I 
112TH CONGRESS 
1ST SESSION H. R. 2309 
To restore the financial solvency of the United States Postal Service and 
to ensure the efficient and affordable nationwide delivery of mail. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 23, 2011 
Mr. ISSA (for himself and Mr. ROSS of Florida) introduced the following bill; 
which was referred to the Committee on Oversight and Government Re-
form, and in addition to the Committee on Rules, for a period to be sub-
sequently determined by the Speaker, in each case for consideration of 
such provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To restore the financial solvency of the United States Postal 
Service and to ensure the efficient and affordable nation-
wide delivery of mail. 
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 
‘‘Postal Reform Act of 2011’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
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Sec. 1. Short title; table of contents; references. 
TITLE I—POSTAL SERVICE MODERNIZATION 
Subtitle A—Commission on Postal Reorganization 
Sec. 101. Short title. 
Sec. 102. Definitions. 
Sec. 103. Commission on Postal Reorganization. 
Sec. 104. Recommendations for closures and consolidations. 
Sec. 105. Implementation of closures and consolidations. 
Sec. 106. Congressional consideration of final CPR reports. 
Sec. 107. Nonappealability of decisions. 
Sec. 108. Rules of construction. 
Subtitle B—Other Provisions 
Sec. 111. Frequency of mail delivery. 
Sec. 112. Efficient and flexible universal postal service. 
Sec. 113. More cost-efficient Postal Service contracting. 
Sec. 114. Enhanced reporting on Postal Service efficiency. 
TITLE II—POSTAL SERVICE FINANCIAL RESPONSIBILITY AND 
MANAGEMENT ASSISTANCE AUTHORITY 
Subtitle A—Establishment and Organization 
Sec. 201. Purposes. 
Sec. 202. Establishment of the Authority. 
Sec. 203. Membership and qualification requirements. 
Sec. 204. Organization. 
Sec. 205. Executive Director and staff. 
Sec. 206. Funding. 
Subtitle B—Powers of the Authority 
Sec. 211. Powers. 
Sec. 212. Exemption from liability for claims. 
Sec. 213. Treatment of actions arising under this title. 
Subtitle C—Establishment and Enforcement of Financial Plan and Budget 
for the Postal Service 
Sec. 221. Development of financial plan and budget for the Postal Service. 
Sec. 222. Supplementary borrowing authority during a control period. 
Sec. 223. Process for submission and approval of financial plan and budget. 
Sec. 224. Responsibilities of the Authority. 
Sec. 225. Effect of finding noncompliance with financial plan and budget. 
Sec. 226. Recommendations regarding financial stability, etc. 
Sec. 227. Special rules for fiscal year in which control period commences. 
Sec. 228. Assistance in achieving financial stability, etc. 
Sec. 229. Obtaining reports. 
Sec. 230. Reports and comments. 
Subtitle D—Termination of a Control Period 
Sec. 231. Termination of control period, etc. 
Sec. 232. Congressional consideration of recommendation. 
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TITLE III—POSTAL SERVICE WORKFORCE 
Subtitle A—General Provisions 
Sec. 301. Modifications relating to determination of pay comparability. 
Sec. 302. Limitation on postal contributions under FEGLI and FEHBP. 
Sec. 303. Repeal of provision relating to overall value of fringe benefits. 
Sec. 304. Modifications relating to collective bargaining. 
Subtitle B—Postal Service Workers’ Compensation Reform 
Sec. 311. Sense of Congress. 
TITLE IV—POSTAL SERVICE REVENUE 
Sec. 401. Adequacy, efficiency, and fairness of postal rates. 
Sec. 402. Repeal of rate preferences for qualified political committees. 
Sec. 403. Rate preferences for nonprofit advertising. 
Sec. 404. Streamlined review of qualifying service agreements for competitive 
products. 
Sec. 405. Submission of service agreements for streamlined review. 
Sec. 406. Transparency and accountability for service agreements. 
Sec. 407. Nonpostal services. 
TITLE V—POSTAL CONTRACTING REFORM 
Sec. 501. Contracting provisions. 
Sec. 502. Technical amendment to definition. 
(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 
MODERNIZATION 
Subtitle A—Commission on Postal 
Reorganization 
SEC. 101. SHORT TITLE. 
This subtitle may be cited as the ‘‘Commission on 
Postal Reorganization Act’’ or the ‘‘CPR Act’’. 
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SEC. 102. DEFINITIONS. 
For purposes of this title— 
(1) the term ‘‘Postal Service’’ means the United 
States Postal Service; 
(2) the term ‘‘postal retail facility’’ means a 
post office, post office branch, post office classified 
station, or other facility which is operated by the 
Postal Service, and the primary function of which is 
to provide retail postal services; 
(3) the term ‘‘mail processing facility’’ means a 
processing and distribution center, processing and 
distribution facility, network distribution center, or 
other facility which is operated by the Postal Serv-
ice, and the primary function of which is to sort and 
process mail; 
(4) the term ‘‘district office’’ means the central 
office of an administrative field unit with responsi-
bility for postal operations in a designated geo-
graphic area (as defined under regulations, direc-
tives, or other guidance of the Postal Service, as in 
effect on June 23, 2011); 
(5) the term ‘‘area office’’ means the central of-
fice of an administrative field unit with responsibility 
for postal operations in a designated geographic area 
which is comprised of designated geographic areas 
as referred to in paragraph (4); 
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(6) the term ‘‘baseline year’’ means the fiscal 
year last ending before the date of the enactment of 
this Act; and 
(7) the term ‘‘Member of Congress’’ has the 
meaning given such term by section 2106 of title 5, 
United States Code. 
SEC. 103. COMMISSION ON POSTAL REORGANIZATION. 
(a) ESTABLISHMENT.—There shall be established, 
not later than 90 days after the date of the enactment 
of this Act, an independent commission to be known as 
the ‘‘Commission on Postal Reorganization’’ (hereinafter 
in this section referred to as the ‘‘Commission’’). 
(b) DUTIES.—The Commission shall carry out the 
duties specified for it in this subtitle. 
(c) MEMBERS.— 
(1) IN
GENERAL.—The Commission shall be 
composed of 5 members who shall be appointed by 
the President, and of whom— 
(A) 1 shall be appointed from among indi-
viduals recommended by the Speaker of the 
House of Representatives; 
(B) 1 shall be appointed from among indi-
viduals recommended by the majority leader of 
the Senate; 
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(C) 1 shall be appointed from among indi-
viduals recommended by the minority leader of 
the House of Representatives; 
(D) 1 shall be appointed from among indi-
viduals recommended by the minority leader of 
the Senate; and 
(E) 1 shall be appointed from among indi-
viduals recommended by the Comptroller Gen-
eral. 
(2) QUALIFICATIONS.— 
(A) IN GENERAL.—Members of the Com-
mission shall be chosen to represent the public 
interest generally, and shall not be representa-
tives of specific interests using the Postal Serv-
ice. 
(B) INELIGIBILITY.—An individual may 
not be appointed to serve as a member of the 
Commission if such individual served as an em-
ployee of the Postal Service or the Postal Regu-
latory Commission, or of a labor organization 
representing employees of the Postal Service or 
the Postal Regulatory Commission, during the 
3-year period ending on the date of such ap-
pointment. 
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(3) POLITICAL AFFILIATION.—Not more than 3 
members of the Commission may be of the same po-
litical party. 
(d) TERMS.—Each member of the Commission shall 
be appointed for the life of the Commission and may be 
removed only for cause. 
(e) VACANCIES.—A vacancy in the Commission shall 
be filled in the same manner as the original appointment. 
(f) CHAIRMAN.—The President shall, at the time of 
making appointments under subsection (c), designate one 
of the members to serve as chairman of the Commission. 
(g) COMPENSATION AND TRAVEL EXPENSES.— 
(1) COMPENSATION.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), each member of the Com-
mission shall be paid at a rate equal to the 
daily equivalent of $40,000 per year for each 
day (including travel time) during which the 
member is engaged in the actual performance of 
duties vested in the Commission. 
(B) EXCEPTION.—Any member of the 
Commission who is a full-time officer or em-
ployee of the United States or a Member of 
Congress may not receive additional pay, allow-
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ances, or benefits by reason of such member’s 
service on the Commission. 
(2) TRAVEL
EXPENSES.—Each member shall 
receive travel expenses, including per diem in lieu of 
subsistence, in accordance with applicable provisions 
of subchapter I of chapter 57 of title 5, United 
States Code. 
(h) DIRECTOR.—The Commission shall have a Direc-
tor who shall be appointed by the Commission. The Direc-
tor shall be paid at the rate of basic pay for level IV of 
the Executive Schedule under section 5315 of title 5, 
United States Code. An appointment under this sub-
section shall be subject to the requirements of subsection 
(c)(2). 
(i) ADDITIONAL PERSONNEL.—With the approval of 
the Commission, the Director may appoint and fix the pay 
of such additional personnel as the Director considers ap-
propriate. Such additional personnel may be appointed 
without regard to the provisions of title 5, United States 
Code, governing appointments in the competitive service, 
and may be paid without regard to the provisions of chap-
ter 51 and subchapter III of chapter 53 of such title relat-
ing to classification and General Schedule pay rates, ex-
cept that an individual so appointed may not receive pay 
at a rate of basic pay in excess of the rate of basic pay 
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payable to the Director. An individual appointed under 
this subsection shall serve at the pleasure of the Director. 
(j) PROVISIONS RELATING TO DETAILS.— 
(1) IN GENERAL.—Upon request of the Direc-
tor, the head of any Federal department or agency 
may detail any of the personnel of such department 
or agency to the Commission to assist the Commis-
sion in carrying out its duties under this subtitle. 
Notwithstanding any other provision of law, to pro-
vide continuity in the work of the Commission, such 
details may be extended beyond 1 year at the re-
quest of the Director. 
(2) NUMERICAL LIMITATION.—Not more than 
1⁄3 of the personnel of the Commission may consist 
of individuals on detail from the Postal Service or 
the Postal Regulatory Commission. 
(3) OTHER LIMITATIONS.—A person may not 
be detailed to the Commission from the Postal Serv-
ice or the Postal Regulatory Commission if such per-
son participated personally and substantially on any 
matter, within the Postal Service or the Postal Reg-
ulatory Commission, concerning the preparation of 
recommendations for closures or consolidations of 
postal facilities under this subtitle. No employee of 
the Postal Service or the Postal Regulatory Commis-
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sion (including a detailee to the Postal Service or 
the Postal Regulatory Commission) may— 
(A) prepare any report concerning the ef-
fectiveness, fitness, or efficiency of the perform-
ance, on the staff of the Commission, of any 
person detailed from the Postal Service or the 
Postal Regulatory Commission to such staff; 
(B) review the preparation of such a re-
port; or 
(C) approve or disapprove such a report. 
(k) OTHER AUTHORITIES.— 
(1) EXPERTS AND CONSULTANTS.—The Com-
mission may procure by contract, to the extent funds 
are available, temporary or intermittent services 
under section 3109 of title 5, United States Code. 
(2) LEASING, ETC.—The Commission may lease 
space and acquire personal property to the extent 
funds are available. 
(l) AUTHORIZATION OF APPROPRIATIONS.—In order 
to carry out this section, there are authorized to be appro-
priated out of the Postal Service Fund $20,000,000, 
which funds shall remain available until expended. 
(m) FINANCIAL REPORTING.— 
(1) AUDIT AND EXPENDITURES.—The Commis-
sion shall be responsible for issuing annual financial 
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statements and for establishing and maintaining 
adequate controls over its financial reporting. 
(2) INTERNAL AUDITS.—The Commission shall 
maintain an adequate internal audit of its financial 
transactions. 
(3) ANNUAL CERTIFICATION.—The Commission 
shall obtain an annual certification for each fiscal 
year from an independent, certified public account-
ing firm of the accuracy of its financial statements. 
(4) COMPTROLLER
GENERAL.—The accounts 
and operations of the Commission shall be audited 
by the Comptroller General and reports thereon 
made to the Congress to the extent and at such 
times as the Comptroller General may determine. 
(n) TERMINATION.—The Commission shall terminate 
60 days after submitting its final reports under section 
104(d)(3). 
SEC. 104. RECOMMENDATIONS FOR CLOSURES AND CON-
SOLIDATIONS. 
(a) PLAN FOR THE CLOSURE OR CONSOLIDATION OF 
POSTAL RETAIL FACILITIES.— 
(1) IN
GENERAL.—Not later than 120 days 
after the date of the enactment of this Act, the Post-
al Service, in consultation with the Postal Regu-
latory Commission, shall develop and submit to the 
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Commission on Postal Reorganization a plan for the 
closure or consolidation of such postal retail facilities 
as the Postal Service considers necessary and appro-
priate so that the total annual costs attributable to 
the operation of postal retail facilities will be, for 
each fiscal year beginning at least 2 years after the 
date on which the Commission transmits to Con-
gress its final report under subsection (d)(3)(A) re-
lating to this subsection, at least $1,000,000,000 
less than the corresponding total annual costs for 
the baseline year. 
(2) CONTENTS.—The plan shall include— 
(A) a list of the postal retail facilities pro-
posed for closure or consolidation under this 
subtitle; 
(B) a proposed schedule under which— 
(i) closures and consolidations of post-
al retail facilities would be carried out 
under this subtitle; and 
(ii) all closures and consolidations of 
postal retail facilities under this subtitle 
would be completed by not later than 2 
years after the date on which the Commis-
sion transmits to Congress its final report 
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under subsection (d)(3)(A) relating to such 
plan; 
(C) the estimated total annual cost savings 
attributable to the proposed closures and con-
solidations described in the plan; 
(D) the criteria and process used to de-
velop the information described in subpara-
graphs (A) and (B); 
(E) the methodology and assumptions used 
to derive the estimates described in subpara-
graph (C); and 
(F) any changes to the processing, trans-
portation, delivery, or other postal operations 
anticipated as a result of the proposed closures 
and consolidations described in the plan. 
(3) CONSISTENCY.—The methodology and as-
sumptions used to derive the cost estimates de-
scribed in paragraph (2)(C) shall be consistent with 
the methodology and assumptions which would have 
been used by the Postal Service if those closures and 
consolidations had instead taken effect in the base-
line year. 
(b) PLAN FOR THE CLOSURE OR CONSOLIDATION OF 
MAIL PROCESSING FACILITIES.— 
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(1) IN
GENERAL.—Not later than 300 days 
after the date of the enactment of this Act, the Post-
al Service, in consultation with the Inspector Gen-
eral of the United States Postal Service, shall de-
velop and submit to the Commission on Postal Reor-
ganization a plan for the closure or consolidation of 
such mail processing facilities as the Postal Service 
considers necessary and appropriate so that— 
(A) the total annual costs attributable to 
the operation of mail processing facilities will 
be, for each fiscal year beginning at least 2 
years after the date on which the Commission 
transmits to Congress its final report under 
subsection (d)(3)(A) relating to this subsection, 
at least $1,000,000,000 less than the cor-
responding total annual costs for the baseline 
year; and 
(B) the Postal Service has, for fiscal years 
beginning at least 2 years after the date on 
which the Commission transmits to Congress its 
final report under subsection (d)(3)(A) relating 
to this subsection, no more than 10 percent ex-
cess mail processing capacity. 
(2) CONTENTS.—The plan shall include— 
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(A) a list of the mail processing facilities 
proposed for closure or consolidation under this 
subtitle; 
(B) a proposed schedule under which— 
(i) closures and consolidations of mail 
processing facilities would be carried out 
under this subtitle; and 
(ii) all closures and consolidations of 
mail processing facilities under this sub-
title would be completed by not later than 
2 years after the date on which the Com-
mission transmits to Congress its final re-
port under subsection (d)(3)(A) relating to 
such plan; 
(C) the estimated total annual cost savings 
attributable to the proposed closures and con-
solidations described in the plan; 
(D) the criteria and process used to de-
velop the information described in subpara-
graphs (A) and (B); 
(E) the methodology and assumptions used 
to derive the estimates described in subpara-
graph (C); and 
(F) any changes to the processing, trans-
portation, delivery, or other postal operations 
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anticipated as a result of the proposed closures 
and consolidations described in the plan. 
(3) CONSISTENCY.—The methodology and as-
sumptions used to derive the cost estimates de-
scribed in paragraph (2)(C) shall be consistent with 
the methodology and assumptions which would have 
been used by the Postal Service if those closures and 
consolidations had instead taken effect in the base-
line year. 
(4) EXCESS MAIL PROCESSING CAPACITY.—The 
Commission shall cause to be published in the Fed-
eral Register notice of a proposed definition of ‘‘ex-
cess mail processing capacity’’ for purposes of this 
section within 120 days after the date of the enact-
ment of this Act, and shall provide a period of 30 
days for public comment on the proposed definition. 
Not later than 180 days after the date of the enact-
ment of this Act, the Commission shall issue and 
cause to be published in the Federal Register a final 
definition of ‘‘excess mail processing capacity’’ for 
purposes of this section. Such definition shall in-
clude an estimate of the total amount of excess mail 
processing capacity in mail processing facilities as of 
the date of the enactment of this Act. 
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(c) PLAN FOR THE CLOSURE OR CONSOLIDATION OF 
AREA AND DISTRICT OFFICES.— 
(1) IN
GENERAL.—Not later than 300 days 
after the date of the enactment of this Act, the Post-
al Service, in consultation with the Inspector Gen-
eral of the United States Postal Service, shall de-
velop and submit to the Commission on Postal Reor-
ganization a plan for the closure or consolidation of 
such area and district offices as the Postal Service 
considers necessary and appropriate so that the com-
bined total number of area and district offices will 
be, for each fiscal year beginning at least 2 years 
after the date on which the Commission transmits to 
Congress its final report under subsection (d)(3)(A) 
relating to this subsection, at least 30 percent less 
than the corresponding combined total for the base-
line year. 
(2) CONTENTS.—The plan shall include— 
(A) a list of the area and district offices 
proposed for closure or consolidation under this 
subtitle; 
(B) a proposed schedule under which— 
(i) closures and consolidations of area 
and district offices would be carried out 
under this subtitle; and 
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(ii) all closures and consolidations of 
area and district offices under this subtitle 
would be completed by not later than 2 
years after the date on which the Commis-
sion transmits to Congress its final report 
under subsection (d)(3)(A) relating to such 
plan; 
(C) the estimated total annual cost savings 
attributable to the proposed closures and con-
solidations described in the plan; 
(D) the criteria and process used to de-
velop the information described in subpara-
graphs (A) and (B); 
(E) the methodology and assumptions used 
to derive the estimates described in subpara-
graph (C); and 
(F) any changes to the processing, trans-
portation, delivery, or other postal operations 
anticipated as a result of the proposed closures 
and consolidations described in the plan. 
(3) CONSISTENCY.—The methodology and as-
sumptions used to derive the cost estimates de-
scribed in paragraph (2)(C) shall be consistent with 
the methodology and assumptions which would have 
been used by the Postal Service if those closures and 
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consolidations had instead taken effect in the base-
line year. 
(d) REVIEW AND RECOMMENDATIONS OF THE COM-
MISSION.— 
(1) INITIAL REPORTS.— 
(A) IN GENERAL.—After receiving the plan 
of the Postal Service under subsection (a), (b), 
or (c), the Commission on Postal Reorganiza-
tion shall transmit to Congress and publish in 
the Federal Register a report under this para-
graph, which shall contain the Commission’s 
findings based on a review and analysis of such 
plan, together with the Commission’s initial rec-
ommendations for closures and consolidations 
of postal facilities, mail processing facilities, or 
area and district offices (as the case may be). 
(B) EXPLANATION
OF
CHANGES.—The 
Commission shall explain and justify in its re-
port any recommendations made by the Com-
mission that are different from those contained 
in the Postal Service plan to which such report 
pertains. 
(C) DEADLINES.—A report of the Commis-
sion under this paragraph shall be transmitted 
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and published, in accordance with subparagraph 
(A), within— 
(i) if the report pertains to the plan 
under subsection (a), 60 days after the 
date on which the Commission receives 
such plan; or 
(ii) if the report pertains to the plan 
under subsection (b) or (c), 90 days after 
the date on which the Commission receives 
such plan. 
(2) PUBLIC HEARINGS.— 
(A) IN GENERAL.—After receiving the plan 
of the Postal Service under subsection (a), (b), 
or (c), the Commission on Postal Reorganiza-
tion shall conduct at least 5 public hearings on 
such plan. The hearings shall be conducted in 
geographic areas chosen so as to reflect a 
broadly representative range of needs and inter-
ests. 
(B) TESTIMONY.—All testimony before the 
Commission at a public hearing conducted 
under this paragraph shall be given under oath. 
(C) DEADLINES.—All hearings under this 
paragraph shall be completed within 60 days 
after the date as of which the Commission sat-
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isfies the requirements of paragraph (1) with 
respect to such plan. 
(3) FINAL REPORTS.— 
(A) IN GENERAL.—After satisfying the re-
quirements of paragraph (2) with respect to the 
plan of the Postal Service under subsection (a), 
(b), or (c) (as the case may be), the Commis-
sion shall transmit to Congress and publish in 
the Federal Register a report under this para-
graph containing a summary of the hearings 
conducted with respect to such plan, together 
with the Commission’s final recommendations 
for closures and consolidations of postal facili-
ties, mail processing facilities, or area and dis-
trict offices (as the case may be). 
(B) APPROVAL.—Recommendations under 
subparagraph (A) shall not be considered to be 
final recommendations unless they are made 
with— 
(i) except as provided in clause (ii), 
the concurrence of at least 4 members of 
the Commission; or 
(ii) to the extent that the require-
ments of subsection (b)(1)(A) or (c)(1) are 
not met, with the concurrence of all sitting 
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members, but only if the shortfall (relative 
to the requirements of subsection (b)(1)(A) 
or (c)(1), as the case may be) does not ex-
ceed 25 percent. 
(C) CONTENTS.—A report under this para-
graph shall include— 
(i) the information required by para-
graph (2) of subsection (a), (b), or (c) (as 
the case may be); and 
(ii) a description of the operations 
that will be affected by the closure or con-
solidation and the facilities or offices which 
will be performing or ceasing to perform 
such operations as a result of such closure 
or consolidation. 
(D) DEADLINES.—A report of the Com-
mission under this paragraph shall be trans-
mitted and published, in accordance with sub-
paragraph (A), within 60 days after the date as 
of which the Commission satisfies the require-
ments of paragraph (2) with respect to the plan 
involved. 
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SEC. 105. IMPLEMENTATION OF CLOSURES AND CONSOLI-
DATIONS. 
(a) IN GENERAL.—Subject to subsection (b), the 
Postal Service shall— 
(1) close or consolidate (as the case may be) the 
facilities and offices recommended by the Commis-
sion in each of its final reports under section 
104(d)(3); and 
(2) carry out those closures and consolidations 
in accordance with the timetable recommended by 
the Commission in such report, except that in no 
event shall any such closure or consolidation be com-
pleted later than 2 years after the date on which 
such report is submitted to Congress. 
(b) CONGRESSIONAL DISAPPROVAL.— 
(1) IN GENERAL.—The Postal Service may not 
carry out any closure or consolidation recommended 
by the Commission in a final report if a joint resolu-
tion disapproving the recommendations of the Com-
mission is enacted, in accordance with section 106, 
before the earlier of— 
(A) the end of the 30-day period beginning 
on the date on which the Commission transmits 
those recommendations to Congress under sec-
tion 104(d)(3); or 
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(B) the adjournment of the Congress sine 
die for the session during which such report is 
transmitted. 
(2) DAYS OF SESSION.—For purposes of para-
graph (1) and subsections (a) and (c) of section 106, 
the days on which either House of Congress is not 
in session because of an adjournment of more than 
7 days to a day certain shall be excluded in the com-
putation of a period. 
SEC. 106. CONGRESSIONAL CONSIDERATION OF FINAL CPR 
REPORTS. 
(a) TERMS OF THE RESOLUTION.—For purposes of 
this subtitle, the term ‘‘joint resolution’’, as used with re-
spect to a report under section 104(d)(3), means only a 
joint resolution— 
(1) which is introduced within the 10-day pe-
riod beginning on the date on which such report is 
received by Congress; 
(2) the matter after the resolving clause of 
which is as follows: ‘‘That Congress disapproves the 
recommendations of the Commission on Postal Reor-
ganization, submitted by such Commission on ll, 
and pertaining to the closure or consolidation of 
ll.’’, the first blank space being filled in with the 
appropriate date and the second blank space being 
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filled in with ‘‘postal facilities’’, ‘‘mail processing fa-
cilities’’, or ‘‘area and district offices’’ (as the case 
may be); 
(3) the title of which is as follows: ‘‘Joint reso-
lution disapproving the recommendations of the 
Commission on Postal Reorganization.’’; and 
(4) which does not have a preamble. 
(b) REFERRAL.—A resolution described in subsection 
(a) that is introduced in the House of Representatives or 
the Senate shall be referred to the appropriate committees 
of the House of Representatives or the Senate, respec-
tively. 
(c) DISCHARGE.—If the committee to which a resolu-
tion described in subsection (a) is referred has not re-
ported such resolution (or an identical resolution) by the 
end of the 20-day period beginning on the date on which 
the Commission transmits the report (to which such reso-
lution pertains) to Congress under section 104(d)(3), such 
committee shall, at the end of such period, be discharged 
from further consideration of such resolution, and such 
resolution shall be placed on the appropriate calendar of 
the House involved. 
(d) CONSIDERATION.— 
(1) IN GENERAL.—On or after the third day 
after the date on which the committee to which such 
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a resolution is referred has reported, or has been 
discharged (under subsection (c)) from further con-
sideration of, such a resolution, it is in order (even 
though a previous motion to the same effect has 
been disagreed to) for any Member of the respective 
House to move to proceed to the consideration of the 
resolution. A Member may make the motion only on 
the day after the calendar day on which the Member 
announces to the House concerned the Member’s in-
tention to make the motion, except that, in the case 
of the House of Representatives, the motion may be 
made without such prior announcement if the mo-
tion is made by direction of the committee to which 
the resolution was referred. All points of order 
against the resolution (and against consideration of 
the resolution) are waived. The motion is highly 
privileged in the House of Representatives and is 
privileged in the Senate and is not debatable. The 
motion is not subject to amendment, or to a motion 
to postpone, or to a motion to proceed to the consid-
eration of other business. A motion to reconsider the 
vote by which the motion is agreed to or disagreed 
to shall not be in order. If a motion to proceed to 
the consideration of the resolution is agreed to, the 
respective House shall immediately proceed to con-
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sideration of the joint resolution without intervening 
motion, order, or other business, and the resolution 
shall remain the unfinished business of the respec-
tive House until disposed of. 
(2) DEBATE.—Debate on the resolution, and on 
all debatable motions and appeals in connection 
therewith, shall be limited to not more than 2 hours, 
which shall be divided equally between those favoring 
and those opposing the resolution. An amendment to 
the resolution is not in order. A motion further to 
limit debate is in order and not debatable. A motion 
to postpone, or a motion to proceed to the consider-
ation of other business, or a motion to recommit the 
resolution is not in order. A motion to reconsider the 
vote by which the resolution is agreed to or dis-
agreed to is not in order. 
(3) VOTE
ON
FINAL
PASSAGE.—Immediately 
following the conclusion of the debate on a resolu-
tion described in subsection (a) and a single quorum 
call at the conclusion of the debate if requested in 
accordance with the rules of the appropriate House, 
the vote on final passage of the resolution shall 
occur. 
(4) APPEALS.—Appeals from the decisions of 
the Chair relating to the application of the rules of 
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the Senate or the House of Representatives, as the 
case may be, to the procedure relating to a resolu-
tion described in subsection (a) shall be decided 
without debate. 
(e) CONSIDERATION BY OTHER HOUSE.— 
(1) IN GENERAL.—If, before the passage by one 
House of a resolution of that House described in 
subsection (a), that House receives from the other 
House a resolution (described in subsection (a)) re-
lating to the same report, then the following proce-
dures shall apply: 
(A) The resolution of the other House shall 
not be referred to a committee and may not be 
considered in the House receiving it except in 
the case of final passage as provided in sub-
paragraph (B)(ii). 
(B) With respect to the resolution de-
scribed in subsection (a) (relating to the report 
in question) of the House receiving the resolu-
tion— 
(i) the procedure in that House shall 
be the same as if no resolution (relating to 
the same report) had been received from 
the other House; but 
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(ii) the vote on final passage shall be 
on the resolution of the other House. 
(2) DISPOSITION
OF
A
RESOLUTION.—Upon 
disposition of the resolution received from the other 
House, it shall no longer be in order to consider the 
resolution that originated in the receiving House. 
(f) RULES OF THE SENATE AND HOUSE.—This sec-
tion is enacted by Congress— 
(1) as an exercise of the rulemaking power of 
the Senate and House of Representatives, respec-
tively, and as such it is deemed a part of the rules 
of each House, respectively, but applicable only with 
respect to the procedure to be followed in that 
House in the case of a resolution described in sub-
section (a), and it supersedes other rules only to the 
extent that it is inconsistent with such rules; and 
(2) with full recognition of the constitutional 
right of either House to change the rules (so far as 
relating to the procedure of that House) at any time, 
in the same manner, and to the same extent as in 
the case of any other rule of that House. 
SEC. 107. NONAPPEALABILITY OF DECISIONS. 
(a) TO PRC.—The closing or consolidation of any fa-
cility or office under this subtitle may not be appealed to 
the Postal Regulatory Commission under section 404(d) 
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or any other provision of title 39, United States Code, or 
the subject of an advisory opinion issued by the Postal 
Regulatory Commission under section 3661 of such title. 
(b) JUDICIAL REVIEW.—No process, report, rec-
ommendation, or other action of the Commission on Postal 
Reorganization shall be subject to judicial review. 
SEC. 108. RULES OF CONSTRUCTION. 
(a) CONTINUED AVAILABILITY OF AUTHORITY TO 
CLOSE OR CONSOLIDATE POSTAL FACILITIES.— 
(1) IN GENERAL.—Nothing in this subtitle shall 
be considered to prevent the Postal Service from 
closing or consolidating any postal facilities, in ac-
cordance with otherwise applicable provisions of law, 
either before or after the implementation of any clo-
sures or consolidations under this subtitle. 
(2) COORDINATION RULE.—No appeal or deter-
mination under section 404(d) of title 39, United 
States Code, or any other provision of law shall 
delay, prevent, or otherwise affect any closure or 
consolidation under this subtitle. 
(b) INAPPLICABILITY OF CERTAIN PROVISIONS.— 
(1) IN GENERAL.—The provisions of law identi-
fied in paragraph (2)— 
(A) shall not apply to any closure or con-
solidation carried out under this subtitle; and 
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(B) shall not be taken into account for 
purposes of carrying out section 103 or 104. 
(2) PROVISIONS
IDENTIFIED.—The provisions 
of law under this paragraph are— 
(A) section 101(b) of title 39, United 
States Code; and 
(B) section 404(d) of title 39, United 
States Code. 
Subtitle B—Other Provisions 
SEC. 111. FREQUENCY OF MAIL DELIVERY. 
Section 101 is amended by adding at the end the fol-
lowing: 
‘‘(h) Nothing in this title or any other provision of 
law shall be considered to prevent the Postal Service from 
taking whatever actions may be necessary to provide for 
5-day delivery of mail and a commensurate adjustment in 
rural delivery of mail, subject to the requirements of sec-
tion 3661.’’. 
SEC. 112. EFFICIENT AND FLEXIBLE UNIVERSAL POSTAL 
SERVICE. 
(a) POSTAL POLICY.— 
(1) IN GENERAL.—Section 101(b) is amended 
to read as follows: 
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‘‘(b) The Postal Service shall provide effective and 
regular postal services to rural areas, communities, and 
small towns where post offices are not self-sustaining.’’. 
(2) CONFORMING
AMENDMENTS.—(A) Clause 
(iii) of section 404(d)(2)(A) is amended to read as 
follows: 
‘‘(iii) whether such closing or consolidation 
is consistent with the policy of the Government, 
as stated in section 101(b), that the Postal 
Service shall provide effective and regular post-
al services to rural areas, communities, and 
small towns where post offices are not self-sus-
taining;’’. 
(B) Section 2401(b)(1) is amended (in the mat-
ter before subparagraph (A)), by striking ‘‘a max-
imum degree of’’. 
(b) GENERAL DUTY.—Paragraph (3) of section 
403(b) is amended to read as follows: 
‘‘(3) to ensure that postal patrons throughout 
the Nation will, consistent with reasonable econo-
mies of postal operations, have ready access to es-
sential postal services.’’. 
(c) PRC REVIEW OF DETERMINATIONS TO CLOSE 
OR CONSOLIDATE A POST OFFICE.— 
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(1) 
DEADLINE
FOR
REVIEW.—Section 
404(d)(5) is amended by striking ‘‘120 days’’ and 
inserting ‘‘60 days’’. 
(2) EXCLUSION FROM REVIEW.—Section 404(d) 
is amended by adding at the end the following: 
‘‘(7)(A) The appeals process set forth in paragraph 
(5) shall not apply to a determination of the Postal Service 
to close a post office if there is located, within 2 miles 
of such post office, a qualified contract postal unit. 
‘‘(B) For purposes of this paragraph— 
‘‘(i) the term ‘contract postal unit’ means a 
store or other place of business which— 
‘‘(I) is not owned or operated by the Postal 
Service; and 
‘‘(II) in addition to its usual operations, 
provides postal services to the general public 
under contract with the Postal Service; and 
‘‘(ii) the term ‘qualified contract postal unit’, as 
used in connection with a post office, means a con-
tract postal unit which— 
‘‘(I) begins to provide postal services to the 
general public during the period— 
‘‘(aa) beginning 1 year before the date 
on which the closure or consolidation of 
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such post office is scheduled to take effect; 
and 
‘‘(bb) ending on the 15th day after 
the date on which the closure or consolida-
tion of such post office is scheduled to take 
effect; and 
‘‘(II) has not, pursuant to subparagraph 
(A), served as the basis for exempting any other 
post office from the appeals process set forth in 
paragraph (5). 
‘‘(C)(i) If the contract postal unit (which is providing 
postal services that had been previously provided by the 
post office that was closed) does not continue to provide 
postal services, as required by subparagraph (B)(i)(II), for 
at least the 2-year period beginning on the date on which 
such post office was closed, the contract postal unit shall 
be subject to a closure determination by the Postal Service 
to decide whether a post office must be reopened within 
the area (delimited by the 2-mile radius referred to in sub-
paragraph (A)). 
‘‘(ii) A decision under clause (i) not to reopen a post 
office may be appealed to the Postal Regulatory Commis-
sion under procedures which the Commission shall by reg-
ulation prescribe. Such procedures shall be based on para-
graph (5), except that, for purposes of this clause, para-
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graph (5)(C) shall be applied by substituting ‘in violation 
of section 101(b), leaving postal patrons without effective 
and regular access to postal services’ for ‘unsupported by 
substantial evidence on the record’.’’. 
(3) APPLICABILITY.—The amendments made 
by this subsection shall not apply with respect to 
any appeal, notice of which is received by the Postal 
Regulatory Commission before the date of the enact-
ment of this Act (determined applying the rules set 
forth in section 404(d)(6) of title 39, United States 
Code). 
(d) EXPEDITED PROCEDURES.— 
(1) IN GENERAL.—Section 3661 is amended by 
adding at the end the following: 
‘‘(d)(1) The Commission shall issue its opinion within 
90 days after the receipt of any proposal (as referred to 
in subsection (b)) concerning— 
‘‘(A) the closing or consolidation of post offices 
to a degree that will generally affect service on a na-
tionwide or substantially nationwide basis; or 
‘‘(B) an identical or substantially identical pro-
posal on which the Commission issued an opinion 
within the preceding 5 years. 
‘‘(2) If necessary in order to comply with the 90-day 
requirement under paragraph (1), the Commission may 
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apply expedited procedures which the Commission shall by 
regulation prescribe.’’. 
(2) REGULATIONS.—The Postal Regulatory 
Commission shall prescribe any regulations nec-
essary to carry out the amendment made by para-
graph (1) within 90 days after the date of the enact-
ment of this Act. 
(3) APPLICABILITY.—The amendment made by 
this subsection shall apply with respect to any pro-
posal received by the Postal Regulatory Commission 
on or after the earlier of— 
(A) the 90th day after the date of the en-
actment of this Act; or 
(B) the effective date of the regulations 
under paragraph (2). 
SEC. 113. MORE COST-EFFICIENT POSTAL SERVICE CON-
TRACTING. 
(a) IN GENERAL.—Section 410 is amended— 
(1) in subsection (b), by striking paragraph (4) 
and inserting the following: 
‘‘(4) sections 3114–3116, 3118, 3131, and 
3133;’’; and 
(2) by striking subsection (d). 
(b) APPLICABILITY.—The amendments made by sub-
section (a) shall be effective with respect to contracts and 
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agreements first entered into on or after the date of the 
enactment of this Act. 
SEC. 114. ENHANCED REPORTING ON POSTAL SERVICE EF-
FICIENCY. 
Section 3652(a) is amended— 
(1) in paragraph (1), by striking ‘‘and’’ after 
the semicolon; 
(2) in paragraph (2), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding after paragraph (2) the following: 
‘‘(3) which shall provide the overall change in 
Postal Service productivity and the resulting effect 
of such change on overall Postal Service costs during 
such year, using such methodologies as the Commis-
sion shall by regulation prescribe.’’. 
TITLE II—POSTAL SERVICE FI-
NANCIAL 
RESPONSIBILITY 
AND 
MANAGEMENT 
ASSIST-
ANCE AUTHORITY 
Subtitle A—Establishment and 
Organization 
SEC. 201. PURPOSES. 
(a) PURPOSES.—The purposes of this title are as fol-
lows: 
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(1) To eliminate budget deficits and cash short-
ages of the Postal Service through visionary finan-
cial planning, sound budgeting, accurate revenue 
forecasts, and careful spending. 
(2) To ensure the universal service mandate de-
tailed in section 101 of title 39, United States Code, 
is maintained during a period of fiscal emergency. 
(3) To conduct necessary investigations and 
studies to determine the fiscal status and oper-
ational efficiency of the Postal Service. 
(4) To assist the Postal Service in— 
(A) restructuring its organization and 
workforce to bring expenses in line with dimin-
ishing revenue and generate sufficient profits 
for capital investment and repayment of debt; 
(B) meeting all fiscal obligations to the 
Treasury of the United States; and 
(C) ensuring the appropriate and efficient 
delivery of postal services. 
(5) To provide the Postal Service with a tem-
porary increase in its borrowing authority to enable 
the Postal Service to complete necessary restruc-
turing. 
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(6) To ensure the long-term financial, fiscal, 
and economic vitality and operational efficiency of 
the Postal Service. 
(b) RESERVATION OF POWERS.—Nothing in this title 
may be construed— 
(1) to relieve any obligations existing as of the 
date of the enactment of this Act of the Postal Serv-
ice to the Treasury of the United States; or 
(2) to limit the authority of Congress to exer-
cise ultimate legislative authority over the Postal 
Service. 
SEC. 202. ESTABLISHMENT OF THE AUTHORITY. 
(a) ESTABLISHMENT.—There shall be established, 
upon the commencement of any control period, an entity 
to be known as the ‘‘Postal Service Financial Responsi-
bility and Management Assistance Authority’’ (hereinafter 
in this title referred to as the ‘‘Authority’’). 
(b) CONTROL PERIOD.— 
(1) COMMENCEMENT OF A CONTROL PERIOD.— 
For purposes of this title, a control period com-
mences whenever the Postal Service has been in de-
fault to the Treasury of the United States, with re-
spect to any loans, bonds, notes, or other form of 
borrowing, for a period of at least 30 days. 
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(2) TREATMENT OF AUTHORITIES AND RESPON-
SIBILITIES
OF
THE
BOARD
OF
GOVERNORS, ETC. 
DURING A CONTROL PERIOD.—During a control pe-
riod— 
(A) all authorities and responsibilities of 
the Board of Governors, and the individual 
Governors, of the Postal Service under title 39, 
United States Code, and any other provision of 
law shall be assumed by the Authority; and 
(B) the Board of Governors, and the indi-
vidual Governors, may act in an advisory capac-
ity only. 
(3) TREATMENT OF CERTAIN POSTAL SERVICE 
EXECUTIVES DURING A CONTROL PERIOD.— 
(A) DEFINITION.—For the purposes of 
this section, the term ‘‘Level-Two Postal Serv-
ice Executive’’ includes the Postmaster General, 
the Deputy Postmaster General, and all other 
officers or employees of the Postal Service in 
level two of the Postal Career Executive Service 
(or the equivalent). 
(B) TREATMENT.—Notwithstanding any 
other provision of law or employment contract, 
during a control period— 
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(i) all Level-Two Postal Service Ex-
ecutives shall serve at the pleasure of the 
Authority; 
(ii) the duties and responsibilities of 
all Level-Two Postal Service Executives, as 
well as the terms and conditions of their 
employment (including their compensa-
tion), shall be subject to determination or 
redetermination by the Authority; 
(iii) total compensation of a Level- 
Two Postal Service Executive may not, for 
any year in such control period, exceed the 
annual rate of basic pay payable for level 
I of the Executive Schedule under section 
5312 of title 5, United States Code, for 
such year; for purposes of this clause, the 
term ‘‘total compensation’’ means basic 
pay, bonuses, awards, and all other mone-
tary compensation; 
(iv) the percentage by which the rate 
of basic pay of a Level-Two Postal Service 
Executive is increased during any year in 
such control period may not exceed the 
percentage change in the Consumer Price 
Index for All Urban Consumers, unadjust-
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ed for seasonal variation, for the most re-
cent 12-month period available, except 
that, in the case of a Level-Two Postal 
Service Executive who has had a signifi-
cant change in job responsibilities, a great-
er change shall be allowable if approved by 
the Authority; 
(v) apart from basic pay, a Level-Two 
Postal Service Executive may not be af-
forded any bonus, award, or other mone-
tary compensation for any fiscal year in 
the control period if expenditures of the 
Postal Service for such fiscal year exceeded 
revenues of the Postal Service for such fis-
cal year (determined in accordance with 
generally accepted accounting principles); 
and 
(vi) no deferred compensation may be 
paid, accumulated, or recognized in the 
case of any Level-Two Postal Service Exec-
utive, with respect to any year in a control 
period, which is not generally paid, accu-
mulated, or recognized in the case of em-
ployees of the United States (outside of the 
Postal Service) in level I of the Executive 
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Schedule under section 5312 of title 5, 
United States Code, with respect to such 
year. 
(C) BONUS AUTHORITY.—Section 3686 of 
title 39, United States Code, shall, during the 
period beginning on the commencement date of 
the control period and ending on the termi-
nation date of the control period— 
(i) be suspended with respect to all 
Level-Two Postal Service Executives; but 
(ii) remain in effect for all other offi-
cers and employees of the Postal Service 
otherwise covered by this section. 
(4) TERMINATION
OF
A
CONTROL
PERIOD.— 
Subject to subtitle D, a control period terminates 
upon certification by the Authority, with the concur-
rence of the Secretary of the Treasury and the Di-
rector of the Office of Personnel Management, 
that— 
(A) for 2 consecutive fiscal years (occur-
ring after the date of the enactment of this 
Act), expenditures of the Postal Service did not 
exceed revenues of the Postal Service (as deter-
mined in accordance with generally accepted ac-
counting principles); 
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(B) the Authority has approved a Postal 
Service financial plan and budget that shows 
expenditures of the Postal Service not exceeding 
revenues of the Postal Service (as so deter-
mined) for the fiscal year to which such budget 
pertains and each of the next 3 fiscal years; 
and 
(C) the Postal Service financial plan and 
budget (as referred to in subparagraph (B)) in-
cludes plans— 
(i) for the repayment of any supple-
mentary debt under section 222, in equal 
annual installments over a period of not 
more than 10 years; and 
(ii) to properly fund Postal Service 
pensions and retiree health benefits in ac-
cordance with law. 
SEC. 203. MEMBERSHIP AND QUALIFICATION REQUIRE-
MENTS. 
(a) MEMBERSHIP.— 
(1) IN GENERAL.—The Authority shall consist 
of 5 members appointed by the President who meet 
the qualifications described in subsection (b), except 
that the Authority may take any action under this 
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title at any time after the President has appointed 
4 of its members. 
(2) RECOMMENDATIONS.—Of the 5 members so 
appointed— 
(A) 1 shall be appointed from among indi-
viduals recommended by the Speaker of the 
House of Representatives; 
(B) 1 shall be appointed from among indi-
viduals recommended by the majority leader of 
the Senate; 
(C) 1 shall be appointed from among indi-
viduals recommended by the minority leader of 
the House of Representatives; 
(D) 1 shall be appointed from among indi-
viduals recommended by the minority leader of 
the Senate; and 
(E) 1 shall be appointed from among indi-
viduals recommended by the Comptroller Gen-
eral. 
(3) POLITICAL AFFILIATION.—No more than 3 
members of the Authority may be of the same polit-
ical party. 
(4) CHAIR.—The President shall designate 1 of 
the members of the Authority as the Chair of the 
Authority. 
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(5) SENSE
OF
CONGRESS
REGARDING
DEAD-
LINE FOR APPOINTMENT.—It is the sense of Con-
gress that the President should appoint the members 
of the Authority as soon as practicable after the 
date on which a control period commences, but no 
later than 30 days after such date. 
(6) TERM OF SERVICE.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), each member of the Author-
ity shall be appointed for a term of 3 years. 
(B) APPOINTMENT FOR TERM FOLLOWING 
INITIAL TERM.—As designated by the President 
at the time of appointment for the term imme-
diately following the initial term, of the mem-
bers appointed for the term immediately fol-
lowing the initial term— 
(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) REMOVAL.—The President may re-
move any member of the Authority only for 
cause. 
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(D) NO COMPENSATION FOR SERVICE.— 
Members of the Authority shall serve without 
pay, but may receive reimbursement for any 
reasonable and necessary expenses incurred by 
reason of service on the Authority. 
(b) QUALIFICATION REQUIREMENTS.— 
(1) IN
GENERAL.—An individual meets the 
qualifications for membership on the Authority if the 
individual— 
(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— 
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(A) has been an officer, employee, or pri-
vate contractor with the Postal Service 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 or the Postal Reg-
ulatory Commission. 
SEC. 204. ORGANIZATION. 
(a) ADOPTION OF BY-LAWS FOR CONDUCTING BUSI-
NESS.—As soon as practicable after the appointment of 
its members, the Authority shall adopt by-laws, rules, and 
procedures governing its activities under this title, includ-
ing procedures for hiring experts and consultants. Upon 
adoption, such by-laws, rules, and procedures shall be sub-
mitted by the Authority to the Postmaster General, the 
President, and Congress. 
(b) CERTAIN ACTIVITIES REQUIRING APPROVAL OF 
MAJORITY OF MEMBERS.—Under its by-laws, the Author-
ity may conduct its operations under such procedures as 
it considers appropriate, except that an affirmative vote 
of a majority of the members of the Authority shall be 
required in order for the Authority to— 
(1) approve or disapprove a financial plan and 
budget as described by subtitle C; 
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(2) implement recommendations on financial 
stability and management responsibility under sec-
tion 226; 
(3) take any action under authority of section 
202(b)(3)(B)(i); 
(4) require the immediate renegotiation of an 
existing collective bargaining agreement in accord-
ance with section 211(g)(1); or 
(5) reject, modify, or terminate 1 or more terms 
of an existing collective bargaining agreement in ac-
cordance with section 211(g)(2). 
SEC. 205. EXECUTIVE DIRECTOR AND STAFF. 
(a) EXECUTIVE DIRECTOR.—The Authority shall 
have an Executive Director who shall be appointed by the 
Chair with the consent of the Authority. The Executive 
Director shall be paid at a rate determined by the Author-
ity, 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. 
(b) STAFF.—With the approval of the Authority, the 
Executive Director may appoint and fix the pay of such 
additional personnel as the Executive Director considers 
appropriate, except that no individual appointed by the 
Executive Director may be paid at a rate greater than the 
rate of pay for the Executive Director. Personnel ap-
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pointed under this subsection shall serve at the pleasure 
of the Executive Director. 
(c) INAPPLICABILITY OF CERTAIN CIVIL SERVICE 
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 provi-
sions of chapter 51 and subchapter III of chapter 53 of 
such title relating to classification and General Schedule 
pay rates. 
(d) STAFF OF FEDERAL AGENCIES.—Upon request 
of the Chair, the head of any Federal department or agen-
cy 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 
title. 
SEC. 206. FUNDING. 
(a) IN GENERAL.—There are authorized to be appro-
priated, out of the Postal Service Fund, such sums as may 
be necessary for the Authority. In requesting an appro-
priation under this section for a fiscal year, the Authority 
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, sup-
plies, compensation, and employee benefits not to exceed 
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$10,000,000. In years in which a control period com-
mences, the Authority shall submit a budget within 30 
days of the appointment of the members of the Authority. 
(b) 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 
Management Assistance Authority requests to be ap-
propriated, out of the Postal Service Fund, under 
section 206 of the Postal Reform Act of 2011.’’. 
Subtitle B—Powers of the 
Authority 
SEC. 211. POWERS. 
(a) POWERS OF MEMBERS AND AGENTS.—Any mem-
ber or agent of the Authority may, if authorized by the 
Authority, take any action which the Authority is author-
ized by this section to take. 
(b) OBTAINING OFFICIAL DATA FROM THE POSTAL 
SERVICE.—Notwithstanding any other provision of law, 
the Authority may secure copies of such records, docu-
ments, information, or data from any entity of the Postal 
Service necessary to enable the Authority to carry out its 
responsibilities under this title. At the request of the Au-
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thority, the Authority shall be granted direct access to 
such information systems, records, documents, informa-
tion, or data as will enable the Authority to carry out its 
responsibilities under this title. The head of the relevant 
entity of the Postal Service shall provide the Authority 
with such information and assistance (including granting 
the Authority direct access to automated or other informa-
tion systems) as the Authority requires under this sub-
section. 
(c) GIFTS, BEQUESTS, AND DEVISES.—The Author-
ity may accept, use, and dispose of gifts, bequests, or de-
vises of services or property, both real and personal, for 
the purpose of aiding or facilitating the work of the Au-
thority. Gifts, bequests, or devises of money and proceeds 
from sales of other property received as gifts, bequests, 
or devises shall be deposited in such account as the Au-
thority may establish and shall be available for disburse-
ment upon order of the Chair. 
(d) ADMINISTRATIVE SUPPORT SERVICES.—Upon 
the request of the Authority, the Administrator of General 
Services may provide to the Authority, on a reimbursable 
basis, the administrative support services necessary for the 
Authority to carry out its responsibilities under this title. 
(e) AUTHORITY TO ENTER INTO CONTRACTS.—The 
Executive Director may enter into such contracts as the 
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Executive Director considers appropriate (subject to the 
approval of the Chair) to carry out the Authority’s respon-
sibilities under this title. 
(f) CIVIL ACTIONS TO ENFORCE POWERS.—The Au-
thority may seek judicial enforcement of its authority to 
carry out its responsibilities under this title. 
(g) 
COLLECTIVE
BARGAINING.—Notwithstanding 
any other provision of law— 
(1) the Authority may require the renegotiation 
of an existing collective bargaining agreement to 
achieve specific economic savings and workforce 
flexibility goals; and 
(2) after meeting and conferring with the ap-
propriate bargaining representative, the Authority 
may reject, modify, or terminate 1 or more terms or 
conditions of an existing collective bargaining agree-
ment if— 
(A) a prompt and satisfactory agreement 
under paragraph (1) is unlikely; and 
(B) in the judgment of the Authority, the 
rejection, modification, or termination— 
(i) is reasonable and necessary for the 
Postal Service to be a financially viable 
provider of universal postal service to the 
Nation; and 
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(ii) is designed to achieve the specific 
economic savings or workforce flexibility 
goals (as the case may be) referred to in 
paragraph (1). 
(h) PENALTIES.— 
(1) ADMINISTRATIVE DISCIPLINE.—Any officer 
or employee of the Postal Service who takes or fails 
to take any action which is noncompliant with any 
directive or other order of the Authority under sec-
tion 226(c) shall be subject to appropriate adminis-
trative discipline, including suspension from duty 
without pay or removal from office, by order of ei-
ther the Postmaster General or the Authority. 
(2) REPORTING REQUIREMENT.—Whenever an 
officer or employee of the Postal Service takes or 
fails to take any action which is noncompliant with 
any directive or other order of the Authority under 
section 226(c), the Postmaster General shall imme-
diately report to the Authority all pertinent facts, to-
gether with a statement of any actions taken by the 
Postmaster General or proposed by the Postmaster 
General to be taken under paragraph (1). 
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SEC. 212. EXEMPTION FROM LIABILITY FOR CLAIMS. 
The Authority and its members may not be liable for 
any obligation of or claim against the Postal Service re-
sulting from actions taken to carry out this title. 
SEC. 213. TREATMENT OF ACTIONS ARISING UNDER THIS 
TITLE. 
(a) JURISDICTION ESTABLISHED IN UNITED STATES 
COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA.— 
A person (including the Postal Service) adversely affected 
or aggrieved by an order or decision of the Authority may, 
within 30 days after such order or decision becomes final, 
institute proceedings for review thereof by filing a petition 
in the United States Court of Appeals for the District of 
Columbia. The court shall review the order or decision in 
accordance with section 706 of title 5, United States Code, 
and chapter 158 and section 2112 of title 28, United 
States Code, on the basis of the record before the Author-
ity. 
(b) PROMPT APPEAL TO THE SUPREME COURT.— 
Notwithstanding any other provision of law, review by the 
Supreme Court of the United States of a decision of the 
Court of Appeals which is issued pursuant to subsection 
(a) may be had only if the petition for such review is filed 
within 10 days after the entry of such decision. 
(c) TIMING
OF RELIEF.—No order of any court 
granting declaratory or injunctive relief against the Au-
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thority, including relief permitting or requiring the obliga-
tion, borrowing, or expenditure of funds, shall take effect 
during the pendency of the action before such court, dur-
ing the time appeal may be taken, or (if appeal is taken) 
during the period before the court has entered its final 
order disposing of such action. 
(d) EXPEDITED CONSIDERATION.—It shall be the 
duty of the United States Court of Appeals for the District 
of Columbia and the Supreme Court of the United States 
to advance on the docket and to expedite to the greatest 
possible extent the disposition of any matter brought 
under subsection (a). 
Subtitle C—Establishment and En-
forcement of Financial Plan and 
Budget for the Postal Service 
SEC. 221. DEVELOPMENT OF FINANCIAL PLAN AND BUDG-
ET FOR THE POSTAL SERVICE. 
(a) DEVELOPMENT OF FINANCIAL PLAN AND BUDG-
ET.—For each fiscal year for which the Postal Service is 
in a control period, the Postmaster General shall develop 
and submit to the Authority a financial plan and budget 
for the Postal Service in accordance with this section. 
(b) CONTENTS OF FINANCIAL PLAN AND BUDGET.— 
A financial plan and budget for the Postal Service for a 
fiscal year shall specify the budget for the Postal Service 
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as required by section 2009 of title 39, United States 
Code, for the applicable fiscal year and the next 3 fiscal 
years, in accordance with the following requirements: 
(1) The financial plan and budget shall meet 
the standards described in subsection (c) to promote 
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 
(E) contain cash flow and liquidity fore-
casts for the Postal Service at such intervals as 
the Authority may require. 
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(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 title, 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) STANDARDS
TO
PROMOTE
FINANCIAL
STA-
BILITY.— 
(1) IN GENERAL.—The standards to promote 
the financial stability of the Postal Service applica-
ble to the financial plan and budget for a fiscal year 
are as follows: 
(A) In each fiscal year (following the first 
full fiscal year) in a control period, budgeted 
expenditures of the Postal Service for the fiscal 
year involved may not exceed budgeted revenues 
of the Postal Service for the fiscal year in-
volved. 
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(B) In each fiscal year in a control period, 
the Postal Service shall make continuous, sub-
stantial progress towards long-term fiscal sol-
vency and shall have either a lower deficit or 
greater surplus than in the previous fiscal year. 
(C) The Postal Service shall provide for 
the orderly liquidation of any supplementary 
debt under section 222. 
(D) The financial plan and budget shall 
assure the continuing long-term financial sta-
bility of the Postal Service, as indicated by fac-
tors such as the efficient management of the 
Postal Service’s workforce and the effective pro-
vision of services by the Postal Service. 
(2) APPLICATION OF SOUND BUDGETARY PRAC-
TICES.—In meeting the standard described in para-
graph (1) with respect to a financial plan and budg-
et for a fiscal year, the Postal Service shall apply 
sound budgetary practices, including reducing costs 
and other expenditures, improving productivity, in-
creasing revenues, or a combination of such prac-
tices. 
(3) ASSUMPTIONS BASED ON CURRENT LAW.— 
In meeting the standards described in paragraph (1) 
with respect to a financial plan and budget for a fis-
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cal year, the Postal Service shall base estimates of 
revenues and expenditures on Federal law as in ef-
fect at the time of the preparation of such financial 
plan and budget. 
SEC. 222. SUPPLEMENTARY BORROWING AUTHORITY DUR-
ING A CONTROL PERIOD. 
(a) IN GENERAL.—Upon the commencement of a 
control period, subject to the approval of the Authority, 
the Postal Service is authorized 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) of title 39, United States Code, 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 $10,000,000,000. 
(b) EXCLUSION.—The last sentence of section 
2005(a)(1) of title 39, United States Code, shall not apply 
with respect to any amounts borrowed or obligations 
issued or sold under authority of this section (which, but 
for subsection (a), would not otherwise have been allow-
able). 
(c) DEPOSIT.—Any amounts received under this sec-
tion shall be deposited in the Postal Service Fund. 
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(d) COLLATERAL.—For the purposes of funds ac-
quired under subsection (a), the Postal Service shall pro-
vide an appropriate level of collateral in the form of 
pledged Postal Service property assets. 
SEC. 223. PROCESS FOR SUBMISSION AND APPROVAL OF FI-
NANCIAL PLAN AND BUDGET. 
(a) IN GENERAL.—For each fiscal year for which the 
Postal Service is in a control period, the Postmaster Gen-
eral shall submit to the Authority— 
(1) by February 1 before the start of such fiscal 
year, a preliminary financial plan and budget under 
section 221 for such fiscal year; and 
(2) by August 31 before the start of such fiscal 
year, a final financial plan and budget under section 
221 for such fiscal year. 
(b) REVIEW BY AUTHORITY.—Upon receipt of a fi-
nancial plan and budget under subsection (a) (whether 
preliminary or final), the Authority shall promptly review 
such financial plan and budget. In conducting the review, 
the Authority may request any additional information it 
considers necessary and appropriate to carry out its duties 
under this subtitle. 
(c) APPROVAL OF POSTMASTER GENERAL’S FINAN-
CIAL PLAN AND BUDGET.— 
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(1) CERTIFICATION
TO
POSTMASTER
GEN-
ERAL.— 
(A) IN GENERAL.—If the Authority deter-
mines that the final financial plan and budget 
for the fiscal year submitted by the Postmaster 
General under subsection (a) meets the require-
ments of section 221— 
(i) the Authority shall approve the fi-
nancial plan and budget and shall provide 
the Postmaster General, the President, and 
Congress with a notice certifying its ap-
proval; and 
(ii) the Postmaster General shall 
promptly submit the annual budget pro-
gram to the Office of Management and 
Budget pursuant to section 2009 of title 
39, United States Code. 
(B) DEEMED APPROVAL AFTER 30 DAYS.— 
(i) IN
GENERAL.—If the Authority 
has not provided the Postmaster General, 
the President, and Congress with a notice 
certifying approval under subparagraph 
(A)(i) or a statement of disapproval under 
subsection (d) before the expiration of the 
30-day period which begins on the date the 
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Authority receives the financial plan and 
budget from the Postmaster General under 
subsection (a), the Authority shall be 
deemed to have approved the financial plan 
and budget and to have provided the Post-
master General, the President, and Con-
gress with the notice certifying approval 
under subparagraph (A)(i). 
(ii) EXPLANATION
OF
FAILURE
TO 
RESPOND.—If clause (i) applies with re-
spect to a financial plan and budget, the 
Authority shall provide the Postmaster 
General, the President and Congress with 
an explanation for its failure to provide the 
notice certifying approval or the statement 
of disapproval during the 30-day period de-
scribed in such clause. 
(d) DISAPPROVAL
OF
POSTMASTER
GENERAL’S 
BUDGET.—If the Authority determines that the final fi-
nancial plan and budget for the fiscal year submitted by 
the Postmaster General under subsection (a) does not 
meet the requirements applicable under section 221, the 
Authority shall disapprove the financial plan and budget, 
and shall provide the Postmaster General, the President, 
and Congress with a statement containing— 
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(1) the reasons for such disapproval; 
(2) the amount of any shortfall in the budget 
or financial plan; and 
(3) any recommendations for revisions to the 
budget the Authority considers appropriate to ensure 
that the budget is consistent with the financial plan 
and budget. 
(e) AUTHORITY REVIEW
OF POSTMASTER GEN-
ERAL’S REVISED FINAL FINANCIAL PLAN AND BUDG-
ET.— 
(1) SUBMISSION
OF
POSTMASTER
GENERAL’S 
REVISED FINAL FINANCIAL PLAN AND BUDGET.— 
Not later than 15 days after receiving the statement 
from the Authority under subsection (d), the Post-
master General shall promptly adopt a revised final 
financial plan and budget for the fiscal year which 
addresses the reasons for the Authority’s disapproval 
cited in the statement, and shall submit such finan-
cial plan and budget to the Authority. 
(2) APPROVAL OF POSTMASTER GENERAL’S RE-
VISED FINAL FINANCIAL PLAN AND BUDGET.—If, 
after reviewing the revised final financial plan and 
budget for a fiscal year submitted by the Postmaster 
General under paragraph (1) in accordance with the 
procedures described in this section, the Authority 
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determines that the revised final financial plan and 
budget meets the requirements applicable under sec-
tion 221— 
(A) the Authority shall approve the finan-
cial plan and budget and shall provide the Post-
master General, the President, and Congress 
with a notice certifying its approval; and 
(B) the Postmaster General shall promptly 
submit the annual budget program to the Office 
of Management and Budget pursuant to section 
2009 of title 39, United States Code. 
(3) DISAPPROVAL OF POSTMASTER GENERAL’S 
REVISED FINAL FINANCIAL PLAN AND BUDGET.— 
(A) IN GENERAL.—If, after reviewing the 
revised final financial plan and budget for a fis-
cal year submitted by the Postmaster General 
under paragraph (1) in accordance with the 
procedures described in this subsection, the Au-
thority determines that the revised final finan-
cial plan and budget does not meet the applica-
ble requirements under section 221, the Author-
ity shall— 
(i) disapprove the financial plan and 
budget; 
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(ii) provide the Postmaster General, 
the President, and Congress with a state-
ment containing the reasons for such dis-
approval and describing the amount of any 
shortfall in the financial plan and budget; 
and 
(iii) approve and recommend a finan-
cial plan and budget for the Postal Service 
which meets the applicable requirements 
under section 221, and submit such finan-
cial plan and budget to the Postmaster 
General, the President, and Congress. 
(B) SUBMISSION TO OMB.—Upon receipt 
of the recommended financial plan and budget 
subparagraph (A)(iii), 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. 
(4) DEEMED APPROVAL AFTER 15 DAYS.— 
(A) IN
GENERAL.—If the Authority has 
not provided the Postmaster General, the Presi-
dent, and Congress with a notice certifying ap-
proval under paragraph (2)(A) or a statement 
of disapproval under paragraph (3) before the 
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expiration of the 15-day period which begins on 
the date the Authority receives the revised final 
financial plan and budget submitted by the 
Postmaster General under paragraph (1), the 
Authority shall be deemed to have approved the 
revised final financial plan and budget and to 
have provided the Postmaster General, the 
President, and Congress with the notice certi-
fying approval described in paragraph (2)(A). 
(B) EXPLANATION
OF
FAILURE
TO
RE-
SPOND.—If subparagraph (A) applies with re-
spect to a financial plan and budget, the Au-
thority shall provide the Postmaster General, 
the President and Congress with an explanation 
for its failure to provide the notice certifying 
approval or the statement of disapproval during 
the 15-day period described in such subpara-
graph. 
(f) DEADLINE FOR TRANSMISSION OF FINANCIAL 
PLAN AND BUDGET BY AUTHORITY.—Notwithstanding 
any other provision of this section, not later than June 
15 before each fiscal year which is a control period, the 
Authority shall— 
(1) provide Congress with a notice certifying its 
approval of the Postmaster General’s initial financial 
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plan and budget for the fiscal year under subsection 
(c)(1); 
(2) provide Congress with a notice certifying its 
approval of the Postmaster General’s revised final fi-
nancial plan and budget for the fiscal year under 
subsection (e)(2); or 
(3) submit to Congress an approved and rec-
ommended financial plan and budget of the Author-
ity for the Postal Service for the fiscal year under 
subsection (e)(3)(A)(iii). 
(g) 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 a control period to the Authority at any 
time during the year. 
(2) PROCESS
FOR
REVIEW, APPROVAL, DIS-
APPROVAL, AND POSTMASTER GENERAL ACTION.— 
Except as provided in paragraph (3), the procedures 
described in subsections (b), (c), (d), and (e) shall 
apply with respect to a proposed revision to a finan-
cial plan and budget in the same manner as such 
procedures apply with respect to the original finan-
cial plan and budget. 
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(3) EXCEPTION FOR REVISIONS NOT AFFECT-
ING SPENDING.—To the extent that a proposed revi-
sion to a financial plan and budget adopted by the 
Postmaster General pursuant to this subsection does 
not increase the amount of spending with respect to 
any account of the Postal Service, the revision shall 
become effective upon the Authority’s approval of 
such revision. 
SEC. 224. RESPONSIBILITIES OF THE AUTHORITY. 
(a) IN GENERAL.—The Authority shall direct the ex-
ercise of the powers of the Postal Service, including— 
(1) determining its vision and overall strategies; 
(2) determining its organizational structure, 
particularly for senior management at the level of 
vice president and higher; 
(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 
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standards and targets, human resources strategies, 
collective bargaining strategies, negotiation param-
eters, and collective bargaining agreements, and the 
compensation structure for nonbargaining employ-
ees; 
(6) approving substantial capital projects and 
any substantial disposition of capital assets, such as 
surplus property; 
(7) approving changes in rates and classifica-
tions, new products and services, policy regarding 
other substantial matters before the Postal Regu-
latory Commission, and any appeals of its decisions 
or orders to the Federal courts; 
(8) approving the Postal Service Annual Re-
port, Annual Comprehensive Statement, and stra-
tegic plans, performance plans, and performance 
program reports under chapter 28 of title 39, 
United States Code; 
(9) formulating and communicating organiza-
tional policy and positions on legislative and other 
public policy matters to Congress and the public; 
(10) ensuring organizational responsiveness to 
oversight by Congress, the Postal Regulatory Com-
mission, the Treasury of the United States, and 
other audit entities; 
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(11) ensuring adequate internal controls and 
selecting, monitoring, and compensating an inde-
pendent public accounting firm to conduct an annual 
audit of the Postal Service; and 
(12) carrying out any responsibility, not other-
wise listed in this subsection, that was the responsi-
bility of the Board of Governors at any time during 
the 5-year period ending on the date of the enact-
ment of this Act. 
(b) REVIEW OF POSTAL SERVICE PROPOSALS.— 
(1) SUBMISSION
OF
POSTAL
SERVICE
PRO-
POSALS TO THE AUTHORITY.—During a control pe-
riod, the Postmaster General shall submit to the Au-
thority any proposal that has a substantial effect on 
any item listed in subsection (a). 
(2) PROMPT REVIEW BY AUTHORITY.—Upon re-
ceipt of a proposal from the Postmaster General 
under paragraph (1), the Authority shall promptly 
review the proposal to determine whether it is con-
sistent with the applicable financial plan and budget 
approved under this title. 
(3) ACTIONS BY AUTHORITY.— 
(A) APPROVAL.—If the Authority deter-
mines that a proposal is consistent with the ap-
plicable financial plan and budget, the Author-
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ity shall notify the Postmaster General that it 
approves the proposal. 
(B) FINDING OF INCONSISTENCY.—If the 
Authority determines that a proposal is signifi-
cantly inconsistent with the applicable financial 
plan and budget, the Authority shall— 
(i) notify the Postmaster General of 
its finding; 
(ii) provide the Postmaster General 
with an explanation of the reasons for its 
finding; and 
(iii) to the extent the Authority con-
siders appropriate, provide the Postmaster 
General with recommendations for modi-
fications to the proposal. 
(4) DEEMED APPROVAL.—If the Authority does 
not notify the Postmaster General that it approves 
or disapproves a proposal submitted under this sub-
section during the 7-day period which begins on the 
date the Postmaster General submits the proposal to 
the Authority, the Authority shall be deemed to have 
approved the proposal in accordance with paragraph 
(3)(A). At the option of the Authority, the previous 
sentence shall be applied as if the reference in such 
sentence to ‘‘7-day period’’ were a reference to ‘‘14- 
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day period’’ if, during the 7-day period referred to 
in the preceding sentence, the Authority so notifies 
the Postmaster General. 
(c) EFFECT OF APPROVED FINANCIAL PLAN AND 
BUDGET ON CONTRACTS AND LEASES.— 
(1) MANDATORY
PRIOR
APPROVAL
FOR
CER-
TAIN CONTRACTS AND LEASES.— 
(A) IN GENERAL.—In the case of a con-
tract or lease described in subparagraph (B) 
which is proposed to be entered into, renewed, 
modified, or extended by the Postal Service dur-
ing a control period, the Postmaster General 
(or the appropriate officer or agent of the Post-
al Service) shall submit the proposed contract 
or lease to the Authority. The Authority shall 
review each contract or lease submitted under 
this subparagraph, and the Postmaster General 
(or the appropriate officer or agent of the Post-
al Service) may not enter into the contract or 
lease unless the Authority determines that the 
proposed contract or lease is consistent with the 
financial plan and budget for the fiscal year. 
(B) 
CONTRACTS
AND
LEASES
DE-
SCRIBED.—A contract or lease described in this 
subparagraph is— 
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(i) a labor contract entered into 
through collective bargaining; or 
(ii) such other type of contract or 
lease as the Authority may specify for pur-
poses of this subparagraph. 
(2) AUTHORITY TO REVIEW OTHER CONTRACTS 
AFTER EXECUTION.— 
(A) IN GENERAL.—In addition to the prior 
approval of certain contracts and leases, the 
Postal Service shall submit to the Authority— 
(i) any Level-Two Post Career Execu-
tive Service employee contract that is in ef-
fect during a control period; and 
(ii) any collective bargaining agree-
ment entered into by the Postal Service 
that is in effect during a control period. 
Any such contract or agreement shall be sub-
mitted to the Authority upon the commence-
ment of a control period and at such other 
times as the Authority may require. 
(B) REVIEW BY AUTHORITY.—The Author-
ity shall review each contract submitted under 
subparagraph (A) to determine if the contract 
is consistent with the financial plan and budget 
for the fiscal year. If the Authority determines 
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that the contract is not consistent with the fi-
nancial plan and budget, the Authority shall 
take such actions as are within the Authority’s 
powers to revise the contract. 
SEC. 225. EFFECT OF FINDING NONCOMPLIANCE WITH FI-
NANCIAL PLAN AND BUDGET. 
(a) SUBMISSION OF REPORTS.—Not later than 30 
days after the expiration of each quarter of each fiscal 
year beginning in a control period, the Postmaster General 
shall submit reports to the Authority describing the actual 
revenues obtained and expenditures made by the Postal 
Service during the quarter with its cash flows during the 
quarter, and comparing such actual revenues, expendi-
tures, and cash flows with the most recent projections for 
these items. 
(b) ADDITIONAL INFORMATION.—If the Authority 
determines, based on reports submitted by the Postmaster 
General under subsection (a), independent audits, or such 
other information as the Authority may obtain, that the 
revenues or expenditures of the Postal Service during a 
control period are not consistent with the financial plan 
and budget for the year, the Authority shall require the 
Postmaster General to provide such additional information 
as the Authority determines to be necessary to explain the 
inconsistency. 
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(c) CERTIFICATION OF VARIANCE.— 
(1) IN
GENERAL.—After requiring the Post-
master General to provide additional information 
under subsection (b), the Authority shall certify to 
the Postmaster General, the President, the Secretary 
of the Treasury, and Congress that the Postal Serv-
ice is at variance with the financial plan and budget 
unless— 
(A) the additional information provides an 
explanation for the inconsistency which the Au-
thority finds reasonable and appropriate; or 
(B)(i) the Postal Service adopts or imple-
ments remedial action (including revising the fi-
nancial plan and budget pursuant to section 
223(g)) to correct the inconsistency which the 
Authority finds reasonable and appropriate, 
taking into account the terms of the financial 
plan and budget; and 
(ii) the Postmaster General agrees to sub-
mit the reports described in subsection (a) on 
a monthly basis for such period as the Author-
ity may require. 
(2) SPECIAL RULE FOR INCONSISTENCIES AT-
TRIBUTABLE TO ACTS OF CONGRESS.— 
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(A) DETERMINATION BY AUTHORITY.—If 
the Authority determines that the revenues or 
expenditures of the Postal Service during a con-
trol period are not consistent with the financial 
plan and budget for the year as approved by 
the Authority under section 223 as a result of 
the terms and conditions of any law enacted by 
Congress which affects the Postal Service, the 
Authority shall so notify the Postmaster Gen-
eral. 
(B) CERTIFICATION.—In the case of an in-
consistency described in subparagraph (A), the 
Authority shall certify to the Postmaster Gen-
eral, the President, the Secretary of the Treas-
ury, and Congress that the Postal Service is at 
variance with the financial plan and budget un-
less the Postal Service adopts or implements re-
medial action (including revising the financial 
plan and budget pursuant to section 202(e)) to 
correct the inconsistency which the Authority 
finds reasonable and appropriate, taking into 
account the terms of the financial plan and 
budget. 
(d) EFFECT OF CERTIFICATION.—If the Authority 
certifies to the Secretary of the Treasury that a variance 
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exists the Authority or the Secretary may withhold access 
by the Postal Service to additional supplementary debt au-
thorized by this title. 
SEC. 226. RECOMMENDATIONS REGARDING FINANCIAL 
STABILITY, ETC. 
(a) IN GENERAL.—The Authority may at any time 
submit recommendations to the Postmaster General, the 
President, and Congress on actions the Postal Service or 
any other entity of the Federal Government should take 
to ensure compliance by the Postal Service with a financial 
plan and budget or to otherwise promote the financial sta-
bility, management responsibility, and service delivery effi-
ciency of the Postal Service, including recommendations 
relating to— 
(1) the management of the Postal Service’s fi-
nancial affairs, including cash forecasting, informa-
tion technology, placing controls on expenditures for 
personnel, reducing benefit costs, reforming procure-
ment practices, and placing other controls on ex-
penditures; 
(2) the relationship between the Postal Service 
and other entities of the Federal Government; 
(3) the structural relationship of subdivisions 
within the Postal Service; 
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(4) the modification of existing revenue struc-
tures, or the establishment of additional revenue 
structures; 
(5) the establishment of alternatives for meet-
ing obligations to pay for the pensions and retire-
ment benefits of current and future Postal Service 
retirees; 
(6) modifications of services which are the re-
sponsibility of and are delivered by the Postal Serv-
ice; 
(7) modifications of the types of services which 
are delivered by entities other than the Postal Serv-
ice under alternative service delivery mechanisms; 
(8) the effects of Federal Government laws and 
court orders on the operations of the Postal Service; 
(9) the increased use of a personnel system for 
employees of the Postal Service which is based upon 
employee performance standards; and 
(10) the improvement of personnel training and 
proficiency, the adjustment of staffing levels, and 
the improvement of training and performance of 
management and supervisory personnel. 
(b) RESPONSE TO RECOMMENDATIONS FOR ACTIONS 
WITHIN AUTHORITY OF POSTAL SERVICE.— 
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(1) IN
GENERAL.—In the case of any rec-
ommendations submitted under subsection (a) dur-
ing a control year which are within the authority of 
the Postal Service to adopt, not later than 90 days 
after receiving the recommendations, the Postmaster 
General shall submit a statement to the Authority, 
the President, and Congress which provides notice as 
to whether the Postal Service will adopt the rec-
ommendations. 
(2) IMPLEMENTATION
PLAN
REQUIRED
FOR 
ADOPTED
RECOMMENDATIONS.—If the Postmaster 
General notifies the Authority and Congress under 
paragraph (1) that the Postal Service will adopt any 
of the recommendations submitted under subsection 
(a), the Postmaster General shall include in the 
statement a written plan to implement the rec-
ommendation which includes— 
(A) specific performance measures to de-
termine the extent to which the Postal Service 
has adopted the recommendation; and 
(B) a schedule for auditing the Postal 
Service’s compliance with the plan. 
(3) 
EXPLANATIONS
REQUIRED
FOR
REC-
OMMENDATIONS NOT ADOPTED.—If the Postmaster 
General notifies the Authority, the President, and 
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Congress under paragraph (1) that the Postal Serv-
ice will not adopt any recommendation submitted 
under subsection (a) which the Postal Service has 
authority to adopt, the Postmaster General shall in-
clude in the statement explanations for the rejection 
of the recommendations. 
(c) IMPLEMENTATION OF REJECTED RECOMMENDA-
TIONS BY AUTHORITY.— 
(1) IN GENERAL.—If the Postmaster General 
notifies the Authority, the President, and Congress 
under subsection (b)(1) that the Postal Service will 
not adopt any recommendation submitted under sub-
section (a) which the Postal Service has authority to 
adopt, the Authority may by a majority vote of its 
members take such action concerning the rec-
ommendation as it deems appropriate, after con-
sulting with the Committee on Oversight and Gov-
ernment Reform of the House of Representatives 
and the Committee on Homeland Security and Gov-
ernmental Affairs of the Senate. 
(2) EFFECTIVE
DATE.—This subsection shall 
apply with respect to recommendations of the Au-
thority made after the expiration of the 6-month pe-
riod which begins on the date of the commencement 
of a control period. 
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SEC. 227. SPECIAL RULES FOR FISCAL YEAR IN WHICH 
CONTROL PERIOD COMMENCES. 
(a) ADOPTION OF TRANSITION BUDGET.—Notwith-
standing any provision of section 223 to the contrary, in 
the case of a fiscal year in which a control period com-
mences, the following rules shall apply: 
(1) Not later than 45 days after the appoint-
ment of its members, the Authority shall review the 
proposed Integrated Financial Plan for the Postal 
Service for such fiscal year and shall submit any rec-
ommendations for modifications to such plan to pro-
mote the financial stability of the Postal Service to 
the Postmaster General, the President, and Con-
gress. 
(2) Not later than 15 days after receiving the 
recommendations of the Authority submitted under 
paragraph (1), the Postmaster General shall 
promptly adopt a revised budget for the fiscal year 
(in this section referred to as the ‘‘transition budg-
et’’), and shall submit the transition budget to the 
Authority, the President, and Congress. 
(3) Not later than 15 days after receiving the 
transition budget from the Postmaster General 
under paragraph (2), the Authority shall submit a 
report to the Postmaster General, the President, and 
Congress analyzing the budget (taking into account 
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any items or provisions disapproved by the Post-
master General) and shall include in the report such 
recommendations for revisions to the transition 
budget as the Authority considers appropriate to 
promote the financial stability of the Postal Service 
during the fiscal year. 
(b) FINANCIAL PLAN AND BUDGET.— 
(1) DEADLINE FOR SUBMISSION.—For purposes 
of section 223, the Postmaster General shall submit 
the financial plan and budget for the applicable fis-
cal year as soon as practicable after the initiation of 
a control period (in accordance with guidelines es-
tablished by the Authority). 
(2) ADOPTION BY POSTMASTER GENERAL.—In 
accordance with the procedures applicable under sec-
tion 223 (including procedures providing for review 
by the Authority) the Postmaster General shall 
adopt the financial plan and budget for the applica-
ble fiscal year (including the transition budget incor-
porated in the financial plan and budget) prior to 
the submission by the Postmaster General. 
(3) TRANSITION
BUDGET
AS
TEMPORARY
FI-
NANCIAL PLAN AND BUDGET.—Until the approval of 
the financial plan and budget for the applicable fis-
cal year by the Authority under this subsection, the 
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transition budget established under subsection (a) 
shall serve as the financial plan and budget adopted 
under this subtitle for purposes of this Act (and any 
provision of law amended by this Act) for the appli-
cable fiscal year. 
SEC. 228. ASSISTANCE IN ACHIEVING FINANCIAL STA-
BILITY, ETC. 
In addition to any other actions described in this title, 
the Authority may undertake cooperative efforts to assist 
the Postal Service in achieving financial stability and man-
agement efficiency, including— 
(1) assisting the Postal Service in avoiding de-
faults, eliminating and liquidating deficits, maintain-
ing sound budgetary practices, and avoiding inter-
ruptions in the delivery of services; 
(2) assisting the Postal Service in improving 
the delivery of services, the training and effective-
ness of personnel of the Postal Service, and the effi-
ciency of management and supervision; and 
(3) making recommendations to the President 
for transmission to Congress on changes to this Act 
or other Federal laws, or other actions of the Fed-
eral Government, which would assist the Postal 
Service in complying with an approved financial plan 
and budget under subtitle B. 
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SEC. 229. OBTAINING REPORTS. 
The Authority may require the Postmaster General, 
the Chief Financial Officer of the Postal Service, and the 
Inspector General of the Postal Service, to prepare and 
submit such reports as the Authority considers appro-
priate to assist it in carrying out its responsibilities under 
this title, including submitting copies of any reports re-
garding revenues, expenditures, budgets, costs, plans, op-
erations, estimates, and other financial or budgetary mat-
ters of the Postal Service. 
SEC. 230. REPORTS AND COMMENTS. 
(a) ANNUAL REPORTS
TO CONGRESS.—Not later 
than 30 days after the last day of each fiscal year which 
is a control year, the Authority shall submit a report to 
Congress describing— 
(1) the progress made by the Postal Service in 
meeting the objectives of this title during the fiscal 
year; 
(2) the assistance provided by the Authority to 
the Postal Service in meeting the purposes of this 
title for the fiscal year; and 
(3) any other activities of the Authority during 
the fiscal year. 
(b) REVIEW AND ANALYSIS OF PERFORMANCE AND 
FINANCIAL ACCOUNTABILITY REPORTS.—The Authority 
shall review each yearly report prepared and submitted by 
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the Postmaster General to the Postal Regulatory Commis-
sion and Congress and shall submit a report to Congress 
analyzing the completeness and accuracy of such reports. 
(c) COMMENTS REGARDING ACTIVITIES OF POSTAL 
SERVICE.—At any time during a control period, the Au-
thority may submit a report to Congress describing any 
action taken by the Postal Service (or any failure to act 
by the Postal Service) which the Authority determines will 
adversely affect the Postal Service’s ability to comply with 
an approved financial plan and budget under subtitle B 
or will otherwise have a significant adverse impact on the 
best interests of the Postal Service. 
(d) REPORTS ON EFFECT OF FEDERAL LAWS ON 
THE POSTAL SERVICE.—At any time during any year, the 
Authority may submit a report to the Postmaster General, 
the President, and Congress on the effect of laws enacted 
by Congress on the financial plan and budget for the year 
and on the financial stability and management efficiency 
of the Postal Service in general. 
(e) MAKING REPORTS PUBLICLY AVAILABLE.—The 
Authority shall make any report submitted under this sec-
tion available to the public, except to the extent that the 
Authority determines that the report contains confidential 
material. 
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Subtitle D—Termination of a 
Control Period 
SEC. 231. TERMINATION OF CONTROL PERIOD, ETC. 
(a) IN GENERAL.—After the completion of the re-
quirements for the termination of a control period de-
scribed in section 202(b)(4), the Authority shall submit 
a recommendation to Congress requesting the termination 
of such control period, the dissolution of the Authority, 
and the reinstatement to the Board of Governors (and the 
individual Governors) of the Postal Service of the authori-
ties 
and 
responsibilities 
referred 
to 
in 
section 
202(b)(2)(A). 
(b) CONGRESSIONAL APPROVAL.— 
(1) IN GENERAL.—A control period shall not be 
terminated unless a joint resolution approving of the 
recommendation in subsection (a) is enacted, in ac-
cordance with section 232, before the earlier of— 
(A) the end of the 30-day period beginning 
on the date on which the Authority transmits 
the recommendation to Congress under sub-
section (a); or 
(B) the adjournment of the Congress sine 
die for the session during which such rec-
ommendation is transmitted. 
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(2) DAYS OF SESSION.—For purposes of para-
graph (1) and subsections (a) and (c) of section 232, 
the days on which either House of Congress is not 
in session because of an adjournment of more than 
3 days to a day certain shall be excluded in the com-
putation of a period. 
SEC. 
232. 
CONGRESSIONAL 
CONSIDERATION 
OF 
REC-
OMMENDATION. 
(a) TERMS OF THE RESOLUTION.—For purposes of 
this subtitle, the term ‘‘joint resolution’’ means only a 
joint resolution which is introduced within the 10-day pe-
riod beginning on the date on which the recommendation 
referred to in section 231(a) is received by Congress— 
(1) the matter after the resolving clause of 
which is as follows: ‘‘That Congress approves the 
recommendation of the Postal Service Financial Re-
sponsibility and Management Assistance Authority, 
submitted by such Authority on ll.’’, the blank 
space being filled in with the appropriate date; 
(2) the title of which is as follows: ‘‘Joint reso-
lution approving the recommendation of Postal Serv-
ice Financial Responsibility and Management Assist-
ance Authority.’’; and 
(3) which does not have a preamble. 
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(b) REFERRAL.—A resolution described in subsection 
(a) that is introduced in the House of Representatives or 
the Senate shall be referred to the appropriate committees 
of the House of Representatives or the Senate, respec-
tively. 
(c) DISCHARGE.—If the committee to which a resolu-
tion described in subsection (a) is referred has not re-
ported such resolution (or an identical resolution) by the 
end of the 20-day period beginning on the date on which 
the Authority transmits its recommendation to Congress 
under section 231(a) such committee shall, at the end of 
such period, be discharged from further consideration of 
such resolution, and such resolution shall be placed on the 
appropriate calendar of the House involved. 
(d) CONSIDERATION.— 
(1) IN GENERAL.—On or after the third day 
after the date on which the committee to which such 
a resolution is referred has reported, or has been 
discharged (under subsection (c)) from further con-
sideration of, such a resolution, it is in order (even 
though a previous motion to the same effect has 
been disagreed to) for any Member of the respective 
House to move to proceed to the consideration of the 
resolution. A Member may make the motion only on 
the day after the calendar day on which the Member 
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announces to the House concerned the Member’s in-
tention to make the motion, except that, in the case 
of the House of Representatives, the motion may be 
made without such prior announcement if the mo-
tion is made by direction of the committee to which 
the resolution was referred. All points of order 
against the resolution (and against consideration of 
the resolution) are waived. The motion is highly 
privileged in the House of Representatives and is 
privileged in the Senate and is not debatable. The 
motion is not subject to amendment, or to a motion 
to postpone, or to a motion to proceed to the consid-
eration of other business. A motion to reconsider the 
vote by which the motion is agreed to or disagreed 
to shall not be in order. If a motion to proceed to 
the consideration of the resolution is agreed to, the 
respective House shall immediately proceed to con-
sideration of the joint resolution without intervening 
motion, order, or other business, and the resolution 
shall remain the unfinished business of the respec-
tive House until disposed of. 
(2) DEBATE.—Debate on the resolution, and on 
all debatable motions and appeals in connection 
therewith, shall be limited to not more than 2 hours, 
which shall be divided equally between those favoring 
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and those opposing the resolution. An amendment to 
the resolution is not in order. A motion further to 
limit debate is in order and not debatable. A motion 
to postpone, or a motion to proceed to the consider-
ation of other business, or a motion to recommit the 
resolution is not in order. A motion to reconsider the 
vote by which the resolution is agreed to or dis-
agreed to is not in order. 
(3) VOTE
ON
FINAL
PASSAGE.—Immediately 
following the conclusion of the debate on a resolu-
tion described in subsection (a) and a single quorum 
call at the conclusion of the debate if requested in 
accordance with the rules of the appropriate House, 
the vote on final passage of the resolution shall 
occur. 
(4) APPEALS.—Appeals from the decisions of 
the Chair relating to the application of the rules of 
the Senate or the House of Representatives, as the 
case may be, to the procedure relating to a resolu-
tion described in subsection (a) shall be decided 
without debate. 
(e) CONSIDERATION BY OTHER HOUSE.— 
(1) IN GENERAL.—If, before the passage by one 
House of a resolution of that House described in 
subsection (a), that House receives from the other 
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House a resolution described in subsection (a), then 
the following procedures shall apply: 
(A) The resolution of the other House shall 
not be referred to a committee and may not be 
considered in the House receiving it except in 
the case of final passage as provided in sub-
paragraph (B)(ii). 
(B) With respect to a resolution described 
in subsection (a) of the House receiving the res-
olution— 
(i) the procedure in that House shall 
be the same as if no resolution had been 
received from the other House; but 
(ii) the vote on final passage shall be 
on the resolution of the other House. 
(2) DISPOSITION
OF
A
RESOLUTION.—Upon 
disposition of the resolution received from the other 
House, it shall no longer be in order to consider the 
resolution that originated in the receiving House. 
(f) RULES OF THE SENATE AND HOUSE.—This sec-
tion is enacted by Congress— 
(1) as an exercise of the rulemaking power of 
the Senate and House of Representatives, respec-
tively, and as such it is deemed a part of the rules 
of each House, respectively, but applicable only with 
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respect to the procedure to be followed in that 
House in the case of a resolution described in sub-
section (a), and it supersedes other rules only to the 
extent that it is inconsistent with such rules; and 
(2) with full recognition of the constitutional 
right of either House to change the rules (so far as 
relating to the procedure of that House) at any time, 
in the same manner, and to the same extent as in 
the case of any other rule of that House. 
TITLE III—POSTAL SERVICE 
WORKFORCE 
Subtitle A—General Provisions 
SEC. 301. MODIFICATIONS RELATING TO DETERMINATION 
OF PAY COMPARABILITY. 
(a) POSTAL POLICY.—Section 101(c) is amended— 
(1) in the first sentence, by inserting ‘‘total’’ 
before ‘‘rates and types of compensation’’; and 
(2) in the second sentence, by inserting ‘‘en-
tire’’ before ‘‘private sector’’. 
(b) EMPLOYMENT POLICY.—The second sentence of 
section 1003(a) is amended— 
(1) by inserting ‘‘total’’ before ‘‘compensation 
and benefits’’; 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. 302. LIMITATION ON POSTAL CONTRIBUTIONS UNDER 
FEGLI AND FEHBP. 
Section 1003 is amended by adding at the end the 
following: 
‘‘(e)(1) At least 1 month before the start of each fis-
cal year as described in paragraph (2), the Postmaster 
General shall transmit to the Postal Regulatory Commis-
sion certification (together with such supporting docu-
mentation as the Postal Regulatory Commission may re-
quire) that contributions of the Postal Service for such 
fiscal year will not exceed— 
‘‘(A) in the case of life insurance under chapter 
87 of title 5, the Government contributions deter-
mined under section 8708 of such title; and 
‘‘(B) in the case of health insurance under 
chapter 89 of title 5, the Government contributions 
determined under 8906 of such title. 
‘‘(2) This subsection applies with respect to— 
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‘‘(A) except as provided in subparagraph (B), 
each fiscal year beginning after September 30, 2013; 
and 
‘‘(B) in the case of officers and employees of 
the Postal Service covered by a collective bargaining 
agreement which is in effect on the date of the en-
actment of this subsection— 
‘‘(i) each fiscal year beginning after the ex-
piration date of such agreement, including 
‘‘(ii) for the fiscal year in which such expi-
ration date occurs, any portion of such fiscal 
year remaining after such expiration date. 
‘‘(3)(A) If, after reasonable notice and opportunity 
for hearing is afforded to the Postal Service, the Postal 
Regulatory Commission finds that the contributions of the 
Postal Service for a fiscal year will exceed or are exceeding 
the limitation specified in subparagraph (A) or (B) of 
paragraph (1), the Commission shall order that the Postal 
Service take such action as the Commission considers nec-
essary to achieve full and immediate compliance with the 
applicable limitation or limitations. 
‘‘(B) Sections 3663 and 3664 shall apply with respect 
to any order issued by the Postal Regulatory Commission 
under subparagraph (A). 
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‘‘(C) Nothing in this paragraph shall be considered 
to permit the issuance of an order requiring reduction of 
contributions below the level specified by the provision of 
law cited in subparagraph (A) or (B) of paragraph (1), 
as applicable.’’. 
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 COLLECTIVE BAR-
GAINING. 
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 
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serve as neutral arbitrators. Each person listed shall be 
an arbitrator of nationwide reputation and professional 
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 date for the submission of an offer package 
under paragraph (4), each party shall submit to the arbi-
tration board a single final offer package specifying the 
terms of a proposed final agreement. 
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‘‘(6) No later than 3 days after the submission of 
the final offer packages under paragraph (5), the arbitra-
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 
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7 days to render its tentative award under this subpara-
graph. 
‘‘(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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100 
‘‘(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).’’. 
Subtitle B—Postal Service Workers’ 
Compensation Reform 
SEC. 311. SENSE OF CONGRESS. 
It is the sense of Congress that— 
(1) the Postal Service should develop and man-
age a program to pay compensation for the disability 
or death of an officer or employee of the Postal 
Service which results from an injury sustained while 
in the performance of duty; 
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101 
(2) such program should include an automatic 
transition to retirement and provide a retirement 
pension based on the average salary of the officer or 
employee, determined as if such officer or employee 
had continued to receive basic pay from the date of 
injury to the date of retirement; and 
(3) officers or employees of the Postal Service 
receiving compensation for a disability from an in-
jury sustained while in the performance of duty 
should be transitioned to the program described in 
paragraph (1). 
TITLE IV—POSTAL SERVICE 
REVENUE 
SEC. 401. ADEQUACY, EFFICIENCY, AND FAIRNESS OF POST-
AL RATES. 
(a) IN GENERAL.—Paragraph (1) of section 3622(d) 
is amended— 
(1) 
by 
redesignating 
subparagraphs 
(B) 
through (E) as subparagraph (D) through (G), re-
spectively; and 
(2) by inserting after subparagraph (A) the fol-
lowing: 
‘‘(B) subject to the limitation under para-
graph (A), establish postal rates to fulfill the 
requirement that each market-dominant class, 
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102 
product, and type of mail service (except for an 
experimental product or service) bear the direct 
and indirect postal costs attributable to such 
class, product, or type through reliably identi-
fied causal relationships plus that portion of all 
other costs of the Postal Service reasonably as-
signable to such class, product, or type; 
‘‘(C) establish postal rates for each loss- 
making class of mail to eliminate such losses by 
exhausting all unused rate authority as well as 
maximizing incentives to reduce costs and in-
crease efficiency; with— 
‘‘(i) the term ‘loss-making’, as used 
with respect to a class of mail, meaning a 
class of mail that bears less than 100 per-
cent of its costs attributable (as described 
in subparagraph (B)), according to the 
most recent annual determination of the 
Postal Regulatory Commission under sec-
tion 3653; and 
‘‘(ii) unused rate authority annually 
increased by 5 percent for each class of 
mail that bore less than 90 percent of its 
costs attributable, according to the most 
annual determination by the Postal Regu-
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103 
latory Commission under section 3653, 
with such increase in unused rate authority 
to take effect 30 days after issuance of 
such Commission determination;’’. 
(b) EXCEPTION.—Section 3622(d) is amended by 
adding at the end the following: 
‘‘(4) 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).’’. 
SEC. 402. REPEAL OF RATE PREFERENCES FOR QUALIFIED 
POLITICAL COMMITTEES. 
Subsection (e) of section 3626 is repealed. 
SEC. 403. RATE PREFERENCES FOR NONPROFIT ADVER-
TISING. 
(a) PROVISIONS RELATING
TO FORMER SECTION 
4358(f).—Section 3626(a)(5) is amended by adding at the 
end the following: ‘‘Notwithstanding any other provision 
of this paragraph, the percentage specified in the pre-
ceding sentence shall be increased by an additional 5 per-
centage points as of the first day of each calendar year 
beginning after the date of the enactment of the Postal 
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