```

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3076 Enrolled Bill (ENR)]

        H.R.3076

                    One Hundred Seventeenth Congress

                                 of the

                        United States of America

                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Monday,
          the third day of January, two thousand and twenty-two

                                 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 for 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, for fiscal year 
    2022, out of any money in the Treasury not otherwise appropriated, 
    $7,500,000, to remain available until expended, for the purposes of 
    carrying out this section, including the amendments made by this 
    section.
        (2) SSA appropriation.--In addition to amounts otherwise 
    available, there is appropriated to the Social Security 
    Administration for fiscal year 2022, out of any money in the 
    Treasury not otherwise appropriated, $16,000,000, to remain 
    available until expended, for the purposes of carrying out this 
    section (with the exception of the purposes set forth in subsection 
    (c)(3)(B)), including the amendments made by this section.
        (3) OPM appropriation.--In addition to amounts otherwise 
    available, there is appropriated to the Office of Personnel 
    Management for fiscal year 2022, out of any money in the Treasury 
    not otherwise appropriated, $70,500,000, to remain available until 
    expended, for the 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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
```