I 

113TH CONGRESS 

1ST SESSION H. R. 630 

To recalculate and restore retirement annuity obligations of the United States 

Postal Service, eliminate the requirement that the United States Postal 

Service pre-fund the Postal Service Retiree Health Benefits Fund, place 

restrictions on the closure of postal facilities, create incentives for innovation for the United States Postal Service, to maintain levels of postal 

service, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 13, 2013 

Mr. DEFAZIO 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 recalculate and restore retirement annuity obligations of 

the United States Postal Service, eliminate the requirement that the United States Postal Service pre-fund 

the Postal Service Retiree Health Benefits Fund, place 

restrictions on the closure of postal facilities, create incentives for innovation for the United States Postal Service, to maintain levels of postal service, and for other 

purposes. 

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


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘Postal Service Protection Act of 2013’’. 

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

5 as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—RETIREMENT ANNUITY OBLIGATION RECALCULATION 

AND RESTORATION 

Sec. 101. Modified methodology. 

Sec. 102. Relating to a postal surplus. 

Sec. 103. Treatment of certain surplus retirement contributions. 

Sec. 104. Elimination of requirement to pre-fund the Postal Service Retiree 

Health Benefits Fund. 

Sec. 105. Effective date; rule of construction. 

TITLE II—RESTRICTIONS ON POSTAL FACILITY CLOSURES 

Sec. 201. Modified procedures. 

Sec. 202. Definitions. 

TITLE III—INCENTIVES FOR INNOVATION 

Sec. 301. Authority to offer nonpostal services and products. 

Sec. 302. Wine and beer shipping. 

Sec. 303. Innovation and accountability. 

TITLE IV—MAINTAINING LEVELS OF SERVICE 

Sec. 401. Six-day delivery. 

Sec. 402. Service standards for market-dominant products. 

TITLE V—ELIMINATION OF ANNUAL LIMITATION ON INCREASES 

IN RATES FOR MARKET-DOMINANT PRODUCTS 

Sec. 501. Elimination of annual limitation. 

6 TITLE I—RETIREMENT ANNUITY 

7 OBLIGATION RECALCULA8 TION AND RESTORATION 

9 SEC. 101. MODIFIED METHODOLOGY. 

10 (a) IN GENERAL.—Section 8348(h) of title 5, United 

11 States Code, is amended by adding at the end the fol12 lowing: 


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1 ‘‘(4)(A) To the extent that a determination under 

2 paragraph (1), relating to benefits attributable to civilian 

3 employment with the United States Postal Service, is 

4 based on a provision of law described in subparagraph (C), 

5 the determination shall be made in accordance with that 

6 provision and any otherwise applicable provisions of law, 

7 subject to the following: 

8 ‘‘(i) The ‘average pay’ used in the case of any 

9 individual shall be a single amount, determined in 

10 accordance with section 8331(4), taking into account 

11 the rates of basic pay in effect for the individual 

12 during the periods of creditable service performed by 

13 the individual. Nothing in this subsection shall be 

14 considered to permit or require— 

15 ‘‘(I) 1 determination of average pay with 

16 respect to service performed with the United 

17 States Postal Service; and 

18 ‘‘(II) a separate determination of average 

19 pay with respect to service performed with its 

20 predecessor entity in function. 

21 ‘‘(ii) In determining the portion of an annuity 

22 attributable to civilian employment with the United 

23 States Postal Service, with respect to any period of 

24 employment with the United States Postal Service 

25 that follows any other period of employment credVerDate Mar 15 2010 04:40 Feb 20, 2013 Jkt 029200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H630.IH H630

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1 itable under section 8332 (without regard to whether 

2 the employment was with an entity referred to in 

3 clause (i)(II)), the total service of an employee for 

4 purposes of any provision of law described in sub5 paragraph (C) shall be the sum of— 

6 ‘‘(I) any period of employment with the 

7 United States Postal Service; and 

8 ‘‘(II) any period of employment creditable 

9 under section 8332 that precedes the period de10 scribed in subclause (I). 

11 ‘‘(B)(i) Not later than 6 months after the date of en12 actment of this paragraph, the Office shall determine (or, 

13 if applicable, redetermine) the amount of the Postal sur14 plus or supplemental liability as of the close of the fiscal 

15 year most recently ending before that date of enactment, 

16 in conformance with the methodology required under sub17 paragraph (A). 

18 ‘‘(ii)(I) If the result of the determination or redeter19 mination under clause (i) is a surplus, the Office may 

20 transfer the amount of the surplus, or any portion of the 

21 amount of the surplus, at the request of the United States 

22 Postal Service, to— 

23 ‘‘(aa) the Postal Service Retiree Health Bene24 fits Fund established under section 8909a; and 


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1 ‘‘(bb) the Postal Service Fund established 

2 under section 2003 of title 39. 

3 ‘‘(II) If a determination or redetermination under 

4 clause (i) for a fiscal year is made before a determination 

5 under paragraph (2)(B) is made with respect to the fiscal 

6 year, the Office may not make a determination under 

7 paragraph (2)(B) with respect to the fiscal year. 

8 ‘‘(C) The provisions of law described in this subpara9 graph are— 

10 ‘‘(i) the first sentence of section 8339(a); and 

11 ‘‘(ii) section 8339(d)(1).’’. 

12 (b) COORDINATION PROVISIONS.— 

13 (1) DETERMINATION OF AMOUNT PAYABLE.— 

14 Section 8909a of title 5, United States Code, is 

15 amended by adding at the end the following: 

16 ‘‘(e) Notwithstanding any other provision of law, the 

17 Office shall determine the amount payable by the Postal 

18 Service under subsection (d) in any fiscal year ending on 

19 or before September 30, 2013, without regard to the re20 quirements under section 8348(h)(4).’’. 

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

22 Act shall affect the amount of any benefits otherwise 

23 payable from the Civil Service Retirement and Dis24 ability Fund to any individual. 


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1 (c) TECHNICAL AND CONFORMING AMENDMENT.— 

2 The heading for section 8909a of title 5, United States 

3 Code, is amended by striking ‘‘Benefit’’ and inserting 

4 ‘‘Benefits’’. 

5 SEC. 102. RELATING TO A POSTAL SURPLUS. 

6 Section 8348(h)(2)(C) of title 5, United States Code, 

7 is amended— 

8 (1) by inserting ‘‘2021,’’ after ‘‘2015,’’; and 

9 (2) by striking ‘‘if the result is’’ and all that 

10 follows through ‘‘terminated.’’ and inserting the fol11 lowing: ‘‘if the result is a surplus— 

12 ‘‘(i) that amount, or any portion of that 

13 amount, may be transferred at the request of the 

14 United States Postal Service to— 

15 ‘‘(I) the Postal Service Retiree Health 

16 Benefits Fund; and 

17 ‘‘(II) the Postal Service Fund established 

18 under section 2003 of title 39; and 

19 ‘‘(ii) any prior amortization schedule for pay20 ments shall be terminated.’’. 

21 SEC. 103. TREATMENT OF CERTAIN SURPLUS RETIREMENT 

22 CONTRIBUTIONS. 

23 Section 8423(b) of title 5, United States Code, is 

24 amended— 


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1 (1) by redesignating paragraph (5) as para2 graph (6); and 

3 (2) by inserting after paragraph (4) the fol4 lowing: 

5 ‘‘(5) If, for fiscal year 2010, the amount computed 

6 under paragraph (1)(B) is less than zero (in this section 

7 referred to as ‘surplus postal contributions’), the amount 

8 of the surplus postal contributions, or any portion of the 

9 amount, may be transferred at the request of the United 

10 States Postal Service to— 

11 ‘‘(A) the Postal Service Retiree Health Benefits 

12 Fund established under section 8909a; 

13 ‘‘(B) the Postal Service Fund established under 

14 section 2003 of title 39; 

15 ‘‘(C) the Employees’ Compensation Fund estab16 lished under section 8147; and 

17 ‘‘(D) the United States Postal Service for the 

18 repayment of any obligation issued under section 

19 2005 of title 39.’’. 

20 SEC. 104. ELIMINATION OF REQUIREMENT TO PRE-FUND 

21 THE POSTAL SERVICE RETIREE HEALTH BEN22 EFITS FUND. 

23 (a) IN GENERAL.—Section 8909a of title 5, United 

24 States Code, is amended— 

25 (1) in subsection (d)— 


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1 (A) by striking paragraph (3); and 

2 (B) by redesignating paragraphs (4) 

3 through (6) as paragraphs (3) through (5), re4 spectively; and 

5 (2) by adding at after subsection (e) (as added 

6 by section 101(b)(1)) the following: 

7 ‘‘(f) Nothing in this section shall be construed to re8 quire the Postal Service to pay any amount into the Postal 

9 Service Retiree Health Benefits Fund established under 

10 section 8909a.’’. 

11 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

12 Section 803(b)(1)(A) of the Postal Accountability and En13 hancement Act (5 U.S.C. 8909a note) is amended by 

14 striking ‘‘8909a(d)(5)’’ and inserting ‘‘8909a(d)(4)’’. 

15 SEC. 105. EFFECTIVE DATE; RULE OF CONSTRUCTION. 

16 (a) IN GENERAL.—This title and the amendments 

17 made by this title shall take effect on the date of enact18 ment of this Act. 

19 (b) INTENT OF CONGRESS.—It is the intent of Con20 gress that this title apply with respect to the allocation 

21 of past, present, and future benefit liabilities between the 

22 United States Postal Service and the Treasury of the 

23 United States. 

24 (c) RULE OF CONSTRUCTION.—Nothing in this Act 

25 or the amendments made by this Act shall be construed 


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1 to prohibit the Postal Service from paying any amount of 

2 surplus contributions to the Civil Service Retirement and 

3 Disability Fund and the Federal Employees’ Retirement 

4 System into— 

5 (1) the Postal Service Retiree Health Benefits 

6 Fund established under section 8909a of title 5, 

7 United States Code; and 

8 (2) the Postal Service Fund established under 

9 section 2003 of title 39, United States Code. 

10 TITLE II—RESTRICTIONS ON 

11 POSTAL FACILITY CLOSURES 

12 SEC. 201. MODIFIED PROCEDURES. 

13 (a) IN GENERAL.—Section 404(d) of title 39, United 

14 States Code, is amended by striking ‘‘(d)(1)’’ and all that 

15 follows through paragraph (4) and inserting the following: 

16 ‘‘(d)(1) Before making a determination under sub17 section (a)(3) to close or consolidate a postal facility, the 

18 Postal Service shall— 

19 ‘‘(A) conduct an investigation to assess the 

20 need for the proposed closure or consolidation; and 

21 ‘‘(B) ensure that each person served by the 

22 postal facility has an opportunity to present views by 

23 providing appropriate notice— 

24 ‘‘(i) to each person by mail; and 


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1 ‘‘(ii) by publication in a newspaper of gen2 eral circulation in the area in which each person 

3 resides. 

4 ‘‘(2) In conducting an investigation under paragraph 

5 (1)(A) and determining whether to close or consolidate a 

6 postal facility under subsection (a)(3), the Postal Serv7 ice— 

8 ‘‘(A) shall consider— 

9 ‘‘(i) the effect the closing or consolidation 

10 would have on the community served by the 

11 postal facility; 

12 ‘‘(ii) the effect the closing or consolidation 

13 would have on employees of the Postal Service 

14 employed at the postal facility; and 

15 ‘‘(iii) whether the closing or consolidation 

16 would be consistent with the policy of the Gov17 ernment under section 101(b), that the Postal 

18 Service shall provide a maximum degree of ef19 fective and regular postal services to rural 

20 areas, communities, and small towns where 

21 postal facilities are not self-sustaining; and 

22 ‘‘(B) may not consider compliance with any 

23 provision of the Occupational Safety and Health Act 

24 of 1970 (29 U.S.C. 651 et seq.). 


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1 ‘‘(3)(A) Upon completion of an investigation under 

2 paragraph (1), the Postal Service shall make a decision, 

3 in writing, whether to proceed with the proposal to close 

4 or consolidate a postal facility, which shall include the 

5 findings of the Postal Service with respect to each factor 

6 specified in paragraph (2)(A). 

7 ‘‘(B) Not later than 90 days before the Postal Service 

8 makes a final determination under this subsection, the 

9 Postal Service shall— 

10 ‘‘(i) post notice of the decision and findings 

11 under subparagraph (A) in a prominent place in 

12 each postal facility that would be affected by the 

13 closing or consolidation; and 

14 ‘‘(ii) send notice of each posting under clause 

15 (i) by mail to each person served by the postal facil16 ity in which the notice is posted. 

17 ‘‘(C) Notice under subparagraph (B) shall include— 

18 ‘‘(i) a statement as follows: ‘This is notice of a 

19 proposal to lllll this postal facility. A final 

20 determination will not be made before the end of the 

21 90-day period beginning on the date on which this 

22 notice is first posted.’, with the blank space being 

23 filled in with ‘close’ or ‘consolidate’ (whichever is ap24 propriate), and with instructions for how any inter25 ested person may submit comments; 


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1 ‘‘(ii) a brief summary of the findings of the 

2 Postal Service with respect to the factors specified in 

3 paragraph (2)(A); and 

4 ‘‘(iii) the amount of cost savings the Postal 

5 Service estimates the Postal Service will realize from 

6 the closing or consolidation, in the first year fol7 lowing the date of the closing or consolidation, to8 gether with an explanation of the assumptions and 

9 methodologies used in making the estimate. 

10 ‘‘(4) The Postal Service shall make a final determina11 tion to close or consolidate a postal facility in writing after 

12 taking into consideration any comments received during 

13 the 90-day period described under paragraph (3). The 

14 Postal Service shall take no action to close or consolidate 

15 a postal facility before the date that is 60 days after the 

16 date on which the Postal Service— 

17 ‘‘(A) posts a copy of the final determination in 

18 a prominent location in each affected postal facility; 

19 and 

20 ‘‘(B) sends to each person served by the postal 

21 facility— 

22 ‘‘(i) a notice of the determination; and 

23 ‘‘(ii) notice of any appeal rights available 

24 with respect to the determination.’’. 


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1 (b) DE NOVO REVIEW.—Section 404(d)(5) of title 

2 39, United States Code, is amended— 

3 (1) by striking ‘‘post office’’ and inserting 

4 ‘‘postal facility’’; and 

5 (2) by striking ‘‘The Commission shall set 

6 aside’’ and all that follows through ‘‘final disposition 

7 of the appeal.’’ and inserting the following: ‘‘The 

8 Commission shall review de novo the determination 

9 of the Postal Service. In conducting a review de 

10 novo, the Commission shall consider the factors de11 scribed in paragraph (2)(A). If the Commission 

12 finds fault with a determination of the Postal Serv13 ice, the Commission shall suspend the effectiveness 

14 of the determination of the Postal Service.’’. 

15 (c) EXCEPTION; CALCULATION OF ACTUAL COST

16 SAVINGS.—Section 404(d) of title 39, United States Code, 

17 is amended by adding at the end the following: 

18 ‘‘(7)(A) Paragraphs (1) through (6) shall not apply 

19 in the case of a closing or consolidation which occurs by 

20 reason of an emergency suspension, as described in section 

21 241.3 of title 39, Code of Federal Regulations, or any suc22 cessor thereto. 

23 ‘‘(B) For purposes of this paragraph, the term ‘emer24 gency suspension’ does not, in the case of a leased facility, 


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1 include the termination or cancellation of the lease by a 

2 party other than the Postal Service. 

3 ‘‘(8)(A) Not later than 2 years after the date of the 

4 closing or consolidation of any postal facility occurring 

5 after the date of enactment of this paragraph, the Inspec6 tor General shall determine the amount of the cost savings 

7 realized by the Postal Service from the closing or consoli8 dation for the first year following the closing or consolida9 tion. 

10 ‘‘(B) The Inspector General shall submit to the Post11 master General and to Congress— 

12 ‘‘(i) a report for each postal facility for which 

13 the Inspector made a determination of cost savings 

14 under subparagraph (A) during the preceding year 

15 that includes— 

16 ‘‘(I) the amount of the cost savings deter17 mined to be realized with respect to each clos18 ing or consolidation of a postal facility, together 

19 with an explanation of the assumptions and 

20 methodologies used in making the determina21 tion; 

22 ‘‘(II) a comparison of— 

23 ‘‘(aa) the cost savings determined by 

24 the Inspector General; and 


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1 ‘‘(bb) the estimates provided by the 

2 Postal Service under paragraph (3)(C)(iii); 

3 and 

4 ‘‘(III) an explanation of the reasons for 

5 any differences between the determination of 

6 the Inspector General and the estimates of the 

7 Postal Service, together with recommendations 

8 for any legislation or administrative action that 

9 the Inspector General considers appropriate to 

10 provide for more accurate estimates; and 

11 ‘‘(ii) an annual report with respect to all the 

12 postal facilities for which the Inspector made a de13 termination of cost savings under subparagraph (A) 

14 that includes the information required under clause 

15 (i).’’. 

16 SEC. 202. DEFINITIONS. 

17 Section 404(d) of title 39, United States Code, as 

18 amended by section 201(c), is further amended by adding 

19 at the end the following: 

20 ‘‘(9) In this subsection— 

21 ‘‘(A) the term ‘postal facility’ includes an office, 

22 branch, station, or other facility which— 

23 ‘‘(i) is operated by the Postal Service; and 

24 ‘‘(ii) provides services to persons described 

25 in subparagraph (B); and 


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1 ‘‘(B) any reference to the persons served by a 

2 postal facility shall include a postal customer receiv3 ing mail delivery service from the postal facility, a 

4 resident of a ZIP code served by the postal facility, 

5 a postal customer having a post office box at the 

6 postal facility, and any relevant local government of7 ficial as defined by the Postal Service by rule.’’. 

8 TITLE III—INCENTIVES FOR 

9 INNOVATION 

10 SEC. 301. AUTHORITY TO OFFER NONPOSTAL SERVICES 

11 AND PRODUCTS. 

12 (a) SPECIFIC POWER.—Section 404(a) of title 39, 

13 United States Code, is amended— 

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

15 end; 

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

17 inserting ‘‘; and’’; and 

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

19 ‘‘(9) to provide nonpostal services and products 

20 in accordance with subsection (e).’’. 

21 (b) NONPOSTAL SERVICES AND PRODUCTS.—Section 

22 404(e) is amended to read as follows: 

23 ‘‘(e)(1) The Postal Service may provide any nonpostal 

24 service or product in a manner consistent with the public 

25 interest. 


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1 ‘‘(2) Not later than 90 days before providing a non2 postal service or product that the Postal Service did not 

3 provide before the date of enactment of this subsection, 

4 the Postal Service shall request an advisory opinion from 

5 the Postal Regulatory Commission that evaluates the ex6 tent to which the provision of that nonpostal service or 

7 product— 

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

9 delivery, retail network, technology, or other re10 sources of the Postal Service; and 

11 ‘‘(B) would be consistent with the public inter12 est. 

13 ‘‘(3) Not later than 45 days after the date on which 

14 the Postal Regulatory Commission receives a request 

15 under paragraph (2), the Postal Regulatory Commission 

16 shall— 

17 ‘‘(A) issue an advisory opinion to the Postal 

18 Service concerning the request; and 

19 ‘‘(B) transmit a copy of the advisory opinion, 

20 together with the original request, to— 

21 ‘‘(i) the Committee on Oversight and Gov22 ernment Reform of the House of Representa23 tives; and 

24 ‘‘(ii) the Committee on Homeland Security 

25 and Governmental Affairs of the Senate. 


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1 ‘‘(4) In this title, the term ‘nonpostal service or prod2 uct’ means any service or product other than a postal serv3 ice, including— 

4 ‘‘(A) check-cashing services; 

5 ‘‘(B) technology and media services; 

6 ‘‘(C) warehousing and logistics; 

7 ‘‘(D) facility leasing; 

8 ‘‘(E) public Internet access services; 

9 ‘‘(F) driver licensing; 

10 ‘‘(G) vehicle registration; 

11 ‘‘(H) hunting and fishing licensing; 

12 ‘‘(I) notary services; and 

13 ‘‘(J) voter registration. 

14 ‘‘(5) The Postal Service may enter into a contract 

15 with a State or local agency to provide a nonpostal service 

16 or product authorized under this subsection.’’. 

17 SEC. 302. WINE AND BEER SHIPPING. 

18 (a) MAILABILITY.— 

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

20 of title 18, United States Code, is amended by strik21 ing ‘‘mails’’ and inserting ‘‘mails, except to the ex22 tent that the mailing is allowable under section 

23 3001(p) of title 39’’. 

24 (2) INTOXICANTS.—Section 1154(a) of title 18, 

25 United States Code, is amended, by inserting ‘‘or, 


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1 with respect to the mailing of wine or malt bev2 erages, to the extent allowed under section 3001(p) 

3 of title 39’’ after ‘‘mechanical purposes’’. 

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

5 States Code, is amended by adding at the end the fol6 lowing: 

7 ‘‘(p)(1) Wine or malt beverages shall be considered 

8 mailable if mailed— 

9 ‘‘(A) by a licensed winery or brewery, in accord10 ance with applicable regulations under paragraph 

11 (2); and 

12 ‘‘(B) in accordance with the law of the State, 

13 territory, or district of the United States where the 

14 addressee or duly authorized agent takes delivery. 

15 ‘‘(2) The Postal Service shall prescribe such regula16 tions as may be necessary to carry out this subsection, 

17 including regulations providing that— 

18 ‘‘(A) the mailing shall be by a means estab19 lished by the Postal Service to ensure direct delivery 

20 to the addressee or a duly authorized agent at a 

21 postal facility; 

22 ‘‘(B) the addressee (and any duly authorized 

23 agent) shall be an individual at least 21 years of 

24 age, and shall present a valid, government-issued 

25 photo identification at the time of delivery; 


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1 ‘‘(C) the wine or malt beverages may not be for 

2 resale or other commercial purpose; and 

3 ‘‘(D) the winery or brewery involved shall— 

4 ‘‘(i) certify in writing to the satisfaction of 

5 the Postal Service, through a registration proc6 ess administered by the Postal Service, that the 

7 mailing is not in violation of any provision of 

8 this subsection or regulation prescribed under 

9 this subsection; and 

10 ‘‘(ii) provide any other information or af11 firmation that the Postal Service may require, 

12 including with respect to the prepayment of 

13 State alcohol beverage taxes. 

14 ‘‘(3) For purposes of this subsection— 

15 ‘‘(A) a winery shall be considered to be licensed 

16 if that winery holds an appropriate basic permit 

17 issued— 

18 ‘‘(i) under the Federal Alcohol Administra19 tion Act (27 U.S.C. 201 et seq.); and 

20 ‘‘(ii) under the law of the State in which 

21 the winery is located; and 

22 ‘‘(B) a brewery shall be considered to be li23 censed if that brewery— 

24 ‘‘(i) possesses a notice of registration and 

25 bond approved by the Alcohol and Tobacco Tax 


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1 and Trade Bureau of the Department of the 

2 Treasury; and 

3 ‘‘(ii) is licensed to manufacture and sell 

4 beer in the State in which the brewery is lo5 cated.’’. 

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

7 this section shall take effect on the earlier of— 

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

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

10 States Code, as amended by this section; or 

11 (2) 120 days after the date of enactment of this 

12 Act. 

13 SEC. 303. INNOVATION AND ACCOUNTABILITY. 

14 (a) IN GENERAL.—Chapter 2 of title 39, United 

15 States Code, is amended by adding at the end the fol16 lowing: 

17 ‘‘§ 209. Innovation and accountability 

18 ‘‘(a) CHIEF INNOVATION OFFICER.—There shall be 

19 in the Postal Service a Chief Innovation Officer appointed 

20 by the Postmaster General who shall have proven expertise 

21 and a record of success in— 

22 ‘‘(1) the postal and shipping industry; 

23 ‘‘(2) innovative product research and develop24 ment; 

25 ‘‘(3) marketing brand strategy; 


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1 ‘‘(4) emerging communications technology; or 

2 ‘‘(5) business process management. 

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

4 ‘‘(1) lead the development of innovative non5 postal products and services that maximize the rev6 enue of the Postal Service; 

7 ‘‘(2) develop innovative postal products and 

8 services, particularly products and services that use 

9 emerging information technologies, to maximize the 

10 revenue of the Postal Service; 

11 ‘‘(3) supervise the implementation of products 

12 and services described in paragraphs (1) and (2); 

13 and 

14 ‘‘(4) monitor the performance of products and 

15 services described in paragraphs (1) and (2) and 

16 modify the products and services as needed to ad17 dress changing market trends. 

18 ‘‘(c) CONSIDERATIONS.—The Chief Innovation Office 

19 shall take into consideration comments or advisory opin20 ions, if applicable, issued by the Postal Regulatory Com21 mittee before the initial sale of innovative postal or non22 postal products and services. 

23 ‘‘(d) DESIGNATION.— 

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

25 the date of enactment of this section, and not later 


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1 than 90 days after the date of enactment of this sec2 tion, the Postmaster General shall appoint a Chief 

3 Innovation Officer. 

4 ‘‘(2) CONDITION.—The Chief Innovation Offi5 cer may not, while serving as Chief Innovation Offi6 cer, hold any other office or position in the Postal 

7 Service. 

8 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

9 this section shall be construed to prohibit an indi10 vidual who holds another office or position in the 

11 Postal Service at the time the individual is appointed 

12 Chief Innovation Officer from serving as the Chief 

13 Innovation Officer under this section. 

14 ‘‘(e) ADVISORY COMMISSION.— 

15 ‘‘(1) ESTABLISHMENT.—There is established 

16 the Postal Innovation Advisory Commission (herein17 after the ‘Commission’). 

18 ‘‘(2) MEMBERSHIP.— 

19 ‘‘(A) IN GENERAL.—The Commission shall 

20 be composed of— 

21 ‘‘(i) the Chief Innovation Officer es22 tablished under subsection (a), who shall 

23 serve as Chairperson of the Commission; 

24 and 


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1 ‘‘(ii) 5 other members as the Postal 

2 Regulatory Commission shall appoint, of 

3 whom— 

4 ‘‘(I) 1 member shall have exper5 tise in labor; 

6 ‘‘(II) 1 member shall have exper7 tise in small business issues; 

8 ‘‘(III) 1 member shall have ex9 pertise in consumer protection; 

10 ‘‘(IV) 1 member shall have exper11 tise in small periodicals and news12 papers; and 

13 ‘‘(V) 1 member shall have exper14 tise in the postal industry. 

15 ‘‘(B) PERIOD OF APPOINTMENT.—Mem16 bers shall be appointed for 5-year terms. 

17 ‘‘(C) VACANCIES.—Any vacancy in the 

18 Commission shall not affect the powers of the 

19 Commission, but shall be filled in the same 

20 manner as the original appointment. 

21 ‘‘(D) MEETINGS.—The Commission shall 

22 meet at the call of the Chairperson. 

23 ‘‘(E) QUORUM.—A majority of the mem24 bers of the Commission shall constitute a 


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1 quorum, but a lesser number of members may 

2 hold hearings. 

3 ‘‘(3) DUTIES OF THE COMMISSION.— 

4 ‘‘(A) STUDY.—The Commission shall 

5 study— 

6 ‘‘(i) additional postal and nonpostal 

7 services that the Postal Service may offer 

8 to raise revenue; and 

9 ‘‘(ii) services that postal services in 

10 foreign countries have offered to respond 

11 to the increasing demand for high-tech 

12 services, including— 

13 ‘‘(I) banking and insurance serv14 ices; 

15 ‘‘(II) communication services; 

16 ‘‘(III) physical delivery of e-mail 

17 correspondence to individuals who do 

18 not have Internet access; 

19 ‘‘(IV) scanning physical mail and 

20 delivering that mail through e-mail; 

21 and 

22 ‘‘(V) communication through se23 cure servers. 

24 ‘‘(B) RECOMMENDATIONS.—The Commis25 sion shall generate recommendations for addiVerDate Mar 15 2010 04:40 Feb 20, 2013 Jkt 029200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H630.IH H630

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1 tional services that the Postal Service should 

2 provide based on the study conducted under 

3 subparagraph (A). 

4 ‘‘(C) REPORT.—Not later than 1 year 

5 after the date of enactment of this section, and 

6 each year thereafter, the Commission shall sub7 mit to the Postmaster General a report that 

8 contains each recommendation described under 

9 subparagraph (B) that the Commission ap10 proves by a majority vote. 

11 ‘‘(4) POWERS OF THE COMMISSION.— 

12 ‘‘(A) HEARINGS.—The Commission may 

13 hold such hearings, take such testimony, and 

14 receive such evidence as is necessary to carry 

15 out this subsection. 

16 ‘‘(B) INFORMATION FROM FEDERAL AGEN17 CIES.—The Commission may secure directly 

18 from any Federal department or agency such 

19 information as the Commission considers nec20 essary to carry out this subsection. Upon re21 quest of the Chairperson of the Commission, 

22 the head of such department or agency shall 

23 furnish such information to the Commission. 

24 ‘‘(C) POSTAL SERVICES.—The Commission 

25 may use the United States mails in the same 


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1 manner and under the same conditions as other 

2 departments and agencies of the Federal Gov3 ernment. 

4 ‘‘(D) GIFTS.—The Commission may ac5 cept, use, and dispose of gifts or donations of 

6 services or property. 

7 ‘‘(5) COMMISSION PERSONNEL MATTERS.— 

8 ‘‘(A) COMPENSATION OF MEMBERS.—Each 

9 member of the Commission who is not an offi10 cer or employee of the Federal Government (in11 cluding the Postal Service) shall be com12 pensated at a rate equal to the daily equivalent 

13 of the annual rate of basic pay prescribed for 

14 level IV of the Executive Schedule under section 

15 5315 of title 5 for each day (including travel 

16 time) during which such member is engaged in 

17 the performance of the duties of the Commis18 sion. All members of the Commission who are 

19 officers or employees of the United States, in20 cluding the Postal Service, shall serve without 

21 compensation in addition to that received for 

22 their services as officers or employees of the 

23 United States. 

24 ‘‘(B) TRAVEL EXPENSES.—The members 

25 of the Commission shall be allowed travel exVerDate Mar 15 2010 04:40 Feb 20, 2013 Jkt 029200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H630.IH H630

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1 penses, including per diem in lieu of subsist2 ence, at rates authorized for employees of agen3 cies under subchapter I of chapter 57 of title 5 

4 while away from their homes or regular places 

5 of business in the performance of services for 

6 the Commission. 

7 ‘‘(C) STAFF.— 

8 ‘‘(i) IN GENERAL.—The Chairperson 

9 of the Commission may, without regard to 

10 the civil service laws and regulations, ap11 point and terminate an executive director 

12 and such other additional personnel as 

13 may be necessary to enable the Commis14 sion to perform its duties. The employment 

15 of an executive director shall be subject to 

16 confirmation by the Commission. 

17 ‘‘(ii) COMPENSATION.—The Chair18 person of the Commission may fix the com19 pensation of the executive director and 

20 other personnel without regard to chapter 

21 51 and subchapter III of chapter 53 of 

22 title 5 relating to classification of positions 

23 and General Schedule pay rates, except 

24 that the rate of pay for the executive direc25 tor and other personnel may not exceed the 


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1 rate payable for level V of the Executive 

2 Schedule under section 5316 of title 5. 

3 ‘‘(D) DETAIL OF GOVERNMENT EMPLOY4 EES.—Any Federal Government employee, in5 cluding an employee of the Postal Service, may 

6 be detailed to the Commission without reim7 bursement, and such detail shall be without 

8 interruption or loss of civil service status or 

9 privilege. 

10 ‘‘(E) PROCUREMENT OF TEMPORARY AND

11 INTERMITTENT SERVICES.—The Chairperson of 

12 the Commission may procure temporary and 

13 intermittent services under section 3109(b) of 

14 title 5 at rates for individuals that do not ex15 ceed the daily equivalent of the annual rate of 

16 basic pay prescribed for level V of the Executive 

17 Schedule under section 5316 of title 5. 

18 ‘‘(6) PERMANENT ADVISORY COMMISSION.— 

19 Section 14 of the Federal Advisory Committee Act 

20 (5 U.S.C. App.) shall not apply to the Commission. 

21 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.— 

22 ‘‘(A) IN GENERAL.—There are authorized 

23 to be appropriated such sums as may be nec24 essary to the Commission to carry out this Act. 


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1 ‘‘(B) AVAILABILITY.—Any sums appro2 priated under the authorization contained in 

3 this section shall remain available, without fis4 cal year limitation, until expended. 

5 ‘‘(f) INNOVATION STRATEGY.— 

6 ‘‘(1) IN GENERAL.—Not later than 1 year after 

7 the date of enactment of this section, the Postmaster 

8 General shall submit, at the same time the President 

9 submits the annual budget request under section 

10 1105 of title 31 for that year, and together with the 

11 report on performance under subsection (g), a com12 prehensive strategy for maximizing the revenue of 

13 the Postal Service through innovative postal and 

14 nonpostal products and services to— 

15 ‘‘(A) the Committee on Homeland Security 

16 and Governmental Affairs of the Senate; 

17 ‘‘(B) the Committee on Oversight and Gov18 ernment Reform of the House of Representa19 tives; and 

20 ‘‘(C) the Postal Regulatory Commission. 

21 ‘‘(2) MATTERS TO BE ADDRESSED.—At a min22 imum, the strategy required by this subsection shall 

23 address— 

24 ‘‘(A) the specific innovative postal and 

25 nonpostal products and services to be developed 


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1 and offered by the Postal Service, including the 

2 nature of the market demand to be satisfied by 

3 each product and service and the estimated 

4 date by which each product and service will be 

5 introduced; 

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

7 each product or service; 

8 ‘‘(C) the anticipated sales volume for each 

9 product and service; 

10 ‘‘(D) the anticipated revenues and profits 

11 expected to be generated by each product and 

12 service; 

13 ‘‘(E) the likelihood of success of each prod14 uct and service and the risks associated with 

15 the development and sale of each product and 

16 service; 

17 ‘‘(F) the trends anticipated in market con18 ditions that may affect the success of each 

19 product and service during the 5-year period 

20 following the submission of the report; and 

21 ‘‘(G) the metrics that will be used to assess 

22 the effectiveness of the innovation strategy. 

23 ‘‘(3) STRATEGY UPDATES.—The Postmaster 

24 General shall— 


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1 ‘‘(A) update the strategy required under 

2 this subsection every 2 years; and 

3 ‘‘(B) submit the updated strategy, at the 

4 same time the President submits the annual 

5 budget request under section 1105 of title 31 

6 for that year, and together with the report on 

7 performance under subsection (g), to— 

8 ‘‘(i) the Committee on Homeland Se9 curity and Governmental Affairs of the 

10 Senate; 

11 ‘‘(ii) the Committee on Oversight and 

12 Government Reform of the House of Rep13 resentatives; and 

14 ‘‘(iii) the Postal Regulatory Commis15 sion. 

16 ‘‘(g) REPORT ON PERFORMANCE.— 

17 ‘‘(1) IN GENERAL.—The Postmaster General 

18 shall submit an annual report that describes the 

19 progress of the Postal Service in implementing the 

20 strategy under this section, at the same time the 

21 President submits the annual budget request under 

22 section 1105 of title 31, to— 

23 ‘‘(A) the Committee on Homeland Security 

24 and Governmental Affairs of the Senate; 


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1 ‘‘(B) the Committee on Oversight and Gov2 ernment Reform of the House of Representa3 tives; and 

4 ‘‘(C) the Postal Regulatory Commission. 

5 ‘‘(2) MATTERS TO BE ADDRESSED.—At a min6 imum, a report under this subsection shall include— 

7 ‘‘(A) the revenue generated by each prod8 uct and service developed through the strategy 

9 under this section and the costs of developing 

10 and offering each product or service for the pre11 ceding year; 

12 ‘‘(B) the total sales volume and revenue 

13 generated by each product and service on a 

14 monthly basis for the preceding year; 

15 ‘‘(C) trends in each market in which a 

16 product or service is intended to satisfy a de17 mand; 

18 ‘‘(D) products and services identified in 

19 the strategy under this section that are to be 

20 discontinued, the date on which the discontinu21 ance will occur, and the reasons for the dis22 continuance; 

23 ‘‘(E) alterations in products and services 

24 identified in the strategy under this section that 

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1 tions, and an explanation of how the alterations 

2 will ensure the success of the products and 

3 services; and 

4 ‘‘(F) the performance of the strategy 

5 under this section according to the metrics 

6 identified under subsection (e)(2)(G). 

7 ‘‘(h) STUDY AND REPORT BY COMPTROLLER GEN8 ERAL.— 

9 ‘‘(1) STUDY.— 

10 ‘‘(A) IN GENERAL.—The Comptroller Gen11 eral of the United States shall conduct a study 

12 on the implementation of the strategy under 

13 this section that assesses the effectiveness of 

14 the Postal Service in identifying, developing, 

15 and selling innovative postal and nonpostal 

16 products and services. 

17 ‘‘(B) CONTENTS.—The study under sub18 paragraph (A) shall include— 

19 ‘‘(i) an audit of the costs of devel20 oping each innovative postal and nonpostal 

21 product and service developed or offered by 

22 the Postal Service; 

23 ‘‘(ii) the sales volume of each product 

24 and service; 


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1 ‘‘(iii) the revenues and profits gen2 erated by each product and service; and 

3 ‘‘(iv) the likelihood of continued suc4 cess of each product and service. 

5 ‘‘(2) REPORT.—Not later than 3 years after the 

6 date of enactment of this section, the Comptroller 

7 General shall submit a report concerning the study 

8 under paragraph (1) to— 

9 ‘‘(A) the Committee on Homeland Security 

10 and Governmental Affairs of the Senate; and 

11 ‘‘(B) the Committee on Oversight and Gov12 ernment Reform of the House of Representa13 tives.’’. 

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

15 for chapter 2 of title 39, United States Code, is amended 

16 by adding at the end the following: 

‘‘209. Innovation and accountability.’’. 

17 TITLE IV—MAINTAINING LEVELS 

18 OF SERVICE 

19 SEC. 401. SIX-DAY DELIVERY. 

20 Section 404a(a) of title 39, United States Code, is 

21 amended— 

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

23 end; 

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

25 inserting ‘‘; or’’; and 


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

2 ‘‘(4) reduce the frequency of the delivery of 

3 mail to fewer than 6 days each week.’’. 

4 SEC. 402. SERVICE STANDARDS FOR MARKET-DOMINANT 

5 PRODUCTS. 

6 Section 3691 of title 39, United States Code, is 

7 amended by adding at the end the following: 

8 ‘‘(e) RESTRICTION ON AUTHORITY.—Notwith9 standing subsections (a), (b), and (c), the Postal Service 

10 may not increase the expected delivery time for market11 dominant products required under part 121 of title 39, 

12 Code of Federal Regulations, as in effect on March 2, 

13 2010.’’. 

14 TITLE V—ELIMINATION OF AN15 NUAL LIMITATION ON IN16 CREASES IN RATES FOR MAR17 KET-DOMINANT PRODUCTS 

18 SEC. 501. ELIMINATION OF ANNUAL LIMITATION. 

19 (a) IN GENERAL.—Subparagraph (A) of paragraph 

20 (1) of section 3622(d) of title 39, United States Code, is 

21 repealed. 

22 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

23 Such section 3622(d), as amended by subsection (a), is 

24 further amended— 

25 (1) in paragraph (1)— 


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1 (A) by redesignating subparagraphs (B) 

2 and (C) as subparagraphs (A) and (B), respec3 tively; and 

4 (B) in subparagraph (B) (as so redesig5 nated by subparagraph (A))— 

6 (i) by inserting ‘‘and’’ at the end of 

7 clause (i); and 

8 (ii) by striking clauses (iii) and (iv); 

9 (C) by striking subparagraph (D) and re10 designating subparagraph (E) as subparagraph 

11 (D); and 

12 (D) in subparagraph (D) (as so redesig13 nated by subparagraph (C)), by striking ‘‘not14 withstanding’’ and all that follows through 

15 ‘‘paragraph (2)(C),’’; and 

16 (2) by striking paragraph (2) and redesignating 

17 paragraph (3) as paragraph (2). 

Æ 


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