Title: Postal Service Reform Act of 2018
Policy area: Government Operations and Politics

Summary:
Postal Service Reform Act of 2018
This bill directs the Office of Personnel Management to establish the Postal Service Health Benefits Program (PSHBP) within the Federal Employee Health Benefits Program for all postal employees and annuitants. All Medicare-eligible postal annuitants and employees enrolled in PSHBP must also enroll in Medicare, including parts A, B, and D.
The bill eliminates the existing statutory pension payment schedule, cancels any outstanding payments, and amortizes payments over 40 years.
The U.S. Postal Service (USPS) 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. Distilled spirits, wine, or malt beverages shall be considered mailable if specified conditions apply.
The USPS shall submit to its Board of Governors: (1) a plan describing the actions it intends to take to achieve long-term solvency, and (2) a financial plan and budget consistent with that goal. The USPS must establish reasonable targets for performance to ensure that mail service for postal customers meets the service standards for market-dominant products.
There is established within USPS the position of Chief Innovation Officer. The USPS must submit to Congress and to the Postal Regulatory Commission a comprehensive strategy for maximizing revenues through innovative products and services.
The bill provides for emergency suspensions of post offices.
There is established in the USPS the Office of the Inspector General.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2629 Placed on Calendar Senate (PCS)]

<DOC>





                                                       Calendar No. 366
115th CONGRESS
  2d Session
                                S. 2629

        To improve postal operations, service, and transparency.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 22, 2018

 Mr. Carper (for himself, Mr. Moran, Ms. Heitkamp, and Mrs. McCaskill) 
      introduced the following bill; which was read the first time

                             April 9, 2018

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
        To improve postal operations, service, and transparency.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Postal Service Reform Act of 2018''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
                       TITLE I--POSTAL PERSONNEL

Sec. 101. Postal Service Health Benefits Program.
Sec. 102. Postal Service retiree health care benefit funding reform.
Sec. 103. Medicare part B premium subsidy for newly enrolling Postal 
                            Service annuitants and family members.
Sec. 104. Postal Service pension funding reform.
Sec. 105. Supervisory and other managerial organizations.
Sec. 106. Right of appeal to Merit Systems Protection Board.
               TITLE II--POSTAL SERVICE OPERATIONS REFORM

Sec. 201. Governance reform.
Sec. 202. Modernizing postal rates.
Sec. 203. Nonpostal services.
Sec. 204. Shipping of wine, beer, and distilled spirits.
Sec. 205. Efficient and flexible universal postal service.
Sec. 206. Fair stamp-evidencing competition.
Sec. 207. Market-dominant rates.
Sec. 208. Review of Postal Service cost attribution guidelines.
Sec. 209. Aviation security for parcels.
Sec. 210. Long-term solvency plan; annual financial plan and budget.
Sec. 211. Service standards, performance targets, and performance 
                            measurements.
Sec. 212. Postal Service Chief Innovation Officer.
Sec. 213. Emergency suspensions of post offices.
Sec. 214. Mailing address requirements.
                  TITLE III--POSTAL CONTRACTING REFORM

Sec. 301. Contracting provisions.
Sec. 302. Technical amendment to definition.
  TITLE IV--POSTAL REGULATORY COMMISSION, INSPECTOR GENERAL, RELATED 
                     PROVISIONS, AND MISCELLANEOUS

Sec. 401. Postal Regulatory Commission.
Sec. 402. Inspector General of the United States Postal Service and the 
                            Postal Regulatory Commission.
Sec. 403. GAO report on fragmentation, overlap, and duplication in 
                            Federal programs and activities.

SEC. 3. DEFINITIONS.

    In this Act, the following definitions shall apply:
            (1) Commission.--The term ``Commission'' means the Postal 
        Regulatory Commission.
            (2) Postal retail facility.--The term ``postal retail 
        facility''--
                    (A) means a post office, post office branch, post 
                office classified station, or other facility that is 
                operated by the Postal Service, the primary function of 
                which is to provide retail postal services; and
                    (B) does not include a contractor-operated facility 
                offering postal services.
            (3) Postal service.--The term ``Postal Service'' means the 
        United States Postal Service.

                       TITLE I--POSTAL PERSONNEL

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 `initial contract year' means the contract 
        year beginning in January of the first full year that begins 
        not less than 7 months after the date of enactment of this 
        section;
            ``(2) 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;
            ``(3) the term `Medicare eligible individual' means an 
        individual who--
                    ``(A) is entitled to Medicare part A, but excluding 
                an individual who is eligible to enroll under such part 
                under section 1818 of the Social Security Act (42 
                U.S.C. 1395i-2); and
                    ``(B) is eligible to enroll in Medicare part B;
            ``(4) the term `Medicare part A' means the Medicare program 
        for hospital insurance benefits under part A of title XVIII of 
        the Social Security Act (42 U.S.C. 1395c et seq.);
            ``(5) the term `Medicare part B' means the Medicare program 
        for supplementary medical insurance benefits under part B of 
        title XVIII of the Social Security Act (42 U.S.C. 1395j et 
        seq.);
            ``(6) the term `Medicare part D' means the Medicare 
        insurance program established under part D of title XVIII of 
        the Social Security Act (42 U.S.C. 1395w-101 et seq.);
            ``(7) the term `Office' means the Office of Personnel 
        Management;
            ``(8) the term `Postal Service' means the United States 
        Postal Service;
            ``(9) the term `Postal Service annuitant' means an 
        annuitant enrolled in a health benefits plan under this chapter 
        whose Government contribution is paid by the Postal Service or 
        the Postal Service Retiree Health Benefits Fund under section 
        8906(g)(2);
            ``(10) the term `Postal Service employee' means an employee 
        of the Postal Service enrolled in a health benefits plan under 
        this chapter;
            ``(11) the term `Postal Service Health Benefits Program' 
        means the program of health benefits plans established under 
        subsection (c) within the Federal Employees Health Benefits 
        Program under this chapter;
            ``(12) the term `Postal Service Medicare eligible 
        annuitant' means an individual who--
                    ``(A) is a Postal Service annuitant; and
                    ``(B) is a Medicare eligible individual;
            ``(13) the term `PSHBP plan' means a health benefits plan 
        offered under the Postal Service Health Benefits Program; and
            ``(14) the term `qualified carrier' means a carrier for 
        which the total enrollment in the plans provided under this 
        chapter includes, in the contract year beginning in January of 
        the year before the initial contract year, a combined total of 
        1,500 or more enrollees who are--
                    ``(A) Postal Service employees; or
                    ``(B) Postal Service annuitants.
    ``(b) Application of Section.--The requirements under this section 
shall--
            ``(1) apply to the initial contract year, and each contract 
        year thereafter; and
            ``(2) supersede other provisions of this chapter to the 
        extent of any specific inconsistency, as determined by the 
        Office.
    ``(c) Establishment of the Postal Service Health Benefits 
Program.--
            ``(1) In general.--The Office shall establish the Postal 
        Service Health Benefits Program, which shall--
                    ``(A) consist of health benefits plans offered 
                under this chapter;
                    ``(B) include plans offered by--
                            ``(i) each qualified carrier; and
                            ``(ii) any other carrier determined 
                        appropriate by the Office;
                    ``(C) be available for participation by all Postal 
                Service employees, in accordance with subsection (d);
                    ``(D) be available for participation by all Postal 
                Service annuitants, in accordance with subsection (d);
                    ``(E) not be available for participation by an 
                individual who is not a Postal Service employee or 
                Postal Service annuitant (except as a family member of 
                such an employee or annuitant); and
                    ``(F) be implemented and administered by the 
                Office.
            ``(2) Separate postal service risk pool.--The Office shall 
        ensure that each PSHBP plan includes rates, one for enrollment 
        as an individual, one for enrollment for self plus one, and one 
        for enrollment for self and family within each option in the 
        PSHBP plan, that reasonably and equitably reflect the cost of 
        benefits provided to a risk pool consisting solely of Postal 
        Service employees and Postal Service annuitants (and family 
        members of such employees and annuitants), taking into specific 
        account the reduction in benefits cost for the PSHBP 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 PSHBP plans 
        offered by the carrier that is actuarially equivalent, as 
        determined by the Director of the Office, to the coverage that 
        the carrier provides under the health benefits plans offered by 
        the carrier under the Federal Employee Health Benefits Program 
        that are not PSHBP plans.
            ``(4) Applicability of federal employee health benefits 
        program requirements.--Except as otherwise set forth in this 
        section, all provisions of this chapter applicable to health 
        benefits plans offered by a carrier under section 8903 or 8903a 
        shall apply to PSHBP plans.
            ``(5) Application of continuation coverage.--In accordance 
        with rules established by the Office, section 8905a shall apply 
        to PSHBP plans 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 paragraphs (2) and 
        (3), 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 under 
                this section; and
                    ``(B) may only enroll in a PSHBP plan.
            ``(2) Annuitants.--A Postal Service annuitant shall not be 
        subject to this section if the Postal Service annuitant--
                    ``(A) is enrolled in a health benefits plan under 
                this chapter for the contract year before the initial 
                contract year that is not a health benefits plan 
                offered by an initial participating carrier, unless the 
                Postal Service annuitant voluntarily enrolls in a PSHBP 
                plan;
                    ``(B) resides in a geographic area--
                            ``(i) for which there is not a PSHBP plan 
                        in which the Postal Service annuitant may 
                        enroll; or
                            ``(ii) in which there is a lack of 
                        participating Medicare part B providers; or
                    ``(C) would not derive benefit from enrolling in 
                Medicare part B because of comprehensive medical 
                coverage provided by the Department of Veterans Affairs 
                or other programs.
            ``(3) Employees.--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 shall not be subject to the requirements under this 
        section, except that--
                    ``(A) 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 PSHBP plan;
                    ``(B) if the health benefits plan in which the 
                Postal Service employee is enrolled for such contract 
                year becomes available as a PSHBP plan, the Postal 
                Service employee may only enroll in a PSHBP plan;
                    ``(C) 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 PSHBP plan during--
                            ``(i) the open season that is being held 
                        when the Postal Service employee becomes a 
                        Postal Service annuitant; or
                            ``(ii) 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; and
                    ``(D) subparagraphs (A), (B), and (C) shall not 
                apply to an employee who resides in a geographic area 
                for which there is not a PSHBP plan in which the 
                employee may enroll.
    ``(e) Requirement of Medicare Enrollment.--
            ``(1) Postal service medicare eligible annuitants.--A 
        Postal Service Medicare eligible annuitant subject to this 
        section may not continue coverage under the Postal Service 
        Health Benefits Program unless the Postal Service Medicare 
        eligible annuitant enrolls in Medicare part A, Medicare part B, 
        and Medicare part D (as part of a prescription drug plan 
        described in subsection (f)(2)).
            ``(2) Medicare eligible family members.--If a family member 
        of a Postal Service annuitant who is subject to this section is 
        a Medicare eligible individual, the family member may not be 
        covered under the Postal Service Health Benefits Program as a 
        family member of the Postal Service annuitant unless the family 
        member enrolls in Medicare part A, Medicare part B, and 
        Medicare part D (as part of a prescription drug plan described 
        in subsection (f)(2)).
            ``(3) Process for coordinated election of enrollment under 
        medicare part b.--The Office shall establish a process under 
        which--
                    ``(A) Postal Service annuitants and family members 
                who are subject to the requirements of paragraph (1) or 
                (2)--
                            ``(i) are informed, at the time of 
                        enrollment under this chapter, of such 
                        requirement; and
                            ``(ii) except as provided in paragraph (4), 
                        as a consequence of such enrollment are deemed 
                        to have elected to be enrolled under Medicare 
                        part B (under subsection (m)(1) of section 1837 
                        of the Social Security Act (42 U.S.C. 1395p)) 
                        in connection with the enrollment in a PSHBP 
                        plan under this chapter; and
                    ``(B) the Office provides the Secretary of Health 
                and Human Services and the Commissioner of Social 
                Security in a timely manner with such information 
                respecting such annuitants and family members and such 
                election as may be required to effect their enrollment 
                and coverage under Medicare part B and this section in 
                a timely manner.
            ``(4) Waiver for extreme financial hardship.--
                    ``(A) In general.--The Postal Service, in 
                consultation with recognized labor organizations and 
                management organizations, shall establish a waiver 
                program under which the requirement to enroll in 
                Medicare part B under paragraph (1) or (2), as 
                applicable, is waived for Postal Service annuitants and 
                family members who demonstrate extreme financial 
                hardship.
                    ``(B) Effect of waiver.--If the applicable 
                requirement described in subparagraph (A) is waived for 
                a Postal Service annuitant or family member--
                            ``(i) the Postal Service shall notify the 
                        Office of the waiver; and
                            ``(ii) the annuitant or family member shall 
                        not be deemed to have elected to be enrolled 
                        under Medicare part B as described in paragraph 
                        (3)(A)(ii).
    ``(f) Medicare Coordination.--
            ``(1) In general.--The Office shall require each PSHBP plan 
        to provide benefits for Medicare eligible individuals pursuant 
        to the standard coordination of benefits method used under this 
        chapter, rather than the exclusion method or the carve-out 
        method.
            ``(2) Medicare part d prescription drug benefits.--The 
        Office shall require each PSHBP plan to provide qualified 
        prescription drug coverage for Postal Service annuitants and 
        family members who are part D eligible individuals (as defined 
        in section 1860D-1(a)(3)(A) of the Social Security Act (42 
        U.S.C. 1395w-101(a)(3)(A)) under a prescription drug plan under 
        Medicare part D pursuant to the provisions of section 1860D-
        22(b) (commonly referred to as an `employer group waiver 
        plan'). For purposes of the preceding sentence, the carrier 
        offering the PSHBP plan shall be deemed to be the sponsor of 
        the plan for purposes of Medicare part D.
    ``(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 the year before the initial 
        contract year), the Office shall determine the weighted average 
        of the rates established pursuant to subsection (c)(2) for 
        PSHBP 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 such weighted average of the rates for 
        the initial contract year, 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 of 
        the year before the initial contract year.
    ``(h) Reserves.--
            ``(1) Separate reserves.--
                    ``(A) In general.--The Office shall ensure that 
                each PSHBP plan maintains separate reserves (including 
                a separate contingency reserve) with respect to the 
                enrollees in the PSHBP plan in accordance with section 
                8909.
                    ``(B) References.--For purposes of the Postal 
                Service Health Benefits Program, each reference to `the 
                Government' in section 8909 shall be deemed to be a 
                reference to the Postal Service.
                    ``(C) Amounts to be credited.--The reserves 
                (including the separate contingency reserve) maintained 
                by each PSHBP plan shall be credited with a 
                proportionate amount of the funds in the existing 
                reserves for health benefits plans offered by an 
                initial participating carrier.
            ``(2) Discontinuation of pshbp plan.--In applying section 
        8909(e) relating to a PSHBP 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 PSHBP 
        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) Medicare Education Program.--Not later than 180 days after 
the date of enactment of this section, the Postal Service shall 
establish a Medicare Education Program, under which the Postal Service 
shall--
            ``(1) notify annuitants and employees of the Postal Service 
        about the Postal Service Health Benefits Program;
            ``(2) provide information regarding the Postal Service 
        Health Benefits Program to such annuitants and employees, 
        including--
                    ``(A) a description of the health care options 
                available under the Postal Service Health Benefits 
                Program;
                    ``(B) the requirement that annuitants be enrolled 
                in Medicare under subsection (e)(1); and
                    ``(C) the premium subsidies under section 103 of 
                the Postal Service Reform Act of 2018; and
            ``(3) respond and provide answers to any inquiry from such 
        annuitants and employees about the Postal Service Health 
        Benefits Program or Medicare enrollment.''.
            (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 enrollment and coverage.--Section 1837 of the 
        Social Security Act (42 U.S.C. 1395p) is amended by adding at 
        the end the following new subsection:
    ``(m)(1) In the case of an individual who--
            ``(A) is (i) a Postal Service Medicare eligible annuitant, 
        or (ii) an individual who is a family member of such an 
        annuitant and is a Medicare eligible individual;
            ``(B) enrolls in a PSHBP plan under section 8903c of title 
        5, United States Code; and
            ``(C) is not enrolled under this part,
the individual is deemed, in accordance with section 8903c(e)(3) of 
such title, to have elected to be enrolled under this part.
    ``(2) In the case of an individual who is deemed to have elected to 
be enrolled under paragraph (1), the coverage period under this part 
shall begin on the date that the individual first has coverage under 
the PSHBP plan pursuant to the enrollment described in paragraph 
(1)(B).
    ``(3) The provisions of section 1838(b) shall apply to an 
individual who is deemed to have elected to be enrolled under paragraph 
(1).
    ``(4) The Secretary, the Commissioner of Social Security, the 
United States Postal Service, and the Office of Personnel Management 
shall coordinate to monitor premiums paid by individuals who are deemed 
to have elected to be enrolled under paragraph (1) for purposes of 
determining whether those individuals are in compliance with the 
applicable requirements under section 8903c(e) of title 5, United 
States Code.
    ``(5) The definitions in section 8903c(a) of title 5, United States 
Code, shall apply for purposes of this subsection.''.
            (2) Waiver of increase of premium.--Section 1839(b) of the 
        Social Security Act (42 U.S.C. 1395r(b)) is amended by 
        inserting after ``section 1837,'' the following: ``and not 
        pursuant to a deemed enrollment under subsection (m) of such 
        section during the open season for the initial contract year 
        (as defined in section 8903c(a) of title 5, United States Code) 
        of the Postal Service Health Benefits Program,''.
            (3) Conforming coordination of benefit rules.--Section 
        1862(b) of the Social Security Act (42 U.S.C. 1395y(b)) is 
        amended by adding at the end the following:
            ``(10) Coordination of benefits with postal service health 
        benefits plans.--Paragraphs (1) through (9) shall apply except 
        to the extent that the Secretary, in consultation with the 
        Office of Personnel Management, determines those paragraphs to 
        be inconsistent with section 8903c(f) of title 5, United States 
        Code.''.

SEC. 102. POSTAL SERVICE RETIREE HEALTH CARE BENEFIT FUNDING REFORM.

    (a) Contributions.--Section 8906(g) of title 5, United States Code, 
is amended--
            (1) by striking ``(2)(A) The Government'' and inserting 
        ``(2)(A)(i) The Government''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) in clause (i), as added by paragraph 
                        (1), by striking ``shall through September 30, 
                        2016, be paid'' and all that follows and 
                        inserting the following: ``shall be paid as 
                        provided in clause (ii).''; and
                            (ii) by adding at the end the following:
    ``(ii) With respect to the Government contributions required to be 
paid under clause (i)--
            ``(I) the portion of the contributions that is equal to the 
        amount of the net claims costs under the enrollment of the 
        individuals described in clause (i) shall be paid from the 
        Postal Service Retiree Health Benefits Fund up to the amount 
        contained in the Fund; and
            ``(II) any remaining amount shall be paid by the United 
        States Postal Service.''; and
                    (B) by adding at the end the following:
    ``(C) For purposes of this paragraph, the amount of the net claims 
costs under the enrollment of an individual described in subparagraph 
(A)(i) shall be the amount, as determined by the Office over any 
particular period of time, equal to the difference between--
            ``(i) the sum of--
                    ``(I) 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, the individual and any other person 
                covered under the enrollment of the individual; and
                    ``(II) an amount of indirect expenses reasonably 
                allocable to the provision, payment, or reimbursement 
                described in subclause (I), as determined by the 
                Office; and
            ``(ii) the amount withheld from the annuity of the 
        individual or otherwise paid by the individual under this 
        section.
    ``(D) Any computation by the Office under this section that relates 
to an individual described in subparagraph (A)(i) of this paragraph 
shall be made in consultation with the United States Postal Service.''.
    (b) Postal Service Retiree Health Benefits Fund.--Section 8909a(d) 
of title 5, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``Office'' and inserting ``United 
                States Postal Service''; and
                    (B) by striking ``required under section 
                8906(g)(2)(A)'' and inserting the following: ``required 
                to be paid from the Postal Service Retiree Health 
                Benefits Fund under section 8906(g)(2)(A)(ii)(I)'';
            (2) by striking paragraphs (2) and (4);
            (3) by redesignating paragraph (3) as paragraph (4);
            (4) by inserting after paragraph (1) the following:
    ``(2) The United States Postal Service shall make sufficient 
payments into the Fund, in accordance with paragraphs (4) and (5)(B), 
so that the value of the assets of the Fund is equal to the Postal 
Service actuarial liability.
    ``(3)(A) Not later than June 30, 2019, the United States Postal 
Service shall compute, and by June 30 of each succeeding year, the 
United States Postal Service shall recompute, a schedule including a 
series of annual installments that provide for the liquidation of the 
amount described under subparagraph (B) (regardless of whether the 
amount is a liability or surplus) by September 30 of the first fiscal 
year that begins 40 years after the date of enactment of the Postal 
Service Reform Act of 2018 (unless the schedule is extended as provided 
in paragraph (4)(C)(ii)(II)), including interest at the rate used in 
the computations under this subsection.
    ``(B) The amount described in this subparagraph is the amount, as 
of the date on which the applicable computation or recomputation under 
subparagraph (A) is made, that is equal to the difference between--
            ``(i) 80 percent of the Postal Service actuarial liability 
        as of September 30 of the preceding fiscal year; and
            ``(ii) the value of the assets of the Postal Service 
        Retiree Health Benefits Fund as of September 30 of the 
        preceding fiscal year.'';
            (5) in paragraph (4), as so redesignated--
                    (A) in subparagraph (A)--
                            (i) in clause (iii), by adding ``and'' at 
                        the end;
                            (ii) in clause (iv), by striking the 
                        semicolon at the end and inserting a period; 
                        and
                            (iii) by striking clauses (v) through (x);
                    (B) in subparagraph (B)--
                            (i) in clause (i), by striking ``paragraph 
                        (1)'' and inserting ``paragraph (1), except to 
                        the extent the payment would cause the value of 
                        the assets in the Fund to exceed the Postal 
                        Service actuarial liability''; and
                            (ii) in clause (ii)--
                                    (I) by inserting ``except as 
                                provided in subparagraph (C),'' before 
                                ``any''; and
                                    (II) by striking ``paragraph 
                                (2)(B).'' and inserting ``paragraph 
                                (3).''; and
                    (C) by adding at the end the following:
    ``(C)(i) Upon request by the United States Postal Service, the 
Postal Regulatory Commission may waive the annual installment payment 
required to be made in a fiscal year under subparagraph (B)(ii) if the 
United States Postal Service meets conditions established by the Postal 
Regulatory Commission related to--
            ``(I) financial stability and retained earnings; and
            ``(II) the capability to maintain a high level of service.
    ``(ii) If the Postal Regulatory Commission waives the annual 
installment payment required to be made in a fiscal year under 
subparagraph (B)(ii)--
            ``(I) for purposes of any financial reporting by the United 
        States Postal Service, the payment shall be deemed to have been 
        made; and
            ``(II) the United States Postal Service shall extend the 
        liquidation schedule under paragraph (3)(A) by 1 year.
    ``(iii) If the United States Postal Service does not request a 
waiver of the annual installment payment required to be made in a 
fiscal year under subparagraph (B)(ii) and does not make the payment, 
the United States Postal Service may not increase rates for market-
dominant products under section 3622 of title 39 during the following 
fiscal year.'';
            (6) by redesignating paragraph (6) as paragraph (8);
            (7) by striking paragraph (5) and inserting the following:
    ``(5)(A) Concurrently with each computation or recomputation under 
paragraph (3), the United States Postal Service shall compute the 
amount, as of the date of the computation, that is equal to the 
difference between--
            ``(i) the Postal Service actuarial liability as of 
        September 30 of the preceding fiscal year; and
            ``(ii) the value of the assets of the Postal Service 
        Retiree Health Benefits Fund as of September 30 of the 
        preceding fiscal year.
    ``(B) If the United States Postal Service disposes of any property 
owned or leased by the United States Postal Service, and, based on the 
most recent computation under subparagraph (A), the amount described in 
clause (i) of that subparagraph is greater than the amount described in 
clause (ii) of that subparagraph, the United States Postal Service 
shall pay into the Fund the lesser of--
            ``(i) the amount of net profit to the United States Postal 
        Service resulting from the disposal of property (as determined 
        by the Postal Regulatory Commission); or
            ``(ii) the amount computed under subparagraph (A).
    ``(C) The United States Postal Service shall make each payment 
required under subparagraph (B) without regard to whether the United 
States Postal Service has completed the annual installment payments 
required under paragraph (4)(B)(ii), as scheduled under paragraph 
(3)(A).
    ``(6) Computations under this subsection shall be based on--
            ``(A) 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
            ``(B) any other methods and assumptions, including a health 
        care cost trend rate, that the Director of the Office 
        determines to be appropriate.
    ``(7)(A) The Office shall provide to the United States Postal 
Service any data necessary for computations under this subsection.
    ``(B) Upon computing an amount or schedule under this subsection 
for a fiscal year, the United States Postal Service shall provide the 
data used for the computation to the Postal Regulatory Commission for 
review of the computation.
    ``(C) Not later than 30 days after receiving data from the United 
States Postal Service under subparagraph (B), the Postal Regulatory 
Commission, in consultation with the United States Postal Service, 
shall--
            ``(i) determine whether the amount or schedule was computed 
        in accordance with this subsection;
            ``(ii) if the amount or schedule was computed in accordance 
        with this subsection, submit to the Office a certification that 
        the amount or schedule is the definitive amount or schedule for 
        that fiscal year; and
            ``(iii) if the amount or schedule was not computed in 
        accordance with this subsection, request that the Office 
        recompute the amount or schedule.
    ``(D)(i) Not later than 30 days after receiving a request from the 
Postal Regulatory Commission under subparagraph (C)(iii), the Office 
shall recompute the amount or schedule.
    ``(ii) If the Office recomputes an amount or schedule under clause 
(i), the recomputed amount or schedule shall be the definitive amount 
or schedule for that fiscal year for purposes of this subsection.''; 
and
            (8) by adding at the end the following:
    ``(9) In this subsection, the term `Postal Service actuarial 
liability' means the difference between--
            ``(A) the net present value of future payments required to 
        be paid from the Postal Service Retiree Health Benefits Fund 
        under section 8906(g)(2)(A)(ii)(I) for current and future 
        United States Postal Service annuitants; and
            ``(B) the net present value as computed under paragraph (1) 
        attributable to the future service of United States Postal 
        Service employees.
    ``(10) For purposes of computing an amount under paragraph (1) or 
(9)(A), section 8906(g)(2)(A)(ii)(I) shall be applied as though `up to 
the amount contained in the Fund' were struck.''.
    (c) Cancellation of Certain Unpaid Obligations of the Postal 
Service.--Any obligation of the Postal Service under section 
8909a(d)(3)(A) 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 
such date of enactment is canceled.
    (d) One-time Transfer to Medicare Funds.--
            (1) Definitions.--In this subsection--
                    (A) the term ``applicable fiscal year'' means the 
                first fiscal year beginning on or after October 1, 
                2020, in which the amount computed under paragraph 
                (3)(B) of section 8909a(d) of title 5, United States 
                Code (as amended by subsection (b)) is a surplus; and
                    (B) the term ``Medicare fund'' means--
                            (i) the Federal Hospital Insurance Trust 
                        Fund under section 1817 of the Social Security 
                        Act (42 U.S.C. 1395i);
                            (ii) the Federal Supplementary Medical 
                        Insurance Trust Fund under section 1841 of such 
                        Act (42 U.S.C. 1395t); and
                            (iii) the Medicare Prescription Drug 
                        Account under section 1860D-16 of such Act (42 
                        U.S.C. 1395w-116).
            (2) Transfer required.--Not later than 30 days after the 
        date on which the schedule under paragraph (3)(A) of section 
        8909a(d) of title 5, United States Code (as amended by 
        subsection (b)) in the applicable fiscal year is certified by 
        the Commission or recomputed by the Office of Personnel 
        Management, as applicable under paragraph (6) of such section 
        8909a(d)--
                    (A) the Secretary of Health and Human Services 
                shall--
                            (i) estimate the amount of the increased 
                        expenditures required from the Medicare funds, 
                        including the amount required from each such 
                        fund, by reason of the requirements under 
                        section 8903c(e) of title 5, United States Code 
                        (as added by section 101(a)(1) of this Act) for 
                        the 10-year period beginning on the date of 
                        enactment of this Act; and
                            (ii) notify the Secretary of the Treasury 
                        and the Postal Service of the amount estimated 
                        under clause (i); and
                    (B) the Secretary of the Treasury shall transfer 
                from the Postal Service Retiree Health Benefits Fund to 
                the Medicare funds an amount equal to the amount 
                estimated by the Secretary of Health and Human Services 
                under subparagraph (A)(i), in accordance with paragraph 
                (3) of this subsection.
            (3) Distribution.--An amount transferred under subparagraph 
        (B) of paragraph (2) shall be divided among the Medicare funds 
        in proportion to the increased expenditures required from each 
        such fund, as estimated by the Secretary of Health and Human 
        Services under subparagraph (A)(i) of that paragraph.
    (e) Technical and Conforming Amendment.--The heading of section 
8909a of title 5, United States Code, is amended by striking 
``Benefit'' and inserting ``Benefits''.
    (f) Sense of Congress.--It is the sense of Congress that nothing in 
this section or the amendments made by this section is intended to 
establish a precedent with respect to Federal employees at large, given 
that the Postal Service is a unique entity within the Federal 
Government and benefits for employees of the Postal Service are only 
partially integrated with benefits for Federal employees at large.

SEC. 103. MEDICARE PART B PREMIUM SUBSIDY FOR NEWLY ENROLLING POSTAL 
              SERVICE ANNUITANTS AND FAMILY MEMBERS.

    (a) Definitions.--In this section--
            (1) the term ``eligible individual'' means a Postal Service 
        annuitant, or a family member of a Postal Service annuitant, 
        who--
                    (A) newly enrolls in Medicare part B during the 
                open season for the initial contract year pursuant to a 
                deemed enrollment under subsection (m) of section 1837 
                of the Social Security Act (42 U.S.C. 1395p), as added 
                by section 101 of this Act; and
                    (B) is not eligible for Medicare cost-sharing or 
                any other subsidies for Medicare part B premium 
                payments;
            (2) the term ``initial contract year'' has the meaning 
        given the term in section 8903c(a) of title 5, United States 
        Code, as added by section 101 of this Act;
            (3) the term ``Medicare cost-sharing'' means Medicare cost-
        sharing described in section 1905(p)(3)(A)(ii) of the Social 
        Security Act (42 U.S.C. 1396d(p)(3)(A)(ii)) under a State plan 
        under title XIX of that Act (42 U.S.C. 1396 et seq.);
            (4) the term ``Medicare part B'' means the Medicare program 
        for supplementary medical insurance benefits under part B of 
        title XVIII of the Social Security Act (42 U.S.C. 1395j et 
        seq.); and
            (5) the term ``Postal Service annuitant'' has the meaning 
        given the term in section 8903c(a) of title 5, United States 
        Code, as added by section 101 of this Act.
    (b) Subsidies.--With respect to the monthly Medicare part B premium 
payments of eligible individuals (taking into account any adjustments, 
including those under subsections (b) and (i) of section 1839 of the 
Social Security Act (42 U.S.C. 1395r)), the Postal Service--
            (1) in the initial contract year, shall subsidize 75 
        percent of the Medicare part B premium payments;
            (2) in the first year after the initial contract year, 
        shall subsidize 50 percent of the Medicare part B premium 
        payments; and
            (3) in the second year after the initial contract year, 
        shall subsidize 25 percent of the Medicare part B premium 
        payments.
    (c) Fund.--The Postal Service shall establish a fund to provide the 
subsidies required under subsection (b).

SEC. 104. POSTAL SERVICE PENSION FUNDING REFORM.

    (a) Civil Service Retirement System.--Section 8348(h) of title 5, 
United States Code, is amended--
            (1) in paragraph (2), by striking subparagraphs (B) and (C) 
        and inserting the following:
    ``(B) The Office shall redetermine the Postal surplus or 
supplemental liability as of the close of the fiscal year, for each 
fiscal year beginning after September 30, 2016. Subject to subparagraph 
(C), beginning June 15, 2018, if the result is a surplus or a 
supplemental liability, the Office shall establish an amortization 
schedule, including a series of annual installments commencing on 
September 30 of the subsequent fiscal year, which provides for the 
liquidation of the surplus or liability to the Postal Service or the 
Fund (as the case may be) by September 30, 2043.
    ``(C) Not later than June 30, 2033, the Office shall determine, and 
thereafter shall redetermine as necessary, but not more frequently than 
once per year, the appropriate date by which to complete the 
liquidation of any remaining surplus or liability determined under this 
paragraph. The appropriate date shall be determined in accordance with 
generally accepted actuarial practices and principles and shall not be 
later than 15 years after the date on which the determination is 
made.''; and
            (2) by adding at the end the following:
    ``(4) For the purpose of carrying out paragraph (1), for fiscal 
year 2017 and each fiscal year thereafter, the Office shall use--
            ``(A) demographic factors specific to current and former 
        employees of the United States Postal Service, unless such data 
        cannot be generated; and
            ``(B) economic assumptions regarding wage and salary growth 
        that reflect the specific past, and likely future, pay for 
        current employees of the United States Postal Service.''.
    (b) Federal Employees Retirement System Liability Assumption 
Reform.--Section 8423 of title 5, United States Code, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A)--
                                    (I) in clause (i), by striking 
                                ``subparagraph (B)),'' and inserting 
                                ``subparagraph (B) or (C)),''; and
                                    (II) in clause (ii), by striking 
                                ``and'' at the end;
                            (ii) in subparagraph (B)(ii), by striking 
                        the period at the end and inserting ``; and''; 
                        and
                            (iii) by adding at the end the following:
            ``(C) the product of--
                    ``(i) the normal-cost percentage, as determined for 
                employees (other than employees covered by subparagraph 
                (B)) of the United States Postal Service under 
                paragraph (5), multiplied by
                    ``(ii) the aggregate amount of basic pay payable by 
                the United States Postal Service, for the period 
                involved, to employees of the United States Postal 
                Service.''; and
                    (B) by adding at the end the following:
    ``(5)(A) In determining the normal-cost percentage for employees of 
the United States Postal Service for purposes of paragraph (1)(C), the 
Office shall use--
            ``(i) demographic factors specific to such employees, 
        unless such data cannot be generated; and
            ``(ii) economic assumptions regarding wage and salary 
        growth that reflect the specific past, and likely future, pay 
        for such employees.
    ``(B) The United States Postal Service shall provide any data or 
projections the Office requires in order to determine the normal-cost 
percentage for employees of the United States Postal Service, 
consistent with subparagraph (A).
    ``(C) The Office shall review the determination of the normal-cost 
percentage for employees of the United States Postal Service and make 
such adjustments as the Office considers necessary--
            ``(i) upon request of the United States Postal Service, but 
        not more frequently than once each fiscal year; and
            ``(ii) at such other times as the Office considers 
        appropriate.
    ``(6) For the purpose of carrying out subsection (b)(1)(B), and 
consistent with paragraph (5), for fiscal year 2017, and each fiscal 
year thereafter, the Office shall use--
            ``(A) demographic factors specific to current and former 
        employees of the United States Postal Service, unless such data 
        cannot be generated; and
            ``(B) economic assumptions regarding wage and salary growth 
        that reflect the specific past, and likely future, pay for 
        current employees of the United States Postal Service.''; and
            (2) in subsection (b)--
                    (A) by redesignating paragraph (5) as paragraph 
                (6); and
                    (B) by inserting after paragraph (4) the following:
    ``(5)(A) In this paragraph, the term `postal funding surplus' means 
the amount by which the amount of the supplemental liability computed 
under paragraph (1)(B) is less than zero.
    ``(B) If the amount of supplemental liability computed under 
paragraph (1)(B) as of the close of any fiscal year after the date of 
enactment of the Postal Service Reform Act of 2018 is less than zero, 
the Office shall establish an amortization schedule, including a series 
of equal annual installments that--
            ``(i) provide for the liquidation of the postal funding 
        surplus in 30 years, commencing on September 30 of the 
        subsequent fiscal year; and
            ``(ii) shall be transferred to the Postal Service Fund.''.

SEC. 105. SUPERVISORY AND OTHER MANAGERIAL ORGANIZATIONS.

    Not later than 3 years after the date of enactment of this Act, the 
Inspector General of the Postal Service shall submit to Congress a 
report on compliance by the Postal Service with outcomes of 
consultative discussions under section 1004(e) of title 39, United 
States Code, held with postal management organizations on changes in, 
or termination of, pay policies and schedules and fringe benefit 
programs for members of the postal management organization, including 
changes in, or termination of, policies governing pay-for-performance 
systems covering supervisory and management employees.

SEC. 106. RIGHT OF APPEAL TO MERIT SYSTEMS PROTECTION BOARD.

    Section 1005(a)(4)(A)(ii)(I) of title 39, United States Code, is 
amended to read as follows:
                    ``(I) is an employee of the Postal Service or the 
                Office of the Inspector General who is not represented 
                by a bargaining representative recognized under section 
                1203; and''.

               TITLE II--POSTAL SERVICE OPERATIONS REFORM

SEC. 201. GOVERNANCE REFORM.

    (a) Board of Governors.--
            (1) In general.--Section 202 of title 39, United States 
        Code, is amended to read as follows:
``Sec. 202. Board of Governors
    ``(a) In General.--There is established in the Postal Service a 
Board of Governors composed of 5 Governors, a Postmaster General, and a 
Deputy Postmaster General, all of whom shall be appointed in accordance 
with this section. The Governors shall have the power to--
            ``(1) exercise the powers of the Postal Service, consistent 
        with section 203(c);
            ``(2) appoint, fix the term of service of, and remove the 
        Postmaster General;
            ``(3) in consultation with the Postmaster General, appoint, 
        fix the term of service of, and remove the Deputy Postmaster 
        General;
            ``(4) set the strategic direction of postal operations and 
        approve the pricing and product strategy for the Postal 
        Service;
            ``(5) set the compensation of the Postmaster General and 
        the Deputy Postmaster General in accordance with private sector 
        best practices, as determined by the Governors pursuant to 
        section 3686; and
            ``(6) carry out any other duties specifically provided for 
        in this title.
    ``(b) Appointment; Pay.--
            ``(1) In general.--The Governors shall be appointed by the 
        President, by and with the advice and consent of the Senate, 
        not more than 3 of whom may be adherents of the same political 
        party. The Governors shall elect a Chair from among their 
        members. The Governors shall represent the public interest 
        generally, and shall be chosen solely on the basis of their 
        experience in the field of public administration, law, or 
        accounting, or on their demonstrated ability in managing 
        organizations or corporations (in either the public or private 
        sector) of substantial size, except that at least 3 of the 
        Governors shall be chosen solely on the basis of their 
        demonstrated ability in managing organizations or corporations 
        (in either the public or private sector) that employ at least 
        10,000 employees. The Governors shall not be representatives of 
        specific interests using the Postal Service, and may be removed 
        only for cause.
            ``(2) Compensation.--Each Governor shall receive a salary 
        of $30,000 a year plus $300 a day for not more than 42 days of 
        meetings each year and shall be reimbursed for travel and 
        reasonable expenses incurred in attending meetings of the 
        Board. Nothing in the preceding sentence shall be construed to 
        limit the number of days of meetings each year to 42 days.
            ``(3) Consultation.--In selecting the individuals described 
        in paragraph (1) for nomination for appointment to the position 
        of Governor, the President should consult with the Speaker of 
        the House of Representatives, the minority leader of the House 
        of Representatives, the majority leader of the Senate, and the 
        minority leader of the Senate.
    ``(c) Terms of Governors.--
            ``(1) In general.--The terms of the 5 Governors shall be 7 
        years, except that the terms of the 5 Governors first taking 
        office shall expire as designated by the President at the time 
        of appointment, 1 at the end of 1 year, 1 at the end of 2 
        years, 1 at the end of 3 years, 1 at the end of 4 years, and 1 
        at the end of 5 years, following the appointment of the first 
        of them. Any Governor appointed to fill a vacancy before the 
        expiration of the term for which the Governor's predecessor was 
        appointed shall serve for the remainder of such term. A 
        Governor may continue to serve after the expiration of the 
        Governor's term until such Governor's successor has qualified, 
        but not to exceed one year.
            ``(2) Limitation.--No individual may serve more than 2 
        terms as a Governor.
    ``(d) Staff.--The Chair of the Board of Governors shall ensure that 
the Board has appropriate independent staff to carry out the roles and 
responsibilities of the Board and the Governors.''.
            (2) Application.--Any individual serving as a Governor on 
        the Board of Governors of the Postal Service on the date of 
        enactment of this Act shall continue to serve as a Governor 
        until the term applicable to such individual expires (as 
        determined under section 202(b) of title 39, United States 
        Code, as in effect before the amendments made by this section 
        take effect pursuant to subsection (g)).
    (b) Postmaster General.--
            (1) In general.--Section 203 of title 39, United States 
        Code, is amended to read as follows:
``Sec. 203. Postmaster General
    ``(a) In General.--The chief executive officer of the Postal 
Service is the Postmaster General, appointed pursuant to section 
202(a)(2). The alternate chief executive officer of the Postal Service 
is the Deputy Postmaster General, appointed pursuant to section 
202(a)(3).
    ``(b) Powers.--Consistent with the requirements of this title, the 
exercise of the power of the Postal Service shall be vested in the 
Governors and carried out by the Postmaster General in a manner 
consistent with the strategic direction and pricing and product 
strategy approved by the Governors. The Postmaster General shall, in 
accordance with bylaws determined appropriate by the Board, consult 
with the Governors and the Deputy Postmaster General in carrying out 
such power.''.
            (2) Conforming amendment.--The item relating to section 203 
        in the table of sections for chapter 2 of title 39, United 
        States Code, is amended to read as follows:

``203. Postmaster General.''.
    (c) Procedures of the Board.--Section 205 of title 39, United 
States Code, is amended to read as follows:
``Sec. 205. Procedures of the Board of Governors and the Governors
    ``(a) Vacancies.--Vacancies in the Board shall not impair the 
powers of the Board or the Governors under this title.
    ``(b) Vote.--The Board and the Governors shall act upon majority 
vote of those members who are present, subject to such quorum 
requirements as the Board and the Governors may respectively establish.
    ``(c) Limitation.--No officer or employee of the United States may 
serve concurrently as a Governor. A Governor may hold any other office 
or employment not inconsistent or in conflict with the Governor's 
duties, responsibilities, and powers as an officer of the Government of 
the United States in the Postal Service.''.
    (d) Delegation of Authority.--Section 402 of title 39, United 
States Code, is amended to read as follows:
``Sec. 402. Delegation of authority
    ``(a) Postmaster General.--The Postmaster General may delegate his 
or her authority under such terms, conditions, and limitations, 
including the power of redelegation, as he or she determines desirable. 
The Postmaster General may establish such committees of officers and 
employees of the Postal Service, and delegate such powers to any 
committee, as the Postmaster General determines appropriate to carry 
out his or her functions and duties. Delegations under this section 
shall be consistent with other provisions of this title, shall not 
relieve the Postmaster General of full responsibility for the carrying 
out the Postmaster General's duties and functions, and shall be 
revocable by the Postmaster General.
    ``(b) Board of Governors.--The Board may establish such committees 
of the Board, and delegate such powers to any committee, as the Board 
determines appropriate to carry out its functions and duties. 
Delegations to committees shall be consistent with other provisions of 
this title, shall not relieve the Board of full responsibility for the 
carrying out of its duties and functions, and shall be revocable by the 
Board in its exclusive judgment.''.
    (e) International Postal Arrangements.--
            (1) In general.--Section 407 of title 39, United States 
        Code, is amended by adding at the end the following:
    ``(f) After submission to the Postal Regulatory Commission by the 
Department of State of the budget detailing the estimated costs of 
carrying out the activities under this section, and the Commission's 
review and approval of such submission, the Postal Service shall 
transfer to the Department of State, from any funds available to the 
Postal Service, such sums as may be reasonable, documented, and 
auditable for the Department of State to carry out such activities.''.
            (2) Application.--The amendment made by paragraph (1) shall 
        take effect on October 1 of the first fiscal year beginning 
        after the date of enactment of this Act.
            (3) Conforming amendment.--Section 633 of title VI of the 
        Treasury and General Government Appropriations Act, 1999 
        (Public Law 105-277; 39 U.S.C. 407 note) is amended by striking 
        subsection (d).
    (f) Technical and Conforming Amendments.--Title 39, United States 
Code, is amended--
            (1) in section 102(3)--
                    (A) by striking ``9 members'' and inserting ``5 
                members''; and
                    (B) by striking ``section 202(a)'' and inserting 
                ``section 202(b)(1)'';
            (2) in section 204--
                    (A) by striking ``the Board'' and inserting ``the 
                Postmaster General''; and
                    (B) by striking ``the Governors and'';
            (3) in section 207, by striking ``the Board'' and inserting 
        ``the Postal Service'';
            (4) in section 414(b)(2), by striking ``the Governors'' 
        each place the term appears and inserting ``the Postal 
        Service'';
            (5) in section 416(c)--
                    (A) by striking ``the Governors'' and inserting 
                ``the Postal Service''; and
                    (B) by striking ``they'' and inserting ``the Postal 
                Service'';
            (6) in section 1011, by striking ``the Board'' and 
        inserting ``the Postal Service'';
            (7) by striking section 2402 and inserting the following:
``Sec. 2402. Annual report
    ``The Postmaster General shall render an annual report concerning 
the operations of the Postal Service under this title to the President 
and Congress.'';
            (8) in section 3632--
                    (A) by striking the section heading, and inserting 
                ``Establishment of rates and classes of competitive 
                products'';
                    (B) by striking subsection (a) and redesignating 
                subsections (b) and (c) as subsections (a) and (b), 
                respectively;
                    (C) in paragraph (a)(2) (as redesignated by 
                subparagraph (B)), by striking ``and the record of the 
                Governors' proceedings in connection with such 
                decision'';
                    (D) in paragraph (a)(3) (as redesignated by 
                subparagraph (B))--
                            (i) by striking ``and the record of the 
                        proceedings in connection with such decision''; 
                        and
                            (ii) by striking ``the Governors consider'' 
                        and inserting ``the Postal Service considers''; 
                        and
                    (E) by striking ``the Governors'' each place the 
                term appears and inserting ``the Postal Service''; and
            (9) in the table of sections for chapter 36, by striking 
        the item relating to section 3632 and inserting the following:

``3632. Establishment of rates and classes of competitive products.''.
    (g) Delayed Effective Date.--The amendments made by this section 
shall take effect on the date that is 30 days after the date of 
enactment of this Act.

SEC. 202. MODERNIZING POSTAL RATES.

    (a) Adequacy, Efficiency, and Fairness of Postal Rates.--
            (1) Objectives.--Section 3622(b) of title 39, United States 
        Code, is amended--
                    (A) in paragraph (2), by inserting ``and ensure'' 
                after ``create'';
                    (B) in paragraph (3)--
                            (i) by inserting ``and meet'' after 
                        ``maintain''; and
                            (ii) by inserting ``, with a focus on 
                        achieving predictable and consistent delivery'' 
                        before the period at the end;
                    (C) in paragraph (5), by inserting ``establish 
                and'' before ``maintain'';
                    (D) in paragraph (6), by striking ``process'' and 
                inserting ``and cost attribution processes''; and
                    (E) in paragraph (9), by inserting ``(and to ensure 
                appropriate levels of transparency)'' before the period 
                at the end.
            (2) Factors.--Section 3622(c) of title 39, United States 
        Code, is amended to read as follows:
    ``(c) Factors.--In establishing or revising such system, the Postal 
Regulatory Commission shall take into account the following factors:
            ``(1) The effect of rate increases upon the general public 
        and business mail users.
            ``(2) The available alternative means of sending and 
        receiving written communications, information, and letters and 
        other mail matter at reasonable costs.
            ``(3) The reliability of delivery timelines and the extent 
        to which the Postal Service is meeting its service standard 
        obligations.
            ``(4) The need to ensure that the Postal Service has 
        adequate revenues and has taken appropriate cost-cutting 
        measures to maintain financial stability and meet all legal 
        obligations.
            ``(5) The extent to which the Postal Service has taken 
        actions to increase its efficiency and reduce its costs.
            ``(6) The value of the mail service actually provided by 
        each class or type of mail service to both the sender and the 
        recipient, including the collection, mode of transportation, 
        and priority of delivery.
            ``(7) The requirement that each class of mail or type of 
        mail service bear the direct and indirect postal costs 
        attributable to each class or type of mail service through 
        reliably identified causal relationships plus that portion of 
        all other costs of the Postal Service reasonably assignable to 
        such class or type.
            ``(8) The degree of preparation of mail for delivery into 
        the postal system performed by the mailer and its effect upon 
        improving efficiency and reducing costs to the Postal Service.
            ``(9) Simplicity of structure for the entire schedule and 
        simple, identifiable relationships between the rates or fees 
        charged the various classes of mail for postal services.
            ``(10) The importance of pricing flexibility to encourage 
        increased mail volume and operational efficiency.
            ``(11) The relative value to postal users of the kinds of 
        mail matter entered into the postal system and the desirability 
        and justification for special classifications and services of 
        mail.
            ``(12) The importance of providing classifications with 
        extremely high degrees of reliability and speed of delivery and 
        of providing those that do not require high degrees of 
        reliability and speed of delivery.
            ``(13) The desirability of special classifications for both 
        postal users and the Postal Service in accordance with the 
        policies of this title, including agreements between the Postal 
        Service and postal users, when available on public and 
        reasonable terms to similarly situated mailers, that--
                    ``(A) improve the net financial position of the 
                Postal Service by reducing Postal Service costs or 
                increasing the overall contribution to the 
                institutional costs of the Postal Service; and
                    ``(B) do not cause--
                            ``(i) unfair competitive advantage for the 
                        Postal Service or postal users eligible for the 
                        agreements; or
                            ``(ii) unreasonable disruption to the 
                        volume or revenues of other postal users.
            ``(14) The educational, cultural, scientific, and 
        informational value to the recipient of mail matter.
            ``(15) The need for the Postal Service to increase its 
        efficiency and reduce its costs, including infrastructure 
        costs, to help maintain high quality, affordable postal 
        services.
            ``(16) The value to the Postal Service and postal users of 
        promoting intelligent mail and of secure, sender-identified 
        mail.
            ``(17) The importance of stability and predictability of 
        rates to ratepayers.
            ``(18) The policies of this title as well as such other 
        factors as the Commission determines appropriate.''.
            (3) Requirements.--Section 3622(d) of title 39, United 
        States Code, is amended--
                    (A) in paragraph (1)--
                            (i) by redesignating subparagraphs (B) 
                        through (E) as subparagraphs (C) through (F), 
                        respectively;
                            (ii) in subparagraph (F) (as redesignated 
                        by clause (i)) by striking ``subparagraphs (A) 
                        and (C)'' and inserting ``subparagraphs (A) and 
                        (D)''; and
                            (iii) by inserting after subparagraph (A) 
                        the following:
                    ``(B) subject to paragraph (4), establish postal 
                rates for each group of functionally equivalent 
                agreements between the Postal Service and users of the 
                mail that--
                            ``(i) cover attributable cost;
                            ``(ii) improve the net financial position 
                        of the Postal Service; and
                            ``(iii) do not cause unreasonable 
                        disruption in the marketplace, consistent with 
                        subsection (c)(13)(B);''; and
                    (B) by adding at the end the following:
            ``(4) Group of functionally equivalent agreements 
        defined.--For purposes of paragraph (1)(B), 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 
        agreements within an experimental product.''.
            (4) Technical and conforming amendments.--Section 3622 of 
        title 39, United States Code, is amended--
                    (A) in subsection (a), by striking ``, within 18 
                months after the date of enactment of this section,''; 
                and
                    (B) in subsection (d)(1)(D) (as redesignated by 
                paragraph (3)(A)), by striking ``(c)(10)'' and 
                inserting ``(c)(13)''.
    (b) Use of Negotiated Service Agreements.--
            (1) Streamlined review of qualifying service agreements for 
        competitive products.--Section 3633 of title 39, United States 
        Code, is amended by adding at the end the following:
    ``(c) Streamlined Review.--Not later than 90 days after the date of 
enactment of this subsection, after notice and opportunity for comment, 
the Postal Regulatory Commission shall promulgate (and may from time to 
time thereafter revise) regulations for streamlined after-the-fact 
review of newly proposed agreements between the Postal Service and 
users of the mail that provide rates not of general applicability for 
competitive products. Streamlined review shall apply only if agreements 
are functionally equivalent to existing agreements that have 
collectively covered attributable costs and collectively improved the 
net financial position of the Postal Service. The regulations issued 
under this subsection shall provide that streamlined review shall be 
concluded not later than 5 business days after the date on which 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 prejudice under section 3632.''.
            (2) Submission of service agreements for streamlined 
        review.--Section 3632(b) of title 39, United States Code, is 
        amended--
                    (A) by redesignating paragraph (4) as paragraph 
                (5); and
                    (B) by inserting after paragraph (3) the following:
            ``(4) Rates for streamlined review.--In the case of rates 
        not of general applicability for competitive products that the 
        Postal Service considers eligible for streamlined review under 
        section 3633(c), the Postal Service shall cause the agreement 
        to be filed with the Postal Regulatory Commission by a date 
        that is on or before the effective date of any new rate 
        established under the agreement, as the Postal Service 
        considers appropriate.''.
            (3) Transparency and accountability for service 
        agreements.--
                    (A) Certain information required to be included in 
                determinations of compliance.--Section 3653 of title 
                39, United States Code, is amended--
                            (i) by redesignating subsections (c), (d), 
                        and (e) as subsections (d), (e), and (f), 
                        respectively; and
                            (ii) by inserting after subsection (b) the 
                        following:
    ``(c) Written Determination.--Each annual written determination of 
the Commission under this section shall include the following:
            ``(1) Requirements.--For each group of functionally 
        equivalent agreements between the Postal Service and users of 
        the mail, whether such group fulfilled requirements to--
                    ``(A) cover costs attributable; and
                    ``(B) improve the net financial position of the 
                Postal Service.
            ``(2) Noncompliance.--Any group of functionally equivalent 
        agreements not meeting the requirements under subparagraphs (A) 
        and (B) of paragraph (1) shall be determined to be in 
        noncompliance under this subsection.
            ``(3) Definition.--For purposes of this subsection, a group 
        of functionally equivalent agreements shall consist of 1 or 
        more service agreements that are functionally equivalent to 
        each other within the same market-dominant or competitive 
        product, but shall not include agreements within an 
        experimental product.''.
                    (B) Technical amendment.--Section 3653(d) of title 
                39, United States Code (as redesignated by subparagraph 
                (A)), is amended by striking ``subsections (c) and 
                (e)'' and inserting ``subsections (c) and (d)''.

SEC. 203. NONPOSTAL SERVICES.

    (a) Nonpostal Services.--
            (1) In general.--Part IV of title 39, United States Code, 
        is amended by inserting 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 `attributable costs' has the meaning given 
        the term `costs attributable' in section 3631;
            ``(2) the term `nonpostal service' means a service offered 
        by the Postal Service that--
                    ``(A) is expressly authorized under this chapter; 
                and
                    ``(B) is not a postal product or service; 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 (referred to in this 
section as the `program'), 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 unless a majority of the Governors in office vote to approve 
the program by a recorded vote that is publicly disclosed on the Postal 
Service website.
    ``(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) of this section 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 such 
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 of the 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 5304); 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 the 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) of this section 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 such 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 that is 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 manner 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) Technical and conforming amendment.--The table of 
        chapters for part IV of title 39, United States Code, is 
        amended by inserting 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.

SEC. 204. SHIPPING OF WINE, BEER, AND DISTILLED SPIRITS.

    (a) Mailability.--
            (1) Nonmailable articles.--Section 1716(f) of title 18, 
        United States Code, is amended by striking ``mails'' and 
        inserting ``mails, except to the extent that the mailing is 
        allowable under section 3001(p) of title 39''.
            (2) Application of laws.--Section 1161 of title 18, United 
        States Code, is amended by inserting ``, and, with respect to 
        the mailing of distilled spirits, wine, or malt beverages (as 
        those terms are defined in section 117 of the Federal Alcohol 
        Administration Act (27 U.S.C. 211)), is in conformity with 
        section 3001(p) of title 39'' after ``Register''.
    (b) Regulations.--Section 3001 of title 39, United States Code, is 
amended by adding at the end the following:
    ``(p)(1) In this subsection, the terms `distilled spirits', `wine', 
and `malt beverage' have the same meanings as in section 117 of the 
Federal Alcohol Administration Act (27 U.S.C. 211).
    ``(2) Distilled spirits, wine, or malt beverages shall be 
considered mailable if mailed--
            ``(A) in accordance with the laws and regulations of--
                    ``(i) the State, territory, or district of the 
                United States where the sender or duly authorized agent 
                initiates the mailing; and
                    ``(ii) the State, territory, or district of the 
                United States where the addressee or duly authorized 
                agent takes delivery; and
            ``(B) to an addressee who is at least 21 years of age--
                    ``(i) who provides a signature and presents a 
                valid, government-issued photo identification upon 
                delivery; or
                    ``(ii) the duly authorized agent of whom--
                            ``(I) is at least 21 years of age; and
                            ``(II) provides a signature and presents a 
                        valid, government-issued photo identification 
                        upon delivery.
    ``(3) The Postal Service shall prescribe such regulations as may be 
necessary to carry out this subsection.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the earlier of--
            (1) the date on which the Postal Service issues regulations 
        under section 3001(p) of title 39, United States Code, as 
        amended by this section; and
            (2) the date that is 120 days after the date of enactment 
        of this Act.
    (d) No Preemption of State, Local, or Tribal Laws Prohibiting 
Deliveries, Shipments, or Sales.--Nothing in this section, the 
amendments made by this section, or any regulation promulgated under 
this section or the amendments made by this section shall be construed 
to preempt, supersede, or otherwise limit or restrict any State, local, 
or tribal law that prohibits or regulates the delivery, shipment, or 
sale of distilled spirits, wine, or malt beverages (as those terms are 
defined in section 117 of the Federal Alcohol Administration Act (27 
U.S.C. 211)).

SEC. 205. EFFICIENT AND FLEXIBLE UNIVERSAL POSTAL SERVICE.

    (a) Conditions Regarding Determinations for Post Office Closings.--
Clause (i) of section 404(d)(2)(A) of title 39, United States Code, is 
amended to read as follows:
                    ``(i) the effect of such closing or consolidation 
                on the community served by such post office, including 
                through an analysis of--
                            ``(I) the distance (as measured by public 
                        roads) to the closest postal retail facility 
                        not proposed for closing or consolidation under 
                        the determination;
                            ``(II) the characteristics of such 
                        location, including weather and terrain;
                            ``(III) whether commercial mobile service 
                        (as defined in section 332 of the 
                        Communications Act of 1934) and commercial 
                        mobile data service (as defined in section 6001 
                        of the Middle Class Tax Relief and Job Creation 
                        Act of 2012) are available in at least 80 
                        percent of the total geographic area of the ZIP 
                        codes served by the postal retail facility 
                        proposed for closing or consolidation; and
                            ``(IV) whether fixed broadband Internet 
                        access service is available to households in at 
                        least 80 percent of such geographic area at 
                        speeds not less than those sufficient for 
                        service to be considered broadband for purposes 
                        of the most recent report of the Federal 
                        Communications Commission under section 706 of 
                        the Telecommunications Act of 1996 (47 U.S.C. 
                        1302);''.
    (b) PRC Review of Determinations to Close or Consolidate a Post 
Office.--
            (1) Deadline for review.--Section 404(d)(5) title 39, 
        United States Code, is amended by striking ``120 days'' and 
        inserting ``60 days, or a longer period for good cause shown 
        but in no event longer than 120 days,''.
            (2) Applicability.--The amendment made by paragraph (1) 
        shall not apply with respect to an appeal received by the 
        Commission before the date of enactment of this Act (as 
        determined by applying the rules set forth in section 404(d)(6) 
        of such title).
    (c) Expedited Procedures.--
            (1) In general.--Section 3661 of title 39, United States 
        Code, is amended by adding at the end the following:
    ``(d)(1) The Commission shall issue its opinion within 90 days, or 
a longer period for good cause shown but in no event longer than 120 
days, after the receipt of any proposal (as referred to in subsection 
(b)) concerning an identical or substantially identical proposal on 
which the Commission has 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 Commission shall prescribe any 
        regulations necessary to carry out the amendment made by 
        paragraph (1) within 90 days after the date of enactment of 
        this Act.
            (3) Applicability.--The amendment made by this subsection 
        shall apply with respect to any proposal received by the 
        Commission on or after the earlier of--
                    (A) the date that is 90 days after the date of 
                enactment of this Act; or
                    (B) the effective date of the regulations 
                prescribed under paragraph (2).
    (d) Alternate Postal Access Choice.--Section 404(d) of title 39, 
United States Code, is amended by striking paragraph (1) and inserting 
the following:
            ``(1) Prior to making a determination under subsection 
        (a)(3) as to the necessity for the closing or consolidation of 
        a post office--
                    ``(A) the Postal Service shall provide adequate 
                notice of its intention to close or consolidate the 
                post office not later than 60 days before the proposed 
                date of the closing or consolidation to postal patrons 
                served by the post office;
                    ``(B) the Postal Service shall conduct a nonbinding 
                survey on the proposed closing or consolidation to 
                allow postal patrons served by the post office an 
                opportunity to indicate their preference between or 
                among--
                            ``(i) the closing or consolidation; and
                            ``(ii) 1 or more alternative options; and
                    ``(C) if the Postal Service determines that closing 
                or consolidating the post office is necessary--
                            ``(i) the Postal Service shall endeavor to 
                        provide alternative access to postal services 
                        to the postal patrons served by the post office 
                        by the option chosen by the highest number of 
                        survey respondents under subparagraph (B)(ii); 
                        and
                            ``(ii) if the Postal Service is unable to 
                        provide alternative access through the option 
                        identified under clause (i), or if that option 
                        is cost prohibitive--
                                    ``(I) the Postal Service may 
                                provide alternative access through a 
                                different method; and
                                    ``(II) upon selecting an 
                                alternative access method other than 
                                the option identified under clause (i), 
                                the Postal Service shall provide 
                                written notice to the postal patrons 
                                served by the post office identifying 
                                the alternative access method and 
                                explaining why the option identified 
                                under clause (i) was not possible or 
                                was cost prohibitive.''.
    (e) Applicability of Procedures Relating to Closings and 
Consolidations.--
            (1) In general.--Section 404(d) of title 39, United States 
        Code, as amended by this section, is amended by adding at the 
        end the following:
    ``(7) For purposes of this subsection, the term `post office' means 
a post office and any other postal retail facility, as defined in 
section 3 of the Postal Service Reform Act of 2018.''.
            (2) Effective date.--In the case of any post office, as 
        defined in subsection (d) of section 404 of title 39, United 
        States Code, as amended by paragraph (1), that, but for that 
        amendment, would not otherwise be subject to such subsection 
        (d), the amendments made by subsections (a) and (d) of this 
        section shall be effective with respect to any closure or 
        consolidation, the proposed effective date of which occurs on 
        or after the date that is 60 days after the date of enactment 
        of this Act.
    (f) Enhanced Reporting on Postal Service Efficiency.--Section 
3652(a) of title 39, United States Code, is amended--
            (1) in paragraph (1), by striking ``and'' at the end;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by inserting 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 Commission shall by regulation prescribe, 
        if necessary.''.
    (g) POSTPlan Study.--
            (1) In general.--Beginning not later than 30 days after the 
        date of enactment of this Act, the Inspector General of the 
        Postal Service shall conduct a 1-year review of the impacts of 
        the POSTPlan post office restructuring plan on Postal Service 
        expenses, revenue, and retail service provision.
            (2) Content.--In conducting the review under paragraph (1), 
        the Inspector General shall examine--
                    (A) changes in the costs for the provision of 
                Postal Service operated retail service, both nationwide 
                and in the aggregate for each of the Level 2, Level 4, 
                Level 6, and Level 18 post offices for which the hours, 
                functions, or responsibilities changed as a result of 
                the POSTPlan initiative before and after the 
                implementation of the POSTPlan initiative;
                    (B) changes in revenue received by Postal Service 
                operated retail service, both nationwide and in the 
                aggregate for each of the Level 2, Level 4, Level 6, 
                and Level 18 post offices for which the hours, 
                functions, or responsibilities changed as a result of 
                the POSTPlan initiative before and after the 
                implementation of the POSTPlan initiative;
                    (C) a determination of the relative cost savings, 
                taking into account any changes in revenue earned, 
                realized on an annual basis for Level 2, Level 4, Level 
                6, and Level 18 offices each in the aggregate and any 
                trends in such cost savings;
                    (D) the relative impact on retail access to postal 
                services for individuals served by Level 2, Level 4, 
                Level 6, and Level 18 offices each in the aggregate; 
                and
                    (E) any other factors the Inspector General 
                determines appropriate.
            (3) Report and recommendations.--Upon completion of the 
        review required under paragraph (1), the Inspector General 
        shall submit to the Postal Service, the Committee on Homeland 
        Security and Governmental Affairs of the Senate, and the 
        Committee on Oversight and Government Reform of the House of 
        Representatives a report containing--
                    (A) the results of the review; and
                    (B) any recommendations resulting from such review.
            (4) Postal service review.--Prior to any hour changes or 
        consolidation decisions related to POSTPlan initiative-impacted 
        post offices, the Postal Service shall--
                    (A) review the report and any recommendations 
                submitted pursuant to paragraph (3); and
                    (B) revise any planned efforts regarding the 
                POSTPlan initiative, as appropriate.

SEC. 206. FAIR STAMP-EVIDENCING COMPETITION.

    Section 404a(a) of title 39, United States Code, is amended--
            (1) in paragraph (2), by striking ``or'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(4) offer to the public any postage-evidencing product or 
        service that does not comply with any rule or regulation that 
        would be applicable to such product or service if the product 
        or service were offered by a private company.''.

SEC. 207. MARKET-DOMINANT RATES.

    (a) Establishment of Rate Baseline.--Notwithstanding any order of 
the Commission to the contrary--
            (1) not earlier than the first Sunday after the date of 
        enactment of this Act, on a date selected by the Postmaster 
        General in the exercise of the Postmaster General's 
        unreviewable discretion, the Postal Service shall reinstate, as 
        nearly as is practicable, 50 percent of the rate surcharge 
        implemented under section 3622(d)(1)(F) (as redesignated by 
        this Act) that was in effect on April 9, 2016; and
            (2) the partially reinstated surcharge reinstated pursuant 
        to paragraph (1) shall be considered a part of the rate base 
        for purposes of determining the percentage changes in rates 
        when the Postal Service files a notice of rate adjustment.
    (b) Subsequent Rate Increases.--The reinstatement described under 
subsection (a)(1) may not affect the calculation of the Postal 
Service's maximum rate adjustment authority under subpart C of part 
3010 of title 39, Code of Federal Regulations (or any successor 
regulation), for purposes of any rate increase that occurs following 
such reinstatement.
    (c) Commission Review of System for Regulating Rates and Classes 
for Market-dominant Products.--
            (1) Definitions.--In this subsection--
                    (A) the term ``initial rate regulation review'' 
                means the proceeding conducted under the order of the 
                Commission entitled, ``Statutory Review of the System 
                for Regulating Market Dominant Rates and 
                Classifications'' (81 Fed. Reg. 9507 (December 20, 
                2016)); and
                    (B) the term ``underwater product'' means a market-
                dominant class, product, or type of mail service that 
                does not bear the direct and indirect costs 
                attributable to that class, product, or type of mail 
                service under current costing procedures.
            (2) Underwater products study.--Not later than 120 days 
        after the date of enactment of this Act, the Commission, 
        without delaying completion of the initial rate regulation 
        review, shall begin a study, in conjunction with the Inspector 
        General of the Postal Service and including notice and 
        opportunity for public comment, to--
                    (A) determine whether and to what extent any 
                market-dominant classes, products, or types of mail 
                service are underwater products;
                    (B) quantify the impact of any operational 
                decisions of the Postal Service on the direct and 
                indirect costs attributable to any underwater products 
                identified under subparagraph (A); and
                    (C) determine whether any operational decisions of 
                the Postal Service have caused any direct or indirect 
                costs to be inappropriately attributed to any 
                underwater product identified under subparagraph (A).
            (3) Additional considerations.--
                    (A) In general.--Except as provided in paragraph 
                (4), the Commission shall supplement and modify, as 
                appropriate, the record of proceedings in the initial 
                rate regulation review, taking into account the 
                provisions of this Act and the amendments made by this 
                Act, before making a determination to--
                            (i) modify the system for regulating rates 
                        and classes for market-dominant products 
                        established under section 3622 of title 39, 
                        United States Code; or
                            (ii) adopt an alternative system for 
                        regulating rates and classes for market-
                        dominant products.
                    (B) Minimum considerations.--In supplementing or 
                modifying the record under subparagraph (A)--
                            (i) the Commission shall, at a minimum, 
                        recalculate the projected liabilities of the 
                        Postal Service by reason of the requirements 
                        under section 8903c(e) of title 5, United 
                        States Code (as added by section 101(a)(1) of 
                        this Act) (requiring Medicare-eligible postal 
                        annuitants enrolled in the Postal Service 
                        Health Benefits Program to also enroll in 
                        Medicare); and
                            (ii) if the Commission determines that 
                        other provisions of this Act or the amendments 
                        made by this Act reduce liabilities or increase 
                        revenues of the Postal Service, the Commission 
                        shall incorporate those changes into the 
                        calculations of the Commission.
                    (C) Consideration of underwater products study.--
                After completing any supplementation and modification 
                of the record under subparagraph (A) of this paragraph 
                and quantifying the impact of operational decisions 
                under paragraph (2)(B), the Commission shall--
                            (i) take into account the impact quantified 
                        under paragraph (2)(B) and modify, if 
                        appropriate, the record under subparagraph (A) 
                        of this paragraph;
                            (ii) incorporate the findings of the study 
                        under paragraph (2) into any subsequent 
                        adjustment to rates for underwater products 
                        identified under subparagraph (A) of that 
                        paragraph; and
                            (iii)(I) account for the cultural and 
                        informational value that underwater products 
                        identified under paragraph (2)(A) have to the 
                        mail; and
                            (II) recognize that--
                                    (aa) the services provided by the 
                                Postal Service have changed over time; 
                                and
                                    (bb) the timely delivery of the 
                                underwater products identified under 
                                paragraph (2)(A) impacts the overall 
                                value of those products.
            (4) Subsequent review required if initial review completed 
        before enactment.--If, on or before the date of enactment of 
        this Act, the Commission completes the initial rate regulation 
        review, the Commission--
                    (A) shall determine whether to--
                            (i) further modify the system for 
                        regulating rates and classes for market-
                        dominant products established under section 
                        3622 of title 39, United States Code; or
                            (ii) adopt an alternative system for 
                        regulating rates and classes for market-
                        dominant products; and
                    (B) in making the determination under subparagraph 
                (A), shall--
                            (i) take into account the provisions of 
                        this Act and the amendments made by this Act;
                            (ii) comply with the requirements under 
                        clauses (i) and (ii) of paragraph (3)(B); and
                            (iii) take into account, and incorporate 
                        into any adjustment to rates for underwater 
                        products identified under subparagraph (A) of 
                        paragraph (2), the impact quantified under 
                        subparagraph (B) of that paragraph.
            (5) Application of new rates to underwater products.--
                    (A) In general.--If the Commission modifies the 
                system for regulating rates and classes for market-
                dominant products established under section 3622 of 
                title 39, United States Code, or adopts an alternative 
                system for regulating rates and classes for market-
                dominant products, the Commission--
                            (i) may not apply any new rates under the 
                        modified or alternative system to underwater 
                        products until the Commission has--
                                    (I) completed the study under 
                                paragraph (2); and
                                    (II) complied with subparagraph (C) 
                                of paragraph (3); and
                            (ii) in order to offer as many underwater 
                        products as possible for as long as possible, 
                        shall establish a process to gradually phase in 
                        the application of any new rates to underwater 
                        products.
                    (B) Retroactive applicability.--If, before the date 
                of enactment of this Act, the Commission modifies the 
                system for regulating rates and classes for market-
                dominant products established under section 3622 of 
                title 39, United States Code, or adopts an alternative 
                system for regulating rates and classes for market-
                dominant products, the Commission--
                            (i) shall, effective 90 days after the date 
                        of enactment of this Act, apply the rates for 
                        underwater products that were in effect on the 
                        day before the date on which the modified or 
                        alternative system took effect; and
                            (ii) before applying the rates under the 
                        modified or alternative system to underwater 
                        products, shall comply with subparagraph (A).
                    (C) Rule of construction.--Nothing in this 
                paragraph shall be construed to affect the requirement 
                under subsection (a) relating to reinstatement of the 
                rate surcharge that was in effect on April 9, 2016, 
                including with respect to underwater products.
    (d) Postal Regulatory Commission Authority Not Affected.--Nothing 
in this section (other than subsection (c)) shall be construed as 
affecting the authority of the Commission to, by regulation, make such 
modification or adopt such alternative system for regulating rates and 
classes for market-dominant products as provided under section 3622 of 
title 39, United States Code.

SEC. 208. REVIEW OF POSTAL SERVICE COST ATTRIBUTION GUIDELINES.

    Not later than April 1, 2019, 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 such methodologies. If the Commission determines, after 
notice and opportunity for public comment, that revisions are 
appropriate, the Commission shall make modifications or adopt 
alternative methodologies as necessary.

SEC. 209. AVIATION SECURITY FOR PARCELS.

    Not later than 18 months after the date of enactment of this Act, 
the Inspector General of the Postal Service shall transmit to the 
Committee on Oversight and Government Reform of the House of 
Representatives and the Committee on Homeland Security and Governmental 
Affairs of the Senate the results of a review of the security measures 
in place for parcels carried on air carriers to domestic and 
international destinations for which audit trails are generated. The 
review required under this subsection shall assess, at a minimum--
            (1) the effectiveness of the audit trail created by postage 
        evidencing systems that have been validated under the Federal 
        Information Processing Standards in accurately and consistently 
        identifying the senders of parcels carried on air carriers;
            (2) the effectiveness of the Postal Service's in-person 
        identity verification procedures in accurately and consistently 
        identifying the senders of parcels carried on air carriers; and
            (3) the effectiveness of the audit trail generated by 
        customs declarations in accurately and consistently identifying 
        the senders of parcels carried on air carriers to international 
        destinations.

SEC. 210. LONG-TERM SOLVENCY PLAN; ANNUAL FINANCIAL PLAN AND BUDGET.

    (a) Definitions.--In this section--
            (1) the term ``Board of Governors'' means the Board of 
        Governors of the Postal Service;
            (2) the term ``long-term solvency plan'' means the plan 
        required to be submitted by the Postmaster General under 
        subsection (b)(1); and
            (3) the term ``solvency'' means the ability of the Postal 
        Service to pay debts and meet expenses, including the ability 
        to perform maintenance and repairs, make investments, and 
        maintain financial reserves, as necessary to fulfill the 
        requirements under, and comply with the policies of, title 39, 
        United States Code, and other obligations of the Postal 
        Service.
    (b) Plan for the Long-Term Solvency of the Postal Service.--
            (1) Solvency plan required.--
                    (A) In general.--Not later than the date described 
                in subparagraph (B), the Postmaster General shall 
                submit to the Board of Governors a plan describing the 
                actions the Postal Service intends to take to achieve 
                long-term solvency.
                    (B) Date.--The date described in this subparagraph 
                is the later of--
                            (i) the date that is 90 days after the date 
                        of enactment of this Act; and
                            (ii) the earliest date as of which the 
                        Board of Governors has the number of members 
                        required for a quorum.
            (2) Considerations.--The long-term solvency plan shall take 
        into account--
                    (A) the legal authority of the Postal Service;
                    (B) changes in the legal authority and 
                responsibilities of the Postal Service under this Act 
                and the amendments made by this Act;
                    (C) projected changes in mail volume;
                    (D) the impact of any regulations that the Postal 
                Service is required to promulgate under Federal law;
                    (E) projected changes in the number of employees 
                needed to carry out the responsibilities of the Postal 
                Service;
                    (F) the long-term capital needs of the Postal 
                Service, including the need to maintain, repair, and 
                replace facilities and equipment; and
                    (G) the distinctions between market-dominant and 
                competitive products.
            (3) Review and submission to congress and commission.--
                    (A) Review.--Upon receipt of the long-term solvency 
                plan, the Board of Governors shall review the long-term 
                solvency plan and may request that the Postmaster 
                General make changes to the long-term solvency plan.
                    (B) Submission to congress and commission.--Not 
                later than 60 days after initial receipt of the long-
                term solvency plan, the Board of Governors shall 
                provide a copy of the long-term solvency plan, together 
                with a letter indicating whether and in what respects 
                the Board of Governors agrees or disagrees with the 
                measures set out in the long-term solvency plan, to--
                            (i) the Committee on Homeland Security and 
                        Governmental Affairs of the Senate;
                            (ii) the Committee on Oversight and 
                        Government Reform of the House of 
                        Representatives; and
                            (iii) the Commission.
            (4) Updates.--
                    (A) Annual updates required.--The Postmaster 
                General shall update and submit to the Board of 
                Governors the long-term solvency plan not less 
                frequently than annually for 5 years after the date of 
                enactment of this Act.
                    (B) Review by board of governors.--The Board of 
                Governors shall review and submit to Congress and the 
                Commission the updates under this paragraph in 
                accordance with paragraph (3).
    (c) Annual Financial Plan and Budget.--
            (1) In general.--For each of the first 5 full fiscal years 
        after the date of enactment of this Act, not later than August 
        1 of the preceding fiscal year, the Postmaster General shall 
        submit to the Board of Governors a financial plan and budget 
        for the fiscal year that is consistent with the goal of 
        achieving the long-term solvency of the Postal Service.
            (2) Contents of financial plan and budget.--The financial 
        plan and budget for a fiscal year shall--
                    (A) promote the financial stability of the Postal 
                Service and provide for progress towards the long-term 
                solvency of the Postal Service;
                    (B) include the annual budget program of the Postal 
                Service under section 2009 of title 39, United States 
                Code, and the plan of the Postal Service commonly 
                referred to as the ``Integrated Financial Plan'';
                    (C) describe lump-sum expenditures by all 
                categories traditionally used by the Postal Service;
                    (D) describe capital expenditures, together with a 
                schedule of projected capital commitments and cash 
                outlays of the Postal Service, and proposed sources of 
                funding;
                    (E) contain estimates of overall debt (both 
                outstanding and expected to be incurred);
                    (F) contain cash flow and liquidity forecasts for 
                the Postal Service at such intervals as the Board of 
                Governors may require;
                    (G) include a statement describing methods of 
                estimations and significant assumptions;
                    (H) distinguish between market-dominant and 
                competitive products, as practicable; and
                    (I) address any other issues that the Board of 
                Governors considers appropriate.
            (3) Process for submission and approval of financial plan 
        and budget.--
                    (A) Definition.--In this paragraph, the term 
                ``covered recipient'' means--
                            (i) the Postmaster General;
                            (ii) the President;
                            (iii) the Committee on Homeland Security 
                        and Governmental Affairs of the Senate; and
                            (iv) the Committee on Oversight and 
                        Government Reform of the House of 
                        Representatives.
                    (B) Review by the board of governors.--
                            (i) In general.--Upon receipt of a 
                        financial plan and budget under paragraph (1), 
                        the Board of Governors shall promptly review 
                        the financial plan and budget.
                            (ii) Additional information.--In conducting 
                        the review under this subparagraph, the Board 
                        of Governors may request any additional 
                        information it considers necessary and 
                        appropriate to carry out the duties of the 
                        Board of Governors.
                    (C) Approval of financial plan and budget submitted 
                by the postmaster general.--If the Board of Governors 
                determines that the financial plan and budget for a 
                fiscal year received under paragraph (1) meets the 
                requirements under paragraph (2) and otherwise 
                adequately addresses the financial situation of the 
                Postal Service--
                            (i) the Board of Governors shall approve 
                        the financial plan and budget and submit a 
                        notice of approval to each covered recipient; 
                        and
                            (ii) the Postmaster General shall submit 
                        the annual budget program for the relevant 
                        fiscal year to the Office of Management and 
                        Budget in accordance with section 2009 of title 
                        39, United States Code.
                    (D) Disapproval of financial plan and budget 
                submitted by the postmaster general.--
                            (i) In general.--If the Board of Governors 
                        determines that the financial plan and budget 
                        for a fiscal year under paragraph (1) does not 
                        meet the requirements under paragraph (2) or is 
                        otherwise inadequate in addressing the 
                        financial situation of the Postal Service, the 
                        Board of Governors shall--
                                    (I) disapprove the financial plan 
                                and budget;
                                    (II) submit to each covered 
                                recipient a statement that describes 
                                the reasons for the disapproval;
                                    (III) direct the Postmaster General 
                                to appropriately revise the financial 
                                plan and budget for the Postal Service; 
                                and
                                    (IV) submit the revised financial 
                                plan and budget to each covered 
                                recipient.
                            (ii) Submission to office of management and 
                        budget.--Upon receipt of a revised financial 
                        plan and budget under clause (i)(IV), the 
                        Postmaster General shall submit the annual 
                        budget program for the relevant fiscal year to 
                        the Office of Management and Budget in 
                        accordance with section 2009 of title 39, 
                        United States Code.
                    (E) Deadline for transmission of financial plan and 
                budget by board of governors.--Notwithstanding any 
                other provision of this paragraph, not later than 
                September 30 of the fiscal year that precedes each 
                fiscal year for which a financial plan and budget is 
                required under paragraph (1), the Board of Governors 
                shall submit to each covered recipient--
                            (i) a notice of approval under subparagraph 
                        (C)(i); or
                            (ii) an approved financial plan and budget 
                        for the fiscal year under subparagraph 
                        (D)(i)(IV).
                    (F) Revisions to financial plan and budget.--
                            (i) Permitting postmaster general to submit 
                        revisions.--The Postmaster General may submit 
                        proposed revisions to the financial plan and 
                        budget for a fiscal year to the Board of 
                        Governors at any time during that fiscal year.
                            (ii) Process for review, approval, 
                        disapproval, and postmaster general action.--
                        The procedures described in subparagraphs (B) 
                        through (E) shall apply with respect to a 
                        proposed revision to a financial plan and 
                        budget in the same manner as such procedures 
                        apply with respect to the original financial 
                        plan and budget.
    (d) Assumptions Based on Current Law.--In preparing the long-term 
solvency plan or an annual financial plan and budget required under 
this section, the Postal Service shall base estimates of revenues and 
expenditures on Federal law as in effect at the time of the preparation 
of the long-term solvency plan or the financial plan and budget.
    (e) Third-Party Analysis of Postal Service Finances.--The 
Commission shall enter into a contract with 1 or more independent third 
parties under which the third party or parties, in not less than 2 
years, shall--
            (1) complete a study that analyzes--
                    (A) the finances of the Postal Service;
                    (B) the finances of, and business trends in, the 
                overall mailing industry;
                    (C) the demand for market-dominant and competitive 
                products and services in rural, urban, and suburban 
                communities; and
                    (D) revenue changes and cost savings of the Postal 
                Service attributable to recent--
                            (i) closings and consolidations of 
                        processing plants, post offices, and other 
                        facilities;
                            (ii) changes to service standards; and
                            (iii) service performance; and
            (2) submit to the Commission a report on the study 
        conducted under paragraph (1) that includes recommendations on 
        affordable options and timetables for improving postal 
        operations and services, including--
                    (A) how rural service measurement can be made more 
                accurate to ensure that the Postal Service 
                comprehensively measures the mail service provided to 
                each region of the United States, regardless of 
                population size and geographic location;
                    (B) the feasibility of restoring overnight service 
                standards for market-dominant products similar to the 
                service standards that were in effect on July 1, 2012, 
                including an examination of the resources needed, 
                structural and operational changes needed, and market 
                demand for such a change; and
                    (C) recommended definitions for the terms ``rural'' 
                and ``urban'' for purposes of measuring the performance 
                of the Postal Service relative to service standards 
                under section 3691 of title 39, United States Code, as 
                amended by section 210 of this Act.

SEC. 211. SERVICE STANDARDS, PERFORMANCE TARGETS, AND PERFORMANCE 
              MEASUREMENTS.

    (a) Service Standards, Performance Targets, and Performance 
Measurements.--
            (1) In general.--Section 3691 of title 39, United States 
        Code, is amended to read as follows:
``Sec. 3691. Modern service standards, performance targets, and 
              performance measurements
    ``(a) Definitions.--In this section--
            ``(1) the terms `Area' and `District' mean the 
        administrative field units established and given those 
        designations by the Postal Service;
            ``(2) the term `Commission' means the Postal Regulatory 
        Commission;
            ``(3) the term `performance targets' means the targets 
        established by the Postal Service under subsection (e)(1)(A);
            ``(4) the terms `rural' and `urban' have the meanings given 
        those terms under regulations promulgated by the Commission 
        under subsection (e)(2)(A); and
            ``(5) the term `service standards' means the service 
        standards established by the Postal Service under subsection 
        (b).
    ``(b) Authority Generally.--
            ``(1) Establishment; revision.--The Postal Service shall by 
        regulation establish (and may from time to time thereafter by 
        regulation revise) a set of service standards for market-
        dominant products based on--
                    ``(A) the finances of the Postal Service;
                    ``(B) the ability of the Postal Service to meet the 
                service standards; and
                    ``(C) the ability of Postal Service customers to 
                receive fair and reliable service.
            ``(2) Notice to congress.--On the date on which the Postal 
        Service requests an advisory opinion under section 3661 with 
        respect to any regulation promulgated or revised under 
        paragraph (1), the Postal Service shall notify Congress of the 
        request and the proposed regulation or revision of a 
        regulation.
    ``(c) Objectives.--The service standards shall be designed to 
achieve the following objectives:
            ``(1) To ensure that the Postal Service meets the universal 
        service obligation, including the obligation to preserve 
        regular and effective access to postal services in all 
        communities, including those in rural areas or where post 
        offices are not self-sustaining.
            ``(2) To enhance the value of postal services to both 
        senders and recipients.
            ``(3) To assure Postal Service customers delivery 
        reliability, speed, and frequency consistent with reasonable 
        rates and best business practices.
            ``(4) To provide a system of objective performance 
        measurements for each market-dominant product as a basis for 
        measurement of Postal Service performance, in accordance with 
        subsection (e).
    ``(d) Factors.--In establishing or revising the service standards, 
the Postal Service shall take into account--
            ``(1) the actual level of service that Postal Service 
        customers receive under any service guidelines previously 
        established by the Postal Service or service standards 
        established under this section;
            ``(2) the degree of customer satisfaction with Postal 
        Service performance in the acceptance, processing, and delivery 
        of mail;
            ``(3) the needs of all Postal Service customers;
            ``(4) mail volume and revenues projected for future years;
            ``(5) the projected growth in the number of addresses the 
        Postal Service will be required to serve in future years;
            ``(6) the current and projected future cost of serving 
        Postal Service customers;
            ``(7) the effect of changes in technology, demographics, 
        and population distribution on the efficient and reliable 
        operation of the postal delivery system;
            ``(8) the financial status of the Postal Service, including 
        the status of any accrued unfunded liabilities or obligations;
            ``(9) ensuring that the performance of the Postal Service 
        is as strong as reasonably possible under the applicable 
        circumstances, including the factors described in paragraphs 
        (1) through (8); and
            ``(10) the policies of this title and such other factors as 
        the Postal Service determines appropriate.
    ``(e) Performance Targets, Measurements, and Publication.--
            ``(1) Performance targets.--
                    ``(A) Establishment.--Each year, the Postal Service 
                shall establish reasonable targets for performance to 
                ensure that mail service for postal customers meets the 
                service standards for market-dominant products.
                    ``(B) Compliance determination.--For purposes of 
                section 3653(b)(2), the Commission shall evaluate the 
                compliance of the Postal Service with the service 
                standards for market-dominant products by reference to 
                the performance targets.
            ``(2) Performance measurement.--
                    ``(A) Definitions of urban and rural.--For purposes 
                of measuring performance under the performance targets, 
                the Commission, in consultation with the Postal 
                Service--
                            ``(i) shall promulgate regulations defining 
                        the terms--
                                    ``(I) rural; and
                                    ``(II) urban, which shall be 
                                defined by the Commission as any 
                                geographic area that is not defined as 
                                rural under subclause (I); and
                            ``(ii) in defining the terms under clause 
                        (i), shall consider--
                                    ``(I) the recommendations of the 
                                report submitted to the Commission 
                                under section 210(e) of the Postal 
                                Service Reform Act of 2018;
                                    ``(II) existing definitions of 
                                those terms that are in use by the 
                                Postal Service, the Federal Government, 
                                and other sources; and
                                    ``(III) stakeholder input.
                    ``(B) Performance reporting.--
                            ``(i) In general.--The Postal Service shall 
                        measure and report to the Commission on the 
                        performance of the Postal Service with respect 
                        to market-dominant products on a nationwide, 
                        Area, and District basis based on the 
                        performance targets, taking into consideration 
                        the Commission's opinion on any proposed 
                        target, and in a manner that reflects separate 
                        consideration of performance with respect to--
                                    ``(I) rural customers; and
                                    ``(II) urban customers.
                            ``(ii) Commission review.--The Commission 
                        shall review and comment upon the performance 
                        of the Postal Service as reported under clause 
                        (i).
            ``(3) Publication.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Postal Service shall publish on the website of the 
                Postal Service the performance targets, the actual 
                measurements under those targets, and the comments of 
                the Commission under paragraph (2)--
                            ``(i) covering a period designated by the 
                        Commission, the length of which shall be not 
                        less than 2 years; and
                            ``(ii) categorized in accordance with that 
                        paragraph.
                    ``(B) Commercially sensitive or proprietary 
                information.--To the extent that the Postal Service 
                considers any information required to be reported under 
                subparagraph (A) to be commercially sensitive or 
                proprietary in nature, the Commission shall determine 
                the level of information that shall be publicly 
                disclosed in accordance with section 504(g)(3)(A).
    ``(f) Review Upon Complaint.--The regulations promulgated pursuant 
to this section (and any revisions thereto), and any violations 
thereof, shall be subject to review upon complaint under sections 3662 
and 3663.
    ``(g) Noncompliance With Performance Targets.--
            ``(1) In general.--If the Postal Service fails to meet 1 or 
        more performance targets--
                    ``(A) subject to subparagraph (B), the Postal 
                Service shall develop a plan to make specific 
                operational corrections under the control of the Postal 
                Service that will cause the performance targets to be 
                met as soon as is reasonably practicable, as determined 
                by the Postal Service; and
                    ``(B) if the Postal Service makes best efforts to 
                develop a plan described in subparagraph (A) and 
                determines that achieving compliance with the 
                performance targets through such a plan would be 
                impractical, would not be cost effective, and would not 
                be in the best long-term interest of the Postal Service 
                and its customers, the Postal Service shall make 
                adjustments to the service standards or performance 
                targets.
            ``(2) Postal service submission of plan.--Not later than 
        180 days after the date of noncompliance with a performance 
        target, the Postal Service shall submit to the Commission--
                    ``(A) the plan required under paragraph (1)(A); or
                    ``(B) a report explaining why the Postal Service is 
                making an adjustment described in paragraph (1)(B).
            ``(3) Commission consideration of postal service plan.--
                    ``(A) In general.--The Commission--
                            ``(i) shall review each plan or report 
                        submitted by the Postal Service under paragraph 
                        (2); and
                            ``(ii) may make such recommendations as the 
                        Commission considers appropriate.
                    ``(B) Postal service response.--If the Commission 
                provides recommendations regarding a plan or report to 
                the Postal Service under subparagraph (A)(ii), the 
                Postal Service shall--
                            ``(i) consider the recommendations; and
                            ``(ii) not later than 90 days after the 
                        date on which the Postal Service receives the 
                        recommendations, submit a response to the 
                        Commission explaining the bases for any 
                        decision to accept or reject a recommendation.
            ``(4) Postal service implementation of plan.--After 
        developing a plan under paragraph (1)(A), the Postal Service 
        shall--
                    ``(A) implement the plan; and
                    ``(B) in each report provided under section 3652, 
                discuss--
                            ``(i) the implementation of the plan;
                            ``(ii) the extent to which the Postal 
                        Service is improving performance to meet the 
                        performance targets; and
                            ``(iii) if the performance targets subject 
                        to the plan are still not being met, whether--
                                    ``(I) the plan remains sufficient 
                                to achieve compliance within a 
                                reasonably practicable period of time, 
                                and is therefore being maintained;
                                    ``(II) the plan is being revised; 
                                or
                                    ``(III) the Postal Service has 
                                determined to make adjustments 
                                described in paragraph (1)(B) rather 
                                than continue with the plan.
            ``(5) Commission review of implementation.--
                    ``(A) In general.--In making the determination 
                required under section 3653, the Commission shall--
                            ``(i) review the implementation of each 
                        plan developed under paragraph (1)(A); and
                            ``(ii) make such recommendations as the 
                        Commission considers appropriate.
                    ``(B) Consideration.--The Postal Service shall 
                consider any recommendations under subparagraph (A)(ii) 
                in the same manner as provided under paragraph (3).
    ``(h) Periodic Review of Service Standards.--The Commission shall 
periodically--
            ``(1) review the appropriateness of the service standards; 
        and
            ``(2) submit to Congress and the Postal Service a report on 
        the review conducted under paragraph (1).''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 36 of title 39, United States Code, is 
        amended by striking the item relating to section 3691 and 
        inserting the following:

``3691. Modern service standards, performance targets, and performance 
                            measurements.''.
    (b) Review of Nationwide Service Standard Changes.--Section 3661 of 
title 39, United States Code, as amended by section 205 of this Act, is 
amended by adding at the end the following:
    ``(e) Changes Relating to Market-dominant Products.--
            ``(1) Inspector general review.--Upon a request by the 
        Postal Service for an advisory opinion from the Commission 
        under subsection (b) relating to a nationwide or substantially 
        nationwide change in service standards for the delivery of 
        market-dominant products, including when the Postal Service 
        establishes new performance targets under section 3691(e), the 
        Inspector General shall, not later than 90 days after the 
        submission of the request--
                    ``(A) conduct a review of the proposal to determine 
                whether--
                            ``(i) the Postal Service formulated the 
                        proposal based on accurate data;
                            ``(ii) the Postal Service followed 
                        appropriate policies and procedures of the 
                        Postal Service in formulating the proposal; and
                            ``(iii) the proposal prioritizes the needs 
                        of the postal customer; and
                    ``(B) submit a report on the review conducted under 
                subparagraph (A) to--
                            ``(i) the Postal Service;
                            ``(ii) the Commission;
                            ``(iii) the Committee on Homeland Security 
                        and Governmental Affairs of the Senate; and
                            ``(iv) the Committee on Oversight and 
                        Government Reform of the House of 
                        Representatives.
            ``(2) Commission review.--Not earlier than 30 days after 
        the date on which the Inspector General submits a report on a 
        proposal to the Commission under paragraph (1), the Commission 
        shall issue its opinion on the proposal.''.
    (c) Report to Congress.--Not later than 180 days after the date on 
which the report is submitted to the Commission under section 210(e)(2) 
of this Act, the Commission shall submit to Congress a report that 
includes--
            (1) a determination as to whether the service standards for 
        market-dominant products in effect on the day before the date 
        of enactment of this Act achieve the objectives and factors set 
        forth under section 3691 of title 39, United States Code, as 
        amended by this section; and
            (2) recommendations as to how delivery service to postal 
        customers could be improved based on the financial condition of 
        the Postal Service.
    (d) Temporary Floor for Service Standards.--The Postal Service may 
not revise the service standards for market-dominant products in effect 
on the day before the date of enactment of this Act in a manner that 
lengthens delivery times before the date on which the report is 
submitted to the Commission under section 210(e)(2) of this Act.

SEC. 212. POSTAL SERVICE CHIEF INNOVATION OFFICER.

    (a) In General.--Chapter 2 of title 39, United States Code, is 
amended by adding at the end the following:
``Sec. 209. Chief Innovation Officer
    ``(a) In General.--There is established within the Postal Service 
the position of Chief Innovation Officer, appointed by the Postmaster 
General, who shall manage the Postal Service's development and 
implementation of innovative postal and nonpostal products and 
services.
    ``(b) Duties.--The primary duties of the Chief Innovation Officer 
are as follows:
            ``(1) Leading the development of innovative nonpostal 
        products and services that will maximize revenue to the Postal 
        Service.
            ``(2) Developing innovative postal products and services, 
        specifically those that utilize emerging information 
        technologies, to maximize revenue to the Postal Service.
            ``(3) Implementing the innovation strategy described under 
        subsection (d).
            ``(4) Monitoring the performance of innovative products and 
        services and revising them as needed to meet changing market 
        trends.
            ``(5) Taking into consideration comments or advisory 
        opinions, if applicable, issued by the Postal Regulatory 
        Commission prior to the initial sale of innovative postal or 
        nonpostal products and services.
    ``(c) Appointment.--
            ``(1) Deadline.--As soon as practicable after the date of 
        enactment of the Postal Service Reform Act of 2018, but not 
        later than 6 months after such date, the Postmaster General 
        shall appoint a Chief Innovation Officer.
            ``(2) Requirements.--Any individual appointed to serve as 
        the Chief Innovation Officer shall have proven expertise and a 
        record of success in at least 1 of the following:
                    ``(A) Postal and shipping industry.
                    ``(B) Innovation product research and development.
                    ``(C) Marketing brand strategy.
                    ``(D) Emerging communications technology.
                    ``(E) Business process management.
            ``(3) Current officer or employee eligible.--An officer or 
        employee of the Postal Service may be appointed to the position 
        of Chief Innovation Officer under this chapter. Upon 
        appointment to such position, such officer or employee may not 
        concurrently hold any other position in the Postal Service.
    ``(d) Innovation Strategy.--
            ``(1) In general.--Not later than 12 months after the date 
        on which the Chief Innovation Officer is appointed under 
        subsection (c)(1), the Postmaster General shall submit to the 
        Committee on Oversight and Government Reform of the House of 
        Representatives, the Committee on Homeland Security and 
        Governmental Affairs of the Senate, and the Postal Regulatory 
        Commission a comprehensive strategy for maximizing revenues 
        through innovative postal and nonpostal products and services.
            ``(2) Matters to be addressed.--The strategy submitted 
        under paragraph (1) shall address--
                    ``(A) the specific innovative postal and nonpostal 
                products and services to be developed and offered by 
                the Postal Service, including the nature of the market 
                to be filled by each product and service and the likely 
                date by which each product and service will be 
                introduced;
                    ``(B) the cost of developing and offering each 
                product or service;
                    ``(C) the anticipated sales volume of each product 
                and service;
                    ``(D) the anticipated revenues and profits expected 
                to be generated by each product and service;
                    ``(E) the likelihood of success of each product and 
                service as well as the risks associated with the 
                development and sale of each product and service;
                    ``(F) the trends anticipated in market conditions 
                that may affect the success of each product and service 
                over the 5-year period beginning on the date such 
                strategy or update is submitted;
                    ``(G) the metrics that will be utilized to assess 
                the effectiveness of the innovation strategy; and
                    ``(H) the specific methods by which mailpiece 
                design analysis may be improved to speed the approval 
                process and promote the increased use of innovative 
                mailpiece design.
            ``(3) Strategy updates.--On January 1, 2019, and every 3 
        years thereafter, the Postal Service shall submit an update to 
        the innovation strategy submitted under paragraph (1) to the 
        Committee on Oversight and Government Reform of the House of 
        Representatives, the Committee on Homeland Security and 
        Governmental Affairs of the Senate, and the Postal Regulatory 
        Commission.
    ``(e) Report.--
            ``(1) In general.--On the date of submission of the 
        President's annual budget under section 1105(a) of title 31, 
        the Postmaster General shall submit to the Committee on 
        Oversight and Government Reform of the House of 
        Representatives, the Committee on Homeland Security and 
        Governmental Affairs of the Senate, and the Postal Regulatory 
        Commission a report that details the Postal Service's progress 
        in implementing the innovation strategy described under 
        subsection (d).
            ``(2) Matters to be addressed.--The report required under 
        paragraph (1) shall address--
                    ``(A) the revenue generated by each product and 
                service developed through the innovation strategy and 
                the costs of developing and offering each such product 
                and service for the most recent fiscal year;
                    ``(B) the total sales volume and revenue generated 
                by each product and service on a monthly basis for the 
                preceding year;
                    ``(C) trends in the markets filled by each product 
                and service;
                    ``(D) products and services identified in the 
                innovation strategy that are to be discontinued, the 
                date on which the discontinuance will occur, and the 
                reasons for the discontinuance;
                    ``(E) alterations in products and services 
                identified in the innovation strategy that will be made 
                to meet changing market conditions, and an explanation 
                of how these alterations will ensure the success of the 
                products and services; and
                    ``(F) the performance of the innovation strategy 
                according to the metrics identified in subsection 
                (d)(2)(G).
    ``(f) Comptroller General Study.--
            ``(1) In general.--The Comptroller General shall conduct a 
        study on the implementation of the innovation strategy 
        described under subsection (d) not later than 4 years after the 
        date of enactment of the Postal Service Reform Act of 2018.
            ``(2) Contents.--The study required under paragraph (1) 
        shall assess the effectiveness of the Postal Service in 
        identifying, developing, and selling innovative postal and 
        nonpostal products and services. The study shall also include--
                    ``(A) an audit of the costs of developing each 
                innovative postal and nonpostal product and service 
                developed or offered by the Postal Service during the 
                period beginning on the date of enactment of the Postal 
                Service Reform Act of 2018 and ending 4 years after 
                such date;
                    ``(B) the sales volume of each such product and 
                service;
                    ``(C) the revenues and profits generated by each 
                such product and service; and
                    ``(D) the likelihood of continued success of each 
                such product and service.
            ``(3) Submission.--The results of the study required under 
        this subsection shall be submitted to the Committee on 
        Oversight and Government Reform of the House of 
        Representatives, the Committee on Homeland Security and 
        Governmental Affairs of the Senate, and the Postal Regulatory 
        Commission.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 2 of title 39, United States Code, is amended by adding at the 
end the following:

``209. Chief Innovation Officer.''.

SEC. 213. EMERGENCY SUSPENSIONS OF POST OFFICES.

    (a) In General.--Section 404 of title 39, United States Code, is 
amended by adding at the end the following:
    ``(f) Emergency Suspensions.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the terms `alternate service' and `temporary 
                location' include a location at which customers 
                affected by an emergency suspension of a post office, 
                or the expiration of the lease or rental agreement for 
                a post office, may send and receive mail, which may 
                include the provision and regular servicing of a 
                Cluster Box Unit (commonly known as a `CBU') by the 
                Postal Service;
                    ``(B) the term `discontinuance procedures' means 
                the procedures required for the discontinuance of a 
                post office under subsection (d) and any regulations 
                promulgated under that subsection;
                    ``(C) the term `emergency suspension' means the 
                temporary suspension of retail operations at a post 
                office, without following discontinuance procedures for 
                the post office, because of--
                            ``(i) a natural disaster;
                            ``(ii) the termination of a lease or rental 
                        agreement by the lessor;
                            ``(iii) a lack of qualified personnel to 
                        operate the post office;
                            ``(iv) severe or irreparable damage to, or 
                        destruction of, the post office when alternate 
                        quarters acceptable to the Postal Service for 
                        use as a post office are not immediately 
                        available in the community;
                            ``(v) a challenge to the sanctity of the 
                        mail; or
                            ``(vi) a lack of adequate measures to 
                        safeguard the post office or its revenues; and
                    ``(D) the term `post office'--
                            ``(i) means a Post Office, as that term is 
                        defined in section 241.1 of title 39, Code of 
                        Federal Regulations, or any successor 
                        regulation; and
                            ``(ii) includes a post office branch or 
                        post office station.
            ``(2) Authority.--The Postal Service may implement an 
        emergency suspension of a post office in accordance with the 
        requirements under paragraphs (3) through (7).
            ``(3) Notification.--If the Postal Service implements an 
        emergency suspension of a post office, the Postal Service shall 
        provide immediate notice of the suspension to--
                    ``(A) the relevant local, regional, State, and 
                Federal officials, including--
                            ``(i) each Member of Congress who 
                        represents the area in which the affected post 
                        office is located; and
                            ``(ii) the chief executive of each relevant 
                        unit of local government; and
                    ``(B) customers, notification to whom shall 
                include--
                            ``(i) the effective date of the suspension;
                            ``(ii) the reason for the suspension;
                            ``(iii) any alternate service available;
                            ``(iv) the nearest postal retail facility 
                        (as defined in section 3 of the Postal Service 
                        Reform Act of 2018) and hours of service; and
                            ``(v) the name and contact information of 
                        an individual to contact for more information.
            ``(4) Alternate service.--If the Postal Service implements 
        an emergency suspension of a post office, the Postal Service 
        shall provide alternate drop-off, pick-up, and post office box 
        services at 1 or more locations that are as close as feasible 
        to the suspended post office.
            ``(5) Employee reassignment.--If the Postal Service 
        implements an emergency suspension of a post office, the Postal 
        Service shall temporarily reassign each employee of the post 
        office in accordance with each applicable Federal statute, 
        Federal regulation, and collective bargaining agreement.
            ``(6) Suspension review.--
                    ``(A) In general.--Within a reasonable period of 
                time after the date on which the Postal Service 
                implements an emergency suspension of a post office, 
                the Postal Service shall review the emergency 
                suspension and determine whether to--
                            ``(i) reopen the post office; or
                            ``(ii) continue the emergency suspension.
                    ``(B) Reopening.--
                            ``(i) Notification.--If the Postal Service 
                        makes a determination under subparagraph (A) to 
                        reopen a post office, the Postal Service shall 
                        provide notice to the persons described in 
                        paragraph (3) of the date by which the Postal 
                        Service expects to reopen the post office.
                            ``(ii) Delay.--If the Postal Service does 
                        not reopen a post office by the date specified 
                        under clause (i), not later than the next 
                        business day after that date, the Postal 
                        Service shall provide notice of the delay to 
                        the persons described in paragraph (3), 
                        including a new date by which the Postal 
                        Service expects to reopen the post office, if 
                        such a date is known.
                            ``(iii) Subsequent delays.--If the Postal 
                        Service does not reopen a post office by a new 
                        date specified under clause (ii), the Postal 
                        Service shall provide to the persons described 
                        in paragraph (3) notice, and a new date in the 
                        same manner as under clause (ii) of this 
                        subparagraph, and shall continue to do so at 
                        regular intervals until the Postal Service 
                        reopens the post office or initiates 
                        discontinuance procedures for the post office.
                    ``(C) Continued suspension.--
                            ``(i) In general.--If the Postal Service 
                        makes a determination under subparagraph (A) to 
                        continue the emergency suspension of a post 
                        office, the Postal Service--
                                    ``(I) not later than 30 days after 
                                making the determination, shall--
                                            ``(aa) provide alternate 
                                        services that are the same or 
                                        substantially similar to the 
                                        services provided at the 
                                        suspended post office on a 
                                        temporary basis at a location 
                                        within a reasonable distance of 
                                        the suspended post office, 
                                        which may be at the nearest 
                                        postal facility; and
                                            ``(bb)(AA) initiate 
                                        discontinuance procedures for 
                                        the post office;
                                            ``(BB) publish a plan to 
                                        restore service to the affected 
                                        community within a reasonable 
                                        period of time; or
                                            ``(CC) provide notice to 
                                        the persons described in 
                                        paragraph (3) of the date on 
                                        which the Postal Service 
                                        expects to publish a plan to 
                                        restore the same or 
                                        substantially similar service 
                                        to the affected community 
                                        within a reasonable period of 
                                        time; and
                                    ``(II) if the Postal Service elects 
                                to provide notice under subclause 
                                (I)(bb)(CC), shall, not later than 90 
                                days after the date of the initial 
                                determination to implement the 
                                emergency suspension, publish the plan 
                                described in that subclause.
                            ``(ii) Delay in restoration of service.--If 
                        the Postal Service publishes a plan to restore 
                        service to an affected community under 
                        subclause (I)(bb)(BB) or (II) of clause (i) and 
                        such service to the affected community is not 
                        restored within 180 days of the date on which 
                        the emergency suspension was implemented, the 
                        Postal Service shall--
                                    ``(I)(aa) publish notice of the 
                                continued suspension, including--
                                            ``(AA) a reason for the 
                                        delay; and
                                            ``(BB) an anticipated date 
                                        of restoration of service; and
                                    ``(bb) not later than 30 days after 
                                publishing the notice under item (aa), 
                                host a question-and-answer forum--
                                            ``(AA) that members of the 
                                        community may attend, at a 
                                        location accessible to the 
                                        affected community; or
                                            ``(BB) in which members of 
                                        the affected community may 
                                        participate by teleconference 
                                        or videoconference; or
                                    ``(II) initiate discontinuance 
                                procedures for the post office.
                            ``(iii) 1-year delay.--If, as of the date 
                        that is 1 year after the date on which an 
                        emergency suspension of a post office was 
                        implemented, service to the affected community 
                        has not been restored and the Postal Service 
                        has not initiated discontinuance procedures for 
                        the post office, the Postal Service--
                                    ``(I) shall publish notice of the 
                                continued suspension, including--
                                            ``(aa) a reason for the 
                                        delay; and
                                            ``(bb) an anticipated date 
                                        of restoration of such service;
                                    ``(II) shall host--
                                            ``(aa) not later than 30 
                                        days after publishing the 
                                        notice under subclause (I), a 
                                        second question-and-answer 
                                        forum described in clause 
                                        (ii)(I)(bb); and
                                            ``(bb) additional question-
                                        and-answer fora described in 
                                        clause (ii)(I)(bb) every 
                                        subsequent 180 days until--

                                                    ``(AA) such service 
                                                is restored; or

                                                    ``(BB) the Postal 
                                                Service initiates 
                                                discontinuance 
                                                procedures for the post 
                                                office; and

                                    ``(III) if services similar to 
                                those that have not been restored are 
                                not located within a reasonable 
                                distance of the post office, not later 
                                than 60 days after the date that is 1 
                                year after the date on which the 
                                emergency suspension was implemented, 
                                shall develop and publish a plan to 
                                provide essential services, including 
                                alternate retail and post office box 
                                services, on a temporary basis at a 
                                location within a reasonable distance 
                                of the suspended post office.
            ``(7) Restoration of service.--Upon the restoration of 
        service under paragraph (6)(C), the Postal Service shall 
        immediately notify--
                    ``(A) the affected community; and
                    ``(B) the Headquarters Review Coordinator.
            ``(8) Lease or rental agreement expiration.--
                    ``(A) In general.--
                            ``(i) Prohibition on emergency 
                        suspensions.--The Postal Service may not 
                        implement an emergency suspension of a post 
                        office based on the expiration of the lease or 
                        rental agreement for the post office.
                            ``(ii) Alternative process.--The Postal 
                        Service shall establish an alternative process 
                        for the suspension of postal services to a 
                        community based on the expiration of a lease or 
                        rental agreement for a post office in 
                        accordance with subparagraphs (B) through (G) 
                        of this paragraph.
                    ``(B) Failure to reach agreement.--If, as of 30 
                days before the expiration of a lease or rental 
                agreement for a post office, the Postal Service does 
                not expect to reach an agreement with the lessor to 
                extend the lease or rental agreement or to sell the 
                property to the Postal Service, the Postal Service 
                shall--
                            ``(i) notify the affected community of a 
                        possible disruption in service due to the 
                        possible expiration of the lease or rental 
                        agreement; and
                            ``(ii) include in the notification under 
                        clause (i)--
                                    ``(I) the expiration date of the 
                                lease or rental agreement;
                                    ``(II) alternate services available 
                                if the lease or rental agreement 
                                expires,;
                                    ``(III) the nearest post offices 
                                and hours of service; and
                                    ``(IV) the name, telephone number, 
                                and email address of an individual to 
                                contact for more information.
                    ``(C) Restoration of service.--Not later than 5 
                days after the date on which a lease or rental 
                agreement for a post office expires, the Postal Service 
                shall make best efforts to commence actions required to 
                restore the same or substantially similar service to 
                the community in which the post office that was the 
                subject of the expired lease or rental agreement is 
                located.
                    ``(D) Failure to restore service.--If, within 30 
                days after the expiration of a lease or rental 
                agreement for a post office, the Postal Service is 
                unable to restore service at the same location or at 
                another location in the affected community, the Postal 
                Service shall publish notice of intent to restore the 
                same or substantially similar service to the affected 
                community--
                            ``(i) within a reasonable period of time; 
                        and
                            ``(ii) in any event, not later than 180 
                        days after the date on which the lease or 
                        rental agreement expired.
                    ``(E) Delay in restoration of service.--If the 
                Postal Service publishes notice of intent to restore 
                the same or substantially similar service to an 
                affected community under subparagraph (D) and such 
                service to the affected community is not restored 
                within 180 days of the date on which the lease or 
                rental agreement for the post office expired, the 
                Postal Service shall--
                            ``(i) publish notice of the delay, 
                        including--
                                    ``(I) a reason for the delay; and
                                    ``(II) an anticipated date of 
                                restoration of such service; and
                            ``(ii) within a reasonable period of time 
                        after publishing the notice under clause (i), 
                        host a question-and-answer forum--
                                    ``(I) that members of the community 
                                may attend, at a location accessible to 
                                the affected community; or
                                    ``(II) in which members of the 
                                affected community may participate by 
                                teleconference or videoconference.
                    ``(F) Further delays in restoration of service.--
                Upon the expiration of each 30-day period after the 
                date on which the Postal Service publishes notice of a 
                delay under subparagraph (E)(i), if the same or 
                substantially similar service to the affected community 
                has not been restored, the Postal Service shall publish 
                an updated notice of the delay that includes the 
                anticipated date of restoration of such service.
                    ``(G) 1-year delay.--If the same or substantially 
                similar service to the affected community is not 
                restored within 1 year of the date on which the lease 
                or rental agreement for the post office expired, the 
                Postal Service--
                            ``(i) shall host--
                                    ``(I) a second question-and-answer 
                                forum described in subparagraph 
                                (E)(ii); and
                                    ``(II) additional question-and-
                                answer fora described in subparagraph 
                                (E)(ii) in the affected community as 
                                determined necessary by the Postal 
                                Service until--
                                            ``(aa) such service is 
                                        restored; or
                                            ``(bb) the Postal Service 
                                        initiates discontinuance 
                                        procedures for the post office; 
                                        and
                            ``(ii) if no alternate services are located 
                        within a reasonable distance of the post 
                        office, not later than 60 days after the date 
                        that is 1 year after the date on which the 
                        lease or rental agreement for the post office 
                        expired, shall develop and publish a plan to 
                        provide essential services, including alternate 
                        retail and post office box services, on a 
                        temporary basis at a location within a 
                        reasonable distance of the post office.''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply to any emergency suspension of a post office that is implemented 
on or after the date that is 1 year after the date of enactment of this 
Act.

SEC. 214. MAILING ADDRESS REQUIREMENTS.

    (a) In General.--Subchapter VI of chapter 36 of title 39, United 
States Code, is amended by adding at the end the following:
``Sec. 3687. Mailing address requirements
    ``(a) Definitions.--In this section--
            ``(1) the term `municipality' means a city, town, borough, 
        county, parish, district, association, or other public entity 
        established by, or pursuant to, applicable State law; and
            ``(2) the term `State' means each of the several States, 
        territories, and possessions of the United States, the District 
        of Columbia, and the Commonwealth of Puerto Rico.
    ``(b) Requirement for Physical and Mailing Addresses to 
Correspond.--The State and municipality used by the Postal Service for 
the delivery address for purposes of mail matter shall correspond with 
the State and municipality of the physical address of the location for 
the delivery of such mail matter.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 36 of title 39, United States Code, is amended by inserting 
after the item relating to section 3686 the following:

``3687. Mailing address requirements.''.

                  TITLE III--POSTAL CONTRACTING REFORM

SEC. 301. CONTRACTING PROVISIONS.

    (a) In General.--Part I of title 39, United States Code, is amended 
by adding at the end the following:

                  ``CHAPTER 7--CONTRACTING PROVISIONS

``Sec.
``701. Definitions.
``702. Delegation of contracting authority.
``703. Posting of noncompetitive purchase requests for noncompetitive 
                            contracts.
``704. Review of ethical issues.
``705. Ethical restrictions on participation in certain contracting 
                            activity.
``Sec. 701. Definitions
    ``In this chapter--
            ``(1) the term `contracting officer' means an employee 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 Regulatory 
                Commission;
            ``(4) the term `postal contract' means--
                    ``(A) in the case of the Postal Service, any 
                contract (including any agreement or memorandum 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 agreement or 
                memorandum of understanding) in an amount exceeding the 
                simplified acquisition threshold (as defined in section 
                134 of title 41) entered into by the Postal Regulatory 
                Commission for the procurement of goods or services; 
                and
            ``(5) the term `senior procurement executive' means the 
        senior procurement executive of a covered postal entity.
``Sec. 702. 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 contracting officer delegations 
        of authority for postal contracts for the covered postal 
        entity.
            ``(2) Contents.--The policy issued under paragraph (1) 
        shall require that--
                    ``(A) notwithstanding any delegation of authority 
                with respect to postal contracts, the ultimate 
                responsibility and accountability for the award and 
                administration of postal contracts resides with the 
                senior procurement executive; and
                    ``(B) a contracting officer shall maintain an 
                awareness of, and engagement in, the activities being 
                performed on postal contracts of which that officer has 
                cognizance, notwithstanding any delegation of authority 
                that may have been executed.
    ``(b) Posting of Delegations.--
            ``(1) In general.--The head of each covered postal entity 
        shall make any delegation of authority for postal contracts 
        outside the functional contracting unit readily available and 
        accessible on the website of the covered postal entity.
            ``(2) Effective date.--This paragraph shall apply to any 
        delegation of authority made on or after the date that is 30 
        days after the date of enactment of this chapter.
``Sec. 703. Posting of noncompetitive purchase requests for 
              noncompetitive contracts
    ``(a) Posting Required.--
            ``(1) Postal regulatory commission.--The Postal Regulatory 
        Commission shall make the noncompetitive purchase request for 
        any noncompetitive award for any contract (including any 
        agreement or memorandum of understanding) entered into by the 
        Postal Regulatory Commission for the procurement of goods and 
        services in an amount of $20,000 or more, including the 
        rationale supporting the noncompetitive award, publicly 
        available on the website of the Postal Regulatory Commission--
                    ``(A) not later than 14 days after the date of the 
                award of the noncompetitive contract; or
                    ``(B) not later than 30 days after the date of the 
                award of the noncompetitive contract, if the basis for 
                the award was a compelling business interest.
            ``(2) Postal service.--The Postal Service shall make the 
        noncompetitive purchase request for any noncompetitive award of 
        a postal contract in an amount of $250,000 or more, including 
        the rationale supporting the noncompetitive award, publicly 
        available on the website of the Postal Service--
                    ``(A) not later than 14 days after the date of the 
                award; or
                    ``(B) not later than 30 days after the date of the 
                award, if the basis for the award was a compelling 
                business interest.
            ``(3) Adjustments to the posting threshold.--
                    ``(A) Review and determination.--Not later than 
                January 31 of each year, the Postal Service and the 
                Postal Regulatory Commission shall--
                            ``(i) review the applicable threshold 
                        established under paragraph (1) or (2); and
                            ``(ii) based on any change in the Consumer 
                        Price Index for All Urban Consumers of the 
                        Department of Labor, determine whether an 
                        adjustment to the threshold shall be made.
                    ``(B) Amount of adjustments.--An adjustment under 
                subparagraph (A) shall be made in increments of $5,000. 
                If the covered postal entity determines that a change 
                in the Consumer Price Index for a year would require an 
                adjustment in an amount that is less than $5,000, the 
                covered postal entity may not make an adjustment to the 
                threshold for the year.
            ``(4) Effective date.--This subsection shall apply to any 
        noncompetitive contract awarded on or after the date that is 90 
        days after the date of enactment of this chapter.
    ``(b) Public Availability.--
            ``(1) In general.--Subject to paragraph (2), the 
        information required to be made publicly available by a covered 
        postal entity under subsection (a) shall be readily accessible 
        on the website of the covered postal entity.
            ``(2) Protection of proprietary information.--A covered 
        postal entity shall--
                    ``(A) carefully screen any description of the 
                rationale supporting a noncompetitive award required to 
                be made publicly available under subsection (a) to 
                determine whether the description includes proprietary 
                data (including any reference or citation to the 
                proprietary data) or security-related information; and
                    ``(B) remove any proprietary data or security-
                related information before making publicly available a 
                description of the rationale supporting a 
                noncompetitive award.
    ``(c) Waivers.--
            ``(1) Waiver permitted.--If the Postal Service determines 
        that making a noncompetitive purchase request for a postal 
        contract of the Postal Service under subsection (a)(2) publicly 
        available would risk placing the Postal Service at a 
        competitive disadvantage relative to a private sector 
        competitor, the senior procurement executive, in consultation 
        with the advocate for competition of the Postal Service, may 
        waive the requirements under subsection (a).
            ``(2) Form and content of waiver.--
                    ``(A) Form.--A waiver under paragraph (1) shall be 
                in the form of a written determination placed in the 
                file of the contract to which the noncompetitive 
                purchase request relates.
                    ``(B) Content.--A waiver under paragraph (1) shall 
                include--
                            ``(i) a description of the risk associated 
                        with making the noncompetitive purchase request 
                        publicly available; and
                            ``(ii) a statement that redaction of 
                        sensitive information in the noncompetitive 
                        purchase request would not be sufficient to 
                        protect the Postal Service from being placed at 
                        a competitive disadvantage relative to a 
                        private sector competitor.
            ``(3) Delegation of waiver authority.--The Postal Service 
        may not delegate the authority to approve a waiver under 
        paragraph (1) to any employee having less authority than the 
        senior procurement executive.
``Sec. 704. Review of ethical issues
    ``If a contracting officer identifies any ethical issues relating 
to a proposed contract and submits those issues and that proposed 
contract to the designated ethics official for the covered postal 
entity before the awarding of that contract, that ethics official 
shall--
            ``(1) review the proposed contract; and
            ``(2) advise the contracting officer on the appropriate 
        resolution of ethical issues.
``Sec. 705. Ethical restrictions on participation in certain 
              contracting activity
    ``(a) Definitions.--In this section--
            ``(1) the term `covered employee' means--
                    ``(A) a contracting officer; or
                    ``(B) any employee of a covered postal entity whose 
                decisionmaking affects a postal contract as determined 
                by regulations prescribed by the head of a covered 
                postal entity;
            ``(2) the term `final conviction' means a conviction 
        entered by a court, regardless of whether such conviction was 
        entered on a verdict or pursuant to a plea (including a plea of 
        nolo contendere), and with regard to which no further appeal 
        may be taken or is pending; and
            ``(3) the term `covered relationship' means a covered 
        relationship described in section 2635.502(b)(1) of title 5, 
        Code of Federal Regulations, or any successor thereto.
    ``(b) In General.--
            ``(1) Regulations.--The head of each covered postal entity 
        shall prescribe regulations that--
                    ``(A) require a covered employee to include in the 
                file of any noncompetitive purchase request for a 
                noncompetitive postal contract a written certification 
                that--
                            ``(i) discloses any covered relationship of 
                        the covered employee; and
                            ``(ii) states that the covered employee 
                        will not take any action with respect to the 
                        noncompetitive purchase request that affects 
                        the financial interests of any person with 
                        which the covered employee has a covered 
                        relationship, or otherwise gives rise to an 
                        appearance of the use of public office for 
                        private gain, as described in section 2635.702 
                        of title 5, Code of Federal Regulations, or any 
                        successor thereto;
                    ``(B) require a contracting officer to consult with 
                the ethics counsel for the covered postal entity 
                regarding any disclosure made by a covered employee 
                under subparagraph (A)(i), to determine whether 
                participation by the covered employee in the 
                noncompetitive purchase request would give rise to a 
                violation of part 2635 of title 5, Code of Federal 
                Regulations (commonly referred to as the Standards of 
                Ethical Conduct for Employees of the Executive Branch), 
                or any successor thereto;
                    ``(C) require the ethics counsel for a covered 
                postal entity to review any disclosure made by a 
                contracting officer under subparagraph (A)(i) to 
                determine whether participation by the contracting 
                officer in the noncompetitive purchase request would 
                give rise to a violation of part 2635 of title 5, Code 
                of Federal Regulations (commonly referred to as the 
                Standards of Ethical Conduct for Employees of the 
                Executive Branch), or any successor thereto;
                    ``(D) under subsections (d) and (e) of section 
                2635.502 of title 5, Code of Federal Regulations, or 
                any successor thereto, require the ethics counsel for a 
                covered postal entity to--
                            ``(i) authorize a covered employee that 
                        makes a disclosure under subparagraph (A)(i) to 
                        participate in the noncompetitive postal 
                        contract; or
                            ``(ii) disqualify a covered employee that 
                        makes a disclosure under subparagraph (A)(i) 
                        from participating in the noncompetitive postal 
                        contract;
                    ``(E) require a contractor to timely disclose to 
                the contracting officer in a bid, solicitation, award, 
                or performance of a postal contract any conflict of 
                interest with a covered employee; and
                    ``(F) include authority for the head of the covered 
                postal entity to grant a waiver or otherwise mitigate 
                any organizational or personal conflict of interest, if 
                the head of the covered postal entity determines that 
                the waiver or mitigation is in the best interests of 
                the covered postal entity.
            ``(2) Posting of waivers.--Not later than 30 days after the 
        head of a covered postal entity grants a waiver described in 
        paragraph (1)(F), the head of the covered postal entity shall 
        make the waiver publicly available on the website of the 
        covered postal entity.
    ``(c) Contract Voidance and Recovery.--
            ``(1) Unlawful conduct.--In any case in which there is a 
        final conviction for a violation of any provision of chapter 11 
        of title 18 relating to a postal contract, the head of a 
        covered postal entity may--
                    ``(A) void that contract; and
                    ``(B) recover the amounts expended and property 
                transferred by the covered postal entity under that 
                contract.
            ``(2) Obtaining or disclosing procurement information.--
                    ``(A) In general.--In any case in which a 
                contractor under a postal contract fails to timely 
                disclose a conflict of interest to the appropriate 
                contracting officer as required under the regulations 
                promulgated under subsection (b)(1)(E), the head of a 
                covered postal entity may--
                            ``(i) void that contract; and
                            ``(ii) recover the amounts expended and 
                        property transferred by the covered postal 
                        entity under that contract.
                    ``(B) Conviction or administrative determination.--
                A case described under subparagraph (A) is any case in 
                which--
                            ``(i) there is a final conviction for an 
                        offense punishable under section 2105 of title 
                        41; or
                            ``(ii) the head of a covered postal entity 
                        determines, based upon a preponderance of the 
                        evidence, that the contractor or someone acting 
                        for the contractor has engaged in conduct 
                        constituting an offense punishable under 
                        section 2105 of such title.''.
    (b) Technical and Conforming Amendment.--The table of chapters at 
the beginning of part I is amended by adding at the end the following:

``7. Contracting Provisions.................................     701''.

SEC. 302. TECHNICAL AMENDMENT TO DEFINITION.

    Section 7101(8) of title 41, United States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (C);
            (2) by striking the period at the end of subparagraph (D) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(E) the United States Postal Service and the 
                Postal Regulatory Commission.''.

  TITLE IV--POSTAL REGULATORY COMMISSION, INSPECTOR GENERAL, RELATED 
                     PROVISIONS, AND MISCELLANEOUS

SEC. 401. POSTAL REGULATORY COMMISSION.

    Section 502 of title 39, United States Code, is amended--
            (1) in subsection (c), by striking ``subsection (f)'' and 
        inserting ``subsections (f) and (g)''; and
            (2) by adding at the end the following:
    ``(g) A Commissioner may serve for not more than 2 full terms as a 
Commissioner.''.

SEC. 402. INSPECTOR GENERAL OF THE UNITED STATES POSTAL SERVICE AND THE 
              POSTAL REGULATORY COMMISSION.

    (a) Appointment of Inspector General of the United States Postal 
Service and the Postal Regulatory Commission by President.--Section 8G 
of the Inspector General Act of 1978 (5 U.S.C. App.) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2), by striking ``the United 
                States International Trade Commission, the Postal 
                Regulatory Commission, and the United States Postal 
                Service'' and inserting ``the United States 
                International Trade Commission, and the United States 
                Postal Service and the Postal Regulatory Commission''; 
                and
                    (B) in paragraph (4), by striking subparagraph (B) 
                and inserting the following:
                    ``(B) with respect to the United States Postal 
                Service and the Postal Regulatory Commission, such 
                term, for purposes of oversight of--
                            ``(i) the United States Postal Service, 
                        means the Governors (as defined in section 
                        102(3) of title 39, United States Code); and
                            ``(ii) the Postal Regulatory Commission, 
                        means the Chairman of the Postal Regulatory 
                        Commission;'';
            (2) in subsection (d)(1), by inserting ``or subsection 
        (f)(3)'' after ``Except as provided in paragraph (2)''; and
            (3) in subsection (f)--
                    (A) by striking paragraph (1) and inserting the 
                following:
    ``(1)(A) There is established in the United States Postal Service 
the Office of the Inspector General of the United States Postal Service 
and the Postal Regulatory Commission.
    ``(B) There shall be at the head of the Office of the Inspector 
General of the United States Postal Service and the Postal Regulatory 
Commission an Inspector General (referred to in this subsection as the 
`Inspector General') who shall be appointed by the President, by and 
with the advice and consent of the Senate, without regard to political 
affiliation and solely on the basis of integrity and demonstrated 
ability in accounting, auditing, financial analysis, law, management 
analysis, public administration, or investigations.
    ``(C) The Inspector General may be removed from office by the 
President. If the Inspector General is removed from office or is 
transferred to another position or location within the United States 
Postal Service, the President shall communicate in writing the reasons 
for any such removal or transfer to both Houses of Congress, not later 
than 30 days before the removal or transfer. Nothing in this 
subparagraph shall prohibit a personnel action otherwise authorized by 
law, other than transfer or removal.
    ``(D) For the purposes of section 7324 of title 5, United States 
Code, the Inspector General shall not be considered to be an employee 
who determines policies to be pursued by the United States in the 
nationwide administration of Federal laws.
    ``(E) The Inspector General shall have all of the authorities and 
responsibilities provided by this Act with respect to the Postal 
Regulatory Commission, as if the Postal Regulatory Commission were part 
of the United States Postal Service.'';
                    (B) in paragraph (2), by striking ``of the United 
                States Postal Service (hereinafter in this subsection 
                referred to as the `Inspector General')'';
                    (C) in paragraph (3)--
                            (i) in subparagraph (A)--
                                    (I) in clause (i), in the matter 
                                preceding subclause (I), by inserting 
                                ``relating to the United States Postal 
                                Service'' before ``which require access 
                                to sensitive information''; and
                                    (II) in clause (iii), by striking 
                                ``Committee on Governmental Affairs of 
                                the Senate'' and inserting ``Committee 
                                on Homeland Security and Governmental 
                                Affairs of the Senate'';
                            (ii) in subparagraph (B)(i), by inserting 
                        ``and the Postal Regulatory Commission'' after 
                        ``United States Postal Service''; and
                            (iii) in subparagraph (C), by striking 
                        ``Committee on Governmental Affairs of the 
                        Senate'' and inserting ``Committee on Homeland 
                        Security and Governmental Affairs of the 
                        Senate'';
                    (D) in paragraph (4), by adding at the end the 
                following: ``Nothing in this paragraph may be invoked 
                by the United States Postal Service to restrict or 
                limit any audit or investigation that the Inspector 
                General considers appropriate.''; and
                    (E) in paragraph (6), by inserting ``and the Postal 
                Regulatory Commission'' after ``United States Postal 
                Service''.
    (b) Interim Power of Inspector General of the United States Postal 
Service.--During the period beginning on the date of enactment of this 
Act and ending on the date on which the first individual is appointed 
as Inspector General of the United States Postal Service and the Postal 
Regulatory Commission after the date of enactment of this Act, the 
Inspector General of the United States Postal Service shall have all of 
the authorities and responsibilities provided by the Inspector General 
Act of 1978 (5 U.S.C. App.) with respect to the Postal Regulatory 
Commission on the day before the date of enactment of this Act, as if 
the Postal Regulatory Commission were part of the United States Postal 
Service.
    (c) Transfer of Personnel.--
            (1) Office of the inspector general of the united states 
        postal service.--The personnel employed in the Office of the 
        Inspector General of the United States Postal Service are 
        transferred to the Office of the Inspector General of the 
        United States Postal Service and the Postal Regulatory 
        Commission.
            (2) Office of the inspector general of the postal 
        regulatory commission.--The personnel employed in the Office of 
        the Inspector General of the Postal Regulatory Commission may 
        be transferred to the other offices of the Postal Regulatory 
        Commission.
            (3) Modern service and performance standards.--Any 
        unobligated amounts made available to carry out the functions 
        of the Office of the Inspector General of the Postal Regulatory 
        Commission before the date of enactment of this Act shall be 
        used to establish and revise modern service standards and 
        measure performance under section 3691 of title 39, United 
        States Code, as amended by section 210(a) of this Act.
            (4) Effect.--During the 1-year period beginning on the date 
        of enactment of this Act, any full-time or part-time employee 
        who, on the day before such date of enactment, was employed in 
        a permanent position in the Office of the Inspector General of 
        the Postal Regulatory Commission, shall not be separated or 
        reduced in grade or compensation because of the transfer under 
        an amendment made by this section.
    (d) Technical and Conforming Amendments.--
            (1) Title 39, united states code.--Title 39, United States 
        Code, is amended--
                    (A) in section 102(4), by striking ``section 202(e) 
                of this title'' and inserting ``section 8G(f)(1)(B) of 
                the Inspector General Act of 1978 (5 U.S.C. App.)'';
                    (B) in section 202, by striking subsection (e);
                    (C) in section 504, by striking subsection (h);
                    (D) in section 1001(b), in the first sentence, by 
                inserting ``, and section 8G(f)(1)(B) of the Inspector 
                General Act of 1978 (5 U.S.C. App.)'' after ``1001(c) 
                of this title'';
                    (E) in section 1003(b), by striking ``11(2)'' and 
                inserting ``12(2)'';
                    (F) in section 1005(a)(3), by inserting ``, and 
                section 8G(f)(1)(B) of the Inspector General Act of 
                1978 (5 U.S.C. App.)'' after ``1001(c) of this title'';
                    (G) in section 2009, by inserting ``and the Postal 
                Regulatory Commission'' after ``United States Postal 
                Service''; and
                    (H) in section 2011(h)(2)(D), by inserting ``and 
                the Postal Regulatory Commission'' after ``United 
                States Postal Service''.
            (2) Omnibus consolidated appropriations act, 1997.--Section 
        662(d) of the Omnibus Consolidated Appropriations Act, 1997 (39 
        U.S.C. 2802 note) is amended--
                    (A) in paragraph (1)--
                            (i) in the paragraph heading, by inserting 
                        ``and the postal regulatory commission'' after 
                        ``Postal service'';
                            (ii) in subparagraph (A), by inserting 
                        ``and the Postal Regulatory Commission'' after 
                        ``Postal Service''; and
                            (iii) in subparagraph (B)(i), by inserting 
                        ``and the Postal Regulatory Commission'' after 
                        ``Postal Service''; and
                    (B) in the first sentence of paragraph (2), by 
                inserting ``and the Postal Regulatory Commission'' 
                after ``Postal Service''.
    (e) Savings Provisions.--
            (1) Suits.--The provisions of this Act shall not affect 
        suits commenced before the effective date of this Act, and in 
        all such suits, proceeding shall be had, appeals taken, and 
        judgments rendered in the same manner and with the same effect 
        as if this Act had not been enacted.
            (2) Nonabatement of actions.--No suit, action, or other 
        proceeding commenced by or against the Inspector General of the 
        United States Postal Service or the Inspector General of the 
        Postal Regulatory Commission, or by or against any individual 
        in the official capacity of such individual as an officer of 
        the Office of the Inspector General of the United States Postal 
        Service or the Office of the Inspector General of the Postal 
        Regulatory Commission shall abate by reason of the enactment of 
        this Act.
            (3) Continuance of suits.--If, before the effective date of 
        this Act, the Office of the Inspector General of the United 
        States Postal Service or the Office of the Inspector General of 
        the Postal Regulatory Commission or officer thereof in the 
        official capacity of such officer, is party to a suit, and 
        under this Act any function of the Office of the Inspector 
        General of the United States Postal Service or the Office of 
        the Inspector General of the Postal Regulatory Commission or 
        officer is transferred to the Inspector General of the United 
        States Postal Service and the Postal Regulatory Commission or 
        any other official of the Office of the Inspector General of 
        the United States Postal Service and the Postal Regulatory 
        Commission, then such suit shall be continued with the 
        Inspector General of the United States Postal Service and the 
        Postal Regulatory Commission or other appropriate official of 
        the Office of the Inspector General of the United States Postal 
        Service and the Postal Regulatory Commission substituted or 
        added as a party.
    (f) Applicability.--
            (1) In general.--Except with respect to the amendment made 
        by subsection (a)(1)(A) relating to the Postal Regulatory 
        Commission and the amendment made by subsection (d)(1)(C), the 
        amendments made by this section shall apply with respect to the 
        first individual appointed as Inspector General of the United 
        States Postal Service and the Postal Regulatory Commission 
        after the date of enactment of this Act.
            (2) Rule of construction.--Nothing in this Act may be 
        construed to alter the authority or the length of the term of 
        the individual serving as Inspector General of the United 
        States Postal Service on the date of enactment of this Act.
    (g) References in This Act to the Inspector General of the United 
States Postal Service.--On and after the date on which the first 
individual is appointed as Inspector General of the United States 
Postal Service and the Postal Regulatory Commission after the date of 
enactment of this Act, each reference in this Act to the Inspector 
General of the Postal Service shall be deemed to be a reference to the 
Inspector General of the United States Postal Service and the Postal 
Regulatory Commission.
    (h) Resources for Waste, Fraud, and Abuse Investigations.--
            (1) In general.--Chapter 4 of title 39, United States Code, 
        is amended by adding at the end the following:
``Sec. 417. Waste, fraud, and abuse investigations
    ``The Postal Service may transfer such resources to the Inspector 
General for waste, fraud, and abuse investigations as the Postal 
Service determines necessary.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 4 of title 39, United States Code, is 
        amended by adding at the end the following:

``417. Waste, fraud, and abuse investigations.''.

SEC. 403. GAO REPORT ON FRAGMENTATION, OVERLAP, AND DUPLICATION IN 
              FEDERAL PROGRAMS AND ACTIVITIES.

    The Comptroller General of the United States shall include in the 
annual report to Congress required under section 21 of the Joint 
Resolution entitled ``Joint Resolution increasing the statutory limit 
on the public debt'', approved February 12, 2010 (31 U.S.C. 712 note), 
that is applicable to the first year beginning after the date of 
enactment of this Act a review of the duplication of services and 
functions between the Office of the Inspector General of the Postal 
Service, the Postal Inspection Service, and any other Federal agency.
                                                       Calendar No. 366

115th CONGRESS

  2d Session

                                S. 2629

_______________________________________________________________________

                                 A BILL

        To improve postal operations, service, and transparency.

_______________________________________________________________________

                             April 9, 2018

            Read the second time and placed on the calendar