[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3004 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 3004
To amend title 39, United States Code, to modernize the Postal Service
regulations, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 24, 2025
Mr. Graves introduced the following bill; which was referred to the
Committee on Oversight and Government Reform
_______________________________________________________________________
A BILL
To amend title 39, United States Code, to modernize the Postal Service
regulations, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``USPS Services Enhancement and
Regulatory Viability Expansion and Sustainability for the US Act'' or
the ``USPS SERVES US Act''.
SEC. 2. COST AND EFFICIENCY REFORMS.
(a) In General.--Section 3622(d) of title 39, United States Code,
is amended--
(1) in paragraph (1)(A), by striking ``to be set by'' and
all that follows and inserting the following: ``equal to the
amount that is the percentage change in the Consumer Price
Index for All Urban Consumers unadjusted for seasonal variation
over the most recent available 12-month period preceding the
date the Postal Service files notice of its intention to
increase rates less--
``(i) 0.5 percent; or
``(ii) such other percentage as specified
in an order by the Commission if such order
describes the reasons of the Commission for
selecting such other percentage and such order
applies such other percentage with respect to
only one such annual limitation;''; and
(2) by amending paragraph (3) to read as follows:
``(3) Revisions.--In revising the system as permitted by
subsection (a), the Postal Regulatory Commission shall make no
change which would cause the revised system to be inconsistent
with this section.''.
(b) Regulations.--Not later than 60 days after the date of the
enactment of this Act, the Postal Regulatory Commission shall issue
such regulations as are necessary to carry out section 3622(d)(1)(A) of
title 39, United States Code, as amended by this section.
SEC. 3. SANCTIONS FOR CERTAIN FAILURES OF SERVICE.
(a) In General.--Subchapter VII of chapter 36 of title 39, United
States Code, is amended by adding at the end the following new section:
``Sec. 3693. Sanctions.
``(a) In General.--If, pursuant to section 3653 or a complaint
proceeding conducted pursuant to section 3662, the Postal Regulatory
Commission determines that the Postal Service failed to meet a target
established under section 3692 and that such failure is a covered
failure, the Commission may reduce the maximum amount by which the
Postal Service may adjust the rates for the market-dominant products
affected by such failure under section 3622, except that such reduction
may not cause such maximum amount to be less than zero. In making such
determination, the Commission shall consider evidence of losses
incurred by users of the product or products concerned as a result of
the failure.
``(b) Applicability.--
``(1) In general.--A reduction under subsection (a) to the
maximum amount by which the Postal Service may adjust the rates
for a market-dominant product under section 3622 shall apply
only with respect to--
``(A) the first implementation of such an
adjustment for such market-dominant product occurring
during the period beginning on the date on which the
Postal Regulatory Commission makes such reduction and
ending on the date on which Commission determines that
the Postal Service is meeting the target established
under section 3692 with respect to which the Commission
made such reduction; and
``(B) each subsequent implementation of such an
adjustment for such market-dominant product occurring
during such period to the extent determined appropriate
by the Commission.
``(2) Subsequent implementation determination.--In making
the determination described in paragraph (1)(B) with respect to
a reduction for a failure described in subsection (a), the
Postal Regulatory Commission shall consider evidence of losses
incurred by users of each product affected by such failure.
``(c) Covered Failure Defined.--In this section, the term `covered
failure' means a failure to meet a target established under section
3692--
``(1) that is not the result of a natural disaster or
another disruptive event the cause of which was outside the
control of the Postal Service;
``(2) that has persisted for not less than one year; and
``(3) with respect to which the Postal Service does not
have a credible plan for achieving and maintaining performance
sufficient to meet the targeted level within a reasonable
time.''.
(b) Clerical Amendment.--The table of sections for chapter 36 of
title 39, United States Code, is amended by inserting after the item
relating to section 3692 the following:
``3693. Sanctions.''.
SEC. 4. IMPROVING CHANGE-IN-SERVICE PROCEDURES.
Section 3661 of title 39, United States Code, is amended--
(1) in subsection (b)--
(A) by striking ``When the'' and insert ``(1) When
the'';
(B) by striking ``advisory opinion'' and inserting
``a decision''; and
(C) by adding at the end the following new
paragraph:
``(2)(A) In the absence of a decision with respect to a
proposal under paragraph (1), if the Commission determines that
a plan or initiative of the Postal Service clearly indicates
the need for a change described in such paragraph but such plan
or initiative does not explicitly make such a change a purpose
or goal of such plan or initiative, the Commission shall order
the Postal Service to explain why the Postal Service determined
that the Postal Service did not need to submit a proposal to
the Commission under such paragraph with respect to such plan
or initiative.
``(B) An order under subparagraph (A) pursuant to a
determination of the Commission described in such
subparagraph shall include an explanation of the
reasoning for such determination.
``(C)(i) If the Commission determines that the
explanation of the Postal Service provided pursuant to
subparagraph (A) is not sufficient to support the
determination of the Postal Service that the Postal
Service did not need to submit a proposal to the
Commission under paragraph (1) with respect to a plan
or initiative, the Postal Service shall justify the
change in the nature of postal services implied by the
plan or initiative and, to the extent necessary,
justify the underlying plan or initiative in a hearing
before the Commission.
``(ii) Each hearing under clause (i) shall
be conducted in accordance with sections 556
and 556 of title 5.
``(3) Each decision of the Postal Regulatory Commission
under this subsection shall be transmitted to the Governors of
the Postal Service. The Governors may accept the decision or,
by unanimous written decision, reject the decision and adopt
the original proposal of the Postal Service, in the case of a
request by the Postal Service for a decision, or approve the
plan or initiative found by the Commission to have required a
decision under paragraph (2). The decision of the Governors
shall be a final order for purposes of section 3663 of this
title. If the Governors have not acted upon a Commission
decision within 60 days of receiving it, the Commission
decision will be deemed a final order for purposes of section
3663 of this title.''; and
(2) in subsection (c)--
(A) by inserting ``designated pursuant to section
505 of this title'' after ``officer of the
Commission''; and
(B) by striking ``his judgment'' and inserting
``the judgment of such Commissioner''.
SEC. 5. ONE RATE INCREASE ANNUALLY.
Section 3622(d)(1)(B) of title 39, United States Code, is amended
by inserting after ``amounts'' the following: ``, except that rates may
not change more frequently than once every 12 months''.
SEC. 6. LIMIT ON UNDERWATER SURCHARGES.
Section 3622(d)(2) of title 39, United States Code, is amended by
adding at the end the following new subparagraph:
``(D) Use of rate authority for non-compensatory
classes.--
``(i) Limitation.--Notwithstanding
paragraph (1)(A), the Commission may authorize
the Postal Service to increase the rates for a
non-compensatory class in excess of annual
limitation under paragraph (1)(A) if--
``(I) the change in the
attributable cost (as such term is
defined in section 3631) per piece of
mail for such class does not exceed the
annual limitation under paragraph
(1)(A), as determined by the Commission
using year-to-year comparable costing
methodologies;
``(II) in the immediately preceding
fiscal year, the Postal Service has--
``(aa) pursuant to section
3652 and without the use of any
proxy data not approved by the
Commission, directly measured
and reported the compliance of
the Postal Service with the
targets established under
section 3692 for each product
in such class for such fiscal
year; and
``(bb) met each such target
for such fiscal year; and
``(III) no target described in
subclause (II) for the immediately
preceding fiscal year was reduced from
the preceding fiscal year.
``(ii) Non-compensatory class defined.--In
this subparagraph, the term `non-compensatory
class' means a class of mail for which the
attributable costs (as defined in section
3631(b)) of the Postal Service exceed revenues
of the Postal Service attributable to such
class of mail.''.
SEC. 7. CASE-SPECIFIC OBJECTIVES.
Section 3622 of title 39, United States Code, is amended--
(1) in subsection (b), in the matter preceding paragraph
(1), by inserting ``, and all of which shall be applied to each
class or type of mail service and product'' after ``others'';
and
(2) in subsection (c), in the matter preceding paragraph
(1), by inserting after ``such system,'' the following: ``or
when evaluating whether a class or type of mail service or
product complies with the applicable provisions of this chapter
and the regulations issues under such provisions,''.
SEC. 8. RETAINED EARNINGS FROM COST SAVINGS.
Section 3622(b)(5) of title 39, United States Code, is amended by
inserting after ``retained earnings'' the following: ``resulting from
improvements in efficiency or reductions in cost only''.
SEC. 9. OFFICE OF THE CUSTOMER ADVOCATE.
(a) In General.--Section 505 of title 39, United States Code, is
amended to read as follows:
``Sec. 505. Office of the Customer Advocate
``(a) In General.--The Postal Regulatory Commission shall establish
in the Postal Regulatory Commission an Office of the Customer Advocate
(in this section referred to as the `Office').
``(b) Representation.--
``(1) In general.--The Office shall represent the interests
of the general public in all public proceedings of the
Commission, including the interests of customers of market-
dominant products and classes.
``(2) Rights and limits.--
``(A) In general.--The Office--
``(i) shall have the same right as any
interested person to lodge a complaint with or
petition the Commission, or otherwise seek to
have the Commission initiate a public
proceeding, including rulemakings; and
``(ii) is subject to the same ex parte
rules and limitations as any other litigant
with respect to communication with the
Commission, Commissioners, and the advisory
staff of the Commission.
``(B) Represent conflicting interest.--
``(i) In general.--The Office may represent
conflicting interests of the general public in
a public proceeding of the Commission to the
extent that the head of the Office determines
necessary for the Office to effectively
represent the interests of the general public
in such proceeding.
``(ii) Separate representatives.--If the
Office is representing conflicting interests of
the general public in a public proceeding of
the Commission, the head of the Office shall
ensure that such conflicting interests are
represented by different individuals to the
extent and in such manner as the head of the
Office determines necessary for the Office to
effectively represent the interests of the
general public in such proceeding.
``(3) Office autonomy.--The Commission may not terminate or
otherwise take adverse employment action against any employee
of or individual detailed to the Office based on the
representation of the interests of the general public by such
employee or detailee as an employee of or detailee to the
Office, respectively, in a public proceeding of the Commission,
except for cause.
``(c) Research Authority.--The Office may--
``(1) conduct research and policy development for the
purposes of representing the interests of the general public,
including research and policy development that is unrelated to
a specific proceeding of the Commission; and
``(2) subject to the availability of funds, obtain the
temporary or intermittent services of experts or consultants
for such purposes.
``(d) Outside Consultation.--The Office shall consult with outside
persons and organizations the postal interests of which are relevant to
the mission of the Office, including those persons and organizations
that are actual or potential litigants before the Commission.
``(e) Rate and Classification Inquiry.--The Office shall inquire
into the rates and classifications of competitive products only to the
extent necessary to evaluate compliance with sections 3622(b)(8) and
3622(b)(9) of this title, subchapter II of chapter 36 of this title,
and the regulations issued under such subchapter.
``(f) Office Staff.--The Commission shall ensure that, to the
extent practicable, the Office has employees of a sufficient quantity
and quality for the Office to effectively carry out the
responsibilities of the Office under this section, including by
maximizing the duration of the detail of individuals detailed to the
Office.''.
(b) Clerical Amendment.--The table of sections for chapter 5 of
title 39, United States Code, is amended by striking the item relating
to section 505 and inserting the following:
``505. Office of the Customer Advocate.''.
SEC. 10. COMPLAINT PROCESS IMPROVEMENT.
Section 3662 of title 39, United States Code, is amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph
(A)--
(I) by striking ``The Postal'' and
inserting ``With respect to a complaint
received under subsection (a), the
Postal''; and
(II) by striking ``, within 90 days
after receiving a complaint under
subsection (a)''; and
(ii) in subparagraph (A)--
(I) by striking clause (i) and
inserting the following:
``(i) begin proceedings on such complaint--
``(I) immediately after the
expiration of the period described in
paragraph (3) if the Commission finds
that such complaint raises material
issues of fact or law and no motion
described in clause (ii) with respect
to such complaint is filed in such
period;
``(II) immediately after the
Commission denies all motions described
in clause (ii) with respect to such
complaint that were filed during the
period described in paragraph (3) if
the Commission finds that such
complaint raises material issues of
fact or law and all such motions are
denied not later than 45 days after the
date on which the Commission received
such complaint under such subsection;
or
``(III) not later than 45 days
after the date on which the Commission
receives such complaint under such
subsection if subclause (I) and (II) do
not apply with respect to such
complaint; or''; and
(II) in clause (ii)--
(aa) by inserting before
``issue'' the following: ``if
the Commission finds that,
after consideration of any
motion asserting that such
complaint raises no material
issues of law or fact, that
such complaint raises no such
issue, upon making such
finding''; and
(bb) by inserting ``within
45 days after receiving such
complaint under such
subsection'' after ``dismissing
the complaint''; and
(B) by adding at the end the following new
paragraph:
``(3) Prompt motions.--A motion described in subparagraph
(A)(ii) with respect to a complaint may only be filed during
the 25-day period beginning on date on which such complaint is
filed, or during such shorter period as the Postal Regulatory
Commission may prescribed by regulation.''; and
(2) in subsection (c)--
(A) by striking ``or requiring'' and inserting
``requiring''; and
(B) by inserting after ``competitive products'' the
following: ``or, upon a finding that the Postal Service
has unreasonably delayed the proceeding, ordering
reimbursement consistent with section 3681''.
SEC. 11. REIMBURSEMENT OF UNLAWFUL RATES; PENALTY FOR UNREASONABLE
DELAY.
Section 3681 of title 39, United States Code, is amended--
(1) by striking ``No mailer'' and inserting ``(a) No
mailer'';
(2) by striking ``through 3664 of this title, or is
superseded by a lower rate or fee established under subchapter
II of this chapter''; and
(3) by adding at the end the following new subsection:
``(b)(1)(A) If the Postal Regulatory Commissions determines that a
rate or fee for a product is unlawful in a review conducted pursuant to
section 3653 of this title or in a complaint proceeding conducted
pursuant to section 3662 of this title, the Commission shall order the
price increase authority for such product and all other products in the
class of mail containing such product to be reduced (but not below
zero) for the next following price adjustment and each succeeding price
adjustments until the amount of foregone revenue is equal to amount of
revenue received by the Postal Service from the portion of such rate or
fee that exceeded the lawful amount such rate or fee.
``(B) In this paragraph, the term `foregone revenue' means
the difference between--
``(i) the revenue that the Postal Service would
have received from the sale of the products subject to
an order under subparagraph (A) during the period that
the Postal Service is unable to increase the prices of
such products pursuant to such order if--
``(I) the Commission had not issued such
order; and
``(II) the rate or fee for the product with
the unlawful rate or fee for which the
Commission issued such order was the maximum
lawful rate or fee for such product at the time
the Commission issued such order; and
``(ii) the revenue the Postal Service receives from
the sale of the products subject to such order during
such period.
``(2)(A) In a complaint proceeding conducted pursuant to section
3662 of this title, if the Postal Regulatory Commission finds that the
Postal Service has unreasonably delayed the proceeding, the Commission
may order a reduction in the price increase authority for the product
or products whose rate or fee it has determined to be unlawful to the
extent that the unreasonable delay caused by the Postal Service has
extended the time during which users of such product or products have
paid the unlawful rate or fee.
``(B) A reduction under subparagraph (A) shall be in
addition to any reduction under paragraph (1).
``(C) The Commission shall include in an order under
subparagraph (A) with respect to the unreasonably delay of a
proceeding an explanation of the basis for the determination of
the Commission regarding the time such proceeding would have
required absent such unreasonable delay.''.
SEC. 12. MAIL VOLUME SYSTEM OBJECTIVE.
Section 3622(b) of title 39, United States Code, is amended--
(1) by redesignating paragraph (9) as paragraph (10); and
(2) by inserting after paragraph (8) the following new
paragraph:
``(9) To maintain and, to the extent practicable, increase
the volume of market-dominant mail, with due regard to total
contribution to the institutional costs of the Postal
Service.''.
SEC. 13. NEW PRODUCT DEFINITION CRITERIA.
Section 3642(b)(3) of title 39, United States Code, is amended--
(1) in subparagraph (B), by striking ``and'';
(2) in subparagraph (C), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(D) the importance of paragraphs (7), (8), and
(11) of section 3622(c) of this title in the
appropriate definition of market-dominant products.''.
SEC. 14. MAIL VOLUME ESTIMATION MODEL.
(a) In General.--Not later than 120 days after the date of the
enactment of this Act, the Postal Regulatory Commission shall develop a
model for estimating the demand for postal services.
(b) Independent Development.--The Commission may not consider any
models for estimating demand developed by the Postal Service when
developing the model required under this section.
(c) Public Comment.--In developing the model required under this
section, the Postal Regulatory Commission shall solicit and provide
adequate opportunity for public comment regarding the model.
(d) Regulations.--The Postal Regulatory Commission may issue such
regulations, after notice and comment in accordance with section 553 of
title 5, United States Code, as the Commission determines necessary to
develop the model required under this section.
(e) Expert Advisors.--The Commission may obtain the temporary or
intermittent services of experts or consultants to facilitate the
development of the model required under this section.
SEC. 15. INVESTMENT OF THE POSTAL SERVICE RETIREE HEALTH BENEFITS
FUNDS.
Section 8909a(c) of title 5, United States Code, is amended--
(1) by striking ``(c) The Secretary'' and inserting
``(c)(1) Subject to paragraph (2), the Secretary''; and
(2) by adding at the end the following:
``(2)(A) The Secretary of the Treasury shall immediately
invest a specified percentage of the Fund, using one or more
qualified professional asset managers, in index funds modeled
after those established under subparagraphs (B), (C), (D), and
(E) of section 8438(b)(1). The Secretary shall ensure, to the
maximum extent practicable, that the investment replicates the
performance of the longest-term target date asset allocation
investment fund established by the Federal Retirement Thrift
Investment Board.
``(B) In exercising authority under subparagraph
(A), including in the selection of specific qualified
professional asset managers and in the development of
specific investment guidelines to meet the requirement
of such subparagraph, the Secretary shall consult with
the Postal Service Retiree Health Benefits Fund
Investment Committee.
``(C)(i) There is established a Postal Service
Retiree Health Benefits Fund Investment Committee that
shall consist of--
``(I) the Secretary;
``(II) the Chair of the Board of
Governors of the United States Postal
Service;
``(III) the Chairman of the Federal
Retirement Thrift Investment Board; and
``(IV) two members, appointed by
the President, who--
``(aa) shall represent the
interests of Postal Service
employees and annuitants;
``(bb) have experience and
expertise in the management of
financial investments and
Postal Service employee
benefits; and
``(cc) shall serve for a
term of 3 years.
``(ii) Subsections (b)(1) and (c)(2) of
section 8477 shall apply with respect to the
Postal Service Retiree Health Benefits Fund
Investment Committee and each member of the
Postal Service Retiree Health Benefits Fund
Investment Committee in the same manner as such
subsections apply to a fiduciary with respect
to the Thrift Savings Fund.
``(D)(i) The Secretary shall annually engage an
independent qualified public accountant (as defined in
section 8439) to audit and provide a report on the
financial statements of the investments made pursuant
to subparagraph (A).
``(ii) Not later than 180 days after the
end of each fiscal year beginning after the
date of the enactment of this paragraph, the
Secretary shall submit to Congress an annual
management report regarding the Fund that
includes--
``(I) a statement of financial
position;
``(II) a statement of operations;
``(III) a statement of cash flows;
``(IV) a statement on internal
accounting and administrative control
systems;
``(V) the most recent report
resulting from an audit of the
financial statements of the investments
conducted under clause (i); and
``(VI) any other comments and
information the Secretary determines
necessary to inform the Congress about
the operations and financial condition
of the investments.
``(E) In this paragraph--
``(i) the term `specified percentage' means
25 percent of the currently available portions
of the Fund as are not immediately required for
payments from the Fund, except that the Postal
Service Retiree Health Benefits Fund Investment
Committee may specify a higher percentage, not
to exceed 30 percent, not earlier than 5 years
after the date of enactment of the Postal
Service Financial Improvement Act of 2019, and
as appropriate thereafter; and
``(ii) the term `qualified professional
asset manager' has the meaning given that term
in section 8438(a).''.
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