113 HR 2748 RH: Postal Reform Act of 2013
U.S. House of Representatives
2015-01-02
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents; references
(a)This Act may be cited as the Postal Reform Act of 2013
.
(b)
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)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.
2.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).
<enum>I</enum><header>Postal Service Modernization</header>
<section id="H41D157BAE00D49499C1FF307496BBFDE"><enum>101.</enum><header>Nationwide mail delivery schedule</header>
<subsection commented="no" id="HF0CC443783EF4A5AAFE460B753CC7E4A"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/39/404">Section 404</external-xref> is amended by inserting after subsection (e) the following:</text>
<quoted-block id="HD659E56B4DE04C57BAF369FBC3D05BC3" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HFDEFC1CD257041F4A8222316E5548F84"><enum>(f)</enum>
<paragraph commented="no" display-inline="yes-display-inline" id="H4D431A82FBF5458483D2F97DCECE5230"><enum>(1)</enum><text>The Postal Service may establish a general, nationwide mail delivery schedule of 5 days per week.</text> </paragraph>
<paragraph commented="no" id="HE90036845A1A4FC4B5FD406DBBD76152" indent="up1"><enum>(2)</enum><text>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.</text> </paragraph>
<paragraph id="HD0540B5C4E784563AA3529F26E534594" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">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.</text> </paragraph>
<paragraph id="HCA93A8E2D0CC41C9A8EA82AEF02B6801" indent="up1"><enum>(4)</enum><text>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.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H1D1C68DB70924583B9FE3F67FD41B520"><enum>(b)</enum><header>Mailbox access</header><text display-inline="yes-display-inline">If the Postal Service establishes a general, nationwide mail delivery schedule of 5 days per week, consistent with the provisions of <external-xref legal-doc="usc" parsable-cite="usc/39/404">section 404</external-xref> 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.</text> </subsection></section>
<section id="H6D8D1A80D4E645039E3728A53F037713"><enum>102.</enum><header>Delivery-point modernization</header>
<subsection id="H0C1AFAD48987409FA7CAE8BF0B71378D"><enum>(a)</enum><header>In general</header><text>Subchapter VII of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/39/36">chapter 36</external-xref> is amended by adding at the end the following:</text>
<quoted-block id="HEFAEF57DE6344C269CE98FFDB42BB8CA" style="USC">
<section id="H125DF5EBBA504F3B968A23A81621982D"><enum>3692.</enum><header>Delivery-point modernization</header>
<subsection id="H89423F79D0194F28A93E1E8AAB9C1200"><enum>(a)</enum><header>Definitions</header><text>For the purposes of this section—</text>
<paragraph id="H1249C83081B5445D919F552D883439E8"><enum>(1)</enum><text>the term <term>delivery point</term> means a mailbox or other receptacle to which mail is delivered;</text> </paragraph>
<paragraph id="HC47126CE18F24971AE1D57BC71634C9B"><enum>(2)</enum><text>the term <term>primary mode of mail delivery</term> means the typical method by which the Postal Service delivers letter mail to the delivery point of a postal patron;</text> </paragraph>
<paragraph id="HDACF7945034F4A9F8E1D44AD08380EAE"><enum>(3)</enum><text>the term <term>door delivery</term> 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;</text> </paragraph>
<paragraph id="H91CAA9A99CD2496FB793695AE193274F"><enum>(4)</enum><text>the term <term>centralized delivery</term> 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</text> </paragraph>
<paragraph id="HE82A1F619B4B400699E9E741685111BC"><enum>(5)</enum><text>the term <term>curbside delivery</term> 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.</text> </paragraph></subsection>
<subsection id="H3D2BE64630EF4BB6A1B6B3D3FE27EF52"><enum>(b)</enum><header>Policy</header><text>It shall be the policy of the Postal Service to use the most cost-effective primary mode of mail delivery feasible for postal patrons.</text> </subsection>
<subsection id="H3882FBB64A1B49189D7C8E10FAF7A656"><enum>(c)</enum><header>Phaseout of door delivery</header>
<paragraph id="H480586984741440394CACA4461F47024"><enum>(1)</enum><header>New addresses</header><text>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.</text> </paragraph>
<paragraph id="H3B1F6B2D99844EBB917AA6AA81D96A56"><enum>(2)</enum><header>Business address conversion</header><text>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.</text> </paragraph>
<paragraph id="H1EE45A83A09E43C58F8ECED3FE9B0BAF"><enum>(3)</enum><header>Residential address conversion</header>
<subparagraph id="H76BFC1F95B57489FBFF850DF98497BBA"><enum>(A)</enum><header>Identification</header><text>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.</text> </subparagraph>
<subparagraph id="H83820B2C951A4DF09398083E7ED7635C"><enum>(B)</enum><header>Voluntary conversion</header><text>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.</text> </subparagraph>
<subparagraph id="HE1F2507CC1ED42DA9BA8E714C300575F"><enum>(C)</enum><header>Procedures</header><text>In carrying out conversions under subparagraph (B), the Postal Service shall establish procedures to—</text>
<clause id="H10891E447E294D12BE8FD4325B56D937"><enum>(i)</enum><text>solicit, consider, and respond to input from postal patrons, State and local governments, local associations, and property owners; and</text> </clause>
<clause id="H89E237108FB94978A121C9DE30BA5510"><enum>(ii)</enum><text>place centralized delivery points in locations that maximize delivery efficiency, ease of use for postal patrons, and respect for private property rights.</text> </clause></subparagraph></paragraph>
<paragraph id="H69F984C63EA045CCBC405C69679D6965"><enum>(4)</enum><header>Considerations</header><text>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 <deleted-phrase reported-display-style="strikethrough" committee-id="HGO00">may</deleted-phrase> <added-phrase reported-display-style="italic" committee-id="HGO00">shall </added-phrase>consider—</text>
<subparagraph id="H49B0EEB2705F46E7B902FAD2B3E8F527"><enum>(A)</enum><text>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);</text> </subparagraph>
<subparagraph id="HAC685F036F32499690C1C543F7C07166"><enum>(B)</enum><text>whether the address is in a registered historic district (as that term is defined in <external-xref legal-doc="usc" parsable-cite="usc/26/47">section 47(c)(3)(B)</external-xref> of the Internal Revenue Code of 1986) is listed on the National Register of Historic Places, <added-phrase reported-display-style="italic" committee-id="HGO00">is designated as a National Historic Landmark,</added-phrase> or is of historic value; and</text> </subparagraph>
<subparagraph id="HE33DB15115B44A4A9818925070242E10"><enum>(C)</enum><text display-inline="yes-display-inline">population density and the concentration of poverty.</text> </subparagraph></paragraph>
<paragraph id="HF2079F58FD2C4901990D557B91B9CEA1"><enum>(5)</enum><header>Waiver for physical hardship</header><text>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—</text>
<subparagraph id="H333F793E37E5478B93FF4129DE912D54"><enum>(A)</enum><text>centralized or curbside delivery would, but for this paragraph, otherwise be the primary mode of mail delivery; and</text> </subparagraph>
<subparagraph id="HB81952B6E0A14336840DEE40024799EC"><enum>(B)</enum><text>door delivery is necessary in order to avoid causing significant physical hardship <added-phrase reported-display-style="italic" committee-id="HGO00">or physical safety risks </added-phrase> to a postal patron.</text> </subparagraph></paragraph>
<paragraph id="HC4B6B5084B7645938F4839DBADEDFE29"><enum>(6)</enum><header>Legacy door delivery service</header>
<subparagraph id="H356ED50067124C3DA08A01AB791CF18D"><enum>(A)</enum><header>In general</header><text>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).</text> </subparagraph>
<subparagraph id="H21171CCF76424E28A45FD4F313276C97"><enum>(B)</enum><header>Offset</header><text>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).</text> </subparagraph>
<subparagraph id="H649099F9E873406CBCC229E05AB175A6"><enum>(C)</enum><header>Requirements</header><text>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.</text> </subparagraph></paragraph></subsection>
<subsection id="H0CF9D5B152634FFDB649A5C0F4BB7F76"><enum>(d)</enum><header>Modernization requirement</header>
<paragraph id="H9C2FFE7458CE41A4BDE4CFE890A08A3A"><enum>(1)</enum><header>Minimum points to be converted</header><text>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.</text> </paragraph>
<paragraph id="H21FEF153B6F74469A08EE54B7E00B50F"><enum>(2)</enum><header>Conversion order</header><text>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.</text> </paragraph>
<paragraph id="H4EF4A7F6DB184668B8A0DD786DDB0D38" reported-display-style="italic" changed="added" committee-id="HGO00"><enum>(3)</enum><header>Procedures</header><text>In carrying out conversions under paragraph (1), the Postal Service shall establish procedures to—</text>
<subparagraph id="HE9DAA12E40A54BD994E0E369E85CE268"><enum>(A)</enum><text>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; </text></subparagraph>
<subparagraph id="H87E04F8AF52A48A8B20956887B0A68A4"><enum>(B)</enum><text>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</text></subparagraph>
<subparagraph id="HE23EA865DFCA4EF7866FF4AF5611048F"><enum>(C)</enum><text>place centralized delivery points in locations that maximize delivery efficiency, ease of use for postal patrons, and respect for private property rights.</text></subparagraph></paragraph>
<paragraph id="H0B8F5C174FC64020A10096DBDF938AC9"><enum><deleted-phrase reported-display-style="strikethrough" committee-id="HGO00">(3)</deleted-phrase> <added-phrase reported-display-style="italic" committee-id="HGO00">(4)</added-phrase></enum><header>Funding and repayment</header><text>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.</text> </paragraph>
<paragraph id="H65E37AB7D68B4FD28453CCB0DDC213AF"><enum><deleted-phrase reported-display-style="strikethrough" committee-id="HGO00">(4)</deleted-phrase> <added-phrase reported-display-style="italic" committee-id="HGO00">(5)</added-phrase></enum><header>Voucher program</header><text display-inline="yes-display-inline">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.</text> </paragraph>
<paragraph id="H51FBD826CB1648A69040FC325BE32201"><enum><deleted-phrase reported-display-style="strikethrough" committee-id="HGO00">(5)</deleted-phrase> <added-phrase reported-display-style="italic" committee-id="HGO00">(6)</added-phrase></enum><header>Treatment of Exemption</header><text display-inline="yes-display-inline">Addresses receiving door delivery or legacy door delivery as a result of paragraph (5) or (6) of subsection (c)—</text>
<subparagraph id="H170EC4DB93444E0AA830D6E242E203D9"><enum>(A)</enum><text>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</text> </subparagraph>
<subparagraph id="H5A4BB85EDD764C70895FF90E0E42C03B"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph>
<paragraph id="H35C43BA6555343F98719B25E8C072DF2"><enum><deleted-phrase reported-display-style="strikethrough" committee-id="HGO00">(6)</deleted-phrase> <added-phrase reported-display-style="italic" committee-id="HGO00">(7)</added-phrase></enum><header>Annual reports</header><text display-inline="yes-display-inline">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—</text>
<subparagraph id="HAC13163984864907A6693E43CC1CCB78"><enum>(A)</enum><text>the number of residential and business addresses that—</text>
<clause id="HDD154507B2514637B12555B29DB54437"><enum>(i)</enum><text>receive door delivery as of the end of the fiscal year preceding the most recently completed fiscal year;</text> </clause>
<clause id="HA925656B68F54BC5AEDCB58C1877C4BA"><enum>(ii)</enum><text>receive door delivery as of the end of the most recently completed fiscal year; and</text> </clause>
<clause id="HBCECBDA61B8544FFAEA9E629F0E7594F"><enum>(iii)</enum><text>during the most recently completed fiscal year, were converted from door delivery to—</text>
<subclause id="HBFC2B9136A0F4D378198F2EF69D1B2DB"><enum>(I)</enum><text>centralized delivery points;</text> </subclause>
<subclause id="H2B58E6A5E37B43A3B8B3DD7F37AD9BCF"><enum>(II)</enum><text>curbside delivery points; and</text> </subclause>
<subclause id="H632A033FAE7D46ECAE1EC52C53D78024"><enum>(III)</enum><text>any other primary mode of mail delivery, respectively;</text> </subclause></clause></subparagraph>
<subparagraph id="HC1FC472A8B504691835E07166EA89246"><enum>(B)</enum><text>the estimated cost savings from the conversions described in subparagraph (A)(iii);</text> </subparagraph>
<subparagraph id="H849730C4A49B4770BF686B604EC2F72A"><enum>(C)</enum><text>a description of the progress made by the Postal Service toward meeting the requirements of subsection (c) and paragraph (1) of this subsection; and</text> </subparagraph>
<subparagraph id="HE48CBF30355641849C94C05B7CAF9EBF"><enum>(D)</enum><text>any other information which the Postal Service considers appropriate.</text> </subparagraph></paragraph>
<paragraph id="HC0CFC7F8D99F4EA0BE4EE08DF74CB048" reported-display-style="italic" changed="added" committee-id="HGO00"><enum>(8)</enum><header>Inspector General audit</header><text>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—</text>
<subparagraph id="HFFB9A5CA27EF43B0B730EEA1A2E43B97"><enum>(A)</enum><text>an audit of the data contained in the Postal Service’s report under paragraph (7); and</text></subparagraph>
<subparagraph id="HB0E5B5C1CEED46839C843F1471B1AC1F"><enum>(B)</enum><text>an evaluation of the Postal Service’s implementation of the procedural requirements described in paragraph (3).</text></subparagraph></paragraph></subsection>
<subsection id="H80A58ED9666F46B4AC32E25B1560CF26"><enum>(e)</enum><header>Review</header><text>Subchapters IV and V shall not apply with respect to any action taken by the Postal Service under this section.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H173223AFD4A843A2B0097A62400A696C"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/39/36">chapter 36</external-xref> is amended by adding after the item relating to section 3691 the following:</text>
<quoted-block id="H8C6635909E334E50A92905CF28132D77" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">3692. Delivery-point modernization.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section>
<section id="H6BFB3D2168C84DEC9DDFE9C6990BD5EE"><enum>103.</enum><header>Efficient and flexible universal postal service</header>
<subsection id="H5C1F6DDAAD7948DA8C705F3F24B57581"><enum>(a)</enum><header>Postal policy</header>
<paragraph id="H4109445B28D34FC78B5EAFD618638016"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/39/101">Section 101(b)</external-xref> is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H07642E7AB7C8496090153D8DC3B598E7" style="USC">
<subsection id="HB4B609E0576F40F6845CC7E3D774E3B6"><enum>(b)</enum><text display-inline="yes-display-inline">The Postal Service shall provide effective and regular postal services to rural areas, communities, and small towns where post offices are not self-sustaining.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph commented="no" id="H59C2A71546AC4744AB8A3222B2E9F1EA"><enum>(2)</enum><header>Conforming amendment</header><text>Clause (iii) of <external-xref legal-doc="usc" parsable-cite="usc/39/404">section 404(d)(2)(A)</external-xref> is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HDF1D83C199794C02B7305A721539675E" style="USC">
<clause commented="no" id="H0FD47F6B09444B94B511772F4C48BD8E" indent="up1"><enum>(iii)</enum><text display-inline="yes-display-inline">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;</text> </clause><after-quoted-block>. </after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="HA1E4286FFCB74DE7A4BAF6232B2BEBB2"><enum>(b)</enum><header>General duty</header><text>Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/39/403">section 403(b)</external-xref> is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H777E8EA06FB6421D8B57B69E9B2198A5" style="USC">
<paragraph id="H2E14A89D74854DCD95046F015C65F7F2"><enum>(3)</enum><text display-inline="yes-display-inline">to ensure that postal patrons throughout the Nation will, consistent with reasonable economies of postal operations, have ready access to essential postal services.</text> </paragraph><after-quoted-block>. </after-quoted-block></quoted-block> </subsection>
<subsection id="HC78DF84F51034475808B4B25DE37C8BF"><enum>(c)</enum><header>Conditions</header><text display-inline="yes-display-inline">Clause (i) of <external-xref legal-doc="usc" parsable-cite="usc/39/404">section 404(d)(2)(A)</external-xref> is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H6AA3EB7BB43045E89A287DDBC43A121D" style="USC">
<clause id="HF7A86939BDA64254AE454D9E8731BAA2" indent="up1"><enum>(i)</enum><text display-inline="yes-display-inline">the effect of such closing or consolidation on the community served by such post office, including through an analysis of such factors as—</text>
<subclause id="H4FDE8B411F7740F6B71988D15BAF3D0D"><enum>(I)</enum><text display-inline="yes-display-inline">the distance (as measured by public roads) to the closest postal retail facility not proposed for closure or consolidation under such plan;</text> </subclause>
<subclause id="H2AA667B4730B40ED939CB6B20F68E2F8"><enum>(II)</enum><text display-inline="yes-display-inline">the characteristics of such location, including weather and terrain;</text> </subclause>
<subclause id="H5E3B4C6F48234883B2398985307CB9DD"><enum>(III)</enum><text display-inline="yes-display-inline">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</text> </subclause>
<subclause id="H8BBCD12AE53D471A99C2C0488862828C"><enum>(IV)</enum><text display-inline="yes-display-inline">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;</text> </subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HD96A12AEFB674F1DB4597DF0DFAA7903"><enum>(d)</enum><header>PRC review of determinations To close or consolidate a post office</header>
<paragraph id="HDF64B650407246258352B4C88832D404"><enum>(1)</enum><header>Deadline for review</header><text><external-xref legal-doc="usc" parsable-cite="usc/39/404">Section 404(d)(5)</external-xref> is amended by striking <quote>120 days</quote> and inserting <quote>60 days</quote>.</text> </paragraph>
<paragraph id="HE44189CD96944751854275A3A34CD331"><enum>(2)</enum><header>Exclusion from review</header><text><external-xref legal-doc="usc" parsable-cite="usc/39/404">Section 404(d)</external-xref> is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HA6CD2D6677A74C06A187E31A530187CA" style="USC">
<paragraph id="HF01B6B7FD3A54EB28C5CAB575E423534" indent="up1"><enum>(7)</enum>
<subparagraph commented="no" display-inline="yes-display-inline" id="H494AABA0FB114F1CB49665EAA908E5DD"><enum>(A)</enum><text>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.</text> </subparagraph>
<subparagraph id="H6CC6A42C4AE340A5BB82AABC5D528BE9" indent="up1"><enum>(B)</enum><text>For purposes of this paragraph—</text>
<clause id="H5B8C4DBBA1764CEEBD5EDCF056D2473C"><enum>(i)</enum><text>the term <term>contract postal unit</term> means a store or other place of business which—</text>
<subclause id="H5DD2EED59405420EB0068C4A4F51C9E9"><enum>(I)</enum><text>is not owned or operated by the Postal Service; and</text> </subclause>
<subclause id="H66139E4B9A164966B4F3A9457EB67233"><enum>(II)</enum><text>in addition to its usual operations, provides postal services to the general public under contract with the Postal Service; and</text> </subclause></clause>
<clause id="H2A0057303FEE44CD99AA076EB3EA39C9"><enum>(ii)</enum><text>the term <term>qualified contract postal unit</term>, as used in connection with a post office, means a contract postal unit which—</text>
<subclause id="HF60F41E028A74CF0B5D43AC9C485A04A"><enum>(I)</enum><text>begins to provide postal services to the general public during the period—</text>
<item id="H07788D6832714A41A68F42E261E44565"><enum>(aa)</enum><text>beginning 1 year before the date on which the closure or consolidation of such post office is scheduled to take effect; and</text> </item>
<item id="H561E1995A90C494C98EE9320C4834EC7"><enum>(bb)</enum><text>ending on the 15th day after the date on which the closure or consolidation of such post office is scheduled to take effect; and</text> </item></subclause>
<subclause id="H5962413AEC8747E1B4982B71E79198A9"><enum>(II)</enum><text>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).</text> </subclause></clause></subparagraph>
<subparagraph id="H836106BE522744D5B484B4119A4D2E52" indent="up1"><enum>(C)</enum>
<clause commented="no" display-inline="yes-display-inline" id="HAFCB019F5C1C4267943DAFF279E1CB7D"><enum>(i)</enum><text>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)).</text> </clause>
<clause id="HF9A142FF306B4A95BE62326F2FF5302B" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">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 <quote>in violation of section 101(b), leaving postal patrons without effective and regular access to postal services</quote> for <quote>unsupported by substantial evidence on the record</quote>.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H82B2BF2B83164C459F081B1E58A59A06"><enum>(3)</enum><header>Applicability</header><text>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 <external-xref legal-doc="usc" parsable-cite="usc/39/404">section 404(d)(6)</external-xref> of title 39, United States Code).</text> </paragraph></subsection>
<subsection id="HF23D24421374408E9DEF714D8E49777D"><enum>(e)</enum><header>Expedited procedures</header>
<paragraph id="HA623F5531D4A47BEBEE1CAE95187272A"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/39/3661">Section 3661</external-xref> is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H461F22E7081649BB93073121FB0781B7" style="USC">
<subsection id="HD89296F8D1DE4A148AF531E05DECA946"><enum>(d)</enum>
<paragraph commented="no" display-inline="yes-display-inline" id="H538D4E1C113441E1938DB56DAFD0ADC4"><enum>(1)</enum><text>The Commission shall issue its opinion within 90 days after the receipt of any proposal (as referred to in subsection (b)) concerning—</text>
<subparagraph id="H10A50361EF834474A70FB84B2E04D435" indent="up1"><enum>(A)</enum><text>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</text> </subparagraph>
<subparagraph id="H3CC239D8CFAC448191787CA094A340A7" indent="up1"><enum>(B)</enum><text>an identical or substantially identical proposal on which the Commission issued an opinion within the preceding 5 years.</text> </subparagraph></paragraph>
<paragraph id="H5407E3D0453743DC88A2D6DEE4E4E342" indent="up1"><enum>(2)</enum><text>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.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H05A713A842D94F39A8A959CF071FC33D"><enum>(2)</enum><header>Regulations</header><text>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.</text> </paragraph>
<paragraph id="HE813F6B2EAA842B9B2F784660DA2B976"><enum>(3)</enum><header>Applicability</header><text>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—</text>
<subparagraph id="HDA65423B0D024F84BFAC6097303E73DA"><enum>(A)</enum><text>the 90th day after the date of enactment of this Act; or</text> </subparagraph>
<subparagraph id="HA5D29EAC08D249EBB03FA865A4E380C4"><enum>(B)</enum><text>the effective date of the regulations under paragraph (2).</text> </subparagraph></paragraph></subsection>
<subsection id="H760D70A33D7E4A8BB8C836EBEAC978FF"><enum>(f)</enum><header>Rural post office annual closure limitation</header><text><external-xref legal-doc="usc" parsable-cite="usc/39/404a">Section 404a(a)</external-xref> is amended—</text>
<paragraph id="H22148AF4F5C849598ECDE997DA96156D"><enum>(1)</enum><text>in paragraph (2), by striking <quote>or</quote> at the end;</text> </paragraph>
<paragraph id="H44B481D47A4F4223BD5DAE1CC0A246A8"><enum>(2)</enum><text>in paragraph (3), by striking the period and inserting <quote>; or</quote>; and</text> </paragraph>
<paragraph id="HE0BE4ACF46EF4EE582415159CE251366"><enum>(3)</enum><text>by adding at the end the following:</text>
<quoted-block id="H95803985E5B44A9691645AA66B2F0715" style="OLC">
<paragraph id="H9AF8DC676BC844CD9AD90E083F4B6B24"><enum>(4)</enum><text>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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="H3FA6680B087C4E8CB04FEFAF8CDF5384"><enum>(g)</enum><header>Alternate postal access choice</header><text><external-xref legal-doc="usc" parsable-cite="usc/39/404">Section 404(d)</external-xref> is amended by striking paragraph (1) and inserting the following:</text>
<quoted-block id="H630204704CEA4A02AAF8CBCF6E6F613D" style="OLC">
<subsection id="H9A76A9798A3F483B8012A8397FD06102"><enum><deleted-phrase reported-display-style="strikethrough" committee-id="HGO00">(d)</deleted-phrase></enum>
<paragraph commented="no" display-inline="yes-display-inline" id="H00703E923D314B438F79DCB17EC1CCAD"><enum>(1)</enum><text>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—</text>
<subparagraph id="H80C697160009455280A74D5A73081FDA" indent="up1"><enum>(A)</enum><text>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;</text> </subparagraph>
<subparagraph id="H6A443DA1E4E943028F451FA002E5328D" indent="up1"><enum>(B)</enum><text>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—</text>
<clause id="HBE606F2ABE0C4B7ABCBCAA45C59EC3CE"><enum>(i)</enum><text>the closing or consolidation; and</text> </clause>
<clause id="HDD2D3907C887425E9BCC41384F1F977E"><enum>(ii)</enum><text>1 or more alternative options; and</text> </clause></subparagraph>
<subparagraph id="H05F7941275C94104BE5B49D23CD1B695" indent="up1"><enum>(C)</enum><text>ensure that—</text>
<clause id="H29486A8E9AFE42968F6191F9E94E62D6"><enum>(i)</enum><text>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</text> </clause>
<clause id="H58C709A276C9491498E42A52FEFC52DB"><enum>(ii)</enum><text>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.</text> </clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section>
<section id="HA92474BF8F7B4909B663FCEF53F59643"><enum>104.</enum><header>Applicability of procedures relating to closures and consolidations</header>
<subsection id="H84CE0F534BCD4A2DA1DE0A66B502CD08"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/39/404">Section 404(d)</external-xref> is amended by adding after paragraph (7) (as added by section 103(d)(2)) the following:</text>
<quoted-block display-inline="no-display-inline" id="H7D6AC5D841AA4C7A85E79337F24BFF5E" style="USC">
<paragraph id="H6EAB2BEC8DEF4487B6A34F894CC6FB29" indent="up1"><enum>(8)</enum><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>post office</term> means a post office and any other facility described in section 2(2) of the <short-title>Postal Reform Act of 2013</short-title>.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H3ED86BF83D564838B9008470BDDC4524"><enum>(b)</enum><header>Effective date</header><text>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 <external-xref legal-doc="usc" parsable-cite="usc/39/404">section 404(d)</external-xref> 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.</text> </subsection></section>
<section id="H3D44A8C6274B497EA3AEC373BD065892"><enum>105.</enum><header>Enhanced reporting on Postal Service efficiency</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/39/3652">Section 3652(a)</external-xref> is amended—</text>
<paragraph id="H7D176CB211B54333A96422C80AD09DD1"><enum>(1)</enum><text>in paragraph (1), by striking <quote>and</quote> after the semicolon;</text> </paragraph>
<paragraph id="H1A5B0CCCA5784AB79772138CCE889357"><enum>(2)</enum><text>in paragraph (2), by striking the period at the end and inserting <quote>; and</quote>; and</text> </paragraph>
<paragraph id="H7BCCD1E259644B8EAE473C41E5CB0CD9"><enum>(3)</enum><text>by adding after paragraph (2) the following:</text>
<quoted-block display-inline="no-display-inline" id="HA8E01E4106E548C0A47B53A37B925348" style="USC">
<paragraph id="H36148EEB407047288EAD6326FAE3F974"><enum>(3)</enum><text display-inline="yes-display-inline">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.</text> </paragraph><after-quoted-block>. </after-quoted-block></quoted-block> </paragraph></section>
<section id="HCCB02053A4364011B87BC2C5684D43A4"><enum>106.</enum><header>Area and district office structure</header>
<subsection commented="no" id="H1BFDAA9503A948AC912790BB0FBBE124"><enum>(a)</enum><header>In general</header><text>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.</text> </subsection>
<subsection id="H3797252778D842F0B232964416465CA8"><enum>(b)</enum><header>Contents</header><text>The plan shall include—</text>
<paragraph id="H65D3F3B5253843DEA90F399659384138"><enum>(1)</enum><text>a list of the area and district offices proposed for closure or consolidation;</text> </paragraph>
<paragraph id="H0319FBC44D564CA6B89B050309C3B0F4"><enum>(2)</enum><text>a proposed schedule under which closures and consolidations of area and district offices would be carried out;</text> </paragraph>
<paragraph id="H27A0B5CDACF9497BA254D2CF21E29FB2"><enum>(3)</enum><text>the estimated total annual cost savings attributable to the proposed closures and consolidations described in the plan;</text> </paragraph>
<paragraph id="HBAB6058B0FE846209AA91B36ABB17878"><enum>(4)</enum><text>the criteria and process used to develop the information described in paragraphs (1) and (2);</text> </paragraph>
<paragraph id="H4992F4E9B83B43F4BBBF9BE285FA9D9D"><enum>(5)</enum><text>the methodology and assumptions used to derive the estimates described in paragraph (3); and</text> </paragraph>
<paragraph id="H3EB0FE233EE34E3289E97C4283F2B56D"><enum>(6)</enum><text>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.</text> </paragraph></subsection>
<subsection id="HA44B1FBEA472499A891D42A8FE109CE6"><enum>(c)</enum><header>Plan submission revision</header><text>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.</text> </subsection></section>
<enum>II</enum><header>Postal Service Governance</header>
<subtitle id="HB943FF290CF7446B9909E97AD65854F6"><enum>A</enum><header>Temporary Governance Authority</header>
<section id="HB8AEC5F125034FAD9346E73F5819587B"><enum>201.</enum><header>Purposes</header>
<subsection id="HD75379EA3765401F8733ED46C8A52502"><enum>(a)</enum><header>Purposes</header><text>The purposes of this subtitle are as follows:</text>
<paragraph id="H0D0207B58750446BB678C2C7C38E81D0"><enum>(1)</enum><text>To eliminate budget deficits and cash shortages of the Postal Service through strategic financial planning, sound budgeting, accurate revenue forecasts, and careful spending.</text> </paragraph>
<paragraph id="H4C18B6D03E2B4C7B986C289D42D0579C"><enum>(2)</enum><text>To ensure that universal service, as required by <external-xref legal-doc="usc" parsable-cite="usc/39/101">section 101</external-xref> of title 39, United States Code, is maintained during the period of any fiscal emergency.</text> </paragraph>
<paragraph id="H690FA62A48874B6CB2B120BBFC64885A"><enum>(3)</enum><text>To conduct necessary investigations and studies to determine the fiscal status and operational efficiency of the Postal Service.</text> </paragraph>
<paragraph id="HDB062869636B480195F799016CA37B95"><enum>(4)</enum><text>To assist the Postal Service in—</text>
<subparagraph id="HBCDCD1A727BF4AE5889250947802ADAA"><enum>(A)</enum><text>restructuring its organization and workforce to bring expenses in line with diminishing revenue and generate sufficient profits for capital investments and repayment of debt;</text> </subparagraph>
<subparagraph id="H9AF660D119F3439BA4E18634F49F1A9A"><enum>(B)</enum><text>meeting all fiscal obligations to the Treasury of the United States; and</text> </subparagraph>
<subparagraph id="HF28CF95A0A38468A9A411852D2735AB0"><enum>(C)</enum><text>ensuring the appropriate and efficient delivery of postal services.</text> </subparagraph></paragraph>
<paragraph id="H4CECAF6AF2584BB8B53E20EB6210349A"><enum>(5)</enum><text>To ensure the long-term financial, fiscal, and economic vitality and operational efficiency of the Postal Service.</text> </paragraph></subsection>
<subsection id="HE51AE8A102114F96BDE2CAB52FE2658D"><enum>(b)</enum><header>Reservation of powers</header><text>Nothing in this subtitle may be construed—</text>
<paragraph id="HCFBC3E6906C04DF2913E0A1B6C263D1A"><enum>(1)</enum><text display-inline="yes-display-inline">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</text> </paragraph>
<paragraph id="H1B3B87A0D5E848FCA69E9EE6F3C7B0D9"><enum>(2)</enum><text>to limit the authority of Congress to exercise legislative authority over the Postal Service.</text> </paragraph></subsection></section>
<section id="H4EED68817DB94F38B43AAB35CCFF49BB"><enum>202.</enum><header>Establishment of the Postal Service Financial Responsibility and Management Assistance Authority</header>
<subsection id="H0C57B4AACE2046F184C45D26AA0A7020"><enum>(a)</enum><header>Establishment</header><text>There is established, in accordance with the provisions of this subtitle, an entity to be known as the <quote>Postal Service Financial Responsibility and Management Assistance Authority</quote> (hereinafter in this subtitle referred to as the <quote>Authority</quote>).</text> </subsection>
<subsection id="H43A3E1DD573E42E5824F4A439304AD2C"><enum>(b)</enum><header>Operations during the control period</header>
<paragraph id="HEBB6F2744BC64C25BF72B3F8A08C4A8B"><enum>(1)</enum><header>Control period defined</header><text>For the purposes of this subtitle, the term <term>control period</term> 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).</text> </paragraph>
<paragraph id="HA31375B093BE44739B845658E63797DC"><enum>(2)</enum><header>Transfer of authorities and responsibilities</header><text>Effective as of the date on which the control period commences—</text>
<subparagraph id="H42EB8D0BAAD74702904E4B566CDA7C19"><enum>(A)</enum><text>subsections (a) and (b) of section 202 are repealed;</text> </subparagraph>
<subparagraph id="H3886B3326BA64614A8275C37AFF33DCA"><enum>(B)</enum><text>the term of office of each of the 9 Governors (appointed under the second sentence of <external-xref legal-doc="usc" parsable-cite="usc/39/202">section 202(a)(1)</external-xref> of title 39, United States Code, as last in effect before the date of enactment of this Act) shall terminate; and</text> </subparagraph>
<subparagraph commented="no" id="HEEB700490E4741EC99571080B44A575D"><enum>(C)</enum><text>the Authority shall assume its responsibilities, as set forth in section 206.</text> </subparagraph></paragraph>
<paragraph id="H62AB083CABD944FAA4AA2BA010DB7FF5"><enum>(3)</enum><header>Treatment of certain executives</header>
<subparagraph id="HAEDEA7F5576D49FC9011B3CF4DFFDBC2"><enum>(A)</enum><header>Definition</header><text>For the purposes of this section, the term <term>Level-Two Postal Service Executive</term> 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.</text> </subparagraph>
<subparagraph id="H9253C7767A6145C391F5A658A3E58E91"><enum>(B)</enum><header>Treatment</header><text>Notwithstanding any other provision of law or the provisions of any employment contract, during the control period—</text>
<clause id="H0F9CABF496DF467AB649BFF9754B65BB"><enum>(i)</enum><text>all Level-Two Postal Service Executives shall serve at the pleasure of the Authority;</text> </clause>
<clause id="H11A8029783DE4DCA89E4740CA262726E"><enum>(ii)</enum><text>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;</text> </clause>
<clause id="H5752AEDE7CB64393A3F76539613995D8"><enum>(iii)</enum><text>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 <external-xref legal-doc="usc" parsable-cite="usc/5/5312">section 5312</external-xref> of title 5, United States Code, for that year; for purposes of this clause, the term <term>total compensation</term> means basic pay, bonuses, awards, and all other monetary compensation;</text> </clause>
<clause commented="no" id="HE8FB8BA38CC34BB19FE8C56A158FC95A"><enum>(iv)</enum><text>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;</text> </clause>
<clause id="H497D7E1CCA3F4FB18F20FD5C0B92ED8A"><enum>(v)</enum><text>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); <deleted-phrase reported-display-style="strikethrough" committee-id="HGO00">and</deleted-phrase></text> </clause>
<clause id="H0868D47B0D0A4A3887EC46E92FDAEF87"><enum>(vi)</enum><text>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 <external-xref legal-doc="usc" parsable-cite="usc/5/5312">section 5312</external-xref> of title 5, United States Code, with respect to such year<deleted-phrase reported-display-style="strikethrough" committee-id="HGO00">.</deleted-phrase> <added-phrase reported-display-style="italic" committee-id="HGO00">; and</added-phrase></text> </clause>
<clause id="H39C73931555D4A89833B941A92AC0F2E" reported-display-style="italic" changed="added" committee-id="HGO00"><enum>(vii)</enum><text display-inline="yes-display-inline">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 <external-xref legal-doc="usc" parsable-cite="usc/5/4503">section 4503</external-xref> of title 5, United States Code, may not exceed a combined total of $200 with respect to any full year in the control period. </text></clause></subparagraph>
<subparagraph id="HDA7AFB078FE944349D81EE3BE5B3F5FC"><enum>(C)</enum><header>Bonus authority</header><text><external-xref legal-doc="usc" parsable-cite="usc/39/3686">Section 3686</external-xref> 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—</text>
<clause id="H19072709BC314A75BB9ACAC8030D8831"><enum>(i)</enum><text>be suspended with respect to all Level-Two Postal Service Executives; but</text> </clause>
<clause id="HA1400BE6B7274847B00A8A5573B4D0D6"><enum>(ii)</enum><text>remain in effect for all other officers and employees of the Postal Service otherwise covered by this section.</text> </clause></subparagraph></paragraph>
<paragraph id="H9500B8C1D67A41F699B3C54E420FF248"><enum>(4)</enum><header>Certification requirement</header><text>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—</text>
<subparagraph id="H1F84DADCB5FE447591E9F77470F9F04F"><enum>(A)</enum><text>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);</text> </subparagraph>
<subparagraph id="H44D846D8002B4D2BBD6B1D345C709E6A"><enum>(B)</enum><text>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</text> </subparagraph>
<subparagraph id="HF881E2E40A374B2AA0B5F7E7BE91DAEB"><enum>(C)</enum><text>the Postal Service financial plan and budget (as referred to in subparagraph (B)) includes plans—</text>
<clause id="H8BA694CAE3F8414C9447B226C430AB52"><enum>(i)</enum><text>for the repayment of any collateralized debt authorized by section 503; and</text> </clause>
<clause commented="no" id="H276A0AEDF4B845808492A534F87F3671"><enum>(ii)</enum><text>to properly fund Postal Service pensions and retiree health benefits in accordance with applicable provisions of title 5, United States Code.</text> </clause></subparagraph></paragraph>
<paragraph id="H49E4C157C8864AC18AEA116E4B799649"><enum>(5)</enum><header>Termination of control period</header>
<subparagraph id="HE68573407A7C4AA48036E29BDB0F1864"><enum>(A)</enum><header>Termination date</header>
<clause id="HBC4C8CCC00E340D69D8E7CFDD654A5A7"><enum>(i)</enum><header>General rule</header><text>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.</text> </clause>
<clause id="H29CE132C99374FC2BCD08070C3F1D5CB"><enum>(ii)</enum><header>Alternative date</header>
<subclause id="H8F128EE660F14FFDA3879CE7F170AF05"><enum>(I)</enum><header>Authority</header><text>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)).</text> </subclause>
<subclause id="H12269C351D1C4935BF1F04C4685F10FC"><enum>(II)</enum><header>Range</header><text>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.</text> </subclause></clause></subparagraph>
<subparagraph id="HFC20C29C5280466F8A8BD71CBB75CA40"><enum>(B)</enum><header>Public notice</header><text>The Authority shall cause to be published in the Federal Register—</text>
<clause id="HB084EB478BA7405E9645791A63C91209"><enum>(i)</enum><text>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</text> </clause>
<clause id="H1E6B456B9B474EBC8E580A97E03EA1FF"><enum>(ii)</enum><text>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.</text> </clause></subparagraph></paragraph></subsection></section>
<section id="HFF85FE58848146F893707D112B2FD248"><enum>203.</enum><header>Membership and qualification requirements</header>
<subsection id="H94421D77792E4F4DAA5481C64C2B02BB"><enum>(a)</enum><header>Membership</header>
<paragraph id="H6CDD3D02845B4E38A85F65F39C4B5C93"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph>
<paragraph id="HCF038C948125449A8276E74FA23EBE0C"><enum>(2)</enum><header>Recommendations</header><text>Of the 5 members so appointed—</text>
<subparagraph id="HC0583C838FB542EEB61804E88C679F2A"><enum>(A)</enum><text>1 shall be appointed by the President taking into account any individuals recommended by the Speaker of the House of Representatives;</text> </subparagraph>
<subparagraph id="H9443264036D54731BA6AE170BFC872D9"><enum>(B)</enum><text>1 shall be appointed by the President taking into account any individuals recommended by the majority leader of the Senate;</text> </subparagraph>
<subparagraph id="H8E1FEC7CF36C453D964F7BDC5042B0B2"><enum>(C)</enum><text>1 shall be appointed by the President taking into account any individuals recommended by the minority leader of the House of Representatives;</text> </subparagraph>
<subparagraph id="HF01E1E9BD6EF4818987025F786DB7B92"><enum>(D)</enum><text>1 shall be appointed by the President taking into account any individuals recommended by the minority leader of the Senate; and</text> </subparagraph>
<subparagraph id="HE09ACA1DC1E64B63BB08108EB440A9C4"><enum>(E)</enum><text>1 shall be appointed by the President taking into account any individuals recommended by the Comptroller General.</text> </subparagraph></paragraph>
<paragraph id="H35DE72DD8E614D7F8D21EFD091FC8835"><enum>(3)</enum><header>Political affiliation</header><text>No more than 3 members of the Authority may be of the same political party.</text> </paragraph>
<paragraph id="H2E190DEDFCA148C8853C859BCD357149"><enum>(4)</enum><header>Chair</header><text>The President shall designate 1 of the members of the Authority as the Chair of the Authority.</text> </paragraph>
<paragraph id="H25069544FF3546BBA963380FFEDAAA17"><enum>(5)</enum><header>Sense of Congress regarding deadline for appointment</header><text>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.</text> </paragraph>
<paragraph id="H5EC59E9E09F7485F8FCF23B90F751B8A"><enum>(6)</enum><header>Term of service</header>
<subparagraph id="H8B7EA7FBA4214A8F9802EDC8C834D33B"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), each member of the Authority shall be appointed for a term of 3 years.</text> </subparagraph>
<subparagraph id="H63572119E1744E7A9410D0294DA55650"><enum>(B)</enum><header>Appointment for term following initial term</header><text>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—</text>
<clause id="H983289F98D774CA5AC0DB878B052F459"><enum>(i)</enum><text>1 member shall be appointed for a term of 1 year;</text> </clause>
<clause id="H380338B7EE6347F5815ED1C31F484E4F"><enum>(ii)</enum><text>2 members shall be appointed for a term of 2 years; and</text> </clause>
<clause id="H8662F4FA37DB408D8BE8BBFE52A3EEEC"><enum>(iii)</enum><text>2 members shall be appointed for a term of 3 years.</text> </clause></subparagraph>
<subparagraph id="H68341707B7CC4246820BE2186A95AEFD"><enum>(C)</enum><header>Vacancies and succession</header><text>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.</text> </subparagraph>
<subparagraph id="H8970A07948534C50936D8C0F5EF07C31"><enum>(D)</enum><header>Removal</header><text>The President may remove any member of the Authority only for cause.</text> </subparagraph>
<subparagraph id="H793B932F2A8D449999C3AE4D9E683FDF"><enum>(E)</enum><header>Compensation for service</header><text>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 <external-xref legal-doc="usc" parsable-cite="usc/5/5314">section 5314</external-xref> of title 5, United States Code.</text> </subparagraph></paragraph></subsection>
<subsection id="HE555DF116F15494C8C96A6655B97B5D3"><enum>(b)</enum><header>Qualification requirements</header>
<paragraph id="H4985327F15264580A921F9E17D812A43"><enum>(1)</enum><header>In general</header><text>An individual meets the qualifications for membership on the Authority if the individual—</text>
<subparagraph id="H5ED7C885A76E4621BC1CC15C186F625E"><enum>(A)</enum><text>has significant knowledge and expertise in finance, management, and the organization or operation of businesses having more than 500 employees; and</text> </subparagraph>
<subparagraph id="HC3C5945919624300BDD6B8AB7AEC3A9D"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph>
<paragraph id="HD1FB1F531E3F4E979636638BF01D404A"><enum>(2)</enum><header>Specific conditions</header><text>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—</text>
<subparagraph id="H8187959EB88E40F3A15C3C451C1F697A"><enum>(A)</enum><text>has been an officer, employee, or private contractor with the Postal Service, United States Postal Service Inspector General, or the Postal Regulatory Commission; or</text> </subparagraph>
<subparagraph id="H9B9E3B67DDFE49D094140DABEC8DA8D3"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph></subsection></section>
<section id="H92DD6EF88F57471582BF4ACBBC8AB539"><enum>204.</enum><header>Organization and staff</header>
<subsection id="HC6AE71E623304C6DBCF814579F704BAD"><enum>(a)</enum><header>Adoption of bylaws for conducting business</header><text>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.</text> </subsection>
<subsection id="HF1A88666DD9F4026ACF058755D25DB29"><enum>(b)</enum><header>Executive director and staff</header>
<paragraph id="H99B0E70A7DF54D7580A4D1F27B464C14"><enum>(1)</enum><header>Executive director</header><text>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 <external-xref legal-doc="usc" parsable-cite="usc/5/5315">section 5315</external-xref> of title 5, United States Code.</text> </paragraph>
<paragraph id="H28965BBAEF1840D1AB9D7E61EF488834"><enum>(2)</enum><header>Staff</header><text>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.</text> </paragraph>
<paragraph id="H46DF379CF4144A0985FD4D15D0C2B7BA"><enum>(3)</enum><header>Inapplicability of certain civil service laws</header><text>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 <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/39/53">chapter 53</external-xref> of such title relating to classification and General Schedule pay rates.</text> </paragraph>
<paragraph id="H03BE433CECFB405DA703337BEFCE9670"><enum>(4)</enum><header>Staff of Federal agencies</header><text>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.</text> </paragraph></subsection></section>
<section id="H4781123F20154B1382C343718D7DAAAE"><enum>205.</enum><header>Funding</header>
<subsection id="H5701BA1F4C3D49AFA8ED598F66D4DE5C"><enum>(a)</enum><header>General rule</header><text display-inline="yes-display-inline">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 <external-xref legal-doc="usc" parsable-cite="usc/39/2009">section 2009</external-xref> 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.</text> </subsection>
<subsection id="H7763D2C14EC4472AA7EF9993479888C4"><enum>(b)</enum><header>Initial rule</header><text>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—</text>
<paragraph id="H24AE1EC3B5CB4627ACA4116164F0EA70"><enum>(1)</enum><text>the dollar amount specified in subsection (a), times</text> </paragraph>
<paragraph id="HA44609F469244CC392F308202BACF753"><enum>(2)</enum><text>a fraction—</text>
<subparagraph id="HFB10A68820EC4162B4A088A1059B1AD7"><enum>(A)</enum><text>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</text> </subparagraph>
<subparagraph id="H3B58B24B9CB4410FB2EA8FFA9F52A816"><enum>(B)</enum><text>the denominator of which is 12.</text> </subparagraph></paragraph></subsection>
<subsection id="H570F5823C0964AEAB9F8B38FC88895AB"><enum>(c)</enum><header>Amendment to section 2009</header><text><external-xref legal-doc="usc" parsable-cite="usc/39/2009">Section 2009</external-xref> is amended in the next to last sentence—</text>
<paragraph id="H256EA4FAA9D2495898891B1169245FF0"><enum>(1)</enum><text>by striking <quote>, and (3)</quote> and inserting <quote>, (3)</quote>; and</text> </paragraph>
<paragraph id="H7687787524974A448A7B9CD93CDAE9EB"><enum>(2)</enum><text>by striking the period and inserting <quote>, 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 <short-title>Postal Reform Act of 2013</short-title>.</quote>.</text> </paragraph></subsection></section>
<section id="H742306E9D34A4B38AA8B63174CA5A2DA"><enum>206.</enum><header>Responsibilities and powers</header><text display-inline="no-display-inline">The exercise of the powers of the Postal Service shall be directed by the Authority, including—</text>
<paragraph id="H1EE58C9824984848A6965C70817D1F98"><enum>(1)</enum><text>all duties and responsibilities ascribed to the Governors and the Board of Governors by title 39, United States Code;</text> </paragraph>
<paragraph id="HCCBF4AE7DFB04C3FBC8092B7C3B416BB"><enum>(2)</enum><text>determining the overall strategies of the Postal Service;</text> </paragraph>
<paragraph id="HAD180E99F1A0474F87AE4F36CDFFD8D2"><enum>(3)</enum><text>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;</text> </paragraph>
<paragraph id="H8C246DF8D0C2486581D2B6A0CE9E89A5"><enum>(4)</enum><text>approving major policies, particularly those that have an important effect on the Postal Service’s financial position and the provision of universal postal service;</text> </paragraph>
<paragraph id="HF608FBF2C0164D298C1E9DE6200B09C4"><enum>(5)</enum><text>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;</text> </paragraph>
<paragraph id="H7761D848B4E644FABDCF1B2C8A395A9F"><enum>(6)</enum><text>formulating and communicating organizational policy and positions on legislative and other public policy matters to Congress and the public; and</text> </paragraph>
<paragraph id="HD88B5EA29FBF44C3BC8F91C07D4BF9A9"><enum>(7)</enum><text>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.</text> </paragraph></section>
<section id="HE11B3169B3BF41ACB8BEABFDE95D8782"><enum>207.</enum><header>Development of financial plan and budget for the solvency of the Postal Service</header>
<subsection commented="no" id="H200CCB349CB14E879AC3B6703FA45AC0"><enum>(a)</enum><header>Development of financial plan and budget</header><text display-inline="yes-display-inline">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.</text> </subsection>
<subsection id="H5EA1849EF2D6483E923B094E68E7B678"><enum>(b)</enum><header>Contents of financial plan and budget</header><text>A financial plan and budget under this section for a fiscal year shall specify the budget for the Postal Service as required by <external-xref legal-doc="usc" parsable-cite="usc/39/2009">section 2009</external-xref> 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:</text>
<paragraph id="H9A89BC062E0A44E2BEBE7828C9FE14EB"><enum>(1)</enum><text>The financial plan and budget shall meet the requirements described in subsection (c) to promote the financial stability of the Postal Service.</text> </paragraph>
<paragraph id="HA85D93336A2A4F84B853F87C362DC777"><enum>(2)</enum><text>The financial plan and budget shall—</text>
<subparagraph id="HAF4E4037D0984044ADCE00F951CA5C11"><enum>(A)</enum><text>include the Postal Service’s annual budget program (under <external-xref legal-doc="usc" parsable-cite="usc/39/2009">section 2009</external-xref> of title 39, United States Code) and the Postal Service’s plan commonly referred to as its <quote>Integrated Financial Plan</quote>;</text> </subparagraph>
<subparagraph id="HB9957A16D7124463AEBF902CFFE44409"><enum>(B)</enum><text>describe lump-sum expenditures by all categories traditionally used by the Postal Service;</text> </subparagraph>
<subparagraph id="H144AEC7E222D438E869055DF5D16A623"><enum>(C)</enum><text>describe capital expenditures (together with a schedule of projected capital commitments and cash outlays of the Postal Service and proposed sources of funding);</text> </subparagraph>
<subparagraph id="H61A8AAF8ADFA4E15B27C8BC197B6B1EA"><enum>(D)</enum><text>contain estimates of overall debt (both outstanding and anticipated to be issued); and</text> </subparagraph>
<subparagraph id="HF2D7B28A47974A3DA700C67DF17815A2"><enum>(E)</enum><text>contain cash flow and liquidity forecasts for the Postal Service at such intervals as the Authority may require.</text> </subparagraph></paragraph>
<paragraph id="HE7C2E4A4CFAD44F59273EEEA11061766"><enum>(3)</enum><text>The financial plan and budget shall include a statement describing methods of estimations and significant assumptions.</text> </paragraph>
<paragraph id="H5CB8193CD71F4854845D68584C29D40F"><enum>(4)</enum><text>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—</text>
<subparagraph id="HA26C35453080404D9619F17C643CFD06"><enum>(A)</enum><text>changes in personnel policies and levels for each component of the Postal Service; and</text> </subparagraph>
<subparagraph id="H27DF9AC4ACB846639A90C52C48A36C18"><enum>(B)</enum><text>management initiatives to promote productivity, improvement in the delivery of services, or cost savings.</text> </subparagraph></paragraph></subsection>
<subsection id="H36D25AF9904F42C991930F211E3378C9"><enum>(c)</enum><header>Requirements To promote financial stability</header>
<paragraph id="H20423B9FF2084BF8ACFB5C49C3E72AAC"><enum>(1)</enum><header>In general</header><text>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:</text>
<subparagraph commented="no" id="H60609FDB2D27405C9ED9D8A28BE2F88E"><enum>(A)</enum><text>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.</text> </subparagraph>
<subparagraph id="H3559C6BC289A416AA4EFAEC5E18A473F"><enum>(B)</enum><text>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.</text> </subparagraph>
<subparagraph commented="no" id="H2E4687C0F29D4735BFCA0C78A5A81756"><enum>(C)</enum><text>The financial plan and budget shall provide for the orderly repayment of any outstanding obligations authorized under section 503.</text> </subparagraph>
<subparagraph id="HD12044D9928D46CFB73F55DC57C78937"><enum>(D)</enum><text>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—</text>
<clause id="HC77304C45BC643E1AB87161FF6A96FC1"><enum>(i)</enum><text>the legal authority of the Postal Service;</text> </clause>
<clause id="HA0A8A94D38424C1CB81C16DB99CCDB04"><enum>(ii)</enum><text>the changes in the legal authority and responsibilities of the Postal Service under this Act;</text> </clause>
<clause id="HE491555DDB134DBF93CCD307FAEE151A"><enum>(iii)</enum><text>any cost savings that the Postal Service anticipates will be achieved through negotiations with employees of the Postal Service;</text> </clause>
<clause id="HC711E4246B284968AB3A95445F315BF8"><enum>(iv)</enum><text>projected changes in mail volume;</text> </clause>
<clause id="HEE9EF18AB2E2427EA48B3F4CEA2F0BBF"><enum>(v)</enum><text>the impact of regulations the Postal Service was required by law to promulgate;</text> </clause>
<clause id="HA469508AC9084B08BED513B490C2B122"><enum>(vi)</enum><text>projected changes in the number of employees needed to carry out the responsibilities of the Postal Service; and</text> </clause>
<clause id="H03EEB4301D8D40C695A3ADFFBF1695D5"><enum>(vii)</enum><text>the long-term capital needs of the Postal Service, including the need to maintain, repair, and replace facilities and equipment.</text> </clause></subparagraph></paragraph>
<paragraph id="H9D0EFAD1C10F49C7A4ADC351862A93BF"><enum>(2)</enum><header>Application of sound budgetary practices</header><text>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.</text> </paragraph>
<paragraph id="H776A51EFFBCD4C16B5D6D92AF5AD5C72"><enum>(3)</enum><header>Assumptions based on current law</header><text>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 <deleted-phrase reported-display-style="strikethrough" committee-id="HGO00">Federal law</deleted-phrase><added-phrase reported-display-style="italic" committee-id="HGO00"> Generally Accepted Accounting Principles and Federal law (including regulations)</added-phrase> as in effect at the time of the preparation of such financial plan and budget.</text> </paragraph></subsection>
<subsection id="H3EB6684AFF6948E1B6E50268B57F5DF0"><enum>(d)</enum><header>Definition</header><text>For the purposes of this section, the term <term>long-term solvency</term> 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.</text> </subsection></section>
<section id="H75DF36CCA0E648C1A96635721012D630"><enum>208.</enum><header>Process for submission and approval of financial plan and budget</header>
<subsection id="HAF84CC880A1142ADB917580AFA3B8AD2"><enum>(a)</enum><header>Review by the authority</header><text>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.</text> </subsection>
<subsection id="H2F3D6799338541EEADF2E09FAB632161"><enum>(b)</enum><header>Approval of postmaster general’s financial plan and budget</header>
<paragraph id="H4B19015870CE459AB1486CC79C04CC37"><enum>(1)</enum><header>In general</header><text>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—</text>
<subparagraph id="H4D6BF9DBDB2D4546AB731D7248222699"><enum>(A)</enum><text>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</text> </subparagraph>
<subparagraph id="H4B5437F1A60043268D989D61AED00D57"><enum>(B)</enum><text>the Postmaster General shall promptly submit the annual budget program for the relevant fiscal year to the Office of Management and Budget pursuant to <external-xref legal-doc="usc" parsable-cite="usc/39/2009">section 2009</external-xref> of title 39, United States Code.</text> </subparagraph></paragraph>
<paragraph id="H9A34F791DA3D41C5B53BD1B9C3CDE6FD"><enum>(2)</enum><header>Deemed approval after 30 days</header><text>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).</text> </paragraph></subsection>
<subsection id="H6C02E421F1CA48C3A8ED7EB68F8541FD"><enum>(c)</enum><header>Disapproval of postmaster general’s financial plan and budget</header>
<paragraph id="H492359B5A01C4CE084BF0153DB5CEB0F"><enum>(1)</enum><header>In general</header><text>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—</text>
<subparagraph id="HFAAA6CA431974393AFE213656B100779"><enum>(A)</enum><text>disapprove the financial plan and budget;</text> </subparagraph>
<subparagraph id="HF652EEE00070480DB7D6240E0338B3DC"><enum>(B)</enum><text>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</text> </subparagraph>
<subparagraph id="H8999BDC1FD014FDC8C6AD87A1114BEB4"><enum>(C)</enum><text>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.</text> </subparagraph></paragraph>
<paragraph id="H554FFBB0B40046EAA14A6EAB96BD6F03"><enum>(2)</enum><header>Submission to OMB</header><text>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 <external-xref legal-doc="usc" parsable-cite="usc/39/2009">section 2009</external-xref> of title 39, United States Code.</text> </paragraph></subsection>
<subsection id="H4FA0173E3CA4481287864D26527F6452"><enum>(d)</enum><header>Deadline for transmission of financial plan and budget by the Authority</header><text>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—</text>
<paragraph id="HE5B6ED882BF1408C89966136415337A4"><enum>(1)</enum><text>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</text> </paragraph>
<paragraph id="HAC2C8B8E44254DC4B03CBFF078C5E327"><enum>(2)</enum><text>submit to Congress an approved and recommended financial plan and budget developed by the Authority for the fiscal year under subsection (c)(1)(C).</text> </paragraph></subsection>
<subsection id="HF89C8EFA079F442A9869C6A82741ED89"><enum>(e)</enum><header>Revisions to financial plan and budget</header>
<paragraph id="H727DEA5A016A4A5D8DB1FDC3428F6F03"><enum>(1)</enum><header>Permitting postmaster general to submit revisions</header><text>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.</text> </paragraph>
<paragraph id="H41A9A46B1EFD436B8AC6138B582C636F"><enum>(2)</enum><header>Process for review, approval, disapproval, and postmaster general action</header><text>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.</text> </paragraph></subsection>
<subsection id="H460922975B5A44BAB3FE39D4BB806ECD"><enum>(f)</enum><header>Requirements of the Authority</header>
<paragraph id="HC61E86401B794989A8CF1E20FC8E7195"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph>
<paragraph id="H2EFF7481D6D4418F88096AF2F2929AAE"><enum>(2)</enum><header>Additional fiduciary actions</header><text>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 <term>total operating expenses</term> 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.</text> </paragraph></subsection></section>
<section id="H1F0705BDF86D49F6A98D15BDE0C1DE53"><enum>209.</enum><header>Dissolution of the Authority; reconstitution of the Board of Governors</header>
<subsection id="H1E279CD03C864DA8A1F8B75A8CB961B6"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Effective as of the date on which the control period terminates (as determined under section 202(b)(5))—</text>
<paragraph id="H4F3822A37A6C4D8DA783F2292D751F5E"><enum>(1)</enum><text>the Authority is dissolved; and</text> </paragraph>
<paragraph id="HAC0178F8C78A41E4A9942779024A3F17"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/39/202">section 202</external-xref> 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:</text>
<quoted-block display-inline="no-display-inline" id="H1C0D5C45BD374F2CADFA090601C27483" style="USC">
<subsection id="H2F75A385D8AC408E827E16C86159FB58"><enum>(a)</enum>
<paragraph commented="no" display-inline="yes-display-inline" id="H3492C7B0C2AE4D09A6A9DBC333177054"><enum>(1)</enum><text display-inline="yes-display-inline">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.</text> </paragraph>
<paragraph id="H8B89BD2DBE024C508BB3FE676FEB6952" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text> </paragraph>
<paragraph id="H843E84CB59FB4F3CB2C953470CE9276C" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">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).</text> </paragraph></subsection>
<subsection id="H99DBB21133574A6BB368005658849E9F"><enum>(b)</enum>
<paragraph commented="no" display-inline="yes-display-inline" id="H629FAFD4BE814CB39435347AA2448D4D"><enum>(1)</enum><text>The terms of the 5 Governors shall be 7 years, except that—</text>
<subparagraph id="H4B5AD19C0F134DCA9F9E8C4AD94EF900" indent="up1"><enum>(A)</enum><text>upon the reconstitution of the Board of Governors pursuant to the <short-title>Postal Reform Act of 2013</short-title>—</text>
<clause id="H102973827388424D94E7BEECBA0F0D1F"><enum>(i)</enum><text>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 <short-title>Postal Reform Act of 2013</short-title>) shall become the initial members of the reconstituted Board of Governors; and</text> </clause>
<clause id="H55036FE383A84B82B9F656E64DEB78E6"><enum>(ii)</enum><text>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—</text>
<subclause id="H4B4A5C7C97594196A700FCD80161174F"><enum>(I)</enum><text>the control period (as so defined) had not terminated; and</text> </subclause>
<subclause id="H71EA2E177E9D4F5E8974D14B46432B30"><enum>(II)</enum><text>such individual had remained a member of the Postal Service Financial Responsibility and Management Assistance Authority; and</text> </subclause></clause></subparagraph>
<subparagraph id="HFC01010361FF48A7AEC3F2419C97602E" indent="up1"><enum>(B)</enum><text>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—</text>
<clause id="H9FF4FECFF5424319B245B6563E21AEAF"><enum>(i)</enum><text>shall be for a period of years not less than 3 years and not more than 7 years; and</text> </clause>
<clause id="HFBB80B82A9884EBC8D402DB0AC4EE766"><enum>(ii)</enum><text display-inline="yes-display-inline">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)).</text> </clause></subparagraph></paragraph>
<paragraph id="HCBF7130226B7405C8E038B2D7464787D" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text> </paragraph>
<paragraph id="H33119A02A4614D74A5FB6265FDD941A1" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">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—</text>
<subparagraph id="H8C4113EBDA824709BD398AAF5DB90A29"><enum>(A)</enum><text display-inline="yes-display-inline">the Postal Service Financial Responsibility and Management Assistance Authority; or</text> </subparagraph>
<subparagraph id="HECB3F7538905433FB1EB6FD88E5406B9"><enum>(B)</enum><text display-inline="yes-display-inline">the Board of Governors, as constituted before the start of the control period.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="H39B260E2271B47ADA18F988462846484"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph id="H1A495A2D79FA4ED699D618133894E205"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/39/102">Section 102(3)</external-xref> is amended by striking <quote>9</quote> and inserting <quote>5</quote>; and</text> </paragraph>
<paragraph id="H8F3EB08C49B641D0BDDCFB746E5F361F"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/39/205">Section 205(c)</external-xref> is amended by striking all after <quote>present, and</quote> and inserting <quote>an absolute majority of the Governors in office shall constitute a quorum for the transaction of business by the Board.</quote>.</text> </paragraph></subsection></section></subtitle>
<subtitle id="H71D377CBCC86469B9E5551923A8507B1"><enum>B</enum><header>Other Matters</header>
<section commented="no" id="HE91BDE925FB5457A85471A2D6EED34B1"><enum>211.</enum><header>Appointment of the Postal Service Inspector General</header>
<subsection id="H93BD75CDE4424DE5A836C467DF98DEF5"><enum>(a)</enum><header>Appointment of Inspector General of the Postal Service by President</header><text>The Inspector General Act of 1978 (5 U.S.C. App.) is amended—</text>
<paragraph id="H087546CFCDD247949C2E933C695D4C51"><enum>(1)</enum><text>in section 8G—</text>
<subparagraph id="H09C6B64AA9E34B38B83E7C98D9E606DD"><enum>(A)</enum><text>in subsection (a)—</text>
<clause id="HFA5F45C3E5DA4594BFC2F47B1B6B95EA"><enum>(i)</enum><text>in paragraph (2), by striking <quote>the Postal Regulatory Commission, and the United States Postal Service</quote> and inserting <quote>and the Postal Regulatory Commission</quote>;</text> </clause>
<clause id="H45281189FADD4E3F85B683CDD40C3F7A"><enum>(ii)</enum><text>in paragraph (3), by striking <quote>subsection (h)(1)</quote> and inserting <quote>subsection (g)(1)</quote>; and</text> </clause>
<clause id="H52DC9C9639FC4A9BB4FEA32671F9D6CC"><enum>(iii)</enum><text>in paragraph (4)—</text>
<subclause id="H1D213362C6204A1EA76FEB0E5E9EF917"><enum>(I)</enum><text>in the matter preceding subparagraph (A), by striking <quote>subsection (h)(1)</quote> and inserting <quote>subsection (g)(1)</quote>;</text> </subclause>
<subclause id="H2AD0CA8CC7B14EC68CD415BA7D967297"><enum>(II)</enum><text>by striking subparagraph (B); and</text> </subclause>
<subclause id="HD3D42AD5684C439781AE313D3F694C3C"><enum>(III)</enum><text>by redesignating subparagraphs (C) through (H) as subparagraphs (B) through (G), respectively;</text> </subclause></clause></subparagraph>
<subparagraph id="H7C481613FD714CFEA8EE2E56D1F218D8"><enum>(B)</enum><text>in subsection (c), by striking <quote>Except as provided under subsection (f) of this section, the</quote> and inserting <quote>The</quote>;</text> </subparagraph>
<subparagraph id="H87EF6557CCA5492D8F39878F9EF164D2"><enum>(C)</enum><text>by striking subsection (f); and</text> </subparagraph>
<subparagraph id="H90B6910DDB7D48B89CECF2C0887579AC"><enum>(D)</enum><text>by redesignating subsections (g) and (h) as subsections (f) and (g), respectively;</text> </subparagraph></paragraph>
<paragraph id="H89F7613AAFC848C1B8946BAC813522F4"><enum>(2)</enum><text>by inserting after section 8L the following:</text>
<quoted-block display-inline="no-display-inline" id="H2C7DA92462FB4B1A8546A3C24DECD7D5" style="OLC">
<section id="HBBED9E2F9B054043A074E24ECE6463AC"><enum>8M.</enum><header>Special provisions concerning the Inspector General of the United States Postal Service</header>
<subsection id="H25C43101710A4389873B514CF394D1C1"><enum>(a)</enum><header>Oversight of Postal Inspection Service</header><text>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 <quote>Inspector General</quote>) 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.</text> </subsection>
<subsection id="H519BF0D5EC6440A598ABB1BABD1E70F4"><enum>(b)</enum><header>Supervision; additional duties and responsibilities; report</header>
<paragraph id="H4AF9D19DE4304A0AA8663BD292979252"><enum>(1)</enum><header>Authority, direction, and control</header>
<subparagraph id="H716AA32D7EC249538034D8475B511272"><enum>(A)</enum><header>Audits, investigations, subpoenas</header><text>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—</text>
<clause id="HB1E20804B36D49DA98DFB6C263BF7C49"><enum>(i)</enum><text>ongoing civil or criminal investigations or proceedings;</text> </clause>
<clause id="H3BB2C0D022504405BCE21A620F1ED5B4"><enum>(ii)</enum><text>undercover operations;</text> </clause>
<clause id="HA92A874E49224C3A89A7A1B8C0BC5A86"><enum>(iii)</enum><text>the identity of confidential sources, including protected witnesses;</text> </clause>
<clause id="H5DE090E3A1C5452398936A4FC311DCE2"><enum>(iv)</enum><text>intelligence or counterintelligence matters; or</text> </clause>
<clause id="HCA10CA32D3D94991B5960A3FF82C9E35"><enum>(v)</enum><text>other matters the disclosure of which would constitute a serious threat to national security.</text> </clause></subparagraph>
<subparagraph id="H436F2704239742DE95FB838820903172"><enum>(B)</enum><header>Authority of Governors</header><text>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.</text> </subparagraph>
<subparagraph id="H97FDF94331BB464FA9659B1C7F42A726"><enum>(C)</enum><header>Notice required</header><text>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.</text> </subparagraph></paragraph>
<paragraph id="HAB9BBA24A69B427FAA53270E5C469A3C"><enum>(2)</enum><header>Additional duties and responsibilities</header><text display-inline="yes-display-inline">In carrying out the duties and responsibilities specified in this Act, the Inspector General—</text>
<subparagraph id="H1A70AA299EC5471BB47C7A5FA118D868"><enum>(A)</enum><text>may initiate, conduct, and supervise such audits and investigations in the United States Postal Service as the Inspector General considers appropriate; and</text> </subparagraph>
<subparagraph id="H2F0FB6FE91C6417183BF40574D3684D1"><enum>(B)</enum><text>shall give particular regard to the activities of the Postal Inspection Service with a view toward avoiding duplication and insuring effective coordination and cooperation.</text> </subparagraph></paragraph>
<paragraph id="H3A46DF71526C4D0FAD293BA148F8845D"><enum>(3)</enum><header>Report required</header><text>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.</text> </paragraph></subsection>
<subsection id="H02A9F56900B2493EA3F26830D045CC7D"><enum>(c)</enum><header>Governors defined</header><text>As used in this section, the term <term>Governors</term> has the meaning given such term by <external-xref legal-doc="usc" parsable-cite="usc/39/102">section 102(3)</external-xref> of title 39, United States Code.</text> </subsection>
<subsection id="H8F06B9B5F66E4EB5A12DA79A5A1A93DE"><enum>(d)</enum><header>Authorization of appropriations</header><text>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.</text> </subsection></section><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HB9D826C2F7A94117959CDA03E1AED6DE"><enum>(3)</enum><text>in section 12—</text>
<subparagraph id="H49B255C1ECD74B14826D5CCDF3B29BC9"><enum>(A)</enum><text>in paragraph (1), by striking <quote>or the Federal Cochairpersons of the Commissions established under <external-xref legal-doc="usc" parsable-cite="usc/40/15301">section 15301</external-xref> of title 40, United States Code</quote> and inserting <quote>the Federal Cochairpersons of the Commissions established under <external-xref legal-doc="usc" parsable-cite="usc/40/15301">section 15301</external-xref> of title 40, United States Code; or the Board of Governors of the United States Postal Service</quote>; and</text> </subparagraph>
<subparagraph id="H2585166F173D4657B0E791C03019B553"><enum>(B)</enum><text>in paragraph (2), by striking <quote>or the Commissions established under <external-xref legal-doc="usc" parsable-cite="usc/40/15301">section 15301</external-xref> of title 40, United States Code</quote> and inserting <quote>the Commissions established under <external-xref legal-doc="usc" parsable-cite="usc/40/15301">section 15301</external-xref> of title 40, United States Code, or the United States Postal Service</quote>.</text> </subparagraph></paragraph></subsection>
<subsection id="HFB2CCF93F50D424C9AB65413878662AD"><enum>(b)</enum><header>Technical and conforming amendments</header><text>Title 39, United States Code, is amended—</text>
<paragraph id="HAF142401839B475C9DC8E8A0185AF780"><enum>(1)</enum><text>in section 102(4), by striking <quote>section 202(e) of this title</quote> and inserting <quote>section 3 of the Inspector General Act of 1978 (5 U.S.C. App.)</quote>;</text> </paragraph>
<paragraph id="HE39A7413EE2944B2AEF97A598C8EC502"><enum>(2)</enum><text>in section 1001(b), in the first sentence, by inserting <quote>and <external-xref legal-doc="usc-act" parsable-cite="usc-act/Inspector General Act of 1978 /3">section 3</external-xref> of the Inspector General Act of 1978 (5 U.S.C. App.)</quote> after <quote>1001(c) of this title</quote>;</text> </paragraph>
<paragraph id="H4962AF416F1F465DBF0D4CE5030911EC"><enum>(3)</enum><text>in section 1003(a), by striking <quote>8G</quote> and inserting <quote>8M</quote>;</text> </paragraph>
<paragraph id="H4EFC7D9381AA4425B239085B869D1A2F"><enum>(4)</enum><text>in section 1005(a)(3), by inserting <quote>and <external-xref legal-doc="usc-act" parsable-cite="usc-act/Inspector General Act of 1978 /3">section 3</external-xref> of the Inspector General Act of 1978 (5 U.S.C. App.)</quote> after <quote>1001(c) of this title</quote>;</text> </paragraph>
<paragraph id="H1F8A08C321934DA28AED75821B8CA1C7"><enum>(5)</enum><text>in section 2003(e) by striking <quote>8G(f)</quote> and inserting <quote>8M(d)</quote>; and</text> </paragraph>
<paragraph id="HC154EC0CDA004DD9984B0E4DFC144C21"><enum>(6)</enum><text>in section 2009 by striking <quote>8G(f)</quote> and inserting <quote>8M(d)</quote>.</text> </paragraph></subsection>
<subsection id="H5D5862A085534869AC1B045B6A0D2018"><enum>(c)</enum><header>Applicability</header>
<paragraph id="HD34A6992F2814A42A0A741AA2A28DC26"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H516FFAC4259745A79EBF4D7431739453"><enum>(2)</enum><header>Rule of construction</header><text>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.</text> </paragraph></subsection></section>
<section id="H71080513428C43FA861DC34DA22CF08A"><enum>212.</enum><header>Membership of the Board of Governors</header>
<subsection id="H766A15AB78F0486189EFE8DD99E8D6D2"><enum>(a)</enum><header>Postmaster General</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/39/202">Section 202(c)</external-xref> is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H055ADF3915754246950E8510F97746B8" style="USC">
<subsection id="H66317EAFDD434519911E99827863AA3D"><enum>(c)</enum><text display-inline="yes-display-inline">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.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H6CAB7F5A56264B278CBAAA2E05B185EA"><enum>(b)</enum><header>Deputy Postmaster General</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/39/202">Section 202(d)</external-xref> is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H298643C7431B44F2884D2F2B03C45C93" style="USC">
<subsection id="H1FD787522E4E446693B70D494830C41B"><enum>(d)</enum><text display-inline="yes-display-inline">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.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section></subtitle>
<enum>III</enum><header>Postal Service Workforce</header>
<section id="H01F048955AA348B39481FACD9800D9A8"><enum>301.</enum><header>Applicability of reduction-in-force procedures</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/39/1206">Section 1206</external-xref> is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H65FB20AD6367445E9E5E751ECFA7159A" style="USC">
<subsection id="HC75F1F09BE9743C89C654D68CAAC45D5"><enum>(d)</enum><text display-inline="yes-display-inline">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.</text> </subsection>
<subsection id="HA99F17DEAEF14F148237F3B590981857"><enum>(e)</enum>
<paragraph commented="no" display-inline="yes-display-inline" id="HD6F307042DCF44758874A3F969C01D45"><enum>(1)</enum><text display-inline="yes-display-inline">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—</text>
<subparagraph id="HD76FE3C057C140F394D69CDAB31D5EFC" indent="up1"><enum>(A)</enum><text>the alternative procedures (or, if 2 or more are agreed to, 1 of the alternative procedures); or</text> </subparagraph>
<subparagraph id="H72714299C0D4407C8875D933168FDF4D" indent="up1"><enum>(B)</enum><text>the reduction-in-force procedures under title 5.</text> </subparagraph></paragraph>
<paragraph id="HEF8E013F74BF436BA8744DCD4834FAFB" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section>
<section id="H06ED75311C83456BA681340D98DFD4E0"><enum>302.</enum><header>Postal Service FEHBP and FEGLI funding requirements</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/39/1005">Section 1005(d)(1)</external-xref> is amended—</text>
<paragraph commented="no" id="H37BB870BE96D4D91B5D65A88CEDFCAAC"><enum>(1)</enum><text>in the first sentence, by striking <quote>chapters 83 and 84</quote> and inserting <quote>chapters 83, 84, 87, and 89</quote>; and</text> </paragraph>
<paragraph id="H0C399005B9894047B4442AB99226C0A9"><enum>(2)</enum><text>by adding at the end the following: <quote>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.</quote>.</text> </paragraph></section>
<section id="H163CE2DEB3914696A11157831C9928BE"><enum>303.</enum><header>Repeal of provision relating to overall value of fringe benefits</header><text display-inline="no-display-inline">The last sentence of <external-xref legal-doc="usc" parsable-cite="usc/39/1005">section 1005(f)</external-xref> is repealed.</text> </section>
<section id="H0BA516510830409897B64CCEB5BD8439"><enum>304.</enum><header>Modifications relating to determination of pay comparability</header>
<subsection id="H3DE1E1A591CF4F398D095BC5B9B5D93E"><enum>(a)</enum><header>Postal policy</header><text display-inline="yes-display-inline">The first sentence of <external-xref legal-doc="usc" parsable-cite="usc/39/101">section 101(c)</external-xref> is amended—</text>
<paragraph id="H60D33E1D1BE04F1D8AC8E52964E9E6B7"><enum>(1)</enum><text>by inserting <quote>total</quote> before <quote>rates and types of compensation</quote>; and</text> </paragraph>
<paragraph id="HAC56D6B8B8A943CC89C094CA71A212FE"><enum>(2)</enum><text>by inserting <quote>entire</quote> before <quote>private sector</quote>.</text> </paragraph></subsection>
<subsection id="H1F788E72AF294D9B8D0C0987D673D734"><enum>(b)</enum><header>Employment policy</header><text>The second sentence of <external-xref legal-doc="usc" parsable-cite="usc/39/1003">section 1003(a)</external-xref> is amended—</text>
<paragraph id="H6FD521A36D4543AC9F7C462D2575DDE6"><enum>(1)</enum><text>by inserting <quote>total</quote> before <quote>compensation and benefits</quote> each place it appears; and</text> </paragraph>
<paragraph id="H5B6152025D5E4775BBFA95648D5D0B62"><enum>(2)</enum><text>by inserting <quote>entire</quote> before <quote>private sector</quote>.</text> </paragraph></subsection>
<subsection id="HD0E4F6B7B31049E7838500EB3D96A2C3"><enum>(c)</enum><header>Considerations</header><text display-inline="yes-display-inline">For purposes of the amendments made by this section, any determination of <term>total rates and types of compensation</term> or <term>total compensation and benefits</term> shall, at a minimum, take into account pay, health benefits, retirement benefits, life insurance benefits, leave, holidays, and continuity and stability of employment.</text> </subsection></section>
<section id="H4AF1464954AB4B7B8AB970589E6FE00D"><enum>305.</enum><header>Last-best-final-offer negotiations</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/39/1207">Section 1207</external-xref> is amended by striking subsections (c) and (d) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H73FF18D06AAC4AD3A91BA16AA2E07E1F" style="USC">
<subsection id="H00646B2A001A40A985640F6D4E3B2145"><enum>(c)</enum>
<paragraph commented="no" display-inline="yes-display-inline" id="H70A70D4A21C44E22A711871BD143E998"><enum>(1)</enum><text display-inline="yes-display-inline">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).</text> </paragraph>
<paragraph id="H88093BCA403C4D158A0F6EE664F512C6" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text> </paragraph>
<paragraph id="HC995A76751F2471088B0839D894E964B" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">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.</text> </paragraph>
<paragraph id="H82600715F8294C7782DBD7C40DA2FE97" indent="up1"><enum>(4)</enum><text display-inline="yes-display-inline">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.</text> </paragraph>
<paragraph id="H3ACB43AED7C84917ABA2052D3DFF9675" indent="up1"><enum>(5)</enum><text display-inline="yes-display-inline">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.</text> </paragraph>
<paragraph id="H1AB1A11C798C404D93C301B55B9BB7C8" indent="up1"><enum>(6)</enum><text display-inline="yes-display-inline">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).</text> </paragraph>
<paragraph id="HDED46B8326E14806A452AC62D78A0E81" indent="up1"><enum>(7)</enum>
<subparagraph commented="no" display-inline="yes-display-inline" id="H9B5E6CAC96994ECD8DB2DA54468A1E1E"><enum>(A)</enum><text>The arbitration board may not select a final offer package under paragraph (6) unless it satisfies each of the following:</text>
<clause id="H0F7AC70E85134776B9DEB93C75798226" indent="up1"><enum>(i)</enum><text>The offer complies with the requirements of sections 101(c) and 1003(a).</text> </clause>
<clause id="H57B00A1F2067429EA5FB7BBF7F0DDBA7" indent="up1"><enum>(ii)</enum><text>The offer takes into account the current financial condition of the Postal Service.</text> </clause>
<clause id="H13837B8EAA044A278C03C1A2114598B5" indent="up1"><enum>(iii)</enum><text>The offer takes into account the long-term financial condition of the Postal Service.</text> </clause></subparagraph>
<subparagraph id="H964CD73080EE44DD8AEAE09E9A15C4FF" indent="up1"><enum>(B)</enum>
<clause commented="no" display-inline="yes-display-inline" id="H23D53D0A9EEB4A3E8A5031CF04CF3EB5"><enum>(i)</enum><text>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—</text>
<subclause id="H49EA075B60634DB3BAD649B02C4E1F3C" indent="up1"><enum>(I)</enum><text>select the package that best meets such conditions; and</text> </subclause>
<subclause id="H303623B0247F4B05A62342712C704DCD" indent="up1"><enum>(II)</enum><text>modify the package so selected to the minimum extent necessary to satisfy such conditions.</text> </subclause></clause>
<clause id="HD35B8A91DAA44D4DB33A6164C3870745" indent="up1"><enum>(ii)</enum><text>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.</text> </clause></subparagraph></paragraph>
<paragraph id="HCE3D043D3AD246F6B8668EB5EEDAB5F7" indent="up1"><enum>(8)</enum><text display-inline="yes-display-inline">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.</text> </paragraph>
<paragraph id="H7CD8672B47FB4874BA65236BA7851591" indent="up1"><enum>(9)</enum><text display-inline="yes-display-inline">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.</text> </paragraph>
<paragraph id="H639E7AB979A4442389087C6514F5B96F" indent="up1"><enum>(10)</enum><text>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.</text> </paragraph>
<paragraph id="HB093DDFAA642442588E0E8BC13EBC079" indent="up1"><enum>(11)</enum><text display-inline="yes-display-inline">A final award or agreement under this subsection shall be conclusive and binding upon the parties.</text> </paragraph>
<paragraph id="H95CCE9FD8BE0449699BADA17D8F1ABF4" indent="up1"><enum>(12)</enum><text display-inline="yes-display-inline">Costs of the arbitration board and mediation shall be shared equally by the Postal Service and the bargaining representative.</text> </paragraph></subsection>
<subsection id="H46B2309D5FA14D1B90FC83B6DF16C24E"><enum>(d)</enum><text>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).</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section>
<section id="HE11C0C3FDF5B45809B5A27617984E8AA" section-type="subsequent-section"><enum>306.</enum><header>Postal Service workers’ compensation reform</header>
<subsection id="H5BF00BCA339840A8A77C6841C30FA863"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Effective 12 months after the triggering date of this section (as defined in subsection (e)(2)), <external-xref legal-doc="usc" parsable-cite="usc/39/1005">section 1005</external-xref> is amended by striking subsection (c) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HEBD53D4D427B434DB0E7EA65D77C5B27" style="USC">
<subsection id="HC3C9881E3CA8493DA09E6C37A67547A4"><enum>(c)</enum>
<paragraph commented="no" display-inline="yes-display-inline" id="H19471AE07BD04D0CA09E0DC3E5923080"><enum>(1)</enum><text>For purposes of this subsection—</text>
<subparagraph id="H02A881C0005A4FD3AA0976ED75463CC5" indent="up1"><enum>(A)</enum><text>the term <term>postal employee</term> means an officer or employee of the Postal Service or the former Post Office Department; and</text> </subparagraph>
<subparagraph id="H529F0E05E6C147508C50F72099991118" indent="up1"><enum>(B)</enum><text>the term <term>retirement age</term> has the meaning given such term under section 216(l)(1) of the Social Security Act.</text> </subparagraph></paragraph>
<paragraph id="HF2BD0F33B9D64F3AA9F28CF047D836DB" indent="up1"><enum>(2)</enum><text>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.</text> </paragraph>
<paragraph id="HDB6595A1D28B480999263306875F30B1" indent="up1"><enum>(3)</enum><text>The program under this subsection—</text>
<subparagraph id="H9C3DE64CC6D3481D976A789CC2101C07"><enum>(A)</enum><text>shall be designed by the Postal Service in consultation with appropriate employee representatives;</text> </subparagraph>
<subparagraph id="H6BC88CE29CBD4EFDA5ADEA52683F1747"><enum>(B)</enum><text>shall not provide for any amount payable to a disabled postal employee to be augmented on the basis of number of dependents; and</text> </subparagraph>
<subparagraph id="H01B715B156B84BC5828A048686F598C6"><enum>(C)</enum><text>shall include provisions for automatic transition, upon attainment of retirement age, to benefits involving, coordinated with, or otherwise determined by reference to retirement benefits.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HAFE3EB8F638D487C8D99DE3D1533B7F7"><enum>(b)</enum><header>Recommendations</header><text>Not later than 6 months after the triggering date—</text>
<paragraph id="H6CFB1991596A47069CA3BE0EDBD54114"><enum>(1)</enum><text display-inline="yes-display-inline">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</text> </paragraph>
<paragraph commented="no" id="H7A5571715D944BAAA00C4F9A6ADE4BDF"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text> </paragraph></subsection>
<subsection id="H83C63336CE0C4E52B01B85FAB48B49D6"><enum>(c)</enum><header>Notification requirements</header><text>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 <external-xref legal-doc="usc" parsable-cite="usc/39/1005">section 1005(c)</external-xref> of title 39, United States Code, as amended by subsection (a). Included in the notification provided under the preceding sentence shall be—</text>
<paragraph id="H45EF57C777D04EAE9165A8E8C895B851"><enum>(1)</enum><text>a detailed statement of the benefits to be offered and the persons eligible to receive those benefits;</text> </paragraph>
<paragraph id="HEC951D79C2A94457953D0CA34E2BB343"><enum>(2)</enum><text>provisions to ensure an orderly transition to the system proposed to be implemented; and</text> </paragraph>
<paragraph id="H013902D0E5FA45A2848B71CE04485621"><enum>(3)</enum><text>such other information as the Postal Service considers appropriate.</text> </paragraph></subsection>
<subsection id="H6F9F8DA4565D4A868EB686235AAC8BD1"><enum>(d)</enum><header>Commencement date</header><text>The program under <external-xref legal-doc="usc" parsable-cite="usc/39/1005">section 1005(c)</external-xref> of title 39, United States Code, as amended by subsection (a)—</text>
<paragraph id="H1A553894BEFB40AE9DFA8F6D57BA82FA"><enum>(1)</enum><text>shall begin to operate on such date as the Postmaster General shall determine, except that such date shall be a date occurring—</text>
<subparagraph id="HDD1774C947C9449B82AC264B402D98D2"><enum>(A)</enum><text>not earlier than 12 months after the triggering date; and</text> </subparagraph>
<subparagraph id="H51ACA9DEF93C41D8A232C7A30D02C2CF"><enum>(B)</enum><text>not later than 24 months after the triggering date; and</text> </subparagraph></paragraph>
<paragraph id="H62A087C664C44C30A507CF6D353C9023"><enum>(2)</enum><text>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.</text> </paragraph></subsection>
<subsection id="HDF9AE5F7C791471A9CAFC1569E446F4C"><enum>(e)</enum><header>Condition precedent</header>
<paragraph id="H31BFCCA1E9E74A65A04EC378E98159A9"><enum>(1)</enum><header>In general</header><text>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)—</text>
<subparagraph id="HD6DF5EDBE655441185118EDD000E7466"><enum>(A)</enum><text>makes a written determination that conditions warrant their implementation; and</text> </subparagraph>
<subparagraph id="H309DDF9687B94ED7B3DD2D0D3234669A"><enum>(B)</enum><text>submits such written determination to the Postal Service, the Office of Personnel Management, and the appropriate committees of Congress.</text> </subparagraph></paragraph>
<paragraph id="H4942BCFA0068433C8DD1F37DA0073C81"><enum>(2)</enum><header>Triggering date</header><text>For purposes of this section, the term <term>triggering date of this section</term> or <term>triggering date</term> means the date described in paragraph (1).</text> </paragraph></subsection>
<subsection id="H2D8F7EC209584A87B84D577A56847998"><enum>(f)</enum><header>Appropriate committees of Congress defined</header><text>For purposes of this section, the term <term>appropriate committees of Congress</term> means—</text>
<paragraph id="H57948FC261BA46E8AB7869C90691BB69"><enum>(1)</enum><text>the Committee on Oversight and Government Reform of the House of Representatives; and</text> </paragraph>
<paragraph id="H1211AED40C474DAAA27A7462B857C2AB"><enum>(2)</enum><text display-inline="yes-display-inline">the Committee on Homeland Security and Governmental Affairs of the Senate.</text> </paragraph></subsection></section>
<section id="H6BEC5588F07F4D7FB89CBE629752BCA0" section-type="subsequent-section"><enum>307.</enum><header>Reporting requirement</header>
<subsection id="H9C04D3906B944CFC959E219191918AD5"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc-chapter/39/10">Chapter 10</external-xref> is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H2867893DE992434584E258177CAA61FC" style="USC">
<section id="HC385DC6C5B664950B05CB6F259B4F2C0"><enum>1012.</enum><header>Official time reporting</header>
<subsection id="H2AAD809944D3480AAAF520E86CB2B498"><enum>(a)</enum><text>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.</text> </subsection>
<subsection id="H63F756136CC1444499A3D799FD56BE78"><enum>(b)</enum><text>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:</text>
<paragraph id="HDBA3A0F237EC444F8045098378428E94"><enum>(1)</enum><text>The total amount of official time granted to employees.</text> </paragraph>
<paragraph id="H0D76B28138674204BE697152D0686392"><enum>(2)</enum><text>The average amount of official time expended per bargaining unit employee.</text> </paragraph>
<paragraph id="HF9132952B3D74ED08F2A091AB7F4C871"><enum>(3)</enum><text>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.</text> </paragraph>
<paragraph id="HFF9CEDCA45A649F59E19D4B59F3E80A9"><enum>(4)</enum><text>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.</text> </paragraph>
<paragraph id="HFBCBE4653FC94DCBBD25620B93DBAA79"><enum>(5)</enum><text>The total amount of compensation (including fringe benefits) afforded to employees in connection with activities or purposes for which they were granted official time.</text> </paragraph></subsection>
<subsection id="H36F3F48B071645B7948EE346AB26F4F9"><enum>(c)</enum><text>All information included in a report by the Postal Service under this subsection with respect to a fiscal year—</text>
<paragraph id="HDB6507A068AA41A98AB3025367191310"><enum>(1)</enum><text>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</text> </paragraph>
<paragraph id="H8680EFF420C74491B39E34B022BC8474"><enum>(2)</enum><text>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.</text> </paragraph></subsection>
<subsection id="H439BB67483554000A0EFA93FA35E696E"><enum>(d)</enum><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>official time</term> means any period of time, regardless of Postal Service nomenclature—</text>
<paragraph id="H540077F75D4E4731A91CFA7682AA4B4F"><enum>(1)</enum><text>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</text> </paragraph>
<paragraph id="HE7EE8999C9224249BCB095A536F5BD77"><enum>(2)</enum><text>during which the employee would otherwise be in a duty status.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H58B66E16C0D84F31B2240BB249D368AA"><enum>(b)</enum><header>Applicability</header><text>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.</text> </subsection>
<subsection id="HC92504A0F23443729560B32BCD5BB624"><enum>(c)</enum><header>Clerical amendment</header><text>The table of sections for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/39/10">chapter 10</external-xref> is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H30541481F52C450CB549DF2BD78D73D7" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">1012. Official time reporting.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section>
<enum>IV</enum><header>Postal Service Revenue</header>
<section id="H12654984ED3B4343B23FF2334791B271"><enum>401.</enum><header>Adequacy, efficiency, and fairness of postal rates</header>
<subsection id="H09B2FED26FDB446D81284E22015E56AC"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/39/3622">Section 3622(d)</external-xref> is amended—</text>
<paragraph id="H8D34291D76B346049A4DCDC43F36FEE8"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1)—</text>
<subparagraph id="H6C35E9058B1A44BC92E7FAF4F07EB7FA"><enum>(A)</enum><text>by redesignating subparagraphs (B) through (E) as subparagraphs (D) through (G), respectively; and</text> </subparagraph>
<subparagraph id="H77D3041CE47E49F1B089F6C47BB3BDD8"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting after subparagraph (A) the following:</text>
<quoted-block display-inline="no-display-inline" id="H568B0DF942054D659A9EE16DA27B7082" style="USC">
<subparagraph id="H1904F9461627450EBA8A5BC401B8BEE2"><enum>(B)</enum><text display-inline="yes-display-inline">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;</text> </subparagraph>
<subparagraph commented="no" id="H1A165870B76A4163AA6ECD9EA42B632B"><enum>(C)</enum><text display-inline="yes-display-inline">establish postal rates for each group of functionally equivalent agreements between the Postal Service and users of the mail that—</text>
<clause commented="no" id="H31B91CE441B442BFB394854E9CC7F8B7"><enum>(i)</enum><text display-inline="yes-display-inline">cover attributable cost;</text> </clause>
<clause commented="no" id="HDB77C883AD424B6691A40A8187041FC3"><enum>(ii)</enum><text display-inline="yes-display-inline">improve the net financial position of the Postal Service; and</text> </clause>
<clause id="H6A7B2F66F99E473E819AE5BBE124D62C"><enum>(iii)</enum><text display-inline="yes-display-inline">do not cause unreasonable disruption in the marketplace, consistent with subsection (c)(10)(B);</text> </clause><continuation-text commented="no" continuation-text-level="subparagraph">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;</continuation-text></subparagraph><after-quoted-block>; </after-quoted-block></quoted-block> </subparagraph></paragraph>
<paragraph id="HE3E1F32A71D14110A0DDDEDADD222705"><enum>(2)</enum><text>in paragraph (3), by striking <quote>subsection (c),</quote> and inserting <quote>subsection (c) and the provisions of title IV of the <short-title>Postal Reform Act of 2013</short-title>,</quote>; and</text> </paragraph>
<paragraph id="H626D576EE9FF4D0ABACFE1481C61DAEF"><enum>(3)</enum><text>by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HDBCB1A57EAFB4A248F0DB7CF6A2A42D8" style="USC">
<paragraph id="H51844E4689F841B385C65510286EA04E"><enum>(4)</enum><header>PRC study</header>
<subparagraph id="HFA1E0F1C6B834E3EAB95D81EFDC97A27"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text> </subparagraph>
<subparagraph id="H2D8B6B97C4334996A28BED1C65701975"><enum>(B)</enum><header>Requirements</header><text>The study required under subparagraph (A) shall—</text>
<clause id="H7DCF87C075714D0DA50BF1420D878901"><enum>(i)</enum><text display-inline="yes-display-inline">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</text> </clause>
<clause id="H78AC16A14839412286ED5C3D83F51467"><enum>(ii)</enum><text display-inline="yes-display-inline">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.</text> </clause></subparagraph></paragraph>
<paragraph id="H674858F2EA1F4035A88F3CCC738D4E32"><enum>(5)</enum><header>Additional rates</header><text display-inline="yes-display-inline">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:</text>
<subparagraph id="H91D48427CA064CC68372BAD40B651956"><enum>(A)</enum><text display-inline="yes-display-inline">The term <term>loss-making</term>, 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.</text> </subparagraph>
<subparagraph id="HB186EA879591489CAB0609D1C337EDD5"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="H989C2DE35C8446FEB70E3C1030650051"><enum>(b)</enum><header>Exception</header><text><external-xref legal-doc="usc" parsable-cite="usc/39/3622">Section 3622(d)</external-xref> is amended by adding after paragraph (5) (as added by subsection (a)(2)) the following:</text>
<quoted-block display-inline="no-display-inline" id="H6A2A5160383D4B408694B89230A75D33" style="USC">
<paragraph id="H8722634B2EB845E0A8B9DEEB47D8BABD"><enum>(6)</enum><header>Exception</header><text display-inline="yes-display-inline">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).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section>
<section id="H71BD958127764A39B7F90A87F6C35176"><enum>402.</enum><header>Repeal of rate preferences for qualified political committees</header><text display-inline="no-display-inline">Subsection (e) of <external-xref legal-doc="usc" parsable-cite="usc/39/3626">section 3626</external-xref> is repealed.</text> </section>
<section id="HE5E1EB2F60844E9288D0D14D50DCE8BC"><enum>403.</enum><header>Use of negotiated service agreements</header>
<subsection id="H57D87EB81EFC46049A3D134F725F9D8A"><enum>(a)</enum><header>Streamlined review of qualifying service agreements for competitive products</header><text><external-xref legal-doc="usc" parsable-cite="usc/39/3633">Section 3633</external-xref> is amended by adding at the end the following:</text>
<quoted-block id="HC5F28C13616149ED90584D8EBD89FAA3" style="OLC">
<subsection id="H50FBEE07A3E44BC9BA201455DDBEDF71"><enum>(c)</enum><header>Streamlined review</header><text>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.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H6D48831525724255AF98527489142B0A"><enum>(b)</enum><header>Submission of service agreements for streamlined review</header><text><external-xref legal-doc="usc" parsable-cite="usc/39/3632">Section 3632(b)</external-xref> is amended—</text>
<paragraph id="HE9D0F02B4D2646CD8D64551AE8D7383D"><enum>(1)</enum><text>by redesignating paragraph (4) as paragraph (5); and</text> </paragraph>
<paragraph id="H5C0F6D890D1845F69C6F06E1217B4769"><enum>(2)</enum><text>by inserting after paragraph (3) the following:</text>
<quoted-block id="H91187947333649A58CE73AAC876EECDB" style="OLC">
<paragraph id="HBF6CD7EF70C748A7A5622F30782655F6"><enum>(4)</enum><header>Rates for streamlined review</header><text>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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="H3759EAF6534A4080A7999D7775F5E661"><enum>(c)</enum><header>Transparency and accountability for service agreements</header>
<paragraph id="H308DE8FB1799406C8FB1D8CCA3711960"><enum>(1)</enum><header>Certain information required to be included in determinations of compliance</header><text><external-xref legal-doc="usc" parsable-cite="usc/39/3653">Section 3653</external-xref> is amended—</text>
<subparagraph id="H4DCD8D5AB48D4DA08D433583A7896692"><enum>(A)</enum><text>by redesignating subsections (c), (d), and (e) as subsections (d), (e), and (f), respectively; and</text> </subparagraph>
<subparagraph id="H5C24EA5215D7484AA1B031D15B05FCB8"><enum>(B)</enum><text>by inserting after subsection (b) the following:</text>
<quoted-block id="H1E9677C67CCB4C6697255CC270C854E1" style="OLC">
<subsection id="H249B5171D50046B4A7B559A8A7801603"><enum>(c)</enum><header>Written determination</header><text>Each annual written determination of the Commission under this section shall include the following:</text>
<paragraph commented="no" id="H9599324365CE43F89AE31A156D0AB4CA"><enum>(1)</enum><header>Requirements</header><text>For each group of functionally equivalent agreements between the Postal Service and users of the mail, whether such group fulfilled requirements to—</text>
<subparagraph commented="no" id="HF7F4A5B2AFD84E9595EB85E20AF42410"><enum>(A)</enum><text>cover costs attributable; and</text> </subparagraph>
<subparagraph commented="no" id="H0A3340DA1F154A71A1F8A740340634BB"><enum>(B)</enum><text>improve the net financial position of the Postal Service.</text> </subparagraph></paragraph>
<paragraph id="H7298EA08A39C44E9BCE59B114237540F"><enum>(2)</enum><header>Noncompliance</header><text>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.</text> </paragraph>
<paragraph id="H42B7B2D7567F433C9D9A7DA6CD366908"><enum>(3)</enum><header>Definition</header><text>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.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph>
<paragraph id="HF42C753692874F6DA1A433D53108BF6F"><enum>(2)</enum><header>Criteria for special classifications relating to market-dominant products</header>
<subparagraph id="HFB34BFE9FAE54084BDE0DC3876EE1034"><enum>(A)</enum><header>Amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/39/3622">Section 3622(c)(10)</external-xref> is amended by striking subparagraphs (A) and (B) and inserting the following:</text>
<quoted-block id="HE361D8CE09684A429BEEF274D5933179" style="OLC">
<subparagraph id="H77F24C14B81E488A9534AD626CEEEC42"><enum>(A)</enum><text>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</text> </subparagraph>
<subparagraph id="H2346BFD4FEBC4063AF9BD1611D47EC84"><enum>(B)</enum><text>do not cause—</text>
<clause id="H2CEA3624E71D4F09A48B45F2D809198F"><enum>(i)</enum><text>unfair competitive advantage for the Postal Service or postal users eligible for the agreements; or</text> </clause>
<clause id="H272E3A034224434CAE534B07B701CB9B"><enum>(ii)</enum><text>unreasonable disruption to the volume or revenues of other postal users.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph>
<subparagraph id="H705767E010654BA894E944B488708374"><enum>(B)</enum><header>Applicability</header><text>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—</text>
<clause id="H6581CD41E5EA4A518B334004FE160D02"><enum>(i)</enum><text>is filed with the Commission on or after such date of enactment; or</text> </clause>
<clause id="H64C925F9766E4D07976C0453FF094568"><enum>(ii)</enum><text>is remanded to the Commission by a court on or after such date of enactment.</text> </clause></subparagraph></paragraph></subsection></section>
<section id="H27898CB5339149E7BD24DDA92871F279"><enum>404.</enum><header>Nonpostal services</header>
<subsection id="H4360D9F9B35F4D1E9035F9AD5788C530"><enum>(a)</enum><header>Nonpostal services</header>
<paragraph id="HBD6BF0FF047C4E1D9EA0E2486BC2F573"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Part IV is amended by adding after chapter 36 the following:</text>
<quoted-block display-inline="no-display-inline" id="H66C48A9A61A04FEAB1E86B96016175B0" style="USC">
<chapter id="H0F94C33D319043CD9EE31E923FA9D46D"><enum>37</enum><header>Nonpostal Services</header>
<toc container-level="chapter-container" idref="H0F94C33D319043CD9EE31E923FA9D46D" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H21B29830000E49139BC9FFF3325EFC37" level="section">Sec.</toc-entry>
<toc-entry level="section">3701. Purpose.</toc-entry>
<toc-entry idref="H8AB7654522894236A780E8E0A1F9166C" level="section">3702. Definitions.</toc-entry>
<toc-entry idref="H5CB68AD384184FAA97FE2AEA0DD2E6D5" level="section">3703. Postal Service advertising program.</toc-entry>
<toc-entry idref="HE4A346833CDD44B199790833CB63B1A4" level="section">3704. Postal Service program for State governments.</toc-entry>
<toc-entry idref="H85BF11BD20144171A5E8EC85B160F243" level="section">3705. Postal Service program for other government agencies.</toc-entry>
<toc-entry idref="H73982DD4CEA74E6CAB2F53FBFEE15457" level="section">3706. Transparency and accountability for nonpostal services.</toc-entry> </toc>
<section id="H21B29830000E49139BC9FFF3325EFC37"><enum>3701.</enum><header>Purpose</header><text display-inline="no-display-inline">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.</text> </section>
<section id="H8AB7654522894236A780E8E0A1F9166C"><enum>3702.</enum><header>Definitions</header><text display-inline="no-display-inline">As used in this chapter—</text>
<paragraph id="HC5CFF7F3001941EDB0A2A5A4E722EBC2"><enum>(1)</enum><text>the term <term>nonpostal services</term> is limited to services offered by the Postal Service that are expressly authorized by this chapter and are not postal products or services;</text> </paragraph>
<paragraph id="HB52B2638734E472A85D7952EB90F03C0"><enum>(2)</enum><text>the term <term>attributable costs</term> has the same meaning as is given such term in section 3631; and</text> </paragraph>
<paragraph id="H77764DE13B3E4AC0886A850E95973CCA"><enum>(3)</enum><text>the term <term>year</term> means a fiscal year.</text> </paragraph></section>
<section id="H5CB68AD384184FAA97FE2AEA0DD2E6D5"><enum>3703.</enum><header>Postal Service advertising program</header><text display-inline="no-display-inline">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:</text>
<paragraph id="H72E26D889FE6483CAEF999B9CCDE0DE1"><enum>(1)</enum><text>The Postal Service shall at all times ensure advertising it permits is consistent with the integrity of the Postal Service.</text> </paragraph>
<paragraph id="HA5C716E603FD46F1B7CB016868DD1D8E"><enum>(2)</enum><text>Any advertising program is required to cover a minimum of 200 percent of its attributable costs in each year.</text> </paragraph>
<paragraph id="H7AF1F39309064965A565CFAAA2601ACB"><enum>(3)</enum><text>All advertising expenditures and revenues are subject to annual compliance determination (including remedies for noncompliance) applicable to nonpostal products.</text> </paragraph>
<paragraph id="HC6F3DA78F7EF41C5A859B8513055C76C"><enum>(4)</enum><text>Total advertising expenditures and revenues must be disclosed in Postal Service annual reports.</text> </paragraph></section>
<section id="HE4A346833CDD44B199790833CB63B1A4"><enum>3704.</enum><header>Postal Service program for State governments</header>
<subsection id="HDE68357FE1524AD08E842520059C60F2"><enum>(a)</enum><header>In general</header><text>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—</text>
<paragraph id="HC30E2577D05D42F083A54EE3A43E32B1"><enum>(1)</enum><text>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;</text> </paragraph>
<paragraph id="HD9928979251240ACA4642C86235FA7E9"><enum>(2)</enum><text>do not interfere with or detract from the value of postal services, including—</text>
<subparagraph id="HE6590950AF42418885F148CB97C1FD50"><enum>(A)</enum><text>the cost and efficiency of postal services; and</text> </subparagraph>
<subparagraph id="H132A7D05BB214E9E9BCA1788A4FF2159"><enum>(B)</enum><text>unreasonable access to postal retail service, such as customer waiting time and access to parking; and</text> </subparagraph></paragraph>
<paragraph id="H46604213B2354BB790FEFE7CD459F34F"><enum>(3)</enum><text>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.</text> </paragraph></subsection>
<subsection id="HD5AB03FBB6B0419480CAFFA48C9F955E"><enum>(b)</enum><header>Public notice</header><text>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.</text> </subsection>
<subsection id="HB3C16D1176294FA885D9E5B67FE18488"><enum>(c)</enum><header>Approval required</header><text>The Governors of the Postal Service shall approve the provision of services under this section by a recorded vote, with at least <fraction>2/3</fraction> of its membership voting for approval, with the vote publicly disclosed on the Postal Service Web site.</text> </subsection>
<subsection id="H61F835FF53254085AA484B3EDE97E696"><enum>(d)</enum><header>Classification of services</header><text>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.</text> </subsection>
<subsection id="H1584EB7EF9124C29B2A3F001642389AD"><enum>(e)</enum><header>Definitions</header><text>For the purpose of this section—</text>
<paragraph id="H42716F24D4E048A69627E37935F6BC6B"><enum>(1)</enum><text>the term <term>State</term> 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</text> </paragraph>
<paragraph id="H175B5E23B1AC49DDAFA46935E6176219"><enum>(2)</enum><text display-inline="yes-display-inline">the term <term>United States</term>, when used in a geographical sense, means the States.</text> </paragraph></subsection></section>
<section id="H85BF11BD20144171A5E8EC85B160F243"><enum>3705.</enum><header>Postal Service program for other government agencies</header>
<subsection id="H4668031281DE4161A1E92C9739F14E75"><enum>(a)</enum><header>In general</header><text>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.</text> </subsection>
<subsection id="H881ED0F271D24AD183258C31DCF34EB1"><enum>(b)</enum><header>Classification of services</header><text>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.</text> </subsection></section>
<section display-inline="no-display-inline" id="H73982DD4CEA74E6CAB2F53FBFEE15457" section-type="subsequent-section"><enum>3706.</enum><header>Transparency and accountability for nonpostal services</header>
<subsection id="HBD922D45483148B1974012C219144EB1"><enum>(a)</enum><header>Annual reports to the Commission</header>
<paragraph id="HD4D9532D3F4A4EF2A057CA03BBF7A543"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph>
<paragraph id="H608F09A9842E42D591E1376D5B00F072"><enum>(2)</enum><header>Audits</header><text>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.</text> </paragraph></subsection>
<subsection id="H782E9C79A04A46F291E86069A7F236B4"><enum>(b)</enum><header>Supporting matter</header><text>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.</text> </subsection>
<subsection id="H3C808E38B6404DF292578F752361A6F9"><enum>(c)</enum><header>Content and form of reports</header>
<paragraph id="HA15161ED759F4A6BAF2DA668B61F1E85"><enum>(1)</enum><header>In general</header><text>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—</text>
<subparagraph id="HA31B2A03A79E46F5AA4A592651649C65"><enum>(A)</enum><text>providing the public with timely, adequate information to assess compliance;</text> </subparagraph>
<subparagraph id="H2026661E832B47B7A02B353784A272CC"><enum>(B)</enum><text>avoiding unnecessary or unwarranted administrative effort and expense on the part of the Postal Service; and</text> </subparagraph>
<subparagraph id="HA348C52E63A9430AB3D2CA219AB5D2A4"><enum>(C)</enum><text>protecting the confidentiality of information that is commercially sensitive or is exempt from public disclosure under <external-xref legal-doc="usc" parsable-cite="usc/5/552">section 552(b)</external-xref> of title 5.</text> </subparagraph></paragraph>
<paragraph id="HAAADB7A7A2E242F89E1DDE6B1FCE8FEF"><enum>(2)</enum><header>Revised requirements</header><text>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—</text>
<subparagraph id="HDAEB734491B544CE9B0BDFCBC32A7EF1"><enum>(A)</enum><text>the attribution of costs or revenues to property or services under this chapter has become significantly inaccurate or can be significantly improved;</text> </subparagraph>
<subparagraph id="H21E2E1204DDD4C598942355950534C40"><enum>(B)</enum><text>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</text> </subparagraph>
<subparagraph id="H43B5A89748FC4A5EADEF1CEE49A7BC43"><enum>(C)</enum><text>such revisions are, in the judgment of the Commission, otherwise necessitated by the public interest.</text> </subparagraph></paragraph></subsection>
<subsection id="H753C4421C00148888334DF4233C4B9B2"><enum>(d)</enum><header>Confidential information</header>
<paragraph id="H317CEE86D9274E198CB6C2960D9C58D1"><enum>(1)</enum><header>In general</header><text>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 <external-xref legal-doc="usc" parsable-cite="usc/39/410">section 410(c)</external-xref> of this title, or exempt from public disclosure under <external-xref legal-doc="usc" parsable-cite="usc/5/552">section 552(b)</external-xref> 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.</text> </paragraph>
<paragraph id="HED56E20AA4BF4074B8709361B00B2F5A"><enum>(2)</enum><header>Treatment</header><text>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).</text> </paragraph></subsection>
<subsection id="H49AFC5D0AC104D1D858D3A6A698F158B"><enum>(e)</enum><header>Annual compliance determination</header>
<paragraph id="H1FF1E25A06FD4DA2B0B9F9E2BB0B9BA4"><enum>(1)</enum><header>Opportunity for public comment</header><text>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.</text> </paragraph>
<paragraph id="H08E91F503FDA4BF79FEB741F3138883A"><enum>(2)</enum><header>Determination of compliance or noncompliance</header><text>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.</text> </paragraph>
<paragraph id="H66154D8299C64D0C9D72B33A924D478A"><enum>(3)</enum><header>Noncompliance</header><text>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.</text> </paragraph>
<paragraph id="H3B5C68A33C5340E6B7B0FE0201BAD87A"><enum>(4)</enum><header>Deliberate noncompliance</header><text>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.</text> </paragraph></subsection></section></chapter><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H25E3620BB2874FD7BE60C449BE914154"><enum>(2)</enum><header>Clerical amendment</header><text>The table of chapters at the beginning of part IV is amended by adding after the item relating to chapter 36 the following:</text>
<quoted-block display-inline="no-display-inline" id="H1C5381C83A9C44D098D41D70C8C5B1A1" style="USC">
<toc regeneration="no-regeneration">
<multi-column-toc-entry bold="on" level="section"><toc-enum>37.</toc-enum><level-header bold="on" level="section">Nonpostal Services</level-header><target>3701</target></multi-column-toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="H0810C5E7DFE64A6F9A2E51FC24558472"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph id="H2A7DEC5770EE402991850778ED339C73"><enum>(1)</enum><header>Section <enum-in-header>404(e)</enum-in-header></header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/39/404">Section 404(e)</external-xref> is amended by adding at the end the following:</text>
<quoted-block id="H839A8CD2E4B74E399595EBFE1363721F" style="OLC">
<paragraph commented="no" id="H9E5432ADBD1840A0A98F01292EBA2AD8" indent="up1"><enum>(6)</enum><text display-inline="yes-display-inline">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—</text>
<subparagraph commented="no" id="H706B4A1838544971BDCA3F2B6231064C"><enum>(A)</enum><text>to continue to provide licensed mailing and shipping supplies offered as of June 23, 2011; or</text> </subparagraph>
<subparagraph commented="no" id="H2BA1B185965349ADA1D8CBD1E387EC68"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph>
<paragraph id="H71CEBEC9428E45DDB279123006C6383E" indent="up1"><enum>(7)</enum><text>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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HD69BDF89FE1E42CD82512968D2C11C1B"><enum>(2)</enum><header>Section 409</header><text><external-xref legal-doc="usc" parsable-cite="usc/39/409">Section 409(f)</external-xref> is amended by inserting at the end the following:</text>
<quoted-block id="H930EEC1699434662B9B460804265F18F" style="OLC">
<paragraph id="H319CF9933DC44743B0B5FB41F1004A75" indent="up1"><enum>(7)</enum><text>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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H5F18AD506E8B4FA481F81361A0DD8983"><enum>(3)</enum><header>Section 411</header><text display-inline="yes-display-inline">The last sentence of <external-xref legal-doc="usc" parsable-cite="usc/39/411">section 411</external-xref> is amended by striking <quote>including reimbursability</quote> and inserting <quote>including reimbursability within the limitations of chapter 37</quote>.</text> </paragraph>
<paragraph id="H845F649BCD0B4CABAAF6BD4C09F68242"><enum>(4)</enum><header>Treatment of existing nonpostal services</header><text>All individual nonpostal services, provided directly or through licensing, that are continued pursuant to <external-xref legal-doc="usc" parsable-cite="usc/39/404">section 404(e)</external-xref> of title 39, United States Code, shall be considered to be expressly authorized by <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/39/37">chapter 37</external-xref> of such title (as added by subsection (a)(1)) and shall be subject to the requirements of such chapter.</text> </paragraph></subsection></section>
<section id="H8FA2C19982F548399D95577169803CF5" section-type="subsequent-section"><enum>405.</enum><header>Alaska bypass mail modernization</header>
<subsection id="H07209B9A3B7D439187ECEAD3F5874EC5"><enum>(a)</enum><header>Fair competition for Alaska bypass mail</header>
<paragraph id="HC3B0801497534DF69F99021866BCD282"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/39/5402">Section 5402</external-xref> is amended—</text>
<subparagraph id="H435BB79931314010BF9FC21313C77AAD"><enum>(A)</enum><text>in subsection (g)(4)—</text>
<clause id="HC39E2A67D1CD41098CC415055CB970AD"><enum>(i)</enum><text>in subparagraph (A), by striking <quote>existing</quote>;</text> </clause>
<clause id="H678EA4A034E0483781453A156325B697"><enum>(ii)</enum><text>in subparagraph (B)—</text>
<subclause id="H9C335710DE4B4992B9814E44789827C4"><enum>(I)</enum><text>in the matter preceding clause (i), by striking <quote>an existing mainline carrier</quote> and inserting <quote>a carrier permitted under subparagraph (A)</quote>; and</text> </subclause>
<subclause id="H103CD5E59ACE4FAF94F85651643A2B43"><enum>(II)</enum><text>in clause (i), by striking <quote>existing mainline carriers</quote> and inserting <quote>mainline carriers providing service</quote>; and</text> </subclause></clause>
<clause id="H6606AD8180E949FA9295F4A6EC77B514"><enum>(iii)</enum><text>in subparagraph (C), by striking <quote>existing</quote>;</text> </clause></subparagraph>
<subparagraph id="HF4F4BE4DCD85436BA2773FC643F7C115"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (g)(5)—</text>
<clause id="HB847ECAAC1CA4EF9A6C03A5A5A134B6B"><enum>(i)</enum><text>in subparagraph (A), by striking <quote>new</quote>;</text> </clause>
<clause id="HB2667E09D3DC4924A81E7C9A40F07CA9"><enum>(ii)</enum><text>in subparagraph (B), by striking <quote>new</quote>; and</text> </clause>
<clause id="HA5E0084079A34E63B3CBB18D5FF7E9F3"><enum>(iii)</enum><text>in subparagraph (C), by striking <quote>new</quote>;</text> </clause></subparagraph>
<subparagraph id="H84B633E6D3014C1D96B4BD2FCAFE9EE9"><enum>(C)</enum><text>in subsection (h)(3)(A), by striking <quote>new or existing</quote>; and</text> </subparagraph>
<subparagraph id="H7D81B71494FD4005B3BB7F6B395B65DD"><enum>(D)</enum><text>in subsection (i)(3), by striking <quote>new</quote>.</text> </subparagraph></paragraph>
<paragraph id="HD77BE36A5E0E454FA20EDB1A1D22BB0C"><enum>(2)</enum><header>Conforming amendment</header><text>Paragraphs (12) and (15) of section 5402(a) are repealed.</text> </paragraph></subsection>
<subsection id="H25049C67CD0647459B6FD37DDD2DD52A"><enum>(b)</enum><header>Reduction of Alaska bypass mail subsidy</header>
<paragraph id="H3F64F01DA6234315909BAE362439CF53"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc-chapter/39/54">Chapter 54</external-xref> is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H637D87E854ED4351B4866D8A9B60619C" style="USC">
<section id="HAE676D6A3A4C4D939581336E06CFAE6A"><enum>5404.</enum><header>Reduction of Alaska bypass mail subsidy</header>
<subsection id="HAEC52227E84246B59AD210A2CD94701B"><enum>(a)</enum><header>Competitive product classification</header>
<paragraph id="H6DA8D7A3528A49C98FB0A3B5DAC5B8B1"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in this section, Alaska bypass mail service under section 5402 shall be treated as a separate competitive product for all purposes.</text> </paragraph>
<paragraph id="H35C8D6F065E24E009527649C2E585B30"><enum>(2)</enum><header>Transfer prohibited</header><text>No part of Alaska bypass mail service may be transferred to the market-dominant category of mail under section 3642.</text> </paragraph>
<paragraph id="HFC6993103B4B4A69901B2A28CD863167"><enum>(3)</enum><header>Limitations</header><text display-inline="yes-display-inline">Alaska bypass mail service shall not be treated as a competitive product for purposes of the implementation of sections 3633(a) and 3634.</text> </paragraph></subsection>
<subsection id="HEC71FED5A7EF4049A46031F46C743296"><enum>(b)</enum><header>Minimum cost coverage</header>
<paragraph commented="no" id="H41138FE5BC9C4E498902E38F4BE1550B"><enum>(1)</enum><header>In general</header><text>The Postal Service shall establish and maintain rates and fees for matter sent by Alaska bypass mail service—</text>
<subparagraph commented="no" id="H7CC1AF8D0D02444A9BDF533D262AC313"><enum>(A)</enum><text>for fiscal year 2014, that cover at least 30 percent of the costs attributable to Alaska bypass mail service in that fiscal year;</text> </subparagraph>
<subparagraph commented="no" id="H77A9041B260B4C27966B358D0193A842"><enum>(B)</enum><text>for fiscal year 2015, that cover at least 35 percent of the costs attributable to Alaska bypass mail service in that fiscal year;</text> </subparagraph>
<subparagraph commented="no" id="HE3867B9BAE3540DD9FA65C1D268F5848"><enum>(C)</enum><text>for fiscal year 2016, that cover at least 40 percent of the costs attributable to Alaska bypass mail service in that fiscal year;</text> </subparagraph>
<subparagraph commented="no" id="H53142588410540ECA98496A2FA8CAD3A"><enum>(D)</enum><text>for fiscal year 2017, that cover at least 45 percent of the costs attributable to Alaska bypass mail service in that fiscal year; and</text> </subparagraph>
<subparagraph commented="no" id="H047115B6EDB74D6BAB75719F9DA69CE4"><enum>(E)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph></paragraph>
<paragraph id="H19B65DB7212B472ABFF2A96C6BB55AE2"><enum>(2)</enum><header>Costs attributable</header><text display-inline="yes-display-inline">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.</text> </paragraph>
<paragraph id="H94D590DFA4D24FDE8EFC350350047253"><enum>(3)</enum><header>Institutional costs</header><text display-inline="yes-display-inline">Costs that can be attributed to Alaska bypass mail service may not be classified as institutional costs of the Postal Service.</text> </paragraph></subsection>
<subsection id="H66D6A0A17409408EB5A7A3A16BDEC766"><enum>(c)</enum><header>Compliance</header>
<paragraph id="HC241125B62304F059D7EA39B070E7AE3"><enum>(1)</enum><header>Annual review</header><text display-inline="yes-display-inline">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).</text> </paragraph>
<paragraph id="H2DA35BD032C14A8988A3622B6E2A9BD6"><enum>(2)</enum><header>Remedial actions</header><text display-inline="yes-display-inline">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—</text>
<subparagraph id="H705FDDE9D2FB4E87A3B83713AFD091B3"><enum>(A)</enum><text display-inline="yes-display-inline">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</text> </subparagraph>
<subparagraph id="H3409EE92297E47D09A55AC1C9CD9BE26"><enum>(B)</enum><text>compliance with the requirements under subsection (b) in subsequent fiscal years.</text> </subparagraph></paragraph>
<paragraph id="H4179AB5EA1D44A189A5C21DBC2C318FA"><enum>(3)</enum><header>Limitation</header><text display-inline="yes-display-inline">The Postal Regulatory Commission may not order the Postal Service to discontinue Alaska bypass mail service.</text> </paragraph>
<paragraph id="H95BA906829AD48528615CF04189EB633"><enum>(4)</enum><header>Regulations</header><text>Not later than 90 days after the date of enactment of this subsection, the Postal Regulatory Commission shall issue regulations to implement this subsection.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HA9CD918A0E2F4BA7AE47F971D8DB89D2"><enum>(2)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/39/54">chapter 54</external-xref> is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H4BD43BB4EAA44D19848DC0F9347AB40B" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">5404. Reduction of Alaska bypass mail subsidy.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section>
<section id="H45E007971DA84CC28329549EDE0F9737"><enum>406.</enum><header>Appropriations modernization</header>
<subsection id="H04397CFDC691452BBDDA11F29FFE55E1"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/39/2401">Section 2401</external-xref> is amended by striking subsections (b) through (d).</text> </subsection>
<subsection id="H5F3C71BE28E547FABECD8297F6FD28DD"><enum>(b)</enum><header>Effective date</header><text>The amendment made by subsection (a) shall be effective with respect to fiscal years beginning after the date of enactment of this Act.</text> </subsection>
<subsection id="HF16BA37C46C04E8DB64A59C800139C8A"><enum>(c)</enum><header>Conforming amendment</header>
<paragraph id="HDE22C451D96D4B6DB7F89635BD066040" display-inline="yes-display-inline"><enum><added-phrase reported-display-style="italic" committee-id="HGO00">(1)</added-phrase></enum><text><external-xref legal-doc="usc" parsable-cite="usc/39/3627">Section 3627</external-xref> is repealed.</text></paragraph>
<paragraph id="HBAC104258FF8473BB73579C0EFCDB3F8" indent="up1" reported-display-style="italic" changed="added" committee-id="HGO00"><enum>(2)</enum><text>The table of sections for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/39/36">chapter 36</external-xref> is amended by striking the item relating to section 3627.</text> </paragraph></subsection></section>
<section id="H1B7AEFEF2BCB4CABA425826809C6D07D"><enum>407.</enum><header>Enhanced product innovation</header>
<subsection id="HCE6A972CD3B14C029BA94DAD222FF8FF"><enum>(a)</enum><header>Dollar-Amount limitation relating to market tests of experimental products</header><text><external-xref legal-doc="usc" parsable-cite="usc/39/3641">Section 3641(e)(1)</external-xref> is amended by striking <quote>$10,000,000</quote> and inserting <quote>$50,000,000</quote>.</text> </subsection>
<subsection id="H3B2CF79F0EA94D2F9A3D9A07A978AE94"><enum>(b)</enum><header>Dollar-Amount limitation relating to exemption authority</header><text><external-xref legal-doc="usc" parsable-cite="usc/39/3641">Section 3641(e)(2)</external-xref> is amended by striking <quote>$50,000,000</quote> and inserting <quote>$100,000,000</quote>.</text> </subsection></section>
<enum>V</enum><header>Postal Service Finance</header>
<section id="H003B4BC066B540E2B8823517CDFDAAE4"><enum>501.</enum><header>Treatment of Postal Service postemployment benefit funding projected surpluses</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/5/8423">Section 8423(b)(4)</external-xref> of title 5, United States Code, is amended by adding at the end the following:</text>
<quoted-block id="H50446E1170AE42D8A18E73746B2DE0D3" style="OLC">
<subparagraph id="HF1D2E96662594B97B2C2A95778CF0977"><enum>(C)</enum><text>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—</text>
<clause id="HF5EC9B26A5494ADEAAD6F0B3D779B74F"><enum>(i)</enum><text>the Postal supplemental liability, calculated under section 8348(h), for the same fiscal year (if any); and</text> </clause>
<clause id="HE0810D1AF8CF4C5BB9FC9F5DC913424D"><enum>(ii)</enum><text>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.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </section>
<section id="HACA80615088B4FAC85BD76C9180E77E2"><enum>502.</enum><header>Retiree health benefit liability payment schedule</header>
<subsection id="HD5F6E92F3FA04C539D6BBE56329E13EF"><enum>(a)</enum><header>In general</header><text>Sub<external-xref legal-doc="usc" parsable-cite="usc/5/8909a">section 8909a(d)</external-xref> of title 5, United States Code, is amended—</text>
<paragraph id="H29399AEC40414FAF9AA9C0E2C1B8DA1E"><enum>(1)</enum><text>in paragraph (2)(B), by striking <quote>2017</quote> and inserting <quote>2015</quote>; and</text> </paragraph>
<paragraph id="HD39D78D5965742FD9CC0047CB62478C8"><enum>(2)</enum><text>in paragraph (3)—</text>
<subparagraph id="H47F8D73484494EEA9A18FC918FC627F4"><enum>(A)</enum><text>in subparagraph (A)—</text>
<clause id="HDE1C3DE107364B02A9862F4C0CE0A611"><enum>(i)</enum><text>in clause (iii), by adding <quote>and</quote> at the end;</text> </clause>
<clause id="H67D713CB3E0E4B00968FBF287FB4FDDF"><enum>(ii)</enum><text>in clause (iv), by striking the semicolon at the end and inserting a period; and</text> </clause>
<clause commented="no" id="HAB3DE8FE65EF4B199CA1C87A87F54F3B"><enum>(iii)</enum><text>by striking clauses (v) through (x); and</text> </clause></subparagraph>
<subparagraph id="H2099EFB78A424355AE6B6DC95A36C6BA"><enum>(B)</enum><text>in subparagraph (B), by striking <quote>2017</quote> and inserting <quote>2015</quote>.</text> </subparagraph></paragraph></subsection>
<subsection id="H31A3BA74F1AF43CCAF06D3630CB17F72"><enum>(b)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/5/8906">Section 8906(g)(2)(A)</external-xref> of title 5, United States Code, is amended by striking <quote>2016</quote> and inserting <quote>2014</quote>.</text> </subsection>
<subsection id="HB0E897D8456847C2A81E68E78B291BB9"><enum>(c)</enum><header>Technical correction</header><text>The heading for <external-xref legal-doc="usc" parsable-cite="usc/5/8909a">section 8909a</external-xref> of title 5, United States Code, is amended by striking <quote><header-in-text level="section" style="USC">Benefit</header-in-text></quote> and inserting <quote><header-in-text level="section" style="USC">Benefits</header-in-text></quote>.</text> </subsection></section>
<section id="HEA8C3417AF7A4475BDBBE4196B4C1447"><enum>503.</enum><header>Supplementary borrowing authority during a control period</header>
<subsection id="HD0B034EB0653498884DCCF79BEBE3FD2"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/39/20">Chapter 20</external-xref> is amended by adding after section 2011 the following:</text>
<quoted-block id="HAD74066549034497A1E1720646DC4545" style="USC">
<section id="H373DFB9712AA45B9935570875E5B293C"><enum>2012.</enum><header>Supplementary borrowing authority</header>
<subsection id="HCDB83EC463184BB4B453E8344B27EE37"><enum>(a)</enum><header>Supplementary borrowing authority</header><text>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.</text> </subsection>
<subsection id="H6DD7534FBA6E458AB9E1194776DC1A53"><enum>(b)</enum><header>Sunset</header><text>The authority to borrow money and to issue and sell obligations under subsection (a) shall cease to be available after September 30, 2022.</text> </subsection>
<subsection id="H174B59C7C0FC4579BE6C084C9A6405F8"><enum>(c)</enum><header>Deposit</header><text>Any amounts received under this section shall be deposited in the Postal Service Fund.</text> </subsection>
<subsection id="H93128DF2F062408D8D36F8AE9E17F613"><enum>(d)</enum><header>Properties To be set aside</header><text>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).</text> </subsection>
<subsection id="HD836363A10B14692A45061D96914DA7A"><enum>(e)</enum><header>Outstanding supplemental debt reduction</header>
<paragraph id="H18CEACDA05A347A59FD7872A9E4DAF34"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text> </paragraph>
<paragraph id="HBDF14B865FAD44EF83FFE044A124318F"><enum>(2)</enum><header>Sense of Congress</header><text>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.</text> </paragraph></subsection>
<subsection commented="no" id="HEF48D8F8FF3A4C82A43D851D8BE9A47C"><enum>(f)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" id="H90B4ABD2E90C44E0912D9A36301DF981"><enum>(1)</enum><text display-inline="yes-display-inline">the term <term>Authority</term> means the Postal Service Financial Responsibility and Management Assistance Authority, established in title II of the Postal Reform Act of 2013; and</text> </paragraph>
<paragraph commented="no" id="H6E0CEE38BA8444A3939D616AE6785952"><enum>(2)</enum><text>the term <term>control period</term> has the meaning given such term in section 202(b)(1) of such Act.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H6637258115F64823899372CC87D6B5A3"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/39/20">chapter 20</external-xref> is amended by adding at the end the following:</text>
<quoted-block id="H641FBE39E70545568EBE61AF023D5D31" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">2012. Supplemental borrowing authority.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section>
<section commented="no" id="HBC88FB16F20C4EB88792335814FD0B9A"><enum>504.</enum><header>Postal Service Delivery-Point Modernization Fund</header>
<subsection commented="no" id="H7C59746668D84901AB3F19A4A5494064"><enum>(a)</enum><header>In general</header><text>Chapter 20 is further amended by adding after section 2012 (as added by section 503(a)) the following:</text>
<quoted-block id="H8D6BDDE08F1C4369BD43631F1A5B6133" style="USC">
<section commented="no" id="H5ECFDE72C53F4B39B33949D41135604D"><enum>2013.</enum><header>Postal Service Delivery-Point Modernization Fund</header>
<subsection commented="no" id="H8A60DB4E304E40A3B370CD12E07AA7E8"><enum>(a)</enum><header>Establishment</header><text>There is established within the Treasury of the United States a revolving fund to be known as the <quote>Postal Service Delivery-Point Modernization Fund</quote>, which shall be available without fiscal year limitation pursuant to the requirements of this section.</text> </subsection>
<subsection commented="no" id="H54B3FC222404409CBFB2A238075C3AF4"><enum>(b)</enum><header>Funding</header>
<paragraph commented="no" id="H28A0DE30BD6243FAA6B27DF69D6B5A8C"><enum>(1)</enum><header>Authorization</header><text>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 <deleted-phrase reported-display-style="strikethrough" committee-id="HGO00">3962</deleted-phrase> <added-phrase reported-display-style="italic" committee-id="HGO00">3692</added-phrase>. 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.</text> </paragraph>
<paragraph commented="no" id="H144BA3AD3E4447C29DF4D2004FC3B1B1"><enum>(2)</enum><header>Applicability of section 2005</header><text>The provisions of subsections 2005(b), (c), and (d) shall apply to obligations issued under this subsection.</text> </paragraph>
<paragraph commented="no" id="H8D21DBD1DDA54696B99AD0B89009DE9B"><enum>(3)</enum><header>Deposit</header><text>Any amounts received by the Postal Service as a result of paragraph (1) shall be deposited in the Postal Service Delivery-Point Modernization Fund.</text> </paragraph></subsection>
<subsection commented="no" id="H0FFBFE5E7965412AB2CD32BC24B371BC"><enum>(c)</enum><header>Sunset</header><text display-inline="yes-display-inline">The authority to borrow money and to issue and sell obligations under subsection (b) shall cease to be available after September 30, 2023.</text> </subsection>
<subsection commented="no" id="H69642F196F524E89A739AE44D67244FD"><enum>(d)</enum><header>Budgetary treatment</header><text>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.</text> </subsection>
<subsection commented="no" id="H42F218BCF4CD466E9532ED8A6C8A7BBF"><enum>(e)</enum><header>Termination of Fund</header><text>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.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection commented="no" id="HD3F0E7DCA9F44C639290313CAE3A9791"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/39/20">chapter 20</external-xref> is amended by adding after the item relating to section 2012 (as added by section 503(b)) the following:</text>
<quoted-block id="HC8F4AB1083974BE09F804C6024BA80A7" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">2013. Postal Service Delivery-Point Modernization Fund.</toc-entry> </toc> <after-quoted-block>. </after-quoted-block></quoted-block> </subsection></section>
<section id="H28B9A96AD30F43E2AF748D95F5A90761"><enum>505.</enum><header>Specific retirement liability calculations relating to the Postal Service</header>
<subsection id="HD73229225D4B4CB68B1619FC21561CDA"><enum>(a)</enum><header>Federal Employees Retirement System</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/5/8423">Section 8423(a)</external-xref> of title 5, United States Code, is amended—</text>
<paragraph id="H2511AC57EBD845ACABFF34126929508B"><enum>(1)</enum><text>in paragraph (1)—</text>
<subparagraph id="HFED66E3CBD2B4D81ADDC34A64D97EED1"><enum>(A)</enum><text>in subparagraph (A)—</text>
<clause id="H0D49B1D28184489091A0FDF4EE07C6AE"><enum>(i)</enum><text>in clause (i), by striking <quote>subparagraph (B)),</quote> and inserting <quote>subparagraph (B) or (C)),</quote>; and</text> </clause>
<clause id="HBD7E988346EF474A9F955EECFC2F63F9"><enum>(ii)</enum><text>in clause (ii), by striking <quote>and</quote> after the semicolon;</text> </clause></subparagraph>
<subparagraph id="H5E579C6881F9419680BEC667D6515971"><enum>(B)</enum><text>in subparagraph (B)(ii), by striking the period at the end and inserting <quote>; and</quote>; and</text> </subparagraph>
<subparagraph id="H7C6C15EB02304B52B7408D598DF85D6A"><enum>(C)</enum><text>by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HDCB2DB1F47CC45DBB7A47F3648C15A22" style="USC">
<subparagraph id="HF1EB551123F94FC0821DBDCEBB270344" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">the product of—</text>
<clause id="HB113B3F2C2CA4942BB2D07D1E43D1120"><enum>(i)</enum><text display-inline="yes-display-inline">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</text> </clause>
<clause id="H2FA2AF07AC994636B341205F4565F607"><enum>(ii)</enum><text display-inline="yes-display-inline">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.</text> </clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph></paragraph>
<paragraph id="H39E6F72DDC7746CCA1F27CF873EB5F29"><enum>(2)</enum><text>by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HC88490E7A1AC481DACC9E126409D9CDE" style="USC">
<paragraph id="H72E600FC738D4E13BB31F68FC1C910A1" indent="up1"><enum>(5)</enum>
<subparagraph commented="no" display-inline="yes-display-inline" id="HB075B62216C74C0FB3628B0DD5031E21"><enum>(A)</enum><text display-inline="yes-display-inline">In determining the normal-cost percentage for employees of the United States Postal Service for purposes of paragraph (1)(C), the Office—</text>
<clause id="HBBAC9B44777E4C3C97CF6689E12E1365" indent="up1"><enum>(i)</enum><text display-inline="yes-display-inline">shall use demographic factors specific to such employees, unless such data cannot be generated; and</text> </clause>
<clause id="HCF40C4D1EF2D41FD944EA982996F24F2" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">may use economic assumptions regarding wage and salary growth that reflect the specific past, and likely future, pay for such employees.</text> </clause></subparagraph>
<subparagraph id="HDAD6A4CD7991490EB5398931632CBBF1" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">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).</text> </subparagraph>
<subparagraph id="HAF5851A536D041358C968165A5D2CF34" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">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—</text>
<clause id="H55AF68F964AF437EBD1DC9C9BFDE97E1"><enum>(i)</enum><text display-inline="yes-display-inline">upon request of the United States Postal Service, but not more frequently than once each fiscal year; and</text> </clause>
<clause id="H0E2B2DF827A34A65A13FAFAC061BCD09"><enum>(ii)</enum><text display-inline="yes-display-inline">at such other times as the Office considers appropriate.</text> </clause></subparagraph></paragraph>
<paragraph id="H3C49520F46584CB7A5EDF6C0D96AFBC8" indent="up1"><enum>(6)</enum><text display-inline="yes-display-inline">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—</text>
<subparagraph id="HF7ECC9FBB1B0419F8A256AB39BE83DE4"><enum>(A)</enum><text display-inline="yes-display-inline">shall use demographic factors specific to current and former employees of the United States Postal Service, unless such data cannot be generated; and</text> </subparagraph>
<subparagraph id="H925660FA1CE445659C92294CD9C07ECF"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="H7A0D82B31DFC45AEBF59FD9937F8F7C6"><enum>(b)</enum><header>Civil Service Retirement System</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/5/8348">Section 8348(h)</external-xref> of title 5, United States Code, is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HED1DEC02DBB3434EB335733BE370853C" style="USC">
<paragraph id="H557FB642028542D59A47E49AB0073DFB" indent="up1"><enum>(4)</enum><text display-inline="yes-display-inline">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—</text>
<subparagraph id="H38E83331169D47BB86949E71A9DAB048"><enum>(A)</enum><text display-inline="yes-display-inline">shall use demographic factors specific to current and former employees of the United States Postal Service, unless such data cannot be generated; and</text> </subparagraph>
<subparagraph id="HF7308A4A0CCE40B1BAA97E1058273965"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section>
<enum>VI</enum><header>Postal Contracting Reform</header>
<section id="H4A420610D27B4AF6B2657834C0A58DC1"><enum>601.</enum><header>Contracting provisions</header>
<subsection id="H116C1EDACC7940C4910C7BA7DF0A254E"><enum>(a)</enum><header>In general</header><text>Part I is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H2BC344F95524488E97A61370BBDD92C8" style="USC">
<chapter id="H173662D6F1CE4A1DAE3F637BADF601AE"><enum>7</enum><header>Contracting Provisions</header>
<toc container-level="chapter-container" idref="H173662D6F1CE4A1DAE3F637BADF601AE" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H2C73D0C98DFB47169FB9E1031538A5EF" level="section">Sec.</toc-entry>
<toc-entry level="section">701. Definitions.</toc-entry>
<toc-entry idref="HD2ABD734D2D747679B864211777C377B" level="section">702. Advocate for competition.</toc-entry>
<toc-entry idref="H4818C9068CF44BA486D603C3CF5CD309" level="section">703. Delegation of contracting authority.</toc-entry>
<toc-entry idref="H2CCD284C9DEE49EE96A17959C9F0B1D3" level="section">704. Posting of noncompetitive purchase requests for noncompetitive contracts.</toc-entry>
<toc-entry idref="HB41E48D8BD524E4EABB882AB96A77FF5" level="section">705. Review of ethical issues.</toc-entry>
<toc-entry idref="HA17AB06895CC4360BD666B234BFB4F83" level="section">706. Ethical restrictions on participation in certain contracting activity.</toc-entry> </toc>
<section id="H2C73D0C98DFB47169FB9E1031538A5EF"><enum>701.</enum><header>Definitions</header><text display-inline="no-display-inline">In this chapter—</text>
<paragraph id="H1AAA7648C194406E8E3D05BFC5BE94BC"><enum>(1)</enum><text>the term <term>contracting officer</term> means an employee of a covered postal entity who has authority to enter into a postal contract;</text> </paragraph>
<paragraph id="H0A0EE107458D422D95E40C6B06D312BA"><enum>(2)</enum><text>the term <term>covered postal entity</term> means—</text>
<subparagraph id="H554FFE59007A41739DCFDF5F31CB2BC6"><enum>(A)</enum><text>the Postal Service; or</text> </subparagraph>
<subparagraph id="H20689146AA08485590F42F9B09A29D60"><enum>(B)</enum><text>the Postal Regulatory Commission;</text></subparagraph>
<subparagraph id="HE2AEE5FAEF414DC2B841C05C70D67F3C"><enum>(A)</enum><text><?xm-replace_text {text}?></text> </subparagraph></paragraph>
<paragraph id="H7AE6C8F5838443F6B63FA275DCE53D44"><enum>(3)</enum><text>the term <term>head of a covered postal entity</term> means—</text>
<subparagraph id="H694510406D76414FBA992AA5CC5DE649"><enum>(A)</enum><text>in the case of the Postal Service, the Postmaster General; or</text> </subparagraph>
<subparagraph id="HF4F4AA1B92E240C1961EC26C2FE3E3C0"><enum>(B)</enum><text>in the case of the Postal Regulatory Commission, the Chairman of the Postal Regulatory Commission;</text> </subparagraph></paragraph>
<paragraph id="HDDDB8BC8F83D4C148136AEFF38E3BDE8"><enum>(4)</enum><text>the term <term>postal contract</term> means—</text>
<subparagraph id="H5E66FCC7F3124769BA8D0C145206B099"><enum>(A)</enum><text>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</text> </subparagraph>
<subparagraph id="H5E601B6771414BC39891F94D7AD11A08"><enum>(B)</enum><text>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 <external-xref legal-doc="usc" parsable-cite="usc/41/134">section 134</external-xref> of title 41 and adjusted under <external-xref legal-doc="usc" parsable-cite="usc/39/1908">section 1908</external-xref> of such title) entered into by the Postal Regulatory Commission for the procurement of goods or services; and</text> </subparagraph></paragraph>
<paragraph id="HED9B57E053104395BEDDE56431928A9F"><enum>(5)</enum><text>the term <term>senior procurement executive</term> means the senior procurement executive of a covered postal entity.</text> </paragraph></section>
<section id="HD2ABD734D2D747679B864211777C377B"><enum>702.</enum><header>Advocate for competition</header>
<subsection id="H99C6B2943EE748CC939A24B1540E66DF"><enum>(a)</enum><header>Establishment and designation</header>
<paragraph id="H1DEA64B8CFEE4FC69398C5EC65E8AE9B"><enum>(1)</enum><text>There is established in each covered postal entity an advocate for competition.</text> </paragraph>
<paragraph id="HF70BD9995A95476A905A7DCFAABBCE78"><enum>(2)</enum><text>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.</text> </paragraph></subsection>
<subsection id="HC106DB8947E14212804EFEF9DDD02214"><enum>(b)</enum><header>Responsibilities</header><text>The advocate for competition of a covered postal entity shall—</text>
<paragraph id="H94839C7F616B4A78962DBF3B66A5B02D"><enum>(1)</enum><text>be responsible for promoting—</text>
<subparagraph id="HD9FE0D06CE3E4CB0894878B6ED57A7FE"><enum>(A)</enum><text>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</text> </subparagraph>
<subparagraph id="H9996DAF985EE4566B8D08EA06FE57226"><enum>(B)</enum><text>competition to the maximum extent practicable consistent with obtaining best value by promoting the acquisition of commercial items and challenging barriers to competition;</text> </subparagraph></paragraph>
<paragraph id="H79383A02B8794BE7906EE198C142E395"><enum>(2)</enum><text>review the procurement activities of the covered postal entity; and</text> </paragraph>
<paragraph id="H7EA5ED6D025648DDA1BF619D75454B66"><enum>(3)</enum><text>prepare and transmit the annual report required under subsection (c).</text> </paragraph></subsection>
<subsection id="H4A9C4486121B48D99ACE47A59FB9AA19"><enum>(c)</enum><header>Annual Report</header>
<paragraph id="H060D5B07C1C442AA8B9E171450C890AB"><enum>(1)</enum><header>Preparation</header><text>The advocate for competition of a covered postal entity shall prepare an annual report describing the following:</text>
<subparagraph id="H21D91951C1104A5EA76601C05C060122"><enum>(A)</enum><text>The activities of the advocate under this section.</text> </subparagraph>
<subparagraph id="HBD02DE70CC9A4025AEBF507BF822FF60"><enum>(B)</enum><text>Initiatives required to promote contracting out and competition.</text> </subparagraph>
<subparagraph id="HB619441FEB6A4DADAA2B3E0849C56BED"><enum>(C)</enum><text>Barriers to contracting out and competition.</text> </subparagraph>
<subparagraph id="H0FF4806AFDEF4576BE99A2895D794B11"><enum>(D)</enum><text>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).</text> </subparagraph></paragraph>
<paragraph id="HF4CBEA3A2ACC48B3B5CA0CA83DE08112"><enum>(2)</enum><header>Transmission</header><text>The report under this subsection shall be transmitted—</text>
<subparagraph id="HABF9DD09624C4030B7DD90704B1CA8AA"><enum>(A)</enum><text>to Congress;</text> </subparagraph>
<subparagraph id="HC362383F29624FC8A3261070735840F8"><enum>(B)</enum><text>to the head of the postal entity;</text> </subparagraph>
<subparagraph id="HE44AD60FCA2C4897890D415E7D81E1DE"><enum>(C)</enum><text>to the senior procurement executive of the entity;</text> </subparagraph>
<subparagraph id="H738D074812644C61AB68170541133694"><enum>(D)</enum><text>in the case of the competition advocate of the Postal Service, to each member of the Postal Service Board of Governors; and</text> </subparagraph>
<subparagraph id="HEE58F7BC914142B89128113CE62EA30A"><enum>(E)</enum><text>in the case of the competition advocate of the Postal Regulatory Commission, to each of the Commissioners of the Commission.</text> </subparagraph></paragraph></subsection></section>
<section id="H4818C9068CF44BA486D603C3CF5CD309"><enum>703.</enum><header>Delegation of contracting authority</header>
<subsection id="HBE13D131A1544E0D92CDD31BB6F16594"><enum>(a)</enum><header>In general</header>
<paragraph id="HC6BC54AF71C64B79A5B9E187C367F743"><enum>(1)</enum><header>Policy</header><text>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.</text> </paragraph>
<paragraph id="H615C7F1DA7634F41A60CCB8A0A3BF034"><enum>(2)</enum><header>Contents</header><text>The policy issued under paragraph (1) shall require that—</text>
<subparagraph id="HC6668FCE2AA944B7B052985E4966505F"><enum>(A)</enum><text>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</text> </subparagraph>
<subparagraph id="HC7E98AAB86F44DD59232EB959C02029E"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph></subsection>
<subsection id="H3BEAA2B4FEBC481A9AFFCE839389769C"><enum>(b)</enum><header>Posting of delegations</header>
<paragraph id="HC2D03CBBE1A3423AACA306A9644A79C4"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph>
<paragraph id="H75D96D2A99C0482D931D6E7E71D59BFB"><enum>(2)</enum><header>Effective date</header><text>This paragraph shall apply to any delegation of authority made on or after 30 days after the date of enactment of this chapter.</text> </paragraph></subsection></section>
<section id="H2CCD284C9DEE49EE96A17959C9F0B1D3"><enum>704.</enum><header>Posting of noncompetitive purchase requests for noncompetitive contracts</header>
<subsection id="H1E01AE3E770C4370985552886B556642"><enum>(a)</enum><header>Posting required</header>
<paragraph id="HDEC48DB34E91435DBD142503FF8DA2DF"><enum>(1)</enum><header>Postal regulatory commission</header><text display-inline="yes-display-inline">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—</text>
<subparagraph id="HCD59DC25839F4BB4AB721DB543B664E6"><enum>(A)</enum><text>not later than 14 days after the date of the award of the noncompetitive contract; or</text> </subparagraph>
<subparagraph id="HA2174BAC0E414C199996925455F32D75"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph>
<paragraph id="H238562B043DA4ED3846431823C23784E"><enum>(2)</enum><header>Postal service</header><text>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—</text>
<subparagraph id="HA4A21A7968A546129253A87C0C6D4219"><enum>(A)</enum><text>not later than 14 days after the date of the award; or</text> </subparagraph>
<subparagraph id="H378A3C8855DE48C58793BE228C1BBCA6"><enum>(B)</enum><text>not later than 30 days after the date of the award, if the basis for the award was a compelling business interest.</text> </subparagraph></paragraph>
<paragraph id="H24123211F48C4F46B2B3BAF8EB3A9F64"><enum>(3)</enum><header>Adjustments to the posting threshold for the postal service</header>
<subparagraph id="HD8C1F6C642784C2CBE5F1D64801F899F"><enum>(A)</enum><header>Review and determination</header><text>Not later than January 31 of each year, the Postal Service shall—</text>
<clause id="H9E08F47B35A248D39A92027884DB3FA7"><enum>(i)</enum><text>review the $250,000 threshold established under paragraph (2); and</text> </clause>
<clause commented="no" id="HCDBA0DF4847E4771A53CAAAD0992BFA9"><enum>(ii)</enum><text>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.</text> </clause></subparagraph>
<subparagraph id="H4B7D3BC3A66D450A9D99348A6D90A123"><enum>(B)</enum><header>Amount of adjustments</header><text>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.</text> </subparagraph></paragraph>
<paragraph id="H68D741E2509040EA9DCFC2583DB6FBE2"><enum>(4)</enum><header>Effective date</header><text>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.</text> </paragraph></subsection>
<subsection id="H0876E04D2F254E638C1F6AE65132DF45"><enum>(b)</enum><header>Public availability</header>
<paragraph id="H383366A6991943FCB701ACEFD9304871"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph>
<paragraph id="H54643FFAE99246BCA7EAA6E29AEAF14A"><enum>(2)</enum><header>Protection of proprietary information</header><text>A covered postal entity shall—</text>
<subparagraph id="HAFFAADE757B24F04BA31CF3220B180EE"><enum>(A)</enum><text>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</text> </subparagraph>
<subparagraph id="H4B6FA2BCD7C045EEB3F2F5C3AAE94874"><enum>(B)</enum><text>remove any proprietary data or security-related information before making publicly available a description of the rationale supporting a noncompetitive award.</text> </subparagraph></paragraph></subsection>
<subsection id="H59A1783E07FE442EBAA98FBBC5B891E4"><enum>(c)</enum><header>Waivers</header>
<paragraph id="H24F5DD9E0CC04A7C8192D2E3A2BCA8DF"><enum>(1)</enum><header>Waiver permitted</header><text>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).</text> </paragraph>
<paragraph id="H96ABEF0BFA18474283D821A2D327D869"><enum>(2)</enum><header>Form and content of waiver</header>
<subparagraph id="H89E5754669404AD9AEC3FF37BFC7EED7"><enum>(A)</enum><header>Form</header><text>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.</text> </subparagraph>
<subparagraph id="HC223B672DE4D443FB55C8883A842B91D"><enum>(B)</enum><header>Content</header><text>A waiver under paragraph (1) shall include—</text>
<clause id="H3B282E61C2DD4CC5A166AA89CC64EDBA"><enum>(i)</enum><text>a description of the risk associated with making the noncompetitive purchase request publicly available; and</text> </clause>
<clause id="H9759018386D44C64B12479C7ACBE28FF"><enum>(ii)</enum><text>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.</text> </clause></subparagraph></paragraph>
<paragraph id="HF733BB28535C46FB9E49A5E89D58D47C"><enum>(3)</enum><header>Delegation of waiver authority</header><text>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.</text> </paragraph></subsection></section>
<section id="HB41E48D8BD524E4EABB882AB96A77FF5"><enum>705.</enum><header>Review of ethical issues</header><text display-inline="no-display-inline">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—</text>
<paragraph id="H9036B751047F46CF986B4010236E7083"><enum>(1)</enum><text>review the proposed contract; and</text> </paragraph>
<paragraph id="HAE6C714498044190BA1ABF3437400A97"><enum>(2)</enum><text>advise the contracting officer on the appropriate resolution of ethical issues.</text> </paragraph></section>
<section id="HA17AB06895CC4360BD666B234BFB4F83"><enum>706.</enum><header>Ethical restrictions on participation in certain contracting activity</header>
<subsection id="H2AE7FF4549A4417D98AB836133258A49"><enum>(a)</enum><header>Definitions</header><text>In this section—</text>
<paragraph id="HC577B815A6B64C79A5E34B56EDE39EFC"><enum>(1)</enum><text>the term <term>covered employee</term> means—</text>
<subparagraph id="H49714F48528140C99A20DC1218123C28"><enum>(A)</enum><text>a contracting officer; or</text> </subparagraph>
<subparagraph id="H1BB4D2E824BA407EA0BDAB02C7D33BED"><enum>(B)</enum><text>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;</text> </subparagraph></paragraph>
<paragraph id="HDF4CA924FA8045198BF31E2586F64C3A"><enum>(2)</enum><text>the term <term>final conviction</term> means a conviction, whether entered on a verdict or plea, including a plea of nolo contendere, for which a sentence has been imposed; and</text> </paragraph>
<paragraph id="HB9AA2EEAACE54C79B4B1049D2A3E5FFC"><enum>(3)</enum><text>the term <term>covered relationship</term> means a covered relationship described in <external-xref legal-doc="regulation" parsable-cite="cfr/5/2635.502">section 2635.502(b)(1)</external-xref> of title 5, Code of Federal Regulations, or any successor thereto.</text> </paragraph></subsection>
<subsection id="HBF29D835C88D463A9188BC1B0B36BEB5"><enum>(b)</enum><header>In general</header>
<paragraph id="HC44440E5DBAD422DADC578B0A4C3DC39"><enum>(1)</enum><header>Regulations</header><text>The head of each covered postal entity shall prescribe regulations that—</text>
<subparagraph id="H2901E1BE7ACF420FA27C05174C86B80B"><enum>(A)</enum><text>require a covered employee to include in the file of any noncompetitive purchase request for a noncompetitive postal contract a written certification that—</text>
<clause id="HCD91C17639BD4EAA98E4A09A6571E23B"><enum>(i)</enum><text>discloses any covered relationship of the covered employee; and</text> </clause>
<clause id="H9D84927ED39A4958ABAA2DFEBF4DB320"><enum>(ii)</enum><text>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 <external-xref legal-doc="regulation" parsable-cite="cfr/5/2635.702">section 2635.702</external-xref> of title 5, Code of Federal Regulations, or any successor thereto;</text> </clause></subparagraph>
<subparagraph id="H7A3037286ACE4434903CEEF11CD4FA67"><enum>(B)</enum><text>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;</text> </subparagraph>
<subparagraph id="H5FDCF34F15674D3292D943E7EF809855"><enum>(C)</enum><text>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;</text> </subparagraph>
<subparagraph id="HF96B218571A34476B9D8F92E9E70070C"><enum>(D)</enum><text>under subsections (d) and (e) of <external-xref legal-doc="regulation" parsable-cite="cfr/5/2635.502">section 2635.502</external-xref> of title 5, Code of Federal Regulations, or any successor thereto, require the ethics counsel for a covered postal entity to—</text>
<clause id="H1C9844A1711E47D584AE2E7F4BE75494"><enum>(i)</enum><text>authorize a covered employee that makes a disclosure under subparagraph (A)(i) to participate in the noncompetitive postal contract; or</text> </clause>
<clause id="H9EBA2E9E33EA4CF08493475D68A248BF"><enum>(ii)</enum><text>disqualify a covered employee that makes a disclosure under subparagraph (A)(i) from participating in the noncompetitive postal contract;</text> </clause></subparagraph>
<subparagraph id="H7C0DC2492D7042239925FD7B5FCC99DD"><enum>(E)</enum><text>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</text> </subparagraph>
<subparagraph id="H1FCFB24E56224C00A978CF5B07EF453B"><enum>(F)</enum><text>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.</text> </subparagraph></paragraph>
<paragraph id="H17A7D4586C1A4AA99033B4D75F3B9198"><enum>(2)</enum><header>Posting of waivers</header><text>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.</text> </paragraph></subsection>
<subsection id="HC79F4D00B25844718217010AB23C9DF2"><enum>(c)</enum><header>Contract voidance and recovery</header>
<paragraph id="H96C8E39D15AE4D058C841A05E2AA33BB"><enum>(1)</enum><header>Unlawful conduct</header><text>In any case in which there is a final conviction for a violation of any provision of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/18/11">chapter 11</external-xref> of title 18 relating to a postal contract, the head of a covered postal entity may—</text>
<subparagraph id="H3C1CCA2ADD4547EFAA87D71A9392E7A8"><enum>(A)</enum><text>void that contract; and</text> </subparagraph>
<subparagraph id="HF99B613BF48B4981A59E2C3D086C98D1"><enum>(B)</enum><text>recover the amounts expended and property transferred by the covered postal entity under that contract.</text> </subparagraph></paragraph>
<paragraph id="H60D6F561AE93441FAC25FD2CB112AA3C"><enum>(2)</enum><header>Obtaining or disclosing procurement information</header>
<subparagraph id="HCEA9C59565704A1C8DCA28145BF43543"><enum>(A)</enum><header>In general</header><text>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—</text>
<clause id="H54DE33C4DBF4499BA3DBC02F20D745E8"><enum>(i)</enum><text>void that contract; and</text> </clause>
<clause id="H12E0DBB7F6034671B0840FE3EC93186A"><enum>(ii)</enum><text>recover the amounts expended and property transferred by the covered postal entity under that contract.</text> </clause></subparagraph>
<subparagraph id="H4E1A6CB45A6A471D9FD08FA1F8A18A45"><enum>(B)</enum><header>Conviction or administrative determination</header><text>A case described under subparagraph (A) is any case in which—</text>
<clause id="HD159D5B38FBC49ED8B46C9709ECD9A54"><enum>(i)</enum><text>there is a final conviction for an offense punishable under <external-xref legal-doc="usc" parsable-cite="usc/41/2105">section 2105</external-xref> of title 41; or</text> </clause>
<clause id="H2048915AE6624FD8ACC1D520AAC15C87"><enum>(ii)</enum><text>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 <external-xref legal-doc="usc" parsable-cite="usc/39/2105">section 2105</external-xref> of such title.</text> </clause></subparagraph></paragraph></subsection></section></chapter><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HACD3FCA8CAC4493095EE1B22C0BD623D"><enum>(b)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">The table of chapters at the beginning of part I is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H35D87479CBF24EA582728DA9FBD2A4BE" style="USC">
<toc regeneration="no-regeneration">
<multi-column-toc-entry bold="on" level="section"><toc-enum>7.</toc-enum><level-header bold="on" level="section">Contracting Provisions</level-header><target>701</target></multi-column-toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section>
<section id="HA3014CE1DC5347EEB422D8BE2093F86A"><enum>602.</enum><header>Technical amendment to definition</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/41/7101">Section 7101(8)</external-xref> of title 41, United States Code, is amended—</text>
<paragraph id="H8D32FA304EBD4A82B47E6091DBF8C830"><enum>(1)</enum><text>by striking <quote>and</quote> at the end of subparagraph (C);</text> </paragraph>
<paragraph id="HAB720C6E56A54EA19BF0BF99E774897D"><enum>(2)</enum><text>by striking the period at the end of subparagraph (D) and inserting <quote>; and</quote>; and</text> </paragraph>
<paragraph id="H5835D499F95D4F0D96035E55F06B2ADB"><enum>(3)</enum><text>by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HF44E49FCD1004B0E9533D9E444AC9389" style="USC">
<subparagraph id="H148C443B71054BC8BEEFE0AA9F72890E"><enum>(E)</enum><text display-inline="yes-display-inline">the United States Postal Service and the Postal Regulatory Commission.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section>
<section commented="no" id="H96A6B7BEA1F3439C84ED8976DF697375" section-type="subsequent-section"><enum>603.</enum><header>Contract limitation</header>
<subsection commented="no" id="H59C912D6491345CC9DB787ACC0419996"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text> </subsection>
<subsection commented="no" id="H1F55AF03F15E472FB3F7FC505CBF83F8"><enum>(b)</enum><header>Covered contract</header><text>For the purposes of this section, the term <term>covered contract</term> means a contract—</text>
<paragraph commented="no" id="H3F8ED5CD01FE41D6B31712E297BE6185"><enum>(1)</enum><text>for an amount greater than $250,000;</text> </paragraph>
<paragraph commented="no" id="H889DC10AB9D542A387C24B0A2ED902E8"><enum>(2)</enum><text>entered into by the Postal Service—</text>
<subparagraph commented="no" id="H303CDB2D43E74848A319C1458DB9FD85"><enum>(A)</enum><text>within 2 years after the date of enactment of this Act;</text> </subparagraph>
<subparagraph commented="no" id="H7A2AEF068F1A4B19BF352767E2B64F92"><enum>(B)</enum><text>with a person other than a small business concern; and</text> </subparagraph>
<subparagraph commented="no" id="HB86A6D0F5E6C42149155F07BC130C8A0"><enum>(C)</enum><text>for the procurement of goods or services; and</text> </subparagraph></paragraph>
<paragraph commented="no" id="H8DD34B799256436EBA8C61174C808F9B"><enum>(3)</enum><text>for which such person will hire 10 or more individuals.</text> </paragraph></subsection>
<subsection commented="no" id="H8B89AEF585494730A85D581D3BDE19A2"><enum>(c)</enum><header>Qualifying individual</header><text>For the purposes of this section, the term <term>qualifying individual</term> means an individual who—</text>
<paragraph commented="no" id="H0B710A1E859346B5B309D803A702633C"><enum>(1)</enum><text>is separated from the Postal Service due to a reduction in force;</text> </paragraph>
<paragraph commented="no" id="H511B7DD84F3B421C9777B54FB26B5D9D"><enum>(2)</enum><text display-inline="yes-display-inline">at the time of separation—</text>
<subparagraph id="H81EED50DE33E4C3FAF04C15F5B30278B"><enum>(A)</enum><text>is a career postal employee; and</text> </subparagraph>
<subparagraph id="HEB60A09F36F940D0AD05DACAAC2C10C0"><enum>(B)</enum><text>is not a retirement-eligible individual;</text> </subparagraph></paragraph>
<paragraph commented="no" id="H383EA997CEC14B04B1DFC7A2A3414879"><enum>(3)</enum><text>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</text> </paragraph>
<paragraph id="H902912B4D4A64D319EE79063B1F57507"><enum>(4)</enum><text>is qualified for the position involved.</text> </paragraph></subsection>
<subsection commented="no" id="HF418917FDADC4600A4C405D824B11120"><enum>(d)</enum><header>Retirement-Eligible individual</header><text>For purposes of this section, the term <term>retirement-eligible individual</term>, 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—</text>
<paragraph commented="no" id="H6F51CB00995C47E98CB2F039A92C4B78"><enum>(1)</enum><text>subsection (a), (b), (c), or (f) of <external-xref legal-doc="usc" parsable-cite="usc/5/8336">section 8336</external-xref> of title 5, United States Code; or</text> </paragraph>
<paragraph commented="no" id="H8AB81C81EBA94BEF9B92520942D54763"><enum>(2)</enum><text>subsection (a), (b), (c), (d), or (g) of <external-xref legal-doc="usc" parsable-cite="usc/5/8412">section 8412</external-xref> of title 5, United States Code.</text> </paragraph></subsection>
<subsection commented="no" id="H776A1BCA0701427895909442B6118CFE"><enum>(e)</enum><header>Small business concern</header><text>For purposes of this section, the term <term>small business concern</term> means a small business as defined pursuant to section 3 of the Small Business Act and relevant regulations prescribed pursuant thereto.</text> </subsection></section>
<enum>VII</enum><header>Other Provisions</header>
<section id="H7A87F7F61959459999C6A07006E80B04"><enum>701.</enum><header>Postal facility designations</header>
<subsection id="HB423B489E765407983F2EFD8A0FFF29E"><enum>(a)</enum><header>Facilities designated</header>
<paragraph id="H741EEA2A2ED848908CE795A5887185CD"><enum>(1)</enum><header>Officer Tommy Decker Memorial Post Office</header>
<subparagraph id="HE051B2D7FE634BBBBA44E4C52D1A2FAD"><enum>(A)</enum><header>Designation</header><text>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 <quote>Officer Tommy Decker Memorial Post Office</quote>.</text> </subparagraph>
<subparagraph id="H91F05490315747CAB343E198D4079C58"><enum>(B)</enum><header>References</header><text>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 <quote>Officer Tommy Decker Memorial Post Office</quote>.</text> </subparagraph></paragraph>
<paragraph id="H4D957E03A23E44A59E81B4E31000676C"><enum>(2)</enum><header>Richard K. Salick Post Office</header>
<subparagraph id="H4ABFA0E2C2314768B41A095A3B263DC1"><enum>(A)</enum><header>Designation</header><text>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 <quote>Richard K. Salick Post Office</quote>.</text> </subparagraph>
<subparagraph id="H27AC3737AD624E2A97E87D6B8D29A527"><enum>(B)</enum><header>References</header><text>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 <quote>Richard K. Salick Post Office</quote>.</text> </subparagraph></paragraph>
<paragraph id="H13B2D6AD377F443CA53919B50F25989A"><enum>(3)</enum><header>National Park Ranger Margaret Anderson Post Office</header>
<subparagraph id="H190E2CB758004148A5FE3E40201026CC"><enum>(A)</enum><header>Designation</header><text>The facility of the United States Postal Service located at 103 Center Street West in Eatonville, Washington, shall be known and designated as the <quote>National Park Ranger Margaret Anderson Post Office</quote>.</text> </subparagraph>
<subparagraph id="H31C3493DE9DA46A8966ED77A1D6EFD71"><enum>(B)</enum><header>References</header><text>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 <quote>National Park Ranger Margaret Anderson Post Office</quote>.</text> </subparagraph></paragraph>
<paragraph id="H87FDD40BFC8647B0B3DD837AED79FCBD"><enum>(4)</enum><header>Judge Shirley A. Tolentino Post Office Building</header>
<subparagraph id="HFC8190365668452D8BF4539C1E68E903"><enum>(A)</enum><header>Designation</header><text>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 <quote>Judge Shirley A. Tolentino Post Office Building</quote>.</text> </subparagraph>
<subparagraph id="HC1C28A0A095F4BA6B4B47B044C510A1C"><enum>(B)</enum><header>References</header><text>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 <quote>Judge Shirley A. Tolentino Post Office Building</quote>.</text> </subparagraph></paragraph></subsection>
<subsection id="H33C837987A5E4700B3AA965C5CFB0903"><enum>(b)</enum><header>Sense of Congress</header><text>It is the sense of Congress that additional postal facility designations be included in postal reform legislation.</text> </subsection></section>
<section id="H6BF1893C53734A539E6A0A79C4DA9196"><enum>702.</enum><header>Response to submissions by the Postal Service</header>
<subsection id="H30537C19305D46FAB07A68D014B69BF1"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc-chapter/39/5">Chapter 5</external-xref> is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H67A9CF34826247D9AB1A6F52617525D9" style="USC">
<section id="HB9AF28D1B2B74519BCA78C19A6BD7722"><enum>506.</enum><header>Submissions by the Postal Service to the Postal Regulatory Commission</header><text display-inline="no-display-inline">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.</text> </section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H4435DCDA03D840F9A92D0BBFC06571C4"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/39/5">chapter 5</external-xref> is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H84AD104D3C3549DD8763A05E50A77273" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">506. Submissions by the Postal Service to the Postal Regulatory Commission.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section>
<section id="H68EF2FAEF3574F7A97E46FBAB8B5F06A" reported-display-style="strikethrough" changed="deleted" committee-id="HGO00"><enum>703.</enum><header>Fair stamp-evidencing competition</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/39/404">Section 404(a)</external-xref> is amended—</text>
<paragraph id="H414641152FD5478F9B1A101E99FFE1E2"><enum>(1)</enum><text>in paragraph (2), by striking <quote>or</quote> at the end;</text> </paragraph>
<paragraph id="HC3F550F6D452442085FAF2B806954C15"><enum>(2)</enum><text>in paragraph (3), by striking the period at the end and inserting <quote>; or</quote>; and</text> </paragraph>
<paragraph id="H791B9BB6A8734BB687DDE10D977D5312"><enum>(3)</enum><text>by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H02D2EB68634D4D33A3D9EB05AF6D3FF3" style="USC">
<paragraph id="HDF6DB4CFBD564D78AAE972A50D13D1E7"><enum>(4)</enum><text display-inline="yes-display-inline">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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section>
<section id="H294E51A2268946689ED7FD382B61ED3B" reported-display-style="italic" changed="added" committee-id="HGO00"><enum>703.</enum><header>Fair stamp-evidencing competition</header><text display-inline="no-display-inline">Section 404a(a) is further amended by—</text>
<paragraph id="H9EF43291812E4FD180135EA8426BB5C4"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (3), by striking <quote>or</quote> (as added by section 103(f)(1));</text></paragraph>
<paragraph id="H7BF25EEB5B77484FA1CEC2378F0CB992"><enum>(2)</enum><text>in paragraph (4) (as added 103(f)(4)), by striking the period and inserting <quote>; or</quote>; and</text></paragraph>
<paragraph id="HCB12199033C041D9B3BA17F2DB626709"><enum>(3)</enum><text>by adding at the end the following:</text>
<quoted-block style="USC" id="H90BB08F1EE32440483815F75315758B3" display-inline="no-display-inline">
<paragraph id="HB087FCE00388446B9837FDF51B2875C1"><enum>(5)</enum><text display-inline="yes-display-inline">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.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section>
<section id="HEB60003B16D7459D82C664339B3624DD"><enum>704.</enum><header>USPS innovation officer and accountability</header>
<subsection id="H1EDA1363D7CD44D59BCAD1B86BDC25E5"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/39/2">Chapter 2</external-xref> is amended by adding at the end the following:</text>
<quoted-block id="HF3EBBF0C9F144664AF2D9731BFD8CB77" style="OLC">
<section id="H6A7D9C8417844A51B60D66BA107523DA"><enum>209.</enum><header>USPS innovation officer and accountability</header>
<subsection id="HEE0604F9BB9F497F80C618F95AF69A56"><enum>(a)</enum><header>In general</header><text>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.</text> </subsection>
<subsection id="HBC1819A4EF2248648DC2BA3661004198"><enum>(b)</enum><header>Duties</header><text>The Chief Innovation Officer shall have as primary duties—</text>
<paragraph id="H2713C76BA617480B9928D37DDB804DA9"><enum>(1)</enum><text>leading the development of innovative nonpostal products and services that will maximize revenue to the Postal Service;</text> </paragraph>
<paragraph id="H60670DF595874880B7679704F08D1CD0"><enum>(2)</enum><text>developing innovative postal products and services, particularly those that utilize emerging information technologies, to maximize revenue to the Postal Service;</text> </paragraph>
<paragraph id="H23DE27376BD24560A5903E88A49C6EEE"><enum>(3)</enum><text>monitoring the performance of innovative products and services and revising them as needed to meet changing market trends; and</text> </paragraph>
<paragraph id="HB29AA7E108974A568689647463AEDF55"><enum>(4)</enum><text>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.</text> </paragraph></subsection>
<subsection id="H791EEC9D267B4AB3A46E1AAC867890EB"><enum>(c)</enum><header>Designation</header>
<paragraph id="HB67EB6AE7B714639813BA232B7603D5B"><enum>(1)</enum><header>Deadline</header><text>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.</text> </paragraph>
<paragraph id="H2601B4859FFC4A21BDA8BE835C069327"><enum>(2)</enum><header>Condition</header><text>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.</text> </paragraph></subsection>
<subsection id="HDDF835C8CE0543D1A89D19F6C3FCE920"><enum>(d)</enum><header>Innovation strategy</header>
<paragraph id="H8B118596D1B245E89EB795BEAC2AD756"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph>
<paragraph id="H21EDD1B732E74D87BD75B2C5401AF0AD"><enum>(2)</enum><header>Matters to be addressed</header><text>At a minimum, the strategy required by this section shall address—</text>
<subparagraph id="H570F2AC135664D3584C5B1FE2E131AFD"><enum>(A)</enum><text>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;</text> </subparagraph>
<subparagraph id="H658BFEF3CA454809AC9852757DB9B322"><enum>(B)</enum><text>the cost of developing and offering each product or service;</text> </subparagraph>
<subparagraph id="H9AFFD7F15107494CBC5D405777C68704"><enum>(C)</enum><text>the anticipated sales volume of each product and service;</text> </subparagraph>
<subparagraph id="H94EB8C2ABEBD4491A7C71F17EB55E62A"><enum>(D)</enum><text>the anticipated revenues and profits expected to be generated by each product and service;</text> </subparagraph>
<subparagraph id="H41E1E07ADDAE4339A7DFAD4EB3F20ACF"><enum>(E)</enum><text>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;</text> </subparagraph>
<subparagraph id="H6770233DF6D44DEE9FF5A1E51177F916"><enum>(F)</enum><text>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; <deleted-phrase reported-display-style="strikethrough" committee-id="HGO00">and</deleted-phrase></text> </subparagraph>
<subparagraph id="H9D96D1B4D8D449D0BCFD3B039601845F"><enum>(G)</enum><text>the metrics that will be utilized to assess the effectiveness of the innovation strategy<deleted-phrase reported-display-style="strikethrough" committee-id="HGO00">.</deleted-phrase><added-phrase committee-id="HGO00" reported-display-style="italic">; and</added-phrase></text> </subparagraph>
<subparagraph id="H7BD26DC118BC46E5A6FE31EB272C226A" indent="subparagraph" reported-display-style="italic" changed="added" committee-id="HGO00"><enum>(H)</enum><text display-inline="yes-display-inline">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.</text></subparagraph></paragraph>
<paragraph commented="no" id="H040C65A042B94E8C9377778237B11176"><enum>(3)</enum><header>Strategy updates</header><text display-inline="yes-display-inline">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.</text> </paragraph></subsection>
<subsection id="HA8B49EBF20094AB089BB653EB9827FEB"><enum>(e)</enum><header>Report on performance</header>
<paragraph id="HA2C8E41B7FDD44EBBF7429A87C6B77E2"><enum>(1)</enum><header>In general</header><text>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 <external-xref legal-doc="usc" parsable-cite="usc/31/1105">section 1105(a)</external-xref> of title 31 a report that details the Postal Service’s progress in implementing the innovation strategy.</text> </paragraph>
<paragraph id="HCEC3624EE6C3463DB4F276BE9C40A422"><enum>(2)</enum><header>Matters to be addressed</header><text>At a minimum, the report required by this section shall address—</text>
<subparagraph id="H5C2B4CD9E88D4E2A9DDFE4E5B50325D2"><enum>(A)</enum><text>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;</text> </subparagraph>
<subparagraph id="H6A38D4C1598F4D8CB861B75580741AAD"><enum>(B)</enum><text>the total sales volume and revenue generated by each product and service on a monthly basis for the preceding year;</text> </subparagraph>
<subparagraph id="H9796FEB1F8324788B7684F7043B9F665"><enum>(C)</enum><text>trends in the markets filled by each product and service;</text> </subparagraph>
<subparagraph id="HE9C5E07E818C4C50A1FEC1DB9AD9F087"><enum>(D)</enum><text>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;</text> </subparagraph>
<subparagraph id="HA77B760182EC46FBA4174B3D8CFFF1AF"><enum>(E)</enum><text>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</text> </subparagraph>
<subparagraph id="HF1CEB3E96B0A472F98BF332B2D205087"><enum>(F)</enum><text>the performance of the innovation strategy according to the metrics identified in subsection (d)(2)(G).</text> </subparagraph></paragraph></subsection>
<subsection id="HFEC7D2972A50420AA51E04C41E231393"><enum>(f)</enum><header>Comptroller general</header>
<paragraph id="H740A4C9FDABB4A4C98BEB7D28F73342E"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph>
<paragraph id="H8E50BFEB1D9D48E289CF7743F4A342BC"><enum>(2)</enum><header>Contents</header><text>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—</text>
<subparagraph id="H106FAC35ADBE48CA83769B88BC708DDC"><enum>(A)</enum><text>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;</text> </subparagraph>
<subparagraph id="H02AED79954434F448647E7898C920119"><enum>(B)</enum><text>the sales volume of each such product and service;</text> </subparagraph>
<subparagraph id="HD7ED4909491A445F97B6A7C133EE4290"><enum>(C)</enum><text>the revenues and profits generated by each such product and service; and</text> </subparagraph>
<subparagraph id="H02B1EAFF054E4CE899B265779611FD4E"><enum>(D)</enum><text>the likelihood of continued success of each such product and service.</text> </subparagraph></paragraph>
<paragraph id="HD6308B1C75164636A8A31F8FBCA2CA11"><enum>(3)</enum><header>Submission</header><text>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.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H3FDB628C2C3C42929F5925E4880E478E"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections at the beginning of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/39/2">chapter 2</external-xref> is amended by adding at the end the following:</text>
<quoted-block id="H63DCC1E9DEF1455F897B5A38B6C1794C" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">209. USPS innovation officer and accountability.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section>
<section id="HC6909A89EB604928A969DF16128448E4"><enum>705.</enum><header>Postal regulatory commission travel reporting</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/39/504">Section 504(d)</external-xref> is amended—</text>
<paragraph id="HDC10F164443F4FC880AF5FD30CAD4D1D"><enum>(1)</enum><text>by striking <quote>(d)</quote> and inserting <quote>(d)(1)</quote>; and</text> </paragraph>
<paragraph id="H6C79D518CBD84579A0822FDDDCB582CD"><enum>(2)</enum><text>by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H87D6B98BE6204BEC96BC6D77B7676065" style="USC">
<paragraph commented="no" id="H0C1F8E769F424E449BCE042A42DED21C"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section>
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