[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2748 Reported in House (RH)]
Union Calendar No. 564
113th CONGRESS
2d Session
H. R. 2748
[Report No. 113-733, Part I]
To restore the financial solvency of the United States Postal Service
and to ensure the efficient and affordable nationwide delivery of mail.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 19, 2013
Mr. Issa (for himself, Mr. Farenthold, and Mr. Ross) introduced the
following bill; which was referred to the Committee on Oversight and
Government Reform
January 2, 2015
Reported with amendments and referred to the Committee on Education and
the Workforce for a period ending not later than January 2, 2015, for
consideration of such provisions of the bill and amendment as fall
within the jurisdiction of that committee pursuant to clause 1(e) of
rule X
[Omit the part struck through and insert the part printed in italic]
January 2, 2015
The Committee on Education and the Workforce discharged; committed to
the Committee of the Whole House on the State of the Union and ordered
to be printed
_______________________________________________________________________
A BILL
To restore the financial solvency of the United States Postal Service
and to ensure the efficient and affordable nationwide delivery of mail.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS; REFERENCES.
(a) Short Title.--This Act may be cited as the ``Postal Reform Act
of 2013''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents; references.
Sec. 2. Definitions.
TITLE I--POSTAL SERVICE MODERNIZATION
Sec. 101. Nationwide mail delivery schedule.
Sec. 102. Delivery-point modernization.
Sec. 103. Efficient and flexible universal postal service.
Sec. 104. Applicability of procedures relating to closures and
consolidations.
Sec. 105. Enhanced reporting on Postal Service efficiency.
Sec. 106. Area and district office structure.
TITLE II--POSTAL SERVICE GOVERNANCE
Subtitle A--Temporary Governance Authority
Sec. 201. Purposes.
Sec. 202. Establishment of the Postal Service Financial Responsibility
and Management Assistance Authority.
Sec. 203. Membership and qualification requirements.
Sec. 204. Organization and staff.
Sec. 205. Funding.
Sec. 206. Responsibilities and powers.
Sec. 207. Development of financial plan and budget for the solvency of
the Postal Service.
Sec. 208. Process for submission and approval of financial plan and
budget.
Sec. 209. Dissolution of the Authority; reconstitution of the Board of
Governors.
Subtitle B--Other Matters
Sec. 211. Appointment of the Postal Service Inspector General.
Sec. 212. Membership of the Board of Governors.
TITLE III--POSTAL SERVICE WORKFORCE
Sec. 301. Applicability of reduction-in-force procedures.
Sec. 302. Postal Service FEHBP and FEGLI funding requirements.
Sec. 303. Repeal of provision relating to overall value of fringe
benefits.
Sec. 304. Modifications relating to determination of pay comparability.
Sec. 305. Last-best-final-offer negotiations.
Sec. 306. Postal Service workers' compensation reform.
Sec. 307. Reporting requirement.
TITLE IV--POSTAL SERVICE REVENUE
Sec. 401. Adequacy, efficiency, and fairness of postal rates.
Sec. 402. Repeal of rate preferences for qualified political
committees.
Sec. 403. Use of negotiated service agreements.
Sec. 404. Nonpostal services.
Sec. 405. Alaska bypass mail modernization.
Sec. 406. Appropriations modernization.
Sec. 407. Enhanced product innovation.
TITLE V--POSTAL SERVICE FINANCE
Sec. 501. Treatment of Postal Service postemployment benefit funding
projected surpluses.
Sec. 502. Retiree health benefit liability payment schedule.
Sec. 503. Supplementary borrowing authority during a control period.
Sec. 504. Postal Service Delivery-Point Modernization Fund.
Sec. 505. Specific retirement liability calculations relating to the
Postal Service.
TITLE VI--POSTAL CONTRACTING REFORM
Sec. 601. Contracting provisions.
Sec. 602. Technical amendment to definition.
Sec. 603. Contract limitation.
TITLE VII--OTHER PROVISIONS
Sec. 701. Postal facility designations.
Sec. 702. Response to submissions by the Postal Service.
Sec. 703. Fair stamp-evidencing competition.
Sec. 704. USPS innovation officer and accountability.
Sec. 705. Postal regulatory commission travel reporting.
(c) References.--Except as otherwise expressly provided, whenever
in this Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provision of title
39, United States Code.
SEC. 2. DEFINITIONS.
For the purposes of this Act--
(1) the term ``Postal Service'' means the United States
Postal Service;
(2) the term ``postal retail facility'' means a post
office, post office branch, post office classified station, or
other facility which is operated by the Postal Service, and the
primary function of which is to provide retail postal services,
but does not include a contractor-operated facility offering
postal services;
(3) the term ``district office'' means the central office
of an administrative field unit with responsibility for postal
operations in a designated geographic area (as defined under
regulations, directives, or other guidance of the Postal
Service, as in effect on January 1, 2013); and
(4) the term ``area office'' means the central office of an
administrative field unit with responsibility for postal
operations in a designated geographic area which is comprised
of designated geographic areas as referred to in paragraph (3).
TITLE I--POSTAL SERVICE MODERNIZATION
SEC. 101. NATIONWIDE MAIL DELIVERY SCHEDULE.
(a) In General.--Section 404 is amended by inserting after
subsection (e) the following:
``(f)(1) The Postal Service may establish a general, nationwide
mail delivery schedule of 5 days per week.
``(2) The Postal Service shall ensure that under any schedule
established under paragraph (1), there shall not occur more than 2
consecutive days on which mail is not delivered, including as a result
of Federal holidays.
``(3) For a period not to end before December 31, 2018, the Postal
Service shall provide domestic competitive product service 6 days per
week to each street address that was scheduled to receive package
service 6 days per week as of September 30, 2012.
``(4) Nothing in this section shall be construed to authorize a
reduction, or to require an increase, in frequency of mail delivery for
any address for which the Postal Service provided delivery on fewer
than 6 days per week as of January 1, 2013.''.
(b) Mailbox Access.--If the Postal Service establishes a general,
nationwide mail delivery schedule of 5 days per week, consistent with
the provisions of section 404 of title 39, United States Code, as
amended by subsection (a), the Postal Service shall amend the Mailing
Standards of the United States Postal Service (as set forth in the
Domestic Mail Manual) to ensure that the provisions of section
508.3.2.10 of such Manual, as in effect on September 30, 2012, shall
apply on any day on which the Postal Service does not deliver mail
under the established delivery schedule.
SEC. 102. DELIVERY-POINT MODERNIZATION.
(a) In General.--Subchapter VII of chapter 36 is amended by adding
at the end the following:
``Sec. 3692. Delivery-point modernization
``(a) Definitions.--For the purposes of this section--
``(1) the term `delivery point' means a mailbox or other
receptacle to which mail is delivered;
``(2) the term `primary mode of mail delivery' means the
typical method by which the Postal Service delivers letter mail
to the delivery point of a postal patron;
``(3) the term `door delivery' means a primary mode of mail
delivery whereby mail is placed into a slot or receptacle at or
near the postal patron's door or is hand delivered to a postal
patron, but does not include curbside or centralized delivery;
``(4) the term `centralized delivery' means a primary mode
of mail delivery whereby mail receptacles of a number of
delivery points are grouped or clustered at a single location;
and
``(5) the term `curbside delivery' means a primary mode of
mail delivery whereby a mail receptacle is situated at the edge
of a sidewalk abutting a road or curb, at a road, or at a curb.
``(b) Policy.--It shall be the policy of the Postal Service to use
the most cost-effective primary mode of mail delivery feasible for
postal patrons.
``(c) Phaseout of Door Delivery.--
``(1) New addresses.--Subject to paragraph (4), the Postal
Service shall implement a program, wherever feasible, to
provide a primary mode of mail delivery other than door
delivery to new addresses established after the date of
enactment of this section.
``(2) Business address conversion.--Subject to paragraph
(4), the Postal Service shall implement a program to convert
existing business addresses with door delivery to centralized
delivery to the maximum extent feasible. In cases in which
conversion to centralized delivery is impractical, conversion
to curbside delivery shall be implemented to the maximum extent
feasible.
``(3) Residential address conversion.--
``(A) Identification.--Within one year after the
date of enactment of this section, each district office
shall identify residential addresses within its service
area that are appropriate candidates for conversion
from door delivery to curbside or centralized delivery,
in accordance with standards established by the Postal
Service.
``(B) Voluntary conversion.--Subject to paragraph
(4), the Postal Service shall seek to voluntarily
convert the delivery points identified under
subparagraph (A) from door delivery to more cost-
effective primary modes of mail delivery.
``(C) Procedures.--In carrying out conversions
under subparagraph (B), the Postal Service shall
establish procedures to--
``(i) solicit, consider, and respond to
input from postal patrons, State and local
governments, local associations, and property
owners; and
``(ii) place centralized delivery points in
locations that maximize delivery efficiency,
ease of use for postal patrons, and respect for
private property rights.
``(4) Considerations.--In making any determination to
convert the primary mode of mail delivery for an existing
address from door delivery to any other primary mode of mail
delivery, or to provide a primary mode of mail delivery to a
new address, the Postal Service may shall consider--
``(A) the impact of weather conditions, physical
barriers, or any other factor that may impact the
feasibility of providing a primary mode of mail
delivery other than door delivery (such as a factor
that may significantly reduce the potential cost
savings associated with providing centralized or
curbside delivery);
``(B) whether the address is in a registered
historic district (as that term is defined in section
47(c)(3)(B) of the Internal Revenue Code of 1986) is
listed on the National Register of Historic Places, is
designated as a National Historic Landmark, or is of
historic value; and
``(C) population density and the concentration of
poverty.
``(5) Waiver for physical hardship.--The Postal Service
shall establish and maintain a waiver program under which, upon
application, door delivery may be continued, or provided, at no
cost to the applicant in any case in which--
``(A) centralized or curbside delivery would, but
for this paragraph, otherwise be the primary mode of
mail delivery; and
``(B) door delivery is necessary in order to avoid
causing significant physical hardship or physical
safety risks to a postal patron.
``(6) Legacy door delivery service.--
``(A) In general.--The Postal Service may continue
to provide, for a fee to be paid by the addressee, door
delivery to an address that received door delivery as
of January 1, 2013, but was converted to a different
primary mode of mail delivery as a result of the
requirements of subsection (d).
``(B) Offset.--The fee shall, when taken in the
nationwide aggregate, offset the additional cost to the
Postal Service for door delivery (compared to the cost
of the primary mode of mail delivery which would
otherwise exist for such address) as a result of the
requirements of subsection (d).
``(C) Requirements.--The fee shall be subject to
the requirements of section 3622(d)(1)(B) and the
Postmaster General may by regulation prescribe the
method of the fee's calculation.
``(d) Modernization Requirement.--
``(1) Minimum points to be converted.--Not later than
September 30, 2022, the Postal Service shall convert not less
than 30,000,000 of the door delivery points extant on December
31, 2012, to centralized or curbside delivery.
``(2) Conversion order.--In determining which delivery
points to convert under paragraph (1), postal patrons who
voluntarily agree to convert their delivery point or points
under subsection (c)(3) shall take precedence over any other
conversions to the greatest extent practicable.
``(3) Procedures.--In carrying out conversions under
paragraph (1), the Postal Service shall establish procedures
to--
``(A) solicit, consider, and respond to input from
the general public, postal patrons, State and local
governments, local associations, and property owners
which shall include but not be limited to a minimum of
a public community meeting prior to the commencement of
the conversion of a community, prior to the completion
of the conversion of a community and at any point in
the process when the District Manager makes a change to
the delivery method or the location of centralized
delivery points;
``(B) calculate and make publicly accessible the
cost or savings of the conversion to the Postal Service
as well as the average conversion cost or savings to
each postal patron and any cost or savings to the State
and local government; and
``(C) place centralized delivery points in
locations that maximize delivery efficiency, ease of
use for postal patrons, and respect for private
property rights.
``(3)(4) Funding and repayment.--Until September 30, 2022,
the Postal Service may withdraw funds from the Postal Service
Delivery-Point Modernization Fund to carry out the purposes of
this section. All savings accrued by the Postal Service from
conversions under this subsection shall be repaid to the Fund
on a monthly basis until all funds have been repaid. All funds
withdrawn under this paragraph must be repaid not later than
September 30, 2023.
``(4)(5) Voucher program.--The Postal Service shall, in
accordance with such standards and procedures as the Postal
Service shall by regulation prescribe, provide for a voucher
program, funded through the Postal Service Delivery Point
Modernization Fund, under which, upon application, the Postal
Service may defray all or any portion of the costs associated
with conversion from door delivery under this section which
would otherwise be borne by postal patrons.
``(5)(6) Treatment of exemption.--Addresses receiving door
delivery or legacy door delivery as a result of paragraph (5)
or (6) of subsection (c)--
``(A) shall be counted as addresses that receive
the primary mode of mail delivery which the address
would be subject to if not for the applicable
exemption; and
``(B) shall, within 30 days after ceasing to meet
the requirements of such paragraph (5) or (6), as
applicable, be converted to the primary mode of mail
delivery which was otherwise applicable.
``(6)(7) Annual reports.--Not later than 60 days after the
end of each of fiscal years 2013 through 2023, the Postal
Service shall submit to Congress and the Inspector General of
the Postal Service a report on the implementation of this
section during the most recently completed fiscal year. Each
such report shall include--
``(A) the number of residential and business
addresses that--
``(i) receive door delivery as of the end
of the fiscal year preceding the most recently
completed fiscal year;
``(ii) receive door delivery as of the end
of the most recently completed fiscal year; and
``(iii) during the most recently completed
fiscal year, were converted from door delivery
to--
``(I) centralized delivery points;
``(II) curbside delivery points;
and
``(III) any other primary mode of
mail delivery, respectively;
``(B) the estimated cost savings from the
conversions described in subparagraph (A)(iii);
``(C) a description of the progress made by the
Postal Service toward meeting the requirements of
subsection (c) and paragraph (1) of this subsection;
and
``(D) any other information which the Postal
Service considers appropriate.
``(8) Inspector general audit.--The Inspector General of
the Postal Service shall issue an annual audit report on the
implementation of the conversion requirement from paragraph (1)
not later than 90 days after date on which the Postal Service
releases its annual report under paragraph (7). At a minimum,
the report under this paragraph shall contain--
``(A) an audit of the data contained in the Postal
Service's report under paragraph (7); and
``(B) an evaluation of the Postal Service's
implementation of the procedural requirements described
in paragraph (3).
``(e) Review.--Subchapters IV and V shall not apply with respect to
any action taken by the Postal Service under this section.''.
(b) Clerical Amendment.--The table of sections for chapter 36 is
amended by adding after the item relating to section 3691 the
following:
``3692. Delivery-point modernization.''.
SEC. 103. EFFICIENT AND FLEXIBLE UNIVERSAL POSTAL SERVICE.
(a) Postal Policy.--
(1) In general.--Section 101(b) is amended to read as
follows:
``(b) The Postal Service shall provide effective and regular postal
services to rural areas, communities, and small towns where post
offices are not self-sustaining.''.
(2) Conforming amendment.--Clause (iii) of section
404(d)(2)(A) is amended to read as follows:
``(iii) whether such closing or consolidation is
consistent with the policy of the Government, as stated
in section 101(b), that the Postal Service shall
provide effective and regular postal services to rural
areas, communities, and small towns where post offices
are not self-sustaining;''.
(b) General Duty.--Paragraph (3) of section 403(b) is amended to
read as follows:
``(3) to ensure that postal patrons throughout the Nation
will, consistent with reasonable economies of postal
operations, have ready access to essential postal services.''.
(c) Conditions.--Clause (i) of section 404(d)(2)(A) is amended to
read as follows:
``(i) the effect of such closing or consolidation
on the community served by such post office, including
through an analysis of such factors as--
``(I) the distance (as measured by public
roads) to the closest postal retail facility
not proposed for closure or consolidation under
such plan;
``(II) the characteristics of such
location, including weather and terrain;
``(III) whether commercial mobile service
(as defined in section 332 of the
Communications Act of 1934) and commercial
mobile data service (as defined in section 6001
of the Middle Class Tax Relief and Job Creation
Act of 2012) are available in at least 80
percent of the total geographic area of the ZIP
codes served by the postal retail facility
proposed for closure or consolidation; and
``(IV) whether fixed broadband Internet
access service is available to households in at
least 80 percent of such geographic area at
speeds not less than those sufficient for
service to be considered broadband for purposes
of the most recent report of the Federal
Communications Commission under section 706 of
the Telecommunications Act of 1996;''.
(d) PRC Review of Determinations To Close or Consolidate a Post
Office.--
(1) Deadline for review.--Section 404(d)(5) is amended by
striking ``120 days'' and inserting ``60 days''.
(2) Exclusion from review.--Section 404(d) is amended by
adding at the end the following:
``(7)(A) The appeals process set forth in paragraph (5) shall not
apply to a determination of the Postal Service to close a post office
if there is located, within 2 miles of such post office, a qualified
contract postal unit.
``(B) For purposes of this paragraph--
``(i) the term `contract postal unit' means a store or
other place of business which--
``(I) is not owned or operated by the Postal
Service; and
``(II) in addition to its usual operations,
provides postal services to the general public under
contract with the Postal Service; and
``(ii) the term `qualified contract postal unit', as used
in connection with a post office, means a contract postal unit
which--
``(I) begins to provide postal services to the
general public during the period--
``(aa) beginning 1 year before the date on
which the closure or consolidation of such post
office is scheduled to take effect; and
``(bb) ending on the 15th day after the
date on which the closure or consolidation of
such post office is scheduled to take effect;
and
``(II) has not, pursuant to subparagraph (A),
served as the basis for exempting any other post office
from the appeals process set forth in paragraph (5).
``(C)(i) If the qualified contract postal unit does not continue to
provide postal services, as required by subparagraph (B)(i)(II), for at
least the 2-year period beginning on the date on which such post office
was closed or, if later, the date on which such unit began providing
postal services to the general public, the contract postal unit shall
be subject to a closure determination by the Postal Service to decide
whether a post office must be reopened within the area (delimited by
the 2-mile radius referred to in subparagraph (A)).
``(ii) A decision under clause (i) not to reopen a post office may
be appealed to the Postal Regulatory Commission under procedures which
the Commission shall by regulation prescribe. Such procedures shall be
based on paragraph (5), except that, for purposes of this clause,
paragraph (5)(C) shall be applied by substituting `in violation of
section 101(b), leaving postal patrons without effective and regular
access to postal services' for `unsupported by substantial evidence on
the record'.''.
(3) Applicability.--The amendments made by this subsection
shall not apply with respect to any appeal, notice of which is
received by the Postal Regulatory Commission before the date of
enactment of this Act (determined applying the rules set forth
in section 404(d)(6) of title 39, United States Code).
(e) Expedited Procedures.--
(1) In general.--Section 3661 is amended by adding at the
end the following:
``(d)(1) The Commission shall issue its opinion within 90 days
after the receipt of any proposal (as referred to in subsection (b))
concerning--
``(A) the closing or consolidation of postal retail
facilities (as that term is defined in section 2(2) of the
Postal Reform Act of 2013) to a degree that will generally
affect service on a nationwide or substantially nationwide
basis; or
``(B) an identical or substantially identical proposal on
which the Commission issued an opinion within the preceding 5
years.
``(2) If necessary in order to comply with the 90-day requirement
under paragraph (1), the Commission may apply expedited procedures
which the Commission shall by regulation prescribe.''.
(2) Regulations.--The Postal Regulatory Commission shall
prescribe any regulations necessary to carry out the amendment
made by paragraph (1) within 90 days after the date of
enactment of this Act.
(3) Applicability.--The amendment made by this subsection
shall apply with respect to any proposal received by the Postal
Regulatory Commission on or after the earlier of--
(A) the 90th day after the date of enactment of
this Act; or
(B) the effective date of the regulations under
paragraph (2).
(f) Rural Post Office Annual Closure Limitation.--Section 404a(a)
is amended--
(1) in paragraph (2), by striking ``or'' at the end;
(2) in paragraph (3), by striking the period and inserting
``; or''; and
(3) by adding at the end the following:
``(4) close, consolidate, or suspend the operations of more
than 5-percent of the number of currently operating postal
retail facilities on January 1, of each year that were within
the K or L cost ascertainment grouping on January 1, 2012,
excluding any postal retail facility scheduled for closure and
ineligible for appeal due to section 404(d)(7)(A) shall not
count toward the 5 percent limitation.''.
(g) Alternate Postal Access Choice.--Section 404(d) is amended by
striking paragraph (1) and inserting the following:
``(d)(1) The Postal Service, prior to making a determination under
subsection (a)(3) as to the necessity for the closing or consolidation
of any post office, shall--
``(A) provide adequate notice of its intention to close or
consolidate such post office at least 60 days prior to the
proposed date of such closing or consolidation to postal
patrons served by such post office;
``(B) conduct a nonbinding survey on the proposed closing
or consolidation to allow postal patrons served by such post
office an opportunity to indicate their preference between or
among--
``(i) the closing or consolidation; and
``(ii) 1 or more alternative options; and
``(C) ensure that--
``(i) should the closure or consolidation of a
postal retail facility be deemed necessary, it shall be
the policy of the Postal Service to provide alternative
access to postal services to those served by the postal
retail facility by the option chosen by the highest
number of survey respondents under subparagraph
(B)(ii); and
``(ii) if the Postal Service is unable to provide
alternative access through the option identified in
clause (i), or if that option is cost prohibitive, the
Postal Service may provide alternative access through a
different means. Upon selection of an alternative
access method other than the one identified by clause
(i), the Postal Service must provide written notice to
those patrons served by the postal retail facility
identifying and explaining why the option identified by
clause (i) was not possible or cost prohibitive.''.
SEC. 104. APPLICABILITY OF PROCEDURES RELATING TO CLOSURES AND
CONSOLIDATIONS.
(a) In General.--Section 404(d) is amended by adding after
paragraph (7) (as added by section 103(d)(2)) the following:
``(8) For purposes of this subsection, the term `post office' means
a post office and any other facility described in section 2(2) of the
Postal Reform Act of 2013.''.
(b) Effective Date.--In the case of any post office (within the
meaning of the amendment made by subsection (a)) which, but for such
amendment, would not otherwise be subject to section 404(d) of title
39, United States Code, the amendment made by subsection (a) shall be
effective with respect to any closure or consolidation, the proposed
effective date of which occurs on or after the 60th day following the
date of enactment of this Act.
SEC. 105. ENHANCED REPORTING ON POSTAL SERVICE EFFICIENCY.
Section 3652(a) is amended--
(1) in paragraph (1), by striking ``and'' after the
semicolon;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding after paragraph (2) the following:
``(3) which shall provide the overall change in Postal
Service productivity and the resulting effect of such change on
overall Postal Service costs during such year, using such
methodologies as the Commission shall by regulation
prescribe.''.
SEC. 106. AREA AND DISTRICT OFFICE STRUCTURE.
(a) In General.--Not later than 120 days after the date of
enactment of this Act, the Postal Service, in consultation with the
Inspector General of the United States Postal Service, shall develop
and begin implementation of a plan for the closure or consolidation of
such area and district offices as the Postal Service considers
necessary and appropriate so that, by October 1, 2015, the combined
total number of area and district offices will be at least 30 percent
less than the corresponding combined total as of September 30, 2012.
(b) Contents.--The plan shall include--
(1) a list of the area and district offices proposed for
closure or consolidation;
(2) a proposed schedule under which closures and
consolidations of area and district offices would be carried
out;
(3) the estimated total annual cost savings attributable to
the proposed closures and consolidations described in the plan;
(4) the criteria and process used to develop the
information described in paragraphs (1) and (2);
(5) the methodology and assumptions used to derive the
estimates described in paragraph (3); and
(6) any changes to the processing, transportation,
delivery, or other postal operations anticipated as a result of
the proposed closures and consolidations described in the plan.
(c) Plan Submission Revision.--Not later than 120 days after the
date of enactment of this Act, the plan shall be submitted to the
Committee on Homeland Security and Governmental Affairs of the Senate
and the Committee on Oversight and Government Reform of the House of
Representatives. Any revision to the plan shall be submitted not later
than 14 days after such revision is adopted by the Postal Service.
TITLE II--POSTAL SERVICE GOVERNANCE
Subtitle A--Temporary Governance Authority
SEC. 201. PURPOSES.
(a) Purposes.--The purposes of this subtitle are as follows:
(1) To eliminate budget deficits and cash shortages of the
Postal Service through strategic financial planning, sound
budgeting, accurate revenue forecasts, and careful spending.
(2) To ensure that universal service, as required by
section 101 of title 39, United States Code, is maintained
during the period of any fiscal emergency.
(3) To conduct necessary investigations and studies to
determine the fiscal status and operational efficiency of the
Postal Service.
(4) To assist the Postal Service in--
(A) restructuring its organization and workforce to
bring expenses in line with diminishing revenue and
generate sufficient profits for capital investments and
repayment of debt;
(B) meeting all fiscal obligations to the Treasury
of the United States; and
(C) ensuring the appropriate and efficient delivery
of postal services.
(5) To ensure the long-term financial, fiscal, and economic
vitality and operational efficiency of the Postal Service.
(b) Reservation of Powers.--Nothing in this subtitle may be
construed--
(1) to relieve any obligation of the Postal Service to the
Treasury of the United States existing as of the date of
enactment of this Act; or
(2) to limit the authority of Congress to exercise
legislative authority over the Postal Service.
SEC. 202. ESTABLISHMENT OF THE POSTAL SERVICE FINANCIAL RESPONSIBILITY
AND MANAGEMENT ASSISTANCE AUTHORITY.
(a) Establishment.--There is established, in accordance with the
provisions of this subtitle, an entity to be known as the ``Postal
Service Financial Responsibility and Management Assistance Authority''
(hereinafter in this subtitle referred to as the ``Authority'').
(b) Operations During the Control Period.--
(1) Control period defined.--For the purposes of this
subtitle, the term ``control period'' means the period that
commences on the date as of which the Authority has at least 4
members and terminates as of the date determined under
paragraph (5).
(2) Transfer of authorities and responsibilities.--
Effective as of the date on which the control period
commences--
(A) subsections (a) and (b) of section 202 are
repealed;
(B) the term of office of each of the 9 Governors
(appointed under the second sentence of section
202(a)(1) of title 39, United States Code, as last in
effect before the date of enactment of this Act) shall
terminate; and
(C) the Authority shall assume its
responsibilities, as set forth in section 206.
(3) Treatment of certain executives.--
(A) Definition.--For the purposes of this section,
the term ``Level-Two Postal Service Executive''
includes the Postmaster General, the Deputy Postmaster
General, and all the other officers and employees of
the Postal Service in level two of the Postal Career
Executive Service (or the equivalent), but does not
include any officer or employee of the Office of
Inspector General of the United States Postal Service.
(B) Treatment.--Notwithstanding any other provision
of law or the provisions of any employment contract,
during the control period--
(i) all Level-Two Postal Service Executives
shall serve at the pleasure of the Authority;
(ii) the duties and responsibilities of all
Level-Two Postal Service Executives, as well as
the terms and conditions of their employment
(including their compensation), shall be
subject to determination or redetermination by
the Authority;
(iii) total compensation of a Level-Two
Postal Service Executive may not, for the first
full fiscal year occurring in such control
period or any subsequent fiscal year commencing
in such control period, exceed the annual rate
of basic pay payable for level I of the
Executive Schedule under section 5312 of title
5, United States Code, for that year; for
purposes of this clause, the term ``total
compensation'' means basic pay, bonuses,
awards, and all other monetary compensation;
(iv) the percentage by which the rate of
basic pay of a Level-Two Postal Service
Executive is increased during any year may not
exceed the percentage change in the Consumer
Price Index for All Urban Consumers, unadjusted
for seasonal variation, for the most recent 12-
month period available, except that, in the
case of a Level-Two Postal Service Executive
who has had a significant change in job
responsibilities, a greater change shall be
allowable if approved by the Authority;
(v) apart from basic pay, a Level-Two
Postal Service Executive may not be afforded
any bonus, award, or other monetary
compensation for any full fiscal year in the
control period if expenditures of the Postal
Service for such fiscal year exceeded revenues
of the Postal Service for such fiscal year
(determined in accordance with generally
accepted accounting principles); and
(vi) no deferred compensation may be paid,
accumulated, or recognized in the case of any
Level-Two Postal Service Executive, with
respect to any full year in the control period,
which is not generally paid, accumulated, or
recognized in the case of employees of the
United States (outside of the Postal Service)
in level I of the Executive Schedule under
section 5312 of title 5, United States Code,
with respect to such year.; and
(vii) in the case of any Level-Two Postal
Service Executive, the expense incurred by the
Postal Service for non-cash awards or honorary
recognitions covered under section 4503 of
title 5, United States Code, may not exceed a
combined total of $200 with respect to any full
year in the control period.
(C) Bonus authority.--Section 3686 of title 39,
United States Code, shall, during the period beginning
on the commencement date of the control period and
ending on the termination date of the control period--
(i) be suspended with respect to all Level-
Two Postal Service Executives; but
(ii) remain in effect for all other
officers and employees of the Postal Service
otherwise covered by this section.
(4) Certification requirement.--The control period may not
terminate until after the Authority, with the concurrence of
the Secretary of the Treasury and the Director of the Office of
Personnel Management, certifies to the Director of the Office
of Management and Budget that--
(A) for 2 consecutive fiscal years (occurring after
the date of enactment of this Act), expenditures of the
Postal Service did not exceed revenues of the Postal
Service (as determined in accordance with generally
accepted accounting principles);
(B) the Authority has approved a Postal Service
financial plan and budget that shows expenditures of
the Postal Service not exceeding revenues of the Postal
Service (as so determined) for the fiscal year to which
such budget pertains and each of the next 3 fiscal
years; and
(C) the Postal Service financial plan and budget
(as referred to in subparagraph (B)) includes plans--
(i) for the repayment of any collateralized
debt authorized by section 503; and
(ii) to properly fund Postal Service
pensions and retiree health benefits in
accordance with applicable provisions of title
5, United States Code.
(5) Termination of control period.--
(A) Termination date.--
(i) General rule.--Except as provided in
clause (ii), the control period shall terminate
180 days after the date on which the
certification described in paragraph (4) is
made.
(ii) Alternative date.--
(I) Authority.--The Director of the
Office of Management and Budget may, by
written notice given to the Authority
within 15 days after the date on which
the certification described in
paragraph (4) is made, provide for an
alternative termination date (in lieu
of the date that would otherwise apply
under clause (i)).
(II) Range.--An alternative date
under this clause shall not apply
unless such date occurs not less than
30 days after the date on which written
notice under subclause (I) is given and
not later than 180 days after the date
on which the certification described in
paragraph (4) is made.
(B) Public notice.--The Authority shall cause to be
published in the Federal Register--
(i) the date on which the certification
described in paragraph (4) is made, not later
than 1 business day after the date on which
such certification is made; and
(ii) the termination date of the control
period, not later than 16 business days after
the date on which the certification described
in paragraph (4) is made.
SEC. 203. MEMBERSHIP AND QUALIFICATION REQUIREMENTS.
(a) Membership.--
(1) In general.--The Authority shall consist of 5 members
appointed by the President who meet the qualifications
described in subsection (b), except that the Authority may take
any action under this subtitle at any time after the President
has appointed the initial 4 of its members. Members of the
Authority shall report to the Secretary of the Treasury.
(2) Recommendations.--Of the 5 members so appointed--
(A) 1 shall be appointed by the President taking
into account any individuals recommended by the Speaker
of the House of Representatives;
(B) 1 shall be appointed by the President taking
into account any individuals recommended by the
majority leader of the Senate;
(C) 1 shall be appointed by the President taking
into account any individuals recommended by the
minority leader of the House of Representatives;
(D) 1 shall be appointed by the President taking
into account any individuals recommended by the
minority leader of the Senate; and
(E) 1 shall be appointed by the President taking
into account any individuals recommended by the
Comptroller General.
(3) Political affiliation.--No more than 3 members of the
Authority may be of the same political party.
(4) Chair.--The President shall designate 1 of the members
of the Authority as the Chair of the Authority.
(5) Sense of congress regarding deadline for appointment.--
It is the sense of Congress that the President should appoint
the members of the Authority as soon as practicable after the
date of enactment of this Act, but no later than 30 days after
such date.
(6) Term of service.--
(A) In general.--Except as provided in subparagraph
(B), each member of the Authority shall be appointed
for a term of 3 years.
(B) Appointment for term following initial term.--
As designated by the President at the time of
appointment for the term immediately following the
initial term, of the members appointed for the term
immediately following the initial term--
(i) 1 member shall be appointed for a term
of 1 year;
(ii) 2 members shall be appointed for a
term of 2 years; and
(iii) 2 members shall be appointed for a
term of 3 years.
(C) Vacancies and succession.--Any member of the
Authority appointed to fill a vacancy before the
expiration of the term for which the predecessor of the
member of the Authority was appointed shall serve for
the remainder of such term.
(D) Removal.--The President may remove any member
of the Authority only for cause.
(E) Compensation for service.--Each member of the
Authority shall be paid for full-time service at a rate
of pay equivalent to the rate of basic pay payable for
level III of the Executive Schedule under section 5314
of title 5, United States Code.
(b) Qualification Requirements.--
(1) In general.--An individual meets the qualifications for
membership on the Authority if the individual--
(A) has significant knowledge and expertise in
finance, management, and the organization or operation
of businesses having more than 500 employees; and
(B) represents the public interest generally, is
not a representative of specific interests using or
belonging to the Postal Service, and does not have any
business or financial interest in any enterprise in the
private sector of the economy engaged in the delivery
of mail matter.
(2) Specific conditions.--An individual shall not be
considered to satisfy paragraph (1)(B) if, at any time during
the 5-year period ending on the date of appointment, such
individual--
(A) has been an officer, employee, or private
contractor with the Postal Service, United States
Postal Service Inspector General, or the Postal
Regulatory Commission; or
(B) has served as an employee or contractor of a
labor organization representing employees of the Postal
Service, the United States Postal Service Inspector
General, or the Postal Regulatory Commission.
SEC. 204. ORGANIZATION AND STAFF.
(a) Adoption of Bylaws for Conducting Business.--As soon as
practicable after the appointment of its members, the Authority shall
adopt bylaws, rules, and procedures governing its activities under this
subtitle, including procedures for hiring experts and consultants. Upon
adoption, such bylaws, rules, and procedures shall be submitted by the
Authority to the Postmaster General, the President, and Congress.
(b) Executive Director and Staff.--
(1) Executive director.--The Authority shall have an
Executive Director who shall be appointed by the Chair with the
consent of the Authority. The Executive Director shall be paid
at a rate determined by the Authority, except that such rate
may not exceed the rate of basic pay payable for level IV of
the Executive Schedule under section 5315 of title 5, United
States Code.
(2) Staff.--With the approval of the Authority, the
Executive Director may appoint and fix the pay of such
additional personnel as the Executive Director considers
appropriate, except that no individual appointed by the
Executive Director may be paid at a rate greater than the rate
of pay for the Executive Director. Personnel appointed under
this paragraph shall serve at the pleasure of the Executive
Director.
(3) Inapplicability of certain civil service laws.--The
Executive Director and staff of the Authority may be appointed
without regard to the provisions of title 5, United States
Code, governing appointments in the competitive service, and
paid without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of such title relating to
classification and General Schedule pay rates.
(4) Staff of federal agencies.--Upon request of the Chair,
the head of any Federal department or agency may detail, on a
reimbursable or nonreimbursable basis, any of the personnel of
such department or agency to the Authority to assist it in
carrying out its duties under this subtitle.
SEC. 205. FUNDING.
(a) General Rule.--There are authorized to be appropriated, out of
the Postal Service Fund, such sums as may be necessary for the
Authority. In requesting an appropriation under this section for a
fiscal year, the Authority shall prepare and submit to the Congress
under section 2009 of title 39, United States Code, a budget of the
Authority's expenses, including expenses for facilities, supplies,
compensation, and employee benefits, not to exceed $10,000,000.
(b) Initial Rule.--Notwithstanding any other provision of this
section, effective as of the date on which at least 4 members of the
Authority have been appointed, there shall be available to the
Authority, out of the Postal Service Fund, such sums as the Authority
may require in order to carry out this subtitle, not to exceed the
amount equal to the product obtained by multiplying--
(1) the dollar amount specified in subsection (a), times
(2) a fraction--
(A) the numerator of which is the number of months
remaining in the fiscal year as of the date on which at
least 4 members of the Authority have been appointed
(rounding any fraction of a month to the next highest
whole number); and
(B) the denominator of which is 12.
(c) Amendment to Section 2009.--Section 2009 is amended in the next
to last sentence--
(1) by striking ``, and (3)'' and inserting ``, (3)''; and
(2) by striking the period and inserting ``, and (4) the
Postal Service Financial Responsibility and Management
Assistance Authority requests to be appropriated, out of the
Postal Service Fund, under section 205 of the Postal Reform Act
of 2013.''.
SEC. 206. RESPONSIBILITIES AND POWERS.
The exercise of the powers of the Postal Service shall be directed
by the Authority, including--
(1) all duties and responsibilities ascribed to the
Governors and the Board of Governors by title 39, United States
Code;
(2) determining the overall strategies of the Postal
Service;
(3) hiring, monitoring, compensating, and, when necessary,
replacing senior management at the level of vice president and
higher, as well as ensuring adequate succession planning for
these positions;
(4) approving major policies, particularly those that have
an important effect on the Postal Service's financial position
and the provision of universal postal service;
(5) approving corporate budgets, financial and capital
plans, operational and service performance standards and
targets, human resource strategies, collective-bargaining
strategies, negotiation parameters, collective-bargaining
agreements, and the compensation structure for nonbargaining
employees;
(6) formulating and communicating organizational policy and
positions on legislative and other public policy matters to
Congress and the public; and
(7) carrying out any responsibility, not otherwise listed
in this section, that was the responsibility of the Board of
Governors of the Postal Service at any time during the 5-year
period ending on the date of enactment of this Act.
SEC. 207. DEVELOPMENT OF FINANCIAL PLAN AND BUDGET FOR THE SOLVENCY OF
THE POSTAL SERVICE.
(a) Development of Financial Plan and Budget.--For each fiscal year
during a control period, the Postmaster General shall submit to the
Authority, by August 1 before the start of such fiscal year, a
financial plan and budget for such fiscal year for the long-term
solvency of the Postal Service, except that, for fiscal year 2014, the
deadline for submission of the plan and budget under this subsection
shall be the 30th day after a majority of the Authority take office. If
a majority of the Authority do not take office before August 1, 2014,
the requirement for a financial plan and budget under this subsection
for fiscal year 2014 is waived.
(b) Contents of Financial Plan and Budget.--A financial plan and
budget under this section for a fiscal year shall specify the budget
for the Postal Service as required by section 2009 of title 39, United
States Code, for the applicable fiscal year and each of the next 3
fiscal years, in accordance with the following requirements:
(1) The financial plan and budget shall meet the
requirements described in subsection (c) to promote the
financial stability of the Postal Service.
(2) The financial plan and budget shall--
(A) include the Postal Service's annual budget
program (under section 2009 of title 39, United States
Code) and the Postal Service's plan commonly referred
to as its ``Integrated Financial Plan'';
(B) describe lump-sum expenditures by all
categories traditionally used by the Postal Service;
(C) describe capital expenditures (together with a
schedule of projected capital commitments and cash
outlays of the Postal Service and proposed sources of
funding);
(D) contain estimates of overall debt (both
outstanding and anticipated to be issued); and
(E) contain cash flow and liquidity forecasts for
the Postal Service at such intervals as the Authority
may require.
(3) The financial plan and budget shall include a statement
describing methods of estimations and significant assumptions.
(4) The financial plan and budget shall include any other
provisions and shall meet such other criteria as the Authority
considers appropriate to meet the purposes of this subtitle,
including provisions for--
(A) changes in personnel policies and levels for
each component of the Postal Service; and
(B) management initiatives to promote productivity,
improvement in the delivery of services, or cost
savings.
(c) Requirements To Promote Financial Stability.--
(1) In general.--The requirements to promote the solvency
and financial stability of the Postal Service applicable to the
financial plan and budget for a fiscal year are as follows:
(A) For fiscal year 2016 and each subsequent fiscal
year during a control period, budgeted expenditures of
the Postal Service for the fiscal year involved may not
exceed budgeted revenues of the Postal Service for the
fiscal year involved.
(B) In each fiscal year where a financial plan and
budget must be developed, the financial plan and budget
shall provide for continuous, substantial progress
toward long-term fiscal solvency of the Postal Service.
(C) The financial plan and budget shall provide for
the orderly repayment of any outstanding obligations
authorized under section 503.
(D) The financial plan and budget shall assure the
continuing long-term solvency of the Postal Service, as
indicated by factors such as the efficient management
of the Postal Service's workforce and the effective
provision of services by the Postal Service. In so
doing, the financial plan and budget shall consider--
(i) the legal authority of the Postal
Service;
(ii) the changes in the legal authority and
responsibilities of the Postal Service under
this Act;
(iii) any cost savings that the Postal
Service anticipates will be achieved through
negotiations with employees of the Postal
Service;
(iv) projected changes in mail volume;
(v) the impact of regulations the Postal
Service was required by law to promulgate;
(vi) projected changes in the number of
employees needed to carry out the
responsibilities of the Postal Service; and
(vii) the long-term capital needs of the
Postal Service, including the need to maintain,
repair, and replace facilities and equipment.
(2) Application of sound budgetary practices.--In meeting
the requirements described in paragraph (1) with respect to a
financial plan and budget for a fiscal year, the Postal Service
shall apply sound budgetary practices, including reducing costs
and other expenditures, improving productivity, increasing
revenues, or a combination of such practices.
(3) Assumptions based on current law.--In meeting the
requirements described in paragraph (1) with respect to a
financial plan and budget for a fiscal year, the Postal Service
shall base estimates of revenues and expenditures on Federal
law Generally Accepted Accounting Principles and Federal law
(including regulations) as in effect at the time of the
preparation of such financial plan and budget.
(d) Definition.--For the purposes of this section, the term ``long-
term solvency'' means the ability of the Postal Service over the long
term to pay debts and meet expenses, including the ability to perform
maintenance and repairs, make investments, and maintain financial
reserves, as necessary to fulfill the requirements and comply with the
policies of title 39, United States Code, and other obligations of the
Postal Service.
SEC. 208. PROCESS FOR SUBMISSION AND APPROVAL OF FINANCIAL PLAN AND
BUDGET.
(a) Review by the Authority.--Upon receipt of a financial plan and
budget required by section 207, the Authority shall promptly review
such financial plan and budget. In conducting the review, the Authority
may request any additional information it considers necessary and
appropriate to carry out its duties.
(b) Approval of Postmaster General's Financial Plan and Budget.--
(1) In general.--If the Authority determines that the final
financial plan and budget for the fiscal year submitted by the
Postmaster General under subsection (a) meets the requirements
of section 207--
(A) the Authority shall approve the financial plan
and budget and shall provide the Postmaster General,
the President, the Committee on Homeland Security and
Governmental Affairs in the Senate, and the Committee
on Oversight and Government Reform in the House of
Representatives with a notice certifying its approval;
and
(B) the Postmaster General shall promptly submit
the annual budget program for the relevant fiscal year
to the Office of Management and Budget pursuant to
section 2009 of title 39, United States Code.
(2) Deemed approval after 30 days.--If the Authority has
not provided the Postmaster General, the President, and
Congress with a notice certifying approval under paragraph
(1)(A) or a statement of disapproval under subsection (c)
before the expiration of the 30-day period which begins on the
date the Authority receives the financial plan and budget from
the Postmaster General under subsection (a), the Authority
shall be deemed to have approved the financial plan and budget
and to have provided the Postmaster General, the President, the
Committee on Homeland Security and Governmental Affairs in the
Senate, and the Committee on Oversight and Government Reform in
the House of Representatives with the notice certifying
approval under paragraph (1)(A).
(c) Disapproval of Postmaster General's Financial Plan and
Budget.--
(1) In general.--If, after reviewing the financial plan and
budget for a fiscal year submitted by the Postmaster General
under subsection (a) in accordance with the procedures
described in this section, the Authority determines that the
revised final financial plan and budget does not meet the
applicable requirements under section 207, the Authority
shall--
(A) disapprove the financial plan and budget;
(B) provide the Postmaster General, the President,
and Congress with a statement containing the reasons
for such disapproval and describing the amount of any
shortfall in the financial plan and budget; and
(C) approve and recommend a financial plan and
budget for the Postal Service which meets the
applicable requirements under section 207, and submit
such financial plan and budget to the Postmaster
General, the President, the Committee on Homeland
Security and Governmental Affairs in the Senate, and
the Committee on Oversight and Government Reform in the
House of Representatives.
(2) Submission to omb.--Upon receipt of the recommended
financial plan and budget under paragraph (1)(C), the
Postmaster General shall promptly submit the recommended annual
budget program to the Office of Management and Budget pursuant
to section 2009 of title 39, United States Code.
(d) Deadline for Transmission of Financial Plan and Budget by the
Authority.--Notwithstanding any other provision of this section, not
later than September 30th before the start of each fiscal year for
which a financial plan and budget is required, the Authority shall--
(1) provide Congress with a notice certifying its approval
of the Postmaster General's financial plan and budget for the
fiscal year under subsection (c); or
(2) submit to Congress an approved and recommended
financial plan and budget developed by the Authority for the
fiscal year under subsection (c)(1)(C).
(e) Revisions to Financial Plan and Budget.--
(1) Permitting postmaster general to submit revisions.--The
Postmaster General may submit proposed revisions to the
financial plan and budget for the control period to the
Authority at any time during the fiscal year.
(2) Process for review, approval, disapproval, and
postmaster general action.--The procedures described in
subsections (b), (c), and (d) shall apply with respect to a
proposed revision to a financial plan and budget in the same
manner as such procedures apply with respect to the original
financial plan and budget.
(f) Requirements of the Authority.--
(1) In general.--It shall be the policy of the Authority to
direct the Postal Service to take any action necessary and
permitted by law to ensure that the approved financial plan and
budget is fully implemented over the course of each fiscal year
and that the budgetary goals for expenses and revenues are
achieved.
(2) Additional fiduciary actions.--In addition to paragraph
(1), the Authority shall take any additional actions it deems
necessary and permitted by law to ensure the requirements of
the financial plan and budget are achieved in practice so that
the total revenue of the Postal Service exceeds its total
operating expenses for the full fiscal year not later than
fiscal year 2016 and each fiscal year thereafter. Such actions
may include accelerating the conversion of door delivery points
to more cost-effective delivery methods, the consolidation of
additional mail processing facilities, transition to a 2-day or
3-day First-Class Mail delivery standard for the continental
United States, and any other action consistent with this Act
and the provisions of title 39, United States Code. For the
purposes of this paragraph, the term ``total operating
expenses'' refers to all categories of expenses identified
under that term in the Report on Form 10-K filed by the Postal
Service for fiscal year 2012.
SEC. 209. DISSOLUTION OF THE AUTHORITY; RECONSTITUTION OF THE BOARD OF
GOVERNORS.
(a) In General.--Effective as of the date on which the control
period terminates (as determined under section 202(b)(5))--
(1) the Authority is dissolved; and
(2) section 202 of title 39, United States Code (as amended
by section 202(b)(2)(A) of this Act) is amended by inserting
after the section heading the following:
``(a)(1) The exercise of the power of the Postal Service shall be
directed by a Board of Governors composed of 5 members appointed in
accordance with this section. The members, to be known as Governors,
shall be appointed by the President, by and with the advice and consent
of the Senate. Not more than 3 of the Governors may be adherents of the
same political party. The Governors shall elect a Chairman from among
the individual Governors. The Governors shall represent the public
interest generally, and shall be chosen solely on the basis of their
experience in the field of public administration, law, or accounting,
or on their demonstrated ability in managing organizations or
corporations (in either the public or private sector) of substantial
size; except that at least 3 of the Governors shall be chosen solely on
the basis of their demonstrated ability in managing organizations or
corporations (in either the public or private sector) that employ at
least 10,000 employees. The Governors shall not be representatives of
specific interests using the Postal Service, and may be removed only
for cause. Each Governor shall receive a salary of $30,000 a year plus
$300 a day for not more than 42 days of meetings each year and shall be
reimbursed for travel and reasonable expenses incurred in attending
meetings of the Board. Nothing in the preceding sentence shall be
construed to limit the number of days of meetings each year to 42 days.
``(2) In selecting the individuals described in paragraph (1) for
nomination for appointment to the position of Governor, the President
should consult with the Speaker of the House of Representatives, the
minority leader of the House of Representatives, the majority leader of
the Senate, and the minority leader of the Senate.
``(3) Not later than 60 days after the end of each fiscal year, the
Board of Governors shall submit an itemized report describing all
travel and reimbursable business travel expenses paid to each Governor
when performing Board duties to the Committee on Oversight and
Government Reform of the House of Representatives and the Committee on
Homeland Security and Governmental Affairs of the Senate. The report
submitted under this paragraph shall include a detailed justification
for any travel or reimbursable business travel expense that deviates
from the Board's travel and reimbursable business travel expense
policies and guidelines under paragraph (1).
``(b)(1) The terms of the 5 Governors shall be 7 years, except
that--
``(A) upon the reconstitution of the Board of Governors
pursuant to the Postal Reform Act of 2013--
``(i) the 5 members last comprising the Postal
Service Financial Responsibility and Management
Assistance Authority before the termination of the
control period (as defined in section 202(b)(1) of the
Postal Reform Act of 2013) shall become the initial
members of the reconstituted Board of Governors; and
``(ii) the term of each of the 5 respective
individuals under clause (i) shall expire at the end of
the term which would have applied with respect to that
individual, if--
``(I) the control period (as so defined)
had not terminated; and
``(II) such individual had remained a
member of the Postal Service Financial
Responsibility and Management Assistance
Authority; and
``(B) the terms of the Governors first taking office after
the initial Governors of the reconstituted Board (as described
in subparagraph (A)) shall be as fixed by the President at the
time of their appointment, except that each such term--
``(i) shall be for a period of years not less than
3 years and not more than 7 years; and
``(ii) shall be fixed such that the term of not
more than 1 Governor is thereafter scheduled to expire
in any calendar year (determined disregarding the term
of an initial Governor expiring as described in
subparagraph (A)(ii)).
``(2) Any Governor appointed to fill a vacancy before the
expiration of the term for which his predecessor was appointed shall
serve for the remainder of such term. A Governor may continue to serve
after the expiration of his term until his successor has qualified, but
not to exceed 1 year.
``(3) No person may serve more than 14 years as a Governor. For
purposes of the preceding sentence, there shall be taken into account
any period served as a member of--
``(A) the Postal Service Financial Responsibility and
Management Assistance Authority; or
``(B) the Board of Governors, as constituted before the
start of the control period.''.
(b) Conforming Amendments.--
(1) Section 102(3) is amended by striking ``9'' and
inserting ``5''; and
(2) Section 205(c) is amended by striking all after
``present, and'' and inserting ``an absolute majority of the
Governors in office shall constitute a quorum for the
transaction of business by the Board.''.
Subtitle B--Other Matters
SEC. 211. APPOINTMENT OF THE POSTAL SERVICE INSPECTOR GENERAL.
(a) Appointment of Inspector General of the Postal Service by
President.--The Inspector General Act of 1978 (5 U.S.C. App.) is
amended--
(1) in section 8G--
(A) in subsection (a)--
(i) in paragraph (2), by striking ``the
Postal Regulatory Commission, and the United
States Postal Service'' and inserting ``and the
Postal Regulatory Commission'';
(ii) in paragraph (3), by striking
``subsection (h)(1)'' and inserting
``subsection (g)(1)''; and
(iii) in paragraph (4)--
(I) in the matter preceding
subparagraph (A), by striking
``subsection (h)(1)'' and inserting
``subsection (g)(1)'';
(II) by striking subparagraph (B);
and
(III) by redesignating
subparagraphs (C) through (H) as
subparagraphs (B) through (G),
respectively;
(B) in subsection (c), by striking ``Except as
provided under subsection (f) of this section, the''
and inserting ``The'';
(C) by striking subsection (f); and
(D) by redesignating subsections (g) and (h) as
subsections (f) and (g), respectively;
(2) by inserting after section 8L the following:
``SEC. 8M. SPECIAL PROVISIONS CONCERNING THE INSPECTOR GENERAL OF THE
UNITED STATES POSTAL SERVICE.
``(a) Oversight of Postal Inspection Service.--In carrying out the
duties and responsibilities specified in this Act, the Inspector
General of the United States Postal Service (in this section referred
to as the `Inspector General') shall have oversight responsibility for
all activities of the Postal Inspection Service, including any internal
investigation performed by the Postal Inspection Service. The Chief
Postal Inspector shall promptly report the significant activities being
carried out by the Postal Inspection Service to such Inspector General.
``(b) Supervision; Additional Duties and Responsibilities;
Report.--
``(1) Authority, direction, and control.--
``(A) Audits, investigations, subpoenas.--The
Inspector General shall be under the authority,
direction, and control of the Governors with respect to
audits or investigations, or the issuance of subpoenas,
which require access to sensitive information
concerning--
``(i) ongoing civil or criminal
investigations or proceedings;
``(ii) undercover operations;
``(iii) the identity of confidential
sources, including protected witnesses;
``(iv) intelligence or counterintelligence
matters; or
``(v) other matters the disclosure of which
would constitute a serious threat to national
security.
``(B) Authority of governors.--With respect to the
information described under subparagraph (A), the
Governors may prohibit the Inspector General from
carrying out or completing any audit or investigation,
or from issuing any subpoena, after such Inspector
General has decided to initiate, carry out, or complete
such audit or investigation or to issue such subpoena,
if the Governors determine that such prohibition is
necessary to prevent the disclosure of any information
described under subparagraph (A) or to prevent the
significant impairment to the national interests of the
United States.
``(C) Notice required.--If the Governors exercise
any power under subparagraph (A) or (B), the Governors
shall notify the Inspector General in writing stating
the reasons for such exercise. Within 30 days after
receipt of any such notice, the Inspector General shall
transmit a copy of such notice to the Committee on
Homeland Security and Governmental Affairs of the
Senate and the Committee on Oversight and Government
Reform of the House of Representatives, and to other
appropriate committees or subcommittees of the
Congress.
``(2) Additional duties and responsibilities.--In carrying
out the duties and responsibilities specified in this Act, the
Inspector General--
``(A) may initiate, conduct, and supervise such
audits and investigations in the United States Postal
Service as the Inspector General considers appropriate;
and
``(B) shall give particular regard to the
activities of the Postal Inspection Service with a view
toward avoiding duplication and insuring effective
coordination and cooperation.
``(3) Report required.--Any report required to be
transmitted by the Governors to the appropriate committees or
subcommittees of the Congress under section 5(d) shall also be
transmitted, within the seven-day period specified under such
section, to the Committee on Homeland Security and Governmental
Affairs of the Senate and the Committee on Oversight and
Government Reform of the House of Representatives.
``(c) Governors Defined.--As used in this section, the term
`Governors' has the meaning given such term by section 102(3) of title
39, United States Code.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated, out of the Postal Service Fund, such sums as may be
necessary for the Office of Inspector General of the United States.'';
and
(3) in section 12--
(A) in paragraph (1), by striking ``or the Federal
Cochairpersons of the Commissions established under
section 15301 of title 40, United States Code'' and
inserting ``the Federal Cochairpersons of the
Commissions established under section 15301 of title
40, United States Code; or the Board of Governors of
the United States Postal Service''; and
(B) in paragraph (2), by striking ``or the
Commissions established under section 15301 of title
40, United States Code'' and inserting ``the
Commissions established under section 15301 of title
40, United States Code, or the United States Postal
Service''.
(b) Technical and Conforming Amendments.--Title 39, United States
Code, is amended--
(1) in section 102(4), by striking ``section 202(e) of this
title'' and inserting ``section 3 of the Inspector General Act
of 1978 (5 U.S.C. App.)'';
(2) in section 1001(b), in the first sentence, by inserting
``and section 3 of the Inspector General Act of 1978 (5 U.S.C.
App.)'' after ``1001(c) of this title'';
(3) in section 1003(a), by striking ``8G'' and inserting
``8M'';
(4) in section 1005(a)(3), by inserting ``and section 3 of
the Inspector General Act of 1978 (5 U.S.C. App.)'' after
``1001(c) of this title'';
(5) in section 2003(e) by striking ``8G(f)'' and inserting
``8M(d)''; and
(6) in section 2009 by striking ``8G(f)'' and inserting
``8M(d)''.
(c) Applicability.--
(1) In general.--The amendments made by this section shall
apply with respect to the first individual appointed as
Inspector General of the Postal Service after the date of
enactment of this Act.
(2) Rule of construction.--Nothing in this Act may be
construed to alter the authority or the length of the term of
the individual serving as Inspector General of the Postal
Service on the date of enactment of this Act.
SEC. 212. MEMBERSHIP OF THE BOARD OF GOVERNORS.
(a) Postmaster General.--Section 202(c) is amended to read as
follows:
``(c) The Governors shall appoint and shall have the power to
remove the Postmaster General. His pay and term of service shall be
fixed by the Governors.''.
(b) Deputy Postmaster General.--Section 202(d) is amended to read
as follows:
``(d) The Governors shall appoint and shall have the power to
remove the Deputy Postmaster General. His term of service shall be
fixed by the Governors and the Postmaster General and his pay by the
Governors.''.
TITLE III--POSTAL SERVICE WORKFORCE
SEC. 301. APPLICABILITY OF REDUCTION-IN-FORCE PROCEDURES.
Section 1206 is amended by adding at the end the following:
``(d) Collective-bargaining agreements between the Postal Service
and bargaining representatives recognized under section 1203, ratified
after the date of enactment of this subsection, shall contain no
provision restricting the applicability of reduction-in-force
procedures under title 5 with respect to members of the applicable
bargaining unit.
``(e)(1) If a collective-bargaining agreement between the Postal
Service and bargaining representatives recognized under section 1203,
ratified after the date of enactment of this subsection, includes
reduction-in-force procedures which can be applied in lieu of
reduction-in-force procedures under title 5, the Postal Service may, in
its discretion, apply with respect to members of the applicable
bargaining unit--
``(A) the alternative procedures (or, if 2 or more are
agreed to, 1 of the alternative procedures); or
``(B) the reduction-in-force procedures under title 5.
``(2) In no event may, if procedures for the resolution of a
dispute or impasse arising in the negotiation of a collective-
bargaining agreement (whether through binding arbitration or otherwise)
are invoked under this chapter, the award or other resolution reached
under such procedures provide for the elimination of, or the
substitution of any alternative procedures in lieu of, reduction-in-
force procedures under title 5.''.
SEC. 302. POSTAL SERVICE FEHBP AND FEGLI FUNDING REQUIREMENTS.
Section 1005(d)(1) is amended--
(1) in the first sentence, by striking ``chapters 83 and
84'' and inserting ``chapters 83, 84, 87, and 89''; and
(2) by adding at the end the following: ``Beginning not
later than January 1, 2020, the Postal Service shall withhold
from pay and shall pay into the Employees Life Insurance Fund
and the Employee Health Benefits Fund the amounts specified in
or determined under chapters 87 and 89, respectively.''.
SEC. 303. REPEAL OF PROVISION RELATING TO OVERALL VALUE OF FRINGE
BENEFITS.
The last sentence of section 1005(f) is repealed.
SEC. 304. MODIFICATIONS RELATING TO DETERMINATION OF PAY COMPARABILITY.
(a) Postal Policy.--The first sentence of section 101(c) is
amended--
(1) by inserting ``total'' before ``rates and types of
compensation''; and
(2) by inserting ``entire'' before ``private sector''.
(b) Employment Policy.--The second sentence of section 1003(a) is
amended--
(1) by inserting ``total'' before ``compensation and
benefits'' each place it appears; and
(2) by inserting ``entire'' before ``private sector''.
(c) Considerations.--For purposes of the amendments made by this
section, any determination of ``total rates and types of compensation''
or ``total compensation and benefits'' shall, at a minimum, take into
account pay, health benefits, retirement benefits, life insurance
benefits, leave, holidays, and continuity and stability of employment.
SEC. 305. LAST-BEST-FINAL-OFFER NEGOTIATIONS.
Section 1207 is amended by striking subsections (c) and (d) and
inserting the following:
``(c)(1) If no agreement is reached within 30 days after the
appointment of a mediator under subsection (b), or if the parties
decide upon arbitration before the expiration of the 30-day period, an
arbitration board shall be established consisting of 1 member selected
by the Postal Service (from the list under paragraph (2)), 1 member
selected by the bargaining representative of the employees (from the
list under paragraph (2)), and the mediator appointed under subsection
(b).
``(2) Upon receiving a request from either of the parties referred
to in paragraph (1), the Director of the Federal Mediation and
Conciliation Service shall provide a list of not less than 9
individuals who are well qualified to serve as neutral arbitrators.
Each person listed shall be an arbitrator of nationwide reputation and
professional nature, a member of the National Academy of Arbitrators,
and an individual whom the Director has determined to be willing and
available to serve. If, within 7 days after the list is provided,
either of the parties has not selected an individual from the list, the
Director shall make the selection within 3 days.
``(3) The arbitration board shall give the parties a full and fair
hearing, including an opportunity to present evidence in support of
their claims, and an opportunity to present their case in person, by
counsel, or by other representative as they may elect. The hearing
shall be concluded no more than 40 days after the arbitration board is
established.
``(4) No more than 7 days after the hearing is concluded, each
party shall submit to the arbitration board 2 offer packages, each of
which packages shall specify the terms of a proposed final agreement.
``(5) If no agreement is reached within 7 days after the last day
allowable for the submission of an offer package under paragraph (4),
each party shall submit to the arbitration board a single, final offer
package specifying the terms of a proposed final agreement.
``(6) No later than 3 days after the submission of the final offer
packages under paragraph (5), the arbitration board shall select 1 of
those packages as its tentative award, subject to paragraph (7).
``(7)(A) The arbitration board may not select a final offer package
under paragraph (6) unless it satisfies each of the following:
``(i) The offer complies with the requirements of sections
101(c) and 1003(a).
``(ii) The offer takes into account the current financial
condition of the Postal Service.
``(iii) The offer takes into account the long-term
financial condition of the Postal Service.
``(B)(i) If the board unanimously determines, based on clear and
convincing evidence presented during the hearing under paragraph (3),
that neither final offer package satisfies the conditions set forth in
subparagraph (A), the board shall by majority vote--
``(I) select the package that best meets such conditions;
and
``(II) modify the package so selected to the minimum extent
necessary to satisfy such conditions.
``(ii) If modification (as described in subparagraph (B)(i)(II)) is
necessary, the board shall have an additional 7 days to render its
tentative award under this subparagraph.
``(8) The parties may negotiate a substitute award to replace the
tentative award selected under paragraph (6) or rendered under
paragraph (7) (as the case may be). If no agreement on a substitute
award is reached within 10 days after the date on which the tentative
award is so selected or rendered, the tentative award shall become
final.
``(9) The arbitration board shall review any substitute award
negotiated under paragraph (8) to determine if it satisfies the
conditions set forth in paragraph (7)(A). If the arbitration board, by
a unanimous vote taken within 3 days after the date on which the
agreement on the substitute award is reached under paragraph (8),
determines that the substitute award does not satisfy such conditions,
the tentative award shall become final. In the absence of a vote, as
described in the preceding sentence, the substitute agreement shall
become final.
``(10) If, under paragraph (5), neither party submits a final offer
package by the last day allowable under such paragraph, the arbitration
board shall develop and issue a final award no later than 20 days after
such last day.
``(11) A final award or agreement under this subsection shall be
conclusive and binding upon the parties.
``(12) Costs of the arbitration board and mediation shall be shared
equally by the Postal Service and the bargaining representative.
``(d) In the case of a bargaining unit whose recognized collective-
bargaining representative does not have an agreement with the Postal
Service, if the parties fail to reach agreement within 90 days after
the commencement of collective bargaining, a mediator shall be
appointed in accordance with the provisions of subsection (b), unless
the parties have previously agreed to another procedure for a binding
resolution of their differences. If the parties fail to reach agreement
within 180 days after the commencement of collective bargaining, an
arbitration board shall be established to provide conclusive and
binding arbitration in accordance with the provisions of subsection
(c).''.
SEC. 306. POSTAL SERVICE WORKERS' COMPENSATION REFORM.
(a) In General.--Effective 12 months after the triggering date of
this section (as defined in subsection (e)(2)), section 1005 is amended
by striking subsection (c) and inserting the following:
``(c)(1) For purposes of this subsection--
``(A) the term `postal employee' means an officer or
employee of the Postal Service or the former Post Office
Department; and
``(B) the term `retirement age' has the meaning given such
term under section 216(l)(1) of the Social Security Act.
``(2) The Postal Service shall design and administer a program for
the payment of benefits for the disability or death of an individual
resulting from personal injury sustained while in the performance of
such individual's duties as a postal employee.
``(3) The program under this subsection--
``(A) shall be designed by the Postal Service in
consultation with appropriate employee representatives;
``(B) shall not provide for any amount payable to a
disabled postal employee to be augmented on the basis of number
of dependents; and
``(C) shall include provisions for automatic transition,
upon attainment of retirement age, to benefits involving,
coordinated with, or otherwise determined by reference to
retirement benefits.''.
(b) Recommendations.--Not later than 6 months after the triggering
date--
(1) the Office of Personnel Management shall submit to the
appropriate committees of Congress recommendations for any
legislation or administrative actions which the Office
considers necessary to carry out the purposes of this section
with respect to any matter within the jurisdiction of the
Office, including any amendments which may be necessary with
respect to chapter 87 or 89 of title 5, United States Code; and
(2) the Postal Service shall submit to the appropriate
committees of Congress recommendations for any legislation
which the Postal Service considers necessary to carry out the
purposes of this section with respect to any matter within the
jurisdiction of the Postal Service.
(c) Notification Requirements.--Not later than 9 months after the
triggering date, the Postal Service shall submit to the appropriate
committees of Congress and shall cause to be published in the Federal
Register a description of the program proposed by the Postal Service
for implementation under section 1005(c) of title 39, United States
Code, as amended by subsection (a). Included in the notification
provided under the preceding sentence shall be--
(1) a detailed statement of the benefits to be offered and
the persons eligible to receive those benefits;
(2) provisions to ensure an orderly transition to the
system proposed to be implemented; and
(3) such other information as the Postal Service considers
appropriate.
(d) Commencement Date.--The program under section 1005(c) of title
39, United States Code, as amended by subsection (a)--
(1) shall begin to operate on such date as the Postmaster
General shall determine, except that such date shall be a date
occurring--
(A) not earlier than 12 months after the triggering
date; and
(B) not later than 24 months after the triggering
date; and
(2) shall apply with respect to amounts payable for periods
beginning on or after the date on which the program begins to
operate, irrespective of date of the disability or death to
which such amounts relate.
(e) Condition Precedent.--
(1) In general.--The preceding provisions of this section
shall not become effective until the date on which the Postal
Service Financial Responsibility and Management Assistance
Authority (established under section 202)--
(A) makes a written determination that conditions
warrant their implementation; and
(B) submits such written determination to the
Postal Service, the Office of Personnel Management, and
the appropriate committees of Congress.
(2) Triggering date.--For purposes of this section, the
term ``triggering date of this section'' or ``triggering date''
means the date described in paragraph (1).
(f) Appropriate Committees of Congress Defined.--For purposes of
this section, the term ``appropriate committees of Congress'' means--
(1) the Committee on Oversight and Government Reform of the
House of Representatives; and
(2) the Committee on Homeland Security and Governmental
Affairs of the Senate.
SEC. 307. REPORTING REQUIREMENT.
(a) In General.--Chapter 10 is amended by adding at the end the
following:
``Sec. 1012. Official time reporting
``(a) Not later than March 31 of each calendar year, the Postal
Service, in consultation with the Office of Management and Budget,
shall submit to each House of Congress a report on the operation of
this section during the fiscal year last ending before the start of
such calendar year.
``(b) Each report by the Postal Service under this subsection shall
include, with respect to the fiscal year described in subsection (a),
at least the following information:
``(1) The total amount of official time granted to
employees.
``(2) The average amount of official time expended per
bargaining unit employee.
``(3) The specific types of activities or purposes for
which official time was granted, and the impact which the
granting of such official time for such activities or purposes
had on agency operations.
``(4) The total number of employees to whom official time
was granted, and, of that total, the number who were not
engaged in any activities or purposes except activities or
purposes involving the use of official time.
``(5) The total amount of compensation (including fringe
benefits) afforded to employees in connection with activities
or purposes for which they were granted official time.
``(c) All information included in a report by the Postal Service
under this subsection with respect to a fiscal year--
``(1) shall be shown both for each supervisory and
managerial organization recognized under section 1004 and labor
organization recognized under section 1203 and for all
organizations together; and
``(2) shall be accompanied by the corresponding information
(submitted by the Postal Service in its report under this
subsection) for the fiscal year before the fiscal year to which
such report pertains, together with appropriate comparisons and
analyses.
``(d) For purposes of this subsection, the term `official time'
means any period of time, regardless of Postal Service nomenclature--
``(1) which may be granted to an employee under this
chapter or chapter 12 (including a collective-bargaining
agreement entered into under chapter 12) to perform
representational or consultative functions; and
``(2) during which the employee would otherwise be in a
duty status.''.
(b) Applicability.--The amendment made by subsection (a) shall be
effective beginning with the report which, under the provisions of such
amendment, is first required to be submitted by the Postal Service to
each House of Congress by a date which occurs at least 6 months after
the date of the enactment of this Act.
(c) Clerical Amendment.--The table of sections for chapter 10 is
amended by adding at the end the following:
``1012. Official time reporting.''.
TITLE IV--POSTAL SERVICE REVENUE
SEC. 401. ADEQUACY, EFFICIENCY, AND FAIRNESS OF POSTAL RATES.
(a) In General.--Section 3622(d) is amended--
(1) in paragraph (1)--
(A) by redesignating subparagraphs (B) through (E)
as subparagraphs (D) through (G), respectively; and
(B) by inserting after subparagraph (A) the
following:
``(B) subject to the limitation under subparagraph
(A), establish postal rates to fulfill the requirement
that each market-dominant class, product, and type of
mail service (except for an experimental product or
service) bear the direct and indirect postal costs
attributable to such class, product, or type through
reliably identified causal relationships plus that
portion of all other costs of the Postal Service
reasonably assignable to such class, product, or type;
``(C) establish postal rates for each group of
functionally equivalent agreements between the Postal
Service and users of the mail that--
``(i) cover attributable cost;
``(ii) improve the net financial position
of the Postal Service; and
``(iii) do not cause unreasonable
disruption in the marketplace, consistent with
subsection (c)(10)(B);
for purposes of this subparagraph, a group of
functionally equivalent agreements shall consist of all
service agreements that are functionally equivalent to
each other within the same market-dominant product, but
shall not include agreements within an experimental
product;'';
(2) in paragraph (3), by striking ``subsection (c),'' and
inserting ``subsection (c) and the provisions of title IV of
the Postal Reform Act of 2013,''; and
(3) by adding at the end the following:
``(4) PRC study.--
``(A) In general.--Within 90 days after the end of
the first fiscal year beginning after the date of
enactment of the Postal Reform Act of 2013, the Postal
Regulatory Commission shall complete a study to
determine the quantitative impact of the Postal
Service's excess capacity on the direct and indirect
postal costs attributable to any class that bears less
than 100 percent of its costs attributable (as
described in paragraph (1)(B)), according to the most
recent annual determination of the Postal Regulatory
Commission under section 3653.
``(B) Requirements.--The study required under
subparagraph (A) shall--
``(i) be conducted pursuant to regulations
that the Postal Regulatory Commission shall
prescribe within 90 days after the date of
enactment of the Postal Reform Act of 2013,
taking into account existing regulations for
proceedings to improve the quality, accuracy,
or completeness of ratemaking information under
section 3652(e)(2) in effect on such date; and
``(ii) for any year in which any class of
mail bears less than 100 percent of its costs
attributable (as described in paragraph
(1)(B)), be updated annually by the Postal
Service and included in its annual report to
the Commission under section 3652, using such
methodologies as the Commission shall by
regulation prescribe.
``(5) Additional rates.--Starting not earlier than 12
months and not later than 18 months after the date on which the
first study described in paragraph (4) is completed, and at
least once in each subsequent 12-month period, the Postal
Service shall establish postal rates for each loss-making class
of mail to eliminate such losses (other than those caused by
the Postal Service's excess capacity) by exhausting all unused
rate authority as well as maximizing incentives to reduce costs
and increase efficiency, subject to the following:
``(A) The term `loss-making', as used in this
paragraph with respect to a class of mail, means a
class of mail that bears less than 100 percent of its
costs attributable (as described in paragraph (1)(B)),
according to the most recent annual determination of
the Postal Regulatory Commission under section 3653,
adjusted to account for the quantitative effect of
excess capacity on the costs attributable of the class.
``(B) Unused rate authority shall be annually
increased by 2 percentage points for each class of mail
that bears less than 90 percent of its costs
attributable (as described in paragraph (1)(B)),
according to the most recent annual determination of
the Postal Regulatory Commission under section 3653,
adjusted to account for the quantitative effect of
excess capacity on the costs attributable of the class,
with such increase in unused rate authority to take
effect 30 days after the date that the Commission
issues such determination.''.
(b) Exception.--Section 3622(d) is amended by adding after
paragraph (5) (as added by subsection (a)(2)) the following:
``(6) Exception.--The requirements of paragraph (1)(B)
shall not apply to a market-dominant product for which a
substantial portion of the product's mail volume consists of
inbound international mail with terminal dues rates determined
by the Universal Postal Union (and not by bilateral agreements
or other arrangements).''.
SEC. 402. REPEAL OF RATE PREFERENCES FOR QUALIFIED POLITICAL
COMMITTEES.
Subsection (e) of section 3626 is repealed.
SEC. 403. USE OF NEGOTIATED SERVICE AGREEMENTS.
(a) Streamlined Review of Qualifying Service Agreements for
Competitive Products.--Section 3633 is amended by adding at the end the
following:
``(c) Streamlined Review.--Not later than 90 days after the date of
enactment of this subsection, after notice and opportunity for comment,
the Postal Regulatory Commission shall promulgate (and may from time to
time thereafter revise) regulations for streamlined after-the-fact
review of newly proposed agreements between the Postal Service and
users of the mail that provide rates not of general applicability for
competitive products. Streamlined review shall apply only if agreements
are functionally equivalent to existing agreements that have
collectively covered attributable costs and collectively improved the
net financial position of the Postal Service. The regulations issued
under this subsection shall provide that streamlined review shall be
concluded not later than 5 business days after the date on which the
agreement is filed with the Commission and shall be limited to approval
or disapproval of the agreement as a whole based on the Commission's
determination of its functional equivalence. Agreements not approved
may be resubmitted without prejudice under section 3632.''.
(b) Submission of Service Agreements for Streamlined Review.--
Section 3632(b) is amended--
(1) by redesignating paragraph (4) as paragraph (5); and
(2) by inserting after paragraph (3) the following:
``(4) Rates for streamlined review.--In the case of rates
not of general applicability for competitive products that the
Postmaster General considers eligible for streamlined review
under section 3633(c), the Postmaster General shall cause the
agreement to be filed with the Postal Regulatory Commission by
a date that is on or before the effective date of any new rate
established under the agreement, as the Postmaster General
considers appropriate.''.
(c) Transparency and Accountability for Service Agreements.--
(1) Certain information required to be included in
determinations of compliance.--Section 3653 is amended--
(A) by redesignating subsections (c), (d), and (e)
as subsections (d), (e), and (f), respectively; and
(B) by inserting after subsection (b) the
following:
``(c) Written Determination.--Each annual written determination of
the Commission under this section shall include the following:
``(1) Requirements.--For each group of functionally
equivalent agreements between the Postal Service and users of
the mail, whether such group fulfilled requirements to--
``(A) cover costs attributable; and
``(B) improve the net financial position of the
Postal Service.
``(2) Noncompliance.--Any group of functionally equivalent
agreements not meeting subparagraphs (A) and (B) of paragraph
(1) shall be determined to be in noncompliance under this
subsection.
``(3) Definition.--For purposes of this subsection, a group
of functionally equivalent agreements shall consist of 1 or
more service agreements that are functionally equivalent to
each other within the same market-dominant or competitive
product, but shall not include agreements within an
experimental product.''.
(2) Criteria for special classifications relating to
market-dominant products.--
(A) Amendment.--Section 3622(c)(10) is amended by
striking subparagraphs (A) and (B) and inserting the
following:
``(A) improve the net financial position of the
Postal Service by reducing Postal Service costs or
increasing the overall contribution to the
institutional costs of the Postal Service; and
``(B) do not cause--
``(i) unfair competitive advantage for the
Postal Service or postal users eligible for the
agreements; or
``(ii) unreasonable disruption to the
volume or revenues of other postal users.''.
(B) Applicability.--The amendment made by
subparagraph (A) shall take effect on the date of
enactment of this Act and shall apply with respect to
an agreement that--
(i) is filed with the Commission on or
after such date of enactment; or
(ii) is remanded to the Commission by a
court on or after such date of enactment.
SEC. 404. NONPOSTAL SERVICES.
(a) Nonpostal Services.--
(1) In general.--Part IV is amended by adding after chapter
36 the following:
``CHAPTER 37--NONPOSTAL SERVICES
``Sec.
``3701. Purpose.
``3702. Definitions.
``3703. Postal Service advertising program.
``3704. Postal Service program for State governments.
``3705. Postal Service program for other government agencies.
``3706. Transparency and accountability for nonpostal services.
``Sec. 3701. Purpose
``This chapter is intended to enable the Postal Service to increase
its net revenues through specific nonpostal products and services that
are expressly authorized by this chapter. Postal Service revenues and
expenses under this chapter shall be funded through the Postal Service
Fund.
``Sec. 3702. Definitions
``As used in this chapter--
``(1) the term `nonpostal services' is limited to services
offered by the Postal Service that are expressly authorized by
this chapter and are not postal products or services;
``(2) the term `attributable costs' has the same meaning as
is given such term in section 3631; and
``(3) the term `year' means a fiscal year.
``Sec. 3703. Postal Service advertising program
``Notwithstanding any other provision of this title, the Postal
Service may establish and manage a program that allows entities to
advertise at Postal Service facilities, on Postal Service assets, and
on Postal Service vehicles. Such a program shall be subject to the
following requirements:
``(1) The Postal Service shall at all times ensure
advertising it permits is consistent with the integrity of the
Postal Service.
``(2) Any advertising program is required to cover a
minimum of 200 percent of its attributable costs in each year.
``(3) All advertising expenditures and revenues are subject
to annual compliance determination (including remedies for
noncompliance) applicable to nonpostal products.
``(4) Total advertising expenditures and revenues must be
disclosed in Postal Service annual reports.
``Sec. 3704. Postal Service program for State governments
``(a) In General.--Notwithstanding any other provision of this
title, the Postal Service may establish a program to provide services
for agencies of State governments within the United States, but only if
such services--
``(1) shall provide enhanced value to the public, such as
by lowering the cost or raising the quality of such services or
by making such services more accessible;
``(2) do not interfere with or detract from the value of
postal services, including--
``(A) the cost and efficiency of postal services;
and
``(B) unreasonable access to postal retail service,
such as customer waiting time and access to parking;
and
``(3) provide a reasonable contribution to the
institutional costs of the Postal Service, defined as
reimbursement for each service and covering at least 150
percent of the attributable costs of such service in each year.
``(b) Public Notice.--At least 90 days before offering any services
under this section, the Postal Service shall make each agreement with
State agencies readily available to the public on its Web site,
including a business plan that describes the specific services to be
provided, the enhanced value to the public, terms of reimbursement, the
estimated annual reimbursement to the Postal Service, and the estimated
percentage of attributable Postal Service costs that will be covered by
reimbursement (with documentation to support these estimates). The
Postal Service shall solicit public comment for at least 30 days, with
comments posted on its Web site, followed by its written response
posted on its Web site at least 30 days before offering such services.
``(c) Approval Required.--The Governors of the Postal Service shall
approve the provision of services under this section by a recorded
vote, with at least \2/3\ of its membership voting for approval, with
the vote publicly disclosed on the Postal Service Web site.
``(d) Classification of Services.--All services for a given agency
provided under this section shall be classified as a separate activity
subject to the requirements of annual reporting under section 3706.
Such reporting shall also include information on the quality of service
and related information to demonstrate that it satisfied the
requirements of subsection (a). Information provided under this section
shall be according to requirements that the Postal Regulatory
Commission shall by regulation prescribe.
``(e) Definitions.--For the purpose of this section--
``(1) the term `State' includes 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; and
``(2) the term `United States', when used in a geographical
sense, means the States.
``Sec. 3705. Postal Service program for other government agencies
``(a) In General.--The Postal Service may establish a program to
provide property and services for other government agencies within the
meaning of section 411, but only if such program provides a reasonable
contribution to the institutional costs of the Postal Service, defined
as reimbursement by each agency that covers at least 100 percent of the
attributable costs of all property and service provided by the Postal
Service in each year to such agency.
``(b) Classification of Services.--For each agency, all property
and services provided by the Postal Service under this section shall be
classified as a separate activity subject to the requirements of annual
reporting under section 3706. Information provided under this section
shall be according to requirements that the Postal Regulatory
Commission shall by regulation prescribe.
``Sec. 3706. Transparency and accountability for nonpostal services
``(a) Annual Reports to the Commission.--
``(1) In general.--The Postal Service shall, no later than
90 days after the end of each year, prepare and submit to the
Postal Regulatory Commission a report (together with such
nonpublic annex to the report as the Commission may require
under subsection (b)) which shall analyze costs, revenues,
rates, and quality of service for this chapter, using such
methodologies as the Commission shall by regulation prescribe,
and in sufficient detail to demonstrate compliance with all
applicable requirements of this chapter.
``(2) Audits.--The Inspector General shall regularly audit
the data collection systems and procedures utilized in
collecting information and preparing such report. The results
of any such audit shall be submitted to the Postal Service and
the Postal Regulatory Commission.
``(b) Supporting Matter.--The Postal Regulatory Commission shall
have access, in accordance with such regulations as the Commission
shall prescribe, to the working papers and any other supporting matter
of the Postal Service and the Inspector General in connection with any
information submitted under this section.
``(c) Content and Form of Reports.--
``(1) In general.--The Postal Regulatory Commission shall,
by regulation, prescribe the content and form of the public
reports (and any nonpublic annex and supporting matter relating
to the report) to be provided by the Postal Service under this
section. Such reports shall be included with the annual
compliance determination reported under section 3653. In
carrying out this subsection, the Commission shall give due
consideration to--
``(A) providing the public with timely, adequate
information to assess compliance;
``(B) avoiding unnecessary or unwarranted
administrative effort and expense on the part of the
Postal Service; and
``(C) protecting the confidentiality of information
that is commercially sensitive or is exempt from public
disclosure under section 552(b) of title 5.
``(2) Revised requirements.--The Commission may, on its own
motion or on request of any interested party, initiate
proceedings (to be conducted in accordance with regulations
that the Commission shall prescribe) to improve the quality,
accuracy, or completeness of Postal Service data required by
the Commission under this subsection whenever it shall appear
that--
``(A) the attribution of costs or revenues to
property or services under this chapter has become
significantly inaccurate or can be significantly
improved;
``(B) the quality of service data provided to the
Commission for annual reports 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.
``(d) Confidential Information.--
``(1) In general.--If the Postal Service determines that
any document or portion of a document, or other matter, which
it provides to the Postal Regulatory Commission in a nonpublic
annex under this section contains information which is
described in section 410(c) of this title, or exempt from
public disclosure under section 552(b) of title 5, the Postal
Service shall, at the time of providing such matter to the
Commission, notify the Commission of its determination, in
writing, and describe with particularity the documents (or
portions of documents) or other matter for which
confidentiality is sought and the reasons therefor.
``(2) Treatment.--Any information or other matter described
in paragraph (1) to which the Commission gains access under
this section shall be subject to paragraphs (2) and (3) of
section 504(g) in the same way as if the Commission had
received notification with respect to such matter under section
504(g)(1).
``(e) Annual Compliance Determination.--
``(1) Opportunity for public comment.--After receiving the
reports required under subsection (a) for any year, the Postal
Regulatory Commission shall promptly provide an opportunity for
comment on such reports by any interested party, and an officer
of the Commission who shall be required to represent the
interests of the general public.
``(2) Determination of compliance or noncompliance.--Not
later than 90 days after receiving the submissions required
under subsection (a) with respect to a year, the Postal
Regulatory Commission shall make a written determination as to
whether any nonpostal activities during such year were or were
not in compliance with applicable provisions of this chapter
(or regulations promulgated under this chapter). The Postal
Regulatory Commission shall issue a determination of
noncompliance if the requirements for coverage of attributable
costs are not met. If, with respect to a year, no instance of
noncompliance is found to have occurred in such year, the
written determination shall be to that effect.
``(3) Noncompliance.--If, for a year, a timely written
determination of noncompliance is made under this chapter, the
Postal Regulatory Commission shall take appropriate action. If
the requirements for coverage of attributable costs specified
by this chapter are not met, the Commission shall, within 60
days after the determination, prescribe remedial action to
restore compliance as soon as practicable, which shall also
include the full restoration of revenue shortfalls during the
following fiscal year. The Commission may order the Postal
Service to discontinue a nonpostal service under section 3703
or 3704 that persistently fails to meet cost coverage
requirements.
``(4) Deliberate noncompliance.--In addition, in cases of
deliberate noncompliance by the Postal Service with the
requirements of this chapter, the Postal Regulatory Commission
may order, based on the nature, circumstances, extent, and
seriousness of the noncompliance, a fine (in the amount
specified by the Commission in its order) for each incidence of
such noncompliance. All receipts from fines imposed under this
subsection shall be deposited in the general fund of the
Treasury of the United States.''.
(2) Clerical amendment.--The table of chapters at the
beginning of part IV is amended by adding after the item
relating to chapter 36 the following:
``37. Nonpostal Services.................................... 3701''.
(b) Conforming Amendments.--
(1) Section 404(e).--Section 404(e) is amended by adding at
the end the following:
``(6) Licensing which, before the date of enactment of this
paragraph, has been authorized by the Postal Regulatory Commission for
continuation as a nonpostal service may not be used for any purpose
other than--
``(A) to continue to provide licensed mailing and shipping
supplies offered as of June 23, 2011; or
``(B) to license other goods, products, or services, the
primary purpose of which is to promote and enhance the image or
brand of the Postal Service.
``(7) Nothing in this section shall be considered to prevent the
Postal Service from establishing nonpostal products and services that
are expressly authorized by chapter 37.''.
(2) Section 409.--Section 409(f) is amended by inserting at
the end the following:
``(7) The provisions of this section shall not apply to any outdoor
advertising structure or sign constructed, installed, operated, or
maintained on a facility or asset owned or operated by the Postal
Service except in a jurisdiction in which posting of off premise
advertising signs for all persons, entities, governmental agencies, and
others is prohibited by law.''.
(3) Section 411.--The last sentence of section 411 is
amended by striking ``including reimbursability'' and inserting
``including reimbursability within the limitations of chapter
37''.
(4) Treatment of existing nonpostal services.--All
individual nonpostal services, provided directly or through
licensing, that are continued pursuant to section 404(e) of
title 39, United States Code, shall be considered to be
expressly authorized by chapter 37 of such title (as added by
subsection (a)(1)) and shall be subject to the requirements of
such chapter.
SEC. 405. ALASKA BYPASS MAIL MODERNIZATION.
(a) Fair Competition for Alaska Bypass Mail.--
(1) In general.--Section 5402 is amended--
(A) in subsection (g)(4)--
(i) in subparagraph (A), by striking
``existing'';
(ii) in subparagraph (B)--
(I) in the matter preceding clause
(i), by striking ``an existing mainline
carrier'' and inserting ``a carrier
permitted under subparagraph (A)''; and
(II) in clause (i), by striking
``existing mainline carriers'' and
inserting ``mainline carriers providing
service''; and
(iii) in subparagraph (C), by striking
``existing'';
(B) in subsection (g)(5)--
(i) in subparagraph (A), by striking
``new'';
(ii) in subparagraph (B), by striking
``new''; and
(iii) in subparagraph (C), by striking
``new'';
(C) in subsection (h)(3)(A), by striking ``new or
existing''; and
(D) in subsection (i)(3), by striking ``new''.
(2) Conforming amendment.--Paragraphs (12) and (15) of
section 5402(a) are repealed.
(b) Reduction of Alaska Bypass Mail Subsidy.--
(1) In general.--Chapter 54 is amended by adding at the end
the following:
``Sec. 5404. Reduction of Alaska bypass mail subsidy
``(a) Competitive Product Classification.--
``(1) In general.--Except as provided in this section,
Alaska bypass mail service under section 5402 shall be treated
as a separate competitive product for all purposes.
``(2) Transfer prohibited.--No part of Alaska bypass mail
service may be transferred to the market-dominant category of
mail under section 3642.
``(3) Limitations.--Alaska bypass mail service shall not be
treated as a competitive product for purposes of the
implementation of sections 3633(a) and 3634.
``(b) Minimum Cost Coverage.--
``(1) In general.--The Postal Service shall establish and
maintain rates and fees for matter sent by Alaska bypass mail
service--
``(A) for fiscal year 2014, that cover at least 30
percent of the costs attributable to Alaska bypass mail
service in that fiscal year;
``(B) for fiscal year 2015, that cover at least 35
percent of the costs attributable to Alaska bypass mail
service in that fiscal year;
``(C) for fiscal year 2016, that cover at least 40
percent of the costs attributable to Alaska bypass mail
service in that fiscal year;
``(D) for fiscal year 2017, that cover at least 45
percent of the costs attributable to Alaska bypass mail
service in that fiscal year; and
``(E) for fiscal year 2018 and for each fiscal year
thereafter, that cover at least 50 percent of the costs
attributable to Alaska bypass mail service in the
applicable fiscal year.
``(2) Costs attributable.--The costs attributable to Alaska
bypass mail service for a fiscal year shall include all the
direct and indirect costs of Alaska bypass mail service during
that fiscal year that are attributable to that service through
reliably identified causal relationships.
``(3) Institutional costs.--Costs that can be attributed to
Alaska bypass mail service may not be classified as
institutional costs of the Postal Service.
``(c) Compliance.--
``(1) Annual review.--At least once each fiscal year, the
Postal Regulatory Commission shall determine whether the Postal
Service is in compliance with the requirements under subsection
(b).
``(2) Remedial actions.--If, under paragraph (1), the
Postal Regulatory Commission determines that the Postal Service
has not complied with the requirements under subsection (b)
with respect to a fiscal year, the Commission shall prescribe,
not later than 60 days after making such determination, actions
to ensure--
``(A) the establishment and maintenance of rates
and fees for Alaska bypass mail service that recover
any costs required to have been covered for such fiscal
year under subsection (b), but that were not covered,
by the date that is not later than the last day of the
fiscal year that follows such fiscal year; and
``(B) compliance with the requirements under
subsection (b) in subsequent fiscal years.
``(3) Limitation.--The Postal Regulatory Commission may not
order the Postal Service to discontinue Alaska bypass mail
service.
``(4) Regulations.--Not later than 90 days after the date
of enactment of this subsection, the Postal Regulatory
Commission shall issue regulations to implement this
subsection.''.
(2) Clerical amendment.--The table of sections for chapter
54 is amended by adding at the end the following:
``5404. Reduction of Alaska bypass mail subsidy.''.
SEC. 406. APPROPRIATIONS MODERNIZATION.
(a) In General.--Section 2401 is amended by striking subsections
(b) through (d).
(b) Effective Date.--The amendment made by subsection (a) shall be
effective with respect to fiscal years beginning after the date of
enactment of this Act.
(c) Conforming Amendment.--(1) Section 3627 is repealed.
(2) The table of sections for chapter 36 is amended by striking the
item relating to section 3627.
SEC. 407. ENHANCED PRODUCT INNOVATION.
(a) Dollar-Amount Limitation Relating to Market Tests of
Experimental Products.--Section 3641(e)(1) is amended by striking
``$10,000,000'' and inserting ``$50,000,000''.
(b) Dollar-Amount Limitation Relating to Exemption Authority.--
Section 3641(e)(2) is amended by striking ``$50,000,000'' and inserting
``$100,000,000''.
TITLE V--POSTAL SERVICE FINANCE
SEC. 501. TREATMENT OF POSTAL SERVICE POSTEMPLOYMENT BENEFIT FUNDING
PROJECTED SURPLUSES.
Section 8423(b)(4) of title 5, United States Code, is amended by
adding at the end the following:
``(C) Not later than 30 days after the end of each
fiscal year, the Office of Personnel Management shall
transfer from Postal Service Federal Employee
Retirement System monies within the Civil Service
Retirement and Disability Fund to the Postal Service
Retiree Health Benefits Fund an amount equal to the
negative supplemental liability (if any), as calculated
under paragraph (1)(B), for the most recent fiscal year
available, less the sum of--
``(i) the Postal supplemental liability,
calculated under section 8348(h), for the same
fiscal year (if any); and
``(ii) any contribution required by this
section that the Postal Service has not made
between the close of the fiscal year of the
calculation under paragraph (1)(B) and the
close of the most recent fiscal year, as
determined by the Office of Personnel
Management.''.
SEC. 502. RETIREE HEALTH BENEFIT LIABILITY PAYMENT SCHEDULE.
(a) In General.--Subsection 8909a(d) of title 5, United States
Code, is amended--
(1) in paragraph (2)(B), by striking ``2017'' and inserting
``2015''; and
(2) in paragraph (3)--
(A) in subparagraph (A)--
(i) in clause (iii), by adding ``and'' at
the end;
(ii) in clause (iv), by striking the
semicolon at the end and inserting a period;
and
(iii) by striking clauses (v) through (x);
and
(B) in subparagraph (B), by striking ``2017'' and
inserting ``2015''.
(b) Conforming Amendment.--Section 8906(g)(2)(A) of title 5, United
States Code, is amended by striking ``2016'' and inserting ``2014''.
(c) Technical Correction.--The heading for section 8909a of title
5, United States Code, is amended by striking ``Benefit'' and inserting
``Benefits''.
SEC. 503. SUPPLEMENTARY BORROWING AUTHORITY DURING A CONTROL PERIOD.
(a) In General.--Chapter 20 is amended by adding after section 2011
the following:
``Sec. 2012. Supplementary borrowing authority
``(a) Supplementary Borrowing Authority.--Upon the commencement of
the control period, subject to the approval of the Authority, the
Postal Service is authorized to borrow money and issue and sell such
obligations as may be necessary to carry out the purposes of this
title, to the same extent, in the same manner, and subject to the same
terms and conditions as if the maximum amount allowable under the
provisions of section 2005(a)(2) for the fiscal year involved were
equal to the maximum amount which (but for this section) would
otherwise be allowable under such provisions, increased by
$5,000,000,000.
``(b) Sunset.--The authority to borrow money and to issue and sell
obligations under subsection (a) shall cease to be available after
September 30, 2022.
``(c) Deposit.--Any amounts received under this section shall be
deposited in the Postal Service Fund.
``(d) Properties To Be Set Aside.--Notwithstanding section
2005(b)(2), the Postal Service shall take such measures as may be
necessary and appropriate so that, during any period in which the
Postal Service is using supplemental borrowing authority under
subsection (a), a sufficient amount of real property has been pledged
or otherwise set aside by the Postal Service to carry out subsection
(e).
``(e) Outstanding Supplemental Debt Reduction.--
``(1) In general.--In the case of any full fiscal year in
which the Postal Service borrows funds pursuant to subsection
(a), the Postal Service shall, not later than September 30 of
such fiscal year, deposit into the Postal Service Fund an
amount such that the total obligations accrued and outstanding
pursuant to subsection (a) are, as of the close of such fiscal
year, at least 20 percent less than the total obligations so
accrued and outstanding as of the start of such fiscal year.
``(2) Sense of congress.--It is the sense of Congress that,
to achieve the requirement of paragraph (1), the Postal Service
should dispose of such real property as may be necessary.
``(f) Definitions.--For purposes of this section--
``(1) the term `Authority' means the Postal Service
Financial Responsibility and Management Assistance Authority,
established in title II of the Postal Reform Act of 2013; and
``(2) the term `control period' has the meaning given such
term in section 202(b)(1) of such Act.''.
(b) Clerical Amendment.--The table of sections for chapter 20 is
amended by adding at the end the following:
``2012. Supplemental borrowing authority.''.
SEC. 504. POSTAL SERVICE DELIVERY-POINT MODERNIZATION FUND.
(a) In General.--Chapter 20 is further amended by adding after
section 2012 (as added by section 503(a)) the following:
``Sec. 2013. Postal Service Delivery-Point Modernization Fund
``(a) Establishment.--There is established within the Treasury of
the United States a revolving fund to be known as the `Postal Service
Delivery-Point Modernization Fund', which shall be available without
fiscal year limitation pursuant to the requirements of this section.
``(b) Funding.--
``(1) Authorization.--The Postal Service is authorized to
borrow money and to issue and sell such obligations as it
determines necessary solely to carry out the purposes of
section 3962 3692. The aggregate amount of obligations issued
by the Postal Service which may be outstanding at any one time
under this paragraph shall not exceed $1,000,000,000.
``(2) Applicability of section 2005.--The provisions of
subsections 2005(b), (c), and (d) shall apply to obligations
issued under this subsection.
``(3) Deposit.--Any amounts received by the Postal Service
as a result of paragraph (1) shall be deposited in the Postal
Service Delivery-Point Modernization Fund.
``(c) Sunset.--The authority to borrow money and to issue and sell
obligations under subsection (b) shall cease to be available after
September 30, 2023.
``(d) Budgetary Treatment.--The receipts and disbursements of the
Postal Service Delivery-Point Modernization Fund shall be accorded the
same budgetary treatment as is accorded to receipts and disbursements
of the Postal Service Fund under section 2009a.
``(e) Termination of Fund.--On September 30, 2023, any funds
remaining in the Postal Service Delivery-Point Modernization Fund shall
be used to satisfy any remaining obligations under subsection (b)(1),
and any funds in excess of such obligations shall be deposited in the
Postal Service Fund. After any excess funds have been so deposited, the
Postal Service Delivery-Point Modernization Fund shall be
terminated.''.
(b) Clerical Amendment.--The table of sections for chapter 20 is
amended by adding after the item relating to section 2012 (as added by
section 503(b)) the following:
``2013. Postal Service Delivery-Point Modernization Fund.''.
SEC. 505. SPECIFIC RETIREMENT LIABILITY CALCULATIONS RELATING TO THE
POSTAL SERVICE.
(a) Federal Employees Retirement System.--Section 8423(a) of title
5, United States Code, is amended--
(1) in paragraph (1)--
(A) in subparagraph (A)--
(i) in clause (i), by striking
``subparagraph (B)),'' and inserting
``subparagraph (B) or (C)),''; and
(ii) in clause (ii), by striking ``and''
after the semicolon;
(B) in subparagraph (B)(ii), by striking the period
at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(C) the product of--
``(i) the normal-cost percentage, as determined for
employees (other than employees covered by subparagraph
(B)) of the United States Postal Service under
paragraph (5), multiplied by
``(ii) the aggregate amount of basic pay payable by
the United States Postal Service, for the period
involved, to employees of the United States Postal
Service.''; and
(2) by adding at the end the following:
``(5)(A) In determining the normal-cost percentage for employees of
the United States Postal Service for purposes of paragraph (1)(C), the
Office--
``(i) shall use demographic factors specific to such
employees, unless such data cannot be generated; and
``(ii) may use economic assumptions regarding wage and
salary growth that reflect the specific past, and likely
future, pay for such employees.
``(B) The United States Postal Service shall provide any data or
projections the Office requires in order to determine the normal-cost
percentage for employees of the United States Postal Service,
consistent with subparagraph (A).
``(C) The Office shall review the determination of the normal-cost
percentage for employees of the United States Postal Service and make
such adjustments as the Office considers necessary--
``(i) upon request of the United States Postal Service, but
not more frequently than once each fiscal year; and
``(ii) at such other times as the Office considers
appropriate.
``(6) For the purpose of carrying out subsection (b)(1)(B), and
consistent with paragraph (5), for fiscal year 2013, and each fiscal
year thereafter, the Office--
``(A) shall use demographic factors specific to current and
former employees of the United States Postal Service, unless
such data cannot be generated; and
``(B) may use economic assumptions regarding wage and
salary growth that reflect the specific past, and likely
future, pay for current employees of the United States Postal
Service.''.
(b) Civil Service Retirement System.--Section 8348(h) of title 5,
United States Code, is amended by adding at the end the following:
``(4) For the purpose of carrying out paragraph (1), consistent
with section 8423(b)(1)(B), for fiscal year 2013, and each fiscal year
thereafter, the Office--
``(A) shall use demographic factors specific to current and
former employees of the United States Postal Service, unless
such data cannot be generated; and
``(B) may use economic assumptions regarding wage and
salary growth that reflect the specific past, and likely
future, pay for current employees of the United States Postal
Service.''.
TITLE VI--POSTAL CONTRACTING REFORM
SEC. 601. CONTRACTING PROVISIONS.
(a) In General.--Part I is amended by adding at the end the
following:
``CHAPTER 7--CONTRACTING PROVISIONS
``Sec.
``701. Definitions.
``702. Advocate for competition.
``703. Delegation of contracting authority.
``704. Posting of noncompetitive purchase requests for noncompetitive
contracts.
``705. Review of ethical issues.
``706. Ethical restrictions on participation in certain contracting
activity.
``Sec. 701. Definitions
``In this chapter--
``(1) the term `contracting officer' means an employee of a
covered postal entity who has authority to enter into a postal
contract;
``(2) the term `covered postal entity' means--
``(A) the Postal Service; or
``(B) the Postal Regulatory Commission;
``(A)
``(3) the term `head of a covered postal entity' means--
``(A) in the case of the Postal Service, the
Postmaster General; or
``(B) in the case of the Postal Regulatory
Commission, the Chairman of the Postal Regulatory
Commission;
``(4) the term `postal contract' means--
``(A) in the case of the Postal Service, any
contract (including any agreement or memorandum of
understanding) entered into by the Postal Service for
the procurement of goods or services; or
``(B) in the case of the Postal Regulatory
Commission, any contract (including any agreement or
memorandum of understanding) in an amount exceeding the
simplified acquisition threshold (as defined in section
134 of title 41 and adjusted under section 1908 of such
title) entered into by the Postal Regulatory Commission
for the procurement of goods or services; and
``(5) the term `senior procurement executive' means the
senior procurement executive of a covered postal entity.
``Sec. 702. Advocate for competition
``(a) Establishment and Designation.--
``(1) There is established in each covered postal entity an
advocate for competition.
``(2) The head of each covered postal entity shall
designate for the covered postal entity 1 or more officers or
employees (other than the senior procurement executive) to
serve as the advocate for competition.
``(b) Responsibilities.--The advocate for competition of a covered
postal entity shall--
``(1) be responsible for promoting--
``(A) the contracting out of functions of the
covered postal entity that the private sector can
perform equally well or better, and at lower cost; and
``(B) competition to the maximum extent practicable
consistent with obtaining best value by promoting the
acquisition of commercial items and challenging
barriers to competition;
``(2) review the procurement activities of the covered
postal entity; and
``(3) prepare and transmit the annual report required under
subsection (c).
``(c) Annual Report.--
``(1) Preparation.--The advocate for competition of a
covered postal entity shall prepare an annual report describing
the following:
``(A) The activities of the advocate under this
section.
``(B) Initiatives required to promote contracting
out and competition.
``(C) Barriers to contracting out and competition.
``(D) In the case of the report prepared by the
competition advocate of the Postal Service, the number
of waivers made by the Postal Service under section
704(c).
``(2) Transmission.--The report under this subsection shall
be transmitted--
``(A) to Congress;
``(B) to the head of the postal entity;
``(C) to the senior procurement executive of the
entity;
``(D) in the case of the competition advocate of
the Postal Service, to each member of the Postal
Service Board of Governors; and
``(E) in the case of the competition advocate of
the Postal Regulatory Commission, to each of the
Commissioners of the Commission.
``Sec. 703. Delegation of contracting authority
``(a) In General.--
``(1) Policy.--Not later than 60 days after the date of
enactment of this chapter, the head of each covered postal
entity shall issue a policy on contracting officer delegations
of authority for postal contracts for the covered postal
entity.
``(2) Contents.--The policy issued under paragraph (1)
shall require that--
``(A) notwithstanding any delegation of authority
with respect to postal contracts, the ultimate
responsibility and accountability for the award and
administration of postal contracts resides with the
senior procurement executive; and
``(B) a contracting officer shall maintain an
awareness of and engagement in the activities being
performed on postal contracts of which that officer has
cognizance, notwithstanding any delegation of authority
that may have been executed.
``(b) Posting of Delegations.--
``(1) In general.--The head of each covered postal entity
shall make any delegation of authority for postal contracts
outside the functional contracting unit readily available and
accessible on the Web site of the covered postal entity.
``(2) Effective date.--This paragraph shall apply to any
delegation of authority made on or after 30 days after the date
of enactment of this chapter.
``Sec. 704. Posting of noncompetitive purchase requests for
noncompetitive contracts
``(a) Posting Required.--
``(1) Postal regulatory commission.--The Postal Regulatory
Commission shall make the noncompetitive purchase request for
any noncompetitive award for any contract (including any
agreement or memorandum of understanding) entered into by the
Postal Regulatory Commission for the procurement of goods and
services, in an amount of $20,000 or more, including the
rationale supporting the noncompetitive award, publicly
available on the Web site of the Postal Regulatory Commission--
``(A) not later than 14 days after the date of the
award of the noncompetitive contract; or
``(B) not later than 30 days after the date of the
award of the noncompetitive contract, if the basis for
the award was a compelling business interest.
``(2) Postal service.--The Postal Service shall make the
noncompetitive purchase request for any noncompetitive award of
a postal contract in an amount of $250,000 or more, including
the rationale supporting the noncompetitive award, publicly
available on the Web site of the Postal Service--
``(A) not later than 14 days after the date of the
award; or
``(B) not later than 30 days after the date of the
award, if the basis for the award was a compelling
business interest.
``(3) Adjustments to the posting threshold for the postal
service.--
``(A) Review and determination.--Not later than
January 31 of each year, the Postal Service shall--
``(i) review the $250,000 threshold
established under paragraph (2); and
``(ii) based on any change in the Consumer
Price Index for All Urban Consumers of the
Department of Labor, determine whether an
adjustment to the threshold shall be made.
``(B) Amount of adjustments.--An adjustment under
subparagraph (A) shall be made in increments of $5,000.
If the Postal Service determines that a change in the
Consumer Price Index for a year would require an
adjustment in an amount that is less than $5,000, the
Postal Service may not make an adjustment to the
threshold for the year.
``(4) Effective date.--This subsection shall apply to any
noncompetitive contract awarded on or after the date that is 90
days after the date of enactment of this chapter.
``(b) Public Availability.--
``(1) In general.--Subject to paragraph (2), the
information required to be made publicly available by a covered
postal entity under subsection (a) shall be readily accessible
on the Web site of the covered postal entity.
``(2) Protection of proprietary information.--A covered
postal entity shall--
``(A) carefully screen any description of the
rationale supporting a noncompetitive award required to
be made publicly available under subsection (a) to
determine whether the description includes proprietary
data (including any reference or citation to the
proprietary data) or security-related information; and
``(B) remove any proprietary data or security-
related information before making publicly available a
description of the rationale supporting a
noncompetitive award.
``(c) Waivers.--
``(1) Waiver permitted.--If the Postal Service determines
that making a noncompetitive purchase request for a postal
contract of the Postal Service publicly available would risk
placing the Postal Service at a competitive disadvantage
relative to a private sector competitor, the senior procurement
executive, in consultation with the advocate for competition of
the Postal Service, may waive the requirements under subsection
(a).
``(2) Form and content of waiver.--
``(A) Form.--A waiver under paragraph (1) shall be
in the form of a written determination placed in the
file of the contract to which the noncompetitive
purchase request relates.
``(B) Content.--A waiver under paragraph (1) shall
include--
``(i) a description of the risk associated
with making the noncompetitive purchase request
publicly available; and
``(ii) a statement that redaction of
sensitive information in the noncompetitive
purchase request would not be sufficient to
protect the Postal Service from being placed at
a competitive disadvantage relative to a
private sector competitor.
``(3) Delegation of waiver authority.--The Postal Service
may not delegate the authority to approve a waiver under
paragraph (1) to any employee having less authority than the
senior procurement executive.
``Sec. 705. Review of ethical issues
``If a contracting officer identifies any ethical issues relating
to a proposed contract and submits those issues and that proposed
contract to the designated ethics official for the covered postal
entity before the awarding of that contract, that ethics official
shall--
``(1) review the proposed contract; and
``(2) advise the contracting officer on the appropriate
resolution of ethical issues.
``Sec. 706. Ethical restrictions on participation in certain
contracting activity
``(a) Definitions.--In this section--
``(1) the term `covered employee' means--
``(A) a contracting officer; or
``(B) any employee of a covered postal entity whose
decisionmaking affects a postal contract as determined
by regulations prescribed by the head of a covered
postal entity;
``(2) the term `final conviction' means a conviction,
whether entered on a verdict or plea, including a plea of nolo
contendere, for which a sentence has been imposed; and
``(3) the term `covered relationship' means a covered
relationship described in section 2635.502(b)(1) of title 5,
Code of Federal Regulations, or any successor thereto.
``(b) In General.--
``(1) Regulations.--The head of each covered postal entity
shall prescribe regulations that--
``(A) require a covered employee to include in the
file of any noncompetitive purchase request for a
noncompetitive postal contract a written certification
that--
``(i) discloses any covered relationship of
the covered employee; and
``(ii) states that the covered employee
will not take any action with respect to the
noncompetitive purchase request that affects
the financial interests of a friend, relative,
or person with whom the covered employee is
affiliated in a nongovernmental capacity, or
otherwise gives rise to an appearance of the
use of public office for private gain, as
described in section 2635.702 of title 5, Code
of Federal Regulations, or any successor
thereto;
``(B) require a contracting officer to consult with
the ethics counsel for the covered postal entity
regarding any disclosure made by a covered employee
under subparagraph (A)(i), to determine whether
participation by the covered employee in the
noncompetitive purchase request would give rise to a
violation of part 2635 of title 5, Code of Federal
Regulations (commonly referred to as the Standards of
Ethical Conduct for Employees of the Executive Branch),
or any successor thereto;
``(C) require the ethics counsel for a covered
postal entity to review any disclosure made by a
contracting officer under subparagraph (A)(i) to
determine whether participation by the contracting
officer in the noncompetitive purchase request would
give rise to a violation of part 2635 of title 5, Code
of Federal Regulations (commonly referred to as the
Standards of Ethical Conduct for Employees of the
Executive Branch), or any successor thereto;
``(D) under subsections (d) and (e) of section
2635.502 of title 5, Code of Federal Regulations, or
any successor thereto, require the ethics counsel for a
covered postal entity to--
``(i) authorize a covered employee that
makes a disclosure under subparagraph (A)(i) to
participate in the noncompetitive postal
contract; or
``(ii) disqualify a covered employee that
makes a disclosure under subparagraph (A)(i)
from participating in the noncompetitive postal
contract;
``(E) require a contractor to timely disclose to
the contracting officer in a bid, solicitation, award,
or performance of a postal contract any conflict of
interest with a covered employee; and
``(F) include authority for the head of the covered
postal entity to grant a waiver or otherwise mitigate
any organizational or personal conflict of interest, if
the head of the covered postal entity determines that
the waiver or mitigation is in the best interests of
the covered postal entity.
``(2) Posting of waivers.--Not later than 30 days after the
head of a covered postal entity grants a waiver described in
paragraph (1)(F), the head of the covered postal entity shall
make the waiver publicly available on the Web site of the
covered postal entity.
``(c) Contract Voidance and Recovery.--
``(1) Unlawful conduct.--In any case in which there is a
final conviction for a violation of any provision of chapter 11
of title 18 relating to a postal contract, the head of a
covered postal entity may--
``(A) void that contract; and
``(B) recover the amounts expended and property
transferred by the covered postal entity under that
contract.
``(2) Obtaining or disclosing procurement information.--
``(A) In general.--In any case in which a
contractor under a postal contract fails to timely
disclose a conflict of interest to the appropriate
contracting officer as required under the regulations
promulgated under subsection (b)(1)(E), the head of a
covered postal entity may--
``(i) void that contract; and
``(ii) recover the amounts expended and
property transferred by the covered postal
entity under that contract.
``(B) Conviction or administrative determination.--
A case described under subparagraph (A) is any case in
which--
``(i) there is a final conviction for an
offense punishable under section 2105 of title
41; or
``(ii) the head of a covered postal entity
determines, based upon a preponderance of the
evidence, that the contractor or someone acting
for the contractor has engaged in conduct
constituting an offense punishable under
section 2105 of such title.''.
(b) Clerical Amendment.--The table of chapters at the beginning of
part I is amended by adding at the end the following:
``7. Contracting Provisions................................. 701''.
SEC. 602. TECHNICAL AMENDMENT TO DEFINITION.
Section 7101(8) of title 41, United States Code, is amended--
(1) by striking ``and'' at the end of subparagraph (C);
(2) by striking the period at the end of subparagraph (D)
and inserting ``; and''; and
(3) by adding at the end the following:
``(E) the United States Postal Service and the
Postal Regulatory Commission.''.
SEC. 603. CONTRACT LIMITATION.
(a) In General.--Each covered contract entered into within 6 months
after the date on which the Postal Service commences any reduction in
force shall include a requirement that the contractor provide a
preference in the hiring of qualifying individuals for full-time
positions created by or as a result of the contract.
(b) Covered Contract.--For the purposes of this section, the term
``covered contract'' means a contract--
(1) for an amount greater than $250,000;
(2) entered into by the Postal Service--
(A) within 2 years after the date of enactment of
this Act;
(B) with a person other than a small business
concern; and
(C) for the procurement of goods or services; and
(3) for which such person will hire 10 or more individuals.
(c) Qualifying Individual.--For the purposes of this section, the
term ``qualifying individual'' means an individual who--
(1) is separated from the Postal Service due to a reduction
in force;
(2) at the time of separation--
(A) is a career postal employee; and
(B) is not a retirement-eligible individual;
(3) as of the date of hire (as referred to in subsection
(b)(3)) has been continuously unemployed for a period not
exceeding 78 weeks; and
(4) is qualified for the position involved.
(d) Retirement-Eligible Individual.--For purposes of this section,
the term ``retirement-eligible individual'', as used with respect to a
qualifying individual, means an individual who, at the time of such
individual's separation (as described in subsection (c)(1)), satisfies
the age and service requirements for entitlement to an annuity under--
(1) subsection (a), (b), (c), or (f) of section 8336 of
title 5, United States Code; or
(2) subsection (a), (b), (c), (d), or (g) of section 8412
of title 5, United States Code.
(e) Small Business Concern.--For purposes of this section, the term
``small business concern'' means a small business as defined pursuant
to section 3 of the Small Business Act and relevant regulations
prescribed pursuant thereto.
TITLE VII--OTHER PROVISIONS
SEC. 701. POSTAL FACILITY DESIGNATIONS.
(a) Facilities Designated.--
(1) Officer tommy decker memorial post office.--
(A) Designation.--The facility of the United States
Postal Service located at 14 Red River Avenue North in
Cold Spring, Minnesota, shall be known and designated
as the ``Officer Tommy Decker Memorial Post Office''.
(B) References.--Any reference in a law, map,
regulation, document, paper, or other record of the
United States to the facility referred to in subsection
(a) shall be deemed to be a reference to the ``Officer
Tommy Decker Memorial Post Office''.
(2) Richard k. salick post office.--
(A) Designation.--The facility of the United States
Postal Service located at 500 North Brevard Avenue in
Cocoa Beach, Florida, shall be known and designated as
the ``Richard K. Salick Post Office''.
(B) References.--Any reference in a law, map,
regulation, document, paper, or other record of the
United States to the facility referred to in subsection
(a) shall be deemed to be a reference to the ``Richard
K. Salick Post Office''.
(3) National park ranger margaret anderson post office.--
(A) Designation.--The facility of the United States
Postal Service located at 103 Center Street West in
Eatonville, Washington, shall be known and designated
as the ``National Park Ranger Margaret Anderson Post
Office''.
(B) References.--Any reference in a law, map,
regulation, document, paper, or other record of the
United States to the facility referred to in subsection
(a) shall be deemed to be a reference to the ``National
Park Ranger Margaret Anderson Post Office''.
(4) Judge shirley a. tolentino post office building.--
(A) Designation.--The facility of the United States
Postal Service located at 369 Martin Luther King Jr.
Drive in Jersey City, New Jersey, shall be known and
designated as the ``Judge Shirley A. Tolentino Post
Office Building''.
(B) References.--Any reference in a law, map,
regulation, document, paper, or other record of the
United States to the facility referred to in subsection
(a) shall be deemed to be a reference to the ``Judge
Shirley A. Tolentino Post Office Building''.
(b) Sense of Congress.--It is the sense of Congress that additional
postal facility designations be included in postal reform legislation.
SEC. 702. RESPONSE TO SUBMISSIONS BY THE POSTAL SERVICE.
(a) In General.--Chapter 5 is amended by adding at the end the
following:
``Sec. 506. Submissions by the Postal Service to the Postal Regulatory
Commission
``Whenever the Postal Service submits to the Postal Regulatory
Commission any notice, petition, request, or other filing intended to
initiate a new proceeding before the Commission, the Commission shall
make an initial determination that such filing presents adequate
information upon which the Commission may make its decision or advisory
opinion. If the Commission's initial determination is that the Postal
Service's filing is inadequate, it shall dismiss the filing without
prejudice.''.
(b) Clerical Amendment.--The table of sections for chapter 5 is
amended by adding at the end the following:
``506. Submissions by the Postal Service to the Postal Regulatory
Commission.''.
<DELETED>SEC. 703. FAIR STAMP-EVIDENCING COMPETITION.</DELETED>
<DELETED> Section 404(a) is amended--</DELETED>
<DELETED> (1) in paragraph (2), by striking ``or'' at the
end;</DELETED>
<DELETED> (2) in paragraph (3), by striking the period at
the end and inserting ``; or''; and</DELETED>
<DELETED> (3) by adding at the end the following:</DELETED>
<DELETED> ``(4) offer to the public any postage-evidencing
product or service that does not comply with any rule or
regulation that would be applicable to such product or service
if the product or service were offered by a private
company.''.</DELETED>
SEC. 703. FAIR STAMP-EVIDENCING COMPETITION.
Section 404a(a) is further amended by--
(1) in paragraph (3), by striking ``or'' (as added by
section 103(f)(1));
(2) in paragraph (4) (as added 103(f)(4)), by striking the
period and inserting ``; or''; and
(3) by adding at the end the following:
``(5) offer to the public any postage-evidencing product or
service that does not comply with any rule or regulation that
would be applicable to such product or service if the product
or service were offered by a private company.''.
SEC. 704. USPS INNOVATION OFFICER AND ACCOUNTABILITY.
(a) In General.--Chapter 2 is amended by adding at the end the
following:
``SEC. 209. USPS INNOVATION OFFICER AND ACCOUNTABILITY.
``(a) In General.--There shall be in the Postal Service a Chief
Innovation Officer selected by the Postmaster General who shall have
proven expertise and a record of success in 1 or more of the following:
postal and shipping industry, innovation product research and
development, marketing brand strategy, emerging communications
technology, or business process management. The Chief Innovation
Officer shall manage the Postal Service's development and
implementation of innovative postal and nonpostal products and
services.
``(b) Duties.--The Chief Innovation Officer shall have as primary
duties--
``(1) leading the development of innovative nonpostal
products and services that will maximize revenue to the Postal
Service;
``(2) developing innovative postal products and services,
particularly those that utilize emerging information
technologies, to maximize revenue to the Postal Service;
``(3) monitoring the performance of innovative products and
services and revising them as needed to meet changing market
trends; and
``(4) taking into consideration comments or advisory
opinions, if applicable, issued by the Postal Regulatory
Committee prior to the initial sale of innovative postal or
nonpostal products and services.
``(c) Designation.--
``(1) Deadline.--As soon as practicable after the date of
enactment of this section, but no later than January 1, 2014,
the Postmaster General shall designate a Chief Innovation
Officer.
``(2) Condition.--Nothing in this section shall be
construed to prohibit an individual who holds another office or
position in the Postal Service from serving as the Chief
Innovation Officer under this chapter. However, upon
appointment to the position of the Chief Innovation Officer,
such individual may not, while serving in such office,
concurrently hold any other office or position in the Postal
Service.
``(d) Innovation Strategy.--
``(1) In general.--Not later than 12 months after the date
on which the Chief Innovation Officer is designated under
subsection (c)(1), the Postmaster General shall submit to the
Committee on Homeland Security and Governmental Affairs of the
Senate and the Committee on Oversight and Government Reform of
the House of Representatives a comprehensive strategy for
maximizing revenues through innovative postal and nonpostal
products and services.
``(2) Matters to be addressed.--At a minimum, the strategy
required by this section shall address--
``(A) the specific innovative postal and nonpostal
products and services to be developed and offered by
the Postal Service, including the nature of the market
to be filled by each product and service and the likely
date by which each product and service will be
introduced;
``(B) the cost of developing and offering each
product or service;
``(C) the anticipated sales volume of each product
and service;
``(D) the anticipated revenues and profits expected
to be generated by each product and service;
``(E) the likelihood of success of each innovative
product and service as well as the risks associated
with the development and sale of each innovative
product and service;
``(F) the trends anticipated in market conditions
that may affect the success of each product and service
over the 5-year period beginning on the date such
strategy or update is submitted; and
``(G) the metrics that will be utilized to assess
the effectiveness of the innovation strategy.; and
``(H) the specific methods by which mailpiece
design analysis may be improved to speed the approval
process and promote the increased use of innovative
mailpiece design.
``(3) Strategy updates.--On January 1, 2018, and every 3
years thereafter, the Chief Innovation Officer shall submit an
update to the innovation strategy submitted under paragraph (1)
to the Committee on Homeland Security and Governmental Affairs
of the Senate, the Committee on Oversight and Government Reform
of the House of Representatives, and the Postal Regulatory
Commission.
``(e) Report on Performance.--
``(1) In general.--The Postmaster General shall submit to
the Committee on Homeland Security and Governmental Affairs of
the Senate, the Committee on Oversight and Government Reform of
the House of Representatives, and the Postal Regulatory
Commission with the President's budget submission under section
1105(a) of title 31 a report that details the Postal Service's
progress in implementing the innovation strategy.
``(2) Matters to be addressed.--At a minimum, the report
required by this section shall address--
``(A) the revenue generated by each product and
service developed through the innovation strategy and
the costs of developing and offering each such product
and service for the most recent fiscal year;
``(B) the total sales volume and revenue generated
by each product and service on a monthly basis for the
preceding year;
``(C) trends in the markets filled by each product
and service;
``(D) products and services identified in the
innovation strategy that are to be discontinued, the
date on which the discontinuance will occur, and the
reasons for the discontinuance;
``(E) alterations in products and services
identified in the innovation strategy that will be made
to meet changing market conditions, and an explanation
of how these alterations will ensure the success of the
products and services; and
``(F) the performance of the innovation strategy
according to the metrics identified in subsection
(d)(2)(G).
``(f) Comptroller General.--
``(1) In general.--The Comptroller General shall conduct a
study on the implementation of the innovation strategy not
later than 4 years after the date of enactment of this section.
``(2) Contents.--At a minimum, the Comptroller General
shall assess the effectiveness of the Postal Service in
identifying, developing, and selling innovative postal and
nonpostal products and services. The study shall also include--
``(A) an audit of the costs of developing each
innovative postal and nonpostal product and service
developed or offered by the Postal Service during the
period beginning on the date of enactment of this
section and ending 4 years after such date;
``(B) the sales volume of each such product and
service;
``(C) the revenues and profits generated by each
such product and service; and
``(D) the likelihood of continued success of each
such product and service.
``(3) Submission.--The results of the study required under
this subsection shall be submitted to the Committee on Homeland
Security and Governmental Affairs of the Senate and the
Committee on Oversight and Government Reform of the House of
Representatives.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 2 is amended by adding at the end the following:
``209. USPS innovation officer and accountability.''.
SEC. 705. POSTAL REGULATORY COMMISSION TRAVEL REPORTING.
Section 504(d) is amended--
(1) by striking ``(d)'' and inserting ``(d)(1)''; and
(2) by adding at the end the following:
``(2) Not later than 60 days after the end of each fiscal
year, the Postal Regulatory Commissioners shall submit an
itemized report describing all travel and reimbursable business
travel expenses paid to each Commissioner, including the
Chairman, when performing regulatory duties to the Committee on
Oversight and Government Reform of the House of Representatives
and the Committee on Homeland Security and Governmental Affairs
of the Senate. The report submitted under this paragraph shall
include a detailed justification for any travel or reimbursable
business travel expense that deviates from the Commission's
travel and reimbursable business travel expense policies and
guidelines.''.
Union Calendar No. 564
113th CONGRESS
2d Session
H. R. 2748
[Report No. 113-733, Part I]
_______________________________________________________________________
A BILL
To restore the financial solvency of the United States Postal Service
and to ensure the efficient and affordable nationwide delivery of mail.
_______________________________________________________________________
January 2, 2015
Reported with amendments and referred to the Committee on Education and
the Workforce for a period ending not later than January 2, 2015, for
consideration of such provisions of the bill and amendment as fall
within the jurisdiction of that committee pursuant to clause 1(e) of
rule X
January 2, 2015
The Committee on Education and the Workforce discharged; committed to
the Committee of the Whole House on the State of the Union and ordered
to be printed