IB 
Union Calendar No. 291 
112TH CONGRESS 
2D SESSION 
H. R. 2309 
[Report No. 112–363, Parts I and II] 
To restore the financial solvency of the United States Postal Service and 
to ensure the efficient and affordable nationwide delivery of mail. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 23, 2011 
Mr. ISSA (for himself and Mr. ROSS of Florida) introduced the following bill; 
which was referred to the Committee on Oversight and Government Re-
form, and in addition to the Committee on Rules, for a period to be sub-
sequently determined by the Speaker, in each case for consideration of 
such provisions as fall within the jurisdiction of the committee concerned 
JANUARY 17, 2012 
Reported from the Committee on Oversight and Government Reform with an 
amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
JANUARY 17, 2012 
Referral to the Committee on Rules extended for a period ending not later 
than March 1, 2012 
MARCH 1, 2012 
Referral to the Committee on Rules extended for a period ending not later 
than March 30, 2012 
MARCH 29, 2012 
Reported from the Committee on Rules with an amendment, committed to the 
Committee of the Whole House on the State of the Union, and ordered 
to be printed 
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[Strike out all after the enacting clause and insert the part printed in boldface roman] 
[For text of introduced bill, see copy of bill as introduced on June 23, 2011] 
A BILL 
To restore the financial solvency of the United States Postal 
Service and to ensure the efficient and affordable nation-
wide delivery of mail. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS; REF-
ERENCES. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Postal Reform Act of 2011’’. 
(b) TABLE OF CONTENTS.—The table of contents of this 
Act is as follows: 
Sec. 1. Short title; table of contents; references. 
TITLE I—POSTAL SERVICE MODERNIZATION 
Subtitle A—Commission on Postal Reorganization 
Sec. 101. Short title. 
Sec. 102. Definitions. 
Sec. 103. Commission on Postal Reorganization. 
Sec. 104. Recommendations for closures and consolidations. 
Sec. 105. Implementation of closures and consolidations. 
Sec. 106. Congressional consideration of final CPR reports. 
Sec. 107. Nonappealability of decisions. 
Sec. 108. Rules of construction. 
Sec. 109. GAO study and report. 
Subtitle B—Other Provisions 
Sec. 111. Implementation of discretionary non-mail delivery days. 
Sec. 112. Efficient and flexible universal postal service. 
Sec. 113. Enhanced reporting on Postal Service efficiency. 
Sec. 114. Applicability of procedures relating to closures and consolidations. 
TITLE II—POSTAL SERVICE FINANCIAL RESPONSIBILITY AND 
MANAGEMENT ASSISTANCE AUTHORITY 
Subtitle A—Establishment and Organization 
Sec. 201. Purposes. 
Sec. 202. Establishment of the Authority. 
Sec. 203. Membership and qualification requirements. 
Sec. 204. Organization. 
Sec. 205. Executive Director and staff. 
Sec. 206. Funding. 
Subtitle B—Powers of the Authority 
Sec. 211. Powers. 
Sec. 212. Exemption from liability for claims. 
Sec. 213. Treatment of actions arising under this title. 
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Sec. 214. Delivery point modernization. 
Subtitle C—Establishment and Enforcement of Financial Plan and Budget for 
the Postal Service 
Sec. 221. Development of financial plan and budget for the Postal Service. 
Sec. 222. Supplementary borrowing authority during a control period. 
Sec. 223. Process for submission and approval of financial plan and budget. 
Sec. 224. Responsibilities of the Authority. 
Sec. 225. Effect of finding noncompliance with financial plan and budget. 
Sec. 226. Recommendations regarding financial stability, etc. 
Sec. 227. Special rules for fiscal year in which control period commences. 
Sec. 228. Assistance in achieving financial stability, etc. 
Sec. 229. Obtaining reports. 
Sec. 230. Reports and comments. 
Subtitle D—Termination of a Control Period 
Sec. 231. Termination of control period, etc. 
Sec. 232. Congressional consideration of recommendation. 
TITLE III—POSTAL SERVICE WORKFORCE 
Subtitle A—General Provisions 
Sec. 301. Modifications relating to determination of pay comparability. 
Sec. 302. Limitation on postal contributions under FEGLI and FEHBP. 
Sec. 303. Repeal of provision relating to overall value of fringe benefits. 
Sec. 304. Applicability of reduction-in-force procedures. 
Sec. 305. Modifications relating to collective bargaining. 
Sec. 306. One-time transfer of net surplus postal retirement contributions. 
Subtitle B—Postal Service Workers’ Compensation Reform 
Sec. 311. Postal Service workers’ compensation reform. 
TITLE IV—POSTAL SERVICE REVENUE 
Sec. 401. Adequacy, efficiency, and fairness of postal rates. 
Sec. 402. Repeal of rate preferences for qualified political committees. 
Sec. 403. Rate preferences for nonprofit advertising. 
Sec. 404. Streamlined review of qualifying service agreements for competitive 
products. 
Sec. 405. Submission of service agreements for streamlined review. 
Sec. 406. Transparency and accountability for service agreements. 
Sec. 407. Nonpostal services. 
Sec. 408. Reimbursement of Alaska bypass mail costs. 
Sec. 409. Appropriations modernization. 
Sec. 410. Retiree health care benefit payment deferral. 
TITLE V—POSTAL CONTRACTING REFORM 
Sec. 501. Contracting provisions. 
Sec. 502. Technical amendment to definition. 
(c) REFERENCES.—Except as otherwise expressly pro-
vided, whenever in this Act an amendment or repeal is ex-
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pressed in terms of an amendment to, or repeal of, a section 
or other provision, the reference shall be considered to be 
made to a section or other provision of title 39, United 
States Code. 
TITLE I—POSTAL SERVICE 
MODERNIZATION 
Subtitle A—Commission on Postal 
Reorganization 
SEC. 101. SHORT TITLE. 
This subtitle may be cited as the ‘‘Commission on Post-
al Reorganization Act’’ or the ‘‘CPR Act’’. 
SEC. 102. DEFINITIONS. 
For purposes of this title— 
(1) the term ‘‘Postal Service’’ means the United 
States Postal Service; 
(2) the term ‘‘postal retail facility’’ means a post 
office, post office branch, post office classified station, 
or other facility which is operated by the Postal Serv-
ice, and the primary function of which is to provide 
retail postal services; 
(3) the term ‘‘mail processing facility’’ means a 
processing and distribution center, processing and 
distribution facility, network distribution center, or 
other facility which is operated by the Postal Service, 
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and the primary function of which is to sort and 
process mail; 
(4) the term ‘‘district office’’ means the central 
office of an administrative field unit with responsi-
bility for postal operations in a designated geographic 
area (as defined under regulations, directives, or other 
guidance of the Postal Service, as in effect on June 
23, 2011); 
(5) the term ‘‘area office’’ means the central of-
fice of an administrative field unit with responsi-
bility for postal operations in a designated geographic 
area which is comprised of designated geographic 
areas as referred to in paragraph (4); 
(6) the term ‘‘baseline year’’ means the fiscal 
year last ending before the date of the enactment of 
this Act; and 
(7) the term ‘‘Member of Congress’’ has the 
meaning given such term by section 2106 of title 5, 
United States Code. 
SEC. 103. COMMISSION ON POSTAL REORGANIZATION. 
(a) ESTABLISHMENT.—There shall be established, not 
later than 90 days after the date of the enactment of this 
Act, an independent commission to be known as the ‘‘Com-
mission on Postal Reorganization’’ (hereinafter in this sec-
tion referred to as the ‘‘Commission’’). 
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(b) DUTIES.—The Commission shall carry out the du-
ties specified for it in this subtitle. 
(c) MEMBERS.— 
(1) IN GENERAL.—The Commission shall be com-
posed of 5 members who shall be appointed by the 
President, and of whom— 
(A) 1 shall be appointed from among indi-
viduals recommended by the Speaker of the 
House of Representatives; 
(B) 1 shall be appointed from among indi-
viduals recommended by the majority leader of 
the Senate; 
(C) 1 shall be appointed from among indi-
viduals recommended by the minority leader of 
the House of Representatives; 
(D) 1 shall be appointed from among indi-
viduals recommended by the minority leader of 
the Senate; and 
(E) 1 shall be appointed from among indi-
viduals recommended by the Comptroller Gen-
eral. 
(2) QUALIFICATIONS.— 
(A) IN GENERAL.—Members of the Commis-
sion shall be chosen to represent the public inter-
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est generally, and shall not be representatives of 
specific interests using the Postal Service. 
(B) INELIGIBILITY.—An individual may 
not be appointed to serve as a member of the 
Commission if such individual is a Member of 
Congress or served as an employee of the Postal 
Service or the Postal Regulatory Commission, or 
of a labor organization representing employees of 
the Postal Service or the Postal Regulatory Com-
mission, during the 3-year period ending on the 
date of such appointment. 
(3) POLITICAL AFFILIATION.—Not more than 3 
members of the Commission may be of the same polit-
ical party. 
(d) TERMS.—Each member of the Commission shall be 
appointed for the life of the Commission and may be re-
moved only for cause. 
(e) VACANCIES.—A vacancy in the Commission shall 
be filled in the same manner as the original appointment. 
(f) CHAIRMAN.—The President shall, at the time of 
making appointments under subsection (c), designate one 
of the members to serve as chairman of the Commission. 
(g) COMPENSATION AND TRAVEL EXPENSES.— 
(1) COMPENSATION.— 
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(A) IN GENERAL.—Except as provided in 
subparagraph (B), each member of the Commis-
sion shall be paid at a rate equal to the daily 
equivalent of $40,000 per year for each day (in-
cluding travel time) during which the member is 
engaged in the actual performance of duties vest-
ed in the Commission. 
(B) EXCEPTION.—Any member of the Com-
mission who is a full-time officer or employee of 
the United States may not receive additional 
pay, allowances, or benefits by reason of such 
member’s service on the Commission. 
(2) TRAVEL EXPENSES.—Each member shall re-
ceive travel expenses, including per diem in lieu of 
subsistence, in accordance with applicable provisions 
of subchapter I of chapter 57 of title 5, United States 
Code. 
(h) DIRECTOR.—The Commission shall have a Direc-
tor who shall be appointed by the Commission. The Director 
shall be paid at the rate of basic pay for level IV of the 
Executive Schedule under section 5315 of title 5, United 
States Code. An appointment under this subsection shall 
be subject to the requirements of subsection (c)(2). 
(i) ADDITIONAL PERSONNEL.—With the approval of 
the Commission, the Director may appoint and fix the pay 
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of such additional personnel as the Director considers ap-
propriate. Such additional personnel may be appointed 
without regard to the provisions of title 5, United States 
Code, governing appointments in the competitive service, 
and may be paid without regard to the provisions of chapter 
51 and subchapter III of chapter 53 of such title relating 
to classification and General Schedule pay rates, except 
that an individual so appointed may not receive pay at 
a rate of basic pay in excess of the rate of basic pay payable 
to the Director. An individual appointed under this sub-
section shall serve at the pleasure of the Director. 
(j) PROVISIONS RELATING TO DETAILS.— 
(1) IN GENERAL.—Upon request of the Director, 
the head of any Federal department or agency may 
detail any of the personnel of such department or 
agency to the Commission to assist the Commission in 
carrying out its duties under this subtitle. Notwith-
standing any other provision of law, to provide con-
tinuity in the work of the Commission, such details 
may be extended beyond 1 year at the request of the 
Director. 
(2) NUMERICAL LIMITATION.—Not more than 1⁄3 
of the personnel of the Commission may consist of the 
number of individuals on detail from the Postal Serv-
ice and the Postal Regulatory Commission combined. 
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(3) OTHER LIMITATIONS.—A person may not be 
detailed to the Commission from the Postal Service or 
the Postal Regulatory Commission if such person par-
ticipated personally and substantially on any matter, 
within the Postal Service or the Postal Regulatory 
Commission, concerning the preparation of rec-
ommendations for closures or consolidations of postal 
facilities under this subtitle. No employee of the Post-
al Service or the Postal Regulatory Commission (in-
cluding a detailee to the Postal Service or the Postal 
Regulatory Commission) may— 
(A) prepare any report concerning the effec-
tiveness, fitness, or efficiency of the performance, 
on the staff of the Commission, of any person de-
tailed from the Postal Service or the Postal Reg-
ulatory Commission to such staff; 
(B) review the preparation of such a report; 
or 
(C) approve or disapprove such a report. 
(k) OTHER AUTHORITIES.— 
(1) EXPERTS AND CONSULTANTS.—The Commis-
sion may procure by contract, to the extent funds are 
available, temporary or intermittent services under 
section 3109 of title 5, United States Code. 
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(2) LEASING, ETC.—The Commission may lease 
space and acquire personal property to the extent 
funds are available. 
(l) AUTHORIZATION OF APPROPRIATIONS.—In order to 
carry out this section, there are authorized to be appro-
priated out of the Postal Service Fund $20,000,000, which 
funds shall remain available until expended. 
(m) FINANCIAL REPORTING.— 
(1) AUDIT AND EXPENDITURES.—The Commis-
sion shall be responsible for issuing annual financial 
statements and for establishing and maintaining ade-
quate controls over its financial reporting. 
(2) INTERNAL AUDITS.—The Commission shall 
maintain an adequate internal audit of its financial 
transactions. 
(3) ANNUAL
CERTIFICATION.—The Commission 
shall obtain an annual certification for each fiscal 
year from an independent, certified public accounting 
firm of the accuracy of its financial statements. 
(4) COMPTROLLER GENERAL.—The accounts and 
operations of the Commission shall be audited by the 
Comptroller General and reports thereon made to the 
Congress to the extent and at such times as the Comp-
troller General may determine. 
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(n) TERMINATION.—The Commission shall terminate 
60 days after submitting its final reports under section 
104(d)(3). 
SEC. 104. RECOMMENDATIONS FOR CLOSURES AND CON-
SOLIDATIONS. 
(a) PLAN FOR THE CLOSURE OR CONSOLIDATION OF 
POSTAL RETAIL FACILITIES.— 
(1) IN GENERAL.—Not later than 120 days after 
the date of the enactment of this Act, the Postal Serv-
ice, in consultation with the Postal Regulatory Com-
mission, shall develop and submit to the Commission 
on Postal Reorganization a plan for the closure or 
consolidation of such postal retail facilities as the 
Postal Service considers necessary and appropriate so 
that the total annual costs attributable to the oper-
ation of postal retail facilities will be, for each fiscal 
year beginning at least 2 years after the date on 
which the Commission transmits to Congress its final 
report under subsection (d)(3)(A) relating to this sub-
section, at least $1,000,000,000 less than the cor-
responding total annual costs for the baseline year. 
(2) CONTENTS.—The plan shall include— 
(A) a list of the postal retail facilities pro-
posed for closure or consolidation under this sub-
title; 
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(B) a proposed schedule under which— 
(i) closures and consolidations of postal 
retail facilities would be carried out under 
this subtitle; and 
(ii) all closures and consolidations of 
postal retail facilities under this subtitle 
would be completed by not later than 2 
years after the date on which the Commis-
sion transmits to Congress its final report 
under subsection (d)(3)(A) relating to such 
plan; 
(C) the estimated total annual cost savings 
attributable to the proposed closures and consoli-
dations described in the plan; 
(D) the criteria and process used to develop 
the information described in subparagraphs (A) 
and (B); 
(E) the methodology and assumptions used 
to derive the estimates described in subparagraph 
(C); and 
(F) any changes to the processing, transpor-
tation, delivery, or other postal operations an-
ticipated as a result of the proposed closures and 
consolidations described in the plan. 
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(3) CONSISTENCY.—The methodology and as-
sumptions used to derive the cost estimates described 
in paragraph (2)(C) shall be consistent with the 
methodology and assumptions which would have been 
used by the Postal Service if those closures and con-
solidations had instead taken effect in the baseline 
year. 
(b) PLAN FOR THE CLOSURE OR CONSOLIDATION OF 
MAIL PROCESSING FACILITIES.— 
(1) IN GENERAL.—Not later than 300 days after 
the date of the enactment of this Act, the Postal Serv-
ice, in consultation with the Inspector General of the 
United States Postal Service, shall develop and sub-
mit to the Commission on Postal Reorganization a 
plan for the closure or consolidation of such mail 
processing facilities as the Postal Service considers 
necessary and appropriate so that— 
(A) the total annual costs attributable to the 
operation of mail processing facilities will be, for 
each fiscal year beginning at least 2 years after 
the date on which the Commission transmits to 
Congress its final report under subsection 
(d)(3)(A) relating to this subsection, at least 
$2,000,000,000 less than the corresponding total 
annual costs for the baseline year; and 
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(B) the Postal Service has, for fiscal years 
beginning at least 2 years after the date on 
which the Commission transmits to Congress its 
final report under subsection (d)(3)(A) relating 
to this subsection, no more than 10 percent excess 
mail processing capacity. 
(2) CONTENTS.—The plan shall include— 
(A) a list of the mail processing facilities 
proposed for closure or consolidation under this 
subtitle; 
(B) a proposed schedule under which— 
(i) closures and consolidations of mail 
processing facilities would be carried out 
under this subtitle; and 
(ii) all closures and consolidations of 
mail processing facilities under this subtitle 
would be completed by not later than 2 
years after the date on which the Commis-
sion transmits to Congress its final report 
under subsection (d)(3)(A) relating to such 
plan; 
(C) the estimated total annual cost savings 
attributable to the proposed closures and consoli-
dations described in the plan; 
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(D) the criteria and process used to develop 
the information described in subparagraphs (A) 
and (B); 
(E) the methodology and assumptions used 
to derive the estimates described in subparagraph 
(C); and 
(F) any changes to the processing, transpor-
tation, delivery, or other postal operations an-
ticipated as a result of the proposed closures and 
consolidations described in the plan. 
(3) CONSISTENCY.—The methodology and as-
sumptions used to derive the cost estimates described 
in paragraph (2)(C) shall be consistent with the 
methodology and assumptions which would have been 
used by the Postal Service if those closures and con-
solidations had instead taken effect in the baseline 
year. 
(4) EXCESS MAIL PROCESSING CAPACITY.—The 
Commission shall cause to be published in the Federal 
Register notice of a proposed definition of ‘‘excess 
mail processing capacity’’ for purposes of this section 
within 120 days after the date of the enactment of 
this Act, and shall provide a period of 30 days for 
public comment on the proposed definition. Not later 
than 180 days after the date of the enactment of this 
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Act, the Commission shall issue and cause to be pub-
lished in the Federal Register a final definition of 
‘‘excess mail processing capacity’’ for purposes of this 
section. Such definition shall include an estimate of 
the total amount of excess mail processing capacity in 
mail processing facilities as of the date of the enact-
ment of this Act. 
(5) UNDERUTILIZED MAIL PROCESSING FACILI-
TIES.—In developing a plan under this subsection, 
the Postal Service may include the estimated total 
cost savings that would result from moving mail proc-
essing operations to any mail processing facility that, 
as of the date of introduction of this Act— 
(A) is not currently used by the Postal 
Service; and 
(B) is capable of processing mail to the 
Postal Service’s standards. 
(c) PLAN FOR THE CLOSURE OR CONSOLIDATION OF 
AREA AND DISTRICT OFFICES.— 
(1) IN GENERAL.—Not later than 300 days after 
the date of the enactment of this Act, the Postal Serv-
ice, in consultation with the Inspector General of the 
United States Postal Service, shall develop and sub-
mit to the Commission on Postal Reorganization a 
plan for the closure or consolidation of such area and 
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district offices as the Postal Service considers nec-
essary and appropriate so that the combined total 
number of area and district offices will be, for each 
fiscal year beginning at least 2 years after the date 
on which the Commission transmits to Congress its 
final report under subsection (d)(3)(A) relating to 
this subsection, at least 30 percent less than the cor-
responding combined total for the baseline year. 
(2) CONTENTS.—The plan shall include— 
(A) a list of the area and district offices 
proposed for closure or consolidation under this 
subtitle; 
(B) a proposed schedule under which— 
(i) closures and consolidations of area 
and district offices would be carried out 
under this subtitle; and 
(ii) all closures and consolidations of 
area and district offices under this subtitle 
would be completed by not later than 2 
years after the date on which the Commis-
sion transmits to Congress its final report 
under subsection (d)(3)(A) relating to such 
plan; 
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(C) the estimated total annual cost savings 
attributable to the proposed closures and consoli-
dations described in the plan; 
(D) the criteria and process used to develop 
the information described in subparagraphs (A) 
and (B); 
(E) the methodology and assumptions used 
to derive the estimates described in subparagraph 
(C); and 
(F) any changes to the processing, transpor-
tation, delivery, or other postal operations an-
ticipated as a result of the proposed closures and 
consolidations described in the plan. 
(3) CONSISTENCY.—The methodology and as-
sumptions used to derive the cost estimates described 
in paragraph (2)(C) shall be consistent with the 
methodology and assumptions which would have been 
used by the Postal Service if those closures and con-
solidations had instead taken effect in the baseline 
year. 
(d) REVIEW AND RECOMMENDATIONS OF THE COMMIS-
SION.— 
(1) INITIAL REPORTS.— 
(A) IN GENERAL.—After receiving the plan 
of the Postal Service under subsection (a), (b), or 
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(c), the Commission on Postal Reorganization 
shall transmit to Congress and publish in the 
Federal Register a report under this paragraph, 
which shall contain the Commission’s findings 
based on a review and analysis of such plan, to-
gether with the Commission’s initial rec-
ommendations for closures and consolidations of 
postal facilities, mail processing facilities, or 
area and district offices (as the case may be). 
(B) EXPLANATION OF CHANGES.—The Com-
mission shall explain and justify in its report 
any recommendations made by the Commission 
that are different from those contained in the 
Postal Service plan to which such report per-
tains. 
(C) DEADLINES.—A report of the Commis-
sion under this paragraph shall be transmitted 
and published, in accordance with subparagraph 
(A), within— 
(i) if the report pertains to the plan 
under subsection (a), 60 days after the date 
on which the Commission receives such 
plan; or 
(ii) if the report pertains to the plan 
under subsection (b) or (c), 90 days after 
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the date on which the Commission receives 
such plan. 
(2) PUBLIC HEARINGS.— 
(A) IN GENERAL.—After receiving the plan 
of the Postal Service under subsection (a), (b), or 
(c), the Commission on Postal Reorganization 
shall conduct at least 5 public hearings on such 
plan. The hearings shall be conducted in geo-
graphic areas chosen so as to reflect a broadly 
representative range of needs and interests. 
(B) TESTIMONY.—All testimony before the 
Commission at a public hearing conducted under 
this paragraph shall be given under oath. 
(C) DEADLINES.—All hearings under this 
paragraph shall be completed within 60 days 
after the date as of which the Commission satis-
fies the requirements of paragraph (1) with re-
spect to such plan. 
(3) FINAL REPORTS.— 
(A) IN GENERAL.—After satisfying the re-
quirements of paragraph (2) with respect to the 
plan of the Postal Service under subsection (a), 
(b), or (c) (as the case may be), the Commission 
shall transmit to Congress and publish in the 
Federal Register a report under this paragraph 
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containing a summary of the hearings conducted 
with respect to such plan, together with the Com-
mission’s final recommendations for closures and 
consolidations of postal facilities, mail proc-
essing facilities, or area and district offices (as 
the case may be). 
(B) APPROVAL.—Recommendations under 
subparagraph (A) shall not be considered to be 
final recommendations unless they are made 
with— 
(i) except as provided in clause (ii), 
the concurrence of at least 4 members of the 
Commission; or 
(ii) to the extent that the requirements 
of subsection (b)(1)(A) or (c)(1) are not met, 
the concurrence of all sitting members, but 
only if the shortfall (relative to the require-
ments of subsection (b)(1)(A) or (c)(1), as 
the case may be) does not exceed 25 percent. 
(C) CONTENTS.—A report under this para-
graph shall include— 
(i) the information required by para-
graph (2) of subsection (a), (b), or (c) (as 
the case may be); and 
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(ii) a description of the operations that 
will be affected by the closure or consolida-
tion and the facilities or offices which will 
be performing or ceasing to perform such 
operations as a result of such closure or con-
solidation. 
(D) DEADLINES.—A report of the Commis-
sion under this paragraph shall be transmitted 
and published, in accordance with subparagraph 
(A), within 60 days after the date as of which 
the Commission satisfies the requirements of 
paragraph (2) with respect to the plan involved. 
(e) LIMITATION RELATING TO POSTAL RETAIL FACILI-
TIES IDENTIFIED FOR CLOSURE OR CONSOLIDATION.— 
(1) APPLICABILITY.—This subsection applies to 
any plan of the Postal Service under subsection (a) 
and any report of the Commission under subsection 
(d) (whether initial or final) pertaining to such plan. 
(2) LIMITATION.—Of the total number of postal 
retail facilities recommended for closure or consolida-
tion (combined) under any plan or report to which 
this subsection applies, the number of such facilities 
that are within the K or L cost ascertainment group-
ing (combined) shall account for not more than 10 
percent of such total number. 
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(3) REFERENCES.—For purposes of this sub-
section— 
(A) any reference to a ‘‘cost ascertainment 
grouping’’ shall be considered to refer to a cost 
ascertainment grouping as described in section 
123.11 of the Postal Operations Manual (as in 
effect on June 23, 2011); and 
(B) any reference to a particular category 
(designated by a letter) of a cost ascertainment 
grouping shall be considered to refer to such cat-
egory, as described in such section 123.11 (as in 
effect on the date specified in subparagraph (A)). 
(f) ANNUAL REPORTS.— 
(1) IN GENERAL.—There shall be included in the 
next 5 annual reports submitted under section 2402 
of title 39, United States Code, beginning with the re-
port covering any period of time occurring after the 
date of enactment of this Act, the following (shown on 
a State-by-State basis): 
(A) In connection with closures and consoli-
dations taking effect in the year covered by the 
report, the total number of individuals separated 
from employment with the Postal Service, in-
cluding, if separation occurs in a year other 
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than the year in which the closing or consolida-
tion occurs, the year in which separation occurs. 
(B) Of the total numbers under subpara-
graph (A)— 
(i) the number and percentage com-
prising preference eligibles or veterans; and 
(ii) the number and percentage com-
prising individuals other than preference 
eligibles or veterans. 
(C) Of the total numbers under subpara-
graph (A), the number and percentage reem-
ployed in a position within the general com-
muting area of the facility or office involved (in-
cluding, if reemployment occurs in a year other 
than the year in which the closing or consolida-
tion occurs, the year in which reemployment oc-
curs)— 
(i) with the Postal Service; or 
(ii) with an employer other than the 
Postal Service. 
(D) The methodology and assumptions used 
to derive the estimates described in subparagraph 
(B). 
(E) The criteria and process used to develop 
the information described in subparagraph (C). 
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(2) DEFINITIONS.—For purposes of this sub-
section— 
(A) the term ‘‘preference eligible’’ has the 
meaning given such term in section 2108(3) of 
title 5, United States Code; and 
(B) the term ‘‘veteran’’ has the meaning 
given such term in section 101(2) of title 38, 
United States Code. 
SEC. 105. IMPLEMENTATION OF CLOSURES AND CONSOLI-
DATIONS. 
(a) IN GENERAL.—Subject to subsection (b), the Postal 
Service shall— 
(1) close or consolidate (as the case may be) the 
facilities and offices recommended by the Commission 
in each of its final reports under section 104(d)(3); 
and 
(2) carry out those closures and consolidations in 
accordance with the timetable recommended by the 
Commission in such report, except that in no event 
shall any such closure or consolidation be completed 
later than 2 years after the date on which such report 
is submitted to Congress. 
(b) CONGRESSIONAL DISAPPROVAL.— 
(1) IN GENERAL.—The Postal Service may not 
carry out any closure or consolidation recommended 
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by the Commission in a final report if a joint resolu-
tion disapproving the recommendations of the Com-
mission is enacted, in accordance with section 106, 
before the earlier of— 
(A) the end of the 30-day period beginning 
on the date on which the Commission transmits 
those recommendations to Congress under section 
104(d)(3); or 
(B) the adjournment of the Congress sine 
die for the session during which such report is 
transmitted. 
(2) DAYS OF SESSION.—For purposes of para-
graph (1) and subsections (a) and (c) of section 106, 
the days on which either House of Congress is not in 
session because of an adjournment of more than 7 
days to a day certain shall be excluded in the com-
putation of a period. 
SEC. 106. CONGRESSIONAL CONSIDERATION OF FINAL CPR 
REPORTS. 
(a) TERMS OF THE RESOLUTION.—For purposes of 
this subtitle, the term ‘‘joint resolution’’, as used with re-
spect to a report under section 104(d)(3), means only a 
joint resolution— 
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(1) which is introduced within the 10-day period 
beginning on the date on which such report is received 
by Congress; 
(2) the matter after the resolving clause of which 
is as follows: ‘‘That Congress disapproves the rec-
ommendations of the Commission on Postal Reorga-
nization, submitted by such Commission on ll, 
and pertaining to the closure or consolidation of 
ll.’’, the first blank space being filled in with the 
appropriate date and the second blank space being 
filled in with ‘‘postal retail facilities’’, ‘‘mail proc-
essing facilities’’, or ‘‘area and district offices’’ (as the 
case may be); 
(3) the title of which is as follows: ‘‘Joint resolu-
tion disapproving the recommendations of the Com-
mission on Postal Reorganization.’’; and 
(4) which does not have a preamble. 
(b) REFERRAL.—A resolution described in subsection 
(a) that is introduced in the House of Representatives or 
the Senate shall be referred to the appropriate committees 
of the House of Representatives or the Senate, respectively. 
(c) DISCHARGE.—If the committee to which a resolu-
tion described in subsection (a) is referred has not reported 
such resolution (or an identical resolution) by the end of 
the 20-day period beginning on the date on which the Com-
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mission transmits the report (to which such resolution per-
tains) to Congress under section 104(d)(3), such committee 
shall, at the end of such period, be discharged from further 
consideration of such resolution, and such resolution shall 
be placed on the appropriate calendar of the House in-
volved. 
(d) CONSIDERATION.— 
(1) IN GENERAL.—On or after the third day 
after the date on which the committee to which such 
a resolution is referred has reported, or has been dis-
charged (under subsection (c)) from further consider-
ation of, such a resolution, it is in order (even though 
a previous motion to the same effect has been dis-
agreed to) for any Member of the respective House to 
move to proceed to the consideration of the resolution. 
A Member may make the motion only on the day 
after the calendar day on which the Member an-
nounces to the House concerned the Member’s inten-
tion to make the motion, except that, in the case of 
the House of Representatives, the motion may be 
made without such prior announcement if the motion 
is made by direction of the committee to which the 
resolution was referred. All points of order against the 
resolution (and against consideration of the resolu-
tion) are waived. The motion is highly privileged in 
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the House of Representatives and is privileged in the 
Senate and is not debatable. The motion is not subject 
to amendment, or to a motion to postpone, or to a 
motion to proceed to the consideration of other busi-
ness. A motion to reconsider the vote by which the 
motion is agreed to or disagreed to shall not be in 
order. If a motion to proceed to the consideration of 
the resolution is agreed to, the respective House shall 
immediately proceed to consideration of the joint reso-
lution without intervening motion, order, or other 
business, and the resolution shall remain the unfin-
ished business of the respective House until disposed 
of. 
(2) DEBATE.—Debate on the resolution, and on 
all debatable motions and appeals in connection 
therewith, shall be limited to not more than 2 hours, 
which shall be divided equally between those favoring 
and those opposing the resolution. An amendment to 
the resolution is not in order. A motion further to 
limit debate is in order and not debatable. A motion 
to postpone, or a motion to proceed to the consider-
ation of other business, or a motion to recommit the 
resolution is not in order. A motion to reconsider the 
vote by which the resolution is agreed to or disagreed 
to is not in order. 
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(3) VOTE ON FINAL PASSAGE.—Immediately fol-
lowing the conclusion of the debate on a resolution de-
scribed in subsection (a) and a single quorum call at 
the conclusion of the debate if requested in accordance 
with the rules of the appropriate House, the vote on 
final passage of the resolution shall occur. 
(4) APPEALS.—Appeals from the decisions of the 
Chair relating to the application of the rules of the 
Senate or the House of Representatives, as the case 
may be, to the procedure relating to a resolution de-
scribed in subsection (a) shall be decided without de-
bate. 
(e) CONSIDERATION BY OTHER HOUSE.— 
(1) IN GENERAL.—If, before the passage by one 
House of a resolution of that House described in sub-
section (a), that House receives from the other House 
a resolution (described in subsection (a)) relating to 
the same report, then the following procedures shall 
apply: 
(A) The resolution of the other House shall 
not be referred to a committee and may not be 
considered in the House receiving it except in the 
case of final passage as provided in subpara-
graph (B)(ii). 
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(B) With respect to the resolution described 
in subsection (a) (relating to the report in ques-
tion) of the House receiving the resolution— 
(i) the procedure in that House shall be 
the same as if no resolution (relating to the 
same report) had been received from the 
other House; but 
(ii) the vote on final passage shall be 
on the resolution of the other House. 
(2) DISPOSITION OF A RESOLUTION.—Upon dis-
position of the resolution received from the other 
House, it shall no longer be in order to consider the 
resolution that originated in the receiving House. 
(f) RULES OF THE SENATE AND HOUSE.—This section 
is enacted by Congress— 
(1) as an exercise of the rulemaking power of the 
Senate and House of Representatives, respectively, 
and as such it is deemed a part of the rules of each 
House, respectively, but applicable only with respect 
to the procedure to be followed in that House in the 
case of a resolution described in subsection (a), and 
it supersedes other rules only to the extent that it is 
inconsistent with such rules; and 
(2) with full recognition of the constitutional 
right of either House to change the rules (so far as re-
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lating to the procedure of that House) at any time, 
in the same manner, and to the same extent as in the 
case of any other rule of that House. 
SEC. 107. NONAPPEALABILITY OF DECISIONS. 
(a) TO PRC.—The closing or consolidation of any fa-
cility or office under this subtitle may not be appealed to 
the Postal Regulatory Commission under section 404(d) or 
any other provision of title 39, United States Code, or be 
the subject of an advisory opinion issued by the Postal Reg-
ulatory Commission under section 3661 of such title. 
(b) JUDICIAL
REVIEW.—No process, report, rec-
ommendation, or other action of the Commission on Postal 
Reorganization shall be subject to judicial review. 
SEC. 108. RULES OF CONSTRUCTION. 
(a) CONTINUED AVAILABILITY
OF AUTHORITY TO 
CLOSE OR CONSOLIDATE POSTAL FACILITIES.— 
(1) IN GENERAL.—Nothing in this subtitle shall 
be considered to prevent the Postal Service from clos-
ing or consolidating any postal facilities, in accord-
ance with otherwise applicable provisions of law, ei-
ther before or after the implementation of any closures 
or consolidations under this subtitle. 
(2) COORDINATION RULE.—No appeal or deter-
mination under section 404(d) of title 39, United 
States Code, or any other provision of law shall 
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delay, prevent, or otherwise affect any closure or con-
solidation under this subtitle. 
(b) INAPPLICABILITY OF CERTAIN PROVISIONS.— 
(1) IN GENERAL.—The provisions of law identi-
fied in paragraph (2)— 
(A) shall not apply to any closure or con-
solidation carried out under this subtitle; and 
(B) shall not be taken into account for pur-
poses of carrying out section 103 or 104. 
(2) PROVISIONS IDENTIFIED.—The provisions of 
law under this paragraph are— 
(A) section 101(b) of title 39, United States 
Code; and 
(B) section 404(d) of title 39, United States 
Code. 
SEC. 109. GAO STUDY AND REPORT. 
(a) STUDY.—Not later than 1 year after the date of 
enactment of this Act, the Comptroller General of the United 
States shall conduct a study on the effects, with respect to 
the unemployment rate of minority communities, of the pro-
posed closures and consolidations of postal retail facilities, 
mail processing facilities, and area or district offices under 
this subtitle. 
(b) REPORT.—Upon completion of the study required 
under subsection (a), the Comptroller General of the United 
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States shall submit a report to Congress regarding the find-
ings of such study. 
Subtitle B—Other Provisions 
SEC. 111. IMPLEMENTATION OF DISCRETIONARY NON-MAIL 
DELIVERY DAYS. 
(a) IN GENERAL.—Section 404 is amended by insert-
ing after subsection (e) the following: 
‘‘(f)(1) The Postmaster General may, with respect to 
any year for which 6-day delivery is otherwise required, 
declare up to 12 non-mail delivery days. Not later than 1 
month before the beginning of the year, the Postmaster Gen-
eral shall submit to the Board of Governors a report listing 
the non-mail delivery days in such year. 
‘‘(2) A non-mail delivery day under this subsection 
shall be a day other than— 
‘‘(A) a Sunday; 
‘‘(B) a legal public holiday listed in section 
6103(a) of title 5 or any other day declared to be a 
holiday by Federal statute or Executive order; or 
‘‘(C) during the 30-day period that ends on the 
date of a regularly scheduled general election for Fed-
eral office. 
‘‘(3) Any day which is declared under this subsection 
to be a non-mail delivery day— 
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‘‘(A) shall, for purposes of mail delivery and 
such other postal operations as the Postal Service 
may by regulation prescribe, be treated as if it were 
a Sunday; except that 
‘‘(B) an employee of the Postal Service (other 
than one who is prevented from working on such day 
by reason of this subsection) shall be entitled to the 
same pay and benefits for that day as if this sub-
section had not been enacted. 
‘‘(4)(A) The 6-day mail delivery requirement shall not 
apply with respect to a week in which a non-mail delivery 
day under this subsection occurs. 
‘‘(B) The authority to declare a non-mail delivery day 
under this subsection shall be considered to be within the 
right of the Postal Service to determine the methods, means, 
and personnel by which postal operations are to be con-
ducted. 
‘‘(5) Not less than 6 months after the date of enactment 
of this subsection, the Postal Service may submit a proposal 
under section 3661 for a nationwide change in service to 
reduce mail delivery from 6 days to 5 days each week. Not-
withstanding any other provision of law, the Postal Service 
shall maintain 6-day delivery service as the standard mail 
delivery schedule until 90 days following the rendering of 
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an advisory opinion on 5-day delivery by the Postal Regu-
latory Commission.’’. 
SEC. 112. EFFICIENT AND FLEXIBLE UNIVERSAL POSTAL 
SERVICE. 
(a) POSTAL POLICY.— 
(1) IN GENERAL.—Section 101(b) is amended to 
read as follows: 
‘‘(b) The Postal Service shall provide effective and reg-
ular postal services to rural areas, communities, and small 
towns where post offices are not self-sustaining.’’. 
(2) CONFORMING AMENDMENTS.—Clause (iii) of 
section 404(d)(2)(A) is amended to read as follows: 
‘‘(iii) whether such closing or consolidation 
is consistent with the policy of the Government, 
as stated in section 101(b), that the Postal Serv-
ice shall provide effective and regular postal 
services to rural areas, communities, and small 
towns where post offices are not self-sustaining;’’. 
(b) GENERAL DUTY.—Paragraph (3) of section 403(b) 
is amended to read as follows: 
‘‘(3) to ensure that postal patrons throughout the 
Nation will, consistent with reasonable economies of 
postal operations, have ready access to essential postal 
services.’’. 
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(c) PRC REVIEW OF DETERMINATIONS TO CLOSE OR 
CONSOLIDATE A POST OFFICE.— 
(1) DEADLINE FOR REVIEW.—Section 404(d)(5) 
is amended by striking ‘‘120 days’’ and inserting ‘‘60 
days’’. 
(2) EXCLUSION FROM REVIEW.—Section 404(d) 
is amended by adding at the end the following: 
‘‘(7)(A) The appeals process set forth in paragraph (5) 
shall not apply to a determination of the Postal Service 
to close a post office if there is located, within 2 miles of 
such post office, a qualified contract postal unit. 
‘‘(B) For purposes of this paragraph— 
‘‘(i) the term ‘contract postal unit’ means a store 
or other place of business which— 
‘‘(I) is not owned or operated by the Postal 
Service; and 
‘‘(II) in addition to its usual operations, 
provides postal services to the general public 
under contract with the Postal Service; and 
‘‘(ii) the term ‘qualified contract postal unit’, as 
used in connection with a post office, means a con-
tract postal unit which— 
‘‘(I) begins to provide postal services to the 
general public during the period— 
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‘‘(aa) beginning 1 year before the date 
on which the closure or consolidation of 
such post office is scheduled to take effect; 
and 
‘‘(bb) ending on the 15th day after the 
date on which the closure or consolidation of 
such post office is scheduled to take effect; 
and 
‘‘(II) has not, pursuant to subparagraph 
(A), served as the basis for exempting any other 
post office from the appeals process set forth in 
paragraph (5). 
‘‘(C)(i) If the contract postal unit (which is providing 
postal services that had been previously provided by the post 
office that was closed) does not continue to provide postal 
services, as required by subparagraph (B)(i)(II), for at least 
the 2-year period beginning on the date on which such post 
office was closed, the contract postal unit shall be subject 
to a closure determination by the Postal Service to decide 
whether a post office must be reopened within the area (de-
limited by the 2-mile radius referred to in subparagraph 
(A)). 
‘‘(ii) A decision under clause (i) not to reopen a post 
office may be appealed to the Postal Regulatory Commis-
sion under procedures which the Commission shall by regu-
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lation prescribe. Such procedures shall be based on para-
graph (5), except that, for purposes of this clause, para-
graph (5)(C) shall be applied by substituting ‘in violation 
of section 101(b), leaving postal patrons without effective 
and regular access to postal services’ for ‘unsupported by 
substantial evidence on the record’.’’. 
(3) APPLICABILITY.—The amendments made by 
this subsection shall not apply with respect to any 
appeal, notice of which is received by the Postal Reg-
ulatory Commission before the date of the enactment 
of this Act (determined applying the rules set forth in 
section 404(d)(6) of title 39, United States Code). 
(d) EXPEDITED PROCEDURES.— 
(1) IN GENERAL.—Section 3661 is amended by 
adding at the end the following: 
‘‘(d)(1) The Commission shall issue its opinion within 
90 days after the receipt of any proposal (as referred to 
in subsection (b)) concerning— 
‘‘(A) the closing or consolidation of postal retail 
facilities (as that term is defined in section 102(2) of 
the Postal Reform Act of 2011) to a degree that will 
generally affect service on a nationwide or substan-
tially nationwide basis; or 
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‘‘(B) an identical or substantially identical pro-
posal on which the Commission issued an opinion 
within the preceding 5 years. 
‘‘(2) If necessary in order to comply with the 90-day 
requirement under paragraph (1), the Commission may 
apply expedited procedures which the Commission shall by 
regulation prescribe.’’. 
(2) REGULATIONS.—The Postal Regulatory Com-
mission shall prescribe any regulations necessary to 
carry out the amendment made by paragraph (1) 
within 90 days after the date of the enactment of this 
Act. 
(3) APPLICABILITY.—The amendment made by 
this subsection shall apply with respect to any pro-
posal received by the Postal Regulatory Commission 
on or after the earlier of— 
(A) the 90th day after the date of the enact-
ment of this Act; or 
(B) the effective date of the regulations 
under paragraph (2). 
SEC. 113. ENHANCED REPORTING ON POSTAL SERVICE EF-
FICIENCY. 
Section 3652(a) is amended— 
(1) in paragraph (1), by striking ‘‘and’’ after the 
semicolon; 
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(2) in paragraph (2), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding after paragraph (2) the following: 
‘‘(3) which shall provide the overall change in 
Postal Service productivity and the resulting effect of 
such change on overall Postal Service costs during 
such year, using such methodologies as the Commis-
sion shall by regulation prescribe.’’. 
SEC. 114. APPLICABILITY OF PROCEDURES RELATING TO 
CLOSURES AND CONSOLIDATIONS. 
(a) IN GENERAL.—Section 404(d) is amended by add-
ing after paragraph (7) (as added by section 112(c)(2)) the 
following: 
‘‘(8) For purposes of this subsection, the term ‘post of-
fice’ means a post office and any other facility described 
in section 102(2) of the Postal Reform Act of 2011.’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall be effective with respect to any closure or 
consolidation, the proposed effective date of which occurs on 
or after the 60th day following the date of enactment of 
this Act. 
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TITLE II—POSTAL SERVICE FI-
NANCIAL 
RESPONSIBILITY 
AND 
MANAGEMENT 
ASSIST-
ANCE AUTHORITY 
Subtitle A—Establishment and 
Organization 
SEC. 201. PURPOSES. 
(a) PURPOSES.—The purposes of this title are as fol-
lows: 
(1) To eliminate budget deficits and cash short-
ages of the Postal Service through strategic financial 
planning, sound budgeting, accurate revenue forecasts, 
and careful spending. 
(2) To ensure the universal service mandate de-
tailed in section 101 of title 39, United States Code, 
is maintained during a period of fiscal emergency. 
(3) To conduct necessary investigations and 
studies to determine the fiscal status and operational 
efficiency of the Postal Service. 
(4) To assist the Postal Service in— 
(A) restructuring its organization and 
workforce to bring expenses in line with dimin-
ishing revenue and generate sufficient profits for 
capital investment and repayment of debt; 
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(B) meeting all fiscal obligations to the 
Treasury of the United States; and 
(C) ensuring the appropriate and efficient 
delivery of postal services. 
(5) To provide the Postal Service with a tem-
porary increase in its borrowing authority to enable 
the Postal Service to complete necessary restructuring. 
(6) To ensure the long-term financial, fiscal, and 
economic vitality and operational efficiency of the 
Postal Service. 
(b) RESERVATION OF POWERS.—Nothing in this title 
may be construed— 
(1) to relieve any obligations existing as of the 
date of the enactment of this Act of the Postal Service 
to the Treasury of the United States; or 
(2) to limit the authority of Congress to exercise 
ultimate legislative authority over the Postal Service. 
SEC. 202. ESTABLISHMENT OF THE AUTHORITY. 
(a) ESTABLISHMENT.—There shall be established, 
upon the commencement of any control period, an entity 
to be known as the ‘‘Postal Service Financial Responsibility 
and Management Assistance Authority’’ (hereinafter in this 
title referred to as the ‘‘Authority’’). 
(b) CONTROL PERIOD.— 
(1) COMMENCEMENT OF A CONTROL PERIOD.— 
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(A) IN GENERAL.—For the purposes of this 
title, a control period commences whenever the 
Postal Service has been in default to the Treas-
ury of the United States, with respect to any 
debts, obligations, loans, bonds, notes, or other 
form of borrowing, or any scheduled payments to 
any fund in the Treasury of the United States, 
for a period of at least 30 days. 
(B) ADVISORY
PERIOD.—For purposes of 
the first control period, the Authority shall oper-
ate exclusively in an advisory period for two full 
fiscal years after the commencement of the con-
trol period. At the completion of the second full 
fiscal year or any year thereafter during the 
length of the control period, if the Postal Serv-
ice’s 
annual 
deficit 
is 
greater 
than 
$2,000,000,000, the Authority shall be fully in 
force according to the provisions of this title. 
During an advisory period— 
(i) the Authority is not authorized to 
employ any staff and the Postal Service 
shall designate a Level-Two Postal Service 
Executive as a liaison with the members of 
the Authority; 
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(ii) any provision of this title that re-
quires the Authority or the Postal Service to 
take any action shall be considered only to 
take effect in the event the Authority comes 
into full force and that effective date shall 
be considered to be the date of the com-
mencement of the control period for the pur-
poses any provision not mention in this 
subparagraph; and 
(iii) the Postal Service shall have ac-
cess to the funds available under section 222 
according to applicable provisions of this 
Act, subject to the approval of the Postal 
Service Board of Governors without the ap-
proval of the Authority. 
(2) TREATMENT OF AUTHORITIES AND RESPON-
SIBILITIES OF THE BOARD OF GOVERNORS, ETC. DUR-
ING A CONTROL PERIOD.—During a control period— 
(A) all authorities and responsibilities of 
the Board of Governors, and the individual Gov-
ernors, of the Postal Service under title 39, 
United States Code, and any other provision of 
law shall be assumed by the Authority; and 
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(B) the Board of Governors, and the indi-
vidual Governors, may act in an advisory capac-
ity only. 
(3) TREATMENT OF CERTAIN POSTAL SERVICE 
EXECUTIVES DURING A CONTROL PERIOD.— 
(A) DEFINITION.—For the purposes of this 
section, the term ‘‘Level-Two Postal Service Ex-
ecutive’’ includes the Postmaster General, the 
Deputy Postmaster General, and all other offi-
cers or employees of the Postal Service in level 
two of the Postal Career Executive Service (or 
the equivalent). 
(B) 
TREATMENT.—Notwithstanding 
any 
other provision of law or employment contract, 
during a control period— 
(i) all Level-Two Postal Service Execu-
tives shall serve at the pleasure of the Au-
thority; 
(ii) the duties and responsibilities of 
all Level-Two Postal Service Executives, as 
well as the terms and conditions of their 
employment (including their compensation), 
shall be subject to determination or redeter-
mination by the Authority; 
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(iii) total compensation of a Level-Two 
Postal Service Executive may not, for any 
year in such control period, exceed the an-
nual rate of basic pay payable for level I of 
the Executive Schedule under section 5312 
of title 5, United States Code, for such year; 
for purposes of this clause, the term ‘‘total 
compensation’’ means basic pay, bonuses, 
awards, and all other monetary compensa-
tion; 
(iv) the percentage by which the rate of 
basic pay of a Level-Two Postal Service Ex-
ecutive is increased during any year in 
such control period may not exceed the per-
centage change in the Consumer Price Index 
for All Urban Consumers, unadjusted for 
seasonal variation, for the most recent 12- 
month period available, except that, in the 
case of a Level-Two Postal Service Execu-
tive who has had a significant change in job 
responsibilities, a greater change shall be al-
lowable if approved by the Authority; 
(v) apart from basic pay, a Level-Two 
Postal Service Executive may not be af-
forded any bonus, award, or other monetary 
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compensation for any fiscal year in the con-
trol period if expenditures of the Postal 
Service for such fiscal year exceeded reve-
nues of the Postal Service for such fiscal 
year (determined in accordance with gen-
erally accepted accounting principles); and 
(vi) no deferred compensation may be 
paid, accumulated, or recognized in the case 
of any Level-Two Postal Service Executive, 
with respect to any year in a control pe-
riod, which is not generally paid, accumu-
lated, or recognized in the case of employees 
of the United States (outside of the Postal 
Service) in level I of the Executive Schedule 
under section 5312 of title 5, United States 
Code, with respect to such year. 
(C) BONUS
AUTHORITY.—Section 3686 of 
title 39, United States Code, shall, during the pe-
riod beginning on the commencement date of the 
control period and ending on the termination 
date of the control period— 
(i) be suspended with respect to all 
Level-Two Postal Service Executives; but 
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(ii) remain in effect for all other offi-
cers and employees of the Postal Service 
otherwise covered by this section. 
(4) TERMINATION OF A CONTROL PERIOD.—Sub-
ject to subtitle D, a control period terminates upon 
certification by the Authority, with the concurrence of 
the Secretary of the Treasury and the Director of the 
Office of Personnel Management, that— 
(A) for 2 consecutive fiscal years (occurring 
after the date of the enactment of this Act), ex-
penditures of the Postal Service did not exceed 
revenues of the Postal Service (as determined in 
accordance with generally accepted accounting 
principles); 
(B) the Authority has approved a Postal 
Service financial plan and budget that shows ex-
penditures of the Postal Service not exceeding 
revenues of the Postal Service (as so determined) 
for the fiscal year to which such budget pertains 
and each of the next 3 fiscal years; and 
(C) the Postal Service financial plan and 
budget (as referred to in subparagraph (B)) in-
cludes plans— 
(i) for the repayment of any supple-
mentary debt under section 222, in equal 
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annual installments over a period of not 
more than 5 years; and 
(ii) to properly fund Postal Service 
pensions and retiree health benefits in ac-
cordance with law. 
SEC. 203. MEMBERSHIP AND QUALIFICATION REQUIRE-
MENTS. 
(a) MEMBERSHIP.— 
(1) IN GENERAL.—The Authority shall consist of 
5 members appointed by the President who meet the 
qualifications described in subsection (b), except that 
the Authority may take any action under this title at 
any time after the President has appointed 4 of its 
members. 
(2) RECOMMENDATIONS.—Of the 5 members so 
appointed— 
(A) 1 shall be appointed from among indi-
viduals recommended by the Speaker of the 
House of Representatives; 
(B) 1 shall be appointed from among indi-
viduals recommended by the majority leader of 
the Senate; 
(C) 1 shall be appointed from among indi-
viduals recommended by the minority leader of 
the House of Representatives; 
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(D) 1 shall be appointed from among indi-
viduals recommended by the minority leader of 
the Senate; and 
(E) 1 shall be appointed from among indi-
viduals recommended by the Comptroller Gen-
eral. 
(3) POLITICAL AFFILIATION.—No more than 3 
members of the Authority may be of the same political 
party. 
(4) CHAIR.—The President shall designate 1 of 
the members of the Authority as the Chair of the Au-
thority. 
(5) SENSE OF CONGRESS REGARDING DEADLINE 
FOR APPOINTMENT.—It is the sense of Congress that 
the President should appoint the members of the Au-
thority as soon as practicable after the date on which 
a control period commences, but no later than 30 
days after such date. 
(6) TERM OF SERVICE.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), each member of the Authority 
shall be appointed for a term of 3 years. 
(B) APPOINTMENT
FOR
TERM
FOLLOWING 
INITIAL TERM.—As designated by the President 
at the time of appointment for the term imme-
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diately following the initial term, of the members 
appointed for the term immediately following the 
initial term— 
(i) 1 member shall be appointed for a 
term of 1 year; 
(ii) 2 members shall be appointed for 
a term of 2 years; and 
(iii) 2 members shall be appointed for 
a term of 3 years. 
(C) REMOVAL.—The President may remove 
any member of the Authority only for cause. 
(D) NO
COMPENSATION
FOR
SERVICE.— 
Members of the Authority shall serve without 
pay, but may receive reimbursement for any rea-
sonable and necessary expenses incurred by rea-
son of service on the Authority. 
(b) QUALIFICATION REQUIREMENTS.— 
(1) IN
GENERAL.—An individual meets the 
qualifications for membership on the Authority if the 
individual— 
(A) has significant knowledge and expertise 
in finance, management, and the organization or 
operation of businesses having more than 500 
employees; and 
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(B) represents the public interest generally, 
is not a representative of specific interests using 
or belonging to the Postal Service, and does not 
have any business or financial interest in any 
enterprise in the private sector of the economy 
engaged in the delivery of mail matter. 
(2) SPECIFIC CONDITIONS.—An individual shall 
not be considered to satisfy paragraph (1)(B) if, at 
any time during the 5-year period ending on the date 
of appointment, such individual— 
(A) has been an officer, employee, or private 
contractor with the Postal Service or the Postal 
Regulatory Commission; or 
(B) has served as an employee or contractor 
of a labor organization representing employees of 
the Postal Service or the Postal Regulatory Com-
mission. 
SEC. 204. ORGANIZATION. 
(a) ADOPTION OF BY-LAWS FOR CONDUCTING BUSI-
NESS.—As soon as practicable after the appointment of its 
members, the Authority shall adopt by-laws, rules, and pro-
cedures governing its activities under this title, including 
procedures for hiring experts and consultants. Upon adop-
tion, such by-laws, rules, and procedures shall be submitted 
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by the Authority to the Postmaster General, the President, 
and Congress. 
(b) CERTAIN ACTIVITIES REQUIRING APPROVAL OF 
MAJORITY OF MEMBERS.—Under its by-laws, the Authority 
may conduct its operations under such procedures as it con-
siders appropriate, except that an affirmative vote of a ma-
jority of the members of the Authority shall be required in 
order for the Authority to— 
(1) approve or disapprove a financial plan and 
budget as described by subtitle C; 
(2) implement recommendations on financial 
stability and management responsibility under sec-
tion 226; 
(3) take any action under authority of section 
202(b)(3)(B)(i); or 
(4) initiate the establishment of a new workers’ 
compensation system for the Postal Service in accord-
ance with section 311. 
SEC. 205. EXECUTIVE DIRECTOR AND STAFF. 
(a) EXECUTIVE DIRECTOR.—The Authority shall have 
an Executive Director who shall be appointed by the Chair 
with the consent of the Authority. The Executive Director 
shall be paid at a rate determined by the Authority, except 
that such rate may not exceed the rate of basic pay payable 
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for level IV of the Executive Schedule under section 5315 
of title 5, United States Code. 
(b) STAFF.—With the approval of the Authority, the 
Executive Director may appoint and fix the pay of such 
additional personnel as the Executive Director considers 
appropriate, except that no individual appointed by the 
Executive Director may be paid at a rate greater than the 
rate of pay for the Executive Director. Personnel appointed 
under this subsection shall serve at the pleasure of the Exec-
utive Director. 
(c) INAPPLICABILITY
OF CERTAIN CIVIL SERVICE 
LAWS.—The Executive Director and staff of the Authority 
may be appointed without regard to the provisions of title 
5, United States Code, governing appointments in the com-
petitive service, and paid without regard to the provisions 
of chapter 51 and subchapter III of chapter 53 of such title 
relating to classification and General Schedule pay rates. 
(d) STAFF OF FEDERAL AGENCIES.—Upon request of 
the Chair, the head of any Federal department or agency 
may detail, on a reimbursable or nonreimbursable basis, 
any of the personnel of such department or agency to the 
Authority to assist it in carrying out its duties under this 
title. 
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SEC. 206. FUNDING. 
(a) IN GENERAL.—There are authorized to be appro-
priated, out of the Postal Service Fund, such sums as may 
be necessary for the Authority. In requesting an appropria-
tion under this section for a fiscal year, the Authority shall 
prepare and submit to the Congress under section 2009 of 
title 39, United States Code, a budget of the Authority’s 
expenses, including expenses for facilities, supplies, com-
pensation, and employee benefits not to exceed $10,000,000. 
In years in which a control period commences, the Author-
ity shall submit a budget within 30 days of the appoint-
ment of the members of the Authority. 
(b) AMENDMENT TO SECTION 2009.—Section 2009 is 
amended in the next to last sentence— 
(1) by striking ‘‘, and (3)’’ and inserting ‘‘, (3)’’; 
and 
(2) by striking the period and inserting ‘‘, and 
(4) the Postal Service Financial Responsibility and 
Management Assistance Authority requests to be ap-
propriated, out of the Postal Service Fund, under sec-
tion 206 of the Postal Reform Act of 2011.’’. 
Subtitle B—Powers of the Authority 
SEC. 211. POWERS. 
(a) POWERS OF MEMBERS AND AGENTS.—Any mem-
ber or agent of the Authority may, if authorized by the Au-
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thority, take any action which the Authority is authorized 
by this section to take. 
(b) OBTAINING OFFICIAL DATA FROM THE POSTAL 
SERVICE.—Notwithstanding any other provision of law, the 
Authority may secure copies of such records, documents, in-
formation, or data from any entity of the Postal Service 
necessary to enable the Authority to carry out its respon-
sibilities under this title. At the request of the Authority, 
the Authority shall be granted direct access to such informa-
tion systems, records, documents, information, or data as 
will enable the Authority to carry out its responsibilities 
under this title. The head of the relevant entity of the Postal 
Service shall provide the Authority with such information 
and assistance (including granting the Authority direct ac-
cess to automated or other information systems) as the Au-
thority requires under this subsection. 
(c) GIFTS, BEQUESTS, AND DEVISES.—The Authority 
may accept, use, and dispose of gifts, bequests, or devises 
of services or property, both real and personal, for the pur-
pose of aiding or facilitating the work of the Authority. 
Gifts, bequests, or devises of money and proceeds from sales 
of other property received as gifts, bequests, or devises shall 
be deposited in such account as the Authority may establish 
and shall be available for disbursement upon order of the 
Chair. 
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(d) ADMINISTRATIVE SUPPORT SERVICES.—Upon the 
request of the Authority, the Administrator of General Serv-
ices may provide to the Authority, on a reimbursable basis, 
the administrative support services necessary for the Au-
thority to carry out its responsibilities under this title. 
(e) AUTHORITY TO ENTER INTO CONTRACTS.—The 
Executive Director may enter into such contracts as the Ex-
ecutive Director considers appropriate (subject to the ap-
proval of the Chair) to carry out the Authority’s respon-
sibilities under this title. 
(f) CIVIL ACTIONS TO ENFORCE POWERS.—The Au-
thority may seek judicial enforcement of its authority to 
carry out its responsibilities under this title. 
(g) PENALTIES.— 
(1) ADMINISTRATIVE
DISCIPLINE.—Any officer 
or employee of the Postal Service who, by action or 
inaction, fails to comply with any directive or other 
order of the Authority under section 226(c) shall be 
subject to appropriate administrative discipline, in-
cluding suspension from duty without pay or removal 
from office, by order of either the Postmaster General 
or the Authority. 
(2) REPORTING
REQUIREMENT.—Whenever an 
officer or employee of the Postal Service takes or fails 
to take any action which is noncompliant with any 
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directive or other order of the Authority under section 
226(c), the Postmaster General shall immediately re-
port to the Authority all pertinent facts, together with 
a statement of any actions taken by the Postmaster 
General or proposed by the Postmaster General to be 
taken under paragraph (1). 
(h) SENSE OF CONGRESS.—It is the sense of Congress 
that, in making determinations that affect prior collective 
bargaining agreements and prior agreements on workforce 
reduction, any rightsizing effort within the Postal Service 
that results in a decrease in the number of postal employees 
should ensure that such employees can receive their full pen-
sions, are fully compensated, and that the collective bar-
gaining agreements and prior agreements on workforce re-
duction that they entered into with Postal Service manage-
ment are fully honored. 
SEC. 212. EXEMPTION FROM LIABILITY FOR CLAIMS. 
The Authority and its members may not be liable for 
any obligation of or claim against the Postal Service result-
ing from actions taken to carry out this title. 
SEC. 213. TREATMENT OF ACTIONS ARISING UNDER THIS 
TITLE. 
(a) JURISDICTION ESTABLISHED IN UNITED STATES 
COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA CIR-
CUIT.—A person (including the Postal Service) adversely 
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affected or aggrieved by an order or decision of the Author-
ity may, within 30 days after such order or decision be-
comes final, institute proceedings for review thereof by fil-
ing a petition in the United States Court of Appeals for 
the District of Columbia Circuit. The court shall review the 
order or decision in accordance with section 706 of title 
5, United States Code, and chapter 158 and section 2112 
of title 28, United States Code. Judicial review shall be lim-
ited to the question of whether the Authority acted in excess 
of its statutory authority, and determinations of the Au-
thority with respect to the scope of its statutory authority 
shall be upheld if based on a permissible construction of 
the statutory authority. 
(b) PROMPT APPEAL TO THE SUPREME COURT.—Not-
withstanding any other provision of law, review by the Su-
preme Court of the United States of a decision of the Court 
of Appeals which is issued pursuant to subsection (a) may 
be had only if the petition for such review is filed within 
10 days after the entry of such decision. 
(c) TIMING OF RELIEF.—No order of any court grant-
ing declaratory or injunctive relief against the Authority, 
including relief permitting or requiring the obligation, bor-
rowing, or expenditure of funds, shall take effect during the 
pendency of the action before such court, during the time 
appeal may be taken, or (if appeal is taken) during the 
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period before the court has entered its final order disposing 
of such action. 
(d) EXPEDITED CONSIDERATION.—It shall be the duty 
of the United States Court of Appeals for the District of 
Columbia and the Supreme Court of the United States to 
advance on the docket and to expedite to the greatest pos-
sible extent the disposition of any matter brought under 
subsection (a). 
SEC. 214. DELIVERY POINT MODERNIZATION. 
(a) DEFINITIONS.—For purposes of this section— 
(1) the term ‘‘delivery point’’ means a mailbox 
or other receptacle to which mail is delivered; 
(2) the term ‘‘primary mode of delivery’’ means 
the typical method by which the Postal Service deliv-
ers letter mail to the delivery point of a postal pa-
tron; 
(3) the term ‘‘door delivery’’ means a primary 
mode of mail delivery whereby mail is placed into a 
slot or receptacle at or near the postal patron’s door 
or is hand delivered to a postal patron, but does not 
include curbside or centralized delivery; 
(4) the term ‘‘centralized delivery’’ means a pri-
mary mode of mail delivery whereby mail receptacles 
are grouped or clustered at a single location; and 
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(5) the term ‘‘curbside delivery’’ means a pri-
mary mode of mail delivery whereby a mail recep-
tacle is situated at the edge of a roadway or curb. 
(b) REDUCTION
IN TOTAL NUMBER
OF DELIVERY 
POINTS.—The Authority shall, during the first control pe-
riod commencing under this title, take such measures as 
may be necessary and appropriate so that— 
(1) in each fiscal year beginning at least 2 years 
after the commencement date of such first control pe-
riod— 
(A) the total number of delivery points for 
which door delivery is the primary mode of mail 
delivery does not exceed 25 percent of the cor-
responding number for the fiscal year last ending 
before such commencement date; and 
(B) the total annual costs attributable to 
door delivery, centralized delivery, and curbside 
delivery combined will be at least $3,500,000,000 
less than the corresponding total annual costs for 
the fiscal year last ending before such commence-
ment date; and 
(2) in each fiscal year beginning at least 4 years 
after the commencement date of such first control pe-
riod, the total number of delivery points for which 
door delivery is the primary mode of mail delivery 
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does not exceed 10 percent of the corresponding num-
ber for the fiscal year last ending before such com-
mencement date. 
In making any decision under this subsection involving the 
continuation or termination of door delivery with respect 
to any locality or addresses within a locality, the Authority 
shall consider rates of poverty, population density, histor-
ical value, whether such locality is in a registered historic 
district (as that term is defined in section 47(c)(3)(B) of 
the Internal Revenue Code of 1986), whether such address 
is another place on the National Register of Historic Places, 
and other appropriate factors. 
(c) ORDER OF PRECEDENCE.—In order to carry out 
subsection (b)— 
(1) in making conversions from door delivery to 
other primary modes of delivery— 
(A) conversion shall be to centralized deliv-
ery; except 
(B) if subparagraph (A) is impractical, 
conversion shall be to curbside delivery; and 
(2) in the case of delivery points established after 
the commencement date of the first control period 
under this title— 
(A) centralized delivery shall be the pri-
mary mode of delivery; except 
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(B) if subparagraph (A) is impractical, 
curbside delivery shall be the primary mode of 
delivery. 
(d) WAIVER FOR PHYSICAL HARDSHIP.—The Postal 
Service shall establish and maintain a waiver program 
under which, upon application, door delivery may be con-
tinued or provided in any case in which— 
(1) centralized or curbside delivery would, but 
for this subsection, otherwise be the primary mode of 
delivery; and 
(2) door delivery is necessary in order to avoid 
causing significant physical hardship to a postal pa-
tron. 
(e) CENTRALIZED DELIVERY PLACEMENT.—It is the 
sense of the Congress that the Postal Service should nego-
tiate with State and local governments, businesses, local as-
sociations, and property owners to place centralized deliv-
ery units in locations that maximize delivery efficiency, 
ease of use for postal patrons, and respect for private prop-
erty rights. 
(f) VOUCHER PROGRAM.— 
(1) IN GENERAL.—The Postal Service may, in 
accordance with such standards and procedures as the 
Postal Service shall by regulation prescribe, provide 
for a voucher program under which— 
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(A) upon application, the Postal Service 
may defray all or any portion of the costs associ-
ated with conversion from door delivery under 
this section which would otherwise be borne by 
postal patrons; and 
(B) the Postal Service Competitive Products 
Fund is made available for that purpose. 
(2) 
CONFORMING
AMENDMENT.—Section 
2011(a)(2) is amended— 
(A) in subparagraph (A), by striking ‘‘and’’ 
after the semicolon; 
(B) in subparagraph (B), by striking the 
period and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(C) vouchers under the program described in 
section 214(f)(1) of the Postal Reform Act of 2011.’’. 
(g) AUDITS.— 
(1) IN GENERAL.—The Inspector General of the 
United States Postal Service— 
(A) shall conduct an annual audit to deter-
mine whether the Postal Service is in compliance 
with the requirements of subsection (b); and 
(B) shall make such recommendations as the 
Inspector General considers appropriate to im-
prove the administration of such subsection. 
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(2) SUBMISSION.—The audit and recommenda-
tions under paragraph (1) shall be submitted by the 
Inspector General to— 
(A) the Committee on Oversight and Gov-
ernment Reform of the House of Representatives; 
and 
(B) the Committee on Homeland Security 
and Governmental Affairs of the Senate. 
(3) INFORMATION.—Upon request, the Postal 
Service shall furnish such information as the Inspec-
tor General may require in order to carry out this 
subsection. 
(h) SAVINGS REPORT.— 
(1) IN GENERAL.—In the event that a reduction 
in door delivery points is required under this section, 
the Authority shall submit a report to Congress, not 
later than 1 year after the date on which such reduc-
tions commence, describing the cost savings realized to 
the date of such submission and the estimated addi-
tional cost savings anticipated as a result of such re-
ductions occurring after such submission. The report 
shall include— 
(A) the measures taken to achieve the real-
ized savings and the assumptions and methodolo-
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gies used to compute the estimated cost savings; 
and 
(B) information with respect to what addi-
tional measures might be necessary to achieve the 
cost savings required under this section. 
(2) REDUCTION
LIMITATION.—Notwithstanding 
any other provision of this Act, if the Authority deter-
mines that the measures described pursuant to sub-
paragraphs (A) and (B) of paragraph (1) are not fea-
sible, not cost effective, or otherwise detrimental to the 
mail delivery policy of the Postal Service, the Author-
ity shall submit a report to Congress stating any leg-
islative changes recommended for door delivery mod-
ernization procedures under this section, including 
increasing flexibility of this section’s requirements or 
the postponement of further conversion. 
Subtitle C—Establishment and En-
forcement of Financial Plan and 
Budget for the Postal Service 
SEC. 221. DEVELOPMENT OF FINANCIAL PLAN AND BUDGET 
FOR THE POSTAL SERVICE. 
(a) DEVELOPMENT OF FINANCIAL PLAN AND BUDG-
ET.—For each fiscal year for which the Postal Service is 
in a control period, the Postmaster General shall develop 
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and submit to the Authority a financial plan and budget 
for the Postal Service in accordance with this section. 
(b) CONTENTS OF FINANCIAL PLAN AND BUDGET.— 
A financial plan and budget for the Postal Service for a 
fiscal year shall specify the budget for the Postal Service 
as required by section 2009 of title 39, United States Code, 
for the applicable fiscal year and the next 3 fiscal years, 
in accordance with the following requirements: 
(1) The financial plan and budget shall meet the 
requirements described in subsection (c) to promote 
the financial stability of the Postal Service. 
(2) The financial plan and budget shall— 
(A) include the Postal Service’s annual 
budget program (under section 2009 of title 39, 
United States Code) and the Postal Service’s 
plan commonly referred to as its ‘‘Integrated Fi-
nancial Plan’’; 
(B) describe lump-sum expenditures by all 
categories traditionally used by the Postal Serv-
ice; 
(C) describe capital expenditures (together 
with a schedule of projected capital commitments 
and cash outlays of the Postal Service and pro-
posed sources of funding); 
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(D) contain estimates of overall debt (both 
outstanding and anticipated to be issued); and 
(E) contain cash flow and liquidity fore-
casts for the Postal Service at such intervals as 
the Authority may require. 
(3) The financial plan and budget shall include 
a statement describing methods of estimations and 
significant assumptions. 
(4) The financial plan and budget shall include 
any other provisions and shall meet such other cri-
teria as the Authority considers appropriate to meet 
the purposes of this title, including provisions for— 
(A) changes in personnel policies and levels 
for each component of the Postal Service; and 
(B) management initiatives to promote pro-
ductivity, improvement in the delivery of serv-
ices, or cost savings. 
(c) REQUIREMENTS TO PROMOTE FINANCIAL STA-
BILITY.— 
(1) IN GENERAL.—The requirements to promote 
the financial stability of the Postal Service applicable 
to the financial plan and budget for a fiscal year are 
as follows: 
(A) In each fiscal year (following the first 
full fiscal year) in a control period, budgeted ex-
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penditures of the Postal Service for the fiscal 
year involved may not exceed budgeted revenues 
of the Postal Service for the fiscal year involved. 
(B) In each fiscal year in a control period, 
the Postal Service shall make continuous, sub-
stantial progress towards long-term fiscal sol-
vency and shall have substantially greater net 
income than in the previous fiscal year. 
(C) The Postal Service shall provide for the 
orderly liquidation of any supplementary debt 
under section 222. 
(D) The financial plan and budget shall as-
sure the continuing long-term financial stability 
of the Postal Service, as indicated by factors such 
as the efficient management of the Postal Serv-
ice’s workforce and the effective provision of serv-
ices by the Postal Service. 
(2) APPLICATION OF SOUND BUDGETARY PRAC-
TICES.—In meeting the requirement described in 
paragraph (1) with respect to a financial plan and 
budget for a fiscal year, the Postal Service shall apply 
sound budgetary practices, including reducing costs 
and other expenditures, improving productivity, in-
creasing revenues, or a combination of such practices. 
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(3) ASSUMPTIONS BASED ON CURRENT LAW.—In 
meeting the requirements described in paragraph (1) 
with respect to a financial plan and budget for a fis-
cal year, the Postal Service shall base estimates of 
revenues and expenditures on Federal law as in effect 
at the time of the preparation of such financial plan 
and budget. 
SEC. 222. SUPPLEMENTARY BORROWING AUTHORITY DUR-
ING A CONTROL PERIOD. 
(a) IN GENERAL.—Upon the commencement of a con-
trol period, subject to the approval of the Authority, the 
Postal Service is authorized to borrow money and issue and 
sell such obligations as may be necessary to carry out the 
purposes of this title, to the same extent, in the same man-
ner, and subject to the same terms and conditions as if the 
maximum amount allowable under the provisions of section 
2005(a)(2) of title 39, United States Code, for the fiscal year 
involved were equal to the maximum amount which (but 
for this section) would otherwise be allowable under such 
provisions, increased by $10,000,000,000. The authoriza-
tion to issue obligations under this section shall extend for 
a period of not more than 10 years beginning on the date 
of commencement of a control period, as described in section 
202(b). At the end of such a 10-year period, the Postal Serv-
ice shall dispose of real property of the Postal Service gener-
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ating sufficient proceeds to repay any outstanding obliga-
tion incurred under this subsection in its entirety. 
(b) 
EXCLUSION.—The 
last 
sentence 
of 
section 
2005(a)(1) of title 39, United States Code, shall not apply 
with respect to any amounts borrowed or obligations issued 
or sold under authority of this section (which, but for sub-
section (a), would not otherwise have been allowable). 
(c) DEPOSIT.—Any amounts received under this sec-
tion shall be deposited in the Postal Service Fund. 
(d) COLLATERAL.—For the purposes of funds acquired 
under subsection (a), the Postal Service shall provide an 
appropriate level of collateral in the form of pledged Postal 
Service property assets. For each fiscal year in which there 
remain funds made available to the Postal Service under 
subsection (a), the Postal Service shall dispose of real prop-
erty equal to an amount that is at least 10 percent of the 
total funds obligated by the Postal Service under subsection 
(a), and the proceeds of such disposal shall be used to repay 
any outstanding obligation made by the Postal Service 
under subsection (a) in its entirety. 
SEC. 223. PROCESS FOR SUBMISSION AND APPROVAL OF FI-
NANCIAL PLAN AND BUDGET. 
(a) IN GENERAL.—For each fiscal year for which the 
Postal Service is in a control period, the Postmaster Gen-
eral shall submit to the Authority— 
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(1) by February 1 before the start of such fiscal 
year, a preliminary financial plan and budget under 
section 221 for such fiscal year; and 
(2) by August 1 before the start of such fiscal 
year, a final financial plan and budget under section 
221 for such fiscal year. 
(b) REVIEW BY AUTHORITY.—Upon receipt of a finan-
cial plan and budget under subsection (a) (whether prelimi-
nary or final), the Authority shall promptly review such 
financial plan and budget. In conducting the review, the 
Authority may request any additional information it con-
siders necessary and appropriate to carry out its duties 
under this subtitle. 
(c) APPROVAL OF POSTMASTER GENERAL’S FINANCIAL 
PLAN AND BUDGET.— 
(1) IN GENERAL.—If the Authority determines 
that the final financial plan and budget for the fiscal 
year submitted by the Postmaster General under sub-
section (a) meets the requirements of section 221— 
(A) the Authority shall approve the finan-
cial plan and budget and shall provide the Post-
master General, the President, and Congress 
with a notice certifying its approval; and 
(B) the Postmaster General shall promptly 
submit the annual budget program to the Office 
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of Management and Budget pursuant to section 
2009 of title 39, United States Code. 
(2) DEEMED APPROVAL AFTER 30 DAYS.— 
(A) IN GENERAL.—If the Authority has not 
provided the Postmaster General, the President, 
and Congress with a notice certifying approval 
under paragraph (1)(A) or a statement of dis-
approval under subsection (d) before the expira-
tion of the 30-day period which begins on the 
date the Authority receives the financial plan 
and budget from the Postmaster General under 
subsection (a), the Authority shall be deemed to 
have approved the financial plan and budget 
and to have provided the Postmaster General, the 
President, and Congress with the notice certi-
fying approval under paragraph (1)(A). 
(B) EXPLANATION
OF
FAILURE
TO
RE-
SPOND.—If subparagraph (A) applies with re-
spect to a financial plan and budget, the Author-
ity shall provide the Postmaster General, the 
President and Congress with an explanation for 
its failure to provide the notice certifying ap-
proval or the statement of disapproval during 
the 30-day period described in such subpara-
graph. 
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(d) DISAPPROVAL OF POSTMASTER GENERAL’S BUDG-
ET.—If the Authority determines that the final financial 
plan and budget for the fiscal year submitted by the Post-
master General under subsection (a) does not meet the re-
quirements applicable under section 221, the Authority 
shall disapprove the financial plan and budget, and shall 
provide the Postmaster General, the President, and Con-
gress with a statement containing— 
(1) the reasons for such disapproval; 
(2) the amount of any shortfall in the budget or 
financial plan; and 
(3) any recommendations for revisions to the 
budget the Authority considers appropriate to ensure 
that the budget is consistent with the financial plan 
and budget. 
(e) AUTHORITY REVIEW OF POSTMASTER GENERAL’S 
REVISED FINAL FINANCIAL PLAN AND BUDGET.— 
(1) SUBMISSION OF POSTMASTER GENERAL’S RE-
VISED
FINAL
FINANCIAL
PLAN
AND
BUDGET.—Not 
later than 15 days after receiving the statement from 
the Authority under subsection (d), the Postmaster 
General shall promptly adopt a revised final finan-
cial plan and budget for the fiscal year which ad-
dresses the reasons for the Authority’s disapproval 
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cited in the statement, and shall submit such finan-
cial plan and budget to the Authority. 
(2) APPROVAL OF POSTMASTER GENERAL’S RE-
VISED FINAL FINANCIAL PLAN AND BUDGET.—If, after 
reviewing the revised final financial plan and budget 
for a fiscal year submitted by the Postmaster General 
under paragraph (1) in accordance with the proce-
dures described in this section, the Authority deter-
mines that the revised final financial plan and budget 
meets the requirements applicable under section 
221— 
(A) the Authority shall approve the finan-
cial plan and budget and shall provide the Post-
master General, the President, and Congress 
with a notice certifying its approval; and 
(B) the Postmaster General shall promptly 
submit the annual budget program to the Office 
of Management and Budget pursuant to section 
2009 of title 39, United States Code. 
(3) DISAPPROVAL
OF
POSTMASTER
GENERAL’S 
REVISED FINAL FINANCIAL PLAN AND BUDGET.— 
(A) IN GENERAL.—If, after reviewing the 
revised final financial plan and budget for a fis-
cal year submitted by the Postmaster General 
under paragraph (1) in accordance with the pro-
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cedures described in this subsection, the Author-
ity determines that the revised final financial 
plan and budget does not meet the applicable re-
quirements under section 221, the Authority 
shall— 
(i) disapprove the financial plan and 
budget; 
(ii) provide the Postmaster General, 
the President, and Congress with a state-
ment containing the reasons for such dis-
approval and describing the amount of any 
shortfall in the financial plan and budget; 
and 
(iii) approve and recommend a finan-
cial plan and budget for the Postal Service 
which meets the applicable requirements 
under section 221, and submit such finan-
cial plan and budget to the Postmaster Gen-
eral, the President, and Congress. 
(B) SUBMISSION TO OMB.—Upon receipt of 
the recommended financial plan and budget 
under subparagraph (A)(iii), the Postmaster 
General shall promptly submit the recommended 
annual budget program to the Office of Manage-
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ment and Budget pursuant to section 2009 of 
title 39, United States Code. 
(4) DEEMED APPROVAL AFTER 15 DAYS.— 
(A) IN GENERAL.—If the Authority has not 
provided the Postmaster General, the President, 
and Congress with a notice certifying approval 
under paragraph (2)(A) or a statement of dis-
approval under paragraph (3) before the expira-
tion of the 15-day period which begins on the 
date the Authority receives the revised final fi-
nancial plan and budget submitted by the Post-
master General under paragraph (1), the Au-
thority shall be deemed to have approved the re-
vised final financial plan and budget and to 
have provided the Postmaster General, the Presi-
dent, and Congress with the notice certifying ap-
proval described in paragraph (2)(A). 
(B) EXPLANATION
OF
FAILURE
TO
RE-
SPOND.—If subparagraph (A) applies with re-
spect to a financial plan and budget, the Author-
ity shall provide the Postmaster General, the 
President and Congress with an explanation for 
its failure to provide the notice certifying ap-
proval or the statement of disapproval during 
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the 15-day period described in such subpara-
graph. 
(f) DEADLINE FOR TRANSMISSION OF FINANCIAL PLAN 
AND BUDGET BY AUTHORITY.—Notwithstanding any other 
provision of this section, not later than September 30th be-
fore each fiscal year which is in a control period, the Au-
thority shall— 
(1) provide Congress with a notice certifying its 
approval of the Postmaster General’s initial financial 
plan and budget for the fiscal year under subsection 
(c); 
(2) provide Congress with a notice certifying its 
approval of the Postmaster General’s revised final fi-
nancial plan and budget for the fiscal year under 
subsection (e)(2); or 
(3) submit to Congress an approved and rec-
ommended financial plan and budget of the Authority 
for the Postal Service for the fiscal year under sub-
section (e)(3)(A)(iii). 
(g) REVISIONS TO FINANCIAL PLAN AND BUDGET.— 
(1) PERMITTING POSTMASTER GENERAL TO SUB-
MIT REVISIONS.—The Postmaster General may sub-
mit proposed revisions to the financial plan and 
budget for a control period to the Authority at any 
time during the year. 
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(2) PROCESS
FOR
REVIEW, APPROVAL, DIS-
APPROVAL, AND POSTMASTER GENERAL ACTION.—Ex-
cept as provided in paragraph (3), the procedures de-
scribed in subsections (b), (c), (d), and (e) shall apply 
with respect to a proposed revision to a financial 
plan and budget in the same manner as such proce-
dures apply with respect to the original financial 
plan and budget. 
(3) EXCEPTION FOR REVISIONS NOT AFFECTING 
SPENDING.—To the extent that a proposed revision to 
a financial plan and budget adopted by the Post-
master General pursuant to this subsection does not 
increase the amount of spending with respect to any 
account of the Postal Service, the revision shall be-
come effective upon the Authority’s approval of such 
revision. 
SEC. 224. RESPONSIBILITIES OF THE AUTHORITY. 
(a) IN GENERAL.—The Authority shall direct the exer-
cise of the powers of the Postal Service, including— 
(1) determining its overall strategies (both long- 
term and short-term); 
(2) determining its organizational structure, 
particularly for senior management at the level of 
vice president and higher; 
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(3) hiring, monitoring, compensating, and, when 
necessary, replacing senior management at the level of 
vice president and higher, as well as ensuring ade-
quate succession planning for these positions; 
(4) approving major policies, particularly those 
that have an important effect on the Postal Service’s 
financial position and the provision of universal post-
al service; 
(5) approving corporate budgets, financial and 
capital plans, operational and service performance 
standards and targets, human resources strategies, 
collective bargaining strategies, negotiation param-
eters, and collective bargaining agreements, and the 
compensation structure for nonbargaining employees; 
(6) approving substantial capital projects and 
any substantial disposition of capital assets, such as 
surplus property; 
(7) approving changes in rates and classifica-
tions, new products and services, policy regarding 
other substantial matters before the Postal Regulatory 
Commission, and any appeals of its decisions or or-
ders to the Federal courts; 
(8) approving the Postal Service Annual Report, 
Annual Comprehensive Statement, and strategic 
plans, performance plans, and performance program 
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reports under chapter 28 of title 39, United States 
Code; 
(9) formulating and communicating organiza-
tional policy and positions on legislative and other 
public policy matters to Congress and the public; 
(10) ensuring organizational responsiveness to 
oversight by Congress, the Postal Regulatory Commis-
sion, the Treasury of the United States, and other 
audit entities; 
(11) ensuring adequate internal controls and se-
lecting, monitoring, and compensating an inde-
pendent public accounting firm to conduct an annual 
audit of the Postal Service; and 
(12) carrying out any responsibility, not other-
wise listed in this subsection, that was the responsi-
bility of the Board of Governors at any time during 
the 5-year period ending on the date of the enactment 
of this Act. 
(b) REVIEW OF POSTAL SERVICE PROPOSALS.— 
(1) SUBMISSION OF POSTAL SERVICE PROPOSALS 
TO THE AUTHORITY.—During a control period, the 
Postmaster General shall submit to the Authority any 
proposal that has a substantial effect on any item 
listed in subsection (a). 
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(2) PROMPT REVIEW BY AUTHORITY.—Upon re-
ceipt of a proposal from the Postmaster General 
under paragraph (1), the Authority shall promptly 
review the proposal to determine whether it is con-
sistent with the applicable financial plan and budget 
approved under this title. 
(3) ACTIONS BY AUTHORITY.— 
(A) APPROVAL.—If the Authority deter-
mines that a proposal is consistent with the ap-
plicable financial plan and budget, the Authority 
shall notify the Postmaster General that it ap-
proves the proposal. 
(B) FINDING
OF
INCONSISTENCY.—If the 
Authority determines that a proposal is signifi-
cantly inconsistent with the applicable financial 
plan and budget, the Authority shall— 
(i) notify the Postmaster General of its 
finding; 
(ii) provide the Postmaster General 
with an explanation of the reasons for its 
finding; and 
(iii) to the extent the Authority con-
siders appropriate, provide the Postmaster 
General with recommendations for modi-
fications to the proposal. 
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(4) DEEMED APPROVAL.—If the Authority does 
not notify the Postmaster General that it approves or 
disapproves a proposal submitted under this sub-
section during the 7-day period which begins on the 
date the Postmaster General submits the proposal to 
the Authority, the Authority shall be deemed to have 
approved the proposal in accordance with paragraph 
(3)(A). At the option of the Authority, the previous 
sentence shall be applied as if the reference in such 
sentence to ‘‘7-day period’’ were a reference to ‘‘14- 
day period’’ if, during the 7-day period referred to in 
the preceding sentence, the Authority so notifies the 
Postmaster General. 
(c) EFFECT
OF APPROVED FINANCIAL PLAN
AND 
BUDGET ON CONTRACTS AND LEASES.— 
(1) MANDATORY PRIOR APPROVAL FOR CERTAIN 
CONTRACTS AND LEASES.— 
(A) IN GENERAL.—In the case of a contract 
or lease described in subparagraph (B) which is 
proposed to be entered into, renewed, modified, 
or extended by the Postal Service during a con-
trol period, the Postmaster General (or the ap-
propriate officer or agent of the Postal Service) 
shall submit the proposed contract or lease to the 
Authority. The Authority shall review each con-
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tract or lease submitted under this subpara-
graph, and the Postmaster General (or the ap-
propriate officer or agent of the Postal Service) 
may not enter into the contract or lease unless 
the Authority determines that the proposed con-
tract or lease is consistent with the financial 
plan and budget for the fiscal year. 
(B) CONTRACTS AND LEASES DESCRIBED.— 
A contract or lease described in this subpara-
graph is— 
(i) a labor contract entered into 
through collective bargaining; or 
(ii) such other type of contract or lease 
as the Authority may specify for purposes of 
this subparagraph. 
(2) AUTHORITY TO REVIEW OTHER CONTRACTS 
AFTER EXECUTION.— 
(A) IN GENERAL.—In addition to the prior 
approval of certain contracts and leases, the 
Postal Service shall submit to the Authority— 
(i) any Level-Two Post Career Execu-
tive Service employee contract that is in ef-
fect during a control period; and 
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(ii) any collective bargaining agree-
ment entered into by the Postal Service that 
is in effect during a control period. 
Any such contract or agreement shall be sub-
mitted to the Authority upon the commencement 
of a control period and at such other times as the 
Authority may require. 
(B) REVIEW BY AUTHORITY.—The Author-
ity shall review each contract submitted under 
subparagraph (A) to determine if the contract is 
consistent with the financial plan and budget for 
the fiscal year. If the Authority determines that 
the contract is not consistent with the financial 
plan and budget, the Authority shall take such 
actions as are within the Authority’s powers to 
revise the contract. 
SEC. 225. EFFECT OF FINDING NONCOMPLIANCE WITH FI-
NANCIAL PLAN AND BUDGET. 
(a) SUBMISSION OF REPORTS.—Not later than 30 
days after the expiration of each quarter of each fiscal year 
beginning in a control period, the Postmaster General shall 
submit reports to the Authority describing the actual reve-
nues obtained and expenditures made by the Postal Service 
during the quarter with its cash flows during the quarter, 
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and comparing such actual revenues, expenditures, and 
cash flows with the most recent projections for these items. 
(b) ADDITIONAL INFORMATION.—If the Authority de-
termines, based on reports submitted by the Postmaster 
General under subsection (a), independent audits, or such 
other information as the Authority may obtain, that the 
revenues or expenditures of the Postal Service during a con-
trol period are not consistent with the financial plan and 
budget for the year, the Authority shall require the Post-
master General to provide such additional information as 
the Authority determines to be necessary to explain the in-
consistency. 
(c) CERTIFICATION OF VARIANCE.— 
(1) IN
GENERAL.—After requiring the Post-
master General to provide additional information 
under subsection (b), the Authority shall certify to the 
Postmaster General, the President, the Secretary of 
the Treasury, and Congress that the Postal Service is 
at variance with the financial plan and budget un-
less— 
(A) the additional information provides an 
explanation for the inconsistency which the Au-
thority finds reasonable and appropriate; or 
(B)(i) the Postal Service adopts or imple-
ments remedial action (including revising the fi-
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nancial plan and budget pursuant to section 
223(g)) to correct the inconsistency which the 
Authority finds reasonable and appropriate, tak-
ing into account the terms of the financial plan 
and budget; and 
(ii) the Postmaster General agrees to submit 
the reports described in subsection (a) on a 
monthly basis for such period as the Authority 
may require. 
(2) SPECIAL
RULE
FOR
INCONSISTENCIES
AT-
TRIBUTABLE TO ACTS OF CONGRESS.— 
(A) DETERMINATION
BY
AUTHORITY.—If 
the Authority determines that the revenues or ex-
penditures of the Postal Service during a control 
period are not consistent with the financial plan 
and budget for the year as approved by the Au-
thority under section 223 as a result of the terms 
and conditions of any law enacted by Congress 
which affects the Postal Service, the Authority 
shall so notify the Postmaster General. 
(B) CERTIFICATION.—In the case of an in-
consistency described in subparagraph (A), the 
Authority shall certify to the Postmaster Gen-
eral, the President, the Secretary of the Treas-
ury, and Congress that the Postal Service is at 
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variance with the financial plan and budget un-
less the Postal Service adopts or implements re-
medial action (including revising the financial 
plan and budget pursuant to section 202(e)) to 
correct the inconsistency which the Authority 
finds reasonable and appropriate, taking into 
account the terms of the financial plan and 
budget. 
(d) EFFECT OF CERTIFICATION.—If the Authority cer-
tifies to the Secretary of the Treasury that a variance exists, 
the Authority or the Secretary may withhold access by the 
Postal Service to additional supplementary debt authorized 
by this title. 
SEC. 226. RECOMMENDATIONS REGARDING FINANCIAL STA-
BILITY, ETC. 
(a) IN GENERAL.—The Authority may at any time 
submit recommendations to the Postmaster General, the 
President, and Congress on actions the Postal Service or 
any other entity of the Federal Government should take to 
ensure compliance by the Postal Service with a financial 
plan and budget or to otherwise promote the financial sta-
bility, management responsibility, and service delivery effi-
ciency of the Postal Service, including recommendations re-
lating to— 
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(1) the management of the Postal Service’s fi-
nancial affairs, including cash forecasting, informa-
tion technology, placing controls on expenditures for 
personnel, reducing benefit costs, reforming procure-
ment practices, and placing other controls on expend-
itures; 
(2) the relationship between the Postal Service 
and other entities of the Federal Government; 
(3) the structural relationship of subdivisions 
within the Postal Service; 
(4) the modification of existing revenue struc-
tures, or the establishment of additional revenue 
structures; 
(5) the establishment of alternatives for meeting 
obligations to pay for the pensions and retirement 
benefits of current and future Postal Service retirees; 
(6) modifications of services which are the re-
sponsibility of and are delivered by the Postal Serv-
ice; 
(7) modifications of the types of services which 
are delivered by entities other than the Postal Service 
under alternative service delivery mechanisms; 
(8) the effects of Federal Government laws and 
court orders on the operations of the Postal Service; 
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(9) the increased use of a personnel system for 
employees of the Postal Service which is based upon 
employee performance standards; and 
(10) the improvement of personnel training and 
proficiency, the adjustment of staffing levels, and the 
improvement of training and performance of manage-
ment and supervisory personnel. 
(b) RESPONSE TO RECOMMENDATIONS FOR ACTIONS 
WITHIN AUTHORITY OF POSTAL SERVICE.— 
(1) IN
GENERAL.—In the case of any rec-
ommendations submitted under subsection (a) during 
a control period which are within the authority of the 
Postal Service to adopt, not later than 90 days after 
receiving the recommendations, the Postmaster Gen-
eral shall submit a statement to the Authority, the 
President, and Congress which provides notice as to 
whether the Postal Service will adopt the rec-
ommendations. 
(2) IMPLEMENTATION
PLAN
REQUIRED
FOR 
ADOPTED
RECOMMENDATIONS.—If the Postmaster 
General notifies the Authority and Congress under 
paragraph (1) that the Postal Service will adopt any 
of the recommendations submitted under subsection 
(a), the Postmaster General shall include in the state-
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ment a written plan to implement the recommenda-
tion which includes— 
(A) specific performance measures to deter-
mine the extent to which the Postal Service has 
adopted the recommendation; and 
(B) a schedule for auditing the Postal Serv-
ice’s compliance with the plan. 
(3) 
EXPLANATIONS
REQUIRED
FOR
REC-
OMMENDATIONS
NOT
ADOPTED.—If the Postmaster 
General notifies the Authority, the President, and 
Congress under paragraph (1) that the Postal Service 
will not adopt any recommendation submitted under 
subsection (a) which the Postal Service has authority 
to adopt, the Postmaster General shall include in the 
statement explanations for the rejection of the rec-
ommendations. 
(c) IMPLEMENTATION OF REJECTED RECOMMENDA-
TIONS BY AUTHORITY.— 
(1) IN GENERAL.—If the Postmaster General no-
tifies the Authority, the President, and Congress 
under subsection (b)(1) that the Postal Service will 
not adopt any recommendation submitted under sub-
section (a) which the Postal Service has authority to 
adopt, the Authority may by a majority vote of its 
members take such action concerning the rec-
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ommendation as it deems appropriate, after con-
sulting with the Committee on Oversight and Govern-
ment Reform of the House of Representatives and the 
Committee on Homeland Security and Governmental 
Affairs of the Senate. 
(2) EFFECTIVE
DATE.—This subsection shall 
apply with respect to recommendations of the Author-
ity made after the expiration of the 6-month period 
which begins on the date of the commencement of a 
control period. 
SEC. 227. SPECIAL RULES FOR FISCAL YEAR IN WHICH CON-
TROL PERIOD COMMENCES. 
(a) ADOPTION
OF TRANSITION BUDGET.—Notwith-
standing any provision of section 223 to the contrary, in 
the case of a fiscal year in which a control period com-
mences, the following rules shall apply: 
(1) Not later than 45 days after the appointment 
of its members, the Authority shall review the pro-
posed Integrated Financial Plan for the Postal Serv-
ice for such fiscal year and shall submit any rec-
ommendations for modifications to such plan to pro-
mote the financial stability of the Postal Service to 
the Postmaster General, the President, and Congress. 
(2) Not later than 15 days after receiving the 
recommendations of the Authority submitted under 
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paragraph (1), the Postmaster General shall promptly 
adopt a revised budget for the fiscal year (in this sec-
tion referred to as the ‘‘transition budget’’), and shall 
submit the transition budget to the Authority, the 
President, and Congress. 
(3) Not later than 15 days after receiving the 
transition budget from the Postmaster General under 
paragraph (2), the Authority shall submit a report to 
the Postmaster General, the President, and Congress 
analyzing the budget (taking into account any items 
or provisions disapproved by the Postmaster General) 
and shall include in the report such recommendations 
for revisions to the transition budget as the Authority 
considers appropriate to promote the financial sta-
bility of the Postal Service during the fiscal year. 
(b) FINANCIAL PLAN AND BUDGET.— 
(1) DEADLINE FOR SUBMISSION.—For purposes 
of section 223, the Postmaster General shall submit 
the financial plan and budget for the applicable fiscal 
year as soon as practicable after the commencement 
of a control period (in accordance with guidelines es-
tablished by the Authority). 
(2) ADOPTION
BY
POSTMASTER
GENERAL.—In 
accordance with the procedures applicable under sec-
tion 223 (including procedures providing for review 
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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 FINAN-
CIAL PLAN AND BUDGET.—Until the approval of the 
financial plan and budget for the applicable fiscal 
year by the Authority under this subsection, the tran-
sition budget established under subsection (a) shall 
serve as the financial plan and budget adopted under 
this subtitle for purposes of this Act (and any provi-
sion of law amended by this Act) for the applicable 
fiscal year. 
SEC. 228. ASSISTANCE IN ACHIEVING FINANCIAL STA-
BILITY, ETC. 
In addition to any other actions described in this title, 
the Authority may undertake cooperative efforts to assist 
the Postal Service in achieving financial stability and man-
agement efficiency, including— 
(1) assisting the Postal Service in avoiding de-
faults, eliminating and liquidating deficits, main-
taining sound budgetary practices, and avoiding 
interruptions in the delivery of services; 
(2) assisting the Postal Service in improving the 
delivery of services, the training and effectiveness of 
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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 
Government, which would assist the Postal Service in 
complying with an approved financial plan and 
budget under subtitle B. 
SEC. 229. OBTAINING REPORTS. 
The Authority may require the Postmaster General, the 
Chief Financial Officer of the Postal Service, and the In-
spector General of the Postal Service, to prepare and submit 
such reports as the Authority considers appropriate to assist 
it in carrying out its responsibilities under this title, in-
cluding submitting copies of any reports regarding reve-
nues, expenditures, budgets, costs, plans, operations, esti-
mates, and other financial or budgetary matters of the Post-
al Service. 
SEC. 230. REPORTS AND COMMENTS. 
(a) ANNUAL REPORTS TO CONGRESS.—Not later than 
30 days after the last day of each fiscal year which is a 
control year, the Authority shall submit a report to Con-
gress describing— 
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(1) the progress made by the Postal Service in 
meeting the objectives of this title during the fiscal 
year; 
(2) the assistance provided by the Authority to 
the Postal Service in meeting the purposes of this title 
for the fiscal year; and 
(3) any other activities of the Authority during 
the fiscal year. 
(b) REVIEW AND ANALYSIS OF PERFORMANCE AND FI-
NANCIAL ACCOUNTABILITY REPORTS.—The Authority shall 
review each yearly report prepared and submitted by the 
Postmaster General to the Postal Regulatory Commission 
and Congress and shall submit a report to Congress ana-
lyzing the completeness and accuracy of such reports. 
(c) COMMENTS REGARDING ACTIVITIES OF POSTAL 
SERVICE.—At any time during a control period, the Au-
thority may submit a report to Congress describing any ac-
tion taken by the Postal Service (or any failure to act by 
the Postal Service) which the Authority determines will ad-
versely affect the Postal Service’s ability to comply with an 
approved financial plan and budget under subtitle B or will 
otherwise have a significant adverse impact on the best in-
terests of the Postal Service. 
(d) REPORTS ON EFFECT OF FEDERAL LAWS ON THE 
POSTAL SERVICE.—At any time during any year, the Au-
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100 
thority may submit a report to the Postmaster General, the 
President, and Congress on the effect of laws enacted by 
Congress on the financial plan and budget for the year and 
on the financial stability and management efficiency of the 
Postal Service in general. 
(e) MAKING REPORTS PUBLICLY AVAILABLE.—The 
Authority shall make any report submitted under this sec-
tion available to the public, except to the extent that the 
Authority determines that the report contains confidential 
material. 
Subtitle D—Termination of a 
Control Period 
SEC. 231. TERMINATION OF CONTROL PERIOD, ETC. 
(a) IN GENERAL.—After the completion of the require-
ments for the termination of a control period described in 
section 202(b)(4), the Authority shall submit a rec-
ommendation to Congress requesting the termination of 
such control period, the dissolution of the Authority, and 
the reinstatement to the Board of Governors (and the indi-
vidual Governors) of the Postal Service of the authorities 
and responsibilities referred to in section 202(b)(2)(A). 
(b) CONGRESSIONAL APPROVAL.— 
(1) IN GENERAL.—A control period shall not be 
terminated unless a joint resolution approving of the 
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101 
recommendation in subsection (a) is enacted, in ac-
cordance with section 232, before the earlier of— 
(A) the end of the 30-day period beginning 
on the date on which the Authority transmits the 
recommendation to Congress under subsection 
(a); or 
(B) the adjournment of the Congress sine 
die for the session during which such rec-
ommendation is transmitted. 
(2) DAYS OF SESSION.—For purposes of para-
graph (1) and subsections (a) and (c) of section 232, 
the days on which either House of Congress is not in 
session because of an adjournment of more than 3 
days to a day certain shall be excluded in the com-
putation of a period. 
SEC. 
232. 
CONGRESSIONAL 
CONSIDERATION 
OF 
REC-
OMMENDATION. 
(a) TERMS OF THE RESOLUTION.—For purposes of 
this subtitle, the term ‘‘joint resolution’’ means only a joint 
resolution which is introduced within the 10-day period be-
ginning on the date on which the recommendation referred 
to in section 231(a) is received by Congress— 
(1) the matter after the resolving clause of which 
is as follows: ‘‘That Congress approves the rec-
ommendation of the Postal Service Financial Respon-
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102 
sibility and Management Assistance Authority, sub-
mitted by such Authority on ll.’’, the blank space 
being filled in with the appropriate date; 
(2) the title of which is as follows: ‘‘Joint resolu-
tion approving the recommendation of Postal Service 
Financial Responsibility and Management Assistance 
Authority.’’; and 
(3) which does not have a preamble. 
(b) REFERRAL.—A resolution described in subsection 
(a) that is introduced in the House of Representatives or 
the Senate shall be referred to the appropriate committees 
of the House of Representatives or the Senate, respectively. 
(c) DISCHARGE.—If the committee to which a resolu-
tion described in subsection (a) is referred has not reported 
such resolution (or an identical resolution) by the end of 
the 20-day period beginning on the date on which the Au-
thority transmits its recommendation to Congress under 
section 231(a) such committee shall, at the end of such pe-
riod, be discharged from further consideration of such reso-
lution, and such resolution shall be placed on the appro-
priate calendar of the House involved. 
(d) CONSIDERATION.— 
(1) IN GENERAL.—On or after the third day 
after the date on which the committee to which such 
a resolution is referred has reported, or has been dis-
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103 
charged (under subsection (c)) from further consider-
ation of, such a resolution, it is in order (even though 
a previous motion to the same effect has been dis-
agreed to) for any Member of the respective House to 
move to proceed to the consideration of the resolution. 
A Member may make the motion only on the day 
after the calendar day on which the Member an-
nounces to the House concerned the Member’s inten-
tion to make the motion, except that, in the case of 
the House of Representatives, the motion may be 
made without such prior announcement if the motion 
is made by direction of the committee to which the 
resolution was referred. All points of order against the 
resolution (and against consideration of the resolu-
tion) are waived. The motion is highly privileged in 
the House of Representatives and is privileged in the 
Senate and is not debatable. The motion is not subject 
to amendment, or to a motion to postpone, or to a 
motion to proceed to the consideration of other busi-
ness. A motion to reconsider the vote by which the 
motion is agreed to or disagreed to shall not be in 
order. If a motion to proceed to the consideration of 
the resolution is agreed to, the respective House shall 
immediately proceed to consideration of the joint reso-
lution without intervening motion, order, or other 
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104 
business, and the resolution shall remain the unfin-
ished business of the respective House until disposed 
of. 
(2) DEBATE.—Debate on the resolution, and on 
all debatable motions and appeals in connection 
therewith, shall be limited to not more than 2 hours, 
which shall be divided equally between those favoring 
and those opposing the resolution. An amendment to 
the resolution is not in order. A motion further to 
limit debate is in order and not debatable. A motion 
to postpone, or a motion to proceed to the consider-
ation of other business, or a motion to recommit the 
resolution is not in order. A motion to reconsider the 
vote by which the resolution is agreed to or disagreed 
to is not in order. 
(3) VOTE ON FINAL PASSAGE.—Immediately fol-
lowing the conclusion of the debate on a resolution de-
scribed in subsection (a) and a single quorum call at 
the conclusion of the debate if requested in accordance 
with the rules of the appropriate House, the vote on 
final passage of the resolution shall occur. 
(4) APPEALS.—Appeals from the decisions of the 
Chair relating to the application of the rules of the 
Senate or the House of Representatives, as the case 
may be, to the procedure relating to a resolution de-
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105 
scribed in subsection (a) shall be decided without de-
bate. 
(e) CONSIDERATION BY OTHER HOUSE.— 
(1) IN GENERAL.—If, before the passage by one 
House of a resolution of that House described in sub-
section (a), that House receives from the other House 
a resolution described in subsection (a), then the fol-
lowing procedures shall apply: 
(A) The resolution of the other House shall 
not be referred to a committee and may not be 
considered in the House receiving it except in the 
case of final passage as provided in subpara-
graph (B)(ii). 
(B) With respect to a resolution described in 
subsection (a) of the House receiving the resolu-
tion— 
(i) the procedure in that House shall be 
the same as if no resolution had been re-
ceived from the other House; but 
(ii) the vote on final passage shall be 
on the resolution of the other House. 
(2) DISPOSITION OF A RESOLUTION.—Upon dis-
position of the resolution received from the other 
House, it shall no longer be in order to consider the 
resolution that originated in the receiving House. 
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106 
(f) RULES OF THE SENATE AND HOUSE.—This section 
is enacted by Congress— 
(1) as an exercise of the rulemaking power of the 
Senate and House of Representatives, respectively, 
and as such it is deemed a part of the rules of each 
House, respectively, but applicable only with respect 
to the procedure to be followed in that House in the 
case of a resolution described in subsection (a), and 
it supersedes other rules only to the extent that it is 
inconsistent with such rules; and 
(2) with full recognition of the constitutional 
right of either House to change the rules (so far as re-
lating to the procedure of that House) at any time, 
in the same manner, and to the same extent as in the 
case of any other rule of that House. 
TITLE III—POSTAL SERVICE 
WORKFORCE 
Subtitle A—General Provisions 
SEC. 301. MODIFICATIONS RELATING TO DETERMINATION 
OF PAY COMPARABILITY. 
(a) POSTAL POLICY.—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 ‘‘private sector’’. 
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107 
(b) EMPLOYMENT POLICY.—The second sentence of sec-
tion 1003(a) is amended— 
(1) by inserting ‘‘total’’ before ‘‘compensation 
and benefits’’ each place it appears; and 
(2) by inserting ‘‘entire’’ before ‘‘private sector’’. 
(c) CONSIDERATIONS.—For purposes of the amend-
ments made by this section, any determination of ‘‘total 
rates and types of compensation’’ or ‘‘total compensation 
and benefits’’ shall, at a minimum, take into account pay, 
health benefits, retirement benefits, life insurance benefits, 
leave, holidays, and continuity and stability of employ-
ment. 
SEC. 302. LIMITATION ON POSTAL CONTRIBUTIONS UNDER 
FEGLI AND FEHBP. 
Section 1003 is amended by adding at the end the fol-
lowing: 
‘‘(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 certifi-
cation (together with such supporting documentation as the 
Postal Regulatory Commission may require) that contribu-
tions of the Postal Service for such fiscal year will not ex-
ceed— 
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108 
‘‘(A) in the case of life insurance under chapter 
87 of title 5, the Government contributions deter-
mined under section 8708 of such title; and 
‘‘(B) in the case of health insurance under chap-
ter 89 of title 5, the Government contributions deter-
mined under 8906 of such title. 
‘‘(2) This subsection applies with respect to— 
‘‘(A) except as provided in subparagraph (B), 
each fiscal year beginning after September 30, 2013; 
and 
‘‘(B) in the case of officers and employees of the 
Postal Service covered by a collective bargaining 
agreement which is in effect on the date of the enact-
ment of this subsection— 
‘‘(i) each fiscal year beginning after the ex-
piration date of such agreement, including 
‘‘(ii) for the fiscal year in which such expi-
ration date occurs, any portion of such fiscal 
year remaining after such expiration date. 
‘‘(3)(A) If, after reasonable notice and opportunity for 
hearing is afforded to the Postal Service, the Postal Regu-
latory Commission finds that the contributions of the Postal 
Service for a fiscal year will exceed or are exceeding the 
limitation specified in subparagraph (A) or (B) of para-
graph (1), the Commission shall order that the Postal Serv-
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109 
ice take such action as the Commission considers necessary 
to achieve full and immediate compliance with the applica-
ble limitation or limitations. 
‘‘(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 con-
tributions below the level specified by the provision of law 
cited in subparagraph (A) or (B) of paragraph (1), as ap-
plicable.’’. 
SEC. 303. REPEAL OF PROVISION RELATING TO OVERALL 
VALUE OF FRINGE BENEFITS. 
The last sentence of section 1005(f) is repealed. 
SEC. 304. APPLICABILITY OF REDUCTION-IN-FORCE PROCE-
DURES. 
Section 1206 is amended by adding at the end the fol-
lowing: 
‘‘(d) Collective-bargaining agreements between the 
Postal Service and bargaining representatives recognized 
under section 1203, ratified after the date of enactment of 
this subsection, shall contain no provision restricting the 
applicability of reduction-in-force procedures under title 5 
with respect to members of the applicable bargaining unit. 
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110 
‘‘(e) Any collective-bargaining agreement between the 
Postal Service and the bargaining representatives recog-
nized under section 1203 ratified before the date of enact-
ment of this Act that contain any provision violating sub-
section (d) shall be renegotiated with a new collective-bar-
gaining agreement to be ratified or imposed through an ar-
bitration decision under section 1207 within 9 months after 
such date of enactment. 
‘‘(f)(1) If a collective-bargaining agreement between 
the Postal Service and bargaining representatives recog-
nized under section 1203, ratified after the date of enact-
ment of this subsection, includes reduction-in-force proce-
dures which can be applied in lieu of reduction-in-force pro-
cedures under title 5, the Postal Service may, in its discre-
tion, apply with respect to members of the applicable bar-
gaining unit— 
‘‘(A) the alternative procedures (or, if 2 or more 
are agreed to, 1 of the alternative procedures); or 
‘‘(B) the reduction-in-force procedures under title 
5. 
‘‘(2) In no event may, if procedures for the resolution 
of a dispute or impasse arising in the negotiation of a col-
lective-bargaining agreement (whether through binding ar-
bitration or otherwise) are invoked under this chapter, the 
award or other resolution reached under such procedures 
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111 
provide for the elimination of, or the substitution of any 
alternative procedures in lieu of, reduction-in-force proce-
dures under title 5.’’. 
SEC. 305. MODIFICATIONS RELATING TO COLLECTIVE BAR-
GAINING. 
Section 1207 is amended by striking subsections (c) 
and (d) and inserting the following: 
‘‘(c)(1) If no agreement is reached within 30 days after 
the appointment of a mediator under subsection (b), or if 
the parties decide upon arbitration before the 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 mediator appointed under sub-
section (b). 
‘‘(2) Upon receiving a request from either of the parties 
referred to in paragraph (1), the Director of the Federal 
Mediation and Conciliation Service shall provide a list of 
not less than 9 individuals who are well qualified to serve 
as neutral arbitrators. Each person listed shall be an arbi-
trator of nationwide reputation and professional nature, a 
member of the National Academy of Arbitrators, and an 
individual whom the Director has determined to be willing 
and available to serve. If, within 7 days after the list is 
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112 
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 evi-
dence in support of their claims, and an opportunity to 
present their case in person, by counsel, or by other rep-
resentative as they may elect. The hearing shall be con-
cluded no more than 40 days after the arbitration board 
is established. 
‘‘(4) No more than 7 days after the hearing is con-
cluded, each party shall submit to the arbitration board 2 
offer packages, each of which packages shall specify the 
terms of a proposed final agreement. 
‘‘(5) If no agreement is reached within 7 days after 
the last day date for the submission of an offer package 
under paragraph (4), each party shall submit to the arbi-
tration board a single final offer package specifying the 
terms of a proposed final agreement. 
‘‘(6) No later than 3 days after the submission of the 
final offer packages under paragraph (5), the arbitration 
board shall select 1 of those packages as its tentative award, 
subject to paragraph (7). 
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‘‘(7)(A) The arbitration board may not select a final 
offer package under paragraph (6) unless it satisfies each 
of the following: 
‘‘(i) The offer complies with the requirements of 
sections 101(c) and 1003(a). 
‘‘(ii) The offer takes into account the current fi-
nancial condition of the Postal Service. 
‘‘(iii) The offer takes into account the long-term 
financial condition of the Postal Service. 
‘‘(B)(i) If the board unanimously determines, based on 
clear and convincing evidence presented during the hearing 
under paragraph (3), that neither final offer package satis-
fies the conditions set forth in subparagraph (A), the board 
shall by majority vote— 
‘‘(I) select the package that best meets such con-
ditions; and 
‘‘(II) modify the package so selected to the min-
imum extent necessary to satisfy such conditions. 
‘‘(ii) If modification (as described in subparagraph 
(B)(i)(II)) is necessary, the board shall have an additional 
7 days to render its tentative award under this subpara-
graph. 
‘‘(8) The parties may negotiate a substitute award to 
replace the tentative award selected under paragraph (6) 
or rendered under paragraph (7) (as the case may be). If 
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no agreement on a substitute award is reached within 10 
days after the date on which the tentative award is so se-
lected or rendered, the tentative award shall become final. 
‘‘(9) The arbitration board shall review any substitute 
award negotiated under paragraph (8) to determine if it 
satisfies the conditions set forth in paragraph (7)(A). If the 
arbitration board, by a unanimous vote taken within 3 
days after the date on which the agreement on the substitute 
award is reached under paragraph (8), determines that the 
substitute award does not satisfy such conditions, the ten-
tative award shall become final. In the absence of a vote, 
as described in the preceding sentence, the substitute agree-
ment shall become final. 
‘‘(10) If, under paragraph (5), neither party submits 
a final offer package by the last day allowable under such 
paragraph, the arbitration board shall develop and issue 
a final award no later than 20 days after such last day. 
‘‘(11) A final award or agreement under this sub-
section shall be conclusive and binding upon the parties. 
‘‘(12) Costs of the arbitration board and mediation 
shall be shared equally by the Postal Service and the bar-
gaining representative. 
‘‘(d) In the case of a bargaining unit whose recognized 
collective-bargaining representative does not have an agree-
ment with the Postal Service, if the parties fail to reach 
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115 
agreement within 90 days after the commencement of collec-
tive bargaining, a mediator shall be appointed in accord-
ance with the provisions of subsection (b), unless the parties 
have previously agreed to another procedure for a binding 
resolution of their differences. If the parties fail to reach 
agreement within 180 days after the commencement of col-
lective bargaining, an arbitration board shall be established 
to provide conclusive 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 account with-
in the Civil Service Retirement and Disability Fund, an 
amount equal to the absolute value of the amount computed 
as of September 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 section 8423 of 
such title that the Postal Service has not made during 
fiscal years 2011 or 2012, as determined by the Office 
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116 
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 remain in the 
Postal Service Fund after September 30, 2015, such 
amounts shall be used— 
(A) first, to satisfy any supplemental liabil-
ity computed under section 8423(b)(1)(B) of title 
5, United States Code; 
(B) second, to satisfy any supplemental li-
ability computed under section 8348(h) of title 5, 
United States Code; and 
(C) third, to satisfy any obligations of the 
Postal Service under section 2005 of title 39, 
United States Code. 
(c) DEFINITIONS.—For purposes of this section— 
(1) the term ‘‘Civil Service Retirement and Dis-
ability Fund’’ refers to the fund under section 8348 
of title 5, United States Code; and 
(2) the term ‘‘Postal Service Fund’’ refers to the 
fund under section 2003 of title 39, United States 
Code. 
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117 
(d) SENSE OF CONGRESS.—It is the sense of Congress 
that the Postal Service should use any funds under sub-
section (b)(1) for separation 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 trig-
gering date of this section (as defined in subsection (e)(2)), 
section 1005 is amended by striking subsection (c) and in-
serting the following: 
‘‘(c)(1) For purposes of this subsection— 
‘‘(A) the term ‘postal employee’ means an officer 
or employee of the Postal Service 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 Con-
gress’ means— 
‘‘(i) the Committee on Oversight and Gov-
ernment Reform of the House of Representatives; 
and 
‘‘(ii) the Committee on Homeland Security 
and Governmental Affairs of the Senate. 
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‘‘(2) The Postal Service shall design and administer 
a program for the payment of benefits for the disability or 
death of an individual resulting from personal injury sus-
tained while in the performance of such individual’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 representa-
tives; 
‘‘(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 automatic tran-
sition, upon attainment of retirement age, to benefits 
involving, coordinated 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 Management shall 
submit to the appropriate committees of Congress rec-
ommendations for any legislation or administrative 
actions which the Office considers necessary to carry 
out the purposes of this section with respect to any 
matter within the jurisdiction of the Office, including 
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119 
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 appro-
priate committees of Congress recommendations for 
any legislation which the Postal Service considers 
necessary 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 appropriate committees of Congress and shall 
cause to be published in the Federal Register a description 
of the program proposed by the Postal Service for imple-
mentation under section 1005(c) of title 39, United States 
Code, as amended by subsection (a). Included in the notifi-
cation provided under the preceding sentence shall be— 
(1) a detailed statement of the benefits to be of-
fered 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. 
(d) COMMENCEMENT DATE.—The program under sec-
tion 1005(c) of title 39, United States Code, as amended 
by this section— 
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(1) shall begin to operate on such date as the 
Postmaster General shall determine, 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 trig-
gering date; and 
(2) shall apply with respect to amounts payable 
for periods beginning on or after the date on which 
the program begins to operate, irrespective of date of 
the disability or death to which such amounts relate. 
(e) CONDITION PRECEDENT.— 
(1) IN GENERAL.—The preceding provisions of 
this section shall not become effective until the date on 
which a Postal Service Financial Responsibility and 
Management Assistance Authority (established under 
section 202)— 
(A) makes a written determination that 
conditions warrant their implementation; and 
(B) submits such written determination to 
the Postal Service, the Office of Personnel Man-
agement, and the appropriate committees of Con-
gress (within the meaning of the amendment 
made by subsection (a)). 
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121 
(2) TRIGGERING
DATE.—For purposes of this 
section, the term ‘‘triggering date of this section’’ or 
‘‘triggering date’’ means the date described in para-
graph (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 subparagraphs (B) 
through (E) as subparagraph (D) through (G), 
respectively; and 
(B) by inserting after subparagraph (A) the 
following: 
‘‘(B) subject to the limitation under sub-
paragraph (A), establish postal rates to fulfill the 
requirement that each market-dominant class, 
product, and type of mail service (except for an 
experimental product or service) bear the direct 
and indirect postal costs attributable to such 
class, product, or type through reliably identified 
causal relationships plus that portion of all other 
costs of the Postal Service reasonably assignable 
to such class, product, or type; 
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‘‘(C) establish postal rates for each group of 
functionally equivalent agreements between the 
Postal Service 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 agreements shall consist 
of all service agreements that are functionally 
equivalent to each other within the same market- 
dominant product, but shall not include agree-
ments within an experimental product;’’; and 
(2) by adding at the end the following: 
‘‘(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 
2011, the Postal Regulatory Commission shall 
complete a study to determine the quantitative 
impact of the Postal Service’s excess capacity on 
the direct and indirect postal costs attributable 
to any class that bears less than 100 percent of 
its costs attributable (as described in paragraph 
(1)(B)), according to the most recent annual de-
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123 
termination of the Postal Regulatory Commis-
sion under section 3653. 
‘‘(B) REQUIREMENTS.—The study required 
under subparagraph (A) shall— 
‘‘(i) be conducted pursuant to regula-
tions that the Postal Regulatory Commis-
sion shall prescribe within 90 days after the 
date of enactment of the Postal Reform Act 
of 2011, taking into account existing regula-
tions for proceedings to improve the quality, 
accuracy, or completeness of ratemaking in-
formation 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 para-
graph (1)(B)), be updated annually by the 
Postal Service and included in its annual 
report to the Commission under section 
3652, using such methodologies as the Com-
mission shall by regulation prescribe. 
‘‘(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 para-
graph (4) is completed, and at least once in each sub-
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124 
sequent 12-month period, the Postal Service shall es-
tablish 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 incen-
tives 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 para-
graph (1)(B)), according to the most recent an-
nual determination of the Postal Regulatory 
Commission under section 3653, adjusted to ac-
count for the quantitative effect of excess capac-
ity on the costs attributable of the class (as de-
scribed in paragraph (1)(C)). 
‘‘(B) Unused rate authority shall be annu-
ally 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)), ac-
cording to the most recent annual determination 
of the Postal Regulatory Commission under sec-
tion 3653, adjusted to account for the quan-
titative effect of excess capacity on the costs at-
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125 
tributable 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.—Subparagraph (A) of 
section 3622(c)(10) is amended to read as follows: 
‘‘(A) improve the net financial position of 
the Postal Service through reducing Postal Serv-
ice costs or increasing the overall contribution to 
the institutional costs of the Postal Service; 
and’’. 
(c) EXCEPTION.—Section 3622(d) is amended by add-
ing after paragraph (5) (as added by subsection (a)(2)) the 
following: 
‘‘(6) EXCEPTION.—The requirements of para-
graph (1)(B) shall not apply to a market-dominant 
product for which a substantial portion of the prod-
uct’s mail volume consists of inbound international 
mail with terminal dues rates determined by the Uni-
versal Postal Union (and not by bilateral agreements 
or other arrangements).’’. 
SEC. 402. REPEAL OF RATE PREFERENCES FOR QUALIFIED 
POLITICAL COMMITTEES. 
Subsection (e) of section 3626 is repealed. 
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126 
SEC. 403. RATE PREFERENCES FOR NONPROFIT ADVER-
TISING. 
(a) PROVISIONS RELATING
TO FORMER SECTION 
4358(f).—Section 3626(a)(5) is amended by adding at the 
end the following: ‘‘Notwithstanding any other provision of 
this paragraph, the percentage specified in the preceding 
sentence shall be increased by an additional 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 2011, until such percentage reaches 80 per-
cent.’’. 
(b) PROVISIONS RELATING TO FORMER SECTION 4452 
(b) AND (c).—Section 3626(a)(6) is amended by inserting 
after subparagraph (C) the following (as a flush left sen-
tence): 
‘‘Notwithstanding any other provision of this paragraph, 
the percentage specified in subparagraph (A) shall be in-
creased by an additional 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 2011, 
until such percentage reaches 80 percent.’’. 
SEC. 404. STREAMLINED REVIEW OF QUALIFYING SERVICE 
AGREEMENTS FOR COMPETITIVE PRODUCTS. 
Section 3633 is amended by adding at the end the fol-
lowing: 
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‘‘(c) STREAMLINED REVIEW.—Within 90 days after 
the date of the enactment of this subsection, after notice and 
opportunity for public comment, the Postal Regulatory 
Commission shall promulgate (and may from time to time 
thereafter revise) regulations for streamlined 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 functionally equiva-
lent to existing agreements that have collectively covered at-
tributable costs and collectively improved the net financial 
position of the Postal Service. Streamlined review will be 
concluded within 5 working 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 prej-
udice 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 para-
graph (5); and 
(2) by inserting after paragraph (3) the fol-
lowing: 
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‘‘(4) RATES FOR STREAMLINED REVIEW.—In the 
case of rates not of general applicability for competi-
tive 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 considered appro-
priate.’’. 
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 fol-
lowing: 
‘‘(c) Each annual written determination of the Com-
mission under section 3653 shall include the following writ-
ten determinations: 
‘‘(1) Whether each product covered its costs, and 
if it did not, the determination shall state that such 
product is in noncompliance under section 3653(c). 
‘‘(2) For each group of functionally equivalent 
agreements between the Postal Service and users of 
the mail, whether it fulfilled requirements to— 
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129 
‘‘(A) cover attributable costs; and 
‘‘(B) improve the net financial position of 
the Postal Service. 
‘‘(3) Any group of functionally equivalent agree-
ments (as referred to in subparagraph (B)) not meet-
ing subparagraphs (A) and (B) of paragraph (2) 
shall be determined to be in noncompliance under this 
subsection. 
‘‘(4) For purposes of this subsection, a group of 
functionally equivalent agreements (as referred to in 
paragraph (2)) shall consist of all service agreements 
that are functionally equivalent to each other within 
the same market-dominant or competitive product, 
but shall not include agreements within an experi-
mental product.’’. 
SEC. 407. NONPOSTAL SERVICES. 
(a) NONPOSTAL SERVICES.— 
(1) IN GENERAL.—Part IV is amended by add-
ing 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. 
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‘‘§ 3701. Purpose 
‘‘This chapter is intended to enable the Postal Service 
to increase its net revenues through specific nonpostal prod-
ucts and services that are expressly authorized by this chap-
ter. Postal Service revenues and expenses 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 ex-
pressly authorized by this chapter and are not postal 
products or services; 
‘‘(2) the term ‘Postal Service advertising pro-
gram’ means a program, managed by the Postal Serv-
ice, by which the Postal Service receives revenues from 
entities which advertise at Postal Service facilities 
and on Postal Service vehicles; 
‘‘(3) the term ‘Postal Service program for State 
governments’ means a program, managed by the Post-
al Service, by which the Postal Service receives rev-
enue from State governments (including their agen-
cies) for providing services on their behalf at Postal 
Service facilities; 
‘‘(4) the term ‘attributable costs’ has the same 
meaning as is given such term in section 3631; and 
‘‘(5) the term ‘year’ means a fiscal year. 
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131 
‘‘§ 3703. Postal Service advertising program 
‘‘Notwithstanding any other provision of this title, the 
Postal Service may establish and manage a program that 
allows entities to advertise at Postal Service facilities and 
on Postal Service vehicles. Such a program shall be subject 
to the following requirements: 
‘‘(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 required to 
cover a minimum of 200 percent of its attributable 
costs in each year. 
‘‘(3) All advertising expenditures and revenues 
are subject to annual compliance determination (in-
cluding remedies for noncompliance) applicable to 
nonpostal products. 
‘‘(4) Total advertising expenditures and revenues 
must be disclosed in Postal Service annual reports. 
‘‘§ 3704. Postal Service program for State governments 
‘‘(a) IN GENERAL.—Notwithstanding any other provi-
sion of this title, the Postal Service may establish a pro-
gram 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 or raising the quality of 
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132 
such services or by making such services more acces-
sible; 
‘‘(2) do not interfere with or detract from the 
value of postal services, including— 
‘‘(A) the cost and efficiency of postal serv-
ices; and 
‘‘(B) access to postal retail service, such as 
customer waiting time and access to parking; 
and 
‘‘(3) provide a reasonable contribution to the in-
stitutional costs of the Postal Service, defined as re-
imbursement for each service and to each agency cov-
ering at least 150 percent of the attributable costs of 
such service in each year. 
‘‘(b) PUBLIC NOTICE.—At least 90 days before 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 
annual reimbursement to the Postal Service, and the esti-
mated percentage of attributable Postal Service costs that 
will be covered by reimbursement (with documentation to 
support these estimates). The Postal Service shall solicit 
public comment for at least 30 days, with comments posted 
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133 
on its website, followed 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 provision of services under 
this section by a recorded vote, with at least 2⁄3 of its mem-
bership 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 classi-
fied 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 re-
lated information to demonstrate that it satisfied the re-
quirements of subsection (a). Information provided under 
this section shall be according to requirements that the Post-
al Regulatory Commission shall by regulation prescribe. 
‘‘(e) DEFINITIONS.—For the purpose of this section— 
‘‘(1) the term ‘State’ includes the District of Co-
lumbia, the Commonwealth of Puerto Rico, the 
United States Virgin Islands, Guam, American 
Samoa, the Commonwealth of the Northern Mariana 
Islands, and any other territory or possession of the 
United States; and 
‘‘(2) the term ‘United States’, when used in a 
geographical sense, means the States. 
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134 
‘‘§ 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 gov-
ernment agencies within the meaning of section 411, but 
only if such program provides a reasonable contribution to 
the institutional costs of the Postal Service, defined as reim-
bursement by each agency that covers at least 100 percent 
of the attributable costs of all property and service provided 
by the Postal Service in a each year to such agency. 
‘‘(b) CLASSIFICATION OF SERVICES.—For each agency, 
all property and services provided by the Postal Service 
under this section shall be classified as a separate activity 
subject to the requirements of annual reporting under sec-
tion 3706. Information provided under this section shall be 
according to requirements that the Postal Regulatory Com-
mission shall by regulation prescribe. 
‘‘§ 3706. Transparency and accountability for non-
postal services 
‘‘(a) ANNUAL REPORTS TO THE COMMISSION.— 
‘‘(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 re-
port as the Commission may require under subsection 
(b)) which shall analyze costs, revenues, rates, and 
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135 
quality of service for this chapter, using such meth-
odologies as the Commission shall by regulation pre-
scribe, and in sufficient detail to demonstrate compli-
ance with all applicable requirements of this chapter. 
‘‘(2) AUDITS.—The Inspector General shall regu-
larly audit the data collection systems and procedures 
utilized in collecting information and preparing such 
report. The results of any such audit shall be sub-
mitted to the Postal Service and the Postal Regu-
latory Commission. 
‘‘(b) SUPPORTING MATTER.—The Postal Regulatory 
Commission shall have access, in accordance with such reg-
ulations as the Commission shall prescribe, to the working 
papers and any other supporting matter of the Postal Serv-
ice and the Inspector General in connection with any infor-
mation submitted under this section. 
‘‘(c) CONTENT AND FORM OF REPORTS.— 
‘‘(1) IN GENERAL.—The Postal Regulatory Com-
mission shall, by regulation, prescribe the content and 
form of the public reports (and any nonpublic annex 
and supporting matter relating to the report) to be 
provided by the Postal Service under this section. 
Such reports shall be included with the annual com-
pliance determination reported under section 3653. In 
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136 
carrying out this subsection, the Commission shall 
give due consideration to— 
‘‘(A) providing the public with timely, ade-
quate information to assess compliance; 
‘‘(B) avoiding unnecessary or unwarranted 
administrative effort and expense on the part of 
the Postal Service; and 
‘‘(C) protecting the confidentiality of infor-
mation that is commercially sensitive or is ex-
empt from public disclosure under section 552(b) 
of title 5. 
‘‘(2) REVISED
REQUIREMENTS.—The Commis-
sion may, on its own motion or on request of any in-
terested party, initiate proceedings (to be conducted 
in accordance with regulations that the Commission 
shall prescribe) to improve the quality, accuracy, or 
completeness of Postal Service data required by the 
Commission under this subsection whenever it shall 
appear that— 
‘‘(A) the attribution of costs or revenues to 
property or services under this chapter has be-
come significantly inaccurate or can be signifi-
cantly improved; 
‘‘(B) the quality of service data provided to 
the Commission for annual reports under this 
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137 
chapter has become significantly inaccurate or 
can be significantly improved; or 
‘‘(C) such revisions are, in the judgment of 
the Commission, otherwise necessitated by the 
public interest. 
‘‘(d) CONFIDENTIAL INFORMATION.— 
‘‘(1) IN GENERAL.—If the Postal Service deter-
mines that any document or portion of a document, 
or other matter, which it provides to the Postal Regu-
latory Commission in a nonpublic annex under this 
section contains information which is described in 
section 410(c) of this title, or exempt from public dis-
closure under section 552(b) of title 5, the Postal 
Service shall, at the time of providing such matter to 
the Commission, notify the Commission of its deter-
mination, in writing, and describe with particularity 
the documents (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 Com-
mission gains access under this section shall be sub-
ject to paragraphs (2) and (3) of section 504(g) in the 
same way as if the Commission had received notifica-
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138 
tion with respect to such matter under section 
504(g)(1). 
‘‘(e) ANNUAL COMPLIANCE DETERMINATION.— 
‘‘(1) OPPORTUNITY
FOR
PUBLIC
COMMENT.— 
After receiving the reports required under subsection 
(a) for any year, the Postal Regulatory Commission 
shall promptly provide an opportunity for comment 
on such reports by any interested party, and an offi-
cer of the Commission who shall be required to rep-
resent the interests of the general public. 
‘‘(2) DETERMINATION OF COMPLIANCE OR NON-
COMPLIANCE.—Not later than 90 days after receiving 
the submissions required under subsection (a) with re-
spect 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 compliance with applicable provisions of this 
chapter (or regulations promulgated under this chap-
ter). The Postal Regulatory Commission shall issue a 
determination of noncompliance if the requirements 
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 de-
termination shall be to that effect. 
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139 
‘‘(3) NONCOMPLIANCE.—If, for a year, a timely 
written determination of noncompliance is made 
under this chapter, the Postal Regulatory Commission 
shall take appropriate action. If the requirements for 
coverage of attributable costs specified by this chapter 
are not met, the Commission shall, within 60 days 
after the determination, prescribe remedial action to 
restore compliance as soon as practicable, which shall 
also include the full restoration of revenue shortfalls 
during the following fiscal year. The Commission 
may order the Postal Service to discontinue a non-
postal service under section 3703 or 3704 that persist-
ently fails to meet cost coverage requirements. 
‘‘(4) ANY DELIBERATE NONCOMPLIANCE.—In ad-
dition, 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, circumstances, 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 general fund 
of the Treasury of the United States.’’. 
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140 
(2) CLERICAL AMENDMENT.—The table of chap-
ters at the beginning of part IV is amended by adding 
after the item relating 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 following: 
‘‘(6) Nothing in this section shall be considered to pre-
vent the Postal Service from establishing nonpostal products 
and services that are expressly authorized by chapter 37.’’. 
(2) SECTION 411.—The last sentence of section 
411 
is 
amended 
by 
striking 
‘‘including 
reimbursability’’ 
and 
inserting 
‘‘including 
reimbursability within the limitations of chapter 37’’. 
(3) TREATMENT OF EXISTING NONPOSTAL SERV-
ICES.—All nonpostal services continued 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 (a)(1)) and shall be 
subject to the requirements of such chapter. 
SEC. 408. REIMBURSEMENT OF ALASKA BYPASS MAIL 
COSTS. 
(a) COST ESTIMATES BY POSTAL REGULATORY COM-
MISSION.—Section 3651(b) is amended— 
(1) by redesignating paragraph (2) as para-
graph (3); and 
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141 
(2) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) ALASKA BYPASS MAIL COSTS.—In addition 
to the information required under subsection (a), each 
report under this section shall also include, with re-
spect to the period covered by such report, an estimate 
of the costs incurred by the Postal Service in pro-
viding Alaska bypass mail service under section 
5402.’’. 
(b) REIMBURSEMENTS.— 
(1) IN GENERAL.—Chapter 54 is amended by 
adding at the end the following: 
‘‘§ 5404. Reimbursement of Alaska bypass mail costs 
‘‘(a) IN GENERAL.—The State of Alaska, on an annual 
basis, shall make a payment to the Postal Service to reim-
burse the Postal Service for its costs in providing Alaska 
bypass mail service under section 5402 of this title. 
‘‘(b) DATE OF FIRST PAYMENT.—The State of Alaska 
shall make its first payment under subsection (a) on or be-
fore the last day of the first fiscal year of the State of Alaska 
beginning after the date of enactment of this section. 
‘‘(c) PAYMENT AMOUNTS.— 
‘‘(1) 
DETERMINATION
OF
AMOUNTS.—The 
amount of a payment under subsection (a) shall be 
determined based on the most recent cost estimate pre-
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142 
pared by the Postal Regulatory Commission under 
section 3651(b)(2) of this title (in this subsection re-
ferred to as the ‘cost estimate’). 
‘‘(2) FIRST PAYMENT.—The first payment under 
subsection (a) shall be in an amount equal to 20 per-
cent of the cost estimate. 
‘‘(3) SUBSEQUENT PAYMENTS.—Each subsequent 
payment under subsection (a) shall be in an amount 
equal to a percentage of the cost estimate determined 
by adding 20 percent to the percentage due in the 
prior year, except that no payment shall exceed 100 
percent of the cost estimate. 
‘‘(d) NOTICE OF PAYMENT AMOUNTS.—Not later than 
30 days after the date of issuance of a cost estimate by the 
Postal Regulatory Commission under section 3651(b)(2) of 
this title, the Postal Service shall furnish the State of Alaska 
with written notice of the amount of the next payment due 
under subsection (a). 
‘‘(e) DEPOSIT OF PAYMENTS.—Not later than the last 
day of the fiscal year of the State of Alaska in which notice 
of a payment is provided under subsection (d)— 
‘‘(1) the State of Alaska shall transmit the pay-
ment to the Postal Service; and 
‘‘(2) the Postal Service shall deposit the payment 
in the Postal Service Fund.’’. 
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143 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 54 is amended by 
adding at the end the following: 
‘‘5404. Reimbursement of Alaska bypass mail costs.’’. 
SEC. 409. APPROPRIATIONS MODERNIZATION. 
(a) IN GENERAL.—Section 2401 is amended by strik-
ing subsections (b) through (d). 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall be effective with respect to fiscal years be-
ginning after the date of enactment of this Act. 
SEC. 410. RETIREE HEALTH CARE BENEFIT PAYMENT DE-
FERRAL. 
Section 8909a of title 5, United States Code, is amend-
ed— 
(1) in the section heading, by striking ‘‘Ben-
efit’’ and inserting ‘‘Benefits’’; 
(2) in subsection (d)(3)(A)(v), by striking 
‘‘$5,500,000,000’’ and inserting ‘‘$1,000,000,000’’; 
(3) in subsection (d)(3)(A)(ix), by striking 
‘‘$5,700,000,000’’ and inserting ‘‘$7,950,000,000’’; 
and 
(4) in subsection (d)(3)(A)(x), by striking 
‘‘$5,800,000,000’’ and inserting ‘‘$8,050,000,000’’. 
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144 
TITLE V—POSTAL CONTRACTING 
REFORM 
SEC. 501. CONTRACTING PROVISIONS. 
(a) IN GENERAL.—Part I is amended by adding at 
the end the following: 
‘‘CHAPTER 7—CONTRACTING PROVISIONS 
‘‘Sec. 
‘‘701. Definitions. 
‘‘702. Advocate for competition. 
‘‘703. Delegation of contracting authority. 
‘‘704. Posting of noncompetitive purchase requests for noncompetitive contracts. 
‘‘705. Review of ethical issues. 
‘‘706. Ethical restrictions on participation in certain contracting activity. 
‘‘§ 701. Definitions 
‘‘In this chapter— 
‘‘(1) the term ‘contracting officer’ means an em-
ployee of a covered postal entity who has authority to 
enter into a postal contract; 
‘‘(2) the term ‘covered postal entity’ means— 
‘‘(A) the Postal Service; or 
‘‘(B) the Postal Regulatory Commission; 
‘‘(3) the term ‘head of a covered postal entity’ 
means— 
‘‘(A) in the case of the Postal Service, the 
Postmaster General; or 
‘‘(B) in the case of the Postal Regulatory 
Commission, the Chairman of the Postal Regu-
latory Commission; 
‘‘(4) the term ‘postal contract’ means— 
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145 
‘‘(A) in the case of the Postal Service, any 
contract (including any agreement or memo-
randum of understanding) entered into by the 
Postal Service for the procurement of goods or 
services; or 
‘‘(B) in the case of the Postal Regulatory 
Commission, any contract (including any agree-
ment or memorandum of understanding) in an 
amount exceeding the simplified acquisition 
threshold (as defined in section 134 of title 41 
and adjusted under section 1908 of such title) 
entered into by the Postal Regulatory Commis-
sion for the procurement of goods or services; and 
‘‘(5) the term ‘senior procurement executive’ 
means the senior procurement executive of a covered 
postal entity. 
‘‘§ 702. Advocate for competition 
‘‘(a) ESTABLISHMENT AND DESIGNATION.— 
‘‘(1) There is established in each covered postal 
entity an advocate for competition. 
‘‘(2) The head of each covered postal entity shall 
designate for the covered postal entity 1 or more offi-
cers or employees (other than the senior procurement 
executive) to serve as the advocate for competition. 
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146 
‘‘(b) RESPONSIBILITIES.—The advocate for competi-
tion of a covered postal entity shall— 
‘‘(1) be responsible for promoting— 
‘‘(A) the contracting out of functions of the 
covered postal entity that the private sector can 
perform equally well or better, and at lower cost; 
and 
‘‘(B) competition to the maximum extent 
practicable consistent with obtaining best value 
by promoting the acquisition of commercial 
items and challenging barriers to competition; 
‘‘(2) review the procurement activities of the cov-
ered postal entity; and 
‘‘(3) prepare and transmit the annual report re-
quired under subsection (c). 
‘‘(c) ANNUAL REPORT.— 
‘‘(1) PREPARATION.—The advocate for competi-
tion of a covered postal entity shall prepare an an-
nual report describing the following: 
‘‘(A) The activities of the advocate under 
this section. 
‘‘(B) Initiatives required to promote con-
tracting out and competition. 
‘‘(C) Barriers to contracting out and com-
petition. 
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147 
‘‘(D) In the case of the report prepared by 
the competition advocate of the Postal Service, 
the number of waivers made by the Postal Serv-
ice under section 704(c). 
‘‘(2) TRANSMISSION.—The report under this sub-
section shall be transmitted— 
‘‘(A) to Congress; 
‘‘(B) to the head of the postal entity; 
‘‘(C) to the senior procurement executive of 
the entity; 
‘‘(D) in the case of the competition advocate 
of the Postal Service, to each member of the Post-
al Service Board of Governors; and 
‘‘(E) in the case of the competition advocate 
of the Postal Regulatory Commission, to each of 
the Commissioners of the Commission. 
‘‘§ 703. Delegation of contracting authority 
‘‘(a) IN GENERAL.— 
‘‘(1) POLICY.—Not later than 60 days after the 
date of enactment of this chapter, the head of each 
covered postal entity shall issue a policy on con-
tracting officer delegations of authority for postal con-
tracts for the covered postal entity. 
‘‘(2) CONTENTS.—The policy issued under para-
graph (1) shall require that— 
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