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[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3076 Placed on Calendar Senate (PCS)]

<DOC>

                                                       Calendar No. 266
117th CONGRESS
  2d Session
                                H. R. 3076

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

             February 8 (legislative day, February 3), 2022

                     Received; read the first time

                            February 9, 2022

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 AN ACT

 
 To provide stability to and enhance the services of the United States 
                Postal Service, and for other purposes.

    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.

    (a) Short Title.--This Act may be cited as the ``Postal Service 
Reform Act of 2022''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
               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.
                        TITLE III--SEVERABILITY

Sec. 301. Severability.

SEC. 2. DEFINITIONS.

    (a) Commission.--In this Act, the term ``Commission'' means the 
Postal Regulatory Commission.
    (b) Terms Defined in Title 39, United States Code.--In this Act, 
the terms ``competitive product'', ``market-dominant product'', and 
``Postal Service'' have the meanings given those terms in section 102 
of title 39, United States Code.

               TITLE I--POSTAL SERVICE FINANCIAL REFORMS

SEC. 101. POSTAL SERVICE HEALTH BENEFITS PROGRAM.

    (a) Establishment.--
            (1) In general.--Chapter 89 of title 5, United States Code, 
        is amended by inserting after section 8903b the following:
``Sec. 8903c. Postal Service Health Benefits Program
    ``(a) Definitions.--In this section--
            ``(1) the term `covered Medicare individual' means an 
        individual who is entitled to benefits under Medicare part A, 
        but excluding an individual who is eligible to enroll under 
        such part under section 1818 or 1818A of the Social Security 
        Act (42 U.S.C. 1395i-2, 1395i-2a);
            ``(2) the term `initial contract year' means the contract 
        year beginning in January of 2025;
            ``(3) the term `initial participating carrier' means a 
        carrier that enters into a contract with the Office to 
        participate in the Program during the initial contract year;
            ``(4) the term `Medicare part A' means part A of title 
        XVIII of the Social Security Act (42 U.S.C. 1395c et seq.);
            ``(5) the term `Medicare part B' means part B of title 
        XVIII of the Social Security Act (42 U.S.C. 1395j et seq.);
            ``(6) the term `Office' means the Office of Personnel 
        Management;
            ``(7) the term `Postal Service' means the United States 
        Postal Service;
            ``(8) the term `Postal Service annuitant' means an 
        annuitant enrolled in a health benefits plan under this chapter 
        whose Government contribution is required to be paid under 
        section 8906(g)(2);
            ``(9) the term `Postal Service employee' means an employee 
        of the Postal Service enrolled in a health benefits plan under 
        this chapter whose Government contribution is paid by the 
        Postal Service;
            ``(10) the term `Postal Service Medicare covered annuitant' 
        means an individual who--
                    ``(A) is a Postal Service annuitant; and
                    ``(B) is a covered Medicare individual;
            ``(11) the term `Program' means the Postal Service Health 
        Benefits Program established under subsection (c) within the 
        Federal Employees Health Benefits Program;
            ``(12) the term `Program plan' means a health benefits plan 
        offered under the Program; and
            ``(13) the definitions set forth in section 8901 shall 
        apply, and for the purposes of applying such definitions in 
        carrying out this section, a Postal Service employee and Postal 
        Service annuitant shall be treated in the same manner as an 
        employee and an annuitant (as those terms are defined in 
        paragraphs (1) and (3), respectively, of section 8901), 
        consistent with the requirements of this section.
    ``(b) Application.--The requirements under this section shall--
            ``(1) apply to the initial contract year and each contract 
        year thereafter; and
            ``(2) supersede any other provision of this chapter 
        inconsistent with such requirements, as determined by the 
        Office.
    ``(c) Establishment of the Postal Service Health Benefits 
Program.--
            ``(1) In general.--
                    ``(A) Establishment.--The Office shall establish 
                the Postal Service Health Benefits Program within the 
                Federal Employees Health Benefits Program under this 
                chapter, under which the Office may contract with 
                carriers to offer health benefits plans as described 
                under this section.
                    ``(B) Applicability of chapter requirements to 
                contracts.--Except as otherwise provided in this 
                section, any contract described in subparagraph (A) 
                shall be consistent with the requirements of this 
                chapter for contracts under section 8902 with carriers 
                to offer health benefits plans other than under this 
                section.
                    ``(C) Program plans and participation.--The Program 
                shall--
                            ``(i) to the greatest extent practicable--
                                    ``(I) with respect to each plan 
                                provided by a carrier under this 
                                subchapter in which the total 
                                enrollment includes, in the contract 
                                year beginning in January 2023, 1,500 
                                or more enrollees who are Postal 
                                Service employees or Postal Service 
                                annuitants, include a plan offered by 
                                that carrier with equivalent benefits 
                                and cost-sharing requirements as 
                                provided under paragraph (2), except 
                                that the Director of the Office may 
                                exempt any comprehensive medical plan 
                                from this requirement; and
                                    ``(II) include plans offered by any 
                                other carrier determined appropriate by 
                                the Office;
                            ``(ii) provide for enrollment in Program 
                        plans of Postal Service employees and Postal 
                        Service annuitants, in accordance with 
                        subsection (d);
                            ``(iii) provide for enrollment in a Program 
                        plan as an individual, for self plus one, or 
                        for self and family; and
                            ``(iv) not provide for enrollment in a 
                        Program plan of an individual who is not a 
                        Postal Service employee or Postal Service 
                        annuitant (except as a member of family of such 
                        an employee or annuitant or as provided under 
                        paragraph (4)).
            ``(2) Coverage with equivalent benefits and cost-sharing.--
        In the initial contract year, the Office shall ensure that each 
        carrier participating in the Program provides under the Program 
        plans offered by the carrier benefits and cost-sharing 
        requirements that are equivalent to the benefits and cost-
        sharing requirements under the health benefits plans offered by 
        the carrier under this chapter that are not Program plans, 
        except that prescription drug benefits and cost-sharing 
        requirements may differ between the Program plans and other 
        health benefits plans offered by the carrier under this chapter 
        to the extent needed to integrate the Medicare part D 
        prescription drug benefits coverage required under subsection 
        (h)(2).
            ``(3) Applicability of federal employees health benefits 
        program requirements.--Except as otherwise set forth in this 
        section, the provisions of this chapter applicable to health 
        benefits plans offered by carriers under section 8903 or 8903a 
        shall apply to plans offered under the Program.
            ``(4) Application of continuation coverage.--In accordance 
        with rules established by the Office, section 8905a shall apply 
        to health benefits plans offered under this section in the same 
        manner as such section applies to other health benefits plans 
        offered under this chapter.
    ``(d) Election of Coverage.--Each Postal Service employee and 
Postal Service annuitant who elects to receive health benefits coverage 
under this chapter--
            ``(1) shall be subject to the requirements of this section; 
        and
            ``(2) may not enroll in any other health benefits plan 
        offered under any other section of this chapter.
    ``(e) Requirement of Medicare Enrollment for Certain Annuitants and 
Their Family Members.--
            ``(1) Medicare covered annuitants.--Except as provided 
        under paragraph (3), a Postal Service Medicare covered 
        annuitant may not enroll in a Program plan unless the annuitant 
        is entitled to benefits under Medicare part A and enrolled in 
        Medicare part B.
            ``(2) Medicare covered family members.--Except as provided 
        under paragraph (3), in the case of a Postal Service annuitant 
        who is entitled to benefits under Medicare part A and required 
        under this subsection to enroll in Medicare part B to enroll 
        under the Program, if a member of family of such Postal Service 
        annuitant is a covered Medicare individual, that member of 
        family may not enroll under the Program as a member of family 
        of the Postal Service annuitant unless that member of family is 
        entitled to benefits under Medicare part A and enrolled in 
        Medicare part B.
            ``(3) Exceptions.--
                    ``(A) In general.--The requirements under 
                paragraphs (1) and (2), as applicable, shall not apply 
                with respect to an individual in the following cases:
                            ``(i) Current postal service annuitants.--
                        The individual, as of January 1, 2025, is a 
                        Postal Service annuitant who is not both 
                        entitled to benefits under Medicare part A and 
                        enrolled in Medicare part B.
                            ``(ii) Current employees aged 64 and 
                        over.--The individual, as of January 1, 2025, 
                        is a Postal Service employee and is at least 64 
                        years of age.
                            ``(iii) Postal service medicare covered 
                        annuitants and family members residing 
                        abroad.--For any contract year with respect to 
                        which the individual is a Postal Service 
                        Medicare covered annuitant or a member of 
                        family of a Postal Service Medicare covered 
                        annuitant and resides outside the United States 
                        (which includes the States, the District of 
                        Columbia, the Commonwealth of Puerto Rico, the 
                        Virgin Islands, Guam, American Samoa, and the 
                        Northern Mariana Islands), provided that the 
                        individual demonstrates such residency to the 
                        Postal Service in accordance with regulations 
                        issued by the Postal Service.
                            ``(iv) Postal service medicare covered 
                        annuitants and family members enrolled under va 
                        coverage.--The individual--
                                    ``(I) is a Postal Service Medicare 
                                covered annuitant or a member of family 
                                of a Postal Service Medicare covered 
                                annuitant; and
                                    ``(II) is enrolled in health care 
                                benefits provided by the Department of 
                                Veterans Affairs under subchapter II of 
                                chapter 17 of title 38, United States 
                                Code.
                            ``(v) Postal service medicare covered 
                        annuitants and family members eligible for ihs 
                        health services.--The individual--
                                    ``(I) is a Postal Service Medicare 
                                covered annuitant or a member of family 
                                of a Postal Service Medicare covered 
                                annuitant; and
                                    ``(II) is eligible for health 
                                services from the Indian Health 
                                Service.
                    ``(B) Regulations for va and ihs exceptions.--Not 
                later than 1 year after the date of enactment of this 
                section, the Office shall, in consultation with the 
                Secretary of Veterans Affairs, the Secretary of Health 
                and Human Services, and the Postmaster General, 
                promulgate any regulations necessary to implement 
                clauses (iv) and (v) of subparagraph (A).
                    ``(C) List of individuals residing abroad.--The 
                Postal Service shall provide a list of individuals who 
                satisfy the exception under subparagraph (A)(iii) to 
                the Office.
            ``(4) Process for information collection and 
        dissemination.--The Postal Service and the Office, in 
        consultation with the Social Security Administration and the 
        Centers for Medicare & Medicaid Services, shall establish a 
        process that will enable the Postal Service to timely inform 
        Postal Service employees, Postal Service annuitants, and 
        members of family of such employees and annuitants of the 
        requirements described in paragraphs (1) and (2) in order to be 
        eligible to enroll in Program plans under this section.
    ``(f) Transitional Open Season.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `current option', with respect to an 
                individual, means the option under a plan under this 
                chapter in which the individual is enrolled during the 
                contract year preceding the initial contract year; and
                    ``(B) the term `current plan', with respect to an 
                individual, means the plan under this chapter in which 
                the individual is enrolled during the contract year 
                preceding the initial contract year.
            ``(2) Automatic enrollment.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), in the case of an individual who is a Postal 
                Service employee or Postal Service annuitant eligible 
                to enroll in a Program plan under subsection (d), who 
                is enrolled in a current plan, and who does not enroll 
                in a Program plan during the open season that 
                immediately precedes the initial contract year, the 
                Office shall automatically enroll the individual, as of 
                the start of the initial contract year, in a Program 
                plan offered by the carrier of the individual's current 
                plan.
                    ``(B) Carriers offering multiple program plans or 
                options.--If the carrier of the current plan of an 
                individual described in subparagraph (A) offers more 
                than 1 Program plan or option, the Office, in carrying 
                out subparagraph (A), shall automatically enroll the 
                individual in the plan and option that provide coverage 
                with equivalent benefits and cost sharing, as described 
                in subsection (c)(2), to the individual's current plan 
                and current option.
                    ``(C) Carriers not offering program plans.--If the 
                carrier of the current plan of an individual described 
                in subparagraph (A) does not offer a Program plan, the 
                Office, in carrying out subparagraph (A), shall 
                automatically enroll the individual in the lowest-cost 
                nationwide plan option within the Program that is not a 
                high deductible health plan and does not charge an 
                association or membership fee.
    ``(g) OPM Regulations.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this section, the Director of the Office shall 
        issue regulations to carry out this section.
            ``(2) Consultation.--In issuing regulations under paragraph 
        (1), the Director of the Office shall consult, as necessary, 
        with the Secretary of Health and Human Services, the Secretary 
        of Veterans Affairs, the Commissioner of Social Security, and 
        the Postmaster General.
            ``(3) Contents.--The regulations issued under paragraph (1) 
        shall include--
                    ``(A) any provisions necessary to implement this 
                section;
                    ``(B) a process under which Postal Service 
                annuitants and affected family members are timely 
                informed of the enrollment requirements and may 
                request, in writing, any additional enrollment 
                information;
                    ``(C) provisions under which a Postal Service 
                employee or Postal Service annuitant enrolled under the 
                Program may request a belated change of plan and may be 
                prospectively enrolled in the plan of the employee's or 
                annuitant's choice; and
                    ``(D) provisions for individuals to cancel coverage 
                under the Program in writing to the Postal Service 
                because the individuals choose not to enroll in, or to 
                disenroll from, Medicare part B.
    ``(h) Medicare Coordination.--
            ``(1) In general.--The Office shall require each Program 
        plan to provide benefits for covered Medicare individuals 
        pursuant to a coordination of benefits method approved by the 
        Office.
            ``(2) Medicare part d prescription drug benefits.--The 
        Office shall require each Program plan to provide prescription 
        drug benefits to any Postal Service annuitant and member of 
        family of such annuitant who is a part D eligible individual 
        (as defined in section 1860D-1(a)(3)(A) of the Social Security 
        Act) through employment-based retiree health coverage (as 
        defined in section 1860D-22(c)(1) of such Act) through--
                    ``(A) a prescription drug plan (as defined in 
                section 1860D-41(a)(14) of such Act); or
                    ``(B) contracts between such a Program plan and PDP 
                sponsor, as defined in section 1860D-41(a)(13) of such 
                Act, of such a prescription drug plan.
    ``(i) Postal Service Contribution.--
            ``(1) In general.--Subject to subsection (k), for purposes 
        of applying section 8906(b) to the Postal Service, the weighted 
        average shall be calculated in accordance with paragraphs (2) 
        and (3).
            ``(2) Weighted average calculation.--Not later than October 
        1 of each year (beginning with 2024), the Office shall 
        determine the weighted average of the rates established 
        pursuant to subsection (c)(2) for Program plans that will be in 
        effect during the following contract year with respect to--
                    ``(A) enrollments for self only;
                    ``(B) enrollments for self plus one; and
                    ``(C) enrollments for self and family.
            ``(3) Weighting in computing rates for initial contract 
        year.--In determining such weighted average of the rates for 
        the initial contract year, the Office shall take into account 
        (for purposes of section 8906(a)(2)) the enrollment of Postal 
        Service employees and annuitants in the health benefits plans 
        offered by the initial participating carriers as of March 31, 
        2023.
            ``(4) Payment of late enrollment penalties.--The Postal 
        Service may direct the Office to pay the amounts required by an 
        agreement between the United States Postal Service and the 
        Secretary of the Department of Health and Human Services under 
        section 1839(e)(1) of the Social Security Act (42 U.S.C. 
        1395r(e)(1)) from the Postal Service Retiree Health Benefits 
        Fund established under section 8909a until depleted and 
        thereafter shall pay such amounts from the Postal Service Fund 
        established under section 2003 of title 39.
    ``(j) Reserves.--
            ``(1) Separate reserves.--
                    ``(A) In general.--The Office shall ensure that 
                each Program plan maintains separate reserves 
                (including a separate contingency reserve) with respect 
                to the enrollees in the Program plan in accordance with 
                section 8909.
                    ``(B) Applicability of section 8909 to contingency 
                reserves.--All provisions of section 8909 relating to 
                contingency reserves shall apply to contingency 
                reserves of Program plans in the same manner as to the 
                contingency reserves of other plans under this chapter, 
                except to the extent that such provisions are 
                inconsistent with the requirements of this subsection.
                    ``(C) References.--For purposes of the Program, 
                each reference to `the Government' in section 8909 
                shall be deemed to be a reference to the Postal 
                Service.
                    ``(D) Amounts to be credited.--The reserves 
                (including the separate contingency reserve) maintained 
                by each Program plan shall be credited with a 
                proportionate amount of the funds in the reserves for 
                health benefits plans offered by the carrier.
            ``(2) Discontinuation of program plan.--In applying section 
        8909(e) relating to a Program plan that is discontinued, the 
        Office shall credit the separate Postal Service contingency 
        reserve maintained under paragraph (1) for that plan only to 
        the separate Postal Service contingency reserves of the Program 
        plans continuing under this chapter.
    ``(k) No Effect on Existing Law.--Nothing in this section shall be 
construed as affecting section 1005(f) of title 39 regarding 
variations, additions, or substitutions to the provisions of this 
chapter.
    ``(l) Health Benefits Education Program.--
            ``(1) Definition.--In this subsection, the term `navigator' 
        means an employee of the Postal Service or of a contractor of 
        the Postal Service who is designated by the Postal Service or 
        contractor to carry out activities under paragraph (5).
            ``(2) Establishment.--Not later than 18 months after the 
        date of enactment of this section, the Postal Service shall 
        establish a Health Benefits Education Program.
            ``(3) Requirements.--In carrying out the Health Benefits 
        Education Program established under paragraph (2), the Postal 
        Service shall--
                    ``(A) notify Postal Service annuitants and Postal 
                Service employees about the Postal Service Health 
                Benefits Program established under subsection (c)(1);
                    ``(B) provide information regarding the Postal 
                Service Health Benefits Program and the requirements of 
                this section to Postal Service annuitants and Postal 
                Service employees, including--
                            ``(i) a description of the health care 
                        options available under such Program;
                            ``(ii) the enrollment provisions of 
                        subsection (d); and
                            ``(iii) the requirement that Postal Service 
                        annuitants and their family members be enrolled 
                        in Medicare under subsection (e);
                    ``(C) respond and provide answers to any inquiry 
                from such employees and annuitants about the Postal 
                Service Health Benefits Program, in consultation with 
                the Office as necessary;
                    ``(D) in consultation with the Centers for Medicare 
                & Medicaid Services and the Social Security 
                Administration, provide information to individuals 
                about enrollment under the Medicare program under title 
                XVIII of the Social Security Act, and refer individuals 
                to the Centers for Medicare & Medicaid Services and the 
                Social Security Administration as necessary for 
                additional enrollment information; and
                    ``(E) carry out, or provide for through contract or 
                other arrangement, the activities described in 
                paragraph (5).
            ``(4) Information.--
                    ``(A) Information from opm.--The Office shall 
                timely provide the Postal Service with such information 
                as necessary to conduct the Health Benefits Education 
                Program.
                    ``(B) Coordination with opm.--The Postal Service 
                shall coordinate with the Office, in consultation with 
                the Centers for Medicare & Medicaid Services and the 
                Social Security Administration, to obtain and confirm 
                the accuracy of information as the Postal Service 
                determines to be necessary to conduct the Health 
                Benefits Education Program.
            ``(5) Navigator activities.--
                    ``(A) Activities.--The activities described in this 
                paragraph, with respect to Program plans and the health 
                care options available under the Program, are the 
                following:
                            ``(i) Educational activities for annuitants 
                        and employees of the Postal Service to raise 
                        awareness of the availability of Program plans 
                        and requirements for enrolling in such plans, 
                        including requirements to be entitled to 
                        Medicare part A and enroll in Medicare part B.
                            ``(ii) Distribution of fair and impartial 
                        information concerning enrollment in such 
                        plans.
                            ``(iii) Facilitation of enrollment in such 
                        plans.
                            ``(iv) Provision of information in a manner 
                        that is culturally and linguistically 
                        appropriate to the needs of the population 
                        being served by the Program plans.
                    ``(B) Standards.--
                            ``(i) In general.--The Postal Service shall 
                        establish standards for navigators carrying out 
                        the activities under this paragraph to--
                                    ``(I) engage in the navigator 
                                activities described in subparagraph 
                                (A); and
                                    ``(II) avoid conflicts of interest.
                            ``(ii) Contents.--The standards established 
                        under clause (i) shall provide that a navigator 
                        may not--
                                    ``(I) be a health insurance 
                                carrier; or
                                    ``(II) receive any consideration 
                                directly or indirectly from any health 
                                insurance carrier in connection with 
                                the enrollment of any individual in a 
                                Program plan.
                    ``(C) Fair and impartial information and 
                services.--The Postal Service, in consultation as 
                necessary with the Office and the Centers for Medicare 
                & Medicaid Services, shall develop standards to ensure 
                that information made available by navigators under 
                this paragraph is fair, accurate, and impartial.
            ``(6) Regulations.--
                    ``(A) In general.--Not later than 18 months after 
                the date of enactment of this section, the Postmaster 
                General shall issue regulations to establish the Health 
                Benefits Education Program required under this 
                subsection.
                    ``(B) Contents.--The regulations issued under 
                subparagraph (A) shall include--
                            ``(i) provisions for the notification of 
                        Postal Service annuitants and Postal Service 
                        employees about the Program, including a 
                        description of the available health benefits 
                        options, including a process for notifying 
                        Postal Service employees who become eligible 
                        for Medicare part B and Postal Service Medicare 
                        covered annuitants about their choices;
                            ``(ii) provisions for notifying Postal 
                        Service annuitants, Postal Service employees, 
                        and their family members of the requirements 
                        under subsection (e) to enroll in Medicare as a 
                        condition of eligibility to enroll in the 
                        Program; and
                            ``(iii) a process, developed in 
                        consultation with the Social Security 
                        Administration, the Centers for Medicare & 
                        Medicaid Services, and the Office, for 
                        addressing any inquiry from Postal Service 
                        annuitants and Postal Service employees about 
                        the Program or Medicare enrollment.''.
            (2) Technical and conforming amendments.--
                    (A) Service benefit plans.--Section 8903(1) of 
                title 5, United States Code, is amended by striking 
                ``two levels of benefits'' and inserting ``at least 2 
                levels of benefits for enrollees under this chapter 
                generally and at least 2 levels of benefits for 
                enrollees under the Postal Service Health Benefits 
                Program established under section 8903c''.
                    (B) Table of sections.--The table of sections for 
                chapter 89 of title 5, United States Code, is amended 
                by inserting after the item relating to section 8903b 
                the following:

``8903c. Postal Service Health Benefits Program.''.
                    (C) Application to certain postal service 
                annuitants or family members.--Section 1862(b)(1)(E) of 
                the Social Security Act (42 U.S.C. 1395y(b)(1)(E)) is 
                amended by adding at the end the following:
                            ``(iv) Application to certain postal 
                        service annuitants or family members.--Nothing 
                        in this paragraph shall prohibit a group health 
                        plan from determining an individual's 
                        eligibility to enroll in a health benefits plan 
                        offered under the Postal Service Health 
                        Benefits Program under section 8903c of title 
                        5, United States Code, in accordance with 
                        subsection (e) of such section.''.
    (b) Coordination With Medicare.--
            (1) Part b special enrollment period.--Section 1837 of the 
        Social Security Act (42 U.S.C. 1395p) is amended by adding at 
        the end the following new subsection:
    ``(o)(1) In the case of an individual who--
            ``(A) as of January 1, 2024, is--
                    ``(i) a Postal Service annuitant who is entitled to 
                benefits under part A of title XVIII of the Social 
                Security Act, but excluding an individual who is 
                eligible to enroll under such part under section 1818 
                of such Act or 1818A of such Act (42 U.S.C. 1395i-2, 
                1395i-2a); or
                    ``(ii) a member of family (as defined in section 
                8901(5) of title 5, United States Code) of a Postal 
                Service annuitant and is entitled to benefits under 
                part A of title XVIII of the Social Security Act, but 
                excluding an individual who is eligible to enroll under 
                such part under section 1818 of such Act or 1818A of 
                such Act (42 U.S.C. 1395i-2, 1395i-2a); and
            ``(B) is not enrolled under this part, the individual may 
        elect to be enrolled under this part during a special 
        enrollment period during the 6-month period beginning on April 
        1, 2024.
    ``(2) In this subsection, the term `Postal Service annuitant' means 
an annuitant enrolled in a health benefits plan under chapter 89 of 
title 5, United States Code, whose Government contribution is required 
to be paid under section 8906(g)(2) of such title.''.
            (2) Technical and conforming amendments.--
                    (A) Part a enrollment.--Section 1818(c) of the 
                Social Security Act (42 U.S.C. 1395i-2(c)) is amended, 
                in the matter preceding paragraph (1), by striking 
                ``(except subsection (f) thereof)'' and inserting 
                ``(except subsections (f) and (o) thereof)''.
                    (B) Coverage period under part b.--Section 1838 of 
                the Social Security Act (42 U.S.C. 1395q) is amended by 
                adding at the end the following:
    ``(i) Notwithstanding subsection (a), in the case of an individual 
who enrolls during the special enrollment period pursuant to section 
1837(o), the coverage period shall begin on January 1, 2025.''.
            (3) Treatment of part b late enrollment penalty for 
        individuals enrolling during special enrollment period.--
        Section 1839(e) of the Social Security Act (42 U.S.C. 1395r(e)) 
        is amended--
                    (A) in paragraph (1), by striking ``(as defined in 
                paragraph (3)(A))'' and by inserting ``(as defined in 
                paragraph (3)(A)(i)). The Secretary shall enter into an 
                agreement with the United States Postal Service under 
                which the United States Postal Service agrees to pay on 
                a quarterly or other periodic basis to the Secretary 
                (to be deposited in the Treasury to the credit of the 
                Federal Supplementary Medical Insurance Trust Fund) an 
                amount equal to the amount of the part B late 
                enrollment premium increases with respect to the 
                premiums for eligible individuals (as defined in 
                paragraph (3)(A)(ii)).''; and
                    (B) by amending paragraph (3)(A) to read as 
                follows:
                    ``(A) The term `eligible individual' means an 
                individual who is enrolled under this part B and who--
                            ``(i) in the case of an agreement entered 
                        into under the first sentence of paragraph (1), 
                        is within a class of individuals specified in 
                        such agreement; and
                            ``(ii) in the case of an agreement entered 
                        into under the second sentence of paragraph 
                        (1), is so enrolled under this part pursuant to 
                        the special enrollment period under section 
                        1837(o)''.
            (4) Part d egwp contracting conforming amendment.--Section 
        1860D-22(b) of the Social Security Act (42 U.S.C. 1395w-132(b)) 
        is amended by inserting before the period at the end the 
        following: ``, and shall be applied in a manner to facilitate 
        the offering of prescription drug benefits under a Program plan 
        under section 8903c of title 5, United States Code, as required 
        under subsection (h)(2) of such section, through employment-
        based retiree health coverage through--
            ``(1) a prescription drug plan; or
            ``(2) contracts between such a Program plan and the PDP 
        sponsor of such a prescription drug plan.''.
    (c) Information Sharing and Dissemination Required for Special 
Enrollment Period and Enforcement of Part B Enrollment Requirements.--
            (1) Definitions.--In this subsection, the terms ``Medicare 
        part A'', ``Medicare part B'', ``Office'', ``Postal Service'', 
        and ``Postal Service annuitant'' have the meanings given those 
        terms in section 8903c of title 5, United States Code, as added 
        by subsection (a).
            (2) Information sharing by opm.--The Office shall, by 
        regulation, establish a process for providing such information 
        as is necessary to the Social Security Administration regarding 
        Postal Service annuitants (and the family members of such 
        annuitants) who may be eligible to enroll under Medicare part B 
        during the special enrollment period described in subsection 
        (o) of section 1837 of the Social Security Act (42 U.S.C. 
        1395p), as added by subsection (b), or who may be subject to 
        the enrollment requirements described in paragraphs (1) and (2) 
        of section 8903c(e) of title 5, United States Code, as added by 
        subsection (a).
            (3) Information sharing by ssa.--The Social Security 
        Administration shall provide to the Office and the Postal 
        Service information regarding whether a Postal Service 
        annuitant, or a family member of such an annuitant, is entitled 
        to benefits under Medicare part A and enrolled under Medicare 
        part B, to assist the Office and the Postal Service in 
        determining--
                    (A) which Postal Service annuitants, and family 
                members of such annuitants, may be eligible to enroll 
                under Medicare part B during the special enrollment 
                period described in paragraph (2); and
                    (B) whether Postal Service annuitants, and family 
                members of such annuitants, satisfy the enrollment 
                requirements described in paragraphs (1) and (2) of 
                section 8903c(e) of title 5, United States Code, as 
                added by subsection (a).
    (d) Funding.--
            (1) CMS appropriation.--In addition to amounts otherwise 
        available, there is appropriated to ``the Centers for Medicare 
        & Medicaid Services--Program Management Account'', out of any 
        monies in the Treasury not otherwise appropriated, $7,500,000 
        for fiscal year 2022, to remain available until expended, for 
        purposes of carrying out this section, including the amendments 
        made by this section.
            (2) SSA appropriation.--
                    (A) In general.--In addition to amounts otherwise 
                available, there is appropriated to the Social Security 
                Administration, out of any monies in the Treasury not 
                otherwise appropriated, $16,000,000 for fiscal year 
                2022, to remain available until the date that is 1 year 
                after the last day of the special enrollment period 
                described in subsection (c)(2), for purposes of 
                carrying out this section, with the exception of 
                carrying out subsection (c)(3) for the purposes set 
                forth in subsection (c)(3)(B), including the amendments 
                made by this section.
                    (B) Relation to other appropriation.--The amounts 
                appropriated under subparagraph (A) shall be in 
                addition to the Social Security Administration's 
                Limitation on Administrative Expenditure 
                appropriations.
            (3) OPM appropriation.--In addition to amounts otherwise 
        available, there is appropriated to the Office of Personnel 
        Management, out of any monies in the Treasury not otherwise 
        appropriated, $70,500,000 for fiscal year 2022, to remain 
        available until expended, for purposes of carrying out this 
        section, including the amendments made by this section.
            (4) Funds credited by postal service.--The United States 
        Postal Service shall deposit an amount equal to the sum of the 
        amounts appropriated under paragraphs (1), (2), and (3) into 
        the Treasury as a miscellaneous receipt from the Postal Service 
        Fund in fiscal year 2022.
            (5) Reimbursement for periodic ssa data sharing.--
                    (A) Inter-agency agreement.--The Commissioner of 
                Social Security shall enter into an agreement with the 
                Director of the Office under which the Director pays 
                the Commissioner from the Postal Service administrative 
                reserve the full costs (including systems and 
                administrative costs) of providing the information 
                described in subsection (c)(3) for the purpose set 
                forth in subsection (c)(3)(B).
                    (B) Report to congress.--The Director of the 
                Office--
                            (i) shall report the amount paid under 
                        subparagraph (A) annually to the Committee on 
                        Homeland Security and Governmental Affairs of 
                        the Senate and the Committee on Oversight and 
                        Reform of the House of Representatives; and
                            (ii) may satisfy the requirement under 
                        clause (i) by including the amount paid under 
                        subparagraph (A) in any other annual report 
                        submitted to Congress.

SEC. 102. USPS FAIRNESS ACT.

    (a) Short Title.--This section may be cited as the ``USPS Fairness 
Act''.
    (b) Rational Benefits Funding and Accounting.--
            (1) In general.--Section 8909a of title 5, United States 
        Code, is amended by striking subsection (d) and inserting the 
        following:
    ``(d)(1) Not later than June 30, 2026, and by June 30 of each 
succeeding year, the Office shall compute, for the most recently 
concluded fiscal year, the amount (if any) that Government 
contributions required to be paid from the Fund under section 
8906(g)(2)(A) exceeded the estimated net claims costs under the 
enrollment of the individuals described in section 8906(g)(2)(A).
    ``(2) Not later than September 30 of each year in which the Office 
makes a computation under paragraph (1), the United States Postal 
Service shall pay into the Fund the amount (if any) of the excess 
computed under such paragraph.
    ``(e) Any computation required under section 3654(b) of title 39 
shall be based on--
            ``(1) the net present value of the future net claims costs 
        with respect to--
                    ``(A) current annuitants of the United States 
                Postal Service as of the end of the fiscal year ending 
                on September 30 of the relevant reporting year; and
                    ``(B) current employees of the United States Postal 
                Service who would, as of September 30 of that year--
                            ``(i) be eligible to become annuitants 
                        pursuant to section 8901(3)(A)(i) or (ii); and
                            ``(ii) if they were retired as of that 
                        date, meet the criteria for coverage of 
                        annuitants under section 8905(b);
            ``(2) economic and actuarial methods and assumptions 
        consistent with the methods and assumptions used in determining 
        the Postal surplus or supplemental liability under section 
        8348(h); and
            ``(3) any other methods and assumptions, including a health 
        care cost trend rate, that the Director of the Office 
        determines to be appropriate.
    ``(f) After consultation with the United States Postal Service, the 
Office shall promulgate any regulations the Office determines necessary 
under this subsection.
    ``(g) For purposes of this section, the term `estimated net claims 
costs' shall mean the difference between--
            ``(1) the sum of--
                    ``(A) the estimated costs incurred by a carrier in 
                providing health services to, paying for health 
                services provided to, or reimbursing expenses for 
                health services provided to, annuitants of the United 
                States Postal Service and any other persons covered 
                under the enrollment of such annuitants; and
                    ``(B) an amount of indirect expenses reasonably 
                allocable to the provision, payment, or reimbursement 
                described in subparagraph (A), as determined by the 
                Office; and
            ``(2) the amount withheld from the annuity of or paid by 
        annuitants of the United States Postal Service under section 
        8906.''.
            (2) Clerical amendment.--The heading of section 8909a of 
        title 5, United States Code, is amended by striking ``Benefit'' 
        and inserting ``Benefits''.
    (c) Application.--
            (1) Cancellation of payments.--Any payment required from 
        the Postal Service under section 8909a of title 5, United 
        States Code, as in effect on the day before the date of 
        enactment of this Act that remains unpaid as of such date of 
        enactment is canceled.
            (2) Effect of this act.--In any determination relating to 
        the future liability for retiree health benefits of the United 
        States Postal Service or the Postal Service Retiree Health 
        Benefits Fund, the Office of Personnel Management shall take 
        into account the actual and reasonably expected effects of this 
        Act.
    (d) Use of Funds From Sale of Real Property for Certain Payments.--
            (1) In general.--Chapter 29 of title 39, United States 
        Code, is amended by adding at the end the following:
``Sec. 2903. Use of funds from sale of property
    ``In the event that the Postal Service permanently ceases 
operations, any funds derived from the sale of any real property owned 
by the Postal Service shall be used to pay any outstanding liability 
with respect to the salaries and expenses of any Postal Service 
employee. The balance of any remaining funds shall be deposited into 
the Postal Service Retiree Health Benefits Fund established under 
section 8909a of title 5.''.
            (2) Clerical amendment.--The table of sections of such 
        chapter is amended by adding after the item relating to section 
        2902 the following new item:

``2903. Use of funds from sale of property.''.

SEC. 103. NONPOSTAL SERVICES.

    (a) Nonpostal Services.--
            (1) In general.--Part IV of title 39, United States Code, 
        is amended by adding after chapter 36 the following:

                    ``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.
``Sec. 3701. Purpose
    ``The purpose of this chapter is to enable the Postal Service to 
increase its net revenues through specific nonpostal products and 
services that are expressly authorized by this chapter.
``Sec. 3702. Definitions
    ``In this chapter--
            ``(1) the term `nonpostal services' is limited to services 
        offered by the Postal Service that are expressly authorized by 
        this chapter and are not postal products or services;
            ``(2) the term `costs attributable' has the meaning given 
        such term in section 3631;
            ``(3) the term `year' means a fiscal year;
            ``(4) the term `local government' means a county, 
        municipality, city, town, township, local public authority, 
        school district, special district, intrastate district, council 
        of governments, or regional or interstate government entity;
            ``(5) the term `State government' includes the government 
        of the District of Columbia, the Commonwealth of Puerto Rico, 
        the United States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and any other 
        territory or possession of the United States;
            ``(6) the term `tribal government' means the government of 
        an Indian tribe, as that term is defined in section 4 of the 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 5304); and
            ``(7) the term `United States', when used in a geographical 
        sense, means the States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the United States Virgin Islands, 
        Guam, American Samoa, the Commonwealth of the Northern Mariana 
        Islands, and any other territory or possession of the United 
        States.
``Sec. 3703. Postal Service program for State governments
    ``(a) In General.--Notwithstanding any other provision of this 
title, the Postal Service may establish a program to enter into 
agreements with an agency of any State government, local government, or 
tribal government to provide property or nonpostal services to the 
public on behalf of such agencies for non-commercial purposes, but only 
if--
            ``(1) such property or nonpostal services--
                    ``(A) provide enhanced value to the public, such as 
                by lowering the cost or raising the quality of such 
                services or by making such services more accessible;
                    ``(B) do not interfere with or detract from the 
                value of postal services, including by--
                            ``(i) harming the cost and efficiency of 
                        postal services; and
                            ``(ii) unreasonably restricting access to 
                        postal retail service, such as customer waiting 
                        time and access to parking; and
            ``(2) such agreements provide a net contribution to the 
        Postal Service, defined as reimbursement that covers at least 
        100 percent of the costs attributable to all property and 
        nonpostal services provided under each relevant agreement in 
        each year, except that agreements determined to be 
        substantially similar by the Postal Service with the 
        concurrence of the Postal Regulatory Commission shall be 
        reviewed based on their collective revenue and costs 
        attributable.
    ``(b) Public Notice.--Not more than 90 days after offering a 
service under the program, the Postal Service shall make available to 
the public on its website--
            ``(1) the agreement with the agency regarding such service; 
        and
            ``(2) a business plan that describes the specific property 
        or nonpostal service to be provided, the enhanced value to the 
        public, and terms of reimbursement to the Postal Service.
    ``(c) Approval Required.--The Postal Service may not establish the 
program under subsection (a) unless the Governors of the Postal Service 
approve such program by a recorded vote that is publicly disclosed on 
the Postal Service website with a majority of the Governors then in 
office voting for approval.
    ``(d) Confidential Information.--Subsection (b) shall not be 
construed as requiring the Postal Service to disclose to the public any 
information--
            ``(1) described in section 410(c); or
            ``(2) exempt from public disclosure under section 552(b) of 
        title 5.
``Sec. 3704. Postal Service program for other Government agencies
    ``The Postal Service may establish a program to provide property 
and nonpostal services to other Government agencies within the meaning 
of section 411, but only if such program provides a net contribution to 
the Postal Service, defined as reimbursement that covers at least 100 
percent of the costs attributable for property and nonpostal services 
provided by the Postal Service in each year to such agencies.
``Sec. 3705. Transparency and accountability for nonpostal services
    ``(a) Annual Report to the Commission.--
            ``(1) In general.--Not later than 90 days after the last 
        day of each year, the Postal Service shall submit to the Postal 
        Regulatory Commission a report that analyzes costs, revenues, 
        rates, and quality of service for each agreement or 
        substantially similar set of agreements for the provision of 
        property or nonpostal services under section 3703 or the 
        program as a whole under section 3704, and any other nonpostal 
        service authorized under this chapter, using such methodologies 
        as the Commission may prescribe, and in sufficient detail to 
        demonstrate compliance with the requirements of this chapter.
            ``(2) Supporting matter.--A report submitted under 
        paragraph (1) shall include any nonpublic annex, the working 
        papers, and any other supporting matter of the Postal Service 
        and the Inspector General related to the information submitted 
        in such report.
    ``(b) Content and Form of Report.--
            ``(1) In general.--The Postal Regulatory Commission shall, 
        by regulation, prescribe the content and form of the report 
        required under subsection (a). In prescribing such regulations, 
        the Commission shall give due consideration to--
                    ``(A) providing the public with timely, adequate 
                information to assess compliance;
                    ``(B) avoiding unnecessary or unwarranted 
                administrative effort and expense on the part of the 
                Postal Service; and
                    ``(C) protecting the confidentiality of information 
                that is commercially sensitive or is exempt from public 
                disclosure under section 552(b) of title 5.
            ``(2) Revised requirements.--The Commission may, on its own 
        motion or on request of any interested party, initiate 
        proceedings to improve the quality, accuracy, or completeness 
        of Postal Service data required by the Commission if--
                    ``(A) the attribution of costs or revenues to 
                property, products, or services under this chapter has 
                become significantly inaccurate or can be significantly 
                improved;
                    ``(B) the quality of service data provided to the 
                Commission for a report under this chapter has become 
                significantly inaccurate or can be significantly 
                improved; or
                    ``(C) such revisions are, in the judgment of the 
                Commission, otherwise necessitated by the public 
                interest.
    ``(c) Audits.--The Inspector General shall regularly audit the data 
collection systems and procedures used in collecting information and 
preparing the report required under subsection (a). The results of any 
such audit shall be submitted to the Postal Service and the Postal 
Regulatory Commission.
    ``(d) Confidential Information.--
            ``(1) In general.--If the Postal Service determines that 
        any document or portion of a document, or other matter, which 
        it provides to the Postal Regulatory Commission in a nonpublic 
        annex under this section contains information described in 
        section 410(c), or exempt from public disclosure under section 
        552(b) of title 5, the Postal Service shall, at the time of 
        providing such matter to the Commission, notify the Commission 
        of its determination, in writing, and describe with 
        particularity the documents (or portions of documents) or other 
        matter for which confidentiality is sought and the reasons 
        therefor.
            ``(2) Treatment.--Any information or other matter described 
        in paragraph (1) to which the Commission gains access under 
        this section shall be subject to paragraphs (2) and (3) of 
        section 504(g) in the same way as if the Commission had 
        received notification with respect to such matter under section 
        504(g)(1).
    ``(e) Annual Compliance Determination.--
            ``(1) Opportunity for public comment.--Upon receiving a 
        report required under subsection (a), the Postal Regulatory 
        Commission shall promptly--
                    ``(A) provide an opportunity for comment on such 
                report by any interested party; and
                    ``(B) appoint an officer of the Commission to 
                represent the interests of the general public.
            ``(2) Determination of compliance or noncompliance.--Not 
        later than 90 days after receiving a report required under 
        subsection (a), the Postal Regulatory Commission shall make a 
        written determination as to whether the activities carried out 
        pursuant to this chapter during the applicable year were or 
        were not in compliance with the provisions of this chapter. For 
        purposes of this paragraph, any case in which the requirements 
        for coverage of costs attributable have not been met shall be 
        considered to be a case of noncompliance. If, with respect to a 
        year, no instance of noncompliance is found to have occurred, 
        the determination shall be to that effect. Such determination 
        of noncompliance shall be included with the annual compliance 
        determination required under section 3653.
            ``(3) Noncompliance.--If a timely written determination of 
        noncompliance is made under paragraph (2), the Postal 
        Regulatory Commission shall take appropriate action. If the 
        requirements for coverage of costs attributable specified by 
        this chapter are not met, the Commission shall, within 60 days 
        after the determination, prescribe remedial action to restore 
        compliance as soon as practicable, including the full 
        restoration of revenue shortfalls during the following year. 
        The Commission may order the Postal Service to discontinue a 
        nonpostal service under section 3703 that persistently fails to 
        meet cost coverage requirements.
            ``(4) Deliberate noncompliance.--In the case of deliberate 
        noncompliance by the Postal Service with the requirements of 
        this chapter, the Postal Regulatory Commission may order, based 
        on the nature, circumstances, extent, and seriousness of the 
        noncompliance, a fine (in the amount specified by the 
        Commission in its order) for each incidence of such 
        noncompliance. All receipts from fines imposed under this 
        subsection shall be deposited in the general fund of the 
        Treasury.
    ``(f) Regulations Required.--The Postal Regulatory Commission shall 
issue such regulations as are necessary to carry out this section.
    ``(g) Experimental Product Authority.--The Postal Service may 
conduct market tests of agreements pursuant to section 3703 and section 
3704 of this chapter subject to the same terms and conditions described 
in section 3641 of this title. For the purposes of a market test, the 
cost coverage requirements in sections 3703 and 3704 of this chapter 
shall not apply.''.
            (2) Clerical amendment.--The table of chapters for part IV 
        of title 39, United States Code, is amended by adding after the 
        item relating to chapter 36 the following:

``37. Nonpostal services....................................    3701''.
    (b) Conforming Amendments.--
            (1) Section 404.--Section 404(e) of title 39, United States 
        Code, is amended in paragraph (2), by inserting after 
        ``subsection'' the following: ``, or any nonpostal products or 
        services authorized by chapter 37''.
            (2) Section 411.--The last sentence of section 411 of title 
        39, United States Code, is amended by striking ``including 
        reimbursability'' and inserting ``including reimbursability 
        within the limitations of chapter 37''.
            (3) Treatment of existing nonpostal services.--All 
        individual nonpostal services, provided directly or through 
        licensing, that are continued pursuant to section 404(e) of 
        title 39, United States Code, shall be considered to be 
        expressly authorized by chapter 37 of such title (as added by 
        subsection (a)(1)) and shall be subject to the requirements of 
        section 3705, subsections (a) through (d).

              TITLE II--POSTAL SERVICE OPERATIONAL REFORMS

SEC. 201. PERFORMANCE TARGETS AND TRANSPARENCY.

    (a) In General.--Subchapter VII of chapter 36 of title 39, United 
States Code, is amended by inserting after section 3691 the following:
``Sec. 3692. Performance targets and transparency
    ``(a) Performance Targets.--Each year, to ensure that mail service 
for postal customers meets the service standards for market-dominant 
products, established under section 3691, the Postal Service shall--
            ``(1) not later than 60 days after the beginning of the 
        fiscal year in which they will apply, establish and provide to 
        the Postal Regulatory Commission reasonable targets for 
        performance for each product; and
            ``(2) provide the previous fiscal year's performance 
        targets in its Annual Compliance Report to the Postal 
        Regulatory Commission for evaluation of compliance for each 
        product.
    ``(b) Postal Regulatory Commission Determination of Certain 
Performance Information.--Not later than 90 days after first receiving 
the performance targets under subsection (a)(1), the Postal Regulatory 
Commission shall provide to the Postal Service--
            ``(1) requirements for the Postal Service to publish 
        nationwide, regional, and local delivery area performance 
        information in accordance with subsection (c)(2) that--
                    ``(A) are consistent with the organizational 
                structure of the delivery network of the Postal Service 
                (including at the District and Area organizational 
                levels, or the functional equivalents, and, to the 
                extent practicable, at the U.S. ZIP Code Area level);
                    ``(B) reflect the most granular geographic level of 
                performance information appropriate for the Postal 
                Service to publish; and
                    ``(C) includes time period segments for the 
                published geographic levels to satisfy the publishing 
                requirements of subparagraphs (A) and (C) of subsection 
                (c)(2); and
            ``(2) recommendations for any modifications to the Postal 
        Service's measurement systems necessary to measure and publish 
        the performance information under subsection (c)(2) that the 
        Postal Regulatory Commission deems relevant.
    ``(c) Public Performance Dashboard.--
            ``(1) In general.--The Postal Service shall develop and 
        maintain a publicly available Website with an interactive web-
        tool that provides performance information for market-dominant 
        products that is updated on a weekly basis.
            ``(2) Performance information.--The performance information 
        provided for a market-dominant product on the Website shall 
        include--
                    ``(A) the type of market-dominant product;
                    ``(B) performance information for different 
                geographic areas, consistent with subsection (b);
                    ``(C) performance information for different time 
                periods, including annual, quarterly, monthly, and 
                weekly segments;
                    ``(D) comparisons of performance information for 
                market-dominant products to performance information for 
                previous time periods to facilitate identification of 
                performance trends; and
                    ``(E) the performance targets then in effect, and 
                the performance targets for the previous fiscal year, 
                as established under subsection (a)(1).
            ``(3) Comprehensibility.--The Website shall include plain 
        language descriptions of the elements required under paragraph 
        (2) and information on the collection process, measurement 
        methodology, completeness, accuracy, and validity of the 
        performance information provided on the Website.
            ``(4) Address search functionality.--The Website shall 
        include functionality to enable a user to search for 
        performance information by street address, ZIP Code, or post 
        office box.
            ``(5) Format.--The Postal Service shall make the 
        performance information provided on the Website available--
                    ``(A) in a manner that--
                            ``(i) presents the information required 
                        under paragraph (2) on an interactive 
                        dashboard;
                            ``(ii) is searchable and may be sorted and 
                        filtered by the elements described in paragraph 
                        (2); and
                            ``(iii) to the extent practicable, enables 
                        any person or entity to download in bulk--
                                    ``(I) such performance information; 
                                and
                                    ``(II) the results of a search by 
                                the elements described in paragraph 
                                (2);
                    ``(B) under an `open license' which has the meaning 
                given that term in section 3502 of title 44; and
                    ``(C) as an `open Government data asset' and in a 
                `machine-readable' format which have the meaning given 
                those terms in section 3502 of title 44.
            ``(6) Consultation.--The Postal Service shall regularly 
        consult with the Postal Regulatory Commission on appropriate 
        features and information to be included on the Website.
            ``(7) Public input.--The Postal Service shall--
                    ``(A) solicit public input on the design and 
                implementation of the Website; and
                    ``(B) maintain a public feedback tool to ensure 
                each feature of, and the information on, the Website is 
                usable and understandable.
            ``(8) Deadline.--The Postal Service shall implement and 
        make available to the public (and make any subsequent changes 
        in accordance with subsection (b)) the Website not later than 
        60 days from the date on which the Postal Service receives the 
        requirements and recommendations from the Postal Regulatory 
        Commission under subsection (b), and shall continuously update 
        such information on the Website as required by subsection (b).
            ``(9) Availability.--A link and plain language description 
        of the Website shall be made available on any webpage where 
        performance targets and measurements established under 
        subsection (a)(1) are made available to the public.
            ``(10) Reporting.--The Postal Service, the Postmaster 
        General, or the Board, as applicable, shall reference the 
        dashboard described in paragraph (5)(A)(i) in the Annual 
        Performance Plan under section 2803, the Annual Performance 
        Report under section 2804, and the Annual Report under section 
        2402.
            ``(11) Definitions.--In this subsection--
                    ``(A) Performance information.--The term 
                `performance information' means the objective external 
                performance measurements established under section 
                3691(b)(1)(D).
                    ``(B) Website.--The term `Website' means the 
                website described in paragraph (1).''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 36 of title 39, United States Code, is amended by inserting 
after the item relating to section 3691 the following:

``3692. Performance targets and transparency.''.

SEC. 202. INTEGRATED DELIVERY NETWORK.

    (a) In General.--Section 101(b) of title 39, United States Code, is 
amended by inserting before ``The Postal Service'' the following: ``The 
Postal Service shall maintain an integrated network for the delivery of 
market-dominant and competitive products (as defined in chapter 36 of 
this title). Delivery shall occur at least six days a week, except 
during weeks that include a Federal holiday, in emergency situations, 
such as natural disasters, or in geographic areas where the Postal 
Service has established a policy of delivering mail fewer than six days 
a week as of the date of enactment of the Postal Service Reform Act of 
2022.''.
    (b) Rule of Construction.--Nothing in subsection (a) or the 
amendment made by such subsection is intended to alter or amend the 
requirements of chapters 20 or 36 of title 39, United States Code, and 
related implementing regulations, including provisions relating to 
costing, accounting, or rates.

SEC. 203. REVIEW OF POSTAL SERVICE COST ATTRIBUTION GUIDELINES.

    Not later than the date that is one year after the date of the 
enactment of this Act, the Postal Regulatory Commission shall initiate 
a review of the regulations issued pursuant to sections 3633(a) and 
3652(a)(1) of title 39, United States Code, to determine whether 
revisions are appropriate to ensure that all direct and indirect costs 
attributable to competitive and market-dominant products are properly 
attributed to those products, including by considering the underlying 
methodologies in determining cost attribution and considering options 
to revise such methodologies. If the Commission determines, after 
notice and opportunity for public comment, that revisions are 
appropriate, the Commission shall make modifications or adopt 
alternative methodologies as necessary.

SEC. 204. RURAL NEWSPAPER SUSTAINABILITY.

    Section 3626(h) of title 39, United States Code, is amended by 
striking ``10 percent'' and inserting ``50 percent''.

SEC. 205. FUNDING OF POSTAL REGULATORY COMMISSION.

    (a) In General.--Subsection (d) of section 504 of title 39, United 
States Code, is amended to read as follows:
    ``(d)(1) Not later than September 1 of each fiscal year (beginning 
with fiscal year 2022), the Postal Regulatory Commission shall submit 
to the Postal Service a budget of the Commission's expenses, including 
expenses for facilities, supplies, compensation, and employee benefits, 
for the following fiscal year. Any such budget shall be deemed approved 
as submitted if the Governors fail to adjust the budget in accordance 
with paragraph (2).
    ``(2)(A) Not later than 30 days after receiving a budget under 
paragraph (1), the Governors holding office, by unanimous written 
decision, may adjust the total amount of funding requested in such 
budget. Nothing in this subparagraph may be construed to authorize the 
Governors to adjust any activity proposed to be funded by the budget.
    ``(B) If the Governors adjust the budget under subparagraph (A), 
the Postal Regulatory Commission shall adjust the suballocations within 
such budget to reflect the total adjustment made by the Governors. The 
budget shall be deemed approved on the date the Commission makes any 
such adjustments. The Commission may make further adjustments to the 
suballocations within such budget as necessary.
    ``(3) Expenses incurred under any budget approved under this 
subsection shall be paid out of the Postal Service Fund established 
under section 2003.''.
    (b) Conforming Amendments.--Title 39, United States Code, is 
amended--
            (1) in section 2003(e), by striking ``(B) all expenses of 
        the Postal Regulatory Commission, subject to the availability 
        of amounts appropriated under section 504(d);'' and inserting 
        ``(B) all expenses of the Postal Regulatory Commission, 
        pursuant to section 504(d);''; and
            (2) in section 2009--
                    (A) by striking ``, (2)'' and inserting ``, and 
                (2)''; and
                    (B) by striking ``, and (3) the Postal Regulatory 
                Commission requests to be appropriated, out of the 
                Postal Service Fund, under section 504(d) of this 
                title''.

SEC. 206. FLATS OPERATIONS STUDY AND REFORM.

    (a) Flats Operations Study.--
            (1) In general.--The Postal Regulatory Commission, in 
        consultation with the Inspector General of the United States 
        Postal Service, shall conduct a study to--
                    (A) comprehensively identify the causes of 
                inefficiencies in the collection, sorting, 
                transportation, and delivery of Flats; and
                    (B) quantify the effects of the volume trends, 
                investments decisions, excess capacity, and operational 
                inefficiencies of the Postal Service on the direct and 
                indirect costs of the Postal Service that are 
                attributable to Flats.
            (2) Postal service assistance.--For the purposes of 
        carrying out the study under paragraph (1), the Postal Service 
        shall, upon request by the Postal Regulatory Commission, 
        consult with the Postal Regulatory Commission and provide--
                    (A) access to Postal Service facilities to 
                personnel of the Postal Regulatory Commission; and
                    (B) information and records necessary to conduct 
                such study.
            (3) Report.--Not later than one year after the date of the 
        enactment of this Act, the Postal Regulatory Commission shall 
        submit to Congress and the Postmaster General a report on the 
        findings of the study conducted under paragraph (1).
            (4) Flats defined.--In this subsection, the term ``Flats'' 
        means products that meet the physical standards described in 
        the Domestic Mail Manual (as in effect on the date of the 
        enactment of this Act) for Flats mail for any class of mail.
    (b) Flats Operations Reform.--
            (1) In general.--Not later than six months after the date 
        on which the Postal Regulatory Commission submits the report 
        described in subsection (a)(3), the Postal Service shall--
                    (A) develop and implement a plan to remedy each 
                inefficiency identified in the study conducted under 
                subsection (a)(1) to the extent practicable; and
                    (B) if the Postal Service determines that remedying 
                any such inefficiency is not practicable, provide to 
                Congress and the Postal Regulatory Commission an 
                explanation why remedying such inefficiency is not 
                practicable, including whether it may become 
                practicable to remedy such inefficiency at a later 
                time.
            (2) Implementation requirements.--Prior to implementing the 
        plan described in paragraph (1)--
                    (A) the Postal Regulatory Commission must approve 
                the plan; and
                    (B) the Postal Service shall provide an adequate 
                opportunity for public comment on the plan.
            (3) Completion notice.--On the date on which the plan 
        described in paragraph (1) is fully implemented, as determined 
        by the Postmaster General, the Postmaster General shall submit 
        to Congress and the Postal Regulatory Commission a written 
        notice of such implementation.
    (c) Subsequent Rate Adjustments.--During the five-year period 
beginning on the date on which the Postal Regulatory Commission submits 
a report under subsection (a)(3), the Postal Service, when making any 
adjustment to the rate of a market-dominant product (as defined in 
section 102 of title 39, United States Code), shall consider the 
findings of such report and, after the plan described in subsection 
(b)(1) is implemented, the plan's efficacy in remedying the 
inefficiencies identified in the study conducted under subsection 
(a)(1).

SEC. 207. REPORTING REQUIREMENTS.

    (a) In General.--Not later than 240 days after the date of the 
enactment of this Act, and every six months thereafter, the Postmaster 
General shall submit to the President, the Postal Regulatory 
Commission, the Committee on Homeland Security and Governmental Affairs 
of the Senate, and the Committee on Oversight and Reform of the House 
of Representatives a report on the operations and financial condition 
of the Postal Service during the six-month period ending 60 days before 
the date on which the Postmaster General submits such report.
    (b) Contents.--Each report submitted under this section shall 
include updates, details of changes from previous standards and 
requirements, and assessments of progress being made on the operations 
and financial condition of the Postal Service, including--
            (1) the actual mail and package volume growth relative to 
        any mail or package volume growth projections previously made 
        or relied upon by the Postal Service, including a discussion of 
        the reasons for the differences in projections and the 
        associated adjustments being made;
            (2) the effect of pricing changes on product volume for 
        market-dominant and competitive products, and associated 
        revenue effects on financial projections, including a 
        discussion of the reasons behind the differences in projections 
        and associated adjustments being made;
            (3) customer use of network distribution centers and 
        processing and distribution centers;
            (4) the status of the USPS Connect program and revenue 
        effects of the program on the financial projections;
            (5) the use of Priority Mail, Priority Mail Express, First-
        Class Package Service, and Parcel Select services (as such 
        terms are defined in the Mail Classification Schedule as in 
        effect on the date of the enactment of this Act) among 
        customers and associated revenue effects;
            (6) the use of USPS Connect Returns service among 
        customers, and associated costs and revenue effects;
            (7) the use of USPS E-Commerce Marketplace among customers, 
        and associated costs and revenue effects;
            (8) updates on the reliability, efficiency, and cost-
        effectiveness of the transportation network, including the 
        manner in which ground transportation is utilized over air 
        transportation for types of market-dominant products and 
        competitive products;
            (9) a review of efforts to enhance employee training, 
        safety, and wellbeing, including associated effects on employee 
        recruitment, satisfaction, and retention;
            (10) a review of efforts being made to improve employee 
        allocation, including changes of non-career employees to career 
        status, and any associated impacts to operational expenses and 
        processing, transportation, and delivery efficiency;
            (11) the rate of planned investment into Postal Service 
        processing, transportation, and delivery equipment and 
        infrastructure for market-dominant and competitive products, 
        and a review of any associated effects on operational expenses 
        and efficiency;
            (12) changes to network distribution centers and the 
        expansion of regional distribution centers, including costs 
        associated with the changes and any realized reduction in 
        operational expenses or improved resource efficiencies;
            (13) a review of the ability of the Postal Service to meet 
        performance targets established under section 3692(a)(1) of 
        title 39, United States Code;
            (14) a discussion of the progress of the Postal Service in 
        achieving any new, self-funded investments, including the 
        amounts realized and expended to date, and a discussion of the 
        reasons behind any disparities in the assumptions regarding the 
        expected progress of the Postal Service getting new, self-
        funded investments to accommodate changes; and
            (15) any other information the Postal Service determines 
        relevant, such as barriers or unanticipated events, in order to 
        help the Postal Regulatory Commission, Congress, the President, 
        and the American public evaluate the success or difficulties 
        faced by the Postal Service in implementing the reform plan.
    (c) Confidential Information.--
            (1) In general.--The report required under this subsection 
        shall be submitted in a form that excludes any proprietary or 
        confidential information and trade secrets.
            (2) Notification.--If the Postal Service determines that 
        any information must be excluded under paragraph (1), the 
        Postal Service shall, at the time of submitting the report, 
        notify the President, the Committee on Oversight and Reform of 
        the House of Representatives, the Committee on Homeland 
        Security and Governmental Affairs of the Senate, and the Postal 
        Regulatory Commission in writing of its determination and 
        describe in detail the information for which confidentiality is 
        sought and the reasons therefor.
            (3) Annexes.--The Postal Service shall submit to the 
        persons and entities notified under paragraph (2) any 
        information excluded under paragraph (1) in an annex that shall 
        be treated as confidential in accordance with paragraph (4).
            (4) Treatment.--No person may, with respect to any 
        information which such person receives under paragraph (4)--
                    (A) use such information for purposes other than 
                the purposes for which it is supplied; or
                    (B) permit any person or entity other than a person 
                or entity notified under paragraph (2), or the staff 
                thereof, to have access to any such information.
    (d) Termination.--This section shall terminate on the date that is 
five years after the date on which the first report required by this 
section is submitted.

SEC. 208. POSTAL SERVICE TRANSPORTATION SELECTION POLICY REVISIONS.

    Section 101(f) of title 39, United States Code, is amended--
            (1) by striking ``prompt and economical'' and inserting 
        ``prompt, economical, consistent, and reliable'';
            (2) by inserting after ``all mail'' the following: ``in a 
        manner that increases operational efficiency and reduces 
        complexity'';
            (3) by inserting ``cost-effective'' after ``to achieve''; 
        and
            (4) by inserting ``also'' after ``Nation shall''.

SEC. 209. USPS INSPECTOR GENERAL OVERSIGHT OF POSTAL REGULATORY 
              COMMISSION.

    (a) In General.--Section 8G of the Inspector General Act of 1978 (5 
U.S.C. App.) is amended--
            (1) in subsection (a)(2), by striking ``the Postal 
        Regulatory Commission,''; and
            (2) in subsection (f)--
                    (A) in paragraph (2)--
                            (i) by striking ``(2) In carrying'' and 
                        inserting ``(2)(A) In carrying''; and
                            (ii) by adding at the end the following:
            ``(B) In carrying out the duties and responsibilities 
        specified in this Act, the Inspector General of the United 
        States Postal Service shall function as the Inspector General 
        for the Postal Regulatory Commission, and shall have equal 
        responsibility over the United States Postal Service and the 
        Postal Regulatory Commission. The Commission shall comply with 
        the Inspector General's oversight as if the Commission were a 
        designated Federal entity under subsection (a)(2) and as if the 
        Inspector General were the inspector general of the Commission. 
        The Governors of the Postal Service shall not direct oversight 
        activities for the Postal Regulatory Commission.'';
                    (B) in paragraph (3)(A)(i), by inserting 
                ``pertaining to the United States Postal Service'' 
                after ``subpoenas,'';
                    (C) in paragraph (3)(B)(i), by inserting ``and the 
                Postal Regulatory Commission'' after ``United States 
                Postal Service'';
                    (D) in paragraph (3)(C), by inserting ``or the 
                Postal Regulatory Commission'' after ``Governors'';
                    (E) by redesignating paragraphs (4), (5), and (6) 
                as paragraphs (5), (6), and (7), respectively; and
                    (F) by inserting after paragraph (3) the following:
            ``(4) For activities pertaining to the Postal Regulatory 
        Commission, sections 4, 5, 6 (other than subsection (g) 
        thereof), and 7 of this Act shall be applied by substituting 
        the term `head of the Postal Regulatory Commission' for `head 
        of the establishment'.''.
    (b) Appointment and Removal.--Section 202 of title 39, United 
States Code, is amended--
            (1) in subsection (e)(1), by striking ``The Governors shall 
        appoint'' and inserting ``The Governors and the members of the 
        Postal Regulatory Commission shall appoint, by a favorable vote 
        of a majority of the Governors in office and of a majority of 
        the members of the Commission in office,''; and
            (2) in subsection (e)(3), by inserting ``and 3 members of 
        the Postal Regulatory Commission'' after ``at least 7 
        Governors''.
    (c) Savings Provision.--
            (1) Personnel, documents, assets.--All personnel, 
        documents, assets, unexpended balances of appropriations, and 
        obligations of the Inspector General for the Postal Regulatory 
        Commission shall transfer to the Inspector General of the 
        Postal Service on the effective date of this section.
            (2) Legal documents.--Any order, determination, rule, 
        regulation, permit, grant, loan, contract, agreement, 
        certificate, license, or privilege that has been issued, made, 
        granted, or allowed to become effective by the Inspector 
        General of the Postal Regulatory Commission that is in effect 
        on the effective date of this section shall continue in effect 
        according to their terms until modified, terminated, 
        superseded, set aside, or revoked in accordance with law.
            (3) Proceedings.--This section and the amendments made by 
        this section shall not affect any proceeding pending on the 
        effective date of this section before the Inspector General of 
        the Postal Regulatory Commission, but such proceeding shall be 
        continued by the Inspector General of the Postal Service, at 
        the discretion of that Inspector General. Nothing in this 
        paragraph shall be construed to prohibit the discontinuance or 
        modification of any such proceeding under the same terms and 
        conditions and to the same extent that the proceeding could 
        have been discontinued or modified if this section and those 
        amendments had not been enacted.
            (4) Suits.--This section and the amendments made by this 
        section shall not affect any suit commenced before the 
        effective date of this section, and in any such suit, 
        proceeding shall be had, appeals taken, and judgments rendered 
        in the same manner and with the same effect as if this section 
        or such amendments had not been enacted.
            (5) References.--Any reference in any other Federal law, 
        Executive order, rule, regulation, or delegation of authority, 
        or any document relating to the Inspector General of the Postal 
        Regulatory Commission shall be deemed to refer to the Inspector 
        General of the United States Postal Service.
    (d) Technical and Conforming Amendment.--Section 504 of title 39, 
United States Code, is amended by striking subsection (h).
    (e) Effective Date.--This section and the amendments made by this 
section shall take effect on the date that is 180 days after the date 
of enactment of this Act.

                        TITLE III--SEVERABILITY

SEC. 301. SEVERABILITY.

    If any provision of this Act or any amendment made by this Act, or 
the application of a provision of this Act or an amendment made by this 
Act to any person or circumstance, is held to be unconstitutional, the 
remainder of this Act, and the application of the provisions to any 
person or circumstance, shall not be affected by the holding.

            Passed the House of Representatives February 8, 2022.

            Attest:

                                             CHERYL L. JOHNSON,

                                                                 Clerk.
                                                       Calendar No. 266

117th CONGRESS

  2d Session

                               H. R. 3076

_______________________________________________________________________

                                 AN ACT

 To provide stability to and enhance the services of the United States 
                Postal Service, and for other purposes.

_______________________________________________________________________

                            February 9, 2022

            Read the second time and placed on the calendar
```