270 
dial action (including revising the fi-
nancial plan and budget pursuant to 
section 202(e)) to correct the incon-
sistency which the Authority finds 
reasonable and appropriate, taking 
into account the terms of the finan-
cial plan and budget. 
(d) EFFECT OF CERTIFICATION.—If the Au-
thority certifies to the Secretary of the Treas-
ury that a variance exists, the Authority or 
the Secretary may withhold access by the 
Postal Service to additional supplementary 
debt authorized by this title. 
SEC. 226. RECOMMENDATIONS REGARDING FINANCIAL 
STABILITY, ETC. 
(a) IN GENERAL.—The Authority may at 
any time submit recommendations to the 
Postmaster General, the President, and Con-
gress on actions the Postal Service or any 
other entity of the Federal Government 
should take to ensure compliance by the Post-
al Service with a financial plan and budget or 
to otherwise promote the financial stability, 
management responsibility, and service deliv-
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271 
ery efficiency of the Postal Service, including 
recommendations relating to— 
(1) the management of the Postal 
Service’s financial affairs, including cash 
forecasting, information technology, plac-
ing controls on expenditures for per-
sonnel, reducing benefit costs, reforming 
procurement practices, and placing other 
controls on expenditures; 
(2) the relationship between the Post-
al Service and other entities of the Fed-
eral Government; 
(3) the structural relationship of sub-
divisions within the Postal Service; 
(4) the modification of existing rev-
enue structures, or the establishment of 
additional revenue structures; 
(5) the establishment of alternatives 
for meeting obligations to pay for the 
pensions and retirement benefits of cur-
rent and future Postal Service retirees; 
(6) modifications of services which 
are the responsibility of and are deliv-
ered by the Postal Service; 
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272 
(7) modifications of the types of serv-
ices which are delivered by entities other 
than the Postal Service under alternative 
service delivery mechanisms; 
(8) the effects of Federal Government 
laws and court orders on the operations 
of the Postal Service; 
(9) the increased use of a personnel 
system for employees of the Postal Serv-
ice which is based upon employee per-
formance standards; and 
(10) the improvement of personnel 
training and proficiency, the adjustment 
of staffing levels, and the improvement of 
training and performance of management 
and supervisory personnel. 
(b) RESPONSE
TO RECOMMENDATIONS
FOR 
ACTIONS WITHIN AUTHORITY OF POSTAL SERV-
ICE.— 
(1) IN
GENERAL.—In the case of any 
recommendations submitted under sub-
section (a) during a control period which 
are within the authority of the Postal 
Service to adopt, not later than 90 days 
after receiving the recommendations, the 
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273 
Postmaster General shall submit a state-
ment to the Authority, the President, and 
Congress which provides notice as to 
whether the Postal Service will adopt the 
recommendations. 
(2) IMPLEMENTATION
PLAN
REQUIRED 
FOR
ADOPTED
RECOMMENDATIONS.—If the 
Postmaster General notifies the Author-
ity and Congress under paragraph (1) 
that the Postal Service will adopt any of 
the recommendations submitted under 
subsection (a), the Postmaster General 
shall include in the statement a written 
plan to implement the recommendation 
which includes— 
(A) specific performance meas-
ures to determine the extent to which 
the Postal Service has adopted the 
recommendation; and 
(B) a schedule for auditing the 
Postal Service’s compliance with the 
plan. 
(3) EXPLANATIONS REQUIRED FOR REC-
OMMENDATIONS NOT ADOPTED.—If the Post-
master General notifies the Authority, 
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274 
the President, and Congress under para-
graph (1) that the Postal Service will not 
adopt any recommendation submitted 
under subsection (a) which the Postal 
Service has authority to adopt, the Post-
master General shall include in the state-
ment explanations for the rejection of the 
recommendations. 
(c) IMPLEMENTATION
OF
REJECTED
REC-
OMMENDATIONS BY AUTHORITY.— 
(1) IN
GENERAL.—If the Postmaster 
General notifies the Authority, the Presi-
dent, and Congress under subsection 
(b)(1) that the Postal Service will not 
adopt any recommendation submitted 
under subsection (a) which the Postal 
Service has authority to adopt, the Au-
thority may by a majority vote of its 
members take such action concerning the 
recommendation as it deems appropriate, 
after consulting with the Committee on 
Oversight and Government Reform of the 
House of Representatives and the Com-
mittee on Homeland Security and Gov-
ernmental Affairs of the Senate. 
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275 
(2) EFFECTIVE DATE.—This subsection 
shall apply with respect to recommenda-
tions of the Authority made after the ex-
piration of the 6-month period which be-
gins on the date of the commencement of 
a control period. 
SEC. 227. SPECIAL RULES FOR FISCAL YEAR IN WHICH 
CONTROL PERIOD COMMENCES. 
(a) ADOPTION OF TRANSITION BUDGET.—Not-
withstanding any provision of section 223 to 
the contrary, in the case of a fiscal year in 
which a control period commences, the fol-
lowing rules shall apply: 
(1) Not later than 45 days after the 
appointment of its members, the Author-
ity shall review the proposed Integrated 
Financial Plan for the Postal Service for 
such fiscal year and shall submit any rec-
ommendations for modifications to such 
plan to promote the financial stability of 
the Postal Service to the Postmaster Gen-
eral, the President, and Congress. 
(2) Not later than 15 days after re-
ceiving the recommendations of the Au-
thority submitted under paragraph (1), 
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