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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2967 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 2967

  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

                           September 20, 2011

Mr. Cummings (for himself and Mr. Lynch) introduced the following bill; 
 which was referred to the Committee on Oversight and Government Reform

_______________________________________________________________________

                                 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 2011''.
    (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

Sec. 101. Authority to offer nonpostal services.
Sec. 102. USPS balanced budget minimum requirement.
Sec. 103. Enhanced pricing flexibility.
Sec. 104. Investment of competitive product moneys.
Sec. 105. Requirement that market-dominant products cover attributable 
                            costs.
Sec. 106. PRC to revisit CPI cap instituted under PAEA.
Sec. 107. Enhanced product innovation.
Sec. 108. Repeal of uniform rate for books, films, and other materials.
Sec. 109. USPS innovation officer and accountability.
    TITLE II--POSTAL SERVICE WORKFORCE REALIGNMENT AND RIGHT-SIZING

Sec. 201. Treatment of surplus contributions to Federal Employees' 
                            Retirement System.
Sec. 202. Contributions to Thrift Savings Fund of voluntary separation 
                            incentive payments.
Sec. 203. Modification of prepayment schedule relating to Postal 
                            Service Retiree Health Benefits Fund.
Sec. 204. Study on USPS workforce realignment and right-sizing options.
Sec. 205. Applicability of provisions relating to reductions in force.
Sec. 206. 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

SEC. 101. 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. 102. USPS BALANCED BUDGET MINIMUM REQUIREMENT.

    Subsection (b) of section 404 is amended--
            (1) by striking ``(b)'' and inserting ``(b)(1)''; and
            (2) by adding at the end the following:
    ``(2) Except as otherwise explicitly prohibited by this title, 
within 180 days after the date of enactment of this paragraph, the 
Governors shall ensure that the rates and fees charged, and the level 
and quality of services provided, shall be adjusted so that the total 
revenues received by the Postal Service 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.''.

SEC. 103. ENHANCED PRICING FLEXIBILITY.

    The second sentence of section 404(c) is repealed.

SEC. 104. 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 Act.''.

SEC. 105. 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. 106. 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
            (2) in subsection (d)(3), by striking ``Ten'' and inserting 
        ``Five''.

SEC. 107. 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. 108. 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.

SEC. 109. 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 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 these 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 October 1, 2012, 
        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, the Chief 
        Innovation Officer 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 24 months after the date 
        of enactment of this section, 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 next 5 years; and
                    ``(G) the metrics that will be utilized to assess 
                the effectiveness of the innovation strategy.
            ``(3) Strategy updates.--The strategy required by this 
        section shall be updated every 3 years and submitted 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 annual budget request.
    ``(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 annual budget request 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 preceding 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;
                    ``(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.''.

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

SEC. 201. TREATMENT OF SURPLUS CONTRIBUTIONS TO FEDERAL EMPLOYEES' 
              RETIREMENT SYSTEM.

    Section 8423(b) of title 5, United States Code, is amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following:
            ``(5) If, for any of fiscal years 2011 through 2016, the 
        amount computed under paragraph (1)(B) is less than zero (in 
        this paragraph referred to as `surplus postal contributions'), 
        the amount of those surplus postal contributions shall be used 
        by the United States Postal Service only for the purposes of--
                    ``(A) providing voluntary separation incentive 
                payments (as established under section 3523) for 
                eligible employees; and
                    ``(B) providing voluntary separation incentive 
                payments (as established under section 3523) in 
                conjunction with voluntary early retirement authority 
                for eligible employees under sections 8336(d)(2) or 
                8414(b)(1)(B).''.

SEC. 202. 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.'';
            (3) 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. 203. MODIFICATION OF PREPAYMENT SCHEDULE RELATING TO POSTAL 
              SERVICE RETIREE HEALTH BENEFITS FUND.

    (a) Section 8909a(d)(2)(B) of title 5, United States Code, is 
amended--
            (1) by striking ``2017'' and inserting ``2012'';
            (2) by striking ``2056'' and inserting ``2051''.
    (b) Section 8909a(d)(3)(A) is amended--
            (1) in clause (iii), by inserting ``and'' at the end;
            (2) in clause (iv), by striking the semicolon and inserting 
        a period; and
            (3) by striking clauses (v) through (x).
    (c) Section 8909a(d)(3)(B) is amended by striking ``2017'' and 
inserting ``2012''.

SEC. 204. STUDY ON USPS WORKFORCE REALIGNMENT AND RIGHT-SIZING OPTIONS.

    (a) In General.--Not later than 180 days 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 workforce reduction or realignment 
methods which could be 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, 
        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 workforce authorities available to the Postal 
        Service under existing law, including for reductions in force 
        and voluntary separation incentive payments.
            (4) 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. 205. 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. 206. 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 206) 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''; and
            (2) 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 105(b), is further 
amended--
            (1) in subparagraph (E) (as so redesignated by section 
        105(b)), by striking ``and'' at the end;
            (2) in subparagraph (F) (as so redesignated by section 
        105(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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