product or service if the product or service were of-
fered by a private company.’’. 
SEC. 207. MARKET-DOMINANT RATES. 
(a) ESTABLISHMENT OF RATE BASELINE.—Notwith-
standing any order of the Postal Regulatory Commission 
to the contrary— 
(1) no earlier than the first Sunday after the 
date of enactment of this Act, on a date selected by 
the Postmaster General in the exercise of the Post-
master General’s unreviewable discretion, the Postal 
Service shall reinstate, as nearly as is practicable 
and equal for each product, category, and rate cell, 
50 percent of the rate surcharge implemented under 
section 3622(d)(1)(F) (as redesignated by this Act) 
that was in effect on April 9, 2016; and 
(2) the partially reinstated surcharge reinstated 
pursuant to paragraph (1) shall be considered a part 
of the rate base for purposes of determining the per-
centage changes in rates when the Postal Service 
files a notice of rate adjustment. 
(b) SUBSEQUENT RATE INCREASES.—The reinstate-
ment described under subsection (a)(1) may not affect the 
calculation of the Postal Service’s maximum rate adjust-
ment authority under subpart C of part 3010 of title 39, 
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Code of Federal Regulations, for purposes of any rate in-
crease that occurs following such reinstatement. 
(c) POSTAL REGULATORY COMMISSION AUTHORITY 
NOT AFFECTED.—Nothing in this section shall be con-
strued as affecting the authority of the Postal Regulatory 
Commission to, by regulation, make such modification or 
adopt such alternative system for regulating rates and 
classes for market-dominant products as provided under 
section 3622 of title 39, United States Code. 
SEC. 208. COMPLETION OF INITIAL RATE REGULATION RE-
VIEW. 
The Postal Regulatory Commission shall complete 
the initial review of the system for regulating rates and 
classes for market-dominant products established under 
section 3622 of title 39, United States Code, such that 
any final rule making a modification or adopting an alter-
native system for regulating rates and classes for market- 
dominant products as necessary to achieve the objectives 
in subsection (b) of such section is issued not later than 
January 1, 2019. 
SEC. 209. REVIEW OF POSTAL SERVICE COST ATTRIBUTION 
GUIDELINES. 
Not later than April 1, 2019, the Postal Regulatory 
Commission shall initiate a review of the regulations 
issued pursuant to sections 3633(a) and 3652(a)(1) of 
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title 39, United States Code, to determine whether revi-
sions are appropriate to ensure that all direct and indirect 
costs attributable to competitive and market-dominant 
products are properly attributed to those products, includ-
ing by considering the underlying methodologies in deter-
mining cost attribution and considering options to revise 
such methodologies. If the Commission determines, after 
notice and opportunity for public comment, that revisions 
are appropriate, the Commission shall make modifications 
or adopt alternative methodologies as necessary. 
SEC. 210. AVIATION SECURITY FOR PARCELS. 
Not later than 18 months after the date of enactment 
of this Act, the Inspector General of the Postal Commu-
nity shall transmit to the Committee on Oversight and 
Government Reform of the House of Representatives and 
the Committee on Homeland Security and Governmental 
Affairs of the Senate the results of a review of the security 
measures in place for parcels carried on air carriers to 
domestic and international destinations for which audit 
trails are generated. The review required under this sub-
section shall assess, at a minimum— 
(1) the effectiveness of the audit trail created 
by postage evidencing systems that have been vali-
dated under the Federal Information Processing 
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Standards in accurately and consistently identifying 
the senders of parcels carried on air carriers; 
(2) the effectiveness of the Postal Service’s in- 
person identity verification procedures in accurately 
and consistently identifying the senders of parcels 
carried on air carriers; 
(3) the effectiveness of the Postal Service in ac-
curately and consistently identifying the senders of 
parcels carried on air carriers where the postage— 
(A) has not been generated by a postage 
evidencing system that has been validated 
under the Federal Information Processing 
Standards; and 
(B) has not been entered with in-person 
identity verification; and 
(4) the effectiveness of the audit trail generated 
by customs declarations in accurately and consist-
ently identifying the senders of parcels carried on air 
carriers to international destinations. 
SEC. 211. ZIP CODES. 
Not later than 270 days after the date of enactment 
of this Act, the Postal Service shall designate a single, 
unique ZIP code for, as nearly as practicable, each of the 
following communities: 
(1) Miami Lakes, Florida. 
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(2) Storey County, Nevada. 
(3) Flanders, Northampton, and Riverside in 
the Town of Southampton, New York. 
(4) Ocoee, Florida. 
(5) Glendale, New York. 
TITLE III—POSTAL SERVICE 
PERSONNEL 
SEC. 301. POSTAL SERVICE CHIEF INNOVATION OFFICER. 
(a) IN GENERAL.—Chapter 2 of title 39, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 209. Chief Innovation Officer 
‘‘(a) IN GENERAL.—There is established within the 
Postal Service the position of Chief Innovation Officer, ap-
pointed by the Postmaster General, who shall manage the 
Postal Service’s development and implementation of inno-
vative postal and nonpostal (as expressly authorized by 
chapter 37) products and services. 
‘‘(b) DUTIES.—The primary duties of the Chief Inno-
vation Officer are as follows: 
‘‘(1) Leading the development of innovative 
nonpostal products and services that will maximize 
revenue to the Postal Service. 
‘‘(2) Developing innovative postal products and 
services, specifically those that utilize emerging in-
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formation technologies, to maximize revenue to the 
Postal Service. 
‘‘(3) Implementing the innovation strategy de-
scribed under subsection (d). 
‘‘(4) Monitoring the performance of innovative 
products and services and revising them as needed 
to meet changing market trends. 
‘‘(5) Taking into consideration comments, if ap-
plicable, issued by the Postal Regulatory Commis-
sion prior to the initial sale of innovative postal or 
nonpostal products and services. 
‘‘(c) APPOINTMENT.— 
‘‘(1) DEADLINE.—As soon as practicable after 
the date of enactment of the Postal Service Reform 
Act of 2018, but no later than 6 months after such 
date, the Postmaster General shall appoint a Chief 
Innovation Officer. 
‘‘(2) 
REQUIREMENTS.—Any 
individual 
ap-
pointed to serve as the Chief Innovation Officer shall 
have proven expertise and a record of success in at 
least 1 of the following: 
‘‘(A) Postal and shipping industry. 
‘‘(B) Innovation product research and de-
velopment. 
‘‘(C) Marketing brand strategy. 
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‘‘(D) 
Emerging 
communications 
tech-
nology. 
‘‘(E) Business process management. 
‘‘(3) CURRENT OFFICER OR EMPLOYEE ELIGI-
BLE.—An officer or employee of the Postal Service 
may be appointed to the position of Chief Innovation 
Officer under this chapter. Upon appointment to 
such position, such officer or employee may not con-
currently hold any other position in the Postal Serv-
ice. 
‘‘(d) INNOVATION STRATEGY.— 
‘‘(1) IN GENERAL.—Not later than 12 months 
after the date on which the Chief Innovation Officer 
is appointed under subsection (c)(1), the Postmaster 
General shall submit to the Committee on Oversight 
and Government Reform of the House of Represent-
atives, the Committee on Homeland Security and 
Governmental Affairs of the Senate, and the Postal 
Regulatory Commission a comprehensive strategy for 
maximizing revenues through innovative postal and 
nonpostal products and services. 
‘‘(2) MATTERS TO BE ADDRESSED.—The strat-
egy submitted under paragraph (1) shall address— 
‘‘(A) the specific innovative postal and 
nonpostal products and services to be developed 
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and offered by the Postal Service, including the 
nature of the market to be filled by each prod-
uct and service and the likely date by which 
each product and service will be introduced; 
‘‘(B) the cost of developing and offering 
each product or service; 
‘‘(C) the anticipated sales volume of each 
product and service; 
‘‘(D) the anticipated revenues and profits 
expected to be generated by each product and 
service; 
‘‘(E) the likelihood of success of each prod-
uct and service as well as the risks associated 
with the development and sale of each product 
and service; 
‘‘(F) the trends anticipated in market con-
ditions that may affect the success of each 
product and service over the 5-year period be-
ginning on the date such strategy or update is 
submitted; 
‘‘(G) the metrics that will be utilized to as-
sess the effectiveness of the innovation strategy; 
and 
‘‘(H) the specific methods by which 
mailpiece design analysis may be improved to 
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speed the approval process and promote the in-
creased use of innovative mailpiece design. 
‘‘(3) STRATEGY UPDATES.—For each of the 4 
years following the submission of the innovation 
strategy under paragraph (1), the Postal Service 
shall submit an annual update to the innovation 
strategy to the Committee on Oversight and Govern-
ment Reform of the House of Representatives, the 
Committee on Homeland Security and Governmental 
Affairs of the Senate, and the Postal Regulatory 
Commission. 
‘‘(e) REPORT.— 
‘‘(1) IN GENERAL.—On the date of submission 
of the President’s annual budget under section 
1105(a) of title 31, the Postmaster General shall 
submit to the Committee on Oversight and Govern-
ment Reform of the House of Representatives, the 
Committee on Homeland Security and Governmental 
Affairs of the Senate, and the Postal Regulatory 
Commission a report that details the Postal Serv-
ice’s progress in implementing the innovation strat-
egy described under subsection (d). 
‘‘(2) MATTERS TO BE ADDRESSED.—The report 
required under paragraph (1) shall address— 
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‘‘(A) the revenue generated by each prod-
uct and service developed through the innova-
tion strategy and the costs of developing and 
offering each such product and service for the 
most recent fiscal year; 
‘‘(B) the total sales volume and revenue 
generated by each product and service on a 
monthly basis for the preceding year; 
‘‘(C) trends in the markets filled by each 
product and service; 
‘‘(D) products and services identified in 
the innovation strategy that are to be discon-
tinued, the date on which the discontinuance 
will occur, and the reasons for the discontinu-
ance; 
‘‘(E) alterations in products and services 
identified in the innovation strategy that will be 
made to meet changing market conditions, and 
an explanation of how these alterations will en-
sure the success of the products and services; 
and 
‘‘(F) the performance of the innovation 
strategy according to the metrics identified in 
subsection (d)(2)(G). 
‘‘(f) COMPTROLLER GENERAL STUDY.— 
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‘‘(1) IN GENERAL.—The Comptroller General 
shall conduct a study on the implementation of the 
innovation strategy described under subsection (d) 
not later than 4 years after the date of enactment 
of the Postal Service Reform Act of 2018. 
‘‘(2) CONTENTS.—The study required under 
paragraph (1) shall assess the effectiveness of the 
Postal Service in identifying, developing, and selling 
innovative postal and nonpostal products and serv-
ices. The study shall also include— 
‘‘(A) an audit of the costs of developing 
each innovative postal and nonpostal product 
and service developed or offered by the Postal 
Service during the period beginning on the date 
of enactment of the Postal Service Reform Act 
of 2018 and ending 4 years after such date; 
‘‘(B) the sales volume of each such product 
and service; 
‘‘(C) the revenues and profits generated by 
each such product and service; and 
‘‘(D) the likelihood of continued success of 
each such product and service. 
‘‘(3) SUBMISSION.—The results of the study re-
quired under this subsection shall be submitted to 
the Committee on Oversight and Government Re-
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form of the House of Representatives, the Com-
mittee on Homeland Security and Governmental Af-
fairs of the Senate, and the Postal Regulatory Com-
mission.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 2 of title 39, United States 
Code, is amended by adding at the end the following: 
‘‘209. Chief Innovation Officer.’’. 
SEC. 302. INSPECTOR GENERAL OF THE POSTAL COMMU-
NITY. 
(a) PRESIDENTIALLY
APPOINTED, SENATE-CON-
FIRMED INSPECTOR GENERAL.—The Inspector General 
Act of 1978 (5 U.S.C. App.) is amended— 
(1) in section 8G— 
(A) in subsection (a)— 
(i) in paragraph (2), by striking ‘‘the 
United States International Trade Com-
mission, the Postal Regulatory Commis-
sion, and the United States Postal Serv-
ice’’ and inserting ‘‘and the United States 
International Trade Commission’’; 
(ii) in paragraph (3), by striking 
‘‘subsection (h)(1)’’ and inserting ‘‘sub-
section (g)(1)’’; and 
(iii) in paragraph (4)— 
(I) by striking subparagraph (B); 
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(II) 
by 
striking 
‘‘subsection 
(h)(1)’’ and inserting ‘‘subsection 
(g)(1)’’; and 
(III) by redesignating subpara-
graphs (C), (D), (E), (F), (G), (H), 
and (I) as (B), (C), (D), (E), (F), 
(G), and (H), respectively; 
(B) in subsection (c), by striking ‘‘Except 
as provided under subsection (f) of this section, 
the’’ and inserting ‘‘The’’; 
(C) by striking subsection (f); and 
(D) by redesignating subsections (g) and 
(h) as (f) and (g), respectively; and 
(2) in section 12— 
(A) in paragraph (1), by inserting ‘‘the 
Postmaster General of the United States; the 
Chairman of the Postal Regulatory Commis-
sion;’’ after ‘‘the President of the Export-Im-
port Bank;’’; and 
(B) in paragraph (2), by inserting ‘‘the 
United States Postal Service, the Postal Regu-
latory Commission,’’ after ‘‘the Export-Import 
Bank,’’. 
(b) INSPECTOR GENERAL OF THE POSTAL COMMU-
NITY.— 
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100 
(1) ESTABLISHMENT.—The Inspector General 
Act of 1978 (5 U.S.C. App.), as amended by sub-
section (a), is further amended by inserting after 
section 8N the following new section: 
‘‘SEC. 8O. SPECIAL PROVISIONS CONCERNING THE UNITED 
STATES POSTAL SERVICE AND POSTAL REGU-
LATORY COMMISSION. 
‘‘(a) OFFICE OF INSPECTOR GENERAL OF THE POST-
AL COMMUNITY.—The Inspector General for the United 
States Postal Service and the Postal Regulatory Commis-
sion shall be referred to as the ‘Inspector General of the 
Postal Community’. 
‘‘(b) RESPONSIBILITIES.—In carrying out the duties 
and responsibilities specified in this Act, the Inspector 
General of the Postal Community shall have equal respon-
sibility over the United States Postal Service and the Post-
al Regulatory Commission. 
‘‘(c) APPLICABLE HEAD OF THE ESTABLISHMENT.— 
For purposes of the applicability of this Act to the Inspec-
tor General of the Postal Community— 
‘‘(1) the ‘head of the establishment’ shall mean 
the Board of Governors of the United States for ac-
tivities by the Office related to the United States 
Postal Service; and 
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101 
‘‘(2) the ‘head of the establishment’ shall mean 
the Chairman of the Postal Regulatory Commission 
for activities by the Office related to the Postal Reg-
ulatory Commission. 
‘‘(d) APPLICABILITY OF ESTABLISHMENT FOR RE-
PORTS.—In carrying out the duties and responsibilities 
under section 5— 
‘‘(1) the term ‘establishment’ shall include as 
separate establishments— 
‘‘(A) the United States Postal Service; and 
‘‘(B) the Postal Regulatory Commission; 
and 
‘‘(2) the Inspector General of the Postal Com-
munity shall prepare separate semiannual reports 
for the United States Postal Service and the Postal 
Regulatory Commission. 
‘‘(e) OFFICE SPACE.—In carrying out the duties and 
responsibilities under section 6(d), the heads of the estab-
lishments for the United States Postal Service and the 
Postal Regulatory Commission shall work jointly with one 
another and in consultation with the Inspector General of 
the Postal Community to ensure adequate and appropriate 
provision to the Office of the Inspector General of the 
Postal Community under section 6(d). 
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102 
‘‘(f) BUDGET.—In carrying out the duties and re-
sponsibilities under section 6(g)— 
‘‘(1) the ‘head of the establishment’ shall mean 
the Postmaster General of the United States; and 
‘‘(2) designation of the Postmaster General of 
the United States as ‘head of the establishment’ 
under this subsection shall not be construed as 
granting any authorities to the Postmaster General 
of the United States with regard to the Postal Regu-
latory Commission. 
‘‘(g) GENERAL DUTIES AND RESPONSIBILITIES.—In 
carrying out the duties and responsibilities specified in 
this Act— 
‘‘(1) the Inspector General of the Postal Com-
munity shall have oversight responsibility for all ac-
tivities of the Postal Inspection Service, including 
any internal investigation performed by the Postal 
Inspection Service; 
‘‘(2) the Inspector General of the Postal Com-
munity shall give particular regard to the activities 
of the Postal Inspection Service with a view toward 
avoiding duplication and insuring effective coordina-
tion and cooperation; and 
‘‘(3) the Chief Postal Inspector shall promptly 
report the significant activities being carried out by 
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103 
the Postal Inspection Service to the Inspector Gen-
eral of the Postal Community. 
‘‘(h) EMPLOYING AUTHORITIES.— 
‘‘(1) IN GENERAL.—The Inspector General of 
the Postal Community is authorized to select, ap-
point, and employ such officers and employees as 
may be necessary for carrying out the functions, 
powers, and duties of the Office of Inspector General 
of the Postal Community and to obtain the tem-
porary or intermittent services of experts or consult-
ants or an organization thereof, subject to the appli-
cable laws and regulations that govern such selec-
tions, appointments, and employment, and the ob-
taining of such services, within the United States 
Postal Service. 
‘‘(2) AUTHORITY
NOT
APPLICABLE.—Para-
graphs (7) and (8) of section 6(a) do not apply to 
the Inspector General of the Postal Service Commu-
nity. 
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated, out of the Postal Serv-
ice Fund, such sums as may be necessary for the Office 
of the Inspector General of the Postal Community.’’. 
(2) CONFORMING AMENDMENTS.—Section 8J of 
the Inspector General Act of 1978 is amended by 
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104 
striking ‘‘The special provisions under section’’ 
through ‘‘of this Act’’ and inserting ‘‘The special 
provisions under section 8, 8A, 8B, 8C, 8D, 8E, 8F, 
8H, 8I, 8N, or 8O of this Act’’. 
(3) APPOINTMENT.—Not later than 180 days 
after the date of enactment of this Act, the Presi-
dent shall appoint, by and with the advice and con-
sent of the Senate, an Inspector General of the Post-
al Community. Any individual appointed under the 
previous sentence shall be deemed to be appointed 
under section 8O of the Inspector General Act of 
1978, as added by paragraph (1). 
(c) TRANSFER OF THE OFFICE OF THE INSPECTOR 
GENERAL OF THE POSTAL REGULATORY COMMISSION.— 
(1) IN GENERAL.—On the date that is the ef-
fective date of this section, the duties, responsibil-
ities, functions, personnel, assets, unexpended bal-
ances of appropriations, and obligations held by the 
Inspector General of the Postal Regulatory Commis-
sion shall be transferred to the Office of the Inspec-
tor General of the Postal Community. 
(2) EXISTING INSPECTOR GENERAL.—The In-
spector General of the Postal Regulatory Commis-
sion transferred pursuant to paragraph (1) shall 
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105 
serve under the Inspector General of the Postal 
Community. 
(d) TRANSFER OF THE OFFICE OF THE INSPECTOR 
GENERAL OF UNITED STATES POSTAL SERVICE.— 
(1) IN GENERAL.—On the date that is the ef-
fective date of this section, the duties, responsibil-
ities, functions, personnel, assets, unexpended bal-
ances of appropriations, and obligations held by the 
Inspector General of the United States Postal Serv-
ice shall be transferred to the Office of the Inspector 
General of the Postal Community. 
(2) EXISTING INSPECTOR GENERAL.—The In-
spector General of the United States Postal Service 
transferred pursuant to paragraph (1) shall serve 
under the Inspector General of the Postal Commu-
nity. 
(e) DELEGATION AND ASSIGNMENT.—Except as oth-
erwise expressly prohibited by law or otherwise provided 
in this Act, the Inspector General of the Postal Commu-
nity may delegate any of the functions transferred pursu-
ant to this section to such officers and employees of the 
Office of the Inspector General of the Postal Community 
as the Inspector General may designate, and may author-
ize successive redelegations of such functions as may be 
necessary or appropriate. No delegation of functions under 
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