Title: Postal Service Reform Act of 2022
Policy area: Government Operations and Politics

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

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3076 Introduced in House (IH)]

<DOC>






117th CONGRESS
  1st Session
                                H. R. 3076

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 11, 2021

  Mrs. Carolyn B. Maloney of New York (for herself, Mr. Connolly, Ms. 
Foxx, and Mr. Comer) introduced the following bill; which was referred 
   to the Committee on Oversight and Reform, and in addition to the 
Committees on Energy and Commerce, and Ways and Means, for a period to 
      be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


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

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

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

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

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

               TITLE I--POSTAL SERVICE FINANCIAL REFORMS

SEC. 101. POSTAL SERVICE HEALTH BENEFITS PROGRAM.

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

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

SEC. 102. USPS FAIRNESS ACT.

    (a) Short Title.--This section may be cited as the ``USPS Fairness 
Act''.
    (b) Rational Benefits Funding and Accounting.--
            (1) In general.--Section 8909a of title 5, United States 
        Code, is amended by striking subsection (d) and inserting the 
        following:
    ``(d)(1) Not later than June 30, 2024, and by June 30 of each 
succeeding year, the Office shall compute, for the most recently 
concluded fiscal year, the difference between--
                    ``(A) any Government contributions required to be 
                paid from the Fund under section 8906(g)(2)(A); and
                    ``(B) the net claims costs under the enrollment of 
                the individuals described in section 8906(g)(2)(A).
            ``(2) Not later than September 30 of each year in which the 
        Office makes a computation under paragraph (1), the United 
        States Postal Service shall pay into the Fund the difference 
        computed in such paragraph.
    ``(e) Any computation of the liability of the Fund required by law 
shall be based on--
            ``(1) the net present value of the future net claims costs 
        with respect to--
                    ``(A) current annuitants of the United States 
                Postal Service as of the end of the fiscal year ending 
                on September 30 of the relevant reporting year; and
                    ``(B) current employees of the United States Postal 
                Service who would, as of September 30 of that year,--
                            ``(i) be eligible to become annuitants 
                        pursuant to section 8901(3)(A); and
                            ``(ii) if they were retired as of that 
                        date, meet the criteria for coverage of 
                        annuitants under section 8905(b);
            ``(2) economic and actuarial methods and assumptions 
        consistent with the methods and assumptions used in determining 
        the Postal surplus or supplemental liability under section 
        8348(h); and
            ``(3) any other methods and assumptions, including a health 
        care cost trend rate, that the Director of the Office 
        determines to be appropriate.
    ``(f) After consultation with the United States Postal Service, the 
Office shall promulgate any regulations the Office determines necessary 
under this subsection.
    ``(g) For purposes of this section, the term `net claims costs' 
shall mean the difference between--
            ``(1) the sum of--
                    ``(A) the costs incurred by a carrier in providing 
                health services to, paying for health services provided 
                to, or reimbursing expenses for health services 
                provided to, annuitants of the United States Postal 
                Service and any other persons covered under the 
                enrollment of such annuitants; and
                    ``(B) an amount of indirect expenses reasonably 
                allocable to the provision, payment, or reimbursement 
                described in subparagraph (A), as determined by the 
                Office; and
            ``(2) the amount withheld from the annuity of or paid by 
        annuitants of the United States Postal Service under section 
        8906.''.
            (2) Clerical amendment.--The heading of section 8909a of 
        title 5, United States Code, is amended by striking ``Benefit'' 
        and inserting ``Benefits''.
    (c) Application.--
            (1) Cancellation of payments.--Any payment required from 
        the Postal Service under section 8909a of title 5, United 
        States Code, as in effect on the day before the date of 
        enactment of this Act that remains unpaid as of such date of 
        enactment is canceled.
            (2) Effect of this act.--In any determination relating to 
        the future liability for retiree health benefits of the United 
        States Postal Service or the Postal Service Retiree Health 
        Benefits Fund, the Office of Personnel Management shall take 
        into account the actual and reasonably expected effects of this 
        Act.
    (d) Use of Funds From Sale of Real Property for Certain Payments.--
            (1) In general.--Chapter 29 of title 39, United States 
        Code, is amended by adding at the end the following:
``Sec. 2903. Use of funds from sale of property
    ``In the event that the Postal Service permanently ceases 
operations, any funds derived from the sale of any real property owned 
by the Postal Service shall be used to pay any outstanding liability 
with respect to the salaries and expenses of any Postal Service 
employee. The balance of any remaining funds shall be deposited into 
the Postal Service Retiree Health Benefits Fund established under 
section 8909a of title 5.''.
            (2) Clerical amendment.--The table of sections of such 
        chapter is amended by adding after the item relating to section 
        2902 the following new item:

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

SEC. 103. NONPOSTAL SERVICES.

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

                    ``CHAPTER 37--NONPOSTAL SERVICES

``Sec.
``3701. Purpose.
``3702. Definitions.
``3703. Postal Service program for State governments.
``3704. Postal Service program for other Government agencies.
``3705. Transparency and accountability for nonpostal services.
``Sec. 3701. Purpose
    ``The purpose of this chapter is to enable the Postal Service to 
increase its net revenues through specific nonpostal products and 
services that are expressly authorized by this chapter. Postal Service 
revenues and expenses under this chapter shall be funded through the 
Postal Service Fund.
``Sec. 3702. Definitions
    ``In this chapter--
            ``(1) the term `nonpostal services' is limited to services 
        offered by the Postal Service that are expressly authorized by 
        this chapter and are not postal products or services;
            ``(2) the term `attributable costs' has the meaning given 
        such term in section 3631; and
            ``(3) the term `year' means a fiscal year.
``Sec. 3703. Postal Service program for State governments
    ``(a) In General.--Notwithstanding any other provision of this 
title, the Postal Service may establish a program to enter into 
agreements with an agency of any State government, local government, or 
tribal government to provide property and services on behalf of such 
agencies for non-commercial products and services, but only if such 
property and services--
            ``(1) provide enhanced value to the public, such as by 
        lowering the cost or raising the quality of such services or by 
        making such services more accessible;
            ``(2) do not interfere with or detract from the value of 
        postal services, including--
                    ``(A) the cost and efficiency of postal services; 
                and
                    ``(B) unreasonably restricting access to postal 
                retail service, such as customer waiting time and 
                access to parking; and
            ``(3) provide a reasonable contribution to the 
        institutional costs of the Postal Service, defined as 
        reimbursement that covers at least 100 percent of attributable 
        costs of all property and services provided under each relevant 
        agreement in each year.
    ``(b) Public Notice.--At least 90 days before offering a service 
under the program, the Postal Service shall make available to the 
public on its website--
            ``(1) the agreement with the agency regarding such service; 
        and
            ``(2) a business plan that describes the specific service 
        to be provided, the enhanced value to the public, terms of 
        reimbursement, the estimated annual reimbursement to the Postal 
        Service, and the estimated percentage of attributable Postal 
        Service costs that will be covered by reimbursement (with 
        documentation to support the estimates).
    ``(c) Public Comment.--Before offering a service under the program, 
the Postal Service shall provide for a public comment period of at 
least 30 days that allows the public to post comments relating to the 
provision of such services on the Postal Service website. The Postal 
Service shall make reasonable efforts to provide written responses to 
the comments on such website at least 30 days before offering such 
services.
    ``(d) Approval Required.--The Postal Service may not establish the 
program under subsection (a) unless the Governors of the Postal Service 
approve such program by a recorded vote that is publicly disclosed on 
the Postal Service website with a majority of the total Governors 
voting for approval.
    ``(e) Application of Reporting Requirements.--For purposes of the 
reporting requirements under section 3705, the Postal Service shall 
submit a separate report for each agreement with an agency entered into 
under subsection (a) analyzing the costs, revenues, rates, and quality 
of service for the provision of all services under such agreement, 
including information demonstrating that the agreement satisfies the 
requirements of paragraphs (1) through (3) of subsection (a).
    ``(f) Regulations Required.--The Postal Regulatory Commission shall 
issue such regulations as are necessary to carry out this section.
    ``(g) Definitions.--For the purpose of this section--
            ``(1) the term `local government' means a county, 
        municipality, city, town, township, local public authority, 
        school district, special district, intrastate district, council 
        of governments, or regional or interstate government entity;
            ``(2) the term `State government' includes the government 
        of the District of Columbia, the Commonwealth of Puerto Rico, 
        the United States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and any other 
        territory or possession of the United States;
            ``(3) the term `tribal government' means the government of 
        an Indian tribe, as that term is defined in section 4(e) of the 
        Indian Self-Determination Act (25 U.S.C. 450b(e)); and
            ``(4) the term `United States', when used in a geographical 
        sense, means the States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the United States Virgin Islands, 
        Guam, American Samoa, the Commonwealth of the Northern Mariana 
        Islands, and any other territory or possession of the United 
        States.
    ``(h) Confidential Information.--Subsection (b) or (c) shall not be 
construed as requiring the Postal Service to disclose to the public any 
information--
            ``(1) described in section 410(c); or
            ``(2) exempt from public disclosure under section 552(b) of 
        title 5.
``Sec. 3704. Postal Service program for other Government agencies
    ``(a) In General.--The Postal Service may establish a program to 
provide property and services to other Government agencies within the 
meaning of section 411, but only if such program provides a reasonable 
contribution to the institutional costs of the Postal Service, defined 
as reimbursement by each agency that covers at least 100 percent of the 
attributable costs of all property and service provided by the Postal 
Service in each year to such agency.
    ``(b) Application of Reporting Requirements.--For purposes of the 
reporting requirements under section 3705, the Postal Service shall 
submit a separate report for each agreement with an agency entered into 
under subsection (a) analyzing the costs, revenues, rates, and quality 
of service for the provision of all services under such agreement, 
including information demonstrating that the agreement satisfies the 
requirements of subsection (a).
``Sec. 3705. Transparency and accountability for nonpostal services
    ``(a) Annual Report to the Commission.--
            ``(1) In general.--Not later than 90 days after the last 
        day of each year, the Postal Service shall submit to the Postal 
        Regulatory Commission a report that analyzes costs, revenues, 
        rates, and quality of service for each agreement for the 
        provision of property and services under this chapter, using 
        such methodologies as the Commission may prescribe, and in 
        sufficient detail to demonstrate compliance with the 
        requirements of this chapter.
            ``(2) Supporting matter.--A report submitted under 
        paragraph (1) shall include any nonpublic annex, the working 
        papers, and any other supporting matter of the Postal Service 
        and the Inspector General related to the information submitted 
        in such report.
    ``(b) Content and Form of Report.--
            ``(1) In general.--The Postal Regulatory Commission shall, 
        by regulation, prescribe the content and form of the report 
        required under subsection (a). In prescribing such regulations, 
        the Commission shall give due consideration to--
                    ``(A) providing the public with timely, adequate 
                information to assess compliance;
                    ``(B) avoiding unnecessary or unwarranted 
                administrative effort and expense on the part of the 
                Postal Service; and
                    ``(C) protecting the confidentiality of information 
                that is commercially sensitive or is exempt from public 
                disclosure under section 552(b) of title 5.
            ``(2) Revised requirements.--The Commission may, on its own 
        motion or on request of any interested party, initiate 
        proceedings to improve the quality, accuracy, or completeness 
        of Postal Service data required by the Commission if--
                    ``(A) the attribution of costs or revenues to 
                property or services under this chapter has become 
                significantly inaccurate or can be significantly 
                improved;
                    ``(B) the quality of service data provided to the 
                Commission for a report under this chapter has become 
                significantly inaccurate or can be significantly 
                improved; or
                    ``(C) such revisions are, in the judgment of the 
                Commission, otherwise necessitated by the public 
                interest.
    ``(c) Audits.--The Inspector General shall regularly audit the data 
collection systems and procedures used in collecting information and 
preparing the report required under subsection (a). The results of any 
such audit shall be submitted to the Postal Service and the Postal 
Regulatory Commission.
    ``(d) Confidential Information.--
            ``(1) In general.--If the Postal Service determines that 
        any document or portion of a document, or other matter, which 
        it provides to the Postal Regulatory Commission in a nonpublic 
        annex under this section contains information described in 
        section 410(c), or exempt from public disclosure under section 
        552(b) of title 5, the Postal Service shall, at the time of 
        providing such matter to the Commission, notify the Commission 
        of its determination, in writing, and describe with 
        particularity the documents (or portions of documents) or other 
        matter for which confidentiality is sought and the reasons 
        therefor.
            ``(2) Treatment.--Any information or other matter described 
        in paragraph (1) to which the Commission gains access under 
        this section shall be subject to paragraphs (2) and (3) of 
        section 504(g) in the same way as if the Commission had 
        received notification with respect to such matter under section 
        504(g)(1).
    ``(e) Annual Compliance Determination.--
            ``(1) Opportunity for public comment.--Upon receiving a 
        report required under subsection (a), the Postal Regulatory 
        Commission shall promptly--
                    ``(A) provide an opportunity for comment on such 
                report by any interested party; and
                    ``(B) appoint an officer of the Commission to 
                represent the interests of the general public.
            ``(2) Determination of compliance or noncompliance.--Not 
        later than 90 days after receiving a report required under 
        subsection (a), the Postal Regulatory Commission shall make a 
        written determination as to whether the nonpostal activities 
        carried out during the applicable year were or were not in 
        compliance with the provisions of this chapter. For purposes of 
        this paragraph, any case in which the requirements for coverage 
        of attributable costs have not been met shall be considered to 
        be a case of noncompliance. If, with respect to a year, no 
        instance of noncompliance is found to have occurred, the 
        determination shall be to that effect. Such determination of 
        noncompliance shall be included with the annual compliance 
        determination required under section 3653.
            ``(3) Noncompliance.--If a timely written determination of 
        noncompliance is made under paragraph (2), the Postal 
        Regulatory Commission shall take appropriate action. If the 
        requirements for coverage of attributable costs specified by 
        this chapter are not met, the Commission shall, within 60 days 
        after the determination, prescribe remedial action to restore 
        compliance as soon as practicable, including the full 
        restoration of revenue shortfalls during the following year. 
        The Commission may order the Postal Service to discontinue a 
        nonpostal service under section 3703 that persistently fails to 
        meet cost coverage requirements.
            ``(4) Deliberate noncompliance.--In the case of deliberate 
        noncompliance by the Postal Service with the requirements of 
        this chapter, the Postal Regulatory Commission may order, based 
        on the nature, circumstances, extent, and seriousness of the 
        noncompliance, a fine (in the amount specified by the 
        Commission in its order) for each incidence of such 
        noncompliance. All receipts from fines imposed under this 
        subsection shall be deposited in the general fund of the 
        Treasury.
    ``(f) Regulations Required.--The Postal Regulatory Commission shall 
issue such regulations as are necessary to carry out this section.''.
            (2) Clerical amendment.--The table of chapters for part IV 
        of title 39, United States Code, is amended by adding after the 
        item relating to chapter 36 the following:

``37. Nonpostal services....................................    3701''.
    (b) Conforming Amendments.--
            (1) Section 404.--Section 404(e) of title 39, United States 
        Code, is amended--
                    (A) in paragraph (2), by inserting after 
                ``subsection'' the following: ``, or any nonpostal 
                products or services authorized by chapter 37''; and
                    (B) by adding at the end the following:
    ``(6) Licensing which, before the date of enactment of this 
paragraph, has been authorized by the Postal Regulatory Commission for 
continuation as a nonpostal service may not be used for any purpose 
other than--
            ``(A) to continue to provide licensed mailing, shipping, or 
        stationery supplies offered as of June 23, 2011; or
            ``(B) to license other goods, products, or services, the 
        primary purpose of which is to promote and enhance the image or 
        brand of the Postal Service.
    ``(7) Nothing in this section shall be construed to prevent the 
Postal Service from establishing nonpostal products and services that 
are expressly authorized by chapter 37.''.
            (2) Section 411.--The last sentence of section 411 of title 
        39, United States Code, is amended by striking ``including 
        reimbursability'' and inserting ``including reimbursability 
        within the limitations of chapter 37''.
            (3) Treatment of existing nonpostal services.--All 
        individual nonpostal services, provided directly or through 
        licensing, that are continued pursuant to section 404(e) of 
        title 39, United States Code, shall be considered to be 
        expressly authorized by chapter 37 of such title (as added by 
        subsection (a)(1)) and shall be subject to the requirements of 
        such chapter.
            (4) Repeal of certain limitations on experimental 
        products.--Section 3641 of title 39, United States Code, is 
        amended--
                    (A) by striking subsections (b), (d), and (e); and
                    (B) by redesignating--
                            (i) subsection (c) as subsection (b); and
                            (ii) subsections (f), (g), (h), and (i) as 
                        subsections (c), (d), (e), and (f), 
                        respectively.

              TITLE II--POSTAL SERVICE OPERATIONAL REFORMS

SEC. 201. PERFORMANCE TARGETS AND TRANSPARENCY.

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

SEC. 202. INTEGRATED DELIVERY NETWORK.

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

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

    Not later than the date that is one year after the date of the 
enactment of this Act, the Postal Regulatory 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. 204. RURAL NEWSPAPER SUSTAINABILITY.

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

SEC. 205. FUNDING OF POSTAL REGULATORY COMMISSION.

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

SEC. 206. FLATS OPERATIONS STUDY AND REFORM.

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

SEC. 207. REPORTING REQUIREMENTS.

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

SEC. 208. POSTAL SERVICE TRANSPORTATION SELECTION POLICY REVISIONS.

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

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

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