivalent to existing agreements that have 

8 collectively covered attributable costs and collectively im9 proved the net financial position of the Postal Service. The 

10 regulations issued under this subsection shall provide that 

11 streamlined review shall be concluded not later than 5 

12 business days after the date on which the agreement is 

13 filed with the Commission and shall be limited to approval 

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

15 Commission’s determination of its functional equivalence. 

16 Agreements not approved may be resubmitted without 

17 prejudice under section 3632.’’. 

18 (b) SUBMISSION OF SERVICE AGREEMENTS FOR

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

20 (1) by redesignating paragraph (4) as para21 graph (5); and 

22 (2) by inserting after paragraph (3) the fol23 lowing: 

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

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1 petitive products that the Postmaster General con2 siders eligible for streamlined review under section 

3 3633(c), the Postmaster General shall cause the 

4 agreement to be filed with the Postal Regulatory 

5 Commission by a date that is on or before the effec6 tive date of any new rate established under the 

7 agreement, as the Postmaster General considers ap8 propriate.’’. 

9 (c) TRANSPARENCY AND ACCOUNTABILITY FOR

10 SERVICE AGREEMENTS.— 

11 (1) CERTAIN INFORMATION REQUIRED TO BE

12 INCLUDED IN DETERMINATIONS OF COMPLIANCE.— 

13 Section 3653 is amended— 

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

15 and (e) as subsections (d), (e), and (f), respec16 tively; and 

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

18 following: 

19 ‘‘(c) WRITTEN DETERMINATION.—Each annual writ20 ten determination of the Commission under this section 

21 shall include the following: 

22 ‘‘(1) REQUIREMENTS.—For each group of func23 tionally equivalent agreements between the Postal 

24 Service and users of the mail, whether such group 

25 fulfilled requirements to— 

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1 ‘‘(A) cover costs attributable; and 

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

3 the Postal Service. 

4 ‘‘(2) NONCOMPLIANCE.—Any group of function5 ally equivalent agreements not meeting subpara6 graphs (A) and (B) of paragraph (1) shall be deter7 mined to be in noncompliance under this subsection. 

8 ‘‘(3) DEFINITION.—For purposes of this sub9 section, a group of functionally equivalent agree10 ments shall consist of 1 or more service agreements 

11 that are functionally equivalent to each other within 

12 the same market-dominant or competitive product, 

13 but shall not include agreements within an experi14 mental product.’’. 

15 (2) CRITERIA FOR SPECIAL CLASSIFICATIONS

16 RELATING TO MARKET-DOMINANT PRODUCTS.— 

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

18 amended by striking subparagraphs (A) and 

19 (B) and inserting the following: 

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

21 the Postal Service by reducing Postal Service 

22 costs or increasing the overall contribution to 

23 the institutional costs of the Postal Service; and 

24 ‘‘(B) do not cause— 

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1 ‘‘(i) unfair competitive advantage for 

2 the Postal Service or postal users eligible 

3 for the agreements; or 

4 ‘‘(ii) unreasonable disruption to the 

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

6 (B) APPLICABILITY.—The amendment 

7 made by subparagraph (A) shall take effect on 

8 the date of enactment of this Act and shall 

9 apply with respect to an agreement that— 

10 (i) is filed with the Commission on or 

11 after such date of enactment; or 

12 (ii) is remanded to the Commission by 

13 a court on or after such date of enactment. 

14 SEC. 404. NONPOSTAL SERVICES. 

15 (a) NONPOSTAL SERVICES.— 

16 (1) IN GENERAL.—Part IV is amended by add17 ing after chapter 36 the following: 

18 ‘‘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. 

19 ‘‘§ 3701. Purpose 

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

21 to increase its net revenues through specific nonpostal 

22 products and services that are expressly authorized by this 

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1 chapter. Postal Service revenues and expenses under this 

2 chapter shall be funded through the Postal Service Fund. 

3 ‘‘§ 3702. Definitions 

4 ‘‘As used in this chapter— 

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

6 services offered by the Postal Service that are ex7 pressly authorized by this chapter and are not postal 

8 products or services; 

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

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

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

12 ‘‘§ 3703. Postal Service advertising program 

13 ‘‘Notwithstanding any other provision of this title, 

14 the Postal Service may establish and manage a program 

15 that allows entities to advertise at Postal Service facilities, 

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

17 Such a program shall be subject to the following require18 ments: 

19 ‘‘(1) The Postal Service shall at all times en20 sure advertising it permits is consistent with the in21 tegrity of the Postal Service. 

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

23 cover a minimum of 200 percent of its attributable 

24 costs in each year. 

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1 ‘‘(3) All advertising expenditures and revenues 

2 are subject to annual compliance determination (in3 cluding remedies for noncompliance) applicable to 

4 nonpostal products. 

5 ‘‘(4) Total advertising expenditures and reve6 nues must be disclosed in Postal Service annual re7 ports. 

8 ‘‘§ 3704. Postal Service program for State govern9 ments 

10 ‘‘(a) IN GENERAL.—Notwithstanding any other pro11 vision of this title, the Postal Service may establish a pro12 gram to provide services for agencies of State governments 

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

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

15 such as by lowering the cost or raising the quality 

16 of such services or by making such services more ac17 cessible; 

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

19 value of postal services, including— 

20 ‘‘(A) the cost and efficiency of postal serv21 ices; and 

22 ‘‘(B) unreasonable access to postal retail 

23 service, such as customer waiting time and ac24 cess to parking; and 

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1 ‘‘(3) provide a reasonable contribution to the in2 stitutional costs of the Postal Service, defined as re3 imbursement for each service and covering at least 

4 150 percent of the attributable costs of such service 

5 in each year. 

6 ‘‘(b) PUBLIC NOTICE.—At least 90 days before offer7 ing any services under this section, the Postal Service shall 

8 make each agreement with State agencies readily available 

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

10 that describes the specific services to be provided, the en11 hanced value to the public, terms of reimbursement, the 

12 estimated annual reimbursement to the Postal Service, 

13 and the estimated percentage of attributable Postal Serv14 ice costs that will be covered by reimbursement (with doc15 umentation to support these estimates). The Postal Serv16 ice shall solicit public comment for at least 30 days, with 

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

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

19 offering such services. 

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

21 Postal Service shall approve the provision of services 

under this section by a recorded vote, with at least 2 22 ⁄3 of 

23 its membership voting for approval, with the vote publicly 

24 disclosed on the Postal Service Web site. 

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

2 a given agency provided under this section shall be classi3 fied as a separate activity subject to the requirements of 

4 annual reporting under section 3706. Such reporting shall 

5 also include information on the quality of service and re6 lated information to demonstrate that it satisfied the re7 quirements of subsection (a). Information provided under 

8 this section shall be according to requirements that the 

9 Postal Regulatory Commission shall by regulation pre10 scribe. 

11 ‘‘(e) DEFINITIONS.—For the purpose of this sec12 tion— 

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

14 Columbia, the Commonwealth of Puerto Rico, the 

15 United States Virgin Islands, Guam, American 

16 Samoa, the Commonwealth of the Northern Mariana 

17 Islands, and any other territory or possession of the 

18 United States; and 

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

20 geographical sense, means the States. 

21 ‘‘§ 3705. Postal Service program for other government 

22 agencies 

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

24 a program to provide property and services for other gov25 ernment agencies within the meaning of section 411, but 

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1 only if such program provides a reasonable contribution 

2 to the institutional costs of the Postal Service, defined as 

3 reimbursement by each agency that covers at least 100 

4 percent of the attributable costs of all property and service 

5 provided by the Postal Service in each year to such agency. 

6 ‘‘(b) CLASSIFICATION OF SERVICES.—For each agen7 cy, all property and services provided by the Postal Service 

8 under this section shall be classified as a separate activity 

9 subject to the requirements of annual reporting under sec10 tion 3706. Information provided under this section shall 

11 be according to requirements that the Postal Regulatory 

12 Commission shall by regulation prescribe. 

13 ‘‘§ 3706. Transparency and accountability for non14 postal services 

15 ‘‘(a) ANNUAL REPORTS TO THE COMMISSION.— 

16 ‘‘(1) IN GENERAL.—The Postal Service shall, 

17 no later than 90 days after the end of each year, 

18 prepare and submit to the Postal Regulatory Com19 mission a report (together with such nonpublic 

20 annex to the report as the Commission may require 

21 under subsection (b)) which shall analyze costs, reve22 nues, rates, and quality of service for this chapter, 

23 using such methodologies as the Commission shall 

24 by regulation prescribe, and in sufficient detail to 

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1 demonstrate compliance with all applicable require2 ments of this chapter. 

3 ‘‘(2) AUDITS.—The Inspector General shall reg4 ularly audit the data collection systems and proce5 dures utilized in collecting information and pre6 paring such report. The results of any such audit 

7 shall be submitted to the Postal Service and the 

8 Postal Regulatory Commission. 

9 ‘‘(b) SUPPORTING MATTER.—The Postal Regulatory 

10 Commission shall have access, in accordance with such 

11 regulations as the Commission shall prescribe, to the 

12 working papers and any other supporting matter of the 

13 Postal Service and the Inspector General in connection 

14 with any information submitted under this section. 

15 ‘‘(c) CONTENT AND FORM OF REPORTS.— 

16 ‘‘(1) IN GENERAL.—The Postal Regulatory 

17 Commission shall, by regulation, prescribe the con18 tent and form of the public reports (and any non19 public annex and supporting matter relating to the 

20 report) to be provided by the Postal Service under 

21 this section. Such reports shall be included with the 

22 annual compliance determination reported under sec23 tion 3653. In carrying out this subsection, the Com24 mission shall give due consideration to— 

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1 ‘‘(A) providing the public with timely, ade2 quate information to assess compliance; 

3 ‘‘(B) avoiding unnecessary or unwarranted 

4 administrative effort and expense on the part of 

5 the Postal Service; and 

6 ‘‘(C) protecting the confidentiality of infor7 mation that is commercially sensitive or is ex8 empt from public disclosure under section 

9 552(b) of title 5. 

10 ‘‘(2) REVISED REQUIREMENTS.—The Commis11 sion may, on its own motion or on request of any 

12 interested party, initiate proceedings (to be con13 ducted in accordance with regulations that the Com14 mission shall prescribe) to improve the quality, accu15 racy, or completeness of Postal Service data required 

16 by the Commission under this subsection whenever 

17 it shall appear that— 

18 ‘‘(A) the attribution of costs or revenues to 

19 property or services under this chapter has be20 come significantly inaccurate or can be signifi21 cantly improved; 

22 ‘‘(B) the quality of service data provided to 

23 the Commission for annual reports under this 

24 chapter has become significantly inaccurate or 

25 can be significantly improved; or 

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1 ‘‘(C) such revisions are, in the judgment of 

2 the Commission, otherwise necessitated by the 

3 public interest. 

4 ‘‘(d) CONFIDENTIAL INFORMATION.— 

5 ‘‘(1) IN GENERAL.—If the Postal Service deter6 mines that any document or portion of a document, 

7 or other matter, which it provides to the Postal Reg8 ulatory Commission in a nonpublic annex under this 

9 section contains information which is described in 

10 section 410(c) of this title, or exempt from public 

11 disclosure under section 552(b) of title 5, the Postal 

12 Service shall, at the time of providing such matter 

13 to the Commission, notify the Commission of its de14 termination, in writing, and describe with particu15 larity the documents (or portions of documents) or 

16 other matter for which confidentiality is sought and 

17 the reasons therefor. 

18 ‘‘(2) TREATMENT.—Any information or other 

19 matter described in paragraph (1) to which the 

20 Commission gains access under this section shall be 

21 subject to paragraphs (2) and (3) of section 504(g) 

22 in the same way as if the Commission had received 

23 notification with respect to such matter under sec24 tion 504(g)(1). 

25 ‘‘(e) ANNUAL COMPLIANCE DETERMINATION.— 

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1 ‘‘(1) OPPORTUNITY FOR PUBLIC COMMENT.— 

2 After receiving the reports required under subsection 

3 (a) for any year, the Postal Regulatory Commission 

4 shall promptly provide an opportunity for comment 

5 on such reports by any interested party, and an offi6 cer of the Commission who shall be required to rep7 resent the interests of the general public. 

8 ‘‘(2) DETERMINATION OF COMPLIANCE OR NON9 COMPLIANCE.—Not later than 90 days after receiv10 ing the submissions required under subsection (a) 

11 with respect to a year, the Postal Regulatory Com12 mission shall make a written determination as to 

13 whether any nonpostal activities during such year 

14 were or were not in compliance with applicable pro15 visions of this chapter (or regulations promulgated 

16 under this chapter). The Postal Regulatory Commis17 sion shall issue a determination of noncompliance if 

18 the requirements for coverage of attributable costs 

19 are not met. If, with respect to a year, no instance 

20 of noncompliance is found to have occurred in such 

21 year, the written determination shall be to that ef22 fect. 

23 ‘‘(3) NONCOMPLIANCE.—If, for a year, a timely 

24 written determination of noncompliance is made 

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1 sion shall take appropriate action. If the require2 ments for coverage of attributable costs specified by 

3 this chapter are not met, the Commission shall, 

4 within 60 days after the determination, prescribe re5 medial action to restore compliance as soon as prac6 ticable, which shall also include the full restoration 

7 of revenue shortfalls during the following fiscal year. 

8 The Commission may order the Postal Service to 

9 discontinue a nonpostal service under section 3703 

10 or 3704 that persistently fails to meet cost coverage 

11 requirements. 

12 ‘‘(4) DELIBERATE NONCOMPLIANCE.—In addi13 tion, in cases of deliberate noncompliance by the 

14 Postal Service with the requirements of this chapter, 

15 the Postal Regulatory Commission may order, based 

16 on the nature, circumstances, extent, and serious17 ness of the noncompliance, a fine (in the amount 

18 specified by the Commission in its order) for each 

19 incidence of such noncompliance. All receipts from 

20 fines imposed under this subsection shall be depos21 ited in the general fund of the Treasury of the 

22 United States.’’. 

23 (2) CLERICAL AMENDMENT.—The table of 

24 chapters at the beginning of part IV is amended by 

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1 adding after the item relating to chapter 36 the fol2 lowing: 

‘‘37. Nonpostal Services .................................................................. 3701’’. 

3 (b) CONFORMING AMENDMENTS.— 

4 (1) SECTION 404(e).—Section 404(e) is amend5 ed by adding at the end the following: 

6 ‘‘(6) Licensing which, before the date of enactment 

7 of this paragraph, has been authorized by the Postal Reg8 ulatory Commission for continuation as a nonpostal serv9 ice may not be used for any purpose other than— 

10 ‘‘(A) to continue to provide licensed mailing and 

11 shipping supplies offered as of June 23, 2011; or 

12 ‘‘(B) to license other goods, products, or serv13 ices, the primary purpose of which is to promote and 

14 enhance the image or brand of the Postal Service. 

15 ‘‘(7) Nothing in this section shall be considered to 

16 prevent the Postal Service from establishing nonpostal 

17 products and services that are expressly authorized by 

18 chapter 37.’’. 

19 (2) SECTION 409.—Section 409(f) is amended 

20 by inserting at the end the following: 

21 ‘‘(7) The provisions of this section shall not apply to 

22 any outdoor advertising structure or sign constructed, in23 stalled, operated, or maintained on a facility or asset 

24 owned or operated by the Postal Service except in a juris25 diction in which posting of off premise advertising signs 

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1 for all persons, entities, governmental agencies, and others 

2 is prohibited by law.’’. 

3 (3) SECTION 411.—The last sentence of section 

4 411 is amended by striking ‘‘including 

5 reimbursability’’ and inserting ‘‘including 

6 reimbursability within the limitations of chapter 

7 37’’. 

8 (4) TREATMENT OF EXISTING NONPOSTAL

9 SERVICES.—All individual nonpostal services, pro10 vided directly or through licensing, that are contin11 ued pursuant to section 404(e) of title 39, United 

12 States Code, shall be considered to be expressly au13 thorized by chapter 37 of such title (as added by 

14 subsection (a)(1)) and shall be subject to the re15 quirements of such chapter. 

16 SEC. 405. ALASKA BYPASS MAIL MODERNIZATION. 

17 (a) FAIR COMPETITION FOR ALASKA BYPASS

18 MAIL.— 

19 (1) IN GENERAL.—Section 5402 is amended— 

20 (A) in subsection (g)(4)— 

21 (i) in subparagraph (A), by striking 

22 ‘‘existing’’; 

23 (ii) in subparagraph (B)— 

24 (I) in the matter preceding clause 

25 (i), by striking ‘‘an existing mainline 

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1 carrier’’ and inserting ‘‘a carrier per2 mitted under subparagraph (A)’’; and 

3 (II) in clause (i), by striking ‘‘ex4 isting mainline carriers’’ and inserting 

5 ‘‘mainline carriers providing service’’; 

6 and 

7 (iii) in subparagraph (C), by striking 

8 ‘‘existing’’; 

9 (B) in subsection (g)(5)— 

10 (i) in subparagraph (A), by striking 

11 ‘‘new’’; 

12 (ii) in subparagraph (B), by striking 

13 ‘‘new’’; and 

14 (iii) in subparagraph (C), by striking 

15 ‘‘new’’; 

16 (C) in subsection (h)(3)(A), by striking 

17 ‘‘new or existing’’; and 

18 (D) in subsection (i)(3), by striking ‘‘new’’. 

19 (2) CONFORMING AMENDMENT.—Paragraphs 

20 (12) and (15) of section 5402(a) are repealed. 

21 (b) REDUCTION OF ALASKA BYPASS MAIL SUB22 SIDY.— 

23 (1) IN GENERAL.—Chapter 54 is amended by 

24 adding at the end the following: 

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1 ‘‘§ 5404. Reduction of Alaska bypass mail subsidy 

2 ‘‘(a) COMPETITIVE PRODUCT CLASSIFICATION.— 

3 ‘‘(1) IN GENERAL.—Except as provided in this 

4 section, Alaska bypass mail service under section 

5 5402 shall be treated as a separate competitive 

6 product for all purposes. 

7 ‘‘(2) TRANSFER PROHIBITED.—No part of 

8 Alaska bypass mail service may be transferred to the 

9 market-dominant category of mail under section 

10 3642. 

11 ‘‘(3) LIMITATIONS.—Alaska bypass mail service 

12 shall not be treated as a competitive product for 

13 purposes of the implementation of sections 3633(a) 

14 and 3634. 

15 ‘‘(b) MINIMUM COST COVERAGE.— 

16 ‘‘(1) IN GENERAL.—The Postal Service shall es17 tablish and maintain rates and fees for matter sent 

18 by Alaska bypass mail service— 

19 ‘‘(A) for fiscal year 2014, that cover at 

20 least 30 percent of the costs attributable to 

21 Alaska bypass mail service in that fiscal year; 

22 ‘‘(B) for fiscal year 2015, that cover at 

23 least 35 percent of the costs attributable to 

24 Alaska bypass mail service in that fiscal year; 

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1 ‘‘(C) for fiscal year 2016, that cover at 

2 least 40 percent of the costs attributable to 

3 Alaska bypass mail service in that fiscal year; 

4 ‘‘(D) for fiscal year 2017, that cover at 

5 least 45 percent of the costs attributable to 

6 Alaska bypass mail service in that fiscal year; 

7 and 

8 ‘‘(E) for fiscal year 2018 and for each fis9 cal year thereafter, that cover at least 50 per10 cent of the costs attributable to Alaska bypass 

11 mail service in the applicable fiscal year. 

12 ‘‘(2) COSTS ATTRIBUTABLE.—The costs attrib13 utable to Alaska bypass mail service for a fiscal year 

14 shall include all the direct and indirect costs of Alas15 ka bypass mail service during that fiscal year that 

16 are attributable to that service through reliably iden17 tified causal relationships. 

18 ‘‘(3) INSTITUTIONAL COSTS.—Costs that can be 

19 attributed to Alaska bypass mail service may not be 

20 classified as institutional costs of the Postal Service. 

21 ‘‘(c) COMPLIANCE.— 

22 ‘‘(1) ANNUAL REVIEW.—At least once each fis23 cal year, the Postal Regulatory Commission shall de24 termine whether the Postal Service is in compliance 

25 with the requirements under subsection (b). 

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1 ‘‘(2) REMEDIAL ACTIONS.—If, under paragraph 

2 (1), the Postal Regulatory Commission determines 

3 that the Postal Service has not complied with the re4 quirements under subsection (b) with respect to a 

5 fiscal year, the Commission shall prescribe, not later 

6 than 60 days after making such determination, ac7 tions to ensure— 

8 ‘‘(A) the establishment and maintenance of 

9 rates and fees for Alaska bypass mail service 

10 that recover any costs required to have been 

11 covered for such fiscal year under subsection 

12 (b), but that were not covered, by the date that 

13 is not later than the last day of the fiscal year 

14 that follows such fiscal year; and 

15 ‘‘(B) compliance with the requirements 

16 under subsection (b) in subsequent fiscal years. 

17 ‘‘(3) LIMITATION.—The Postal Regulatory 

18 Commission may not order the Postal Service to dis19 continue Alaska bypass mail service. 

20 ‘‘(4) REGULATIONS.—Not later than 90 days 

21 after the date of enactment of this subsection, the 

22 Postal Regulatory Commission shall issue regula23 tions to implement this subsection.’’. 

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1 (2) CLERICAL AMENDMENT.—The table of sec2 tions for chapter 54 is amended by adding at the 

3 end the following: 

‘‘5404. Reduction of Alaska bypass mail subsidy.’’. 

4 SEC. 406. APPROPRIATIONS MODERNIZATION. 

5 (a) IN GENERAL.—Section 2401 is amended by strik6 ing subsections (b) through (d). 

7 (b) EFFECTIVE DATE.—The amendment made by 

8 subsection (a) shall be effective with respect to fiscal years 

9 beginning after the date of enactment of this Act. 

10 (c) CONFORMING AMENDMENT.—(1) Section 3627 is 

11 repealed. 

12 (2) The table of sections for chapter 36 is amended by 

13 striking the item relating to section 3627. 

14 SEC. 407. ENHANCED PRODUCT INNOVATION. 

15 (a) DOLLAR-AMOUNT LIMITATION RELATING TO

16 MARKET TESTS OF EXPERIMENTAL PRODUCTS.—Section 

17 3641(e)(1) is amended by striking ‘‘$10,000,000’’ and in18 serting ‘‘$50,000,000’’. 

19 (b) DOLLAR-AMOUNT LIMITATION RELATING TO EX20 EMPTION AUTHORITY.—Section 3641(e)(2) is amended by 

21 striking ‘‘$50,000,000’’ and inserting ‘‘$100,000,000’’. 

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1 TITLE V—POSTAL SERVICE 

2 FINANCE 

3 SEC. 501. TREATMENT OF POSTAL SERVICE 

4 POSTEMPLOYMENT BENEFIT FUNDING PRO5 JECTED SURPLUSES. 

6 Section 8423(b)(4) of title 5, United States Code, is 

7 amended by adding at the end the following: 

8 ‘‘(C) Not later than 30 days after the end 

9 of each fiscal year, the Office of Personnel 

10 Management shall transfer from Postal Service 

11 Federal Employee Retirement System monies 

12 within the Civil Service Retirement and Dis13 ability Fund to the Postal Service Retiree 

14 Health Benefits Fund an amount equal to the 

15 negative supplemental liability (if any), as cal16 culated under paragraph (1)(B), for the most 

17 recent fiscal year available, less the sum of— 

18 ‘‘(i) the Postal supplemental liability, 

19 calculated under section 8348(h), for the 

20 same fiscal year (if any); and 

21 ‘‘(ii) any contribution required by this 

22 section that the Postal Service has not 

23 made between the close of the fiscal year 

24 of the calculation under paragraph (1)(B) 

25 and the close of the most recent fiscal 

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1 year, as determined by the Office of Per2 sonnel Management.’’. 

3 SEC. 502. RETIREE HEALTH BENEFIT LIABILITY PAYMENT 

4 SCHEDULE. 

5 (a) IN GENERAL.—Subsection 8909a(d) of title 5, 

6 United States Code, is amended— 

7 (1) in paragraph (2)(B), by striking ‘‘2017’’ 

8 and inserting ‘‘2015’’; and 

9 (2) in paragraph (3)— 

10 (A) in subparagraph (A)— 

11 (i) in clause (iii), by adding ‘‘and’’ at 

12 the end; 

13 (ii) in clause (iv), by striking the 

14 semicolon at the end and inserting a pe15 riod; and 

16 (iii) by striking clauses (v) through 

17 (x); and 

18 (B) in subparagraph (B), by striking 

19 ‘‘2017’’ and inserting ‘‘2015’’. 

20 (b) CONFORMING AMENDMENT.—Section 

21 8906(g)(2)(A) of title 5, United States Code, is amended 

22 by striking ‘‘2016’’ and inserting ‘‘2014’’. 

23 (c) TECHNICAL CORRECTION.—The heading for sec24 tion 8909a of title 5, United States Code, is amended by 

25 striking ‘‘Benefit’’ and inserting ‘‘Benefits’’. 

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1 SEC. 503. SUPPLEMENTARY BORROWING AUTHORITY DUR2 ING A CONTROL PERIOD. 

3 (a) IN GENERAL.—Chapter 20 is amended by adding 

4 after section 2011 the following: 

5 ‘‘§ 2012. Supplementary borrowing authority 

6 ‘‘(a) SUPPLEMENTARY BORROWING AUTHORITY.— 

7 Upon the commencement of the control period, subject to 

8 the approval of the Authority, the Postal Service is author9 ized to borrow money and issue and sell such obligations 

10 as may be necessary to carry out the purposes of this title, 

11 to the same extent, in the same manner, and subject to 

12 the same terms and conditions as if the maximum amount 

13 allowable under the provisions of section 2005(a)(2) for 

14 the fiscal year involved were equal to the maximum 

15 amount which (but for this section) would otherwise be 

16 allowable under such provisions, increased by 

17 $5,000,000,000. 

18 ‘‘(b) SUNSET.—The authority to borrow money and 

19 to issue and sell obligations under subsection (a) shall 

20 cease to be available after September 30, 2022. 

21 ‘‘(c) DEPOSIT.—Any amounts received under this 

22 section shall be deposited in the Postal Service Fund. 

23 ‘‘(d) PROPERTIES TO BE SET ASIDE.—Notwith24 standing section 2005(b)(2), the Postal Service shall take 

25 such measures as may be necessary and appropriate so 

26 that, during any period in which the Postal Service is 

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1 using supplemental borrowing authority under subsection 

2 (a), a sufficient amount of real property has been pledged 

3 or otherwise set aside by the Postal Service to carry out 

4 subsection (e). 

5 ‘‘(e) OUTSTANDING SUPPLEMENTAL DEBT REDUC6 TION.— 

7 ‘‘(1) IN GENERAL.—In the case of any full fis8 cal year in which the Postal Service borrows funds 

9 pursuant to subsection (a), the Postal Service shall, 

10 not later than September 30 of such fiscal year, de11 posit into the Postal Service Fund an amount such 

12 that the total obligations accrued and outstanding 

13 pursuant to subsection (a) are, as of the close of 

14 such fiscal year, at least 20 percent less than the 

15 total obligations so accrued and outstanding as of 

16 the start of such fiscal year. 

17 ‘‘(2) SENSE OF CONGRESS.—It is the sense of 

18 Congress that, to achieve the requirement of para19 graph (1), the Postal Service should dispose of such 

20 real property as may be necessary. 

21 ‘‘(f) DEFINITIONS.—For purposes of this section— 

22 ‘‘(1) the term ‘Authority’ means the Postal 

23 Service Financial Responsibility and Management 

24 Assistance Authority, established in title II of the 

25 Postal Reform Act of 2013; and 

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1 ‘‘(2) the term ‘control period’ has the meaning 

2 given such term in section 202(b)(1) of such Act.’’. 

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

4 for chapter 20 is amended by adding at the end the fol5 lowing: 

‘‘2012. Supplemental borrowing authority.’’. 

6 SEC. 504. POSTAL SERVICE DELIVERY-POINT MODERNIZA7 TION FUND. 

8 (a) IN GENERAL.—Chapter 20 is further amended by 

9 adding after section 2012 (as added by section 503(a)) 

10 the following: 

11 ‘‘§ 2013. Postal Service Delivery-Point Modernization 

12 Fund 

13 ‘‘(a) ESTABLISHMENT.—There is established within 

14 the Treasury of the United States a revolving fund to be 

15 known as the ‘Postal Service Delivery-Point Moderniza16 tion Fund’, which shall be available without fiscal year 

17 limitation pursuant to the requirements of this section. 

18 ‘‘(b) FUNDING.— 

19 ‘‘(1) AUTHORIZATION.—The Postal Service is 

20 authorized to borrow money and to issue and sell 

21 such obligations as it determines necessary solely to 

22 carry out the purposes of section 3962 3692. The 

23 aggregate amount of obligations issued by the Postal 

24 Service which may be outstanding at any one time 

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1 under this paragraph shall not exceed 

2 $1,000,000,000. 

3 ‘‘(2) APPLICABILITY OF SECTION 2005.—The 

4 provisions of subsections 2005(b), (c), and (d) shall 

5 apply to obligations issued under this subsection. 

6 ‘‘(3) DEPOSIT.—Any amounts received by the 

7 Postal Service as a result of paragraph (1) shall be 

8 deposited in the Postal Service Delivery-Point Mod9 ernization Fund. 

10 ‘‘(c) SUNSET.—The authority to borrow money and 

11 to issue and sell obligations under subsection (b) shall 

12 cease to be available after September 30, 2023. 

13 ‘‘(d) BUDGETARY TREATMENT.—The receipts and 

14 disbursements of the Postal Service Delivery-Point Mod15 ernization Fund shall be accorded the same budgetary 

16 treatment as is accorded to receipts and disbursements of 

17 the Postal Service Fund under section 2009a. 

18 ‘‘(e) TERMINATION OF FUND.—On September 30, 

19 2023, any funds remaining in the Postal Service Delivery20 Point Modernization Fund shall be used to satisfy any re21 maining obligations under subsection (b)(1), and any 

22 funds in excess of such obligations shall be deposited in 

23 the Postal Service Fund. After any excess funds have been 

24 so deposited, the Postal Service Delivery-Point Moderniza25 tion Fund shall be terminated.’’. 

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

2 for chapter 20 is amended by adding after the item relat3 ing to section 2012 (as added by section 503(b)) the fol4 lowing: 

‘‘2013. Postal Service Delivery-Point Modernization Fund.’’. 

5 SEC. 505. SPECIFIC RETIREMENT LIABILITY CALCULA6 TIONS RELATING TO THE POSTAL SERVICE. 

7 (a) FEDERAL EMPLOYEES RETIREMENT SYSTEM.— 

8 Section 8423(a) of title 5, United States Code, is amend9 ed— 

10 (1) in paragraph (1)— 

11 (A) in subparagraph (A)— 

12 (i) in clause (i), by striking ‘‘subpara13 graph (B)),’’ and inserting ‘‘subparagraph 

14 (B) or (C)),’’; and 

15 (ii) in clause (ii), by striking ‘‘and’’ 

16 after the semicolon; 

17 (B) in subparagraph (B)(ii), by striking 

18 the period at the end and inserting ‘‘; and’’; 

19 and 

20 (C) by adding at the end the following: 

21 ‘‘(C) the product of— 

22 ‘‘(i) the normal-cost percentage, as deter23 mined for employees (other than employees cov24 ered by subparagraph (B)) of the United States 

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1 Postal Service under paragraph (5), multiplied 

2 by 

3 ‘‘(ii) the aggregate amount of basic pay 

4 payable by the United States Postal Service, for 

5 the period involved, to employees of the United 

6 States Postal Service.’’; and 

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

8 ‘‘(5)(A) In determining the normal-cost percentage 

9 for employees of the United States Postal Service for pur10 poses of paragraph (1)(C), the Office— 

11 ‘‘(i) shall use demographic factors specific to 

12 such employees, unless such data cannot be gen13 erated; and 

14 ‘‘(ii) may use economic assumptions regarding 

15 wage and salary growth that reflect the specific past, 

16 and likely future, pay for such employees. 

17 ‘‘(B) The United States Postal Service shall provide 

18 any data or projections the Office requires in order to de19 termine the normal-cost percentage for employees of the 

20 United States Postal Service, consistent with subpara21 graph (A). 

22 ‘‘(C) The Office shall review the determination of the 

23 normal-cost percentage for employees of the United States 

24 Postal Service and make such adjustments as the Office 

25 considers necessary— 

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1 ‘‘(i) upon request of the United States Postal 

2 Service, but not more frequently than once each fis3 cal year; and 

4 ‘‘(ii) at such other times as the Office considers 

5 appropriate. 

6 ‘‘(6) For the purpose of carrying out subsection 

7 (b)(1)(B), and consistent with paragraph (5), for fiscal 

8 year 2013, and each fiscal year thereafter, the Office— 

9 ‘‘(A) shall use demographic factors specific to 

10 current and former employees of the United States 

11 Postal Service, unless such data cannot be gen12 erated; and 

13 ‘‘(B) may use economic assumptions regarding 

14 wage and salary growth that reflect the specific past, 

15 and likely future, pay for current employees of the 

16 United States Postal Service.’’. 

17 (b) CIVIL SERVICE RETIREMENT SYSTEM.—Section 

18 8348(h) of title 5, United States Code, is amended by add19 ing at the end the following: 

20 ‘‘(4) For the purpose of carrying out paragraph (1), 

21 consistent with section 8423(b)(1)(B), for fiscal year 

22 2013, and each fiscal year thereafter, the Office— 

23 ‘‘(A) shall use demographic factors specific to 

24 current and former employees of the United States 

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1 Postal Service, unless such data cannot be gen2 erated; and 

3 ‘‘(B) may use economic assumptions regarding 

4 wage and salary growth that reflect the specific past, 

5 and likely future, pay for current employees of the 

6 United States Postal Service.’’. 

7 TITLE VI—POSTAL 

8 CONTRACTING REFORM 

9 SEC. 601. CONTRACTING PROVISIONS. 

10 (a) IN GENERAL.—Part I is amended by adding at 

11 the end the following: 

12 ‘‘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. 

13 ‘‘§ 701. Definitions 

14 ‘‘In this chapter— 

15 ‘‘(1) the term ‘contracting officer’ means an 

16 employee of a covered postal entity who has author17 ity to enter into a postal contract; 

18 ‘‘(2) the term ‘covered postal entity’ means— 

19 ‘‘(A) the Postal Service; or 

20 ‘‘(B) the Postal Regulatory Commission; 

21 ‘‘(A) 

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1 ‘‘(3) the term ‘head of a covered postal entity’ 

2 means— 

3 ‘‘(A) in the case of the Postal Service, the 

4 Postmaster General; or 

5 ‘‘(B) in the case of the Postal Regulatory 

6 Commission, the Chairman of the Postal Regu7 latory Commission; 

8 ‘‘(4) the term ‘postal contract’ means— 

9 ‘‘(A) in the case of the Postal Service, any 

10 contract (including any agreement or memo11 randum of understanding) entered into by the 

12 Postal Service for the procurement of goods or 

13 services; or 

14 ‘‘(B) in the case of the Postal Regulatory 

15 Commission, any contract (including any agree16 ment or memorandum of understanding) in an 

17 amount exceeding the simplified acquisition 

18 threshold (as defined in section 134 of title 41 

19 and adjusted under section 1908 of such title) 

20 entered into by the Postal Regulatory Commis21 sion for the procurement of goods or services; 

22 and 

23 ‘‘(5) the term ‘senior procurement executive’ 

24 means the senior procurement executive of a covered 

25 postal entity. 

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1 ‘‘§ 702. Advocate for competition 

2 ‘‘(a) ESTABLISHMENT AND DESIGNATION.— 

3 ‘‘(1) There is established in each covered postal 

4 entity an advocate for competition. 

5 ‘‘(2) The head of each covered postal entity 

6 shall designate for the covered postal entity 1 or 

7 more officers or employees (other than the senior 

8 procurement executive) to serve as the advocate for 

9 competition. 

10 ‘‘(b) RESPONSIBILITIES.—The advocate for competi11 tion of a covered postal entity shall— 

12 ‘‘(1) be responsible for promoting— 

13 ‘‘(A) the contracting out of functions of 

14 the covered postal entity that the private sector 

15 can perform equally well or better, and at lower 

16 cost; and 

17 ‘‘(B) competition to the maximum extent 

18 practicable consistent with obtaining best value 

19 by promoting the acquisition of commercial 

20 items and challenging barriers to competition; 

21 ‘‘(2) review the procurement activities of the 

22 covered postal entity; and 

23 ‘‘(3) prepare and transmit the annual report re24 quired under subsection (c). 

25 ‘‘(c) ANNUAL REPORT.— 

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1 ‘‘(1) PREPARATION.—The advocate for competi2 tion of a covered postal entity shall prepare an an3 nual report describing the following: 

4 ‘‘(A) The activities of the advocate under 

5 this section. 

6 ‘‘(B) Initiatives required to promote con7 tracting out and competition. 

8 ‘‘(C) Barriers to contracting out and com9 petition. 

10 ‘‘(D) In the case of the report prepared by 

11 the competition advocate of the Postal Service, 

12 the number of waivers made by the Postal Serv13 ice under section 704(c). 

14 ‘‘(2) TRANSMISSION.—The report under this 

15 subsection shall be transmitted— 

16 ‘‘(A) to Congress; 

17 ‘‘(B) to the head of the postal entity; 

18 ‘‘(C) to the senior procurement executive 

19 of the entity; 

20 ‘‘(D) in the case of the competition advo21 cate of the Postal Service, to each member of 

22 the Postal Service Board of Governors; and 

23 ‘‘(E) in the case of the competition advo24 cate of the Postal Regulatory Commission, to 

25 each of the Commissioners of the Commission. 

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1 ‘‘§ 703. Delegation of contracting authority 

2 ‘‘(a) IN GENERAL.— 

3 ‘‘(1) POLICY.—Not later than 60 days after the 

4 date of enactment of this chapter, the head of each 

5 covered postal entity shall issue a policy on con6 tracting officer delegations of authority for postal 

7 contracts for the covered postal entity. 

8 ‘‘(2) CONTENTS.—The policy issued under 

9 paragraph (1) shall require that— 

10 ‘‘(A) notwithstanding any delegation of au11 thority with respect to postal contracts, the ulti12 mate responsibility and accountability for the 

13 award and administration of postal contracts 

14 resides with the senior procurement executive; 

15 and 

16 ‘‘(B) a contracting officer shall maintain 

17 an awareness of and engagement in the activi18 ties being performed on postal contracts of 

19 which that officer has cognizance, notwith20 standing any delegation of authority that may 

21 have been executed. 

22 ‘‘(b) POSTING OF DELEGATIONS.— 

23 ‘‘(1) IN GENERAL.—The head of each covered 

24 postal entity shall make any delegation of authority 

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1 tracting unit readily available and accessible on the 

2 Web site of the covered postal entity. 

3 ‘‘(2) EFFECTIVE DATE.—This paragraph shall 

4 apply to any delegation of authority made on or 

5 after 30 days after the date of enactment of this 

6 chapter. 

7 ‘‘§ 704. Posting of noncompetitive purchase requests 

8 for noncompetitive contracts 

9 ‘‘(a) POSTING REQUIRED.— 

10 ‘‘(1) POSTAL REGULATORY COMMISSION.—The 

11 Postal Regulatory Commission shall make the non12 competitive purchase request for any noncompetitive 

13 award for any contract (including any agreement or 

14 memorandum of understanding) entered into by the 

15 Postal Regulatory Commission for the procurement 

16 of goods and services, in an amount of $20,000 or 

17 more, including the rationale supporting the non18 competitive award, publicly available on the Web site 

19 of the Postal Regulatory Commission— 

20 ‘‘(A) not later than 14 days after the date 

21 of the award of the noncompetitive contract; or 

22 ‘‘(B) not later than 30 days after the date 

23 of the award of the noncompetitive contract, if 

24 the basis for the award was a compelling busi25 ness interest. 

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1 ‘‘(2) POSTAL SERVICE.—The Postal Service 

2 shall make the noncompetitive purchase request for 

3 any noncompetitive award of a postal contract in an 

4 amount of $250,000 or more, including the rationale 

5 supporting the noncompetitive award, publicly avail6 able on the Web site of the Postal Service— 

7 ‘‘(A) not later than 14 days after the date 

8 of the award; or 

9 ‘‘(B) not later than 30 days after the date 

10 of the award, if the basis for the award was a 

11 compelling business interest. 

12 ‘‘(3) ADJUSTMENTS TO THE POSTING THRESH13 OLD FOR THE POSTAL SERVICE.— 

14 ‘‘(A) REVIEW AND DETERMINATION.—Not 

15 later than January 31 of each year, the Postal 

16 Service shall— 

17 ‘‘(i) review the $250,000 threshold es18 tablished under paragraph (2); and 

19 ‘‘(ii) based on any change in the Con20 sumer Price Index for All Urban Con21 sumers of the Department of Labor, deter22 mine whether an adjustment to the thresh23 old shall be made. 

24 ‘‘(B) AMOUNT OF ADJUSTMENTS.—An ad25 justment under subparagraph (A) shall be made 

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1 in increments of $5,000. If the Postal Service 

2 determines that a change in the Consumer 

3 Price Index for a year would require an adjust4 ment in an amount that is less than $5,000, the 

5 Postal Service may not make an adjustment to 

6 the threshold for the year. 

7 ‘‘(4) EFFECTIVE DATE.—This subsection shall 

8 apply to any noncompetitive contract awarded on or 

9 after the date that is 90 days after the date of en10 actment of this chapter. 

11 ‘‘(b) PUBLIC AVAILABILITY.— 

12 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

13 the information required to be made publicly avail14 able by a covered postal entity under subsection (a) 

15 shall be readily accessible on the Web site of the cov16 ered postal entity. 

17 ‘‘(2) PROTECTION OF PROPRIETARY INFORMA18 TION.—A covered postal entity shall— 

19 ‘‘(A) carefully screen any description of the 

20 rationale supporting a noncompetitive award re21 quired to be made publicly available under sub22 section (a) to determine whether the description 

23 includes proprietary data (including any ref24 erence or citation to the proprietary data) or se25 curity-related information; and 

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1 ‘‘(B) remove any proprietary data or secu2 rity-related information before making publicly 

3 available a description of the rationale sup4 porting a noncompetitive award. 

5 ‘‘(c) WAIVERS.— 

6 ‘‘(1) WAIVER PERMITTED.—If the Postal Serv7 ice determines that making a noncompetitive pur8 chase request for a postal contract of the Postal 

9 Service publicly available would risk placing the 

10 Postal Service at a competitive disadvantage relative 

11 to a private sector competitor, the senior procure12 ment executive, in consultation with the advocate for 

13 competition of the Postal Service, may waive the re14 quirements under subsection (a). 

15 ‘‘(2) FORM AND CONTENT OF WAIVER.— 

16 ‘‘(A) FORM.—A waiver under paragraph 

17 (1) shall be in the form of a written determina18 tion placed in the file of the contract to which 

19 the noncompetitive purchase request relates. 

20 ‘‘(B) CONTENT.—A waiver under para21 graph (1) shall include— 

22 ‘‘(i) a description of the risk associ23 ated with making the noncompetitive pur24 chase request publicly available; and 

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1 ‘‘(ii) a statement that redaction of 

2 sensitive information in the noncompetitive 

3 purchase request would not be sufficient to 

4 protect the Postal Service from being 

5 placed at a competitive disadvantage rel6 ative to a private sector competitor. 

7 ‘‘(3) DELEGATION OF WAIVER AUTHORITY.— 

8 The Postal Service may not delegate the authority to 

9 approve a waiver under paragraph (1) to any em10 ployee having less authority than the senior procure11 ment executive. 

12 ‘‘§ 705. Review of ethical issues 

13 ‘‘If a contracting officer identifies any ethical issues 

14 relating to a proposed contract and submits those issues 

15 and that proposed contract to the designated ethics official 

16 for the covered postal entity before the awarding of that 

17 contract, that ethics official shall— 

18 ‘‘(1) review the proposed contract; and 

19 ‘‘(2) advise the contracting officer on the appro20 priate resolution of ethical issues. 

21 ‘‘§ 706. Ethical restrictions on participation in certain 

22 contracting activity 

23 ‘‘(a) DEFINITIONS.—In this section— 

24 ‘‘(1) the term ‘covered employee’ means— 

25 ‘‘(A) a contracting officer; or 

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1 ‘‘(B) any employee of a covered postal en2 tity whose decisionmaking affects a postal con3 tract as determined by regulations prescribed 

4 by the head of a covered postal entity; 

5 ‘‘(2) the term ‘final conviction’ means a convic6 tion, whether entered on a verdict or plea, including 

7 a plea of nolo contendere, for which a sentence has 

8 been imposed; and 

9 ‘‘(3) the term ‘covered relationship’ means a 

10 covered relationship described in section 

11 2635.502(b)(1) of title 5, Code of Federal Regula12 tions, or any successor thereto. 

13 ‘‘(b) IN GENERAL.— 

14 ‘‘(1) REGULATIONS.—The head of each covered 

15 postal entity shall prescribe regulations that— 

16 ‘‘(A) require a covered employee to include 

17 in the file of any noncompetitive purchase re18 quest for a noncompetitive postal contract a 

19 written certification that— 

20 ‘‘(i) discloses any covered relationship 

21 of the covered employee; and 

22 ‘‘(ii) states that the covered employee 

23 will not take any action with respect to the 

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1 ative, or person with whom the covered 

2 employee is affiliated in a nongovernmental 

3 capacity, or otherwise gives rise to an ap4 pearance of the use of public office for pri5 vate gain, as described in section 2635.702 

6 of title 5, Code of Federal Regulations, or 

7 any successor thereto; 

8 ‘‘(B) require a contracting officer to con9 sult with the ethics counsel for the covered 

10 postal entity regarding any disclosure made by 

11 a covered employee under subparagraph (A)(i), 

12 to determine whether participation by the cov13 ered employee in the noncompetitive purchase 

14 request would give rise to a violation of part 

15 2635 of title 5, Code of Federal Regulations 

16 (commonly referred to as the Standards of Eth17 ical Conduct for Employees of the Executive 

18 Branch), or any successor thereto; 

19 ‘‘(C) require the ethics counsel for a cov20 ered postal entity to review any disclosure made 

21 by a contracting officer under subparagraph 

22 (A)(i) to determine whether participation by the 

23 contracting officer in the noncompetitive pur24 chase request would give rise to a violation of 

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1 tions (commonly referred to as the Standards of 

2 Ethical Conduct for Employees of the Executive 

3 Branch), or any successor thereto; 

4 ‘‘(D) under subsections (d) and (e) of sec5 tion 2635.502 of title 5, Code of Federal Regu6 lations, or any successor thereto, require the 

7 ethics counsel for a covered postal entity to— 

8 ‘‘(i) authorize a covered employee that 

9 makes a disclosure under subparagraph 

10 (A)(i) to participate in the noncompetitive 

11 postal contract; or 

12 ‘‘(ii) disqualify a covered employee 

13 that makes a disclosure under subpara14 graph (A)(i) from participating in the non15 competitive postal contract; 

16 ‘‘(E) require a contractor to timely disclose 

17 to the contracting officer in a bid, solicitation, 

18 award, or performance of a postal contract any 

19 conflict of interest with a covered employee; and 

20 ‘‘(F) include authority for the head of the 

21 covered postal entity to grant a waiver or other22 wise mitigate any organizational or personal 

23 conflict of interest, if the head of the covered 

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1 gation is in the best interests of the covered 

2 postal entity. 

3 ‘‘(2) POSTING OF WAIVERS.—Not later than 30 

4 days after the head of a covered postal entity grants 

5 a waiver described in paragraph (1)(F), the head of 

6 the covered postal entity shall make the waiver pub7 licly available on the Web site of the covered postal 

8 entity. 

9 ‘‘(c) CONTRACT VOIDANCE AND RECOVERY.— 

10 ‘‘(1) UNLAWFUL CONDUCT.—In any case in 

11 which there is a final conviction for a violation of 

12 any provision of chapter 11 of title 18 relating to a 

13 postal contract, the head of a covered postal entity 

14 may— 

15 ‘‘(A) void that contract; and 

16 ‘‘(B) recover the amounts expended and 

17 property transferred by the covered postal enti18 ty under that contract. 

19 ‘‘(2) OBTAINING OR DISCLOSING PROCUREMENT

20 INFORMATION.— 

21 ‘‘(A) IN GENERAL.—In any case in which 

22 a contractor under a postal contract fails to 

23 timely disclose a conflict of interest to the ap24 propriate contracting officer as required under 

25 the regulations promulgated under subsection 

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1 (b)(1)(E), the head of a covered postal entity 

2 may— 

3 ‘‘(i) void that contract; and 

4 ‘‘(ii) recover the amounts expended 

5 and property transferred by the covered 

6 postal entity under that contract. 

7 ‘‘(B) CONVICTION OR ADMINISTRATIVE DE8 TERMINATION.—A case described under sub9 paragraph (A) is any case in which— 

10 ‘‘(i) there is a final conviction for an 

11 offense punishable under section 2105 of 

12 title 41; or 

13 ‘‘(ii) the head of a covered postal enti14 ty determines, based upon a preponderance 

15 of the evidence, that the contractor or 

16 someone acting for the contractor has en17 gaged in conduct constituting an offense 

18 punishable under section 2105 of such 

19 title.’’. 

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

21 at the beginning of part I is amended by adding at the 

22 end the following: 

‘‘7. Contracting Provisions ............................................................ 701’’. 

23 SEC. 602. TECHNICAL AMENDMENT TO DEFINITION. 

24 Section 7101(8) of title 41, United States Code, is 

25 amended— 

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1 (1) by striking ‘‘and’’ at the end of subpara2 graph (C); 

3 (2) by striking the period at the end of sub4 paragraph (D) and inserting ‘‘; and’’; and 

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

6 ‘‘(E) the United States Postal Service and 

7 the Postal Regulatory Commission.’’. 

8 SEC. 603. CONTRACT LIMITATION. 

9 (a) IN GENERAL.—Each covered contract entered 

10 into within 6 months after the date on which the Postal 

11 Service commences any reduction in force shall include a 

12 requirement that the contractor provide a preference in 

13 the hiring of qualifying individuals for full-time positions 

14 created by or as a result of the contract. 

15 (b) COVERED CONTRACT.—For the purposes of this 

16 section, the term ‘‘covered contract’’ means a contract— 

17 (1) for an amount greater than $250,000; 

18 (2) entered into by the Postal Service— 

19 (A) within 2 years after the date of enact20 ment of this Act; 

21 (B) with a person other than a small busi22 ness concern; and 

23 (C) for the procurement of goods or serv24 ices; and 

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1 (3) for which such person will hire 10 or more 

2 individuals. 

3 (c) QUALIFYING INDIVIDUAL.—For the purposes of 

4 this section, the term ‘‘qualifying individual’’ means an in5 dividual who— 

6 (1) is separated from the Postal Service due to 

7 a reduction in force; 

8 (2) at the time of separation— 

9 (A) is a career postal employee; and 

10 (B) is not a retirement-eligible individual; 

11 (3) as of the date of hire (as referred to in sub12 section (b)(3)) has been continuously unemployed for 

13 a period not exceeding 78 weeks; and 

14 (4) is qualified for the position involved. 

15 (d) RETIREMENT-ELIGIBLE INDIVIDUAL.—For pur16 poses of this section, the term ‘‘retirement-eligible indi17 vidual’’, as used with respect to a qualifying individual, 

18 means an individual who, at the time of such individual’s 

19 separation (as described in subsection (c)(1)), satisfies the 

20 age and service requirements for entitlement to an annuity 

21 under— 

22 (1) subsection (a), (b), (c), or (f) of section 

23 8336 of title 5, United States Code; or 

24 (2) subsection (a), (b), (c), (d), or (g) of section 

25 8412 of title 5, United States Code. 

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1 (e) SMALL BUSINESS CONCERN.—For purposes of 

2 this section, the term ‘‘small business concern’’ means a 

3 small business as defined pursuant to section 3 of the 

4 Small Business Act and relevant regulations prescribed 

5 pursuant thereto. 

6 TITLE VII—OTHER PROVISIONS 

7 SEC. 701. POSTAL FACILITY DESIGNATIONS. 

8 (a) FACILITIES DESIGNATED.— 

9 (1) OFFICER TOMMY DECKER MEMORIAL POST

10 OFFICE.— 

11 (A) DESIGNATION.—The facility of the 

12 United States Postal Service located at 14 Red 

13 River Avenue North in Cold Spring, Minnesota, 

14 shall be known and designated as the ‘‘Officer 

15 Tommy Decker Memorial Post Office’’. 

16 (B) REFERENCES.—Any reference in a 

17 law, map, regulation, document, paper, or other 

18 record of the United States to the facility re19 ferred to in subsection (a) shall be deemed to 

20 be a reference to the ‘‘Officer Tommy Decker 

21 Memorial Post Office’’. 

22 (2) RICHARD K. SALICK POST OFFICE.— 

23 (A) DESIGNATION.—The facility of the 

24 United States Postal Service located at 500 

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1 ida, shall be known and designated as the 

2 ‘‘Richard K. Salick Post Office’’. 

3 (B) REFERENCES.—Any reference in a 

4 law, map, regulation, document, paper, or other 

5 record of the United States to the facility re6 ferred to in subsection (a) shall be deemed to 

7 be a reference to the ‘‘Richard K. Salick Post 

8 Office’’. 

9 (3) NATIONAL PARK RANGER MARGARET AN10 DERSON POST OFFICE.— 

11 (A) DESIGNATION.—The facility of the 

12 United States Postal Service located at 103 

13 Center Street West in Eatonville, Washington, 

14 shall be known and designated as the ‘‘National 

15 Park Ranger Margaret Anderson Post Office’’. 

16 (B) REFERENCES.—Any reference in a 

17 law, map, regulation, document, paper, or other 

18 record of the United States to the facility re19 ferred to in subsection (a) shall be deemed to 

20 be a reference to the ‘‘National Park Ranger 

21 Margaret Anderson Post Office’’. 

22 (4) JUDGE SHIRLEY A. TOLENTINO POST OF23 FICE BUILDING.— 

24 (A) DESIGNATION.—The facility of the 

25 United States Postal Service located at 369 

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1 Martin Luther King Jr. Drive in Jersey City, 

2 New Jersey, shall be known and designated as 

3 the ‘‘Judge Shirley A. Tolentino Post Office 

4 Building’’. 

5 (B) REFERENCES.—Any reference in a 

6 law, map, regulation, document, paper, or other 

7 record of the United States to the facility re8 ferred to in subsection (a) shall be deemed to 

9 be a reference to the ‘‘Judge Shirley A. 

10 Tolentino Post Office Building’’. 

11 (b) SENSE OF CONGRESS.—It is the sense of Con12 gress that additional postal facility designations be in13 cluded in postal reform legislation. 

14 SEC. 702. RESPONSE TO SUBMISSIONS BY THE POSTAL 

15 SERVICE. 

16 (a) IN GENERAL.—Chapter 5 is amended by adding 

17 at the end the following: 

18 ‘‘§ 506. Submissions by the Postal Service to the Post19 al Regulatory Commission 

20 ‘‘Whenever the Postal Service submits to the Postal 

21 Regulatory Commission any notice, petition, request, or 

22 other filing intended to initiate a new proceeding before 

23 the Commission, the Commission shall make an initial de24 termination that such filing presents adequate information 

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1 visory opinion. If the Commission’s initial determination 

2 is that the Postal Service’s filing is inadequate, it shall 

3 dismiss the filing without prejudice.’’. 

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

5 for chapter 5 is amended by adding at the end the fol6 lowing: 

‘‘506. Submissions by the Postal Service to the Postal Regulatory Commission.’’. 

7 SEC. 703. FAIR STAMP-EVIDENCING COMPETITION. 

8 Section 404(a) is amended— 

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

10 end; 

11 (2) in paragraph (3), by striking the period at 

12 the end and inserting ‘‘; or’’; and 

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

14 ‘‘(4) offer to the public any postage-evidencing 

15 product or service that does not comply with any 

16 rule or regulation that would be applicable to such 

17 product or service if the product or service were of18 fered by a private company.’’. 

19 SEC. 703. FAIR STAMP-EVIDENCING COMPETITION. 

20 Section 404a(a) is further amended by— 

21 (1) in paragraph (3), by striking ‘‘or’’ (as added 

22 by section 103(f)(1)); 

23 (2) in paragraph (4) (as added 103(f)(4)), by 

24 striking the period and inserting ‘‘; or’’; and 

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

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1 ‘‘(5) offer to the public any postage-evidencing 

2 product or service that does not comply with any rule 

3 or regulation that would be applicable to such product 

4 or service if the product or service were offered by a 

5 private company.’’. 

6 SEC. 704. USPS INNOVATION OFFICER AND ACCOUNT7 ABILITY. 

8 (a) IN GENERAL.—Chapter 2 is amended by adding 

9 at the end the following: 

10 ‘‘SEC. 209. USPS INNOVATION OFFICER AND ACCOUNT11 ABILITY. 

12 ‘‘(a) IN GENERAL.—There shall be in the Postal 

13 Service a Chief Innovation Officer selected by the Post14 master General who shall have proven expertise and a 

15 record of success in 1 or more of the following: postal and 

16 shipping industry, innovation product research and devel17 opment, marketing brand strategy, emerging communica18 tions technology, or business process management. The 

19 Chief Innovation Officer shall manage the Postal Service’s 

20 development and implementation of innovative postal and 

21 nonpostal products and services. 

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

23 have as primary duties— 

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1 ‘‘(1) leading the development of innovative non2 postal products and services that will maximize rev3 enue to the Postal Service; 

4 ‘‘(2) developing innovative postal products and 

5 services, particularly those that utilize emerging in6 formation technologies, to maximize revenue to the 

7 Postal Service; 

8 ‘‘(3) monitoring the performance of innovative 

9 products and services and revising them as needed 

10 to meet changing market trends; and 

11 ‘‘(4) taking into consideration comments or ad12 visory opinions, if applicable, issued by the Postal 

13 Regulatory Committee prior to the initial sale of in14 novative postal or nonpostal products and services. 

15 ‘‘(c) DESIGNATION.— 

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

17 the date of enactment of this section, but no later 

18 than January 1, 2014, the Postmaster General shall 

19 designate a Chief Innovation Officer. 

20 ‘‘(2) CONDITION.—Nothing in this section shall 

21 be construed to prohibit an individual who holds an22 other office or position in the Postal Service from 

23 serving as the Chief Innovation Officer under this 

24 chapter. However, upon appointment to the position 

25 of the Chief Innovation Officer, such individual may 

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1 not, while serving in such office, concurrently hold 

2 any other office or position in the Postal Service. 

3 ‘‘(d) INNOVATION STRATEGY.— 

4 ‘‘(1) IN GENERAL.—Not later than 12 months 

5 after the date on which the Chief Innovation Officer 

6 is designated under subsection (c)(1), the Post7 master General shall submit to the Committee on 

8 Homeland Security and Governmental Affairs of the 

9 Senate and the Committee on Oversight and Govern10 ment Reform of the House of Representatives a 

11 comprehensive strategy for maximizing revenues 

12 through innovative postal and nonpostal products 

13 and services. 

14 ‘‘(2) MATTERS TO BE ADDRESSED.—At a min15 imum, the strategy required by this section shall ad16 dress— 

17 ‘‘(A) the specific innovative postal and 

18 nonpostal products and services to be developed 

19 and offered by the Postal Service, including the 

20 nature of the market to be filled by each prod21 uct and service and the likely date by which 

22 each product and service will be introduced; 

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

24 each product or service; 

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1 ‘‘(C) the anticipated sales volume of each 

2 product and service; 

3 ‘‘(D) the anticipated revenues and profits 

4 expected to be generated by each product and 

5 service; 

6 ‘‘(E) the likelihood of success of each inno7 vative product and service as well as the risks 

8 associated with the development and sale of 

9 each innovative product and service; 

10 ‘‘(F) the trends anticipated in market con11 ditions that may affect the success of each 

12 product and service over the 5-year period be13 ginning on the date such strategy or update is 

14 submitted; and 

15 ‘‘(G) the metrics that will be utilized to as16 sess the effectiveness of the innovation strat17 egy.; and 

18 ‘‘(H) the specific methods by which 

19 mailpiece design analysis may be improved to 

20 speed the approval process and promote the in21 creased use of innovative mailpiece design. 

22 ‘‘(3) STRATEGY UPDATES.—On January 1, 

23 2018, and every 3 years thereafter, the Chief Inno24 vation Officer shall submit an update to the innova25 tion strategy submitted under paragraph (1) to the 

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1 Committee on Homeland Security and Governmental 

2 Affairs of the Senate, the Committee on Oversight 

3 and Government Reform of the House of Represent4 atives, and the Postal Regulatory Commission. 

5 ‘‘(e) REPORT ON PERFORMANCE.— 

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

7 shall submit to the Committee on Homeland Secu8 rity and Governmental Affairs of the Senate, the 

9 Committee on Oversight and Government Reform of 

10 the House of Representatives, and the Postal Regu11 latory Commission with the President’s budget sub12 mission under section 1105(a) of title 31 a report 

13 that details the Postal Service’s progress in imple14 menting the innovation strategy. 

15 ‘‘(2) MATTERS TO BE ADDRESSED.—At a min16 imum, the report required by this section shall ad17 dress— 

18 ‘‘(A) the revenue generated by each prod19 uct and service developed through the innova20 tion strategy and the costs of developing and 

21 offering each such product and service for the 

22 most recent fiscal year; 

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

24 generated by each product and service on a 

25 monthly basis for the preceding year; 

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1 ‘‘(C) trends in the markets filled by each 

2 product and service; 

3 ‘‘(D) products and services identified in 

4 the innovation strategy that are to be discon5 tinued, the date on which the discontinuance 

6 will occur, and the reasons for the discontinu7 ance; 

8 ‘‘(E) alterations in products and services 

9 identified in the innovation strategy that will be 

10 made to meet changing market conditions, and 

11 an explanation of how these alterations will en12 sure the success of the products and services; 

13 and 

14 ‘‘(F) the performance of the innovation 

15 strategy according to the metrics identified in 

16 subsection (d)(2)(G). 

17 ‘‘(f) COMPTROLLER GENERAL.— 

18 ‘‘(1) IN GENERAL.—The Comptroller General 

19 shall conduct a study on the implementation of the 

20 innovation strategy not later than 4 years after the 

21 date of enactment of this section. 

22 ‘‘(2) CONTENTS.—At a minimum, the Comp23 troller General shall assess the effectiveness of the 

24 Postal Service in identifying, developing, and selling 

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1 innovative postal and nonpostal products and serv2 ices. The study shall also include— 

3 ‘‘(A) an audit of the costs of developing 

4 each innovative postal and nonpostal product 

5 and service developed or offered by the Postal 

6 Service during the period beginning on the date 

7 of enactment of this section and ending 4 years 

8 after such date; 

9 ‘‘(B) the sales volume of each such product 

10 and service; 

11 ‘‘(C) the revenues and profits generated by 

12 each such product and service; and 

13 ‘‘(D) the likelihood of continued success of 

14 each such product and service. 

15 ‘‘(3) SUBMISSION.—The results of the study re16 quired under this subsection shall be submitted 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 (b) CLERICAL AMENDMENT.—The table of sections 

22 at the beginning of chapter 2 is amended by adding at 

23 the end the following: 

‘‘209. USPS innovation officer and accountability.’’. 

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1 SEC. 705. POSTAL REGULATORY COMMISSION TRAVEL RE2 PORTING. 

3 Section 504(d) is amended— 

4 (1) by striking ‘‘(d)’’ and inserting ‘‘(d)(1)’’; 

5 and 

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

7 ‘‘(2) Not later than 60 days after the end of 

8 each fiscal year, the Postal Regulatory Commis9 sioners shall submit an itemized report describing all 

10 travel and reimbursable business travel expenses 

11 paid to each Commissioner, including the Chairman, 

12 when performing regulatory duties to the Committee 

13 on Oversight and Government Reform of the House 

14 of Representatives and the Committee on Homeland 

15 Security and Governmental Affairs of the Senate. 

16 The report submitted under this paragraph shall in17 clude a detailed justification for any travel or reim18 bursable business travel expense that deviates from 

19 the Commission’s travel and reimbursable business 

20 travel expense policies and guidelines.’’. 

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Union Calendar No. 564 

113TH CONGRESS 

2D SESSION H. R. 2748 

[Report No. 113–733, Part I] 

A BILL 

To restore the financial solvency of the United 

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

JANUARY 2, 2015 

Reported with amendments and referred to the Comto clause 1(e) of rule X fall within the jurisdiction of that committee pursuant ation of such provisions of the bill and amendment as ending not later than January 2, 2015, for consider- mittee on Education and the Workforce for a period 

JANUARY 2, 2015 

The Committee on Education and the Workforce disprinted House on the State of the Union and ordered to be charged; committed to the Committee of the Whole 

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