Postal Service Reform Act of 2022
PL 117-108 (H.R.3076), enacted 04/06/2022

[117th Congress Public Law 108]
[From the U.S. Government Publishing Office]



[[Page 136 STAT. 1127]]

Public Law 117-108
117th Congress

                                 An Act


 
 To provide stability to and enhance the services of the United States 
 Postal Service, and for other purposes. <<NOTE: Apr. 6, 2022 -  [H.R. 
                                3076]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Postal Service 
Reform Act of 2022.>> 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) <<NOTE: 39 USC 101 note.>>  Short Title.--This Act may be cited 
as the ``Postal Service Reform Act of 2022''.

    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

                TITLE I--POSTAL SERVICE FINANCIAL REFORMS

Sec. 101. Postal Service Health Benefits Program.
Sec. 102. USPS Fairness Act.
Sec. 103. Nonpostal services.

              TITLE II--POSTAL SERVICE OPERATIONAL REFORMS

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

                         TITLE III--SEVERABILITY

Sec. 301. Severability.

SEC. 2. <<NOTE: 39 USC 501 note.>>  DEFINITIONS.

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

                TITLE I--POSTAL SERVICE FINANCIAL REFORMS

SEC. 101. POSTAL SERVICE HEALTH BENEFITS PROGRAM.

    (a) Establishment.--
            (1) In general.--Chapter 89 of title 5, United States Code, 
        is amended by inserting after section 8903b the following:

[[Page 136 STAT. 1128]]

``Sec. 8903c. <<NOTE: 5 USC 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 2025;
            ``(3) the term `initial participating carrier' means a 
        carrier that enters into a contract with the Office to 
        participate in the 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 required to be paid under 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 Benefits Program;
            ``(12) the term `Program plan' means a health benefits plan 
        offered under the Program; and
            ``(13) the definitions set forth in section 8901 shall 
        apply, and for the purposes of applying such definitions in 
        carrying out this section, a Postal Service employee and Postal 
        Service annuitant shall be treated in the same manner as an 
        employee and an annuitant (as those terms are defined in 
        paragraphs (1) and (3), respectively, of section 8901), 
        consistent with the requirements of this section.

    ``(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.

    ``(c) Establishment of the Postal Service Health Benefits Program.--
            ``(1) In general.--
                    ``(A) Establishment.--The Office shall establish the 
                Postal Service Health Benefits Program within the 
                Federal Employees Health Benefits Program under this 
                chapter, under which the Office may contract with 
                carriers to offer health benefits plans as described 
                under this section.

[[Page 136 STAT. 1129]]

                    ``(B) Applicability of chapter requirements to 
                contracts.--Except as otherwise provided in this 
                section, any contract described in subparagraph (A) 
                shall be consistent with the requirements of this 
                chapter for contracts under section 8902 with carriers 
                to offer health benefits plans other than under this 
                section.
                    ``(C) Program plans and participation.--The Program 
                shall--
                          ``(i) to the greatest extent practicable--
                                    ``(I) <<NOTE: Effective date.>>  
                                with respect to each plan provided by a 
                                carrier under this subchapter in which 
                                the total enrollment includes, in the 
                                contract year beginning in January 2023, 
                                1,500 or more enrollees who are Postal 
                                Service employees or Postal Service 
                                annuitants, include a plan offered by 
                                that carrier with equivalent benefits 
                                and cost-sharing requirements as 
                                provided under paragraph (2), except 
                                that the Director of the Office may 
                                exempt any comprehensive medical plan 
                                from this requirement; and
                                    ``(II) include plans offered by any 
                                other carrier determined appropriate by 
                                the Office;
                          ``(ii) provide for enrollment in Program plans 
                      of Postal Service employees and Postal Service 
                      annuitants, in accordance with subsection (d);
                          ``(iii) provide for enrollment in a Program 
                      plan as an individual, for self plus one, or for 
                      self and family; and
                          ``(iv) not provide for enrollment in a Program 
                      plan of 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 (4)).
            ``(2) Coverage with equivalent benefits and cost-sharing.--
        In the initial contract year, the Office shall ensure that each 
        carrier participating in the Program provides under the Program 
        plans offered by the carrier benefits and cost-sharing 
        requirements that are equivalent to the benefits and cost-
        sharing requirements under the health benefits plans offered by 
        the carrier under this chapter that are not Program plans, 
        except that prescription drug benefits and cost-sharing 
        requirements may differ between the Program plans and other 
        health benefits plans offered by the carrier under this chapter 
        to the extent needed to integrate the Medicare part D 
        prescription drug benefits coverage required under subsection 
        (h)(2).
            ``(3) Applicability of federal employees health benefits 
        program requirements.--Except as otherwise set forth in this 
        section, the 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.
            ``(4) 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.--Each Postal Service employee and Postal 
Service annuitant who elects to receive health benefits coverage under 
this chapter--

[[Page 136 STAT. 1130]]

            ``(1) shall be subject to the requirements of this section; 
        and
            ``(2) may not enroll in any other health benefits plan 
        offered under any other section of this chapter.

    ``(e) Requirement of Medicare Enrollment for Certain Annuitants and 
Their Family Members.--
            ``(1) Medicare covered annuitants.--Except as provided under 
        paragraph (3), a Postal Service Medicare covered annuitant may 
        not enroll in a Program plan unless the annuitant is entitled to 
        benefits under Medicare part A and enrolled in Medicare part B.
            ``(2) Medicare covered family members.--Except as provided 
        under paragraph (3), in the case of a Postal Service annuitant 
        who is entitled to benefits under Medicare part A and required 
        under this subsection to enroll in Medicare part B to enroll 
        under the Program, if a member of family of such Postal Service 
        annuitant is a covered Medicare individual, 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 
        entitled to benefits under Medicare part A and enrolled in 
        Medicare part B.
            ``(3) Exceptions.--
                    ``(A) <<NOTE: Effective date.>>  In general.--The 
                requirements under paragraphs (1) and (2), as 
                applicable, shall not apply with respect to an 
                individual in the following cases:
                          ``(i) Current postal service annuitants.--The 
                      individual, as of January 1, 2025, is a Postal 
                      Service annuitant who is not both entitled to 
                      benefits under Medicare part A and enrolled in 
                      Medicare part B.
                          ``(ii) Current employees aged 64 and over.--
                      The individual, as of January 1, 2025, is a Postal 
                      Service employee and is at least 64 years of age.
                          ``(iii) Postal service medicare covered 
                      annuitants and family members residing abroad.--
                      For any contract year with respect to which the 
                      individual is a Postal Service Medicare covered 
                      annuitant or a member of family of a Postal 
                      Service Medicare covered annuitant and resides 
                      outside the United States (which includes the 
                      States, the District of Columbia, the Commonwealth 
                      of Puerto Rico, the Virgin Islands, Guam, American 
                      Samoa, and the Northern Mariana Islands), provided 
                      that the individual demonstrates such residency to 
                      the Postal Service in accordance with regulations 
                      issued by the Postal Service.
                          ``(iv) Postal service medicare covered 
                      annuitants and family members enrolled under va 
                      coverage.--The individual--
                                    ``(I) is a Postal Service Medicare 
                                covered annuitant or a member of family 
                                of a Postal Service Medicare covered 
                                annuitant; and
                                    ``(II) is enrolled in health care 
                                benefits provided by the Department of 
                                Veterans Affairs under subchapter II of 
                                chapter 17 of title 38, United States 
                                Code.
                          ``(v) Postal service medicare covered 
                      annuitants and family members eligible for ihs 
                      health services.--The individual--

[[Page 136 STAT. 1131]]

                                    ``(I) is a Postal Service Medicare 
                                covered annuitant or a member of family 
                                of a Postal Service Medicare covered 
                                annuitant; and
                                    ``(II) is eligible for health 
                                services from the Indian Health Service.
                    ``(B) <<NOTE: Deadline. Consultation.>>  Regulations 
                for va and ihs exceptions.--Not later than 1 year after 
                the date of enactment of this section, the Office shall, 
                in consultation with the Secretary of Veterans Affairs, 
                the Secretary of Health and Human Services, and the 
                Postmaster General, promulgate any regulations necessary 
                to implement clauses (iv) and (v) of subparagraph (A).
                    ``(C) List of individuals residing abroad.--The 
                Postal Service shall provide a list of individuals who 
                satisfy the exception under subparagraph (A)(iii) to the 
                Office.
            ``(4) Process for information collection and 
        dissemination. <<NOTE: Consultation.>> --The Postal Service and 
        the Office, in consultation with the Social Security 
        Administration and the Centers for Medicare & Medicaid Services, 
        shall establish a process that will enable the Postal Service to 
        timely inform Postal Service employees, Postal Service 
        annuitants, and members of family of such employees and 
        annuitants of the requirements described in paragraphs (1) and 
        (2) in order to be eligible to enroll in Program plans under 
        this section.

    ``(f) Transitional Open Season.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `current option', with respect to an 
                individual, means the option under a plan under this 
                chapter in which the individual is enrolled during the 
                contract year preceding the initial contract year; and
                    ``(B) the term `current plan', with respect to an 
                individual, means the plan under this chapter in which 
                the individual is enrolled during the contract year 
                preceding the initial contract year.
            ``(2) Automatic enrollment.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), in the case of an individual who is a Postal 
                Service employee or Postal Service annuitant eligible to 
                enroll in a Program plan under subsection (d), who is 
                enrolled in a current plan, and who does not enroll in a 
                Program plan during the open season that immediately 
                precedes the initial contract year, the Office shall 
                automatically enroll the individual, as of the start of 
                the initial contract year, in a Program plan offered by 
                the carrier of the individual's current plan.
                    ``(B) Carriers offering multiple program plans or 
                options.--If the carrier of the current plan of an 
                individual described in subparagraph (A) offers more 
                than 1 Program plan or option, the Office, in carrying 
                out subparagraph (A), shall automatically enroll the 
                individual in the plan and option that provide coverage 
                with equivalent benefits and cost sharing, as described 
                in subsection (c)(2), to the individual's current plan 
                and current option.
                    ``(C) Carriers not offering program plans.--If the 
                carrier of the current plan of an individual described 
                in subparagraph (A) does not offer a Program plan, the 
                Office, in carrying out subparagraph (A), shall 
                automatically enroll

[[Page 136 STAT. 1132]]

                the individual in the lowest-cost nationwide plan option 
                within the Program that is not a high deductible health 
                plan and does not charge an association or membership 
                fee.

    ``(g) OPM Regulations.--
            ``(1) <<NOTE: Deadline.>>  In general.--Not later than 1 
        year after the date of enactment of this section, the Director 
        of the Office shall issue regulations to carry out this section.
            ``(2) Consultation.--In issuing regulations under paragraph 
        (1), the Director of the Office shall consult, as necessary, 
        with the Secretary of Health and Human Services, the Secretary 
        of Veterans Affairs, the Commissioner of Social Security, and 
        the Postmaster General.
            ``(3) Contents.--The regulations issued under paragraph (1) 
        shall include--
                    ``(A) any provisions necessary to implement this 
                section;
                    ``(B) a process under which Postal Service 
                annuitants and affected family members are timely 
                informed of the enrollment requirements and may request, 
                in writing, any additional enrollment information;
                    ``(C) provisions under which a Postal Service 
                employee or Postal Service annuitant enrolled under the 
                Program may request a belated change of plan and may be 
                prospectively enrolled in the plan of the employee's or 
                annuitant's choice; and
                    ``(D) provisions for individuals to cancel coverage 
                under the Program in writing to the Postal Service 
                because the individuals choose not to enroll in, or to 
                disenroll from, Medicare part B.

    ``(h) <<NOTE: Requirements.>>  Medicare Coordination.--
            ``(1) In general.--The Office shall require each Program 
        plan to provide benefits for covered Medicare individuals 
        pursuant to a coordination of benefits method approved by the 
        Office.
            ``(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) a prescription drug plan (as defined in 
                section 1860D-41(a)(14) of such Act); or
                    ``(B) <<NOTE: Contracts.>>  contracts between such a 
                Program plan and PDP sponsor, as defined in section 
                1860D-41(a)(13) of such Act, of such a prescription drug 
                plan.

    ``(i) Postal Service Contribution.--
            ``(1) <<NOTE: Applicability.>>  In general.--Subject to 
        subsection (k), 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) <<NOTE: Deadline. Effective date. Determination.>>  
        Weighted average calculation.--Not later than October 1 of each 
        year (beginning with 2024), 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;

[[Page 136 STAT. 1133]]

                    ``(B) enrollments for self plus one; and
                    ``(C) enrollments for self and family.
            ``(3) Weighting in computing rates for initial contract 
        year.-- <<NOTE: Effective date.>> 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, 2023.
            ``(4) Payment of late enrollment penalties.--The Postal 
        Service may direct the Office to pay the amounts required by an 
        agreement between the United States Postal Service and the 
        Secretary of the Department of Health and Human Services under 
        section 1839(e)(1) of the Social Security Act (42 U.S.C. 
        1395r(e)(1)) from the Postal Service Retiree Health Benefits 
        Fund established under section 8909a until depleted and 
        thereafter shall pay such amounts from the Postal Service Fund 
        established under section 2003 of title 39.

    ``(j) 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.
                    ``(B) Applicability of section 8909 to contingency 
                reserves.--All provisions of section 8909 relating to 
                contingency reserves shall apply to contingency reserves 
                of Program plans in the same manner as to the 
                contingency reserves of other plans under this chapter, 
                except to the extent that such provisions are 
                inconsistent with the requirements of this subsection.
                    ``(C) References.--For purposes of the Program, each 
                reference to `the Government' in section 8909 shall be 
                deemed to be a reference to the Postal Service.
                    ``(D) Amounts to be credited.--The reserves 
                (including the separate contingency reserve) maintained 
                for 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) <<NOTE: Applicability.>>  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.

    ``(k) 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.
    ``(l) Health Benefits Education Program.--
            ``(1) Definition.--In this subsection, the term `navigator' 
        means an employee of the Postal Service or of a contractor of 
        the Postal Service who is designated by the Postal Service or 
        contractor to carry out activities under paragraph (5).
            ``(2) <<NOTE: Deadline.>>  Establishment.--Not later than 18 
        months after the date of enactment of this section, the Postal 
        Service shall establish a Health Benefits Education Program.

[[Page 136 STAT. 1134]]

            ``(3) Requirements.--In carrying out the Health Benefits 
        Education Program established under paragraph (2), the Postal 
        Service shall--
                    ``(A) <<NOTE: Notification.>>  notify Postal Service 
                annuitants and Postal Service employees about the Postal 
                Service Health Benefits Program established under 
                subsection (c)(1);
                    ``(B) provide information regarding the Postal 
                Service Health Benefits Program and the requirements of 
                this section to Postal Service annuitants and Postal 
                Service employees, including--
                          ``(i) a description of the health care options 
                      available under such Program;
                          ``(ii) the enrollment provisions of subsection 
                      (d); and
                          ``(iii) the requirement that Postal Service 
                      annuitants and their family members be enrolled in 
                      Medicare under subsection (e);
                    ``(C) <<NOTE: Consultation.>>  respond and provide 
                answers to any inquiry from such employees and 
                annuitants about the Postal Service Health Benefits 
                Program, in consultation with the Office as necessary;
                    ``(D) <<NOTE: Consultation.>>  in consultation with 
                the Centers for Medicare & Medicaid Services and the 
                Social Security Administration, provide information to 
                individuals about enrollment under the Medicare program 
                under title XVIII of the Social Security Act, and refer 
                individuals to the Centers for Medicare & Medicaid 
                Services and the Social Security Administration as 
                necessary for additional enrollment information; and
                    ``(E) carry out, or provide for through contract or 
                other arrangement, the activities described in paragraph 
                (5).
            ``(4) Information.--
                    ``(A) Information from opm.--The Office shall timely 
                provide the Postal Service with such information as 
                necessary to conduct the Health Benefits Education 
                Program.
                    ``(B) <<NOTE: Consultation.>>  Coordination with 
                opm.--The Postal Service shall coordinate with the 
                Office, in consultation with the Centers for Medicare & 
                Medicaid Services and the Social Security 
                Administration, to obtain and confirm the accuracy of 
                information as the Postal Service determines to be 
                necessary to conduct the Health Benefits Education 
                Program.
            ``(5) Navigator activities.--
                    ``(A) Activities.--The activities described in this 
                paragraph, with respect to Program plans and the health 
                care options available under the Program, are the 
                following:
                          ``(i) Educational activities for annuitants 
                      and employees of the Postal Service to raise 
                      awareness of the availability of Program plans and 
                      requirements for enrolling in such plans, 
                      including requirements to be entitled to Medicare 
                      part A and enroll in Medicare part B.
                          ``(ii) Distribution of fair and impartial 
                      information concerning enrollment in such plans.
                          ``(iii) Facilitation of enrollment in such 
                      plans.
                          ``(iv) Provision of information in a manner 
                      that is culturally and linguistically appropriate 
                      to the needs of the population being served by the 
                      Program plans.

[[Page 136 STAT. 1135]]

                    ``(B) Standards.--
                          ``(i) In general.--The Postal Service shall 
                      establish standards for navigators carrying out 
                      the activities under this paragraph to--
                                    ``(I) engage in the navigator 
                                activities described in subparagraph 
                                (A); and
                                    ``(II) avoid conflicts of interest.
                          ``(ii) Contents.--The standards established 
                      under clause (i) shall provide that a navigator 
                      may not--
                                    ``(I) be a health insurance carrier; 
                                or
                                    ``(II) receive any consideration 
                                directly or indirectly from any health 
                                insurance carrier in connection with the 
                                enrollment of any individual in a 
                                Program plan.
                    ``(C) <<NOTE: Consultation.>>  Fair and impartial 
                information and services.--The Postal Service, in 
                consultation as necessary with the Office and the 
                Centers for Medicare & Medicaid Services, shall develop 
                standards to ensure that information made available by 
                navigators under this paragraph is fair, accurate, and 
                impartial.
            ``(6) Regulations.--
                    ``(A) <<NOTE: Deadline.>>  In general.--Not later 
                than 18 months after the date of enactment of this 
                section, the Postmaster General shall issue regulations 
                to establish the Health Benefits Education Program 
                required under this subsection.
                    ``(B) <<NOTE: Notifications.>>  Contents.--The 
                regulations issued under subparagraph (A) shall 
                include--
                          ``(i) provisions for the notification of 
                      Postal Service annuitants and Postal Service 
                      employees about the Program, including a 
                      description of the available health benefits 
                      options, including a process for notifying Postal 
                      Service employees who become eligible for Medicare 
                      part B and Postal Service Medicare covered 
                      annuitants about their choices;
                          ``(ii) provisions for notifying Postal Service 
                      annuitants, Postal Service employees, and their 
                      family members of the requirements under 
                      subsection (e) to enroll in Medicare as a 
                      condition of eligibility to enroll in the Program; 
                      and
                          ``(iii) <<NOTE: Consultation.>>  a process, 
                      developed in consultation with the Social Security 
                      Administration, the Centers for Medicare & 
                      Medicaid Services, and the Office, for addressing 
                      any inquiry from Postal Service annuitants and 
                      Postal Service employees about the Program or 
                      Medicare enrollment.''.
            (2) Technical and conforming amendments.--
                    (A) Service benefit plans.--Section 8903(1) of title 
                5, United States Code, is amended by striking ``two 
                levels of benefits'' and inserting ``at least 2 levels 
                of benefits for enrollees under this chapter generally 
                and at least 2 levels of benefits for enrollees under 
                the Postal Service Health Benefits Program established 
                under section 8903c''.
                    (B) Table of sections.--The table of sections for 
                chapter 89 of title 5, United States Code, <<NOTE: 5 USC 
                8901 prec.>>  is amended by inserting after the item 
                relating to section 8903b the following:

``8903c. Postal Service Health Benefits Program.''.


[[Page 136 STAT. 1136]]


                    (C) Application to certain postal service annuitants 
                or family members.--Section 1862(b)(1)(E) of the Social 
                Security Act (42 U.S.C. 1395y(b)(1)(E)) is amended by 
                adding at the end the following:
                          ``(iv) Application to certain postal service 
                      annuitants or family members.--Nothing in this 
                      paragraph shall prohibit a group health plan from 
                      determining an individual's eligibility to enroll 
                      in a health benefits plan offered under the Postal 
                      Service Health Benefits Program under section 
                      8903c of title 5, United States Code, in 
                      accordance with subsection (e) of such section.''.

    (b) Coordination With Medicare.--
            (1) Part b special enrollment period.--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) <<NOTE: Effective date.>>  as of January 1, 2024, is--
                    ``(i) a Postal Service annuitant who is entitled to 
                benefits under part A of title XVIII of the Social 
                Security Act, but excluding an individual who is 
                eligible to enroll under such part under section 1818 of 
                such Act or 1818A of such Act (42 U.S.C. 1395i-2, 1395i-
                2a); or
                    ``(ii) a member of family (as defined in section 
                8901(5) of title 5, United States Code) of a Postal 
                Service annuitant and is entitled to benefits under part 
                A of title XVIII of the Social Security Act, but 
                excluding an individual who is eligible to enroll under 
                such part under section 1818 of such Act or 1818A of 
                such Act (42 U.S.C. 1395i-2, 1395i-2a); and
            ``(B) <<NOTE: Time period.>>  is not enrolled under this 
        part, the individual may elect to be enrolled under this part 
        during a special enrollment period during the 6-month period 
        beginning on April 1, 2024.

    ``(2) <<NOTE: Definition.>>  In this subsection, the term `Postal 
Service annuitant' means an annuitant enrolled in a health benefits plan 
under chapter 89 of title 5, United States Code, whose Government 
contribution is required to be paid under section 8906(g)(2) of such 
title.''.
            (2) Technical and conforming amendments.--
                    (A) Part a enrollment.--Section 1818(c) of the 
                Social Security Act (42 U.S.C. 1395i-2(c)) is amended, 
                in the matter preceding paragraph (1), by striking 
                ``(except subsection (f) thereof)'' and inserting 
                ``(except subsections (f) and (o) thereof)''.
                    (B) Coverage period under part b.--Section 1838 of 
                the Social Security Act (42 U.S.C. 1395q) is amended by 
                adding at the end the following:

    ``(i) <<NOTE: Effective date.>>  Notwithstanding subsection (a), in 
the case of an individual who enrolls during the special enrollment 
period pursuant to section 1837(o), the coverage period shall begin on 
January 1, 2025.''.
            (3) Treatment of part b late enrollment penalty for 
        individuals enrolling during special enrollment period.--Section 
        1839(e) of the Social Security Act (42 U.S.C. 1395r(e)) is 
        amended--
                    (A) in paragraph (1), by striking ``(as defined in 
                paragraph (3)(A))'' and by inserting ``(as defined in 
                paragraph (3)(A)(i)). <<NOTE: Contracts.>>  The 
                Secretary shall enter into an agreement with the United 
                States Postal Service under which the United

[[Page 136 STAT. 1137]]

                States Postal Service agrees to pay on a quarterly or 
                other periodic basis to the Secretary (to be deposited 
                in the Treasury to the credit of the Federal 
                Supplementary Medical Insurance Trust Fund) an amount 
                equal to the amount of the part B late enrollment 
                premium increases with respect to the premiums for 
                eligible individuals (as defined in paragraph 
                (3)(A)(ii)).''; and
                    (B) by amending paragraph (3)(A) to read as follows:
                    ``(A) <<NOTE: Definition.>>  The term `eligible 
                individual' means an individual who is enrolled under 
                this part B and who--
                          ``(i) in the case of an agreement entered into 
                      under the first sentence of paragraph (1), is 
                      within a class of individuals specified in such 
                      agreement; and
                          ``(ii) in the case of an agreement entered 
                      into under the second sentence of paragraph (1), 
                      is so enrolled under this part pursuant to the 
                      special enrollment period under section 1837(o)''.
            (4) Part d egwp contracting conforming amendment.--
        Section <<NOTE: Applicability.>>  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, as required under subsection (h)(2) of 
        such section, through employment-based retiree health coverage 
        through--
            ``(1) a prescription drug plan; or
            ``(2) contracts between such a Program plan and the PDP 
        sponsor of such a prescription drug plan.''.

    (c) <<NOTE: 5 USC 8903c note.>>  Information Sharing and 
Dissemination Required for Special Enrollment Period and Enforcement of 
Part B Enrollment Requirements.--
            (1) Definitions.--In this subsection, the terms ``Medicare 
        part A'', ``Medicare part B'', ``Office'', ``Postal Service'', 
        and ``Postal Service annuitant'' have the meanings given those 
        terms in section 8903c of title 5, United States Code, as added 
        by subsection (a).
            (2) <<NOTE: Regulations.>>  Information sharing by opm.--The 
        Office shall, by regulation, establish a process for providing 
        such information as is necessary to the Social Security 
        Administration regarding Postal Service annuitants (and the 
        family members of such annuitants) who may be eligible to enroll 
        under Medicare part B during the special enrollment period 
        described in subsection (o) of section 1837 of the Social 
        Security Act (42 U.S.C. 1395p), as added by subsection (b), or 
        who may be subject to the enrollment requirements described in 
        paragraphs (1) and (2) of section 8903c(e) of title 5, United 
        States Code, as added by subsection (a).
            (3) <<NOTE: Determination.>>  Information sharing by ssa.--
        The Social Security Administration shall provide to the Office 
        and the Postal Service information regarding whether a Postal 
        Service annuitant, or a family member of such an annuitant, is 
        entitled to benefits under Medicare part A and enrolled under 
        Medicare part B, to assist the Office and the Postal Service in 
        determining--
                    (A) which Postal Service annuitants, and family 
                members of such annuitants, may be eligible to enroll 
                under

[[Page 136 STAT. 1138]]

                Medicare part B during the special enrollment period 
                described in paragraph (2); and
                    (B) whether Postal Service annuitants, and family 
                members of such annuitants, satisfy the enrollment 
                requirements described in paragraphs (1) and (2) of 
                section 8903c(e) of title 5, United States Code, as 
                added by subsection (a).

    (d) Funding.--
            (1) CMS appropriation.--In addition to amounts otherwise 
        available, there is appropriated to the Centers for Medicare & 
        Medicaid Services--Program Management Account, for fiscal year 
        2022, out of any money in the Treasury not otherwise 
        appropriated, $7,500,000, to remain available until expended, 
        for the purposes of carrying out this section, including the 
        amendments made by this section.
            (2) SSA appropriation.--In addition to amounts otherwise 
        available, there is appropriated to the Social Security 
        Administration for fiscal year 2022, out of any money in the 
        Treasury not otherwise appropriated, $16,000,000, to remain 
        available until expended, for the purposes of carrying out this 
        section (with the exception of the purposes set forth in 
        subsection (c)(3)(B)), including the amendments made by this 
        section.
            (3) OPM appropriation.--In addition to amounts otherwise 
        available, there is appropriated to the Office of Personnel 
        Management for fiscal year 2022, out of any money in the 
        Treasury not otherwise appropriated, $70,500,000, to remain 
        available until expended, for the purposes of carrying out this 
        section, including the amendments made by this section.
            (4) <<NOTE: Time period.>>  Funds credited by postal 
        service.--The United States Postal Service shall deposit an 
        amount equal to the sum of the amounts appropriated under 
        paragraphs (1), (2), and (3) into the Treasury as a 
        miscellaneous receipt from the Postal Service Fund in fiscal 
        year 2022.
            (5) <<NOTE: 5 USC 8903c note.>>  Reimbursement for periodic 
        ssa data sharing.--
                    (A) <<NOTE: Contracts.>>  Inter-agency agreement.--
                The Commissioner of Social Security shall enter into an 
                agreement with the Director of the Office under which 
                the Director pays the Commissioner from the Postal 
                Service administrative reserve the full costs (including 
                systems and administrative costs) of providing the 
                information described in subsection (c)(3) for the 
                purpose set forth in subsection (c)(3)(B).
                    (B) Report to congress.--The Director of the 
                Office--
                          (i) shall report the amount paid under 
                      subparagraph (A) annually to the Committee on 
                      Homeland Security and Governmental Affairs of the 
                      Senate and the Committee on Oversight and Reform 
                      of the House of Representatives; and
                          (ii) may satisfy the requirement under clause 
                      (i) by including the amount paid under 
                      subparagraph (A) in any other annual report 
                      submitted to Congress.
SEC. 102. <<NOTE: USPS Fairness Act.>>  USPS FAIRNESS ACT.

    (a) <<NOTE: 5 USC 101 note.>>  Short Title.--This section may be 
cited as the ``USPS Fairness Act''.

    (b) Rational Benefits Funding and Accounting.--

[[Page 136 STAT. 1139]]

            (1) In general.--Section 8909a of title 5, United States 
        Code, is amended by striking subsection (d) and inserting the 
        following:

    ``(d)(1) <<NOTE: Deadlines.>>  Not later than June 30, 2026, and by 
June 30 of each succeeding year, the Office shall compute, for the most 
recently concluded fiscal year, the amount (if any) that Government 
contributions required to be paid from the Fund under section 
8906(g)(2)(A) exceeded the estimated net claims costs under the 
enrollment of the individuals described in section 8906(g)(2)(A).

    ``(2) <<NOTE: Payment.>>  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 amount (if any) of the 
excess computed under such paragraph.

    ``(e) Any computation required under section 3654(b) of title 39 
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)(i) or (ii); 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) <<NOTE: Determination.>>  any other methods and 
        assumptions, including a health care cost trend rate, that the 
        Director of the Office determines to be appropriate.

    ``(f) <<NOTE: Consultation. Regulations.>>  After consultation with 
the United States Postal Service, the Office shall promulgate any 
regulations the Office determines necessary under this subsection.

    ``(g) <<NOTE: Definition.>>  For purposes of this section, the term 
`estimated net claims costs' shall mean the difference between--
            ``(1) the sum of--
                    ``(A) the estimated 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) <<NOTE: 5 USC 8909a note.>>  Application.--

[[Page 136 STAT. 1140]]

            (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. <<NOTE: 39 USC 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 <<NOTE: 39 USC 2901 prec.>>  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-- <<NOTE: 39 USC 3701 prec.>> 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. <<NOTE: 39 USC 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.
``Sec. 3702. <<NOTE: 39 USC 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 `costs attributable' has the meaning given 
        such term in section 3631;
            ``(3) the term `year' means a fiscal year;
            ``(4) 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;

[[Page 136 STAT. 1141]]

            ``(5) 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;
            ``(6) 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
            ``(7) 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.
``Sec. 3703. <<NOTE: 39 USC 3703.>>  Postal Service program for 
                  State governments

    ``(a) <<NOTE: Contracts.>>  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 or nonpostal 
services to the public on behalf of such agencies for non-commercial 
purposes, but only if--
            ``(1) such property or nonpostal services--
                    ``(A) 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;
                    ``(B) do not interfere with or detract from the 
                value of postal services, including by--
                          ``(i) harming the cost and efficiency of 
                      postal services; and
                          ``(ii) unreasonably restricting access to 
                      postal retail service, such as customer waiting 
                      time and access to parking; and
            ``(2) <<NOTE: Review.>>  such agreements provide a net 
        contribution to the Postal Service, defined as reimbursement 
        that covers at least 100 percent of the costs attributable to 
        all property and nonpostal services provided under each relevant 
        agreement in each year, except that agreements determined to be 
        substantially similar by the Postal Service with the concurrence 
        of the Postal Regulatory Commission shall be reviewed based on 
        their collective revenue and costs attributable.

    ``(b) <<NOTE: Deadline. Web posting.>>  Public Notice.--Not more 
than 90 days after 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) <<NOTE: Business plan.>>  a business plan that 
        describes the specific property or nonpostal service to be 
        provided, the enhanced value to the public, and terms of 
        reimbursement to the Postal Service.

    ``(c) <<NOTE: Public information. Web posting.>>  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 Governors then in office voting 
for approval.

[[Page 136 STAT. 1142]]

    ``(d) Confidential Information.--Subsection (b) 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. <<NOTE: 39 USC 3704.>>  Postal Service program for 
                  other Government agencies

    ``The Postal Service may establish a program to provide property and 
nonpostal services to other Government agencies within the meaning of 
section 411, but only if such program provides a net contribution to the 
Postal Service, defined as reimbursement that covers at least 100 
percent of the costs attributable for property and nonpostal services 
provided by the Postal Service in each year to such agencies.
``Sec. 3705. <<NOTE: 39 USC 3705.>>  Transparency and 
                  accountability for nonpostal services

    ``(a) Annual Report to the Commission.--
            ``(1) <<NOTE: Analysis.>>  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 or substantially similar set of agreements for the 
        provision of property or nonpostal services under section 3703 
        or the program as a whole under section 3704, and any other 
        nonpostal service authorized 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) <<NOTE: Regulation.>>  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) <<NOTE: Data.>>  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, products, or services under this chapter has 
                become significantly inaccurate or can be significantly 
                improved;

[[Page 136 STAT. 1143]]

                    ``(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) <<NOTE: Reports.>>  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) <<NOTE: Determination. Notification.>>  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) <<NOTE: Deadlines.>>  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) <<NOTE: Appointment.>>  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 activities carried out 
        pursuant to this chapter 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 costs attributable 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 costs attributable 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

[[Page 136 STAT. 1144]]

        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.
    ``(g) Experimental Product Authority.--The Postal Service may 
conduct market tests of agreements pursuant to section 3703 and section 
3704 of this chapter subject to the same terms and conditions described 
in section 3641 of this title. For the purposes of a market test, the 
cost coverage requirements in sections 3703 and 3704 of this chapter 
shall not apply.''.
            (2) Clerical amendment.--The table of chapters for part IV 
        of title 39, United States Code, <<NOTE: 39 USC 3001 prec.>>  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 in paragraph (2), by inserting after 
        ``subsection'' the following: ``, or any nonpostal products or 
        services 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) <<NOTE: 39 USC 404 note.>>  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 section 3705, subsections (a) through (d).

              TITLE II--POSTAL SERVICE OPERATIONAL REFORMS

SEC. 201. PERFORMANCE TARGETS AND TRANSPARENCY.

    (a) In General.--Subchapter VII of chapter 36 of title 39, United 
States Code, is amended by inserting after section 3691 the following:
``Sec. 3692. <<NOTE: 39 USC 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) <<NOTE: Deadline.>>  not later than 60 days after the 
        beginning of the fiscal year in which they will apply, establish 
        and provide

[[Page 136 STAT. 1145]]

        to the Postal Regulatory Commission reasonable targets for 
        performance for each product; and
            ``(2) provide the previous fiscal year's performance targets 
        in its Annual Compliance Report to the Postal Regulatory 
        Commission for evaluation of compliance for each product.

    ``(b) Postal Regulatory Commission Determination of Certain 
Performance Information.-- <<NOTE: Deadline.>> Not later than 90 days 
after first receiving the performance targets under subsection (a)(1), 
the Postal Regulatory Commission shall provide to the Postal Service--
            ``(1) <<NOTE: Requirements. Publication.>>  requirements for 
        the Postal Service to publish nationwide, regional, and local 
        delivery area performance information in accordance with 
        subsection (c)(2) that--
                    ``(A) are consistent with the organizational 
                structure of the delivery network of the Postal Service 
                (including at the District and Area organizational 
                levels, or the functional equivalents, and, to the 
                extent practicable, at the U.S. ZIP Code Area level);
                    ``(B) reflect the most granular geographic level of 
                performance information appropriate for the Postal 
                Service to publish; and
                    ``(C) <<NOTE: Time period.>>  includes time period 
                segments for the published geographic levels to satisfy 
                the publishing requirements of subparagraphs (A) and (C) 
                of subsection (c)(2); and
            ``(2) <<NOTE: Recommenda- tions.>>  recommendations for any 
        modifications to the Postal Service's measurement systems 
        necessary to measure and publish the performance information 
        under subsection (c)(2) that the Postal Regulatory Commission 
        deems relevant.

    ``(c) <<NOTE: Website.>>  Public Performance Dashboard.--
            ``(1) In general.--The Postal Service shall develop and 
        maintain a publicly available Website with an interactive web-
        tool that provides performance information for market-dominant 
        products that is updated on a weekly basis.
            ``(2) Performance information.--The performance information 
        provided for a market-dominant product on the Website shall 
        include--
                    ``(A) the type of market-dominant product;
                    ``(B) performance information for different 
                geographic areas, consistent with subsection (b);
                    ``(C) performance information for different time 
                periods, including annual, quarterly, monthly, and 
                weekly segments;
                    ``(D) comparisons of performance information for 
                market-dominant products to performance information for 
                previous time periods to facilitate identification of 
                performance trends; and
                    ``(E) the performance targets then in effect, and 
                the performance targets for the previous fiscal year, as 
                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.

[[Page 136 STAT. 1146]]

            ``(5) Format.--The Postal Service shall make the performance 
        information provided on the Website available--
                    ``(A) in a manner that--
                          ``(i) presents the information required 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) under an `open license' which has the meaning 
                given that term in section 3502 of title 44; and
                    ``(C) as an `open Government data asset' and in a 
                `machine-readable' format which have the meaning given 
                those terms in section 3502 of title 44.
            ``(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 each 
                feature of, and the information on, the Website is 
                usable and understandable.
            ``(8) <<NOTE: Public information.>>  Deadline.--The Postal 
        Service shall implement and make available to the public (and 
        make any subsequent changes in accordance with subsection (b)) 
        the Website not later than 60 days from the date on which the 
        Postal Service receives the requirements and recommendations 
        from the Postal Regulatory Commission under subsection (b), and 
        shall continuously update such information on the Website as 
        required by subsection (b).
            ``(9) Availability.--A link and plain language description 
        of the Website shall be made available on any webpage where 
        performance targets and measurements established under 
        subsection (a)(1) are made available to the public.
            ``(10) Reporting.--The Postal Service, the Postmaster 
        General, or the Board, as applicable, shall reference the 
        dashboard described in paragraph (5)(A)(i) 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).''.

    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 36 of title 39, United States Code, <<NOTE: 39 USC 3621 prec.>>  
is amended by inserting after the item relating to section 3691 the 
following:

``3692. Performance targets and transparency.''.

SEC. 202. INTEGRATED DELIVERY NETWORK.

    (a) In General.--Section 101(b) of title 39, United States Code, is 
amended by inserting before ``The Postal Service'' the following:

[[Page 136 STAT. 1147]]

``The Postal Service shall maintain an integrated network for the 
delivery of market-dominant and competitive products (as defined in 
chapter 36 of this title). Delivery shall occur at least six days a 
week, except during weeks that include a Federal holiday, in emergency 
situations, such as natural disasters, or in geographic areas where the 
Postal Service has established a policy of delivering mail fewer than 
six days a week as of the date of enactment of the Postal Service Reform 
Act of 2022.''.
    (b) <<NOTE: 39 USC 101 note.>>  Rule of Construction.--Nothing in 
subsection (a) or the amendment made by such subsection is intended to 
alter or amend the requirements of chapters 20 or 36 of title 39, United 
States Code, and related implementing regulations, including provisions 
relating to costing, accounting, or rates.
SEC. 203. <<NOTE: Deadline. Determination. 39 USC 3633 note.>>  
                        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 <<NOTE: Notice. Public comment.>>  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) <<NOTE: Deadlines. Budget.>>  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. <<NOTE: Approval date.>>  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.

[[Page 136 STAT. 1148]]

    ``(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. <<NOTE: 39 USC 501 note.>>  FLATS OPERATIONS STUDY AND 
                        REFORM.

    (a) <<NOTE: Consultation.>>  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 one year 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) <<NOTE: Deadline.>>  In general.--Not later than six 
        months after the date on which the Postal Regulatory Commission 
        submits the report described in subsection (a)(3), the Postal 
        Service shall--
                    (A) <<NOTE: Plan.>>  develop and implement a plan to 
                remedy each inefficiency identified in the study 
                conducted under subsection (a)(1) to the extent 
                practicable; and
                    (B) <<NOTE: Determination.>>  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

[[Page 136 STAT. 1149]]

                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) <<NOTE: Public comment.>>  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) <<NOTE: Time period. Effective date.>>  Subsequent Rate 
Adjustments.--During the five-year period beginning on the date on which 
the Postal Regulatory Commission submits a report under subsection 
(a)(3), the Postal Service, when making any adjustment to the rate of a 
market-dominant product (as defined in section 102 of title 39, United 
States Code), shall consider the findings of such report and, after the 
plan described in subsection (b)(1) is implemented, the plan's efficacy 
in remedying the inefficiencies identified in the study conducted under 
subsection (a)(1).
SEC. 207. REPORTING REQUIREMENTS.

    (a) <<NOTE: Time periods.>>  In General.--Not later than 240 days 
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 60 days before the date on which the Postmaster General submits 
such report.

    (b) <<NOTE: Updates. Assessments.>>  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;
            (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;
            (4) the status of the USPS Connect program and revenue 
        effects of the program on the financial projections;
            (5) the use of Priority Mail, Priority Mail Express, First-
        Class Package Service, and Parcel Select services (as such terms 
        are defined in the Mail Classification Schedule as in effect on 
        the date of the enactment of this Act) among customers and 
        associated revenue effects;

[[Page 136 STAT. 1150]]

            (6) the use of USPS Connect Returns service among customers, 
        and associated costs and revenue effects;
            (7) the use of USPS E-Commerce Marketplace among customers, 
        and associated costs and revenue effects;
            (8) <<NOTE: Updates.>>  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 market-dominant 
        products and competitive products;
            (9) <<NOTE: Review.>>  a review of efforts to enhance 
        employee training, safety, and wellbeing, including associated 
        effects on employee recruitment, satisfaction, and retention;
            (10) <<NOTE: Review.>>  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) <<NOTE: Review.>>  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) <<NOTE: Review.>>  a review of the ability of the 
        Postal Service to meet performance targets established under 
        section 3692(a)(1) of title 39, United States Code;
            (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) <<NOTE: Determination.>>  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).

[[Page 136 STAT. 1151]]

            (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 section 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.) <<NOTE: 5 USC app. 8G.>>  is amended--
            (1) in subsection (a)(2), by striking ``the Postal 
        Regulatory Commission,''; and
            (2) in subsection (f)--
                    (A) in paragraph (2)--
                          (i) by striking ``(2) In carrying'' and 
                      inserting ``(2)(A) In carrying''; and
                          (ii) 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 equal 
        responsibility over the United States Postal Service and the 
        Postal Regulatory Commission. <<NOTE: Compliance.>>  The 
        Commission shall comply with the Inspector General's oversight 
        as if the Commission were a designated Federal entity under 
        subsection (a)(2) and as if the Inspector General were the 
        inspector general of the Commission. The Governors of the Postal 
        Service shall not direct oversight activities for the Postal 
        Regulatory Commission.'';
                    (B) in paragraph (3)(A)(i), by inserting 
                ``pertaining to the United States Postal Service'' after 
                ``subpoenas,'';
                    (C) in paragraph (3)(B)(i), by inserting ``and the 
                Postal Regulatory Commission'' after ``United States 
                Postal Service'';
                    (D) in paragraph (3)(C), by inserting ``or the 
                Postal Regulatory Commission'' after ``Governors'';
                    (E) by redesignating paragraphs (4), (5), and (6) as 
                paragraphs (5), (6), and (7), respectively; and
                    (F) by inserting after paragraph (3) the following:
            ``(4) <<NOTE: Applicability.>>  For activities pertaining to 
        the Postal Regulatory Commission, sections 4, 5, 6 (other than 
        subsection (g) thereof), and 7 of this Act shall be applied by 
        substituting the term `head of the Postal Regulatory Commission' 
        for `head of the establishment'.''.

[[Page 136 STAT. 1152]]

    (b) Appointment and Removal.--Section 202 of title 39, United States 
Code, is amended--
            (1) in subsection (e)(1), by striking ``The Governors shall 
        appoint'' and inserting ``The Governors and the members of the 
        Postal Regulatory Commission shall appoint, by a favorable vote 
        of a majority of the Governors in office and of a majority of 
        the members of the Commission in office,''; and
            (2) in subsection (e)(3), by inserting ``and 3 members of 
        the Postal Regulatory Commission'' after ``at least 7 
        Governors''.

    (c) <<NOTE: 5 USC app. 8G note.>>  Savings Provision.--
            (1) Personnel, documents, assets.--All personnel, documents, 
        assets, unexpended balances of appropriations, and obligations 
        of the Inspector General for the Postal Regulatory Commission 
        shall transfer to the Inspector General of the Postal Service on 
        the effective date of this section.
            (2) 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 by the Inspector General 
        of the Postal Regulatory Commission 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.
            (3) Proceedings.--This section and the amendments made by 
        this section shall not affect any proceeding pending on the 
        effective date of this section before the Inspector General of 
        the Postal Regulatory Commission, but such proceeding shall be 
        continued by the Inspector General of the Postal Service, at the 
        discretion of that Inspector General. Nothing in this paragraph 
        shall be construed to prohibit the discontinuance or 
        modification of any such proceeding under the same terms and 
        conditions and to the same extent that the proceeding could have 
        been discontinued or modified if this section and those 
        amendments had not been enacted.
            (4) 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.
            (5) 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.

    (d) Technical and Conforming Amendment.--Section 504 of title 39, 
United States Code, is amended by striking subsection (h).
    (e) <<NOTE: 5 USC app. 8G note.>>  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.

[[Page 136 STAT. 1153]]

                         TITLE III--SEVERABILITY

SEC. 301. <<NOTE: 39 USC 101 note.>>  SEVERABILITY.

    If any provision of this Act or any amendment made by this Act, or 
the application of a provision of this Act or an amendment made by this 
Act to any person or circumstance, is held to be unconstitutional, the 
remainder of this Act, and the application of the provisions to any 
person or circumstance, shall not be affected by the holding.

    Approved April 6, 2022.

LEGISLATIVE HISTORY--H.R. 3076:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 117-89, Pts. 1 and 2 (both from Comm. on Oversight 
and Reform).
CONGRESSIONAL RECORD, Vol. 168 (2022):
            Feb. 8, considered and passed House.
            Mar. 1-3, 7, 8, considered and passed Senate.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2022):
            Apr. 6, Presidential remarks.

                                  <all>