[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2309 Reported in House (RH)]

                                                 Union Calendar No. 291
112th CONGRESS
  2d Session
                                H. R. 2309

                  [Report No. 112-363, Parts I and II]

 To restore the financial solvency of the United States Postal Service 
and to ensure the efficient and affordable nationwide delivery of mail.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 23, 2011

Mr. Issa (for himself and Mr. Ross of Florida) introduced the following 
 bill; which was referred to the Committee on Oversight and Government 
 Reform, and in addition to the Committee on Rules, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

                            January 17, 2012

Reported from the Committee on Oversight and Government Reform with an 
                               amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                            January 17, 2012

  Referral to the Committee on Rules extended for a period ending not 
                        later than March 1, 2012

                             March 1, 2012

  Referral to the Committee on Rules extended for a period ending not 
                       later than March 30, 2012

                             March 29, 2012

 Reported from the Committee on Rules with an amendment, committed to 
the Committee of the Whole House on the State of the Union, and ordered 
                             to be printed
 [Strike out all after the enacting clause and insert the part printed 
                           in boldface roman]
 [For text of introduced bill, see copy of bill as introduced on June 
                               23, 2011]

_______________________________________________________________________

                                 A BILL


 
 To restore the financial solvency of the United States Postal Service 
and to ensure the efficient and affordable nationwide delivery of mail.


 


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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS; REFERENCES.

    (a) Short Title.--This Act may be cited as the ``Postal Reform Act 
of 2011''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents; references.

                 TITLE I--POSTAL SERVICE MODERNIZATION

            Subtitle A--Commission on Postal Reorganization

Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. Commission on Postal Reorganization.
Sec. 104. Recommendations for closures and consolidations.
Sec. 105. Implementation of closures and consolidations.
Sec. 106. Congressional consideration of final CPR reports.
Sec. 107. Nonappealability of decisions.
Sec. 108. Rules of construction.
Sec. 109. GAO study and report.

                      Subtitle B--Other Provisions

Sec. 111. Implementation of discretionary non-mail delivery days.
Sec. 112. Efficient and flexible universal postal service.
Sec. 113. Enhanced reporting on Postal Service efficiency.
Sec. 114. Applicability of procedures relating to closures and 
                            consolidations.

   TITLE II--POSTAL SERVICE FINANCIAL RESPONSIBILITY AND MANAGEMENT 
                          ASSISTANCE AUTHORITY

               Subtitle A--Establishment and Organization

Sec. 201. Purposes.
Sec. 202. Establishment of the Authority.
Sec. 203. Membership and qualification requirements.
Sec. 204. Organization.
Sec. 205. Executive Director and staff.
Sec. 206. Funding.

                  Subtitle B--Powers of the Authority

Sec. 211. Powers.
Sec. 212. Exemption from liability for claims.
Sec. 213. Treatment of actions arising under this title.
Sec. 214. Delivery point modernization.

Subtitle C--Establishment and Enforcement of Financial Plan and Budget 
                         for the Postal Service

Sec. 221. Development of financial plan and budget for the Postal 
                            Service.
Sec. 222. Supplementary borrowing authority during a control period.
Sec. 223. Process for submission and approval of financial plan and 
                            budget.
Sec. 224. Responsibilities of the Authority.
Sec. 225. Effect of finding noncompliance with financial plan and 
                            budget.
Sec. 226. Recommendations regarding financial stability, etc.
Sec. 227. Special rules for fiscal year in which control period 
                            commences.
Sec. 228. Assistance in achieving financial stability, etc.
Sec. 229. Obtaining reports.
Sec. 230. Reports and comments.

              Subtitle D--Termination of a Control Period

Sec. 231. Termination of control period, etc.
Sec. 232. Congressional consideration of recommendation.

                  TITLE III--POSTAL SERVICE WORKFORCE

                     Subtitle A--General Provisions

Sec. 301. Modifications relating to determination of pay comparability.
Sec. 302. Limitation on postal contributions under FEGLI and FEHBP.
Sec. 303. Repeal of provision relating to overall value of fringe 
                            benefits.
Sec. 304. Applicability of reduction-in-force procedures.
Sec. 305. Modifications relating to collective bargaining.
Sec. 306. One-time transfer of net surplus postal retirement 
                            contributions.

        Subtitle B--Postal Service Workers' Compensation Reform

Sec. 311. Postal Service workers' compensation reform.

                    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. Rate preferences for nonprofit advertising.
Sec. 404. Streamlined review of qualifying service agreements for 
                            competitive products.
Sec. 405. Submission of service agreements for streamlined review.
Sec. 406. Transparency and accountability for service agreements.
Sec. 407. Nonpostal services.
Sec. 408. Reimbursement of Alaska bypass mail costs.
Sec. 409. Appropriations modernization.
Sec. 410. Retiree health care benefit payment deferral.

                   TITLE V--POSTAL CONTRACTING REFORM

Sec. 501. Contracting provisions.
Sec. 502. Technical amendment to definition.
    (c) References.--Except as otherwise expressly provided, whenever 
in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of title 
39, United States Code.

                 TITLE I--POSTAL SERVICE MODERNIZATION

            Subtitle A--Commission on Postal Reorganization

SEC. 101. SHORT TITLE.

    This subtitle may be cited as the ``Commission on Postal 
Reorganization Act'' or the ``CPR Act''.

SEC. 102. DEFINITIONS.

    For purposes of this title--
            (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;
            (3) the term ``mail processing facility'' means a 
        processing and distribution center, processing and distribution 
        facility, network distribution center, or other facility which 
        is operated by the Postal Service, and the primary function of 
        which is to sort and process mail;
            (4) 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 June 23, 2011);
            (5) 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 (4);
            (6) the term ``baseline year'' means the fiscal year last 
        ending before the date of the enactment of this Act; and
            (7) the term ``Member of Congress'' has the meaning given 
        such term by section 2106 of title 5, United States Code.

SEC. 103. COMMISSION ON POSTAL REORGANIZATION.

    (a) Establishment.--There shall be established, not later than 90 
days after the date of the enactment of this Act, an independent 
commission to be known as the ``Commission on Postal Reorganization'' 
(hereinafter in this section referred to as the ``Commission'').
    (b) Duties.--The Commission shall carry out the duties specified 
for it in this subtitle.
    (c) Members.--
            (1) In general.--The Commission shall be composed of 5 
        members who shall be appointed by the President, and of whom--
                    (A) 1 shall be appointed from among individuals 
                recommended by the Speaker of the House of 
                Representatives;
                    (B) 1 shall be appointed from among individuals 
                recommended by the majority leader of the Senate;
                    (C) 1 shall be appointed from among individuals 
                recommended by the minority leader of the House of 
                Representatives;
                    (D) 1 shall be appointed from among individuals 
                recommended by the minority leader of the Senate; and
                    (E) 1 shall be appointed from among individuals 
                recommended by the Comptroller General.
            (2) Qualifications.--
                    (A) In general.--Members of the Commission shall be 
                chosen to represent the public interest generally, and 
                shall not be representatives of specific interests 
                using the Postal Service.
                    (B) Ineligibility.--An individual may not be 
                appointed to serve as a member of the Commission if 
                such individual is a Member of Congress or served as an 
                employee of the Postal Service or the Postal Regulatory 
                Commission, or of a labor organization representing 
                employees of the Postal Service or the Postal 
                Regulatory Commission, during the 3-year period ending 
                on the date of such appointment.
            (3) Political affiliation.--Not more than 3 members of the 
        Commission may be of the same political party.
    (d) Terms.--Each member of the Commission shall be appointed for 
the life of the Commission and may be removed only for cause.
    (e) Vacancies.--A vacancy in the Commission shall be filled in the 
same manner as the original appointment.
    (f) Chairman.--The President shall, at the time of making 
appointments under subsection (c), designate one of the members to 
serve as chairman of the Commission.
    (g) Compensation and Travel Expenses.--
            (1) Compensation.--
                    (A) In general.--Except as provided in subparagraph 
                (B), each member of the Commission shall be paid at a 
                rate equal to the daily equivalent of $40,000 per year 
                for each day (including travel time) during which the 
                member is engaged in the actual performance of duties 
                vested in the Commission.
                    (B) Exception.--Any member of the Commission who is 
                a full-time officer or employee of the United States 
                may not receive additional pay, allowances, or benefits 
                by reason of such member's service on the Commission.
            (2) Travel expenses.--Each member shall receive travel 
        expenses, including per diem in lieu of subsistence, in 
        accordance with applicable provisions of subchapter I of 
        chapter 57 of title 5, United States Code.
    (h) Director.--The Commission shall have a Director who shall be 
appointed by the Commission. The Director shall be paid at the rate of 
basic pay for level IV of the Executive Schedule under section 5315 of 
title 5, United States Code. An appointment under this subsection shall 
be subject to the requirements of subsection (c)(2).
    (i) Additional Personnel.--With the approval of the Commission, the 
Director may appoint and fix the pay of such additional personnel as 
the Director considers appropriate. Such additional personnel may be 
appointed without regard to the provisions of title 5, United States 
Code, governing appointments in the competitive service, and may be 
paid without regard to the provisions of chapter 51 and subchapter III 
of chapter 53 of such title relating to classification and General 
Schedule pay rates, except that an individual so appointed may not 
receive pay at a rate of basic pay in excess of the rate of basic pay 
payable to the Director. An individual appointed under this subsection 
shall serve at the pleasure of the Director.
    (j) Provisions Relating to Details.--
            (1) In general.--Upon request of the Director, the head of 
        any Federal department or agency may detail any of the 
        personnel of such department or agency to the Commission to 
        assist the Commission in carrying out its duties under this 
        subtitle. Notwithstanding any other provision of law, to 
        provide continuity in the work of the Commission, such details 
        may be extended beyond 1 year at the request of the Director.
            (2) Numerical limitation.--Not more than \1/3\ of the 
        personnel of the Commission may consist of the number of 
        individuals on detail from the Postal Service and the Postal 
        Regulatory Commission combined.
            (3) Other limitations.--A person may not be detailed to the 
        Commission from the Postal Service or the Postal Regulatory 
        Commission if such person participated personally and 
        substantially on any matter, within the Postal Service or the 
        Postal Regulatory Commission, concerning the preparation of 
        recommendations for closures or consolidations of postal 
        facilities under this subtitle. No employee of the Postal 
        Service or the Postal Regulatory Commission (including a 
        detailee to the Postal Service or the Postal Regulatory 
        Commission) may--
                    (A) prepare any report concerning the 
                effectiveness, fitness, or efficiency of the 
                performance, on the staff of the Commission, of any 
                person detailed from the Postal Service or the Postal 
                Regulatory Commission to such staff;
                    (B) review the preparation of such a report; or
                    (C) approve or disapprove such a report.
    (k) Other Authorities.--
            (1) Experts and consultants.--The Commission may procure by 
        contract, to the extent funds are available, temporary or 
        intermittent services under section 3109 of title 5, United 
        States Code.
            (2) Leasing, etc.--The Commission may lease space and 
        acquire personal property to the extent funds are available.
    (l) Authorization of Appropriations.--In order to carry out this 
section, there are authorized to be appropriated out of the Postal 
Service Fund $20,000,000, which funds shall remain available until 
expended.
    (m) Financial Reporting.--
            (1) Audit and expenditures.--The Commission shall be 
        responsible for issuing annual financial statements and for 
        establishing and maintaining adequate controls over its 
        financial reporting.
            (2) Internal audits.--The Commission shall maintain an 
        adequate internal audit of its financial transactions.
            (3) Annual certification.--The Commission shall obtain an 
        annual certification for each fiscal year from an independent, 
        certified public accounting firm of the accuracy of its 
        financial statements.
            (4) Comptroller general.--The accounts and operations of 
        the Commission shall be audited by the Comptroller General and 
        reports thereon made to the Congress to the extent and at such 
        times as the Comptroller General may determine.
    (n) Termination.--The Commission shall terminate 60 days after 
submitting its final reports under section 104(d)(3).

SEC. 104. RECOMMENDATIONS FOR CLOSURES AND CONSOLIDATIONS.

    (a) Plan for the Closure or Consolidation of Postal Retail 
Facilities.--
            (1) In general.--Not later than 120 days after the date of 
        the enactment of this Act, the Postal Service, in consultation 
        with the Postal Regulatory Commission, shall develop and submit 
        to the Commission on Postal Reorganization a plan for the 
        closure or consolidation of such postal retail facilities as 
        the Postal Service considers necessary and appropriate so that 
        the total annual costs attributable to the operation of postal 
        retail facilities will be, for each fiscal year beginning at 
        least 2 years after the date on which the Commission transmits 
        to Congress its final report under subsection (d)(3)(A) 
        relating to this subsection, at least $1,000,000,000 less than 
        the corresponding total annual costs for the baseline year.
            (2) Contents.--The plan shall include--
                    (A) a list of the postal retail facilities proposed 
                for closure or consolidation under this subtitle;
                    (B) a proposed schedule under which--
                            (i) closures and consolidations of postal 
                        retail facilities would be carried out under 
                        this subtitle; and
                            (ii) all closures and consolidations of 
                        postal retail facilities under this subtitle 
                        would be completed by not later than 2 years 
                        after the date on which the Commission 
                        transmits to Congress its final report under 
                        subsection (d)(3)(A) relating to such plan;
                    (C) the estimated total annual cost savings 
                attributable to the proposed closures and 
                consolidations described in the plan;
                    (D) the criteria and process used to develop the 
                information described in subparagraphs (A) and (B);
                    (E) the methodology and assumptions used to derive 
                the estimates described in subparagraph (C); and
                    (F) 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.
            (3) Consistency.--The methodology and assumptions used to 
        derive the cost estimates described in paragraph (2)(C) shall 
        be consistent with the methodology and assumptions which would 
        have been used by the Postal Service if those closures and 
        consolidations had instead taken effect in the baseline year.
    (b) Plan for the Closure or Consolidation of Mail Processing 
Facilities.--
            (1) In general.--Not later than 300 days after the date of 
        the enactment of this Act, the Postal Service, in consultation 
        with the Inspector General of the United States Postal Service, 
        shall develop and submit to the Commission on Postal 
        Reorganization a plan for the closure or consolidation of such 
        mail processing facilities as the Postal Service considers 
        necessary and appropriate so that--
                    (A) the total annual costs attributable to the 
                operation of mail processing facilities will be, for 
                each fiscal year beginning at least 2 years after the 
                date on which the Commission transmits to Congress its 
                final report under subsection (d)(3)(A) relating to 
                this subsection, at least $2,000,000,000 less than the 
                corresponding total annual costs for the baseline year; 
                and
                    (B) the Postal Service has, for fiscal years 
                beginning at least 2 years after the date on which the 
                Commission transmits to Congress its final report under 
                subsection (d)(3)(A) relating to this subsection, no 
                more than 10 percent excess mail processing capacity.
            (2) Contents.--The plan shall include--
                    (A) a list of the mail processing facilities 
                proposed for closure or consolidation under this 
                subtitle;
                    (B) a proposed schedule under which--
                            (i) closures and consolidations of mail 
                        processing facilities would be carried out 
                        under this subtitle; and
                            (ii) all closures and consolidations of 
                        mail processing facilities under this subtitle 
                        would be completed by not later than 2 years 
                        after the date on which the Commission 
                        transmits to Congress its final report under 
                        subsection (d)(3)(A) relating to such plan;
                    (C) the estimated total annual cost savings 
                attributable to the proposed closures and 
                consolidations described in the plan;
                    (D) the criteria and process used to develop the 
                information described in subparagraphs (A) and (B);
                    (E) the methodology and assumptions used to derive 
                the estimates described in subparagraph (C); and
                    (F) 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.
            (3) Consistency.--The methodology and assumptions used to 
        derive the cost estimates described in paragraph (2)(C) shall 
        be consistent with the methodology and assumptions which would 
        have been used by the Postal Service if those closures and 
        consolidations had instead taken effect in the baseline year.
            (4) Excess mail processing capacity.--The Commission shall 
        cause to be published in the Federal Register notice of a 
        proposed definition of ``excess mail processing capacity'' for 
        purposes of this section within 120 days after the date of the 
        enactment of this Act, and shall provide a period of 30 days 
        for public comment on the proposed definition. Not later than 
        180 days after the date of the enactment of this Act, the 
        Commission shall issue and cause to be published in the Federal 
        Register a final definition of ``excess mail processing 
        capacity'' for purposes of this section. Such definition shall 
        include an estimate of the total amount of excess mail 
        processing capacity in mail processing facilities as of the 
        date of the enactment of this Act.
            (5) Underutilized mail processing facilities.--In 
        developing a plan under this subsection, the Postal Service may 
        include the estimated total cost savings that would result from 
        moving mail processing operations to any mail processing 
        facility that, as of the date of introduction of this Act--
                    (A) is not currently used by the Postal Service; 
                and
                    (B) is capable of processing mail to the Postal 
                Service's standards.
    (c) Plan for the Closure or Consolidation of Area and District 
Offices.--
            (1) In general.--Not later than 300 days after the date of 
        the enactment of this Act, the Postal Service, in consultation 
        with the Inspector General of the United States Postal Service, 
        shall develop and submit to the Commission on Postal 
        Reorganization a plan for the closure or consolidation of such 
        area and district offices as the Postal Service considers 
        necessary and appropriate so that the combined total number of 
        area and district offices will be, for each fiscal year 
        beginning at least 2 years after the date on which the 
        Commission transmits to Congress its final report under 
        subsection (d)(3)(A) relating to this subsection, at least 30 
        percent less than the corresponding combined total for the 
        baseline year.
            (2) Contents.--The plan shall include--
                    (A) a list of the area and district offices 
                proposed for closure or consolidation under this 
                subtitle;
                    (B) a proposed schedule under which--
                            (i) closures and consolidations of area and 
                        district offices would be carried out under 
                        this subtitle; and
                            (ii) all closures and consolidations of 
                        area and district offices under this subtitle 
                        would be completed by not later than 2 years 
                        after the date on which the Commission 
                        transmits to Congress its final report under 
                        subsection (d)(3)(A) relating to such plan;
                    (C) the estimated total annual cost savings 
                attributable to the proposed closures and 
                consolidations described in the plan;
                    (D) the criteria and process used to develop the 
                information described in subparagraphs (A) and (B);
                    (E) the methodology and assumptions used to derive 
                the estimates described in subparagraph (C); and
                    (F) 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.
            (3) Consistency.--The methodology and assumptions used to 
        derive the cost estimates described in paragraph (2)(C) shall 
        be consistent with the methodology and assumptions which would 
        have been used by the Postal Service if those closures and 
        consolidations had instead taken effect in the baseline year.
    (d) Review and Recommendations of the Commission.--
            (1) Initial reports.--
                    (A) In general.--After receiving the plan of the 
                Postal Service under subsection (a), (b), or (c), the 
                Commission on Postal Reorganization shall transmit to 
                Congress and publish in the Federal Register a report 
                under this paragraph, which shall contain the 
                Commission's findings based on a review and analysis of 
                such plan, together with the Commission's initial 
                recommendations for closures and consolidations of 
                postal facilities, mail processing facilities, or area 
                and district offices (as the case may be).
                    (B) Explanation of changes.--The Commission shall 
                explain and justify in its report any recommendations 
                made by the Commission that are different from those 
                contained in the Postal Service plan to which such 
                report pertains.
                    (C) Deadlines.--A report of the Commission under 
                this paragraph shall be transmitted and published, in 
                accordance with subparagraph (A), within--
                            (i) if the report pertains to the plan 
                        under subsection (a), 60 days after the date on 
                        which the Commission receives such plan; or
                            (ii) if the report pertains to the plan 
                        under subsection (b) or (c), 90 days after the 
                        date on which the Commission receives such 
                        plan.
            (2) Public hearings.--
                    (A) In general.--After receiving the plan of the 
                Postal Service under subsection (a), (b), or (c), the 
                Commission on Postal Reorganization shall conduct at 
                least 5 public hearings on such plan. The hearings 
                shall be conducted in geographic areas chosen so as to 
                reflect a broadly representative range of needs and 
                interests.
                    (B) Testimony.--All testimony before the Commission 
                at a public hearing conducted under this paragraph 
                shall be given under oath.
                    (C) Deadlines.--All hearings under this paragraph 
                shall be completed within 60 days after the date as of 
                which the Commission satisfies the requirements of 
                paragraph (1) with respect to such plan.
            (3) Final reports.--
                    (A) In general.--After satisfying the requirements 
                of paragraph (2) with respect to the plan of the Postal 
                Service under subsection (a), (b), or (c) (as the case 
                may be), the Commission shall transmit to Congress and 
                publish in the Federal Register a report under this 
                paragraph containing a summary of the hearings 
                conducted with respect to such plan, together with the 
                Commission's final recommendations for closures and 
                consolidations of postal facilities, mail processing 
                facilities, or area and district offices (as the case 
                may be).
                    (B) Approval.--Recommendations under subparagraph 
                (A) shall not be considered to be final recommendations 
                unless they are made with--
                            (i) except as provided in clause (ii), the 
                        concurrence of at least 4 members of the 
                        Commission; or
                            (ii) to the extent that the requirements of 
                        subsection (b)(1)(A) or (c)(1) are not met, the 
                        concurrence of all sitting members, but only if 
                        the shortfall (relative to the requirements of 
                        subsection (b)(1)(A) or (c)(1), as the case may 
                        be) does not exceed 25 percent.
                    (C) Contents.--A report under this paragraph shall 
                include--
                            (i) the information required by paragraph 
                        (2) of subsection (a), (b), or (c) (as the case 
                        may be); and
                            (ii) a description of the operations that 
                        will be affected by the closure or 
                        consolidation and the facilities or offices 
                        which will be performing or ceasing to perform 
                        such operations as a result of such closure or 
                        consolidation.
                    (D) Deadlines.--A report of the Commission under 
                this paragraph shall be transmitted and published, in 
                accordance with subparagraph (A), within 60 days after 
                the date as of which the Commission satisfies the 
                requirements of paragraph (2) with respect to the plan 
                involved.
    (e) Limitation Relating to Postal Retail Facilities Identified for 
Closure or Consolidation.--
            (1) Applicability.--This subsection applies to any plan of 
        the Postal Service under subsection (a) and any report of the 
        Commission under subsection (d) (whether initial or final) 
        pertaining to such plan.
            (2) Limitation.--Of the total number of postal retail 
        facilities recommended for closure or consolidation (combined) 
        under any plan or report to which this subsection applies, the 
        number of such facilities that are within the K or L cost 
        ascertainment grouping (combined) shall account for not more 
        than 10 percent of such total number.
            (3) References.--For purposes of this subsection--
                    (A) any reference to a ``cost ascertainment 
                grouping'' shall be considered to refer to a cost 
                ascertainment grouping as described in section 123.11 
                of the Postal Operations Manual (as in effect on June 
                23, 2011); and
                    (B) any reference to a particular category 
                (designated by a letter) of a cost ascertainment 
                grouping shall be considered to refer to such category, 
                as described in such section 123.11 (as in effect on 
                the date specified in subparagraph (A)).
    (f) Annual Reports.--
            (1) In general.--There shall be included in the next 5 
        annual reports submitted under section 2402 of title 39, United 
        States Code, beginning with the report covering any period of 
        time occurring after the date of enactment of this Act, the 
        following (shown on a State-by-State basis):
                    (A) In connection with closures and consolidations 
                taking effect in the year covered by the report, the 
                total number of individuals separated from employment 
                with the Postal Service, including, if separation 
                occurs in a year other than the year in which the 
                closing or consolidation occurs, the year in which 
                separation occurs.
                    (B) Of the total numbers under subparagraph (A)--
                            (i) the number and percentage comprising 
                        preference eligibles or veterans; and
                            (ii) the number and percentage comprising 
                        individuals other than preference eligibles or 
                        veterans.
                    (C) Of the total numbers under subparagraph (A), 
                the number and percentage reemployed in a position 
                within the general commuting area of the facility or 
                office involved (including, if reemployment occurs in a 
                year other than the year in which the closing or 
                consolidation occurs, the year in which reemployment 
                occurs)--
                            (i) with the Postal Service; or
                            (ii) with an employer other than the Postal 
                        Service.
                    (D) The methodology and assumptions used to derive 
                the estimates described in subparagraph (B).
                    (E) The criteria and process used to develop the 
                information described in subparagraph (C).
            (2) Definitions.--For purposes of this subsection--
                    (A) the term ``preference eligible'' has the 
                meaning given such term in section 2108(3) of title 5, 
                United States Code; and
                    (B) the term ``veteran'' has the meaning given such 
                term in section 101(2) of title 38, United States Code.

SEC. 105. IMPLEMENTATION OF CLOSURES AND CONSOLIDATIONS.

    (a) In General.--Subject to subsection (b), the Postal Service 
shall--
            (1) close or consolidate (as the case may be) the 
        facilities and offices recommended by the Commission in each of 
        its final reports under section 104(d)(3); and
            (2) carry out those closures and consolidations in 
        accordance with the timetable recommended by the Commission in 
        such report, except that in no event shall any such closure or 
        consolidation be completed later than 2 years after the date on 
        which such report is submitted to Congress.
    (b) Congressional Disapproval.--
            (1) In general.--The Postal Service may not carry out any 
        closure or consolidation recommended by the Commission in a 
        final report if a joint resolution disapproving the 
        recommendations of the Commission is enacted, in accordance 
        with section 106, before the earlier of--
                    (A) the end of the 30-day period beginning on the 
                date on which the Commission transmits those 
                recommendations to Congress under section 104(d)(3); or
                    (B) the adjournment of the Congress sine die for 
                the session during which such report is transmitted.
            (2) Days of session.--For purposes of paragraph (1) and 
        subsections (a) and (c) of section 106, the days on which 
        either House of Congress is not in session because of an 
        adjournment of more than 7 days to a day certain shall be 
        excluded in the computation of a period.

SEC. 106. CONGRESSIONAL CONSIDERATION OF FINAL CPR REPORTS.

    (a) Terms of the Resolution.--For purposes of this subtitle, the 
term ``joint resolution'', as used with respect to a report under 
section 104(d)(3), means only a joint resolution--
            (1) which is introduced within the 10-day period beginning 
        on the date on which such report is received by Congress;
            (2) the matter after the resolving clause of which is as 
        follows: ``That Congress disapproves the recommendations of the 
        Commission on Postal Reorganization, submitted by such 
        Commission on __, and pertaining to the closure or 
        consolidation of __.'', the first blank space being filled in 
        with the appropriate date and the second blank space being 
        filled in with ``postal retail facilities'', ``mail processing 
        facilities'', or ``area and district offices'' (as the case may 
        be);
            (3) the title of which is as follows: ``Joint resolution 
        disapproving the recommendations of the Commission on Postal 
        Reorganization.''; and
            (4) which does not have a preamble.
    (b) Referral.--A resolution described in subsection (a) that is 
introduced in the House of Representatives or the Senate shall be 
referred to the appropriate committees of the House of Representatives 
or the Senate, respectively.
    (c) Discharge.--If the committee to which a resolution described in 
subsection (a) is referred has not reported such resolution (or an 
identical resolution) by the end of the 20-day period beginning on the 
date on which the Commission transmits the report (to which such 
resolution pertains) to Congress under section 104(d)(3), such 
committee shall, at the end of such period, be discharged from further 
consideration of such resolution, and such resolution shall be placed 
on the appropriate calendar of the House involved.
    (d) Consideration.--
            (1) In general.--On or after the third day after the date 
        on which the committee to which such a resolution is referred 
        has reported, or has been discharged (under subsection (c)) 
        from further consideration of, such a resolution, it is in 
        order (even though a previous motion to the same effect has 
        been disagreed to) for any Member of the respective House to 
        move to proceed to the consideration of the resolution. A 
        Member may make the motion only on the day after the calendar 
        day on which the Member announces to the House concerned the 
        Member's intention to make the motion, except that, in the case 
        of the House of Representatives, the motion may be made without 
        such prior announcement if the motion is made by direction of 
        the committee to which the resolution was referred. All points 
        of order against the resolution (and against consideration of 
        the resolution) are waived. The motion is highly privileged in 
        the House of Representatives and is privileged in the Senate 
        and is not debatable. The motion is not subject to amendment, 
        or to a motion to postpone, or to a motion to proceed to the 
        consideration of other business. A motion to reconsider the 
        vote by which the motion is agreed to or disagreed to shall not 
        be in order. If a motion to proceed to the consideration of the 
        resolution is agreed to, the respective House shall immediately 
        proceed to consideration of the joint resolution without 
        intervening motion, order, or other business, and the 
        resolution shall remain the unfinished business of the 
        respective House until disposed of.
            (2) Debate.--Debate on the resolution, and on all debatable 
        motions and appeals in connection therewith, shall be limited 
        to not more than 2 hours, which shall be divided equally 
        between those favoring and those opposing the resolution. An 
        amendment to the resolution is not in order. A motion further 
        to limit debate is in order and not debatable. A motion to 
        postpone, or a motion to proceed to the consideration of other 
        business, or a motion to recommit the resolution is not in 
        order. A motion to reconsider the vote by which the resolution 
        is agreed to or disagreed to is not in order.
            (3) Vote on final passage.--Immediately following the 
        conclusion of the debate on a resolution described in 
        subsection (a) and a single quorum call at the conclusion of 
        the debate if requested in accordance with the rules of the 
        appropriate House, the vote on final passage of the resolution 
        shall occur.
            (4) Appeals.--Appeals from the decisions of the Chair 
        relating to the application of the rules of the Senate or the 
        House of Representatives, as the case may be, to the procedure 
        relating to a resolution described in subsection (a) shall be 
        decided without debate.
    (e) Consideration by Other House.--
            (1) In general.--If, before the passage by one House of a 
        resolution of that House described in subsection (a), that 
        House receives from the other House a resolution (described in 
        subsection (a)) relating to the same report, then the following 
        procedures shall apply:
                    (A) The resolution of the other House shall not be 
                referred to a committee and may not be considered in 
                the House receiving it except in the case of final 
                passage as provided in subparagraph (B)(ii).
                    (B) With respect to the resolution described in 
                subsection (a) (relating to the report in question) of 
                the House receiving the resolution--
                            (i) the procedure in that House shall be 
                        the same as if no resolution (relating to the 
                        same report) had been received from the other 
                        House; but
                            (ii) the vote on final passage shall be on 
                        the resolution of the other House.
            (2) Disposition of a resolution.--Upon disposition of the 
        resolution received from the other House, it shall no longer be 
        in order to consider the resolution that originated in the 
        receiving House.
    (f) Rules of the Senate and House.--This section is enacted by 
Congress--
            (1) as an exercise of the rulemaking power of the Senate 
        and House of Representatives, respectively, and as such it is 
        deemed a part of the rules of each House, respectively, but 
        applicable only with respect to the procedure to be followed in 
        that House in the case of a resolution described in subsection 
        (a), and it supersedes other rules only to the extent that it 
        is inconsistent with such rules; and
            (2) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.

SEC. 107. NONAPPEALABILITY OF DECISIONS.

    (a) To PRC.--The closing or consolidation of any facility or office 
under this subtitle may not be appealed to the Postal Regulatory 
Commission under section 404(d) or any other provision of title 39, 
United States Code, or be the subject of an advisory opinion issued by 
the Postal Regulatory Commission under section 3661 of such title.
    (b) Judicial Review.--No process, report, recommendation, or other 
action of the Commission on Postal Reorganization shall be subject to 
judicial review.

SEC. 108. RULES OF CONSTRUCTION.

    (a) Continued Availability of Authority To Close or Consolidate 
Postal Facilities.--
            (1) In general.--Nothing in this subtitle shall be 
        considered to prevent the Postal Service from closing or 
        consolidating any postal facilities, in accordance with 
        otherwise applicable provisions of law, either before or after 
        the implementation of any closures or consolidations under this 
        subtitle.
            (2) Coordination rule.--No appeal or determination under 
        section 404(d) of title 39, United States Code, or any other 
        provision of law shall delay, prevent, or otherwise affect any 
        closure or consolidation under this subtitle.
    (b) Inapplicability of Certain Provisions.--
            (1) In general.--The provisions of law identified in 
        paragraph (2)--
                    (A) shall not apply to any closure or consolidation 
                carried out under this subtitle; and
                    (B) shall not be taken into account for purposes of 
                carrying out section 103 or 104.
            (2) Provisions identified.--The provisions of law under 
        this paragraph are--
                    (A) section 101(b) of title 39, United States Code; 
                and
                    (B) section 404(d) of title 39, United States Code.

SEC. 109. GAO STUDY AND REPORT.

    (a) Study.--Not later than 1 year after the date of enactment of 
this Act, the Comptroller General of the United States shall conduct a 
study on the effects, with respect to the unemployment rate of minority 
communities, of the proposed closures and consolidations of postal 
retail facilities, mail processing facilities, and area or district 
offices under this subtitle.
    (b) Report.--Upon completion of the study required under subsection 
(a), the Comptroller General of the United States shall submit a report 
to Congress regarding the findings of such study.

                      Subtitle B--Other Provisions

SEC. 111. IMPLEMENTATION OF DISCRETIONARY NON-MAIL DELIVERY DAYS.

    (a) In General.--Section 404 is amended by inserting after 
subsection (e) the following:
    ``(f)(1) The Postmaster General may, with respect to any year for 
which 6-day delivery is otherwise required, declare up to 12 non-mail 
delivery days. Not later than 1 month before the beginning of the year, 
the Postmaster General shall submit to the Board of Governors a report 
listing the non-mail delivery days in such year.
    ``(2) A non-mail delivery day under this subsection shall be a day 
other than--
            ``(A) a Sunday;
            ``(B) a legal public holiday listed in section 6103(a) of 
        title 5 or any other day declared to be a holiday by Federal 
        statute or Executive order; or
            ``(C) during the 30-day period that ends on the date of a 
        regularly scheduled general election for Federal office.
    ``(3) Any day which is declared under this subsection to be a non-
mail delivery day--
            ``(A) shall, for purposes of mail delivery and such other 
        postal operations as the Postal Service may by regulation 
        prescribe, be treated as if it were a Sunday; except that
            ``(B) an employee of the Postal Service (other than one who 
        is prevented from working on such day by reason of this 
        subsection) shall be entitled to the same pay and benefits for 
        that day as if this subsection had not been enacted.
    ``(4)(A) The 6-day mail delivery requirement shall not apply with 
respect to a week in which a non-mail delivery day under this 
subsection occurs.
    ``(B) The authority to declare a non-mail delivery day under this 
subsection shall be considered to be within the right of the Postal 
Service to determine the methods, means, and personnel by which postal 
operations are to be conducted.
    ``(5) Not less than 6 months after the date of enactment of this 
subsection, the Postal Service may submit a proposal under section 3661 
for a nationwide change in service to reduce mail delivery from 6 days 
to 5 days each week. Notwithstanding any other provision of law, the 
Postal Service shall maintain 6-day delivery service as the standard 
mail delivery schedule until 90 days following the rendering of an 
advisory opinion on 5-day delivery by the Postal Regulatory 
Commission.''.

SEC. 112. EFFICIENT AND FLEXIBLE UNIVERSAL POSTAL SERVICE.

    (a) Postal Policy.--
            (1) In general.--Section 101(b) is amended to read as 
        follows:
    ``(b) The Postal Service shall provide effective and regular postal 
services to rural areas, communities, and small towns where post 
offices are not self-sustaining.''.
            (2) Conforming amendments.--Clause (iii) of section 
        404(d)(2)(A) is amended to read as follows:
                    ``(iii) whether such closing or consolidation is 
                consistent with the policy of the Government, as stated 
                in section 101(b), that the Postal Service shall 
                provide effective and regular postal services to rural 
                areas, communities, and small towns where post offices 
                are not self-sustaining;''.
    (b) General Duty.--Paragraph (3) of section 403(b) is amended to 
read as follows:
            ``(3) to ensure that postal patrons throughout the Nation 
        will, consistent with reasonable economies of postal 
        operations, have ready access to essential postal services.''.
    (c) PRC Review of Determinations To Close or Consolidate a Post 
Office.--
            (1) Deadline for review.--Section 404(d)(5) is amended by 
        striking ``120 days'' and inserting ``60 days''.
            (2) Exclusion from review.--Section 404(d) is amended by 
        adding at the end the following:
    ``(7)(A) The appeals process set forth in paragraph (5) shall not 
apply to a determination of the Postal Service to close a post office 
if there is located, within 2 miles of such post office, a qualified 
contract postal unit.
    ``(B) For purposes of this paragraph--
            ``(i) the term `contract postal unit' means a store or 
        other place of business which--
                    ``(I) is not owned or operated by the Postal 
                Service; and
                    ``(II) in addition to its usual operations, 
                provides postal services to the general public under 
                contract with the Postal Service; and
            ``(ii) the term `qualified contract postal unit', as used 
        in connection with a post office, means a contract postal unit 
        which--
                    ``(I) begins to provide postal services to the 
                general public during the period--
                            ``(aa) beginning 1 year before the date on 
                        which the closure or consolidation of such post 
                        office is scheduled to take effect; and
                            ``(bb) ending on the 15th day after the 
                        date on which the closure or consolidation of 
                        such post office is scheduled to take effect; 
                        and
                    ``(II) has not, pursuant to subparagraph (A), 
                served as the basis for exempting any other post office 
                from the appeals process set forth in paragraph (5).
    ``(C)(i) If the contract postal unit (which is providing postal 
services that had been previously provided by the post office that was 
closed) 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, the contract postal unit 
shall be subject to a closure determination by the Postal Service to 
decide whether a post office must be reopened within the area 
(delimited by the 2-mile radius referred to in subparagraph (A)).
    ``(ii) A decision under clause (i) not to reopen a post office may 
be appealed to the Postal Regulatory Commission under procedures which 
the Commission shall by regulation prescribe. Such procedures shall be 
based on paragraph (5), except that, for purposes of this clause, 
paragraph (5)(C) shall be applied by substituting `in violation of 
section 101(b), leaving postal patrons without effective and regular 
access to postal services' for `unsupported by substantial evidence on 
the record'.''.
            (3) Applicability.--The amendments made by this subsection 
        shall not apply with respect to any appeal, notice of which is 
        received by the Postal Regulatory Commission before the date of 
        the enactment of this Act (determined applying the rules set 
        forth in section 404(d)(6) of title 39, United States Code).
    (d) Expedited Procedures.--
            (1) In general.--Section 3661 is amended by adding at the 
        end the following:
    ``(d)(1) The Commission shall issue its opinion within 90 days 
after the receipt of any proposal (as referred to in subsection (b)) 
concerning--
            ``(A) the closing or consolidation of postal retail 
        facilities (as that term is defined in section 102(2) of the 
        Postal Reform Act of 2011) to a degree that will generally 
        affect service on a nationwide or substantially nationwide 
        basis; or
            ``(B) an identical or substantially identical proposal on 
        which the Commission issued an opinion within the preceding 5 
        years.
    ``(2) If necessary in order to comply with the 90-day requirement 
under paragraph (1), the Commission may apply expedited procedures 
which the Commission shall by regulation prescribe.''.
            (2) Regulations.--The Postal Regulatory Commission shall 
        prescribe any regulations necessary to carry out the amendment 
        made by paragraph (1) within 90 days after the date of the 
        enactment of this Act.
            (3) Applicability.--The amendment made by this subsection 
        shall apply with respect to any proposal received by the Postal 
        Regulatory Commission on or after the earlier of--
                    (A) the 90th day after the date of the enactment of 
                this Act; or
                    (B) the effective date of the regulations under 
                paragraph (2).

SEC. 113. ENHANCED REPORTING ON POSTAL SERVICE EFFICIENCY.

    Section 3652(a) is amended--
            (1) in paragraph (1), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding after paragraph (2) the following:
            ``(3) which shall provide the overall change in Postal 
        Service productivity and the resulting effect of such change on 
        overall Postal Service costs during such year, using such 
        methodologies as the Commission shall by regulation 
        prescribe.''.

SEC. 114. APPLICABILITY OF PROCEDURES RELATING TO CLOSURES AND 
              CONSOLIDATIONS.

    (a) In General.--Section 404(d) is amended by adding after 
paragraph (7) (as added by section 112(c)(2)) the following:
    ``(8) For purposes of this subsection, the term `post office' means 
a post office and any other facility described in section 102(2) of the 
Postal Reform Act of 2011.''.
    (b) Effective Date.--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.

   TITLE II--POSTAL SERVICE FINANCIAL RESPONSIBILITY AND MANAGEMENT 
                          ASSISTANCE AUTHORITY

               Subtitle A--Establishment and Organization

SEC. 201. PURPOSES.

    (a) Purposes.--The purposes of this title are as follows:
            (1) To eliminate budget deficits and cash shortages of the 
        Postal Service through strategic financial planning, sound 
        budgeting, accurate revenue forecasts, and careful spending.
            (2) To ensure the universal service mandate detailed in 
        section 101 of title 39, United States Code, is maintained 
        during a period of fiscal emergency.
            (3) To conduct necessary investigations and studies to 
        determine the fiscal status and operational efficiency of the 
        Postal Service.
            (4) To assist the Postal Service in--
                    (A) restructuring its organization and workforce to 
                bring expenses in line with diminishing revenue and 
                generate sufficient profits for capital investment and 
                repayment of debt;
                    (B) meeting all fiscal obligations to the Treasury 
                of the United States; and
                    (C) ensuring the appropriate and efficient delivery 
                of postal services.
            (5) To provide the Postal Service with a temporary increase 
        in its borrowing authority to enable the Postal Service to 
        complete necessary restructuring.
            (6) To ensure the long-term financial, fiscal, and economic 
        vitality and operational efficiency of the Postal Service.
    (b) Reservation of Powers.--Nothing in this title may be 
construed--
            (1) to relieve any obligations existing as of the date of 
        the enactment of this Act of the Postal Service to the Treasury 
        of the United States; or
            (2) to limit the authority of Congress to exercise ultimate 
        legislative authority over the Postal Service.

SEC. 202. ESTABLISHMENT OF THE AUTHORITY.

    (a) Establishment.--There shall be established, upon the 
commencement of any control period, an entity to be known as the 
``Postal Service Financial Responsibility and Management Assistance 
Authority'' (hereinafter in this title referred to as the 
``Authority'').
    (b) Control Period.--
            (1) Commencement of a control period.--
                    (A) In general.--For the purposes of this title, a 
                control period commences whenever the Postal Service 
                has been in default to the Treasury of the United 
                States, with respect to any debts, obligations, loans, 
                bonds, notes, or other form of borrowing, or any 
                scheduled payments to any fund in the Treasury of the 
                United States, for a period of at least 30 days.
                    (B) Advisory period.--For purposes of the first 
                control period, the Authority shall operate exclusively 
                in an advisory period for two full fiscal years after 
                the commencement of the control period. At the 
                completion of the second full fiscal year or any year 
                thereafter during the length of the control period, if 
                the Postal Service's annual deficit is greater than 
                $2,000,000,000, the Authority shall be fully in force 
                according to the provisions of this title. During an 
                advisory period--
                            (i) the Authority is not authorized to 
                        employ any staff and the Postal Service shall 
                        designate a Level-Two Postal Service Executive 
                        as a liaison with the members of the Authority;
                            (ii) any provision of this title that 
                        requires the Authority or the Postal Service to 
                        take any action shall be considered only to 
                        take effect in the event the Authority comes 
                        into full force and that effective date shall 
                        be considered to be the date of the 
                        commencement of the control period for the 
                        purposes any provision not mention in this 
                        subparagraph; and
                            (iii) the Postal Service shall have access 
                        to the funds available under section 222 
                        according to applicable provisions of this Act, 
                        subject to the approval of the Postal Service 
                        Board of Governors without the approval of the 
                        Authority.
            (2) Treatment of authorities and responsibilities of the 
        board of governors, etc. during a control period.--During a 
        control period--
                    (A) all authorities and responsibilities of the 
                Board of Governors, and the individual Governors, of 
                the Postal Service under title 39, United States Code, 
                and any other provision of law shall be assumed by the 
                Authority; and
                    (B) the Board of Governors, and the individual 
                Governors, may act in an advisory capacity only.
            (3) Treatment of certain postal service executives during a 
        control period.--
                    (A) Definition.--For the purposes of this section, 
                the term ``Level-Two Postal Service Executive'' 
                includes the Postmaster General, the Deputy Postmaster 
                General, and all other officers or employees of the 
                Postal Service in level two of the Postal Career 
                Executive Service (or the equivalent).
                    (B) Treatment.--Notwithstanding any other provision 
                of law or employment contract, during a control 
                period--
                            (i) all Level-Two Postal Service Executives 
                        shall serve at the pleasure of the Authority;
                            (ii) the duties and responsibilities of all 
                        Level-Two Postal Service Executives, as well as 
                        the terms and conditions of their employment 
                        (including their compensation), shall be 
                        subject to determination or redetermination by 
                        the Authority;
                            (iii) total compensation of a Level-Two 
                        Postal Service Executive may not, for any year 
                        in such control period, exceed the annual rate 
                        of basic pay payable for level I of the 
                        Executive Schedule under section 5312 of title 
                        5, United States Code, for such year; for 
                        purposes of this clause, the term ``total 
                        compensation'' means basic pay, bonuses, 
                        awards, and all other monetary compensation;
                            (iv) the percentage by which the rate of 
                        basic pay of a Level-Two Postal Service 
                        Executive is increased during any year in such 
                        control period may not exceed the percentage 
                        change in the Consumer Price Index for All 
                        Urban Consumers, unadjusted for seasonal 
                        variation, for the most recent 12-month period 
                        available, except that, in the case of a Level-
                        Two Postal Service Executive who has had a 
                        significant change in job responsibilities, a 
                        greater change shall be allowable if approved 
                        by the Authority;
                            (v) apart from basic pay, a Level-Two 
                        Postal Service Executive may not be afforded 
                        any bonus, award, or other monetary 
                        compensation for any fiscal year in the control 
                        period if expenditures of the Postal Service 
                        for such fiscal year exceeded revenues of the 
                        Postal Service for such fiscal year (determined 
                        in accordance with generally accepted 
                        accounting principles); and
                            (vi) no deferred compensation may be paid, 
                        accumulated, or recognized in the case of any 
                        Level-Two Postal Service Executive, with 
                        respect to any year in a control period, which 
                        is not generally paid, accumulated, or 
                        recognized in the case of employees of the 
                        United States (outside of the Postal Service) 
                        in level I of the Executive Schedule under 
                        section 5312 of title 5, United States Code, 
                        with respect to such year.
                    (C) Bonus authority.--Section 3686 of title 39, 
                United States Code, shall, during the period beginning 
                on the commencement date of the control period and 
                ending on the termination date of the control period--
                            (i) be suspended with respect to all Level-
                        Two Postal Service Executives; but
                            (ii) remain in effect for all other 
                        officers and employees of the Postal Service 
                        otherwise covered by this section.
            (4) Termination of a control period.--Subject to subtitle 
        D, a control period terminates upon certification by the 
        Authority, with the concurrence of the Secretary of the 
        Treasury and the Director of the Office of Personnel 
        Management, that--
                    (A) for 2 consecutive fiscal years (occurring after 
                the date of the enactment of this Act), expenditures of 
                the Postal Service did not exceed revenues of the 
                Postal Service (as determined in accordance with 
                generally accepted accounting principles);
                    (B) the Authority has approved a Postal Service 
                financial plan and budget that shows expenditures of 
                the Postal Service not exceeding revenues of the Postal 
                Service (as so determined) for the fiscal year to which 
                such budget pertains and each of the next 3 fiscal 
                years; and
                    (C) the Postal Service financial plan and budget 
                (as referred to in subparagraph (B)) includes plans--
                            (i) for the repayment of any supplementary 
                        debt under section 222, in equal annual 
                        installments over a period of not more than 5 
                        years; and
                            (ii) to properly fund Postal Service 
                        pensions and retiree health benefits in 
                        accordance with law.

SEC. 203. MEMBERSHIP AND QUALIFICATION REQUIREMENTS.

    (a) Membership.--
            (1) In general.--The Authority shall consist of 5 members 
        appointed by the President who meet the qualifications 
        described in subsection (b), except that the Authority may take 
        any action under this title at any time after the President has 
        appointed 4 of its members.
            (2) Recommendations.--Of the 5 members so appointed--
                    (A) 1 shall be appointed from among individuals 
                recommended by the Speaker of the House of 
                Representatives;
                    (B) 1 shall be appointed from among individuals 
                recommended by the majority leader of the Senate;
                    (C) 1 shall be appointed from among individuals 
                recommended by the minority leader of the House of 
                Representatives;
                    (D) 1 shall be appointed from among individuals 
                recommended by the minority leader of the Senate; and
                    (E) 1 shall be appointed from among individuals 
                recommended by the Comptroller General.
            (3) Political affiliation.--No more than 3 members of the 
        Authority may be of the same political party.
            (4) Chair.--The President shall designate 1 of the members 
        of the Authority as the Chair of the Authority.
            (5) Sense of congress regarding deadline for appointment.--
        It is the sense of Congress that the President should appoint 
        the members of the Authority as soon as practicable after the 
        date on which a control period commences, but no later than 30 
        days after such date.
            (6) Term of service.--
                    (A) In general.--Except as provided in subparagraph 
                (B), each member of the Authority shall be appointed 
                for a term of 3 years.
                    (B) Appointment for term following initial term.--
                As designated by the President at the time of 
                appointment for the term immediately following the 
                initial term, of the members appointed for the term 
                immediately following the initial term--
                            (i) 1 member shall be appointed for a term 
                        of 1 year;
                            (ii) 2 members shall be appointed for a 
                        term of 2 years; and
                            (iii) 2 members shall be appointed for a 
                        term of 3 years.
                    (C) Removal.--The President may remove any member 
                of the Authority only for cause.
                    (D) No compensation for service.--Members of the 
                Authority shall serve without pay, but may receive 
                reimbursement for any reasonable and necessary expenses 
                incurred by reason of service on the Authority.
    (b) Qualification Requirements.--
            (1) In general.--An individual meets the qualifications for 
        membership on the Authority if the individual--
                    (A) has significant knowledge and expertise in 
                finance, management, and the organization or operation 
                of businesses having more than 500 employees; and
                    (B) represents the public interest generally, is 
                not a representative of specific interests using or 
                belonging to the Postal Service, and does not have any 
                business or financial interest in any enterprise in the 
                private sector of the economy engaged in the delivery 
                of mail matter.
            (2) Specific conditions.--An individual shall not be 
        considered to satisfy paragraph (1)(B) if, at any time during 
        the 5-year period ending on the date of appointment, such 
        individual--
                    (A) has been an officer, employee, or private 
                contractor with the Postal Service or the Postal 
                Regulatory Commission; or
                    (B) has served as an employee or contractor of a 
                labor organization representing employees of the Postal 
                Service or the Postal Regulatory Commission.

SEC. 204. ORGANIZATION.

    (a) Adoption of By-Laws for Conducting Business.--As soon as 
practicable after the appointment of its members, the Authority shall 
adopt by-laws, rules, and procedures governing its activities under 
this title, including procedures for hiring experts and consultants. 
Upon adoption, such by-laws, rules, and procedures shall be submitted 
by the Authority to the Postmaster General, the President, and 
Congress.
    (b) Certain Activities Requiring Approval of Majority of Members.--
Under its by-laws, the Authority may conduct its operations under such 
procedures as it considers appropriate, except that an affirmative vote 
of a majority of the members of the Authority shall be required in 
order for the Authority to--
            (1) approve or disapprove a financial plan and budget as 
        described by subtitle C;
            (2) implement recommendations on financial stability and 
        management responsibility under section 226;
            (3) take any action under authority of section 
        202(b)(3)(B)(i); or
            (4) initiate the establishment of a new workers' 
        compensation system for the Postal Service in accordance with 
        section 311.

SEC. 205. EXECUTIVE DIRECTOR AND STAFF.

    (a) Executive Director.--The Authority shall have an Executive 
Director who shall be appointed by the Chair with the consent of the 
Authority. The Executive Director shall be paid at a rate determined by 
the Authority, except that such rate may not exceed the rate of basic 
pay payable for level IV of the Executive Schedule under section 5315 
of title 5, United States Code.
    (b) Staff.--With the approval of the Authority, the Executive 
Director may appoint and fix the pay of such additional personnel as 
the Executive Director considers appropriate, except that no individual 
appointed by the Executive Director may be paid at a rate greater than 
the rate of pay for the Executive Director. Personnel appointed under 
this subsection shall serve at the pleasure of the Executive Director.
    (c) Inapplicability of Certain Civil Service Laws.--The Executive 
Director and staff of the Authority may be appointed without regard to 
the provisions of title 5, United States Code, governing appointments 
in the competitive service, and paid without regard to the provisions 
of chapter 51 and subchapter III of chapter 53 of such title relating 
to classification and General Schedule pay rates.
    (d) Staff of Federal Agencies.--Upon request of the Chair, the head 
of any Federal department or agency may detail, on a reimbursable or 
nonreimbursable basis, any of the personnel of such department or 
agency to the Authority to assist it in carrying out its duties under 
this title.

SEC. 206. FUNDING.

    (a) In General.--There are authorized to be appropriated, out of 
the Postal Service Fund, such sums as may be necessary for the 
Authority. In requesting an appropriation under this section for a 
fiscal year, the Authority shall prepare and submit to the Congress 
under section 2009 of title 39, United States Code, a budget of the 
Authority's expenses, including expenses for facilities, supplies, 
compensation, and employee benefits not to exceed $10,000,000. In years 
in which a control period commences, the Authority shall submit a 
budget within 30 days of the appointment of the members of the 
Authority.
    (b) Amendment to Section 2009.--Section 2009 is amended in the next 
to last sentence--
            (1) by striking ``, and (3)'' and inserting ``, (3)''; and
            (2) by striking the period and inserting ``, and (4) the 
        Postal Service Financial Responsibility and Management 
        Assistance Authority requests to be appropriated, out of the 
        Postal Service Fund, under section 206 of the Postal Reform Act 
        of 2011.''.

                  Subtitle B--Powers of the Authority

SEC. 211. POWERS.

    (a) Powers of Members and Agents.--Any member or agent of the 
Authority may, if authorized by the Authority, take any action which 
the Authority is authorized by this section to take.
    (b) Obtaining Official Data From the Postal Service.--
Notwithstanding any other provision of law, the Authority may secure 
copies of such records, documents, information, or data from any entity 
of the Postal Service necessary to enable the Authority to carry out 
its responsibilities under this title. At the request of the Authority, 
the Authority shall be granted direct access to such information 
systems, records, documents, information, or data as will enable the 
Authority to carry out its responsibilities under this title. The head 
of the relevant entity of the Postal Service shall provide the 
Authority with such information and assistance (including granting the 
Authority direct access to automated or other information systems) as 
the Authority requires under this subsection.
    (c) Gifts, Bequests, and Devises.--The Authority may accept, use, 
and dispose of gifts, bequests, or devises of services or property, 
both real and personal, for the purpose of aiding or facilitating the 
work of the Authority. Gifts, bequests, or devises of money and 
proceeds from sales of other property received as gifts, bequests, or 
devises shall be deposited in such account as the Authority may 
establish and shall be available for disbursement upon order of the 
Chair.
    (d) Administrative Support Services.--Upon the request of the 
Authority, the Administrator of General Services may provide to the 
Authority, on a reimbursable basis, the administrative support services 
necessary for the Authority to carry out its responsibilities under 
this title.
    (e) Authority To Enter Into Contracts.--The Executive Director may 
enter into such contracts as the Executive Director considers 
appropriate (subject to the approval of the Chair) to carry out the 
Authority's responsibilities under this title.
    (f) Civil Actions To Enforce Powers.--The Authority may seek 
judicial enforcement of its authority to carry out its responsibilities 
under this title.
    (g) Penalties.--
            (1) Administrative discipline.--Any officer or employee of 
        the Postal Service who, by action or inaction, fails to comply 
        with any directive or other order of the Authority under 
        section 226(c) shall be subject to appropriate administrative 
        discipline, including suspension from duty without pay or 
        removal from office, by order of either the Postmaster General 
        or the Authority.
            (2) Reporting requirement.--Whenever an officer or employee 
        of the Postal Service takes or fails to take any action which 
        is noncompliant with any directive or other order of the 
        Authority under section 226(c), the Postmaster General shall 
        immediately report to the Authority all pertinent facts, 
        together with a statement of any actions taken by the 
        Postmaster General or proposed by the Postmaster General to be 
        taken under paragraph (1).
    (h) Sense of Congress.--It is the sense of Congress that, in making 
determinations that affect prior collective bargaining agreements and 
prior agreements on workforce reduction, any rightsizing effort within 
the Postal Service that results in a decrease in the number of postal 
employees should ensure that such employees can receive their full 
pensions, are fully compensated, and that the collective bargaining 
agreements and prior agreements on workforce reduction that they 
entered into with Postal Service management are fully honored.

SEC. 212. EXEMPTION FROM LIABILITY FOR CLAIMS.

    The Authority and its members may not be liable for any obligation 
of or claim against the Postal Service resulting from actions taken to 
carry out this title.

SEC. 213. TREATMENT OF ACTIONS ARISING UNDER THIS TITLE.

    (a) Jurisdiction Established in United States Court of Appeals for 
the District of Columbia Circuit.--A person (including the Postal 
Service) adversely affected or aggrieved by an order or decision of the 
Authority may, within 30 days after such order or decision becomes 
final, institute proceedings for review thereof by filing a petition in 
the United States Court of Appeals for the District of Columbia 
Circuit. The court shall review the order or decision in accordance 
with section 706 of title 5, United States Code, and chapter 158 and 
section 2112 of title 28, United States Code. Judicial review shall be 
limited to the question of whether the Authority acted in excess of its 
statutory authority, and determinations of the Authority with respect 
to the scope of its statutory authority shall be upheld if based on a 
permissible construction of the statutory authority.
    (b) Prompt Appeal to the Supreme Court.--Notwithstanding any other 
provision of law, review by the Supreme Court of the United States of a 
decision of the Court of Appeals which is issued pursuant to subsection 
(a) may be had only if the petition for such review is filed within 10 
days after the entry of such decision.
    (c) Timing of Relief.--No order of any court granting declaratory 
or injunctive relief against the Authority, including relief permitting 
or requiring the obligation, borrowing, or expenditure of funds, shall 
take effect during the pendency of the action before such court, during 
the time appeal may be taken, or (if appeal is taken) during the period 
before the court has entered its final order disposing of such action.
    (d) Expedited Consideration.--It shall be the duty of the United 
States Court of Appeals for the District of Columbia and the Supreme 
Court of the United States to advance on the docket and to expedite to 
the greatest possible extent the disposition of any matter brought 
under subsection (a).

SEC. 214. DELIVERY POINT MODERNIZATION.

    (a) Definitions.--For purposes of this section--
            (1) the term ``delivery point'' means a mailbox or other 
        receptacle to which mail is delivered;
            (2) the term ``primary mode of delivery'' means the typical 
        method by which the Postal Service delivers letter mail to the 
        delivery point of a postal patron;
            (3) the term ``door delivery'' means a primary mode of mail 
        delivery whereby mail is placed into a slot or receptacle at or 
        near the postal patron's door or is hand delivered to a postal 
        patron, but does not include curbside or centralized delivery;
            (4) the term ``centralized delivery'' means a primary mode 
        of mail delivery whereby mail receptacles are grouped or 
        clustered at a single location; and
            (5) the term ``curbside delivery'' means a primary mode of 
        mail delivery whereby a mail receptacle is situated at the edge 
        of a roadway or curb.
    (b) Reduction in Total Number of Delivery Points.--The Authority 
shall, during the first control period commencing under this title, 
take such measures as may be necessary and appropriate so that--
            (1) in each fiscal year beginning at least 2 years after 
        the commencement date of such first control period--
                    (A) the total number of delivery points for which 
                door delivery is the primary mode of mail delivery does 
                not exceed 25 percent of the corresponding number for 
                the fiscal year last ending before such commencement 
                date; and
                    (B) the total annual costs attributable to door 
                delivery, centralized delivery, and curbside delivery 
                combined will be at least $3,500,000,000 less than the 
                corresponding total annual costs for the fiscal year 
                last ending before such commencement date; and
            (2) in each fiscal year beginning at least 4 years after 
        the commencement date of such first control period, the total 
        number of delivery points for which door delivery is the 
        primary mode of mail delivery does not exceed 10 percent of the 
        corresponding number for the fiscal year last ending before 
        such commencement date.
In making any decision under this subsection involving the continuation 
or termination of door delivery with respect to any locality or 
addresses within a locality, the Authority shall consider rates of 
poverty, population density, historical value, whether such locality is 
in a registered historic district (as that term is defined in section 
47(c)(3)(B) of the Internal Revenue Code of 1986), whether such address 
is another place on the National Register of Historic Places, and other 
appropriate factors.
    (c) Order of Precedence.--In order to carry out subsection (b)--
            (1) in making conversions from door delivery to other 
        primary modes of delivery--
                    (A) conversion shall be to centralized delivery; 
                except
                    (B) if subparagraph (A) is impractical, conversion 
                shall be to curbside delivery; and
            (2) in the case of delivery points established after the 
        commencement date of the first control period under this 
        title--
                    (A) centralized delivery shall be the primary mode 
                of delivery; except
                    (B) if subparagraph (A) is impractical, curbside 
                delivery shall be the primary mode of delivery.
    (d) Waiver for Physical Hardship.--The Postal Service shall 
establish and maintain a waiver program under which, upon application, 
door delivery may be continued or provided in any case in which--
            (1) centralized or curbside delivery would, but for this 
        subsection, otherwise be the primary mode of delivery; and
            (2) door delivery is necessary in order to avoid causing 
        significant physical hardship to a postal patron.
    (e) Centralized Delivery Placement.--It is the sense of the 
Congress that the Postal Service should negotiate with State and local 
governments, businesses, local associations, and property owners to 
place centralized delivery units in locations that maximize delivery 
efficiency, ease of use for postal patrons, and respect for private 
property rights.
    (f) Voucher Program.--
            (1) In general.--The Postal Service may, in accordance with 
        such standards and procedures as the Postal Service shall by 
        regulation prescribe, provide for a voucher program under 
        which--
                    (A) 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; and
                    (B) the Postal Service Competitive Products Fund is 
                made available for that purpose.
            (2) Conforming amendment.--Section 2011(a)(2) is amended--
                    (A) in subparagraph (A), by striking ``and'' after 
                the semicolon;
                    (B) in subparagraph (B), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(C) vouchers under the program described in section 
        214(f)(1) of the Postal Reform Act of 2011.''.
    (g) Audits.--
            (1) In general.--The Inspector General of the United States 
        Postal Service--
                    (A) shall conduct an annual audit to determine 
                whether the Postal Service is in compliance with the 
                requirements of subsection (b); and
                    (B) shall make such recommendations as the 
                Inspector General considers appropriate to improve the 
                administration of such subsection.
            (2) Submission.--The audit and recommendations under 
        paragraph (1) shall be submitted by the Inspector General to--
                    (A) the Committee on Oversight and Government 
                Reform of the House of Representatives; and
                    (B) the Committee on Homeland Security and 
                Governmental Affairs of the Senate.
            (3) Information.--Upon request, the Postal Service shall 
        furnish such information as the Inspector General may require 
        in order to carry out this subsection.
    (h) Savings Report.--
            (1) In general.--In the event that a reduction in door 
        delivery points is required under this section, the Authority 
        shall submit a report to Congress, not later than 1 year after 
        the date on which such reductions commence, describing the cost 
        savings realized to the date of such submission and the 
        estimated additional cost savings anticipated as a result of 
        such reductions occurring after such submission. The report 
        shall include--
                    (A) the measures taken to achieve the realized 
                savings and the assumptions and methodologies used to 
                compute the estimated cost savings; and
                    (B) information with respect to what additional 
                measures might be necessary to achieve the cost savings 
                required under this section.
            (2) Reduction limitation.--Notwithstanding any other 
        provision of this Act, if the Authority determines that the 
        measures described pursuant to subparagraphs (A) and (B) of 
        paragraph (1) are not feasible, not cost effective, or 
        otherwise detrimental to the mail delivery policy of the Postal 
        Service, the Authority shall submit a report to Congress 
        stating any legislative changes recommended for door delivery 
        modernization procedures under this section, including 
        increasing flexibility of this section's requirements or the 
        postponement of further conversion.

Subtitle C--Establishment and Enforcement of Financial Plan and Budget 
                         for the Postal Service

SEC. 221. DEVELOPMENT OF FINANCIAL PLAN AND BUDGET FOR THE POSTAL 
              SERVICE.

    (a) Development of Financial Plan and Budget.--For each fiscal year 
for which the Postal Service is in a control period, the Postmaster 
General shall develop and submit to the Authority a financial plan and 
budget for the Postal Service in accordance with this section.
    (b) Contents of Financial Plan and Budget.--A financial plan and 
budget for the Postal Service for a fiscal year shall specify the 
budget for the Postal Service as required by section 2009 of title 39, 
United States Code, for the applicable fiscal year and the next 3 
fiscal years, in accordance with the following requirements:
            (1) The financial plan and budget shall meet the 
        requirements described in subsection (c) to promote the 
        financial stability of the Postal Service.
            (2) The financial plan and budget shall--
                    (A) include the Postal Service's annual budget 
                program (under section 2009 of title 39, United States 
                Code) and the Postal Service's plan commonly referred 
                to as its ``Integrated Financial Plan'';
                    (B) describe lump-sum expenditures by all 
                categories traditionally used by the Postal Service;
                    (C) describe capital expenditures (together with a 
                schedule of projected capital commitments and cash 
                outlays of the Postal Service and proposed sources of 
                funding);
                    (D) contain estimates of overall debt (both 
                outstanding and anticipated to be issued); and
                    (E) contain cash flow and liquidity forecasts for 
                the Postal Service at such intervals as the Authority 
                may require.
            (3) The financial plan and budget shall include a statement 
        describing methods of estimations and significant assumptions.
            (4) The financial plan and budget shall include any other 
        provisions and shall meet such other criteria as the Authority 
        considers appropriate to meet the purposes of this title, 
        including provisions for--
                    (A) changes in personnel policies and levels for 
                each component of the Postal Service; and
                    (B) management initiatives to promote productivity, 
                improvement in the delivery of services, or cost 
                savings.
    (c) Requirements To Promote Financial Stability.--
            (1) In general.--The requirements to promote the financial 
        stability of the Postal Service applicable to the financial 
        plan and budget for a fiscal year are as follows:
                    (A) In each fiscal year (following the first full 
                fiscal year) in a control period, budgeted expenditures 
                of the Postal Service for the fiscal year involved may 
                not exceed budgeted revenues of the Postal Service for 
                the fiscal year involved.
                    (B) In each fiscal year in a control period, the 
                Postal Service shall make continuous, substantial 
                progress towards long-term fiscal solvency and shall 
                have substantially greater net income than in the 
                previous fiscal year.
                    (C) The Postal Service shall provide for the 
                orderly liquidation of any supplementary debt under 
                section 222.
                    (D) The financial plan and budget shall assure the 
                continuing long-term financial stability 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.
            (2) Application of sound budgetary practices.--In meeting 
        the requirement described in paragraph (1) with respect to a 
        financial plan and budget for a fiscal year, the Postal Service 
        shall apply sound budgetary practices, including reducing costs 
        and other expenditures, improving productivity, increasing 
        revenues, or a combination of such practices.
            (3) Assumptions based on current law.--In meeting the 
        requirements described in paragraph (1) with respect to a 
        financial plan and budget for a fiscal year, the Postal Service 
        shall base estimates of revenues and expenditures on Federal 
        law as in effect at the time of the preparation of such 
        financial plan and budget.

SEC. 222. SUPPLEMENTARY BORROWING AUTHORITY DURING A CONTROL PERIOD.

    (a) In General.--Upon the commencement of a 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) of title 
39, United States Code, 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 $10,000,000,000. The 
authorization to issue obligations under this section shall extend for 
a period of not more than 10 years beginning on the date of 
commencement of a control period, as described in section 202(b). At 
the end of such a 10-year period, the Postal Service shall dispose of 
real property of the Postal Service generating sufficient proceeds to 
repay any outstanding obligation incurred under this subsection in its 
entirety.
    (b) Exclusion.--The last sentence of section 2005(a)(1) of title 
39, United States Code, shall not apply with respect to any amounts 
borrowed or obligations issued or sold under authority of this section 
(which, but for subsection (a), would not otherwise have been 
allowable).
    (c) Deposit.--Any amounts received under this section shall be 
deposited in the Postal Service Fund.
    (d) Collateral.--For the purposes of funds acquired under 
subsection (a), the Postal Service shall provide an appropriate level 
of collateral in the form of pledged Postal Service property assets. 
For each fiscal year in which there remain funds made available to the 
Postal Service under subsection (a), the Postal Service shall dispose 
of real property equal to an amount that is at least 10 percent of the 
total funds obligated by the Postal Service under subsection (a), and 
the proceeds of such disposal shall be used to repay any outstanding 
obligation made by the Postal Service under subsection (a) in its 
entirety.

SEC. 223. PROCESS FOR SUBMISSION AND APPROVAL OF FINANCIAL PLAN AND 
              BUDGET.

    (a) In General.--For each fiscal year for which the Postal Service 
is in a control period, the Postmaster General shall submit to the 
Authority--
            (1) by February 1 before the start of such fiscal year, a 
        preliminary financial plan and budget under section 221 for 
        such fiscal year; and
            (2) by August 1 before the start of such fiscal year, a 
        final financial plan and budget under section 221 for such 
        fiscal year.
    (b) Review by Authority.--Upon receipt of a financial plan and 
budget under subsection (a) (whether preliminary or final), 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 under this subtitle.
    (c) Approval of Postmaster General's Financial Plan and Budget.--
            (1) In general.--If the Authority determines that the final 
        financial plan and budget for the fiscal year submitted by the 
        Postmaster General under subsection (a) meets the requirements 
        of section 221--
                    (A) the Authority shall approve the financial plan 
                and budget and shall provide the Postmaster General, 
                the President, and Congress with a notice certifying 
                its approval; and
                    (B) the Postmaster General shall promptly submit 
                the annual budget program to the Office of Management 
                and Budget pursuant to section 2009 of title 39, United 
                States Code.
            (2) Deemed approval after 30 days.--
                    (A) In general.--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 
                (d) 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, and 
                Congress with the notice certifying approval under 
                paragraph (1)(A).
                    (B) Explanation of failure to respond.--If 
                subparagraph (A) applies with respect to a financial 
                plan and budget, the Authority shall provide the 
                Postmaster General, the President and Congress with an 
                explanation for its failure to provide the notice 
                certifying approval or the statement of disapproval 
                during the 30-day period described in such 
                subparagraph.
    (d) Disapproval of Postmaster General's Budget.--If the Authority 
determines that the final financial plan and budget for the fiscal year 
submitted by the Postmaster General under subsection (a) does not meet 
the requirements applicable under section 221, the Authority shall 
disapprove the financial plan and budget, and shall provide the 
Postmaster General, the President, and Congress with a statement 
containing--
            (1) the reasons for such disapproval;
            (2) the amount of any shortfall in the budget or financial 
        plan; and
            (3) any recommendations for revisions to the budget the 
        Authority considers appropriate to ensure that the budget is 
        consistent with the financial plan and budget.
    (e) Authority Review of Postmaster General's Revised Final 
Financial Plan and Budget.--
            (1) Submission of postmaster general's revised final 
        financial plan and budget.--Not later than 15 days after 
        receiving the statement from the Authority under subsection 
        (d), the Postmaster General shall promptly adopt a revised 
        final financial plan and budget for the fiscal year which 
        addresses the reasons for the Authority's disapproval cited in 
        the statement, and shall submit such financial plan and budget 
        to the Authority.
            (2) Approval of postmaster general's revised final 
        financial plan and budget.--If, after reviewing the revised 
        final financial plan and budget for a fiscal year submitted by 
        the Postmaster General under paragraph (1) in accordance with 
        the procedures described in this section, the Authority 
        determines that the revised final financial plan and budget 
        meets the requirements applicable under section 221--
                    (A) the Authority shall approve the financial plan 
                and budget and shall provide the Postmaster General, 
                the President, and Congress with a notice certifying 
                its approval; and
                    (B) the Postmaster General shall promptly submit 
                the annual budget program to the Office of Management 
                and Budget pursuant to section 2009 of title 39, United 
                States Code.
            (3) Disapproval of postmaster general's revised final 
        financial plan and budget.--
                    (A) In general.--If, after reviewing the revised 
                final financial plan and budget for a fiscal year 
                submitted by the Postmaster General under paragraph (1) 
                in accordance with the procedures described in this 
                subsection, the Authority determines that the revised 
                final financial plan and budget does not meet the 
                applicable requirements under section 221, the 
                Authority shall--
                            (i) disapprove the financial plan and 
                        budget;
                            (ii) 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
                            (iii) approve and recommend a financial 
                        plan and budget for the Postal Service which 
                        meets the applicable requirements under section 
                        221, and submit such financial plan and budget 
                        to the Postmaster General, the President, and 
                        Congress.
                    (B) Submission to omb.--Upon receipt of the 
                recommended financial plan and budget under 
                subparagraph (A)(iii), the Postmaster General shall 
                promptly submit the recommended annual budget program 
                to the Office of Management and Budget pursuant to 
                section 2009 of title 39, United States Code.
            (4) Deemed approval after 15 days.--
                    (A) In general.--If the Authority has not provided 
                the Postmaster General, the President, and Congress 
                with a notice certifying approval under paragraph 
                (2)(A) or a statement of disapproval under paragraph 
                (3) before the expiration of the 15-day period which 
                begins on the date the Authority receives the revised 
                final financial plan and budget submitted by the 
                Postmaster General under paragraph (1), the Authority 
                shall be deemed to have approved the revised final 
                financial plan and budget and to have provided the 
                Postmaster General, the President, and Congress with 
                the notice certifying approval described in paragraph 
                (2)(A).
                    (B) Explanation of failure to respond.--If 
                subparagraph (A) applies with respect to a financial 
                plan and budget, the Authority shall provide the 
                Postmaster General, the President and Congress with an 
                explanation for its failure to provide the notice 
                certifying approval or the statement of disapproval 
                during the 15-day period described in such 
                subparagraph.
    (f) Deadline for Transmission of Financial Plan and Budget by 
Authority.--Notwithstanding any other provision of this section, not 
later than September 30th before each fiscal year which is in a control 
period, the Authority shall--
            (1) provide Congress with a notice certifying its approval 
        of the Postmaster General's initial financial plan and budget 
        for the fiscal year under subsection (c);
            (2) provide Congress with a notice certifying its approval 
        of the Postmaster General's revised final financial plan and 
        budget for the fiscal year under subsection (e)(2); or
            (3) submit to Congress an approved and recommended 
        financial plan and budget of the Authority for the Postal 
        Service for the fiscal year under subsection (e)(3)(A)(iii).
    (g) Revisions to Financial Plan and Budget.--
            (1) Permitting postmaster general to submit revisions.--The 
        Postmaster General may submit proposed revisions to the 
        financial plan and budget for a control period to the Authority 
        at any time during the year.
            (2) Process for review, approval, disapproval, and 
        postmaster general action.--Except as provided in paragraph 
        (3), the procedures described in subsections (b), (c), (d), and 
        (e) 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.
            (3) Exception for revisions not affecting spending.--To the 
        extent that a proposed revision to a financial plan and budget 
        adopted by the Postmaster General pursuant to this subsection 
        does not increase the amount of spending with respect to any 
        account of the Postal Service, the revision shall become 
        effective upon the Authority's approval of such revision.

SEC. 224. RESPONSIBILITIES OF THE AUTHORITY.

    (a) In General.--The Authority shall direct the exercise of the 
powers of the Postal Service, including--
            (1) determining its overall strategies (both long-term and 
        short-term);
            (2) determining its organizational structure, particularly 
        for senior management at the level of vice president and 
        higher;
            (3) hiring, monitoring, compensating, and, when necessary, 
        replacing senior management at the level of vice president and 
        higher, as well as ensuring adequate succession planning for 
        these positions;
            (4) approving major policies, particularly those that have 
        an important effect on the Postal Service's financial position 
        and the provision of universal postal service;
            (5) approving corporate budgets, financial and capital 
        plans, operational and service performance standards and 
        targets, human resources strategies, collective bargaining 
        strategies, negotiation parameters, and collective bargaining 
        agreements, and the compensation structure for nonbargaining 
        employees;
            (6) approving substantial capital projects and any 
        substantial disposition of capital assets, such as surplus 
        property;
            (7) approving changes in rates and classifications, new 
        products and services, policy regarding other substantial 
        matters before the Postal Regulatory Commission, and any 
        appeals of its decisions or orders to the Federal courts;
            (8) approving the Postal Service Annual Report, Annual 
        Comprehensive Statement, and strategic plans, performance 
        plans, and performance program reports under chapter 28 of 
        title 39, United States Code;
            (9) formulating and communicating organizational policy and 
        positions on legislative and other public policy matters to 
        Congress and the public;
            (10) ensuring organizational responsiveness to oversight by 
        Congress, the Postal Regulatory Commission, the Treasury of the 
        United States, and other audit entities;
            (11) ensuring adequate internal controls and selecting, 
        monitoring, and compensating an independent public accounting 
        firm to conduct an annual audit of the Postal Service; and
            (12) carrying out any responsibility, not otherwise listed 
        in this subsection, that was the responsibility of the Board of 
        Governors at any time during the 5-year period ending on the 
        date of the enactment of this Act.
    (b) Review of Postal Service Proposals.--
            (1) Submission of postal service proposals to the 
        authority.--During a control period, the Postmaster General 
        shall submit to the Authority any proposal that has a 
        substantial effect on any item listed in subsection (a).
            (2) Prompt review by authority.--Upon receipt of a proposal 
        from the Postmaster General under paragraph (1), the Authority 
        shall promptly review the proposal to determine whether it is 
        consistent with the applicable financial plan and budget 
        approved under this title.
            (3) Actions by authority.--
                    (A) Approval.--If the Authority determines that a 
                proposal is consistent with the applicable financial 
                plan and budget, the Authority shall notify the 
                Postmaster General that it approves the proposal.
                    (B) Finding of inconsistency.--If the Authority 
                determines that a proposal is significantly 
                inconsistent with the applicable financial plan and 
                budget, the Authority shall--
                            (i) notify the Postmaster General of its 
                        finding;
                            (ii) provide the Postmaster General with an 
                        explanation of the reasons for its finding; and
                            (iii) to the extent the Authority considers 
                        appropriate, provide the Postmaster General 
                        with recommendations for modifications to the 
                        proposal.
            (4) Deemed approval.--If the Authority does not notify the 
        Postmaster General that it approves or disapproves a proposal 
        submitted under this subsection during the 7-day period which 
        begins on the date the Postmaster General submits the proposal 
        to the Authority, the Authority shall be deemed to have 
        approved the proposal in accordance with paragraph (3)(A). At 
        the option of the Authority, the previous sentence shall be 
        applied as if the reference in such sentence to ``7-day 
        period'' were a reference to ``14-day period'' if, during the 
        7-day period referred to in the preceding sentence, the 
        Authority so notifies the Postmaster General.
    (c) Effect of Approved Financial Plan and Budget on Contracts and 
Leases.--
            (1) Mandatory prior approval for certain contracts and 
        leases.--
                    (A) In general.--In the case of a contract or lease 
                described in subparagraph (B) which is proposed to be 
                entered into, renewed, modified, or extended by the 
                Postal Service during a control period, the Postmaster 
                General (or the appropriate officer or agent of the 
                Postal Service) shall submit the proposed contract or 
                lease to the Authority. The Authority shall review each 
                contract or lease submitted under this subparagraph, 
                and the Postmaster General (or the appropriate officer 
                or agent of the Postal Service) may not enter into the 
                contract or lease unless the Authority determines that 
                the proposed contract or lease is consistent with the 
                financial plan and budget for the fiscal year.
                    (B) Contracts and leases described.--A contract or 
                lease described in this subparagraph is--
                            (i) a labor contract entered into through 
                        collective bargaining; or
                            (ii) such other type of contract or lease 
                        as the Authority may specify for purposes of 
                        this subparagraph.
            (2) Authority to review other contracts after execution.--
                    (A) In general.--In addition to the prior approval 
                of certain contracts and leases, the Postal Service 
                shall submit to the Authority--
                            (i) any Level-Two Post Career Executive 
                        Service employee contract that is in effect 
                        during a control period; and
                            (ii) any collective bargaining agreement 
                        entered into by the Postal Service that is in 
                        effect during a control period.
                Any such contract or agreement shall be submitted to 
                the Authority upon the commencement of a control period 
                and at such other times as the Authority may require.
                    (B) Review by authority.--The Authority shall 
                review each contract submitted under subparagraph (A) 
                to determine if the contract is consistent with the 
                financial plan and budget for the fiscal year. If the 
                Authority determines that the contract is not 
                consistent with the financial plan and budget, the 
                Authority shall take such actions as are within the 
                Authority's powers to revise the contract.

SEC. 225. EFFECT OF FINDING NONCOMPLIANCE WITH FINANCIAL PLAN AND 
              BUDGET.

    (a) Submission of Reports.--Not later than 30 days after the 
expiration of each quarter of each fiscal year beginning in a control 
period, the Postmaster General shall submit reports to the Authority 
describing the actual revenues obtained and expenditures made by the 
Postal Service during the quarter with its cash flows during the 
quarter, and comparing such actual revenues, expenditures, and cash 
flows with the most recent projections for these items.
    (b) Additional Information.--If the Authority determines, based on 
reports submitted by the Postmaster General under subsection (a), 
independent audits, or such other information as the Authority may 
obtain, that the revenues or expenditures of the Postal Service during 
a control period are not consistent with the financial plan and budget 
for the year, the Authority shall require the Postmaster General to 
provide such additional information as the Authority determines to be 
necessary to explain the inconsistency.
    (c) Certification of Variance.--
            (1) In general.--After requiring the Postmaster General to 
        provide additional information under subsection (b), the 
        Authority shall certify to the Postmaster General, the 
        President, the Secretary of the Treasury, and Congress that the 
        Postal Service is at variance with the financial plan and 
        budget unless--
                    (A) the additional information provides an 
                explanation for the inconsistency which the Authority 
                finds reasonable and appropriate; or
                    (B)(i) the Postal Service adopts or implements 
                remedial action (including revising the financial plan 
                and budget pursuant to section 223(g)) to correct the 
                inconsistency which the Authority finds reasonable and 
                appropriate, taking into account the terms of the 
                financial plan and budget; and
                    (ii) the Postmaster General agrees to submit the 
                reports described in subsection (a) on a monthly basis 
                for such period as the Authority may require.
            (2) Special rule for inconsistencies attributable to acts 
        of congress.--
                    (A) Determination by authority.--If the Authority 
                determines that the revenues or expenditures of the 
                Postal Service during a control period are not 
                consistent with the financial plan and budget for the 
                year as approved by the Authority under section 223 as 
                a result of the terms and conditions of any law enacted 
                by Congress which affects the Postal Service, the 
                Authority shall so notify the Postmaster General.
                    (B) Certification.--In the case of an inconsistency 
                described in subparagraph (A), the Authority shall 
                certify to the Postmaster General, the President, the 
                Secretary of the Treasury, and Congress that the Postal 
                Service is at variance with the financial plan and 
                budget unless the Postal Service adopts or implements 
                remedial action (including revising the financial plan 
                and budget pursuant to section 202(e)) to correct the 
                inconsistency which the Authority finds reasonable and 
                appropriate, taking into account the terms of the 
                financial plan and budget.
    (d) Effect of Certification.--If the Authority certifies to the 
Secretary of the Treasury that a variance exists, the Authority or the 
Secretary may withhold access by the Postal Service to additional 
supplementary debt authorized by this title.

SEC. 226. RECOMMENDATIONS REGARDING FINANCIAL STABILITY, ETC.

    (a) In General.--The Authority may at any time submit 
recommendations to the Postmaster General, the President, and Congress 
on actions the Postal Service or any other entity of the Federal 
Government should take to ensure compliance by the Postal Service with 
a financial plan and budget or to otherwise promote the financial 
stability, management responsibility, and service delivery efficiency 
of the Postal Service, including recommendations relating to--
            (1) the management of the Postal Service's financial 
        affairs, including cash forecasting, information technology, 
        placing controls on expenditures for personnel, reducing 
        benefit costs, reforming procurement practices, and placing 
        other controls on expenditures;
            (2) the relationship between the Postal Service and other 
        entities of the Federal Government;
            (3) the structural relationship of subdivisions within the 
        Postal Service;
            (4) the modification of existing revenue structures, or the 
        establishment of additional revenue structures;
            (5) the establishment of alternatives for meeting 
        obligations to pay for the pensions and retirement benefits of 
        current and future Postal Service retirees;
            (6) modifications of services which are the responsibility 
        of and are delivered by the Postal Service;
            (7) modifications of the types of services which are 
        delivered by entities other than the Postal Service under 
        alternative service delivery mechanisms;
            (8) the effects of Federal Government laws and court orders 
        on the operations of the Postal Service;
            (9) the increased use of a personnel system for employees 
        of the Postal Service which is based upon employee performance 
        standards; and
            (10) the improvement of personnel training and proficiency, 
        the adjustment of staffing levels, and the improvement of 
        training and performance of management and supervisory 
        personnel.
    (b) Response to Recommendations for Actions Within Authority of 
Postal Service.--
            (1) In general.--In the case of any recommendations 
        submitted under subsection (a) during a control period which 
        are within the authority of the Postal Service to adopt, not 
        later than 90 days after receiving the recommendations, the 
        Postmaster General shall submit a statement to the Authority, 
        the President, and Congress which provides notice as to whether 
        the Postal Service will adopt the recommendations.
            (2) Implementation plan required for adopted 
        recommendations.--If the Postmaster General notifies the 
        Authority and Congress under paragraph (1) that the Postal 
        Service will adopt any of the recommendations submitted under 
        subsection (a), the Postmaster General shall include in the 
        statement a written plan to implement the recommendation which 
        includes--
                    (A) specific performance measures to determine the 
                extent to which the Postal Service has adopted the 
                recommendation; and
                    (B) a schedule for auditing the Postal Service's 
                compliance with the plan.
            (3) Explanations required for recommendations not 
        adopted.--If the Postmaster General notifies the Authority, the 
        President, and Congress under paragraph (1) that the Postal 
        Service will not adopt any recommendation submitted under 
        subsection (a) which the Postal Service has authority to adopt, 
        the Postmaster General shall include in the statement 
        explanations for the rejection of the recommendations.
    (c) Implementation of Rejected Recommendations by Authority.--
            (1) In general.--If the Postmaster General notifies the 
        Authority, the President, and Congress under subsection (b)(1) 
        that the Postal Service will not adopt any recommendation 
        submitted under subsection (a) which the Postal Service has 
        authority to adopt, the Authority may by a majority vote of its 
        members take such action concerning the recommendation as it 
        deems appropriate, after consulting with the Committee on 
        Oversight and Government Reform of the House of Representatives 
        and the Committee on Homeland Security and Governmental Affairs 
        of the Senate.
            (2) Effective date.--This subsection shall apply with 
        respect to recommendations of the Authority made after the 
        expiration of the 6-month period which begins on the date of 
        the commencement of a control period.

SEC. 227. SPECIAL RULES FOR FISCAL YEAR IN WHICH CONTROL PERIOD 
              COMMENCES.

    (a) Adoption of Transition Budget.--Notwithstanding any provision 
of section 223 to the contrary, in the case of a fiscal year in which a 
control period commences, the following rules shall apply:
            (1) Not later than 45 days after the appointment of its 
        members, the Authority shall review the proposed Integrated 
        Financial Plan for the Postal Service for such fiscal year and 
        shall submit any recommendations for modifications to such plan 
        to promote the financial stability of the Postal Service to the 
        Postmaster General, the President, and Congress.
            (2) Not later than 15 days after receiving the 
        recommendations of the Authority submitted under paragraph (1), 
        the Postmaster General shall promptly adopt a revised budget 
        for the fiscal year (in this section referred to as the 
        ``transition budget''), and shall submit the transition budget 
        to the Authority, the President, and Congress.
            (3) Not later than 15 days after receiving the transition 
        budget from the Postmaster General under paragraph (2), the 
        Authority shall submit a report to the Postmaster General, the 
        President, and Congress analyzing the budget (taking into 
        account any items or provisions disapproved by the Postmaster 
        General) and shall include in the report such recommendations 
        for revisions to the transition budget as the Authority 
        considers appropriate to promote the financial stability of the 
        Postal Service during the fiscal year.
    (b) Financial Plan and Budget.--
            (1) Deadline for submission.--For purposes of section 223, 
        the Postmaster General shall submit the financial plan and 
        budget for the applicable fiscal year as soon as practicable 
        after the commencement of a control period (in accordance with 
        guidelines established by the Authority).
            (2) Adoption by postmaster general.--In accordance with the 
        procedures applicable under section 223 (including procedures 
        providing for review by the Authority) the Postmaster General 
        shall adopt the financial plan and budget for the applicable 
        fiscal year (including the transition budget incorporated in 
        the financial plan and budget).
            (3) Transition budget as temporary financial plan and 
        budget.--Until the approval of the financial plan and budget 
        for the applicable fiscal year by the Authority under this 
        subsection, the transition budget established under subsection 
        (a) shall serve as the financial plan and budget adopted under 
        this subtitle for purposes of this Act (and any provision of 
        law amended by this Act) for the applicable fiscal year.

SEC. 228. ASSISTANCE IN ACHIEVING FINANCIAL STABILITY, ETC.

    In addition to any other actions described in this title, the 
Authority may undertake cooperative efforts to assist the Postal 
Service in achieving financial stability and management efficiency, 
including--
            (1) assisting the Postal Service in avoiding defaults, 
        eliminating and liquidating deficits, maintaining sound 
        budgetary practices, and avoiding interruptions in the delivery 
        of services;
            (2) assisting the Postal Service in improving the delivery 
        of services, the training and effectiveness of personnel of the 
        Postal Service, and the efficiency of management and 
        supervision; and
            (3) making recommendations to the President for 
        transmission to Congress on changes to this Act or other 
        Federal laws, or other actions of the Federal Government, which 
        would assist the Postal Service in complying with an approved 
        financial plan and budget under subtitle B.

SEC. 229. OBTAINING REPORTS.

    The Authority may require the Postmaster General, the Chief 
Financial Officer of the Postal Service, and the Inspector General of 
the Postal Service, to prepare and submit such reports as the Authority 
considers appropriate to assist it in carrying out its responsibilities 
under this title, including submitting copies of any reports regarding 
revenues, expenditures, budgets, costs, plans, operations, estimates, 
and other financial or budgetary matters of the Postal Service.

SEC. 230. REPORTS AND COMMENTS.

    (a) Annual Reports to Congress.--Not later than 30 days after the 
last day of each fiscal year which is a control year, the Authority 
shall submit a report to Congress describing--
            (1) the progress made by the Postal Service in meeting the 
        objectives of this title during the fiscal year;
            (2) the assistance provided by the Authority to the Postal 
        Service in meeting the purposes of this title for the fiscal 
        year; and
            (3) any other activities of the Authority during the fiscal 
        year.
    (b) Review and Analysis of Performance and Financial Accountability 
Reports.--The Authority shall review each yearly report prepared and 
submitted by the Postmaster General to the Postal Regulatory Commission 
and Congress and shall submit a report to Congress analyzing the 
completeness and accuracy of such reports.
    (c) Comments Regarding Activities of Postal Service.--At any time 
during a control period, the Authority may submit a report to Congress 
describing any action taken by the Postal Service (or any failure to 
act by the Postal Service) which the Authority determines will 
adversely affect the Postal Service's ability to comply with an 
approved financial plan and budget under subtitle B or will otherwise 
have a significant adverse impact on the best interests of the Postal 
Service.
    (d) Reports on Effect of Federal Laws on the Postal Service.--At 
any time during any year, the Authority may submit a report to the 
Postmaster General, the President, and Congress on the effect of laws 
enacted by Congress on the financial plan and budget for the year and 
on the financial stability and management efficiency of the Postal 
Service in general.
    (e) Making Reports Publicly Available.--The Authority shall make 
any report submitted under this section available to the public, except 
to the extent that the Authority determines that the report contains 
confidential material.

              Subtitle D--Termination of a Control Period

SEC. 231. TERMINATION OF CONTROL PERIOD, ETC.

    (a) In General.--After the completion of the requirements for the 
termination of a control period described in section 202(b)(4), the 
Authority shall submit a recommendation to Congress requesting the 
termination of such control period, the dissolution of the Authority, 
and the reinstatement to the Board of Governors (and the individual 
Governors) of the Postal Service of the authorities and 
responsibilities referred to in section 202(b)(2)(A).
    (b) Congressional Approval.--
            (1) In general.--A control period shall not be terminated 
        unless a joint resolution approving of the recommendation in 
        subsection (a) is enacted, in accordance with section 232, 
        before the earlier of--
                    (A) the end of the 30-day period beginning on the 
                date on which the Authority transmits the 
                recommendation to Congress under subsection (a); or
                    (B) the adjournment of the Congress sine die for 
                the session during which such recommendation is 
                transmitted.
            (2) Days of session.--For purposes of paragraph (1) and 
        subsections (a) and (c) of section 232, the days on which 
        either House of Congress is not in session because of an 
        adjournment of more than 3 days to a day certain shall be 
        excluded in the computation of a period.

SEC. 232. CONGRESSIONAL CONSIDERATION OF RECOMMENDATION.

    (a) Terms of the Resolution.--For purposes of this subtitle, the 
term ``joint resolution'' means only a joint resolution which is 
introduced within the 10-day period beginning on the date on which the 
recommendation referred to in section 231(a) is received by Congress--
            (1) the matter after the resolving clause of which is as 
        follows: ``That Congress approves the recommendation of the 
        Postal Service Financial Responsibility and Management 
        Assistance Authority, submitted by such Authority on __.'', the 
        blank space being filled in with the appropriate date;
            (2) the title of which is as follows: ``Joint resolution 
        approving the recommendation of Postal Service Financial 
        Responsibility and Management Assistance Authority.''; and
            (3) which does not have a preamble.
    (b) Referral.--A resolution described in subsection (a) that is 
introduced in the House of Representatives or the Senate shall be 
referred to the appropriate committees of the House of Representatives 
or the Senate, respectively.
    (c) Discharge.--If the committee to which a resolution described in 
subsection (a) is referred has not reported such resolution (or an 
identical resolution) by the end of the 20-day period beginning on the 
date on which the Authority transmits its recommendation to Congress 
under section 231(a) such committee shall, at the end of such period, 
be discharged from further consideration of such resolution, and such 
resolution shall be placed on the appropriate calendar of the House 
involved.
    (d) Consideration.--
            (1) In general.--On or after the third day after the date 
        on which the committee to which such a resolution is referred 
        has reported, or has been discharged (under subsection (c)) 
        from further consideration of, such a resolution, it is in 
        order (even though a previous motion to the same effect has 
        been disagreed to) for any Member of the respective House to 
        move to proceed to the consideration of the resolution. A 
        Member may make the motion only on the day after the calendar 
        day on which the Member announces to the House concerned the 
        Member's intention to make the motion, except that, in the case 
        of the House of Representatives, the motion may be made without 
        such prior announcement if the motion is made by direction of 
        the committee to which the resolution was referred. All points 
        of order against the resolution (and against consideration of 
        the resolution) are waived. The motion is highly privileged in 
        the House of Representatives and is privileged in the Senate 
        and is not debatable. The motion is not subject to amendment, 
        or to a motion to postpone, or to a motion to proceed to the 
        consideration of other business. A motion to reconsider the 
        vote by which the motion is agreed to or disagreed to shall not 
        be in order. If a motion to proceed to the consideration of the 
        resolution is agreed to, the respective House shall immediately 
        proceed to consideration of the joint resolution without 
        intervening motion, order, or other business, and the 
        resolution shall remain the unfinished business of the 
        respective House until disposed of.
            (2) Debate.--Debate on the resolution, and on all debatable 
        motions and appeals in connection therewith, shall be limited 
        to not more than 2 hours, which shall be divided equally 
        between those favoring and those opposing the resolution. An 
        amendment to the resolution is not in order. A motion further 
        to limit debate is in order and not debatable. A motion to 
        postpone, or a motion to proceed to the consideration of other 
        business, or a motion to recommit the resolution is not in 
        order. A motion to reconsider the vote by which the resolution 
        is agreed to or disagreed to is not in order.
            (3) Vote on final passage.--Immediately following the 
        conclusion of the debate on a resolution described in 
        subsection (a) and a single quorum call at the conclusion of 
        the debate if requested in accordance with the rules of the 
        appropriate House, the vote on final passage of the resolution 
        shall occur.
            (4) Appeals.--Appeals from the decisions of the Chair 
        relating to the application of the rules of the Senate or the 
        House of Representatives, as the case may be, to the procedure 
        relating to a resolution described in subsection (a) shall be 
        decided without debate.
    (e) Consideration by Other House.--
            (1) In general.--If, before the passage by one House of a 
        resolution of that House described in subsection (a), that 
        House receives from the other House a resolution described in 
        subsection (a), then the following procedures shall apply:
                    (A) The resolution of the other House shall not be 
                referred to a committee and may not be considered in 
                the House receiving it except in the case of final 
                passage as provided in subparagraph (B)(ii).
                    (B) With respect to a resolution described in 
                subsection (a) of the House receiving the resolution--
                            (i) the procedure in that House shall be 
                        the same as if no resolution had been received 
                        from the other House; but
                            (ii) the vote on final passage shall be on 
                        the resolution of the other House.
            (2) Disposition of a resolution.--Upon disposition of the 
        resolution received from the other House, it shall no longer be 
        in order to consider the resolution that originated in the 
        receiving House.
    (f) Rules of the Senate and House.--This section is enacted by 
Congress--
            (1) as an exercise of the rulemaking power of the Senate 
        and House of Representatives, respectively, and as such it is 
        deemed a part of the rules of each House, respectively, but 
        applicable only with respect to the procedure to be followed in 
        that House in the case of a resolution described in subsection 
        (a), and it supersedes other rules only to the extent that it 
        is inconsistent with such rules; and
            (2) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.

                  TITLE III--POSTAL SERVICE WORKFORCE

                     Subtitle A--General Provisions

SEC. 301. MODIFICATIONS RELATING TO DETERMINATION OF PAY COMPARABILITY.

    (a) Postal Policy.--The first sentence of section 101(c) is 
amended--
            (1) by inserting ``total'' before ``rates and types of 
        compensation''; and
            (2) by inserting ``entire'' before ``private sector''.
    (b) Employment Policy.--The second sentence of section 1003(a) is 
amended--
            (1) by inserting ``total'' before ``compensation and 
        benefits'' each place it appears; and
            (2) by inserting ``entire'' before ``private sector''.
    (c) Considerations.--For purposes of the amendments made by this 
section, any determination of ``total rates and types of compensation'' 
or ``total compensation and benefits'' shall, at a minimum, take into 
account pay, health benefits, retirement benefits, life insurance 
benefits, leave, holidays, and continuity and stability of employment.

SEC. 302. LIMITATION ON POSTAL CONTRIBUTIONS UNDER FEGLI AND FEHBP.

    Section 1003 is amended by adding at the end the following:
    ``(e)(1) At least 1 month before the start of each fiscal year as 
described in paragraph (2), the Postmaster General shall transmit to 
the Postal Regulatory Commission certification (together with such 
supporting documentation as the Postal Regulatory Commission may 
require) that contributions of the Postal Service for such fiscal year 
will not exceed--
            ``(A) in the case of life insurance under chapter 87 of 
        title 5, the Government contributions determined under section 
        8708 of such title; and
            ``(B) in the case of health insurance under chapter 89 of 
        title 5, the Government contributions determined under 8906 of 
        such title.
    ``(2) This subsection applies with respect to--
            ``(A) except as provided in subparagraph (B), each fiscal 
        year beginning after September 30, 2013; and
            ``(B) in the case of officers and employees of the Postal 
        Service covered by a collective bargaining agreement which is 
        in effect on the date of the enactment of this subsection--
                    ``(i) each fiscal year beginning after the 
                expiration date of such agreement, including
                    ``(ii) for the fiscal year in which such expiration 
                date occurs, any portion of such fiscal year remaining 
                after such expiration date.
    ``(3)(A) If, after reasonable notice and opportunity for hearing is 
afforded to the Postal Service, the Postal Regulatory Commission finds 
that the contributions of the Postal Service for a fiscal year will 
exceed or are exceeding the limitation specified in subparagraph (A) or 
(B) of paragraph (1), the Commission shall order that the Postal 
Service take such action as the Commission considers necessary to 
achieve full and immediate compliance with the applicable limitation or 
limitations.
    ``(B) Sections 3663 and 3664 shall apply with respect to any order 
issued by the Postal Regulatory Commission under subparagraph (A).
    ``(C) Nothing in this paragraph shall be considered to permit the 
issuance of an order requiring reduction of contributions below the 
level specified by the provision of law cited in subparagraph (A) or 
(B) of paragraph (1), as applicable.''.

SEC. 303. REPEAL OF PROVISION RELATING TO OVERALL VALUE OF FRINGE 
              BENEFITS.

    The last sentence of section 1005(f) is repealed.

SEC. 304. APPLICABILITY OF REDUCTION-IN-FORCE PROCEDURES.

    Section 1206 is amended by adding at the end the following:
    ``(d) Collective-bargaining agreements between the Postal Service 
and bargaining representatives recognized under section 1203, ratified 
after the date of enactment of this subsection, shall contain no 
provision restricting the applicability of reduction-in-force 
procedures under title 5 with respect to members of the applicable 
bargaining unit.
    ``(e) Any collective-bargaining agreement between the Postal 
Service and the bargaining representatives recognized under section 
1203 ratified before the date of enactment of this Act that contain any 
provision violating subsection (d) shall be renegotiated with a new 
collective-bargaining agreement to be ratified or imposed through an 
arbitration decision under section 1207 within 9 months after such date 
of enactment.
    ``(f)(1) If a collective-bargaining agreement between the Postal 
Service and bargaining representatives recognized under section 1203, 
ratified after the date of enactment of this subsection, includes 
reduction-in-force procedures which can be applied in lieu of 
reduction-in-force procedures under title 5, the Postal Service may, in 
its discretion, apply with respect to members of the applicable 
bargaining unit--
            ``(A) the alternative procedures (or, if 2 or more are 
        agreed to, 1 of the alternative procedures); or
            ``(B) the reduction-in-force procedures under title 5.
    ``(2) In no event may, if procedures for the resolution of a 
dispute or impasse arising in the negotiation of a collective-
bargaining agreement (whether through binding arbitration or otherwise) 
are invoked under this chapter, the award or other resolution reached 
under such procedures provide for the elimination of, or the 
substitution of any alternative procedures in lieu of, reduction-in-
force procedures under title 5.''.

SEC. 305. MODIFICATIONS RELATING TO COLLECTIVE BARGAINING.

    Section 1207 is amended by striking subsections (c) and (d) and 
inserting the following:
    ``(c)(1) If no agreement is reached within 30 days after the 
appointment of a mediator under subsection (b), or if the parties 
decide upon arbitration before the expiration of the 30-day period, an 
arbitration board shall be established consisting of 1 member selected 
by the Postal Service (from the list under paragraph (2)), 1 member 
selected by the bargaining representative of the employees (from the 
list under paragraph (2)), and the mediator appointed under subsection 
(b).
    ``(2) Upon receiving a request from either of the parties referred 
to in paragraph (1), the Director of the Federal Mediation and 
Conciliation Service shall provide a list of not less than 9 
individuals who are well qualified to serve as neutral arbitrators. 
Each person listed shall be an arbitrator of nationwide reputation and 
professional nature, a member of the National Academy of Arbitrators, 
and an individual whom the Director has determined to be willing and 
available to serve. If, within 7 days after the list is provided, 
either of the parties has not selected an individual from the list, the 
Director shall make the selection within 3 days.
    ``(3) The arbitration board shall give the parties a full and fair 
hearing, including an opportunity to present evidence in support of 
their claims, and an opportunity to present their case in person, by 
counsel, or by other representative as they may elect. The hearing 
shall be concluded no more than 40 days after the arbitration board is 
established.
    ``(4) No more than 7 days after the hearing is concluded, each 
party shall submit to the arbitration board 2 offer packages, each of 
which packages shall specify the terms of a proposed final agreement.
    ``(5) If no agreement is reached within 7 days after the last day 
date for the submission of an offer package under paragraph (4), each 
party shall submit to the arbitration board a single final offer 
package specifying the terms of a proposed final agreement.
    ``(6) No later than 3 days after the submission of the final offer 
packages under paragraph (5), the arbitration board shall select 1 of 
those packages as its tentative award, subject to paragraph (7).
    ``(7)(A) The arbitration board may not select a final offer package 
under paragraph (6) unless it satisfies each of the following:
            ``(i) The offer complies with the requirements of sections 
        101(c) and 1003(a).
            ``(ii) The offer takes into account the current financial 
        condition of the Postal Service.
            ``(iii) The offer takes into account the long-term 
        financial condition of the Postal Service.
    ``(B)(i) If the board unanimously determines, based on clear and 
convincing evidence presented during the hearing under paragraph (3), 
that neither final offer package satisfies the conditions set forth in 
subparagraph (A), the board shall by majority vote--
            ``(I) select the package that best meets such conditions; 
        and
            ``(II) modify the package so selected to the minimum extent 
        necessary to satisfy such conditions.
    ``(ii) If modification (as described in subparagraph (B)(i)(II)) is 
necessary, the board shall have an additional 7 days to render its 
tentative award under this subparagraph.
    ``(8) The parties may negotiate a substitute award to replace the 
tentative award selected under paragraph (6) or rendered under 
paragraph (7) (as the case may be). If no agreement on a substitute 
award is reached within 10 days after the date on which the tentative 
award is so selected or rendered, the tentative award shall become 
final.
    ``(9) The arbitration board shall review any substitute award 
negotiated under paragraph (8) to determine if it satisfies the 
conditions set forth in paragraph (7)(A). If the arbitration board, by 
a unanimous vote taken within 3 days after the date on which the 
agreement on the substitute award is reached under paragraph (8), 
determines that the substitute award does not satisfy such conditions, 
the tentative award shall become final. In the absence of a vote, as 
described in the preceding sentence, the substitute agreement shall 
become final.
    ``(10) If, under paragraph (5), neither party submits a final offer 
package by the last day allowable under such paragraph, the arbitration 
board shall develop and issue a final award no later than 20 days after 
such last day.
    ``(11) A final award or agreement under this subsection shall be 
conclusive and binding upon the parties.
    ``(12) Costs of the arbitration board and mediation shall be shared 
equally by the Postal Service and the bargaining representative.
    ``(d) In the case of a bargaining unit whose recognized collective-
bargaining representative does not have an agreement with the Postal 
Service, if the parties fail to reach agreement within 90 days after 
the commencement of collective bargaining, a mediator shall be 
appointed in accordance with the provisions of subsection (b), unless 
the parties have previously agreed to another procedure for a binding 
resolution of their differences. If the parties fail to reach agreement 
within 180 days after the commencement of collective bargaining, an 
arbitration board shall be established to provide conclusive and 
binding arbitration in accordance with the provisions of subsection 
(c).''.

SEC. 306. ONE-TIME TRANSFER OF NET SURPLUS POSTAL RETIREMENT 
              CONTRIBUTIONS.

    (a) Transfer Requirement.--Not later than 2 weeks after the date of 
enactment of this Act, there shall be appropriated to the Postal 
Service Fund, from the Postal Service Federal Employee Retirement 
System account within the Civil Service Retirement and Disability Fund, 
an amount equal to the absolute value of the amount computed as of 
September 30, 2010, under section 8423(b)(1)(B) of title 5, United 
States Code, less the sum of--
            (1) the Postal supplemental liability, calculated as of 
        September 30, 2010, under section 8348(h) of title 5, United 
        States Code; and
            (2) any contribution required by section 8423 of such title 
        that the Postal Service has not made during fiscal years 2011 
        or 2012, as determined by the Office of Personnel Management no 
        later than one week after the date of enactment of this Act
    (b) Limitations on Use.--The amount transferred to the Postal 
Service Fund under this section--
            (1) may be used for such purposes as the Postal Service 
        considers appropriate; except that
            (2) if any amounts so transferred remain in the Postal 
        Service Fund after September 30, 2015, such amounts shall be 
        used--
                    (A) first, to satisfy any supplemental liability 
                computed under section 8423(b)(1)(B) of title 5, United 
                States Code;
                    (B) second, to satisfy any supplemental liability 
                computed under section 8348(h) of title 5, United 
                States Code; and
                    (C) third, to satisfy any obligations of the Postal 
                Service under section 2005 of title 39, United States 
                Code.
    (c) Definitions.--For purposes of this section--
            (1) the term ``Civil Service Retirement and Disability 
        Fund'' refers to the fund under section 8348 of title 5, United 
        States Code; and
            (2) the term ``Postal Service Fund'' refers to the fund 
        under section 2003 of title 39, United States Code.
    (d) Sense of Congress.--It is the sense of Congress that the Postal 
Service should use any funds under subsection (b)(1) for separation 
incentives for Postal employees.

        Subtitle B--Postal Service Workers' Compensation Reform

SEC. 311. POSTAL SERVICE WORKERS' COMPENSATION REFORM.

    (a) In General.--Effective 12 months after the triggering date of 
this section (as defined in subsection (e)(2)), section 1005 is amended 
by striking subsection (c) and inserting the following:
    ``(c)(1) For purposes of this subsection--
            ``(A) the term `postal employee' means an officer or 
        employee of the Postal Service or the former Post Office 
        Department;
            ``(B) the term `retirement age' has the meaning given such 
        term under section 216(l)(1) of the Social Security Act; and
            ``(C) the term `appropriate committees of Congress' means--
                    ``(i) the Committee on Oversight and Government 
                Reform of the House of Representatives; and
                    ``(ii) the Committee on Homeland Security and 
                Governmental Affairs of the Senate.
    ``(2) The Postal Service shall design and administer a program for 
the payment of benefits for the disability or death of an individual 
resulting from personal injury sustained while in the performance of 
such individual's duties as a postal employee.
    ``(3) The program under this subsection--
            ``(A) shall be designed by the Postal Service in 
        consultation with appropriate employee representatives;
            ``(B) shall not provide for any amount payable to a 
        disabled postal employee to be augmented on the basis of number 
        of dependents; and
            ``(C) shall include provisions for automatic transition, 
        upon attainment of retirement age, to benefits involving, 
        coordinated with, or otherwise determined by reference to 
        retirement benefits.''.
    (b) Recommendations.--Not later than 6 months after the triggering 
date--
            (1) the Office of Personnel Management shall submit to the 
        appropriate committees of Congress recommendations for any 
        legislation or administrative actions which the Office 
        considers necessary to carry out the purposes of this section 
        with respect to any matter within the jurisdiction of the 
        Office, including any amendments which may be necessary with 
        respect to chapter 87 or 89 of title 5, United States Code; and
            (2) the Postal Service shall submit to the appropriate 
        committees of Congress recommendations for any legislation 
        which the Postal Service considers necessary to carry out the 
        purposes of this section with respect to any matter within the 
        jurisdiction of the Postal Service.
    (c) Notification Requirements.--Not later than 9 months after the 
triggering date, the Postal Service shall submit to the appropriate 
committees of Congress and shall cause to be published in the Federal 
Register a description of the program proposed by the Postal Service 
for implementation under section 1005(c) of title 39, United States 
Code, as amended by subsection (a). Included in the notification 
provided under the preceding sentence shall be--
            (1) a detailed statement of the benefits to be offered and 
        the persons eligible to receive those benefits;
            (2) provisions to ensure an orderly transition to the 
        system proposed to be implemented; and
            (3) such other information as the Postal Service considers 
        appropriate.
    (d) Commencement Date.--The program under section 1005(c) of title 
39, United States Code, as amended by this section--
            (1) shall begin to operate on such date as the Postmaster 
        General shall determine, except that such date shall be a date 
        occurring--
                    (A) not earlier than 12 months after the triggering 
                date; and
                    (B) not later than 24 months after the triggering 
                date; and
            (2) shall apply with respect to amounts payable for periods 
        beginning on or after the date on which the program begins to 
        operate, irrespective of date of the disability or death to 
        which such amounts relate.
    (e) Condition Precedent.--
            (1) In general.--The preceding provisions of this section 
        shall not become effective until the date on which a Postal 
        Service Financial Responsibility and Management Assistance 
        Authority (established under section 202)--
                    (A) makes a written determination that conditions 
                warrant their implementation; and
                    (B) submits such written determination to the 
                Postal Service, the Office of Personnel Management, and 
                the appropriate committees of Congress (within the 
                meaning of the amendment made by subsection (a)).
            (2) Triggering date.--For purposes of this section, the 
        term ``triggering date of this section'' or ``triggering date'' 
        means the date described in paragraph (1).

                    TITLE IV--POSTAL SERVICE REVENUE

SEC. 401. ADEQUACY, EFFICIENCY, AND FAIRNESS OF POSTAL RATES.

    (a) In General.--Section 3622(d) is amended--
            (1) in paragraph (1)--
                    (A) by redesignating subparagraphs (B) through (E) 
                as subparagraph (D) through (G), respectively; and
                    (B) by inserting after subparagraph (A) the 
                following:
                    ``(B) subject to the limitation under subparagraph 
                (A), establish postal rates to fulfill the requirement 
                that each market-dominant class, product, and type of 
                mail service (except for an experimental product or 
                service) bear the direct and indirect postal costs 
                attributable to such class, product, or type through 
                reliably identified causal relationships plus that 
                portion of all other costs of the Postal Service 
                reasonably assignable to such class, product, or type;
                    ``(C) establish postal rates for each group of 
                functionally equivalent agreements between the Postal 
                Service and users of the mail that--
                            ``(i) cover attributable cost; and
                            ``(ii) improve the net financial position 
                        of the Postal Service;
                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;''; and
            (2) by adding at the end the following:
            ``(4) PRC study.--
                    ``(A) In general.--Within 90 days after the end of 
                the first fiscal year beginning after the date of 
                enactment of the Postal Reform Act of 2011, the Postal 
                Regulatory Commission shall complete a study to 
                determine the quantitative impact of the Postal 
                Service's excess capacity on the direct and indirect 
                postal costs attributable to any class that bears less 
                than 100 percent of its costs attributable (as 
                described in paragraph (1)(B)), according to the most 
                recent annual determination of the Postal Regulatory 
                Commission under section 3653.
                    ``(B) Requirements.--The study required under 
                subparagraph (A) shall--
                            ``(i) be conducted pursuant to regulations 
                        that the Postal Regulatory Commission shall 
                        prescribe within 90 days after the date of 
                        enactment of the Postal Reform Act of 2011, 
                        taking into account existing regulations for 
                        proceedings to improve the quality, accuracy, 
                        or completeness of ratemaking information under 
                        section 3652(e)(2) in effect on such date; and
                            ``(ii) for any year in which any class of 
                        mail bears less than 100 percent of its costs 
                        attributable (as described in paragraph 
                        (1)(B)), be updated annually by the Postal 
                        Service and included in its annual report to 
                        the Commission under section 3652, using such 
                        methodologies as the Commission shall by 
                        regulation prescribe.
            ``(5) Additional rates.--Starting not earlier than 12 
        months and not later than 18 months after the date on which the 
        first study described in paragraph (4) is completed, and at 
        least once in each subsequent 12-month period, the Postal 
        Service shall establish postal rates for each loss-making class 
        of mail to eliminate such losses (other than those caused by 
        the Postal Service's excess capacity) by exhausting all unused 
        rate authority as well as maximizing incentives to reduce costs 
        and increase efficiency, subject to the following:
                    ``(A) The term `loss-making', as used in this 
                paragraph with respect to a class of mail, means a 
                class of mail that bears less than 100 percent of its 
                costs attributable (as described in paragraph (1)(B)), 
                according to the most recent annual determination of 
                the Postal Regulatory Commission under section 3653, 
                adjusted to account for the quantitative effect of 
                excess capacity on the costs attributable of the class 
                (as described in paragraph (1)(C)).
                    ``(B) Unused rate authority shall be annually 
                increased by 2 percent 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 (as described in 
                paragraph (1)(C)), with such increase in unused rate 
                authority to take effect 30 days after the date that 
                the Commission issues such determination.''.
    (b) Conforming Amendment.--Subparagraph (A) of section 3622(c)(10) 
is amended to read as follows:
                    ``(A) improve the net financial position of the 
                Postal Service through reducing Postal Service costs or 
                increasing the overall contribution to the 
                institutional costs of the Postal Service; and''.
    (c) Exception.--Section 3622(d) is amended by adding after 
paragraph (5) (as added by subsection (a)(2)) the following:
            ``(6) Exception.--The requirements of paragraph (1)(B) 
        shall not apply to a market-dominant product for which a 
        substantial portion of the product's mail volume consists of 
        inbound international mail with terminal dues rates determined 
        by the Universal Postal Union (and not by bilateral agreements 
        or other arrangements).''.

SEC. 402. REPEAL OF RATE PREFERENCES FOR QUALIFIED POLITICAL 
              COMMITTEES.

    Subsection (e) of section 3626 is repealed.

SEC. 403. RATE PREFERENCES FOR NONPROFIT ADVERTISING.

    (a) Provisions Relating to Former Section 4358(f).--Section 
3626(a)(5) is amended by adding at the end the following: 
``Notwithstanding any other provision of this paragraph, the percentage 
specified in the preceding sentence shall be increased by an additional 
2 percentage points as of the first day of each calendar year beginning 
at least 3 years after the date of the enactment of the Postal Reform 
Act of 2011, until such percentage reaches 80 percent.''.
    (b) Provisions Relating to Former Section 4452 (b) and (c).--
Section 3626(a)(6) is amended by inserting after subparagraph (C) the 
following (as a flush left sentence):
``Notwithstanding any other provision of this paragraph, the percentage 
specified in subparagraph (A) shall be increased by an additional 2 
percentage points as of the first day of each calendar year beginning 
at least 3 years after the date of the enactment of the Postal Reform 
Act of 2011, until such percentage reaches 80 percent.''.

SEC. 404. STREAMLINED REVIEW OF QUALIFYING SERVICE AGREEMENTS FOR 
              COMPETITIVE PRODUCTS.

    Section 3633 is amended by adding at the end the following:
    ``(c) Streamlined Review.--Within 90 days after the date of the 
enactment of this subsection, after notice and opportunity for public 
comment, the Postal Regulatory Commission shall promulgate (and may 
from time to time thereafter revise) regulations for streamlined after-
the-fact review of new agreements between the Postal Service and users 
of the mail that provide rates not of general applicability for 
competitive products, and are functionally equivalent to existing 
agreements that have collectively covered attributable costs and 
collectively improved the net financial position of the Postal Service. 
Streamlined review will be concluded within 5 working days after the 
agreement is filed with the Commission and shall be limited to approval 
or disapproval of the agreement as a whole based on the Commission's 
determination of its functional equivalence. Agreements not approved 
may be resubmitted without prejudice under section 3632(b)(3).''.

SEC. 405. SUBMISSION OF SERVICE AGREEMENTS FOR STREAMLINED REVIEW.

    Section 3632(b) is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following:
            ``(4) Rates for streamlined review.--In the case of rates 
        not of general applicability for competitive products that the 
        Postmaster General considers eligible for streamlined review 
        under section 3633(c), the Postmaster General shall cause each 
        agreement to be filed with the Postal Regulatory Commission by 
        such date, on or before the effective date of any new rate, as 
        the Postmaster General considered appropriate.''.

SEC. 406. TRANSPARENCY AND ACCOUNTABILITY FOR SERVICE AGREEMENTS.

    Section 3653 is amended--
            (1) by redesignating subsections (c) through (e) as 
        subsections (d) through (f), respectively; and
            (2) by inserting after subsection (b) the following:
    ``(c) Each annual written determination of the Commission under 
section 3653 shall include the following written determinations:
            ``(1) Whether each product covered its costs, and if it did 
        not, the determination shall state that such product is in 
        noncompliance under section 3653(c).
            ``(2) For each group of functionally equivalent agreements 
        between the Postal Service and users of the mail, whether it 
        fulfilled requirements to--
                    ``(A) cover attributable costs; and
                    ``(B) improve the net financial position of the 
                Postal Service.
            ``(3) Any group of functionally equivalent agreements (as 
        referred to in subparagraph (B)) not meeting subparagraphs (A) 
        and (B) of paragraph (2) shall be determined to be in 
        noncompliance under this subsection.
            ``(4) For purposes of this subsection, a group of 
        functionally equivalent agreements (as referred to in paragraph 
        (2)) shall consist of all 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.''.

SEC. 407. NONPOSTAL SERVICES.

    (a) Nonpostal Services.--
            (1) In general.--Part IV is amended by adding after chapter 
        36 the following:

                    ``CHAPTER 37--NONPOSTAL SERVICES

``Sec.
``3701. Purpose.
``3702. Definitions.
``3703. Postal Service advertising program.
``3704. Postal Service program for State governments.
``3705. Postal Service program for other government agencies.
``3706. Transparency and accountability for nonpostal services.
``Sec. 3701. Purpose
    ``This chapter is intended to enable the Postal Service to increase 
its net revenues through specific nonpostal products and services that 
are expressly authorized by this chapter. Postal Service revenues and 
expenses under this chapter shall be funded through the Postal Service 
Fund.
``Sec. 3702. Definitions
    ``As used in this chapter--
            ``(1) the term `nonpostal services' is limited to services 
        offered by the Postal Service that are expressly authorized by 
        this chapter and are not postal products or services;
            ``(2) the term `Postal Service advertising program' means a 
        program, managed by the Postal Service, by which the Postal 
        Service receives revenues from entities which advertise at 
        Postal Service facilities and on Postal Service vehicles;
            ``(3) the term `Postal Service program for State 
        governments' means a program, managed by the Postal Service, by 
        which the Postal Service receives revenue from State 
        governments (including their agencies) for providing services 
        on their behalf at Postal Service facilities;
            ``(4) the term `attributable costs' has the same meaning as 
        is given such term in section 3631; and
            ``(5) the term `year' means a fiscal year.
``Sec. 3703. Postal Service advertising program
    ``Notwithstanding any other provision of this title, the Postal 
Service may establish and manage a program that allows entities to 
advertise at Postal Service facilities and on Postal Service vehicles. 
Such a program shall be subject to the following requirements:
            ``(1) The Postal Service shall at all times ensure 
        advertising it permits is consistent with the integrity of the 
        Postal Service.
            ``(2) Any advertising program is required to cover a 
        minimum of 200 percent of its attributable costs in each year.
            ``(3) All advertising expenditures and revenues are subject 
        to annual compliance determination (including remedies for 
        noncompliance) applicable to nonpostal products.
            ``(4) Total advertising expenditures and revenues must be 
        disclosed in Postal Service annual reports.
``Sec. 3704. Postal Service program for State governments
    ``(a) In General.--Notwithstanding any other provision of this 
title, the Postal Service may establish a program to provide services 
for agencies of State governments within the United States, but only if 
such services--
            ``(1) shall provide enhanced value to the public, such as 
        by lowering the cost or raising the quality of such services or 
        by making such services more accessible;
            ``(2) do not interfere with or detract from the value of 
        postal services, including--
                    ``(A) the cost and efficiency of postal services; 
                and
                    ``(B) access to postal retail service, such as 
                customer waiting time and access to parking; and
            ``(3) provide a reasonable contribution to the 
        institutional costs of the Postal Service, defined as 
        reimbursement for each service and to each agency covering at 
        least 150 percent of the attributable costs of such service in 
        each year.
    ``(b) Public Notice.--At least 90 days before offering any services 
under this section, the Postal Service shall make each agreement with 
State agencies readily available to the public on its website, 
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 website, followed by its written response posted 
on its website at least 30 days before offering such services.
    ``(c) Approval Required.--The Governors of the Postal Service shall 
approve the provision of services under this section by a recorded 
vote, with at least \2/3\ of its membership voting for approval, with 
the vote publicly disclosed on the Postal Service website.
    ``(d) Classification of Services.--All services for a given agency 
provided under this section shall be classified as a separate activity 
subject to the requirements of annual reporting under section 3706. 
Such reporting shall also include information on the quality of service 
and related information to demonstrate that it satisfied the 
requirements of subsection (a). Information provided under this section 
shall be according to requirements that the Postal Regulatory 
Commission shall by regulation prescribe.
    ``(e) Definitions.--For the purpose of this section--
            ``(1) the term `State' includes the District of Columbia, 
        the Commonwealth of Puerto Rico, the United States Virgin 
        Islands, Guam, American Samoa, the Commonwealth of the Northern 
        Mariana Islands, and any other territory or possession of the 
        United States; and
            ``(2) the term `United States', when used in a geographical 
        sense, means the States.
``Sec. 3705. Postal Service program for other government agencies
    ``(a) In General.--The Postal Service may establish a program to 
provide property and services for other government agencies within the 
meaning of section 411, but only if such program provides a reasonable 
contribution to the institutional costs of the Postal Service, defined 
as reimbursement by each agency that covers at least 100 percent of the 
attributable costs of all property and service provided by the Postal 
Service in a each year to such agency.
    ``(b) Classification of Services.--For each agency, all property 
and services provided by the Postal Service under this section shall be 
classified as a separate activity subject to the requirements of annual 
reporting under section 3706. Information provided under this section 
shall be according to requirements that the Postal Regulatory 
Commission shall by regulation prescribe.
``Sec. 3706. Transparency and accountability for nonpostal services
    ``(a) Annual Reports to the Commission.--
            ``(1) In general.--The Postal Service shall, no later than 
        90 days after the end of each year, prepare and submit to the 
        Postal Regulatory Commission a report (together with such 
        nonpublic annex to the report as the Commission may require 
        under subsection (b)) which shall analyze costs, revenues, 
        rates, and quality of service for this chapter, using such 
        methodologies as the Commission shall by regulation prescribe, 
        and in sufficient detail to demonstrate compliance with all 
        applicable requirements of this chapter.
            ``(2) Audits.--The Inspector General shall regularly audit 
        the data collection systems and procedures utilized in 
        collecting information and preparing such report. The results 
        of any such audit shall be submitted to the Postal Service and 
        the Postal Regulatory Commission.
    ``(b) Supporting Matter.--The Postal Regulatory Commission shall 
have access, in accordance with such regulations as the Commission 
shall prescribe, to the working papers and any other supporting matter 
of the Postal Service and the Inspector General in connection with any 
information submitted under this section.
    ``(c) Content and Form of Reports.--
            ``(1) In general.--The Postal Regulatory Commission shall, 
        by regulation, prescribe the content and form of the public 
        reports (and any nonpublic annex and supporting matter relating 
        to the report) to be provided by the Postal Service under this 
        section. Such reports shall be included with the annual 
        compliance determination reported under section 3653. In 
        carrying out this subsection, the Commission shall give due 
        consideration to--
                    ``(A) providing the public with timely, adequate 
                information to assess compliance;
                    ``(B) avoiding unnecessary or unwarranted 
                administrative effort and expense on the part of the 
                Postal Service; and
                    ``(C) protecting the confidentiality of information 
                that is commercially sensitive or is exempt from public 
                disclosure under section 552(b) of title 5.
            ``(2) Revised requirements.--The Commission may, on its own 
        motion or on request of any interested party, initiate 
        proceedings (to be conducted in accordance with regulations 
        that the Commission shall prescribe) to improve the quality, 
        accuracy, or completeness of Postal Service data required by 
        the Commission under this subsection whenever it shall appear 
        that--
                    ``(A) the attribution of costs or revenues to 
                property or services under this chapter has become 
                significantly inaccurate or can be significantly 
                improved;
                    ``(B) the quality of service data provided to the 
                Commission for annual reports under this chapter has 
                become significantly inaccurate or can be significantly 
                improved; or
                    ``(C) such revisions are, in the judgment of the 
                Commission, otherwise necessitated by the public 
                interest.
    ``(d) Confidential Information.--
            ``(1) In general.--If the Postal Service determines that 
        any document or portion of a document, or other matter, which 
        it provides to the Postal Regulatory Commission in a nonpublic 
        annex under this section contains information which is 
        described in section 410(c) of this title, or exempt from 
        public disclosure under section 552(b) of title 5, the Postal 
        Service shall, at the time of providing such matter to the 
        Commission, notify the Commission of its determination, in 
        writing, and describe with particularity the documents (or 
        portions of documents) or other matter for which 
        confidentiality is sought and the reasons therefor.
            ``(2) Treatment.--Any information or other matter described 
        in paragraph (1) to which the Commission gains access under 
        this section shall be subject to paragraphs (2) and (3) of 
        section 504(g) in the same way as if the Commission had 
        received notification with respect to such matter under section 
        504(g)(1).
    ``(e) Annual Compliance Determination.--
            ``(1) Opportunity for public comment.--After receiving the 
        reports required under subsection (a) for any year, the Postal 
        Regulatory Commission shall promptly provide an opportunity for 
        comment on such reports by any interested party, and an officer 
        of the Commission who shall be required to represent the 
        interests of the general public.
            ``(2) Determination of compliance or noncompliance.--Not 
        later than 90 days after receiving the submissions required 
        under subsection (a) with respect to a year, the Postal 
        Regulatory Commission shall make a written determination as to 
        whether any nonpostal activities during such year were or were 
        not in compliance with applicable provisions of this chapter 
        (or regulations promulgated under this chapter). The Postal 
        Regulatory Commission shall issue a determination of 
        noncompliance if the requirements for coverage of attributable 
        costs are not met. If, with respect to a year, no instance of 
        noncompliance is found to have occurred in such year, the 
        written determination shall be to that effect.
            ``(3) Noncompliance.--If, for a year, a timely written 
        determination of noncompliance is made under this chapter, the 
        Postal Regulatory Commission shall take appropriate action. If 
        the requirements for coverage of attributable costs specified 
        by this chapter are not met, the Commission shall, within 60 
        days after the determination, prescribe remedial action to 
        restore compliance as soon as practicable, which shall also 
        include the full restoration of revenue shortfalls during the 
        following fiscal year. The Commission may order the Postal 
        Service to discontinue a nonpostal service under section 3703 
        or 3704 that persistently fails to meet cost coverage 
        requirements.
            ``(4) Any deliberate noncompliance.--In addition, in cases 
        of deliberate noncompliance by the Postal Service with the 
        requirements of this chapter, the Postal Regulatory Commission 
        may order, based on the nature, circumstances, extent, and 
        seriousness of the noncompliance, a fine (in the amount 
        specified by the Commission in its order) for each incidence of 
        noncompliance. All receipts from fines imposed under this 
        subsection shall be deposited in the general fund of the 
        Treasury of the United States.''.
            (2) Clerical amendment.--The table of chapters at the 
        beginning of part IV is amended by adding after the item 
        relating to chapter 36 the following:

``37. Nonpostal Services....................................    3701''.
    (b) Conforming Amendments.--
            (1) Section 404(e).--Section 404(e) is amended by adding at 
        the end the following:
    ``(6) Nothing in this section shall be considered to prevent the 
Postal Service from establishing nonpostal products and services that 
are expressly authorized by chapter 37.''.
            (2) Section 411.--The last sentence of section 411 is 
        amended by striking ``including reimbursability'' and inserting 
        ``including reimbursability within the limitations of chapter 
        37''.
            (3) Treatment of existing nonpostal services.--All 
        nonpostal services continued pursuant to section 404(e) of 
        title 39, United States Code, shall be considered to be 
        expressly authorized by chapter 37 of such title (as added by 
        subsection (a)(1)) and shall be subject to the requirements of 
        such chapter.

SEC. 408. REIMBURSEMENT OF ALASKA BYPASS MAIL COSTS.

    (a) Cost Estimates by Postal Regulatory Commission.--Section 
3651(b) is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following:
            ``(2) Alaska bypass mail costs.--In addition to the 
        information required under subsection (a), each report under 
        this section shall also include, with respect to the period 
        covered by such report, an estimate of the costs incurred by 
        the Postal Service in providing Alaska bypass mail service 
        under section 5402.''.
    (b) Reimbursements.--
            (1) In general.--Chapter 54 is amended by adding at the end 
        the following:
``Sec. 5404. Reimbursement of Alaska bypass mail costs
    ``(a) In General.--The State of Alaska, on an annual basis, shall 
make a payment to the Postal Service to reimburse the Postal Service 
for its costs in providing Alaska bypass mail service under section 
5402 of this title.
    ``(b) Date of First Payment.--The State of Alaska shall make its 
first payment under subsection (a) on or before the last day of the 
first fiscal year of the State of Alaska beginning after the date of 
enactment of this section.
    ``(c) Payment Amounts.--
            ``(1) Determination of amounts.--The amount of a payment 
        under subsection (a) shall be determined based on the most 
        recent cost estimate prepared by the Postal Regulatory 
        Commission under section 3651(b)(2) of this title (in this 
        subsection referred to as the `cost estimate').
            ``(2) First payment.--The first payment under subsection 
        (a) shall be in an amount equal to 20 percent of the cost 
        estimate.
            ``(3) Subsequent payments.--Each subsequent payment under 
        subsection (a) shall be in an amount equal to a percentage of 
        the cost estimate determined by adding 20 percent to the 
        percentage due in the prior year, except that no payment shall 
        exceed 100 percent of the cost estimate.
    ``(d) Notice of Payment Amounts.--Not later than 30 days after the 
date of issuance of a cost estimate by the Postal Regulatory Commission 
under section 3651(b)(2) of this title, the Postal Service shall 
furnish the State of Alaska with written notice of the amount of the 
next payment due under subsection (a).
    ``(e) Deposit of Payments.--Not later than the last day of the 
fiscal year of the State of Alaska in which notice of a payment is 
provided under subsection (d)--
            ``(1) the State of Alaska shall transmit the payment to the 
        Postal Service; and
            ``(2) the Postal Service shall deposit the payment in the 
        Postal Service Fund.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 54 is amended by adding at the end the 
        following:

``5404. Reimbursement of Alaska bypass mail costs.''.

SEC. 409. APPROPRIATIONS MODERNIZATION.

    (a) In General.--Section 2401 is amended by striking subsections 
(b) through (d).
    (b) Effective Date.--The amendment made by subsection (a) shall be 
effective with respect to fiscal years beginning after the date of 
enactment of this Act.

SEC. 410. RETIREE HEALTH CARE BENEFIT PAYMENT DEFERRAL.

    Section 8909a of title 5, United States Code, is amended--
            (1) in the section heading, by striking ``Benefit'' and 
        inserting ``Benefits'';
            (2) in subsection (d)(3)(A)(v), by striking 
        ``$5,500,000,000'' and inserting ``$1,000,000,000'';
            (3) in subsection (d)(3)(A)(ix), by striking 
        ``$5,700,000,000'' and inserting ``$7,950,000,000''; and
            (4) in subsection (d)(3)(A)(x), by striking 
        ``$5,800,000,000'' and inserting ``$8,050,000,000''.

                   TITLE V--POSTAL CONTRACTING REFORM

SEC. 501. CONTRACTING PROVISIONS.

    (a) In General.--Part I is amended by adding at the end the 
following:

                  ``CHAPTER 7--CONTRACTING PROVISIONS

``Sec.
``701. Definitions.
``702. Advocate for competition.
``703. Delegation of contracting authority.
``704. Posting of noncompetitive purchase requests for noncompetitive 
                            contracts.
``705. Review of ethical issues.
``706. Ethical restrictions on participation in certain contracting 
                            activity.
``Sec. 701. Definitions
    ``In this chapter--
            ``(1) the term `contracting officer' means an employee of a 
        covered postal entity who has authority to enter into a postal 
        contract;
            ``(2) the term `covered postal entity' means--
                    ``(A) the Postal Service; or
                    ``(B) the Postal Regulatory Commission;
            ``(3) the term `head of a covered postal entity' means--
                    ``(A) in the case of the Postal Service, the 
                Postmaster General; or
                    ``(B) in the case of the Postal Regulatory 
                Commission, the Chairman of the Postal Regulatory 
                Commission;
            ``(4) the term `postal contract' means--
                    ``(A) in the case of the Postal Service, any 
                contract (including any agreement or memorandum of 
                understanding) entered into by the Postal Service for 
                the procurement of goods or services; or
                    ``(B) in the case of the Postal Regulatory 
                Commission, any contract (including any agreement or 
                memorandum of understanding) in an amount exceeding the 
                simplified acquisition threshold (as defined in section 
                134 of title 41 and adjusted under section 1908 of such 
                title) entered into by the Postal Regulatory Commission 
                for the procurement of goods or services; and
            ``(5) the term `senior procurement executive' means the 
        senior procurement executive of a covered postal entity.
``Sec. 702. Advocate for competition
    ``(a) Establishment and Designation.--
            ``(1) There is established in each covered postal entity an 
        advocate for competition.
            ``(2) The head of each covered postal entity shall 
        designate for the covered postal entity 1 or more officers or 
        employees (other than the senior procurement executive) to 
        serve as the advocate for competition.
    ``(b) Responsibilities.--The advocate for competition of a covered 
postal entity shall--
            ``(1) be responsible for promoting--
                    ``(A) the contracting out of functions of the 
                covered postal entity that the private sector can 
                perform equally well or better, and at lower cost; and
                    ``(B) competition to the maximum extent practicable 
                consistent with obtaining best value by promoting the 
                acquisition of commercial items and challenging 
                barriers to competition;
            ``(2) review the procurement activities of the covered 
        postal entity; and
            ``(3) prepare and transmit the annual report required under 
        subsection (c).
    ``(c) Annual Report.--
            ``(1) Preparation.--The advocate for competition of a 
        covered postal entity shall prepare an annual report describing 
        the following:
                    ``(A) The activities of the advocate under this 
                section.
                    ``(B) Initiatives required to promote contracting 
                out and competition.
                    ``(C) Barriers to contracting out and competition.
                    ``(D) In the case of the report prepared by the 
                competition advocate of the Postal Service, the number 
                of waivers made by the Postal Service under section 
                704(c).
            ``(2) Transmission.--The report under this subsection shall 
        be transmitted--
                    ``(A) to Congress;
                    ``(B) to the head of the postal entity;
                    ``(C) to the senior procurement executive of the 
                entity;
                    ``(D) in the case of the competition advocate of 
                the Postal Service, to each member of the Postal 
                Service Board of Governors; and
                    ``(E) in the case of the competition advocate of 
                the Postal Regulatory Commission, to each of the 
                Commissioners of the Commission.
``Sec. 703. Delegation of contracting authority
    ``(a) In General.--
            ``(1) Policy.--Not later than 60 days after the date of 
        enactment of this chapter, the head of each covered postal 
        entity shall issue a policy on contracting officer delegations 
        of authority for postal contracts for the covered postal 
        entity.
            ``(2) Contents.--The policy issued under paragraph (1) 
        shall require that--
                    ``(A) notwithstanding any delegation of authority 
                with respect to postal contracts, the ultimate 
                responsibility and accountability for the award and 
                administration of postal contracts resides with the 
                senior procurement executive; and
                    ``(B) a contracting officer shall maintain an 
                awareness of and engagement in the activities being 
                performed on postal contracts of which that officer has 
                cognizance, notwithstanding any delegation of authority 
                that may have been executed.
    ``(b) Posting of Delegations.--
            ``(1) In general.--The head of each covered postal entity 
        shall make any delegation of authority for postal contracts 
        outside the functional contracting unit readily available and 
        accessible on the website of the covered postal entity.
            ``(2) Effective date.--This paragraph shall apply to any 
        delegation of authority made on or after 30 days after the date 
        of enactment of this chapter.
``Sec. 704. Posting of noncompetitive purchase requests for 
              noncompetitive contracts
    ``(a) Posting Required.--
            ``(1) Postal regulatory commission.--The Postal Regulatory 
        Commission shall make the noncompetitive purchase request for 
        any noncompetitive award for any contract (including any 
        agreement or memorandum of understanding) entered into by the 
        Postal Regulatory Commission for the procurement of goods and 
        services, in an amount of $20,000 or more, including the 
        rationale supporting the noncompetitive award, publicly 
        available on the website of the Postal Regulatory Commission--
                    ``(A) not later than 14 days after the date of the 
                award of the noncompetitive contract; or
                    ``(B) not later than 30 days after the date of the 
                award of the noncompetitive contract, if the basis for 
                the award was a compelling business interest.
            ``(2) Postal service.--The Postal Service shall make the 
        noncompetitive purchase request for any noncompetitive award of 
        a postal contract in an amount of $250,000 or more, including 
        the rationale supporting the noncompetitive award, publicly 
        available on the website of the Postal Service--
                    ``(A) not later than 14 days after the date of the 
                award; or
                    ``(B) not later than 30 days after the date of the 
                award, if the basis for the award was a compelling 
                business interest.
            ``(3) Adjustments to the posting threshold for the postal 
        service.--
                    ``(A) Review and determination.--Not later than 
                January 31 of each year, the Postal Service shall--
                            ``(i) review the $250,000 threshold 
                        established under paragraph (2); and
                            ``(ii) based on any change in the Consumer 
                        Price Index for all-urban consumers of the 
                        Department of Labor, determine whether an 
                        adjustment to the threshold shall be made.
                    ``(B) Amount of adjustments.--An adjustment under 
                subparagraph (A) shall be made in increments of $5,000. 
                If the Postal Service determines that a change in the 
                Consumer Price Index for a year would require an 
                adjustment in an amount that is less than $5,000, the 
                Postal Service may not make an adjustment to the 
                threshold for the year.
            ``(4) Effective date.--This subsection shall apply to any 
        noncompetitive contract awarded on or after the date that is 90 
        days after the date of enactment of this chapter.
    ``(b) Public Availability.--
            ``(1) In general.--Subject to paragraph (2), the 
        information required to be made publicly available by a covered 
        postal entity under subsection (a) shall be readily accessible 
        on the website of the covered postal entity.
            ``(2) Protection of proprietary information.--A covered 
        postal entity shall--
                    ``(A) carefully screen any description of the 
                rationale supporting a noncompetitive award required to 
                be made publicly available under subsection (a) to 
                determine whether the description includes proprietary 
                data (including any reference or citation to the 
                proprietary data) or security-related information; and
                    ``(B) remove any proprietary data or security-
                related information before making publicly available a 
                description of the rationale supporting a 
                noncompetitive award.
    ``(c) Waivers.--
            ``(1) Waiver permitted.--If the Postal Service determines 
        that making a noncompetitive purchase request for a postal 
        contract of the Postal Service publicly available would risk 
        placing the Postal Service at a competitive disadvantage 
        relative to a private sector competitor, the senior procurement 
        executive, in consultation with the advocate for competition of 
        the Postal Service, may waive the requirements under subsection 
        (a).
            ``(2) Form and content of waiver.--
                    ``(A) Form.--A waiver under paragraph (1) shall be 
                in the form of a written determination placed in the 
                file of the contract to which the noncompetitive 
                purchase agreement relates.
                    ``(B) Content.--A waiver under paragraph (1) shall 
                include--
                            ``(i) a description of the risk associated 
                        with making the noncompetitive purchase request 
                        publicly available; and
                            ``(ii) a statement that redaction of 
                        sensitive information in the noncompetitive 
                        purchase request would not be sufficient to 
                        protect the Postal Service from being placed at 
                        a competitive disadvantage relative to a 
                        private sector competitor.
            ``(3) Delegation of waiver authority.--The Postal Service 
        may not delegate the authority to approve a waiver under 
        paragraph (1) to any employee having less authority than the 
        senior procurement executive.
``Sec. 705. Review of ethical issues
    ``If a contracting officer identifies any ethical issues relating 
to a proposed contract and submits those issues and that proposed 
contract to the designated ethics official for the covered postal 
entity before the awarding of that contract, that ethics official 
shall--
            ``(1) review the proposed contract; and
            ``(2) advise the contracting officer on the appropriate 
        resolution of ethical issues.
``Sec. 706. Ethical restrictions on participation in certain 
              contracting activity
    ``(a) Definitions.--In this section--
            ``(1) the term `covered employee' means--
                    ``(A) a contracting officer; or
                    ``(B) any employee of a covered postal entity whose 
                decision making affects a postal contract as determined 
                by regulations prescribed by the head of a covered 
                postal entity;
            ``(2) the term `final conviction' means a conviction, 
        whether entered on a verdict or plea, including a plea of nolo 
        contendere, for which a sentence has been imposed; and
            ``(3) the term `covered relationship' means a covered 
        relationship described in section 2635.502(b)(1) of title 5, 
        Code of Federal Regulations, or any successor thereto.
    ``(b) In General.--
            ``(1) Regulations.--The head of each covered postal entity 
        shall prescribe regulations that--
                    ``(A) require a covered employee to include in the 
                file of any noncompetitive purchase request for a 
                noncompetitive postal contract a written certification 
                that--
                            ``(i) discloses any covered relationship of 
                        the covered employee; and
                            ``(ii) states that the covered employee 
                        will not take any action with respect to the 
                        noncompetitive purchase request that affects 
                        the financial interests of a friend, relative, 
                        or person with whom the covered employee is 
                        affiliated in a nongovernmental capacity, or 
                        otherwise gives rise to an appearance of the 
                        use of public office for private gain, as 
                        described in section 2635.702 of title 5, Code 
                        of Federal Regulations, or any successor 
                        thereto;
                    ``(B) require a contracting officer to consult with 
                the ethics counsel for the covered postal entity 
                regarding any disclosure made by a covered employee 
                under subparagraph (A)(i), to determine whether 
                participation by the covered employee in the 
                noncompetitive purchase request would give rise to a 
                violation of part 2635 of title 5, Code of Federal 
                Regulations (commonly referred to as the Standards of 
                Ethical Conduct for Employees of the Executive Branch), 
                or any successor thereto;
                    ``(C) require the ethics counsel for a covered 
                postal entity to review any disclosure made by a 
                contracting officer under subparagraph (A)(i) to 
                determine whether participation by the contracting 
                officer in the noncompetitive purchase request would 
                give rise to a violation of part 2635 of title 5, Code 
                of Federal Regulations (commonly referred to as the 
                Standards of Ethical Conduct for Employees of the 
                Executive Branch), or any successor thereto;
                    ``(D) under subsections (d) and (e) of section 
                2635.502 of title 5, Code of Federal Regulations, or 
                any successor thereto, require the ethics counsel for a 
                covered postal entity to--
                            ``(i) authorize a covered employee that 
                        makes a disclosure under subparagraph (A)(i) to 
                        participate in the noncompetitive postal 
                        contract; or
                            ``(ii) disqualify a covered employee that 
                        makes a disclosure under subparagraph (A)(i) 
                        from participating in the noncompetitive postal 
                        contract;
                    ``(E) require a contractor to timely disclose to 
                the contracting officer in a bid, solicitation, award, 
                or performance of a postal contract any conflict of 
                interest with a covered employee; and
                    ``(F) include authority for the head of the covered 
                postal entity to grant a waiver or otherwise mitigate 
                any organizational or personal conflict of interest, if 
                the head of the covered postal entity determines that 
                the waiver or mitigation is in the best interests of 
                the covered postal entity.
            ``(2) Posting of waivers.--Not later than 30 days after the 
        head of a covered postal entity grants a waiver described in 
        paragraph (1)(F), the head of the covered postal entity shall 
        make the waiver publicly available on the website of the 
        covered postal entity.
    ``(c) Contract Voidance and Recovery.--
            ``(1) Unlawful conduct.--In any case in which there is a 
        final conviction for a violation of any provision of chapter 11 
        of title 18 relating to a postal contract, the head of a 
        covered postal entity may--
                    ``(A) void that contract; and
                    ``(B) recover the amounts expended and property 
                transferred by the covered postal entity under that 
                contract.
            ``(2) Obtaining or disclosing procurement information.--
                    ``(A) In general.--In any case in which a 
                contractor under a postal contract fails to timely 
                disclose a conflict of interest to the appropriate 
                contracting officer as required under the regulations 
                promulgated under subsection (b)(1)(E), the head of a 
                covered postal entity may--
                            ``(i) void that contract; and
                            ``(ii) recover the amounts expended and 
                        property transferred by the covered postal 
                        entity under that contract.
                    ``(B) Conviction or administrative determination.--
                A case described under subparagraph (A) is any case in 
                which--
                            ``(i) there is a final conviction for an 
                        offense punishable under section 2105 of title 
                        41; or
                            ``(ii) the head of a covered postal entity 
                        determines, based upon a preponderance of the 
                        evidence, that the contractor or someone acting 
                        for the contractor has engaged in conduct 
                        constituting an offense punishable under 
                        section 2105 of such title.''.
    (b) Clerical Amendment.--The table of chapters at the beginning of 
part I is amended by adding at the end the following:

``7. Contracting Provisions.................................     701''.

SEC. 502. TECHNICAL AMENDMENT TO DEFINITION.

    Section 7101(8) of title 41, United States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (C);
            (2) by striking the period at the end of subparagraph (D) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(E) the United States Postal Service and the 
                Postal Regulatory Commission.''.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS; REFERENCES.

    (a) Short Title.--This Act may be cited as the ``Postal Reform Act 
of 2012''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents; references.
                 TITLE I--POSTAL SERVICE MODERNIZATION

            Subtitle A--Commission on Postal Reorganization

Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. Commission on Postal Reorganization.
Sec. 104. Recommendations for closures and consolidations.
Sec. 105. Implementation of closures and consolidations.
Sec. 106. Congressional consideration of final CPR reports.
Sec. 107. Nonappealability of decisions.
Sec. 108. Rules of construction.
Sec. 109. GAO study and report.
                      Subtitle B--Other Provisions

Sec. 111. Implementation of discretionary non-mail delivery days.
Sec. 112. Efficient and flexible universal postal service.
Sec. 113. Enhanced reporting on Postal Service efficiency.
Sec. 114. Applicability of procedures relating to closures and 
                            consolidations.
   TITLE II--POSTAL SERVICE FINANCIAL RESPONSIBILITY AND MANAGEMENT 
                          ASSISTANCE AUTHORITY

               Subtitle A--Establishment and Organization

Sec. 201. Purposes.
Sec. 202. Establishment of the Authority.
Sec. 203. Membership and qualification requirements.
Sec. 204. Organization.
Sec. 205. Executive Director and staff.
Sec. 206. Funding.
                  Subtitle B--Powers of the Authority

Sec. 211. Powers.
Sec. 212. Exemption from liability for claims.
Sec. 213. Treatment of actions arising under this title.
Sec. 214. Delivery point modernization.
Subtitle C--Establishment and Enforcement of Financial Plan and Budget 
                         for the Postal Service

Sec. 221. Development of financial plan and budget for the Postal 
                            Service.
Sec. 222. Supplementary borrowing authority during a control period.
Sec. 223. Process for submission and approval of financial plan and 
                            budget.
Sec. 224. Responsibilities of the Authority.
Sec. 225. Effect of finding noncompliance with financial plan and 
                            budget.
Sec. 226. Recommendations regarding financial stability, etc.
Sec. 227. Special rules for fiscal year in which control period 
                            commences.
Sec. 228. Assistance in achieving financial stability, etc.
Sec. 229. Obtaining reports.
Sec. 230. Reports and comments.
                  TITLE III--POSTAL SERVICE WORKFORCE

                     Subtitle A--General Provisions

Sec. 301. Modifications relating to determination of pay comparability.
Sec. 302. Limitation on postal contributions under FEGLI and FEHBP.
Sec. 303. Repeal of provision relating to overall value of fringe 
                            benefits.
Sec. 304. Applicability of reduction-in-force procedures.
Sec. 305. Modifications relating to collective bargaining.
Sec. 306. One-time transfer of net surplus postal retirement 
                            contributions.
        Subtitle B--Postal Service Workers' Compensation Reform

Sec. 311. Postal Service workers' compensation reform.
                    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. Rate preferences for nonprofit advertising.
Sec. 404. Streamlined review of qualifying service agreements for 
                            competitive products.
Sec. 405. Submission of service agreements for streamlined review.
Sec. 406. Transparency and accountability for service agreements.
Sec. 407. Nonpostal services.
Sec. 408. Reimbursement of Alaska bypass mail costs.
Sec. 409. Appropriations modernization.
Sec. 410. Retiree health care benefit payment deferral.
                   TITLE V--POSTAL CONTRACTING REFORM

Sec. 501. Contracting provisions.
Sec. 502. Technical amendment to definition.
    (c) References.--Except as otherwise expressly provided, whenever 
in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of title 
39, United States Code.

                 TITLE I--POSTAL SERVICE MODERNIZATION

            Subtitle A--Commission on Postal Reorganization

SEC. 101. SHORT TITLE.

    This subtitle may be cited as the ``Commission on Postal 
Reorganization Act'' or the ``CPR Act''.

SEC. 102. DEFINITIONS.

    For purposes of this title--
            (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;
            (3) the term ``mail processing facility'' means a 
        processing and distribution center, processing and distribution 
        facility, network distribution center, or other facility which 
        is operated by the Postal Service, and the primary function of 
        which is to sort and process mail;
            (4) 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 June 23, 2011);
            (5) 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 (4);
            (6) the term ``baseline year'' means the fiscal year last 
        ending before the date of the enactment of this Act; and
            (7) the term ``Member of Congress'' has the meaning given 
        such term by section 2106 of title 5, United States Code.

SEC. 103. COMMISSION ON POSTAL REORGANIZATION.

    (a) Establishment.--There shall be established, not later than 90 
days after the date of the enactment of this Act, an independent 
commission to be known as the ``Commission on Postal Reorganization'' 
(hereinafter in this section referred to as the ``Commission'').
    (b) Duties.--The Commission shall carry out the duties specified 
for it in this subtitle.
    (c) Members.--
            (1) In general.--The Commission shall be composed of 5 
        members who shall be appointed by the President, and of whom--
                    (A) 1 shall be appointed from among individuals 
                recommended by the Speaker of the House of 
                Representatives;
                    (B) 1 shall be appointed from among individuals 
                recommended by the majority leader of the Senate;
                    (C) 1 shall be appointed from among individuals 
                recommended by the minority leader of the House of 
                Representatives;
                    (D) 1 shall be appointed from among individuals 
                recommended by the minority leader of the Senate; and
                    (E) 1 shall be appointed from among individuals 
                recommended by the Comptroller General.
            (2) Qualifications.--
                    (A) In general.--Members of the Commission shall be 
                chosen to represent the public interest generally, and 
                shall not be representatives of specific interests 
                using the Postal Service.
                    (B) Ineligibility.--An individual may not be 
                appointed to serve as a member of the Commission if 
                such individual is a Member of Congress or served as an 
                employee of the Postal Service or the Postal Regulatory 
                Commission, or of a labor organization representing 
                employees of the Postal Service or the Postal 
                Regulatory Commission, during the 3-year period ending 
                on the date of such appointment.
            (3) Political affiliation.--Not more than 3 members of the 
        Commission may be of the same political party.
    (d) Terms.--Each member of the Commission shall be appointed for 
the life of the Commission and may be removed only for cause.
    (e) Vacancies.--A vacancy in the Commission shall be filled in the 
same manner as the original appointment.
    (f) Chairman.--The President shall, at the time of making 
appointments under subsection (c), designate one of the members to 
serve as chairman of the Commission.
    (g) Compensation and Travel Expenses.--
            (1) Compensation.--
                    (A) In general.--Except as provided in subparagraph 
                (B), each member of the Commission shall be paid at a 
                rate equal to the daily equivalent of $40,000 per year 
                for each day (including travel time) during which the 
                member is engaged in the actual performance of duties 
                vested in the Commission.
                    (B) Exception.--Any member of the Commission who is 
                a full-time officer or employee of the United States 
                may not receive additional pay, allowances, or benefits 
                by reason of such member's service on the Commission.
            (2) Travel expenses.--Each member shall receive travel 
        expenses, including per diem in lieu of subsistence, in 
        accordance with applicable provisions of subchapter I of 
        chapter 57 of title 5, United States Code.
    (h) Director.--The Commission shall have a Director who shall be 
appointed by the Commission. The Director shall be paid at the rate of 
basic pay for level IV of the Executive Schedule under section 5315 of 
title 5, United States Code. An appointment under this subsection shall 
be subject to the requirements of subsection (c)(2).
    (i) Additional Personnel.--With the approval of the Commission, the 
Director may appoint and fix the pay of such additional personnel as 
the Director considers appropriate. Such additional personnel may be 
appointed without regard to the provisions of title 5, United States 
Code, governing appointments in the competitive service, and may be 
paid without regard to the provisions of chapter 51 and subchapter III 
of chapter 53 of such title relating to classification and General 
Schedule pay rates, except that an individual so appointed may not 
receive pay at a rate of basic pay in excess of the rate of basic pay 
payable to the Director. An individual appointed under this subsection 
shall serve at the pleasure of the Director.
    (j) Provisions Relating to Details.--
            (1) In general.--Upon request of the Director, the head of 
        any Federal department or agency may detail any of the 
        personnel of such department or agency to the Commission to 
        assist the Commission in carrying out its duties under this 
        subtitle. Notwithstanding any other provision of law, to 
        provide continuity in the work of the Commission, such details 
        may be extended beyond 1 year at the request of the Director.
            (2) Numerical limitation.--Not more than \1/3\ of the 
        personnel of the Commission may consist of the number of 
        individuals on detail from the Postal Service and the Postal 
        Regulatory Commission combined.
            (3) Other limitations.--A person may not be detailed to the 
        Commission from the Postal Service or the Postal Regulatory 
        Commission if such person participated personally and 
        substantially on any matter, within the Postal Service or the 
        Postal Regulatory Commission, concerning the preparation of 
        recommendations for closures or consolidations of postal 
        facilities under this subtitle. No employee of the Postal 
        Service or the Postal Regulatory Commission (including a 
        detailee to the Postal Service or the Postal Regulatory 
        Commission) may--
                    (A) prepare any report concerning the 
                effectiveness, fitness, or efficiency of the 
                performance, on the staff of the Commission, of any 
                person detailed from the Postal Service or the Postal 
                Regulatory Commission to such staff;
                    (B) review the preparation of such a report; or
                    (C) approve or disapprove such a report.
    (k) Other Authorities.--
            (1) Experts and consultants.--The Commission may procure by 
        contract, to the extent funds are available, temporary or 
        intermittent services under section 3109 of title 5, United 
        States Code.
            (2) Leasing, etc.--The Commission may lease space and 
        acquire personal property to the extent funds are available.
    (l) Authorization of Appropriations.--In order to carry out this 
section, there are authorized to be appropriated out of the Postal 
Service Fund $20,000,000, which funds shall remain available until 
expended.
    (m) Financial Reporting.--
            (1) Audit and expenditures.--The Commission shall be 
        responsible for issuing annual financial statements and for 
        establishing and maintaining adequate controls over its 
        financial reporting.
            (2) Internal audits.--The Commission shall maintain an 
        adequate internal audit of its financial transactions.
            (3) Annual certification.--The Commission shall obtain an 
        annual certification for each fiscal year from an independent, 
        certified public accounting firm of the accuracy of its 
        financial statements.
            (4) Comptroller general.--The accounts and operations of 
        the Commission shall be audited by the Comptroller General and 
        reports thereon made to the Congress to the extent and at such 
        times as the Comptroller General may determine.
    (n) Termination.--The Commission shall terminate 60 days after 
submitting its final reports under section 104(d)(3).

SEC. 104. RECOMMENDATIONS FOR CLOSURES AND CONSOLIDATIONS.

    (a) Plan for the Closure or Consolidation of Postal Retail 
Facilities.--
            (1) In general.--Not later than 120 days after the date of 
        the enactment of this Act, the Postal Service, in consultation 
        with the Postal Regulatory Commission, shall develop and submit 
        to the Commission on Postal Reorganization a plan for the 
        closure or consolidation of such postal retail facilities as 
        the Postal Service considers necessary and appropriate so that 
        the total annual costs attributable to the operation of postal 
        retail facilities will be, for each fiscal year beginning at 
        least 2 years after the date on which the Commission transmits 
        to Congress its final report under subsection (d)(3)(A) 
        relating to this subsection, at least $1,000,000,000 less than 
        the corresponding total annual costs for the baseline year.
            (2) Contents.--The plan shall include--
                    (A) a list of the postal retail facilities proposed 
                for closure or consolidation under this subtitle;
                    (B) a proposed schedule under which--
                            (i) closures and consolidations of postal 
                        retail facilities would be carried out under 
                        this subtitle; and
                            (ii) all closures and consolidations of 
                        postal retail facilities under this subtitle 
                        would be completed by not later than 2 years 
                        after the date on which the Commission 
                        transmits to Congress its final report under 
                        subsection (d)(3)(A) relating to such plan;
                    (C) the estimated total annual cost savings 
                attributable to the proposed closures and 
                consolidations described in the plan;
                    (D) the criteria and process used to develop the 
                information described in subparagraphs (A) and (B);
                    (E) the methodology and assumptions used to derive 
                the estimates described in subparagraph (C); and
                    (F) 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.
            (3) Consistency.--The methodology and assumptions used to 
        derive the cost estimates described in paragraph (2)(C) shall 
        be consistent with the methodology and assumptions which would 
        have been used by the Postal Service if those closures and 
        consolidations had instead taken effect in the baseline year.
    (b) Plan for the Closure or Consolidation of Mail Processing 
Facilities.--
            (1) In general.--Not later than 300 days after the date of 
        the enactment of this Act, the Postal Service, in consultation 
        with the Inspector General of the United States Postal Service, 
        shall develop and submit to the Commission on Postal 
        Reorganization a plan for the closure or consolidation of such 
        mail processing facilities as the Postal Service considers 
        necessary and appropriate so that--
                    (A) the total annual costs attributable to the 
                operation of mail processing facilities will be, for 
                each fiscal year beginning at least 2 years after the 
                date on which the Commission transmits to Congress its 
                final report under subsection (d)(3)(A) relating to 
                this subsection, at least $2,000,000,000 less than the 
                corresponding total annual costs for the baseline year; 
                and
                    (B) the Postal Service has, for fiscal years 
                beginning at least 2 years after the date on which the 
                Commission transmits to Congress its final report under 
                subsection (d)(3)(A) relating to this subsection, no 
                more than 10 percent excess mail processing capacity.
            (2) Contents.--The plan shall include--
                    (A) a list of the mail processing facilities 
                proposed for closure or consolidation under this 
                subtitle;
                    (B) a proposed schedule under which--
                            (i) closures and consolidations of mail 
                        processing facilities would be carried out 
                        under this subtitle; and
                            (ii) all closures and consolidations of 
                        mail processing facilities under this subtitle 
                        would be completed by not later than 2 years 
                        after the date on which the Commission 
                        transmits to Congress its final report under 
                        subsection (d)(3)(A) relating to such plan;
                    (C) the estimated total annual cost savings 
                attributable to the proposed closures and 
                consolidations described in the plan;
                    (D) the criteria and process used to develop the 
                information described in subparagraphs (A) and (B);
                    (E) the methodology and assumptions used to derive 
                the estimates described in subparagraph (C); and
                    (F) 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.
            (3) Consistency.--The methodology and assumptions used to 
        derive the cost estimates described in paragraph (2)(C) shall 
        be consistent with the methodology and assumptions which would 
        have been used by the Postal Service if those closures and 
        consolidations had instead taken effect in the baseline year.
            (4) Excess mail processing capacity.--The Commission shall 
        cause to be published in the Federal Register notice of a 
        proposed definition of ``excess mail processing capacity'' for 
        purposes of this section within 120 days after the date of the 
        enactment of this Act, and shall provide a period of 30 days 
        for public comment on the proposed definition. Not later than 
        180 days after the date of the enactment of this Act, the 
        Commission shall issue and cause to be published in the Federal 
        Register a final definition of ``excess mail processing 
        capacity'' for purposes of this section. Such definition shall 
        include an estimate of the total amount of excess mail 
        processing capacity in mail processing facilities as of the 
        date of the enactment of this Act.
            (5) Underutilized mail processing facilities.--In 
        developing a plan under this subsection, the Postal Service may 
        include the estimated total cost savings that would result from 
        moving mail processing operations to any mail processing 
        facility that, as of the date of introduction of this Act--
                    (A) is not currently used by the Postal Service; 
                and
                    (B) is capable of processing mail to the Postal 
                Service's standards.
    (c) Plan for the Closure or Consolidation of Area and District 
Offices.--
            (1) In general.--Not later than 300 days after the date of 
        the enactment of this Act, the Postal Service, in consultation 
        with the Inspector General of the United States Postal Service, 
        shall develop and submit to the Commission on Postal 
        Reorganization a plan for the closure or consolidation of such 
        area and district offices as the Postal Service considers 
        necessary and appropriate so that the combined total number of 
        area and district offices will be, for each fiscal year 
        beginning at least 2 years after the date on which the 
        Commission transmits to Congress its final report under 
        subsection (d)(3)(A) relating to this subsection, at least 30 
        percent less than the corresponding combined total for the 
        baseline year.
            (2) Contents.--The plan shall include--
                    (A) a list of the area and district offices 
                proposed for closure or consolidation under this 
                subtitle;
                    (B) a proposed schedule under which--
                            (i) closures and consolidations of area and 
                        district offices would be carried out under 
                        this subtitle; and
                            (ii) all closures and consolidations of 
                        area and district offices under this subtitle 
                        would be completed by not later than 2 years 
                        after the date on which the Commission 
                        transmits to Congress its final report under 
                        subsection (d)(3)(A) relating to such plan;
                    (C) the estimated total annual cost savings 
                attributable to the proposed closures and 
                consolidations described in the plan;
                    (D) the criteria and process used to develop the 
                information described in subparagraphs (A) and (B);
                    (E) the methodology and assumptions used to derive 
                the estimates described in subparagraph (C); and
                    (F) 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.
            (3) Consistency.--The methodology and assumptions used to 
        derive the cost estimates described in paragraph (2)(C) shall 
        be consistent with the methodology and assumptions which would 
        have been used by the Postal Service if those closures and 
        consolidations had instead taken effect in the baseline year.
    (d) Review and Recommendations of the Commission.--
            (1) Initial reports.--
                    (A) In general.--After receiving the plan of the 
                Postal Service under subsection (a), (b), or (c), the 
                Commission on Postal Reorganization shall transmit to 
                Congress and publish in the Federal Register a report 
                under this paragraph, which shall contain the 
                Commission's findings based on a review and analysis of 
                such plan, together with the Commission's initial 
                recommendations for closures and consolidations of 
                postal facilities, mail processing facilities, or area 
                and district offices (as the case may be).
                    (B) Explanation of changes.--The Commission shall 
                explain and justify in its report any recommendations 
                made by the Commission that are different from those 
                contained in the Postal Service plan to which such 
                report pertains.
                    (C) Deadlines.--A report of the Commission under 
                this paragraph shall be transmitted and published, in 
                accordance with subparagraph (A), within--
                            (i) if the report pertains to the plan 
                        under subsection (a), 60 days after the date on 
                        which the Commission receives such plan; or
                            (ii) if the report pertains to the plan 
                        under subsection (b) or (c), 90 days after the 
                        date on which the Commission receives such 
                        plan.
            (2) Public hearings.--
                    (A) In general.--After receiving the plan of the 
                Postal Service under subsection (a), (b), or (c), the 
                Commission on Postal Reorganization shall conduct at 
                least 5 public hearings on such plan. The hearings 
                shall be conducted in geographic areas chosen so as to 
                reflect a broadly representative range of needs and 
                interests.
                    (B) Testimony.--All testimony before the Commission 
                at a public hearing conducted under this paragraph 
                shall be given under oath.
                    (C) Deadlines.--All hearings under this paragraph 
                shall be completed within 60 days after the date as of 
                which the Commission satisfies the requirements of 
                paragraph (1) with respect to such plan.
            (3) Final reports.--
                    (A) In general.--After satisfying the requirements 
                of paragraph (2) with respect to the plan of the Postal 
                Service under subsection (a), (b), or (c) (as the case 
                may be), the Commission shall transmit to Congress and 
                publish in the Federal Register a report under this 
                paragraph containing a summary of the hearings 
                conducted with respect to such plan, together with the 
                Commission's final recommendations for closures and 
                consolidations of postal facilities, mail processing 
                facilities, or area and district offices (as the case 
                may be).
                    (B) Approval.--Recommendations under subparagraph 
                (A) shall not be considered to be final recommendations 
                unless they are made with--
                            (i) except as provided in clause (ii), the 
                        concurrence of at least 4 members of the 
                        Commission; or
                            (ii) to the extent that the requirements of 
                        subsection (b)(1)(A) or (c)(1) are not met, the 
                        concurrence of all sitting members, but only if 
                        the shortfall (relative to the requirements of 
                        subsection (b)(1)(A) or (c)(1), as the case may 
                        be) does not exceed 25 percent.
                    (C) Contents.--A report under this paragraph shall 
                include--
                            (i) the information required by paragraph 
                        (2) of subsection (a), (b), or (c) (as the case 
                        may be); and
                            (ii) a description of the operations that 
                        will be affected by the closure or 
                        consolidation and the facilities or offices 
                        which will be performing or ceasing to perform 
                        such operations as a result of such closure or 
                        consolidation.
                    (D) Deadlines.--A report of the Commission under 
                this paragraph shall be transmitted and published, in 
                accordance with subparagraph (A), within 60 days after 
                the date as of which the Commission satisfies the 
                requirements of paragraph (2) with respect to the plan 
                involved.
    (e) Limitation Relating to Postal Retail Facilities Identified for 
Closure or Consolidation.--
            (1) Applicability.--This subsection applies to any plan of 
        the Postal Service under subsection (a) and any report of the 
        Commission under subsection (d) (whether initial or final) 
        pertaining to such plan.
            (2) Limitation.--Of the total number of postal retail 
        facilities recommended for closure or consolidation (combined) 
        under any plan or report to which this subsection applies, the 
        number of such facilities that are within the K or L cost 
        ascertainment grouping (combined) shall account for not more 
        than 10 percent of such total number.
            (3) References.--For purposes of this subsection--
                    (A) any reference to a ``cost ascertainment 
                grouping'' shall be considered to refer to a cost 
                ascertainment grouping as described in section 123.11 
                of the Postal Operations Manual (as in effect on June 
                23, 2011); and
                    (B) any reference to a particular category 
                (designated by a letter) of a cost ascertainment 
                grouping shall be considered to refer to such category, 
                as described in such section 123.11 (as in effect on 
                the date specified in subparagraph (A)).
    (f) Annual Reports.--
            (1) In general.--There shall be included in the next 5 
        annual reports submitted under section 2402 of title 39, United 
        States Code, beginning with the report covering any period of 
        time occurring after the date of enactment of this Act, the 
        following (shown on a State-by-State basis):
                    (A) In connection with closures and consolidations 
                taking effect in the year covered by the report, the 
                total number of individuals separated from employment 
                with the Postal Service, including, if separation 
                occurs in a year other than the year in which the 
                closing or consolidation occurs, the year in which 
                separation occurs.
                    (B) Of the total numbers under subparagraph (A)--
                            (i) the number and percentage comprising 
                        preference eligibles or veterans; and
                            (ii) the number and percentage comprising 
                        individuals other than preference eligibles or 
                        veterans.
                    (C) Of the total numbers under subparagraph (A), 
                the number and percentage reemployed in a position 
                within the general commuting area of the facility or 
                office involved (including, if reemployment occurs in a 
                year other than the year in which the closing or 
                consolidation occurs, the year in which reemployment 
                occurs)--
                            (i) with the Postal Service; or
                            (ii) with an employer other than the Postal 
                        Service.
                    (D) The methodology and assumptions used to derive 
                the estimates described in subparagraph (B).
                    (E) The criteria and process used to develop the 
                information described in subparagraph (C).
            (2) Definitions.--For purposes of this subsection--
                    (A) the term ``preference eligible'' has the 
                meaning given such term in section 2108(3) of title 5, 
                United States Code; and
                    (B) the term ``veteran'' has the meaning given such 
                term in section 101(2) of title 38, United States Code.

SEC. 105. IMPLEMENTATION OF CLOSURES AND CONSOLIDATIONS.

    (a) In General.--Subject to subsection (b), the Postal Service 
shall--
            (1) close or consolidate (as the case may be) the 
        facilities and offices recommended by the Commission in each of 
        its final reports under section 104(d)(3); and
            (2) carry out those closures and consolidations in 
        accordance with the timetable recommended by the Commission in 
        such report, except that in no event shall any such closure or 
        consolidation be completed later than 2 years after the date on 
        which such report is submitted to Congress.
    (b) Congressional Disapproval.--
            (1) In general.--The Postal Service may not carry out any 
        closure or consolidation recommended by the Commission in a 
        final report if a joint resolution disapproving the 
        recommendations of the Commission is enacted, in accordance 
        with section 106, before the earlier of--
                    (A) the end of the 45-day period beginning on the 
                date on which the Commission transmits those 
                recommendations to Congress under section 104(d)(3); or
                    (B) the adjournment of the Congress sine die for 
                the session during which such report is transmitted.
            (2) Days of session.--For purposes of paragraph (1) and 
        section 106, a day on which either House of Congress is not in 
        session because of an adjournment of more than 3 days to a day 
        certain shall be excluded in the computation of a period.

SEC. 106. CONGRESSIONAL CONSIDERATION OF FINAL CPR REPORTS.

    (a) Terms of the Resolution.--For purposes of this subtitle, the 
term ``joint resolution'', as used with respect to a report under 
section 104(d)(3), means only a joint resolution--
            (1) which has no preamble;
            (2) the title of which is as follows: ``Joint resolution 
        disapproving the recommendations of the Commission on Postal 
        Reorganization.'';
            (3) the matter after the resolving clause of which is as 
        follows: ``That Congress disapproves the recommendations of the 
        Commission on Postal Reorganization, submitted by such 
        Commission on __, and pertaining to the closure or 
        consolidation of __.'', the first blank space being filled in 
        with the appropriate date and the second blank space being 
        filled in with ``postal retail facilities'', ``mail processing 
        facilities'', or ``area and district offices'' (as the case may 
        be); and
            (4) which is introduced in accordance with subsection (b).
    (b) Introduction.--After a House of Congress receives a report 
under section 104(d)(3), the majority leader of that House (or a 
designee thereof) shall introduce (by request, if appropriate) a joint 
resolution with respect to such report within--
            (1) in the case of the House of Representatives, 3 
        legislative days; and
            (2) in the case of the Senate, 3 session days.
    (c) Consideration in the House of Representatives.--
            (1) Discharge.--Any committee of the House of 
        Representatives to which a joint resolution described in 
        subsection (a) is referred shall report it to the House, 
        without amendment, not later than the 10th legislative day 
        after the date of its introduction. If a committee fails to 
        report the joint resolution within that period, it shall be in 
        order to move that the House discharge such committee from 
        further consideration of the joint resolution. Such a motion 
        shall be in order only at a time designated by the Speaker in 
        the legislative schedule within 3 legislative days after the 
        day on which the proponent announces to the House an intention 
        to offer the motion. Notice may not be given on an anticipatory 
        basis. Such a motion shall not be in order after the House has 
        disposed of a motion to discharge such joint resolution. The 
        previous question shall be considered as ordered on the motion 
        to its adoption without intervening motion, except 20 minutes 
        of debate equally divided and controlled by the proponent and 
        an opponent. If such a motion is adopted, the House shall 
        proceed immediately to consider the joint resolution in 
        accordance with paragraph (3). A motion to reconsider the vote 
        by which the motion is disposed of shall not be in order.
            (2) Proceeding to consideration.--After the last committee 
        authorized to consider the joint resolution reports it to the 
        House or has been discharged (other than by motion pursuant to 
        paragraph (1)) from its consideration, it shall be in order to 
        move to proceed to consider that joint resolution in the House. 
        Such a motion shall be in order only at a time designated by 
        the Speaker in the legislative schedule within 3 legislative 
        days after the day on which the proponent announces to the 
        House an intention to offer the motion. Notice may not be given 
        on an anticipatory basis. Such a motion shall not be in order 
        after the House has disposed of a motion to proceed with 
        respect to that transmittal of recommendations. The previous 
        question shall be considered as ordered on the motion to its 
        adoption without intervening motion. A motion to reconsider the 
        vote by which the motion is disposed of shall not be in order.
            (3) Consideration.--The joint resolution shall be 
        considered as read. All points of order against a joint 
        resolution and against its consideration are waived. The 
        previous question shall be considered as ordered on a joint 
        resolution to its passage without intervening motion, except 5 
        hours of debate equally divided and controlled by the proponent 
        and an opponent and 1 motion to limit debate on the joint 
        resolution. A motion to reconsider the vote on passage of the 
        joint resolution shall not be in order.
            (4) Post sine die.--If the House has adopted a concurrent 
        resolution providing for adjournment sine die at the end of a 
        Congress, a motion to discharge under paragraph (1) or a motion 
        to proceed under paragraph (2) shall be in order, as 
        applicable.
    (d) Consideration in the Senate.--
            (1) Discharge.--If the committee of the Senate to which a 
        joint resolution described in subsection (a) is referred has 
        not reported such joint resolution within 10 session days, such 
        committee shall be discharged from further consideration of 
        such joint resolution, and such joint resolution shall be 
        placed on the appropriate calendar.
            (2) Proceeding to consideration.--On or after the 3rd 
        session day after the date on which the committee to which such 
        a joint resolution is referred has reported, or has been 
        discharged from further consideration of, such joint 
        resolution, it is in order (even though a previous motion to 
        the same effect has been disagreed to) for any Member of the 
        Senate to move to proceed to the consideration of the joint 
        resolution. A Member may make the motion only on the day after 
        the calendar day on which the Member announces the Member's 
        intention to make the motion. All points of order against the 
        joint resolution (and against consideration of the joint 
        resolution) are waived. The motion is privileged and is not 
        debatable. The motion is not subject to amendment, or to a 
        motion to postpone, or to a motion to proceed to the 
        consideration of other business. A motion to reconsider the 
        vote by which the motion is agreed to or disagreed to shall not 
        be in order. If a motion to proceed to the consideration of the 
        joint resolution is agreed to, the Senate shall immediately 
        proceed to consideration of the joint resolution without 
        intervening motion, order, or other business, and the joint 
        resolution shall remain the unfinished business of the Senate 
        until disposed of.
            (3) Debate.--Debate on the joint resolution and on all 
        debatable motions and appeals in connection therewith shall be 
        limited to not more than 8 hours, which shall be divided 
        equally between those favoring and those opposing the joint 
        resolution. An amendment to the joint resolution is not in 
        order. A motion further to limit debate is in order and not 
        debatable. A motion to postpone, or a motion to proceed to the 
        consideration of other business, or a motion to recommit the 
        joint resolution is not in order. A motion to reconsider the 
        vote by which the joint resolution is agreed to or disagreed to 
        is not in order.
            (4) Vote on final passage.--Immediately following the 
        conclusion of debate on a joint resolution described in 
        subsection (a) and a single quorum call at the conclusion of 
        the debate, if requested, the vote on final passage of the 
        joint resolution shall occur.
            (5) Appeals.--Appeals from the decisions of the Chair 
        relating to the application of the rules of the Senate to the 
        procedure relating to a joint resolution described in 
        subsection (a) shall be decided without debate.
    (e) Amendments Prohibited.--No amendment to, or motion to strike a 
provision from, a joint resolution considered under this section shall 
be in order in either the Senate or the House of Representatives.
    (f) Consideration by Other House.--
            (1) In general.--If, before the passage by 1 House of a 
        joint resolution of that House described in subsection (a), 
        that House receives from the other House such a joint 
        resolution with respect to the same recommendations, the 
        following procedures shall apply:
                    (A) No committee referral.--The joint resolution of 
                the other House shall not be referred to a committee.
                    (B) Joint resolution procedure.--With respect to a 
                joint resolution described in subsection (a) of the 
                House receiving the joint resolution, the procedure in 
                that House shall be the same as if no joint resolution 
                had been received from the other House, but the vote on 
                final passage shall be on the joint resolution of the 
                other House.
            (2) No consideration.--Upon disposition of the joint 
        resolution received from the other House, it shall no longer be 
        in order to consider the joint resolution that originated in 
        the receiving House under these procedures.
            (3) Exception.--This subsection shall not apply to the 
        House of Representatives if the joint resolution received from 
        the Senate is a revenue measure.
    (g) Rules of the Senate and House.--This section is enacted by 
Congress--
            (1) as an exercise of the rulemaking power of the Senate 
        and House of Representatives, respectively, and as such it is 
        deemed a part of the rules of each House, respectively, but 
        applicable only with respect to the procedure to be followed in 
        that House in the case of a joint resolution described in this 
        section, and it supersedes other rules only to the extent that 
        it is inconsistent with such rules; and
            (2) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.

SEC. 107. NONAPPEALABILITY OF DECISIONS.

    (a) To PRC.--The closing or consolidation of any facility or office 
under this subtitle may not be appealed to the Postal Regulatory 
Commission under section 404(d) or any other provision of title 39, 
United States Code, or be the subject of an advisory opinion issued by 
the Postal Regulatory Commission under section 3661 of such title.
    (b) Judicial Review.--No process, report, recommendation, or other 
action of the Commission on Postal Reorganization shall be subject to 
judicial review.

SEC. 108. RULES OF CONSTRUCTION.

    (a) Continued Availability of Authority To Close or Consolidate 
Postal Facilities.--
            (1) In general.--Nothing in this subtitle shall be 
        considered to prevent the Postal Service from closing or 
        consolidating any postal facilities, in accordance with 
        otherwise applicable provisions of law, either before or after 
        the implementation of any closures or consolidations under this 
        subtitle.
            (2) Coordination rule.--No appeal or determination under 
        section 404(d) of title 39, United States Code, or any other 
        provision of law shall delay, prevent, or otherwise affect any 
        closure or consolidation under this subtitle.
    (b) Inapplicability of Certain Provisions.--
            (1) In general.--The provisions of law identified in 
        paragraph (2)--
                    (A) shall not apply to any closure or consolidation 
                carried out under this subtitle; and
                    (B) shall not be taken into account for purposes of 
                carrying out section 103 or 104.
            (2) Provisions identified.--The provisions of law under 
        this paragraph are--
                    (A) section 101(b) of title 39, United States Code; 
                and
                    (B) section 404(d) of title 39, United States Code.

SEC. 109. GAO STUDY AND REPORT.

    (a) Study.--Not later than 1 year after the date of enactment of 
this Act, the Comptroller General of the United States shall conduct a 
study on the effects, with respect to the unemployment rate of minority 
communities, of the proposed closures and consolidations of postal 
retail facilities, mail processing facilities, and area or district 
offices under this subtitle.
    (b) Report.--Upon completion of the study required under subsection 
(a), the Comptroller General of the United States shall submit a report 
to Congress regarding the findings of such study.

                      Subtitle B--Other Provisions

SEC. 111. IMPLEMENTATION OF DISCRETIONARY NON-MAIL DELIVERY DAYS.

    (a) In General.--Section 404 is amended by inserting after 
subsection (e) the following:
    ``(f)(1) The Postmaster General may, with respect to any year for 
which 6-day delivery is otherwise required, declare up to 12 non-mail 
delivery days. Not later than 1 month before the beginning of the year, 
the Postmaster General shall submit to the Board of Governors a report 
listing the non-mail delivery days in such year.
    ``(2) A non-mail delivery day under this subsection shall be a day 
other than--
            ``(A) a Sunday;
            ``(B) a legal public holiday listed in section 6103(a) of 
        title 5 or any other day declared to be a holiday by Federal 
        statute or Executive order; or
            ``(C) during the 30-day period that ends on the date of a 
        regularly scheduled general election for Federal office.
    ``(3) Any day which is declared under this subsection to be a non-
mail delivery day--
            ``(A) shall, for purposes of mail delivery and such other 
        postal operations as the Postal Service may by regulation 
        prescribe, be treated as if it were a Sunday; except that
            ``(B) an employee of the Postal Service (other than one who 
        is prevented from working on such day by reason of this 
        subsection) shall be entitled to the same pay and benefits for 
        that day as if this subsection had not been enacted.
    ``(4)(A) The 6-day mail delivery requirement shall not apply with 
respect to a week in which a non-mail delivery day under this 
subsection occurs.
    ``(B) The authority to declare a non-mail delivery day under this 
subsection shall be considered to be within the right of the Postal 
Service to determine the methods, means, and personnel by which postal 
operations are to be conducted.
    ``(5) Not less than 6 months after the date of enactment of this 
subsection, the Postal Service may submit a proposal under section 3661 
for a nationwide change in service to reduce mail delivery from 6 days 
to 5 days each week. Notwithstanding any other provision of law, the 
Postal Service shall maintain 6-day delivery service as the standard 
mail delivery schedule until 90 days following the rendering of an 
advisory opinion on 5-day delivery by the Postal Regulatory 
Commission.''.

SEC. 112. EFFICIENT AND FLEXIBLE UNIVERSAL POSTAL SERVICE.

    (a) Postal Policy.--
            (1) In general.--Section 101(b) is amended to read as 
        follows:
    ``(b) The Postal Service shall provide effective and regular postal 
services to rural areas, communities, and small towns where post 
offices are not self-sustaining.''.
            (2) Conforming amendments.--Clause (iii) of section 
        404(d)(2)(A) is amended to read as follows:
                    ``(iii) whether such closing or consolidation is 
                consistent with the policy of the Government, as stated 
                in section 101(b), that the Postal Service shall 
                provide effective and regular postal services to rural 
                areas, communities, and small towns where post offices 
                are not self-sustaining;''.
    (b) General Duty.--Paragraph (3) of section 403(b) is amended to 
read as follows:
            ``(3) to ensure that postal patrons throughout the Nation 
        will, consistent with reasonable economies of postal 
        operations, have ready access to essential postal services.''.
    (c) PRC Review of Determinations To Close or Consolidate a Post 
Office.--
            (1) Deadline for review.--Section 404(d)(5) is amended by 
        striking ``120 days'' and inserting ``60 days''.
            (2) Exclusion from review.--Section 404(d) is amended by 
        adding at the end the following:
    ``(7)(A) The appeals process set forth in paragraph (5) shall not 
apply to a determination of the Postal Service to close a post office 
if there is located, within 2 miles of such post office, a qualified 
contract postal unit.
    ``(B) For purposes of this paragraph--
            ``(i) the term `contract postal unit' means a store or 
        other place of business which--
                    ``(I) is not owned or operated by the Postal 
                Service; and
                    ``(II) in addition to its usual operations, 
                provides postal services to the general public under 
                contract with the Postal Service; and
            ``(ii) the term `qualified contract postal unit', as used 
        in connection with a post office, means a contract postal unit 
        which--
                    ``(I) begins to provide postal services to the 
                general public during the period--
                            ``(aa) beginning 1 year before the date on 
                        which the closure or consolidation of such post 
                        office is scheduled to take effect; and
                            ``(bb) ending on the 15th day after the 
                        date on which the closure or consolidation of 
                        such post office is scheduled to take effect; 
                        and
                    ``(II) has not, pursuant to subparagraph (A), 
                served as the basis for exempting any other post office 
                from the appeals process set forth in paragraph (5).
    ``(C)(i) If the contract postal unit (which is providing postal 
services that had been previously provided by the post office that was 
closed) 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, the contract postal unit 
shall be subject to a closure determination by the Postal Service to 
decide whether a post office must be reopened within the area 
(delimited by the 2-mile radius referred to in subparagraph (A)).
    ``(ii) A decision under clause (i) not to reopen a post office may 
be appealed to the Postal Regulatory Commission under procedures which 
the Commission shall by regulation prescribe. Such procedures shall be 
based on paragraph (5), except that, for purposes of this clause, 
paragraph (5)(C) shall be applied by substituting `in violation of 
section 101(b), leaving postal patrons without effective and regular 
access to postal services' for `unsupported by substantial evidence on 
the record'.''.
            (3) Applicability.--The amendments made by this subsection 
        shall not apply with respect to any appeal, notice of which is 
        received by the Postal Regulatory Commission before the date of 
        the enactment of this Act (determined applying the rules set 
        forth in section 404(d)(6) of title 39, United States Code).
    (d) Expedited Procedures.--
            (1) In general.--Section 3661 is amended by adding at the 
        end the following:
    ``(d)(1) The Commission shall issue its opinion within 90 days 
after the receipt of any proposal (as referred to in subsection (b)) 
concerning--
            ``(A) the closing or consolidation of postal retail 
        facilities (as that term is defined in section 102(2) of the 
        Postal Reform Act of 2012) to a degree that will generally 
        affect service on a nationwide or substantially nationwide 
        basis; or
            ``(B) an identical or substantially identical proposal on 
        which the Commission issued an opinion within the preceding 5 
        years.
    ``(2) If necessary in order to comply with the 90-day requirement 
under paragraph (1), the Commission may apply expedited procedures 
which the Commission shall by regulation prescribe.''.
            (2) Regulations.--The Postal Regulatory Commission shall 
        prescribe any regulations necessary to carry out the amendment 
        made by paragraph (1) within 90 days after the date of the 
        enactment of this Act.
            (3) Applicability.--The amendment made by this subsection 
        shall apply with respect to any proposal received by the Postal 
        Regulatory Commission on or after the earlier of--
                    (A) the 90th day after the date of the enactment of 
                this Act; or
                    (B) the effective date of the regulations under 
                paragraph (2).

SEC. 113. ENHANCED REPORTING ON POSTAL SERVICE EFFICIENCY.

    Section 3652(a) is amended--
            (1) in paragraph (1), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding after paragraph (2) the following:
            ``(3) which shall provide the overall change in Postal 
        Service productivity and the resulting effect of such change on 
        overall Postal Service costs during such year, using such 
        methodologies as the Commission shall by regulation 
        prescribe.''.

SEC. 114. APPLICABILITY OF PROCEDURES RELATING TO CLOSURES AND 
              CONSOLIDATIONS.

    (a) In General.--Section 404(d) is amended by adding after 
paragraph (7) (as added by section 112(c)(2)) the following:
    ``(8) For purposes of this subsection, the term `post office' means 
a post office and any other facility described in section 102(2) of the 
Postal Reform Act of 2012.''.
    (b) Effective Date.--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.

   TITLE II--POSTAL SERVICE FINANCIAL RESPONSIBILITY AND MANAGEMENT 
                          ASSISTANCE AUTHORITY

               Subtitle A--Establishment and Organization

SEC. 201. PURPOSES.

    (a) Purposes.--The purposes of this title are as follows:
            (1) To eliminate budget deficits and cash shortages of the 
        Postal Service through strategic financial planning, sound 
        budgeting, accurate revenue forecasts, and careful spending.
            (2) To ensure the universal service mandate detailed in 
        section 101 of title 39, United States Code, is maintained 
        during a period of fiscal emergency.
            (3) To conduct necessary investigations and studies to 
        determine the fiscal status and operational efficiency of the 
        Postal Service.
            (4) To assist the Postal Service in--
                    (A) restructuring its organization and workforce to 
                bring expenses in line with diminishing revenue and 
                generate sufficient profits for capital investment and 
                repayment of debt;
                    (B) meeting all fiscal obligations to the Treasury 
                of the United States; and
                    (C) ensuring the appropriate and efficient delivery 
                of postal services.
            (5) To provide the Postal Service with a temporary increase 
        in its borrowing authority to enable the Postal Service to 
        complete necessary restructuring.
            (6) To ensure the long-term financial, fiscal, and economic 
        vitality and operational efficiency of the Postal Service.
    (b) Reservation of Powers.--Nothing in this title may be 
construed--
            (1) to relieve any obligations existing as of the date of 
        the enactment of this Act of the Postal Service to the Treasury 
        of the United States; or
            (2) to limit the authority of Congress to exercise ultimate 
        legislative authority over the Postal Service.

SEC. 202. ESTABLISHMENT OF THE AUTHORITY.

    (a) Establishment.--There shall be established, upon the 
commencement of any control period, an entity to be known as the 
``Postal Service Financial Responsibility and Management Assistance 
Authority'' (hereinafter in this title referred to as the 
``Authority'').
    (b) Control Period.--
            (1) Commencement of a control period.--
                    (A) In general.--For the purposes of this title, a 
                control period commences whenever the Postal Service 
                has been in default to the Treasury of the United 
                States, with respect to any debts, obligations, loans, 
                bonds, notes, or other form of borrowing, or any 
                scheduled payments to any fund in the Treasury of the 
                United States, for a period of at least 30 days.
                    (B) Advisory period.--For purposes of the first 
                control period, the Authority shall operate exclusively 
                in an advisory period for two full fiscal years after 
                the commencement of the control period. At the 
                completion of the second full fiscal year or any year 
                thereafter during the length of the control period, if 
                the Postal Service's annual deficit is greater than 
                $2,000,000,000, the Authority shall be fully in force 
                according to the provisions of this title. During an 
                advisory period--
                            (i) the Authority is not authorized to 
                        employ any staff and the Postal Service shall 
                        designate a Level-Two Postal Service Executive 
                        as a liaison with the members of the Authority;
                            (ii) any provision of this title that 
                        requires the Authority or the Postal Service to 
                        take any action shall be considered only to 
                        take effect in the event the Authority comes 
                        into full force and that effective date shall 
                        be considered to be the date of the 
                        commencement of the control period for the 
                        purposes any provision not mention in this 
                        subparagraph; and
                            (iii) the Postal Service shall have access 
                        to the funds available under section 222 
                        according to applicable provisions of this Act, 
                        subject to the approval of the Postal Service 
                        Board of Governors without the approval of the 
                        Authority.
            (2) Treatment of authorities and responsibilities of the 
        board of governors, etc. during a control period.--During a 
        control period--
                    (A) all authorities and responsibilities of the 
                Board of Governors, and the individual Governors, of 
                the Postal Service under title 39, United States Code, 
                and any other provision of law shall be assumed by the 
                Authority; and
                    (B) the Board of Governors, and the individual 
                Governors, may act in an advisory capacity only.
            (3) Treatment of certain postal service executives during a 
        control period.--
                    (A) Definition.--For the purposes of this section, 
                the term ``Level-Two Postal Service Executive'' 
                includes the Postmaster General, the Deputy Postmaster 
                General, and all other officers or employees of the 
                Postal Service in level two of the Postal Career 
                Executive Service (or the equivalent).
                    (B) Treatment.--Notwithstanding any other provision 
                of law or employment contract, during a control 
                period--
                            (i) all Level-Two Postal Service Executives 
                        shall serve at the pleasure of the Authority;
                            (ii) the duties and responsibilities of all 
                        Level-Two Postal Service Executives, as well as 
                        the terms and conditions of their employment 
                        (including their compensation), shall be 
                        subject to determination or redetermination by 
                        the Authority;
                            (iii) total compensation of a Level-Two 
                        Postal Service Executive may not, for any year 
                        in such control period, exceed the annual rate 
                        of basic pay payable for level I of the 
                        Executive Schedule under section 5312 of title 
                        5, United States Code, for such year; for 
                        purposes of this clause, the term ``total 
                        compensation'' means basic pay, bonuses, 
                        awards, and all other monetary compensation;
                            (iv) the percentage by which the rate of 
                        basic pay of a Level-Two Postal Service 
                        Executive is increased during any year in such 
                        control period may not exceed the percentage 
                        change in the Consumer Price Index for All 
                        Urban Consumers, unadjusted for seasonal 
                        variation, for the most recent 12-month period 
                        available, except that, in the case of a Level-
                        Two Postal Service Executive who has had a 
                        significant change in job responsibilities, a 
                        greater change shall be allowable if approved 
                        by the Authority;
                            (v) apart from basic pay, a Level-Two 
                        Postal Service Executive may not be afforded 
                        any bonus, award, or other monetary 
                        compensation for any fiscal year in the control 
                        period if expenditures of the Postal Service 
                        for such fiscal year exceeded revenues of the 
                        Postal Service for such fiscal year (determined 
                        in accordance with generally accepted 
                        accounting principles); and
                            (vi) no deferred compensation may be paid, 
                        accumulated, or recognized in the case of any 
                        Level-Two Postal Service Executive, with 
                        respect to any year in a control period, which 
                        is not generally paid, accumulated, or 
                        recognized in the case of employees of the 
                        United States (outside of the Postal Service) 
                        in level I of the Executive Schedule under 
                        section 5312 of title 5, United States Code, 
                        with respect to such year.
                    (C) Bonus authority.--Section 3686 of title 39, 
                United States Code, shall, during the period beginning 
                on the commencement date of the control period and 
                ending on the termination date of the control period--
                            (i) be suspended with respect to all Level-
                        Two Postal Service Executives; but
                            (ii) remain in effect for all other 
                        officers and employees of the Postal Service 
                        otherwise covered by this section.
            (4) Termination of a control period.--A control period 
        terminates upon certification by the Authority, with the 
        concurrence of the Secretary of the Treasury and the Director 
        of the Office of Personnel Management, that--
                    (A) for 2 consecutive fiscal years (occurring after 
                the date of the enactment of this Act), expenditures of 
                the Postal Service did not exceed revenues of the 
                Postal Service (as determined in accordance with 
                generally accepted accounting principles);
                    (B) the Authority has approved a Postal Service 
                financial plan and budget that shows expenditures of 
                the Postal Service not exceeding revenues of the Postal 
                Service (as so determined) for the fiscal year to which 
                such budget pertains and each of the next 3 fiscal 
                years; and
                    (C) the Postal Service financial plan and budget 
                (as referred to in subparagraph (B)) includes plans--
                            (i) for the repayment of any supplementary 
                        debt under section 222, in equal annual 
                        installments over a period of not more than 5 
                        years; and
                            (ii) to properly fund Postal Service 
                        pensions and retiree health benefits in 
                        accordance with law.

SEC. 203. MEMBERSHIP AND QUALIFICATION REQUIREMENTS.

    (a) Membership.--
            (1) In general.--The Authority shall consist of 5 members 
        appointed by the President who meet the qualifications 
        described in subsection (b), except that the Authority may take 
        any action under this title at any time after the President has 
        appointed 4 of its members.
            (2) Recommendations.--Of the 5 members so appointed--
                    (A) 1 shall be appointed from among individuals 
                recommended by the Speaker of the House of 
                Representatives;
                    (B) 1 shall be appointed from among individuals 
                recommended by the majority leader of the Senate;
                    (C) 1 shall be appointed from among individuals 
                recommended by the minority leader of the House of 
                Representatives;
                    (D) 1 shall be appointed from among individuals 
                recommended by the minority leader of the Senate; and
                    (E) 1 shall be appointed from among individuals 
                recommended by the Comptroller General.
            (3) Political affiliation.--No more than 3 members of the 
        Authority may be of the same political party.
            (4) Chair.--The President shall designate 1 of the members 
        of the Authority as the Chair of the Authority.
            (5) Sense of congress regarding deadline for appointment.--
        It is the sense of Congress that the President should appoint 
        the members of the Authority as soon as practicable after the 
        date on which a control period commences, but no later than 30 
        days after such date.
            (6) Term of service.--
                    (A) In general.--Except as provided in subparagraph 
                (B), each member of the Authority shall be appointed 
                for a term of 3 years.
                    (B) Appointment for term following initial term.--
                As designated by the President at the time of 
                appointment for the term immediately following the 
                initial term, of the members appointed for the term 
                immediately following the initial term--
                            (i) 1 member shall be appointed for a term 
                        of 1 year;
                            (ii) 2 members shall be appointed for a 
                        term of 2 years; and
                            (iii) 2 members shall be appointed for a 
                        term of 3 years.
                    (C) Removal.--The President may remove any member 
                of the Authority only for cause.
                    (D) No compensation for service.--Members of the 
                Authority shall serve without pay, but may receive 
                reimbursement for any reasonable and necessary expenses 
                incurred by reason of service on the Authority.
    (b) Qualification Requirements.--
            (1) In general.--An individual meets the qualifications for 
        membership on the Authority if the individual--
                    (A) has significant knowledge and expertise in 
                finance, management, and the organization or operation 
                of businesses having more than 500 employees; and
                    (B) represents the public interest generally, is 
                not a representative of specific interests using or 
                belonging to the Postal Service, and does not have any 
                business or financial interest in any enterprise in the 
                private sector of the economy engaged in the delivery 
                of mail matter.
            (2) Specific conditions.--An individual shall not be 
        considered to satisfy paragraph (1)(B) if, at any time during 
        the 5-year period ending on the date of appointment, such 
        individual--
                    (A) has been an officer, employee, or private 
                contractor with the Postal Service or the Postal 
                Regulatory Commission; or
                    (B) has served as an employee or contractor of a 
                labor organization representing employees of the Postal 
                Service or the Postal Regulatory Commission.

SEC. 204. ORGANIZATION.

    (a) Adoption of By-Laws for Conducting Business.--As soon as 
practicable after the appointment of its members, the Authority shall 
adopt by-laws, rules, and procedures governing its activities under 
this title, including procedures for hiring experts and consultants. 
Upon adoption, such by-laws, rules, and procedures shall be submitted 
by the Authority to the Postmaster General, the President, and 
Congress.
    (b) Certain Activities Requiring Approval of Majority of Members.--
Under its by-laws, the Authority may conduct its operations under such 
procedures as it considers appropriate, except that an affirmative vote 
of a majority of the members of the Authority shall be required in 
order for the Authority to--
            (1) approve or disapprove a financial plan and budget as 
        described by subtitle C;
            (2) implement recommendations on financial stability and 
        management responsibility under section 226;
            (3) take any action under authority of section 
        202(b)(3)(B)(i); or
            (4) initiate the establishment of a new workers' 
        compensation system for the Postal Service in accordance with 
        section 311.

SEC. 205. EXECUTIVE DIRECTOR AND STAFF.

    (a) Executive Director.--The Authority shall have an Executive 
Director who shall be appointed by the Chair with the consent of the 
Authority. The Executive Director shall be paid at a rate determined by 
the Authority, except that such rate may not exceed the rate of basic 
pay payable for level IV of the Executive Schedule under section 5315 
of title 5, United States Code.
    (b) Staff.--With the approval of the Authority, the Executive 
Director may appoint and fix the pay of such additional personnel as 
the Executive Director considers appropriate, except that no individual 
appointed by the Executive Director may be paid at a rate greater than 
the rate of pay for the Executive Director. Personnel appointed under 
this subsection shall serve at the pleasure of the Executive Director.
    (c) Inapplicability of Certain Civil Service Laws.--The Executive 
Director and staff of the Authority may be appointed without regard to 
the provisions of title 5, United States Code, governing appointments 
in the competitive service, and paid without regard to the provisions 
of chapter 51 and subchapter III of chapter 53 of such title relating 
to classification and General Schedule pay rates.
    (d) Staff of Federal Agencies.--Upon request of the Chair, the head 
of any Federal department or agency may detail, on a reimbursable or 
nonreimbursable basis, any of the personnel of such department or 
agency to the Authority to assist it in carrying out its duties under 
this title.

SEC. 206. FUNDING.

    (a) In General.--There are authorized to be appropriated, out of 
the Postal Service Fund, such sums as may be necessary for the 
Authority. In requesting an appropriation under this section for a 
fiscal year, the Authority shall prepare and submit to the Congress 
under section 2009 of title 39, United States Code, a budget of the 
Authority's expenses, including expenses for facilities, supplies, 
compensation, and employee benefits not to exceed $10,000,000. In years 
in which a control period commences, the Authority shall submit a 
budget within 30 days of the appointment of the members of the 
Authority.
    (b) Amendment to Section 2009.--Section 2009 is amended in the next 
to last sentence--
            (1) by striking ``, and (3)'' and inserting ``, (3)''; and
            (2) by striking the period and inserting ``, and (4) the 
        Postal Service Financial Responsibility and Management 
        Assistance Authority requests to be appropriated, out of the 
        Postal Service Fund, under section 206 of the Postal Reform Act 
        of 2012.''.

                  Subtitle B--Powers of the Authority

SEC. 211. POWERS.

    (a) Powers of Members and Agents.--Any member or agent of the 
Authority may, if authorized by the Authority, take any action which 
the Authority is authorized by this section to take.
    (b) Obtaining Official Data From the Postal Service.--
Notwithstanding any other provision of law, the Authority may secure 
copies of such records, documents, information, or data from any entity 
of the Postal Service necessary to enable the Authority to carry out 
its responsibilities under this title. At the request of the Authority, 
the Authority shall be granted direct access to such information 
systems, records, documents, information, or data as will enable the 
Authority to carry out its responsibilities under this title. The head 
of the relevant entity of the Postal Service shall provide the 
Authority with such information and assistance (including granting the 
Authority direct access to automated or other information systems) as 
the Authority requires under this subsection.
    (c) Gifts, Bequests, and Devises.--The Authority may accept, use, 
and dispose of gifts, bequests, or devises of services or property, 
both real and personal, for the purpose of aiding or facilitating the 
work of the Authority. Gifts, bequests, or devises of money and 
proceeds from sales of other property received as gifts, bequests, or 
devises shall be deposited in such account as the Authority may 
establish and shall be available for disbursement upon order of the 
Chair.
    (d) Administrative Support Services.--Upon the request of the 
Authority, the Administrator of General Services may provide to the 
Authority, on a reimbursable basis, the administrative support services 
necessary for the Authority to carry out its responsibilities under 
this title.
    (e) Authority To Enter Into Contracts.--The Executive Director may 
enter into such contracts as the Executive Director considers 
appropriate (subject to the approval of the Chair) to carry out the 
Authority's responsibilities under this title.
    (f) Civil Actions To Enforce Powers.--The Authority may seek 
judicial enforcement of its authority to carry out its responsibilities 
under this title.
    (g) Penalties.--
            (1) Administrative discipline.--Any officer or employee of 
        the Postal Service who, by action or inaction, fails to comply 
        with any directive or other order of the Authority under 
        section 226(c) shall be subject to appropriate administrative 
        discipline, including suspension from duty without pay or 
        removal from office, by order of either the Postmaster General 
        or the Authority.
            (2) Reporting requirement.--Whenever an officer or employee 
        of the Postal Service takes or fails to take any action which 
        is noncompliant with any directive or other order of the 
        Authority under section 226(c), the Postmaster General shall 
        immediately report to the Authority all pertinent facts, 
        together with a statement of any actions taken by the 
        Postmaster General or proposed by the Postmaster General to be 
        taken under paragraph (1).
    (h) Sense of Congress.--It is the sense of Congress that, in making 
determinations that affect prior collective bargaining agreements and 
prior agreements on workforce reduction, any rightsizing effort within 
the Postal Service that results in a decrease in the number of postal 
employees should ensure that such employees can receive their full 
pensions, are fully compensated, and that the collective bargaining 
agreements and prior agreements on workforce reduction that they 
entered into with Postal Service management are fully honored.

SEC. 212. EXEMPTION FROM LIABILITY FOR CLAIMS.

    The Authority and its members may not be liable for any obligation 
of or claim against the Postal Service resulting from actions taken to 
carry out this title.

SEC. 213. TREATMENT OF ACTIONS ARISING UNDER THIS TITLE.

    (a) Jurisdiction Established in United States Court of Appeals for 
the District of Columbia Circuit.--A person (including the Postal 
Service) adversely affected or aggrieved by an order or decision of the 
Authority may, within 30 days after such order or decision becomes 
final, institute proceedings for review thereof by filing a petition in 
the United States Court of Appeals for the District of Columbia 
Circuit. The court shall review the order or decision in accordance 
with section 706 of title 5, United States Code, and chapter 158 and 
section 2112 of title 28, United States Code. Judicial review shall be 
limited to the question of whether the Authority acted in excess of its 
statutory authority, and determinations of the Authority with respect 
to the scope of its statutory authority shall be upheld if based on a 
permissible construction of the statutory authority.
    (b) Prompt Appeal to the Supreme Court.--Notwithstanding any other 
provision of law, review by the Supreme Court of the United States of a 
decision of the Court of Appeals which is issued pursuant to subsection 
(a) may be had only if the petition for such review is filed within 10 
days after the entry of such decision.
    (c) Timing of Relief.--No order of any court granting declaratory 
or injunctive relief against the Authority, including relief permitting 
or requiring the obligation, borrowing, or expenditure of funds, shall 
take effect during the pendency of the action before such court, during 
the time appeal may be taken, or (if appeal is taken) during the period 
before the court has entered its final order disposing of such action.
    (d) Expedited Consideration.--It shall be the duty of the United 
States Court of Appeals for the District of Columbia and the Supreme 
Court of the United States to advance on the docket and to expedite to 
the greatest possible extent the disposition of any matter brought 
under subsection (a).

SEC. 214. DELIVERY POINT MODERNIZATION.

    (a) Definitions.--For purposes of this section--
            (1) the term ``delivery point'' means a mailbox or other 
        receptacle to which mail is delivered;
            (2) the term ``primary mode of delivery'' means the typical 
        method by which the Postal Service delivers letter mail to the 
        delivery point of a postal patron;
            (3) the term ``door delivery'' means a primary mode of mail 
        delivery whereby mail is placed into a slot or receptacle at or 
        near the postal patron's door or is hand delivered to a postal 
        patron, but does not include curbside or centralized delivery;
            (4) the term ``centralized delivery'' means a primary mode 
        of mail delivery whereby mail receptacles are grouped or 
        clustered at a single location; and
            (5) the term ``curbside delivery'' means a primary mode of 
        mail delivery whereby a mail receptacle is situated at the edge 
        of a roadway or curb.
    (b) Reduction in Total Number of Delivery Points.--The Authority 
shall, during the first control period commencing under this title, 
take such measures as may be necessary and appropriate so that--
            (1) in each fiscal year beginning at least 2 years after 
        the commencement date of such first control period--
                    (A) the total number of delivery points for which 
                door delivery is the primary mode of mail delivery does 
                not exceed 25 percent of the corresponding number for 
                the fiscal year last ending before such commencement 
                date; and
                    (B) the total annual costs attributable to door 
                delivery, centralized delivery, and curbside delivery 
                combined will be at least $3,500,000,000 less than the 
                corresponding total annual costs for the fiscal year 
                last ending before such commencement date; and
            (2) in each fiscal year beginning at least 4 years after 
        the commencement date of such first control period, the total 
        number of delivery points for which door delivery is the 
        primary mode of mail delivery does not exceed 10 percent of the 
        corresponding number for the fiscal year last ending before 
        such commencement date.
In making any decision under this subsection involving the continuation 
or termination of door delivery with respect to any locality or 
addresses within a locality, the Authority shall consider rates of 
poverty, population density, historical value, whether such locality is 
in a registered historic district (as that term is defined in section 
47(c)(3)(B) of the Internal Revenue Code of 1986), whether such address 
is another place on the National Register of Historic Places, and other 
appropriate factors.
    (c) Order of Precedence.--In order to carry out subsection (b)--
            (1) in making conversions from door delivery to other 
        primary modes of delivery--
                    (A) conversion shall be to centralized delivery; 
                except
                    (B) if subparagraph (A) is impractical, conversion 
                shall be to curbside delivery; and
            (2) in the case of delivery points established after the 
        commencement date of the first control period under this 
        title--
                    (A) centralized delivery shall be the primary mode 
                of delivery; except
                    (B) if subparagraph (A) is impractical, curbside 
                delivery shall be the primary mode of delivery.
    (d) Waiver for Physical Hardship.--The Postal Service shall 
establish and maintain a waiver program under which, upon application, 
door delivery may be continued or provided in any case in which--
            (1) centralized or curbside delivery would, but for this 
        subsection, otherwise be the primary mode of delivery; and
            (2) door delivery is necessary in order to avoid causing 
        significant physical hardship to a postal patron.
    (e) Centralized Delivery Placement.--It is the sense of the 
Congress that the Postal Service should negotiate with State and local 
governments, businesses, local associations, and property owners to 
place centralized delivery units in locations that maximize delivery 
efficiency, ease of use for postal patrons, and respect for private 
property rights.
    (f) Voucher Program.--
            (1) In general.--The Postal Service may, in accordance with 
        such standards and procedures as the Postal Service shall by 
        regulation prescribe, provide for a voucher program under 
        which--
                    (A) 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; and
                    (B) the Postal Service Competitive Products Fund is 
                made available for that purpose.
            (2) Conforming amendment.--Section 2011(a)(2) is amended--
                    (A) in subparagraph (A), by striking ``and'' after 
                the semicolon;
                    (B) in subparagraph (B), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(C) vouchers under the program described in section 
        214(f)(1) of the Postal Reform Act of 2012.''.
    (g) Audits.--
            (1) In general.--The Inspector General of the United States 
        Postal Service--
                    (A) shall conduct an annual audit to determine 
                whether the Postal Service is in compliance with the 
                requirements of subsection (b); and
                    (B) shall make such recommendations as the 
                Inspector General considers appropriate to improve the 
                administration of such subsection.
            (2) Submission.--The audit and recommendations under 
        paragraph (1) shall be submitted by the Inspector General to--
                    (A) the Committee on Oversight and Government 
                Reform of the House of Representatives; and
                    (B) the Committee on Homeland Security and 
                Governmental Affairs of the Senate.
            (3) Information.--Upon request, the Postal Service shall 
        furnish such information as the Inspector General may require 
        in order to carry out this subsection.
    (h) Savings Report.--
            (1) In general.--In the event that a reduction in door 
        delivery points is required under this section, the Authority 
        shall submit a report to Congress, not later than 1 year after 
        the date on which such reductions commence, describing the cost 
        savings realized to the date of such submission and the 
        estimated additional cost savings anticipated as a result of 
        such reductions occurring after such submission. The report 
        shall include--
                    (A) the measures taken to achieve the realized 
                savings and the assumptions and methodologies used to 
                compute the estimated cost savings; and
                    (B) information with respect to what additional 
                measures might be necessary to achieve the cost savings 
                required under this section.
            (2) Reduction limitation.--Notwithstanding any other 
        provision of this Act, if the Authority determines that the 
        measures described pursuant to subparagraphs (A) and (B) of 
        paragraph (1) are not feasible, not cost effective, or 
        otherwise detrimental to the mail delivery policy of the Postal 
        Service, the Authority shall submit a report to Congress 
        stating any legislative changes recommended for door delivery 
        modernization procedures under this section, including 
        increasing flexibility of this section's requirements or the 
        postponement of further conversion.

Subtitle C--Establishment and Enforcement of Financial Plan and Budget 
                         for the Postal Service

SEC. 221. DEVELOPMENT OF FINANCIAL PLAN AND BUDGET FOR THE POSTAL 
              SERVICE.

    (a) Development of Financial Plan and Budget.--For each fiscal year 
for which the Postal Service is in a control period, the Postmaster 
General shall develop and submit to the Authority a financial plan and 
budget for the Postal Service in accordance with this section.
    (b) Contents of Financial Plan and Budget.--A financial plan and 
budget for the Postal Service for a fiscal year shall specify the 
budget for the Postal Service as required by section 2009 of title 39, 
United States Code, for the applicable fiscal year and the next 3 
fiscal years, in accordance with the following requirements:
            (1) The financial plan and budget shall meet the 
        requirements described in subsection (c) to promote the 
        financial stability of the Postal Service.
            (2) The financial plan and budget shall--
                    (A) include the Postal Service's annual budget 
                program (under section 2009 of title 39, United States 
                Code) and the Postal Service's plan commonly referred 
                to as its ``Integrated Financial Plan'';
                    (B) describe lump-sum expenditures by all 
                categories traditionally used by the Postal Service;
                    (C) describe capital expenditures (together with a 
                schedule of projected capital commitments and cash 
                outlays of the Postal Service and proposed sources of 
                funding);
                    (D) contain estimates of overall debt (both 
                outstanding and anticipated to be issued); and
                    (E) contain cash flow and liquidity forecasts for 
                the Postal Service at such intervals as the Authority 
                may require.
            (3) The financial plan and budget shall include a statement 
        describing methods of estimations and significant assumptions.
            (4) The financial plan and budget shall include any other 
        provisions and shall meet such other criteria as the Authority 
        considers appropriate to meet the purposes of this title, 
        including provisions for--
                    (A) changes in personnel policies and levels for 
                each component of the Postal Service; and
                    (B) management initiatives to promote productivity, 
                improvement in the delivery of services, or cost 
                savings.
    (c) Requirements To Promote Financial Stability.--
            (1) In general.--The requirements to promote the financial 
        stability of the Postal Service applicable to the financial 
        plan and budget for a fiscal year are as follows:
                    (A) In each fiscal year (following the first full 
                fiscal year) in a control period, budgeted expenditures 
                of the Postal Service for the fiscal year involved may 
                not exceed budgeted revenues of the Postal Service for 
                the fiscal year involved.
                    (B) In each fiscal year in a control period, the 
                Postal Service shall make continuous, substantial 
                progress towards long-term fiscal solvency and shall 
                have substantially greater net income than in the 
                previous fiscal year.
                    (C) The Postal Service shall provide for the 
                orderly liquidation of any supplementary debt under 
                section 222.
                    (D) The financial plan and budget shall assure the 
                continuing long-term financial stability 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.
            (2) Application of sound budgetary practices.--In meeting 
        the requirement described in paragraph (1) with respect to a 
        financial plan and budget for a fiscal year, the Postal Service 
        shall apply sound budgetary practices, including reducing costs 
        and other expenditures, improving productivity, increasing 
        revenues, or a combination of such practices.
            (3) Assumptions based on current law.--In meeting the 
        requirements described in paragraph (1) with respect to a 
        financial plan and budget for a fiscal year, the Postal Service 
        shall base estimates of revenues and expenditures on Federal 
        law as in effect at the time of the preparation of such 
        financial plan and budget.

SEC. 222. SUPPLEMENTARY BORROWING AUTHORITY DURING A CONTROL PERIOD.

    (a) In General.--Upon the commencement of a 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) of title 
39, United States Code, 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 $10,000,000,000. The 
authorization to issue obligations under this section shall extend for 
a period of not more than 10 years beginning on the date of 
commencement of a control period, as described in section 202(b). At 
the end of such a 10-year period, the Postal Service shall dispose of 
real property of the Postal Service generating sufficient proceeds to 
repay any outstanding obligation incurred under this subsection in its 
entirety.
    (b) Exclusion.--The last sentence of section 2005(a)(1) of title 
39, United States Code, shall not apply with respect to any amounts 
borrowed or obligations issued or sold under authority of this section 
(which, but for subsection (a), would not otherwise have been 
allowable).
    (c) Deposit.--Any amounts received under this section shall be 
deposited in the Postal Service Fund.
    (d) Collateral.--For the purposes of funds acquired under 
subsection (a), the Postal Service shall provide an appropriate level 
of collateral in the form of pledged Postal Service property assets. 
For each fiscal year in which there remain funds made available to the 
Postal Service under subsection (a), the Postal Service shall dispose 
of real property equal to an amount that is at least 10 percent of the 
total funds obligated by the Postal Service under subsection (a), and 
the proceeds of such disposal shall be used to repay any outstanding 
obligation made by the Postal Service under subsection (a) in its 
entirety.

SEC. 223. PROCESS FOR SUBMISSION AND APPROVAL OF FINANCIAL PLAN AND 
              BUDGET.

    (a) In General.--For each fiscal year for which the Postal Service 
is in a control period, the Postmaster General shall submit to the 
Authority--
            (1) by February 1 before the start of such fiscal year, a 
        preliminary financial plan and budget under section 221 for 
        such fiscal year; and
            (2) by August 1 before the start of such fiscal year, a 
        final financial plan and budget under section 221 for such 
        fiscal year.
    (b) Review by Authority.--Upon receipt of a financial plan and 
budget under subsection (a) (whether preliminary or final), 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 under this subtitle.
    (c) Approval of Postmaster General's Financial Plan and Budget.--
            (1) In general.--If the Authority determines that the final 
        financial plan and budget for the fiscal year submitted by the 
        Postmaster General under subsection (a) meets the requirements 
        of section 221--
                    (A) the Authority shall approve the financial plan 
                and budget and shall provide the Postmaster General, 
                the President, and Congress with a notice certifying 
                its approval; and
                    (B) the Postmaster General shall promptly submit 
                the annual budget program to the Office of Management 
                and Budget pursuant to section 2009 of title 39, United 
                States Code.
            (2) Deemed approval after 30 days.--
                    (A) In general.--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 
                (d) 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, and 
                Congress with the notice certifying approval under 
                paragraph (1)(A).
                    (B) Explanation of failure to respond.--If 
                subparagraph (A) applies with respect to a financial 
                plan and budget, the Authority shall provide the 
                Postmaster General, the President and Congress with an 
                explanation for its failure to provide the notice 
                certifying approval or the statement of disapproval 
                during the 30-day period described in such 
                subparagraph.
    (d) Disapproval of Postmaster General's Budget.--If the Authority 
determines that the final financial plan and budget for the fiscal year 
submitted by the Postmaster General under subsection (a) does not meet 
the requirements applicable under section 221, the Authority shall 
disapprove the financial plan and budget, and shall provide the 
Postmaster General, the President, and Congress with a statement 
containing--
            (1) the reasons for such disapproval;
            (2) the amount of any shortfall in the budget or financial 
        plan; and
            (3) any recommendations for revisions to the budget the 
        Authority considers appropriate to ensure that the budget is 
        consistent with the financial plan and budget.
    (e) Authority Review of Postmaster General's Revised Final 
Financial Plan and Budget.--
            (1) Submission of postmaster general's revised final 
        financial plan and budget.--Not later than 15 days after 
        receiving the statement from the Authority under subsection 
        (d), the Postmaster General shall promptly adopt a revised 
        final financial plan and budget for the fiscal year which 
        addresses the reasons for the Authority's disapproval cited in 
        the statement, and shall submit such financial plan and budget 
        to the Authority.
            (2) Approval of postmaster general's revised final 
        financial plan and budget.--If, after reviewing the revised 
        final financial plan and budget for a fiscal year submitted by 
        the Postmaster General under paragraph (1) in accordance with 
        the procedures described in this section, the Authority 
        determines that the revised final financial plan and budget 
        meets the requirements applicable under section 221--
                    (A) the Authority shall approve the financial plan 
                and budget and shall provide the Postmaster General, 
                the President, and Congress with a notice certifying 
                its approval; and
                    (B) the Postmaster General shall promptly submit 
                the annual budget program to the Office of Management 
                and Budget pursuant to section 2009 of title 39, United 
                States Code.
            (3) Disapproval of postmaster general's revised final 
        financial plan and budget.--
                    (A) In general.--If, after reviewing the revised 
                final financial plan and budget for a fiscal year 
                submitted by the Postmaster General under paragraph (1) 
                in accordance with the procedures described in this 
                subsection, the Authority determines that the revised 
                final financial plan and budget does not meet the 
                applicable requirements under section 221, the 
                Authority shall--
                            (i) disapprove the financial plan and 
                        budget;
                            (ii) 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
                            (iii) approve and recommend a financial 
                        plan and budget for the Postal Service which 
                        meets the applicable requirements under section 
                        221, and submit such financial plan and budget 
                        to the Postmaster General, the President, and 
                        Congress.
                    (B) Submission to omb.--Upon receipt of the 
                recommended financial plan and budget under 
                subparagraph (A)(iii), the Postmaster General shall 
                promptly submit the recommended annual budget program 
                to the Office of Management and Budget pursuant to 
                section 2009 of title 39, United States Code.
            (4) Deemed approval after 15 days.--
                    (A) In general.--If the Authority has not provided 
                the Postmaster General, the President, and Congress 
                with a notice certifying approval under paragraph 
                (2)(A) or a statement of disapproval under paragraph 
                (3) before the expiration of the 15-day period which 
                begins on the date the Authority receives the revised 
                final financial plan and budget submitted by the 
                Postmaster General under paragraph (1), the Authority 
                shall be deemed to have approved the revised final 
                financial plan and budget and to have provided the 
                Postmaster General, the President, and Congress with 
                the notice certifying approval described in paragraph 
                (2)(A).
                    (B) Explanation of failure to respond.--If 
                subparagraph (A) applies with respect to a financial 
                plan and budget, the Authority shall provide the 
                Postmaster General, the President and Congress with an 
                explanation for its failure to provide the notice 
                certifying approval or the statement of disapproval 
                during the 15-day period described in such 
                subparagraph.
    (f) Deadline for Transmission of Financial Plan and Budget by 
Authority.--Notwithstanding any other provision of this section, not 
later than September 30th before each fiscal year which is in a control 
period, the Authority shall--
            (1) provide Congress with a notice certifying its approval 
        of the Postmaster General's initial financial plan and budget 
        for the fiscal year under subsection (c);
            (2) provide Congress with a notice certifying its approval 
        of the Postmaster General's revised final financial plan and 
        budget for the fiscal year under subsection (e)(2); or
            (3) submit to Congress an approved and recommended 
        financial plan and budget of the Authority for the Postal 
        Service for the fiscal year under subsection (e)(3)(A)(iii).
    (g) Revisions to Financial Plan and Budget.--
            (1) Permitting postmaster general to submit revisions.--The 
        Postmaster General may submit proposed revisions to the 
        financial plan and budget for a control period to the Authority 
        at any time during the year.
            (2) Process for review, approval, disapproval, and 
        postmaster general action.--Except as provided in paragraph 
        (3), the procedures described in subsections (b), (c), (d), and 
        (e) 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.
            (3) Exception for revisions not affecting spending.--To the 
        extent that a proposed revision to a financial plan and budget 
        adopted by the Postmaster General pursuant to this subsection 
        does not increase the amount of spending with respect to any 
        account of the Postal Service, the revision shall become 
        effective upon the Authority's approval of such revision.

SEC. 224. RESPONSIBILITIES OF THE AUTHORITY.

    (a) In General.--The Authority shall direct the exercise of the 
powers of the Postal Service, including--
            (1) determining its overall strategies (both long-term and 
        short-term);
            (2) determining its organizational structure, particularly 
        for senior management at the level of vice president and 
        higher;
            (3) hiring, monitoring, compensating, and, when necessary, 
        replacing senior management at the level of vice president and 
        higher, as well as ensuring adequate succession planning for 
        these positions;
            (4) approving major policies, particularly those that have 
        an important effect on the Postal Service's financial position 
        and the provision of universal postal service;
            (5) approving corporate budgets, financial and capital 
        plans, operational and service performance standards and 
        targets, human resources strategies, collective bargaining 
        strategies, negotiation parameters, and collective bargaining 
        agreements, and the compensation structure for nonbargaining 
        employees;
            (6) approving substantial capital projects and any 
        substantial disposition of capital assets, such as surplus 
        property;
            (7) approving changes in rates and classifications, new 
        products and services, policy regarding other substantial 
        matters before the Postal Regulatory Commission, and any 
        appeals of its decisions or orders to the Federal courts;
            (8) approving the Postal Service Annual Report, Annual 
        Comprehensive Statement, and strategic plans, performance 
        plans, and performance program reports under chapter 28 of 
        title 39, United States Code;
            (9) formulating and communicating organizational policy and 
        positions on legislative and other public policy matters to 
        Congress and the public;
            (10) ensuring organizational responsiveness to oversight by 
        Congress, the Postal Regulatory Commission, the Treasury of the 
        United States, and other audit entities;
            (11) ensuring adequate internal controls and selecting, 
        monitoring, and compensating an independent public accounting 
        firm to conduct an annual audit of the Postal Service; and
            (12) carrying out any responsibility, not otherwise listed 
        in this subsection, that was the responsibility of the Board of 
        Governors at any time during the 5-year period ending on the 
        date of the enactment of this Act.
    (b) Review of Postal Service Proposals.--
            (1) Submission of postal service proposals to the 
        authority.--During a control period, the Postmaster General 
        shall submit to the Authority any proposal that has a 
        substantial effect on any item listed in subsection (a).
            (2) Prompt review by authority.--Upon receipt of a proposal 
        from the Postmaster General under paragraph (1), the Authority 
        shall promptly review the proposal to determine whether it is 
        consistent with the applicable financial plan and budget 
        approved under this title.
            (3) Actions by authority.--
                    (A) Approval.--If the Authority determines that a 
                proposal is consistent with the applicable financial 
                plan and budget, the Authority shall notify the 
                Postmaster General that it approves the proposal.
                    (B) Finding of inconsistency.--If the Authority 
                determines that a proposal is significantly 
                inconsistent with the applicable financial plan and 
                budget, the Authority shall--
                            (i) notify the Postmaster General of its 
                        finding;
                            (ii) provide the Postmaster General with an 
                        explanation of the reasons for its finding; and
                            (iii) to the extent the Authority considers 
                        appropriate, provide the Postmaster General 
                        with recommendations for modifications to the 
                        proposal.
            (4) Deemed approval.--If the Authority does not notify the 
        Postmaster General that it approves or disapproves a proposal 
        submitted under this subsection during the 7-day period which 
        begins on the date the Postmaster General submits the proposal 
        to the Authority, the Authority shall be deemed to have 
        approved the proposal in accordance with paragraph (3)(A). At 
        the option of the Authority, the previous sentence shall be 
        applied as if the reference in such sentence to ``7-day 
        period'' were a reference to ``14-day period'' if, during the 
        7-day period referred to in the preceding sentence, the 
        Authority so notifies the Postmaster General.
    (c) Effect of Approved Financial Plan and Budget on Contracts and 
Leases.--
            (1) Mandatory prior approval for certain contracts and 
        leases.--
                    (A) In general.--In the case of a contract or lease 
                described in subparagraph (B) which is proposed to be 
                entered into, renewed, modified, or extended by the 
                Postal Service during a control period, the Postmaster 
                General (or the appropriate officer or agent of the 
                Postal Service) shall submit the proposed contract or 
                lease to the Authority. The Authority shall review each 
                contract or lease submitted under this subparagraph, 
                and the Postmaster General (or the appropriate officer 
                or agent of the Postal Service) may not enter into the 
                contract or lease unless the Authority determines that 
                the proposed contract or lease is consistent with the 
                financial plan and budget for the fiscal year.
                    (B) Contracts and leases described.--A contract or 
                lease described in this subparagraph is--
                            (i) a labor contract entered into through 
                        collective bargaining; or
                            (ii) such other type of contract or lease 
                        as the Authority may specify for purposes of 
                        this subparagraph.
            (2) Authority to review other contracts after execution.--
                    (A) In general.--In addition to the prior approval 
                of certain contracts and leases, the Postal Service 
                shall submit to the Authority--
                            (i) any Level-Two Post Career Executive 
                        Service employee contract that is in effect 
                        during a control period; and
                            (ii) any collective bargaining agreement 
                        entered into by the Postal Service that is in 
                        effect during a control period.
                Any such contract or agreement shall be submitted to 
                the Authority upon the commencement of a control period 
                and at such other times as the Authority may require.
                    (B) Review by authority.--The Authority shall 
                review each contract submitted under subparagraph (A) 
                to determine if the contract is consistent with the 
                financial plan and budget for the fiscal year. If the 
                Authority determines that the contract is not 
                consistent with the financial plan and budget, the 
                Authority shall take such actions as are within the 
                Authority's powers to revise the contract.

SEC. 225. EFFECT OF FINDING NONCOMPLIANCE WITH FINANCIAL PLAN AND 
              BUDGET.

    (a) Submission of Reports.--Not later than 30 days after the 
expiration of each quarter of each fiscal year beginning in a control 
period, the Postmaster General shall submit reports to the Authority 
describing the actual revenues obtained and expenditures made by the 
Postal Service during the quarter with its cash flows during the 
quarter, and comparing such actual revenues, expenditures, and cash 
flows with the most recent projections for these items.
    (b) Additional Information.--If the Authority determines, based on 
reports submitted by the Postmaster General under subsection (a), 
independent audits, or such other information as the Authority may 
obtain, that the revenues or expenditures of the Postal Service during 
a control period are not consistent with the financial plan and budget 
for the year, the Authority shall require the Postmaster General to 
provide such additional information as the Authority determines to be 
necessary to explain the inconsistency.
    (c) Certification of Variance.--
            (1) In general.--After requiring the Postmaster General to 
        provide additional information under subsection (b), the 
        Authority shall certify to the Postmaster General, the 
        President, the Secretary of the Treasury, and Congress that the 
        Postal Service is at variance with the financial plan and 
        budget unless--
                    (A) the additional information provides an 
                explanation for the inconsistency which the Authority 
                finds reasonable and appropriate; or
                    (B)(i) the Postal Service adopts or implements 
                remedial action (including revising the financial plan 
                and budget pursuant to section 223(g)) to correct the 
                inconsistency which the Authority finds reasonable and 
                appropriate, taking into account the terms of the 
                financial plan and budget; and
                    (ii) the Postmaster General agrees to submit the 
                reports described in subsection (a) on a monthly basis 
                for such period as the Authority may require.
            (2) Special rule for inconsistencies attributable to acts 
        of congress.--
                    (A) Determination by authority.--If the Authority 
                determines that the revenues or expenditures of the 
                Postal Service during a control period are not 
                consistent with the financial plan and budget for the 
                year as approved by the Authority under section 223 as 
                a result of the terms and conditions of any law enacted 
                by Congress which affects the Postal Service, the 
                Authority shall so notify the Postmaster General.
                    (B) Certification.--In the case of an inconsistency 
                described in subparagraph (A), the Authority shall 
                certify to the Postmaster General, the President, the 
                Secretary of the Treasury, and Congress that the Postal 
                Service is at variance with the financial plan and 
                budget unless the Postal Service adopts or implements 
                remedial action (including revising the financial plan 
                and budget pursuant to section 202(e)) to correct the 
                inconsistency which the Authority finds reasonable and 
                appropriate, taking into account the terms of the 
                financial plan and budget.
    (d) Effect of Certification.--If the Authority certifies to the 
Secretary of the Treasury that a variance exists, the Authority or the 
Secretary may withhold access by the Postal Service to additional 
supplementary debt authorized by this title.

SEC. 226. RECOMMENDATIONS REGARDING FINANCIAL STABILITY, ETC.

    (a) In General.--The Authority may at any time submit 
recommendations to the Postmaster General, the President, and Congress 
on actions the Postal Service or any other entity of the Federal 
Government should take to ensure compliance by the Postal Service with 
a financial plan and budget or to otherwise promote the financial 
stability, management responsibility, and service delivery efficiency 
of the Postal Service, including recommendations relating to--
            (1) the management of the Postal Service's financial 
        affairs, including cash forecasting, information technology, 
        placing controls on expenditures for personnel, reducing 
        benefit costs, reforming procurement practices, and placing 
        other controls on expenditures;
            (2) the relationship between the Postal Service and other 
        entities of the Federal Government;
            (3) the structural relationship of subdivisions within the 
        Postal Service;
            (4) the modification of existing revenue structures, or the 
        establishment of additional revenue structures;
            (5) the establishment of alternatives for meeting 
        obligations to pay for the pensions and retirement benefits of 
        current and future Postal Service retirees;
            (6) modifications of services which are the responsibility 
        of and are delivered by the Postal Service;
            (7) modifications of the types of services which are 
        delivered by entities other than the Postal Service under 
        alternative service delivery mechanisms;
            (8) the effects of Federal Government laws and court orders 
        on the operations of the Postal Service;
            (9) the increased use of a personnel system for employees 
        of the Postal Service which is based upon employee performance 
        standards; and
            (10) the improvement of personnel training and proficiency, 
        the adjustment of staffing levels, and the improvement of 
        training and performance of management and supervisory 
        personnel.
    (b) Response to Recommendations for Actions Within Authority of 
Postal Service.--
            (1) In general.--In the case of any recommendations 
        submitted under subsection (a) during a control period which 
        are within the authority of the Postal Service to adopt, not 
        later than 90 days after receiving the recommendations, the 
        Postmaster General shall submit a statement to the Authority, 
        the President, and Congress which provides notice as to whether 
        the Postal Service will adopt the recommendations.
            (2) Implementation plan required for adopted 
        recommendations.--If the Postmaster General notifies the 
        Authority and Congress under paragraph (1) that the Postal 
        Service will adopt any of the recommendations submitted under 
        subsection (a), the Postmaster General shall include in the 
        statement a written plan to implement the recommendation which 
        includes--
                    (A) specific performance measures to determine the 
                extent to which the Postal Service has adopted the 
                recommendation; and
                    (B) a schedule for auditing the Postal Service's 
                compliance with the plan.
            (3) Explanations required for recommendations not 
        adopted.--If the Postmaster General notifies the Authority, the 
        President, and Congress under paragraph (1) that the Postal 
        Service will not adopt any recommendation submitted under 
        subsection (a) which the Postal Service has authority to adopt, 
        the Postmaster General shall include in the statement 
        explanations for the rejection of the recommendations.
    (c) Implementation of Rejected Recommendations by Authority.--
            (1) In general.--If the Postmaster General notifies the 
        Authority, the President, and Congress under subsection (b)(1) 
        that the Postal Service will not adopt any recommendation 
        submitted under subsection (a) which the Postal Service has 
        authority to adopt, the Authority may by a majority vote of its 
        members take such action concerning the recommendation as it 
        deems appropriate, after consulting with the Committee on 
        Oversight and Government Reform of the House of Representatives 
        and the Committee on Homeland Security and Governmental Affairs 
        of the Senate.
            (2) Effective date.--This subsection shall apply with 
        respect to recommendations of the Authority made after the 
        expiration of the 6-month period which begins on the date of 
        the commencement of a control period.

SEC. 227. SPECIAL RULES FOR FISCAL YEAR IN WHICH CONTROL PERIOD 
              COMMENCES.

    (a) Adoption of Transition Budget.--Notwithstanding any provision 
of section 223 to the contrary, in the case of a fiscal year in which a 
control period commences, the following rules shall apply:
            (1) Not later than 45 days after the appointment of its 
        members, the Authority shall review the proposed Integrated 
        Financial Plan for the Postal Service for such fiscal year and 
        shall submit any recommendations for modifications to such plan 
        to promote the financial stability of the Postal Service to the 
        Postmaster General, the President, and Congress.
            (2) Not later than 15 days after receiving the 
        recommendations of the Authority submitted under paragraph (1), 
        the Postmaster General shall promptly adopt a revised budget 
        for the fiscal year (in this section referred to as the 
        ``transition budget''), and shall submit the transition budget 
        to the Authority, the President, and Congress.
            (3) Not later than 15 days after receiving the transition 
        budget from the Postmaster General under paragraph (2), the 
        Authority shall submit a report to the Postmaster General, the 
        President, and Congress analyzing the budget (taking into 
        account any items or provisions disapproved by the Postmaster 
        General) and shall include in the report such recommendations 
        for revisions to the transition budget as the Authority 
        considers appropriate to promote the financial stability of the 
        Postal Service during the fiscal year.
    (b) Financial Plan and Budget.--
            (1) Deadline for submission.--For purposes of section 223, 
        the Postmaster General shall submit the financial plan and 
        budget for the applicable fiscal year as soon as practicable 
        after the commencement of a control period (in accordance with 
        guidelines established by the Authority).
            (2) Adoption by postmaster general.--In accordance with the 
        procedures applicable under section 223 (including procedures 
        providing for review by the Authority) the Postmaster General 
        shall adopt the financial plan and budget for the applicable 
        fiscal year (including the transition budget incorporated in 
        the financial plan and budget).
            (3) Transition budget as temporary financial plan and 
        budget.--Until the approval of the financial plan and budget 
        for the applicable fiscal year by the Authority under this 
        subsection, the transition budget established under subsection 
        (a) shall serve as the financial plan and budget adopted under 
        this subtitle for purposes of this Act (and any provision of 
        law amended by this Act) for the applicable fiscal year.

SEC. 228. ASSISTANCE IN ACHIEVING FINANCIAL STABILITY, ETC.

    In addition to any other actions described in this title, the 
Authority may undertake cooperative efforts to assist the Postal 
Service in achieving financial stability and management efficiency, 
including--
            (1) assisting the Postal Service in avoiding defaults, 
        eliminating and liquidating deficits, maintaining sound 
        budgetary practices, and avoiding interruptions in the delivery 
        of services;
            (2) assisting the Postal Service in improving the delivery 
        of services, the training and effectiveness of personnel of the 
        Postal Service, and the efficiency of management and 
        supervision; and
            (3) making recommendations to the President for 
        transmission to Congress on changes to this Act or other 
        Federal laws, or other actions of the Federal Government, which 
        would assist the Postal Service in complying with an approved 
        financial plan and budget under subtitle B.

SEC. 229. OBTAINING REPORTS.

    The Authority may require the Postmaster General, the Chief 
Financial Officer of the Postal Service, and the Inspector General of 
the Postal Service, to prepare and submit such reports as the Authority 
considers appropriate to assist it in carrying out its responsibilities 
under this title, including submitting copies of any reports regarding 
revenues, expenditures, budgets, costs, plans, operations, estimates, 
and other financial or budgetary matters of the Postal Service.

SEC. 230. REPORTS AND COMMENTS.

    (a) Annual Reports to Congress.--Not later than 30 days after the 
last day of each fiscal year which is a control year, the Authority 
shall submit a report to Congress describing--
            (1) the progress made by the Postal Service in meeting the 
        objectives of this title during the fiscal year;
            (2) the assistance provided by the Authority to the Postal 
        Service in meeting the purposes of this title for the fiscal 
        year; and
            (3) any other activities of the Authority during the fiscal 
        year.
    (b) Review and Analysis of Performance and Financial Accountability 
Reports.--The Authority shall review each yearly report prepared and 
submitted by the Postmaster General to the Postal Regulatory Commission 
and Congress and shall submit a report to Congress analyzing the 
completeness and accuracy of such reports.
    (c) Comments Regarding Activities of Postal Service.--At any time 
during a control period, the Authority may submit a report to Congress 
describing any action taken by the Postal Service (or any failure to 
act by the Postal Service) which the Authority determines will 
adversely affect the Postal Service's ability to comply with an 
approved financial plan and budget under subtitle B or will otherwise 
have a significant adverse impact on the best interests of the Postal 
Service.
    (d) Reports on Effect of Federal Laws on the Postal Service.--At 
any time during any year, the Authority may submit a report to the 
Postmaster General, the President, and Congress on the effect of laws 
enacted by Congress on the financial plan and budget for the year and 
on the financial stability and management efficiency of the Postal 
Service in general.
    (e) Making Reports Publicly Available.--The Authority shall make 
any report submitted under this section available to the public, except 
to the extent that the Authority determines that the report contains 
confidential material.

                  TITLE III--POSTAL SERVICE WORKFORCE

                     Subtitle A--General Provisions

SEC. 301. MODIFICATIONS RELATING TO DETERMINATION OF PAY COMPARABILITY.

    (a) Postal Policy.--The first sentence of section 101(c) is 
amended--
            (1) by inserting ``total'' before ``rates and types of 
        compensation''; and
            (2) by inserting ``entire'' before ``private sector''.
    (b) Employment Policy.--The second sentence of section 1003(a) is 
amended--
            (1) by inserting ``total'' before ``compensation and 
        benefits'' each place it appears; and
            (2) by inserting ``entire'' before ``private sector''.
    (c) Considerations.--For purposes of the amendments made by this 
section, any determination of ``total rates and types of compensation'' 
or ``total compensation and benefits'' shall, at a minimum, take into 
account pay, health benefits, retirement benefits, life insurance 
benefits, leave, holidays, and continuity and stability of employment.

SEC. 302. LIMITATION ON POSTAL CONTRIBUTIONS UNDER FEGLI AND FEHBP.

    Section 1003 is amended by adding at the end the following:
    ``(e)(1) At least 1 month before the start of each fiscal year as 
described in paragraph (2), the Postmaster General shall transmit to 
the Postal Regulatory Commission certification (together with such 
supporting documentation as the Postal Regulatory Commission may 
require) that contributions of the Postal Service for such fiscal year 
will not exceed--
            ``(A) in the case of life insurance under chapter 87 of 
        title 5, the Government contributions determined under section 
        8708 of such title; and
            ``(B) in the case of health insurance under chapter 89 of 
        title 5, the Government contributions determined under 8906 of 
        such title.
    ``(2) This subsection applies with respect to--
            ``(A) except as provided in subparagraph (B), each fiscal 
        year beginning after September 30, 2013; and
            ``(B) in the case of officers and employees of the Postal 
        Service covered by a collective bargaining agreement which is 
        in effect on the date of the enactment of this subsection--
                    ``(i) each fiscal year beginning after the 
                expiration date of such agreement, including
                    ``(ii) for the fiscal year in which such expiration 
                date occurs, any portion of such fiscal year remaining 
                after such expiration date.
    ``(3)(A) If, after reasonable notice and opportunity for hearing is 
afforded to the Postal Service, the Postal Regulatory Commission finds 
that the contributions of the Postal Service for a fiscal year will 
exceed or are exceeding the limitation specified in subparagraph (A) or 
(B) of paragraph (1), the Commission shall order that the Postal 
Service take such action as the Commission considers necessary to 
achieve full and immediate compliance with the applicable limitation or 
limitations.
    ``(B) Sections 3663 and 3664 shall apply with respect to any order 
issued by the Postal Regulatory Commission under subparagraph (A).
    ``(C) Nothing in this paragraph shall be considered to permit the 
issuance of an order requiring reduction of contributions below the 
level specified by the provision of law cited in subparagraph (A) or 
(B) of paragraph (1), as applicable.''.

SEC. 303. REPEAL OF PROVISION RELATING TO OVERALL VALUE OF FRINGE 
              BENEFITS.

    The last sentence of section 1005(f) is repealed.

SEC. 304. APPLICABILITY OF REDUCTION-IN-FORCE PROCEDURES.

    Section 1206 is amended by adding at the end the following:
    ``(d) Collective-bargaining agreements between the Postal Service 
and bargaining representatives recognized under section 1203, ratified 
after the date of enactment of this subsection, shall contain no 
provision restricting the applicability of reduction-in-force 
procedures under title 5 with respect to members of the applicable 
bargaining unit.
    ``(e) Any collective-bargaining agreement between the Postal 
Service and the bargaining representatives recognized under section 
1203 ratified before the date of enactment of this Act that contain any 
provision violating subsection (d) shall be renegotiated with a new 
collective-bargaining agreement to be ratified or imposed through an 
arbitration decision under section 1207 within 9 months after such date 
of enactment.
    ``(f)(1) If a collective-bargaining agreement between the Postal 
Service and bargaining representatives recognized under section 1203, 
ratified after the date of enactment of this subsection, includes 
reduction-in-force procedures which can be applied in lieu of 
reduction-in-force procedures under title 5, the Postal Service may, in 
its discretion, apply with respect to members of the applicable 
bargaining unit--
            ``(A) the alternative procedures (or, if 2 or more are 
        agreed to, 1 of the alternative procedures); or
            ``(B) the reduction-in-force procedures under title 5.
    ``(2) In no event may, if procedures for the resolution of a 
dispute or impasse arising in the negotiation of a collective-
bargaining agreement (whether through binding arbitration or otherwise) 
are invoked under this chapter, the award or other resolution reached 
under such procedures provide for the elimination of, or the 
substitution of any alternative procedures in lieu of, reduction-in-
force procedures under title 5.''.

SEC. 305. MODIFICATIONS RELATING TO COLLECTIVE BARGAINING.

    Section 1207 is amended by striking subsections (c) and (d) and 
inserting the following:
    ``(c)(1) If no agreement is reached within 30 days after the 
appointment of a mediator under subsection (b), or if the parties 
decide upon arbitration before the expiration of the 30-day period, an 
arbitration board shall be established consisting of 1 member selected 
by the Postal Service (from the list under paragraph (2)), 1 member 
selected by the bargaining representative of the employees (from the 
list under paragraph (2)), and the mediator appointed under subsection 
(b).
    ``(2) Upon receiving a request from either of the parties referred 
to in paragraph (1), the Director of the Federal Mediation and 
Conciliation Service shall provide a list of not less than 9 
individuals who are well qualified to serve as neutral arbitrators. 
Each person listed shall be an arbitrator of nationwide reputation and 
professional nature, a member of the National Academy of Arbitrators, 
and an individual whom the Director has determined to be willing and 
available to serve. If, within 7 days after the list is provided, 
either of the parties has not selected an individual from the list, the 
Director shall make the selection within 3 days.
    ``(3) The arbitration board shall give the parties a full and fair 
hearing, including an opportunity to present evidence in support of 
their claims, and an opportunity to present their case in person, by 
counsel, or by other representative as they may elect. The hearing 
shall be concluded no more than 40 days after the arbitration board is 
established.
    ``(4) No more than 7 days after the hearing is concluded, each 
party shall submit to the arbitration board 2 offer packages, each of 
which packages shall specify the terms of a proposed final agreement.
    ``(5) If no agreement is reached within 7 days after the last day 
date for the submission of an offer package under paragraph (4), each 
party shall submit to the arbitration board a single final offer 
package specifying the terms of a proposed final agreement.
    ``(6) No later than 3 days after the submission of the final offer 
packages under paragraph (5), the arbitration board shall select 1 of 
those packages as its tentative award, subject to paragraph (7).
    ``(7)(A) The arbitration board may not select a final offer package 
under paragraph (6) unless it satisfies each of the following:
            ``(i) The offer complies with the requirements of sections 
        101(c) and 1003(a).
            ``(ii) The offer takes into account the current financial 
        condition of the Postal Service.
            ``(iii) The offer takes into account the long-term 
        financial condition of the Postal Service.
    ``(B)(i) If the board unanimously determines, based on clear and 
convincing evidence presented during the hearing under paragraph (3), 
that neither final offer package satisfies the conditions set forth in 
subparagraph (A), the board shall by majority vote--
            ``(I) select the package that best meets such conditions; 
        and
            ``(II) modify the package so selected to the minimum extent 
        necessary to satisfy such conditions.
    ``(ii) If modification (as described in subparagraph (B)(i)(II)) is 
necessary, the board shall have an additional 7 days to render its 
tentative award under this subparagraph.
    ``(8) The parties may negotiate a substitute award to replace the 
tentative award selected under paragraph (6) or rendered under 
paragraph (7) (as the case may be). If no agreement on a substitute 
award is reached within 10 days after the date on which the tentative 
award is so selected or rendered, the tentative award shall become 
final.
    ``(9) The arbitration board shall review any substitute award 
negotiated under paragraph (8) to determine if it satisfies the 
conditions set forth in paragraph (7)(A). If the arbitration board, by 
a unanimous vote taken within 3 days after the date on which the 
agreement on the substitute award is reached under paragraph (8), 
determines that the substitute award does not satisfy such conditions, 
the tentative award shall become final. In the absence of a vote, as 
described in the preceding sentence, the substitute agreement shall 
become final.
    ``(10) If, under paragraph (5), neither party submits a final offer 
package by the last day allowable under such paragraph, the arbitration 
board shall develop and issue a final award no later than 20 days after 
such last day.
    ``(11) A final award or agreement under this subsection shall be 
conclusive and binding upon the parties.
    ``(12) Costs of the arbitration board and mediation shall be shared 
equally by the Postal Service and the bargaining representative.
    ``(d) In the case of a bargaining unit whose recognized collective-
bargaining representative does not have an agreement with the Postal 
Service, if the parties fail to reach agreement within 90 days after 
the commencement of collective bargaining, a mediator shall be 
appointed in accordance with the provisions of subsection (b), unless 
the parties have previously agreed to another procedure for a binding 
resolution of their differences. If the parties fail to reach agreement 
within 180 days after the commencement of collective bargaining, an 
arbitration board shall be established to provide conclusive and 
binding arbitration in accordance with the provisions of subsection 
(c).''.

SEC. 306. ONE-TIME TRANSFER OF NET SURPLUS POSTAL RETIREMENT 
              CONTRIBUTIONS.

    (a) Transfer Requirement.--Not later than 2 weeks after the date of 
enactment of this Act, there shall be appropriated to the Postal 
Service Fund, from the Postal Service Federal Employee Retirement 
System account within the Civil Service Retirement and Disability Fund, 
an amount equal to the absolute value of the amount computed as of 
September 30, 2010, under section 8423(b)(1)(B) of title 5, United 
States Code, less the sum of--
            (1) the Postal supplemental liability, calculated as of 
        September 30, 2010, under section 8348(h) of title 5, United 
        States Code; and
            (2) any contribution required by section 8423 of such title 
        that the Postal Service has not made during fiscal years 2011 
        or 2012, as determined by the Office of Personnel Management no 
        later than one week after the date of enactment of this Act
    (b) Limitations on Use.--The amount transferred to the Postal 
Service Fund under this section--
            (1) may be used for such purposes as the Postal Service 
        considers appropriate; except that
            (2) if any amounts so transferred remain in the Postal 
        Service Fund after September 30, 2015, such amounts shall be 
        used--
                    (A) first, to satisfy any supplemental liability 
                computed under section 8423(b)(1)(B) of title 5, United 
                States Code;
                    (B) second, to satisfy any supplemental liability 
                computed under section 8348(h) of title 5, United 
                States Code; and
                    (C) third, to satisfy any obligations of the Postal 
                Service under section 2005 of title 39, United States 
                Code.
    (c) Definitions.--For purposes of this section--
            (1) the term ``Civil Service Retirement and Disability 
        Fund'' refers to the fund under section 8348 of title 5, United 
        States Code; and
            (2) the term ``Postal Service Fund'' refers to the fund 
        under section 2003 of title 39, United States Code.
    (d) Sense of Congress.--It is the sense of Congress that the Postal 
Service should use any funds under subsection (b)(1) for separation 
incentives for Postal employees.

        Subtitle B--Postal Service Workers' Compensation Reform

SEC. 311. POSTAL SERVICE WORKERS' COMPENSATION REFORM.

    (a) In General.--Effective 12 months after the triggering date of 
this section (as defined in subsection (e)(2)), section 1005 is amended 
by striking subsection (c) and inserting the following:
    ``(c)(1) For purposes of this subsection--
            ``(A) the term `postal employee' means an officer or 
        employee of the Postal Service or the former Post Office 
        Department;
            ``(B) the term `retirement age' has the meaning given such 
        term under section 216(l)(1) of the Social Security Act; and
            ``(C) the term `appropriate committees of Congress' means--
                    ``(i) the Committee on Oversight and Government 
                Reform of the House of Representatives; and
                    ``(ii) the Committee on Homeland Security and 
                Governmental Affairs of the Senate.
    ``(2) The Postal Service shall design and administer a program for 
the payment of benefits for the disability or death of an individual 
resulting from personal injury sustained while in the performance of 
such individual's duties as a postal employee.
    ``(3) The program under this subsection--
            ``(A) shall be designed by the Postal Service in 
        consultation with appropriate employee representatives;
            ``(B) shall not provide for any amount payable to a 
        disabled postal employee to be augmented on the basis of number 
        of dependents; and
            ``(C) shall include provisions for automatic transition, 
        upon attainment of retirement age, to benefits involving, 
        coordinated with, or otherwise determined by reference to 
        retirement benefits.''.
    (b) Recommendations.--Not later than 6 months after the triggering 
date--
            (1) the Office of Personnel Management shall submit to the 
        appropriate committees of Congress recommendations for any 
        legislation or administrative actions which the Office 
        considers necessary to carry out the purposes of this section 
        with respect to any matter within the jurisdiction of the 
        Office, including any amendments which may be necessary with 
        respect to chapter 87 or 89 of title 5, United States Code; and
            (2) the Postal Service shall submit to the appropriate 
        committees of Congress recommendations for any legislation 
        which the Postal Service considers necessary to carry out the 
        purposes of this section with respect to any matter within the 
        jurisdiction of the Postal Service.
    (c) Notification Requirements.--Not later than 9 months after the 
triggering date, the Postal Service shall submit to the appropriate 
committees of Congress and shall cause to be published in the Federal 
Register a description of the program proposed by the Postal Service 
for implementation under section 1005(c) of title 39, United States 
Code, as amended by subsection (a). Included in the notification 
provided under the preceding sentence shall be--
            (1) a detailed statement of the benefits to be offered and 
        the persons eligible to receive those benefits;
            (2) provisions to ensure an orderly transition to the 
        system proposed to be implemented; and
            (3) such other information as the Postal Service considers 
        appropriate.
    (d) Commencement Date.--The program under section 1005(c) of title 
39, United States Code, as amended by this section--
            (1) shall begin to operate on such date as the Postmaster 
        General shall determine, except that such date shall be a date 
        occurring--
                    (A) not earlier than 12 months after the triggering 
                date; and
                    (B) not later than 24 months after the triggering 
                date; and
            (2) shall apply with respect to amounts payable for periods 
        beginning on or after the date on which the program begins to 
        operate, irrespective of date of the disability or death to 
        which such amounts relate.
    (e) Condition Precedent.--
            (1) In general.--The preceding provisions of this section 
        shall not become effective until the date on which a Postal 
        Service Financial Responsibility and Management Assistance 
        Authority (established under section 202)--
                    (A) makes a written determination that conditions 
                warrant their implementation; and
                    (B) submits such written determination to the 
                Postal Service, the Office of Personnel Management, and 
                the appropriate committees of Congress (within the 
                meaning of the amendment made by subsection (a)).
            (2) Triggering date.--For purposes of this section, the 
        term ``triggering date of this section'' or ``triggering date'' 
        means the date described in paragraph (1).

                    TITLE IV--POSTAL SERVICE REVENUE

SEC. 401. ADEQUACY, EFFICIENCY, AND FAIRNESS OF POSTAL RATES.

    (a) In General.--Section 3622(d) is amended--
            (1) in paragraph (1)--
                    (A) by redesignating subparagraphs (B) through (E) 
                as subparagraph (D) through (G), respectively; and
                    (B) by inserting after subparagraph (A) the 
                following:
                    ``(B) subject to the limitation under subparagraph 
                (A), establish postal rates to fulfill the requirement 
                that each market-dominant class, product, and type of 
                mail service (except for an experimental product or 
                service) bear the direct and indirect postal costs 
                attributable to such class, product, or type through 
                reliably identified causal relationships plus that 
                portion of all other costs of the Postal Service 
                reasonably assignable to such class, product, or type;
                    ``(C) establish postal rates for each group of 
                functionally equivalent agreements between the Postal 
                Service and users of the mail that--
                            ``(i) cover attributable cost; and
                            ``(ii) improve the net financial position 
                        of the Postal Service;
                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;''; and
            (2) by adding at the end the following:
            ``(4) PRC study.--
                    ``(A) In general.--Within 90 days after the end of 
                the first fiscal year beginning after the date of 
                enactment of the Postal Reform Act of 2012, the Postal 
                Regulatory Commission shall complete a study to 
                determine the quantitative impact of the Postal 
                Service's excess capacity on the direct and indirect 
                postal costs attributable to any class that bears less 
                than 100 percent of its costs attributable (as 
                described in paragraph (1)(B)), according to the most 
                recent annual determination of the Postal Regulatory 
                Commission under section 3653.
                    ``(B) Requirements.--The study required under 
                subparagraph (A) shall--
                            ``(i) be conducted pursuant to regulations 
                        that the Postal Regulatory Commission shall 
                        prescribe within 90 days after the date of 
                        enactment of the Postal Reform Act of 2012, 
                        taking into account existing regulations for 
                        proceedings to improve the quality, accuracy, 
                        or completeness of ratemaking information under 
                        section 3652(e)(2) in effect on such date; and
                            ``(ii) for any year in which any class of 
                        mail bears less than 100 percent of its costs 
                        attributable (as described in paragraph 
                        (1)(B)), be updated annually by the Postal 
                        Service and included in its annual report to 
                        the Commission under section 3652, using such 
                        methodologies as the Commission shall by 
                        regulation prescribe.
            ``(5) Additional rates.--Starting not earlier than 12 
        months and not later than 18 months after the date on which the 
        first study described in paragraph (4) is completed, and at 
        least once in each subsequent 12-month period, the Postal 
        Service shall establish postal rates for each loss-making class 
        of mail to eliminate such losses (other than those caused by 
        the Postal Service's excess capacity) by exhausting all unused 
        rate authority as well as maximizing incentives to reduce costs 
        and increase efficiency, subject to the following:
                    ``(A) The term `loss-making', as used in this 
                paragraph with respect to a class of mail, means a 
                class of mail that bears less than 100 percent of its 
                costs attributable (as described in paragraph (1)(B)), 
                according to the most recent annual determination of 
                the Postal Regulatory Commission under section 3653, 
                adjusted to account for the quantitative effect of 
                excess capacity on the costs attributable of the class 
                (as described in paragraph (1)(C)).
                    ``(B) Unused rate authority shall be annually 
                increased by 2 percent 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 (as described in 
                paragraph (1)(C)), with such increase in unused rate 
                authority to take effect 30 days after the date that 
                the Commission issues such determination.''.
    (b) Conforming Amendment.--Subparagraph (A) of section 3622(c)(10) 
is amended to read as follows:
                    ``(A) improve the net financial position of the 
                Postal Service through reducing Postal Service costs or 
                increasing the overall contribution to the 
                institutional costs of the Postal Service; and''.
    (c) Exception.--Section 3622(d) is amended by adding after 
paragraph (5) (as added by subsection (a)(2)) the following:
            ``(6) Exception.--The requirements of paragraph (1)(B) 
        shall not apply to a market-dominant product for which a 
        substantial portion of the product's mail volume consists of 
        inbound international mail with terminal dues rates determined 
        by the Universal Postal Union (and not by bilateral agreements 
        or other arrangements).''.

SEC. 402. REPEAL OF RATE PREFERENCES FOR QUALIFIED POLITICAL 
              COMMITTEES.

    Subsection (e) of section 3626 is repealed.

SEC. 403. RATE PREFERENCES FOR NONPROFIT ADVERTISING.

    (a) Provisions Relating to Former Section 4358(f).--Section 
3626(a)(5) is amended by adding at the end the following: 
``Notwithstanding any other provision of this paragraph, the percentage 
specified in the preceding sentence shall be increased by an additional 
2 percentage points as of the first day of each calendar year beginning 
at least 3 years after the date of the enactment of the Postal Reform 
Act of 2012, until such percentage reaches 80 percent.''.
    (b) Provisions Relating to Former Section 4452 (b) and (c).--
Section 3626(a)(6) is amended by inserting after subparagraph (C) the 
following (as a flush left sentence):
``Notwithstanding any other provision of this paragraph, the percentage 
specified in subparagraph (A) shall be increased by an additional 2 
percentage points as of the first day of each calendar year beginning 
at least 3 years after the date of the enactment of the Postal Reform 
Act of 2012, until such percentage reaches 80 percent.''.

SEC. 404. STREAMLINED REVIEW OF QUALIFYING SERVICE AGREEMENTS FOR 
              COMPETITIVE PRODUCTS.

    Section 3633 is amended by adding at the end the following:
    ``(c) Streamlined Review.--Within 90 days after the date of the 
enactment of this subsection, after notice and opportunity for public 
comment, the Postal Regulatory Commission shall promulgate (and may 
from time to time thereafter revise) regulations for streamlined after-
the-fact review of new agreements between the Postal Service and users 
of the mail that provide rates not of general applicability for 
competitive products, and are functionally equivalent to existing 
agreements that have collectively covered attributable costs and 
collectively improved the net financial position of the Postal Service. 
Streamlined review will be concluded within 5 working days after the 
agreement is filed with the Commission and shall be limited to approval 
or disapproval of the agreement as a whole based on the Commission's 
determination of its functional equivalence. Agreements not approved 
may be resubmitted without prejudice under section 3632(b)(3).''.

SEC. 405. SUBMISSION OF SERVICE AGREEMENTS FOR STREAMLINED REVIEW.

    Section 3632(b) is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following:
            ``(4) Rates for streamlined review.--In the case of rates 
        not of general applicability for competitive products that the 
        Postmaster General considers eligible for streamlined review 
        under section 3633(c), the Postmaster General shall cause each 
        agreement to be filed with the Postal Regulatory Commission by 
        such date, on or before the effective date of any new rate, as 
        the Postmaster General considered appropriate.''.

SEC. 406. TRANSPARENCY AND ACCOUNTABILITY FOR SERVICE AGREEMENTS.

    Section 3653 is amended--
            (1) by redesignating subsections (c) through (e) as 
        subsections (d) through (f), respectively; and
            (2) by inserting after subsection (b) the following:
    ``(c) Each annual written determination of the Commission under 
section 3653 shall include the following written determinations:
            ``(1) Whether each product covered its costs, and if it did 
        not, the determination shall state that such product is in 
        noncompliance under section 3653(c).
            ``(2) For each group of functionally equivalent agreements 
        between the Postal Service and users of the mail, whether it 
        fulfilled requirements to--
                    ``(A) cover attributable costs; and
                    ``(B) improve the net financial position of the 
                Postal Service.
            ``(3) Any group of functionally equivalent agreements (as 
        referred to in subparagraph (B)) not meeting subparagraphs (A) 
        and (B) of paragraph (2) shall be determined to be in 
        noncompliance under this subsection.
            ``(4) For purposes of this subsection, a group of 
        functionally equivalent agreements (as referred to in paragraph 
        (2)) shall consist of all 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.''.

SEC. 407. NONPOSTAL SERVICES.

    (a) Nonpostal Services.--
            (1) In general.--Part IV is amended by adding after chapter 
        36 the following:

                    ``CHAPTER 37--NONPOSTAL SERVICES

``Sec.
``3701. Purpose.
``3702. Definitions.
``3703. Postal Service advertising program.
``3704. Postal Service program for State governments.
``3705. Postal Service program for other government agencies.
``3706. Transparency and accountability for nonpostal services.
``Sec. 3701. Purpose
    ``This chapter is intended to enable the Postal Service to increase 
its net revenues through specific nonpostal products and services that 
are expressly authorized by this chapter. Postal Service revenues and 
expenses under this chapter shall be funded through the Postal Service 
Fund.
``Sec. 3702. Definitions
    ``As used in this chapter--
            ``(1) the term `nonpostal services' is limited to services 
        offered by the Postal Service that are expressly authorized by 
        this chapter and are not postal products or services;
            ``(2) the term `Postal Service advertising program' means a 
        program, managed by the Postal Service, by which the Postal 
        Service receives revenues from entities which advertise at 
        Postal Service facilities and on Postal Service vehicles;
            ``(3) the term `Postal Service program for State 
        governments' means a program, managed by the Postal Service, by 
        which the Postal Service receives revenue from State 
        governments (including their agencies) for providing services 
        on their behalf at Postal Service facilities;
            ``(4) the term `attributable costs' has the same meaning as 
        is given such term in section 3631; and
            ``(5) the term `year' means a fiscal year.
``Sec. 3703. Postal Service advertising program
    ``Notwithstanding any other provision of this title, the Postal 
Service may establish and manage a program that allows entities to 
advertise at Postal Service facilities and on Postal Service vehicles. 
Such a program shall be subject to the following requirements:
            ``(1) The Postal Service shall at all times ensure 
        advertising it permits is consistent with the integrity of the 
        Postal Service.
            ``(2) Any advertising program is required to cover a 
        minimum of 200 percent of its attributable costs in each year.
            ``(3) All advertising expenditures and revenues are subject 
        to annual compliance determination (including remedies for 
        noncompliance) applicable to nonpostal products.
            ``(4) Total advertising expenditures and revenues must be 
        disclosed in Postal Service annual reports.
``Sec. 3704. Postal Service program for State governments
    ``(a) In General.--Notwithstanding any other provision of this 
title, the Postal Service may establish a program to provide services 
for agencies of State governments within the United States, but only if 
such services--
            ``(1) shall provide enhanced value to the public, such as 
        by lowering the cost or raising the quality of such services or 
        by making such services more accessible;
            ``(2) do not interfere with or detract from the value of 
        postal services, including--
                    ``(A) the cost and efficiency of postal services; 
                and
                    ``(B) access to postal retail service, such as 
                customer waiting time and access to parking; and
            ``(3) provide a reasonable contribution to the 
        institutional costs of the Postal Service, defined as 
        reimbursement for each service and to each agency covering at 
        least 150 percent of the attributable costs of such service in 
        each year.
    ``(b) Public Notice.--At least 90 days before offering any services 
under this section, the Postal Service shall make each agreement with 
State agencies readily available to the public on its website, 
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 website, followed by its written response posted 
on its website at least 30 days before offering such services.
    ``(c) Approval Required.--The Governors of the Postal Service shall 
approve the provision of services under this section by a recorded 
vote, with at least \2/3\ of its membership voting for approval, with 
the vote publicly disclosed on the Postal Service website.
    ``(d) Classification of Services.--All services for a given agency 
provided under this section shall be classified as a separate activity 
subject to the requirements of annual reporting under section 3706. 
Such reporting shall also include information on the quality of service 
and related information to demonstrate that it satisfied the 
requirements of subsection (a). Information provided under this section 
shall be according to requirements that the Postal Regulatory 
Commission shall by regulation prescribe.
    ``(e) Definitions.--For the purpose of this section--
            ``(1) the term `State' includes the District of Columbia, 
        the Commonwealth of Puerto Rico, the United States Virgin 
        Islands, Guam, American Samoa, the Commonwealth of the Northern 
        Mariana Islands, and any other territory or possession of the 
        United States; and
            ``(2) the term `United States', when used in a geographical 
        sense, means the States.
``Sec. 3705. Postal Service program for other government agencies
    ``(a) In General.--The Postal Service may establish a program to 
provide property and services for other government agencies within the 
meaning of section 411, but only if such program provides a reasonable 
contribution to the institutional costs of the Postal Service, defined 
as reimbursement by each agency that covers at least 100 percent of the 
attributable costs of all property and service provided by the Postal 
Service in a each year to such agency.
    ``(b) Classification of Services.--For each agency, all property 
and services provided by the Postal Service under this section shall be 
classified as a separate activity subject to the requirements of annual 
reporting under section 3706. Information provided under this section 
shall be according to requirements that the Postal Regulatory 
Commission shall by regulation prescribe.
``Sec. 3706. Transparency and accountability for nonpostal services
    ``(a) Annual Reports to the Commission.--
            ``(1) In general.--The Postal Service shall, no later than 
        90 days after the end of each year, prepare and submit to the 
        Postal Regulatory Commission a report (together with such 
        nonpublic annex to the report as the Commission may require 
        under subsection (b)) which shall analyze costs, revenues, 
        rates, and quality of service for this chapter, using such 
        methodologies as the Commission shall by regulation prescribe, 
        and in sufficient detail to demonstrate compliance with all 
        applicable requirements of this chapter.
            ``(2) Audits.--The Inspector General shall regularly audit 
        the data collection systems and procedures utilized in 
        collecting information and preparing such report. The results 
        of any such audit shall be submitted to the Postal Service and 
        the Postal Regulatory Commission.
    ``(b) Supporting Matter.--The Postal Regulatory Commission shall 
have access, in accordance with such regulations as the Commission 
shall prescribe, to the working papers and any other supporting matter 
of the Postal Service and the Inspector General in connection with any 
information submitted under this section.
    ``(c) Content and Form of Reports.--
            ``(1) In general.--The Postal Regulatory Commission shall, 
        by regulation, prescribe the content and form of the public 
        reports (and any nonpublic annex and supporting matter relating 
        to the report) to be provided by the Postal Service under this 
        section. Such reports shall be included with the annual 
        compliance determination reported under section 3653. In 
        carrying out this subsection, the Commission shall give due 
        consideration to--
                    ``(A) providing the public with timely, adequate 
                information to assess compliance;
                    ``(B) avoiding unnecessary or unwarranted 
                administrative effort and expense on the part of the 
                Postal Service; and
                    ``(C) protecting the confidentiality of information 
                that is commercially sensitive or is exempt from public 
                disclosure under section 552(b) of title 5.
            ``(2) Revised requirements.--The Commission may, on its own 
        motion or on request of any interested party, initiate 
        proceedings (to be conducted in accordance with regulations 
        that the Commission shall prescribe) to improve the quality, 
        accuracy, or completeness of Postal Service data required by 
        the Commission under this subsection whenever it shall appear 
        that--
                    ``(A) the attribution of costs or revenues to 
                property or services under this chapter has become 
                significantly inaccurate or can be significantly 
                improved;
                    ``(B) the quality of service data provided to the 
                Commission for annual reports under this chapter has 
                become significantly inaccurate or can be significantly 
                improved; or
                    ``(C) such revisions are, in the judgment of the 
                Commission, otherwise necessitated by the public 
                interest.
    ``(d) Confidential Information.--
            ``(1) In general.--If the Postal Service determines that 
        any document or portion of a document, or other matter, which 
        it provides to the Postal Regulatory Commission in a nonpublic 
        annex under this section contains information which is 
        described in section 410(c) of this title, or exempt from 
        public disclosure under section 552(b) of title 5, the Postal 
        Service shall, at the time of providing such matter to the 
        Commission, notify the Commission of its determination, in 
        writing, and describe with particularity the documents (or 
        portions of documents) or other matter for which 
        confidentiality is sought and the reasons therefor.
            ``(2) Treatment.--Any information or other matter described 
        in paragraph (1) to which the Commission gains access under 
        this section shall be subject to paragraphs (2) and (3) of 
        section 504(g) in the same way as if the Commission had 
        received notification with respect to such matter under section 
        504(g)(1).
    ``(e) Annual Compliance Determination.--
            ``(1) Opportunity for public comment.--After receiving the 
        reports required under subsection (a) for any year, the Postal 
        Regulatory Commission shall promptly provide an opportunity for 
        comment on such reports by any interested party, and an officer 
        of the Commission who shall be required to represent the 
        interests of the general public.
            ``(2) Determination of compliance or noncompliance.--Not 
        later than 90 days after receiving the submissions required 
        under subsection (a) with respect to a year, the Postal 
        Regulatory Commission shall make a written determination as to 
        whether any nonpostal activities during such year were or were 
        not in compliance with applicable provisions of this chapter 
        (or regulations promulgated under this chapter). The Postal 
        Regulatory Commission shall issue a determination of 
        noncompliance if the requirements for coverage of attributable 
        costs are not met. If, with respect to a year, no instance of 
        noncompliance is found to have occurred in such year, the 
        written determination shall be to that effect.
            ``(3) Noncompliance.--If, for a year, a timely written 
        determination of noncompliance is made under this chapter, the 
        Postal Regulatory Commission shall take appropriate action. If 
        the requirements for coverage of attributable costs specified 
        by this chapter are not met, the Commission shall, within 60 
        days after the determination, prescribe remedial action to 
        restore compliance as soon as practicable, which shall also 
        include the full restoration of revenue shortfalls during the 
        following fiscal year. The Commission may order the Postal 
        Service to discontinue a nonpostal service under section 3703 
        or 3704 that persistently fails to meet cost coverage 
        requirements.
            ``(4) Any deliberate noncompliance.--In addition, in cases 
        of deliberate noncompliance by the Postal Service with the 
        requirements of this chapter, the Postal Regulatory Commission 
        may order, based on the nature, circumstances, extent, and 
        seriousness of the noncompliance, a fine (in the amount 
        specified by the Commission in its order) for each incidence of 
        noncompliance. All receipts from fines imposed under this 
        subsection shall be deposited in the general fund of the 
        Treasury of the United States.''.
            (2) Clerical amendment.--The table of chapters at the 
        beginning of part IV is amended by adding after the item 
        relating to chapter 36 the following:

``37. Nonpostal Services....................................    3701''.
    (b) Conforming Amendments.--
            (1) Section 404(e).--Section 404(e) is amended by adding at 
        the end the following:
    ``(6) Nothing in this section shall be considered to prevent the 
Postal Service from establishing nonpostal products and services that 
are expressly authorized by chapter 37.''.
            (2) Section 411.--The last sentence of section 411 is 
        amended by striking ``including reimbursability'' and inserting 
        ``including reimbursability within the limitations of chapter 
        37''.
            (3) Treatment of existing nonpostal services.--All 
        nonpostal services continued pursuant to section 404(e) of 
        title 39, United States Code, shall be considered to be 
        expressly authorized by chapter 37 of such title (as added by 
        subsection (a)(1)) and shall be subject to the requirements of 
        such chapter.

SEC. 408. REIMBURSEMENT OF ALASKA BYPASS MAIL COSTS.

    (a) Cost Estimates by Postal Regulatory Commission.--Section 
3651(b) is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following:
            ``(2) Alaska bypass mail costs.--In addition to the 
        information required under subsection (a), each report under 
        this section shall also include, with respect to the period 
        covered by such report, an estimate of the costs incurred by 
        the Postal Service in providing Alaska bypass mail service 
        under section 5402.''.
    (b) Reimbursements.--
            (1) In general.--Chapter 54 is amended by adding at the end 
        the following:
``Sec. 5404. Reimbursement of Alaska bypass mail costs
    ``(a) In General.--The State of Alaska, on an annual basis, shall 
make a payment to the Postal Service to reimburse the Postal Service 
for its costs in providing Alaska bypass mail service under section 
5402 of this title.
    ``(b) Date of First Payment.--The State of Alaska shall make its 
first payment under subsection (a) on or before the last day of the 
first fiscal year of the State of Alaska beginning after the date of 
enactment of this section.
    ``(c) Payment Amounts.--
            ``(1) Determination of amounts.--The amount of a payment 
        under subsection (a) shall be determined based on the most 
        recent cost estimate prepared by the Postal Regulatory 
        Commission under section 3651(b)(2) of this title (in this 
        subsection referred to as the `cost estimate').
            ``(2) First payment.--The first payment under subsection 
        (a) shall be in an amount equal to 20 percent of the cost 
        estimate.
            ``(3) Subsequent payments.--Each subsequent payment under 
        subsection (a) shall be in an amount equal to a percentage of 
        the cost estimate determined by adding 20 percent to the 
        percentage due in the prior year, except that no payment shall 
        exceed 100 percent of the cost estimate.
    ``(d) Notice of Payment Amounts.--Not later than 30 days after the 
date of issuance of a cost estimate by the Postal Regulatory Commission 
under section 3651(b)(2) of this title, the Postal Service shall 
furnish the State of Alaska with written notice of the amount of the 
next payment due under subsection (a).
    ``(e) Deposit of Payments.--Not later than the last day of the 
fiscal year of the State of Alaska in which notice of a payment is 
provided under subsection (d)--
            ``(1) the State of Alaska shall transmit the payment to the 
        Postal Service; and
            ``(2) the Postal Service shall deposit the payment in the 
        Postal Service Fund.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 54 is amended by adding at the end the 
        following:

``5404. Reimbursement of Alaska bypass mail costs.''.

SEC. 409. APPROPRIATIONS MODERNIZATION.

    (a) In General.--Section 2401 is amended by striking subsections 
(b) through (d).
    (b) Effective Date.--The amendment made by subsection (a) shall be 
effective with respect to fiscal years beginning after the date of 
enactment of this Act.

SEC. 410. RETIREE HEALTH CARE BENEFIT PAYMENT DEFERRAL.

    Section 8909a of title 5, United States Code, is amended--
            (1) in the section heading, by striking ``Benefit'' and 
        inserting ``Benefits'';
            (2) in subsection (d)(3)(A)(v), by striking 
        ``$5,500,000,000'' and inserting ``$1,000,000,000'';
            (3) in subsection (d)(3)(A)(ix), by striking 
        ``$5,700,000,000'' and inserting ``$7,950,000,000''; and
            (4) in subsection (d)(3)(A)(x), by striking 
        ``$5,800,000,000'' and inserting ``$8,050,000,000''.

                   TITLE V--POSTAL CONTRACTING REFORM

SEC. 501. CONTRACTING PROVISIONS.

    (a) In General.--Part I is amended by adding at the end the 
following:

                  ``CHAPTER 7--CONTRACTING PROVISIONS

``Sec.
``701. Definitions.
``702. Advocate for competition.
``703. Delegation of contracting authority.
``704. Posting of noncompetitive purchase requests for noncompetitive 
                            contracts.
``705. Review of ethical issues.
``706. Ethical restrictions on participation in certain contracting 
                            activity.
``Sec. 701. Definitions
    ``In this chapter--
            ``(1) the term `contracting officer' means an employee of a 
        covered postal entity who has authority to enter into a postal 
        contract;
            ``(2) the term `covered postal entity' means--
                    ``(A) the Postal Service; or
                    ``(B) the Postal Regulatory Commission;
            ``(3) the term `head of a covered postal entity' means--
                    ``(A) in the case of the Postal Service, the 
                Postmaster General; or
                    ``(B) in the case of the Postal Regulatory 
                Commission, the Chairman of the Postal Regulatory 
                Commission;
            ``(4) the term `postal contract' means--
                    ``(A) in the case of the Postal Service, any 
                contract (including any agreement or memorandum of 
                understanding) entered into by the Postal Service for 
                the procurement of goods or services; or
                    ``(B) in the case of the Postal Regulatory 
                Commission, any contract (including any agreement or 
                memorandum of understanding) in an amount exceeding the 
                simplified acquisition threshold (as defined in section 
                134 of title 41 and adjusted under section 1908 of such 
                title) entered into by the Postal Regulatory Commission 
                for the procurement of goods or services; and
            ``(5) the term `senior procurement executive' means the 
        senior procurement executive of a covered postal entity.
``Sec. 702. Advocate for competition
    ``(a) Establishment and Designation.--
            ``(1) There is established in each covered postal entity an 
        advocate for competition.
            ``(2) The head of each covered postal entity shall 
        designate for the covered postal entity 1 or more officers or 
        employees (other than the senior procurement executive) to 
        serve as the advocate for competition.
    ``(b) Responsibilities.--The advocate for competition of a covered 
postal entity shall--
            ``(1) be responsible for promoting--
                    ``(A) the contracting out of functions of the 
                covered postal entity that the private sector can 
                perform equally well or better, and at lower cost; and
                    ``(B) competition to the maximum extent practicable 
                consistent with obtaining best value by promoting the 
                acquisition of commercial items and challenging 
                barriers to competition;
            ``(2) review the procurement activities of the covered 
        postal entity; and
            ``(3) prepare and transmit the annual report required under 
        subsection (c).
    ``(c) Annual Report.--
            ``(1) Preparation.--The advocate for competition of a 
        covered postal entity shall prepare an annual report describing 
        the following:
                    ``(A) The activities of the advocate under this 
                section.
                    ``(B) Initiatives required to promote contracting 
                out and competition.
                    ``(C) Barriers to contracting out and competition.
                    ``(D) In the case of the report prepared by the 
                competition advocate of the Postal Service, the number 
                of waivers made by the Postal Service under section 
                704(c).
            ``(2) Transmission.--The report under this subsection shall 
        be transmitted--
                    ``(A) to Congress;
                    ``(B) to the head of the postal entity;
                    ``(C) to the senior procurement executive of the 
                entity;
                    ``(D) in the case of the competition advocate of 
                the Postal Service, to each member of the Postal 
                Service Board of Governors; and
                    ``(E) in the case of the competition advocate of 
                the Postal Regulatory Commission, to each of the 
                Commissioners of the Commission.
``Sec. 703. Delegation of contracting authority
    ``(a) In General.--
            ``(1) Policy.--Not later than 60 days after the date of 
        enactment of this chapter, the head of each covered postal 
        entity shall issue a policy on contracting officer delegations 
        of authority for postal contracts for the covered postal 
        entity.
            ``(2) Contents.--The policy issued under paragraph (1) 
        shall require that--
                    ``(A) notwithstanding any delegation of authority 
                with respect to postal contracts, the ultimate 
                responsibility and accountability for the award and 
                administration of postal contracts resides with the 
                senior procurement executive; and
                    ``(B) a contracting officer shall maintain an 
                awareness of and engagement in the activities being 
                performed on postal contracts of which that officer has 
                cognizance, notwithstanding any delegation of authority 
                that may have been executed.
    ``(b) Posting of Delegations.--
            ``(1) In general.--The head of each covered postal entity 
        shall make any delegation of authority for postal contracts 
        outside the functional contracting unit readily available and 
        accessible on the website of the covered postal entity.
            ``(2) Effective date.--This paragraph shall apply to any 
        delegation of authority made on or after 30 days after the date 
        of enactment of this chapter.
``Sec. 704. Posting of noncompetitive purchase requests for 
              noncompetitive contracts
    ``(a) Posting Required.--
            ``(1) Postal regulatory commission.--The Postal Regulatory 
        Commission shall make the noncompetitive purchase request for 
        any noncompetitive award for any contract (including any 
        agreement or memorandum of understanding) entered into by the 
        Postal Regulatory Commission for the procurement of goods and 
        services, in an amount of $20,000 or more, including the 
        rationale supporting the noncompetitive award, publicly 
        available on the website of the Postal Regulatory Commission--
                    ``(A) not later than 14 days after the date of the 
                award of the noncompetitive contract; or
                    ``(B) not later than 30 days after the date of the 
                award of the noncompetitive contract, if the basis for 
                the award was a compelling business interest.
            ``(2) Postal service.--The Postal Service shall make the 
        noncompetitive purchase request for any noncompetitive award of 
        a postal contract in an amount of $250,000 or more, including 
        the rationale supporting the noncompetitive award, publicly 
        available on the website of the Postal Service--
                    ``(A) not later than 14 days after the date of the 
                award; or
                    ``(B) not later than 30 days after the date of the 
                award, if the basis for the award was a compelling 
                business interest.
            ``(3) Adjustments to the posting threshold for the postal 
        service.--
                    ``(A) Review and determination.--Not later than 
                January 31 of each year, the Postal Service shall--
                            ``(i) review the $250,000 threshold 
                        established under paragraph (2); and
                            ``(ii) based on any change in the Consumer 
                        Price Index for all-urban consumers of the 
                        Department of Labor, determine whether an 
                        adjustment to the threshold shall be made.
                    ``(B) Amount of adjustments.--An adjustment under 
                subparagraph (A) shall be made in increments of $5,000. 
                If the Postal Service determines that a change in the 
                Consumer Price Index for a year would require an 
                adjustment in an amount that is less than $5,000, the 
                Postal Service may not make an adjustment to the 
                threshold for the year.
            ``(4) Effective date.--This subsection shall apply to any 
        noncompetitive contract awarded on or after the date that is 90 
        days after the date of enactment of this chapter.
    ``(b) Public Availability.--
            ``(1) In general.--Subject to paragraph (2), the 
        information required to be made publicly available by a covered 
        postal entity under subsection (a) shall be readily accessible 
        on the website of the covered postal entity.
            ``(2) Protection of proprietary information.--A covered 
        postal entity shall--
                    ``(A) carefully screen any description of the 
                rationale supporting a noncompetitive award required to 
                be made publicly available under subsection (a) to 
                determine whether the description includes proprietary 
                data (including any reference or citation to the 
                proprietary data) or security-related information; and
                    ``(B) remove any proprietary data or security-
                related information before making publicly available a 
                description of the rationale supporting a 
                noncompetitive award.
    ``(c) Waivers.--
            ``(1) Waiver permitted.--If the Postal Service determines 
        that making a noncompetitive purchase request for a postal 
        contract of the Postal Service publicly available would risk 
        placing the Postal Service at a competitive disadvantage 
        relative to a private sector competitor, the senior procurement 
        executive, in consultation with the advocate for competition of 
        the Postal Service, may waive the requirements under subsection 
        (a).
            ``(2) Form and content of waiver.--
                    ``(A) Form.--A waiver under paragraph (1) shall be 
                in the form of a written determination placed in the 
                file of the contract to which the noncompetitive 
                purchase agreement relates.
                    ``(B) Content.--A waiver under paragraph (1) shall 
                include--
                            ``(i) a description of the risk associated 
                        with making the noncompetitive purchase request 
                        publicly available; and
                            ``(ii) a statement that redaction of 
                        sensitive information in the noncompetitive 
                        purchase request would not be sufficient to 
                        protect the Postal Service from being placed at 
                        a competitive disadvantage relative to a 
                        private sector competitor.
            ``(3) Delegation of waiver authority.--The Postal Service 
        may not delegate the authority to approve a waiver under 
        paragraph (1) to any employee having less authority than the 
        senior procurement executive.
``Sec. 705. Review of ethical issues
    ``If a contracting officer identifies any ethical issues relating 
to a proposed contract and submits those issues and that proposed 
contract to the designated ethics official for the covered postal 
entity before the awarding of that contract, that ethics official 
shall--
            ``(1) review the proposed contract; and
            ``(2) advise the contracting officer on the appropriate 
        resolution of ethical issues.
``Sec. 706. Ethical restrictions on participation in certain 
              contracting activity
    ``(a) Definitions.--In this section--
            ``(1) the term `covered employee' means--
                    ``(A) a contracting officer; or
                    ``(B) any employee of a covered postal entity whose 
                decision making affects a postal contract as determined 
                by regulations prescribed by the head of a covered 
                postal entity;
            ``(2) the term `final conviction' means a conviction, 
        whether entered on a verdict or plea, including a plea of nolo 
        contendere, for which a sentence has been imposed; and
            ``(3) the term `covered relationship' means a covered 
        relationship described in section 2635.502(b)(1) of title 5, 
        Code of Federal Regulations, or any successor thereto.
    ``(b) In General.--
            ``(1) Regulations.--The head of each covered postal entity 
        shall prescribe regulations that--
                    ``(A) require a covered employee to include in the 
                file of any noncompetitive purchase request for a 
                noncompetitive postal contract a written certification 
                that--
                            ``(i) discloses any covered relationship of 
                        the covered employee; and
                            ``(ii) states that the covered employee 
                        will not take any action with respect to the 
                        noncompetitive purchase request that affects 
                        the financial interests of a friend, relative, 
                        or person with whom the covered employee is 
                        affiliated in a nongovernmental capacity, or 
                        otherwise gives rise to an appearance of the 
                        use of public office for private gain, as 
                        described in section 2635.702 of title 5, Code 
                        of Federal Regulations, or any successor 
                        thereto;
                    ``(B) require a contracting officer to consult with 
                the ethics counsel for the covered postal entity 
                regarding any disclosure made by a covered employee 
                under subparagraph (A)(i), to determine whether 
                participation by the covered employee in the 
                noncompetitive purchase request would give rise to a 
                violation of part 2635 of title 5, Code of Federal 
                Regulations (commonly referred to as the Standards of 
                Ethical Conduct for Employees of the Executive Branch), 
                or any successor thereto;
                    ``(C) require the ethics counsel for a covered 
                postal entity to review any disclosure made by a 
                contracting officer under subparagraph (A)(i) to 
                determine whether participation by the contracting 
                officer in the noncompetitive purchase request would 
                give rise to a violation of part 2635 of title 5, Code 
                of Federal Regulations (commonly referred to as the 
                Standards of Ethical Conduct for Employees of the 
                Executive Branch), or any successor thereto;
                    ``(D) under subsections (d) and (e) of section 
                2635.502 of title 5, Code of Federal Regulations, or 
                any successor thereto, require the ethics counsel for a 
                covered postal entity to--
                            ``(i) authorize a covered employee that 
                        makes a disclosure under subparagraph (A)(i) to 
                        participate in the noncompetitive postal 
                        contract; or
                            ``(ii) disqualify a covered employee that 
                        makes a disclosure under subparagraph (A)(i) 
                        from participating in the noncompetitive postal 
                        contract;
                    ``(E) require a contractor to timely disclose to 
                the contracting officer in a bid, solicitation, award, 
                or performance of a postal contract any conflict of 
                interest with a covered employee; and
                    ``(F) include authority for the head of the covered 
                postal entity to grant a waiver or otherwise mitigate 
                any organizational or personal conflict of interest, if 
                the head of the covered postal entity determines that 
                the waiver or mitigation is in the best interests of 
                the covered postal entity.
            ``(2) Posting of waivers.--Not later than 30 days after the 
        head of a covered postal entity grants a waiver described in 
        paragraph (1)(F), the head of the covered postal entity shall 
        make the waiver publicly available on the website of the 
        covered postal entity.
    ``(c) Contract Voidance and Recovery.--
            ``(1) Unlawful conduct.--In any case in which there is a 
        final conviction for a violation of any provision of chapter 11 
        of title 18 relating to a postal contract, the head of a 
        covered postal entity may--
                    ``(A) void that contract; and
                    ``(B) recover the amounts expended and property 
                transferred by the covered postal entity under that 
                contract.
            ``(2) Obtaining or disclosing procurement information.--
                    ``(A) In general.--In any case in which a 
                contractor under a postal contract fails to timely 
                disclose a conflict of interest to the appropriate 
                contracting officer as required under the regulations 
                promulgated under subsection (b)(1)(E), the head of a 
                covered postal entity may--
                            ``(i) void that contract; and
                            ``(ii) recover the amounts expended and 
                        property transferred by the covered postal 
                        entity under that contract.
                    ``(B) Conviction or administrative determination.--
                A case described under subparagraph (A) is any case in 
                which--
                            ``(i) there is a final conviction for an 
                        offense punishable under section 2105 of title 
                        41; or
                            ``(ii) the head of a covered postal entity 
                        determines, based upon a preponderance of the 
                        evidence, that the contractor or someone acting 
                        for the contractor has engaged in conduct 
                        constituting an offense punishable under 
                        section 2105 of such title.''.
    (b) Clerical Amendment.--The table of chapters at the beginning of 
part I is amended by adding at the end the following:

``7. Contracting Provisions.................................     701''.

SEC. 502. TECHNICAL AMENDMENT TO DEFINITION.

    Section 7101(8) of title 41, United States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (C);
            (2) by striking the period at the end of subparagraph (D) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(E) the United States Postal Service and the 
                Postal Regulatory Commission.''.
                                                 Union Calendar No. 291

112th CONGRESS

  2d Session

                               H. R. 2309

                  [Report No. 112-363, Parts I and II]

_______________________________________________________________________

                                 A BILL

 To restore the financial solvency of the United States Postal Service 
and to ensure the efficient and affordable nationwide delivery of mail.

_______________________________________________________________________

                             March 29, 2012

 Reported from the Committee on Rules with an amendment, committed to 
the Committee of the Whole House on the State of the Union, and ordered 
                             to be printed