I 
113TH CONGRESS 
1ST SESSION 
H. R. 630 
To recalculate and restore retirement annuity obligations of the United States 
Postal Service, eliminate the requirement that the United States Postal 
Service pre-fund the Postal Service Retiree Health Benefits Fund, place 
restrictions on the closure of postal facilities, create incentives for innova-
tion for the United States Postal Service, to maintain levels of postal 
service, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 13, 2013 
Mr. DEFAZIO introduced the following bill; which was referred to the Com-
mittee on Oversight and Government Reform, and in addition to the 
Committee on the Judiciary, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned 
A BILL 
To recalculate and restore retirement annuity obligations of 
the United States Postal Service, eliminate the require-
ment that the United States Postal Service pre-fund 
the Postal Service Retiree Health Benefits Fund, place 
restrictions on the closure of postal facilities, create in-
centives for innovation for the United States Postal Serv-
ice, to maintain levels of postal service, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Postal Service Protection Act of 2013’’. 
(b) TABLE OF CONTENTS.—The table of contents is 
as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—RETIREMENT ANNUITY OBLIGATION RECALCULATION 
AND RESTORATION 
Sec. 101. Modified methodology. 
Sec. 102. Relating to a postal surplus. 
Sec. 103. Treatment of certain surplus retirement contributions. 
Sec. 104. Elimination of requirement to pre-fund the Postal Service Retiree 
Health Benefits Fund. 
Sec. 105. Effective date; rule of construction. 
TITLE II—RESTRICTIONS ON POSTAL FACILITY CLOSURES 
Sec. 201. Modified procedures. 
Sec. 202. Definitions. 
TITLE III—INCENTIVES FOR INNOVATION 
Sec. 301. Authority to offer nonpostal services and products. 
Sec. 302. Wine and beer shipping. 
Sec. 303. Innovation and accountability. 
TITLE IV—MAINTAINING LEVELS OF SERVICE 
Sec. 401. Six-day delivery. 
Sec. 402. Service standards for market-dominant products. 
TITLE V—ELIMINATION OF ANNUAL LIMITATION ON INCREASES 
IN RATES FOR MARKET-DOMINANT PRODUCTS 
Sec. 501. Elimination of annual limitation. 
TITLE I—RETIREMENT ANNUITY 
OBLIGATION 
RECALCULA-
TION AND RESTORATION 
SEC. 101. MODIFIED METHODOLOGY. 
(a) IN GENERAL.—Section 8348(h) of title 5, United 
States Code, is amended by adding at the end the fol-
lowing: 
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‘‘(4)(A) To the extent that a determination under 
paragraph (1), relating to benefits attributable to civilian 
employment with the United States Postal Service, is 
based on a provision of law described in subparagraph (C), 
the determination shall be made in accordance with that 
provision and any otherwise applicable provisions of law, 
subject to the following: 
‘‘(i) The ‘average pay’ used in the case of any 
individual shall be a single amount, determined in 
accordance with section 8331(4), taking into account 
the rates of basic pay in effect for the individual 
during the periods of creditable service performed by 
the individual. Nothing in this subsection shall be 
considered to permit or require— 
‘‘(I) 1 determination of average pay with 
respect to service performed with the United 
States Postal Service; and 
‘‘(II) a separate determination of average 
pay with respect to service performed with its 
predecessor entity in function. 
‘‘(ii) In determining the portion of an annuity 
attributable to civilian employment with the United 
States Postal Service, with respect to any period of 
employment with the United States Postal Service 
that follows any other period of employment cred-
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itable under section 8332 (without regard to whether 
the employment was with an entity referred to in 
clause (i)(II)), the total service of an employee for 
purposes of any provision of law described in sub-
paragraph (C) shall be the sum of— 
‘‘(I) any period of employment with the 
United States Postal Service; and 
‘‘(II) any period of employment creditable 
under section 8332 that precedes the period de-
scribed in subclause (I). 
‘‘(B)(i) Not later than 6 months after the date of en-
actment of this paragraph, the Office shall determine (or, 
if applicable, redetermine) the amount of the Postal sur-
plus or supplemental liability as of the close of the fiscal 
year most recently ending before that date of enactment, 
in conformance with the methodology required under sub-
paragraph (A). 
‘‘(ii)(I) If the result of the determination or redeter-
mination under clause (i) is a surplus, the Office may 
transfer the amount of the surplus, or any portion of the 
amount of the surplus, at the request of the United States 
Postal Service, to— 
‘‘(aa) the Postal Service Retiree Health Bene-
fits Fund established under section 8909a; and 
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‘‘(bb) the Postal Service Fund established 
under section 2003 of title 39. 
‘‘(II) If a determination or redetermination under 
clause (i) for a fiscal year is made before a determination 
under paragraph (2)(B) is made with respect to the fiscal 
year, the Office may not make a determination under 
paragraph (2)(B) with respect to the fiscal year. 
‘‘(C) The provisions of law described in this subpara-
graph are— 
‘‘(i) the first sentence of section 8339(a); and 
‘‘(ii) section 8339(d)(1).’’. 
(b) COORDINATION PROVISIONS.— 
(1) DETERMINATION OF AMOUNT PAYABLE.— 
Section 8909a of title 5, United States Code, is 
amended by adding at the end the following: 
‘‘(e) Notwithstanding any other provision of law, the 
Office shall determine the amount payable by the Postal 
Service under subsection (d) in any fiscal year ending on 
or before September 30, 2013, without regard to the re-
quirements under section 8348(h)(4).’’. 
(2) RULE OF CONSTRUCTION.—Nothing in this 
Act shall affect the amount of any benefits otherwise 
payable from the Civil Service Retirement and Dis-
ability Fund to any individual. 
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(c) TECHNICAL AND CONFORMING AMENDMENT.— 
The heading for section 8909a of title 5, United States 
Code, is amended by striking ‘‘Benefit’’ and inserting 
‘‘Benefits’’. 
SEC. 102. RELATING TO A POSTAL SURPLUS. 
Section 8348(h)(2)(C) of title 5, United States Code, 
is amended— 
(1) by inserting ‘‘2021,’’ after ‘‘2015,’’; and 
(2) by striking ‘‘if the result is’’ and all that 
follows through ‘‘terminated.’’ and inserting the fol-
lowing: ‘‘if the result is a surplus— 
‘‘(i) that amount, or any portion of that 
amount, may be transferred at the request of the 
United States Postal Service to— 
‘‘(I) the Postal Service Retiree Health 
Benefits Fund; and 
‘‘(II) the Postal Service Fund established 
under section 2003 of title 39; and 
‘‘(ii) any prior amortization schedule for pay-
ments shall be terminated.’’. 
SEC. 103. TREATMENT OF CERTAIN SURPLUS RETIREMENT 
CONTRIBUTIONS. 
Section 8423(b) of title 5, United States Code, is 
amended— 
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(1) by redesignating paragraph (5) as para-
graph (6); and 
(2) by inserting after paragraph (4) the fol-
lowing: 
‘‘(5) If, for fiscal year 2010, the amount computed 
under paragraph (1)(B) is less than zero (in this section 
referred to as ‘surplus postal contributions’), the amount 
of the surplus postal contributions, or any portion of the 
amount, may be transferred at the request of the United 
States Postal Service to— 
‘‘(A) the Postal Service Retiree Health Benefits 
Fund established under section 8909a; 
‘‘(B) the Postal Service Fund established under 
section 2003 of title 39; 
‘‘(C) the Employees’ Compensation Fund estab-
lished under section 8147; and 
‘‘(D) the United States Postal Service for the 
repayment of any obligation issued under section 
2005 of title 39.’’. 
SEC. 104. ELIMINATION OF REQUIREMENT TO PRE-FUND 
THE POSTAL SERVICE RETIREE HEALTH BEN-
EFITS FUND. 
(a) IN GENERAL.—Section 8909a of title 5, United 
States Code, is amended— 
(1) in subsection (d)— 
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(A) by striking paragraph (3); and 
(B) 
by 
redesignating 
paragraphs 
(4) 
through (6) as paragraphs (3) through (5), re-
spectively; and 
(2) by adding at after subsection (e) (as added 
by section 101(b)(1)) the following: 
‘‘(f) Nothing in this section shall be construed to re-
quire the Postal Service to pay any amount into the Postal 
Service Retiree Health Benefits Fund established under 
section 8909a.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.— 
Section 803(b)(1)(A) of the Postal Accountability and En-
hancement Act (5 U.S.C. 8909a note) is amended by 
striking ‘‘8909a(d)(5)’’ and inserting ‘‘8909a(d)(4)’’. 
SEC. 105. EFFECTIVE DATE; RULE OF CONSTRUCTION. 
(a) IN GENERAL.—This title and the amendments 
made by this title shall take effect on the date of enact-
ment of this Act. 
(b) INTENT OF CONGRESS.—It is the intent of Con-
gress that this title apply with respect to the allocation 
of past, present, and future benefit liabilities between the 
United States Postal Service and the Treasury of the 
United States. 
(c) RULE OF CONSTRUCTION.—Nothing in this Act 
or the amendments made by this Act shall be construed 
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to prohibit the Postal Service from paying any amount of 
surplus contributions to the Civil Service Retirement and 
Disability Fund and the Federal Employees’ Retirement 
System into— 
(1) the Postal Service Retiree Health Benefits 
Fund established under section 8909a of title 5, 
United States Code; and 
(2) the Postal Service Fund established under 
section 2003 of title 39, United States Code. 
TITLE II—RESTRICTIONS ON 
POSTAL FACILITY CLOSURES 
SEC. 201. MODIFIED PROCEDURES. 
(a) IN GENERAL.—Section 404(d) of title 39, United 
States Code, is amended by striking ‘‘(d)(1)’’ and all that 
follows through paragraph (4) and inserting the following: 
‘‘(d)(1) Before making a determination under sub-
section (a)(3) to close or consolidate a postal facility, the 
Postal Service shall— 
‘‘(A) conduct an investigation to assess the 
need for the proposed closure or consolidation; and 
‘‘(B) ensure that each person served by the 
postal facility has an opportunity to present views by 
providing appropriate notice— 
‘‘(i) to each person by mail; and 
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‘‘(ii) by publication in a newspaper of gen-
eral circulation in the area in which each person 
resides. 
‘‘(2) In conducting an investigation under paragraph 
(1)(A) and determining whether to close or consolidate a 
postal facility under subsection (a)(3), the Postal Serv-
ice— 
‘‘(A) shall consider— 
‘‘(i) the effect the closing or consolidation 
would have on the community served by the 
postal facility; 
‘‘(ii) the effect the closing or consolidation 
would have on employees of the Postal Service 
employed at the postal facility; and 
‘‘(iii) whether the closing or consolidation 
would be consistent with the policy of the Gov-
ernment under section 101(b), that the Postal 
Service shall provide a maximum degree of ef-
fective and regular postal services to rural 
areas, communities, and small towns where 
postal facilities are not self-sustaining; and 
‘‘(B) may not consider compliance with any 
provision of the Occupational Safety and Health Act 
of 1970 (29 U.S.C. 651 et seq.). 
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‘‘(3)(A) Upon completion of an investigation under 
paragraph (1), the Postal Service shall make a decision, 
in writing, whether to proceed with the proposal to close 
or consolidate a postal facility, which shall include the 
findings of the Postal Service with respect to each factor 
specified in paragraph (2)(A). 
‘‘(B) Not later than 90 days before the Postal Service 
makes a final determination under this subsection, the 
Postal Service shall— 
‘‘(i) post notice of the decision and findings 
under subparagraph (A) in a prominent place in 
each postal facility that would be affected by the 
closing or consolidation; and 
‘‘(ii) send notice of each posting under clause 
(i) by mail to each person served by the postal facil-
ity in which the notice is posted. 
‘‘(C) Notice under subparagraph (B) shall include— 
‘‘(i) a statement as follows: ‘This is notice of a 
proposal to lllll this postal facility. A final 
determination will not be made before the end of the 
90-day period beginning on the date on which this 
notice is first posted.’, with the blank space being 
filled in with ‘close’ or ‘consolidate’ (whichever is ap-
propriate), and with instructions for how any inter-
ested person may submit comments; 
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‘‘(ii) a brief summary of the findings of the 
Postal Service with respect to the factors specified in 
paragraph (2)(A); and 
‘‘(iii) the amount of cost savings the Postal 
Service estimates the Postal Service will realize from 
the closing or consolidation, in the first year fol-
lowing the date of the closing or consolidation, to-
gether with an explanation of the assumptions and 
methodologies used in making the estimate. 
‘‘(4) The Postal Service shall make a final determina-
tion to close or consolidate a postal facility in writing after 
taking into consideration any comments received during 
the 90-day period described under paragraph (3). The 
Postal Service shall take no action to close or consolidate 
a postal facility before the date that is 60 days after the 
date on which the Postal Service— 
‘‘(A) posts a copy of the final determination in 
a prominent location in each affected postal facility; 
and 
‘‘(B) sends to each person served by the postal 
facility— 
‘‘(i) a notice of the determination; and 
‘‘(ii) notice of any appeal rights available 
with respect to the determination.’’. 
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(b) DE NOVO REVIEW.—Section 404(d)(5) of title 
39, United States Code, is amended— 
(1) by striking ‘‘post office’’ and inserting 
‘‘postal facility’’; and 
(2) by striking ‘‘The Commission shall set 
aside’’ and all that follows through ‘‘final disposition 
of the appeal.’’ and inserting the following: ‘‘The 
Commission shall review de novo the determination 
of the Postal Service. In conducting a review de 
novo, the Commission shall consider the factors de-
scribed in paragraph (2)(A). If the Commission 
finds fault with a determination of the Postal Serv-
ice, the Commission shall suspend the effectiveness 
of the determination of the Postal Service.’’. 
(c) EXCEPTION; CALCULATION
OF ACTUAL COST 
SAVINGS.—Section 404(d) of title 39, United States Code, 
is amended by adding at the end the following: 
‘‘(7)(A) Paragraphs (1) through (6) shall not apply 
in the case of a closing or consolidation which occurs by 
reason of an emergency suspension, as described in section 
241.3 of title 39, Code of Federal Regulations, or any suc-
cessor thereto. 
‘‘(B) For purposes of this paragraph, the term ‘emer-
gency suspension’ does not, in the case of a leased facility, 
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include the termination or cancellation of the lease by a 
party other than the Postal Service. 
‘‘(8)(A) Not later than 2 years after the date of the 
closing or consolidation of any postal facility occurring 
after the date of enactment of this paragraph, the Inspec-
tor General shall determine the amount of the cost savings 
realized by the Postal Service from the closing or consoli-
dation for the first year following the closing or consolida-
tion. 
‘‘(B) The Inspector General shall submit to the Post-
master General and to Congress— 
‘‘(i) a report for each postal facility for which 
the Inspector made a determination of cost savings 
under subparagraph (A) during the preceding year 
that includes— 
‘‘(I) the amount of the cost savings deter-
mined to be realized with respect to each clos-
ing or consolidation of a postal facility, together 
with an explanation of the assumptions and 
methodologies used in making the determina-
tion; 
‘‘(II) a comparison of— 
‘‘(aa) the cost savings determined by 
the Inspector General; and 
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‘‘(bb) the estimates provided by the 
Postal Service under paragraph (3)(C)(iii); 
and 
‘‘(III) an explanation of the reasons for 
any differences between the determination of 
the Inspector General and the estimates of the 
Postal Service, together with recommendations 
for any legislation or administrative action that 
the Inspector General considers appropriate to 
provide for more accurate estimates; and 
‘‘(ii) an annual report with respect to all the 
postal facilities for which the Inspector made a de-
termination of cost savings under subparagraph (A) 
that includes the information required under clause 
(i).’’. 
SEC. 202. DEFINITIONS. 
Section 404(d) of title 39, United States Code, as 
amended by section 201(c), is further amended by adding 
at the end the following: 
‘‘(9) In this subsection— 
‘‘(A) the term ‘postal facility’ includes an office, 
branch, station, or other facility which— 
‘‘(i) is operated by the Postal Service; and 
‘‘(ii) provides services to persons described 
in subparagraph (B); and 
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‘‘(B) any reference to the persons served by a 
postal facility shall include a postal customer receiv-
ing mail delivery service from the postal facility, a 
resident of a ZIP code served by the postal facility, 
a postal customer having a post office box at the 
postal facility, and any relevant local government of-
ficial as defined by the Postal Service by rule.’’. 
TITLE III—INCENTIVES FOR 
INNOVATION 
SEC. 301. AUTHORITY TO OFFER NONPOSTAL SERVICES 
AND PRODUCTS. 
(a) SPECIFIC POWER.—Section 404(a) of title 39, 
United States Code, is amended— 
(1) in paragraph (7), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (8), by striking the period and 
inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(9) to provide nonpostal services and products 
in accordance with subsection (e).’’. 
(b) NONPOSTAL SERVICES AND PRODUCTS.—Section 
404(e) is amended to read as follows: 
‘‘(e)(1) The Postal Service may provide any nonpostal 
service or product in a manner consistent with the public 
interest. 
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‘‘(2) Not later than 90 days before providing a non-
postal service or product that the Postal Service did not 
provide before the date of enactment of this subsection, 
the Postal Service shall request an advisory opinion from 
the Postal Regulatory Commission that evaluates the ex-
tent to which the provision of that nonpostal service or 
product— 
‘‘(A) would use the processing, transportation, 
delivery, retail network, technology, or other re-
sources of the Postal Service; and 
‘‘(B) would be consistent with the public inter-
est. 
‘‘(3) Not later than 45 days after the date on which 
the Postal Regulatory Commission receives a request 
under paragraph (2), the Postal Regulatory Commission 
shall— 
‘‘(A) issue an advisory opinion to the Postal 
Service concerning the request; and 
‘‘(B) transmit a copy of the advisory opinion, 
together with the original request, to— 
‘‘(i) the Committee on Oversight and Gov-
ernment Reform of the House of Representa-
tives; and 
‘‘(ii) the Committee on Homeland Security 
and Governmental Affairs of the Senate. 
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‘‘(4) In this title, the term ‘nonpostal service or prod-
uct’ means any service or product other than a postal serv-
ice, including— 
‘‘(A) check-cashing services; 
‘‘(B) technology and media services; 
‘‘(C) warehousing and logistics; 
‘‘(D) facility leasing; 
‘‘(E) public Internet access services; 
‘‘(F) driver licensing; 
‘‘(G) vehicle registration; 
‘‘(H) hunting and fishing licensing; 
‘‘(I) notary services; and 
‘‘(J) voter registration. 
‘‘(5) The Postal Service may enter into a contract 
with a State or local agency to provide a nonpostal service 
or product authorized under this subsection.’’. 
SEC. 302. WINE AND BEER SHIPPING. 
(a) MAILABILITY.— 
(1) NONMAILABLE ARTICLES.—Section 1716(f) 
of title 18, United States Code, is amended by strik-
ing ‘‘mails’’ and inserting ‘‘mails, except to the ex-
tent that the mailing is allowable under section 
3001(p) of title 39’’. 
(2) INTOXICANTS.—Section 1154(a) of title 18, 
United States Code, is amended, by inserting ‘‘or, 
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with respect to the mailing of wine or malt bev-
erages, to the extent allowed under section 3001(p) 
of title 39’’ after ‘‘mechanical purposes’’. 
(b) REGULATIONS.—Section 3001 of title 39, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(p)(1) Wine or malt beverages shall be considered 
mailable if mailed— 
‘‘(A) by a licensed winery or brewery, in accord-
ance with applicable regulations under paragraph 
(2); and 
‘‘(B) in accordance with the law of the State, 
territory, or district of the United States where the 
addressee or duly authorized agent takes delivery. 
‘‘(2) The Postal Service shall prescribe such regula-
tions as may be necessary to carry out this subsection, 
including regulations providing that— 
‘‘(A) the mailing shall be by a means estab-
lished by the Postal Service to ensure direct delivery 
to the addressee or a duly authorized agent at a 
postal facility; 
‘‘(B) the addressee (and any duly authorized 
agent) shall be an individual at least 21 years of 
age, and shall present a valid, government-issued 
photo identification at the time of delivery; 
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‘‘(C) the wine or malt beverages may not be for 
resale or other commercial purpose; and 
‘‘(D) the winery or brewery involved shall— 
‘‘(i) certify in writing to the satisfaction of 
the Postal Service, through a registration proc-
ess administered by the Postal Service, that the 
mailing is not in violation of any provision of 
this subsection or regulation prescribed under 
this subsection; and 
‘‘(ii) provide any other information or af-
firmation that the Postal Service may require, 
including with respect to the prepayment of 
State alcohol beverage taxes. 
‘‘(3) For purposes of this subsection— 
‘‘(A) a winery shall be considered to be licensed 
if that winery holds an appropriate basic permit 
issued— 
‘‘(i) under the Federal Alcohol Administra-
tion Act (27 U.S.C. 201 et seq.); and 
‘‘(ii) under the law of the State in which 
the winery is located; and 
‘‘(B) a brewery shall be considered to be li-
censed if that brewery— 
‘‘(i) possesses a notice of registration and 
bond approved by the Alcohol and Tobacco Tax 
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and Trade Bureau of the Department of the 
Treasury; and 
‘‘(ii) is licensed to manufacture and sell 
beer in the State in which the brewery is lo-
cated.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the earlier of— 
(1) the date on which the Postal Service issues 
regulations under section 3001(p) of title 39, United 
States Code, as amended by this section; or 
(2) 120 days after the date of enactment of this 
Act. 
SEC. 303. INNOVATION AND ACCOUNTABILITY. 
(a) IN GENERAL.—Chapter 2 of title 39, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 209. Innovation and accountability 
‘‘(a) CHIEF INNOVATION OFFICER.—There shall be 
in the Postal Service a Chief Innovation Officer appointed 
by the Postmaster General who shall have proven expertise 
and a record of success in— 
‘‘(1) the postal and shipping industry; 
‘‘(2) innovative product research and develop-
ment; 
‘‘(3) marketing brand strategy; 
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‘‘(4) emerging communications technology; or 
‘‘(5) business process management. 
‘‘(b) DUTIES.—The Chief Innovation Officer shall— 
‘‘(1) lead the development of innovative non-
postal products and services that maximize the rev-
enue of the Postal Service; 
‘‘(2) develop innovative postal products and 
services, particularly products and services that use 
emerging information technologies, to maximize the 
revenue of the Postal Service; 
‘‘(3) supervise the implementation of products 
and services described in paragraphs (1) and (2); 
and 
‘‘(4) monitor the performance of products and 
services described in paragraphs (1) and (2) and 
modify the products and services as needed to ad-
dress changing market trends. 
‘‘(c) CONSIDERATIONS.—The Chief Innovation Office 
shall take into consideration comments or advisory opin-
ions, if applicable, issued by the Postal Regulatory Com-
mittee before the initial sale of innovative postal or non-
postal products and services. 
‘‘(d) DESIGNATION.— 
‘‘(1) DEADLINE.—As soon as practicable after 
the date of enactment of this section, and not later 
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than 90 days after the date of enactment of this sec-
tion, the Postmaster General shall appoint a Chief 
Innovation Officer. 
‘‘(2) CONDITION.—The Chief Innovation Offi-
cer may not, while serving as Chief Innovation Offi-
cer, hold any other office or position in the Postal 
Service. 
‘‘(3) RULE
OF
CONSTRUCTION.—Nothing in 
this section shall be construed to prohibit an indi-
vidual who holds another office or position in the 
Postal Service at the time the individual is appointed 
Chief Innovation Officer from serving as the Chief 
Innovation Officer under this section. 
‘‘(e) ADVISORY COMMISSION.— 
‘‘(1) ESTABLISHMENT.—There is established 
the Postal Innovation Advisory Commission (herein-
after the ‘Commission’). 
‘‘(2) MEMBERSHIP.— 
‘‘(A) IN GENERAL.—The Commission shall 
be composed of— 
‘‘(i) the Chief Innovation Officer es-
tablished under subsection (a), who shall 
serve as Chairperson of the Commission; 
and 
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‘‘(ii) 5 other members as the Postal 
Regulatory Commission shall appoint, of 
whom— 
‘‘(I) 1 member shall have exper-
tise in labor; 
‘‘(II) 1 member shall have exper-
tise in small business issues; 
‘‘(III) 1 member shall have ex-
pertise in consumer protection; 
‘‘(IV) 1 member shall have exper-
tise in small periodicals and news-
papers; and 
‘‘(V) 1 member shall have exper-
tise in the postal industry. 
‘‘(B) PERIOD
OF
APPOINTMENT.—Mem-
bers shall be appointed for 5-year terms. 
‘‘(C) VACANCIES.—Any vacancy in the 
Commission shall not affect the powers of the 
Commission, but shall be filled in the same 
manner as the original appointment. 
‘‘(D) MEETINGS.—The Commission shall 
meet at the call of the Chairperson. 
‘‘(E) QUORUM.—A majority of the mem-
bers of the Commission shall constitute a 
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quorum, but a lesser number of members may 
hold hearings. 
‘‘(3) DUTIES OF THE COMMISSION.— 
‘‘(A) 
STUDY.—The 
Commission 
shall 
study— 
‘‘(i) additional postal and nonpostal 
services that the Postal Service may offer 
to raise revenue; and 
‘‘(ii) services that postal services in 
foreign countries have offered to respond 
to the increasing demand for high-tech 
services, including— 
‘‘(I) banking and insurance serv-
ices; 
‘‘(II) communication services; 
‘‘(III) physical delivery of e-mail 
correspondence to individuals who do 
not have Internet access; 
‘‘(IV) scanning physical mail and 
delivering that mail through e-mail; 
and 
‘‘(V) communication through se-
cure servers. 
‘‘(B) RECOMMENDATIONS.—The Commis-
sion shall generate recommendations for addi-
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tional services that the Postal Service should 
provide based on the study conducted under 
subparagraph (A). 
‘‘(C) REPORT.—Not later than 1 year 
after the date of enactment of this section, and 
each year thereafter, the Commission shall sub-
mit to the Postmaster General a report that 
contains each recommendation described under 
subparagraph (B) that the Commission ap-
proves by a majority vote. 
‘‘(4) POWERS OF THE COMMISSION.— 
‘‘(A) HEARINGS.—The Commission may 
hold such hearings, take such testimony, and 
receive such evidence as is necessary to carry 
out this subsection. 
‘‘(B) INFORMATION FROM FEDERAL AGEN-
CIES.—The Commission may secure directly 
from any Federal department or agency such 
information as the Commission considers nec-
essary to carry out this subsection. Upon re-
quest of the Chairperson of the Commission, 
the head of such department or agency shall 
furnish such information to the Commission. 
‘‘(C) POSTAL SERVICES.—The Commission 
may use the United States mails in the same 
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manner and under the same conditions as other 
departments and agencies of the Federal Gov-
ernment. 
‘‘(D) GIFTS.—The Commission may ac-
cept, use, and dispose of gifts or donations of 
services or property. 
‘‘(5) COMMISSION PERSONNEL MATTERS.— 
‘‘(A) COMPENSATION OF MEMBERS.—Each 
member of the Commission who is not an offi-
cer or employee of the Federal Government (in-
cluding the Postal Service) shall be com-
pensated at a rate equal to the daily equivalent 
of the annual rate of basic pay prescribed for 
level IV of the Executive Schedule under section 
5315 of title 5 for each day (including travel 
time) during which such member is engaged in 
the performance of the duties of the Commis-
sion. All members of the Commission who are 
officers or employees of the United States, in-
cluding the Postal Service, shall serve without 
compensation in addition to that received for 
their services as officers or employees of the 
United States. 
‘‘(B) TRAVEL
EXPENSES.—The members 
of the Commission shall be allowed travel ex-
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penses, including per diem in lieu of subsist-
ence, at rates authorized for employees of agen-
cies under subchapter I of chapter 57 of title 5 
while away from their homes or regular places 
of business in the performance of services for 
the Commission. 
‘‘(C) STAFF.— 
‘‘(i) IN GENERAL.—The Chairperson 
of the Commission may, without regard to 
the civil service laws and regulations, ap-
point and terminate an executive director 
and such other additional personnel as 
may be necessary to enable the Commis-
sion to perform its duties. The employment 
of an executive director shall be subject to 
confirmation by the Commission. 
‘‘(ii) 
COMPENSATION.—The 
Chair-
person of the Commission may fix the com-
pensation of the executive director and 
other personnel without regard to chapter 
51 and subchapter III of chapter 53 of 
title 5 relating to classification of positions 
and General Schedule pay rates, except 
that the rate of pay for the executive direc-
tor and other personnel may not exceed the 
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rate payable for level V of the Executive 
Schedule under section 5316 of title 5. 
‘‘(D) DETAIL OF GOVERNMENT EMPLOY-
EES.—Any Federal Government employee, in-
cluding an employee of the Postal Service, may 
be detailed to the Commission without reim-
bursement, and such detail shall be without 
interruption or loss of civil service status or 
privilege. 
‘‘(E) PROCUREMENT OF TEMPORARY AND 
INTERMITTENT SERVICES.—The Chairperson of 
the Commission may procure temporary and 
intermittent services under section 3109(b) of 
title 5 at rates for individuals that do not ex-
ceed the daily equivalent of the annual rate of 
basic pay prescribed for level V of the Executive 
Schedule under section 5316 of title 5. 
‘‘(6) PERMANENT
ADVISORY
COMMISSION.— 
Section 14 of the Federal Advisory Committee Act 
(5 U.S.C. App.) shall not apply to the Commission. 
‘‘(7) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(A) IN GENERAL.—There are authorized 
to be appropriated such sums as may be nec-
essary to the Commission to carry out this Act. 
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‘‘(B) AVAILABILITY.—Any sums appro-
priated under the authorization contained in 
this section shall remain available, without fis-
cal year limitation, until expended. 
‘‘(f) INNOVATION STRATEGY.— 
‘‘(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this section, the Postmaster 
General shall submit, at the same time the President 
submits the annual budget request under section 
1105 of title 31 for that year, and together with the 
report on performance under subsection (g), a com-
prehensive strategy for maximizing the revenue of 
the Postal Service through innovative postal and 
nonpostal products and services to— 
‘‘(A) the Committee on Homeland Security 
and Governmental Affairs of the Senate; 
‘‘(B) the Committee on Oversight and Gov-
ernment Reform of the House of Representa-
tives; and 
‘‘(C) the Postal Regulatory Commission. 
‘‘(2) MATTERS TO BE ADDRESSED.—At a min-
imum, the strategy required by this subsection shall 
address— 
‘‘(A) the specific innovative postal and 
nonpostal products and services to be developed 
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‘‘(B) the Committee on Oversight and Gov-
ernment Reform of the House of Representa-
tives; and 
‘‘(C) the Postal Regulatory Commission. 
‘‘(2) MATTERS TO BE ADDRESSED.—At a min-
imum, a report under this subsection shall include— 
‘‘(A) the revenue generated by each prod-
uct and service developed through the strategy 
under this section and the costs of developing 
and offering each product or service for the pre-
ceding year; 
‘‘(B) the total sales volume and revenue 
generated by each product and service on a 
monthly basis for the preceding year; 
‘‘(C) trends in each market in which a 
product or service is intended to satisfy a de-
mand; 
‘‘(D) products and services identified in 
the strategy under this section that are to be 
discontinued, the date on which the discontinu-
ance will occur, and the reasons for the dis-
continuance; 
‘‘(E) alterations in products and services 
identified in the strategy under this section that 
will be made to address changing market condi-
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tions, and an explanation of how the alterations 
will ensure the success of the products and 
services; and 
‘‘(F) the performance of the strategy 
under this section according to the metrics 
identified under subsection (e)(2)(G). 
‘‘(h) STUDY AND REPORT BY COMPTROLLER GEN-
ERAL.— 
‘‘(1) STUDY.— 
‘‘(A) IN GENERAL.—The Comptroller Gen-
eral of the United States shall conduct a study 
on the implementation of the strategy under 
this section that assesses the effectiveness of 
the Postal Service in identifying, developing, 
and selling innovative postal and nonpostal 
products and services. 
‘‘(B) CONTENTS.—The study under sub-
paragraph (A) shall include— 
‘‘(i) an audit of the costs of devel-
oping each innovative postal and nonpostal 
product and service developed or offered by 
the Postal Service; 
‘‘(ii) the sales volume of each product 
and service; 
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‘‘(iii) the revenues and profits gen-
erated by each product and service; and 
‘‘(iv) the likelihood of continued suc-
cess of each product and service. 
‘‘(2) REPORT.—Not later than 3 years after the 
date of enactment of this section, the Comptroller 
General shall submit a report concerning the study 
under paragraph (1) to— 
‘‘(A) the Committee on Homeland Security 
and Governmental Affairs of the Senate; and 
‘‘(B) the Committee on Oversight and Gov-
ernment Reform of the House of Representa-
tives.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 2 of title 39, United States Code, is amended 
by adding at the end the following: 
‘‘209. Innovation and accountability.’’. 
TITLE IV—MAINTAINING LEVELS 
OF SERVICE 
SEC. 401. SIX-DAY DELIVERY. 
Section 404a(a) of title 39, United States Code, is 
amended— 
(1) in paragraph (2), by striking ‘‘or’’ at the 
end; 
(2) in paragraph (3), by striking the period and 
inserting ‘‘; or’’; and 
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(3) by adding at the end the following: 
‘‘(4) reduce the frequency of the delivery of 
mail to fewer than 6 days each week.’’. 
SEC. 402. SERVICE STANDARDS FOR MARKET-DOMINANT 
PRODUCTS. 
Section 3691 of title 39, United States Code, is 
amended by adding at the end the following: 
‘‘(e) 
RESTRICTION
ON
AUTHORITY.—Notwith-
standing subsections (a), (b), and (c), the Postal Service 
may not increase the expected delivery time for market- 
dominant products required under part 121 of title 39, 
Code of Federal Regulations, as in effect on March 2, 
2010.’’. 
TITLE V—ELIMINATION OF AN-
NUAL 
LIMITATION 
ON 
IN-
CREASES IN RATES FOR MAR-
KET-DOMINANT PRODUCTS 
SEC. 501. ELIMINATION OF ANNUAL LIMITATION. 
(a) IN GENERAL.—Subparagraph (A) of paragraph 
(1) of section 3622(d) of title 39, United States Code, is 
repealed. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
Such section 3622(d), as amended by subsection (a), is 
further amended— 
(1) in paragraph (1)— 
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(A) by redesignating subparagraphs (B) 
and (C) as subparagraphs (A) and (B), respec-
tively; and 
(B) in subparagraph (B) (as so redesig-
nated by subparagraph (A))— 
(i) by inserting ‘‘and’’ at the end of 
clause (i); and 
(ii) by striking clauses (iii) and (iv); 
(C) by striking subparagraph (D) and re-
designating subparagraph (E) as subparagraph 
(D); and 
(D) in subparagraph (D) (as so redesig-
nated by subparagraph (C)), by striking ‘‘not-
withstanding’’ and all that follows through 
‘‘paragraph (2)(C),’’; and 
(2) by striking paragraph (2) and redesignating 
paragraph (3) as paragraph (2). 
Æ 
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