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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2690 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 2690

  To enhance the long-term profitability of the United States Postal 
Service through enhanced innovation, operational flexibility, workforce 
                  realignment, and regulatory relief.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 16, 2013

 Mr. Cummings (for himself, Mr. Lynch, Mr. Tierney, Mr. Connolly, Ms. 
 Speier, Ms. Norton, Mr. Danny K. Davis of Illinois, and Ms. Kelly of 
  Illinois) introduced the following bill; which was referred to the 
 Committee on Oversight and Government Reform, and in addition to the 
Committee on the Judiciary, for a period to be subsequently determined 
 by the Speaker, in each case for consideration of such provisions as 
        fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
  To enhance the long-term profitability of the United States Postal 
Service through enhanced innovation, operational flexibility, workforce 
                  realignment, and regulatory relief.

    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 ``Innovate to 
Deliver Act of 2013''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents; references.
     TITLE I--POSTAL SERVICE PROFITABILITY AND REVENUE-GENERATING 
                              ENHANCEMENTS

            Subtitle A--Postal Service Products and Pricing

Sec. 101. USPS innovation officer and accountability.
Sec. 102. Authority to offer nonpostal services.
Sec. 103. Requirement that market-dominant products cover attributable 
                            costs.
Sec. 104. PRC to revisit CPI cap instituted under PAEA.
Sec. 105. Enhanced product innovation.
Sec. 106. Authority to ship beer, wine and distilled spirits.
Sec. 107. Repeal of uniform rate for books, films, and other materials.
                 Subtitle B--Postal Service Management

Sec. 108. USPS balanced budget minimum requirement.
Sec. 109. Reporting requirement for Board of Governors and Postal 
                            Regulatory Commissioners.
Sec. 110. Restrictions on postal service executive compensation.
Sec. 111. Investment of competitive product moneys.
    TITLE II--POSTAL SERVICE WORKFORCE REALIGNMENT AND RIGHT-SIZING

Sec. 201. Separate normal-cost percentage recalculation of Federal 
                            Employees Retirement System.
Sec. 202. Treatment of surplus contributions to Federal Employees 
                            Retirement System.
Sec. 203. Sense of Congress.
Sec. 204. Contributions to Thrift Savings Fund of voluntary separation 
                            incentive payments.
Sec. 205. Service credit contributions of voluntary separation 
                            incentive payments.
Sec. 206. Modification of prepayment schedule relating to Postal 
                            Service Retiree Health Benefits Fund.
Sec. 207. Study on USPS workforce realignment and right-sizing options.
Sec. 208. Applicability of provisions relating to reductions in force.
Sec. 209. Enhanced reporting on facility network initiatives.
      TITLE III--POSTAL SERVICE IMPROVEMENTS AND REGULATORY RELIEF

Sec. 301. Permit appeal rights for closing of postal stations and 
                            branches.
Sec. 302. Intra-agency cooperative agreements.
Sec. 303. Grouping of negotiated service agreements.
Sec. 304. Simplification of process for classification of competitive 
                            products.
Sec. 305. Development of new market-dominant classes of mail.
Sec. 306. Expedited consideration of service changes by PRC.
    (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.

     TITLE I--POSTAL SERVICE PROFITABILITY AND REVENUE-GENERATING 
                              ENHANCEMENTS

            Subtitle A--Postal Service Products and Pricing

SEC. 101. 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. 102. AUTHORITY TO OFFER NONPOSTAL SERVICES.

    (a) Specific Power.--Section 404(a) is amended--
            (1) in paragraph (7), by striking ``and'' at the end;
            (2) in paragraph (8), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(9) to provide nonpostal services in accordance with 
        subsection (e).''.
    (b) Nonpostal Services.--Section 404(e) is amended to read as 
follows:
    ``(e)(1) The Postal Service may provide nonpostal services that use 
the processing, transportation, delivery, retail network, technology, 
or other resources of the Postal Service in a manner consistent with 
the public interest.
    ``(2) At least 90 days before offering new nonpostal services, the 
Postal Service shall request an advisory opinion from the Postal 
Regulatory Commission that evaluates the extent to which the provision 
of such nonpostal services--
            ``(A) would use the processing, transportation, delivery, 
        retail network, technology, or other resources of the Postal 
        Service; and
            ``(B) would be consistent with the public interest.
    ``(3) Within 45 days after receiving the request under paragraph 
(2), the Postal Regulatory Commission--
            ``(A) shall issue its advisory opinion to the Postal 
        Service; and
            ``(B) shall transmit a copy of such opinion, together with 
        the original request, to--
                    ``(i) the Committee on Oversight and Government 
                Reform of the House of Representatives; and
                    ``(ii) the Committee on Homeland Security and 
                Governmental Affairs of the Senate.
    ``(4) For purposes of this title, the term `nonpostal services' 
means services and products other than postal services as defined in 
section 102(5), including--
            ``(A) check-cashing services;
            ``(B) new technology and media services;
            ``(C) warehousing and logistics;
            ``(D) facility leasing; and
            ``(E) public internet access services.''.

SEC. 103. REQUIREMENT THAT MARKET-DOMINANT PRODUCTS COVER ATTRIBUTABLE 
              COSTS.

    (a) Repeal.--Paragraph (2) of section 3622(c) is repealed.
    (b) Each Class To Bear Attributable Costs.--Section 3622(d)(1) is 
amended--
            (1) by redesignating subparagraphs (A) through (E) as 
        subparagraphs (B) through (F);
            (2) by inserting before subparagraph (B) (as so 
        redesignated by paragraph (1)) the following:
                    ``(A) require that each class or type of mail 
                service shall bear the direct and indirect postal costs 
                attributable to such class or type through reliably 
                identified causal relationships plus that portion of 
                all other costs of the Postal Service reasonably 
                assignable to such class or type;''; and
            (3) in subparagraph (B) (as so redesignated by paragraph 
        (1)) by inserting ``, excluding changes required to satisfy 
        subparagraph (A),'' before ``to be set''.

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

    Section 3622 is amended--
            (1) in subsection (c)--
                    (A) in paragraph (13), by striking ``and'' at the 
                end;
                    (B) by redesignating paragraph (14) as paragraph 
                (15); and
                    (C) by inserting after paragraph (13) the 
                following:
            ``(14) the value to the Postal Service of having pricing 
        flexibility that would apply a price cap across all classes of 
        market dominant products in comparison to a class-based price 
        cap; and''; and
            (2) in subsection (d)(3), by striking ``Ten'' and inserting 
        ``Seven''.

SEC. 105. 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''.

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

    (a) Mailability.--
            (1) Nonmailable articles.--Section 1716(f) of title 18, 
        United States Code, is amended by striking ``mails'' and 
        inserting ``mails, except to the extent that the mailing is 
        allowable under section 3001(p) of title 39''.
            (2) Application of laws.--Section 1161 of title 18, United 
        States Code, is amended, by inserting ``, and, with respect to 
        the mailing of distilled spirits, wine, or malt beverages (as 
        those terms are defined in section 117 of the Federal Alcohol 
        Administration Act (27 U.S.C. 211)), is in conformity with 
        section 3001(p) of title 39'' after ``Register''.
    (b) Regulations.--Section 3001 of title 39, United States Code, is 
amended by adding at the end the following:
    ``(p)(1) In this subsection, the terms `distilled spirits', `wine', 
and `malt beverage' have the same meanings as in section 117 of the 
Federal Alcohol Administration Act (27 U.S.C. 211).
    ``(2) Distilled spirits, wine, or malt beverages shall be 
considered mailable if mailed--
            ``(A) in accordance with the laws and regulations of--
                    ``(i) the State, territory, or district of the 
                United States where the sender or duly authorized agent 
                initiates the mailing; and
                    ``(ii) the State, territory, or district of the 
                United States where the addressee or duly authorized 
                agent takes delivery; and
            ``(B) to an addressee who is at least 21 years of age--
                    ``(i) who provides a signature and presents a 
                valid, government-issued photo identification upon 
                delivery; or
                    ``(ii) the duly authorized agent of whom--
                            ``(I) is at least 21 years of age; and
                            ``(II) provides a signature and presents a 
                        valid, government-issued photo identification 
                        upon delivery.
    ``(3) The Postal Service shall prescribe such regulations as may be 
necessary to carry out this subsection.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the earlier of--
            (1) the date on which the Postal Service issues regulations 
        under section 3001(p) of title 39, United States Code, as 
        amended by this section; or
            (2) 120 days after the date of enactment of this Act.

SEC. 107. REPEAL OF UNIFORM RATE FOR BOOKS, FILMS, AND OTHER MATERIALS.

    (a) In General.--Section 3683 is repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 36 is amended by repealing the item relating to section 3683.

                 Subtitle B--Postal Service Management

SEC. 108. USPS BALANCED BUDGET MINIMUM REQUIREMENT.

    Section 404(b) is amended--
            (1) by striking ``(b)'' and inserting ``(b)(1)''; and
            (2) by adding at the end the following:
    ``(2) Notwithstanding subparagraphs (B) or (E) of section 
3622(d)(1), within 180 days after the date of enactment of this 
paragraph, the Governors shall ensure that the rates and fees charged 
for market dominant products, and the level and quality of service 
provided by the Postal Service, shall be adjusted in accordance with 
current law so that the total revenues received by the Postal Service, 
in fiscal year 2014 and each subsequent fiscal year, from all sources 
are at least equal to the total costs incurred in the provision of 
postal services, except that the Governors shall continue to provide 
all public services for which appropriations are made to the Postal 
Service under section 2401.
    ``(3) After the end of the 2-year period beginning on October 1, 
2013, for any fiscal year that the Postal Service is not in compliance 
with paragraph (2), the Governors shall not receive a salary or 
compensation of any kind for the following fiscal year, but shall be 
reimbursed for travel and reasonable expenses incurred in attending 
meetings of the Board.''.

SEC. 109. REPORTING REQUIREMENT FOR BOARD OF GOVERNORS AND POSTAL 
              REGULATORY COMMISSIONERS.

    (a) Board of Governors.--Section 202(a) is amended by adding at the 
end the following:
            ``(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) Administration.--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.''.

SEC. 110. RESTRICTIONS ON POSTAL SERVICE EXECUTIVE COMPENSATION.

    (a) Limitations on Compensation.--Section 1003 is amended--
            (1) in subsection (a), by striking the last sentence; and
            (2) by adding at the end the following:
    ``(e) Limitations on Compensation.--
            ``(1) Rates of basic pay.--
                    ``(A) In general.--Subject to subparagraph (B), an 
                officer or employee of the Postal Service may not be 
                paid at a rate of basic pay that exceeds the rate of 
                basic pay for level II of the Executive Schedule under 
                section 5313 of title 5.
                    ``(B) Very senior executives.--Not more than 6 
                officers or employees of the Postal Service that are in 
                very senior executive positions, as determined by the 
                Board of Governors, may be paid at a rate of basic pay 
                that does not exceed the rate of basic pay for level I 
                of the Executive Schedule under section 5312 of title 
                5.
            ``(2) Benefits.--An officer or employee of the Postal 
        Service who is in a critical senior executive or equivalent 
        position, as designated under section 3686(c), may not receive 
        fringe benefits (within the meaning given that term under 
        section 1005(f)) that are greater than the fringe benefits 
        received by supervisory and other managerial personnel who are 
        not subject to collective-bargaining agreements under chapter 
        12.''.
    (b) Limitation on Bonus Authority.--Section 3686 is amended--
            (1) in subsection (a), by striking ``The Postal Service'' 
        and inserting ``Subject to subsection (f), the Postal 
        Service''; and
            (2) by adding at the end the following:
    ``(f) Limitation on Bonus Authority.--
            ``(1) Determination.--Not later than 60 days after the end 
        of fiscal year 2014 and each fiscal year thereafter, the Office 
        of Management and Budget shall determine whether the Postal 
        Service has, with respect to such fiscal year, implemented the 
        measures needed to achieve long-term solvency and balanced 
        budgeting, as required under paragraphs (2) and (3) of section 
        404(b). In order to make such determination, the Office of 
        Management and Budget shall use the information provided under 
        section 2009.
            ``(2) Limitation.--The Postal Service may not provide a 
        bonus or other reward under this section to an officer or 
        employee of the Postal service in a critical senior executive 
        or equivalent position, as designated under subsection (c), 
        during a covered year.
            ``(3) Definition.--In this subsection, the term `covered 
        year' means the fiscal year following a fiscal year with 
        respect to which the Office of Management and Budget determines 
        under paragraph (1) that the Postal Service has not implemented 
        the measures needed to achieve long-term solvency and balanced 
        budgeting, as required under paragraphs (2) and (3) of section 
        404(b).''.
    (c) Effective Date; Applicability.--The amendments made by 
subsections (a) through (c) shall--
            (1) take effect on the date of enactment of this Act; and
            (2) apply to any contract entered or modified by the Postal 
        Service on or after the date of enactment of this Act.
    (d) Sunset.--Effective 2 years after the date of enactment of this 
Act--
            (1) section 1003 is amended--
                    (A) in subsection (a), by adding at the end the 
                following: ``No officer or employee shall be paid 
                compensation at a rate in excess of the rate for level 
                I of the Executive Schedule under section 5312 of title 
                5.''; and
                    (B) by striking subsection (e); and
            (2) section 3686 is amended--
                    (A) in subsection (a), by striking ``Subject to 
                subsection (f), the Postal Service'' and inserting 
                ``The Postal Service''; and
                    (B) by striking subsection (f).

SEC. 111. INVESTMENT OF COMPETITIVE PRODUCT MONEYS.

    Section 2003 is amended--
            (1) by redesignating subsections (d) through (h) as 
        subsections (e) through (i), respectively; and
            (2) by inserting after subsection (c) the following:
    ``(d) Notwithstanding any other provision of this section, if the 
Postal Service determines that the moneys of the Competitive Products 
Fund are in excess of current needs, it may invest such amounts as it 
considers appropriate in accordance with regulations which the 
Secretary of the Treasury shall prescribe within 180 days after the 
date of enactment of this subsection.''.

    TITLE II--POSTAL SERVICE WORKFORCE REALIGNMENT AND RIGHT-SIZING

SEC. 201. SEPARATE NORMAL-COST PERCENTAGE RECALCULATION OF FEDERAL 
              EMPLOYEES RETIREMENT SYSTEM.

    (a) In General.--Section 8423(a)(1) of title 5, United States Code, 
is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``subparagraph (B))'' and inserting 
                ``subparagraph (B) or (C))''; and
                    (B) by striking ``and'' at the end;
            (2) in subparagraph (B), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(C) the product of--
                            ``(i) the normal-cost percentage, as 
                        determined for employees of the United States 
                        Postal Service (and the Postal Regulatory 
                        Commission), multiplied by
                            ``(ii) the aggregate amount of basic pay 
                        payable by the United States Postal Service 
                        (and the Postal Regulatory Commission), for the 
                        period involved, to its employees.''.
    (b) Effective Date.--The amendments made by subsection (a) shall be 
carried out as soon as practicable, except that contributions shall be 
set in accordance with such amendments not later than the first 
applicable pay period beginning in the first fiscal year beginning at 
least 180 days after the date of the enactment of this Act.

SEC. 202. TREATMENT OF SURPLUS CONTRIBUTIONS TO FEDERAL EMPLOYEES 
              RETIREMENT SYSTEM.

    (a) In General.--Section 8423(b) of title 5, United States Code, is 
amended by adding at the end the following:
    ``(6)(A) If, for any fiscal year to which this paragraph applies, 
the amount determined under paragraph (1)(B) is less than zero 
(hereinafter in this paragraph referred to as `excess postal 
contributions to FERS'), such amount shall be treated in accordance 
with the following:
            ``(i) In the case of the first fiscal year to which this 
        paragraph applies and for which excess postal contributions to 
        FERS are determined, the amount of such excess contributions 
        shall be transferred by the Secretary of the Treasury to such 
        account as the Secretary considers appropriate so that such 
        amount shall be used for the payment of obligations issued by 
        the United States Postal Service under section 2005 of title 
        39.
            ``(ii) In the case of any subsequent fiscal year to which 
        this paragraph applies and for which excess postal 
        contributions to FERS are determined, the amount of such excess 
        contributions shall be transferred by the Secretary of the 
        Treasury to the account to which are credited any Government 
        contributions which are made by the United States Postal 
        Service under section 8334(a)(1)(B) (or which would be made, 
        but for clause (ii) thereof).
    ``(B) This paragraph applies to the fiscal year last ending before 
the date of the enactment of this paragraph and each fiscal year 
thereafter.
    ``(C) In the case of any transfer under subparagraph (A)(ii) for a 
fiscal year corresponding to a fiscal year for which a determination of 
Postal surplus or supplemental liability is scheduled to be made under 
section 8348(h), the transfer under subparagraph (A)(ii) shall be made 
before such determination under section 8348(h) is made.''.
    (b) Conforming Amendment.--Section 8348(h)(1)(B)(iii) of title 5, 
United States Code, is amended by striking ``principles.'' and 
inserting ``principles, including any amounts described in section 
8423(b)(6)(A)(ii).''.

SEC. 203. SENSE OF CONGRESS.

    It is the sense of Congress that the United States Postal Service 
should use its available authority as it deems necessary to provide 
early retirement or separation incentives to eligible Postal Service 
employees.

SEC. 204. CONTRIBUTIONS TO THRIFT SAVINGS FUND OF VOLUNTARY SEPARATION 
              INCENTIVE PAYMENTS.

    (a) Section 8351(b)(2) of title 5, United States Code, is amended--
            (1) by striking the matter before subparagraph (C) and 
        inserting the following:
    ``(2)(A) An employee or Member may contribute to the Thrift Savings 
Fund in any pay period any amount of such employee's or Member's basic 
pay for such pay period.
    ``(B) An employee may contribute (by direct transfer to the Fund) 
any part of any voluntary separation incentive payment that the 
employee receives under section 3523.''; and
            (2) by adding at the end the following:
    ``(D) Notwithstanding section 2105(e), in this paragraph, the term 
`employee' includes an employee of the United States Postal Service or 
the Postal Regulatory Commission.''.
    (b) Section 8432(a) of title 5, United States Code, is amended--
            (1) by redesignating paragraph (3) as (4);
            (2) by striking the matter before paragraph (4) (as so 
        redesignated by paragraph (1)) and inserting the following:
    ``(a)(1) An employee or Member may contribute to the Thrift Savings 
Fund in any pay period, pursuant to an election under subsection (b), 
any amount of such employee's or Member's basic pay for such pay 
period.
    ``(2) An employee may contribute (by direct transfer to the Fund) 
any part of any voluntary separation incentive payment that the 
employee receives under section 3523.
    ``(3) Contributions made under paragraph (1) pursuant to an 
election under subsection (b) shall, with respect to each pay period 
for which such election remains in effect, be made in accordance with a 
program of regular contributions provided in regulations prescribed by 
the Executive Director.''; and
            (3) by adding at the end the following:
    ``(5) Notwithstanding section 2105(e), in this subsection the term 
`employee' includes an employee of the United States Postal Service or 
of the Postal Regulatory Commission.''.
    (c) Regulations.--The Executive Director of the Federal Retirement 
Thrift Investment Board shall promulgate regulations to carry out the 
amendments made by this section.

SEC. 205. SERVICE CREDIT CONTRIBUTIONS OF VOLUNTARY SEPARATION 
              INCENTIVE PAYMENTS.

    (a) Voluntary Separation Incentive Payments.--The Postal Service 
may provide voluntary separation incentive payments to employees of the 
Postal Service who voluntarily separate from service before October 1, 
2016 (including payments to employees who retire under section 
8336(d)(2) or 8414(b)(1)(B) of title 5, United States Code, before 
October 1, 2016), which may not exceed the maximum amount provided 
under section 3523(b)(3)(B) of title 5, United States Code, for any 
employee.
    (b) Additional Service Credit.--
            (1) Civil service retirement system.--Section 8332 of title 
        5, United States Code, is amended by adding at the end the 
        following:
    ``(p)(1)(A) For an employee of the United States Postal Service who 
is covered under this subchapter and voluntarily separates from service 
before October 1, 2016, the Office, if so directed by the United States 
Postal Service, shall add not more than 1 year to the total creditable 
service of the employee for purposes of determining entitlement to and 
computing the amount of an annuity under this subchapter (except for a 
disability annuity under section 8337).
    ``(B) An employee who receives additional creditable service under 
this paragraph may not receive a voluntary separation incentive payment 
from the United States Postal Service.
    ``(2) The United States Postal Service shall ensure that the 
average actuarial present value of the additional liability of the 
United States Postal Service to the Fund resulting from additional 
creditable service provided under paragraph (1) or section 8411(m)(1) 
is not more than $25,000 per employee provided additional creditable 
service under paragraph (1) or section 8411(m)(1).
    ``(3)(A) Subject to subparagraph (B), and notwithstanding any other 
provision of law, no deduction, deposit, or contribution shall be 
required for service credited under this subsection.
    ``(B) The actuarial present value of the additional liability of 
the United States Postal Service to the Fund resulting from this 
subsection shall be included in the amount calculated under section 
8348(h)(1)(A).''.
            (2) Federal employees retirement system.--Section 8411 of 
        title 5, United States Code, is amended by adding at the end 
        the following:
    ``(m)(1)(A) For an employee of the United States Postal Service who 
is covered under this chapter and voluntarily separates from service 
before October 1, 2016, the Office, if so directed by the United States 
Postal Service, shall add not more than 2 years to the total creditable 
service of the employee for purposes of determining entitlement to and 
computing the amount of an annuity under this chapter (except for a 
disability annuity under subchapter V of that chapter).
    ``(B) An employee who receives additional creditable service under 
this paragraph may not receive a voluntary separation incentive payment 
from the United States Postal Service.
    ``(2) The United States Postal Service shall ensure that the 
average actuarial present value of the additional liability of the 
United States Postal Service to the Fund resulting from additional 
creditable service provided under paragraph (1) or section 8332(p)(1) 
is not more than $25,000 per employee provided additional creditable 
service under paragraph (1) or section 8332(p)(1).
    ``(3)(A) Subject to subparagraph (B), and notwithstanding any other 
provision of law, no deduction, deposit, or contribution shall be 
required for service credited under this subsection.
    ``(B) The actuarial present value of the additional liability of 
the United States Postal Service to the Fund resulting from this 
subsection shall be included in the amount calculated under section 
8423(b)(1)(B).''.
    (c) Goals.--
            (1) In general.--The Postal Service shall offer incentives 
        for voluntary separation under this section and the amendments 
        made by this section as a means of ensuring that the size and 
        cost of the workforce of the Postal Service is appropriate to 
        the work required of the Postal Service, including 
        consideration of--
                    (A) the closure and consolidation of postal 
                facilities;
                    (B) the ability to operate existing postal 
                facilities more efficiently, including by reducing the 
                size or scope of operations of postal facilities in 
                lieu of closing postal facilities; and
                    (C) the number of employees eligible, or projected 
                in the near-term to be eligible, for retirement, 
                including early retirement.
            (2) Definition.--In this subsection, the term ``career 
        employee of the Postal Service'' means an employee of the 
        Postal Service--
                    (A) whose appointment is not for a limited period; 
                and
                    (B) who is eligible for benefits, including 
                retirement coverage under chapter 83 or 84 of title 5, 
                United States Code.

SEC. 206. MODIFICATION OF PREPAYMENT SCHEDULE RELATING TO POSTAL 
              SERVICE RETIREE HEALTH BENEFITS FUND.

    (a) Contributions.--Section 8906(g)(2)(A) of title 5, United States 
Code, is amended by striking ``through September 30, 2016, be paid by 
the United States Postal Service, and thereafter shall'' and inserting 
``after the date of enactment of the Innovate to Deliver Act of 2013''.
    (b) Postal Service Retiree Health Benefits Fund.--Section 8909a(d) 
of title 5, United States Code, is amended--
            (1) by striking paragraph (2) and inserting the following:
    ``(2)(A) Not later than 180 days after the date of enactment of the 
Innovate to Deliver Act of 2013, the Office shall compute, and by June 
30 of each succeeding year, the Office shall recompute, a schedule 
including a series of annual installments which provide for the 
liquidation of the amount described under subparagraph (B) (regardless 
of whether the amount is a liability or surplus) by September 30, 2053, 
or within 15 years, whichever is later, including interest at the rate 
used in the computations under this subsection.
    ``(B) The amount described in this subparagraph is the amount, as 
of the date on which the applicable computation or recomputation under 
subparagraph (A) is made, that is equal to the difference between--
            ``(i) 80 percent of the Postal Service actuarial liability 
        as of September 30 of the most recently ended fiscal year; and
            ``(ii) the value of the assets of the Postal Retiree Health 
        Benefits Fund as of September 30 of the most recently ended 
        fiscal year.'';
            (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 ``2016'';
            (3) by striking paragraph (4) and inserting the following:
    ``(4) Computations under this subsection shall be based on--
            ``(A) economic and actuarial methods and assumptions 
        consistent with the methods and assumptions used in determining 
        the Postal surplus or supplemental liability under section 
        8348(h); and
            ``(B) any other methods and assumptions, including a health 
        care cost trend rate, that the Director of the Office 
        determines to be appropriate.''; and
            (4) by adding at the end the following:
    ``(7) In this subsection, the term `Postal Service actuarial 
liability' means the difference between--
            ``(A) the net present value of future payments required 
        under section 8906(g)(2)(A) for current and future United 
        States Postal Service annuitants; and
            ``(B) the net present value as computed under paragraph (1) 
        attributable to the future service of United States Postal 
        Service employees.''.
    (c) Unpaid Obligations of the Postal Service.--Any obligation of 
the Postal Service under section 8909a(d)(3)(A) of title 5, United 
States Code, as in effect on the day before the date of enactment of 
this Act, that remains unpaid as of such date of enactment shall be 
included in the recomputation requested in section 8909a(d)(2) of such 
title (as amended by subsection (b) of this section).
    (d) Technical and Conforming Amendments.--
            (1) Heading.--The heading of section 8909a of title 5, 
        United States Code, is amended by striking ``Benefit'' and 
        inserting ``Benefits''.
            (2) Table of sections.--The table of sections at the 
        beginning of chapter 89 of such title is amended by striking 
        the item relating to section 8909a and inserting the following:

``8909a. Postal Service Retiree Health Benefits Fund.''.

SEC. 207. STUDY ON USPS WORKFORCE REALIGNMENT AND RIGHT-SIZING OPTIONS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Comptroller General shall submit 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 a 
report on the workforce reduction or realignment methods used by the 
United States Postal Service to align its workforce with its needs.
    (b) Contents of the Report.--The report required under subsection 
(a) shall include the following:
            (1) The projected workforce needs of the Postal Service 
        over the next 5 fiscal years, given the current mail volumes 
        and the demand for Postal services.
            (2) Possible options for allowing Postal Service employees 
        who are eligible for voluntary early retirement to deposit 
        voluntary separation incentive payments to obtain service 
        credit or to otherwise allow such payments to be credited in 
        the computation of retirement annuity benefits.
            (3) The terms and conditions for the voluntary separation 
        incentive payments offered under section 205.
            (4) The number of employees in each job category and in 
        each postal service area to whom the Postal Service has offered 
        an incentive for voluntary separation, the number of offers of 
        incentives for voluntary separation that have been accepted, 
        the number of offers of incentives for voluntary separation 
        that remain pending, and the number of employees in each job 
        category and in each postal service area projected to separate 
        from service during each quarter through the end of the first 
        quarter of 2016.
            (5) The number of employees in each job category who are 
        covered under chapter 83 or 84 of title 5, United States Code, 
        and who have accepted offers of incentives for voluntary 
        separation, including the number of employees covered under 
        each chapter who voluntarily separated under subsection (a) of 
        section 205 or the authority under subsection (b) of section 
        205.
            (6) The total savings and work hour reductions by job 
        category and postal service area that have been realized by the 
        Postal Service as of the date of the report and that are 
        projected to be realized during each of the next 3 years as a 
        result of the offers of incentives for voluntary separation.
            (7) The total expenditures made by the Postal Service to 
        provide incentives for voluntary separation.
            (8) Any training, retraining, or hiring that may be 
        required by the authority the Postal Service is granted under 
        this Act to develop and offer for sale nonpostal products and 
        services.

SEC. 208. APPLICABILITY OF PROVISIONS RELATING TO REDUCTIONS IN FORCE.

    Section 1005 is amended by adding at the end the following:
    ``(g)(1) Except as otherwise provided by any collective bargaining 
agreement entered into under chapter 12, the provisions of subchapter I 
of chapter 35 of title 5 and the regulations implementing such 
subchapter, shall apply to employees of the Postal Service who hold 
positions that are within bargaining units under section 1202.
    ``(2) Before using the authority provided in paragraph (1), the 
Postal Service shall demonstrate to the Office of Personnel Management 
how it will comply with section 3502(a)(4) of title 5.''.

SEC. 209. ENHANCED REPORTING ON FACILITY NETWORK INITIATIVES.

    Section 404(d) is amended by adding at the end the following:
    ``(7)(A) 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 and the Postal Regulatory Commission a report that 
details plans to close or suspend a Postal Service retail or processing 
facility during the period to which such report pertains. The first 
such report shall be submitted not later than 120 days after the date 
of enactment of this paragraph. Reports shall be submitted semiannually 
thereafter.
    ``(B) Each report submitted by the Postal Service under 
subparagraph (A) shall address, at a minimum--
            ``(i) the specific retail and processing facilities the 
        Postal Service plans to suspend or close;
            ``(ii) the anticipated date of suspension or closure of 
        each such facility;
            ``(iii) the cost of continued operations at the facilities 
        for which closure is planned;
            ``(iv) the purpose of each such suspension or closure, as 
        determined by paragraph (2)(A);
            ``(v) plans for the establishment of alternative access 
        points for retail facilities listed in clause (i), including 
        the date on which each such alternative access point shall open 
        for business and the planned location of each such alternative 
        access point;
            ``(vi) how each facility closure conforms with previously 
        filed actions for suspension or closure;
            ``(vii) the timeline for closure or suspension activities 
        described in paragraphs (1) and (3), and all other formal 
        closure or suspension activities planned in connection with the 
        retail facility closure;
            ``(viii) how work performed at mail processing facilities 
        recommended for closure or consolidation will be transferred or 
        absorbed by other facilities within the network;
            ``(ix) cost savings expected or achieved from consolidation 
        of both retail and mail processing facilities;
            ``(x) the impact of each planned closure on postal 
        employees, including relocation or reassignment plans; and
            ``(xi) the status of ongoing suspensions or closures 
        identified in previous reports.''.

      TITLE III--POSTAL SERVICE IMPROVEMENTS AND REGULATORY RELIEF

SEC. 301. PERMIT APPEAL RIGHTS FOR CLOSING OF POSTAL STATIONS AND 
              BRANCHES.

    Section 404(d) is amended by adding after paragraph (7) (as added 
by section 208 of this Act) the following:
    ``(8) The provisions of paragraphs (1) through (6) shall apply to 
postal stations and branches in the same manner as the provisions apply 
to post offices.''.

SEC. 302. INTRA-AGENCY COOPERATIVE AGREEMENTS.

    (a) In General.--Section 411 is amended--
            (1) in the section heading, by inserting ``; authority for 
        intra-service agreement'' after ``agencies'';
            (2) by inserting ``(a)'' before ``Executive agencies 
        within''; and
            (3) by adding at the end the following:
    ``(b) The Office of the Inspector General of the United States 
Postal Service and other components of the Postal Service may enter 
into intra-service agreements to furnish to each other property, both 
real and personal, and personal and nonpersonal services. The 
furnishing of property and services under this section shall be under 
such terms and conditions, including reimbursability, as the head of 
the component concerned and the Inspector General shall deem 
necessary.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 4 is amended by striking the item relating to section 411 and 
inserting the following:

``411. Cooperation with other Government agencies; authority for intra-
                            service agreement.''.

SEC. 303. GROUPING OF NEGOTIATED SERVICE AGREEMENTS.

    Section 3622(d)(1) (as amended by section 107(b) of this Act) is 
further amended--
            (1) in subparagraph (E) (as so redesignated by section 
        107(b)), by striking ``and'' at the end;
            (2) in subparagraph (F) (as so redesignated by section 
        107(b)), by striking the period and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(G) treat similar or related agreements between 
                the Postal Service and postal users collectively as a 
                single product for purposes of this section to the 
                extent the Commission deems such treatment to be 
                consistent with policies of this title.''.

SEC. 304. SIMPLIFICATION OF PROCESS FOR CLASSIFICATION OF COMPETITIVE 
              PRODUCTS.

    Section 3642(b) is amended (in the matter before paragraph (1)) by 
striking ``in accordance with'' and inserting the following: ``as 
expeditiously as practicable. The Commission shall promptly admit a 
product into the competitive category if it meets''.

SEC. 305. DEVELOPMENT OF NEW MARKET-DOMINANT CLASSES OF MAIL.

    (a) Section 102 is amended--
            (1) in paragraph (9), by striking ``and'' at the end;
            (2) in paragraph (10), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(11) `class of mail' means a grouping of similar 
        products, subject to section 3622(d)(2)(A), as further defined 
        by the Postal Regulatory Commission.''.
    (b) Section 3622(d)(2)(A) is amended by inserting ``or under 
section 3643'' after ``Act''.
    (c)(1) Subchapter III of chapter 36 is amended by adding at the end 
the following:

``SEC. 3643. NEW CLASSES OF MAIL.

    ``(a) In General.--Upon request of the Postal Service or users of 
the mails, or upon its own initiative, the Postal Regulatory Commission 
may change the classes of mail to which the annual limitation under 
section 3622(d)(1) applies by adding new classes of mail. The Postal 
Regulatory Commission shall, within 18 months after the date of 
enactment of this section, promulgate (and may from time to time 
thereafter revise) regulations to carry out this section.
    ``(b) Criteria.--All determinations by the Postal Regulatory 
Commission under subsection (a) shall be made in accordance with the 
following criteria:
            ``(1) New market.--Dominant classes of mail shall consist 
        of products in the sale of which the Postal Service exercises 
        sufficient market power that it can effectively set the price 
        of such product substantially above costs, raise prices 
        significantly, decrease quality, or decrease output, without 
        risk of losing a significant level of business to other firms 
        offering similar products.
            ``(2) Products covered by postal monopoly.--Any new classes 
        of mail containing any products covered by the postal monopoly 
        shall be subject to the requirements of section 3622(d)(1). For 
        purposes of the preceding sentence, the term `product covered 
        by the postal monopoly' means any product the conveyance or 
        transmission of which is reserved to the United States under 
        section 1696 of title 18, subject to the same exception as set 
        forth in the last sentence of section 409(e)(1).
            ``(3) Additional considerations.--In making any decision 
        under this section, due regard shall be given to--
                    ``(A) the availability and nature of enterprises in 
                the private sector engaged in the delivery of the 
                product involved;
                    ``(B) the views of those who use the product 
                involved on the appropriateness of the proposed action; 
                and
                    ``(C) the likely impact of the proposed action on 
                small business concerns (within the meaning of section 
                3641(h)).
    ``(c) Notification and Publication Requirements.--
            ``(1) Notification requirement.--The Postal Service shall, 
        whenever it requests to add a new class of mail, file with the 
        Postal Regulatory Commission and publish in the Federal 
        Register a notice setting out the basis for its determination 
        that the product satisfies the criteria under subsection (b). 
        The provisions of section 504(g) shall be available with 
        respect to any information required to be filed.
            ``(2) Publication requirement.--The Postal Regulatory 
        Commission shall, whenever it changes the list of market-
        dominant classes of mail, prescribe new lists of classes of 
        mail. The revised lists shall indicate how and when any 
        previous lists are superseded, and shall be published in the 
        Federal Register.
    ``(d) Prohibition.--Except as provided in section 3641, a class of 
mail that involves the physical delivery of letters, printed matter, or 
packages may be offered by the Postal Service unless it has been 
assigned as a new class of mail--
            ``(1) under this subchapter; or
            ``(2) by or under any other provision of law.''.
    (2) The table of sections at the beginning of chapter 36 is amended 
by inserting after the item relating to section 3642 the following:

``3643. New classes of mail.''.

SEC. 306. EXPEDITED CONSIDERATION OF SERVICE CHANGES BY PRC.

    Section 3661 is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following:
    ``(c) If the Postal Service seeks expedited processing for time-
sensitive advisory opinions, it shall state such request in its 
proposal filed under subsection (b) and the Commission, to the extent 
practical and in accordance with subsection (d), shall comply with the 
request for expedited consideration.''.
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