Postal Service Reform Act of 2021
Bill: S.1720 | Sponsor: Sen. Peters, Gary C. (D-MI)
Policy area: Government Operations and Politics

Summary:
Postal Service Reform Act of 2021
This bill addresses the finances and operations of the U.S. Postal Service (USPS).
The bill requires the Office of Personnel Management to establish, within the Federal Employees Health Benefits Program, the Postal Service Health Benefits Program for USPS employees and retirees and provides for coordinated enrollment of retirees under this program and Medicare. The bill repeals the requirement that the USPS annually prepay future retirement health benefits.
Additionally, the USPS may establish a program to enter into agreements with an agency of any state government, local government, or tribal government, and with other government agencies, to provide certain nonpostal products and services that reasonably contribute to the costs of the USPS and meet other specified criteria.
The USPS must develop and maintain a publicly available dashboard to track service performance and must report regularly on its operations and financial condition.
The bill requires mail delivery to occur at least six days a week.
The Postal Regulatory Commission must annually submit to the USPS a budget of its expenses. It must also conduct a study to identify the causes and effects of postal inefficiencies relating to flats (e.g., large envelopes).
The USPS Office of Inspector General shall perform oversight of the Postal Regulatory Commission.

To provide stability to and enhance the services of the United States 
                Postal Service, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Postal Service 
Reform Act of 2021''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
               TITLE I--POSTAL SERVICE FINANCIAL REFORMS

Sec. 101. Postal Service Health Benefits Program.
Sec. 102. USPS Fairness Act.
Sec. 103. Nonpostal services.
              TITLE II--POSTAL SERVICE OPERATIONAL REFORMS

Sec. 201. Performance targets and transparency.
Sec. 202. Integrated delivery network.
Sec. 203. Review of Postal Service cost attribution guidelines.
Sec. 204. Rural newspaper sustainability.
Sec. 205. Funding of Postal Regulatory Commission.
Sec. 206. Flats operations study and reform.
Sec. 207. Reporting requirements.
Sec. 208. Postal Service transportation selection policy revisions.
Sec. 209. USPS Inspector General oversight of Postal Regulatory 
                            Commission.

SEC. 2. DEFINITIONS.

    (a) Commission.--In this Act, the term ``Commission'' means the 
Postal Regulatory Commission.
    (b) Terms Defined in Title 39, United States Code.--In this Act, 
the terms ``competitive product'', ``market-dominant product'', and 
``Postal Service'' have the meanings given those terms in section 102 
of title 39, United States Code.

               TITLE I--POSTAL SERVICE FINANCIAL REFORMS

SEC. 101. POSTAL SERVICE HEALTH BENEFITS PROGRAM.

    (a) Establishment.--
            (1) In general.--Chapter 89 of title 5, United States Code, 
        is amended by inserting after section 8903b the following:
``Sec. 8903c. Postal Service Health Benefits Program
    ``(a) Definitions.--In this section--
            ``(1) the term `covered Medicare individual' means an 
        individual who is entitled to benefits under Medicare part A, 
        but excluding an individual who is eligible to enroll in 
        Medicare part A under section 1818 or 1818A of the Social 
        Security Act (42 U.S.C. 1395i-2, 1395i-2a);
            ``(2) the term `initial contract year' means the contract 
        year beginning in January 2023;
            ``(3) the term `initial participating carrier' means a 
        carrier that enters into a contract with the Office to 
        participate in the Postal Service Health Benefits Program 
        during the initial contract year;
            ``(4) the term `Medicare part A' means part A of title 
        XVIII of the Social Security Act (42 U.S.C. 1395c et seq.);
            ``(5) the term `Medicare part B' means part B of title 
        XVIII of the Social Security Act (42 U.S.C. 1395j et seq.);
            ``(6) the term `Office' means the Office of Personnel 
        Management;
            ``(7) the term `Postal Service' means the United States 
        Postal Service;
            ``(8) the term `Postal Service annuitant' means an 
        annuitant enrolled in a health benefits plan under this chapter 
        whose Government contribution is paid pursuant to the 
        requirements of section 8906(g)(2);
            ``(9) the term `Postal Service employee' means an employee 
        of the Postal Service enrolled in a health benefits plan under 
        this chapter whose Government contribution is paid by the 
        Postal Service;
            ``(10) the term `Postal Service Medicare covered annuitant' 
        means an individual who--
                    ``(A) is a Postal Service annuitant; and
                    ``(B) is a covered Medicare individual;
            ``(11) the term `Program' means the Postal Service Health 
        Benefits Program established under subsection (c);
            ``(12) the term `Program plan' means a health benefits plan 
        offered under the Program; and
            ``(13) the definitions set forth in section 8901 shall 
        apply.
    ``(b) Application.--The requirements under this section shall--
            ``(1) apply to the initial contract year and each contract 
        year thereafter; and
            ``(2) supersede any other provision of this chapter 
        inconsistent with those requirements, as determined by the 
        Office.
    ``(c) Establishment of the Postal Service Health Benefits 
Program.--
            ``(1) In general.--
                    ``(A) Establishment.--The Office shall establish, 
                within the Federal Employees Health Benefits Program, 
                the Postal Service Health Benefits Program under which 
                the Office contracts with carriers to offer health 
                benefits plans as described under this section.
                    ``(B) Applicability of chapter requirements to 
                contracts.--Except as otherwise provided in this 
                section, any contract described in subparagraph (A) 
                shall be consistent with the requirements of this 
                chapter for contracts under section 8902 with carriers 
                to offer health benefits plans other than under this 
                section.
                    ``(C) Program plans and participation.--The Program 
                shall--
                            ``(i) to the greatest extent practicable, 
                        include plans offered by--
                                    ``(I) each carrier for which the 
                                total enrollment in the plans provided 
                                under this chapter includes, in the 
                                contract year beginning in January 
                                2022, 1,500 or more enrollees who are 
                                Postal Service employees or Postal 
                                Service annuitants; and
                                    ``(II) any other carrier determined 
                                appropriate by the Office;
                            ``(ii) be available for participation by 
                        Postal Service employees and Postal Service 
                        annuitants, in accordance with subsection (d);
                            ``(iii) provide for enrollment in a plan as 
                        an individual, for self plus one, or for self 
                        and family; and
                            ``(iv) not be available for participation 
                        by an individual who is not a Postal Service 
                        employee or Postal Service annuitant (except as 
                        a member of family of such an employee or 
                        annuitant or as provided under paragraph (5)).
            ``(2) Separate postal service risk pool.--The Office shall 
        ensure that each Program plan includes rates that reasonably 
        and equitably reflect the cost of benefits provided to a risk 
        pool consisting solely of Postal Service employees, Postal 
        Service annuitants, and covered members of family of such 
        employees and annuitants (regardless of the health plan, 
        coverage, or benefit program in which such an employee, 
        annuitant, or member of family is enrolled), taking into 
        specific account the change in benefits cost for the Program 
        plan due to the Medicare enrollment requirements under 
        subsection (e) and any savings or subsidies resulting from 
        subsection (f).
            ``(3) Actuarially equivalent coverage.--The Office shall 
        ensure that each carrier participating in the Postal Service 
        Health Benefits Program provides coverage under the Program 
        plans offered by the carrier that is actuarially equivalent, as 
        determined by the Office, to the coverage that the carrier 
        provides under the health benefits plans offered by the carrier 
        under this chapter that are not Program plans.
            ``(4) Applicability of federal employees health benefits 
        program requirements.--Except as otherwise set forth in this 
        section, all provisions of this chapter applicable to health 
        benefits plans offered by carriers under section 8903 or 8903a 
        shall apply to plans offered under the Program.
            ``(5) Application of continuation coverage.--In accordance 
        with rules established by the Office, section 8905a shall apply 
        to health benefits plans offered under this section in the same 
        manner as that section applies to other health benefits plans 
        offered under this chapter.
    ``(d) Election of Coverage.--
            ``(1) In general.--Except as provided in paragraph (2), 
        each Postal Service employee and Postal Service annuitant who 
        elects to receive health benefits coverage under this chapter--
                    ``(A) shall be subject to the requirements of this 
                section; and
                    ``(B) may not enroll in any other health benefits 
                plan offered under any other section of this chapter.
            ``(2) Exceptions.--
                    ``(A) Lack of geographic coverage.--An individual 
                who is a Postal Service employee or Postal Service 
                annuitant may enroll in a health benefits plan offered 
                under any other section of this chapter if the 
                individual resides in a geographic area for which there 
                is not a Program plan in which the individual may 
                enroll.
                    ``(B) Annuitants as of program inception.--
                            ``(i) Current medicare covered 
                        annuitants.--
                                    ``(I) In general.--Subject to 
                                subclause (II), in the case of an 
                                individual who, as of January 1, 2023, 
                                is a Postal Service Medicare covered 
                                annuitant who has not enrolled in both 
                                Medicare part A and Medicare part B, 
                                the individual--
                                            ``(aa) may enroll in a 
                                        health benefits plan offered 
                                        under any other section of this 
                                        chapter; and
                                            ``(bb) may not enroll in a 
                                        Program plan.
                                    ``(II) Program plan enrollment 
                                following medicare parts a and b 
                                enrollment.--In the case of an 
                                individual described in subclause (I) 
                                who after January 1, 2023, is enrolled 
                                in both Medicare part A and Medicare 
                                part B, beginning with the first 
                                contract year beginning after the date 
                                as of which the individual is enrolled 
                                in both Medicare part A and Medicare 
                                part B--
                                            ``(aa) subclause (I) shall 
                                        no longer apply to the 
                                        individual; and
                                            ``(bb) the individual may 
                                        receive health benefits under 
                                        this chapter only through a 
                                        Program plan.
                            ``(ii) Pre-medicare annuitants.--
                                    ``(I) In general.--Subject to 
                                subclause (II), an individual who, as 
                                of January 1, 2023, is a Postal Service 
                                annuitant and is not a Postal Service 
                                Medicare annuitant (for a reason other 
                                than eligibility to enroll in Medicare 
                                part A under section 1818 or 1818A of 
                                the Social Security Act (42 U.S.C. 
                                1395i-2, 1395i-2a)) may enroll in--
                                            ``(aa) a Program plan; or
                                            ``(bb) a health benefits 
                                        plan offered under any other 
                                        section of this chapter.
                                    ``(II) Exception.--In the case of 
                                an individual described in subclause 
                                (I) who enrolls in a Program plan for 
                                any contract year beginning on or after 
                                the date on which the individual 
                                becomes a Postal Service Medicare 
                                covered annuitant, beginning with that 
                                contract year--
                                            ``(aa) subclause (I) shall 
                                        no longer apply to the 
                                        individual; and
                                            ``(bb) the individual may 
                                        receive health benefits under 
                                        this chapter only through 
                                        enrollment in a Program plan.
                    ``(C) Certain employees as of program inception.--
                            ``(i) Legacy coverage.--A Postal Service 
                        employee who is enrolled in a health benefits 
                        plan under this chapter for the contract year 
                        immediately preceding the initial contract year 
                        that is not a health benefits plan offered by 
                        an initial participating carrier may enroll in 
                        a Program plan or a health benefits plan 
                        offered under any other section of this 
                        chapter, except that--
                                    ``(I) if the Postal Service 
                                employee changes enrollment to a 
                                different health benefits plan under 
                                this chapter during the open season for 
                                the initial contract year, or after the 
                                start of the initial contract year, the 
                                Postal Service employee may only enroll 
                                in a Program plan;
                                    ``(II) if the health benefits plan 
                                in which the employee is enrolled for 
                                the contract year becomes available as 
                                a Program plan, the Postal Service 
                                employee may only enroll in a Program 
                                plan; and
                                    ``(III) upon becoming a Postal 
                                Service annuitant, if the Postal 
                                Service employee elects to continue 
                                coverage under this chapter, the Postal 
                                Service employee shall enroll in a 
                                Program plan during the open season 
                                that is--
                                            ``(aa) being held when the 
                                        Postal Service employee becomes 
                                        a Postal Service annuitant; or
                                            ``(bb) if the date on which 
                                        the Postal Service employee 
                                        becomes a Postal Service 
                                        annuitant falls outside of an 
                                        open season, the first open 
                                        season following that date.
                            ``(ii) Current employees aged 64 and 
                        over.--
                                    ``(I) In general.--Subject to 
                                subclause (II), an individual who, as 
                                of January 1, 2023, is a Postal Service 
                                employee and is not less than 64 years 
                                of age may enroll in--
                                            ``(aa) a Program plan; or
                                            ``(bb) a health benefits 
                                        plan offered under any other 
                                        section of this chapter.
                                    ``(II) Exception.--In the case of 
                                an individual described in subclause 
                                (I) who enrolls in a Program plan for 
                                any contract year beginning on or after 
                                the date on which the individual 
                                becomes a Postal Service Medicare 
                                covered annuitant, beginning with that 
                                contract year--
                                            ``(aa) subclause (I) shall 
                                        no longer apply to the 
                                        individual; and
                                            ``(bb) the individual may 
                                        receive health benefits under 
                                        this chapter only through 
                                        enrollment in a Program plan.
                    ``(D) Certain other annuitants.--
                            ``(i) Annuitants and family members 
                        excluded from premium-free medicare part a.--
                                    ``(I) In general.--Subject to 
                                subclause (II), a Postal Service 
                                annuitant who is eligible to enroll in 
                                Medicare Part A under section 1818 or 
                                1818A of the Social Security Act (42 
                                U.S.C. 1395i-2, 1395i-2a) may enroll in 
                                a Program plan or a health benefits 
                                plan offered under any other section of 
                                this chapter if the annuitant--
                                            ``(aa) is eligible to 
                                        enroll in Medicare part A under 
                                        such section 1818 or 1818A; or
                                            ``(bb) includes in the 
                                        annuitant's plan enrollment 1 
                                        or more family members who are 
                                        eligible to enroll in Medicare 
                                        part A under such section 1818 
                                        or 1818A.
                                    ``(II) Exception.--In the case of 
                                an annuitant described in subclause (I) 
                                who enrolls in a Program plan for any 
                                contract year beginning on or after the 
                                date on which the annuitant or any 
                                member of family covered by the 
                                enrollment becomes eligible to enroll 
                                in Medicare part A, beginning with that 
                                contract year--
                                            ``(aa) subclause (I) shall 
                                        no longer apply to the 
                                        annuitant; and
                                            ``(bb) the annuitant may 
                                        receive health benefits under 
                                        this chapter only through 
                                        enrollment in a Program plan.
                            ``(ii) Limited or redundant coverage.--An 
                        individual who is a Postal Service annuitant 
                        may enroll in a Program plan (subject to 
                        subsection (e) of this section and to sections 
                        226(j) and 1837(o)(2) of the Social Security 
                        Act) or a health benefits plan offered under 
                        any other section of this chapter for any 
                        contract year in which the annuitant or a 
                        member of family covered by the enrollment, 
                        respectively, is a covered Medicare individual 
                        and--
                                    ``(I) the annuitant or family 
                                member, respectively, resides in an 
                                area where the Office has determined 
                                that no Medicare providers are 
                                available;
                                    ``(II) the annuitant receives 
                                comprehensive medical coverage provided 
                                by the Department of Veterans Affairs 
                                under subchapter II of chapter 17 of 
                                title 38, United States Code; or
                                    ``(III) the annuitant receives 
                                comprehensive medical coverage provided 
                                by the Indian Health Service under the 
                                Indian Health Care Improvement Act (25 
                                U.S.C. 1601 et seq.).
                            ``(iii) Regulations.--Not later than 90 
                        days after the date of enactment of this 
                        section, the Office shall, in consultation with 
                        the Secretary of Health and Human Services, the 
                        Secretary of Veterans Affairs, and the 
                        Postmaster General, promulgate any regulations 
                        necessary to implement this subparagraph.
    ``(e) Requirement of Medicare Enrollment for Certain Annuitants and 
Their Family Members.--
            ``(1) Annuitants.--Except as provided under subsection 
        (d)(2), a Postal Service Medicare covered annuitant may not 
        enroll in a Program plan unless the annuitant is enrolled in 
        both Medicare part A and Medicare part B.
            ``(2) Medicare covered family members.--In the case of a 
        Postal Service annuitant who is required under paragraph (1) to 
        enroll in Medicare part A and Medicare part B in order to be 
        able to enroll in a Program plan, if a member of family of the 
        Postal Service annuitant is a covered Medicare individual or is 
        eligible to enroll in Medicare Part A under section 1818 or 
        1818A of the Social Security Act (42 U.S.C. 1395i-2, 1395i-2a), 
        that member of family may not enroll in a Program plan as a 
        member of family of the Postal Service annuitant unless that 
        member of family is enrolled in both Medicare part A and 
        Medicare part B.
            ``(3) Process for coordinated election of medicare 
        enrollment.--The Office shall establish a process under which--
                    ``(A) Postal Service annuitants and members of 
                family who are subject to the requirements of paragraph 
                (1) or (2)--
                            ``(i) are informed, prior to enrollment 
                        under this section, of those requirements; and
                            ``(ii) receive requests for any additional 
                        information necessary for enrollment in 
                        writing; and
                    ``(B) the Office provides the Secretary of Health 
                and Human Services and the Commissioner of Social 
                Security in a timely manner with any information with 
                respect to those annuitants and members of family and 
                that election that may be required to effect their 
                enrollment and coverage under Medicare part A, Medicare 
                part B, and this section in a timely manner, including 
                to effect deemed enrollments, if applicable under 
                sections 226(j) and 1837(o) of the Social Security Act, 
                for such continuous period as such annuitant or member 
                of family involved otherwise maintains eligibility for 
                enrollment under Medicare part A and Medicare part B, 
                to have elected to be enrolled under such part (in 
                accordance with such sections) in connection with the 
                enrollment in a Program plan under this section.
    ``(f) Medicare Coordination.--
            ``(1) In general.--The Office shall require each Program 
        plan to provide benefits for covered Medicare individuals (and 
        individuals eligible to enroll in Medicare part A pursuant to 
        section 1818 or 1818A of the Social Security Act (42 U.S.C. 
        1395i-2, 1395i-2a)) pursuant to the same coordination of 
        benefits method used in connection with plans offered under any 
        other section of this chapter.
            ``(2) Medicare part d prescription drug benefits.--The 
        Office shall require each Program plan to provide prescription 
        drug benefits to any Postal Service annuitant and member of 
        family of such annuitant who is a part D eligible individual 
        (as defined in section 1860D-1(a)(3)(A) of the Social Security 
        Act (42 U.S.C. 1395w-101(a)(3)(A))) through employment-based 
        retiree health coverage (as defined in section 1860D-22(c)(1) 
        of that Act (42 U.S.C. 1395w-132(c)(1))) through a prescription 
        drug plan (as defined in section 1860D-41(a)(14) of that Act 
        (42 U.S.C. 1395w-151(a)(14))).
    ``(g) Postal Service Contribution.--
            ``(1) In general.--Subject to subsection (i), for purposes 
        of applying section 8906(b) to the Postal Service, the weighted 
        average shall be calculated in accordance with paragraphs (2) 
        and (3).
            ``(2) Weighted average calculation.--Not later than October 
        1 of each year (beginning with 2022), the Office shall 
        determine the weighted average of the rates established 
        pursuant to subsection (c)(2) for Program plans that will be in 
        effect during the following contract year with respect to--
                    ``(A) enrollments for self only;
                    ``(B) enrollments for self plus one; and
                    ``(C) enrollments for self and family.
            ``(3) Weighting in computing rates for initial contract 
        year.--In determining the weighted average of the rates for the 
        initial contract year under paragraph (2), the Office shall 
        take into account (for purposes of section 8906(a)(2)) the 
        enrollment of Postal Service employees and annuitants in the 
        health benefits plans offered by the initial participating 
        carriers as of March 31, 2022.
    ``(h) Reserves.--
            ``(1) Separate reserves.--
                    ``(A) In general.--The Office shall ensure that 
                each Program plan maintains separate reserves 
                (including a separate contingency reserve) with respect 
                to the enrollees in the Program plan in accordance with 
                section 8909, subject to subparagraph (B) of this 
                paragraph.
                    ``(B) Applicability of section 8909 to contingency 
                reserves.--Each provision of section 8909 relating to 
                contingency reserves shall apply to contingency 
                reserves of Program plans in the same manner as to the 
                contingency reserves of other plans under this chapter, 
                except to the extent that the provision is inconsistent 
                with the requirements of this subsection.
                    ``(C) References.--For purposes of the Program, 
                each reference to `the Government' in section 8909 
                shall be deemed to be a reference to the Postal 
                Service.
                    ``(D) Amounts to be credited.--The reserves 
                (including the separate contingency reserve) maintained 
                by each Program plan shall be credited with a 
                proportionate amount of the funds in the reserves for 
                health benefits plans offered by the carrier.
            ``(2) Discontinuation of program plan.--In applying section 
        8909(e) relating to a Program plan that is discontinued, the 
        Office shall credit the separate Postal Service contingency 
        reserve maintained under paragraph (1) for that plan only to 
        the separate Postal Service contingency reserves of the Program 
        plans continuing under this chapter.
    ``(i) No Effect on Existing Law.--Nothing in this section shall be 
construed as affecting section 1005(f) of title 39 regarding 
variations, additions, or substitutions to the provisions of this 
chapter.
    ``(j) Health Benefits Education Program.--
            ``(1) Establishment.--Not later than 180 days after the 
        date of enactment of this section, the Postal Service shall 
        establish a Health Benefits Education Program.
            ``(2) Requirements.--Under the Health Benefits Education 
        Program established under paragraph (1), the Postal Service 
        shall--
                    ``(A) notify annuitants and employees of the Postal 
                Service about the Postal Service Health Benefits 
                Program established under subsection (c)(1);
                    ``(B) provide information regarding the Postal 
                Service Health Benefits Program to the annuitants and 
                employees described in subparagraph (A), including--
                            ``(i) a description of the health care 
                        options available under the Program;
                            ``(ii) the enrollment provisions of 
                        subsection (d); and
                            ``(iii) the requirement that annuitants and 
                        their family members be enrolled in Medicare 
                        under subsection (e); and
                    ``(C) in coordination with the Centers for Medicare 
                & Medicaid Services and the Commissioner of Social 
                Security, respond and provide answers to any inquiry 
                from such employees and annuitants about the Postal 
                Service Health Benefits Program or Medicare enrollment.
            ``(3) OPM information.--The Office shall timely provide the 
        Postal Service with any information that the Postal Service 
        determines to be necessary to conduct the Health Benefits 
        Education Program under this subsection.''.
            (2) Technical and conforming amendments.--
                    (A) Section 8903(1) of title 5, United States Code, 
                is amended by striking ``two levels of benefits'' and 
                inserting ``2 levels of benefits for enrollees under 
                this chapter generally and 2 levels of benefits for 
                enrollees under the Postal Service Health Benefits 
                Program established under section 8903c''.
                    (B) The table of sections for chapter 89 of title 
                5, United States Code, is amended by inserting after 
                the item relating to section 8903b the following:

``8903c. Postal Service Health Benefits Program.''.
    (b) Coordination With Medicare.--
            (1) Medicare part a.--Section 226 of the Social Security 
        Act (42 U.S.C. 426) is amended by adding at the end the 
        following new subsection:
    ``(j)(1) In the case of an individual who--
            ``(A) on or after January 1, 2023, is--
                    ``(i) a Postal Service employee;
                    ``(ii) a Postal Service annuitant who is not a 
                Postal Service Medicare covered annuitant; or
                    ``(iii) a member of family of a Postal Service 
                employee or of a Postal Service annuitant and who is 
                not described in section 1837(o)(1) of this Act; and
            ``(B) enrolls in a Program plan under section 8903c of 
        title 5, United States Code,
such individual is deemed to be enrolled under this part, regardless of 
whether such individual has filed an application under subparagraph (A) 
or (C) of subsection (a)(2).
    ``(2) Entitlement to hospital benefits under part A by reason of 
paragraph (1) begins as of--
            ``(A) in the case of an individual who is a Postal Service 
        employee or a Postal Service annuitant who is eligible to 
        become a Postal Service Medicare covered annuitant, the date on 
        which the individual becomes a Postal Service Medicare covered 
        annuitant or the date of enrollment in a Program plan, 
        whichever is later;
            ``(B) in the case of an individual who is eligible to 
        enroll under section 1818 or 1818A, the date on which the 
        individual attains such eligibility or the date of enrollment 
        in a Program plan whichever is later; and
            ``(C) in the case of an individual who is described in 
        paragraph (1)(A)(iii) and is eligible to become a covered 
        Medicare individual, as of the first date the individual 
        becomes a covered Medicare individual or the date of enrollment 
        in a Program plan, whichever is later.
    ``(3) The definitions in section 8903c(a) of title 5, United States 
Code, shall apply for purposes of this subsection.
    ``(4) Nothing in this subsection shall be construed to deprive any 
individual of any other method or period of enrollment to which such 
individual is entitled under this section.''.
            (2) Medicare part b.--
                    (A) Enrollment.--Section 1837 of the Social 
                Security Act (42 U.S.C. 1395p) is amended by adding at 
                the end the following new subsection:
    ``(o)(1) In the case of an individual who--
            ``(A) as of January 1, 2023, is--
                    ``(i) a Postal Service Medicare covered annuitant; 
                or
                    ``(ii) a member of family of a Postal Service 
                employee or of a Postal Service annuitant and is a 
                covered Medicare individual;
            ``(B) intends to enroll in a Program plan under section 
        8903c of title 5, United States Code, for the initial contract 
        year; and
            ``(C) is not enrolled under this part,
the individual may elect to be enrolled under this part during a 
special enrollment period during the 3-month period beginning on 
January 1, 2023.
    ``(2) In the case of an individual who--
            ``(A) on or after January 1, 2023, is--
                    ``(i) a Postal Service employee;
                    ``(ii) a Postal Service annuitant who is not a 
                Postal Service Medicare covered annuitant; or
                    ``(iii) a member of family of a Postal Service 
                employee or of a Postal Service annuitant and who is 
                not described in paragraph (1); and
            ``(B) enrolls in a Program plan under section 8903c of 
        title 5, United States Code,
the individual shall be deemed to have enrolled in the medical 
insurance program established by this part.
    ``(3) The definitions in section 8903c(a) of title 5, United States 
Code, shall apply for purposes of this subsection.
    ``(4) Nothing in this subsection shall be construed to deprive any 
individual of any other method or period of enrollment to which such 
individual is entitled under this section.''.
                    (B) Coverage periods.--Section 1838 of the Social 
                Security Act (42 U.S.C. 1395q) is amended by adding at 
                the end the following new subsection:
    ``(i) Notwithstanding subsection (a)--
            ``(1) in the case of an individual who enrolls under this 
        part pursuant to a special enrollment period under paragraph 
        (1) of section 1837(o), the coverage period under this part 
        shall begin on the date that the individual first has coverage 
        under the Program plan pursuant to the enrollment described in 
        paragraph (1)(B) of such section; and
            ``(2) in the case of an individual who is deemed enrolled 
        under paragraph (2) of section 1837(o), the coverage period 
        under this part shall begin as of--
                    ``(A) in the case of such an individual who is a 
                Postal Service employee or a Postal Service annuitant 
                who is eligible to become a Postal Service Medicare 
                covered annuitant, the date on which the individual 
                becomes a Postal Service Medicare covered annuitant or 
                the date of enrollment in a Program plan, whichever is 
                later;
                    ``(B) in the case of such an individual who is 
                eligible to enroll under section 1818 or 1818A of this 
                Act, the date on which the individual attains such 
                eligibility or the date of enrollment in a Program 
                plan, whichever is later; and
                    ``(C) in the case of an individual described in 
                paragraph (2)(A)(iii) of section 1837(o) who is 
                eligible to become a covered Medicare individual, as of 
                the first date the individual becomes a covered 
                Medicare individual or the date of enrollment in a 
                Program plan, whichever is later.''.
            (3) Part d egwp contracting conforming amendment.--Section 
        1860D-22(b) of the Social Security Act (42 U.S.C. 1395w-132(b)) 
        is amended by inserting before the period at the end the 
        following: ``, and shall be applied in a manner to facilitate 
        the offering of prescription drug benefits under a Program plan 
        under section 8903c of title 5, United States Code, through 
        employment-based retiree health coverage through a prescription 
        drug plan, as required under subsection (f) of such section, 
        through contracts between such a Program plan and such a 
        prescription drug plan''.
            (4) Waiver of increase of medicare part b premium.--Section 
        1839(b) of the Social Security Act (42 U.S.C. 1395r(b)) is 
        amended by inserting after ``subsection (i)(4), (l), or (m) of 
        section 1837'' the following: ``or pursuant to the special 
        enrollment period under subsection (o)(1) of such section''.

SEC. 102. USPS FAIRNESS ACT.

    (a) Short Title.--This section may be cited as the ``USPS Fairness 
Act''.
    (b) Rational Benefits Funding and Accounting.--
            (1) In general.--Section 8909a of title 5, United States 
        Code, is amended by striking subsection (d) and inserting the 
        following:
    ``(d)(1) Not later than June 30, 2024, and by June 30 of each 
succeeding year, the Office shall compute, for the most recently 
concluded fiscal year, the difference between--
            ``(A) any Government contributions required to be paid from 
        the Fund under section 8906(g)(2)(A); and
            ``(B) the net claims costs under the enrollment of the 
        individuals described in section 8906(g)(2)(A).
    ``(2) Not later than September 30 of each year in which the Office 
makes a computation under paragraph (1), the United States Postal 
Service shall pay into the Fund the difference computed under that 
paragraph.
    ``(e) Any computation of the liability of the Fund required by law 
shall be based on--
            ``(1) the net present value of the future net claims costs 
        with respect to--
                    ``(A) current annuitants of the United States 
                Postal Service as of the end of the fiscal year ending 
                on September 30 of the relevant reporting year; and
                    ``(B) current employees of the United States Postal 
                Service who would, as of September 30 of that year--
                            ``(i) be eligible to become annuitants 
                        pursuant to section 8901(3)(A); and
                            ``(ii) if they were retired as of that 
                        date, meet the criteria for coverage of 
                        annuitants under section 8905(b);
            ``(2) economic and actuarial methods and assumptions 
        consistent with the methods and assumptions used in determining 
        the Postal surplus or supplemental liability under section 
        8348(h); and
            ``(3) any other methods and assumptions, including a health 
        care cost trend rate, that the Director of the Office 
        determines to be appropriate.
    ``(f) After consultation with the United States Postal Service, the 
Office shall promulgate any regulations the Office determines necessary 
under this section.
    ``(g) For purposes of this section, the term `net claims costs' 
means the difference between--
            ``(1) the sum of--
                    ``(A) the costs incurred by a carrier in providing 
                health services to, paying for health services provided 
                to, or reimbursing expenses for health services 
                provided to, annuitants of the United States Postal 
                Service and any other persons covered under the 
                enrollment of such annuitants; and
                    ``(B) an amount of indirect expenses reasonably 
                allocable to the provision, payment, or reimbursement 
                described in subparagraph (A), as determined by the 
                Office; and
            ``(2) the amount withheld from the annuity of or paid by 
        annuitants of the United States Postal Service under section 
        8906.''.
            (2) Clerical amendment.--The heading of section 8909a of 
        title 5, United States Code, is amended by striking ``Benefit'' 
        and inserting ``Benefits''.
    (c) Application.--
            (1) Cancellation of payments.--Any payment required from 
        the Postal Service under section 8909a of title 5, United 
        States Code, as in effect on the day before the date of 
        enactment of this Act that remains unpaid as of that date of 
        enactment is canceled.
            (2) Effect of this act.--In any determination relating to 
        the future liability for retiree health benefits of the Postal 
        Service or the Postal Service Retiree Health Benefits Fund, the 
        Office of Personnel Management shall take into account the 
        actual and reasonably expected effects of this Act and the 
        amendments made by this Act.
    (d) Use of Funds From Sale of Real Property for Certain Payments.--
            (1) In general.--Chapter 29 of title 39, United States 
        Code, is amended by adding at the end the following:
``Sec. 2903. Use of funds from sale of property
    ``(a) Payment of Salaries and Expenses.--If the Postal Service 
permanently ceases operations, any funds derived from the sale of any 
real property owned by the Postal Service shall be used to pay any 
outstanding liability with respect to the salaries and expenses of any 
Postal Service employee.
    ``(b) Deposit Into Postal Service Retiree Health Benefits Fund.--
The balance of any funds remaining after compliance with subsection (a) 
shall be deposited into the Postal Service Retiree Health Benefits Fund 
established under section 8909a of title 5.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 29 of title 39, United States Code, is 
        amended by adding at the end the following:

``2903. Use of funds from sale of property.''.

SEC. 103. NONPOSTAL SERVICES.

    (a) Nonpostal Services.--
            (1) In general.--Part IV of title 39, United States Code, 
        is amended by adding after chapter 36 the following:

                    ``CHAPTER 37--NONPOSTAL SERVICES

``Sec.
``3701. Purpose.
``3702. Definitions.
``3703. Postal Service program for State governments.
``3704. Postal Service program for other Government agencies.
``3705. Transparency and accountability for nonpostal services.
``Sec. 3701. Purpose
    ``The purpose of this chapter is to enable the Postal Service to 
increase its net revenues through specific nonpostal products and 
services that are expressly authorized by this chapter. Postal Service 
revenues and expenses under this chapter shall be funded through the 
Postal Service Fund.
``Sec. 3702. Definitions
    ``In this chapter--
            ``(1) the term `nonpostal services' is limited to services 
        offered by the Postal Service that are expressly authorized by 
        this chapter and are not postal products or services;
            ``(2) the term `attributable costs' has the meaning given 
        such term in section 3631; and
            ``(3) the term `year' means a fiscal year.
``Sec. 3703. Postal Service program for State governments
    ``(a) In General.--Notwithstanding any other provision of this 
title, the Postal Service may establish a program to enter into 
agreements with an agency of any State government, local government, or 
tribal government to provide property and services on behalf of such 
agencies for non-commercial products and services, but only if such 
property and services--
            ``(1) provide enhanced value to the public, such as by 
        lowering the cost or raising the quality of such services or by 
        making such services more accessible;
            ``(2) do not interfere with or detract from the value of 
        postal services, including--
                    ``(A) the cost and efficiency of postal services; 
                and
                    ``(B) unreasonably restricting access to postal 
                retail service, such as customer waiting time and 
                access to parking; and
            ``(3) provide a reasonable contribution to the 
        institutional costs of the Postal Service, defined as 
        reimbursement that covers at least 100 percent of attributable 
        costs of all property and services provided under each relevant 
        agreement in each year.
    ``(b) Public Notice.--At least 90 days before offering a service 
under the program, the Postal Service shall make available to the 
public on its website--
            ``(1) the agreement with the agency regarding such service; 
        and
            ``(2) a business plan that describes the specific service 
        to be provided, the enhanced value to the public, terms of 
        reimbursement, the estimated annual reimbursement to the Postal 
        Service, and the estimated percentage of attributable Postal 
        Service costs that will be covered by reimbursement (with 
        documentation to support the estimates).
    ``(c) Public Comment.--Before offering a service under the program, 
the Postal Service shall provide for a public comment period of at 
least 30 days that allows the public to post comments relating to the 
provision of such services on the Postal Service website. The Postal 
Service shall make reasonable efforts to provide written responses to 
the comments on such website at least 30 days before offering such 
services.
    ``(d) Approval Required.--The Postal Service may not establish the 
program under subsection (a) unless the Governors of the Postal Service 
approve such program by a recorded vote that is publicly disclosed on 
the Postal Service website with a majority of the total Governors 
voting for approval.
    ``(e) Application of Reporting Requirements.--For purposes of the 
reporting requirements under section 3705, the Postal Service shall 
submit a separate report for each agreement with an agency entered into 
under subsection (a) analyzing the costs, revenues, rates, and quality 
of service for the provision of all services under such agreement, 
including information demonstrating that the agreement satisfies the 
requirements of paragraphs (1) through (3) of subsection (a).
    ``(f) Regulations Required.--The Postal Regulatory Commission shall 
issue such regulations as are necessary to carry out this section.
    ``(g) Definitions.--For the purpose of this section--
            ``(1) the term `local government' means a county, 
        municipality, city, town, township, local public authority, 
        school district, special district, intrastate district, council 
        of governments, or regional or interstate government entity;
            ``(2) the term `State government' includes the government 
        of the District of Columbia, 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;
            ``(3) the term `tribal government' means the government of 
        an Indian tribe, as that term is defined in section 4(e) of the 
        Indian Self-Determination Act (25 U.S.C. 450b(e)); and
            ``(4) the term `United States', when used in a geographical 
        sense, means the States, the District of Columbia, 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.
    ``(h) Confidential Information.--Subsection (b) or (c) shall not be 
construed as requiring the Postal Service to disclose to the public any 
information--
            ``(1) described in section 410(c); or
            ``(2) exempt from public disclosure under section 552(b) of 
        title 5.
``Sec. 3704. Postal Service program for other Government agencies
    ``(a) In General.--The Postal Service may establish a program to 
provide property and services to other Government 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 reimbursement by each agency that covers at least 100 percent of the 
attributable costs of all property and service provided by the Postal 
Service in each year to such agency.
    ``(b) Application of Reporting Requirements.--For purposes of the 
reporting requirements under section 3705, the Postal Service shall 
submit a separate report for each agreement with an agency entered into 
under subsection (a) analyzing the costs, revenues, rates, and quality 
of service for the provision of all services under such agreement, 
including information demonstrating that the agreement satisfies the 
requirements of subsection (a).
``Sec. 3705. Transparency and accountability for nonpostal services
    ``(a) Annual Report to the Commission.--
            ``(1) In general.--Not later than 90 days after the last 
        day of each year, the Postal Service shall submit to the Postal 
        Regulatory Commission a report that analyzes costs, revenues, 
        rates, and quality of service for each agreement for the 
        provision of property and services under this chapter, using 
        such methodologies as the Commission may prescribe, and in 
        sufficient detail to demonstrate compliance with the 
        requirements of this chapter.
            ``(2) Supporting matter.--A report submitted under 
        paragraph (1) shall include any nonpublic annex, the working 
        papers, and any other supporting matter of the Postal Service 
        and the Inspector General related to the information submitted 
        in such report.
    ``(b) Content and Form of Report.--
            ``(1) In general.--The Postal Regulatory Commission shall, 
        by regulation, prescribe the content and form of the report 
        required under subsection (a). In prescribing such regulations, 
        the Commission shall give due consideration to--
                    ``(A) providing the public with timely, adequate 
                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 information 
                that is commercially sensitive or is exempt from public 
                disclosure under section 552(b) of title 5.
            ``(2) Revised requirements.--The Commission may, on its own 
        motion or on request of any interested party, initiate 
        proceedings to improve the quality, accuracy, or completeness 
        of Postal Service data required by the Commission if--
                    ``(A) the attribution of costs or revenues to 
                property or services under this chapter has become 
                significantly inaccurate or can be significantly 
                improved;
                    ``(B) the quality of service data provided to the 
                Commission for a report under this 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.
    ``(c) Audits.--The Inspector General shall regularly audit the data 
collection systems and procedures used in collecting information and 
preparing the report required under subsection (a). The results of any 
such audit shall be submitted to the Postal Service and the Postal 
Regulatory Commission.
    ``(d) Confidential Information.--
            ``(1) In general.--If the Postal Service determines that 
        any document or portion of a document, or other matter, which 
        it provides to the Postal Regulatory Commission in a nonpublic 
        annex under this section contains information described in 
        section 410(c), or exempt from public disclosure 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 determination, 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 Commission gains access under 
        this section shall be subject to paragraphs (2) and (3) of 
        section 504(g) in the same way as if the Commission had 
        received notification with respect to such matter under section 
        504(g)(1).
    ``(e) Annual Compliance Determination.--
            ``(1) Opportunity for public comment.--Upon receiving a 
        report required under subsection (a), the Postal Regulatory 
        Commission shall promptly--
                    ``(A) provide an opportunity for comment on such 
                report by any interested party; and
                    ``(B) appoint an officer of the Commission to 
                represent the interests of the general public.
            ``(2) Determination of compliance or noncompliance.--Not 
        later than 90 days after receiving a report required under 
        subsection (a), the Postal Regulatory Commission shall make a 
        written determination as to whether the nonpostal activities 
        carried out during the applicable year were or were not in 
        compliance with the provisions of this chapter. For purposes of 
        this paragraph, any case in which the requirements for coverage 
        of attributable costs have not been met shall be considered to 
        be a case of noncompliance. If, with respect to a year, no 
        instance of noncompliance is found to have occurred, the 
        determination shall be to that effect. Such determination of 
        noncompliance shall be included with the annual compliance 
        determination required under section 3653.
            ``(3) Noncompliance.--If a timely written determination of 
        noncompliance is made under paragraph (2), 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, including the full 
        restoration of revenue shortfalls during the following year. 
        The Commission may order the Postal Service to discontinue a 
        nonpostal service under section 3703 that persistently fails to 
        meet cost coverage requirements.
            ``(4) Deliberate noncompliance.--In the case 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 such 
        noncompliance. All receipts from fines imposed under this 
        subsection shall be deposited in the general fund of the 
        Treasury.
    ``(f) Regulations Required.--The Postal Regulatory Commission shall 
issue such regulations as are necessary to carry out this section.''.
            (2) Clerical amendment.--The table of chapters for part IV 
        of title 39, United States Code, is amended by adding after the 
        item relating to chapter 36 the following:

``37. Nonpostal services....................................    3701''.
    (b) Conforming Amendments.--
            (1) Section 404.--Section 404(e) of title 39, United States 
        Code, is amended--
                    (A) in paragraph (2), by inserting after 
                ``subsection'' the following: ``, or any nonpostal 
                products or services authorized by chapter 37''; and
                    (B) by adding at the end the following:
    ``(6) Licensing which, before the date of enactment of this 
paragraph, has been authorized by the Postal Regulatory Commission for 
continuation as a nonpostal service may not be used for any purpose 
other than--
            ``(A) to continue to provide licensed mailing, shipping, or 
        stationery supplies offered as of June 23, 2011; or
            ``(B) to license other goods, products, or services, the 
        primary purpose of which is to promote and enhance the image or 
        brand of the Postal Service.
    ``(7) Nothing in this section shall be construed to prevent 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 of title 
        39, United States Code, is amended by striking ``including 
        reimbursability'' and inserting ``including reimbursability 
        within the limitations of chapter 37''.
            (3) Treatment of existing nonpostal services.--All 
        individual nonpostal services, provided directly or through 
        licensing, that are 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.
            (4) Repeal of certain limitations on experimental 
        products.--Section 3641 of title 39, United States Code, is 
        amended--
                    (A) by striking subsections (b), (d), and (e); and
                    (B) by redesignating--
                            (i) subsection (c) as subsection (b); and
                            (ii) subsections (f), (g), (h), and (i) as 
                        subsections (c), (d), (e), and (f), 
                        respectively.

              TITLE II--POSTAL SERVICE OPERATIONAL REFORMS

SEC. 201. PERFORMANCE TARGETS AND TRANSPARENCY.

    Subchapter VII of chapter 36 of title 39, United States Code, is 
amended by inserting after section 3691 the following:
``Sec. 3692. Performance targets and transparency
    ``(a) Performance Targets.--Each year, to ensure that mail service 
for postal customers meets the service standards for market-dominant 
products, established under section 3691, the Postal Service shall--
            ``(1) at least 60 days before the beginning of the fiscal 
        year in which they will apply, establish and provide to the 
        Postal Regulatory Commission reasonable targets for 
        performance; and
            ``(2) provide the previous fiscal years' performance 
        targets in its Annual Compliance Report to the Postal 
        Regulatory Commission for evaluation of compliance.
    ``(b) Public Performance Dashboard.--
            ``(1) In general.--The Postal Service shall develop and 
        maintain a publicly available Website with an interactive web 
        tool that provides performance information for market-dominant 
        products that is updated on a weekly basis.
            ``(2) Performance information.--The performance information 
        provided on the Website shall include--
                    ``(A) the type of market-dominant product;
                    ``(B) geographic area at the nationwide, Area, and 
                District level;
                    ``(C) time periods showing performance information 
                in annual, quarterly, monthly, and weekly segments;
                    ``(D) comparisons of performance information for 
                market-dominant products for previous time periods to 
                facilitate identification of performance trends; and
                    ``(E) the current performance targets and previous 
                fiscal year performance targets, established under 
                subsection (a)(1).
            ``(3) Comprehensibility.--The Website shall include plain 
        language descriptions of the elements required under paragraph 
        (2) and information on the collection process, measurement 
        methodology, completeness, accuracy, and validity of the 
        performance information provided on the Website.
            ``(4) Address search functionality.--The Website shall 
        include functionality to enable a user to search for 
        performance information by street address, ZIP Code, or post 
        office box.
            ``(5) Format.--The performance information provided on the 
        Website shall be made available--
                    ``(A) in a manner that--
                            ``(i) presents the information referenced 
                        under paragraph (2) on an interactive 
                        dashboard;
                            ``(ii) is searchable and may be sorted and 
                        filtered by the elements described in paragraph 
                        (2); and
                            ``(iii) to the extent practicable, enables 
                        any person or entity to download in bulk--
                                    ``(I) such performance information; 
                                and
                                    ``(II) the results of a search by 
                                the elements described in paragraph 
                                (2);
                    ``(B) in an open format that permits any individual 
                or entity to reuse and analyze the performance 
                information; and
                    ``(C) in a structured data format, to the extent 
                practicable.
            ``(6) Consultation.--The Postal Service shall regularly 
        consult with the Postal Regulatory Commission on appropriate 
        features and information to be included on the Website.
            ``(7) Public input.--The Postal Service shall--
                    ``(A) solicit public input on the design and 
                implementation of the Website; and
                    ``(B) maintain a public feedback tool, to ensure 
                features of, and information on, the Website is usable 
                and understandable.
            ``(8) Deadline.--The Website shall be implemented and made 
        available to the public not later than the date on which the 
        performance targets are provided to the Postal Regulatory 
        Commission under subsection (a)(1).
            ``(9) Availability.--A link and plain language description 
        of the Website shall be made available on the website where the 
        performance targets and measurements established under 
        subsection (a)(1) are made available.
            ``(10) Reporting.--The dashboard referred to in paragraph 
        (5)(A)(i) shall be referenced in the Annual Performance Plan 
        under section 2803, the Annual Performance Report under section 
        2804, and the Annual Report under section 2402.
            ``(11) Definitions.--In this subsection--
                    ``(A) Performance information.--The term 
                `performance information' means the objective external 
                performance measurements established under section 
                3691(b)(1)(D).
                    ``(B) Website.--The term `Website' means the 
                website described in paragraph (1).''.

SEC. 202. INTEGRATED DELIVERY NETWORK.

    Section 101(b) of title 39, United States Code, is amended by 
inserting before ``The Postal Service'' the following: ``The Postal 
Service shall maintain an integrated network for the delivery of 
market-dominant and competitive products (as defined in chapter 36 of 
this title). Delivery shall occur at least six days a week, except 
during weeks that include a Federal holiday or in emergency situations, 
such as natural disasters.''.

SEC. 203. REVIEW OF POSTAL SERVICE COST ATTRIBUTION GUIDELINES.

     Not later than 1 year after the date of enactment of this Act, the 
Commission shall initiate a review of the regulations issued pursuant 
to sections 3633(a) and 3652(a)(1) of title 39, United States Code, to 
determine whether revisions are appropriate to ensure that all direct 
and indirect costs attributable to competitive and market-dominant 
products are properly attributed to those products, including by 
considering the underlying methodologies in determining cost 
attribution and considering options to revise those methodologies. If 
the Commission determines, after notice and opportunity for public 
comment, that revisions are appropriate, the Commission shall make 
modifications or adopt alternative methodologies as necessary.

SEC. 204. RURAL NEWSPAPER SUSTAINABILITY.

    Section 3626(h) of title 39, United States Code, is amended by 
striking ``10 percent'' and inserting ``50 percent''.

SEC. 205. FUNDING OF POSTAL REGULATORY COMMISSION.

    (a) In General.--Subsection (d) of section 504 of title 39, United 
States Code, is amended to read as follows:
    ``(d)(1)(A) Not later than September 1 of each fiscal year 
(beginning with fiscal year 2022), the Postal Regulatory Commission 
shall submit to the Postal Service a budget of the expenses of the 
Commission, including expenses for facilities, supplies, compensation, 
and employee benefits, for the following fiscal year.
    ``(B) Any budget submitted under subparagraph (A) shall be deemed 
approved as submitted if the Governors fail to adjust the budget in 
accordance with paragraph (2).
    ``(2)(A)(i) Not later than 30 days after receiving a budget under 
paragraph (1), the Governors holding office, by unanimous written 
decision, may adjust the total amount of funding requested in the 
budget.
    ``(ii) Nothing in clause (i) may be construed to authorize the 
Governors to adjust any activity proposed to be funded by a budget 
described in that clause.
    ``(B)(i) If the Governors adjust a budget under subparagraph (A), 
the Postal Regulatory Commission shall adjust the suballocations within 
the budget to reflect the total adjustment made by the Governors.
    ``(ii) A budget adjusted under subparagraph (A) shall be deemed 
approved on the date on which the Commission makes any adjustments 
required under clause (i) of this subparagraph.
    ``(iii) The Commission may make further adjustments to the 
suballocations within a budget, in addition to the adjustments required 
under clause (i), as necessary.
    ``(3) Expenses incurred under any budget approved under this 
subsection shall be paid out of the Postal Service Fund established 
under section 2003.''.
    (b) Conforming Amendments.--Chapter 20 of title 39, United States 
Code, is amended--
            (1) in section 2003(e), by striking ``(B) all expenses of 
        the Postal Regulatory Commission, subject to the availability 
        of amounts appropriated under section 504(d);'' and inserting 
        ``(B) all expenses of the Postal Regulatory Commission, in 
        accordance with section 504(d);''; and
            (2) in section 2009--
                    (A) by striking ``, (2)'' and inserting ``, and 
                (2)''; and
                    (B) by striking ``, and (3) the Postal Regulatory 
                Commission requests to be appropriated, out of the 
                Postal Service Fund, under section 504(d) of this 
                title''.

SEC. 206. FLATS OPERATIONS STUDY AND REFORM.

    (a) Flats Operations Study.--
            (1) Flats defined.--In this subsection, the term ``Flats'' 
        means products that meet the physical standards described in 
        the Domestic Mail Manual (as in effect on the date of enactment 
        of this Act) for Flats mail for any class of mail.
            (2) Study.--The Commission, in consultation with the 
        Inspector General of the Postal Service, shall conduct a study 
        to--
                    (A) comprehensively identify the causes of 
                inefficiencies in the collection, sorting, 
                transportation, and delivery of Flats; and
                    (B) quantify the effects of the volume trends, 
                investment decisions, excess capacity, and operational 
                inefficiencies of the Postal Service on the direct and 
                indirect costs of the Postal Service that are 
                attributable to Flats.
            (3) Postal service assistance.--For the purposes of 
        carrying out the study under paragraph (2), the Postal Service 
        shall, upon request by the Commission, consult with the 
        Commission and provide--
                    (A) access to Postal Service facilities to 
                personnel of the Commission; and
                    (B) information and records necessary to conduct 
                the study.
            (4) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Commission shall submit to Congress 
        and the Postmaster General a report on the findings of the 
        study conducted under paragraph (2).
    (b) Flats Operations Reform.--
            (1) In general.--Not later than 180 days after the date on 
        which the Commission submits the report under subsection 
        (a)(4), the Postal Service shall--
                    (A) develop and implement a plan to remedy each 
                inefficiency identified in the study conducted under 
                subsection (a)(2) to the extent practicable; and
                    (B) if the Postal Service determines that remedying 
                an inefficiency described in subparagraph (A) is not 
                practicable, provide to Congress and the Commission an 
                explanation for why remedying the inefficiency is not 
                practicable, including whether remedying the 
                inefficiency may become practicable at a later time.
            (2) Implementation requirements.--Prior to implementing the 
        plan described in paragraph (1)--
                    (A) the Postal Regulatory Commission must approve 
                the plan; and
                    (B) the Postal Service shall provide an adequate 
                opportunity for public comment on the plan.
            (3) Completion notice.--On the date on which the plan 
        required under paragraph (1) is fully implemented, as 
        determined by the Postmaster General, the Postmaster General 
        shall submit to Congress and the Commission a written notice of 
        the implementation.
    (c) Subsequent Rate Adjustments.--During the 5-year period 
beginning on the date on which the Postmaster General submits the 
notice under subsection (b)(3), the Postal Service, when making any 
adjustment to the rate of a market-dominant product (as defined in 
section 102 of title 39, United States Code), shall consider the 
findings of the report described in subsection (a)(4) and the efficacy 
of the plan described in subsection (b)(1) in remedying the 
inefficiencies identified in the study conducted under subsection 
(a)(2).

SEC. 207. REPORTING REQUIREMENTS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, and every 6 months thereafter, the Postmaster 
General shall submit to the President, the Commission, the Committee on 
Homeland Security and Governmental Affairs of the Senate, and the 
Committee on Oversight and Reform of the House of Representatives a 
report on the operations and financial condition of the Postal Service 
during the 6-month period ending on the date on which the Postmaster 
General submits the report.
    (b) Contents.--Each report submitted under this section shall 
include updates, details of changes from previous standards and 
requirements, and assessments of progress being made on the operations 
and financial condition of the Postal Service, including--
            (1) the actual mail and package volume growth relative to 
        any mail or package volume growth projections previously made 
        or relied upon by the Postal Service, including a discussion of 
        the reasons for the differences in projections and the 
        associated adjustments being made in order to accommodate any 
        such differences;
            (2) the effect of pricing changes on product volume for 
        market-dominant products and competitive products, and 
        associated revenue effects on financial projections, including 
        a discussion of the reasons for the differences in projections 
        and associated adjustments being made;
            (3) customer use of network distribution centers and 
        processing and distribution centers, and associated costs and 
        revenue effects;
            (4) the status of, and any substantial programmatic changes 
        to, the USPS Connect program relative to previous plans by the 
        Postal Service, including online sales and customer 
        expectations regarding shipping speeds and shopping preferences 
        relative to projections, as well as associated implementation 
        costs and revenue effects on the financial projections;
            (5) the use of Priority Mail, Priority Mail Express, First-
        Class Package Service, and Parcel Select services (as those 
        terms are defined in the Domestic Mail Classification Schedule 
        as in effect on the date of enactment of this Act) among 
        businesses of various sizes, and associated revenue effects;
            (6) the use of USPS Connect Returns service among 
        customers, and associated implementation costs and revenue 
        effects;
            (7) the use of USPS E-Commerce Marketplace among customers, 
        and associated implementation costs and revenue effects;
            (8) updates on the reliability, efficiency, and cost-
        effectiveness of the transportation network, including the 
        manner in which ground transportation is utilized over air 
        transportation for types of products;
            (9) a review of efforts to enhance employee training, 
        safety, and wellbeing, including associated effects on employee 
        recruitment, satisfaction, and retention;
            (10) a review of efforts being made to improve employee 
        allocation, including changes of non-career employees to career 
        status, and any associated impacts on operational expenses and 
        processing, transportation, and delivery efficiency;
            (11) the rate of planned investment in Postal Service 
        processing, transportation, and delivery equipment and 
        infrastructure for market-dominant products and competitive 
        products, and a review of any associated effects on operational 
        expenses and efficiency;
            (12) changes to network distribution centers and the 
        expansion of regional distribution centers, including costs 
        associated with the changes and any realized reduction in 
        operational expenses or improved resource efficiencies;
            (13) a review of the ability of the Postal Service to meet 
        performance targets established under section 3692(a)(1) of 
        title 39, United States Code, as added by section 201 of this 
        Act;
            (14) a discussion of--
                    (A) the progress of the Postal Service in achieving 
                any new, self-funded investments, including the amounts 
                realized and expended to date; and
                    (B) a discussion of the reasons for any disparities 
                in the assumptions regarding the expected progress of 
                the Postal Service in achieving new, self-funded 
                investments to accommodate changes; and
            (15) any other information the Postal Service determines 
        relevant, such as barriers or unanticipated events, in order to 
        help the Commission, Congress, the President, and the people of 
        the United States evaluate the success of or difficulties faced 
        by the Postal Service in implementing the reform plan.
    (c) Confidential Information.--
            (1) In general.--The report required under this section 
        shall be submitted in a form that excludes any proprietary or 
        confidential information and trade secrets.
            (2) Notification.--If the Postal Service determines that 
        any information must be excluded under paragraph (1), the 
        Postal Service shall, at the time of submitting the report, 
        notify the President, the Committee on Homeland Security and 
        Governmental Affairs of the Senate, the Committee on Oversight 
        and Reform of the House of Representatives, and the Commission 
        in writing of its determination and describe in detail the 
        information for which confidentiality is sought and the reasons 
        therefor.
            (3) Annexes.--The Postal Service shall submit to the 
        persons and entities notified under paragraph (2) any 
        information excluded under paragraph (1) in an annex that shall 
        be treated as confidential in accordance with paragraph (4).
            (4) Treatment.--No person may, with respect to any 
        information that the person receives under paragraph (3)--
                    (A) use the information for purposes other than the 
                purposes for which the information is supplied; or
                    (B) permit any person or entity other than a person 
                or entity notified under paragraph (2), or the staff 
                thereof, to have access to the information.
    (d) Termination.--This section shall terminate on the date that is 
5 years after the date on which the first report required under this 
section is submitted.

SEC. 208. POSTAL SERVICE TRANSPORTATION SELECTION POLICY REVISIONS.

    Section 101(f) of title 39, United States Code, is amended--
            (1) by striking ``prompt and economical'' and inserting 
        ``prompt, economical, consistent, and reliable'';
            (2) by inserting after ``all mail'' the following: ``in a 
        manner that increases operational efficiency and reduces 
        complexity'';
            (3) by inserting ``cost-effective'' after ``to achieve''; 
        and
            (4) by inserting ``also'' after ``Nation shall''.

SEC. 209. USPS INSPECTOR GENERAL OVERSIGHT OF POSTAL REGULATORY 
              COMMISSION.

    (a) In General.--Section 8G of the Inspector General Act of 1978 (5 
U.S.C. App.) is amended--
            (1) in subsection (a)(2), by striking ``the Postal 
        Regulatory Commission,''; and
            (2) in subsection (f)(2)--
                    (A) by striking ``(2) In carrying'' and inserting 
                ``(2)(A) In carrying''; and
                    (B) by adding at the end the following:
    ``(B) In carrying out the duties and responsibilities specified in 
this Act, the Inspector General shall function as the Inspector General 
for the Postal Regulatory Commission, and shall have equal 
responsibility over the Commission and the United States Postal 
Service. The Commission shall comply with the oversight of the 
Inspector General as if the Commission were a designated Federal entity 
under subsection (a)(2).''.
    (b) Savings Provision.--
            (1) Legal documents.--Any order, determination, rule, 
        regulation, permit, grant, loan, contract, agreement, 
        certificate, license, or privilege that has been issued, made, 
        granted, or allowed to become effective that is in effect on 
        the effective date of this section shall continue in effect 
        according to its terms until modified, terminated, superseded, 
        set aside, or revoked in accordance with law.
            (2) Proceedings.--This section and the amendments made by 
        this section shall not affect any proceeding pending on the 
        effective date of this section before an office transferred by 
        either such subsection, but such proceeding shall be continued. 
        Nothing in this paragraph shall be considered to prohibit the 
        discontinuance or modification of any such proceeding under the 
        same terms and conditions and to the same extent that such 
        proceeding could have been discontinued or modified if this 
        section or such amendments had not been enacted.
            (3) Suits.--This section and the amendments made by this 
        section shall not affect any suit commenced before the 
        effective date of this section, and in any such suit, 
        proceeding shall be had, appeals taken, and judgments rendered 
        in the same manner and with the same effect as if this section 
        and those amendments had not been enacted.
            (4) References.--Any reference in any other Federal law, 
        Executive order, rule, regulation, delegation of authority, or 
        document to the Inspector General of the Postal Regulatory 
        Commission shall be deemed to refer to the Inspector General of 
        the Postal Service.
    (c) Technical and Conforming Amendment.--Section 504 of title 39, 
United States Code, is amended by striking subsection (h).
    (d) Effective Date.--This section and the amendments made by this 
section shall take effect on the date that is 180 days after the date 
of enactment of this Act.
                                 <all>