‘‘(B) shall, not later than 60 days after 
ceasing to meet the requirements of paragraph 
(1), be converted to the primary mode of mail 
delivery which is otherwise applicable. 
‘‘(h) PROCEDURES.—In carrying out conversions 
under this section, the Postal Service shall establish proce-
dures to— 
‘‘(1) solicit, consider, and respond to input from 
the general public, postal patrons, State and local 
governments, local associations, and property own-
ers; 
‘‘(2) calculate and make publicly accessible the 
cost or savings of the conversion to the Postal Serv-
ice as well as the average conversion cost or savings 
to each postal patron and any cost or savings to the 
State and local government; and 
‘‘(3) place centralized delivery points in loca-
tions that maximize delivery efficiency, ease of use 
for postal patrons, and respect for private property 
rights. 
‘‘(i) VOUCHER PROGRAM.—The Postal Service shall 
provide for a voucher program under which, upon applica-
tion, the Postal Service may defray all or any portion of 
the costs associated with conversion from door delivery 
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under this section which would otherwise be borne by post-
al patrons. 
‘‘(j) ANNUAL REPORT.—Not later than 60 days after 
the end of each of fiscal years 2017 through 2023, the 
Postal Service shall submit to Congress and the Inspector 
General a report on the implementation of this section 
during the most recently completed fiscal year. Each such 
report shall include— 
‘‘(1) the number of residential and business ad-
dresses that— 
‘‘(A) receive door delivery as of the end of 
the fiscal year preceding the most recently com-
pleted fiscal year; 
‘‘(B) receive door delivery as of the end of 
the most recently completed fiscal year; and 
‘‘(C) during the most recently completed 
fiscal year, were converted from door delivery 
to— 
‘‘(i) centralized delivery; 
‘‘(ii) curbside delivery; and 
‘‘(iii) any other primary mode of mail 
delivery; 
‘‘(2) the estimated cost savings from the con-
versions described in paragraph (1)(C); 
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‘‘(3) a description of the progress made by the 
Postal Service toward meeting the requirements of 
the phaseout under subsection (c); and 
‘‘(4) any other information which the Postal 
Service considers appropriate. 
‘‘(k) INSPECTOR GENERAL AUDIT.—The Inspector 
General shall issue an annual audit report on the imple-
mentation of this section not later than 90 days after the 
date on which the Postal Service releases its annual report 
under subsection (j). Such report shall include— 
‘‘(1) an audit of the data contained in the Post-
al Service’s report under subsection (j); and 
‘‘(2) an evaluation of the Postal Service’s imple-
mentation of the voucher program under subsection 
(i). 
‘‘(l) REVIEW.—Subchapters IV and V shall not apply 
with respect to any action taken by the Postal Service 
under this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 36 of title 39, United States Code, is amended 
by adding after the item relating to section 3691 the fol-
lowing: 
‘‘3692. Delivery-point modernization.’’. 
(c) UPDATED DELIVERY COST DATA.— 
(1) STUDY.—Not later than 180 days after the 
date of the enactment of this Act, the Postal Service 
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shall begin to collect data on delivery mode costs and 
the potential savings of converting to more cost-effi-
cient primary modes of mail delivery. 
(2) REPORT.—Not later than 2 years after the 
date of enactment of this Act, the Postal Service 
shall submit a report to the Committee on Oversight 
and Government Reform of the House of Represent-
atives and the Committee on Homeland Security and 
Governmental Affairs of the Senate describing the 
findings of the study conducted under paragraph 
(1). 
(d) INSPECTOR GENERAL REVIEW OF COSTS AND 
BENEFITS OF DELIVERY POINT CONVERSIONS.— 
(1) STUDY.—Not later than 2 years after the 
date on which the Postal Service commences delivery 
point conversions pursuant to subsections (d)(2) and 
(e)(2) of section 3692 of title 39, United States 
Code (as added by subsection (a)), and not later 
than 3 years thereafter, the Inspector General of the 
Postal Community shall conduct a study of the costs 
and benefits of such conversions. 
(2) REPORT.—Not later than 1 year after the 
date on which the Inspector General conducts each 
study required under paragraph (1), the Inspector 
General shall submit to the Committee on Homeland 
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Security and Governmental Affairs of the Senate 
and the Committee on Oversight and Government 
Reform of the House of Representatives a report on 
the results of each study. 
(3) CONTENT.—The studies required under 
paragraph (1) shall assess the following: 
(A) The cost savings realized by the Postal 
Service from the conversions under subsections 
(d)(2) and (e)(2) of section 3692 of title 39, 
United States Code (as added by subsection 
(a)), and the projected cost savings the Postal 
Service is likely to realize from full implementa-
tion of such conversions. 
(B) The expenses incurred by the Postal 
Service to achieve such conversions and the pro-
jected expenses the Postal Service is likely to 
incur from full implementation of such conver-
sions. 
(C) The impact of the conversions on— 
(i) response rates to mailed adver-
tising; 
(ii) advertising revenue earned by the 
Postal Service; 
(iii) small businesses, including small 
home-based businesses; and 
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(iv) mail volumes shipped through the 
Postal Service. 
(D) Any other factors the Inspector Gen-
eral considers relevant to provide a complete 
analysis of the costs and benefits associated 
with the conversions described under such sub-
sections. 
(4) NET
COST
BENEFIT
ANALYSIS.—The In-
spector General shall conduct a cost benefit analysis 
to determine the net cost or benefit to the Postal 
Service of the conversions conducted under such 
subsections and include the analysis in each report 
submitted under paragraph (2). 
SEC. 203. MODERNIZING POSTAL RATES. 
(a) ADEQUACY, EFFICIENCY, AND FAIRNESS
OF 
POSTAL RATES.— 
(1) OBJECTIVES.—Section 3622(b) of title 39, 
United States Code, is amended— 
(A) in paragraph (2), by inserting ‘‘and 
ensure’’ after ‘‘create’’; 
(B) in paragraph (3)— 
(i) by inserting ‘‘and meet’’ after 
‘‘maintain’’; and 
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(ii) by inserting ‘‘, with a focus on 
achieving predictable and consistent deliv-
ery’’ before the period at the end; 
(C) in paragraph (5), by inserting ‘‘estab-
lish and’’ before ‘‘maintain’’; 
(D) in paragraph (6), by striking ‘‘proc-
ess’’ and inserting ‘‘and cost allocation proc-
esses’’; and 
(E) in paragraph (9), by inserting ‘‘(and to 
ensure appropriate levels of transparency)’’ be-
fore the period at the end. 
(2) FACTORS.—Section 3622(c) of title 39, 
United States Code, is amended to read as follows: 
‘‘(c) FACTORS.—In establishing or revising such sys-
tem, the Postal Regulatory Commission shall take into ac-
count the following factors: 
‘‘(1) The effect of rate increases upon the gen-
eral public and business mail users. 
‘‘(2) The available alternative means of sending 
and receiving written communications, information, 
and letters and other mail matter at reasonable 
costs. 
‘‘(3) The reliability of delivery timelines and the 
extent to which the Postal Service is meeting its 
service standard obligations. 
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‘‘(4) The need to ensure that the Postal Service 
has adequate revenues and has taken appropriate 
cost-cutting measures to maintain financial stability 
and meet all legal obligations. 
‘‘(5) The extent to which the Postal Service has 
taken actions to increase its efficiency and reduce its 
costs. 
‘‘(6) The value of the mail service actually pro-
vided by each class or type of mail service to both 
the sender and the recipient, including but not lim-
ited to the collection, mode of transportation, and 
priority of delivery. 
‘‘(7) The requirement that each class of mail or 
type of mail service bear the direct and indirect 
postal costs attributable to each class or type of mail 
service through reliably identified causal relation-
ships plus that portion of all other costs of the Post-
al Service reasonably assignable to such class or 
type. 
‘‘(8) The degree of preparation of mail for de-
livery into the postal system performed by the mailer 
and its effect upon improving efficiency and reduc-
ing costs to the Postal Service. 
‘‘(9) Simplicity of structure for the entire 
schedule and simple, identifiable relationships be-
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tween the rates or fees charged the various classes 
of mail for postal services. 
‘‘(10) The importance of pricing flexibility to 
encourage increased mail volume and operational ef-
ficiency. 
‘‘(11) The relative value to the people of the 
kinds of mail matter entered into the postal system 
and the desirability and justification for special clas-
sifications and services of mail. 
‘‘(12) The importance of providing classifica-
tions with extremely high degrees of reliability and 
speed of delivery and of providing those that do not 
require high degrees of reliability and speed of deliv-
ery. 
‘‘(13) The desirability of special classifications 
for both postal users and the Postal Service in ac-
cordance with the policies of this title, including 
agreements between the Postal Service and postal 
users, when available on public and reasonable terms 
to similarly situated mailers, that— 
‘‘(A) improve the net financial position of 
the Postal Service by reducing Postal Service 
costs or increasing the overall contribution to 
the institutional costs of the Postal Service; and 
‘‘(B) do not cause— 
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‘‘(i) unfair competitive advantage for 
the Postal Service or postal users eligible 
for the agreements; or 
‘‘(ii) unreasonable disruption to the 
volume or revenues of other postal users. 
‘‘(14) The educational, cultural, scientific, and 
informational value to the recipient of mail matter. 
‘‘(15) The need for the Postal Service to in-
crease its efficiency and reduce its costs, including 
infrastructure costs, to help maintain high quality, 
affordable postal services. 
‘‘(16) The value to the Postal Service and post-
al users of promoting intelligent mail and of secure, 
sender-identified mail. 
‘‘(17) The importance of stability and predict-
ability of rates to ratepayers. 
‘‘(18) The policies of this title as well as such 
other factors as the Commission determines appro-
priate.’’. 
(3) REQUIREMENTS.—Section 3622(d)(1) of 
title 39, United States Code, is amended— 
(A) by redesignating subparagraphs (B) 
through (E) as subparagraphs (C) through (F), 
respectively; 
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(B) in subparagraph (F) (as redesignated 
by clause (i)) by striking ‘‘subparagraphs (A) 
and (C)’’ and inserting ‘‘subparagraphs (A) and 
(D)’’; and 
(C) by inserting after subparagraph (A) 
the following: 
‘‘(B) establish postal rates for each group 
of functionally equivalent agreements between 
the Postal Service and users of the mail that— 
‘‘(i) cover attributable cost; 
‘‘(ii) improve the net financial position 
of the Postal Service; and 
‘‘(iii) do not cause unreasonable dis-
ruption in the marketplace, consistent with 
subsection (c)(13)(B); 
for purposes of this subparagraph, a group of 
functionally equivalent agreements shall consist 
of all service agreements that are functionally 
equivalent to each other within the same mar-
ket-dominant product, but shall not include 
agreements within an experimental product;’’. 
(4) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—Section 3622 of title 39, United States 
Code, is amended— 
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(A) in subsection (a) by striking ‘‘, within 
18 months after the date of enactment of this 
section,’’; and 
(B) in subsection (d)(1)(E) (as redesig-
nated by paragraph (3)(A)(i)) by striking 
‘‘(c)(10)’’ and inserting ‘‘(c)(H)’’. 
(b) REPEAL OF RATE PREFERENCES FOR QUALI-
FIED POLITICAL COMMITTEES.—Subsection (e) of section 
3626 of title 39, United States Code, is repealed. 
(c) USE OF NEGOTIATED SERVICE AGREEMENTS.— 
(1) STREAMLINED
REVIEW
OF
QUALIFYING 
SERVICE
AGREEMENTS
FOR
COMPETITIVE
PROD-
UCTS.—Section 3633 of title 39, United States 
Code, is amended by adding at the end the fol-
lowing: 
‘‘(c) STREAMLINED REVIEW.—Not later than 90 
days after the date of enactment of this subsection, after 
notice and opportunity for comment, the Postal Regu-
latory Commission shall promulgate (and may from time 
to time thereafter revise) regulations for streamlined 
after-the-fact review of newly proposed agreements be-
tween the Postal Service and users of the mail that provide 
rates not of general applicability for competitive products. 
Streamlined review shall apply only if agreements are 
functionally equivalent to existing agreements that have 
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collectively covered attributable costs and collectively im-
proved the net financial position of the Postal Service. The 
regulations issued under this subsection shall provide that 
streamlined review shall be concluded not later than 5 
business days after the date on which the agreement is 
filed with the Commission and shall be limited to approval 
or disapproval of the agreement as a whole based on the 
Commission’s determination of its functional equivalence. 
Agreements not approved may be resubmitted without 
prejudice under section 3632.’’. 
(2) SUBMISSION OF SERVICE AGREEMENTS FOR 
STREAMLINED REVIEW.—Section 3632(b) of title 39, 
United States Code, is amended— 
(A) by redesignating paragraph (4) as 
paragraph (5); and 
(B) by inserting after paragraph (3) the 
following: 
‘‘(4) RATES
FOR
STREAMLINED
REVIEW.—In 
the case of rates not of general applicability for com-
petitive products that the Postmaster General con-
siders eligible for streamlined review under section 
3633(c), the Postmaster General shall cause the 
agreement to be filed with the Postal Regulatory 
Commission by a date that is on or before the effec-
tive date of any new rate established under the 
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agreement, as the Postmaster General considers ap-
propriate.’’. 
(3) TRANSPARENCY AND ACCOUNTABILITY FOR 
SERVICE AGREEMENTS.— 
(A) CERTAIN INFORMATION REQUIRED TO 
BE INCLUDED IN DETERMINATIONS OF COMPLI-
ANCE.—Section 3653 of title 39, United States 
Code, is amended— 
(i) by redesignating subsections (c), 
(d), and (e) as subsections (d), (e), and (f), 
respectively; and 
(ii) by inserting after subsection (b) 
the following: 
‘‘(c) WRITTEN DETERMINATION.—Each annual writ-
ten determination of the Commission under this section 
shall include the following: 
‘‘(1) REQUIREMENTS.—For each group of func-
tionally equivalent agreements between the Postal 
Service and users of the mail, whether such group 
fulfilled requirements to— 
‘‘(A) cover costs attributable; and 
‘‘(B) improve the net financial position of 
the Postal Service. 
‘‘(2) NONCOMPLIANCE.—Any group of function-
ally equivalent agreements not meeting subpara-
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graphs (A) and (B) of paragraph (1) shall be deter-
mined to be in noncompliance under this subsection. 
‘‘(3) DEFINITION.—For purposes of this sub-
section, a group of functionally equivalent agree-
ments shall consist of 1 or more service agreements 
that are functionally equivalent to each other within 
the same market-dominant or competitive product, 
but shall not include agreements within an experi-
mental product.’’. 
(B) 
TECHNICAL
AMENDMENT.—Section 
3653(d) of title 39, United States Code (as re-
designated by subparagraph (A)), is amended 
by striking ‘‘subsections (c) and (e)’’ and in-
serting ‘‘subsections (c) and (d)’’. 
SEC. 204. 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. 
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‘‘§ 3701. Purpose 
‘‘The purpose of this chapter is to enable the Postal 
Service to increase its net revenues through specific non-
postal products and services that are expressly authorized 
by this chapter. Postal Service revenues and expenses 
under this chapter shall be funded through the Postal 
Service Fund. 
‘‘§ 3702. Definitions 
‘‘In this chapter— 
‘‘(1) the term ‘nonpostal services’ is limited to 
services offered by the Postal Service that are ex-
pressly authorized by this chapter and are not postal 
products or services; 
‘‘(2) the term ‘attributable costs’ has the mean-
ing given such term in section 3631; and 
‘‘(3) the term ‘year’ means a fiscal year. 
‘‘§ 3703. Postal service program for State govern-
ments 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of this title, the Postal Service may establish a pro-
gram to enter into agreements with an agency of any State 
government, local government, or tribal government to 
provide property and services on behalf of such agencies 
for non-commercial products and services at Postal Serv-
ice facilities within the United States, but only if such 
property and services— 
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‘‘(1) 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; 
‘‘(2) do not interfere with or detract from the 
value of postal services, including— 
‘‘(A) the cost and efficiency of postal serv-
ices; and 
‘‘(B) unreasonably restricting access to 
postal retail service, such as customer waiting 
time and access to parking; and 
‘‘(3) provide a reasonable contribution to the in-
stitutional costs of the Postal Service, defined as re-
imbursement that covers at least 100 percent of at-
tributable costs of all property and services provided 
under each relevant agreement in each year. 
‘‘(b) PUBLIC NOTICE.—At least 90 days before offer-
ing a service under the program, the Postal Service shall 
make available to the public on its Web site— 
‘‘(1) the agreement with the agency regarding 
such service; and 
‘‘(2) a business plan that describes the specific 
service to be provided, the enhanced value to the 
public, terms of reimbursement, the estimated an-
nual reimbursement to the Postal Service, and the 
estimated percentage of attributable Postal Service 
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costs that will be covered by reimbursement (with 
documentation to support the estimates). 
‘‘(c) PUBLIC COMMENT.—Before offering a service 
under the program, the Postal Service shall provide for 
a public comment period of at least 30 days that allows 
the public to post comments relating to the provision of 
such services on the Postal Service Web site. The Postal 
Service shall make reasonable efforts to provide written 
responses to the comments on such Web site at least 30 
days before offering such services. 
‘‘(d) 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 Web site with a majority of the total Governors 
voting for approval. 
‘‘(e) 
APPLICATION
OF
REPORTING
REQUIRE-
MENTS.—For purposes of the reporting requirements 
under section 3705, the Postal Service shall submit a sep-
arate report for each agreement with an agency entered 
into under subsection (a) analyzing the costs, revenues, 
rates, and quality of service for the provision of all services 
under such agreement, including information dem-
onstrating that the agreement satisfies the requirements 
of paragraphs (1) through (3) of subsection (a). 
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‘‘(f) REGULATIONS REQUIRED.—The Postal Regu-
latory Commission shall issue such regulations as are nec-
essary to carry out this section. 
‘‘(g) DEFINITIONS.—For the purpose of this sec-
tion— 
‘‘(1) the term ‘local government’ means a coun-
ty, municipality, city, town, township, local public 
authority, school district, special district, intrastate 
district, council of governments, or regional or inter-
state government entity; 
‘‘(2) the term ‘State government’ includes the 
government of the District of Columbia, the Com-
monwealth of Puerto Rico, the United States Virgin 
Islands, Guam, American Samoa, the Common-
wealth of the Northern Mariana Islands, and any 
other territory or possession of the United States; 
‘‘(3) the term ‘tribal government’ means the 
government of an Indian tribe, as that term is de-
fined in section 4(e) of the Indian Self-Determina-
tion Act (25 U.S.C. 450b(e)); and 
‘‘(4) 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 
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Islands, and any other territory or possession of the 
United States. 
‘‘§ 3704. Postal service program for other government 
agencies 
‘‘(a) IN GENERAL.—The Postal Service may establish 
a program to provide property and services to other Gov-
ernment agencies within the meaning of section 411, but 
only if such program provides a reasonable contribution 
to the institutional costs of the Postal Service, defined as 
reimbursement by each agency that covers at least 100 
percent of the attributable costs of all property and service 
provided by the Postal Service in each year to such agency. 
‘‘(b) 
APPLICATION
OF
REPORTING
REQUIRE-
MENTS.—For purposes of the reporting requirements 
under section 3705, the Postal Service shall submit a sep-
arate report for each agreement with an agency entered 
into under subsection (a) analyzing the costs, revenues, 
rates, and quality of service for the provision of all services 
under such agreement, including information dem-
onstrating that the agreement satisfies the requirements 
of subsection (a). 
‘‘§ 3705. Transparency and accountability for non-
postal services 
‘‘(a) ANNUAL REPORT TO THE COMMISSION.— 
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‘‘(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 qual-
ity of service for each agreement for the provision of 
property and services 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 sub-
mitted under paragraph (1) shall include any non-
public annex, the working papers, and any other 
supporting matter of the Postal Service and the In-
spector 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 con-
tent and form of the report required under sub-
section (a). In prescribing such regulations, the 
Commission shall give due consideration to— 
‘‘(A) providing the public with timely, ade-
quate information to assess compliance; 
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‘‘(B) avoiding unnecessary or unwarranted 
administrative effort and expense on the part of 
the Postal Service; and 
‘‘(C) protecting the confidentiality of infor-
mation that is commercially sensitive or is ex-
empt from public disclosure under section 
552(b) of title 5. 
‘‘(2) REVISED REQUIREMENTS.—The Commis-
sion 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 or services under this chapter has be-
come significantly inaccurate or can be signifi-
cantly 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 
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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 Regu-
latory Commission. 
‘‘(d) CONFIDENTIAL INFORMATION.— 
‘‘(1) IN GENERAL.—If the Postal Service deter-
mines that any document or portion of a document, 
or other matter, which it provides to the Postal Reg-
ulatory Commission in a nonpublic annex under this 
section contains information described in section 
410(c), or exempt from public disclosure under sec-
tion 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 writ-
ing, 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 sec-
tion 504(g)(1). 
‘‘(e) ANNUAL COMPLIANCE DETERMINATION.— 
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‘‘(1) OPPORTUNITY FOR PUBLIC COMMENT.— 
Upon receiving a report required under subsection 
(a), the Postal Regulatory Commission shall prompt-
ly— 
‘‘(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 NON-
COMPLIANCE.—Not later than 90 days after receiv-
ing a report required under subsection (a), the Post-
al Regulatory Commission shall make a written de-
termination as to whether the nonpostal activities 
carried out 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 attributable costs 
have not been met shall be considered to be a case 
of noncompliance. If, with respect to a year, no in-
stance of noncompliance is found to have occurred, 
the determination shall be to that effect. Such deter-
mination of noncompliance shall be included with the 
annual compliance determination required under sec-
tion 3653. 
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‘‘(3) NONCOMPLIANCE.—If a timely written de-
termination of noncompliance is made under para-
graph (2), the Postal Regulatory Commission shall 
take the following appropriate action. If the require-
ments for coverage of attributable costs specified by 
this chapter are not met, the Commission shall, 
within 60 days after the determination, prescribe re-
medial action to restore compliance as soon as prac-
ticable, including the full restoration of revenue 
shortfalls during the following year. The Commission 
may order the Postal Service to discontinue a non-
postal service under section 3703 that persistently 
fails to meet cost coverage requirements. 
‘‘(4) DELIBERATE
NONCOMPLIANCE.—In the 
case of deliberate noncompliance by the Postal Serv-
ice with the requirements of this chapter, the Postal 
Regulatory Commission may order, based on the na-
ture, 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 gen-
eral fund of the Treasury. 
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‘‘(f) REGULATIONS REQUIRED.—The Postal Regu-
latory Commission shall issue such regulations as are nec-
essary to carry out this section.’’. 
(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— 
(A) in paragraph (2), by inserting after 
‘‘subsection’’ the following: ‘‘, or any nonpostal 
products or services authorized by chapter 37’’; 
and 
(B) by adding at the end the following: 
‘‘(6) Licensing which, before the date of enactment 
of this paragraph, has been authorized by the Postal Reg-
ulatory Commission for continuation as a nonpostal serv-
ice may not be used for any purpose other than— 
‘‘(A) to continue to provide licensed mailing, 
shipping, or stationery supplies offered as of June 
23, 2011; or 
‘‘(B) to license other goods, products, or serv-
ices, the primary purpose of which is to promote and 
enhance the image or brand of the Postal Service. 
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‘‘(7) Nothing in this section shall be considered 
to prevent the Postal Service from establishing non-
postal products and services that are expressly au-
thorized 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, pro-
vided directly or through licensing, that are contin-
ued pursuant to section 404(e) of title 39, United 
States Code, shall be considered to be expressly au-
thorized by chapter 37 of such title (as added by 
subsection (a)(1)) and shall be subject to the re-
quirements of such chapter. 
SEC. 205. EFFICIENT AND FLEXIBLE UNIVERSAL POSTAL 
SERVICE. 
(a) CONDITIONS REGARDING DETERMINATIONS FOR 
POST
OFFICE
CLOSURES.—Clause 
(i) 
of 
section 
404(d)(2)(A) of title 39, United States Code, is amended 
to read as follows: 
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‘‘(i) the effect of such closing or consolida-
tion on the community served by such post of-
fice, including through an analysis of— 
‘‘(I) the distance (as measured by 
public roads) to the closest postal retail fa-
cility not proposed for closure or consolida-
tion under such plan; 
‘‘(II) the characteristics of such loca-
tion, including weather and terrain; 
‘‘(III) whether commercial mobile 
service (as defined in section 332 of the 
Communications Act of 1934) and com-
mercial mobile data service (as defined in 
section 6001 of the Middle Class Tax Re-
lief and Job Creation Act of 2012) are 
available in at least 80 percent of the total 
geographic area of the ZIP codes served by 
the postal retail facility proposed for clo-
sure or consolidation; and 
‘‘(IV) whether fixed broadband Inter-
net access service is available to households 
in at least 80 percent of such geographic 
area at speeds not less than those suffi-
cient 
for 
service 
to 
be 
considered 
broadband for purposes of the most recent 
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report of the Federal Communications 
Commission under section 706 of the Tele-
communications Act of 1996;’’. 
(b) PRC REVIEW OF DETERMINATIONS TO CLOSE 
OR CONSOLIDATE A POST OFFICE.— 
(1) 
DEADLINE
FOR
REVIEW.—Section 
404(d)(5) title 39, United States Code, is amended 
by striking ‘‘120 days’’ and inserting ‘‘60 days, or 
a longer period for good cause shown but in no event 
longer than 120 days,’’. 
(2) APPLICABILITY.—The amendment made by 
paragraph (1) shall not apply with respect to an ap-
peal received by the Postal Regulatory Commission 
before the date of enactment of this Act (as deter-
mined applying the rules set forth in section 
404(d)(6) of such title). 
(c) EXPEDITED PROCEDURES.— 
(1) IN
GENERAL.—Section 3661 of title 39, 
United States Code, is amended by adding at the 
end the following: 
‘‘(d)(1) The Commission shall issue its opinion within 
90 days, or a longer period for good cause shown but in 
no event longer than 120 days, after the receipt of any 
proposal (as referred to in subsection (b)) concerning an 
identical or substantially identical proposal on which the 
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Commission has issued an opinion within the preceding 
5 years. 
‘‘(2) If necessary in order to comply with the 90-day 
requirement under paragraph (1), the Commission may 
apply expedited procedures which the Commission shall by 
regulation prescribe.’’. 
(2) REGULATIONS.—The Postal Regulatory 
Commission shall prescribe any regulations nec-
essary to carry out the amendment made by para-
graph (1) within 90 days after the date of enact-
ment of this Act. 
(3) APPLICABILITY.—The amendment made by 
this subsection shall apply with respect to any pro-
posal received by the Postal Regulatory Commission 
on or after the earlier of— 
(A) the 90th day after the date of enact-
ment of this Act; or 
(B) the effective date of the regulations 
under paragraph (2). 
(d) ALTERNATE POSTAL ACCESS CHOICE.—Section 
404(d) of title 39, United States Code, is amended by 
striking paragraph (1) and inserting the following: 
‘‘(1) The Postal Service, prior to making a de-
termination under subsection (a)(3) as to the neces-
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sity for the closing or consolidation of any post of-
fice, shall— 
‘‘(A) provide adequate notice of its inten-
tion to close or consolidate such post office at 
least 60 days prior to the proposed date of such 
closing or consolidation to postal patrons served 
by such post office; 
‘‘(B) conduct a nonbinding survey on the 
proposed closing or consolidation to allow postal 
patrons served by such post office an oppor-
tunity to indicate their preference between or 
among— 
‘‘(i) the closing or consolidation; and 
‘‘(ii) 1 or more alternative options; 
and 
‘‘(C) ensure that— 
‘‘(i) should the closure or consolida-
tion of a postal retail facility be deemed 
necessary, it shall be the policy of the 
Postal Service to provide alternative access 
to postal services to those served by the 
postal retail facility by the option chosen 
by the highest number of survey respond-
ents under subparagraph (B)(ii); and 
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‘‘(ii) if the Postal Service is unable to 
provide alternative access through the op-
tion identified in clause (i), or if that op-
tion is cost prohibitive, the Postal Service 
may provide alternative access through a 
different means. Upon selection of an al-
ternative access method other than the one 
identified by clause (i), the Postal Service 
must provide written notice to those pa-
trons served by the postal retail facility 
identifying and explaining why the option 
identified by clause (i) was not possible or 
cost prohibitive.’’. 
(e) APPLICABILITY OF PROCEDURES RELATING TO 
CLOSURES AND CONSOLIDATIONS.— 
(1) IN GENERAL.—Section 404(d) of title 39, 
United States Code, is further amended by adding 
at the end the following: 
‘‘(7) For purposes of this subsection, the term ‘post 
office’ means a post office and any other facility described 
in section 2(2) of the Postal Service Reform Act of 
2016.’’. 
(2) EFFECTIVE DATE.—In the case of any post 
office (within the meaning of the amendment made 
by paragraph (1)) which, but for such amendment, 
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would not otherwise be subject to section 404(d) of 
title 39, United States Code, the amendment made 
by subsection (a) shall be effective with respect to 
any closure or consolidation, the proposed effective 
date of which occurs on or after the 60th day fol-
lowing the date of enactment of this Act. 
(f) ENHANCED REPORTING ON POSTAL SERVICE EF-
FICIENCY.—Section 3652(a) of title 39, United States 
Code, is amended— 
(1) in paragraph (1), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (2)(B)(ii), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(3) by adding after paragraph (2) the following: 
‘‘(3) which shall provide the overall change in 
Postal Service productivity and the resulting effect 
of such change on overall Postal Service costs during 
such year, using such methodologies as the Commis-
sion shall by regulation prescribe, if necessary.’’. 
(g) POSTPLAN STUDY.— 
(1) IN GENERAL.—Beginning not later than 30 
days after the date of enactment of this Act, the In-
spector General of the Postal Community shall con-
duct a 1-year review to study of the impacts of the 
POSTPlan post office restructuring plan on Postal 
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Service expenses, revenue, and retail service provi-
sion. 
(2) CONTENT.—In conducting the review under 
paragraph (1), the Inspector General shall exam-
ine— 
(A) changes in the costs for the provision 
of Postal Service operated retail service, both 
nationwide and in the aggregate for each of the 
Level 2, Level 4, Level 6, and Level 18 post of-
fices for which the hours, functions, or respon-
sibilities changed as a result of the POSTPlan 
initiative before and after the implementation of 
the POSTPlan initiative; 
(B) changes in revenue received by Postal 
Service operated retail service, both nationwide 
and in the aggregate for each of the Level 2, 
Level 4, Level 6, and Level 18 post offices for 
which the hours, functions, or responsibilities 
changed as a result of the POSTPlan initiative 
before and after the implementation of the 
POSTPlan initiative; 
(C) a determination of the relative cost 
savings, taking into account any changes in rev-
enue earned, realized on an annual basis for 
Level 2, Level 4, Level 6, and Level 18 offices 
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each in the aggregate and any trends in such 
cost savings; 
(D) the relative impact on retail access to 
postal services for individuals served by Level 2, 
Level 4, Level 6, and Level 18 offices each in 
the aggregate; and 
(E) any other factors the Inspector Gen-
eral determines appropriate. 
(3) REPORT
AND
RECOMMENDATIONS.—Upon 
completion of the review required under paragraph 
(1), the Inspector General shall submit to the Postal 
Service, the Committee on Homeland Security and 
Governmental Affairs of the Senate, and the Com-
mittee on Oversight and Government Reform of the 
House of Representatives a report containing— 
(A) the results of the review; and 
(B) any recommendations resulting from 
such review. 
(4) POSTAL
SERVICE
REVIEW.—Prior to any 
hour changes or consolidation decisions related to 
POSTPlan initiative impacted post offices, the Post-
al Service shall— 
(A) review the report and any rec-
ommendations submitted pursuant to para-
graph (3); and 
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(B) revise any planned efforts regarding 
the POSTPlan initiative, as appropriate. 
SEC. 206. FAIR STAMP-EVIDENCING COMPETITION. 
Section 404a(a) of title 39, United States Code, is 
further amended— 
(1) in paragraph (2), by striking ‘‘or’’ at the 
end; 
(2) in paragraph (3) by striking the period and 
inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(4) offer to the public any postage-evidencing 
product or service that does not comply with any 
rule or regulation that would be applicable to such 
product or service if the product or service were of-
fered by a private company.’’. 
SEC. 207. MARKET-DOMINANT RATES. 
(a) ESTABLISHMENT OF RATE BASELINE.—Notwith-
standing any order of the Postal Regulatory Commission 
to the contrary— 
(1) no earlier than the first Sunday after the 
date of enactment of this Act, on a date selected by 
the Postmaster General in the exercise of the Post-
master General’s unreviewable discretion, the Postal 
Service shall reinstate, as nearly as is practicable, 50 
percent of the rate surcharge implemented under 
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section 3622(d)(1)(G) (as redesignated by this Act) 
that was in effect on April 9, 2016; and 
(2) the partially reinstated surcharge reinstated 
pursuant to paragraph (1) shall be considered a part 
of the rate base for purposes of determining the per-
centage changes in rates when the Postal Service 
files a notice of rate adjustment. 
(b) SUBSEQUENT RATE INCREASES.—The reinstate-
ment described under subsection (a)(1) may not affect the 
calculation of the Postal Service’s maximum rate adjust-
ment authority under subpart C of Part 3010 of title 39, 
Code of Federal Regulations, for purposes of any rate in-
crease that occurs following such reinstatement. 
(c) POSTAL REGULATORY COMMISSION AUTHORITY 
NOT AFFECTED.—Nothing in this section shall be con-
strued as affecting the authority of the Postal Regulatory 
Commission to, by regulation, make such modification or 
adopt such alternative system for regulating rates and 
classes for market-dominant products as provided under 
section 3622 of title 39, United States Code. 
(d) EXIGENCY APPEAL TERMINATED.—The Postal 
Service— 
(1) shall withdraw its judicial appeal concerning 
the rates previously established pursuant to section 
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3622(d)(1)(G) (as redesignated by this Act) of title 
39, United States Code; and 
(2) may not institute or maintain an additional 
rate increase pursuant to section 3622(d)(1)(G) (as 
redesignated by this Act) of title 39, United States 
Code, predicated upon the same extraordinary or ex-
ceptional circumstances upon which rates have pre-
viously been increased pursuant to such section. 
SEC. 208. COMPLETION OF INITIAL RATE REGULATION RE-
VIEW. 
The Postal Regulatory Commission shall complete 
the initial review of the system for regulating rates and 
classes for market-dominant products established under 
section 3622 of title 39, United States Code, such that 
a final rule or rules regarding a revised or reapproved sys-
tem for regulating rates and classes for market-dominant 
products is issued not later than January 1, 2018. 
SEC. 209. REVIEW OF POSTAL SERVICE COST ATTRIBUTION 
GUIDELINES. 
Not later than April 1, 2018, 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 revi-
sions are appropriate to ensure that all direct and indirect 
costs attributable to competitive and market-dominant 
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products are properly attributed to those products, includ-
ing by considering the underlying methodologies in deter-
mining 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. 210. AVIATION SECURITY FOR PARCELS. 
(a) IN GENERAL.—Chapter 54 of title 39, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 5404. Aviation security for parcels 
‘‘A parcel carried by an air carrier or foreign air car-
rier (as those terms are defined in section 40102(a) of 
title 49) shall— 
‘‘(1) use postage that has been generated by a 
postage evidencing system that has been validated 
under level 4 of the 140 series of the Federal Infor-
mation Processing Standards; or 
‘‘(2) 
be 
entered 
with 
in 
person 
sender 
verification.’’. 
(b) TECHNICAL AMENDMENT.—Section 5401(b) of 
title 39, United States Code, is amended by inserting ‘‘or 
5404’’ after ‘‘in section 5402’’. 
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(c) CONFORMING AMENDMENT.—The table of sec-
tions for chapter 54 of title 39, United States Code, is 
amended by adding at the end the following: 
‘‘5404. Aviation security for parcels.’’. 
SEC. 211. ZIP CODES. 
Not later than September 30, 2017, the Postal Serv-
ice shall designate a single, unique ZIP code for, as nearly 
as practicable, each of the following communities: 
(1) Miami Lakes, Florida. 
(2) Storey County, Nevada. 
(3) Flanders, Northampton, and Riverside in 
the Town of Southampton, New York. 
TITLE III—POSTAL SERVICE 
PERSONNEL 
SEC. 301. POSTAL SERVICE CHIEF INNOVATION OFFICER. 
(a) IN GENERAL.—Chapter 2 of title 39, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 209. Chief Innovation Officer 
‘‘(a) IN GENERAL.—There is established within the 
Postal Service the position of Chief Innovation Officer, ap-
pointed by the Postmaster General, who shall manage the 
Postal Service’s development and implementation of inno-
vative postal and nonpostal products and services. 
‘‘(b) DUTIES.—The primary duties of the Chief Inno-
vation Officer are as follows: 
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111 
tracting unit readily available and accessible on the 
Web site of the covered postal entity. 
‘‘(2) EFFECTIVE DATE.—This paragraph shall 
apply to any delegation of authority made on or 
after the date that is 30 days after the date of en-
actment of this chapter. 
‘‘§ 703. Posting of noncompetitive purchase requests 
for noncompetitive contracts 
‘‘(a) POSTING REQUIRED.— 
‘‘(1) POSTAL REGULATORY COMMISSION.—The 
Postal Regulatory Commission shall make the non-
competitive purchase request for any noncompetitive 
award for any contract (including any agreement or 
memorandum of understanding) entered into by the 
Postal Regulatory Commission for the procurement 
of goods and services, in an amount of $20,000 or 
more, including the rationale supporting the non-
competitive award, publicly available on the Web site 
of the Postal Regulatory Commission— 
‘‘(A) not later than 14 days after the date 
of the award of the noncompetitive contract; or 
‘‘(B) not later than 30 days after the date 
of the award of the noncompetitive contract, if 
the basis for the award was a compelling busi-
ness interest. 
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