I 

113TH CONGRESS 

1ST SESSION H. R. 2690 

To enhance the long-term profitability of the United States Postal Service 

through enhanced innovation, operational flexibility, workforce realignment, and regulatory relief. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 16, 2013 

Mr. CUMMINGS (for himself, Mr. LYNCH, Mr. TIERNEY, Mr. CONNOLLY, Ms. 

SPEIER, Ms. NORTON, Mr. DANNY K. DAVIS of Illinois, and Ms. KELLY

of Illinois) introduced the following bill; which was referred to the Committee on Oversight and Government Reform, and in addition to the 

Committee on the Judiciary, for a period to be subsequently determined 

by the Speaker, in each case for consideration of such provisions as fall 

within the jurisdiction of the committee concerned 

A BILL 

To enhance the long-term profitability of the United States 

Postal Service through enhanced innovation, operational 

flexibility, workforce realignment, and regulatory relief. 

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 ‘‘Innovate to Deliver Act of 2013’’. 

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1 (b) TABLE OF CONTENTS.—The table of contents of 

2 this Act is as follows: 

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

TITLE I—POSTAL SERVICE PROFITABILITY AND REVENUEGENERATING ENHANCEMENTS 

Subtitle A—Postal Service Products and Pricing 

Sec. 101. USPS innovation officer and accountability. 

Sec. 102. Authority to offer nonpostal services. 

Sec. 103. Requirement that market-dominant products cover attributable costs. 

Sec. 104. PRC to revisit CPI cap instituted under PAEA. 

Sec. 105. Enhanced product innovation. 

Sec. 106. Authority to ship beer, wine and distilled spirits. 

Sec. 107. Repeal of uniform rate for books, films, and other materials. 

Subtitle B—Postal Service Management 

Sec. 108. USPS balanced budget minimum requirement. 

Sec. 109. Reporting requirement for Board of Governors and Postal Regulatory 

Commissioners. 

Sec. 110. Restrictions on postal service executive compensation. 

Sec. 111. Investment of competitive product moneys. 

TITLE II—POSTAL SERVICE WORKFORCE REALIGNMENT AND 

RIGHT-SIZING 

Sec. 201. Separate normal-cost percentage recalculation of Federal Employees 

Retirement System. 

Sec. 202. Treatment of surplus contributions to Federal Employees Retirement 

System. 

Sec. 203. Sense of Congress. 

Sec. 204. Contributions to Thrift Savings Fund of voluntary separation incentive payments. 

Sec. 205. Service credit contributions of voluntary separation incentive payments. 

Sec. 206. Modification of prepayment schedule relating to Postal Service Retiree Health Benefits Fund. 

Sec. 207. Study on USPS workforce realignment and right-sizing options. 

Sec. 208. Applicability of provisions relating to reductions in force. 

Sec. 209. Enhanced reporting on facility network initiatives. 

TITLE III—POSTAL SERVICE IMPROVEMENTS AND REGULATORY 

RELIEF 

Sec. 301. Permit appeal rights for closing of postal stations and branches. 

Sec. 302. Intra-agency cooperative agreements. 

Sec. 303. Grouping of negotiated service agreements. 

Sec. 304. Simplification of process for classification of competitive products. 

Sec. 305. Development of new market-dominant classes of mail. 

Sec. 306. Expedited consideration of service changes by PRC. 

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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 TITLE I—POSTAL SERVICE 

8 PROFITABILITY AND REV9 ENUE-GENERATING EN10 HANCEMENTS 

11 Subtitle A—Postal Service 

12 Products and Pricing 

13 SEC. 101. USPS INNOVATION OFFICER AND ACCOUNT14 ABILITY. 

15 (a) IN GENERAL.—Chapter 2 is amended by adding 

16 at the end the following: 

17 ‘‘SEC. 209. USPS INNOVATION OFFICER AND ACCOUNT18 ABILITY. 

19 ‘‘(a) IN GENERAL.—There shall be in the Postal 

20 Service a Chief Innovation Officer selected by the Post21 master General who shall have proven expertise and a 

22 record of success in 1 or more of the following: postal and 

23 shipping industry, innovation product research and devel24 opment, marketing brand strategy, emerging communica25 tions technology, or business process management. The 

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1 Chief Innovation Officer shall manage the Postal Service’s 

2 development and implementation of innovative postal and 

3 nonpostal products and services. 

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

5 have as primary duties— 

6 ‘‘(1) leading the development of innovative non7 postal products and services that will maximize rev8 enue to the Postal Service; 

9 ‘‘(2) developing innovative postal products and 

10 services, particularly those that utilize emerging in11 formation technologies, to maximize revenue to the 

12 Postal Service; 

13 ‘‘(3) monitoring the performance of innovative 

14 products and services and revising them as needed 

15 to meet changing market trends; and 

16 ‘‘(4) taking into consideration comments or ad17 visory opinions, if applicable, issued by the Postal 

18 Regulatory Committee prior to the initial sale of in19 novative postal or nonpostal products and services. 

20 ‘‘(c) DESIGNATION.— 

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

22 the date of enactment of this section, but no later 

23 than January 1, 2014, the Postmaster General shall 

24 designate a Chief Innovation Officer. 

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1 ‘‘(2) CONDITION.—Nothing in this section shall 

2 be construed to prohibit an individual who holds an3 other office or position in the Postal Service from 

4 serving as the Chief Innovation Officer under this 

5 chapter. However, upon appointment to the position 

6 of the Chief Innovation Officer, such individual may 

7 not, while serving in such office, concurrently hold 

8 any other office or position in the Postal Service. 

9 ‘‘(d) INNOVATION STRATEGY.— 

10 ‘‘(1) IN GENERAL.—Not later than 12 months 

11 after the date on which the Chief Innovation Officer 

12 is designated under subsection (c)(1), the Post13 master General shall submit to the Committee on 

14 Homeland Security and Governmental Affairs of the 

15 Senate and the Committee on Oversight and Govern16 ment Reform of the House of Representatives a 

17 comprehensive strategy for maximizing revenues 

18 through innovative postal and nonpostal products 

19 and services. 

20 ‘‘(2) MATTERS TO BE ADDRESSED.—At a min21 imum, the strategy required by this section shall ad22 dress— 

23 ‘‘(A) the specific innovative postal and 

24 nonpostal products and services to be developed 

25 and offered by the Postal Service, including the 

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1 nature of the market to be filled by each prod2 uct and service and the likely date by which 

3 each product and service will be introduced; 

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

5 each product or service; 

6 ‘‘(C) the anticipated sales volume of each 

7 product and service; 

8 ‘‘(D) the anticipated revenues and profits 

9 expected to be generated by each product and 

10 service; 

11 ‘‘(E) the likelihood of success of each inno12 vative product and service as well as the risks 

13 associated with the development and sale of 

14 each innovative product and service; 

15 ‘‘(F) the trends anticipated in market con16 ditions that may affect the success of each 

17 product and service over the 5-year period be18 ginning on the date such strategy or update is 

19 submitted; and 

20 ‘‘(G) the metrics that will be utilized to as21 sess the effectiveness of the innovation strategy. 

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 

10 be made to meet changing market conditions, 

11 and an explanation of how these alterations will 

12 ensure 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.’’. 

24 SEC. 102. AUTHORITY TO OFFER NONPOSTAL SERVICES. 

25 (a) SPECIFIC POWER.—Section 404(a) is amended— 

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

2 end; 

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

4 inserting ‘‘; and’’; and 

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

6 ‘‘(9) to provide nonpostal services in accordance 

7 with subsection (e).’’. 

8 (b) NONPOSTAL SERVICES.—Section 404(e) is 

9 amended to read as follows: 

10 ‘‘(e)(1) The Postal Service may provide nonpostal 

11 services that use the processing, transportation, delivery, 

12 retail network, technology, or other resources of the Postal 

13 Service in a manner consistent with the public interest. 

14 ‘‘(2) At least 90 days before offering new nonpostal 

15 services, the Postal Service shall request an advisory opin16 ion from the Postal Regulatory Commission that evaluates 

17 the extent to which the provision of such nonpostal serv18 ices— 

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

20 delivery, retail network, technology, or other re21 sources of the Postal Service; and 

22 ‘‘(B) would be consistent with the public inter23 est. 

24 ‘‘(3) Within 45 days after receiving the request under 

25 paragraph (2), the Postal Regulatory Commission— 

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1 ‘‘(A) shall issue its advisory opinion to the 

2 Postal Service; and 

3 ‘‘(B) shall transmit a copy of such opinion, to4 gether with the original request, to— 

5 ‘‘(i) the Committee on Oversight and Gov6 ernment Reform of the House of Representa7 tives; and 

8 ‘‘(ii) the Committee on Homeland Security 

9 and Governmental Affairs of the Senate. 

10 ‘‘(4) For purposes of this title, the term ‘nonpostal 

11 services’ means services and products other than postal 

12 services as defined in section 102(5), including— 

13 ‘‘(A) check-cashing services; 

14 ‘‘(B) new technology and media services; 

15 ‘‘(C) warehousing and logistics; 

16 ‘‘(D) facility leasing; and 

17 ‘‘(E) public internet access services.’’. 

18 SEC. 103. REQUIREMENT THAT MARKET-DOMINANT PROD19 UCTS COVER ATTRIBUTABLE COSTS. 

20 (a) REPEAL.—Paragraph (2) of section 3622(c) is re21 pealed. 

22 (b) EACH CLASS TO BEAR ATTRIBUTABLE COSTS.— 

23 Section 3622(d)(1) is amended— 

24 (1) by redesignating subparagraphs (A) through 

25 (E) as subparagraphs (B) through (F); 

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1 (2) by inserting before subparagraph (B) (as so 

2 redesignated by paragraph (1)) the following: 

3 ‘‘(A) require that each class or type of mail 

4 service shall bear the direct and indirect postal 

5 costs attributable to such class or type through 

6 reliably identified causal relationships plus that 

7 portion of all other costs of the Postal Service 

8 reasonably assignable to such class or type;’’; 

9 and 

10 (3) in subparagraph (B) (as so redesignated by 

11 paragraph (1)) by inserting ‘‘, excluding changes re12 quired to satisfy subparagraph (A),’’ before ‘‘to be 

13 set’’. 

14 SEC. 104. PRC TO REVISIT CPI CAP INSTITUTED UNDER 

15 PAEA. 

16 Section 3622 is amended— 

17 (1) in subsection (c)— 

18 (A) in paragraph (13), by striking ‘‘and’’ 

19 at the end; 

20 (B) by redesignating paragraph (14) as 

21 paragraph (15); and 

22 (C) by inserting after paragraph (13) the 

23 following: 

24 ‘‘(14) the value to the Postal Service of having 

25 pricing flexibility that would apply a price cap across 

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1 all classes of market dominant products in compari2 son to a class-based price cap; and’’; and 

3 (2) in subsection (d)(3), by striking ‘‘Ten’’ and 

4 inserting ‘‘Seven’’. 

5 SEC. 105. ENHANCED PRODUCT INNOVATION. 

6 (a) DOLLAR-AMOUNT LIMITATION RELATING TO

7 MARKET TESTS OF EXPERIMENTAL PRODUCTS.—Section 

8 3641(e)(1) is amended by striking ‘‘$10,000,000’’ and in9 serting ‘‘$50,000,000’’. 

10 (b) DOLLAR-AMOUNT LIMITATION RELATING TO EX11 EMPTION AUTHORITY.—Section 3641(e)(2) is amended by 

12 striking ‘‘$50,000,000’’ and inserting ‘‘$100,000,000’’. 

13 SEC. 106. AUTHORITY TO SHIP BEER, WINE AND DISTILLED 

14 SPIRITS. 

15 (a) MAILABILITY.— 

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

17 of title 18, United States Code, is amended by strik18 ing ‘‘mails’’ and inserting ‘‘mails, except to the ex19 tent that the mailing is allowable under section 

20 3001(p) of title 39’’. 

21 (2) APPLICATION OF LAWS.—Section 1161 of 

22 title 18, United States Code, is amended, by insert23 ing ‘‘, and, with respect to the mailing of distilled 

24 spirits, wine, or malt beverages (as those terms are 

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1 istration Act (27 U.S.C. 211)), is in conformity with 

2 section 3001(p) of title 39’’ after ‘‘Register’’. 

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

4 States Code, is amended by adding at the end the fol5 lowing: 

6 ‘‘(p)(1) In this subsection, the terms ‘distilled spirits’, 

7 ‘wine’, and ‘malt beverage’ have the same meanings as in 

8 section 117 of the Federal Alcohol Administration Act (27 

9 U.S.C. 211). 

10 ‘‘(2) Distilled spirits, wine, or malt beverages shall 

11 be considered mailable if mailed— 

12 ‘‘(A) in accordance with the laws and regula13 tions of— 

14 ‘‘(i) the State, territory, or district of the 

15 United States where the sender or duly author16 ized agent initiates the mailing; and 

17 ‘‘(ii) the State, territory, or district of the 

18 United States where the addressee or duly au19 thorized agent takes delivery; and 

20 ‘‘(B) to an addressee who is at least 21 years 

21 of age— 

22 ‘‘(i) who provides a signature and presents 

23 a valid, government-issued photo identification 

24 upon delivery; or 

25 ‘‘(ii) the duly authorized agent of whom— 

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1 ‘‘(I) is at least 21 years of age; and 

2 ‘‘(II) provides a signature and pre3 sents a valid, government-issued photo 

4 identification upon delivery. 

5 ‘‘(3) The Postal Service shall prescribe such regula6 tions as may be necessary to carry out this subsection.’’. 

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

8 this section shall take effect on the earlier of— 

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

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

11 States Code, as amended by this section; or 

12 (2) 120 days after the date of enactment of this 

13 Act. 

14 SEC. 107. REPEAL OF UNIFORM RATE FOR BOOKS, FILMS, 

15 AND OTHER MATERIALS. 

16 (a) IN GENERAL.—Section 3683 is repealed. 

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

18 at the beginning of chapter 36 is amended by repealing 

19 the item relating to section 3683. 

20 Subtitle B—Postal Service 

21 Management 

22 SEC. 108. USPS BALANCED BUDGET MINIMUM REQUIRE23 MENT. 

24 Section 404(b) is amended— 

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1 (1) by striking ‘‘(b)’’ and inserting ‘‘(b)(1)’’; 

2 and 

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

4 ‘‘(2) Notwithstanding subparagraphs (B) or (E) of 

5 section 3622(d)(1), within 180 days after the date of en6 actment of this paragraph, the Governors shall ensure that 

7 the rates and fees charged for market dominant products, 

8 and the level and quality of service provided by the Postal 

9 Service, shall be adjusted in accordance with current law 

10 so that the total revenues received by the Postal Service, 

11 in fiscal year 2014 and each subsequent fiscal year, from 

12 all sources are at least equal to the total costs incurred 

13 in the provision of postal services, except that the Gov14 ernors shall continue to provide all public services for 

15 which appropriations are made to the Postal Service under 

16 section 2401. 

17 ‘‘(3) After the end of the 2-year period beginning on 

18 October 1, 2013, for any fiscal year that the Postal Serv19 ice is not in compliance with paragraph (2), the Governors 

20 shall not receive a salary or compensation of any kind for 

21 the following fiscal year, but shall be reimbursed for travel 

22 and reasonable expenses incurred in attending meetings 

23 of the Board.’’. 

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1 SEC. 109. REPORTING REQUIREMENT FOR BOARD OF GOV2 ERNORS AND POSTAL REGULATORY COMMIS3 SIONERS. 

4 (a) BOARD OF GOVERNORS.—Section 202(a) is 

5 amended by adding at the end the following: 

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

7 each fiscal year, the Board of Governors shall sub8 mit an itemized report describing all travel and re9 imbursable business travel expenses paid to each 

10 Governor when performing Board duties to the Com11 mittee on Oversight and Government Reform of the 

12 House of Representatives and the Committee on 

13 Homeland Security and Governmental Affairs of the 

14 Senate. The report submitted under this paragraph 

15 shall include a detailed justification for any travel or 

16 reimbursable business travel expense that deviates 

17 from the Board’s travel and reimbursable business 

18 travel expense policies and guidelines under para19 graph (1).’’. 

20 (b) ADMINISTRATION.—Section 504(d) is amended— 

21 (1) by striking ‘‘(d)’’ and inserting ‘‘(d)(1)’’; 

22 and 

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

24 ‘‘(2) Not later than 60 days after the end of 

25 each fiscal year, the Postal Regulatory Commis26 sioners shall submit an itemized report describing all 

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1 travel and reimbursable business travel expenses 

2 paid to each Commissioner, including the Chairman, 

3 when performing regulatory duties to the Committee 

4 on Oversight and Government Reform of the House 

5 of Representatives and the Committee on Homeland 

6 Security and Governmental Affairs of the Senate. 

7 The report submitted under this paragraph shall in8 clude a detailed justification for any travel or reim9 bursable business travel expense that deviates from 

10 the Commission’s travel and reimbursable business 

11 travel expense policies and guidelines.’’. 

12 SEC. 110. RESTRICTIONS ON POSTAL SERVICE EXECUTIVE 

13 COMPENSATION. 

14 (a) LIMITATIONS ON COMPENSATION.—Section 1003 

15 is amended— 

16 (1) in subsection (a), by striking the last sen17 tence; and 

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

19 ‘‘(e) LIMITATIONS ON COMPENSATION.— 

20 ‘‘(1) RATES OF BASIC PAY.— 

21 ‘‘(A) IN GENERAL.—Subject to subpara22 graph (B), an officer or employee of the Postal 

23 Service may not be paid at a rate of basic pay 

24 that exceeds the rate of basic pay for level II 

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1 of the Executive Schedule under section 5313 

2 of title 5. 

3 ‘‘(B) VERY SENIOR EXECUTIVES.—Not 

4 more than 6 officers or employees of the Postal 

5 Service that are in very senior executive posi6 tions, as determined by the Board of Governors, 

7 may be paid at a rate of basic pay that does not 

8 exceed the rate of basic pay for level I of the 

9 Executive Schedule under section 5312 of title 

10 5. 

11 ‘‘(2) BENEFITS.—An officer or employee of the 

12 Postal Service who is in a critical senior executive or 

13 equivalent position, as designated under section 

14 3686(c), may not receive fringe benefits (within the 

15 meaning given that term under section 1005(f)) that 

16 are greater than the fringe benefits received by su17 pervisory and other managerial personnel who are 

18 not subject to collective-bargaining agreements 

19 under chapter 12.’’. 

20 (b) LIMITATION ON BONUS AUTHORITY.—Section 

21 3686 is amended— 

22 (1) in subsection (a), by striking ‘‘The Postal 

23 Service’’ and inserting ‘‘Subject to subsection (f), 

24 the Postal Service’’; and 

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

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1 ‘‘(f) LIMITATION ON BONUS AUTHORITY.— 

2 ‘‘(1) DETERMINATION.—Not later than 60 days 

3 after the end of fiscal year 2014 and each fiscal year 

4 thereafter, the Office of Management and Budget 

5 shall determine whether the Postal Service has, with 

6 respect to such fiscal year, implemented the meas7 ures needed to achieve long-term solvency and bal8 anced budgeting, as required under paragraphs (2) 

9 and (3) of section 404(b). In order to make such de10 termination, the Office of Management and Budget 

11 shall use the information provided under section 

12 2009. 

13 ‘‘(2) LIMITATION.—The Postal Service may not 

14 provide a bonus or other reward under this section 

15 to an officer or employee of the Postal service in a 

16 critical senior executive or equivalent position, as 

17 designated under subsection (c), during a covered 

18 year. 

19 ‘‘(3) DEFINITION.—In this subsection, the term 

20 ‘covered year’ means the fiscal year following a fiscal 

21 year with respect to which the Office of Management 

22 and Budget determines under paragraph (1) that 

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1 anced budgeting, as required under paragraphs (2) 

2 and (3) of section 404(b).’’. 

3 (c) EFFECTIVE DATE; APPLICABILITY.—The amend4 ments made by subsections (a) through (c) shall— 

5 (1) take effect on the date of enactment of this 

6 Act; and 

7 (2) apply to any contract entered or modified 

8 by the Postal Service on or after the date of enact9 ment of this Act. 

10 (d) SUNSET.—Effective 2 years after the date of en11 actment of this Act— 

12 (1) section 1003 is amended— 

13 (A) in subsection (a), by adding at the end 

14 the following: ‘‘No officer or employee shall be 

15 paid compensation at a rate in excess of the 

16 rate for level I of the Executive Schedule under 

17 section 5312 of title 5.’’; and 

18 (B) by striking subsection (e); and 

19 (2) section 3686 is amended— 

20 (A) in subsection (a), by striking ‘‘Subject 

21 to subsection (f), the Postal Service’’ and in22 serting ‘‘The Postal Service’’; and 

23 (B) by striking subsection (f). 

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1 SEC. 111. INVESTMENT OF COMPETITIVE PRODUCT MON2 EYS. 

3 Section 2003 is amended— 

4 (1) by redesignating subsections (d) through (h) 

5 as subsections (e) through (i), respectively; and 

6 (2) by inserting after subsection (c) the fol7 lowing: 

8 ‘‘(d) Notwithstanding any other provision of this sec9 tion, if the Postal Service determines that the moneys of 

10 the Competitive Products Fund are in excess of current 

11 needs, it may invest such amounts as it considers appro12 priate in accordance with regulations which the Secretary 

13 of the Treasury shall prescribe within 180 days after the 

14 date of enactment of this subsection.’’. 

15 TITLE II—POSTAL SERVICE 

16 WORKFORCE REALIGNMENT 

17 AND RIGHT-SIZING 

18 SEC. 201. SEPARATE NORMAL-COST PERCENTAGE RECAL19 CULATION OF FEDERAL EMPLOYEES RETIRE20 MENT SYSTEM. 

21 (a) IN GENERAL.—Section 8423(a)(1) of title 5, 

22 United States Code, is amended— 

23 (1) in subparagraph (A)— 

24 (A) by striking ‘‘subparagraph (B))’’ and 

25 inserting ‘‘subparagraph (B) or (C))’’; and 

26 (B) by striking ‘‘and’’ at the end; 

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1 (2) in subparagraph (B), by striking the period 

2 and inserting ‘‘; and’’; and 

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

4 ‘‘(C) the product of— 

5 ‘‘(i) the normal-cost percentage, as 

6 determined for employees of the United 

7 States Postal Service (and the Postal Reg8 ulatory Commission), multiplied by 

9 ‘‘(ii) the aggregate amount of basic 

10 pay payable by the United States Postal 

11 Service (and the Postal Regulatory Com12 mission), for the period involved, to its em13 ployees.’’. 

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

15 subsection (a) shall be carried out as soon as practicable, 

16 except that contributions shall be set in accordance with 

17 such amendments not later than the first applicable pay 

18 period beginning in the first fiscal year beginning at least 

19 180 days after the date of the enactment of this Act. 

20 SEC. 202. TREATMENT OF SURPLUS CONTRIBUTIONS TO 

21 FEDERAL EMPLOYEES RETIREMENT SYSTEM. 

22 (a) IN GENERAL.—Section 8423(b) of title 5, United 

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

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1 ‘‘(6)(A) If, for any fiscal year to which this paragraph 

2 applies, the amount determined under paragraph (1)(B) 

3 is less than zero (hereinafter in this paragraph referred 

4 to as ‘excess postal contributions to FERS’), such amount 

5 shall be treated in accordance with the following: 

6 ‘‘(i) In the case of the first fiscal year to which 

7 this paragraph applies and for which excess postal 

8 contributions to FERS are determined, the amount 

9 of such excess contributions shall be transferred by 

10 the Secretary of the Treasury to such account as the 

11 Secretary considers appropriate so that such amount 

12 shall be used for the payment of obligations issued 

13 by the United States Postal Service under section 

14 2005 of title 39. 

15 ‘‘(ii) In the case of any subsequent fiscal year 

16 to which this paragraph applies and for which excess 

17 postal contributions to FERS are determined, the 

18 amount of such excess contributions shall be trans19 ferred by the Secretary of the Treasury to the ac20 count to which are credited any Government con21 tributions which are made by the United States 

22 Postal Service under section 8334(a)(1)(B) (or 

23 which would be made, but for clause (ii) thereof). 

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1 ‘‘(B) This paragraph applies to the fiscal year last 

2 ending before the date of the enactment of this paragraph 

3 and each fiscal year thereafter. 

4 ‘‘(C) In the case of any transfer under subparagraph 

5 (A)(ii) for a fiscal year corresponding to a fiscal year for 

6 which a determination of Postal surplus or supplemental 

7 liability is scheduled to be made under section 8348(h), 

8 the transfer under subparagraph (A)(ii) shall be made be9 fore such determination under section 8348(h) is made.’’. 

10 (b) CONFORMING AMENDMENT.—Section 

11 8348(h)(1)(B)(iii) of title 5, United States Code, is 

12 amended by striking ‘‘principles.’’ and inserting ‘‘prin13 ciples, including any amounts described in section 

14 8423(b)(6)(A)(ii).’’. 

15 SEC. 203. SENSE OF CONGRESS. 

16 It is the sense of Congress that the United States 

17 Postal Service should use its available authority as it 

18 deems necessary to provide early retirement or separation 

19 incentives to eligible Postal Service employees. 

20 SEC. 204. CONTRIBUTIONS TO THRIFT SAVINGS FUND OF 

21 VOLUNTARY SEPARATION INCENTIVE PAY22 MENTS. 

23 (a) Section 8351(b)(2) of title 5, United States Code, 

24 is amended— 

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1 (1) by striking the matter before subparagraph 

2 (C) and inserting the following: 

3 ‘‘(2)(A) An employee or Member may contribute to 

4 the Thrift Savings Fund in any pay period any amount 

5 of such employee’s or Member’s basic pay for such pay 

6 period. 

7 ‘‘(B) An employee may contribute (by direct transfer 

8 to the Fund) any part of any voluntary separation incen9 tive payment that the employee receives under section 

10 3523.’’; and 

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

12 ‘‘(D) Notwithstanding section 2105(e), in this para13 graph, the term ‘employee’ includes an employee of the 

14 United States Postal Service or the Postal Regulatory 

15 Commission.’’. 

16 (b) Section 8432(a) of title 5, United States Code, 

17 is amended— 

18 (1) by redesignating paragraph (3) as (4); 

19 (2) by striking the matter before paragraph (4) 

20 (as so redesignated by paragraph (1)) and inserting 

21 the following: 

22 ‘‘(a)(1) An employee or Member may contribute to 

23 the Thrift Savings Fund in any pay period, pursuant to 

24 an election under subsection (b), any amount of such em25 ployee’s or Member’s basic pay for such pay period. 

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1 ‘‘(2) An employee may contribute (by direct transfer 

2 to the Fund) any part of any voluntary separation incen3 tive payment that the employee receives under section 

4 3523. 

5 ‘‘(3) Contributions made under paragraph (1) pursu6 ant to an election under subsection (b) shall, with respect 

7 to each pay period for which such election remains in ef8 fect, be made in accordance with a program of regular 

9 contributions provided in regulations prescribed by the 

10 Executive Director.’’; and 

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

12 ‘‘(5) Notwithstanding section 2105(e), in this sub13 section the term ‘employee’ includes an employee of the 

14 United States Postal Service or of the Postal Regulatory 

15 Commission.’’. 

16 (c) REGULATIONS.—The Executive Director of the 

17 Federal Retirement Thrift Investment Board shall pro18 mulgate regulations to carry out the amendments made 

19 by this section. 

20 SEC. 205. SERVICE CREDIT CONTRIBUTIONS OF VOL21 UNTARY SEPARATION INCENTIVE PAYMENTS. 

22 (a) VOLUNTARY SEPARATION INCENTIVE PAY23 MENTS.—The Postal Service may provide voluntary sepa24 ration incentive payments to employees of the Postal Serv25 ice who voluntarily separate from service before October 

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1 1, 2016 (including payments to employees who retire 

2 under section 8336(d)(2) or 8414(b)(1)(B) of title 5, 

3 United States Code, before October 1, 2016), which may 

4 not exceed the maximum amount provided under section 

5 3523(b)(3)(B) of title 5, United States Code, for any em6 ployee. 

7 (b) ADDITIONAL SERVICE CREDIT.— 

8 (1) CIVIL SERVICE RETIREMENT SYSTEM.—Sec9 tion 8332 of title 5, United States Code, is amended 

10 by adding at the end the following: 

11 ‘‘(p)(1)(A) For an employee of the United States 

12 Postal Service who is covered under this subchapter and 

13 voluntarily separates from service before October 1, 2016, 

14 the Office, if so directed by the United States Postal Serv15 ice, shall add not more than 1 year to the total creditable 

16 service of the employee for purposes of determining enti17 tlement to and computing the amount of an annuity under 

18 this subchapter (except for a disability annuity under sec19 tion 8337). 

20 ‘‘(B) An employee who receives additional creditable 

21 service under this paragraph may not receive a voluntary 

22 separation incentive payment from the United States 

23 Postal Service. 

24 ‘‘(2) The United States Postal Service shall ensure 

25 that the average actuarial present value of the additional 

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1 liability of the United States Postal Service to the Fund 

2 resulting from additional creditable service provided under 

3 paragraph (1) or section 8411(m)(1) is not more than 

4 $25,000 per employee provided additional creditable serv5 ice under paragraph (1) or section 8411(m)(1). 

6 ‘‘(3)(A) Subject to subparagraph (B), and notwith7 standing any other provision of law, no deduction, deposit, 

8 or contribution shall be required for service credited under 

9 this subsection. 

10 ‘‘(B) The actuarial present value of the additional li11 ability of the United States Postal Service to the Fund 

12 resulting from this subsection shall be included in the 

13 amount calculated under section 8348(h)(1)(A).’’. 

14 (2) FEDERAL EMPLOYEES RETIREMENT SYS15 TEM.—Section 8411 of title 5, United States Code, 

16 is amended by adding at the end the following: 

17 ‘‘(m)(1)(A) For an employee of the United States 

18 Postal Service who is covered under this chapter and vol19 untarily separates from service before October 1, 2016, 

20 the Office, if so directed by the United States Postal Serv21 ice, shall add not more than 2 years to the total creditable 

22 service of the employee for purposes of determining enti23 tlement to and computing the amount of an annuity under 

24 this chapter (except for a disability annuity under sub25 chapter V of that chapter). 

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1 ‘‘(B) An employee who receives additional creditable 

2 service under this paragraph may not receive a voluntary 

3 separation incentive payment from the United States 

4 Postal Service. 

5 ‘‘(2) The United States Postal Service shall ensure 

6 that the average actuarial present value of the additional 

7 liability of the United States Postal Service to the Fund 

8 resulting from additional creditable service provided under 

9 paragraph (1) or section 8332(p)(1) is not more than 

10 $25,000 per employee provided additional creditable serv11 ice under paragraph (1) or section 8332(p)(1). 

12 ‘‘(3)(A) Subject to subparagraph (B), and notwith13 standing any other provision of law, no deduction, deposit, 

14 or contribution shall be required for service credited under 

15 this subsection. 

16 ‘‘(B) The actuarial present value of the additional li17 ability of the United States Postal Service to the Fund 

18 resulting from this subsection shall be included in the 

19 amount calculated under section 8423(b)(1)(B).’’. 

20 (c) GOALS.— 

21 (1) IN GENERAL.—The Postal Service shall 

22 offer incentives for voluntary separation under this 

23 section and the amendments made by this section as 

24 a means of ensuring that the size and cost of the 

25 workforce of the Postal Service is appropriate to the 

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1 work required of the Postal Service, including con2 sideration of— 

3 (A) the closure and consolidation of postal 

4 facilities; 

5 (B) the ability to operate existing postal 

6 facilities more efficiently, including by reducing 

7 the size or scope of operations of postal facili8 ties in lieu of closing postal facilities; and 

9 (C) the number of employees eligible, or 

10 projected in the near-term to be eligible, for re11 tirement, including early retirement. 

12 (2) DEFINITION.—In this subsection, the term 

13 ‘‘career employee of the Postal Service’’ means an 

14 employee of the Postal Service— 

15 (A) whose appointment is not for a limited 

16 period; and 

17 (B) who is eligible for benefits, including 

18 retirement coverage under chapter 83 or 84 of 

19 title 5, United States Code. 

20 SEC. 206. MODIFICATION OF PREPAYMENT SCHEDULE RE21 LATING TO POSTAL SERVICE RETIREE 

22 HEALTH BENEFITS FUND. 

23 (a) CONTRIBUTIONS.—Section 8906(g)(2)(A) of title 

24 5, United States Code, is amended by striking ‘‘through 

25 September 30, 2016, be paid by the United States Postal 

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1 Service, and thereafter shall’’ and inserting ‘‘after the date 

2 of enactment of the Innovate to Deliver Act of 2013’’. 

3 (b) POSTAL SERVICE RETIREE HEALTH BENEFITS

4 FUND.—Section 8909a(d) of title 5, United States Code, 

5 is amended— 

6 (1) by striking paragraph (2) and inserting the 

7 following: 

8 ‘‘(2)(A) Not later than 180 days after the date of 

9 enactment of the Innovate to Deliver Act of 2013, the Of10 fice shall compute, and by June 30 of each succeeding 

11 year, the Office shall recompute, a schedule including a 

12 series of annual installments which provide for the liquida13 tion of the amount described under subparagraph (B) (re14 gardless of whether the amount is a liability or surplus) 

15 by September 30, 2053, or within 15 years, whichever is 

16 later, including interest at the rate used in the computa17 tions under this subsection. 

18 ‘‘(B) The amount described in this subparagraph is 

19 the amount, as of the date on which the applicable com20 putation or recomputation under subparagraph (A) is 

21 made, that is equal to the difference between— 

22 ‘‘(i) 80 percent of the Postal Service actuarial 

23 liability as of September 30 of the most recently 

24 ended fiscal year; and 

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1 ‘‘(ii) the value of the assets of the Postal Re2 tiree Health Benefits Fund as of September 30 of 

3 the most recently ended fiscal year.’’; 

4 (2) in paragraph (3)— 

5 (A) in subparagraph (A)— 

6 (i) in clause (iii), by adding ‘‘and’’ at 

7 the end; 

8 (ii) in clause (iv), by striking the 

9 semicolon at the end and inserting a pe10 riod; and 

11 (iii) by striking clauses (v) through 

12 (x); and 

13 (B) in subparagraph (B), by striking 

14 ‘‘2017’’ and inserting ‘‘2016’’; 

15 (3) by striking paragraph (4) and inserting the 

16 following: 

17 ‘‘(4) Computations under this subsection shall be 

18 based on— 

19 ‘‘(A) economic and actuarial methods and as20 sumptions consistent with the methods and assump21 tions used in determining the Postal surplus or sup22 plemental liability under section 8348(h); and 

23 ‘‘(B) any other methods and assumptions, in24 cluding a health care cost trend rate, that the Direc25 tor of the Office determines to be appropriate.’’; and 

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1 (4) by adding at the end the following: 

2 ‘‘(7) In this subsection, the term ‘Postal Service actu3 arial liability’ means the difference between— 

4 ‘‘(A) the net present value of future payments 

5 required under section 8906(g)(2)(A) for current 

6 and future United States Postal Service annuitants; 

7 and 

8 ‘‘(B) the net present value as computed under 

9 paragraph (1) attributable to the future service of 

10 United States Postal Service employees.’’. 

11 (c) UNPAID OBLIGATIONS OF THE POSTAL SERV12 ICE.—Any obligation of the Postal Service under section 

13 8909a(d)(3)(A) of title 5, United States Code, as in effect 

14 on the day before the date of enactment of this Act, that 

15 remains unpaid as of such date of enactment shall be in16 cluded in the recomputation requested in section 

17 8909a(d)(2) of such title (as amended by subsection (b) 

18 of this section). 

19 (d) TECHNICAL AND CONFORMING AMENDMENTS.— 

20 (1) HEADING.—The heading of section 8909a 

21 of title 5, United States Code, is amended by strik22 ing ‘‘Benefit’’ and inserting ‘‘Benefits’’. 

23 (2) TABLE OF SECTIONS.—The table of sections 

24 at the beginning of chapter 89 of such title is 

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1 amended by striking the item relating to section 

2 8909a and inserting the following: 

‘‘8909a. Postal Service Retiree Health Benefits Fund.’’. 

3 SEC. 207. STUDY ON USPS WORKFORCE REALIGNMENT AND 

4 RIGHT-SIZING OPTIONS. 

5 (a) IN GENERAL.—Not later than 1 year after the 

6 date of enactment of this Act, the Comptroller General 

7 shall submit to the Committee on Oversight and Govern8 ment Reform of the House of Representatives and the 

9 Committee on Homeland Security and Governmental Af10 fairs of the Senate a report on the workforce reduction 

11 or realignment methods used by the United States Postal 

12 Service to align its workforce with its needs. 

13 (b) CONTENTS OF THE REPORT.—The report re14 quired under subsection (a) shall include the following: 

15 (1) The projected workforce needs of the Postal 

16 Service over the next 5 fiscal years, given the cur17 rent mail volumes and the demand for Postal serv18 ices. 

19 (2) Possible options for allowing Postal Service 

20 employees who are eligible for voluntary early retire21 ment to deposit voluntary separation incentive pay22 ments to obtain service credit or to otherwise allow 

23 such payments to be credited in the computation of 

24 retirement annuity benefits. 

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1 (3) The terms and conditions for the voluntary 

2 separation incentive payments offered under section 

3 205. 

4 (4) The number of employees in each job cat5 egory and in each postal service area to whom the 

6 Postal Service has offered an incentive for voluntary 

7 separation, the number of offers of incentives for 

8 voluntary separation that have been accepted, the 

9 number of offers of incentives for voluntary separa10 tion that remain pending, and the number of em11 ployees in each job category and in each postal serv12 ice area projected to separate from service during 

13 each quarter through the end of the first quarter of 

14 2016. 

15 (5) The number of employees in each job cat16 egory who are covered under chapter 83 or 84 of 

17 title 5, United States Code, and who have accepted 

18 offers of incentives for voluntary separation, includ19 ing the number of employees covered under each 

20 chapter who voluntarily separated under subsection 

21 (a) of section 205 or the authority under subsection 

22 (b) of section 205. 

23 (6) The total savings and work hour reductions 

24 by job category and postal service area that have 

25 been realized by the Postal Service as of the date of 

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1 the report and that are projected to be realized dur2 ing each of the next 3 years as a result of the offers 

3 of incentives for voluntary separation. 

4 (7) The total expenditures made by the Postal 

5 Service to provide incentives for voluntary separa6 tion. 

7 (8) Any training, retraining, or hiring that may 

8 be required by the authority the Postal Service is 

9 granted under this Act to develop and offer for sale 

10 nonpostal products and services. 

11 SEC. 208. APPLICABILITY OF PROVISIONS RELATING TO RE12 DUCTIONS IN FORCE. 

13 Section 1005 is amended by adding at the end the 

14 following: 

15 ‘‘(g)(1) Except as otherwise provided by any collective 

16 bargaining agreement entered into under chapter 12, the 

17 provisions of subchapter I of chapter 35 of title 5 and the 

18 regulations implementing such subchapter, shall apply to 

19 employees of the Postal Service who hold positions that 

20 are within bargaining units under section 1202. 

21 ‘‘(2) Before using the authority provided in para22 graph (1), the Postal Service shall demonstrate to the Of23 fice of Personnel Management how it will comply with sec24 tion 3502(a)(4) of title 5.’’. 

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1 SEC. 209. ENHANCED REPORTING ON FACILITY NETWORK 

2 INITIATIVES. 

3 Section 404(d) is amended by adding at the end the 

4 following: 

5 ‘‘(7)(A) The Postmaster General shall submit to the 

6 Committee on Homeland Security and Governmental Af7 fairs of the Senate and the Committee on Oversight and 

8 Government Reform of the House of Representatives and 

9 the Postal Regulatory Commission a report that details 

10 plans to close or suspend a Postal Service retail or proc11 essing facility during the period to which such report per12 tains. The first such report shall be submitted not later 

13 than 120 days after the date of enactment of this para14 graph. Reports shall be submitted semiannually there15 after. 

16 ‘‘(B) Each report submitted by the Postal Service 

17 under subparagraph (A) shall address, at a minimum— 

18 ‘‘(i) the specific retail and processing facilities 

19 the Postal Service plans to suspend or close; 

20 ‘‘(ii) the anticipated date of suspension or clo21 sure of each such facility; 

22 ‘‘(iii) the cost of continued operations at the fa23 cilities for which closure is planned; 

24 ‘‘(iv) the purpose of each such suspension or 

25 closure, as determined by paragraph (2)(A); 

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1 ‘‘(v) plans for the establishment of alternative 

2 access points for retail facilities listed in clause (i), 

3 including the date on which each such alternative ac4 cess point shall open for business and the planned 

5 location of each such alternative access point; 

6 ‘‘(vi) how each facility closure conforms with 

7 previously filed actions for suspension or closure; 

8 ‘‘(vii) the timeline for closure or suspension ac9 tivities described in paragraphs (1) and (3), and all 

10 other formal closure or suspension activities planned 

11 in connection with the retail facility closure; 

12 ‘‘(viii) how work performed at mail processing 

13 facilities recommended for closure or consolidation 

14 will be transferred or absorbed by other facilities 

15 within the network; 

16 ‘‘(ix) cost savings expected or achieved from 

17 consolidation of both retail and mail processing fa18 cilities; 

19 ‘‘(x) the impact of each planned closure on 

20 postal employees, including relocation or reassign21 ment plans; and 

22 ‘‘(xi) the status of ongoing suspensions or clo23 sures identified in previous reports.’’. 

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1 TITLE III—POSTAL SERVICE IM2 PROVEMENTS AND REGU3 LATORY RELIEF 

4 SEC. 301. PERMIT APPEAL RIGHTS FOR CLOSING OF POST5 AL STATIONS AND BRANCHES. 

6 Section 404(d) is amended by adding after paragraph 

7 (7) (as added by section 208 of this Act) the following: 

8 ‘‘(8) The provisions of paragraphs (1) through (6) 

9 shall apply to postal stations and branches in the same 

10 manner as the provisions apply to post offices.’’. 

11 SEC. 302. INTRA-AGENCY COOPERATIVE AGREEMENTS. 

12 (a) IN GENERAL.—Section 411 is amended— 

13 (1) in the section heading, by inserting ‘‘; au14 thority for intra-service agreement’’ after 

15 ‘‘agencies’’; 

16 (2) by inserting ‘‘(a)’’ before ‘‘Executive agen17 cies within’’; and 

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

19 ‘‘(b) The Office of the Inspector General of the 

20 United States Postal Service and other components of the 

21 Postal Service may enter into intra-service agreements to 

22 furnish to each other property, both real and personal, and 

23 personal and nonpersonal services. The furnishing of prop24 erty and services under this section shall be under such 

25 terms and conditions, including reimbursability, as the 

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1 head of the component concerned and the Inspector Gen2 eral shall deem necessary.’’. 

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

4 at the beginning of chapter 4 is amended by striking the 

5 item relating to section 411 and inserting the following: 

‘‘411. Cooperation with other Government agencies; authority for intra-service 

agreement.’’. 

6 SEC. 303. GROUPING OF NEGOTIATED SERVICE AGREE7 MENTS. 

8 Section 3622(d)(1) (as amended by section 107(b) of 

9 this Act) is further amended— 

10 (1) in subparagraph (E) (as so redesignated by 

11 section 107(b)), by striking ‘‘and’’ at the end; 

12 (2) in subparagraph (F) (as so redesignated by 

13 section 107(b)), by striking the period and inserting 

14 ‘‘; and’’; and 

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

16 ‘‘(G) treat similar or related agreements 

17 between the Postal Service and postal users col18 lectively as a single product for purposes of this 

19 section to the extent the Commission deems 

20 such treatment to be consistent with policies of 

21 this title.’’. 

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1 SEC. 304. SIMPLIFICATION OF PROCESS FOR CLASSIFICA2 TION OF COMPETITIVE PRODUCTS. 

3 Section 3642(b) is amended (in the matter before 

4 paragraph (1)) by striking ‘‘in accordance with’’ and in5 serting the following: ‘‘as expeditiously as practicable. The 

6 Commission shall promptly admit a product into the com7 petitive category if it meets’’. 

8 SEC. 305. DEVELOPMENT OF NEW MARKET-DOMINANT 

9 CLASSES OF MAIL. 

10 (a) Section 102 is amended— 

11 (1) in paragraph (9), by striking ‘‘and’’ at the 

12 end; 

13 (2) in paragraph (10), by striking the period 

14 and inserting ‘‘; and’’; and 

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

16 ‘‘(11) ‘class of mail’ means a grouping of simi17 lar products, subject to section 3622(d)(2)(A), as 

18 further defined by the Postal Regulatory Commis19 sion.’’. 

20 (b) Section 3622(d)(2)(A) is amended by inserting 

21 ‘‘or under section 3643’’ after ‘‘Act’’. 

22 (c)(1) Subchapter III of chapter 36 is amended by 

23 adding at the end the following: 

24 ‘‘SEC. 3643. NEW CLASSES OF MAIL. 

25 ‘‘(a) IN GENERAL.—Upon request of the Postal Serv26 ice or users of the mails, or upon its own initiative, the 

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1 Postal Regulatory Commission may change the classes of 

2 mail to which the annual limitation under section 

3 3622(d)(1) applies by adding new classes of mail. The 

4 Postal Regulatory Commission shall, within 18 months 

5 after the date of enactment of this section, promulgate 

6 (and may from time to time thereafter revise) regulations 

7 to carry out this section. 

8 ‘‘(b) CRITERIA.—All determinations by the Postal 

9 Regulatory Commission under subsection (a) shall be 

10 made in accordance with the following criteria: 

11 ‘‘(1) NEW MARKET.—Dominant classes of mail 

12 shall consist of products in the sale of which the 

13 Postal Service exercises sufficient market power that 

14 it can effectively set the price of such product sub15 stantially above costs, raise prices significantly, de16 crease quality, or decrease output, without risk of 

17 losing a significant level of business to other firms 

18 offering similar products. 

19 ‘‘(2) PRODUCTS COVERED BY POSTAL MONOP20 OLY.—Any new classes of mail containing any prod21 ucts covered by the postal monopoly shall be subject 

22 to the requirements of section 3622(d)(1). For pur23 poses of the preceding sentence, the term ‘product 

24 covered by the postal monopoly’ means any product 

25 the conveyance or transmission of which is reserved 

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1 to the United States under section 1696 of title 18, 

2 subject to the same exception as set forth in the last 

3 sentence of section 409(e)(1). 

4 ‘‘(3) ADDITIONAL CONSIDERATIONS.—In mak5 ing any decision under this section, due regard shall 

6 be given to— 

7 ‘‘(A) the availability and nature of enter8 prises in the private sector engaged in the deliv9 ery of the product involved; 

10 ‘‘(B) the views of those who use the prod11 uct involved on the appropriateness of the pro12 posed action; and 

13 ‘‘(C) the likely impact of the proposed ac14 tion on small business concerns (within the 

15 meaning of section 3641(h)). 

16 ‘‘(c) NOTIFICATION AND PUBLICATION REQUIRE17 MENTS.— 

18 ‘‘(1) NOTIFICATION REQUIREMENT.—The Post19 al Service shall, whenever it requests to add a new 

20 class of mail, file with the Postal Regulatory Com21 mission and publish in the Federal Register a notice 

22 setting out the basis for its determination that the 

23 product satisfies the criteria under subsection (b). 

24 The provisions of section 504(g) shall be available 

25 with respect to any information required to be filed. 

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1 ‘‘(2) PUBLICATION REQUIREMENT.—The Postal 

2 Regulatory Commission shall, whenever it changes 

3 the list of market-dominant classes of mail, prescribe 

4 new lists of classes of mail. The revised lists shall 

5 indicate how and when any previous lists are super6 seded, and shall be published in the Federal Reg7 ister. 

8 ‘‘(d) PROHIBITION.—Except as provided in section 

9 3641, a class of mail that involves the physical delivery 

10 of letters, printed matter, or packages may be offered by 

11 the Postal Service unless it has been assigned as a new 

12 class of mail— 

13 ‘‘(1) under this subchapter; or 

14 ‘‘(2) by or under any other provision of law.’’. 

15 (2) The table of sections at the beginning of chapter 

16 36 is amended by inserting after the item relating to sec17 tion 3642 the following: 

‘‘3643. New classes of mail.’’. 

18 SEC. 306. EXPEDITED CONSIDERATION OF SERVICE 

19 CHANGES BY PRC. 

20 Section 3661 is amended— 

21 (1) by redesignating subsection (c) as sub22 section (d); and 

23 (2) by inserting after subsection (b) the fol24 lowing: 

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1 ‘‘(c) If the Postal Service seeks expedited processing 

2 for time-sensitive advisory opinions, it shall state such re3 quest in its proposal filed under subsection (b) and the 

4 Commission, to the extent practical and in accordance 

5 with subsection (d), shall comply with the request for ex6 pedited consideration.’’. 

Æ 

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