277 
as soon as practicable after the com-
mencement of a control period (in ac-
cordance with guidelines established by 
the Authority). 
(2) ADOPTION
BY
POSTMASTER
GEN-
ERAL.—In accordance with the proce-
dures applicable under section 223 (in-
cluding procedures providing for review 
by the Authority) the Postmaster General 
shall adopt the financial plan and budget 
for the applicable fiscal year (including 
the transition budget incorporated in the 
financial plan and budget). 
(3) TRANSITION BUDGET AS TEMPORARY 
FINANCIAL
PLAN
AND
BUDGET.—Until the 
approval of the financial plan and budget 
for the applicable fiscal year by the Au-
thority under this subsection, the transi-
tion 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 applica-
ble fiscal year. 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00277
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
278 
SEC. 228. ASSISTANCE IN ACHIEVING FINANCIAL STA-
BILITY, ETC. 
In addition to any other actions described 
in this title, the Authority may undertake co-
operative efforts to assist the Postal Service 
in achieving financial stability and manage-
ment efficiency, including— 
(1) assisting the Postal Service in 
avoiding defaults, eliminating and liqui-
dating deficits, maintaining sound budg-
etary practices, and avoiding interrup-
tions in the delivery of services; 
(2) assisting the Postal Service in im-
proving the delivery of services, the 
training and effectiveness of personnel of 
the Postal Service, and the efficiency 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 Federal Gov-
ernment, which would assist the Postal 
Service in complying with an approved 
financial plan and budget under subtitle 
B. 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00278
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
279 
SEC. 229. OBTAINING REPORTS. 
The Authority may require the Post-
master 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 ap-
propriate to assist it in carrying out its re-
sponsibilities under this title, including sub-
mitting copies of any reports regarding reve-
nues, expenditures, budgets, costs, plans, op-
erations, estimates, and other financial or 
budgetary matters 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 Au-
thority shall submit a report to Congress de-
scribing— 
(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 Au-
thority to the Postal Service in meeting 
the purposes of this title for the fiscal 
year; and 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00279
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
280 
(3) any other activities of the Author-
ity during the fiscal year. 
(b) REVIEW AND ANALYSIS OF PERFORMANCE 
AND FINANCIAL ACCOUNTABILITY REPORTS.—The 
Authority shall review each yearly report pre-
pared and submitted by the Postmaster Gen-
eral to the Postal Regulatory Commission and 
Congress and shall submit a report to Con-
gress analyzing the completeness and accu-
racy of such reports. 
(c) COMMENTS REGARDING ACTIVITIES
OF 
POSTAL SERVICE.—At any time during a con-
trol period, the Authority 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 deter-
mines will adversely affect the Postal Serv-
ice’s ability to comply with an approved fi-
nancial plan and budget under subtitle B or 
will otherwise have a significant adverse im-
pact on the best interests of the Postal Serv-
ice. 
(d) REPORTS ON EFFECT OF FEDERAL LAWS 
ON THE POSTAL SERVICE.—At any time during 
any year, the Authority may submit a report 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00280
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
281 
to the Postmaster General, the President, and 
Congress on the effect of laws enacted by Con-
gress on the financial plan and budget for the 
year and on the financial stability and man-
agement efficiency of the Postal Service in 
general. 
(e) MAKING
REPORTS
PUBLICLY
AVAIL-
ABLE.—The Authority shall make any report 
submitted under this section available to the 
public, except to the extent that the Authority 
determines that the report contains confiden-
tial material. 
TITLE III—POSTAL SERVICE 
WORKFORCE 
Subtitle A—General Provisions 
SEC. 301. MODIFICATIONS RELATING TO DETERMINATION 
OF PAY COMPARABILITY. 
(a) POSTAL POLICY.—The first sentence of 
section 101(c) is amended— 
(1) by inserting ‘‘total’’ before ‘‘rates 
and types of compensation’’; and 
(2) by inserting ‘‘entire’’ before ‘‘pri-
vate sector’’. 
(b) EMPLOYMENT POLICY.—The second sen-
tence of section 1003(a) is amended— 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00281
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
282 
(1) by inserting ‘‘total’’ before ‘‘com-
pensation and benefits’’ each place it ap-
pears; and 
(2) by inserting ‘‘entire’’ before ‘‘pri-
vate sector’’. 
(c) CONSIDERATIONS.—For purposes of the 
amendments made by this section, any deter-
mination of ‘‘total rates and types of com-
pensation’’ or ‘‘total compensation and bene-
fits’’ shall, at a minimum, take into account 
pay, health benefits, retirement benefits, life 
insurance benefits, leave, holidays, and con-
tinuity and stability of employment. 
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 fiscal year as described in paragraph (2), 
the Postmaster General shall transmit to the 
Postal Regulatory Commission certification 
(together with such supporting documenta-
tion as the Postal Regulatory Commission 
may require) that contributions of the Postal 
Service for such fiscal year will not exceed— 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00282
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
284 
‘‘(3)(A) If, after reasonable notice and op-
portunity 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 ex-
ceeding the limitation specified in subpara-
graph (A) or (B) of paragraph (1), the Commis-
sion shall order that the Postal Service take 
such action as the Commission considers nec-
essary to achieve full and immediate compli-
ance with the applicable limitation or limita-
tions. 
‘‘(B) Sections 3663 and 3664 shall apply 
with respect to any order issued by the Postal 
Regulatory Commission under subparagraph 
(A). 
‘‘(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.’’. 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00284
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
285 
SEC. 303. REPEAL OF PROVISION RELATING TO OVERALL 
VALUE OF FRINGE BENEFITS. 
The last sentence of section 1005(f) is re-
pealed. 
SEC. 304. APPLICABILITY OF REDUCTION-IN-FORCE PROCE-
DURES. 
Section 1206 is amended by adding at the 
end the following: 
‘‘(d) Collective-bargaining agreements be-
tween the Postal Service and bargaining rep-
resentatives recognized under section 1203, 
ratified after the date of enactment of this 
subsection, shall contain no provision re-
stricting the applicability of reduction-in- 
force procedures under title 5 with respect to 
members of the applicable bargaining unit. 
‘‘(e) Any collective-bargaining agreement 
between the Postal Service and the bar-
gaining representatives recognized under sec-
tion 1203 ratified before the date of enact-
ment of this Act that contain any provision 
violating subsection (d) shall be renegotiated 
with a new collective-bargaining agreement 
to be ratified or imposed through an arbitra-
tion decision under section 1207 within 9 
months after such date of enactment. 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00285
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
286 
‘‘(f)(1) If a collective-bargaining agree-
ment between the Postal Service and bar-
gaining representatives recognized under sec-
tion 1203, ratified after the date of enactment 
of this subsection, includes reduction-in-force 
procedures which can be applied in lieu of re-
duction-in-force procedures under title 5, the 
Postal Service may, in its discretion, apply 
with respect to members of the applicable 
bargaining unit— 
‘‘(A) the alternative procedures (or, if 
2 or more are agreed to, 1 of the alter-
native procedures); or 
‘‘(B) 
the 
reduction-in-force 
proce-
dures under title 5. 
‘‘(2) In no event may, if procedures for the 
resolution of a dispute or impasse arising in 
the negotiation of a collective-bargaining 
agreement (whether through binding arbitra-
tion or otherwise) are invoked under this 
chapter, the award or other resolution 
reached under such procedures provide for 
the elimination of, or the substitution of any 
alternative procedures in lieu of, reduction- 
in-force procedures under title 5.’’. 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00286
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
287 
SEC. 305. MODIFICATIONS RELATING TO COLLECTIVE BAR-
GAINING. 
Section 1207 is amended by striking sub-
sections (c) and (d) and inserting the fol-
lowing: 
‘‘(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 expiration 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 selected by the bar-
gaining representative of the employees (from 
the list under paragraph (2)), and the medi-
ator appointed under subsection (b). 
‘‘(2) Upon receiving a request from either 
of the parties referred to in paragraph (1), the 
Director of the Federal Mediation and Concil-
iation Service shall provide a list of not less 
than 9 individuals who are well qualified to 
serve as neutral arbitrators. Each person list-
ed shall be an arbitrator of nationwide rep-
utation and professional nature, a member of 
the National Academy of Arbitrators, and an 
individual whom the Director has determined 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00287
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
288 
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 concluded no more than 40 days after 
the arbitration board is established. 
‘‘(4) No more than 7 days after the hearing 
is concluded, 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 arbitration board a 
single final offer package specifying the terms 
of a proposed final agreement. 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00288
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
289 
‘‘(6) No later than 3 days after the submis-
sion of the final offer packages under para-
graph (5), the arbitration board shall select 1 
of those packages as its tentative award, sub-
ject to paragraph (7). 
‘‘(7)(A) The arbitration board may not se-
lect a final offer package under paragraph (6) 
unless it satisfies each of the following: 
‘‘(i) The offer complies with the re-
quirements of sections 101(c) and 1003(a). 
‘‘(ii) The offer takes into account the 
current financial condition of the Postal 
Service. 
‘‘(iii) The offer takes into account the 
long-term financial condition of the Post-
al Service. 
‘‘(B)(i) If the board unanimously deter-
mines, based on clear and convincing evi-
dence presented during the hearing under 
paragraph (3), that neither final offer package 
satisfies the conditions set forth in subpara-
graph (A), the board shall by majority vote— 
‘‘(I) select the package that best meets 
such conditions; and 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00289
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
290 
‘‘(II) modify the package so selected 
to the minimum extent necessary to sat-
isfy such conditions. 
‘‘(ii) If modification (as described in sub-
paragraph (B)(i)(II)) is necessary, the board 
shall have an additional 7 days to render its 
tentative award under this subparagraph. 
‘‘(8) The parties may negotiate a sub-
stitute 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 para-
graph (8) to determine if it satisfies the condi-
tions set forth in paragraph (7)(A). If the arbi-
tration board, by a unanimous vote taken 
within 3 days after the date on which the 
agreement on the substitute award is reached 
under paragraph (8), determines that the sub-
stitute award does not satisfy such condi-
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00290
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
291 
tions, the tentative award shall become final. 
In the absence of a vote, as described in the 
preceding sentence, the substitute 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 ar-
bitration 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 subsection shall be conclusive and bind-
ing upon the parties. 
‘‘(12) Costs of the arbitration board and 
mediation shall be shared equally by the Post-
al Service and the bargaining representative. 
‘‘(d) In the case of a bargaining unit whose 
recognized collective-bargaining representa-
tive does not have an agreement with the 
Postal Service, if the parties fail to reach 
agreement within 90 days after the com-
mencement of collective bargaining, a medi-
ator shall be appointed in accordance with 
the provisions of subsection (b), unless the 
parties have previously agreed to another 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00291
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
292 
procedure for a binding resolution of their 
differences. If the parties fail to reach agree-
ment within 180 days after the commence-
ment of collective bargaining, an arbitration 
board shall be established to provide conclu-
sive and binding arbitration in accordance 
with the provisions of subsection (c).’’. 
SEC. 306. ONE-TIME TRANSFER OF NET SURPLUS POSTAL 
RETIREMENT CONTRIBUTIONS. 
(a) TRANSFER
REQUIREMENT.—Not later 
than 2 weeks after the date of enactment of 
this Act, there shall be appropriated to the 
Postal Service Fund, from the Postal Service 
Federal Employee Retirement System ac-
count within the Civil Service Retirement and 
Disability Fund, an amount equal to the abso-
lute value of the amount computed as of Sep-
tember 30, 2010, under section 8423(b)(1)(B) of 
title 5, United States Code, less the sum of— 
(1) the Postal supplemental liability, 
calculated as of September 30, 2010, 
under section 8348(h) of title 5, United 
States Code; and 
(2) any contribution required by sec-
tion 8423 of such title that the Postal 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00292
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
293 
Service has not made during fiscal years 
2011 or 2012, as determined by the Office 
of Personnel Management no later than 
one week after the date of enactment of 
this Act 
(b) LIMITATIONS
ON
USE.—The amount 
transferred to the Postal Service Fund under 
this section— 
(1) may be used for such purposes as 
the Postal Service considers appropriate; 
except that 
(2) if any amounts so transferred re-
main in the Postal Service Fund after 
September 30, 2015, such amounts shall 
be used— 
(A) first, to satisfy any supple-
mental liability computed under sec-
tion 8423(b)(1)(B) of title 5, United 
States Code; 
(B) second, to satisfy any supple-
mental liability computed under sec-
tion 8348(h) of title 5, United States 
Code; and 
(C) third, to satisfy any obliga-
tions of the Postal Service under sec-
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00293
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
294 
tion 2005 of title 39, United States 
Code. 
(c) DEFINITIONS.—For purposes of this sec-
tion— 
(1) the term ‘‘Civil Service Retirement 
and Disability Fund’’ refers to the fund 
under section 8348 of title 5, United 
States Code; and 
(2) the term ‘‘Postal Service Fund’’ re-
fers to the fund under section 2003 of 
title 39, United States Code. 
(d) SENSE OF CONGRESS.—It is the sense of 
Congress that the Postal Service should use 
any funds under subsection (b)(1) for separa-
tion incentives for Postal employees. 
Subtitle B—Postal Service Workers’ 
Compensation Reform 
SEC. 311. POSTAL SERVICE WORKERS’ COMPENSATION RE-
FORM. 
(a) IN GENERAL.—Effective 12 months after 
the triggering date of this section (as defined 
in subsection (e)(2)), section 1005 is amended 
by striking subsection (c) and inserting the 
following: 
‘‘(c)(1) For purposes of this subsection— 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00294
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
295 
‘‘(A) the term ‘postal employee’ means 
an officer or employee of the Postal Serv-
ice or the former Post Office Department; 
‘‘(B) the term ‘retirement age’ has the 
meaning given such term under section 
216(l)(1) of the Social Security Act; and 
‘‘(C) the term ‘appropriate committees 
of Congress’ means— 
‘‘(i) the Committee on Oversight 
and Government Reform of the House 
of Representatives; and 
‘‘(ii) the Committee on Homeland 
Security and Governmental Affairs of 
the Senate. 
‘‘(2) The Postal Service shall design and 
administer a program for the payment of ben-
efits for the disability or death of an indi-
vidual resulting from personal injury sus-
tained while in the performance of such indi-
vidual’s duties as a postal employee. 
‘‘(3) The program under this subsection— 
‘‘(A) shall be designed by the Postal 
Service in consultation with appropriate 
employee representatives; 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00295
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
296 
‘‘(B) shall not provide for any amount 
payable to a disabled postal employee to 
be augmented on the basis of number of 
dependents; and 
‘‘(C) shall include provisions for auto-
matic transition, upon attainment of re-
tirement age, to benefits involving, co-
ordinated with, or otherwise determined 
by reference to retirement benefits.’’. 
(b) RECOMMENDATIONS.—Not later than 6 
months after the triggering date— 
(1) the Office of Personnel Manage-
ment shall submit to the appropriate 
committees of Congress recommenda-
tions for any legislation or administrative 
actions which the Office considers nec-
essary to carry out the purposes of this 
section with respect to any matter within 
the jurisdiction of the Office, including 
any amendments which may be necessary 
with respect to chapter 87 or 89 of title 5, 
United States Code; and 
(2) the Postal Service shall submit to 
the appropriate committees of Congress 
recommendations 
for 
any 
legislation 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00296
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
297 
which the Postal Service considers nec-
essary to carry out the purposes of this 
section with respect to any matter within 
the jurisdiction of the Postal Service. 
(c) 
NOTIFICATION
REQUIREMENTS.—Not 
later than 9 months after the triggering date, 
the Postal Service shall submit to the appro-
priate committees of Congress and shall cause 
to be published in the Federal Register a de-
scription of the program proposed by the 
Postal Service for implementation under sec-
tion 1005(c) of title 39, United States Code, as 
amended by subsection (a). Included in the 
notification provided under the preceding 
sentence shall be— 
(1) a detailed statement of the bene-
fits to be offered and the persons eligible 
to receive those benefits; 
(2) provisions to ensure an orderly 
transition to the system proposed to be 
implemented; and 
(3) such other information as the 
Postal Service considers appropriate. 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00297
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
298 
(d) COMMENCEMENT DATE.—The program 
under section 1005(c) of title 39, United States 
Code, as amended by this section— 
(1) shall begin to operate on such 
date as the Postmaster General shall de-
termine, except that such date shall be a 
date occurring— 
(A) not earlier than 12 months 
after the triggering date; and 
(B) not later than 24 months after 
the triggering date; and 
(2) 
shall 
apply 
with 
respect 
to 
amounts payable for periods beginning 
on or after the date on which the pro-
gram begins to operate, irrespective of 
date of the disability or death to which 
such amounts relate. 
(e) CONDITION PRECEDENT.— 
(1) IN GENERAL.—The preceding provi-
sions of this section shall not become ef-
fective until the date on which a Postal 
Service 
Financial 
Responsibility 
and 
Management Assistance Authority (estab-
lished under section 202)— 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00298
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
299 
(A) makes a written determina-
tion that conditions warrant their im-
plementation; and 
(B) submits such written deter-
mination to the Postal Service, the 
Office of Personnel Management, and 
the appropriate committees of Con-
gress (within the meaning of the 
amendment made by subsection (a)). 
(2) TRIGGERING DATE.—For purposes of 
this section, the term ‘‘triggering date of 
this section’’ or ‘‘triggering date’’ means 
the date described in paragraph (1). 
TITLE IV—POSTAL SERVICE 
REVENUE 
SEC. 401. ADEQUACY, EFFICIENCY, AND FAIRNESS OF POST-
AL RATES. 
(a) 
IN
GENERAL.—Section 
3622(d) 
is 
amended— 
(1) in paragraph (1)— 
(A) 
by 
redesignating 
subpara-
graphs (B) through (E) as subpara-
graph (D) through (G), respectively; 
and 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00299
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
300 
(B) by inserting after subpara-
graph (A) the following: 
‘‘(B) subject to the limitation 
under subparagraph (A), establish 
postal rates to fulfill the requirement 
that 
each 
market-dominant 
class, 
product, and type of mail service (ex-
cept for an experimental product or 
service) bear the direct and indirect 
postal costs attributable to such class, 
product, or type through reliably 
identified causal relationships plus 
that portion of all other costs of the 
Postal Service reasonably assignable 
to such class, product, or type; 
‘‘(C) establish postal rates for 
each group of functionally equivalent 
agreements between the Postal Serv-
ice and users of the mail that— 
‘‘(i) cover attributable cost; 
and 
‘‘(ii) improve the net financial 
position of the Postal Service; 
for purposes of this subparagraph, a 
group 
of 
functionally 
equivalent 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00300
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
301 
agreements shall consist of all service 
agreements 
that 
are 
functionally 
equivalent to each other within the 
same market-dominant product, but 
shall not include agreements within 
an experimental product;’’; and 
(2) by adding at the end the fol-
lowing: 
‘‘(4) PRC STUDY.— 
‘‘(A) IN GENERAL.—Within 90 days 
after the end of the first fiscal year 
beginning after the date of enactment 
of the Postal Reform Act of 2012, the 
Postal Regulatory Commission shall 
complete a study to determine the 
quantitative impact of the Postal 
Service’s excess capacity on the di-
rect and indirect postal costs attrib-
utable to any class that bears less 
than 100 percent of its costs attrib-
utable (as described in paragraph 
(1)(B)), according to the most recent 
annual determination of the Postal 
Regulatory Commission under sec-
tion 3653. 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00301
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
302 
‘‘(B) 
REQUIREMENTS.—The 
study 
required 
under 
subparagraph 
(A) 
shall— 
‘‘(i) be conducted pursuant to 
regulations that the Postal Regu-
latory Commission shall prescribe 
within 90 days after the date of 
enactment of the Postal Reform 
Act of 2012, taking into account 
existing 
regulations 
for 
pro-
ceedings to improve the quality, 
accuracy, or completeness of rate-
making information under section 
3652(e)(2) in effect on such date; 
and 
‘‘(ii) for any year in which any 
class of mail bears less than 100 
percent of its costs attributable 
(as 
described 
in 
paragraph 
(1)(B)), be updated annually by 
the Postal Service and included 
in its annual report to the Com-
mission under section 3652, using 
such methodologies as the Com-
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00302
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
303 
mission shall by regulation pre-
scribe. 
‘‘(5) ADDITIONAL
RATES.—Starting not 
earlier than 12 months and not later than 
18 months after the date on which the 
first study described in paragraph (4) is 
completed, and at least once in each sub-
sequent 12-month period, the Postal Serv-
ice shall establish postal rates for each 
loss-making class of mail to eliminate 
such losses (other than those caused by 
the Postal Service’s excess capacity) by 
exhausting all unused rate authority as 
well as maximizing incentives to reduce 
costs and increase efficiency, subject to 
the following: 
‘‘(A) The term ‘loss-making’, as 
used in this paragraph with respect 
to a class of mail, means a class of 
mail that bears less than 100 percent 
of its costs attributable (as described 
in paragraph (1)(B)), according to the 
most recent annual determination of 
the Postal Regulatory Commission 
under section 3653, adjusted to ac-
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00303
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
304 
count for the quantitative effect of 
excess capacity on the costs attrib-
utable of the class (as described in 
paragraph (1)(C)). 
‘‘(B) Unused rate authority shall 
be annually increased by 2 percent 
for each class of mail that bears less 
than 90 percent of its costs attrib-
utable (as described in paragraph 
(1)(B)), according to the most recent 
annual determination of the Postal 
Regulatory Commission under sec-
tion 3653, adjusted to account for the 
quantitative effect of excess capacity 
on the costs attributable of the class 
(as described in paragraph (1)(C)), 
with such increase in unused rate au-
thority to take effect 30 days after the 
date that the Commission issues such 
determination.’’. 
(b) CONFORMING
AMENDMENT.—Subpara-
graph (A) of section 3622(c)(10) is amended to 
read as follows: 
‘‘(A) improve the net financial po-
sition of the Postal Service through 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00304
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
305 
reducing Postal Service costs or in-
creasing the overall contribution to 
the institutional costs of the Postal 
Service; and’’. 
(c) EXCEPTION.—Section 3622(d) is amend-
ed by adding after paragraph (5) (as added by 
subsection (a)(2)) the following: 
‘‘(6) EXCEPTION.—The requirements of 
paragraph (1)(B) shall not apply to a mar-
ket-dominant product for which a sub-
stantial portion of the product’s mail vol-
ume consists of inbound international 
mail with terminal dues rates determined 
by the Universal Postal Union (and not 
by bilateral agreements or other arrange-
ments).’’. 
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 SEC-
TION 4358(f).—Section 3626(a)(5) is amended 
by adding at the end the following: ‘‘Notwith-
standing any other provision of this para-
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00305
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
306 
graph, the percentage specified in the pre-
ceding sentence shall be increased by an addi-
tional 2 percentage points as of the first day 
of each calendar year beginning at least 3 
years after the date of the enactment of the 
Postal Reform Act of 2012, until such percent-
age reaches 80 percent.’’. 
(b) PROVISIONS RELATING TO FORMER SEC-
TION 4452 (b) AND (c).—Section 3626(a)(6) is 
amended by inserting after subparagraph (C) 
the following (as a flush left sentence): 
‘‘Notwithstanding any other provision of this 
paragraph, the percentage specified in sub-
paragraph (A) shall be increased by an addi-
tional 2 percentage points as of the first day 
of each calendar year beginning at least 3 
years after the date of the enactment of the 
Postal Reform Act of 2012, until such percent-
age reaches 80 percent.’’. 
SEC. 404. STREAMLINED REVIEW OF QUALIFYING SERVICE 
AGREEMENTS FOR COMPETITIVE PRODUCTS. 
Section 3633 is amended by adding at the 
end the following: 
‘‘(c) STREAMLINED REVIEW.—Within 90 days 
after the date of the enactment of this sub-
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00306
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
307 
section, after notice and opportunity for pub-
lic comment, the Postal Regulatory Commis-
sion shall promulgate (and may from time to 
time thereafter revise) regulations for stream-
lined after-the-fact review of new agreements 
between the Postal Service and users of the 
mail that provide rates not of general applica-
bility for competitive products, and are func-
tionally equivalent to existing agreements 
that have collectively covered attributable 
costs and collectively improved the net finan-
cial position of the Postal Service. Stream-
lined review will be concluded within 5 work-
ing days after the agreement is filed with the 
Commission and shall be limited to approval 
or disapproval of the agreement as a whole 
based on the Commission’s determination of 
its functional equivalence. Agreements not 
approved may be resubmitted without preju-
dice under section 3632(b)(3).’’. 
SEC. 405. SUBMISSION OF SERVICE AGREEMENTS FOR 
STREAMLINED REVIEW. 
Section 3632(b) is amended— 
(1) by redesignating paragraph (4) as 
paragraph (5); and 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00307
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
308 
(2) by inserting after paragraph (3) 
the following: 
‘‘(4) RATES FOR STREAMLINED REVIEW.— 
In the case of rates not of general appli-
cability for competitive products that the 
Postmaster General considers eligible for 
streamlined review under section 3633(c), 
the Postmaster General shall cause each 
agreement to be filed with the Postal 
Regulatory Commission by such date, on 
or before the effective date of any new 
rate, as the Postmaster General consid-
ered appropriate.’’. 
SEC. 406. TRANSPARENCY AND ACCOUNTABILITY FOR 
SERVICE AGREEMENTS. 
Section 3653 is amended— 
(1) by redesignating subsections (c) 
through (e) as subsections (d) through (f), 
respectively; and 
(2) by inserting after subsection (b) 
the following: 
‘‘(c) Each annual written determination of 
the Commission under section 3653 shall in-
clude the following written determinations: 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00308
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
310 
clude agreements within an experimental 
product.’’. 
SEC. 407. NONPOSTAL SERVICES. 
(a) NONPOSTAL SERVICES.— 
(1) IN GENERAL.—Part IV is amended 
by adding after chapter 36 the following: 
‘‘CHAPTER 37—NONPOSTAL SERVICES 
‘‘Sec. 
‘‘3701. Purpose. 
‘‘3702. Definitions. 
‘‘3703. Postal Service advertising program. 
‘‘3704. Postal Service program for State governments. 
‘‘3705. Postal Service program for other government agencies. 
‘‘3706. Transparency and accountability for nonpostal services. 
‘‘§ 3701. Purpose 
‘‘This chapter is intended to enable the 
Postal Service to increase its net revenues 
through specific nonpostal products and serv-
ices that are expressly authorized by this 
chapter. Postal Service revenues and ex-
penses under this chapter shall be funded 
through the Postal Service Fund. 
‘‘§ 3702. Definitions 
‘‘As used in this chapter— 
‘‘(1) the term ‘nonpostal services’ is 
limited to services offered by the Postal 
Service that are expressly authorized by 
this chapter and are not postal products 
or services; 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00310
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
312 
‘‘(1) The Postal Service shall at all 
times ensure advertising it permits is 
consistent with the integrity of the Postal 
Service. 
‘‘(2) Any advertising program is re-
quired to cover a minimum of 200 per-
cent of its attributable costs in each year. 
‘‘(3) All advertising expenditures and 
revenues are subject to annual compli-
ance determination (including remedies 
for noncompliance) applicable to non-
postal products. 
‘‘(4) Total advertising expenditures 
and revenues must be disclosed in Postal 
Service annual reports. 
‘‘§ 3704. Postal Service program for State govern-
ments 
‘‘(a) IN
GENERAL.—Notwithstanding any 
other provision of this title, the Postal Service 
may establish a program to provide services 
for agencies of State governments within the 
United States, but only if such services— 
‘‘(1) shall provide enhanced value to 
the public, such as by lowering the cost 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00312
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
313 
or raising the quality of such services or 
by making such services more accessible; 
‘‘(2) do not interfere with or detract 
from the value of postal services, includ-
ing— 
‘‘(A) the cost and efficiency of 
postal services; and 
‘‘(B) access to postal retail serv-
ice, such as customer waiting time 
and access to parking; and 
‘‘(3) provide a reasonable contribu-
tion to the institutional costs of the Post-
al Service, defined as reimbursement for 
each service and to each agency covering 
at least 150 percent of the attributable 
costs of such service in each year. 
‘‘(b) PUBLIC NOTICE.—At least 90 days be-
fore offering any services under this section, 
the Postal Service shall make each agreement 
with State agencies readily available to the 
public on its website, including a business 
plan that describes the specific services to be 
provided, the enhanced value to the public, 
terms of reimbursement, the estimated an-
nual reimbursement to the Postal Service, 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00313
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
314 
and the estimated percentage of attributable 
Postal Service costs that will be covered by 
reimbursement (with documentation to sup-
port these estimates). The Postal Service shall 
solicit public comment for at least 30 days, 
with comments posted on its website, fol-
lowed by its written response posted on its 
website at least 30 days before offering such 
services. 
‘‘(c) APPROVAL REQUIRED.—The Governors 
of the Postal Service shall approve the provi-
sion of services under this section by a re-
corded vote, with at least 2⁄3 of its membership 
voting for approval, with the vote publicly 
disclosed on the Postal Service website. 
‘‘(d) 
CLASSIFICATION
OF
SERVICES.—All 
services for a given agency provided under 
this section shall be classified as a separate 
activity subject to the requirements of annual 
reporting under section 3706. Such reporting 
shall also include information on the quality 
of service and related information to dem-
onstrate that it satisfied the requirements of 
subsection (a). Information provided under 
this section shall be according to require-
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00314
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
315 
ments that the Postal Regulatory Commission 
shall by regulation prescribe. 
‘‘(e) DEFINITIONS.—For the purpose of this 
section— 
‘‘(1) the term ‘State’ includes the Dis-
trict of Columbia, the Commonwealth of 
Puerto Rico, the United States Virgin Is-
lands, Guam, American Samoa, the Com-
monwealth of the Northern Mariana Is-
lands, and any other territory or posses-
sion of the United States; and 
‘‘(2) the term ‘United States’, when 
used in a geographical sense, means the 
States. 
‘‘§ 3705. Postal Service program for other government 
agencies 
‘‘(a) IN GENERAL.—The Postal Service may 
establish a program to provide property and 
services for other government agencies with-
in the meaning of section 411, but only if such 
program provides a reasonable contribution 
to the institutional costs of the Postal Service, 
defined as reimbursement by each agency 
that covers at least 100 percent of the attrib-
utable costs of all property and service pro-
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00315
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
316 
vided by the Postal Service in a each year to 
such agency. 
‘‘(b) CLASSIFICATION
OF
SERVICES.—For 
each agency, all property and services pro-
vided by the Postal Service under this section 
shall be classified as a separate activity sub-
ject to the requirements of annual reporting 
under section 3706. Information provided 
under this section shall be according to re-
quirements that the Postal Regulatory Com-
mission shall by regulation prescribe. 
‘‘§ 3706. Transparency and accountability for non-
postal services 
‘‘(a) ANNUAL
REPORTS
TO
THE
COMMIS-
SION.— 
‘‘(1) IN GENERAL.—The Postal Service 
shall, no later than 90 days after the end 
of each year, prepare and submit to the 
Postal Regulatory Commission a report 
(together with such nonpublic annex to 
the report as the Commission may re-
quire under subsection (b)) which shall 
analyze costs, revenues, rates, and qual-
ity of service for this chapter, using such 
methodologies as the Commission shall 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00316
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
317 
by regulation prescribe, and in sufficient 
detail to demonstrate compliance with all 
applicable requirements of this chapter. 
‘‘(2) AUDITS.—The Inspector General 
shall regularly audit the data collection 
systems and procedures utilized in col-
lecting information and preparing such 
report. The results of any such audit 
shall be submitted to the Postal Service 
and the Postal Regulatory Commission. 
‘‘(b) SUPPORTING MATTER.—The Postal Reg-
ulatory Commission shall have access, in ac-
cordance with such regulations as the Com-
mission shall prescribe, to the working papers 
and any other supporting matter of the Postal 
Service and the Inspector General in connec-
tion with any information submitted under 
this section. 
‘‘(c) CONTENT AND FORM OF REPORTS.— 
‘‘(1) IN
GENERAL.—The Postal Regu-
latory Commission shall, by regulation, 
prescribe the content and form of the 
public reports (and any nonpublic annex 
and supporting matter relating to the re-
port) to be provided by the Postal Service 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00317
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
318 
under this section. Such reports shall be 
included with the annual compliance de-
termination reported under section 3653. 
In carrying out this subsection, the Com-
mission shall give due consideration to— 
‘‘(A) providing the public with 
timely, adequate information to as-
sess compliance; 
‘‘(B) avoiding unnecessary or un-
warranted administrative effort and 
expense on the part of the Postal 
Service; and 
‘‘(C) protecting the confidentiality 
of information that is commercially 
sensitive or is exempt from public 
disclosure under section 552(b) of 
title 5. 
‘‘(2) 
REVISED
REQUIREMENTS.—The 
Commission may, on its own motion or on 
request of any interested party, initiate 
proceedings (to be conducted in accord-
ance with regulations that the Commis-
sion shall prescribe) to improve the qual-
ity, accuracy, or completeness of Postal 
Service data required by the Commission 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00318
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
319 
under this subsection whenever it shall 
appear that— 
‘‘(A) the attribution of costs or 
revenues to property or services 
under this chapter has become sig-
nificantly inaccurate or can be sig-
nificantly improved; 
‘‘(B) the quality of service data 
provided to the Commission for an-
nual reports under this chapter has 
become significantly inaccurate or 
can be significantly improved; or 
‘‘(C) such revisions are, in the 
judgment of the Commission, other-
wise necessitated by the public inter-
est. 
‘‘(d) CONFIDENTIAL INFORMATION.— 
‘‘(1) IN GENERAL.—If the Postal Service 
determines that any document or portion 
of a document, or other matter, which it 
provides to the Postal Regulatory Com-
mission in a nonpublic annex under this 
section contains information which is de-
scribed in section 410(c) of this title, or 
exempt from public disclosure under sec-
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00319
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
320 
tion 552(b) of title 5, the Postal Service 
shall, at the time of providing such mat-
ter to the Commission, notify the Com-
mission of its determination, in writing, 
and describe with particularity the docu-
ments (or portions of documents) or 
other matter for which confidentiality is 
sought and the reasons therefor. 
‘‘(2) TREATMENT.—Any information or 
other matter described in paragraph (1) 
to which the Commission gains access 
under this section shall be subject to 
paragraphs (2) and (3) of section 504(g) in 
the same way as if the Commission had 
received notification with respect to such 
matter under section 504(g)(1). 
‘‘(e) 
ANNUAL
COMPLIANCE
DETERMINA-
TION.— 
‘‘(1) OPPORTUNITY
FOR
PUBLIC
COM-
MENT.—After receiving the reports re-
quired under subsection (a) for any year, 
the Postal Regulatory Commission shall 
promptly provide an opportunity for 
comment on such reports by any inter-
ested party, and an officer of the Com-
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00320
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
321 
mission who shall be required to rep-
resent the interests of the general public. 
‘‘(2) DETERMINATION OF COMPLIANCE OR 
NONCOMPLIANCE.—Not later than 90 days 
after receiving the submissions required 
under subsection (a) with respect to a 
year, the Postal Regulatory Commission 
shall make a written determination as to 
whether any nonpostal activities during 
such year were or were not in compli-
ance with applicable provisions of this 
chapter 
(or 
regulations 
promulgated 
under this chapter). The Postal Regu-
latory Commission shall issue a deter-
mination of noncompliance if the require-
ments for coverage of attributable costs 
are not met. If, with respect to a year, no 
instance of noncompliance is found to 
have occurred in such year, the written 
determination shall be to that effect. 
‘‘(3) NONCOMPLIANCE.—If, for a year, a 
timely written determination of non-
compliance is made under this chapter, 
the Postal Regulatory Commission shall 
take appropriate action. If the require-
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00321
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
322 
ments for coverage of attributable costs 
specified by this chapter are not met, the 
Commission shall, within 60 days after 
the determination, prescribe remedial ac-
tion to restore compliance as soon as 
practicable, which shall also include the 
full restoration of revenue shortfalls dur-
ing the following fiscal year. The Com-
mission may order the Postal Service to 
discontinue a nonpostal service under 
section 3703 or 3704 that persistently fails 
to meet cost coverage requirements. 
‘‘(4) 
ANY
DELIBERATE
NONCOMPLI-
ANCE.—In addition, in cases of deliberate 
noncompliance by the Postal Service 
with the requirements of this chapter, 
the Postal Regulatory Commission may 
order, 
based 
on 
the 
nature, 
cir-
cumstances, extent, and seriousness of 
the noncompliance, a fine (in the amount 
specified by the Commission in its order) 
for each incidence of noncompliance. All 
receipts from fines imposed under this 
subsection shall be deposited in the gen-
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00322
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS
323 
eral fund of the Treasury of the United 
States.’’. 
(2) CLERICAL
AMENDMENT.—The table 
of chapters at the beginning of part IV is 
amended by adding after the item relat-
ing to chapter 36 the following: 
‘‘37. Nonpostal Services ................................................................... 3701’’. 
(b) CONFORMING AMENDMENTS.— 
(1) SECTION 404(e).—Section 404(e) is 
amended by adding at the end the fol-
lowing: 
‘‘(6) Nothing in this section shall be con-
sidered to prevent the Postal Service from es-
tablishing nonpostal products and services 
that are expressly authorized by chapter 37.’’. 
(2) SECTION 411.—The last sentence of 
section 411 is amended by striking ‘‘in-
cluding reimbursability’’ and inserting 
‘‘including 
reimbursability 
within 
the 
limitations of chapter 37’’. 
(3) TREATMENT OF EXISTING NONPOSTAL 
SERVICES.—All nonpostal services contin-
ued pursuant to section 404(e) of title 39, 
United States Code, shall be considered 
to be expressly authorized by chapter 37 
of such title (as added by subsection 
VerDate Mar 15 2010 
22:03 Mar 29, 2012
Jkt 019200
PO 00000
Frm 00323
Fmt 6652
Sfmt 6202
E:\BILLS\H2309.RH
H2309
mstockstill on DSK4VPTVN1PROD with BILLS