I 

117TH CONGRESS 

1ST SESSION H. R. 3076 

To provide stability to and enhance the services of the United States Postal 

Service, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 11, 2021 

Mrs. CAROLYN B. MALONEY of New York (for herself, Mr. CONNOLLY, Ms. 

FOXX, and Mr. COMER) introduced the following bill; which was referred 

to the Committee on Oversight and Reform, and in addition to the Committees on Energy and Commerce, and Ways and Means, 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 provide stability to and enhance the services of the United 

States 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, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Postal Service Reform Act of 2021’’. 

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

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 


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TITLE I—POSTAL SERVICE FINANCIAL REFORMS 

Sec. 101. Postal Service Health Benefits Program. 

Sec. 102. USPS Fairness Act. 

Sec. 103. Nonpostal services. 

TITLE II—POSTAL SERVICE OPERATIONAL REFORMS 

Sec. 201. Performance Targets and Transparency. 

Sec. 202. Integrated delivery network. 

Sec. 203. Review of postal service cost attribution guidelines. 

Sec. 204. Rural newspaper sustainability. 

Sec. 205. Funding of postal regulatory commission. 

Sec. 206. Flats operations study and reform. 

Sec. 207. Reporting requirements. 

Sec. 208. Postal service transportation selection policy revisions. 

Sec. 209. USPS Inspector General oversight of Postal Regulatory Commission. 

1 TITLE I—POSTAL SERVICE 

2 FINANCIAL REFORMS 

3 SEC. 101. POSTAL SERVICE HEALTH BENEFITS PROGRAM. 

4 (a) ESTABLISHMENT.— 

5 (1) IN GENERAL.—Chapter 89 of title 5, United 

6 States Code, is amended by inserting after section 

7 8903b the following: 

8 ‘‘§ 8903c. Postal service health benefits program 

9 ‘‘(a) DEFINITIONS.—In this section— 

10 ‘‘(1) the term ‘covered Medicare individual’ 

11 means an individual who is entitled to benefits under 

12 Medicare part A, but excluding an individual who is 

13 eligible to enroll under such part under section 1818 

14 or 1818A of the Social Security Act (42 U.S.C. 

15 1395i–2, 1395i–2a); 

16 ‘‘(2) the term ‘initial contract year’ means the 

17 contract year beginning in January of 2023; 


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1 ‘‘(3) the term ‘initial participating carrier’ 

2 means a carrier that enters into a contract with the 

3 Office to participate in the Postal Service Health 

4 Benefits Program during the initial contract year; 

5 ‘‘(4) the term ‘Medicare part A’ means part A 

6 of title XVIII of the Social Security Act (42 U.S.C. 

7 1395c et seq.); 

8 ‘‘(5) the term ‘Medicare part B’ means part B 

9 of title XVIII of the Social Security Act (42 U.S.C. 

10 1395j et seq.); 

11 ‘‘(6) the term ‘Office’ means the Office of Per12 sonnel Management; 

13 ‘‘(7) the term ‘Postal Service’ means the United 

14 States Postal Service; 

15 ‘‘(8) the term ‘Postal Service annuitant’ means 

16 an annuitant enrolled in a health benefits plan under 

17 this chapter whose Government contribution is paid 

18 pursuant to the requirements of section 8906(g)(2); 

19 ‘‘(9) the term ‘Postal Service employee’ means 

20 an employee of the Postal Service enrolled in a 

21 health benefits plan under this chapter whose Gov22 ernment contribution is paid by the Postal Service; 

23 ‘‘(10) the term ‘Postal Service Medicare covered 

24 annuitant’ means an individual who— 

25 ‘‘(A) is a Postal Service annuitant; and 


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1 ‘‘(B) is a covered Medicare individual; 

2 ‘‘(11) the term ‘Program’ means the Postal 

3 Service Health Benefits Program established under 

4 subsection (c) within the Federal Employees Health 

5 Benefit Program; 

6 ‘‘(12) the term ‘Program plan’ means a health 

7 benefits plan offered under the Program; and 

8 ‘‘(13) the terms set forth in section 8901 shall 

9 apply. 

10 ‘‘(b) APPLICATION.—The requirements under this 

11 section shall— 

12 ‘‘(1) apply to the initial contract year and each 

13 contract year thereafter; and 

14 ‘‘(2) supersede any other provision of this chap15 ter inconsistent with such requirements, as deter16 mined by the Office of Personnel Management. 

17 ‘‘(c) ESTABLISHMENT OF THE POSTAL SERVICE

18 HEALTH BENEFITS PROGRAM.— 

19 ‘‘(1) IN GENERAL.—The Office shall establish 

20 the Postal Service Health Benefits Program under 

21 which the Office contracts with carriers to offer 

22 health benefits plans as described under this section. 

23 Except as otherwise provided in this section, any 

24 such contract shall be consistent with the require25 ments of this chapter for contracts under section 


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1 8902 with carriers to offer health benefits plans 

2 other than under this section. The Program shall— 

3 ‘‘(A) to the greatest extent practicable, in4 clude plans offered by— 

5 ‘‘(i) each carrier for which the total 

6 enrollment in the plans provided under this 

7 chapter includes, in the contract year be8 ginning in January 2022, 1,500 or more 

9 enrollees who are Postal Service employees 

10 or Postal Service annuitants; and 

11 ‘‘(ii) any other carrier determined ap12 propriate by the Office; 

13 ‘‘(B) be available for participation by Post14 al Service employees and Postal Service annu15 itants, in accordance with subsection (d); 

16 ‘‘(C) provide for enrollment in a plan as an 

17 individual, for self plus one, or for self and fam18 ily; and 

19 ‘‘(D) not be available for participation by 

20 an individual who is not a Postal Service em21 ployee or Postal Service annuitant (except as a 

22 member of family of such an employee or annu23 itant or as provided under paragraph (5)). 

24 ‘‘(2) SEPARATE POSTAL SERVICE RISK POOL.— 

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1 cludes rates that reasonably and equitably reflect the 

2 cost of benefits provided to a risk pool consisting 

3 solely of Postal Service employees, Postal Service an4 nuitants, and covered members of family of such em5 ployees and annuitants (regardless of the health 

6 plan, coverage, or benefit program in which such an 

7 employee, annuitant, or member of family is en8 rolled), taking into specific account the change in 

9 benefits cost for the Program plan due to the Medi10 care enrollment requirements under subsection (e) 

11 and any savings or subsidies resulting from sub12 section (f). 

13 ‘‘(3) ACTUARIALLY EQUIVALENT COVERAGE.— 

14 The Office shall ensure that each carrier partici15 pating in the Postal Service Health Benefits Pro16 gram provides coverage under the Program plans of17 fered by the carrier that is actuarially equivalent, as 

18 determined by the Office, to the coverage that the 

19 carrier provides under the health benefits plans of20 fered by the carrier under this chapter that are not 

21 Program plans. 

22 ‘‘(4) APPLICABILITY OF FEDERAL EMPLOYEES

23 HEALTH BENEFITS PROGRAM REQUIREMENTS.—Ex24 cept as otherwise set forth in this section, all provi25 sions of this chapter applicable to health benefits 


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1 plans offered by carriers under section 8903 or 

2 8903a shall apply to plans offered under the Pro3 gram. 

4 ‘‘(5) APPLICATION OF CONTINUATION COV5 ERAGE.—In accordance with rules established by the 

6 Office, section 8905a shall apply to health benefits 

7 plans offered under this section in the same manner 

8 as such section applies to other health benefits plans 

9 offered under this chapter. 

10 ‘‘(d) ELECTION OF COVERAGE.— 

11 ‘‘(1) IN GENERAL.—Except as provided in para12 graph (2), each Postal Service employee and Postal 

13 Service annuitant who elects to receive health bene14 fits coverage under this chapter— 

15 ‘‘(A) shall be subject to the requirements 

16 of this section; and 

17 ‘‘(B) may not enroll in any other health 

18 benefits plan offered under any other section of 

19 this chapter. 

20 ‘‘(2) EXCEPTIONS.— 

21 ‘‘(A) LACK OF GEOGRAPHIC COVERAGE.— 

22 An individual who is a Postal Service employee 

23 or Postal Service annuitant may enroll in a 

24 health benefits plan offered under any other 

25 section of this chapter if the individual resides 


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1 in a geographic area for which there is not a 

2 Program plan in which the individual may en3 roll. 

4 ‘‘(B) ANNUITANTS AS OF PROGRAM INCEP5 TION.— 

6 ‘‘(i) CURRENT MEDICARE COVERED

7 ANNUITANTS.— 

8 ‘‘(I) IN GENERAL.—Subject to 

9 subclause (II), in the case of an indi10 vidual who, as of January 1, 2023, is 

11 a Postal Service Medicare covered an12 nuitant who has not enrolled in both 

13 Medicare part A and Medicare part B, 

14 such individual may enroll in a health 

15 benefits plan offered under any other 

16 section of this chapter, and may not 

17 enroll in a Program plan. 

18 ‘‘(II) PROGRAM PLAN ENROLL19 MENT FOLLOWING MEDICARE PARTS A

20 AND B ENROLLMENT.—In the case of 

21 an individual described in subclause 

22 (I) who subsequent to January 1, 

23 2023, is enrolled in both Medicare 

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1 ginning after the date such individual 

2 is enrolled in both Medicare part A 

3 and Medicare part B, subclause (I) 

4 shall no longer apply to such indi5 vidual and such individual may receive 

6 health benefits under this chapter 

7 only through a Program plan. 

8 ‘‘(ii) PRE-MEDICARE ANNUITANTS.— 

9 ‘‘(I) IN GENERAL.—Subject to 

10 subclause (II), an individual who, as 

11 of January 1, 2023, is a Postal Serv12 ice annuitant and is not a Postal 

13 Service Medicare annuitant (for a rea14 son other than eligibility to enroll in 

15 Medicare part A under section 1818 

16 or 1818A of the Social Security Act) 

17 may enroll in either a Program plan 

18 or in a health benefits plan offered 

19 under any other section of this chap20 ter. 

21 ‘‘(II) EXCEPTION.—In the case 

22 of an individual described in subclause 

23 (I) who enrolls in a Program plan for 

24 any contract year beginning on or 

25 after the date on which the individual 


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1 becomes a Postal Service Medicare 

2 covered annuitant, beginning with 

3 such contract year, subclause (I) shall 

4 no longer apply to the individual and 

5 the individual may receive health ben6 efits under this chapter only through 

7 enrollment in a Program plan. 

8 ‘‘(C) CERTAIN EMPLOYEES AS OF PRO9 GRAM INCEPTION.— 

10 ‘‘(i) LEGACY COVERAGE.—A Postal 

11 Service employee who is enrolled in a 

12 health benefits plan under this chapter for 

13 the contract year immediately preceding 

14 the initial contract year that is not a 

15 health benefits plan offered by an initial 

16 participating carrier may enroll in either a 

17 Program plan or in a health benefits plan 

18 offered under any other section of this 

19 chapter, except that— 

20 ‘‘(I) if the Postal Service em21 ployee changes enrollment to a dif22 ferent health benefits plan under this 

23 chapter during the open season for 

24 the initial contract year, or after the 

25 start of the initial contract year, the 


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1 Postal Service employee may only en2 roll in a Program plan; 

3 ‘‘(II) if the health benefits plan 

4 in which such employee is enrolled for 

5 such contract year becomes available 

6 as a Program plan, the Postal Service 

7 employee may only enroll in a Pro8 gram plan; and 

9 ‘‘(III) upon becoming a Postal 

10 Service annuitant, if the Postal Serv11 ice employee elects to continue cov12 erage under this chapter, the Postal 

13 Service employee shall enroll in a Pro14 gram plan during the open season 

15 that is— 

16 ‘‘(aa) being held when the 

17 Postal Service employee becomes 

18 a Postal Service annuitant; or 

19 ‘‘(bb) if the date on which 

20 the Postal Service employee be21 comes a Postal Service annuitant 

22 falls outside of an open season, 

23 the first open season following 

24 that date. 


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1 ‘‘(ii) CURRENT EMPLOYEES AGED 64

2 AND OVER.— 

3 ‘‘(I) IN GENERAL.—Subject to 

4 subclause (II), an individual who, as 

5 of January 1, 2023, is a Postal Serv6 ice employee and is at least 64 years 

7 of age may enroll in either a Program 

8 plan or in a health benefits plan of9 fered under any other section of this 

10 chapter. 

11 ‘‘(II) EXCEPTION.—In the case 

12 of an individual described in subclause 

13 (I) who enrolls in a Program plan for 

14 any contract year beginning on or 

15 after the date on which the individual 

16 becomes a Postal Service Medicare 

17 covered annuitant, beginning with 

18 such contract year, subclause (I) shall 

19 no longer apply to the individual and 

20 the individual may receive health ben21 efits under this chapter only through 

22 enrollment in a Program plan. 

23 ‘‘(D) CERTAIN OTHER ANNUITANTS.— 


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1 ‘‘(i) ANNUITANTS AND FAMILY MEM2 BERS EXCLUDED FROM PREMIUM-FREE

3 MEDICARE PART A.— 

4 ‘‘(I) IN GENERAL.—Subject to 

5 subclause (II), a Postal Service annu6 itant who is eligible to enroll in Medi7 care Part A under section 1818 or 

8 1818A of the Social Security Act may 

9 enroll in either a Program plan or in 

10 a health benefits plan offered under 

11 any other section of this chapter if the 

12 annuitant— 

13 ‘‘(aa) is eligible to enroll in 

14 Medicare part A under section 

15 1818 or 1818A of the Social Se16 curity Act; or 

17 ‘‘(bb) includes in the annu18 itant’s plan enrollment one or 

19 more family members who are el20 igible to enroll in Medicare part 

21 A under section 1818 or 1818A 

22 of such Act. 

23 ‘‘(II) EXCEPTION.—In the case 

24 of an annuitant described in subclause 

25 (I) who enrolls in a Program plan for 


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1 any contract year beginning on or 

2 after the date on which the annuitant 

3 or any member of family covered by 

4 the enrollment becomes eligible to en5 roll in Medicare part A, beginning 

6 with such contract year, subclause (I) 

7 shall no longer apply to the annuitant 

8 and the annuitant may receive health 

9 benefits under this chapter only 

10 through enrollment in a Program 

11 plan. 

12 ‘‘(ii) LIMITED OR REDUNDANT COV13 ERAGE.—An individual who is a Postal 

14 Service annuitant may enroll either in a 

15 Program plan (subject to subsection (e) of 

16 this section and to sections 226(j) and 

17 1837(o)(2) of the Social Security Act) or 

18 in a health benefits plan offered under any 

19 other section of this chapter for any con20 tract year in which the annuitant or mem21 ber of family covered by the enrollment, re22 spectively, is a covered Medicare individual 

23 and— 

24 ‘‘(I) the annuitant or family 

25 member, respectively, resides in an 


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1 area where the Office has determined 

2 that no Medicare providers are avail3 able; 

4 ‘‘(II) the annuitant receives com5 prehensive medical coverage provided 

6 by the Department of Veterans Af7 fairs under subchapter II of chapter 

8 17 of title 38, United States Code; or 

9 ‘‘(III) the annuitant receives 

10 comprehensive medical coverage pro11 vided by the Indian Health Service 

12 under the Indian Health Care Im13 provement Act (25 U.S.C. 1601 et 

14 seq.). 

15 ‘‘(iii) REGULATIONS.—Not later than 

16 90 days after the date of enactment of this 

17 section, the Office shall, in consultation 

18 with the Secretary of Health and Human 

19 Services, the Secretary of Veterans Affairs, 

20 and the Postmaster General, promulgate 

21 any regulations necessary to implement 

22 this subparagraph. 

23 ‘‘(e) REQUIREMENT OF MEDICARE ENROLLMENT

24 FOR CERTAIN ANNUITANTS AND THEIR FAMILY MEM25 BERS.— 


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1 ‘‘(1) ANNUITANTS.—Except as provided under 

2 subsection (d)(2), a Postal Service Medicare covered 

3 annuitant may not enroll under a Program plan un4 less the annuitant is enrolled in both Medicare part 

5 A and Medicare part B. 

6 ‘‘(2) MEDICARE COVERED FAMILY MEMBERS.— 

7 In the case of a Postal Service annuitant who is re8 quired under this subsection to enroll in Medicare 

9 part A and Medicare part B to enroll under the Pro10 gram, if a member of family of such Postal Service 

11 annuitant is a covered Medicare individual or is eli12 gible to enroll in Medicare Part A under section 

13 1818 or 1818A of the Social Security Act, that 

14 member of family may not enroll under the Program 

15 as a member of family of the Postal Service annu16 itant unless that member of family is enrolled in 

17 both Medicare part A and Medicare part B. 

18 ‘‘(3) PROCESS FOR COORDINATED ELECTION OF

19 MEDICARE ENROLLMENT.—The Office shall estab20 lish a process under which— 

21 ‘‘(A) Postal Service annuitants and mem22 bers of family who are subject to the require23 ments of paragraph (1) or (2)— 


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1 ‘‘(i) are informed, prior to enrollment 

2 under this section, of such requirement; 

3 and 

4 ‘‘(ii) receive requests for any addi5 tional information necessary for enrollment 

6 in writing; and 

7 ‘‘(B) the Office provides the Secretary of 

8 Health and Human Services and the Commis9 sioner of Social Security in a timely manner 

10 with such information with respect to such an11 nuitants and members of family and such elec12 tion as may be required to effect their enroll13 ment and coverage under Medicare part A and 

14 Medicare part B and this section in a timely 

15 manner, including to effect deemed enrollments, 

16 if applicable under sections 226(j) and 1837(o) 

17 of the Social Security Act, for such continuous 

18 period as such annuitant or member of family 

19 involved otherwise maintains eligibility for en20 rollment under Medicare part A and Medicare 

21 part B, to have elected to be enrolled under 

22 such part (in accordance with such sections) in 

23 connection with the enrollment in a Program 

24 plan under this section. 

25 ‘‘(f) MEDICARE COORDINATION.— 


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1 ‘‘(1) IN GENERAL.—The Office shall require 

2 each Program plan to provide benefits for covered 

3 Medicare individuals (and individuals eligible to en4 roll in Medicare part A pursuant to section 1818 or 

5 1818A of the Social Security Act) pursuant to the 

6 same coordination of benefits method used in con7 nection with plans offered under any other section of 

8 this chapter. 

9 ‘‘(2) MEDICARE PART D PRESCRIPTION DRUG

10 BENEFITS.—The Office shall require each Program 

11 plan to provide prescription drug benefits to any 

12 Postal Service annuitant and member of family of 

13 such annuitant who is a part D eligible individual 

14 (as defined in section 1860D–1(a)(3)(A) of the So15 cial Security Act) through employment-based retiree 

16 health coverage (as defined in section 1860D– 

17 22(c)(1) of such Act) through a prescription drug 

18 plan (as defined in section 1860D–41(a)(14) of such 

19 Act). 

20 ‘‘(g) POSTAL SERVICE CONTRIBUTION.— 

21 ‘‘(1) IN GENERAL.—Subject to subsection (i), 

22 for purposes of applying section 8906(b) to the 

23 Postal Service, the weighted average shall be cal24 culated in accordance with paragraphs (2) and (3). 


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1 ‘‘(2) WEIGHTED AVERAGE CALCULATION.—Not 

2 later than October 1 of each year (beginning with 

3 2022), the Office shall determine the weighted aver4 age of the rates established pursuant to subsection 

5 (c)(2) for Program plans that will be in effect dur6 ing the following contract year with respect to— 

7 ‘‘(A) enrollments for self only; 

8 ‘‘(B) enrollments for self plus one; and 

9 ‘‘(C) enrollments for self and family. 

10 ‘‘(3) WEIGHTING IN COMPUTING RATES FOR

11 INITIAL CONTRACT YEAR.—In determining such 

12 weighted average of the rates for the initial contract 

13 year, the Office shall take into account (for purposes 

14 of section 8906(a)(2)) the enrollment of Postal Serv15 ice employees and annuitants in the health benefits 

16 plans offered by the initial participating carriers as 

17 of March 31, 2022. 

18 ‘‘(h) RESERVES.— 

19 ‘‘(1) SEPARATE RESERVES.— 

20 ‘‘(A) IN GENERAL.—The Office shall en21 sure that each Program plan maintains sepa22 rate reserves (including a separate contingency 

23 reserve) with respect to the enrollees in the 

24 Program plan in accordance with section 8909. 

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1 tingency reserves shall apply to contingency re2 serves of Program plans in the same manner as 

3 to those of other plans under this chapter, ex4 cept to the extent that such provisions are in5 consistent with the requirements of this sub6 section. 

7 ‘‘(B) REFERENCES.—For purposes of the 

8 Program, each reference to ‘the Government’ in 

9 section 8909 shall be deemed to be a reference 

10 to the Postal Service. 

11 ‘‘(C) AMOUNTS TO BE CREDITED.—The re12 serves (including the separate contingency re13 serve) maintained by each Program plan shall 

14 be credited with a proportionate amount of the 

15 funds in the reserves for health benefits plans 

16 offered by the carrier. 

17 ‘‘(2) DISCONTINUATION OF PROGRAM PLAN.— 

18 In applying section 8909(e) relating to a Program 

19 plan that is discontinued, the Office shall credit the 

20 separate Postal Service contingency reserve main21 tained under paragraph (1) for that plan only to the 

22 separate Postal Service contingency reserves of the 

23 Program plans continuing under this chapter. 

24 ‘‘(i) NO EFFECT ON EXISTING LAW.—Nothing in 

25 this section shall be construed as affecting section 1005(f) 


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1 of title 39 regarding variations, additions, or substitutions 

2 to the provisions of this chapter. 

3 ‘‘(j) HEALTH BENEFITS EDUCATION PROGRAM.— 

4 ‘‘(1) Not later than 180 days after the date of 

5 enactment of this section, the Postal Service shall 

6 establish a Health Benefits Education Program. 

7 Under the Program, the Postal Service shall— 

8 ‘‘(A) notify annuitants and employees of 

9 the Postal Service about the Postal Service 

10 Health Benefits Program established under 

11 subsection (c)(1); 

12 ‘‘(B) provide information regarding the 

13 Postal Service Health Benefits Program to such 

14 annuitants and employees, including a descrip15 tion of the health care options available under 

16 such Program, the enrollment provisions of sub17 section (d), and the requirement that annu18 itants and their family members be enrolled in 

19 Medicare under subsection (e); and 

20 ‘‘(C) in coordination with the Centers for 

21 Medicare & Medicaid Services and the Commis22 sioner of Social Security, respond and provide 

23 answers to any inquiry from such employees 

24 and annuitants about the Postal Service Health 

25 Benefits Program or Medicare enrollment. 


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1 ‘‘(2) The Office shall timely provide the Postal 

2 Service with such information as the Postal Service 

3 determines to be necessary to conduct the Medicare 

4 Education Program.’’. 

5 (2) TECHNICAL AND CONFORMING AMEND6 MENTS.— 

7 (A) Section 8903(1) of title 5, United 

8 States Code, is amended by striking ‘‘two levels 

9 of benefits’’ and inserting ‘‘2 levels of benefits 

10 for enrollees under this chapter generally and 2 

11 levels of benefits for enrollees under the Postal 

12 Service Health Benefits Program established 

13 under section 8903c’’. 

14 (B) The table of sections for chapter 89 of 

15 title 5, United States Code, is amended by in16 serting after the item relating to section 8903b 

17 the following: 

‘‘8903c. Postal Service Health Benefits Program.’’. 

18 (b) COORDINATION WITH MEDICARE.— 

19 (1) MEDICARE PART A.—Section 226 of the So20 cial Security Act (42 U.S.C. 426) is amended by 

21 adding at the end the following new subsection: 

22 ‘‘(j)(1) In the case of an individual who— 

23 ‘‘(A) on or after January 1, 2023, is— 

24 ‘‘(i) a Postal Service employee; 


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1 ‘‘(ii) a Postal Service annuitant who is 

2 not a Postal Service Medicare covered an3 nuitant; or 

4 ‘‘(iii) a member of family of a Postal 

5 Service employee or of a Postal Service an6 nuitant and who is not described in section 

7 1837(o)(1) of this Act; and 

8 ‘‘(B) enrolls in a Program plan under sec9 tion 8903c of title 5, United States Code, 

10 such individual is deemed to be enrolled under this 

11 part, regardless of whether such individual has filed 

12 an application under subparagraph (A) or (C) of 

13 subsection (a)(2). 

14 ‘‘(2) Entitlement to hospital benefits under part 

15 A by reason of paragraph (1) begins as of— 

16 ‘‘(A) in the case of an individual who is a 

17 Postal Service employee or a Postal Service an18 nuitant who is eligible to become a Postal Serv19 ice Medicare covered annuitant, the date on 

20 which the individual becomes a Postal Service 

21 Medicare covered annuitant or the date of en22 rollment in a Program plan, whichever is later; 

23 ‘‘(B) in the case of an individual who is eli24 gible to enroll under section 1818 or 1818A, 

25 the date on which the individual attains such 


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1 eligibility or the date of enrollment in a Pro2 gram plan whichever is later; and 

3 ‘‘(C) in the case of an individual who is de4 scribed in paragraph (1)(A)(iii) and is eligible 

5 to become a covered Medicare individual, as of 

6 the first date the individual becomes a covered 

7 Medicare individual or the date of enrollment in 

8 a Program plan, whichever is later. 

9 ‘‘(3) The definitions in section 8903c(a) of title 

10 5, United States Code, shall apply for purposes of 

11 this subsection. 

12 ‘‘(4) Nothing in this subsection shall be con13 strued to deprive any individual of any other method 

14 or period of enrollment to which such individual is 

15 entitled under this section.’’. 

16 (2) MEDICARE PART B.— 

17 (A) ENROLLMENT.—Section 1837 of the 

18 Social Security Act (42 U.S.C. 1395p) is 

19 amended by adding at the end the following 

20 new subsection: 

21 ‘‘(o)(1) In the case of an individual who— 

22 ‘‘(A) as of January 1, 2023, is— 

23 ‘‘(i) a Postal Service Medicare covered 

24 annuitant; or 


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1 ‘‘(ii) a member of family of a Postal 

2 Service employee or of a Postal Service an3 nuitant and is a covered Medicare indi4 vidual; 

5 ‘‘(B) intends to enroll in a Program plan 

6 under section 8903c of title 5, United States 

7 Code, for the initial contract year; and 

8 ‘‘(C) is not enrolled under this part, 

9 the individual may elect to be enrolled under this 

10 part during a special enrollment period during the 3- 

11 month period beginning on January 1, 2023. 

12 ‘‘(2) In the case of an individual who— 

13 ‘‘(A) on or after January 1, 2023, is— 

14 ‘‘(i) a Postal Service employee; 

15 ‘‘(ii) a Postal Service annuitant who is 

16 not a Postal Service Medicare covered an17 nuitant; or 

18 ‘‘(iii) a member of family of a Postal 

19 Service employee or of a Postal Service an20 nuitant and who is not described in para21 graph (1); and 

22 ‘‘(B) enrolls in a Program plan under sec23 tion 8903c of title 5, United States Code; 


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1 the individual shall be deemed to have enrolled in 

2 the medical insurance program established by this 

3 part. 

4 ‘‘(3) The definitions in section 8903c(a) of title 

5 5, United States Code, shall apply for purposes of 

6 this subsection. 

7 ‘‘(4) Nothing in this subsection shall be con8 strued to deprive any individual of any other method 

9 or period of enrollment to which such individual is 

10 entitled under this section.’’. 

11 (B) COVERAGE PERIODS.—Section 1838 of 

12 the Social Security Act (42 U.S.C. 1395q) is 

13 amended by adding at the end the following 

14 new subsection: 

15 ‘‘(i) Notwithstanding subsection (a)— 

16 ‘‘(1) in the case of an individual who enrolls 

17 under this part pursuant to a special enrollment pe18 riod under paragraph (1) of section 1837(o), the 

19 coverage period under this part shall begin on the 

20 date that the individual first has coverage under the 

21 Program plan pursuant to the enrollment described 

22 in paragraph (1)(B) of such section; and 

23 ‘‘(2) in the case of an individual who is deemed 

24 enrolled under paragraph (2) of section 1837(o), the 

25 coverage period under this part shall begin as of— 


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1 ‘‘(A) in the case of such an individual who 

2 is a Postal Service employee or a Postal Service 

3 annuitant who is eligible to become a Postal 

4 Service Medicare covered annuitant, the date on 

5 which the individual becomes a Postal Service 

6 Medicare covered annuitant or the date of en7 rollment in a Program plan, whichever is later; 

8 ‘‘(B) in the case of such an individual who 

9 is eligible to enroll under section 1818 or 

10 1818A of this Social Security Act, the date on 

11 which the individual attains such eligibility or 

12 the date of enrollment in a Program plan, 

13 whichever is later; and 

14 ‘‘(C) in the case of an individual described 

15 in paragraph (2)(A)(i)(III) of such section who 

16 is eligible to become a covered Medicare indi17 vidual, as of the first date the individual be18 comes a covered Medicare individual or the date 

19 of enrollment in a Program plan, whichever is 

20 later.’’. 

21 (3) PART D EGWP CONTRACTING CONFORMING

22 AMENDMENT.—Section 1860D–22(b) of the Social 

23 Security Act (42 U.S.C. 1395w–132(b)) is amended 

24 by inserting before the period at the end the fol25 lowing: ‘‘, and shall be applied in a manner to faciliVerDate Sep 11 2014 00:22 May 12, 2021 Jkt 019200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H3076.IH H3076

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1 tate the offering of prescription drug benefits under 

2 a Program plan under section 8903c of title 5, 

3 United States Code, through employment-based re4 tiree health coverage through a prescription drug 

5 plan, as required under subsection (f) of such sec6 tion, through contracts between such a Program 

7 plan and such a prescription drug plan’’. 

8 (4) WAIVER OF INCREASE OF MEDICARE PART

9 B PREMIUM.—Section 1839(b) of the Social Security 

10 Act (42 U.S.C. 1395r(b)) is amended by inserting 

11 after ‘‘subsection (i)(4) or (l) of section 1837’’ the 

12 following: ‘‘or pursuant to the special enrollment pe13 riod under subsection (o)(1) of such section’’. 

14 SEC. 102. USPS FAIRNESS ACT. 

15 (a) SHORT TITLE.—This section may be cited as the 

16 ‘‘USPS Fairness Act’’. 

17 (b) RATIONAL BENEFITS FUNDING AND ACCOUNT18 ING.— 

19 (1) IN GENERAL.—Section 8909a of title 5, 

20 United States Code, is amended by striking sub21 section (d) and inserting the following: 

22 ‘‘(d)(1) Not later than June 30, 2024, and by June 

23 30 of each succeeding year, the Office shall compute, for 

24 the most recently concluded fiscal year, the difference be25 tween— 


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1 ‘‘(A) any Government contributions re2 quired to be paid from the Fund under section 

3 8906(g)(2)(A); and 

4 ‘‘(B) the net claims costs under the enroll5 ment of the individuals described in section 

6 8906(g)(2)(A). 

7 ‘‘(2) Not later than September 30 of each year 

8 in which the Office makes a computation under 

9 paragraph (1), the United States Postal Service 

10 shall pay into the Fund the difference computed in 

11 such paragraph. 

12 ‘‘(e) Any computation of the liability of the Fund re13 quired by law shall be based on— 

14 ‘‘(1) the net present value of the future net 

15 claims costs with respect to— 

16 ‘‘(A) current annuitants of the United 

17 States Postal Service as of the end of the fiscal 

18 year ending on September 30 of the relevant re19 porting year; and 

20 ‘‘(B) current employees of the United 

21 States Postal Service who would, as of Sep22 tember 30 of that year,— 

23 ‘‘(i) be eligible to become annuitants 

24 pursuant to section 8901(3)(A); and 


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1 ‘‘(ii) if they were retired as of that 

2 date, meet the criteria for coverage of an3 nuitants under section 8905(b); 

4 ‘‘(2) economic and actuarial methods and as5 sumptions consistent with the methods and assump6 tions used in determining the Postal surplus or sup7 plemental liability under section 8348(h); and 

8 ‘‘(3) any other methods and assumptions, in9 cluding a health care cost trend rate, that the Direc10 tor of the Office determines to be appropriate. 

11 ‘‘(f) After consultation with the United States Postal 

12 Service, the Office shall promulgate any regulations the 

13 Office determines necessary under this subsection. 

14 ‘‘(g) For purposes of this section, the term ‘net 

15 claims costs’ shall mean the difference between— 

16 ‘‘(1) the sum of— 

17 ‘‘(A) the costs incurred by a carrier in pro18 viding health services to, paying for health serv19 ices provided to, or reimbursing expenses for 

20 health services provided to, annuitants of the 

21 United States Postal Service and any other per22 sons covered under the enrollment of such an23 nuitants; and 

24 ‘‘(B) an amount of indirect expenses rea25 sonably allocable to the provision, payment, or 


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1 reimbursement described in subparagraph (A), 

2 as determined by the Office; and 

3 ‘‘(2) the amount withheld from the annuity of 

4 or paid by annuitants of the United States Postal 

5 Service under section 8906.’’. 

6 (2) CLERICAL AMENDMENT.—The heading of 

7 section 8909a of title 5, United States Code, is 

8 amended by striking ‘‘Benefit’’ and inserting 

9 ‘‘Benefits’’. 

10 (c) APPLICATION.— 

11 (1) CANCELLATION OF PAYMENTS.—Any pay12 ment required from the Postal Service under section 

13 8909a of title 5, United States Code, as in effect on 

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

15 remains unpaid as of such date of enactment is can16 celed. 

17 (2) EFFECT OF THIS ACT.—In any determina18 tion relating to the future liability for retiree health 

19 benefits of the United States Postal Service or the 

20 Postal Service Retiree Health Benefits Fund, the 

21 Office of Personnel Management shall take into ac22 count the actual and reasonably expected effects of 

23 this Act. 

24 (d) USE OF FUNDS FROM SALE OF REAL PROPERTY

25 FOR CERTAIN PAYMENTS.— 


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1 (1) IN GENERAL.—Chapter 29 of title 39, 

2 United States Code, is amended by adding at the 

3 end the following: 

4 ‘‘§ 2903. Use of funds from sale of property 

5 ‘‘In the event that the Postal Service permanently 

6 ceases operations, any funds derived from the sale of any 

7 real property owned by the Postal Service shall be used 

8 to pay any outstanding liability with respect to the salaries 

9 and expenses of any Postal Service employee. The balance 

10 of any remaining funds shall be deposited into the Postal 

11 Service Retiree Health Benefits Fund established under 

12 section 8909a of title 5.’’. 

13 (2) CLERICAL AMENDMENT.—The table of sec14 tions of such chapter is amended by adding after the 

15 item relating to section 2902 the following new item: 

‘‘2903. Use of funds from sale of property.’’. 

16 SEC. 103. NONPOSTAL SERVICES. 

17 (a) NONPOSTAL SERVICES.— 

18 (1) IN GENERAL.—Part IV of title 39, United 

19 States Code, is amended by adding after chapter 36 

20 the following: 

21 ‘‘CHAPTER 37—NONPOSTAL SERVICES 

‘‘Sec. 

‘‘3701. Purpose. 

‘‘3702. Definitions. 

‘‘3703. Postal Service program for State governments. 

‘‘3704. Postal Service program for other Government agencies. 

‘‘3705. Transparency and accountability for nonpostal services. 


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1 ‘‘§ 3701. Purpose 

2 ‘‘The purpose of this chapter is to enable the Postal 

3 Service to increase its net revenues through specific non4 postal products and services that are expressly authorized 

5 by this chapter. Postal Service revenues and expenses 

6 under this chapter shall be funded through the Postal 

7 Service Fund. 

8 ‘‘§ 3702. Definitions 

9 ‘‘In this chapter— 

10 ‘‘(1) the term ‘nonpostal services’ is limited to 

11 services offered by the Postal Service that are ex12 pressly authorized by this chapter and are not postal 

13 products or services; 

14 ‘‘(2) the term ‘attributable costs’ has the mean15 ing given such term in section 3631; and 

16 ‘‘(3) the term ‘year’ means a fiscal year. 

17 ‘‘§ 3703. Postal Service program for State govern18 ments 

19 ‘‘(a) IN GENERAL.—Notwithstanding any other pro20 vision of this title, the Postal Service may establish a pro21 gram to enter into agreements with an agency of any State 

22 government, local government, or tribal government to 

23 provide property and services on behalf of such agencies 

24 for non-commercial products and services, but only if such 

25 property and services— 


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1 ‘‘(1) provide enhanced value to the public, such 

2 as by lowering the cost or raising the quality of such 

3 services or by making such services more accessible; 

4 ‘‘(2) do not interfere with or detract from the 

5 value of postal services, including— 

6 ‘‘(A) the cost and efficiency of postal serv7 ices; and 

8 ‘‘(B) unreasonably restricting access to 

9 postal retail service, such as customer waiting 

10 time and access to parking; and 

11 ‘‘(3) provide a reasonable contribution to the in12 stitutional costs of the Postal Service, defined as re13 imbursement that covers at least 100 percent of at14 tributable costs of all property and services provided 

15 under each relevant agreement in each year. 

16 ‘‘(b) PUBLIC NOTICE.—At least 90 days before offer17 ing a service under the program, the Postal Service shall 

18 make available to the public on its website— 

19 ‘‘(1) the agreement with the agency regarding 

20 such service; and 

21 ‘‘(2) a business plan that describes the specific 

22 service to be provided, the enhanced value to the 

23 public, terms of reimbursement, the estimated an24 nual reimbursement to the Postal Service, and the 

25 estimated percentage of attributable Postal Service 


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1 costs that will be covered by reimbursement (with 

2 documentation to support the estimates). 

3 ‘‘(c) PUBLIC COMMENT.—Before offering a service 

4 under the program, the Postal Service shall provide for 

5 a public comment period of at least 30 days that allows 

6 the public to post comments relating to the provision of 

7 such services on the Postal Service website. The Postal 

8 Service shall make reasonable efforts to provide written 

9 responses to the comments on such website at least 30 

10 days before offering such services. 

11 ‘‘(d) APPROVAL REQUIRED.—The Postal Service may 

12 not establish the program under subsection (a) unless the 

13 Governors of the Postal Service approve such program by 

14 a recorded vote that is publicly disclosed on the Postal 

15 Service website with a majority of the total Governors vot16 ing for approval. 

17 ‘‘(e) APPLICATION OF REPORTING REQUIRE18 MENTS.—For purposes of the reporting requirements 

19 under section 3705, the Postal Service shall submit a sep20 arate report for each agreement with an agency entered 

21 into under subsection (a) analyzing the costs, revenues, 

22 rates, and quality of service for the provision of all services 

23 under such agreement, including information dem24 onstrating that the agreement satisfies the requirements 

25 of paragraphs (1) through (3) of subsection (a). 


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1 ‘‘(f) REGULATIONS REQUIRED.—The Postal Regu2 latory Commission shall issue such regulations as are nec3 essary to carry out this section. 

4 ‘‘(g) DEFINITIONS.—For the purpose of this sec5 tion— 

6 ‘‘(1) the term ‘local government’ means a coun7 ty, municipality, city, town, township, local public 

8 authority, school district, special district, intrastate 

9 district, council of governments, or regional or inter10 state government entity; 

11 ‘‘(2) the term ‘State government’ includes the 

12 government of the District of Columbia, the Com13 monwealth of Puerto Rico, the United States Virgin 

14 Islands, Guam, American Samoa, the Common15 wealth of the Northern Mariana Islands, and any 

16 other territory or possession of the United States; 

17 ‘‘(3) the term ‘tribal government’ means the 

18 government of an Indian tribe, as that term is de19 fined in section 4(e) of the Indian Self-Determina20 tion Act (25 U.S.C. 450b(e)); and 

21 ‘‘(4) the term ‘United States’, when used in a 

22 geographical sense, means the States, the District of 

23 Columbia, the Commonwealth of Puerto Rico, the 

24 United States Virgin Islands, Guam, American 

25 Samoa, the Commonwealth of the Northern Mariana 


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1 Islands, and any other territory or possession of the 

2 United States. 

3 ‘‘(h) CONFIDENTIAL INFORMATION.—Subsection (b) 

4 or (c) shall not be construed as requiring the Postal Serv5 ice to disclose to the public any information— 

6 ‘‘(1) described in section 410(c); or 

7 ‘‘(2) exempt from public disclosure under sec8 tion 552(b) of title 5. 

9 ‘‘§ 3704. Postal Service program for other Govern10 ment agencies 

11 ‘‘(a) IN GENERAL.—The Postal Service may establish 

12 a program to provide property and services to other Gov13 ernment agencies within the meaning of section 411, but 

14 only if such program provides a reasonable contribution 

15 to the institutional costs of the Postal Service, defined as 

16 reimbursement by each agency that covers at least 100 

17 percent of the attributable costs of all property and service 

18 provided by the Postal Service in each year to such agency. 

19 ‘‘(b) APPLICATION OF REPORTING REQUIRE20 MENTS.—For purposes of the reporting requirements 

21 under section 3705, the Postal Service shall submit a sep22 arate report for each agreement with an agency entered 

23 into under subsection (a) analyzing the costs, revenues, 

24 rates, and quality of service for the provision of all services 

25 under such agreement, including information demVerDate Sep 11 2014 00:22 May 12, 2021 Jkt 019200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\H3076.IH H3076

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1 onstrating that the agreement satisfies the requirements 

2 of subsection (a). 

3 ‘‘§ 3705. Transparency and accountability for non4 postal services 

5 ‘‘(a) ANNUAL REPORT TO THE COMMISSION.— 

6 ‘‘(1) IN GENERAL.—Not later than 90 days 

7 after the last day of each year, the Postal Service 

8 shall submit to the Postal Regulatory Commission a 

9 report that analyzes costs, revenues, rates, and qual10 ity of service for each agreement for the provision of 

11 property and services under this chapter, using such 

12 methodologies as the Commission may prescribe, and 

13 in sufficient detail to demonstrate compliance with 

14 the requirements of this chapter. 

15 ‘‘(2) SUPPORTING MATTER.—A report sub16 mitted under paragraph (1) shall include any non17 public annex, the working papers, and any other 

18 supporting matter of the Postal Service and the In19 spector General related to the information submitted 

20 in such report. 

21 ‘‘(b) CONTENT AND FORM OF REPORT.— 

22 ‘‘(1) IN GENERAL.—The Postal Regulatory 

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1 section (a). In prescribing such regulations, the 

2 Commission shall give due consideration to— 

3 ‘‘(A) providing the public with timely, ade4 quate information to assess compliance; 

5 ‘‘(B) avoiding unnecessary or unwarranted 

6 administrative effort and expense on the part of 

7 the Postal Service; and 

8 ‘‘(C) protecting the confidentiality of infor9 mation that is commercially sensitive or is ex10 empt from public disclosure under section 

11 552(b) of title 5. 

12 ‘‘(2) REVISED REQUIREMENTS.—The Commis13 sion may, on its own motion or on request of any 

14 interested party, initiate proceedings to improve the 

15 quality, accuracy, or completeness of Postal Service 

16 data required by the Commission if— 

17 ‘‘(A) the attribution of costs or revenues to 

18 property or services under this chapter has be19 come significantly inaccurate or can be signifi20 cantly improved; 

21 ‘‘(B) the quality of service data provided to 

22 the Commission for a report under this chapter 

23 has become significantly inaccurate or can be 

24 significantly improved; or 


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1 ‘‘(C) such revisions are, in the judgment of 

2 the Commission, otherwise necessitated by the 

3 public interest. 

4 ‘‘(c) AUDITS.—The Inspector General shall regularly 

5 audit the data collection systems and procedures used in 

6 collecting information and preparing the report required 

7 under subsection (a). The results of any such audit shall 

8 be submitted to the Postal Service and the Postal Regu9 latory Commission. 

10 ‘‘(d) CONFIDENTIAL INFORMATION.— 

11 ‘‘(1) IN GENERAL.—If the Postal Service deter12 mines that any document or portion of a document, 

13 or other matter, which it provides to the Postal Reg14 ulatory Commission in a nonpublic annex under this 

15 section contains information described in section 

16 410(c), or exempt from public disclosure under sec17 tion 552(b) of title 5, the Postal Service shall, at the 

18 time of providing such matter to the Commission, 

19 notify the Commission of its determination, in writ20 ing, and describe with particularity the documents 

21 (or portions of documents) or other matter for which 

22 confidentiality is sought and the reasons therefor. 

23 ‘‘(2) TREATMENT.—Any information or other 

24 matter described in paragraph (1) to which the 

25 Commission gains access under this section shall be 


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1 subject to paragraphs (2) and (3) of section 504(g) 

2 in the same way as if the Commission had received 

3 notification with respect to such matter under sec4 tion 504(g)(1). 

5 ‘‘(e) ANNUAL COMPLIANCE DETERMINATION.— 

6 ‘‘(1) OPPORTUNITY FOR PUBLIC COMMENT.— 

7 Upon receiving a report required under subsection 

8 (a), the Postal Regulatory Commission shall prompt9 ly— 

10 ‘‘(A) provide an opportunity for comment 

11 on such report by any interested party; and 

12 ‘‘(B) appoint an officer of the Commission 

13 to represent the interests of the general public. 

14 ‘‘(2) DETERMINATION OF COMPLIANCE OR NON15 COMPLIANCE.—Not later than 90 days after receiv16 ing a report required under subsection (a), the Post17 al Regulatory Commission shall make a written de18 termination as to whether the nonpostal activities 

19 carried out during the applicable year were or were 

20 not in compliance with the provisions of this chapter. 

21 For purposes of this paragraph, any case in which 

22 the requirements for coverage of attributable costs 

23 have not been met shall be considered to be a case 

24 of noncompliance. If, with respect to a year, no in25 stance of noncompliance is found to have occurred, 


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1 the determination shall be to that effect. Such deter2 mination of noncompliance shall be included with the 

3 annual compliance determination required under sec4 tion 3653. 

5 ‘‘(3) NONCOMPLIANCE.—If a timely written de6 termination of noncompliance is made under para7 graph (2), the Postal Regulatory Commission shall 

8 take appropriate action. If the requirements for cov9 erage of attributable costs specified by this chapter 

10 are not met, the Commission shall, within 60 days 

11 after the determination, prescribe remedial action to 

12 restore compliance as soon as practicable, including 

13 the full restoration of revenue shortfalls during the 

14 following year. The Commission may order the Post15 al Service to discontinue a nonpostal service under 

16 section 3703 that persistently fails to meet cost cov17 erage requirements. 

18 ‘‘(4) DELIBERATE NONCOMPLIANCE.—In the 

19 case of deliberate noncompliance by the Postal Serv20 ice with the requirements of this chapter, the Postal 

21 Regulatory Commission may order, based on the na22 ture, circumstances, extent, and seriousness of the 

23 noncompliance, a fine (in the amount specified by 

24 the Commission in its order) for each incidence of 

25 such noncompliance. All receipts from fines imposed 


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1 under this subsection shall be deposited in the gen2 eral fund of the Treasury. 

3 ‘‘(f) REGULATIONS REQUIRED.—The Postal Regu4 latory Commission shall issue such regulations as are nec5 essary to carry out this section.’’. 

6 (2) CLERICAL AMENDMENT.—The table of 

7 chapters for part IV of title 39, United States Code, 

8 is amended by adding after the item relating to 

9 chapter 36 the following: 

‘‘37. Nonpostal services ................................................................... 3701’’. 

10 (b) CONFORMING AMENDMENTS.— 

11 (1) SECTION 404.—Section 404(e) of title 39, 

12 United States Code, is amended— 

13 (A) in paragraph (2), by inserting after 

14 ‘‘subsection’’ the following: ‘‘, or any nonpostal 

15 products or services authorized by chapter 37’’; 

16 and 

17 (B) by adding at the end the following: 

18 ‘‘(6) Licensing which, before the date of enactment 

19 of this paragraph, has been authorized by the Postal Reg20 ulatory Commission for continuation as a nonpostal serv21 ice may not be used for any purpose other than— 

22 ‘‘(A) to continue to provide licensed mailing, 

23 shipping, or stationery supplies offered as of June 

24 23, 2011; or 


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1 ‘‘(B) to license other goods, products, or serv2 ices, the primary purpose of which is to promote and 

3 enhance the image or brand of the Postal Service. 

4 ‘‘(7) Nothing in this section shall be construed to pre5 vent the Postal Service from establishing nonpostal prod6 ucts and services that are expressly authorized by chapter 

7 37.’’. 

8 (2) SECTION 411.—The last sentence of section 

9 411 of title 39, United States Code, is amended by 

10 striking ‘‘including reimbursability’’ and inserting 

11 ‘‘including reimbursability within the limitations of 

12 chapter 37’’. 

13 (3) TREATMENT OF EXISTING NONPOSTAL

14 SERVICES.—All individual nonpostal services, pro15 vided directly or through licensing, that are contin16 ued pursuant to section 404(e) of title 39, United 

17 States Code, shall be considered to be expressly au18 thorized by chapter 37 of such title (as added by 

19 subsection (a)(1)) and shall be subject to the re20 quirements of such chapter. 

21 (4) REPEAL OF CERTAIN LIMITATIONS ON EX22 PERIMENTAL PRODUCTS.—Section 3641 of title 39, 

23 United States Code, is amended— 

24 (A) by striking subsections (b), (d), and 

25 (e); and 


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1 (B) by redesignating— 

2 (i) subsection (c) as subsection (b); 

3 and 

4 (ii) subsections (f), (g), (h), and (i) as 

5 subsections (c), (d), (e), and (f), respec6 tively. 

7 TITLE II—POSTAL SERVICE 

8 OPERATIONAL REFORMS 

9 SEC. 201. PERFORMANCE TARGETS AND TRANSPARENCY. 

10 Subchapter VII of chapter 36 of title 39, United 

11 States Code, is amended by inserting after section 3691 

12 the following: 

13 ‘‘§ 3692. Performance Targets and Transparency 

14 ‘‘(a) PERFORMANCE TARGETS.—Each year, to en15 sure that mail service for postal customers meets the serv16 ice standards for market-dominant products, established 

17 under section 3691, the Postal Service shall— 

18 ‘‘(1) at least 60 days before the beginning of 

19 the fiscal year in which they will apply, establish and 

20 provide to the Postal Regulatory Commission rea21 sonable targets for performance; and 

22 ‘‘(2) provide the previous fiscal years’ perform23 ance targets in its Annual Compliance Report to the 

24 Postal Regulatory Commission for evaluation of 

25 compliance. 


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1 ‘‘(b) PUBLIC PERFORMANCE DASHBOARD.— 

2 ‘‘(1) IN GENERAL.—The Postal Service shall 

3 develop and maintain a publicly available Website 

4 with an interactive web-tool that provides perform5 ance information of market-dominant products that 

6 is updated on a weekly basis. 

7 ‘‘(2) PERFORMANCE INFORMATION.—The per8 formance information provided on the Website shall 

9 include— 

10 ‘‘(A) the type of market-dominant product; 

11 ‘‘(B) geographic area at the nationwide, 

12 Area, and District level; 

13 ‘‘(C) time periods showing performance in14 formation in annual, quarterly, monthly, and 

15 weekly segments; 

16 ‘‘(D) comparisons of performance of mar17 ket-dominant product results for previous time 

18 periods to facilitate identification of perform19 ance trends; and 

20 ‘‘(E) the current performance targets and 

21 previous fiscal year performance targets, estab22 lished under subsection (a)(1). 

23 ‘‘(3) COMPREHENSIBILITY.—The Website shall 

24 include plain language descriptions of the elements 

25 required under paragraph (2) and information on 


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1 the collection process, measurement methodology, 

2 completeness, accuracy, and validity of the perform3 ance information provided on the Website. 

4 ‘‘(4) ADDRESS SEARCH FUNCTIONALITY.—The 

5 Website shall include functionality to enable a user 

6 to search for performance information by street ad7 dress, ZIP Code, or post office box. 

8 ‘‘(5) FORMAT.—The performance information 

9 provided on the Website shall be made available— 

10 ‘‘(A) in a manner that— 

11 ‘‘(i) presents the information ref12 erenced under paragraph (2) on an inter13 active dashboard; 

14 ‘‘(ii) is searchable and may be sorted 

15 and filtered by the elements described in 

16 paragraph (2); and 

17 ‘‘(iii) to the extent practicable, enables 

18 any person or entity to download in bulk— 

19 ‘‘(I) such performance informa20 tion; and 

21 ‘‘(II) the results of a search by 

22 the elements described in paragraph 

23 (2); 


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1 ‘‘(B) in an open format that permits any 

2 individual or entity to reuse and analyze the 

3 performance information; and 

4 ‘‘(C) in a structured data format, to the 

5 extent practicable. 

6 ‘‘(6) CONSULTATION.—The Postal Service shall 

7 regularly consult with the Postal Regulatory Com8 mission on appropriate features and information to 

9 be included on the Website. 

10 ‘‘(7) PUBLIC INPUT.—The Postal Service 

11 shall— 

12 ‘‘(A) solicit public input on the design and 

13 implementation of the Website; and 

14 ‘‘(B) maintain a public feedback tool, to 

15 ensure features of, and information on, the 

16 Website is usable and understandable. 

17 ‘‘(8) DEADLINE.—The Website shall be imple18 mented and made available to the public not later 

19 than the date on which the performance targets are 

20 provided to the Postal Regulatory Commission under 

21 subsection (a)(1). 

22 ‘‘(9) AVAILABILITY.—A link and plain language 

23 description of the Website shall be made available on 

24 the website where the performance targets and 


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1 measurements established under subsection (a)(1) 

2 are made available. 

3 ‘‘(10) REPORTING.—The dashboard referred to 

4 in paragraph (5)(A)(i) shall be referenced in the An5 nual Performance Plan under section 2803, the An6 nual Performance Report under section 2804, and 

7 the Annual Report under section 2402. 

8 ‘‘(11) DEFINITIONS.—In this subsection— 

9 ‘‘(A) PERFORMANCE INFORMATION.—The 

10 term ‘performance information’ means the ob11 jective external performance measurements es12 tablished under section 3691(b)(1)(D). 

13 ‘‘(B) WEBSITE.—The term ‘Website’ 

14 means the website described in paragraph (1).’’. 

15 SEC. 202. INTEGRATED DELIVERY NETWORK. 

16 Section 101(b) of title 39, United States Code, is 

17 amended by inserting before ‘‘The Postal Service’’ the fol18 lowing: ‘‘The Postal Service shall maintain an integrated 

19 network for the delivery of market-dominant and competi20 tive products (as defined in chapter 36 of this title). Deliv21 ery shall occur, to the maximum extent practicable, at 

22 least six days a week, except during weeks that include 

23 a Federal holiday.’’. 


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1 SEC. 203. REVIEW OF POSTAL SERVICE COST ATTRIBUTION 

2 GUIDELINES. 

3 Not later than the date that is one year after the 

4 date of the enactment of this Act, the Postal Regulatory 

5 Commission shall initiate a review of the regulations 

6 issued pursuant to sections 3633(a) and 3652(a)(1) of 

7 title 39, United States Code, to determine whether revi8 sions are appropriate to ensure that all direct and indirect 

9 costs attributable to competitive and market-dominant 

10 products are properly attributed to those products, includ11 ing by considering the underlying methodologies in deter12 mining cost attribution and considering options to revise 

13 such methodologies. If the Commission determines, after 

14 notice and opportunity for public comment, that revisions 

15 are appropriate, the Commission shall make modifications 

16 or adopt alternative methodologies as necessary. 

17 SEC. 204. RURAL NEWSPAPER SUSTAINABILITY. 

18 Section 3626(h) of title 39, United States Code, is 

19 amended by striking ‘‘10 percent’’ and inserting ‘‘50 per20 cent’’. 

21 SEC. 205. FUNDING OF POSTAL REGULATORY COMMISSION. 

22 (a) IN GENERAL.—Subsection (d) of section 504 of 

23 title 39, United States Code, is amended to read as fol24 lows: 

25 ‘‘(d)(1) Not later than September 1 of each fiscal 

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1 latory Commission shall submit to the Postal Service a 

2 budget of the Commission’s expenses, including expenses 

3 for facilities, supplies, compensation, and employee bene4 fits, for the following fiscal year. Any such budget shall 

5 be deemed approved as submitted if the Governors fail to 

6 adjust the budget in accordance with paragraph (2). 

7 ‘‘(2)(A) Not later than 30 days after receiving a 

8 budget under paragraph (1), the Governors holding office, 

9 by unanimous written decision, may adjust the total 

10 amount of funding requested in such budget. Nothing in 

11 this subparagraph may be construed to authorize the Gov12 ernors to adjust any activity proposed to be funded by the 

13 budget. 

14 ‘‘(B) If the Governors adjust the budget under sub15 paragraph (A), the Postal Regulatory Commission shall 

16 adjust the suballocations within such budget to reflect the 

17 total adjustment made by the Governors. The budget shall 

18 be deemed approved on the date the Commission makes 

19 any such adjustments. The Commission may make further 

20 adjustments to the suballocations within such budget as 

21 necessary. 

22 ‘‘(3) Expenses incurred under any budget approved 

23 under this subsection shall be paid out of the Postal Serv24 ice Fund established under section 2003.’’. 


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1 (b) CONFORMING AMENDMENTS.—Title 39, United 

2 States Code, is amended— 

3 (1) in section 2003(e), by striking ‘‘(B) all ex4 penses of the Postal Regulatory Commission, subject 

5 to the availability of amounts appropriated under 

6 section 504(d);’’ and inserting ‘‘(B) all expenses of 

7 the Postal Regulatory Commission, pursuant to sec8 tion 504(d);’’; and 

9 (2) in section 2009— 

10 (A) by striking ‘‘, (2)’’ and inserting ‘‘, 

11 and (2)’’; and 

12 (B) by striking ‘‘, and (3) the Postal Regu13 latory Commission requests to be appropriated, 

14 out of the Postal Service Fund, under section 

15 504(d) of this title’’. 

16 SEC. 206. FLATS OPERATIONS STUDY AND REFORM. 

17 (a) FLATS OPERATIONS STUDY.— 

18 (1) IN GENERAL.—The Postal Regulatory Com19 mission, in consultation with the Inspector General 

20 of the United States Postal Service, shall conduct a 

21 study to— 

22 (A) comprehensively identify the causes of 

23 inefficiencies in the collection, sorting, transpor24 tation, and delivery of Flats; and 


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1 (B) quantify the effects of the volume 

2 trends, investments decisions, excess capacity, 

3 and operational inefficiencies of the Postal 

4 Service on the direct and indirect costs of the 

5 Postal Service that are attributable to Flats. 

6 (2) POSTAL SERVICE ASSISTANCE.—For the 

7 purposes of carrying out the study under paragraph 

8 (1), the Postal Service shall, upon request by the 

9 Postal Regulatory Commission, consult with the 

10 Postal Regulatory Commission and provide— 

11 (A) access to Postal Service facilities to 

12 personnel of the Postal Regulatory Commission; 

13 and 

14 (B) information and records necessary to 

15 conduct such study. 

16 (3) REPORT.—Not later than 180 days after 

17 the date of the enactment of this Act, the Postal 

18 Regulatory Commission shall submit to Congress 

19 and the Postmaster General a report on the findings 

20 of the study conducted under paragraph (1). 

21 (4) FLATS DEFINED.—In this subsection, the 

22 term ‘‘Flats’’ means products that meet the physical 

23 standards described in the Domestic Mail Manual 

24 (as in effect on the date of the enactment of this 

25 Act) for Flats mail for any class of mail. 


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1 (b) FLATS OPERATIONS REFORM.— 

2 (1) IN GENERAL.—Not later than six months 

3 after the date on which the Postal Regulatory Com4 mission submits the report described in subsection 

5 (a)(2), the Postal Service shall— 

6 (A) develop and implement a plan to rem7 edy each inefficiency identified in the study con8 ducted under subsection (a)(1) to the extent 

9 practicable; and 

10 (B) if the Postal Service determines that 

11 remedying any such inefficiency is not prac12 ticable, provide to Congress and the Postal Reg13 ulatory Commission an explanation why rem14 edying such inefficiency is not practicable, in15 cluding whether it may become practicable to 

16 remedy such inefficiency at a later time. 

17 (2) IMPLEMENTATION REQUIREMENTS.—Prior 

18 to implementing the plan described in paragraph 

19 (1)— 

20 (A) the Postal Regulatory Commission 

21 must approve the plan; and 

22 (B) the Postal Service shall provide an 

23 adequate opportunity for public comment on the 

24 plan. 


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1 (3) COMPLETION NOTICE.—On the date on 

2 which the plan described in paragraph (1) is fully 

3 implemented, as determined by the Postmaster Gen4 eral, the Postmaster General shall submit to Con5 gress and the Postal Regulatory Commission a writ6 ten notice of such implementation. 

7 (c) SUBSEQUENT RATE ADJUSTMENTS.—During the 

8 five-year period beginning on the date on which the Post9 master General submits the notice under subsection 

10 (b)(3), the Postal Service shall consider the findings of 

11 the report described in subsection (a)(2) and the efficacy 

12 of the plan described in subsection (b)(1) in remedying 

13 the inefficiencies identified in the study conducted under 

14 subsection (a)(1) when making any adjustment to the rate 

15 of a market-dominant product (as defined in section 102 

16 of title 39, United States Code). 

17 SEC. 207. REPORTING REQUIREMENTS. 

18 (a) IN GENERAL.—Not later than six months after 

19 the date of the enactment of this Act, and every six 

20 months thereafter, the Postmaster General shall submit 

21 to the President, the Postal Regulatory Commission, the 

22 Committee on Homeland Security and Governmental Af23 fairs of the Senate, and the Committee on Oversight and 

24 Reform of the House of Representatives a report on the 

25 operations and financial condition of the Postal Service 


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1 during the six-month period ending on the date on which 

2 the Postmaster General submits such report. 

3 (b) CONTENTS.—Each report submitted under this 

4 section shall include updates, details of changes from pre5 vious standards and requirements, and assessments of 

6 progress being made on the operations and financial con7 dition of the Postal Service, including— 

8 (1) the actual mail and package volume growth 

9 relative to any mail or package volume growth pro10 jections previously made or relied upon by the Postal 

11 Service, including a discussion of the reasons for the 

12 differences in projections and the associated adjust13 ments being made in order to accommodate any 

14 such differences; 

15 (2) the effect of pricing changes on product vol16 ume for market-dominant and competitive products, 

17 and associated revenue effects on financial projec18 tions, including a discussion of the reasons behind 

19 the differences in projections and associated adjust20 ments being made; 

21 (3) customer use of network distribution cen22 ters and processing and distribution centers, and as23 sociated costs and revenue effects; 

24 (4) the status of, and any substantial pro25 grammatic changes to, the USPS Connect program 


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1 relative to previous plans by the Postal Service, in2 cluding online sales and customer expectations re3 garding shipping speeds and shopping preferences 

4 relative to projections, as well as associated imple5 mentation costs and revenue effects on the financial 

6 projects; 

7 (5) the use of Priority Mail, Priority Mail Ex8 press, First-Class Package Service, and Parcel Se9 lect services (as such terms are defined in the Do10 mestic Mail Classification Schedule as in effect on 

11 the date of the enactment of this Act) among busi12 nesses of various sizes, and associated revenue ef13 fects; 

14 (6) the use of USPS Connect Returns service 

15 among customers, and associated implementation 

16 costs and revenue effects; 

17 (7) the use of USPS E-Commerce Marketplace 

18 among customers, and associated implementation 

19 costs and revenue effects; 

20 (8) updates on the reliability, efficiency, and 

21 cost-effectiveness of the transportation network, in22 cluding the manner in which ground transportation 

23 is utilized over air transportation for types of prod24 ucts; 


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1 (9) a review of efforts to enhance employee 

2 training, safety, and wellbeing, including associated 

3 effects on employee recruitment, satisfaction, and re4 tention; 

5 (10) a review of efforts being made to improve 

6 employee allocation, including changes of non-career 

7 employees to career status, and any associated im8 pacts to operational expenses and processing, trans9 portation, and delivery efficiency; 

10 (11) the rate of planned investment into Postal 

11 Service processing, transportation, and delivery 

12 equipment and infrastructure for market-dominant 

13 and competitive products, and a review of any asso14 ciated effects on operational expenses and efficiency; 

15 (12) changes to network distribution centers 

16 and the expansion of regional distribution centers, 

17 including costs associated with the changes and any 

18 realized reduction in operational expenses or im19 proved resource efficiencies; 

20 (13) a review of the ability of the Postal Service 

21 to meet performance targets established under sec22 tion 3692(a)(1)(A) of title 39, United States Code; 

23 (14) a discussion of the progress of the Postal 

24 Service in achieving any new, self-funded invest25 ments, including the amounts realized and expended 


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1 to date, and a discussion of the reasons behind any 

2 disparities in the assumptions regarding the ex3 pected progress of the Postal Service getting new, 

4 self-funded investments to accommodate changes; 

5 and 

6 (15) any other information the Postal Service 

7 determines relevant, such as barriers or unantici8 pated events, in order to help the Postal Regulatory 

9 Commission, Congress, the President, and the Amer10 ican public evaluate the success or difficulties faced 

11 by the Postal Service in implementing the reform 

12 plan. 

13 (c) CONFIDENTIAL INFORMATION.— 

14 (1) IN GENERAL.—The report required under 

15 this subsection shall be submitted in a form that ex16 cludes any proprietary or confidential information 

17 and trade secrets. 

18 (2) NOTIFICATION.—If the Postal Service de19 termines that any information must be excluded 

20 under paragraph (1), the Postal Service shall, at the 

21 time of submitting the report, notify the President, 

22 the Committee on Oversight and Reform of the 

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1 ing of its determination and describe in detail the in2 formation for which confidentiality is sought and the 

3 reasons therefor. 

4 (3) ANNEXES.—The Postal Service shall submit 

5 to the persons and entities notified under paragraph 

6 (2) any information excluded under paragraph (1) in 

7 an annex that shall be treated as confidential in ac8 cordance with paragraph (4). 

9 (4) TREATMENT.—No person may, with respect 

10 to any information which such person receives under 

11 paragraph (4)— 

12 (A) use such information for purposes 

13 other than the purposes for which it is supplied; 

14 or 

15 (B) permit any person or entity other than 

16 a person or entity notified under paragraph (2), 

17 or the staff thereof, to have access to any such 

18 information. 

19 (d) TERMINATION.—This subsection shall terminate 

20 on the date that is five years after the date on which the 

21 first report required by this section is submitted. 

22 SEC. 208. POSTAL SERVICE TRANSPORTATION SELECTION 

23 POLICY REVISIONS. 

24 Section 101(f) of title 39, United States Code, is 

25 amended— 


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1 (1) by striking ‘‘prompt and economical’’ and 

2 inserting ‘‘prompt, economical, consistent, and reli3 able’’; 

4 (2) by inserting after ‘‘all mail’’ the following: 

5 ‘‘in a manner that increases operational efficiency 

6 and reduces complexity’’; 

7 (3) by inserting ‘‘cost-effective’’ after ‘‘to 

8 achieve’’; and 

9 (4) by inserting ‘‘also’’ after ‘‘Nation shall’’. 

10 SEC. 209. USPS INSPECTOR GENERAL OVERSIGHT OF POST11 AL REGULATORY COMMISSION. 

12 (a) IN GENERAL.—Section 8G of the Inspector Gen13 eral Act of 1978 (5 U.S.C. App.) is amended— 

14 (1) in subsection (a)(2), by striking ‘‘the Postal 

15 Regulatory Commission,’’; and 

16 (2) in subsection (f)(2)— 

17 (A) by striking ‘‘(2) In carrying’’ and in18 serting ‘‘(2)(A) In carrying’’; and 

19 (B) by adding at the end the following: 

20 ‘‘(B) In carrying out the duties and responsibil21 ities specified in this Act, the Inspector General of 

22 the United States Postal Service shall function as 

23 the Inspector General for the Postal Regulatory 

24 Commission, and shall have oversight authority over 

25 the Commission as if the Commission were part of 


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1 the United States Postal Service. The Commission 

2 shall comply with the Inspector General’s oversight 

3 as if the Commission were a designated Federal en4 tity under paragraph (a)(2) of this section.’’. 

5 (b) SAVINGS PROVISION.— 

6 (1) LEGAL DOCUMENTS.—Any order, deter7 mination, rule, regulation, permit, grant, loan, con8 tract, agreement, certificate, license, or privilege that 

9 has been issued, made, granted, or allowed to be10 come effective that is in effect on the effective date 

11 of this section shall continue in effect according to 

12 their terms until modified, terminated, superseded, 

13 set aside, or revoked in accordance with law. 

14 (2) PROCEEDINGS.—This section and the 

15 amendments made by this section shall not affect 

16 any proceeding pending on the effective date of this 

17 section before an office transferred by either such 

18 subsection, but such proceeding shall be continued. 

19 Nothing in this paragraph shall be considered to 

20 prohibit the discontinuance or modification of any 

21 such proceeding under the same terms and condi22 tions and to the same extent that such proceeding 

23 could have been discontinued or modified if this sec24 tion or such amendments had not been enacted. 


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1 (3) SUITS.—This section and the amendments 

2 made by this section shall not affect any suit com3 menced before the effective date of this section, and 

4 in any such suit, proceeding shall be had, appeals 

5 taken, and judgments rendered in the same manner 

6 and with the same effect as if this section or such 

7 amendments had not been enacted. 

8 (4) REFERENCES.—Any reference in any other 

9 Federal law, Executive order, rule, regulation, or 

10 delegation of authority, or any document relating to 

11 the Inspector General of the Postal Regulatory Com12 mission shall be deemed to refer to the Inspector 

13 General of the United States Postal Service. 

14 (c) TECHNICAL AND CONFORMING AMENDMENT.— 

15 Section 504 of title 39, United States Code, is amended 

16 by striking subsection (h). 

17 (d) EFFECTIVE DATE.—This section and the amend18 ments made by this section shall take effect on the date 

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

Æ 


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