[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1010 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1010

To amend the provisions of title 5, United States Code, relating to the 
    methodology for calculating the amount of any Postal surplus or 
 supplemental liability under the Civil Service Retirement System, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 17, 2011

  Mr. Carper introduced the following bill; which was read twice and 
referred to the Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
To amend the provisions of title 5, United States Code, relating to the 
    methodology for calculating the amount of any Postal surplus or 
 supplemental liability under the Civil Service Retirement System, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Postal Operations Sustainment and 
Transformation Act of 2011''.

            TITLE I--ANNUITY AND RETIREE HEALTH OBLIGATIONS

SEC. 101. TRANSFER OF AMOUNTS FROM THE CIVIL SERVICE RETIREMENT AND 
              DISABILITY FUND.

    Section 8348(h) of title 5, United States Code, is amended--
            (1) in paragraph (2), by striking subparagraphs (B) and (C) 
        and inserting the following:
                    ``(B)(i) The Office shall--
                            ``(I) redetermine the Postal surplus or 
                        supplemental liability as of the close of each 
                        of fiscal years 2010 through 2043, as if this 
                        subsection (as amended by the Postal Operations 
                        Sustainment and Transformation Act of 2011) had 
                        been in effect since July 1, 1971; and
                            ``(II) report the results of the 
                        redetermination for each such fiscal year, 
                        including appropriate supporting analyses and 
                        documentation, to the United States Postal 
                        Service on or before June 30 of the subsequent 
                        fiscal year.
                    ``(ii) If the result of a redetermination under 
                clause (i) for a fiscal year is a surplus, that amount 
                shall remain in the Fund until distribution is 
                authorized under subparagraph (C).
                    ``(iii) Beginning June 15, 2017, if the result of a 
                redetermination under clause (i) is a supplemental 
                liability, the Office shall establish an amortization 
                schedule, including a series of annual installments 
                commencing on September 30 of the subsequent fiscal 
                year, that provides for the liquidation of such 
                liability by September 30, 2043.
                    ``(C)(i) If the result of a redetermination under 
                subparagraph (B) for fiscal year 2010, 2011, 2012, 
                2013, 2014, 2015, or 2016 is a surplus, that amount, or 
                any part of that amount, may be transferred to the 
                Postal Service Retiree Health Benefits Fund.
                    ``(ii) If the result of a redetermination under 
                subparagraph (B) for any of fiscal years 2017 through 
                2043 is a surplus, that amount, or any part of that 
                amount, may be transferred to--
                            ``(I) the Postal Service Retiree Health 
                        Benefits Fund to pay any liability to the 
                        United States Postal Service Retiree Health 
                        Benefits Fund; or
                            ``(II) if all liability to the Postal 
                        Service Retiree Health Benefits Fund is paid--
                                    ``(aa) the Employees' Compensation 
                                Fund established under section 8147; or
                                    ``(bb) the United States Postal 
                                Service for the repayment of any 
                                obligation issued under section 2005 of 
                                title 39.
                    ``(iii) Any transfer under clause (i) shall be--
                            ``(I) made at the discretion of the Board 
                        of Governors of the Postal Service in the 
                        amount determined by the Board of Governors, 
                        except the amount may not exceed the amount 
                        under section 8909a(d)(3)(A) remaining to be 
                        paid for the applicable fiscal year; and
                            ``(II) credited to the United States Postal 
                        Service for payment of the amount required 
                        under section 8909a(d)(3)(A) for the applicable 
                        fiscal year.
                    ``(iv) Any transfer under clause (ii) shall be--
                            ``(I) made at the discretion of the Board 
                        of Governors of the Postal Service in the 
                        amount determined by the Board of Governors;
                            ``(II) if transferred to the Postal Service 
                        Retiree Health Benefits Fund, credited to the 
                        United States Postal Service for payment of any 
                        liability of the United States Postal Service 
                        to the Postal Service Retiree Health Benefits 
                        Fund for the applicable fiscal year; and
                            ``(III) if transferred to the Employees' 
                        Compensation Fund established under section 
                        8147, credited to the United States Postal 
                        Service for payment of any liability of the 
                        United States Postal Service under chapter 81 
                        for the applicable fiscal year.
                    ``(v) The Board of Governors shall--
                            ``(I) provide written notice to the Office 
                        of any amount to be transferred under this 
                        clause, not later than September 15 of the 
                        fiscal year following the fiscal year for which 
                        the Office determines there is a Postal 
                        surplus; and
                            ``(II) take all actions of the Board under 
                        this clause by a majority vote.
                    ``(vi) The Office shall transfer any amount 
                determined by the Board of Governors to the credit of 
                the United States Postal Service in accordance with 
                this clause.''; and
            (2) by adding at the end the following:
            ``(4) To the extent that a determination under paragraph 
        (1)(A) of the benefits attributable to civilian employment with 
        the United States Postal Service is based on the first sentence 
        of section 8339(a), such determination shall be made in 
        accordance with such sentence and otherwise applicable 
        provisions of law, subject to the following:
                    ``(A) The `average pay' used in the case of any 
                individual shall be a single amount, determined in 
                accordance with section 8331(4), taking into account 
                the rates of basic pay in effect for such individual 
                during the periods of creditable service performed by 
                such individual. Nothing in this subsection shall be 
                construed to permit or require--
                            ``(i) one determination of average pay with 
                        respect to service performed with the United 
                        States Postal Service; and
                            ``(ii) a separate determination of average 
                        pay with respect to service performed with its 
                        predecessor entity in function, or any other 
                        entity.
                    ``(B) With respect to an annuity calculated under 
                section 8339(a), the Office shall calculate the portion 
                of such annuity attributable to civilian employment 
                with the United States Postal Service which follows any 
                other period of creditable service under section 8332 
                (whether with an entity referred to under subparagraph 
                (A)(ii) or otherwise) by--
                            ``(i) determining the period of creditable 
                        service not attributable to civilian employment 
                        with the United States Postal Service;
                            ``(ii) adding the applicable percentages 
                        under section 8339(a) to determine the overall 
                        percentage earned under section 8339(a) for the 
                        period of creditable service determined under 
                        clause (i);
                            ``(iii) multiplying the overall percentage 
                        calculated under clause (ii) by the average pay 
                        (calculated in accordance with subparagraph 
                        (A)) to determine the portion of the annuity 
                        that is not attributable to civilian employment 
                        with the United States Postal Service; and
                            ``(iv) subtracting the portion of the 
                        annuity calculated under clause (iii) from the 
                        total annuity to determine the portion of the 
                        annuity attributable to civilian employment 
                        with the United States Postal Service.
                    ``(C) The calculation under subparagraph (B) shall 
                apply to all benefit payments that have been issued, or 
                which may be issued on or after the date of enactment 
                of the Postal Operations Sustainment and Transformation 
                Act of 2011, that are allocable to the portion of the 
                annuity attributable to civilian employment with the 
                United States Postal Service under subparagraph (B), 
                including benefits payable to individuals who, at the 
                time of the calculation, are retired or employees 
                eligible for benefits under the Civil Service 
                Retirement System.
                    ``(D) The assets allocable to the Postal Fund 
                balance under paragraph (1)(B)(ii) shall be adjusted to 
                reflect the allocation required under subparagraph (C) 
                for the portion of benefits that are not attributable 
                to civilian employment with the United States Postal 
                Service and that were paid before the date of enactment 
                of the Postal Operations Sustainment and Transformation 
                Act of 2011.
                    ``(E)(i) Except as provided in clause (ii), the 
                requirements of subparagraphs (B), (C), and (D) shall 
                not require the Office to revise--
                            ``(I) any valuation or other report issued 
                        before the date of enactment of the Postal 
                        Operations Sustainment and Transformation Act 
                        of 2011; or
                            ``(II) any valuation or report that is 
                        issued before the date that is 90 days after 
                        the date of enactment of the Postal Operations 
                        Sustainment and Transformation Act of 2011.
                    ``(ii)(I) The first actuarial valuation issued 
                after the date that is 90 days after the date of 
                enactment of the Postal Operations Sustainment and 
                Transformation Act of 2011 shall reflect the 
                retroactive allocation of all past service liabilities 
                as specified in this paragraph and corresponding 
                adjustment of assets.
                    ``(II) Each actuarial valuation thereafter shall 
                reflect the subsequent changes in liabilities and 
                assets.
                    ``(F) If the Office lacks complete data necessary 
                to make a determination required under this subsection, 
                the Office shall use its best estimate and shall 
                provide the United States Postal Service with a written 
                report describing the method and any assumptions used 
                in making the determination.
                    ``(G)(i) Not later than 10 days after making any 
                determination under this subsection, the Office shall 
                notify the United States Postal Service of the 
                determination.
                    ``(ii) Not later than 30 days after the date on 
                which the United States Postal Service receives the 
                notice under clause (i), the United States Postal 
                Service may request from the Office all supporting 
                documentation reasonable and necessary to review the 
                determination.
                    ``(iii) The Office shall respond fully to a request 
                under clause (ii) not later than 30 days after the date 
                on which the Office receives the request.
                    ``(iv) Not later than 90 days after the date on 
                which the United States Postal Service receives the 
                information requested under clause (ii), the United 
                States Postal Service may appeal the determination of 
                the Office to the Board of Actuaries of the Civil 
                Service Retirement System. The Board of Actuaries shall 
                review the computations of the Office and may make any 
                adjustment with respect to any such amount which the 
                Board determines appropriate. A determination by the 
                Board of Actuaries under this paragraph shall be 
                final.''.

SEC. 102. TRANSFER OF AMOUNTS FROM THE FEDERAL EMPLOYEES RETIREMENT 
              SYSTEM.

    (a) Postal Service Surplus or Liability Based on Federal Employees 
Retirement System Contributions.--Section 8461 of title 5, United 
States Code, is amended by adding at the end the following:
    ``(o)(1) In this subsection, the term `Postal surplus or 
supplemental liability' means the estimated difference, as determined 
by the Office, between--
    ``(A) the actuarial present value of all future benefits payable 
under this chapter from the Fund to current or former employees of the 
United States Postal Service and attributable to civilian employment 
with the United States Postal Service; and
    ``(B) the sum of--
            ``(i) the actuarial present value of deductions to be 
        withheld from the future basic pay of employees of the United 
        States Postal Service currently subject to this chapter under 
        section 8422;
            ``(ii) the actuarial present value of the future 
        contributions to be made with respect to employees of the 
        United States Postal Service currently subject to this chapter 
        under section 8423(a);
            ``(iii) that portion of the Fund, as of the date the Postal 
        surplus or supplemental liability is determined, attributable 
        to payments to the System by the United States Postal Service 
        and its employees, minus benefit payments attributable to 
        civilian employment with the United States Postal Service, plus 
        the earnings on such amounts while in the System; and
            ``(iv) any other appropriate amount, as determined by the 
        Office in accordance with generally accepted actuarial 
        practices and principles.
    ``(2)(A) The Office shall determine the Postal surplus or 
supplemental liability as of the close of the fiscal year ending 
September 30, 2010, and for each fiscal year thereafter.
    ``(B)(i) If the result of a determination under subparagraph (A) 
for a fiscal year is a surplus, the amount of the surplus shall remain 
in the System until distribution is authorized under this subparagraph.
    ``(ii) If the result of a determination under subparagraph (A) for 
fiscal year 2010, 2011, 2012, 2013, 2014, 2015, 2016, or 2017 is a 
surplus, that amount, or any part of that amount, may be transferred to 
the Postal Service Retiree Health Benefits Fund.
    ``(iii) If the result of a determination under subparagraph (A) for 
fiscal year 2017, or any fiscal year thereafter, is a surplus, that 
amount, or any part of that amount, may be transferred to--
            ``(I) the Postal Service Retiree Health Benefits Fund to 
        pay any liability to the Postal Service Retiree Health Benefits 
        Fund; or
            ``(II) if all liability to the Postal Service Retiree 
        Health Benefits Fund is paid--
                    ``(aa) the Employees' Compensation Fund established 
                under section 8147; or
                    ``(bb) the United States Postal Service for the 
                repayment of any obligation issued under section 2005 
                of title 39.
    ``(iv) Any transfer under clause (ii) shall be--
            ``(I) made at the discretion of the Board of Governors of 
        the Postal Service in the amount determined by the Board of 
        Governors, except the amount may not exceed the amount under 
        section 8909a(d)(3)(A) remaining to be paid for the applicable 
        fiscal year; and
            ``(II) credited to the Postal Service for payment of the 
        amount required under section 8909a(d)(3)(A) for the applicable 
        fiscal year.
    ``(v) Any transfer under clause (iii) shall be--
            ``(I) made at the discretion of the Board of Governors of 
        the Postal Service in the amount determined by the Board of 
        Governors;
            ``(II) if transferred to the Postal Service Retiree Health 
        Benefits Fund, credited to the Postal Service for payment of 
        any liability of the Postal Service to the Postal Service 
        Retiree Health Benefits Fund for the applicable fiscal year; 
        and
            ``(III) if transferred to the Employees' Compensation Fund 
        established under section 8147, credited to the Postal Service 
        for payment of any liability of the Postal Service under 
        chapter 81 for the applicable fiscal year.
    ``(vi) The Board of Governors shall--
            ``(I) provide written notice to the Office of any amount to 
        be transferred under this subparagraph not later than September 
        15 of the fiscal year following the fiscal year for which the 
        Office determines there is a Postal surplus; and
            ``(II) take all actions of the Board under this 
        subparagraph by a majority vote.
    ``(vii) The Office shall transfer any amount determined by the 
Board of Governors to the credit of the Postal Service in accordance 
with this subparagraph.
    ``(C)(i) Beginning June 15, 2017, if the result of a determination 
under subparagraph (A) is a supplemental liability, the Office shall 
establish an amortization schedule, including a series of annual 
installments commencing on September 30 of the subsequent fiscal year, 
which provides for the liquidation of such liability over 30 years.
    ``(ii) An amortization schedule under this subparagraph shall be 
established in accordance with generally accepted actuarial practices 
and principles, with interest computed at the rate used in the then 
most recent valuation of the System.
    ``(iii) The United States Postal Service shall pay each amount 
required under an amortization schedule under this subparagraph to the 
Office, not later than the date scheduled by the Office.
    ``(3) Notwithstanding any other provision of law, the amount of any 
payment under any other subsection of this section that is based upon 
the amount of the supplemental liability shall be computed disregarding 
the portion of the supplemental liability that the Office determines 
will be liquidated by payments under this subsection.
    ``(4)(A) Not later than 10 days after making a determination under 
paragraph (2), the Office shall notify the United States Postal Service 
of the determination.
    ``(B) Not later than 30 days after the date on which the United 
States Postal Service receives the notice under subparagraph (A), the 
United States Postal Service may request from the Office all supporting 
documentation reasonable and necessary to review the determination.
    ``(C) The Office shall respond fully to a request under 
subparagraph (B) not later than 30 days after the date on which the 
Office receives the request.
    ``(D) Not later than 90 days after the date on which the United 
States Postal Service receives the information requested under 
subparagraph (B), the United States Postal Service may appeal the 
determination of the Office to the Board of Actuaries of the Civil 
Service Retirement System. The Board of Actuaries shall review the 
computations of the Office and may make any adjustment with respect to 
any such amount which the Board determines appropriate. A determination 
by the Board of Actuaries under this subsection shall be final.''.

SEC. 103. CALCULATING THE POSTAL SERVICE RETIREE HEALTH BENEFITS FUND 
              LIABILITY ON LONG-TERM FUNDING BASIS.

    Section 8909a(d)(4) of title 5, United States Code, is amended to 
read as follows:
    ``(4) Computations under this subsection shall be--
            ``(A) made consistent with the entry-age normal cost 
        method; and
            ``(B) based on--
                    ``(i) the economic assumptions used in determining 
                the Postal surplus or supplemental liability under 
                section 8348(h) of this title, except that a different 
                discount rate may be applied if necessary to reflect 
                the experience of the Postal Service Retiree Health 
                Benefits Fund; and
                    ``(ii) such other assumptions, including a health 
                care cost trend rate, as the Board of Actuaries of the 
                Civil Service Retirement System determine 
                appropriate.''.

SEC. 104. REPORTING OF DATA BASED ON ASSUMPTIONS OF BOARD OF ACTUARIES.

    Section 3654(b)(2) of title 39, United States Code, is amended by 
adding at the end the following: ``The Office shall at a minimum 
provide data that are based on the assumptions set by the Board of 
Actuaries of the Civil Service Retirement System and used in the 
actuarial valuation of the Postal Service's annuity and postretirement 
health obligations under sections 8348 and 8909a.''.

                 TITLE II--POSTAL SERVICE RESTRUCTURING

SEC. 201. POSTAL POLICY.

    Section 101(b) of title 39, United States Code, is amended--
            (1) by striking ``a maximum degree of''; and
            (2) by striking ``where post offices'' and all that follows 
        through ``a deficit''.

SEC. 202. SPECIFIC POWERS OF THE UNITED STATES POSTAL SERVICE.

    Section 404(d)(2) of title 39, United States Code, is amended--
            (1) by redesignating subparagraphs (A) and (B) as 
        subparagraphs (B) and (C), respectively;
            (2) by inserting before subparagraph (B), as so 
        redesignated, the following:
                    ``(A) shall give primary consideration to whether 
                such closing or consolidation is consistent with the 
                intent of Congress, as stated in section 101(b), that 
                the Postal Service shall provide effective and regular 
                postal services to rural areas, communities, and small 
                towns;''; and
            (3) in subparagraph (B), as so redesignated--
                    (A) by striking clause (iii); and
                    (B) by redesignating clauses (iv) and (v) as 
                clauses (iii) and (iv), respectively.

SEC. 203. EXPANSION OF RETAIL ALTERNATIVES.

    (a) In General.--The United States Postal Service shall develop a 
plan for the expansion of retail alternatives to post offices, such 
as--
            (1) self-service kiosks;
            (2) vending machines;
            (3) the Internet;
            (4) Postal Service employees or contractors on delivery 
        routes; and
            (5) contract postal units.
    (b) Contents.--In developing the plan under subsection (a), the 
Postal Service shall--
            (1) where possible, provide for an increase in customers' 
        access to postal services;
            (2) consider the impact of any decisions on small 
        communities and rural areas; and
            (3) ensure that--
                    (A) postal service continues in small communities 
                and rural areas after implementation of the plan; and
                    (B) community input is solicited where otherwise 
                required by Federal law.
    (c) Submission of Plan.--Not later than 90 days after the date of 
enactment of this Act, the United States Postal Service shall--
            (1) submit the plan developed under subsection (a) to the 
        Committee on Homeland Security and Governmental Affairs of the 
        Senate and the Committee on Oversight and Governmental Reform 
        of the House of Representatives; and
            (2) make the plan available to the public.
    (d) Report on Progress.--Each of the first 5 years after the date 
of enactment of this Act, the Postmaster General shall include in the 
annual report under section 2402 of title 39, United States Code, an 
update on the progress made in implementing the plan under this 
section.

SEC. 204. SERVICE STANDARDS.

    Not later than 1 year after the date of enactment of this Act, the 
United States Postal Service shall exercise its authority under section 
3691 of title 39, United States Code, to establish service standards 
for market-dominant products that guarantee Postal Service customers a 
degree of access to postal services that is consistent with--
            (1) the obligations of the United States Postal Service 
        under section 101(b) of title 39, United States Code, as 
        amended by this Act; and
            (2) the contents of the plan developed under section 203 of 
        this Act.

SEC. 205. NO LIMITATION ON CHANGES IN FREQUENCY OF MAIL DELIVERY.

    Notwithstanding any other provision of law, the United States 
Postal Service shall exercise its authority under section 3691 of title 
39, United States Code, to adjust the frequency of the delivery of 
market-dominant products.

SEC. 206. TIME LIMITS FOR CONSIDERATION OF SERVICE CHANGES.

    Section 3661 of title 39, United States Code, is amended by 
striking subsections (b) and (c) and inserting the following:
    ``(b) Proposed Changes for Market-Dominant Products.--
            ``(1) Submission of proposal.--If the Postal Service 
        determines that there should be a change in the nature of 
        postal services relating to market-dominant products that will 
        generally affect service on a nationwide or substantially 
        nationwide basis, it shall submit a proposal to the Postal 
        Regulatory Commission requesting an advisory opinion on the 
        change.
            ``(2) Advisory opinion.--Upon receipt of a proposal under 
        paragraph (1), the Postal Regulatory Commission shall--
                    ``(A) provide an opportunity for public comment on 
                the proposal; and
                    ``(B) not later than 90 days after the date of 
                receipt, issue an advisory opinion.
            ``(3) Response to opinion.--The Postal Service shall submit 
        to the President and to Congress a response to the advisory 
        opinion issued under paragraph (2), including any 
        recommendations contained therein.
            ``(4) Action on proposal.--The Postal Service may take 
        action regarding a proposal submitted under paragraph (1)--
                    ``(A) on or after the date that is 30 days after 
                the date on which the Postal Service submits the 
                response required under paragraph (3); or
                    ``(B) after the date described in paragraph (2)(B), 
                if--
                            ``(i) the Postal Regulatory Commission 
                        fails to issue an advisory opinion on or before 
                        the date described in paragraph (2)(B); and
                            ``(ii) the action is not otherwise 
                        prohibited under Federal law.''.

               TITLE III--ENHANCED COMMERCIAL FLEXIBILITY

SEC. 301. COOPERATION WITH OTHER AGENCIES.

    Section 411 of title 39, United States Code, is amended in the 
first sentence by striking ``and the Government Printing Office'' 
inserting ``, the Government Printing Office, and agencies and other 
units of State and local governments''.

SEC. 302. WINE AND BEER SHIPPING.

    (a) Mailability.--
            (1) Nonmailable articles.--Section 1716(f) of title 18, 
        United States Code, is amended by striking ``mails'' and 
        inserting ``mails, except to the extent that the mailing is 
        allowable under section 3001(p) of title 39''.
            (2) Intoxicants.--Section 1154(a) of title 18, United 
        States Code, is amended, by inserting ``or, with respect to the 
        mailing of wine or malt beverages, to the extent allowed under 
        section 3001(p) of title 39'' after ``mechanical purposes''.
    (b) Regulations.--Section 3001 of title 39, United States Code, is 
amended by adding at the end the following:
    ``(p)(1) Wine or malt beverages shall be considered mailable if 
mailed--
            ``(A) by a licensed winery or brewery, in accordance with 
        applicable regulations under paragraph (2); and
            ``(B) in accordance with the law of the State, territory, 
        or district of the United States where the addressee or duly 
        authorized agent takes delivery.
    ``(2) The Postal Service shall prescribe such regulations as may be 
necessary to carry out this subsection, including regulations providing 
that--
            ``(A) the mailing shall be by a means established by the 
        Postal Service to ensure direct delivery to the addressee or a 
        duly authorized agent at a postal facility;
            ``(B) the addressee (and any duly authorized agent) shall 
        be an individual at least 21 years of age, and shall present a 
        valid, government-issued photo identification at the time of 
        delivery;
            ``(C) the wine or malt beverages may not be for resale or 
        other commercial purpose; and
            ``(D) the winery or brewery involved shall--
                    ``(i) certify in writing to the satisfaction of the 
                Postal Service, through a registration process 
                administered by the Postal Service, that the mailing is 
                not in violation of any provision of this subsection or 
                regulation prescribed under this subsection; and
                    ``(ii) provide any other information or affirmation 
                that the Postal Service may require, including with 
                respect to the prepayment of State alcohol beverage 
                taxes.
    ``(3) For purposes of this subsection--
            ``(A) a winery shall be considered to be licensed if it 
        holds an appropriate basic permit issued--
                    ``(i) under the Federal Alcohol Administration Act; 
                and
                    ``(ii) under the law of the State in which the 
                winery is located; and
            ``(B) a brewery shall be considered to be licensed if--
                    ``(i) it possesses a notice of registration and 
                bond approved by the Alcohol and Tobacco Tax and Trade 
                Bureau of the Department of the Treasury; and
                    ``(ii) it is licensed to manufacture and sell beer 
                in the State in which the brewery is located.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the earlier of--
            (1) the date on which the Postal Service issues regulations 
        under section 3001(p) of title 39, United States Code, as 
        amended by this section; and
            (2) 120 days after the date of enactment of this Act.

SEC. 303. PRESERVING VOLUME.

    (a) Modern Rate Regulation.--Section 3622(c)(10) of title 39, 
United States Code, is amended by striking subparagraph (A) and 
inserting the following:
                    ``(A) result in compliance by the applicable class 
                of mail with the standard under paragraph (2); and''.
    (b) New Products and Transfers of Products Between the Market-
Dominant and Competitive Categories of Mail.--Section 3642(d) of title 
39, United States Code, is amended--
            (1) in subsection (d), by adding at the end the following:
            ``(3) Timing of review.--The Postal Regulatory Commission 
        shall issue a final decision on any request to add, transfer, 
        or remove--
                    ``(A) a market-dominant product or competitive 
                product of general applicability, not later than 45 
                days after the date of the filing of the request; and
                    ``(B) a competitive product that is not of general 
                applicability, not later than 15 days after the date of 
                the filing of the request.''; and
            (2) in subsection (e)--
                    (A) in paragraph (2), by striking the period at the 
                end and inserting ``; or'';
                    (B) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively, and adjusting 
                the margins accordingly;
                    (C) by striking ``unless it'' and inserting the 
                following: unless--
            ``(1) it''; and
                    (D) by adding at the end the following:
            ``(2) the Postal Regulatory Commission has failed to issue 
        a final decision under subsection (d) before the date required 
        under subsection (d)(3).''.

SEC. 304. NON-POSTAL PRODUCTS AND SERVICES.

    (a) Specific Powers.--Section 404 of title 39, United States Code, 
is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (6) through (8) as 
                paragraphs (7) through (9), respectively; and
                    (B) by inserting after paragraph (5) the following:
            ``(6) to provide other services that are not postal 
        services, as defined in section 102(5), after--
                    ``(A) the Postal Regulatory Commission--
                            ``(i) makes a determination under section 
                        3642 that the provision of such services 
                        utilizes the processing, transportation, 
                        delivery, retail network, or technology of the 
                        Postal Service in a manner that is consistent 
                        with the public interest and that does not 
                        create unfair competition;
                            ``(ii) publishes the notice required under 
                        section 3642(d)(1) with respect to the 
                        determination; and
                            ``(iii) classifies each such service as a 
                        market-dominant product, competitive product, 
                        experimental product, or new product, as 
                        required under chapter 36 of title 39, United 
                        States Code;''; and
            (2) in subsection (e)(1), by inserting before the period at 
        the end the following: ``, except that the term `nonpostal 
        service' shall not include any service that may be offered 
        pursuant to specific authority in this title or pursuant to 
        other statutory authority''.

                   TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. ARBITRATION; LABOR DISPUTES.

    Section 1207(c)(2) of title 39, United States Code, is amended--
            (1) by inserting ``(A)'' after ``(2)'';
            (2) by striking the last sentence and inserting ``The 
        arbitration board shall render a decision not later than 45 
        days after the date of its appointment.''; and
            (3) by adding at the end the following:
            ``(B) In rendering a decision under this paragraph, the 
        arbitration board shall consider such relevant factors as--
                    ``(i) the financial condition of the Postal 
                Service;
                    ``(ii) the flexibilities and restrictions in the 
                rate system established under the Postal Accountability 
                and Enhancement Act (Public Law 109-435; 120 Stat. 
                3198), and the amendments made by that Act; and
                    ``(iii) the requirement related to pay and 
                compensation comparability under section 1003(a) of 
                this title.''.

SEC. 402. REVISED REPORTING REQUIREMENT.

    Section 3652(a) of title 39, United States Code, is amended by 
striking ``90 days after the end of each year'' and inserting ``the 
next January 15 after the end of each year''.

SEC. 403. DELEGATION OF AUTHORITY.

    Section 402 of title 39, United States Code, is amended to read as 
follows:
``Sec. 402. Delegation of authority
    ``(a) Delegation Permitted.--The Board of Governors may delegate 
the authority vested in it, including the powers, duties, and 
obligations specifically vested in the Governors, to the Postmaster 
General under such terms, conditions, and limitations, including the 
power of redelegation, as it deems desirable.
    ``(b) Committees.--The Board may establish such committees of the 
Board, and delegate such powers to any committee, as the Board 
determines appropriate to carry out its functions and duties.
    ``(c) Other Provisions.--Delegations to the Postmaster General or 
committees shall be consistent with other provisions of this title, 
shall not relieve the Board of full responsibility for the carrying out 
of its duties and functions, or for ensuring that the Postmaster 
General complies with all applicable provisions of law, and shall be 
revocable by the Governors in their exclusive judgment.''.

SEC. 404. CONTRACT DISPUTES.

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