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‘‘(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 car-
rier in providing health services to, paying for 
health services provided to, or reimbursing ex-
penses for health services provided to, annu-
itants of the United States Postal Service and 
any other persons covered under the enrollment 
of such annuitants; and 
‘‘(B) an amount of indirect expenses rea-
sonably 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 pay-
ment required from the Postal Service under section 
8909a of title 5, United States Code, as in effect on 
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the day before the date of enactment of this Act that 
remains unpaid as of such date of enactment is can-
celed. 
(2) EFFECT OF THIS ACT.—In any determina-
tion 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 ac-
count 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: 
‘‘§ 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.’’. 
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(2) CLERICAL AMENDMENT.—The table of sec-
tions 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. 
‘‘§ 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. 
‘‘§ 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; 
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‘‘(2) the term ‘costs attributable’ has the mean-
ing given such term in section 3631; 
‘‘(3) the term ‘year’ means a fiscal year; 
‘‘(4) 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; 
‘‘(5) 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; 
‘‘(6) the term ‘tribal government’ means the 
government of an Indian tribe, as that term is de-
fined 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 
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Islands, and any other territory or possession of the 
United States. 
‘‘§ 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 or nonpostal services to the public on be-
half 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 qual-
ity 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 
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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 en-
hanced value to the public, and terms of reimburse-
ment 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— 
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‘‘(1) described in section 410(c); or 
‘‘(2) exempt from public disclosure under sec-
tion 552(b) of title 5. 
‘‘§ 3704. Postal Service program for other Govern-
ment agencies 
‘‘The Postal Service may establish a program to pro-
vide 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 non-
postal services provided by the Postal Service in each year 
to such agencies. 
‘‘§ 3705. Transparency and accountability for non-
postal 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 qual-
ity of service for each agreement or substantially 
similar set of agreements for the provision of prop-
erty or nonpostal services under section 3703 or the 
program as a whole under section 3704, and any 
other nonpostal service authorized under this chap-
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ter, using such methodologies as the Commission 
may prescribe, and in sufficient detail to dem-
onstrate 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; 
‘‘(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. 
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‘‘(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, products, or services under this chap-
ter 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 Regu-
latory Commission. 
‘‘(d) CONFIDENTIAL INFORMATION.— 
‘‘(1) IN GENERAL.—If the Postal Service deter-
mines that any document or portion of a document, 
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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.— 
‘‘(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 
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‘‘(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 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 in-
cluded with the annual compliance determination re-
quired under section 3653. 
‘‘(3) NONCOMPLIANCE.—If a timely written de-
termination of noncompliance is made under para-
graph (2), the Postal Regulatory Commission shall 
take appropriate action. If the requirements for cov-
erage of costs attributable specified by this chapter 
are not met, the Commission shall, within 60 days 
after the determination, prescribe remedial action to 
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