(i) 1 member shall be appointed for a 
term of 1 year; 
(ii) 2 members shall be appointed for 
a term of 2 years; and 
(iii) 2 members shall be appointed for 
a term of 3 years. 
(C) VACANCIES
AND
SUCCESSION.—Any 
member of the Authority appointed to fill a va-
cancy before the expiration of the term for 
which the predecessor of the member of the Au-
thority was appointed shall serve for the re-
mainder of such term. 
(D) REMOVAL.—The President may re-
move any member of the Authority only for 
cause. 
(E) COMPENSATION FOR SERVICE.—Each 
member of the Authority shall be paid for full- 
time service at a rate of pay equivalent to the 
rate of basic pay payable for level III of the Ex-
ecutive Schedule under section 5314 of title 5, 
United States Code. 
(b) QUALIFICATION REQUIREMENTS.— 
(1) IN
GENERAL.—An individual meets the 
qualifications for membership on the Authority if the 
individual— 
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(A) has significant knowledge and exper-
tise in finance, management, and the organiza-
tion or operation of businesses having more 
than 500 employees; and 
(B) represents the public interest gen-
erally, is not a representative of specific inter-
ests using or belonging to the Postal Service, 
and does not have any business or financial in-
terest in any enterprise in the private sector of 
the economy engaged in the delivery of mail 
matter. 
(2) SPECIFIC CONDITIONS.—An individual shall 
not be considered to satisfy paragraph (1)(B) if, at 
any time during the 5-year period ending on the 
date of appointment, such individual— 
(A) has been an officer, employee, or pri-
vate contractor with the Postal Service, United 
States Postal Service Inspector General, or the 
Postal Regulatory Commission; or 
(B) has served as an employee or con-
tractor of a labor organization representing em-
ployees of the Postal Service, the United States 
Postal Service Inspector General, or the Postal 
Regulatory Commission. 
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SEC. 204. ORGANIZATION AND STAFF. 
(a) ADOPTION OF BYLAWS FOR CONDUCTING BUSI-
NESS.—As soon as practicable after the appointment of 
its members, the Authority shall adopt bylaws, rules, and 
procedures governing its activities under this subtitle, in-
cluding procedures for hiring experts and consultants. 
Upon adoption, such bylaws, rules, and procedures shall 
be submitted by the Authority to the Postmaster General, 
the President, and Congress. 
(b) EXECUTIVE DIRECTOR AND STAFF.— 
(1) EXECUTIVE
DIRECTOR.—The Authority 
shall have an Executive Director who shall be ap-
pointed by the Chair with the consent of the Author-
ity. The Executive Director shall be paid at a rate 
determined by the Authority, except that such rate 
may not exceed the rate of basic pay payable for 
level IV of the Executive Schedule under section 
5315 of title 5, United States Code. 
(2) STAFF.—With the approval of the Author-
ity, the Executive Director may appoint and fix the 
pay of such additional personnel as the Executive 
Director considers appropriate, except that no indi-
vidual appointed by the Executive Director may be 
paid at a rate greater than the rate of pay for the 
Executive Director. Personnel appointed under this 
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paragraph shall serve at the pleasure of the Execu-
tive Director. 
(3) INAPPLICABILITY OF CERTAIN CIVIL SERV-
ICE LAWS.—The Executive Director and staff of the 
Authority may be appointed without regard to the 
provisions of title 5, United States Code, governing 
appointments in the competitive service, and paid 
without regard to the provisions of chapter 51 and 
subchapter III of chapter 53 of such title relating to 
classification and General Schedule pay rates. 
(4) STAFF OF FEDERAL AGENCIES.—Upon re-
quest of the Chair, the head of any Federal depart-
ment or agency may detail, on a reimbursable or 
nonreimbursable basis, any of the personnel of such 
department or agency to the Authority to assist it 
in carrying out its duties under this subtitle. 
SEC. 205. FUNDING. 
(a) GENERAL RULE.—There are authorized to be ap-
propriated, out of the Postal Service Fund, such sums as 
may be necessary for the Authority. In requesting an ap-
propriation under this section for a fiscal year, the Au-
thority shall prepare and submit to the Congress under 
section 2009 of title 39, United States Code, a budget of 
the Authority’s expenses, including expenses for facilities, 
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supplies, compensation, and employee benefits, not to ex-
ceed $10,000,000. 
(b) INITIAL RULE.—Notwithstanding any other pro-
vision of this section, effective as of the date on which 
at least 4 members of the Authority have been appointed, 
there shall be available to the Authority, out of the Postal 
Service Fund, such sums as the Authority may require 
in order to carry out this subtitle, not to exceed the 
amount equal to the product obtained by multiplying— 
(1) the dollar amount specified in subsection 
(a), times 
(2) a fraction— 
(A) the numerator of which is the number 
of months remaining in the fiscal year as of the 
date on which at least 4 members of the Au-
thority have been appointed (rounding any frac-
tion of a month to the next highest whole num-
ber); and 
(B) the denominator of which is 12. 
(c) AMENDMENT TO SECTION 2009.—Section 2009 
is amended in the next to last sentence— 
(1) by striking ‘‘, and (3)’’ and inserting ‘‘, 
(3)’’; and 
(2) by striking the period and inserting ‘‘, and 
(4) the Postal Service Financial Responsibility and 
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Management Assistance Authority requests to be ap-
propriated, out of the Postal Service Fund, under 
section 205 of the Postal Reform Act of 2013.’’. 
SEC. 206. RESPONSIBILITIES AND POWERS. 
The exercise of the powers of the Postal Service shall 
be directed by the Authority, including— 
(1) all duties and responsibilities ascribed to the 
Governors and the Board of Governors by title 39, 
United States Code; 
(2) determining the overall strategies of the 
Postal Service; 
(3) hiring, monitoring, compensating, and, 
when necessary, replacing senior management at the 
level of vice president and higher, as well as ensur-
ing adequate succession planning for these positions; 
(4) approving major policies, particularly those 
that have an important effect on the Postal Service’s 
financial position and the provision of universal 
postal service; 
(5) approving corporate budgets, financial and 
capital plans, operational and service performance 
standards and targets, human resource strategies, 
collective-bargaining strategies, negotiation param-
eters, collective-bargaining agreements, and the com-
pensation structure for nonbargaining employees; 
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(6) formulating and communicating organiza-
tional policy and positions on legislative and other 
public policy matters to Congress and the public; 
and 
(7) carrying out any responsibility, not other-
wise listed in this section, that was the responsibility 
of the Board of Governors of the Postal Service at 
any time during the 5-year period ending on the 
date of enactment of this Act. 
SEC. 207. DEVELOPMENT OF FINANCIAL PLAN AND BUDG-
ET FOR THE SOLVENCY OF THE POSTAL 
SERVICE. 
(a) DEVELOPMENT OF FINANCIAL PLAN AND BUDG-
ET.—For each fiscal year during a control period, the 
Postmaster General shall submit to the Authority, by Au-
gust 1 before the start of such fiscal year, a financial plan 
and budget for such fiscal year for the long-term solvency 
of the Postal Service, except that, for fiscal year 2014, 
the deadline for submission of the plan and budget under 
this subsection shall be the 30th day after a majority of 
the Authority take office. If a majority of the Authority 
do not take office before August 1, 2014, the requirement 
for a financial plan and budget under this subsection for 
fiscal year 2014 is waived. 
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(b) CONTENTS OF FINANCIAL PLAN AND BUDGET.— 
A financial plan and budget under this section for a fiscal 
year shall specify the budget for the Postal Service as re-
quired by section 2009 of title 39, United States Code, 
for the applicable fiscal year and each of the next 3 fiscal 
years, in accordance with the following requirements: 
(1) The financial plan and budget shall meet 
the requirements described in subsection (c) to pro-
mote the financial stability of the Postal Service. 
(2) The financial plan and budget shall— 
(A) include the Postal Service’s annual 
budget program (under section 2009 of title 39, 
United States Code) and the Postal Service’s 
plan commonly referred to as its ‘‘Integrated 
Financial Plan’’; 
(B) describe lump-sum expenditures by all 
categories traditionally used by the Postal Serv-
ice; 
(C) describe capital expenditures (together 
with a schedule of projected capital commit-
ments and cash outlays of the Postal Service 
and proposed sources of funding); 
(D) contain estimates of overall debt (both 
outstanding and anticipated to be issued); and 
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(E) contain cash flow and liquidity fore-
casts for the Postal Service at such intervals as 
the Authority may require. 
(3) The financial plan and budget shall include 
a statement describing methods of estimations and 
significant assumptions. 
(4) The financial plan and budget shall include 
any other provisions and shall meet such other cri-
teria as the Authority considers appropriate to meet 
the purposes of this subtitle, including provisions 
for— 
(A) changes in personnel policies and levels 
for each component of the Postal Service; and 
(B) management initiatives to promote 
productivity, improvement in the delivery of 
services, or cost savings. 
(c) REQUIREMENTS TO PROMOTE FINANCIAL STA-
BILITY.— 
(1) IN
GENERAL.—The requirements to pro-
mote the solvency and financial stability of the Post-
al Service applicable to the financial plan and budget 
for a fiscal year are as follows: 
(A) For fiscal year 2016 and each subse-
quent fiscal year during a control period, budg-
eted expenditures of the Postal Service for the 
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fiscal year involved may not exceed budgeted 
revenues of the Postal Service for the fiscal 
year involved. 
(B) In each fiscal year where a financial 
plan and budget must be developed, the finan-
cial plan and budget shall provide for contin-
uous, substantial progress toward long-term fis-
cal solvency of the Postal Service. 
(C) The financial plan and budget shall 
provide for the orderly repayment of any out-
standing obligations authorized under section 
503. 
(D) The financial plan and budget shall 
assure the continuing long-term solvency of the 
Postal Service, as indicated by factors such as 
the efficient management of the Postal Service’s 
workforce and the effective provision of services 
by the Postal Service. In so doing, the financial 
plan and budget shall consider— 
(i) the legal authority of the Postal 
Service; 
(ii) the changes in the legal authority 
and responsibilities of the Postal Service 
under this Act; 
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(iii) any cost savings that the Postal 
Service anticipates will be achieved through 
negotiations with employees of the Postal 
Service; 
(iv) projected changes in mail volume; 
(v) the impact of regulations the Post-
al Service was required by law to promul-
gate; 
(vi) projected changes in the number 
of employees needed to carry out the re-
sponsibilities of the Postal Service; and 
(vii) the long-term capital needs of the 
Postal Service, including the need to main-
tain, repair, and replace facilities and 
equipment. 
(2) APPLICATION OF SOUND BUDGETARY PRAC-
TICES.—In meeting the requirements described in 
paragraph (1) with respect to a financial plan and 
budget for a fiscal year, the Postal Service shall 
apply sound budgetary practices, including reducing 
costs and other expenditures, improving productivity, 
increasing revenues, or a combination of such prac-
tices. 
(3) ASSUMPTIONS BASED ON CURRENT LAW.— 
In meeting the requirements described in paragraph 
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(1) with respect to a financial plan and budget for 
a fiscal year, the Postal Service shall base estimates 
of revenues and expenditures on Federal law as in 
effect at the time of the preparation of such finan-
cial plan and budget. 
(d) DEFINITION.—For the purposes of this section, 
the term ‘‘long-term solvency’’ means the ability of the 
Postal Service over the long term to pay debts and meet 
expenses, including the ability to perform maintenance 
and repairs, make investments, and maintain financial re-
serves, as necessary to fulfill the requirements and comply 
with the policies of title 39, United States Code, and other 
obligations of the Postal Service. 
SEC. 208. PROCESS FOR SUBMISSION AND APPROVAL OF FI-
NANCIAL PLAN AND BUDGET. 
(a) REVIEW BY THE AUTHORITY.—Upon receipt of 
a financial plan and budget required by section 207, the 
Authority shall promptly review such financial plan and 
budget. In conducting the review, the Authority may re-
quest any additional information it considers necessary 
and appropriate to carry out its duties. 
(b) APPROVAL OF POSTMASTER GENERAL’S FINAN-
CIAL PLAN AND BUDGET.— 
(1) IN GENERAL.—If the Authority determines 
that the final financial plan and budget for the fiscal 
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year submitted by the Postmaster General under 
subsection (a) meets the requirements of section 
207— 
(A) the Authority shall approve the finan-
cial plan and budget and shall provide the Post-
master General, the President, the Committee 
on Homeland Security and Governmental Af-
fairs in the Senate, and the Committee on 
Oversight and Government Reform in the 
House of Representatives with a notice certi-
fying its approval; and 
(B) the Postmaster General shall promptly 
submit the annual budget program for the rel-
evant fiscal year to the Office of Management 
and Budget pursuant to section 2009 of title 
39, United States Code. 
(2) DEEMED
APPROVAL
AFTER
DAYS.—If 
the Authority has not provided the Postmaster Gen-
eral, the President, and Congress with a notice certi-
fying approval under paragraph (1)(A) or a state-
ment of disapproval under subsection (c) before the 
expiration of the 30-day period which begins on the 
date the Authority receives the financial plan and 
budget from the Postmaster General under sub-
section (a), the Authority shall be deemed to have 
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approved the financial plan and budget and to have 
provided the Postmaster General, the President, the 
Committee on Homeland Security and Governmental 
Affairs in the Senate, and the Committee on Over-
sight and Government Reform in the House of Rep-
resentatives with the notice certifying approval 
under paragraph (1)(A). 
(c) DISAPPROVAL OF POSTMASTER GENERAL’S FI-
NANCIAL PLAN AND BUDGET.— 
(1) IN GENERAL.—If, after reviewing the finan-
cial plan and budget for a fiscal year submitted by 
the Postmaster General under subsection (a) in ac-
cordance with the procedures described in this sec-
tion, the Authority determines that the revised final 
financial plan and budget does not meet the applica-
ble requirements under section 207, the Authority 
shall— 
(A) disapprove the financial plan and 
budget; 
(B) provide the Postmaster General, the 
President, and Congress with a statement con-
taining the reasons for such disapproval and de-
scribing the amount of any shortfall in the fi-
nancial plan and budget; and 
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(C) approve and recommend a financial 
plan and budget for the Postal Service which 
meets the applicable requirements under section 
207, and submit such financial plan and budget 
to the Postmaster General, the President, the 
Committee on Homeland Security and Govern-
mental Affairs in the Senate, and the Com-
mittee on Oversight and Government Reform in 
the House of Representatives. 
(2) SUBMISSION TO OMB.—Upon receipt of the 
recommended financial plan and budget under para-
graph (1)(C), the Postmaster General shall promptly 
submit the recommended annual budget program to 
the Office of Management and Budget pursuant to 
section 2009 of title 39, United States Code. 
(d) DEADLINE FOR TRANSMISSION OF FINANCIAL 
PLAN
AND BUDGET
BY
THE AUTHORITY.—Notwith-
standing any other provision of this section, not later than 
September 30th before the start of each fiscal year for 
which a financial plan and budget is required, the Author-
ity shall— 
(1) provide Congress with a notice certifying its 
approval of the Postmaster General’s financial plan 
and budget for the fiscal year under subsection (c); 
or 
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(2) submit to Congress an approved and rec-
ommended financial plan and budget developed by 
the Authority for the fiscal year under subsection 
(c)(1)(C). 
(e) REVISIONS TO FINANCIAL PLAN AND BUDGET.— 
(1) PERMITTING
POSTMASTER
GENERAL
TO 
SUBMIT REVISIONS.—The Postmaster General may 
submit proposed revisions to the financial plan and 
budget for the control period to the Authority at any 
time during the fiscal year. 
(2) PROCESS
FOR
REVIEW, APPROVAL, DIS-
APPROVAL, AND POSTMASTER GENERAL ACTION.— 
The procedures described in subsections (b), (c), and 
(d) shall apply with respect to a proposed revision to 
a financial plan and budget in the same manner as 
such procedures apply with respect to the original fi-
nancial plan and budget. 
(f) REQUIREMENTS OF THE AUTHORITY.— 
(1) IN GENERAL.—It shall be the policy of the 
Authority to direct the Postal Service to take any 
action necessary and permitted by law to ensure that 
the approved financial plan and budget is fully im-
plemented over the course of each fiscal year and 
that the budgetary goals for expenses and revenues 
are achieved. 
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(2) ADDITIONAL FIDUCIARY ACTIONS.—In addi-
tion to paragraph (1), the Authority shall take any 
additional actions it deems necessary and permitted 
by law to ensure the requirements of the financial 
plan and budget are achieved in practice so that the 
total revenue of the Postal Service exceeds its total 
operating expenses for the full fiscal year not later 
than fiscal year 2016 and each fiscal year thereafter. 
Such actions may include accelerating the conversion 
of door delivery points to more cost-effective delivery 
methods, the consolidation of additional mail proc-
essing facilities, transition to a 2-day or 3-day First- 
Class Mail delivery standard for the continental 
United States, and any other action consistent with 
this Act and the provisions of title 39, United States 
Code. For the purposes of this paragraph, the term 
‘‘total operating expenses’’ refers to all categories of 
expenses identified under that term in the Report on 
Form 10–K filed by the Postal Service for fiscal 
year 2012. 
SEC. 209. DISSOLUTION OF THE AUTHORITY; RECONSTITU-
TION OF THE BOARD OF GOVERNORS. 
(a) IN GENERAL.—Effective as of the date on which 
the control period terminates (as determined under section 
202(b)(5))— 
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(1) the Authority is dissolved; and 
(2) section 202 of title 39, United States Code 
(as amended by section 202(b)(2)(A) of this Act) is 
amended by inserting after the section heading the 
following: 
‘‘(a)(1) The exercise of the power of the Postal Serv-
ice shall be directed by a Board of Governors composed 
of 5 members appointed in accordance with this section. 
The members, to be known as Governors, shall be ap-
pointed by the President, by and with the advice and con-
sent of the Senate. Not more than 3 of the Governors may 
be adherents of the same political party. The Governors 
shall elect a Chairman from among the individual Gov-
ernors. The Governors shall represent the public interest 
generally, and shall be chosen solely on the basis of their 
experience in the field of public administration, law, or ac-
counting, or on their demonstrated ability in managing or-
ganizations or corporations (in either the public or private 
sector) of substantial size; except that at least 3 of the 
Governors shall be chosen solely on the basis of their dem-
onstrated ability in managing organizations or corpora-
tions (in either the public or private sector) that employ 
at least 10,000 employees. The Governors shall not be rep-
resentatives of specific interests using the Postal Service, 
and may be removed only for cause. Each Governor shall 
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receive a salary of $30,000 a year plus $300 a day for 
not more than 42 days of meetings each year and shall 
be reimbursed for travel and reasonable expenses incurred 
in attending meetings of the Board. Nothing in the pre-
ceding sentence shall be construed to limit the number of 
days of meetings each year to 42 days. 
‘‘(2) In selecting the individuals described in para-
graph (1) for nomination for appointment to the position 
of Governor, the President should consult with the Speak-
er of the House of Representatives, the minority leader 
of the House of Representatives, the majority leader of 
the Senate, and the minority leader of the Senate. 
‘‘(3) Not later than 60 days after the end of each 
fiscal year, the Board of Governors shall submit an 
itemized report describing all travel and reimbursable 
business travel expenses paid to each Governor when per-
forming Board duties to the Committee on Oversight and 
Government Reform of the House of Representatives and 
the Committee on Homeland Security and Governmental 
Affairs of the Senate. The report submitted under this 
paragraph shall include a detailed justification for any 
travel or reimbursable business travel expense that devi-
ates from the Board’s travel and reimbursable business 
travel expense policies and guidelines under paragraph 
(1). 
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‘‘(b)(1) The terms of the 5 Governors shall be 7 
years, except that— 
‘‘(A) upon the reconstitution of the Board of 
Governors pursuant to the Postal Reform Act of 
2013— 
‘‘(i) the 5 members last comprising the 
Postal Service Financial Responsibility and 
Management Assistance Authority before the 
termination of the control period (as defined in 
section 202(b)(1) of the Postal Reform Act of 
2013) shall become the initial members of the 
reconstituted Board of Governors; and 
‘‘(ii) the term of each of the 5 respective 
individuals under clause (i) shall expire at the 
end of the term which would have applied with 
respect to that individual, if— 
‘‘(I) the control period (as so defined) 
had not terminated; and 
‘‘(II) such individual had remained a 
member of the Postal Service Financial 
Responsibility and Management Assistance 
Authority; and 
‘‘(B) the terms of the Governors first taking of-
fice after the initial Governors of the reconstituted 
Board (as described in subparagraph (A)) shall be 
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as fixed by the President at the time of their ap-
pointment, except that each such term— 
‘‘(i) shall be for a period of years not less 
than 3 years and not more than 7 years; and 
‘‘(ii) shall be fixed such that the term of 
not more than 1 Governor is thereafter sched-
uled to expire in any calendar year (determined 
disregarding the term of an initial Governor ex-
piring as described in subparagraph (A)(ii)). 
‘‘(2) Any Governor appointed to fill a vacancy before 
the expiration of the term for which his predecessor was 
appointed shall serve for the remainder of such term. A 
Governor may continue to serve after the expiration of his 
term until his successor has qualified, but not to exceed 
1 year. 
‘‘(3) No person may serve more than 14 years as a 
Governor. For purposes of the preceding sentence, there 
shall be taken into account any period served as a member 
of— 
‘‘(A) the Postal Service Financial Responsibility 
and Management Assistance Authority; or 
‘‘(B) the Board of Governors, as constituted be-
fore the start of the control period.’’. 
(b) CONFORMING AMENDMENTS.— 
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(1) Section 102(3) is amended by striking ‘‘9’’ 
and inserting ‘‘5’’; and 
(2) Section 205(c) is amended by striking all 
after ‘‘present, and’’ and inserting ‘‘an absolute ma-
jority of the Governors in office shall constitute a 
quorum for the transaction of business by the 
Board.’’. 
Subtitle B—Other Matters 
SEC. 211. APPOINTMENT OF THE POSTAL SERVICE INSPEC-
TOR GENERAL. 
(a) APPOINTMENT OF INSPECTOR GENERAL OF THE 
POSTAL SERVICE BY PRESIDENT.—The Inspector General 
Act of 1978 (5 U.S.C. App.) is amended— 
(1) in section 8G— 
(A) in subsection (a)— 
(i) in paragraph (2), by striking ‘‘the 
Postal Regulatory Commission, and the 
United States Postal Service’’ and insert-
ing ‘‘and the Postal Regulatory Commis-
sion’’; 
(ii) in paragraph (3), by striking 
‘‘subsection (h)(1)’’ and inserting ‘‘sub-
section (g)(1)’’; and 
(iii) in paragraph (4)— 
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nal investigation performed by the Postal Inspection Serv-
ice. The Chief Postal Inspector shall promptly report the 
significant activities being carried out by the Postal In-
spection Service to such Inspector General. 
‘‘(b) SUPERVISION; ADDITIONAL DUTIES AND RE-
SPONSIBILITIES; REPORT.— 
‘‘(1) AUTHORITY, DIRECTION, AND CONTROL.— 
‘‘(A) 
AUDITS, 
INVESTIGATIONS, 
SUB-
POENAS.—The Inspector General shall be under 
the authority, direction, and control of the Gov-
ernors with respect to audits or investigations, 
or the issuance of subpoenas, which require ac-
cess to sensitive information concerning— 
‘‘(i) ongoing civil or criminal inves-
tigations or proceedings; 
‘‘(ii) undercover operations; 
‘‘(iii) the identity of confidential 
sources, including protected witnesses; 
‘‘(iv) 
intelligence 
or 
counterintel-
ligence matters; or 
‘‘(v) other matters the disclosure of 
which would constitute a serious threat to 
national security. 
‘‘(B) AUTHORITY
OF
GOVERNORS.—With 
respect to the information described under sub-
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paragraph (A), the Governors may prohibit the 
Inspector General from carrying out or com-
pleting any audit or investigation, or from 
issuing any subpoena, after such Inspector Gen-
eral has decided to initiate, carry out, or com-
plete such audit or investigation or to issue 
such subpoena, if the Governors determine that 
such prohibition is necessary to prevent the dis-
closure of any information described under sub-
paragraph (A) or to prevent the significant im-
pairment to the national interests of the United 
States. 
‘‘(C) NOTICE
REQUIRED.—If the Gov-
ernors exercise any power under subparagraph 
(A) or (B), the Governors shall notify the In-
spector General in writing stating the reasons 
for such exercise. Within 30 days after receipt 
of any such notice, the Inspector General shall 
transmit a copy of such notice to the Com-
mittee on Homeland Security and Govern-
mental Affairs of the Senate and the Committee 
on Oversight and Government Reform of the 
House of Representatives, and to other appro-
priate committees or subcommittees of the Con-
gress. 
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‘‘(2) ADDITIONAL
DUTIES
AND
RESPONSIBIL-
ITIES.—In carrying out the duties and responsibil-
ities specified in this Act, the Inspector General— 
‘‘(A) may initiate, conduct, and supervise 
such audits and investigations in the United 
States Postal Service as the Inspector General 
considers appropriate; and 
‘‘(B) shall give particular regard to the ac-
tivities of the Postal Inspection Service with a 
view toward avoiding duplication and insuring 
effective coordination and cooperation. 
‘‘(3) REPORT REQUIRED.—Any report required 
to be transmitted by the Governors to the appro-
priate committees or subcommittees of the Congress 
under section 5(d) shall also be transmitted, within 
the seven-day period specified under such section, to 
the Committee on Homeland Security and Govern-
mental Affairs of the Senate and the Committee on 
Oversight and Government Reform of the House of 
Representatives. 
‘‘(c) GOVERNORS DEFINED.—As used in this section, 
the term ‘Governors’ has the meaning given such term by 
section 102(3) of title 39, United States Code. 
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated, out of the Postal Serv-
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ice Fund, such sums as may be necessary for the Office 
of Inspector General of the United States.’’; and 
(3) in section 12— 
(A) in paragraph (1), by striking ‘‘or the 
Federal Cochairpersons of the Commissions es-
tablished under section 15301 of title 40, 
United States Code’’ and inserting ‘‘the Federal 
Cochairpersons of the Commissions established 
under section 15301 of title 40, United States 
Code; or the Board of Governors of the United 
States Postal Service’’; and 
(B) in paragraph (2), by striking ‘‘or the 
Commissions established under section 15301 
of title 40, United States Code’’ and inserting 
‘‘the Commissions established under section 
15301 of title 40, United States Code, or the 
United States Postal Service’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
Title 39, United States Code, is amended— 
(1) in section 102(4), by striking ‘‘section 
202(e) of this title’’ and inserting ‘‘section 3 of the 
Inspector General Act of 1978 (5 U.S.C. App.)’’; 
(2) in section 1001(b), in the first sentence, by 
inserting ‘‘and section 3 of the Inspector General 
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Act of 1978 (5 U.S.C. App.)’’ after ‘‘1001(c) of this 
title’’; 
(3) in section 1003(a), by striking ‘‘8G’’ and in-
serting ‘‘8M’’; 
(4) in section 1005(a)(3), by inserting ‘‘and 
section 3 of the Inspector General Act of 1978 (5 
U.S.C. App.)’’ after ‘‘1001(c) of this title’’; 
(5) in section 2003(e) by striking ‘‘8G(f)’’ and 
inserting ‘‘8M(d)’’; and 
(6) in section 2009 by striking ‘‘8G(f)’’ and in-
serting ‘‘8M(d)’’. 
(c) APPLICABILITY.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply with respect to the first indi-
vidual appointed as Inspector General of the Postal 
Service after the date of enactment of this Act. 
(2) RULE OF CONSTRUCTION.—Nothing in this 
Act may be construed to alter the authority or the 
length of the term of the individual serving as In-
spector General of the Postal Service on the date of 
enactment of this Act. 
SEC. 212. MEMBERSHIP OF THE BOARD OF GOVERNORS. 
(a) POSTMASTER
GENERAL.—Section 202(c) is 
amended to read as follows: 
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‘‘(c) The Governors shall appoint and shall have the 
power to remove the Postmaster General. His pay and 
term of service shall be fixed by the Governors.’’. 
(b) 
DEPUTY
POSTMASTER
GENERAL.—Section 
202(d) is amended to read as follows: 
‘‘(d) The Governors shall appoint and shall have the 
power to remove the Deputy Postmaster General. His 
term of service shall be fixed by the Governors and the 
Postmaster General and his pay by the Governors.’’. 
TITLE III—POSTAL SERVICE 
WORKFORCE 
SEC. 301. APPLICABILITY OF REDUCTION-IN-FORCE PROCE-
DURES. 
Section 1206 is amended by adding at the end the 
following: 
‘‘(d) Collective-bargaining agreements between the 
Postal Service and bargaining representatives recognized 
under section 1203, ratified after the date of enactment 
of this subsection, shall contain no provision restricting 
the applicability of reduction-in-force procedures under 
title 5 with respect to members of the applicable bar-
gaining unit. 
‘‘(e)(1) If a collective-bargaining agreement between 
the Postal Service and bargaining representatives recog-
nized under section 1203, ratified after the date of enact-
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ment of this subsection, includes reduction-in-force proce-
dures which can be applied in lieu of reduction-in-force 
procedures under title 5, the Postal Service may, in its 
discretion, apply with respect to members of the applicable 
bargaining unit— 
‘‘(A) the alternative procedures (or, if 2 or 
more are agreed to, 1 of the alternative procedures); 
or 
‘‘(B) the reduction-in-force procedures under 
title 5. 
‘‘(2) In no event may, if procedures for the resolution 
of a dispute or impasse arising in the negotiation of a col-
lective-bargaining agreement (whether through binding ar-
bitration or otherwise) are invoked under this chapter, the 
award or other resolution reached under such procedures 
provide for the elimination of, or the substitution of any 
alternative procedures in lieu of, reduction-in-force proce-
dures under title 5.’’. 
SEC. 302. POSTAL SERVICE FEHBP AND FEGLI FUNDING RE-
QUIREMENTS. 
Section 1005(d)(1) is amended— 
(1) in the first sentence, by striking ‘‘chapters 
83 and 84’’ and inserting ‘‘chapters 83, 84, 87, and 
89’’; and 
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(2) by adding at the end the following: ‘‘Begin-
ning not later than January 1, 2020, the Postal 
Service shall withhold from pay and shall pay into 
the Employees Life Insurance Fund and the Em-
ployee Health Benefits Fund the amounts specified 
in or determined under chapters 87 and 89, respec-
tively.’’. 
SEC. 303. REPEAL OF PROVISION RELATING TO OVERALL 
VALUE OF FRINGE BENEFITS. 
The last sentence of section 1005(f) is repealed. 
SEC. 304. MODIFICATIONS RELATING TO DETERMINATION 
OF PAY COMPARABILITY. 
(a) POSTAL POLICY.—The first sentence of section 
101(c) is amended— 
(1) by inserting ‘‘total’’ before ‘‘rates and types 
of compensation’’; and 
(2) by inserting ‘‘entire’’ before ‘‘private sec-
tor’’. 
(b) EMPLOYMENT POLICY.—The second sentence of 
section 1003(a) is amended— 
(1) by inserting ‘‘total’’ before ‘‘compensation 
and benefits’’ each place it appears; and 
(2) by inserting ‘‘entire’’ before ‘‘private sec-
tor’’. 
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(c) CONSIDERATIONS.—For purposes of the amend-
ments made by this section, any determination of ‘‘total 
rates and types of compensation’’ or ‘‘total compensation 
and benefits’’ shall, at a minimum, take into account pay, 
health benefits, retirement benefits, life insurance benefits, 
leave, holidays, and continuity and stability of employ-
ment. 
SEC. 305. LAST-BEST-FINAL-OFFER NEGOTIATIONS. 
Section 1207 is amended by striking subsections (c) 
and (d) and inserting the following: 
‘‘(c)(1) If no agreement is reached within 30 days 
after the appointment of a mediator under subsection (b), 
or if the parties decide upon arbitration before the expira-
tion of the 30-day period, an arbitration board shall be 
established consisting of 1 member selected by the Postal 
Service (from the list under paragraph (2)), 1 member se-
lected by the bargaining representative of the employees 
(from the list under paragraph (2)), and the mediator ap-
pointed under subsection (b). 
‘‘(2) Upon receiving a request from either of the par-
ties referred to in paragraph (1), the Director of the Fed-
eral Mediation and Conciliation Service shall provide a list 
of not less than 9 individuals who are well qualified to 
serve as neutral arbitrators. Each person listed shall be 
an arbitrator of nationwide reputation and professional 
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nature, a member of the National Academy of Arbitrators, 
and an individual whom the Director has determined to 
be willing and available to serve. If, within 7 days after 
the list is provided, either of the parties has not selected 
an individual from the list, the Director shall make the 
selection within 3 days. 
‘‘(3) The arbitration board shall give the parties a 
full and fair hearing, including an opportunity to present 
evidence in support of their claims, and an opportunity 
to present their case in person, by counsel, or by other 
representative as they may elect. The hearing shall be con-
cluded no more than 40 days after the arbitration board 
is established. 
‘‘(4) No more than 7 days after the hearing is con-
cluded, each party shall submit to the arbitration board 
2 offer packages, each of which packages shall specify the 
terms of a proposed final agreement. 
‘‘(5) If no agreement is reached within 7 days after 
the last day allowable for the submission of an offer pack-
age under paragraph (4), each party shall submit to the 
arbitration board a single, final offer package specifying 
the terms of a proposed final agreement. 
‘‘(6) No later than 3 days after the submission of 
the final offer packages under paragraph (5), the arbitra-
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tion board shall select 1 of those packages as its tentative 
award, subject to paragraph (7). 
‘‘(7)(A) The arbitration board may not select a final 
offer package under paragraph (6) unless it satisfies each 
of the following: 
‘‘(i) The offer complies with the requirements of 
sections 101(c) and 1003(a). 
‘‘(ii) The offer takes into account the current fi-
nancial condition of the Postal Service. 
‘‘(iii) The offer takes into account the long-term 
financial condition of the Postal Service. 
‘‘(B)(i) If the board unanimously determines, based 
on clear and convincing evidence presented during the 
hearing under paragraph (3), that neither final offer pack-
age satisfies the conditions set forth in subparagraph (A), 
the board shall by majority vote— 
‘‘(I) select the package that best meets such 
conditions; and 
‘‘(II) modify the package so selected to the min-
imum extent necessary to satisfy such conditions. 
‘‘(ii) If modification (as described in subparagraph 
(B)(i)(II)) is necessary, the board shall have an additional 
7 days to render its tentative award under this subpara-
graph. 
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‘‘(8) The parties may negotiate a substitute award 
to replace the tentative award selected under paragraph 
(6) or rendered under paragraph (7) (as the case may be). 
If no agreement on a substitute award is reached within 
10 days after the date on which the tentative award is 
so selected or rendered, the tentative award shall become 
final. 
‘‘(9) The arbitration board shall review any substitute 
award negotiated under paragraph (8) to determine if it 
satisfies the conditions set forth in paragraph (7)(A). If 
the arbitration board, by a unanimous vote taken within 
3 days after the date on which the agreement on the sub-
stitute award is reached under paragraph (8), determines 
that the substitute award does not satisfy such conditions, 
the tentative award shall become final. In the absence of 
a vote, as described in the preceding sentence, the sub-
stitute agreement shall become final. 
‘‘(10) If, under paragraph (5), neither party submits 
a final offer package by the last day allowable under such 
paragraph, the arbitration board shall develop and issue 
a final award no later than 20 days after such last day. 
‘‘(11) A final award or agreement under this sub-
section shall be conclusive and binding upon the parties. 
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‘‘(12) Costs of the arbitration board and mediation 
shall be shared equally by the Postal Service and the bar-
gaining representative. 
‘‘(d) In the case of a bargaining unit whose recog-
nized collective-bargaining representative does not have an 
agreement with the Postal Service, if the parties fail to 
reach agreement within 90 days after the commencement 
of collective bargaining, a mediator shall be appointed in 
accordance with the provisions of subsection (b), unless 
the parties have previously agreed to another procedure 
for a binding resolution of their differences. If the parties 
fail to reach agreement within 180 days after the com-
mencement of collective bargaining, an arbitration board 
shall be established to provide conclusive and binding arbi-
tration in accordance with the provisions of subsection 
(c).’’. 
SEC. 306. POSTAL SERVICE WORKERS’ COMPENSATION RE-
FORM. 
(a) IN GENERAL.—Effective 12 months after the 
triggering date of this section (as defined in subsection 
(e)(2)), section 1005 is amended by striking subsection (c) 
and inserting the following: 
‘‘(c)(1) For purposes of this subsection— 
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‘‘(A) the term ‘postal employee’ means an offi-
cer or employee of the Postal Service or the former 
Post Office Department; and 
‘‘(B) the term ‘retirement age’ has the meaning 
given such term under section 216(l)(1) of the Social 
Security Act. 
‘‘(2) The Postal Service shall design and administer 
a program for the payment of benefits for the disability 
or death of an individual resulting from personal injury 
sustained while in the performance of such individual’s du-
ties as a postal employee. 
‘‘(3) The program under this subsection— 
‘‘(A) shall be designed by the Postal Service in 
consultation with appropriate employee representa-
tives; 
‘‘(B) shall not provide for any amount payable 
to a disabled postal employee to be augmented on 
the basis of number of dependents; and 
‘‘(C) shall include provisions for automatic 
transition, upon attainment of retirement age, to 
benefits involving, coordinated with, or otherwise de-
termined by reference to retirement benefits.’’. 
(b) RECOMMENDATIONS.—Not later than 6 months 
after the triggering date— 
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(1) the Office of Personnel Management shall 
submit to the appropriate committees of Congress 
recommendations for any legislation or administra-
tive actions which the Office considers necessary to 
carry out the purposes of this section with respect 
to any matter within the jurisdiction of the Office, 
including any amendments which may be necessary 
with respect to chapter 87 or 89 of title 5, United 
States Code; and 
(2) the Postal Service shall submit to the ap-
propriate committees of Congress recommendations 
for any legislation which the Postal Service considers 
necessary to carry out the purposes of this section 
with respect to any matter within the jurisdiction of 
the Postal Service. 
(c) NOTIFICATION REQUIREMENTS.—Not later than 
9 months after the triggering date, the Postal Service shall 
submit to the appropriate committees of Congress and 
shall cause to be published in the Federal Register a de-
scription of the program proposed by the Postal Service 
for implementation under section 1005(c) of title 39, 
United States Code, as amended by subsection (a). In-
cluded in the notification provided under the preceding 
sentence shall be— 
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(1) a detailed statement of the benefits to be of-
fered and the persons eligible to receive those bene-
fits; 
(2) provisions to ensure an orderly transition to 
the system proposed to be implemented; and 
(3) such other information as the Postal Service 
considers appropriate. 
(d) COMMENCEMENT DATE.—The program under 
section 1005(c) of title 39, United States Code, as amend-
ed by subsection (a)— 
(1) shall begin to operate on such date as the 
Postmaster General shall determine, except that 
such date shall be a date occurring— 
(A) not earlier than 12 months after the 
triggering date; and 
(B) not later than 24 months after the 
triggering date; and 
(2) shall apply with respect to amounts payable 
for periods beginning on or after the date on which 
the program begins to operate, irrespective of date 
of the disability or death to which such amounts re-
late. 
(e) CONDITION PRECEDENT.— 
(1) IN GENERAL.—The preceding provisions of 
this section shall not become effective until the date 
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on which the Postal Service Financial Responsibility 
and Management Assistance Authority (established 
under section 202)— 
(A) makes a written determination that 
conditions warrant their implementation; and 
(B) submits such written determination to 
the Postal Service, the Office of Personnel 
Management, and the appropriate committees 
of Congress. 
(2) TRIGGERING DATE.—For purposes of this 
section, the term ‘‘triggering date of this section’’ or 
‘‘triggering date’’ means the date described in para-
graph (1). 
(f) APPROPRIATE COMMITTEES OF CONGRESS DE-
FINED.—For purposes of this section, the term ‘‘appro-
priate committees of Congress’’ means— 
(1) the Committee on Oversight and Govern-
ment Reform of the House of Representatives; and 
(2) the Committee on Homeland Security and 
Governmental Affairs of the Senate. 
SEC. 307. REPORTING REQUIREMENT. 
(a) IN GENERAL.—Chapter 10 is amended by adding 
at the end the following: 
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‘‘§ 1012. Official time reporting 
‘‘(a) Not later than March 31 of each calendar year, 
the Postal Service, in consultation with the Office of Man-
agement and Budget, shall submit to each House of Con-
gress a report on the operation of this section during the 
fiscal year last ending before the start of such calendar 
year. 
‘‘(b) Each report by the Postal Service under this 
subsection shall include, with respect to the fiscal year de-
scribed in subsection (a), at least the following informa-
tion: 
‘‘(1) The total amount of official time granted 
to employees. 
‘‘(2) The average amount of official time ex-
pended per bargaining unit employee. 
‘‘(3) The specific types of activities or purposes 
for which official time was granted, and the impact 
which the granting of such official time for such ac-
tivities or purposes had on agency operations. 
‘‘(4) The total number of employees to whom 
official time was granted, and, of that total, the 
number who were not engaged in any activities or 
purposes except activities or purposes involving the 
use of official time. 
‘‘(5) The total amount of compensation (includ-
ing fringe benefits) afforded to employees in connec-
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tion with activities or purposes for which they were 
granted official time. 
‘‘(c) All information included in a report by the Post-
al Service under this subsection with respect to a fiscal 
year— 
‘‘(1) shall be shown both for each supervisory 
and managerial organization recognized under sec-
tion 1004 and labor organization recognized under 
section 1203 and for all organizations together; and 
‘‘(2) shall be accompanied by the corresponding 
information (submitted by the Postal Service in its 
report under this subsection) for the fiscal year be-
fore the fiscal year to which such report pertains, to-
gether with appropriate comparisons and analyses. 
‘‘(d) For purposes of this subsection, the term ‘offi-
cial time’ means any period of time, regardless of Postal 
Service nomenclature— 
‘‘(1) which may be granted to an employee 
under this chapter or chapter 12 (including a collec-
tive-bargaining agreement entered into under chap-
ter 12) to perform representational or consultative 
functions; and 
‘‘(2) during which the employee would otherwise 
be in a duty status.’’. 
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(b) APPLICABILITY.—The amendment made by sub-
section (a) shall be effective beginning with the report 
which, under the provisions of such amendment, is first 
required to be submitted by the Postal Service to each 
House of Congress by a date which occurs at least 6 
months after the date of the enactment of this Act. 
(c) CLERICAL AMENDMENT.—The table of sections 
for chapter 10 is amended by adding at the end the fol-
lowing: 
‘‘1012. Official time reporting.’’. 
TITLE IV—POSTAL SERVICE 
REVENUE 
SEC. 401. ADEQUACY, EFFICIENCY, AND FAIRNESS OF POST-
AL RATES. 
(a) IN GENERAL.—Section 3622(d) is amended— 
(1) in paragraph (1)— 
(A) by redesignating subparagraphs (B) 
through (E) as subparagraphs (D) through (G), 
respectively; and 
(B) by inserting after subparagraph (A) 
the following: 
‘‘(B) subject to the limitation under sub-
paragraph (A), establish postal rates to fulfill 
the requirement that each market-dominant 
class, product, and type of mail service (except 
for an experimental product or service) bear the 
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direct and indirect postal costs attributable to 
such class, product, or type through reliably 
identified causal relationships plus that portion 
of all other costs of the Postal Service reason-
ably assignable to such class, product, or type; 
‘‘(C) 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)(10)(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;’’; 
(2) in paragraph (3), by striking ‘‘subsection 
(c),’’ and inserting ‘‘subsection (c) and the provi-
sions of title IV of the Postal Reform Act of 2013,’’; 
and 
(3) by adding at the end the following: 
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‘‘(4) PRC STUDY.— 
‘‘(A) IN GENERAL.—Within 90 days after 
the end of the first fiscal year beginning after 
the date of enactment of the Postal Reform Act 
of 2013, the Postal Regulatory Commission 
shall complete a study to determine the quan-
titative impact of the Postal Service’s excess ca-
pacity on the direct and indirect postal costs at-
tributable to any class that bears less than 100 
percent of its costs attributable (as described in 
paragraph (1)(B)), according to the most recent 
annual determination of the Postal Regulatory 
Commission under section 3653. 
‘‘(B) 
REQUIREMENTS.—The 
study 
re-
quired under subparagraph (A) shall— 
‘‘(i) be conducted pursuant to regula-
tions that the Postal Regulatory Commis-
sion shall prescribe within 90 days after 
the date of enactment of the Postal Re-
form Act of 2013, taking into account ex-
isting regulations for proceedings to im-
prove the quality, accuracy, or complete-
ness of ratemaking information under sec-
tion 3652(e)(2) in effect on such date; and 
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‘‘(ii) for any year in which any class 
of mail bears less than 100 percent of its 
costs attributable (as described in para-
graph (1)(B)), be updated annually by the 
Postal Service and included in its annual 
report to the Commission under section 
3652, using such methodologies as the 
Commission shall by regulation prescribe. 
‘‘(5) ADDITIONAL RATES.—Starting not earlier 
than 12 months and not later than 18 months after 
the date on which the first study described in para-
graph (4) is completed, and at least once in each 
subsequent 12-month period, the Postal Service shall 
establish postal rates for each loss-making class of 
mail to eliminate such losses (other than those 
caused by the Postal Service’s excess capacity) by 
exhausting all unused rate authority as well as maxi-
mizing incentives to reduce costs and increase effi-
ciency, subject to the following: 
‘‘(A) The term ‘loss-making’, as used in 
this paragraph with respect to a class of mail, 
means a class of mail that bears less than 100 
percent of its costs attributable (as described in 
paragraph (1)(B)), according to the most recent 
annual determination of the Postal Regulatory 
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Commission under section 3653, adjusted to ac-
count for the quantitative effect of excess ca-
pacity on the costs attributable of the class. 
‘‘(B) Unused rate authority shall be annu-
ally increased by 2 percentage points for each 
class of mail that bears less than 90 percent of 
its costs attributable (as described in paragraph 
(1)(B)), according to the most recent annual 
determination of the Postal Regulatory Com-
mission under section 3653, adjusted to account 
for the quantitative effect of excess capacity on 
the costs attributable of the class, with such in-
crease in unused rate authority to take effect 
30 days after the date that the Commission 
issues such determination.’’. 
(b) EXCEPTION.—Section 3622(d) is amended by 
adding after paragraph (5) (as added by subsection 
(a)(2)) the following: 
‘‘(6) EXCEPTION.—The requirements of para-
graph (1)(B) shall not apply to a market-dominant 
product for which a substantial portion of the prod-
uct’s mail volume consists of inbound international 
mail with terminal dues rates determined by the 
Universal Postal Union (and not by bilateral agree-
ments or other arrangements).’’. 
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SEC. 402. REPEAL OF RATE PREFERENCES FOR QUALIFIED 
POLITICAL COMMITTEES. 
Subsection (e) of section 3626 is repealed. 
SEC. 403. USE OF NEGOTIATED SERVICE AGREEMENTS. 
(a) STREAMLINED REVIEW OF QUALIFYING SERVICE 
AGREEMENTS
FOR COMPETITIVE PRODUCTS.—Section 
3633 is amended by adding at the end the following: 
‘‘(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 
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. 
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Agreements not approved may be resubmitted without 
prejudice under section 3632.’’. 
(b) SUBMISSION
OF SERVICE AGREEMENTS
FOR 
STREAMLINED REVIEW.—Section 3632(b) is amended— 
(1) by redesignating paragraph (4) as para-
graph (5); and 
(2) by inserting after paragraph (3) the fol-
lowing: 
‘‘(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 
agreement, as the Postmaster General considers ap-
propriate.’’. 
(c) TRANSPARENCY
AND
ACCOUNTABILITY
FOR 
SERVICE AGREEMENTS.— 
(1) CERTAIN INFORMATION REQUIRED TO BE 
INCLUDED IN DETERMINATIONS OF COMPLIANCE.— 
Section 3653 is amended— 
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(A) by redesignating subsections (c), (d), 
and (e) as subsections (d), (e), and (f), respec-
tively; and 
(B) 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-
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, 
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but shall not include agreements within an experi-
mental product.’’. 
(2) CRITERIA
FOR
SPECIAL
CLASSIFICATIONS 
RELATING TO MARKET-DOMINANT PRODUCTS.— 
(A) AMENDMENT.—Section 3622(c)(10) is 
amended by striking subparagraphs (A) and 
(B) and inserting the following: 
‘‘(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— 
‘‘(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.’’. 
(B) 
APPLICABILITY.—The 
amendment 
made by subparagraph (A) shall take effect on 
the date of enactment of this Act and shall 
apply with respect to an agreement that— 
(i) is filed with the Commission on or 
after such date of enactment; or 
(ii) is remanded to the Commission by 
a court on or after such date of enactment. 
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SEC. 404. NONPOSTAL SERVICES. 
(a) NONPOSTAL SERVICES.— 
(1) IN GENERAL.—Part IV is amended by add-
ing after chapter 36 the following: 
‘‘CHAPTER 37—NONPOSTAL SERVICES 
‘‘Sec. 
‘‘3701. Purpose. 
‘‘3702. Definitions. 
‘‘3703. Postal Service advertising program. 
‘‘3704. Postal Service program for State governments. 
‘‘3705. Postal Service program for other government agencies. 
‘‘3706. Transparency and accountability for nonpostal services. 
‘‘§ 3701. Purpose 
‘‘This chapter is intended to enable the Postal Service 
to increase its net revenues through specific nonpostal 
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 
‘‘As used 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 same 
meaning as is given such term in section 3631; and 
‘‘(3) the term ‘year’ means a fiscal year. 
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‘‘§ 3703. Postal Service advertising program 
‘‘Notwithstanding any other provision of this title, 
the Postal Service may establish and manage a program 
that allows entities to advertise at Postal Service facilities, 
on Postal Service assets, and on Postal Service vehicles. 
Such a program shall be subject to the following require-
ments: 
‘‘(1) The Postal Service shall at all times en-
sure advertising it permits is consistent with the in-
tegrity of the Postal Service. 
‘‘(2) Any advertising program is required to 
cover a minimum of 200 percent of its attributable 
costs in each year. 
‘‘(3) All advertising expenditures and revenues 
are subject to annual compliance determination (in-
cluding remedies for noncompliance) applicable to 
nonpostal products. 
‘‘(4) Total advertising expenditures and reve-
nues must be disclosed in Postal Service annual re-
ports. 
‘‘§ 3704. 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 provide services for agencies of State governments 
within the United States, but only if such services— 
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‘‘(1) shall 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 ac-
cessible; 
‘‘(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) unreasonable access to postal retail 
service, such as customer waiting time and ac-
cess to parking; and 
‘‘(3) provide a reasonable contribution to the in-
stitutional costs of the Postal Service, defined as re-
imbursement for each service and covering at least 
150 percent of the attributable costs of such service 
in each year. 
‘‘(b) PUBLIC NOTICE.—At least 90 days before offer-
ing any services under this section, the Postal Service shall 
make each agreement with State agencies readily available 
to the public on its Web site, including a business plan 
that describes the specific services to be provided, the en-
hanced value to the public, terms of reimbursement, the 
estimated annual reimbursement to the Postal Service, 
and the estimated percentage of attributable Postal Serv-
ice costs that will be covered by reimbursement (with doc-
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umentation to support these estimates). The Postal Serv-
ice shall solicit public comment for at least 30 days, with 
comments posted on its Web site, followed by its written 
response posted on its Web site at least 30 days before 
offering such services. 
‘‘(c) APPROVAL REQUIRED.—The Governors of the 
Postal Service shall approve the provision of services 
under this section by a recorded vote, with at least 2⁄3 of 
its membership voting for approval, with the vote publicly 
disclosed on the Postal Service Web site. 
‘‘(d) CLASSIFICATION OF SERVICES.—All services for 
a given agency provided under this section shall be classi-
fied as a separate activity subject to the requirements of 
annual reporting under section 3706. Such reporting shall 
also include information on the quality of service and re-
lated information to demonstrate that it satisfied the re-
quirements of subsection (a). Information provided under 
this section shall be according to requirements that the 
Postal Regulatory Commission shall by regulation pre-
scribe. 
‘‘(e) DEFINITIONS.—For the purpose of this sec-
tion— 
‘‘(1) the term ‘State’ includes the District of 
Columbia, the Commonwealth of Puerto Rico, the 
United States Virgin Islands, Guam, American 
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Samoa, the Commonwealth of the Northern Mariana 
Islands, and any other territory or possession of the 
United States; and 
‘‘(2) the term ‘United States’, when used in a 
geographical sense, means the States. 
‘‘§ 3705. Postal Service program for other government 
agencies 
‘‘(a) IN GENERAL.—The Postal Service may establish 
a program to provide property and services for 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) CLASSIFICATION OF SERVICES.—For each agen-
cy, all property and services provided by the Postal Service 
under this section shall be classified as a separate activity 
subject to the requirements of annual reporting under sec-
tion 3706. Information provided under this section shall 
be according to requirements that the Postal Regulatory 
Commission shall by regulation prescribe. 
‘‘§ 3706. Transparency and accountability for non-
postal services 
‘‘(a) ANNUAL REPORTS TO THE COMMISSION.— 
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‘‘(1) IN GENERAL.—The Postal Service shall, 
no later than 90 days after the end of each year, 
prepare and submit to the Postal Regulatory Com-
mission a report (together with such nonpublic 
annex to the report as the Commission may require 
under subsection (b)) which shall analyze costs, reve-
nues, rates, and quality of service for this chapter, 
using such methodologies as the Commission shall 
by regulation prescribe, and in sufficient detail to 
demonstrate compliance with all applicable require-
ments of this chapter. 
‘‘(2) AUDITS.—The Inspector General shall reg-
ularly audit the data collection systems and proce-
dures utilized in collecting information and pre-
paring such report. The results of any such audit 
shall be submitted to the Postal Service and the 
Postal Regulatory Commission. 
‘‘(b) SUPPORTING MATTER.—The Postal Regulatory 
Commission shall have access, in accordance with such 
regulations as the Commission shall prescribe, to the 
working papers and any other supporting matter of the 
Postal Service and the Inspector General in connection 
with any information submitted under this section. 
‘‘(c) CONTENT AND FORM OF REPORTS.— 
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‘‘(1) IN
GENERAL.—The Postal Regulatory 
Commission shall, by regulation, prescribe the con-
tent and form of the public reports (and any non-
public annex and supporting matter relating to the 
report) to be provided by the Postal Service under 
this section. Such reports shall be included with the 
annual compliance determination reported under sec-
tion 3653. In carrying out this subsection, the Com-
mission 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. 
‘‘(2) REVISED REQUIREMENTS.—The Commis-
sion may, on its own motion or on request of any 
interested party, initiate proceedings (to be con-
ducted in accordance with regulations that the Com-
mission shall prescribe) to improve the quality, accu-
racy, or completeness of Postal Service data required 
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by the Commission under this subsection whenever 
it shall appear that— 
‘‘(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 annual reports 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. 
‘‘(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 which is described in 
section 410(c) of this title, 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 de-
termination, in writing, and describe with particu-
larity the documents (or portions of documents) or 
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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.— 
After receiving the reports required under subsection 
(a) for any year, the Postal Regulatory Commission 
shall promptly provide an opportunity for comment 
on such reports by any interested party, and an offi-
cer of the Commission who shall be required to rep-
resent the interests of the general public. 
‘‘(2) DETERMINATION OF COMPLIANCE OR NON-
COMPLIANCE.—Not later than 90 days after receiv-
ing the submissions required under subsection (a) 
with respect to a year, the Postal Regulatory Com-
mission shall make a written determination as to 
whether any nonpostal activities during such year 
were or were not in compliance with applicable pro-
visions of this chapter (or regulations promulgated 
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under this chapter). The Postal Regulatory Commis-
sion shall issue a determination of noncompliance if 
the requirements for coverage of attributable costs 
are not met. If, with respect to a year, no instance 
of noncompliance is found to have occurred in such 
year, the written determination shall be to that ef-
fect. 
‘‘(3) NONCOMPLIANCE.—If, for a year, a timely 
written determination of noncompliance is made 
under this chapter, the Postal Regulatory Commis-
sion shall take 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, which shall also include the full restoration 
of revenue shortfalls during the following fiscal year. 
The Commission may order the Postal Service to 
discontinue a nonpostal service under section 3703 
or 3704 that persistently fails to meet cost coverage 
requirements. 
‘‘(4) DELIBERATE NONCOMPLIANCE.—In addi-
tion, in cases of deliberate noncompliance by the 
Postal Service with the requirements of this chapter, 
the Postal Regulatory Commission may order, based 
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on the nature, circumstances, extent, and serious-
ness 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 depos-
ited in the general fund of the Treasury of the 
United States.’’. 
(2) CLERICAL
AMENDMENT.—The table of 
chapters at the beginning of part IV is amended by 
adding after the item relating to chapter 36 the fol-
lowing: 
‘‘37. Nonpostal Services ................................................................... 3701’’. 
(b) CONFORMING AMENDMENTS.— 
(1) SECTION 404(e).—Section 404(e) is amend-
ed 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 and 
shipping 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. 
‘‘(7) Nothing in this section shall be considered to 
prevent the Postal Service from establishing nonpostal 
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products and services that are expressly authorized by 
chapter 37.’’. 
(2) SECTION 409.—Section 409(f) is amended 
by inserting at the end the following: 
‘‘(7) The provisions of this section shall not apply to 
any outdoor advertising structure or sign constructed, in-
stalled, operated, or maintained on a facility or asset 
owned or operated by the Postal Service except in a juris-
diction in which posting of off premise advertising signs 
for all persons, entities, governmental agencies, and others 
is prohibited by law.’’. 
(3) SECTION 411.—The last sentence of section 
411 
is 
amended 
by 
striking 
‘‘including 
reimbursability’’ 
and 
inserting 
‘‘including 
reimbursability within the limitations of chapter 
37’’. 
(4) 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. 
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SEC. 405. ALASKA BYPASS MAIL MODERNIZATION. 
(a) FAIR
COMPETITION
FOR
ALASKA
BYPASS 
MAIL.— 
(1) IN GENERAL.—Section 5402 is amended— 
(A) in subsection (g)(4)— 
(i) in subparagraph (A), by striking 
‘‘existing’’; 
(ii) in subparagraph (B)— 
(I) in the matter preceding clause 
(i), by striking ‘‘an existing mainline 
carrier’’ and inserting ‘‘a carrier per-
mitted under subparagraph (A)’’; and 
(II) in clause (i), by striking ‘‘ex-
isting mainline carriers’’ and inserting 
‘‘mainline carriers providing service’’; 
and 
(iii) in subparagraph (C), by striking 
‘‘existing’’; 
(B) in subsection (g)(5)— 
(i) in subparagraph (A), by striking 
‘‘new’’; 
(ii) in subparagraph (B), by striking 
‘‘new’’; and 
(iii) in subparagraph (C), by striking 
‘‘new’’; 
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(C) in subsection (h)(3)(A), by striking 
‘‘new or existing’’; and 
(D) in subsection (i)(3), by striking ‘‘new’’. 
(2) CONFORMING
AMENDMENT.—Paragraphs 
(12) and (15) of section 5402(a) are repealed. 
(b) REDUCTION
OF ALASKA BYPASS MAIL SUB-
SIDY.— 
(1) IN GENERAL.—Chapter 54 is amended by 
adding at the end the following: 
‘‘§ 5404. Reduction of Alaska bypass mail subsidy 
‘‘(a) COMPETITIVE PRODUCT CLASSIFICATION.— 
‘‘(1) IN GENERAL.—Except as provided in this 
section, Alaska bypass mail service under section 
5402 shall be treated as a separate competitive 
product for all purposes. 
‘‘(2) TRANSFER
PROHIBITED.—No part of 
Alaska bypass mail service may be transferred to the 
market-dominant category of mail under section 
3642. 
‘‘(3) LIMITATIONS.—Alaska bypass mail service 
shall not be treated as a competitive product for 
purposes of the implementation of sections 3633(a) 
and 3634. 
‘‘(b) MINIMUM COST COVERAGE.— 
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‘‘(1) IN GENERAL.—The Postal Service shall es-
tablish and maintain rates and fees for matter sent 
by Alaska bypass mail service— 
‘‘(A) for fiscal year 2014, that cover at 
least 30 percent of the costs attributable to 
Alaska bypass mail service in that fiscal year; 
‘‘(B) for fiscal year 2015, that cover at 
least 35 percent of the costs attributable to 
Alaska bypass mail service in that fiscal year; 
‘‘(C) for fiscal year 2016, that cover at 
least 40 percent of the costs attributable to 
Alaska bypass mail service in that fiscal year; 
‘‘(D) for fiscal year 2017, that cover at 
least 45 percent of the costs attributable to 
Alaska bypass mail service in that fiscal year; 
and 
‘‘(E) for fiscal year 2018 and for each fis-
cal year thereafter, that cover at least 50 per-
cent of the costs attributable to Alaska bypass 
mail service in the applicable fiscal year. 
‘‘(2) COSTS ATTRIBUTABLE.—The costs attrib-
utable to Alaska bypass mail service for a fiscal year 
shall include all the direct and indirect costs of Alas-
ka bypass mail service during that fiscal year that 
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are attributable to that service through reliably iden-
tified causal relationships. 
‘‘(3) INSTITUTIONAL COSTS.—Costs that can be 
attributed to Alaska bypass mail service may not be 
classified as institutional costs of the Postal Service. 
‘‘(c) COMPLIANCE.— 
‘‘(1) ANNUAL REVIEW.—At least once each fis-
cal year, the Postal Regulatory Commission shall de-
termine whether the Postal Service is in compliance 
with the requirements under subsection (b). 
‘‘(2) REMEDIAL ACTIONS.—If, under paragraph 
(1), the Postal Regulatory Commission determines 
that the Postal Service has not complied with the re-
quirements under subsection (b) with respect to a 
fiscal year, the Commission shall prescribe, not later 
than 60 days after making such determination, ac-
tions to ensure— 
‘‘(A) the establishment and maintenance of 
rates and fees for Alaska bypass mail service 
that recover any costs required to have been 
covered for such fiscal year under subsection 
(b), but that were not covered, by the date that 
is not later than the last day of the fiscal year 
that follows such fiscal year; and 
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‘‘(B) compliance with the requirements 
under subsection (b) in subsequent fiscal years. 
‘‘(3) 
LIMITATION.—The 
Postal 
Regulatory 
Commission may not order the Postal Service to dis-
continue Alaska bypass mail service. 
‘‘(4) REGULATIONS.—Not later than 90 days 
after the date of enactment of this subsection, the 
Postal Regulatory Commission shall issue regula-
tions to implement this subsection.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 54 is amended by adding at the 
end the following: 
‘‘5404. Reduction of Alaska bypass mail subsidy.’’. 
SEC. 406. APPROPRIATIONS MODERNIZATION. 
(a) IN GENERAL.—Section 2401 is amended by strik-
ing subsections (b) through (d). 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall be effective with respect to fiscal years 
beginning after the date of enactment of this Act. 
(c) CONFORMING AMENDMENT.—Section 3627 is re-
pealed. 
SEC. 407. ENHANCED PRODUCT INNOVATION. 
(a) DOLLAR-AMOUNT LIMITATION RELATING
TO 
MARKET TESTS OF EXPERIMENTAL PRODUCTS.—Section 
3641(e)(1) is amended by striking ‘‘$10,000,000’’ and in-
serting ‘‘$50,000,000’’. 
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(b) DOLLAR-AMOUNT LIMITATION RELATING TO EX-
EMPTION AUTHORITY.—Section 3641(e)(2) is amended by 
striking ‘‘$50,000,000’’ and inserting ‘‘$100,000,000’’. 
TITLE V—POSTAL SERVICE 
FINANCE 
SEC. 
501. 
TREATMENT 
OF 
POSTAL 
SERVICE 
POSTEMPLOYMENT BENEFIT FUNDING PRO-
JECTED SURPLUSES. 
Section 8423(b)(4) of title 5, United States Code, is 
amended by adding at the end the following: 
‘‘(C) Not later than 30 days after the end 
of each fiscal year, the Office of Personnel 
Management shall transfer from Postal Service 
Federal Employee Retirement System monies 
within the Civil Service Retirement and Dis-
ability Fund to the Postal Service Retiree 
Health Benefits Fund an amount equal to the 
negative supplemental liability (if any), as cal-
culated under paragraph (1)(B), for the most 
recent fiscal year available, less the sum of— 
‘‘(i) the Postal supplemental liability, 
calculated under section 8348(h), for the 
same fiscal year (if any); and 
‘‘(ii) any contribution required by this 
section that the Postal Service has not 
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made between the close of the fiscal year 
of the calculation under paragraph (1)(B) 
and the close of the most recent fiscal 
year, as determined by the Office of Per-
sonnel Management.’’. 
SEC. 502. RETIREE HEALTH BENEFIT LIABILITY PAYMENT 
SCHEDULE. 
(a) IN GENERAL.—Subsection 8909a(d) of title 5, 
United States Code, is amended— 
(1) in paragraph (2)(B), by striking ‘‘2017’’ 
and inserting ‘‘2015’’; and 
(2) in paragraph (3)— 
(A) in subparagraph (A)— 
(i) in clause (iii), by adding ‘‘and’’ at 
the end; 
(ii) in clause (iv), by striking the 
semicolon at the end and inserting a pe-
riod; and 
(iii) by striking clauses (v) through 
(x); and 
(B) in subparagraph (B), by striking 
‘‘2017’’ and inserting ‘‘2015’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
8906(g)(2)(A) of title 5, United States Code, is amended 
by striking ‘‘2016’’ and inserting ‘‘2014’’. 
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(c) TECHNICAL CORRECTION.—The heading for sec-
tion 8909a of title 5, United States Code, is amended by 
striking ‘‘Benefit’’ and inserting ‘‘Benefits’’. 
SEC. 503. SUPPLEMENTARY BORROWING AUTHORITY DUR-
ING A CONTROL PERIOD. 
(a) IN GENERAL.—Chapter 20 is amended by adding 
after section 2011 the following: 
‘‘§ 2012. Supplementary borrowing authority 
‘‘(a) SUPPLEMENTARY BORROWING AUTHORITY.— 
Upon the commencement of the control period, subject to 
the approval of the Authority, the Postal Service is author-
ized to borrow money and issue and sell such obligations 
as may be necessary to carry out the purposes of this title, 
to the same extent, in the same manner, and subject to 
the same terms and conditions as if the maximum amount 
allowable under the provisions of section 2005(a)(2) for 
the fiscal year involved were equal to the maximum 
amount which (but for this section) would otherwise be 
allowable 
under 
such 
provisions, 
increased 
by 
$5,000,000,000. 
‘‘(b) SUNSET.—The authority to borrow money and 
to issue and sell obligations under subsection (a) shall 
cease to be available after September 30, 2022. 
‘‘(c) DEPOSIT.—Any amounts received under this 
section shall be deposited in the Postal Service Fund. 
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‘‘(d) PROPERTIES TO BE SET ASIDE.—Notwith-
standing section 2005(b)(2), the Postal Service shall take 
such measures as may be necessary and appropriate so 
that, during any period in which the Postal Service is 
using supplemental borrowing authority under subsection 
(a), a sufficient amount of real property has been pledged 
or otherwise set aside by the Postal Service to carry out 
subsection (e). 
‘‘(e) OUTSTANDING SUPPLEMENTAL DEBT REDUC-
TION.— 
‘‘(1) IN GENERAL.—In the case of any full fis-
cal year in which the Postal Service borrows funds 
pursuant to subsection (a), the Postal Service shall, 
not later than September 30 of such fiscal year, de-
posit into the Postal Service Fund an amount such 
that the total obligations accrued and outstanding 
pursuant to subsection (a) are, as of the close of 
such fiscal year, at least 20 percent less than the 
total obligations so accrued and outstanding as of 
the start of such fiscal year. 
‘‘(2) SENSE OF CONGRESS.—It is the sense of 
Congress that, to achieve the requirement of para-
graph (1), the Postal Service should dispose of such 
real property as may be necessary. 
‘‘(f) DEFINITIONS.—For purposes of this section— 
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‘‘(1) the term ‘Authority’ means the Postal 
Service Financial Responsibility and Management 
Assistance Authority, established in title II of the 
Postal Reform Act of 2013; and 
‘‘(2) the term ‘control period’ has the meaning 
given such term in section 202(b)(1) of such Act.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 20 is amended by adding at the end the fol-
lowing: 
‘‘2012. Supplemental borrowing authority.’’. 
SEC. 504. POSTAL SERVICE DELIVERY-POINT MODERNIZA-
TION FUND. 
(a) IN GENERAL.—Chapter 20 is further amended by 
adding after section 2012 (as added by section 503(a)) 
the following: 
‘‘§ 2013. Postal Service Delivery-Point Modernization 
Fund 
‘‘(a) ESTABLISHMENT.—There is established within 
the Treasury of the United States a revolving fund to be 
known as the ‘Postal Service Delivery-Point Moderniza-
tion Fund’, which shall be available without fiscal year 
limitation pursuant to the requirements of this section. 
‘‘(b) FUNDING.— 
‘‘(1) AUTHORIZATION.—The Postal Service is 
authorized to borrow money and to issue and sell 
such obligations as it determines necessary solely to 
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carry out the purposes of section 3962. The aggre-
gate amount of obligations issued by the Postal 
Service which may be outstanding at any one time 
under 
this 
paragraph 
shall 
not 
exceed 
$1,000,000,000. 
‘‘(2) APPLICABILITY
OF
SECTION
2005.—The 
provisions of subsections 2005(b), (c), and (d) shall 
apply to obligations issued under this subsection. 
‘‘(3) DEPOSIT.—Any amounts received by the 
Postal Service as a result of paragraph (1) shall be 
deposited in the Postal Service Delivery-Point Mod-
ernization Fund. 
‘‘(c) SUNSET.—The authority to borrow money and 
to issue and sell obligations under subsection (b) shall 
cease to be available after September 30, 2023. 
‘‘(d) BUDGETARY TREATMENT.—The receipts and 
disbursements of the Postal Service Delivery-Point Mod-
ernization Fund shall be accorded the same budgetary 
treatment as is accorded to receipts and disbursements of 
the Postal Service Fund under section 2009a. 
‘‘(e) TERMINATION OF FUND.—On September 30, 
2023, any funds remaining in the Postal Service Delivery- 
Point Modernization Fund shall be used to satisfy any re-
maining obligations under subsection (b)(1), and any 
funds in excess of such obligations shall be deposited in 
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the Postal Service Fund. After any excess funds have been 
so deposited, the Postal Service Delivery-Point Moderniza-
tion Fund shall be terminated.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 20 is amended by adding after the item relat-
ing to section 2012 (as added by section 503(b)) the fol-
lowing: 
‘‘2013. Postal Service Delivery-Point Modernization Fund.’’. 
SEC. 505. SPECIFIC RETIREMENT LIABILITY CALCULA-
TIONS RELATING TO THE POSTAL SERVICE. 
(a) FEDERAL EMPLOYEES RETIREMENT SYSTEM.— 
Section 8423(a) of title 5, United States Code, is amend-
ed— 
(1) in paragraph (1)— 
(A) in subparagraph (A)— 
(i) in clause (i), by striking ‘‘subpara-
graph (B)),’’ and inserting ‘‘subparagraph 
(B) or (C)),’’; and 
(ii) in clause (ii), by striking ‘‘and’’ 
after the semicolon; 
(B) in subparagraph (B)(ii), by striking 
the period at the end and inserting ‘‘; and’’; 
and 
(C) by adding at the end the following: 
‘‘(C) the product of— 
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‘‘(i) the normal-cost percentage, as deter-
mined for employees (other than employees cov-
ered by subparagraph (B)) of the United States 
Postal Service under paragraph (5), multiplied 
by 
‘‘(ii) the aggregate amount of basic pay 
payable by the United States Postal Service, for 
the period involved, to employees of the United 
States Postal Service.’’; and 
(2) by adding at the end the following: 
‘‘(5)(A) In determining the normal-cost percentage 
for employees of the United States Postal Service for pur-
poses of paragraph (1)(C), the Office— 
‘‘(i) shall use demographic factors specific to 
such employees, unless such data cannot be gen-
erated; and 
‘‘(ii) may use economic assumptions regarding 
wage and salary growth that reflect the specific past, 
and likely future, pay for such employees. 
‘‘(B) The United States Postal Service shall provide 
any data or projections the Office requires in order to de-
termine the normal-cost percentage for employees of the 
United States Postal Service, consistent with subpara-
graph (A). 
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‘‘(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. 
‘‘(2) POSTAL
SERVICE.—The Postal Service 
shall make the noncompetitive purchase request for 
any noncompetitive award of a postal contract in an 
amount of $250,000 or more, including the rationale 
supporting the noncompetitive award, publicly avail-
able on the Web site of the Postal Service— 
‘‘(A) not later than 14 days after the date 
of the award; or 
‘‘(B) not later than 30 days after the date 
of the award, if the basis for the award was a 
compelling business interest. 
‘‘(3) ADJUSTMENTS TO THE POSTING THRESH-
OLD FOR THE POSTAL SERVICE.— 
‘‘(A) REVIEW AND DETERMINATION.—Not 
later than January 31 of each year, the Postal 
Service shall— 
‘‘(i) review the $250,000 threshold es-
tablished under paragraph (2); and 
‘‘(ii) based on any change in the Con-
sumer Price Index for All Urban Con-
sumers of the Department of Labor, deter-
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