I 
113TH CONGRESS 
1ST SESSION H. R. 2690 
To enhance the long-term profitability of the United States Postal Service 
through enhanced innovation, operational flexibility, workforce realign-
ment, and regulatory relief. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 16, 2013 
Mr. CUMMINGS (for himself, Mr. LYNCH, Mr. TIERNEY, Mr. CONNOLLY, Ms. 
SPEIER, Ms. NORTON, Mr. DANNY K. DAVIS of Illinois, and Ms. KELLY 
of Illinois) introduced the following bill; which was referred to the Com-
mittee on Oversight and Government Reform, and in addition to the 
Committee on the Judiciary, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned 
A BILL 
To enhance the long-term profitability of the United States 
Postal Service through enhanced innovation, operational 
flexibility, workforce realignment, and regulatory relief. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS; REF-
ERENCES. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Innovate to Deliver Act of 2013’’. 
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(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents; references. 
TITLE I—POSTAL SERVICE PROFITABILITY AND REVENUE- 
GENERATING ENHANCEMENTS 
Subtitle A—Postal Service Products and Pricing 
Sec. 101. USPS innovation officer and accountability. 
Sec. 102. Authority to offer nonpostal services. 
Sec. 103. Requirement that market-dominant products cover attributable costs. 
Sec. 104. PRC to revisit CPI cap instituted under PAEA. 
Sec. 105. Enhanced product innovation. 
Sec. 106. Authority to ship beer, wine and distilled spirits. 
Sec. 107. Repeal of uniform rate for books, films, and other materials. 
Subtitle B—Postal Service Management 
Sec. 108. USPS balanced budget minimum requirement. 
Sec. 109. Reporting requirement for Board of Governors and Postal Regulatory 
Commissioners. 
Sec. 110. Restrictions on postal service executive compensation. 
Sec. 111. Investment of competitive product moneys. 
TITLE II—POSTAL SERVICE WORKFORCE REALIGNMENT AND 
RIGHT-SIZING 
Sec. 201. Separate normal-cost percentage recalculation of Federal Employees 
Retirement System. 
Sec. 202. Treatment of surplus contributions to Federal Employees Retirement 
System. 
Sec. 203. Sense of Congress. 
Sec. 204. Contributions to Thrift Savings Fund of voluntary separation incen-
tive payments. 
Sec. 205. Service credit contributions of voluntary separation incentive pay-
ments. 
Sec. 206. Modification of prepayment schedule relating to Postal Service Re-
tiree Health Benefits Fund. 
Sec. 207. Study on USPS workforce realignment and right-sizing options. 
Sec. 208. Applicability of provisions relating to reductions in force. 
Sec. 209. Enhanced reporting on facility network initiatives. 
TITLE III—POSTAL SERVICE IMPROVEMENTS AND REGULATORY 
RELIEF 
Sec. 301. Permit appeal rights for closing of postal stations and branches. 
Sec. 302. Intra-agency cooperative agreements. 
Sec. 303. Grouping of negotiated service agreements. 
Sec. 304. Simplification of process for classification of competitive products. 
Sec. 305. Development of new market-dominant classes of mail. 
Sec. 306. Expedited consideration of service changes by PRC. 
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(c) REFERENCES.—Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal 
is expressed in terms of an amendment to, or repeal of, 
a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of title 
39, United States Code. 
TITLE 
I—POSTAL 
SERVICE 
PROFITABILITY 
AND 
REV-
ENUE-GENERATING 
EN-
HANCEMENTS 
Subtitle A—Postal Service 
Products and Pricing 
SEC. 101. USPS INNOVATION OFFICER AND ACCOUNT-
ABILITY. 
(a) IN GENERAL.—Chapter 2 is amended by adding 
at the end the following: 
‘‘SEC. 209. USPS INNOVATION OFFICER AND ACCOUNT-
ABILITY. 
‘‘(a) IN GENERAL.—There shall be in the Postal 
Service a Chief Innovation Officer selected by the Post-
master General who shall have proven expertise and a 
record of success in 1 or more of the following: postal and 
shipping industry, innovation product research and devel-
opment, marketing brand strategy, emerging communica-
tions technology, or business process management. The 
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Chief Innovation Officer shall manage the Postal Service’s 
development and implementation of innovative postal and 
nonpostal products and services. 
‘‘(b) DUTIES.—The Chief Innovation Officer shall 
have as primary duties— 
‘‘(1) leading the development of innovative non-
postal products and services that will maximize rev-
enue to the Postal Service; 
‘‘(2) developing innovative postal products and 
services, particularly those that utilize emerging in-
formation technologies, to maximize revenue to the 
Postal Service; 
‘‘(3) monitoring the performance of innovative 
products and services and revising them as needed 
to meet changing market trends; and 
‘‘(4) taking into consideration comments or ad-
visory opinions, if applicable, issued by the Postal 
Regulatory Committee prior to the initial sale of in-
novative postal or nonpostal products and services. 
‘‘(c) DESIGNATION.— 
‘‘(1) DEADLINE.—As soon as practicable after 
the date of enactment of this section, but no later 
than January 1, 2014, the Postmaster General shall 
designate a Chief Innovation Officer. 
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‘‘(2) CONDITION.—Nothing in this section shall 
be construed to prohibit an individual who holds an-
other office or position in the Postal Service from 
serving as the Chief Innovation Officer under this 
chapter. However, upon appointment to the position 
of the Chief Innovation Officer, such individual may 
not, while serving in such office, concurrently hold 
any other office or position in the Postal Service. 
‘‘(d) INNOVATION STRATEGY.— 
‘‘(1) IN GENERAL.—Not later than 12 months 
after the date on which the Chief Innovation Officer 
is designated under subsection (c)(1), the Post-
master General shall submit to the Committee on 
Homeland Security and Governmental Affairs of the 
Senate and the Committee on Oversight and Govern-
ment Reform of the House of Representatives a 
comprehensive strategy for maximizing revenues 
through innovative postal and nonpostal products 
and services. 
‘‘(2) MATTERS TO BE ADDRESSED.—At a min-
imum, the strategy required by this section shall ad-
dress— 
‘‘(A) the specific innovative postal and 
nonpostal products and services to be developed 
and offered by the Postal Service, including the 
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nature of the market to be filled by each prod-
uct and service and the likely date by which 
each product and service will be introduced; 
‘‘(B) the cost of developing and offering 
each product or service; 
‘‘(C) the anticipated sales volume of each 
product and service; 
‘‘(D) the anticipated revenues and profits 
expected to be generated by each product and 
service; 
‘‘(E) the likelihood of success of each inno-
vative product and service as well as the risks 
associated with the development and sale of 
each innovative product and service; 
‘‘(F) the trends anticipated in market con-
ditions that may affect the success of each 
product and service over the 5-year period be-
ginning on the date such strategy or update is 
submitted; and 
‘‘(G) the metrics that will be utilized to as-
sess the effectiveness of the innovation strategy. 
‘‘(3) STRATEGY
UPDATES.—On January 1, 
2018, and every 3 years thereafter, the Chief Inno-
vation Officer shall submit an update to the innova-
tion strategy submitted under paragraph (1) to the 
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Committee on Homeland Security and Governmental 
Affairs of the Senate, the Committee on Oversight 
and Government Reform of the House of Represent-
atives, and the Postal Regulatory Commission. 
‘‘(e) REPORT ON PERFORMANCE.— 
‘‘(1) IN
GENERAL.—The Postmaster General 
shall submit to the Committee on Homeland Secu-
rity and Governmental Affairs of the Senate, the 
Committee on Oversight and Government Reform of 
the House of Representatives, and the Postal Regu-
latory Commission with the President’s budget sub-
mission under section 1105(a) of title 31 a report 
that details the Postal Service’s progress in imple-
menting the Innovation Strategy. 
‘‘(2) MATTERS TO BE ADDRESSED.—At a min-
imum, the report required by this section shall ad-
dress— 
‘‘(A) the revenue generated by each prod-
uct and service developed through the Innova-
tion Strategy and the costs of developing and 
offering each such product and service for the 
most recent fiscal year; 
‘‘(B) the total sales volume and revenue 
generated by each product and service on a 
monthly basis for the preceding year; 
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‘‘(C) trends in the markets filled by each 
product and service; 
‘‘(D) products and services identified in 
the Innovation Strategy that are to be discon-
tinued, the date on which the discontinuance 
will occur, and the reasons for the discontinu-
ance; 
‘‘(E) alterations in products and services 
identified in the Innovation Strategy that will 
be made to meet changing market conditions, 
and an explanation of how these alterations will 
ensure the success of the products and services; 
and 
‘‘(F) the performance of the Innovation 
Strategy according to the metrics identified in 
subsection (d)(2)(G). 
‘‘(f) COMPTROLLER GENERAL.— 
‘‘(1) IN GENERAL.—The Comptroller General 
shall conduct a study on the implementation of the 
innovation strategy not later than 4 years after the 
date of enactment of this section. 
‘‘(2) CONTENTS.—At a minimum, the Comp-
troller General shall assess the effectiveness of the 
Postal Service in identifying, developing, and selling 
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innovative postal and nonpostal products and serv-
ices. The study shall also include— 
‘‘(A) an audit of the costs of developing 
each innovative postal and nonpostal product 
and service developed or offered by the Postal 
Service during the period beginning on the date 
of enactment of this section and ending 4 years 
after such date; 
‘‘(B) the sales volume of each such product 
and service; 
‘‘(C) the revenues and profits generated by 
each such product and service; and 
‘‘(D) the likelihood of continued success of 
each such product and service. 
‘‘(3) SUBMISSION.—The results of the study re-
quired under this subsection shall be submitted 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.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 2 is amended by adding at 
the end the following: 
‘‘209. USPS innovation officer and accountability.’’. 
SEC. 102. AUTHORITY TO OFFER NONPOSTAL SERVICES. 
(a) SPECIFIC POWER.—Section 404(a) is amended— 
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(1) in paragraph (7), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (8), by striking the period and 
inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(9) to provide nonpostal services in accordance 
with subsection (e).’’. 
(b) NONPOSTAL
SERVICES.—Section 404(e) is 
amended to read as follows: 
‘‘(e)(1) The Postal Service may provide nonpostal 
services that use the processing, transportation, delivery, 
retail network, technology, or other resources of the Postal 
Service in a manner consistent with the public interest. 
‘‘(2) At least 90 days before offering new nonpostal 
services, the Postal Service shall request an advisory opin-
ion from the Postal Regulatory Commission that evaluates 
the extent to which the provision of such nonpostal serv-
ices— 
‘‘(A) would use the processing, transportation, 
delivery, retail network, technology, or other re-
sources of the Postal Service; and 
‘‘(B) would be consistent with the public inter-
est. 
‘‘(3) Within 45 days after receiving the request under 
paragraph (2), the Postal Regulatory Commission— 
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