of such change on overall Postal Service costs during 
such year, using such methodologies as the Commis-
sion shall by regulation prescribe.’’. 
SEC. 106. AREA AND DISTRICT OFFICE STRUCTURE. 
(a) IN GENERAL.—Not later than 120 days after the 
date of enactment of this Act, the Postal Service, in con-
sultation with the Inspector General of the United States 
Postal Service, shall develop and begin implementation of 
a plan for the closure or consolidation of such area and 
district offices as the Postal Service considers necessary 
and appropriate so that, by October 1, 2015, the combined 
total number of area and district offices will be at least 
30 percent less than the corresponding combined total as 
of September 30, 2012. 
(b) CONTENTS.—The plan shall include— 
(1) a list of the area and district offices pro-
posed for closure or consolidation; 
(2) a proposed schedule under which closures 
and consolidations of area and district offices would 
be carried out; 
(3) the estimated total annual cost savings at-
tributable to the proposed closures and consolida-
tions described in the plan; 
(4) the criteria and process used to develop the 
information described in paragraphs (1) and (2); 
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(5) the methodology and assumptions used to 
derive the estimates described in paragraph (3); and 
(6) any changes to the processing, transpor-
tation, delivery, or other postal operations antici-
pated as a result of the proposed closures and con-
solidations described in the plan. 
(c) PLAN SUBMISSION REVISION.—Not later than 
120 days after the date of enactment of this Act, the plan 
shall be submitted to the Committee on Homeland Secu-
rity and Governmental Affairs of the Senate and the Com-
mittee on Oversight and Government Reform of the House 
of Representatives. Any revision to the plan shall be sub-
mitted not later than 14 days after such revision is adopt-
ed by the Postal Service. 
TITLE II—POSTAL SERVICE 
GOVERNANCE 
Subtitle A—Temporary Governance 
Authority 
SEC. 201. PURPOSES. 
(a) PURPOSES.—The purposes of this subtitle are as 
follows: 
(1) To eliminate budget deficits and cash short-
ages of the Postal Service through strategic financial 
planning, sound budgeting, accurate revenue fore-
casts, and careful spending. 
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(2) To ensure that universal service, as required 
by section 101 of title 39, United States Code, is 
maintained during the period of any fiscal emer-
gency. 
(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 investments 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 ensure the long-term financial, fiscal, 
and economic vitality and operational efficiency of 
the Postal Service. 
(b) RESERVATION OF POWERS.—Nothing in this sub-
title may be construed— 
(1) to relieve any obligation of the Postal Serv-
ice to the Treasury of the United States existing as 
of the date of enactment of this Act; or 
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(2) to limit the authority of Congress to exer-
cise legislative authority over the Postal Service. 
SEC. 202. ESTABLISHMENT OF THE POSTAL SERVICE FI-
NANCIAL 
RESPONSIBILITY 
AND 
MANAGE-
MENT ASSISTANCE AUTHORITY. 
(a) ESTABLISHMENT.—There is established, in ac-
cordance with the provisions of this subtitle, an entity to 
be known as the ‘‘Postal Service Financial Responsibility 
and Management Assistance Authority’’ (hereinafter in 
this subtitle referred to as the ‘‘Authority’’). 
(b) OPERATIONS DURING THE CONTROL PERIOD.— 
(1) CONTROL PERIOD DEFINED.—For the pur-
poses of this subtitle, the term ‘‘control period’’ 
means the period that commences on the date as of 
which the Authority has at least 4 members and ter-
minates as of the date determined under paragraph 
(5). 
(2) TRANSFER OF AUTHORITIES AND RESPON-
SIBILITIES.—Effective as of the date on which the 
control period commences— 
(A) subsections (a) and (b) of section 202 
are repealed; 
(B) the term of office of each of the 9 Gov-
ernors (appointed under the second sentence of 
section 202(a)(1) of title 39, United States 
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Code, as last in effect before the date of enact-
ment of this Act) shall terminate; and 
(C) the Authority shall assume its respon-
sibilities, as set forth in section 206. 
(3) TREATMENT OF CERTAIN EXECUTIVES.— 
(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 the 
other officers and employees of the Postal Serv-
ice in level two of the Postal Career Executive 
Service (or the equivalent), but does not include 
any officer or employee of the Office of Inspec-
tor General of the United States Postal Service. 
(B) TREATMENT.—Notwithstanding any 
other provision of law or the provisions of any 
employment contract, during the control pe-
riod— 
(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-
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