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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2748 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 2748

 To restore the financial solvency of the United States Postal Service 
and to ensure the efficient and affordable nationwide delivery of mail.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 19, 2013

  Mr. Issa (for himself, Mr. Farenthold, and Mr. Ross) introduced the 
 following bill; which was referred to the Committee on Oversight and 
                           Government Reform

_______________________________________________________________________

                                 A BILL

 
 To restore the financial solvency of the United States Postal Service 
and to ensure the efficient and affordable nationwide delivery of mail.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS; REFERENCES.

    (a) Short Title.--This Act may be cited as the ``Postal Reform Act 
of 2013''.
    (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.
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.
    (c) References.--Except as otherwise expressly provided, whenever 
in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of title 
39, United States Code.

SEC. 2. DEFINITIONS.

    For the purposes of this Act--
            (1) the term ``Postal Service'' means the United States 
        Postal Service;
            (2) the term ``postal retail facility'' means a post 
        office, post office branch, post office classified station, or 
        other facility which is operated by the Postal Service, and the 
        primary function of which is to provide retail postal services, 
        but does not include a contractor-operated facility offering 
        postal services;
            (3) the term ``district office'' means the central office 
        of an administrative field unit with responsibility for postal 
        operations in a designated geographic area (as defined under 
        regulations, directives, or other guidance of the Postal 
        Service, as in effect on January 1, 2013); and
            (4) the term ``area office'' means the central office of an 
        administrative field unit with responsibility for postal 
        operations in a designated geographic area which is comprised 
        of designated geographic areas as referred to in paragraph (3).

                 TITLE I--POSTAL SERVICE MODERNIZATION

SEC. 101. NATIONWIDE MAIL DELIVERY SCHEDULE.

    (a) In General.--Section 404 is amended by inserting after 
subsection (e) the following:
    ``(f)(1) The Postal Service may establish a general, nationwide 
mail delivery schedule of 5 days per week.
    ``(2) The Postal Service shall ensure that under any schedule 
established under paragraph (1), there shall not occur more than 2 
consecutive days on which mail is not delivered, including as a result 
of Federal holidays.
    ``(3) For a period not to end before December 31, 2018, the Postal 
Service shall provide domestic competitive product service 6 days per 
week to each street address that was scheduled to receive package 
service 6 days per week as of September 30, 2012.
    ``(4) Nothing in this section shall be construed to authorize a 
reduction, or to require an increase, in frequency of mail delivery for 
any address for which the Postal Service provided delivery on fewer 
than 6 days per week as of January 1, 2013.''.
    (b) Mailbox Access.--If the Postal Service establishes a general, 
nationwide mail delivery schedule of 5 days per week, consistent with 
the provisions of section 404 of title 39, United States Code, as 
amended by subsection (a), the Postal Service shall amend the Mailing 
Standards of the United States Postal Service (as set forth in the 
Domestic Mail Manual) to ensure that the provisions of section 
508.3.2.10 of such Manual, as in effect on September 30, 2012, shall 
apply on any day on which the Postal Service does not deliver mail 
under the established delivery schedule.

SEC. 102. DELIVERY-POINT MODERNIZATION.

    (a) In General.--Subchapter VII of chapter 36 is amended by adding 
at the end the following:
``Sec. 3692. Delivery-point modernization
    ``(a) Definitions.--For the purposes of this section--
            ``(1) the term `delivery point' means a mailbox or other 
        receptacle to which mail is delivered;
            ``(2) the term `primary mode of mail delivery' means the 
        typical method by which the Postal Service delivers letter mail 
        to the delivery point of a postal patron;
            ``(3) the term `door delivery' means a primary mode of mail 
        delivery whereby mail is placed into a slot or receptacle at or 
        near the postal patron's door or is hand delivered to a postal 
        patron, but does not include curbside or centralized delivery;
            ``(4) the term `centralized delivery' means a primary mode 
        of mail delivery whereby mail receptacles of a number of 
        delivery points are grouped or clustered at a single location; 
        and
            ``(5) the term `curbside delivery' means a primary mode of 
        mail delivery whereby a mail receptacle is situated at the edge 
        of a sidewalk abutting a road or curb, at a road, or at a curb.
    ``(b) Policy.--It shall be the policy of the Postal Service to use 
the most cost-effective primary mode of mail delivery feasible for 
postal patrons.
    ``(c) Phaseout of Door Delivery.--
            ``(1) New addresses.--Subject to paragraph (4), the Postal 
        Service shall implement a program, wherever feasible, to 
        provide a primary mode of mail delivery other than door 
        delivery to new addresses established after the date of 
        enactment of this section.
            ``(2) Business address conversion.--Subject to paragraph 
        (4), the Postal Service shall implement a program to convert 
        existing business addresses with door delivery to centralized 
        delivery to the maximum extent feasible. In cases in which 
        conversion to centralized delivery is impractical, conversion 
        to curbside delivery shall be implemented to the maximum extent 
        feasible.
            ``(3) Residential address conversion.--
                    ``(A) Identification.--Within one year after the 
                date of enactment of this section, each district office 
                shall identify residential addresses within its service 
                area that are appropriate candidates for conversion 
                from door delivery to curbside or centralized delivery, 
                in accordance with standards established by the Postal 
                Service.
                    ``(B) Voluntary conversion.--Subject to paragraph 
                (4), the Postal Service shall seek to voluntarily 
                convert the delivery points identified under 
                subparagraph (A) from door delivery to more cost-
                effective primary modes of mail delivery.
                    ``(C) Procedures.--In carrying out conversions 
                under subparagraph (B), the Postal Service shall 
                establish procedures to--
                            ``(i) solicit, consider, and respond to 
                        input from postal patrons, State and local 
                        governments, local associations, and property 
                        owners; and
                            ``(ii) place centralized delivery points in 
                        locations that maximize delivery efficiency, 
                        ease of use for postal patrons, and respect for 
                        private property rights.
            ``(4) Considerations.--In making any determination to 
        convert the primary mode of mail delivery for an existing 
        address from door delivery to any other primary mode of mail 
        delivery, or to provide a primary mode of mail delivery to a 
        new address, the Postal Service may consider--
                    ``(A) the impact of weather conditions, physical 
                barriers, or any other factor that may impact the 
                feasibility of providing a primary mode of mail 
                delivery other than door delivery (such as a factor 
                that may significantly reduce the potential cost 
                savings associated with providing centralized or 
                curbside delivery);
                    ``(B) whether the address is in a registered 
                historic district (as that term is defined in section 
                47(c)(3)(B) of the Internal Revenue Code of 1986) is 
                listed on the National Register of Historic Places, or 
                is of historic value; and
                    ``(C) population density and the concentration of 
                poverty.
            ``(5) Waiver for physical hardship.--The Postal Service 
        shall establish and maintain a waiver program under which, upon 
        application, door delivery may be continued, or provided, at no 
        cost to the applicant in any case in which--
                    ``(A) centralized or curbside delivery would, but 
                for this paragraph, otherwise be the primary mode of 
                mail delivery; and
                    ``(B) door delivery is necessary in order to avoid 
                causing significant physical hardship to a postal 
                patron.
            ``(6) Legacy door delivery service.--
                    ``(A) In general.--The Postal Service may continue 
                to provide, for a fee to be paid by the addressee, door 
                delivery to an address that received door delivery as 
                of January 1, 2013, but was converted to a different 
                primary mode of mail delivery as a result of the 
                requirements of subsection (d).
                    ``(B) Offset.--The fee shall, when taken in the 
                nationwide aggregate, offset the additional cost to the 
                Postal Service for door delivery (compared to the cost 
                of the primary mode of mail delivery which would 
                otherwise exist for such address) as a result of the 
                requirements of subsection (d).
                    ``(C) Requirements.--The fee shall be subject to 
                the requirements of section 3622(d)(1)(B) and the 
                Postmaster General may by regulation prescribe the 
                method of the fee's calculation.
    ``(d) Modernization Requirement.--
            ``(1) Minimum points to be converted.--Not later than 
        September 30, 2022, the Postal Service shall convert not less 
        than 30,000,000 of the door delivery points extant on December 
        31, 2012, to centralized or curbside delivery.
            ``(2) Conversion order.--In determining which delivery 
        points to convert under paragraph (1), postal patrons who 
        voluntarily agree to convert their delivery point or points 
        under subsection (c)(3) shall take precedence over any other 
        conversions to the greatest extent practicable.
            ``(3) Funding and repayment.--Until September 30, 2022, the 
        Postal Service may withdraw funds from the Postal Service 
        Delivery-Point Modernization Fund to carry out the purposes of 
        this section. All savings accrued by the Postal Service from 
        conversions under this subsection shall be repaid to the Fund 
        on a monthly basis until all funds have been repaid. All funds 
        withdrawn under this paragraph must be repaid not later than 
        September 30, 2023.
            ``(4) Voucher program.--The Postal Service shall, in 
        accordance with such standards and procedures as the Postal 
        Service shall by regulation prescribe, provide for a voucher 
        program, funded through the Postal Service Delivery Point 
        Modernization Fund, under which, upon application, the Postal 
        Service may defray all or any portion of the costs associated 
        with conversion from door delivery under this section which 
        would otherwise be borne by postal patrons.
            ``(5) Treatment of exemption.--Addresses receiving door 
        delivery or legacy door delivery as a result of paragraph (5) 
        or (6) of subsection (c)--
                    ``(A) shall be counted as addresses that receive 
                the primary mode of mail delivery which the address 
                would be subject to if not for the applicable 
                exemption; and
                    ``(B) shall, within 30 days after ceasing to meet 
                the requirements of such paragraph (5) or (6), as 
                applicable, be converted to the primary mode of mail 
                delivery which was otherwise applicable.
            ``(6) Annual reports.--Not later than 60 days after the end 
        of each of fiscal years 2013 through 2023, the Postal Service 
        shall submit to Congress and the Inspector General of the 
        Postal Service a report on the implementation of this section 
        during the most recently completed fiscal year. Each such 
        report shall include--
                    ``(A) the number of residential and business 
                addresses that--
                            ``(i) receive door delivery as of the end 
                        of the fiscal year preceding the most recently 
                        completed fiscal year;
                            ``(ii) receive door delivery as of the end 
                        of the most recently completed fiscal year; and
                            ``(iii) during the most recently completed 
                        fiscal year, were converted from door delivery 
                        to--
                                    ``(I) centralized delivery points;
                                    ``(II) curbside delivery points; 
                                and
                                    ``(III) any other primary mode of 
                                mail delivery, respectively;
                    ``(B) the estimated cost savings from the 
                conversions described in subparagraph (A)(iii);
                    ``(C) a description of the progress made by the 
                Postal Service toward meeting the requirements of 
                subsection (c) and paragraph (1) of this subsection; 
                and
                    ``(D) any other information which the Postal 
                Service considers appropriate.
    ``(e) Review.--Subchapters IV and V shall not apply with respect to 
any action taken by the Postal Service under this section.''.
    (b) Clerical Amendment.--The table of sections for chapter 36 is 
amended by adding after the item relating to section 3691 the 
following:

``3692. Delivery-point modernization.''.

SEC. 103. EFFICIENT AND FLEXIBLE UNIVERSAL POSTAL SERVICE.

    (a) Postal Policy.--
            (1) In general.--Section 101(b) is amended to read as 
        follows:
    ``(b) The Postal Service shall provide effective and regular postal 
services to rural areas, communities, and small towns where post 
offices are not self-sustaining.''.
            (2) Conforming amendment.--Clause (iii) of section 
        404(d)(2)(A) is amended to read as follows:
                    ``(iii) whether such closing or consolidation is 
                consistent with the policy of the Government, as stated 
                in section 101(b), that the Postal Service shall 
                provide effective and regular postal services to rural 
                areas, communities, and small towns where post offices 
                are not self-sustaining;''.
    (b) General Duty.--Paragraph (3) of section 403(b) is amended to 
read as follows:
            ``(3) to ensure that postal patrons throughout the Nation 
        will, consistent with reasonable economies of postal 
        operations, have ready access to essential postal services.''.
    (c) Conditions.--Clause (i) of section 404(d)(2)(A) is amended to 
read as follows:
                    ``(i) the effect of such closing or consolidation 
                on the community served by such post office, including 
                through an analysis of such factors as--
                            ``(I) the distance (as measured by public 
                        roads) to the closest postal retail facility 
                        not proposed for closure or consolidation under 
                        such plan;
                            ``(II) the characteristics of such 
                        location, including weather and terrain;
                            ``(III) whether commercial mobile service 
                        (as defined in section 332 of the 
                        Communications Act of 1934) and commercial 
                        mobile data service (as defined in section 6001 
                        of the Middle Class Tax Relief and Job Creation 
                        Act of 2012) are available in at least 80 
                        percent of the total geographic area of the ZIP 
                        codes served by the postal retail facility 
                        proposed for closure or consolidation; and
                            ``(IV) whether fixed broadband Internet 
                        access service is available to households in at 
                        least 80 percent of such geographic area at 
                        speeds not less than those sufficient for 
                        service to be considered broadband for purposes 
                        of the most recent report of the Federal 
                        Communications Commission under section 706 of 
                        the Telecommunications Act of 1996;''.
    (d) PRC Review of Determinations To Close or Consolidate a Post 
Office.--
            (1) Deadline for review.--Section 404(d)(5) is amended by 
        striking ``120 days'' and inserting ``60 days''.
            (2) Exclusion from review.--Section 404(d) is amended by 
        adding at the end the following:
    ``(7)(A) The appeals process set forth in paragraph (5) shall not 
apply to a determination of the Postal Service to close a post office 
if there is located, within 2 miles of such post office, a qualified 
contract postal unit.
    ``(B) For purposes of this paragraph--
            ``(i) the term `contract postal unit' means a store or 
        other place of business which--
                    ``(I) is not owned or operated by the Postal 
                Service; and
                    ``(II) in addition to its usual operations, 
                provides postal services to the general public under 
                contract with the Postal Service; and
            ``(ii) the term `qualified contract postal unit', as used 
        in connection with a post office, means a contract postal unit 
        which--
                    ``(I) begins to provide postal services to the 
                general public during the period--
                            ``(aa) beginning 1 year before the date on 
                        which the closure or consolidation of such post 
                        office is scheduled to take effect; and
                            ``(bb) ending on the 15th day after the 
                        date on which the closure or consolidation of 
                        such post office is scheduled to take effect; 
                        and
                    ``(II) has not, pursuant to subparagraph (A), 
                served as the basis for exempting any other post office 
                from the appeals process set forth in paragraph (5).
    ``(C)(i) If the qualified contract postal unit does not continue to 
provide postal services, as required by subparagraph (B)(i)(II), for at 
least the 2-year period beginning on the date on which such post office 
was closed or, if later, the date on which such unit began providing 
postal services to the general public, the contract postal unit shall 
be subject to a closure determination by the Postal Service to decide 
whether a post office must be reopened within the area (delimited by 
the 2-mile radius referred to in subparagraph (A)).
    ``(ii) A decision under clause (i) not to reopen a post office may 
be appealed to the Postal Regulatory Commission under procedures which 
the Commission shall by regulation prescribe. Such procedures shall be 
based on paragraph (5), except that, for purposes of this clause, 
paragraph (5)(C) shall be applied by substituting `in violation of 
section 101(b), leaving postal patrons without effective and regular 
access to postal services' for `unsupported by substantial evidence on 
the record'.''.
            (3) Applicability.--The amendments made by this subsection 
        shall not apply with respect to any appeal, notice of which is 
        received by the Postal Regulatory Commission before the date of 
        enactment of this Act (determined applying the rules set forth 
        in section 404(d)(6) of title 39, United States Code).
    (e) Expedited Procedures.--
            (1) In general.--Section 3661 is amended by adding at the 
        end the following:
    ``(d)(1) The Commission shall issue its opinion within 90 days 
after the receipt of any proposal (as referred to in subsection (b)) 
concerning--
            ``(A) the closing or consolidation of postal retail 
        facilities (as that term is defined in section 2(2) of the 
        Postal Reform Act of 2013) to a degree that will generally 
        affect service on a nationwide or substantially nationwide 
        basis; or
            ``(B) an identical or substantially identical proposal on 
        which the Commission issued an opinion within the preceding 5 
        years.
    ``(2) If necessary in order to comply with the 90-day requirement 
under paragraph (1), the Commission may apply expedited procedures 
which the Commission shall by regulation prescribe.''.
            (2) Regulations.--The Postal Regulatory Commission shall 
        prescribe any regulations necessary to carry out the amendment 
        made by paragraph (1) within 90 days after the date of 
        enactment of this Act.
            (3) Applicability.--The amendment made by this subsection 
        shall apply with respect to any proposal received by the Postal 
        Regulatory Commission on or after the earlier of--
                    (A) the 90th day after the date of enactment of 
                this Act; or
                    (B) the effective date of the regulations under 
                paragraph (2).
    (f) Rural Post Office Annual Closure Limitation.--Section 404a(a) 
is amended--
            (1) in paragraph (2), by striking ``or'' at the end;
            (2) in paragraph (3), by striking the period and inserting 
        ``; or''; and
            (3) by adding at the end the following:
            ``(4) close, consolidate, or suspend the operations of more 
        than 5-percent of the number of currently operating postal 
        retail facilities on January 1, of each year that were within 
        the K or L cost ascertainment grouping on January 1, 2012, 
        excluding any postal retail facility scheduled for closure and 
        ineligible for appeal due to section 404(d)(7)(A) shall not 
        count toward the 5 percent limitation.''.
    (g) Alternate Postal Access Choice.--Section 404(d) is amended by 
striking paragraph (1) and inserting the following:
    ``(d)(1) The Postal Service, prior to making a determination under 
subsection (a)(3) as to the necessity for the closing or consolidation 
of any post office, shall--
            ``(A) provide adequate notice of its intention to close or 
        consolidate such post office at least 60 days prior to the 
        proposed date of such closing or consolidation to postal 
        patrons served by such post office;
            ``(B) conduct a nonbinding survey on the proposed closing 
        or consolidation to allow postal patrons served by such post 
        office an opportunity to indicate their preference between or 
        among--
                    ``(i) the closing or consolidation; and
                    ``(ii) 1 or more alternative options; and
            ``(C) ensure that--
                    ``(i) should the closure or consolidation of a 
                postal retail facility be deemed necessary, it shall be 
                the policy of the Postal Service to provide alternative 
                access to postal services to those served by the postal 
                retail facility by the option chosen by the highest 
                number of survey respondents under subparagraph 
                (B)(ii); and
                    ``(ii) if the Postal Service is unable to provide 
                alternative access through the option identified in 
                clause (i), or if that option is cost prohibitive, the 
                Postal Service may provide alternative access through a 
                different means. Upon selection of an alternative 
                access method other than the one identified by clause 
                (i), the Postal Service must provide written notice to 
                those patrons served by the postal retail facility 
                identifying and explaining why the option identified by 
                clause (i) was not possible or cost prohibitive.''.

SEC. 104. APPLICABILITY OF PROCEDURES RELATING TO CLOSURES AND 
              CONSOLIDATIONS.

    (a) In General.--Section 404(d) is amended by adding after 
paragraph (7) (as added by section 103(d)(2)) the following:
    ``(8) For purposes of this subsection, the term `post office' means 
a post office and any other facility described in section 2(2) of the 
Postal Reform Act of 2013.''.
    (b) Effective Date.--In the case of any post office (within the 
meaning of the amendment made by subsection (a)) which, but for such 
amendment, would not otherwise be subject to section 404(d) of title 
39, United States Code, the amendment made by subsection (a) shall be 
effective with respect to any closure or consolidation, the proposed 
effective date of which occurs on or after the 60th day following the 
date of enactment of this Act.

SEC. 105. ENHANCED REPORTING ON POSTAL SERVICE EFFICIENCY.

    Section 3652(a) is amended--
            (1) in paragraph (1), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding after paragraph (2) the following:
            ``(3) which shall provide the overall change in Postal 
        Service productivity and the resulting effect of such change on 
        overall Postal Service costs during such year, using such 
        methodologies as the Commission shall by regulation 
        prescribe.''.

SEC. 106. AREA AND DISTRICT OFFICE STRUCTURE.

    (a) In General.--Not later than 120 days after the date of 
enactment of this Act, the Postal Service, in consultation with the 
Inspector General of the United States Postal Service, shall develop 
and begin implementation of a plan for the closure or consolidation of 
such area and district offices as the Postal Service considers 
necessary and appropriate so that, by October 1, 2015, the combined 
total number of area and district offices will be at least 30 percent 
less than the corresponding combined total as of September 30, 2012.
    (b) Contents.--The plan shall include--
            (1) a list of the area and district offices proposed for 
        closure or consolidation;
            (2) a proposed schedule under which closures and 
        consolidations of area and district offices would be carried 
        out;
            (3) the estimated total annual cost savings attributable to 
        the proposed closures and consolidations described in the plan;
            (4) the criteria and process used to develop the 
        information described in paragraphs (1) and (2);
            (5) the methodology and assumptions used to derive the 
        estimates described in paragraph (3); and
            (6) any changes to the processing, transportation, 
        delivery, or other postal operations anticipated as a result of 
        the proposed closures and consolidations described in the plan.
    (c) Plan Submission Revision.--Not later than 120 days after the 
date of enactment of this Act, the plan shall be submitted to the 
Committee on Homeland Security and Governmental Affairs of the Senate 
and the Committee on Oversight and Government Reform of the House of 
Representatives. Any revision to the plan shall be submitted not later 
than 14 days after such revision is adopted by the Postal Service.

                  TITLE II--POSTAL SERVICE GOVERNANCE

               Subtitle A--Temporary Governance Authority

SEC. 201. PURPOSES.

    (a) Purposes.--The purposes of this subtitle are as follows:
            (1) To eliminate budget deficits and cash shortages of the 
        Postal Service through strategic financial planning, sound 
        budgeting, accurate revenue forecasts, and careful spending.
            (2) To ensure that universal service, as required by 
        section 101 of title 39, United States Code, is maintained 
        during the period of any fiscal emergency.
            (3) To conduct necessary investigations and studies to 
        determine the fiscal status and operational efficiency of the 
        Postal Service.
            (4) To assist the Postal Service in--
                    (A) restructuring its organization and workforce to 
                bring expenses in line with diminishing revenue and 
                generate sufficient profits for capital investments and 
                repayment of debt;
                    (B) meeting all fiscal obligations to the Treasury 
                of the United States; and
                    (C) ensuring the appropriate and efficient delivery 
                of postal services.
            (5) To ensure the long-term financial, fiscal, and economic 
        vitality and operational efficiency of the Postal Service.
    (b) Reservation of Powers.--Nothing in this subtitle may be 
construed--
            (1) to relieve any obligation of the Postal Service to the 
        Treasury of the United States existing as of the date of 
        enactment of this Act; or
            (2) to limit the authority of Congress to exercise 
        legislative authority over the Postal Service.

SEC. 202. ESTABLISHMENT OF THE POSTAL SERVICE FINANCIAL RESPONSIBILITY 
              AND MANAGEMENT ASSISTANCE AUTHORITY.

    (a) Establishment.--There is established, in accordance with the 
provisions of this subtitle, an entity to be known as the ``Postal 
Service Financial Responsibility and Management Assistance Authority'' 
(hereinafter in this subtitle referred to as the ``Authority'').
    (b) Operations During the Control Period.--
            (1) Control period defined.--For the purposes of this 
        subtitle, the term ``control period'' means the period that 
        commences on the date as of which the Authority has at least 4 
        members and terminates as of the date determined under 
        paragraph (5).
            (2) Transfer of authorities and responsibilities.--
        Effective as of the date on which the control period 
        commences--
                    (A) subsections (a) and (b) of section 202 are 
                repealed;
                    (B) the term of office of each of the 9 Governors 
                (appointed under the second sentence of section 
                202(a)(1) of title 39, United States Code, as last in 
                effect before the date of enactment of this Act) shall 
                terminate; and
                    (C) the Authority shall assume its 
                responsibilities, as set forth in section 206.
            (3) Treatment of certain executives.--
                    (A) Definition.--For the purposes of this section, 
                the term ``Level-Two Postal Service Executive'' 
                includes the Postmaster General, the Deputy Postmaster 
                General, and all the other officers and employees of 
                the Postal Service in level two of the Postal Career 
                Executive Service (or the equivalent), but does not 
                include any officer or employee of the Office of 
                Inspector General of the United States Postal Service.
                    (B) Treatment.--Notwithstanding any other provision 
                of law or the provisions of any employment contract, 
                during the control period--
                            (i) all Level-Two Postal Service Executives 
                        shall serve at the pleasure of the Authority;
                            (ii) the duties and responsibilities of all 
                        Level-Two Postal Service Executives, as well as 
                        the terms and conditions of their employment 
                        (including their compensation), shall be 
                        subject to determination or redetermination by 
                        the Authority;
                            (iii) total compensation of a Level-Two 
                        Postal Service Executive may not, for the first 
                        full fiscal year occurring in such control 
                        period or any subsequent fiscal year commencing 
                        in such control period, exceed the annual rate 
                        of basic pay payable for level I of the 
                        Executive Schedule under section 5312 of title 
                        5, United States Code, for that year; for 
                        purposes of this clause, the term ``total 
                        compensation'' means basic pay, bonuses, 
                        awards, and all other monetary compensation;
                            (iv) the percentage by which the rate of 
                        basic pay of a Level-Two Postal Service 
                        Executive is increased during any year may not 
                        exceed the percentage change in the Consumer 
                        Price Index for All Urban Consumers, unadjusted 
                        for seasonal variation, for the most recent 12-
                        month period available, except that, in the 
                        case of a Level-Two Postal Service Executive 
                        who has had a significant change in job 
                        responsibilities, a greater change shall be 
                        allowable if approved by the Authority;
                            (v) apart from basic pay, a Level-Two 
                        Postal Service Executive may not be afforded 
                        any bonus, award, or other monetary 
                        compensation for any full fiscal year in the 
                        control period if expenditures of the Postal 
                        Service for such fiscal year exceeded revenues 
                        of the Postal Service for such fiscal year 
                        (determined in accordance with generally 
                        accepted accounting principles); and
                            (vi) no deferred compensation may be paid, 
                        accumulated, or recognized in the case of any 
                        Level-Two Postal Service Executive, with 
                        respect to any full year in the control period, 
                        which is not generally paid, accumulated, or 
                        recognized in the case of employees of the 
                        United States (outside of the Postal Service) 
                        in level I of the Executive Schedule under 
                        section 5312 of title 5, United States Code, 
                        with respect to such year.
                    (C) Bonus authority.--Section 3686 of title 39, 
                United States Code, shall, during the period beginning 
                on the commencement date of the control period and 
                ending on the termination date of the control period--
                            (i) be suspended with respect to all Level-
                        Two Postal Service Executives; but
                            (ii) remain in effect for all other 
                        officers and employees of the Postal Service 
                        otherwise covered by this section.
            (4) Certification requirement.--The control period may not 
        terminate until after the Authority, with the concurrence of 
        the Secretary of the Treasury and the Director of the Office of 
        Personnel Management, certifies to the Director of the Office 
        of Management and Budget that--
                    (A) for 2 consecutive fiscal years (occurring after 
                the date of enactment of this Act), expenditures of the 
                Postal Service did not exceed revenues of the Postal 
                Service (as determined in accordance with generally 
                accepted accounting principles);
                    (B) the Authority has approved a Postal Service 
                financial plan and budget that shows expenditures of 
                the Postal Service not exceeding revenues of the Postal 
                Service (as so determined) for the fiscal year to which 
                such budget pertains and each of the next 3 fiscal 
                years; and
                    (C) the Postal Service financial plan and budget 
                (as referred to in subparagraph (B)) includes plans--
                            (i) for the repayment of any collateralized 
                        debt authorized by section 503; and
                            (ii) to properly fund Postal Service 
                        pensions and retiree health benefits in 
                        accordance with applicable provisions of title 
                        5, United States Code.
            (5) Termination of control period.--
                    (A) Termination date.--
                            (i) General rule.--Except as provided in 
                        clause (ii), the control period shall terminate 
                        180 days after the date on which the 
                        certification described in paragraph (4) is 
                        made.
                            (ii) Alternative date.--
                                    (I) Authority.--The Director of the 
                                Office of Management and Budget may, by 
                                written notice given to the Authority 
                                within 15 days after the date on which 
                                the certification described in 
                                paragraph (4) is made, provide for an 
                                alternative termination date (in lieu 
                                of the date that would otherwise apply 
                                under clause (i)).
                                    (II) Range.--An alternative date 
                                under this clause shall not apply 
                                unless such date occurs not less than 
                                30 days after the date on which written 
                                notice under subclause (I) is given and 
                                not later than 180 days after the date 
                                on which the certification described in 
                                paragraph (4) is made.
                    (B) Public notice.--The Authority shall cause to be 
                published in the Federal Register--
                            (i) the date on which the certification 
                        described in paragraph (4) is made, not later 
                        than 1 business day after the date on which 
                        such certification is made; and
                            (ii) the termination date of the control 
                        period, not later than 16 business days after 
                        the date on which the certification described 
                        in paragraph (4) is made.

SEC. 203. MEMBERSHIP AND QUALIFICATION REQUIREMENTS.

    (a) Membership.--
            (1) In general.--The Authority shall consist of 5 members 
        appointed by the President who meet the qualifications 
        described in subsection (b), except that the Authority may take 
        any action under this subtitle at any time after the President 
        has appointed the initial 4 of its members. Members of the 
        Authority shall report to the Secretary of the Treasury.
            (2) Recommendations.--Of the 5 members so appointed--
                    (A) 1 shall be appointed by the President taking 
                into account any individuals recommended by the Speaker 
                of the House of Representatives;
                    (B) 1 shall be appointed by the President taking 
                into account any individuals recommended by the 
                majority leader of the Senate;
                    (C) 1 shall be appointed by the President taking 
                into account any individuals recommended by the 
                minority leader of the House of Representatives;
                    (D) 1 shall be appointed by the President taking 
                into account any individuals recommended by the 
                minority leader of the Senate; and
                    (E) 1 shall be appointed by the President taking 
                into account any individuals recommended by the 
                Comptroller General.
            (3) Political affiliation.--No more than 3 members of the 
        Authority may be of the same political party.
            (4) Chair.--The President shall designate 1 of the members 
        of the Authority as the Chair of the Authority.
            (5) Sense of congress regarding deadline for appointment.--
        It is the sense of Congress that the President should appoint 
        the members of the Authority as soon as practicable after the 
        date of enactment of this Act, but no later than 30 days after 
        such date.
            (6) Term of service.--
                    (A) In general.--Except as provided in subparagraph 
                (B), each member of the Authority shall be appointed 
                for a term of 3 years.
                    (B) Appointment for term following initial term.--
                As designated by the President at the time of 
                appointment for the term immediately following the 
                initial term, of the members appointed for the term 
                immediately following the initial term--
                            (i) 1 member shall be appointed for a term 
                        of 1 year;
                            (ii) 2 members shall be appointed for a 
                        term of 2 years; and
                            (iii) 2 members shall be appointed for a 
                        term of 3 years.
                    (C) Vacancies and succession.--Any member of the 
                Authority appointed to fill a vacancy before the 
                expiration of the term for which the predecessor of the 
                member of the Authority was appointed shall serve for 
                the remainder of such term.
                    (D) Removal.--The President may remove any member 
                of the Authority only for cause.
                    (E) Compensation for service.--Each member of the 
                Authority shall be paid for full-time service at a rate 
                of pay equivalent to the rate of basic pay payable for 
                level III of the Executive Schedule under section 5314 
                of title 5, United States Code.
    (b) Qualification Requirements.--
            (1) In general.--An individual meets the qualifications for 
        membership on the Authority if the individual--
                    (A) has significant knowledge and expertise in 
                finance, management, and the organization or operation 
                of businesses having more than 500 employees; and
                    (B) represents the public interest generally, is 
                not a representative of specific interests using or 
                belonging to the Postal Service, and does not have any 
                business or financial interest in any enterprise in the 
                private sector of the economy engaged in the delivery 
                of mail matter.
            (2) Specific conditions.--An individual shall not be 
        considered to satisfy paragraph (1)(B) if, at any time during 
        the 5-year period ending on the date of appointment, such 
        individual--
                    (A) has been an officer, employee, or private 
                contractor with the Postal Service, United States 
                Postal Service Inspector General, or the Postal 
                Regulatory Commission; or
                    (B) has served as an employee or contractor of a 
                labor organization representing employees of the Postal 
                Service, the United States Postal Service Inspector 
                General, or the Postal Regulatory Commission.

SEC. 204. ORGANIZATION AND STAFF.

    (a) Adoption of Bylaws for Conducting Business.--As soon as 
practicable after the appointment of its members, the Authority shall 
adopt bylaws, rules, and procedures governing its activities under this 
subtitle, including procedures for hiring experts and consultants. Upon 
adoption, such bylaws, rules, and procedures shall be submitted by the 
Authority to the Postmaster General, the President, and Congress.
    (b) Executive Director and Staff.--
            (1) Executive director.--The Authority shall have an 
        Executive Director who shall be appointed by the Chair with the 
        consent of the Authority. The Executive Director shall be paid 
        at a rate determined by the Authority, except that such rate 
        may not exceed the rate of basic pay payable for level IV of 
        the Executive Schedule under section 5315 of title 5, United 
        States Code.
            (2) Staff.--With the approval of the Authority, the 
        Executive Director may appoint and fix the pay of such 
        additional personnel as the Executive Director considers 
        appropriate, except that no individual appointed by the 
        Executive Director may be paid at a rate greater than the rate 
        of pay for the Executive Director. Personnel appointed under 
        this paragraph shall serve at the pleasure of the Executive 
        Director.
            (3) Inapplicability of certain civil service laws.--The 
        Executive Director and staff of the Authority may be appointed 
        without regard to the provisions of title 5, United States 
        Code, governing appointments in the competitive service, and 
        paid without regard to the provisions of chapter 51 and 
        subchapter III of chapter 53 of such title relating to 
        classification and General Schedule pay rates.
            (4) Staff of federal agencies.--Upon request of the Chair, 
        the head of any Federal department or agency may detail, on a 
        reimbursable or nonreimbursable basis, any of the personnel of 
        such department or agency to the Authority to assist it in 
        carrying out its duties under this subtitle.

SEC. 205. FUNDING.

    (a) General Rule.--There are authorized to be appropriated, out of 
the Postal Service Fund, such sums as may be necessary for the 
Authority. In requesting an appropriation under this section for a 
fiscal year, the Authority shall prepare and submit to the Congress 
under section 2009 of title 39, United States Code, a budget of the 
Authority's expenses, including expenses for facilities, supplies, 
compensation, and employee benefits, not to exceed $10,000,000.
    (b) Initial Rule.--Notwithstanding any other provision of this 
section, effective as of the date on which at least 4 members of the 
Authority have been appointed, there shall be available to the 
Authority, out of the Postal Service Fund, such sums as the Authority 
may require in order to carry out this subtitle, not to exceed the 
amount equal to the product obtained by multiplying--
            (1) the dollar amount specified in subsection (a), times
            (2) a fraction--
                    (A) the numerator of which is the number of months 
                remaining in the fiscal year as of the date on which at 
                least 4 members of the Authority have been appointed 
                (rounding any fraction of a month to the next highest 
                whole number); and
                    (B) the denominator of which is 12.
    (c) Amendment to Section 2009.--Section 2009 is amended in the next 
to last sentence--
            (1) by striking ``, and (3)'' and inserting ``, (3)''; and
            (2) by striking the period and inserting ``, and (4) the 
        Postal Service Financial Responsibility and Management 
        Assistance Authority requests to be appropriated, out of the 
        Postal Service Fund, under section 205 of the Postal Reform Act 
        of 2013.''.

SEC. 206. RESPONSIBILITIES AND POWERS.

    The exercise of the powers of the Postal Service shall be directed 
by the Authority, including--
            (1) all duties and responsibilities ascribed to the 
        Governors and the Board of Governors by title 39, United States 
        Code;
            (2) determining the overall strategies of the Postal 
        Service;
            (3) hiring, monitoring, compensating, and, when necessary, 
        replacing senior management at the level of vice president and 
        higher, as well as ensuring adequate succession planning for 
        these positions;
            (4) approving major policies, particularly those that have 
        an important effect on the Postal Service's financial position 
        and the provision of universal postal service;
            (5) approving corporate budgets, financial and capital 
        plans, operational and service performance standards and 
        targets, human resource strategies, collective-bargaining 
        strategies, negotiation parameters, collective-bargaining 
        agreements, and the compensation structure for nonbargaining 
        employees;
            (6) formulating and communicating organizational policy and 
        positions on legislative and other public policy matters to 
        Congress and the public; and
            (7) carrying out any responsibility, not otherwise listed 
        in this section, that was the responsibility of the Board of 
        Governors of the Postal Service at any time during the 5-year 
        period ending on the date of enactment of this Act.

SEC. 207. DEVELOPMENT OF FINANCIAL PLAN AND BUDGET FOR THE SOLVENCY OF 
              THE POSTAL SERVICE.

    (a) Development of Financial Plan and Budget.--For each fiscal year 
during a control period, the Postmaster General shall submit to the 
Authority, by August 1 before the start of such fiscal year, a 
financial plan and budget for such fiscal year for the long-term 
solvency of the Postal Service, except that, for fiscal year 2014, the 
deadline for submission of the plan and budget under this subsection 
shall be the 30th day after a majority of the Authority take office. If 
a majority of the Authority do not take office before August 1, 2014, 
the requirement for a financial plan and budget under this subsection 
for fiscal year 2014 is waived.
    (b) Contents of Financial Plan and Budget.--A financial plan and 
budget under this section for a fiscal year shall specify the budget 
for the Postal Service as required by section 2009 of title 39, United 
States Code, for the applicable fiscal year and each of the next 3 
fiscal years, in accordance with the following requirements:
            (1) The financial plan and budget shall meet the 
        requirements described in subsection (c) to promote the 
        financial stability of the Postal Service.
            (2) The financial plan and budget shall--
                    (A) include the Postal Service's annual budget 
                program (under section 2009 of title 39, United States 
                Code) and the Postal Service's plan commonly referred 
                to as its ``Integrated Financial Plan'';
                    (B) describe lump-sum expenditures by all 
                categories traditionally used by the Postal Service;
                    (C) describe capital expenditures (together with a 
                schedule of projected capital commitments and cash 
                outlays of the Postal Service and proposed sources of 
                funding);
                    (D) contain estimates of overall debt (both 
                outstanding and anticipated to be issued); and
                    (E) contain cash flow and liquidity forecasts for 
                the Postal Service at such intervals as the Authority 
                may require.
            (3) The financial plan and budget shall include a statement 
        describing methods of estimations and significant assumptions.
            (4) The financial plan and budget shall include any other 
        provisions and shall meet such other criteria as the Authority 
        considers appropriate to meet the purposes of this subtitle, 
        including provisions for--
                    (A) changes in personnel policies and levels for 
                each component of the Postal Service; and
                    (B) management initiatives to promote productivity, 
                improvement in the delivery of services, or cost 
                savings.
    (c) Requirements To Promote Financial Stability.--
            (1) In general.--The requirements to promote the solvency 
        and financial stability of the Postal Service applicable to the 
        financial plan and budget for a fiscal year are as follows:
                    (A) For fiscal year 2016 and each subsequent fiscal 
                year during a control period, budgeted expenditures of 
                the Postal Service for the fiscal year involved may not 
                exceed budgeted revenues of the Postal Service for the 
                fiscal year involved.
                    (B) In each fiscal year where a financial plan and 
                budget must be developed, the financial plan and budget 
                shall provide for continuous, substantial progress 
                toward long-term fiscal solvency of the Postal Service.
                    (C) The financial plan and budget shall provide for 
                the orderly repayment of any outstanding obligations 
                authorized under section 503.
                    (D) The financial plan and budget shall assure the 
                continuing long-term solvency of the Postal Service, as 
                indicated by factors such as the efficient management 
                of the Postal Service's workforce and the effective 
                provision of services by the Postal Service. In so 
                doing, the financial plan and budget shall consider--
                            (i) the legal authority of the Postal 
                        Service;
                            (ii) the changes in the legal authority and 
                        responsibilities of the Postal Service under 
                        this Act;
                            (iii) any cost savings that the Postal 
                        Service anticipates will be achieved through 
                        negotiations with employees of the Postal 
                        Service;
                            (iv) projected changes in mail volume;
                            (v) the impact of regulations the Postal 
                        Service was required by law to promulgate;
                            (vi) projected changes in the number of 
                        employees needed to carry out the 
                        responsibilities of the Postal Service; and
                            (vii) the long-term capital needs of the 
                        Postal Service, including the need to maintain, 
                        repair, and replace facilities and equipment.
            (2) Application of sound budgetary practices.--In meeting 
        the requirements described in paragraph (1) with respect to a 
        financial plan and budget for a fiscal year, the Postal Service 
        shall apply sound budgetary practices, including reducing costs 
        and other expenditures, improving productivity, increasing 
        revenues, or a combination of such practices.
            (3) Assumptions based on current law.--In meeting the 
        requirements described in paragraph (1) with respect to a 
        financial plan and budget for a fiscal year, the Postal Service 
        shall base estimates of revenues and expenditures on Federal 
        law as in effect at the time of the preparation of such 
        financial plan and budget.
    (d) Definition.--For the purposes of this section, the term ``long-
term solvency'' means the ability of the Postal Service over the long 
term to pay debts and meet expenses, including the ability to perform 
maintenance and repairs, make investments, and maintain financial 
reserves, as necessary to fulfill the requirements and comply with the 
policies of title 39, United States Code, and other obligations of the 
Postal Service.

SEC. 208. PROCESS FOR SUBMISSION AND APPROVAL OF FINANCIAL PLAN AND 
              BUDGET.

    (a) Review by the Authority.--Upon receipt of a financial plan and 
budget required by section 207, the Authority shall promptly review 
such financial plan and budget. In conducting the review, the Authority 
may request any additional information it considers necessary and 
appropriate to carry out its duties.
    (b) Approval of Postmaster General's Financial Plan and Budget.--
            (1) In general.--If the Authority determines that the final 
        financial plan and budget for the fiscal year submitted by the 
        Postmaster General under subsection (a) meets the requirements 
        of section 207--
                    (A) the Authority shall approve the financial plan 
                and budget and shall provide the Postmaster General, 
                the President, the Committee on Homeland Security and 
                Governmental Affairs in the Senate, and the Committee 
                on Oversight and Government Reform in the House of 
                Representatives with a notice certifying its approval; 
                and
                    (B) the Postmaster General shall promptly submit 
                the annual budget program for the relevant fiscal year 
                to the Office of Management and Budget pursuant to 
                section 2009 of title 39, United States Code.
            (2) Deemed approval after 30 days.--If the Authority has 
        not provided the Postmaster General, the President, and 
        Congress with a notice certifying approval under paragraph 
        (1)(A) or a statement of disapproval under subsection (c) 
        before the expiration of the 30-day period which begins on the 
        date the Authority receives the financial plan and budget from 
        the Postmaster General under subsection (a), the Authority 
        shall be deemed to have approved the financial plan and budget 
        and to have provided the Postmaster General, the President, the 
        Committee on Homeland Security and Governmental Affairs in the 
        Senate, and the Committee on Oversight and Government Reform in 
        the House of Representatives with the notice certifying 
        approval under paragraph (1)(A).
    (c) Disapproval of Postmaster General's Financial Plan and 
Budget.--
            (1) In general.--If, after reviewing the financial plan and 
        budget for a fiscal year submitted by the Postmaster General 
        under subsection (a) in accordance with the procedures 
        described in this section, the Authority determines that the 
        revised final financial plan and budget does not meet the 
        applicable requirements under section 207, the Authority 
        shall--
                    (A) disapprove the financial plan and budget;
                    (B) provide the Postmaster General, the President, 
                and Congress with a statement containing the reasons 
                for such disapproval and describing the amount of any 
                shortfall in the financial plan and budget; and
                    (C) approve and recommend a financial plan and 
                budget for the Postal Service which meets the 
                applicable requirements under section 207, and submit 
                such financial plan and budget to the Postmaster 
                General, the President, the Committee on Homeland 
                Security and Governmental Affairs in the Senate, and 
                the Committee on Oversight and Government Reform in the 
                House of Representatives.
            (2) Submission to omb.--Upon receipt of the recommended 
        financial plan and budget under paragraph (1)(C), the 
        Postmaster General shall promptly submit the recommended annual 
        budget program to the Office of Management and Budget pursuant 
        to section 2009 of title 39, United States Code.
    (d) Deadline for Transmission of Financial Plan and Budget by the 
Authority.--Notwithstanding any other provision of this section, not 
later than September 30th before the start of each fiscal year for 
which a financial plan and budget is required, the Authority shall--
            (1) provide Congress with a notice certifying its approval 
        of the Postmaster General's financial plan and budget for the 
        fiscal year under subsection (c); or
            (2) submit to Congress an approved and recommended 
        financial plan and budget developed by the Authority for the 
        fiscal year under subsection (c)(1)(C).
    (e) Revisions to Financial Plan and Budget.--
            (1) Permitting postmaster general to submit revisions.--The 
        Postmaster General may submit proposed revisions to the 
        financial plan and budget for the control period to the 
        Authority at any time during the fiscal year.
            (2) Process for review, approval, disapproval, and 
        postmaster general action.--The procedures described in 
        subsections (b), (c), and (d) shall apply with respect to a 
        proposed revision to a financial plan and budget in the same 
        manner as such procedures apply with respect to the original 
        financial plan and budget.
    (f) Requirements of the Authority.--
            (1) In general.--It shall be the policy of the Authority to 
        direct the Postal Service to take any action necessary and 
        permitted by law to ensure that the approved financial plan and 
        budget is fully implemented over the course of each fiscal year 
        and that the budgetary goals for expenses and revenues are 
        achieved.
            (2) Additional fiduciary actions.--In addition to paragraph 
        (1), the Authority shall take any additional actions it deems 
        necessary and permitted by law to ensure the requirements of 
        the financial plan and budget are achieved in practice so that 
        the total revenue of the Postal Service exceeds its total 
        operating expenses for the full fiscal year not later than 
        fiscal year 2016 and each fiscal year thereafter. Such actions 
        may include accelerating the conversion of door delivery points 
        to more cost-effective delivery methods, the consolidation of 
        additional mail processing facilities, transition to a 2-day or 
        3-day First-Class Mail delivery standard for the continental 
        United States, and any other action consistent with this Act 
        and the provisions of title 39, United States Code. For the 
        purposes of this paragraph, the term ``total operating 
        expenses'' refers to all categories of expenses identified 
        under that term in the Report on Form 10-K filed by the Postal 
        Service for fiscal year 2012.

SEC. 209. DISSOLUTION OF THE AUTHORITY; RECONSTITUTION OF THE BOARD OF 
              GOVERNORS.

    (a) In General.--Effective as of the date on which the control 
period terminates (as determined under section 202(b)(5))--
            (1) the Authority is dissolved; and
            (2) section 202 of title 39, United States Code (as amended 
        by section 202(b)(2)(A) of this Act) is amended by inserting 
        after the section heading the following:
    ``(a)(1) The exercise of the power of the Postal Service shall be 
directed by a Board of Governors composed of 5 members appointed in 
accordance with this section. The members, to be known as Governors, 
shall be appointed by the President, by and with the advice and consent 
of the Senate. Not more than 3 of the Governors may be adherents of the 
same political party. The Governors shall elect a Chairman from among 
the individual Governors. The Governors shall represent the public 
interest generally, and shall be chosen solely on the basis of their 
experience in the field of public administration, law, or accounting, 
or on their demonstrated ability in managing organizations or 
corporations (in either the public or private sector) of substantial 
size; except that at least 3 of the Governors shall be chosen solely on 
the basis of their demonstrated ability in managing organizations or 
corporations (in either the public or private sector) that employ at 
least 10,000 employees. The Governors shall not be representatives of 
specific interests using the Postal Service, and may be removed only 
for cause. Each Governor shall receive a salary of $30,000 a year plus 
$300 a day for not more than 42 days of meetings each year and shall be 
reimbursed for travel and reasonable expenses incurred in attending 
meetings of the Board. Nothing in the preceding sentence shall be 
construed to limit the number of days of meetings each year to 42 days.
    ``(2) In selecting the individuals described in paragraph (1) for 
nomination for appointment to the position of Governor, the President 
should consult with the Speaker of the House of Representatives, the 
minority leader of the House of Representatives, the majority leader of 
the Senate, and the minority leader of the Senate.
    ``(3) Not later than 60 days after the end of each fiscal year, the 
Board of Governors shall submit an itemized report describing all 
travel and reimbursable business travel expenses paid to each Governor 
when performing Board duties to the Committee on Oversight and 
Government Reform of the House of Representatives and the Committee on 
Homeland Security and Governmental Affairs of the Senate. The report 
submitted under this paragraph shall include a detailed justification 
for any travel or reimbursable business travel expense that deviates 
from the Board's travel and reimbursable business travel expense 
policies and guidelines under paragraph (1).
    ``(b)(1) The terms of the 5 Governors shall be 7 years, except 
that--
            ``(A) upon the reconstitution of the Board of Governors 
        pursuant to the Postal Reform Act of 2013--
                    ``(i) the 5 members last comprising the Postal 
                Service Financial Responsibility and Management 
                Assistance Authority before the termination of the 
                control period (as defined in section 202(b)(1) of the 
                Postal Reform Act of 2013) shall become the initial 
                members of the reconstituted Board of Governors; and
                    ``(ii) the term of each of the 5 respective 
                individuals under clause (i) shall expire at the end of 
                the term which would have applied with respect to that 
                individual, if--
                            ``(I) the control period (as so defined) 
                        had not terminated; and
                            ``(II) such individual had remained a 
                        member of the Postal Service Financial 
                        Responsibility and Management Assistance 
                        Authority; and
            ``(B) the terms of the Governors first taking office after 
        the initial Governors of the reconstituted Board (as described 
        in subparagraph (A)) shall be as fixed by the President at the 
        time of their appointment, except that each such term--
                    ``(i) shall be for a period of years not less than 
                3 years and not more than 7 years; and
                    ``(ii) shall be fixed such that the term of not 
                more than 1 Governor is thereafter scheduled to expire 
                in any calendar year (determined disregarding the term 
                of an initial Governor expiring as described in 
                subparagraph (A)(ii)).
    ``(2) Any Governor appointed to fill a vacancy before the 
expiration of the term for which his predecessor was appointed shall 
serve for the remainder of such term. A Governor may continue to serve 
after the expiration of his term until his successor has qualified, but 
not to exceed 1 year.
    ``(3) No person may serve more than 14 years as a Governor. For 
purposes of the preceding sentence, there shall be taken into account 
any period served as a member of--
            ``(A) the Postal Service Financial Responsibility and 
        Management Assistance Authority; or
            ``(B) the Board of Governors, as constituted before the 
        start of the control period.''.
    (b) Conforming Amendments.--
            (1) Section 102(3) is amended by striking ``9'' and 
        inserting ``5''; and
            (2) Section 205(c) is amended by striking all after 
        ``present, and'' and inserting ``an absolute majority of the 
        Governors in office shall constitute a quorum for the 
        transaction of business by the Board.''.

                       Subtitle B--Other Matters

SEC. 211. APPOINTMENT OF THE POSTAL SERVICE INSPECTOR GENERAL.

    (a) Appointment of Inspector General of the Postal Service by 
President.--The Inspector General Act of 1978 (5 U.S.C. App.) is 
amended--
            (1) in section 8G--
                    (A) in subsection (a)--
                            (i) in paragraph (2), by striking ``the 
                        Postal Regulatory Commission, and the United 
                        States Postal Service'' and inserting ``and the 
                        Postal Regulatory Commission'';
                            (ii) in paragraph (3), by striking 
                        ``subsection (h)(1)'' and inserting 
                        ``subsection (g)(1)''; and
                            (iii) in paragraph (4)--
                                    (I) in the matter preceding 
                                subparagraph (A), by striking 
                                ``subsection (h)(1)'' and inserting 
                                ``subsection (g)(1)'';
                                    (II) by striking subparagraph (B); 
                                and
                                    (III) by redesignating 
                                subparagraphs (C) through (H) as 
                                subparagraphs (B) through (G), 
                                respectively;
                    (B) in subsection (c), by striking ``Except as 
                provided under subsection (f) of this section, the'' 
                and inserting ``The'';
                    (C) by striking subsection (f); and
                    (D) by redesignating subsections (g) and (h) as 
                subsections (f) and (g), respectively;
            (2) by inserting after section 8L the following:

``SEC. 8M. SPECIAL PROVISIONS CONCERNING THE INSPECTOR GENERAL OF THE 
              UNITED STATES POSTAL SERVICE.

    ``(a) Oversight of Postal Inspection Service.--In carrying out the 
duties and responsibilities specified in this Act, the Inspector 
General of the United States Postal Service (in this section referred 
to as the `Inspector General') shall have oversight responsibility for 
all activities of the Postal Inspection Service, including any internal 
investigation performed by the Postal Inspection Service. The Chief 
Postal Inspector shall promptly report the significant activities being 
carried out by the Postal Inspection Service to such Inspector General.
    ``(b) Supervision; Additional Duties and Responsibilities; 
Report.--
            ``(1) Authority, direction, and control.--
                    ``(A) Audits, investigations, subpoenas.--The 
                Inspector General shall be under the authority, 
                direction, and control of the Governors with respect to 
                audits or investigations, or the issuance of subpoenas, 
                which require access to sensitive information 
                concerning--
                            ``(i) ongoing civil or criminal 
                        investigations or proceedings;
                            ``(ii) undercover operations;
                            ``(iii) the identity of confidential 
                        sources, including protected witnesses;
                            ``(iv) intelligence or counterintelligence 
                        matters; or
                            ``(v) other matters the disclosure of which 
                        would constitute a serious threat to national 
                        security.
                    ``(B) Authority of governors.--With respect to the 
                information described under subparagraph (A), the 
                Governors may prohibit the Inspector General from 
                carrying out or completing any audit or investigation, 
                or from issuing any subpoena, after such Inspector 
                General has decided to initiate, carry out, or complete 
                such audit or investigation or to issue such subpoena, 
                if the Governors determine that such prohibition is 
                necessary to prevent the disclosure of any information 
                described under subparagraph (A) or to prevent the 
                significant impairment to the national interests of the 
                United States.
                    ``(C) Notice required.--If the Governors exercise 
                any power under subparagraph (A) or (B), the Governors 
                shall notify the Inspector General in writing stating 
                the reasons for such exercise. Within 30 days after 
                receipt of any such notice, the Inspector General shall 
                transmit a copy of such notice to the Committee on 
                Homeland Security and Governmental Affairs of the 
                Senate and the Committee on Oversight and Government 
                Reform of the House of Representatives, and to other 
                appropriate committees or subcommittees of the 
                Congress.
            ``(2) Additional duties and responsibilities.--In carrying 
        out the duties and responsibilities specified in this Act, the 
        Inspector General--
                    ``(A) may initiate, conduct, and supervise such 
                audits and investigations in the United States Postal 
                Service as the Inspector General considers appropriate; 
                and
                    ``(B) shall give particular regard to the 
                activities of the Postal Inspection Service with a view 
                toward avoiding duplication and insuring effective 
                coordination and cooperation.
            ``(3) Report required.--Any report required to be 
        transmitted by the Governors to the appropriate committees or 
        subcommittees of the Congress under section 5(d) shall also be 
        transmitted, within the seven-day period specified under such 
        section, to the Committee on Homeland Security and Governmental 
        Affairs of the Senate and the Committee on Oversight and 
        Government Reform of the House of Representatives.
    ``(c) Governors Defined.--As used in this section, the term 
`Governors' has the meaning given such term by section 102(3) of title 
39, United States Code.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated, out of the Postal Service Fund, such sums as may be 
necessary for the Office of Inspector General of the United States.''; 
and
            (3) in section 12--
                    (A) in paragraph (1), by striking ``or the Federal 
                Cochairpersons of the Commissions established under 
                section 15301 of title 40, United States Code'' and 
                inserting ``the Federal Cochairpersons of the 
                Commissions established under section 15301 of title 
                40, United States Code; or the Board of Governors of 
                the United States Postal Service''; and
                    (B) in paragraph (2), by striking ``or the 
                Commissions established under section 15301 of title 
                40, United States Code'' and inserting ``the 
                Commissions established under section 15301 of title 
                40, United States Code, or the United States Postal 
                Service''.
    (b) Technical and Conforming Amendments.--Title 39, United States 
Code, is amended--
            (1) in section 102(4), by striking ``section 202(e) of this 
        title'' and inserting ``section 3 of the Inspector General Act 
        of 1978 (5 U.S.C. App.)'';
            (2) in section 1001(b), in the first sentence, by inserting 
        ``and section 3 of the Inspector General Act of 1978 (5 U.S.C. 
        App.)'' after ``1001(c) of this title'';
            (3) in section 1003(a), by striking ``8G'' and inserting 
        ``8M'';
            (4) in section 1005(a)(3), by inserting ``and section 3 of 
        the Inspector General Act of 1978 (5 U.S.C. App.)'' after 
        ``1001(c) of this title'';
            (5) in section 2003(e) by striking ``8G(f)'' and inserting 
        ``8M(d)''; and
            (6) in section 2009 by striking ``8G(f)'' and inserting 
        ``8M(d)''.
    (c) Applicability.--
            (1) In general.--The amendments made by this section shall 
        apply with respect to the first individual appointed as 
        Inspector General of the Postal Service after the date of 
        enactment of this Act.
            (2) Rule of construction.--Nothing in this Act may be 
        construed to alter the authority or the length of the term of 
        the individual serving as Inspector General of the Postal 
        Service on the date of enactment of this Act.

SEC. 212. MEMBERSHIP OF THE BOARD OF GOVERNORS.

    (a) Postmaster General.--Section 202(c) is amended to read as 
follows:
    ``(c) The Governors shall appoint and shall have the power to 
remove the Postmaster General. His pay and term of service shall be 
fixed by the Governors.''.
    (b) Deputy Postmaster General.--Section 202(d) is amended to read 
as follows:
    ``(d) The Governors shall appoint and shall have the power to 
remove the Deputy Postmaster General. His term of service shall be 
fixed by the Governors and the Postmaster General and his pay by the 
Governors.''.

                  TITLE III--POSTAL SERVICE WORKFORCE

SEC. 301. APPLICABILITY OF REDUCTION-IN-FORCE PROCEDURES.

    Section 1206 is amended by adding at the end the following:
    ``(d) Collective-bargaining agreements between the Postal Service 
and bargaining representatives recognized under section 1203, ratified 
after the date of enactment of this subsection, shall contain no 
provision restricting the applicability of reduction-in-force 
procedures under title 5 with respect to members of the applicable 
bargaining unit.
    ``(e)(1) If a collective-bargaining agreement between the Postal 
Service and bargaining representatives recognized under section 1203, 
ratified after the date of enactment of this subsection, includes 
reduction-in-force procedures which can be applied in lieu of 
reduction-in-force procedures under title 5, the Postal Service may, in 
its discretion, apply with respect to members of the applicable 
bargaining unit--
            ``(A) the alternative procedures (or, if 2 or more are 
        agreed to, 1 of the alternative procedures); or
            ``(B) the reduction-in-force procedures under title 5.
    ``(2) In no event may, if procedures for the resolution of a 
dispute or impasse arising in the negotiation of a collective-
bargaining agreement (whether through binding arbitration or otherwise) 
are invoked under this chapter, the award or other resolution reached 
under such procedures provide for the elimination of, or the 
substitution of any alternative procedures in lieu of, reduction-in-
force procedures under title 5.''.

SEC. 302. POSTAL SERVICE FEHBP AND FEGLI FUNDING REQUIREMENTS.

    Section 1005(d)(1) is amended--
            (1) in the first sentence, by striking ``chapters 83 and 
        84'' and inserting ``chapters 83, 84, 87, and 89''; and
            (2) by adding at the end the following: ``Beginning not 
        later than January 1, 2020, the Postal Service shall withhold 
        from pay and shall pay into the Employees Life Insurance Fund 
        and the Employee Health Benefits Fund the amounts specified in 
        or determined under chapters 87 and 89, respectively.''.

SEC. 303. REPEAL OF PROVISION RELATING TO OVERALL VALUE OF FRINGE 
              BENEFITS.

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

SEC. 304. MODIFICATIONS RELATING TO DETERMINATION OF PAY COMPARABILITY.

    (a) Postal Policy.--The first sentence of section 101(c) is 
amended--
            (1) by inserting ``total'' before ``rates and types of 
        compensation''; and
            (2) by inserting ``entire'' before ``private sector''.
    (b) Employment Policy.--The second sentence of section 1003(a) is 
amended--
            (1) by inserting ``total'' before ``compensation and 
        benefits'' each place it appears; and
            (2) by inserting ``entire'' before ``private sector''.
    (c) Considerations.--For purposes of the amendments made by this 
section, any determination of ``total rates and types of compensation'' 
or ``total compensation and benefits'' shall, at a minimum, take into 
account pay, health benefits, retirement benefits, life insurance 
benefits, leave, holidays, and continuity and stability of employment.

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

    Section 1207 is amended by striking subsections (c) and (d) and 
inserting the following:
    ``(c)(1) If no agreement is reached within 30 days after the 
appointment of a mediator under subsection (b), or if the parties 
decide upon arbitration before the expiration of the 30-day period, an 
arbitration board shall be established consisting of 1 member selected 
by the Postal Service (from the list under paragraph (2)), 1 member 
selected by the bargaining representative of the employees (from the 
list under paragraph (2)), and the mediator appointed under subsection 
(b).
    ``(2) Upon receiving a request from either of the parties referred 
to in paragraph (1), the Director of the Federal Mediation and 
Conciliation Service shall provide a list of not less than 9 
individuals who are well qualified to serve as neutral arbitrators. 
Each person listed shall be an arbitrator of nationwide reputation and 
professional nature, a member of the National Academy of Arbitrators, 
and an individual whom the Director has determined to be willing and 
available to serve. If, within 7 days after the list is provided, 
either of the parties has not selected an individual from the list, the 
Director shall make the selection within 3 days.
    ``(3) The arbitration board shall give the parties a full and fair 
hearing, including an opportunity to present evidence in support of 
their claims, and an opportunity to present their case in person, by 
counsel, or by other representative as they may elect. The hearing 
shall be concluded no more than 40 days after the arbitration board is 
established.
    ``(4) No more than 7 days after the hearing is concluded, each 
party shall submit to the arbitration board 2 offer packages, each of 
which packages shall specify the terms of a proposed final agreement.
    ``(5) If no agreement is reached within 7 days after the last day 
allowable for the submission of an offer package under paragraph (4), 
each party shall submit to the arbitration board a single, final offer 
package specifying the terms of a proposed final agreement.
    ``(6) No later than 3 days after the submission of the final offer 
packages under paragraph (5), the arbitration board shall select 1 of 
those packages as its tentative award, subject to paragraph (7).
    ``(7)(A) The arbitration board may not select a final offer package 
under paragraph (6) unless it satisfies each of the following:
            ``(i) The offer complies with the requirements of sections 
        101(c) and 1003(a).
            ``(ii) The offer takes into account the current financial 
        condition of the Postal Service.
            ``(iii) The offer takes into account the long-term 
        financial condition of the Postal Service.
    ``(B)(i) If the board unanimously determines, based on clear and 
convincing evidence presented during the hearing under paragraph (3), 
that neither final offer package satisfies the conditions set forth in 
subparagraph (A), the board shall by majority vote--
            ``(I) select the package that best meets such conditions; 
        and
            ``(II) modify the package so selected to the minimum extent 
        necessary to satisfy such conditions.
    ``(ii) If modification (as described in subparagraph (B)(i)(II)) is 
necessary, the board shall have an additional 7 days to render its 
tentative award under this subparagraph.
    ``(8) The parties may negotiate a substitute award to replace the 
tentative award selected under paragraph (6) or rendered under 
paragraph (7) (as the case may be). If no agreement on a substitute 
award is reached within 10 days after the date on which the tentative 
award is so selected or rendered, the tentative award shall become 
final.
    ``(9) The arbitration board shall review any substitute award 
negotiated under paragraph (8) to determine if it satisfies the 
conditions set forth in paragraph (7)(A). If the arbitration board, by 
a unanimous vote taken within 3 days after the date on which the 
agreement on the substitute award is reached under paragraph (8), 
determines that the substitute award does not satisfy such conditions, 
the tentative award shall become final. In the absence of a vote, as 
described in the preceding sentence, the substitute agreement shall 
become final.
    ``(10) If, under paragraph (5), neither party submits a final offer 
package by the last day allowable under such paragraph, the arbitration 
board shall develop and issue a final award no later than 20 days after 
such last day.
    ``(11) A final award or agreement under this subsection shall be 
conclusive and binding upon the parties.
    ``(12) Costs of the arbitration board and mediation shall be shared 
equally by the Postal Service and the bargaining representative.
    ``(d) In the case of a bargaining unit whose recognized collective-
bargaining representative does not have an agreement with the Postal 
Service, if the parties fail to reach agreement within 90 days after 
the commencement of collective bargaining, a mediator shall be 
appointed in accordance with the provisions of subsection (b), unless 
the parties have previously agreed to another procedure for a binding 
resolution of their differences. If the parties fail to reach agreement 
within 180 days after the commencement of collective bargaining, an 
arbitration board shall be established to provide conclusive and 
binding arbitration in accordance with the provisions of subsection 
(c).''.

SEC. 306. POSTAL SERVICE WORKERS' COMPENSATION REFORM.

    (a) In General.--Effective 12 months after the triggering date of 
this section (as defined in subsection (e)(2)), section 1005 is amended 
by striking subsection (c) and inserting the following:
    ``(c)(1) For purposes of this subsection--
            ``(A) the term `postal employee' means an officer or 
        employee of the Postal Service or the former Post Office 
        Department; and
            ``(B) the term `retirement age' has the meaning given such 
        term under section 216(l)(1) of the Social Security Act.
    ``(2) The Postal Service shall design and administer a program for 
the payment of benefits for the disability or death of an individual 
resulting from personal injury sustained while in the performance of 
such individual's duties as a postal employee.
    ``(3) The program under this subsection--
            ``(A) shall be designed by the Postal Service in 
        consultation with appropriate employee representatives;
            ``(B) shall not provide for any amount payable to a 
        disabled postal employee to be augmented on the basis of number 
        of dependents; and
            ``(C) shall include provisions for automatic transition, 
        upon attainment of retirement age, to benefits involving, 
        coordinated with, or otherwise determined by reference to 
        retirement benefits.''.
    (b) Recommendations.--Not later than 6 months after the triggering 
date--
            (1) the Office of Personnel Management shall submit to the 
        appropriate committees of Congress recommendations for any 
        legislation or administrative actions which the Office 
        considers necessary to carry out the purposes of this section 
        with respect to any matter within the jurisdiction of the 
        Office, including any amendments which may be necessary with 
        respect to chapter 87 or 89 of title 5, United States Code; and
            (2) the Postal Service shall submit to the appropriate 
        committees of Congress recommendations for any legislation 
        which the Postal Service considers necessary to carry out the 
        purposes of this section with respect to any matter within the 
        jurisdiction of the Postal Service.
    (c) Notification Requirements.--Not later than 9 months after the 
triggering date, the Postal Service shall submit to the appropriate 
committees of Congress and shall cause to be published in the Federal 
Register a description of the program proposed by the Postal Service 
for implementation under section 1005(c) of title 39, United States 
Code, as amended by subsection (a). Included in the notification 
provided under the preceding sentence shall be--
            (1) a detailed statement of the benefits to be offered and 
        the persons eligible to receive those benefits;
            (2) provisions to ensure an orderly transition to the 
        system proposed to be implemented; and
            (3) such other information as the Postal Service considers 
        appropriate.
    (d) Commencement Date.--The program under section 1005(c) of title 
39, United States Code, as amended by subsection (a)--
            (1) shall begin to operate on such date as the Postmaster 
        General shall determine, except that such date shall be a date 
        occurring--
                    (A) not earlier than 12 months after the triggering 
                date; and
                    (B) not later than 24 months after the triggering 
                date; and
            (2) shall apply with respect to amounts payable for periods 
        beginning on or after the date on which the program begins to 
        operate, irrespective of date of the disability or death to 
        which such amounts relate.
    (e) Condition Precedent.--
            (1) In general.--The preceding provisions of this section 
        shall not become effective until the date on which the Postal 
        Service Financial Responsibility and Management Assistance 
        Authority (established under section 202)--
                    (A) makes a written determination that conditions 
                warrant their implementation; and
                    (B) submits such written determination to the 
                Postal Service, the Office of Personnel Management, and 
                the appropriate committees of Congress.
            (2) Triggering date.--For purposes of this section, the 
        term ``triggering date of this section'' or ``triggering date'' 
        means the date described in paragraph (1).
    (f) Appropriate Committees of Congress Defined.--For purposes of 
this section, the term ``appropriate committees of Congress'' means--
            (1) the Committee on Oversight and Government Reform of the 
        House of Representatives; and
            (2) the Committee on Homeland Security and Governmental 
        Affairs of the Senate.

SEC. 307. REPORTING REQUIREMENT.

    (a) In General.--Chapter 10 is amended by adding at the end the 
following:
``Sec. 1012. Official time reporting
    ``(a) Not later than March 31 of each calendar year, the Postal 
Service, in consultation with the Office of Management and Budget, 
shall submit to each House of Congress a report on the operation of 
this section during the fiscal year last ending before the start of 
such calendar year.
    ``(b) Each report by the Postal Service under this subsection shall 
include, with respect to the fiscal year described in subsection (a), 
at least the following information:
            ``(1) The total amount of official time granted to 
        employees.
            ``(2) The average amount of official time expended per 
        bargaining unit employee.
            ``(3) The specific types of activities or purposes for 
        which official time was granted, and the impact which the 
        granting of such official time for such activities or purposes 
        had on agency operations.
            ``(4) The total number of employees to whom official time 
        was granted, and, of that total, the number who were not 
        engaged in any activities or purposes except activities or 
        purposes involving the use of official time.
            ``(5) The total amount of compensation (including fringe 
        benefits) afforded to employees in connection with activities 
        or purposes for which they were granted official time.
    ``(c) All information included in a report by the Postal Service 
under this subsection with respect to a fiscal year--
            ``(1) shall be shown both for each supervisory and 
        managerial organization recognized under section 1004 and labor 
        organization recognized under section 1203 and for all 
        organizations together; and
            ``(2) shall be accompanied by the corresponding information 
        (submitted by the Postal Service in its report under this 
        subsection) for the fiscal year before the fiscal year to which 
        such report pertains, together with appropriate comparisons and 
        analyses.
    ``(d) For purposes of this subsection, the term `official time' 
means any period of time, regardless of Postal Service nomenclature--
            ``(1) which may be granted to an employee under this 
        chapter or chapter 12 (including a collective-bargaining 
        agreement entered into under chapter 12) to perform 
        representational or consultative functions; and
            ``(2) during which the employee would otherwise be in a 
        duty status.''.
    (b) Applicability.--The amendment made by subsection (a) shall be 
effective beginning with the report which, under the provisions of such 
amendment, is first required to be submitted by the Postal Service to 
each House of Congress by a date which occurs at least 6 months after 
the date of the enactment of this Act.
    (c) Clerical Amendment.--The table of sections for chapter 10 is 
amended by adding at the end the following:

``1012. Official time reporting.''.

                    TITLE IV--POSTAL SERVICE REVENUE

SEC. 401. ADEQUACY, EFFICIENCY, AND FAIRNESS OF POSTAL RATES.

    (a) In General.--Section 3622(d) is amended--
            (1) in paragraph (1)--
                    (A) by redesignating subparagraphs (B) through (E) 
                as subparagraphs (D) through (G), respectively; and
                    (B) by inserting after subparagraph (A) the 
                following:
                    ``(B) subject to the limitation under subparagraph 
                (A), establish postal rates to fulfill the requirement 
                that each market-dominant class, product, and type of 
                mail service (except for an experimental product or 
                service) bear the direct and indirect postal costs 
                attributable to such class, product, or type through 
                reliably identified causal relationships plus that 
                portion of all other costs of the Postal Service 
                reasonably assignable to such class, product, or type;
                    ``(C) establish postal rates for each group of 
                functionally equivalent agreements between the Postal 
                Service and users of the mail that--
                            ``(i) cover attributable cost;
                            ``(ii) improve the net financial position 
                        of the Postal Service; and
                            ``(iii) do not cause unreasonable 
                        disruption in the marketplace, consistent with 
                        subsection (c)(10)(B);
                for purposes of this subparagraph, a group of 
                functionally equivalent agreements shall consist of all 
                service agreements that are functionally equivalent to 
                each other within the same market-dominant product, but 
                shall not include agreements within an experimental 
                product;'';
            (2) in paragraph (3), by striking ``subsection (c),'' and 
        inserting ``subsection (c) and the provisions of title IV of 
        the Postal Reform Act of 2013,''; and
            (3) by adding at the end the following:
            ``(4) PRC study.--
                    ``(A) In general.--Within 90 days after the end of 
                the first fiscal year beginning after the date of 
                enactment of the Postal Reform Act of 2013, the Postal 
                Regulatory Commission shall complete a study to 
                determine the quantitative impact of the Postal 
                Service's excess capacity on the direct and indirect 
                postal costs attributable to any class that bears less 
                than 100 percent of its costs attributable (as 
                described in paragraph (1)(B)), according to the most 
                recent annual determination of the Postal Regulatory 
                Commission under section 3653.
                    ``(B) Requirements.--The study required under 
                subparagraph (A) shall--
                            ``(i) be conducted pursuant to regulations 
                        that the Postal Regulatory Commission shall 
                        prescribe within 90 days after the date of 
                        enactment of the Postal Reform Act of 2013, 
                        taking into account existing regulations for 
                        proceedings to improve the quality, accuracy, 
                        or completeness of ratemaking information under 
                        section 3652(e)(2) in effect on such date; and
                            ``(ii) for any year in which any class of 
                        mail bears less than 100 percent of its costs 
                        attributable (as described in paragraph 
                        (1)(B)), be updated annually by the Postal 
                        Service and included in its annual report to 
                        the Commission under section 3652, using such 
                        methodologies as the Commission shall by 
                        regulation prescribe.
            ``(5) Additional rates.--Starting not earlier than 12 
        months and not later than 18 months after the date on which the 
        first study described in paragraph (4) is completed, and at 
        least once in each subsequent 12-month period, the Postal 
        Service shall establish postal rates for each loss-making class 
        of mail to eliminate such losses (other than those caused by 
        the Postal Service's excess capacity) by exhausting all unused 
        rate authority as well as maximizing incentives to reduce costs 
        and increase efficiency, subject to the following:
                    ``(A) The term `loss-making', as used in this 
                paragraph with respect to a class of mail, means a 
                class of mail that bears less than 100 percent of its 
                costs attributable (as described in paragraph (1)(B)), 
                according to the most recent annual determination of 
                the Postal Regulatory Commission under section 3653, 
                adjusted to account for the quantitative effect of 
                excess capacity on the costs attributable of the class.
                    ``(B) Unused rate authority shall be annually 
                increased by 2 percentage points for each class of mail 
                that bears less than 90 percent of its costs 
                attributable (as described in paragraph (1)(B)), 
                according to the most recent annual determination of 
                the Postal Regulatory Commission under section 3653, 
                adjusted to account for the quantitative effect of 
                excess capacity on the costs attributable of the class, 
                with such increase in unused rate authority to take 
                effect 30 days after the date that the Commission 
                issues such determination.''.
    (b) Exception.--Section 3622(d) is amended by adding after 
paragraph (5) (as added by subsection (a)(2)) the following:
            ``(6) Exception.--The requirements of paragraph (1)(B) 
        shall not apply to a market-dominant product for which a 
        substantial portion of the product's mail volume consists of 
        inbound international mail with terminal dues rates determined 
        by the Universal Postal Union (and not by bilateral agreements 
        or other arrangements).''.

SEC. 402. REPEAL OF RATE PREFERENCES FOR QUALIFIED POLITICAL 
              COMMITTEES.

    Subsection (e) of section 3626 is repealed.

SEC. 403. USE OF NEGOTIATED SERVICE AGREEMENTS.

    (a) Streamlined Review of Qualifying Service Agreements for 
Competitive Products.--Section 3633 is amended by adding at the end the 
following:
    ``(c) Streamlined Review.--Not later than 90 days after the date of 
enactment of this subsection, after notice and opportunity for comment, 
the Postal Regulatory Commission shall promulgate (and may from time to 
time thereafter revise) regulations for streamlined after-the-fact 
review of newly proposed agreements between the Postal Service and 
users of the mail that provide rates not of general applicability for 
competitive products. Streamlined review shall apply only if agreements 
are functionally equivalent to existing agreements that have 
collectively covered attributable costs and collectively improved the 
net financial position of the Postal Service. The regulations issued 
under this subsection shall provide that streamlined review shall be 
concluded not later than 5 business days after the date on which the 
agreement is filed with the Commission and shall be limited to approval 
or disapproval of the agreement as a whole based on the Commission's 
determination of its functional equivalence. Agreements not approved 
may be resubmitted without prejudice under section 3632.''.
    (b) Submission of Service Agreements for Streamlined Review.--
Section 3632(b) is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following:
            ``(4) Rates for streamlined review.--In the case of rates 
        not of general applicability for competitive products that the 
        Postmaster General considers eligible for streamlined review 
        under section 3633(c), the Postmaster General shall cause the 
        agreement to be filed with the Postal Regulatory Commission by 
        a date that is on or before the effective date of any new rate 
        established under the agreement, as the Postmaster General 
        considers appropriate.''.
    (c) Transparency and Accountability for Service Agreements.--
            (1) Certain information required to be included in 
        determinations of compliance.--Section 3653 is amended--
                    (A) by redesignating subsections (c), (d), and (e) 
                as subsections (d), (e), and (f), respectively; and
                    (B) by inserting after subsection (b) the 
                following:
    ``(c) Written Determination.--Each annual written determination of 
the Commission under this section shall include the following:
            ``(1) Requirements.--For each group of functionally 
        equivalent agreements between the Postal Service and users of 
        the mail, whether such group fulfilled requirements to--
                    ``(A) cover costs attributable; and
                    ``(B) improve the net financial position of the 
                Postal Service.
            ``(2) Noncompliance.--Any group of functionally equivalent 
        agreements not meeting subparagraphs (A) and (B) of paragraph 
        (1) shall be determined to be in noncompliance under this 
        subsection.
            ``(3) Definition.--For purposes of this subsection, a group 
        of functionally equivalent agreements shall consist of 1 or 
        more service agreements that are functionally equivalent to 
        each other within the same market-dominant or competitive 
        product, but shall not include agreements within an 
        experimental product.''.
            (2) Criteria for special classifications relating to 
        market-dominant products.--
                    (A) Amendment.--Section 3622(c)(10) is amended by 
                striking subparagraphs (A) and (B) and inserting the 
                following:
                    ``(A) improve the net financial position of the 
                Postal Service by reducing Postal Service costs or 
                increasing the overall contribution to the 
                institutional costs of the Postal Service; and
                    ``(B) do not cause--
                            ``(i) unfair competitive advantage for the 
                        Postal Service or postal users eligible for the 
                        agreements; or
                            ``(ii) unreasonable disruption to the 
                        volume or revenues of other postal users.''.
                    (B) Applicability.--The amendment made by 
                subparagraph (A) shall take effect on the date of 
                enactment of this Act and shall apply with respect to 
                an agreement that--
                            (i) is filed with the Commission on or 
                        after such date of enactment; or
                            (ii) is remanded to the Commission by a 
                        court on or after such date of enactment.

SEC. 404. NONPOSTAL SERVICES.

    (a) Nonpostal Services.--
            (1) In general.--Part IV is amended by adding after chapter 
        36 the following:

                    ``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.
``Sec. 3701. Purpose
    ``This chapter is intended to enable the Postal Service to increase 
its net revenues through specific nonpostal products and services that 
are expressly authorized by this chapter. Postal Service revenues and 
expenses under this chapter shall be funded through the Postal Service 
Fund.
``Sec. 3702. Definitions
    ``As used in this chapter--
            ``(1) the term `nonpostal services' is limited to services 
        offered by the Postal Service that are expressly authorized by 
        this chapter and are not postal products or services;
            ``(2) the term `attributable costs' has the same meaning as 
        is given such term in section 3631; and
            ``(3) the term `year' means a fiscal year.
``Sec. 3703. Postal Service advertising program
    ``Notwithstanding any other provision of this title, the Postal 
Service may establish and manage a program that allows entities to 
advertise at Postal Service facilities, on Postal Service assets, and 
on Postal Service vehicles. Such a program shall be subject to the 
following requirements:
            ``(1) The Postal Service shall at all times ensure 
        advertising it permits is consistent with the integrity of the 
        Postal Service.
            ``(2) Any advertising program is required to cover a 
        minimum of 200 percent of its attributable costs in each year.
            ``(3) All advertising expenditures and revenues are subject 
        to annual compliance determination (including remedies for 
        noncompliance) applicable to nonpostal products.
            ``(4) Total advertising expenditures and revenues must be 
        disclosed in Postal Service annual reports.
``Sec. 3704. Postal Service program for State governments
    ``(a) In General.--Notwithstanding any other provision of this 
title, the Postal Service may establish a program to provide services 
for agencies of State governments within the United States, but only if 
such services--
            ``(1) shall provide enhanced value to the public, such as 
        by lowering the cost or raising the quality of such services or 
        by making such services more accessible;
            ``(2) do not interfere with or detract from the value of 
        postal services, including--
                    ``(A) the cost and efficiency of postal services; 
                and
                    ``(B) unreasonable access to postal retail service, 
                such as customer waiting time and access to parking; 
                and
            ``(3) provide a reasonable contribution to the 
        institutional costs of the Postal Service, defined as 
        reimbursement for each service and covering at least 150 
        percent of the attributable costs of such service in each year.
    ``(b) Public Notice.--At least 90 days before offering any services 
under this section, the Postal Service shall make each agreement with 
State agencies readily available to the public on its Web site, 
including a business plan that describes the specific services to be 
provided, the enhanced value to the public, terms of reimbursement, the 
estimated annual reimbursement to the Postal Service, and the estimated 
percentage of attributable Postal Service costs that will be covered by 
reimbursement (with documentation to support these estimates). The 
Postal Service shall solicit public comment for at least 30 days, with 
comments posted on its Web site, followed by its written response 
posted on its Web site at least 30 days before offering such services.
    ``(c) Approval Required.--The Governors of the Postal Service shall 
approve the provision of services under this section by a recorded 
vote, with at least \2/3\ of its membership voting for approval, with 
the vote publicly disclosed on the Postal Service Web site.
    ``(d) Classification of Services.--All services for a given agency 
provided under this section shall be classified as a separate activity 
subject to the requirements of annual reporting under section 3706. 
Such reporting shall also include information on the quality of service 
and related information to demonstrate that it satisfied the 
requirements of subsection (a). Information provided under this section 
shall be according to requirements that the Postal Regulatory 
Commission shall by regulation prescribe.
    ``(e) Definitions.--For the purpose of this section--
            ``(1) the term `State' includes the District of Columbia, 
        the Commonwealth of Puerto Rico, the United States Virgin 
        Islands, Guam, American Samoa, the Commonwealth of the Northern 
        Mariana Islands, and any other territory or possession of the 
        United States; and
            ``(2) the term `United States', when used in a geographical 
        sense, means the States.
``Sec. 3705. Postal Service program for other government agencies
    ``(a) In General.--The Postal Service may establish a program to 
provide property and services for other government agencies within the 
meaning of section 411, but only if such program provides a reasonable 
contribution to the institutional costs of the Postal Service, defined 
as reimbursement by each agency that covers at least 100 percent of the 
attributable costs of all property and service provided by the Postal 
Service in each year to such agency.
    ``(b) Classification of Services.--For each agency, all property 
and services provided by the Postal Service under this section shall be 
classified as a separate activity subject to the requirements of annual 
reporting under section 3706. Information provided under this section 
shall be according to requirements that the Postal Regulatory 
Commission shall by regulation prescribe.
``Sec. 3706. Transparency and accountability for nonpostal services
    ``(a) Annual Reports to the Commission.--
            ``(1) In general.--The Postal Service shall, no later than 
        90 days after the end of each year, prepare and submit to the 
        Postal Regulatory Commission a report (together with such 
        nonpublic annex to the report as the Commission may require 
        under subsection (b)) which shall analyze costs, revenues, 
        rates, and quality of service for this chapter, using such 
        methodologies as the Commission shall by regulation prescribe, 
        and in sufficient detail to demonstrate compliance with all 
        applicable requirements of this chapter.
            ``(2) Audits.--The Inspector General shall regularly audit 
        the data collection systems and procedures utilized in 
        collecting information and preparing such report. The results 
        of any such audit shall be submitted to the Postal Service and 
        the Postal Regulatory Commission.
    ``(b) Supporting Matter.--The Postal Regulatory Commission shall 
have access, in accordance with such regulations as the Commission 
shall prescribe, to the working papers and any other supporting matter 
of the Postal Service and the Inspector General in connection with any 
information submitted under this section.
    ``(c) Content and Form of Reports.--
            ``(1) In general.--The Postal Regulatory Commission shall, 
        by regulation, prescribe the content and form of the public 
        reports (and any nonpublic annex and supporting matter relating 
        to the report) to be provided by the Postal Service under this 
        section. Such reports shall be included with the annual 
        compliance determination reported under section 3653. In 
        carrying out this subsection, the Commission shall give due 
        consideration to--
                    ``(A) providing the public with timely, adequate 
                information to assess compliance;
                    ``(B) avoiding unnecessary or unwarranted 
                administrative effort and expense on the part of the 
                Postal Service; and
                    ``(C) protecting the confidentiality of information 
                that is commercially sensitive or is exempt from public 
                disclosure under section 552(b) of title 5.
            ``(2) Revised requirements.--The Commission may, on its own 
        motion or on request of any interested party, initiate 
        proceedings (to be conducted in accordance with regulations 
        that the Commission shall prescribe) to improve the quality, 
        accuracy, or completeness of Postal Service data required by 
        the Commission under this subsection whenever it shall appear 
        that--
                    ``(A) the attribution of costs or revenues to 
                property or services under this chapter has become 
                significantly inaccurate or can be significantly 
                improved;
                    ``(B) the quality of service data provided to the 
                Commission for annual reports under this chapter has 
                become significantly inaccurate or can be significantly 
                improved; or
                    ``(C) such revisions are, in the judgment of the 
                Commission, otherwise necessitated by the public 
                interest.
    ``(d) Confidential Information.--
            ``(1) In general.--If the Postal Service determines that 
        any document or portion of a document, or other matter, which 
        it provides to the Postal Regulatory Commission in a nonpublic 
        annex under this section contains information which is 
        described in section 410(c) of this title, or exempt from 
        public disclosure under section 552(b) of title 5, the Postal 
        Service shall, at the time of providing such matter to the 
        Commission, notify the Commission of its determination, in 
        writing, and describe with particularity the documents (or 
        portions of documents) or other matter for which 
        confidentiality is sought and the reasons therefor.
            ``(2) Treatment.--Any information or other matter described 
        in paragraph (1) to which the Commission gains access under 
        this section shall be subject to paragraphs (2) and (3) of 
        section 504(g) in the same way as if the Commission had 
        received notification with respect to such matter under section 
        504(g)(1).
    ``(e) Annual Compliance Determination.--
            ``(1) Opportunity for public comment.--After receiving the 
        reports required under subsection (a) for any year, the Postal 
        Regulatory Commission shall promptly provide an opportunity for 
        comment on such reports by any interested party, and an officer 
        of the Commission who shall be required to represent the 
        interests of the general public.
            ``(2) Determination of compliance or noncompliance.--Not 
        later than 90 days after receiving the submissions required 
        under subsection (a) with respect to a year, the Postal 
        Regulatory Commission shall make a written determination as to 
        whether any nonpostal activities during such year were or were 
        not in compliance with applicable provisions of this chapter 
        (or regulations promulgated under this chapter). The Postal 
        Regulatory Commission shall issue a determination of 
        noncompliance if the requirements for coverage of attributable 
        costs are not met. If, with respect to a year, no instance of 
        noncompliance is found to have occurred in such year, the 
        written determination shall be to that effect.
            ``(3) Noncompliance.--If, for a year, a timely written 
        determination of noncompliance is made under this chapter, the 
        Postal Regulatory Commission shall take appropriate action. If 
        the requirements for coverage of attributable costs specified 
        by this chapter are not met, the Commission shall, within 60 
        days after the determination, prescribe remedial action to 
        restore compliance as soon as practicable, which shall also 
        include the full restoration of revenue shortfalls during the 
        following fiscal year. The Commission may order the Postal 
        Service to discontinue a nonpostal service under section 3703 
        or 3704 that persistently fails to meet cost coverage 
        requirements.
            ``(4) Deliberate noncompliance.--In addition, in cases of 
        deliberate noncompliance by the Postal Service with the 
        requirements of this chapter, the Postal Regulatory Commission 
        may order, based on the nature, circumstances, extent, and 
        seriousness of the noncompliance, a fine (in the amount 
        specified by the Commission in its order) for each incidence of 
        such noncompliance. All receipts from fines imposed under this 
        subsection shall be deposited in the general fund of the 
        Treasury of the United States.''.
            (2) Clerical amendment.--The table of chapters at the 
        beginning of part IV is amended by adding after the item 
        relating to chapter 36 the following:

``37. Nonpostal Services....................................    3701''.
    (b) Conforming Amendments.--
            (1) Section 404(e).--Section 404(e) is amended by adding at 
        the end the following:
    ``(6) Licensing which, before the date of enactment of this 
paragraph, has been authorized by the Postal Regulatory Commission for 
continuation as a nonpostal service may not be used for any purpose 
other than--
            ``(A) to continue to provide licensed mailing and shipping 
        supplies offered as of June 23, 2011; or
            ``(B) to license other goods, products, or services, the 
        primary purpose of which is to promote and enhance the image or 
        brand of the Postal Service.
    ``(7) Nothing in this section shall be considered to prevent the 
Postal Service from establishing nonpostal products and services that 
are expressly authorized by chapter 37.''.
            (2) Section 409.--Section 409(f) is amended by inserting at 
        the end the following:
    ``(7) The provisions of this section shall not apply to any outdoor 
advertising structure or sign constructed, installed, operated, or 
maintained on a facility or asset owned or operated by the Postal 
Service except in a jurisdiction in which posting of off premise 
advertising signs for all persons, entities, governmental agencies, and 
others is prohibited by law.''.
            (3) Section 411.--The last sentence of section 411 is 
        amended by striking ``including reimbursability'' and inserting 
        ``including reimbursability within the limitations of chapter 
        37''.
            (4) Treatment of existing nonpostal services.--All 
        individual nonpostal services, provided directly or through 
        licensing, that are continued pursuant to section 404(e) of 
        title 39, United States Code, shall be considered to be 
        expressly authorized by chapter 37 of such title (as added by 
        subsection (a)(1)) and shall be subject to the requirements of 
        such chapter.

SEC. 405. ALASKA BYPASS MAIL MODERNIZATION.

    (a) Fair Competition for Alaska Bypass Mail.--
            (1) In general.--Section 5402 is amended--
                    (A) in subsection (g)(4)--
                            (i) in subparagraph (A), by striking 
                        ``existing'';
                            (ii) in subparagraph (B)--
                                    (I) in the matter preceding clause 
                                (i), by striking ``an existing mainline 
                                carrier'' and inserting ``a carrier 
                                permitted under subparagraph (A)''; and
                                    (II) in clause (i), by striking 
                                ``existing mainline carriers'' and 
                                inserting ``mainline carriers providing 
                                service''; and
                            (iii) in subparagraph (C), by striking 
                        ``existing'';
                    (B) in subsection (g)(5)--
                            (i) in subparagraph (A), by striking 
                        ``new'';
                            (ii) in subparagraph (B), by striking 
                        ``new''; and
                            (iii) in subparagraph (C), by striking 
                        ``new'';
                    (C) in subsection (h)(3)(A), by striking ``new or 
                existing''; and
                    (D) in subsection (i)(3), by striking ``new''.
            (2) Conforming amendment.--Paragraphs (12) and (15) of 
        section 5402(a) are repealed.
    (b) Reduction of Alaska Bypass Mail Subsidy.--
            (1) In general.--Chapter 54 is amended by adding at the end 
        the following:
``Sec. 5404. Reduction of Alaska bypass mail subsidy
    ``(a) Competitive Product Classification.--
            ``(1) In general.--Except as provided in this section, 
        Alaska bypass mail service under section 5402 shall be treated 
        as a separate competitive product for all purposes.
            ``(2) Transfer prohibited.--No part of Alaska bypass mail 
        service may be transferred to the market-dominant category of 
        mail under section 3642.
            ``(3) Limitations.--Alaska bypass mail service shall not be 
        treated as a competitive product for purposes of the 
        implementation of sections 3633(a) and 3634.
    ``(b) Minimum Cost Coverage.--
            ``(1) In general.--The Postal Service shall establish and 
        maintain rates and fees for matter sent by Alaska bypass mail 
        service--
                    ``(A) for fiscal year 2014, that cover at least 30 
                percent of the costs attributable to Alaska bypass mail 
                service in that fiscal year;
                    ``(B) for fiscal year 2015, that cover at least 35 
                percent of the costs attributable to Alaska bypass mail 
                service in that fiscal year;
                    ``(C) for fiscal year 2016, that cover at least 40 
                percent of the costs attributable to Alaska bypass mail 
                service in that fiscal year;
                    ``(D) for fiscal year 2017, that cover at least 45 
                percent of the costs attributable to Alaska bypass mail 
                service in that fiscal year; and
                    ``(E) for fiscal year 2018 and for each fiscal year 
                thereafter, that cover at least 50 percent of the costs 
                attributable to Alaska bypass mail service in the 
                applicable fiscal year.
            ``(2) Costs attributable.--The costs attributable to Alaska 
        bypass mail service for a fiscal year shall include all the 
        direct and indirect costs of Alaska bypass mail service during 
        that fiscal year that are attributable to that service through 
        reliably identified causal relationships.
            ``(3) Institutional costs.--Costs that can be attributed to 
        Alaska bypass mail service may not be classified as 
        institutional costs of the Postal Service.
    ``(c) Compliance.--
            ``(1) Annual review.--At least once each fiscal year, the 
        Postal Regulatory Commission shall determine whether the Postal 
        Service is in compliance with the requirements under subsection 
        (b).
            ``(2) Remedial actions.--If, under paragraph (1), the 
        Postal Regulatory Commission determines that the Postal Service 
        has not complied with the requirements under subsection (b) 
        with respect to a fiscal year, the Commission shall prescribe, 
        not later than 60 days after making such determination, actions 
        to ensure--
                    ``(A) the establishment and maintenance of rates 
                and fees for Alaska bypass mail service that recover 
                any costs required to have been covered for such fiscal 
                year under subsection (b), but that were not covered, 
                by the date that is not later than the last day of the 
                fiscal year that follows such fiscal year; and
                    ``(B) compliance with the requirements under 
                subsection (b) in subsequent fiscal years.
            ``(3) Limitation.--The Postal Regulatory Commission may not 
        order the Postal Service to discontinue Alaska bypass mail 
        service.
            ``(4) Regulations.--Not later than 90 days after the date 
        of enactment of this subsection, the Postal Regulatory 
        Commission shall issue regulations to implement this 
        subsection.''.
            (2) Clerical amendment.--The table of sections for chapter 
        54 is amended by adding at the end the following:

``5404. Reduction of Alaska bypass mail subsidy.''.

SEC. 406. APPROPRIATIONS MODERNIZATION.

    (a) In General.--Section 2401 is amended by striking subsections 
(b) through (d).
    (b) Effective Date.--The amendment made by subsection (a) shall be 
effective with respect to fiscal years beginning after the date of 
enactment of this Act.
    (c) Conforming Amendment.--Section 3627 is repealed.

SEC. 407. ENHANCED PRODUCT INNOVATION.

    (a) Dollar-Amount Limitation Relating to Market Tests of 
Experimental Products.--Section 3641(e)(1) is amended by striking 
``$10,000,000'' and inserting ``$50,000,000''.
    (b) Dollar-Amount Limitation Relating to Exemption Authority.--
Section 3641(e)(2) is amended by striking ``$50,000,000'' and inserting 
``$100,000,000''.

                    TITLE V--POSTAL SERVICE FINANCE

SEC. 501. TREATMENT OF POSTAL SERVICE POSTEMPLOYMENT BENEFIT FUNDING 
              PROJECTED SURPLUSES.

    Section 8423(b)(4) of title 5, United States Code, is amended by 
adding at the end the following:
                    ``(C) Not later than 30 days after the end of each 
                fiscal year, the Office of Personnel Management shall 
                transfer from Postal Service Federal Employee 
                Retirement System monies within the Civil Service 
                Retirement and Disability Fund to the Postal Service 
                Retiree Health Benefits Fund an amount equal to the 
                negative supplemental liability (if any), as calculated 
                under paragraph (1)(B), for the most recent fiscal year 
                available, less the sum of--
                            ``(i) the Postal supplemental liability, 
                        calculated under section 8348(h), for the same 
                        fiscal year (if any); and
                            ``(ii) any contribution required by this 
                        section that the Postal Service has not made 
                        between the close of the fiscal year of the 
                        calculation under paragraph (1)(B) and the 
                        close of the most recent fiscal year, as 
                        determined by the Office of Personnel 
                        Management.''.

SEC. 502. RETIREE HEALTH BENEFIT LIABILITY PAYMENT SCHEDULE.

    (a) In General.--Subsection 8909a(d) of title 5, United States 
Code, is amended--
            (1) in paragraph (2)(B), by striking ``2017'' and inserting 
        ``2015''; and
            (2) in paragraph (3)--
                    (A) in subparagraph (A)--
                            (i) in clause (iii), by adding ``and'' at 
                        the end;
                            (ii) in clause (iv), by striking the 
                        semicolon at the end and inserting a period; 
                        and
                            (iii) by striking clauses (v) through (x); 
                        and
                    (B) in subparagraph (B), by striking ``2017'' and 
                inserting ``2015''.
    (b) Conforming Amendment.--Section 8906(g)(2)(A) of title 5, United 
States Code, is amended by striking ``2016'' and inserting ``2014''.
    (c) Technical Correction.--The heading for section 8909a of title 
5, United States Code, is amended by striking ``Benefit'' and inserting 
``Benefits''.

SEC. 503. SUPPLEMENTARY BORROWING AUTHORITY DURING A CONTROL PERIOD.

    (a) In General.--Chapter 20 is amended by adding after section 2011 
the following:
``Sec. 2012. Supplementary borrowing authority
    ``(a) Supplementary Borrowing Authority.--Upon the commencement of 
the control period, subject to the approval of the Authority, the 
Postal Service is authorized to borrow money and issue and sell such 
obligations as may be necessary to carry out the purposes of this 
title, to the same extent, in the same manner, and subject to the same 
terms and conditions as if the maximum amount allowable under the 
provisions of section 2005(a)(2) for the fiscal year involved were 
equal to the maximum amount which (but for this section) would 
otherwise be allowable under such provisions, increased by 
$5,000,000,000.
    ``(b) Sunset.--The authority to borrow money and to issue and sell 
obligations under subsection (a) shall cease to be available after 
September 30, 2022.
    ``(c) Deposit.--Any amounts received under this section shall be 
deposited in the Postal Service Fund.
    ``(d) Properties To Be Set Aside.--Notwithstanding section 
2005(b)(2), the Postal Service shall take such measures as may be 
necessary and appropriate so that, during any period in which the 
Postal Service is using supplemental borrowing authority under 
subsection (a), a sufficient amount of real property has been pledged 
or otherwise set aside by the Postal Service to carry out subsection 
(e).
    ``(e) Outstanding Supplemental Debt Reduction.--
            ``(1) In general.--In the case of any full fiscal year in 
        which the Postal Service borrows funds pursuant to subsection 
        (a), the Postal Service shall, not later than September 30 of 
        such fiscal year, deposit into the Postal Service Fund an 
        amount such that the total obligations accrued and outstanding 
        pursuant to subsection (a) are, as of the close of such fiscal 
        year, at least 20 percent less than the total obligations so 
        accrued and outstanding as of the start of such fiscal year.
            ``(2) Sense of congress.--It is the sense of Congress that, 
        to achieve the requirement of paragraph (1), the Postal Service 
        should dispose of such real property as may be necessary.
    ``(f) Definitions.--For purposes of this section--
            ``(1) the term `Authority' means the Postal Service 
        Financial Responsibility and Management Assistance Authority, 
        established in title II of the Postal Reform Act of 2013; and
            ``(2) the term `control period' has the meaning given such 
        term in section 202(b)(1) of such Act.''.
    (b) Clerical Amendment.--The table of sections for chapter 20 is 
amended by adding at the end the following:

``2012. Supplemental borrowing authority.''.

SEC. 504. POSTAL SERVICE DELIVERY-POINT MODERNIZATION FUND.

    (a) In General.--Chapter 20 is further amended by adding after 
section 2012 (as added by section 503(a)) the following:
``Sec. 2013. Postal Service Delivery-Point Modernization Fund
    ``(a) Establishment.--There is established within the Treasury of 
the United States a revolving fund to be known as the `Postal Service 
Delivery-Point Modernization Fund', which shall be available without 
fiscal year limitation pursuant to the requirements of this section.
    ``(b) Funding.--
            ``(1) Authorization.--The Postal Service is authorized to 
        borrow money and to issue and sell such obligations as it 
        determines necessary solely to carry out the purposes of 
        section 3962. The aggregate amount of obligations issued by the 
        Postal Service which may be outstanding at any one time under 
        this paragraph shall not exceed $1,000,000,000.
            ``(2) Applicability of section 2005.--The provisions of 
        subsections 2005(b), (c), and (d) shall apply to obligations 
        issued under this subsection.
            ``(3) Deposit.--Any amounts received by the Postal Service 
        as a result of paragraph (1) shall be deposited in the Postal 
        Service Delivery-Point Modernization Fund.
    ``(c) Sunset.--The authority to borrow money and to issue and sell 
obligations under subsection (b) shall cease to be available after 
September 30, 2023.
    ``(d) Budgetary Treatment.--The receipts and disbursements of the 
Postal Service Delivery-Point Modernization Fund shall be accorded the 
same budgetary treatment as is accorded to receipts and disbursements 
of the Postal Service Fund under section 2009a.
    ``(e) Termination of Fund.--On September 30, 2023, any funds 
remaining in the Postal Service Delivery-Point Modernization Fund shall 
be used to satisfy any remaining obligations under subsection (b)(1), 
and any funds in excess of such obligations shall be deposited in the 
Postal Service Fund. After any excess funds have been so deposited, the 
Postal Service Delivery-Point Modernization Fund shall be 
terminated.''.
    (b) Clerical Amendment.--The table of sections for chapter 20 is 
amended by adding after the item relating to section 2012 (as added by 
section 503(b)) the following:

``2013. Postal Service Delivery-Point Modernization Fund.''.

SEC. 505. SPECIFIC RETIREMENT LIABILITY CALCULATIONS RELATING TO THE 
              POSTAL SERVICE.

    (a) Federal Employees Retirement System.--Section 8423(a) of title 
5, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A)--
                            (i) in clause (i), by striking 
                        ``subparagraph (B)),'' and inserting 
                        ``subparagraph (B) or (C)),''; and
                            (ii) in clause (ii), by striking ``and'' 
                        after the semicolon;
                    (B) in subparagraph (B)(ii), by striking the period 
                at the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(C) the product of--
                    ``(i) the normal-cost percentage, as determined for 
                employees (other than employees covered by subparagraph 
                (B)) of the United States Postal Service under 
                paragraph (5), multiplied by
                    ``(ii) the aggregate amount of basic pay payable by 
                the United States Postal Service, for the period 
                involved, to employees of the United States Postal 
                Service.''; and
            (2) by adding at the end the following:
    ``(5)(A) In determining the normal-cost percentage for employees of 
the United States Postal Service for purposes of paragraph (1)(C), the 
Office--
            ``(i) shall use demographic factors specific to such 
        employees, unless such data cannot be generated; and
            ``(ii) may use economic assumptions regarding wage and 
        salary growth that reflect the specific past, and likely 
        future, pay for such employees.
    ``(B) The United States Postal Service shall provide any data or 
projections the Office requires in order to determine the normal-cost 
percentage for employees of the United States Postal Service, 
consistent with subparagraph (A).
    ``(C) The Office shall review the determination of the normal-cost 
percentage for employees of the United States Postal Service and make 
such adjustments as the Office considers necessary--
            ``(i) upon request of the United States Postal Service, but 
        not more frequently than once each fiscal year; and
            ``(ii) at such other times as the Office considers 
        appropriate.
    ``(6) For the purpose of carrying out subsection (b)(1)(B), and 
consistent with paragraph (5), for fiscal year 2013, and each fiscal 
year thereafter, the Office--
            ``(A) shall use demographic factors specific to current and 
        former employees of the United States Postal Service, unless 
        such data cannot be generated; and
            ``(B) may use economic assumptions regarding wage and 
        salary growth that reflect the specific past, and likely 
        future, pay for current employees of the United States Postal 
        Service.''.
    (b) Civil Service Retirement System.--Section 8348(h) of title 5, 
United States Code, is amended by adding at the end the following:
    ``(4) For the purpose of carrying out paragraph (1), consistent 
with section 8423(b)(1)(B), for fiscal year 2013, and each fiscal year 
thereafter, the Office--
            ``(A) shall use demographic factors specific to current and 
        former employees of the United States Postal Service, unless 
        such data cannot be generated; and
            ``(B) may use economic assumptions regarding wage and 
        salary growth that reflect the specific past, and likely 
        future, pay for current employees of the United States Postal 
        Service.''.

                  TITLE VI--POSTAL CONTRACTING REFORM

SEC. 601. CONTRACTING PROVISIONS.

    (a) In General.--Part I is amended by adding at the end the 
following:

                  ``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.
``Sec. 701. Definitions
    ``In this chapter--
            ``(1) the term `contracting officer' means an employee of a 
        covered postal entity who has authority to enter into a postal 
        contract;
            ``(2) the term `covered postal entity' means--
                    ``(A) the Postal Service; or
                    ``(B) the Postal Regulatory Commission;
            ``(3) the term `head of a covered postal entity' means--
                    ``(A) in the case of the Postal Service, the 
                Postmaster General; or
                    ``(B) in the case of the Postal Regulatory 
                Commission, the Chairman of the Postal Regulatory 
                Commission;
            ``(4) the term `postal contract' means--
                    ``(A) in the case of the Postal Service, any 
                contract (including any agreement or memorandum of 
                understanding) entered into by the Postal Service for 
                the procurement of goods or services; or
                    ``(B) in the case of the Postal Regulatory 
                Commission, any contract (including any agreement or 
                memorandum of understanding) in an amount exceeding the 
                simplified acquisition threshold (as defined in section 
                134 of title 41 and adjusted under section 1908 of such 
                title) entered into by the Postal Regulatory Commission 
                for the procurement of goods or services; and
            ``(5) the term `senior procurement executive' means the 
        senior procurement executive of a covered postal entity.
``Sec. 702. Advocate for competition
    ``(a) Establishment and Designation.--
            ``(1) There is established in each covered postal entity an 
        advocate for competition.
            ``(2) The head of each covered postal entity shall 
        designate for the covered postal entity 1 or more officers or 
        employees (other than the senior procurement executive) to 
        serve as the advocate for competition.
    ``(b) Responsibilities.--The advocate for competition of a covered 
postal entity shall--
            ``(1) be responsible for promoting--
                    ``(A) the contracting out of functions of the 
                covered postal entity that the private sector can 
                perform equally well or better, and at lower cost; and
                    ``(B) competition to the maximum extent practicable 
                consistent with obtaining best value by promoting the 
                acquisition of commercial items and challenging 
                barriers to competition;
            ``(2) review the procurement activities of the covered 
        postal entity; and
            ``(3) prepare and transmit the annual report required under 
        subsection (c).
    ``(c) Annual Report.--
            ``(1) Preparation.--The advocate for competition of a 
        covered postal entity shall prepare an annual report describing 
        the following:
                    ``(A) The activities of the advocate under this 
                section.
                    ``(B) Initiatives required to promote contracting 
                out and competition.
                    ``(C) Barriers to contracting out and competition.
                    ``(D) In the case of the report prepared by the 
                competition advocate of the Postal Service, the number 
                of waivers made by the Postal Service under section 
                704(c).
            ``(2) Transmission.--The report under this subsection shall 
        be transmitted--
                    ``(A) to Congress;
                    ``(B) to the head of the postal entity;
                    ``(C) to the senior procurement executive of the 
                entity;
                    ``(D) in the case of the competition advocate of 
                the Postal Service, to each member of the Postal 
                Service Board of Governors; and
                    ``(E) in the case of the competition advocate of 
                the Postal Regulatory Commission, to each of the 
                Commissioners of the Commission.
``Sec. 703. Delegation of contracting authority
    ``(a) In General.--
            ``(1) Policy.--Not later than 60 days after the date of 
        enactment of this chapter, the head of each covered postal 
        entity shall issue a policy on contracting officer delegations 
        of authority for postal contracts for the covered postal 
        entity.
            ``(2) Contents.--The policy issued under paragraph (1) 
        shall require that--
                    ``(A) notwithstanding any delegation of authority 
                with respect to postal contracts, the ultimate 
                responsibility and accountability for the award and 
                administration of postal contracts resides with the 
                senior procurement executive; and
                    ``(B) a contracting officer shall maintain an 
                awareness of and engagement in the activities being 
                performed on postal contracts of which that officer has 
                cognizance, notwithstanding any delegation of authority 
                that may have been executed.
    ``(b) Posting of Delegations.--
            ``(1) In general.--The head of each covered postal entity 
        shall make any delegation of authority for postal contracts 
        outside the functional contracting unit readily available and 
        accessible on the Web site of the covered postal entity.
            ``(2) Effective date.--This paragraph shall apply to any 
        delegation of authority made on or after 30 days after the date 
        of enactment of this chapter.
``Sec. 704. Posting of noncompetitive purchase requests for 
              noncompetitive contracts
    ``(a) Posting Required.--
            ``(1) Postal regulatory commission.--The Postal Regulatory 
        Commission shall make the noncompetitive purchase request for 
        any noncompetitive award for any contract (including any 
        agreement or memorandum of understanding) entered into by the 
        Postal Regulatory Commission for the procurement of goods and 
        services, in an amount of $20,000 or more, including the 
        rationale supporting the noncompetitive award, publicly 
        available on the Web site of the Postal Regulatory Commission--
                    ``(A) not later than 14 days after the date of the 
                award of the noncompetitive contract; or
                    ``(B) not later than 30 days after the date of the 
                award of the noncompetitive contract, if the basis for 
                the award was a compelling business interest.
            ``(2) Postal service.--The Postal Service shall make the 
        noncompetitive purchase request for any noncompetitive award of 
        a postal contract in an amount of $250,000 or more, including 
        the rationale supporting the noncompetitive award, publicly 
        available on the Web site of the Postal Service--
                    ``(A) not later than 14 days after the date of the 
                award; or
                    ``(B) not later than 30 days after the date of the 
                award, if the basis for the award was a compelling 
                business interest.
            ``(3) Adjustments to the posting threshold for the postal 
        service.--
                    ``(A) Review and determination.--Not later than 
                January 31 of each year, the Postal Service shall--
                            ``(i) review the $250,000 threshold 
                        established under paragraph (2); and
                            ``(ii) based on any change in the Consumer 
                        Price Index for All Urban Consumers of the 
                        Department of Labor, determine whether an 
                        adjustment to the threshold shall be made.
                    ``(B) Amount of adjustments.--An adjustment under 
                subparagraph (A) shall be made in increments of $5,000. 
                If the Postal Service determines that a change in the 
                Consumer Price Index for a year would require an 
                adjustment in an amount that is less than $5,000, the 
                Postal Service may not make an adjustment to the 
                threshold for the year.
            ``(4) Effective date.--This subsection shall apply to any 
        noncompetitive contract awarded on or after the date that is 90 
        days after the date of enactment of this chapter.
    ``(b) Public Availability.--
            ``(1) In general.--Subject to paragraph (2), the 
        information required to be made publicly available by a covered 
        postal entity under subsection (a) shall be readily accessible 
        on the Web site of the covered postal entity.
            ``(2) Protection of proprietary information.--A covered 
        postal entity shall--
                    ``(A) carefully screen any description of the 
                rationale supporting a noncompetitive award required to 
                be made publicly available under subsection (a) to 
                determine whether the description includes proprietary 
                data (including any reference or citation to the 
                proprietary data) or security-related information; and
                    ``(B) remove any proprietary data or security-
                related information before making publicly available a 
                description of the rationale supporting a 
                noncompetitive award.
    ``(c) Waivers.--
            ``(1) Waiver permitted.--If the Postal Service determines 
        that making a noncompetitive purchase request for a postal 
        contract of the Postal Service publicly available would risk 
        placing the Postal Service at a competitive disadvantage 
        relative to a private sector competitor, the senior procurement 
        executive, in consultation with the advocate for competition of 
        the Postal Service, may waive the requirements under subsection 
        (a).
            ``(2) Form and content of waiver.--
                    ``(A) Form.--A waiver under paragraph (1) shall be 
                in the form of a written determination placed in the 
                file of the contract to which the noncompetitive 
                purchase request relates.
                    ``(B) Content.--A waiver under paragraph (1) shall 
                include--
                            ``(i) a description of the risk associated 
                        with making the noncompetitive purchase request 
                        publicly available; and
                            ``(ii) a statement that redaction of 
                        sensitive information in the noncompetitive 
                        purchase request would not be sufficient to 
                        protect the Postal Service from being placed at 
                        a competitive disadvantage relative to a 
                        private sector competitor.
            ``(3) Delegation of waiver authority.--The Postal Service 
        may not delegate the authority to approve a waiver under 
        paragraph (1) to any employee having less authority than the 
        senior procurement executive.
``Sec. 705. Review of ethical issues
    ``If a contracting officer identifies any ethical issues relating 
to a proposed contract and submits those issues and that proposed 
contract to the designated ethics official for the covered postal 
entity before the awarding of that contract, that ethics official 
shall--
            ``(1) review the proposed contract; and
            ``(2) advise the contracting officer on the appropriate 
        resolution of ethical issues.
``Sec. 706. Ethical restrictions on participation in certain 
              contracting activity
    ``(a) Definitions.--In this section--
            ``(1) the term `covered employee' means--
                    ``(A) a contracting officer; or
                    ``(B) any employee of a covered postal entity whose 
                decisionmaking affects a postal contract as determined 
                by regulations prescribed by the head of a covered 
                postal entity;
            ``(2) the term `final conviction' means a conviction, 
        whether entered on a verdict or plea, including a plea of nolo 
        contendere, for which a sentence has been imposed; and
            ``(3) the term `covered relationship' means a covered 
        relationship described in section 2635.502(b)(1) of title 5, 
        Code of Federal Regulations, or any successor thereto.
    ``(b) In General.--
            ``(1) Regulations.--The head of each covered postal entity 
        shall prescribe regulations that--
                    ``(A) require a covered employee to include in the 
                file of any noncompetitive purchase request for a 
                noncompetitive postal contract a written certification 
                that--
                            ``(i) discloses any covered relationship of 
                        the covered employee; and
                            ``(ii) states that the covered employee 
                        will not take any action with respect to the 
                        noncompetitive purchase request that affects 
                        the financial interests of a friend, relative, 
                        or person with whom the covered employee is 
                        affiliated in a nongovernmental capacity, or 
                        otherwise gives rise to an appearance of the 
                        use of public office for private gain, as 
                        described in section 2635.702 of title 5, Code 
                        of Federal Regulations, or any successor 
                        thereto;
                    ``(B) require a contracting officer to consult with 
                the ethics counsel for the covered postal entity 
                regarding any disclosure made by a covered employee 
                under subparagraph (A)(i), to determine whether 
                participation by the covered employee in the 
                noncompetitive purchase request would give rise to a 
                violation of part 2635 of title 5, Code of Federal 
                Regulations (commonly referred to as the Standards of 
                Ethical Conduct for Employees of the Executive Branch), 
                or any successor thereto;
                    ``(C) require the ethics counsel for a covered 
                postal entity to review any disclosure made by a 
                contracting officer under subparagraph (A)(i) to 
                determine whether participation by the contracting 
                officer in the noncompetitive purchase request would 
                give rise to a violation of part 2635 of title 5, Code 
                of Federal Regulations (commonly referred to as the 
                Standards of Ethical Conduct for Employees of the 
                Executive Branch), or any successor thereto;
                    ``(D) under subsections (d) and (e) of section 
                2635.502 of title 5, Code of Federal Regulations, or 
                any successor thereto, require the ethics counsel for a 
                covered postal entity to--
                            ``(i) authorize a covered employee that 
                        makes a disclosure under subparagraph (A)(i) to 
                        participate in the noncompetitive postal 
                        contract; or
                            ``(ii) disqualify a covered employee that 
                        makes a disclosure under subparagraph (A)(i) 
                        from participating in the noncompetitive postal 
                        contract;
                    ``(E) require a contractor to timely disclose to 
                the contracting officer in a bid, solicitation, award, 
                or performance of a postal contract any conflict of 
                interest with a covered employee; and
                    ``(F) include authority for the head of the covered 
                postal entity to grant a waiver or otherwise mitigate 
                any organizational or personal conflict of interest, if 
                the head of the covered postal entity determines that 
                the waiver or mitigation is in the best interests of 
                the covered postal entity.
            ``(2) Posting of waivers.--Not later than 30 days after the 
        head of a covered postal entity grants a waiver described in 
        paragraph (1)(F), the head of the covered postal entity shall 
        make the waiver publicly available on the Web site of the 
        covered postal entity.
    ``(c) Contract Voidance and Recovery.--
            ``(1) Unlawful conduct.--In any case in which there is a 
        final conviction for a violation of any provision of chapter 11 
        of title 18 relating to a postal contract, the head of a 
        covered postal entity may--
                    ``(A) void that contract; and
                    ``(B) recover the amounts expended and property 
                transferred by the covered postal entity under that 
                contract.
            ``(2) Obtaining or disclosing procurement information.--
                    ``(A) In general.--In any case in which a 
                contractor under a postal contract fails to timely 
                disclose a conflict of interest to the appropriate 
                contracting officer as required under the regulations 
                promulgated under subsection (b)(1)(E), the head of a 
                covered postal entity may--
                            ``(i) void that contract; and
                            ``(ii) recover the amounts expended and 
                        property transferred by the covered postal 
                        entity under that contract.
                    ``(B) Conviction or administrative determination.--
                A case described under subparagraph (A) is any case in 
                which--
                            ``(i) there is a final conviction for an 
                        offense punishable under section 2105 of title 
                        41; or
                            ``(ii) the head of a covered postal entity 
                        determines, based upon a preponderance of the 
                        evidence, that the contractor or someone acting 
                        for the contractor has engaged in conduct 
                        constituting an offense punishable under 
                        section 2105 of such title.''.
    (b) Clerical Amendment.--The table of chapters at the beginning of 
part I is amended by adding at the end the following:

``7. Contracting Provisions.................................     701''.

SEC. 602. TECHNICAL AMENDMENT TO DEFINITION.

    Section 7101(8) of title 41, United States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (C);
            (2) by striking the period at the end of subparagraph (D) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(E) the United States Postal Service and the 
                Postal Regulatory Commission.''.

SEC. 603. CONTRACT LIMITATION.

    (a) In General.--Each covered contract entered into within 6 months 
after the date on which the Postal Service commences any reduction in 
force shall include a requirement that the contractor provide a 
preference in the hiring of qualifying individuals for full-time 
positions created by or as a result of the contract.
    (b) Covered Contract.--For the purposes of this section, the term 
``covered contract'' means a contract--
            (1) for an amount greater than $250,000;
            (2) entered into by the Postal Service--
                    (A) within 2 years after the date of enactment of 
                this Act;
                    (B) with a person other than a small business 
                concern; and
                    (C) for the procurement of goods or services; and
            (3) for which such person will hire 10 or more individuals.
    (c) Qualifying Individual.--For the purposes of this section, the 
term ``qualifying individual'' means an individual who--
            (1) is separated from the Postal Service due to a reduction 
        in force;
            (2) at the time of separation--
                    (A) is a career postal employee; and
                    (B) is not a retirement-eligible individual;
            (3) as of the date of hire (as referred to in subsection 
        (b)(3)) has been continuously unemployed for a period not 
        exceeding 78 weeks; and
            (4) is qualified for the position involved.
    (d) Retirement-Eligible Individual.--For purposes of this section, 
the term ``retirement-eligible individual'', as used with respect to a 
qualifying individual, means an individual who, at the time of such 
individual's separation (as described in subsection (c)(1)), satisfies 
the age and service requirements for entitlement to an annuity under--
            (1) subsection (a), (b), (c), or (f) of section 8336 of 
        title 5, United States Code; or
            (2) subsection (a), (b), (c), (d), or (g) of section 8412 
        of title 5, United States Code.
    (e) Small Business Concern.--For purposes of this section, the term 
``small business concern'' means a small business as defined pursuant 
to section 3 of the Small Business Act and relevant regulations 
prescribed pursuant thereto.

                      TITLE VII--OTHER PROVISIONS

SEC. 701. POSTAL FACILITY DESIGNATIONS.

    (a) Facilities Designated.--
            (1) Officer tommy decker memorial post office.--
                    (A) Designation.--The facility of the United States 
                Postal Service located at 14 Red River Avenue North in 
                Cold Spring, Minnesota, shall be known and designated 
                as the ``Officer Tommy Decker Memorial Post Office''.
                    (B) References.--Any reference in a law, map, 
                regulation, document, paper, or other record of the 
                United States to the facility referred to in subsection 
                (a) shall be deemed to be a reference to the ``Officer 
                Tommy Decker Memorial Post Office''.
            (2) Richard k. salick post office.--
                    (A) Designation.--The facility of the United States 
                Postal Service located at 500 North Brevard Avenue in 
                Cocoa Beach, Florida, shall be known and designated as 
                the ``Richard K. Salick Post Office''.
                    (B) References.--Any reference in a law, map, 
                regulation, document, paper, or other record of the 
                United States to the facility referred to in subsection 
                (a) shall be deemed to be a reference to the ``Richard 
                K. Salick Post Office''.
            (3) National park ranger margaret anderson post office.--
                    (A) Designation.--The facility of the United States 
                Postal Service located at 103 Center Street West in 
                Eatonville, Washington, shall be known and designated 
                as the ``National Park Ranger Margaret Anderson Post 
                Office''.
                    (B) References.--Any reference in a law, map, 
                regulation, document, paper, or other record of the 
                United States to the facility referred to in subsection 
                (a) shall be deemed to be a reference to the ``National 
                Park Ranger Margaret Anderson Post Office''.
            (4) Judge shirley a. tolentino post office building.--
                    (A) Designation.--The facility of the United States 
                Postal Service located at 369 Martin Luther King Jr. 
                Drive in Jersey City, New Jersey, shall be known and 
                designated as the ``Judge Shirley A. Tolentino Post 
                Office Building''.
                    (B) References.--Any reference in a law, map, 
                regulation, document, paper, or other record of the 
                United States to the facility referred to in subsection 
                (a) shall be deemed to be a reference to the ``Judge 
                Shirley A. Tolentino Post Office Building''.
    (b) Sense of Congress.--It is the sense of Congress that additional 
postal facility designations be included in postal reform legislation.

SEC. 702. RESPONSE TO SUBMISSIONS BY THE POSTAL SERVICE.

    (a) In General.--Chapter 5 is amended by adding at the end the 
following:
``Sec. 506. Submissions by the Postal Service to the Postal Regulatory 
              Commission
    ``Whenever the Postal Service submits to the Postal Regulatory 
Commission any notice, petition, request, or other filing intended to 
initiate a new proceeding before the Commission, the Commission shall 
make an initial determination that such filing presents adequate 
information upon which the Commission may make its decision or advisory 
opinion. If the Commission's initial determination is that the Postal 
Service's filing is inadequate, it shall dismiss the filing without 
prejudice.''.
    (b) Clerical Amendment.--The table of sections for chapter 5 is 
amended by adding at the end the following:

``506. Submissions by the Postal Service to the Postal Regulatory 
                            Commission.''.

SEC. 703. FAIR STAMP-EVIDENCING COMPETITION.

    Section 404(a) is amended--
            (1) in paragraph (2), by striking ``or'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(4) offer to the public any postage-evidencing product or 
        service that does not comply with any rule or regulation that 
        would be applicable to such product or service if the product 
        or service were offered by a private company.''.

SEC. 704. USPS INNOVATION OFFICER AND ACCOUNTABILITY.

    (a) In General.--Chapter 2 is amended by adding at the end the 
following:

``SEC. 209. USPS INNOVATION OFFICER AND ACCOUNTABILITY.

    ``(a) In General.--There shall be in the Postal Service a Chief 
Innovation Officer selected by the Postmaster General who shall have 
proven expertise and a record of success in 1 or more of the following: 
postal and shipping industry, innovation product research and 
development, marketing brand strategy, emerging communications 
technology, or business process management. The Chief Innovation 
Officer shall manage the Postal Service's development and 
implementation of innovative postal and nonpostal products and 
services.
    ``(b) Duties.--The Chief Innovation Officer shall have as primary 
duties--
            ``(1) leading the development of innovative nonpostal 
        products and services that will maximize revenue to the Postal 
        Service;
            ``(2) developing innovative postal products and services, 
        particularly those that utilize emerging information 
        technologies, to maximize revenue to the Postal Service;
            ``(3) monitoring the performance of innovative products and 
        services and revising them as needed to meet changing market 
        trends; and
            ``(4) taking into consideration comments or advisory 
        opinions, if applicable, issued by the Postal Regulatory 
        Committee prior to the initial sale of innovative postal or 
        nonpostal products and services.
    ``(c) Designation.--
            ``(1) Deadline.--As soon as practicable after the date of 
        enactment of this section, but no later than January 1, 2014, 
        the Postmaster General shall designate a Chief Innovation 
        Officer.
            ``(2) Condition.--Nothing in this section shall be 
        construed to prohibit an individual who holds another office or 
        position in the Postal Service from serving as the Chief 
        Innovation Officer under this chapter. However, upon 
        appointment to the position of the Chief Innovation Officer, 
        such individual may not, while serving in such office, 
        concurrently hold any other office or position in the Postal 
        Service.
    ``(d) Innovation Strategy.--
            ``(1) In general.--Not later than 12 months after the date 
        on which the Chief Innovation Officer is designated under 
        subsection (c)(1), the Postmaster General shall submit to the 
        Committee on Homeland Security and Governmental Affairs of the 
        Senate and the Committee on Oversight and Government Reform of 
        the House of Representatives a comprehensive strategy for 
        maximizing revenues through innovative postal and nonpostal 
        products and services.
            ``(2) Matters to be addressed.--At a minimum, the strategy 
        required by this section shall address--
                    ``(A) the specific innovative postal and nonpostal 
                products and services to be developed and offered by 
                the Postal Service, including the nature of the market 
                to be filled by each product and service and the likely 
                date by which each product and service will be 
                introduced;
                    ``(B) the cost of developing and offering each 
                product or service;
                    ``(C) the anticipated sales volume of each product 
                and service;
                    ``(D) the anticipated revenues and profits expected 
                to be generated by each product and service;
                    ``(E) the likelihood of success of each innovative 
                product and service as well as the risks associated 
                with the development and sale of each innovative 
                product and service;
                    ``(F) the trends anticipated in market conditions 
                that may affect the success of each product and service 
                over the 5-year period beginning on the date such 
                strategy or update is submitted; and
                    ``(G) the metrics that will be utilized to assess 
                the effectiveness of the innovation strategy.
            ``(3) Strategy updates.--On January 1, 2018, and every 3 
        years thereafter, the Chief Innovation Officer shall submit an 
        update to the innovation strategy submitted under paragraph (1) 
        to the Committee on Homeland Security and Governmental Affairs 
        of the Senate, the Committee on Oversight and Government Reform 
        of the House of Representatives, and the Postal Regulatory 
        Commission.
    ``(e) Report on Performance.--
            ``(1) In general.--The Postmaster General shall submit to 
        the Committee on Homeland Security and Governmental Affairs of 
        the Senate, the Committee on Oversight and Government Reform of 
        the House of Representatives, and the Postal Regulatory 
        Commission with the President's budget submission under section 
        1105(a) of title 31 a report that details the Postal Service's 
        progress in implementing the innovation strategy.
            ``(2) Matters to be addressed.--At a minimum, the report 
        required by this section shall address--
                    ``(A) the revenue generated by each product and 
                service developed through the innovation strategy and 
                the costs of developing and offering each such product 
                and service for the most recent fiscal year;
                    ``(B) the total sales volume and revenue generated 
                by each product and service on a monthly basis for the 
                preceding year;
                    ``(C) trends in the markets filled by each product 
                and service;
                    ``(D) products and services identified in the 
                innovation strategy that are to be discontinued, the 
                date on which the discontinuance will occur, and the 
                reasons for the discontinuance;
                    ``(E) alterations in products and services 
                identified in the innovation strategy that will be made 
                to meet changing market conditions, and an explanation 
                of how these alterations will ensure the success of the 
                products and services; and
                    ``(F) the performance of the innovation strategy 
                according to the metrics identified in subsection 
                (d)(2)(G).
    ``(f) Comptroller General.--
            ``(1) In general.--The Comptroller General shall conduct a 
        study on the implementation of the innovation strategy not 
        later than 4 years after the date of enactment of this section.
            ``(2) Contents.--At a minimum, the Comptroller General 
        shall assess the effectiveness of the Postal Service in 
        identifying, developing, and selling innovative postal and 
        nonpostal products and services. The study shall also include--
                    ``(A) an audit of the costs of developing each 
                innovative postal and nonpostal product and service 
                developed or offered by the Postal Service during the 
                period beginning on the date of enactment of this 
                section and ending 4 years after such date;
                    ``(B) the sales volume of each such product and 
                service;
                    ``(C) the revenues and profits generated by each 
                such product and service; and
                    ``(D) the likelihood of continued success of each 
                such product and service.
            ``(3) Submission.--The results of the study required under 
        this subsection shall be submitted to the Committee on Homeland 
        Security and Governmental Affairs of the Senate and the 
        Committee on Oversight and Government Reform of the House of 
        Representatives.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 2 is amended by adding at the end the following:

``209. USPS innovation officer and accountability.''.

SEC. 705. POSTAL REGULATORY COMMISSION TRAVEL REPORTING.

    Section 504(d) is amended--
            (1) by striking ``(d)'' and inserting ``(d)(1)''; and
            (2) by adding at the end the following:
            ``(2) Not later than 60 days after the end of each fiscal 
        year, the Postal Regulatory Commissioners shall submit an 
        itemized report describing all travel and reimbursable business 
        travel expenses paid to each Commissioner, including the 
        Chairman, when performing regulatory duties to the Committee on 
        Oversight and Government Reform of the House of Representatives 
        and the Committee on Homeland Security and Governmental Affairs 
        of the Senate. The report submitted under this paragraph shall 
        include a detailed justification for any travel or reimbursable 
        business travel expense that deviates from the Commission's 
        travel and reimbursable business travel expense policies and 
        guidelines.''.
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