[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3076 Enrolled Bill (ENR)]
H.R.3076
One Hundred Seventeenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday,
the third day of January, two thousand and twenty-two
An Act
To provide stability to and enhance the services of the United States
Postal Service, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Postal Service
Reform Act of 2022''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--POSTAL SERVICE FINANCIAL REFORMS
Sec. 101. Postal Service Health Benefits Program.
Sec. 102. USPS Fairness Act.
Sec. 103. Nonpostal services.
TITLE II--POSTAL SERVICE OPERATIONAL REFORMS
Sec. 201. Performance targets and transparency.
Sec. 202. Integrated delivery network.
Sec. 203. Review of Postal Service cost attribution guidelines.
Sec. 204. Rural newspaper sustainability.
Sec. 205. Funding of Postal Regulatory Commission.
Sec. 206. Flats operations study and reform.
Sec. 207. Reporting requirements.
Sec. 208. Postal Service transportation selection policy revisions.
Sec. 209. USPS Inspector General oversight of Postal Regulatory
Commission.
TITLE III--SEVERABILITY
Sec. 301. Severability.
SEC. 2. DEFINITIONS.
(a) Commission.--In this Act, the term ``Commission'' means the
Postal Regulatory Commission.
(b) Terms Defined in Title 39, United States Code.--In this Act,
the terms ``competitive product'', ``market-dominant product'', and
``Postal Service'' have the meanings given those terms in section 102
of title 39, United States Code.
TITLE I--POSTAL SERVICE FINANCIAL REFORMS
SEC. 101. POSTAL SERVICE HEALTH BENEFITS PROGRAM.
(a) Establishment.--
(1) In general.--Chapter 89 of title 5, United States Code, is
amended by inserting after section 8903b the following:
``Sec. 8903c. Postal Service Health Benefits Program
``(a) Definitions.--In this section--
``(1) the term `covered Medicare individual' means an
individual who is entitled to benefits under Medicare part A, but
excluding an individual who is eligible to enroll under such part
under section 1818 or 1818A of the Social Security Act (42 U.S.C.
1395i-2, 1395i-2a);
``(2) the term `initial contract year' means the contract year
beginning in January of 2025;
``(3) the term `initial participating carrier' means a carrier
that enters into a contract with the Office to participate in the
Program during the initial contract year;
``(4) the term `Medicare part A' means part A of title XVIII of
the Social Security Act (42 U.S.C. 1395c et seq.);
``(5) the term `Medicare part B' means part B of title XVIII of
the Social Security Act (42 U.S.C. 1395j et seq.);
``(6) the term `Office' means the Office of Personnel
Management;
``(7) the term `Postal Service' means the United States Postal
Service;
``(8) the term `Postal Service annuitant' means an annuitant
enrolled in a health benefits plan under this chapter whose
Government contribution is required to be paid under section
8906(g)(2);
``(9) the term `Postal Service employee' means an employee of
the Postal Service enrolled in a health benefits plan under this
chapter whose Government contribution is paid by the Postal
Service;
``(10) the term `Postal Service Medicare covered annuitant'
means an individual who--
``(A) is a Postal Service annuitant; and
``(B) is a covered Medicare individual;
``(11) the term `Program' means the Postal Service Health
Benefits Program established under subsection (c) within the
Federal Employees Health Benefits Program;
``(12) the term `Program plan' means a health benefits plan
offered under the Program; and
``(13) the definitions set forth in section 8901 shall apply,
and for the purposes of applying such definitions in carrying out
this section, a Postal Service employee and Postal Service
annuitant shall be treated in the same manner as an employee and an
annuitant (as those terms are defined in paragraphs (1) and (3),
respectively, of section 8901), consistent with the requirements of
this section.
``(b) Application.--The requirements under this section shall--
``(1) apply to the initial contract year and each contract year
thereafter; and
``(2) supersede any other provision of this chapter
inconsistent with such requirements, as determined by the Office.
``(c) Establishment of the Postal Service Health Benefits
Program.--
``(1) In general.--
``(A) Establishment.--The Office shall establish the Postal
Service Health Benefits Program within the Federal Employees
Health Benefits Program under this chapter, under which the
Office may contract with carriers to offer health benefits
plans as described under this section.
``(B) Applicability of chapter requirements to contracts.--
Except as otherwise provided in this section, any contract
described in subparagraph (A) shall be consistent with the
requirements of this chapter for contracts under section 8902
with carriers to offer health benefits plans other than under
this section.
``(C) Program plans and participation.--The Program shall--
``(i) to the greatest extent practicable--
``(I) with respect to each plan provided by a
carrier under this subchapter in which the total
enrollment includes, in the contract year beginning in
January 2023, 1,500 or more enrollees who are Postal
Service employees or Postal Service annuitants, include
a plan offered by that carrier with equivalent benefits
and cost-sharing requirements as provided under
paragraph (2), except that the Director of the Office
may exempt any comprehensive medical plan from this
requirement; and
``(II) include plans offered by any other carrier
determined appropriate by the Office;
``(ii) provide for enrollment in Program plans of
Postal Service employees and Postal Service annuitants, in
accordance with subsection (d);
``(iii) provide for enrollment in a Program plan as an
individual, for self plus one, or for self and family; and
``(iv) not provide for enrollment in a Program plan of
an individual who is not a Postal Service employee or
Postal Service annuitant (except as a member of family of
such an employee or annuitant or as provided under
paragraph (4)).
``(2) Coverage with equivalent benefits and cost-sharing.--In
the initial contract year, the Office shall ensure that each
carrier participating in the Program provides under the Program
plans offered by the carrier benefits and cost-sharing requirements
that are equivalent to the benefits and cost-sharing requirements
under the health benefits plans offered by the carrier under this
chapter that are not Program plans, except that prescription drug
benefits and cost-sharing requirements may differ between the
Program plans and other health benefits plans offered by the
carrier under this chapter to the extent needed to integrate the
Medicare part D prescription drug benefits coverage required under
subsection (h)(2).
``(3) Applicability of federal employees health benefits
program requirements.--Except as otherwise set forth in this
section, the provisions of this chapter applicable to health
benefits plans offered by carriers under section 8903 or 8903a
shall apply to plans offered under the Program.
``(4) Application of continuation coverage.--In accordance with
rules established by the Office, section 8905a shall apply to
health benefits plans offered under this section in the same manner
as such section applies to other health benefits plans offered
under this chapter.
``(d) Election of Coverage.--Each Postal Service employee and
Postal Service annuitant who elects to receive health benefits coverage
under this chapter--
``(1) shall be subject to the requirements of this section; and
``(2) may not enroll in any other health benefits plan offered
under any other section of this chapter.
``(e) Requirement of Medicare Enrollment for Certain Annuitants and
Their Family Members.--
``(1) Medicare covered annuitants.--Except as provided under
paragraph (3), a Postal Service Medicare covered annuitant may not
enroll in a Program plan unless the annuitant is entitled to
benefits under Medicare part A and enrolled in Medicare part B.
``(2) Medicare covered family members.--Except as provided
under paragraph (3), in the case of a Postal Service annuitant who
is entitled to benefits under Medicare part A and required under
this subsection to enroll in Medicare part B to enroll under the
Program, if a member of family of such Postal Service annuitant is
a covered Medicare individual, that member of family may not enroll
under the Program as a member of family of the Postal Service
annuitant unless that member of family is entitled to benefits
under Medicare part A and enrolled in Medicare part B.
``(3) Exceptions.--
``(A) In general.--The requirements under paragraphs (1)
and (2), as applicable, shall not apply with respect to an
individual in the following cases:
``(i) Current postal service annuitants.--The
individual, as of January 1, 2025, is a Postal Service
annuitant who is not both entitled to benefits under
Medicare part A and enrolled in Medicare part B.
``(ii) Current employees aged 64 and over.--The
individual, as of January 1, 2025, is a Postal Service
employee and is at least 64 years of age.
``(iii) Postal service medicare covered annuitants and
family members residing abroad.--For any contract year with
respect to which the individual is a Postal Service
Medicare covered annuitant or a member of family of a
Postal Service Medicare covered annuitant and resides
outside the United States (which includes the States, the
District of Columbia, the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, American Samoa, and the Northern
Mariana Islands), provided that the individual demonstrates
such residency to the Postal Service in accordance with
regulations issued by the Postal Service.
``(iv) Postal service medicare covered annuitants and
family members enrolled under va coverage.--The
individual--
``(I) is a Postal Service Medicare covered
annuitant or a member of family of a Postal Service
Medicare covered annuitant; and
``(II) is enrolled in health care benefits provided
by the Department of Veterans Affairs under subchapter
II of chapter 17 of title 38, United States Code.
``(v) Postal service medicare covered annuitants and
family members eligible for ihs health services.--The
individual--
``(I) is a Postal Service Medicare covered
annuitant or a member of family of a Postal Service
Medicare covered annuitant; and
``(II) is eligible for health services from the
Indian Health Service.
``(B) Regulations for va and ihs exceptions.--Not later
than 1 year after the date of enactment of this section, the
Office shall, in consultation with the Secretary of Veterans
Affairs, the Secretary of Health and Human Services, and the
Postmaster General, promulgate any regulations necessary to
implement clauses (iv) and (v) of subparagraph (A).
``(C) List of individuals residing abroad.--The Postal
Service shall provide a list of individuals who satisfy the
exception under subparagraph (A)(iii) to the Office.
``(4) Process for information collection and dissemination.--
The Postal Service and the Office, in consultation with the Social
Security Administration and the Centers for Medicare & Medicaid
Services, shall establish a process that will enable the Postal
Service to timely inform Postal Service employees, Postal Service
annuitants, and members of family of such employees and annuitants
of the requirements described in paragraphs (1) and (2) in order to
be eligible to enroll in Program plans under this section.
``(f) Transitional Open Season.--
``(1) Definitions.--In this subsection--
``(A) the term `current option', with respect to an
individual, means the option under a plan under this chapter in
which the individual is enrolled during the contract year
preceding the initial contract year; and
``(B) the term `current plan', with respect to an
individual, means the plan under this chapter in which the
individual is enrolled during the contract year preceding the
initial contract year.
``(2) Automatic enrollment.--
``(A) In general.--Subject to subparagraphs (B) and (C), in
the case of an individual who is a Postal Service employee or
Postal Service annuitant eligible to enroll in a Program plan
under subsection (d), who is enrolled in a current plan, and
who does not enroll in a Program plan during the open season
that immediately precedes the initial contract year, the Office
shall automatically enroll the individual, as of the start of
the initial contract year, in a Program plan offered by the
carrier of the individual's current plan.
``(B) Carriers offering multiple program plans or
options.--If the carrier of the current plan of an individual
described in subparagraph (A) offers more than 1 Program plan
or option, the Office, in carrying out subparagraph (A), shall
automatically enroll the individual in the plan and option that
provide coverage with equivalent benefits and cost sharing, as
described in subsection (c)(2), to the individual's current
plan and current option.
``(C) Carriers not offering program plans.--If the carrier
of the current plan of an individual described in subparagraph
(A) does not offer a Program plan, the Office, in carrying out
subparagraph (A), shall automatically enroll the individual in
the lowest-cost nationwide plan option within the Program that
is not a high deductible health plan and does not charge an
association or membership fee.
``(g) OPM Regulations.--
``(1) In general.--Not later than 1 year after the date of
enactment of this section, the Director of the Office shall issue
regulations to carry out this section.
``(2) Consultation.--In issuing regulations under paragraph
(1), the Director of the Office shall consult, as necessary, with
the Secretary of Health and Human Services, the Secretary of
Veterans Affairs, the Commissioner of Social Security, and the
Postmaster General.
``(3) Contents.--The regulations issued under paragraph (1)
shall include--
``(A) any provisions necessary to implement this section;
``(B) a process under which Postal Service annuitants and
affected family members are timely informed of the enrollment
requirements and may request, in writing, any additional
enrollment information;
``(C) provisions under which a Postal Service employee or
Postal Service annuitant enrolled under the Program may request
a belated change of plan and may be prospectively enrolled in
the plan of the employee's or annuitant's choice; and
``(D) provisions for individuals to cancel coverage under
the Program in writing to the Postal Service because the
individuals choose not to enroll in, or to disenroll from,
Medicare part B.
``(h) Medicare Coordination.--
``(1) In general.--The Office shall require each Program plan
to provide benefits for covered Medicare individuals pursuant to a
coordination of benefits method approved by the Office.
``(2) Medicare part d prescription drug benefits.--The Office
shall require each Program plan to provide prescription drug
benefits to any Postal Service annuitant and member of family of
such annuitant who is a part D eligible individual (as defined in
section 1860D-1(a)(3)(A) of the Social Security Act) through
employment-based retiree health coverage (as defined in section
1860D-22(c)(1) of such Act) through--
``(A) a prescription drug plan (as defined in section
1860D-41(a)(14) of such Act); or
``(B) contracts between such a Program plan and PDP
sponsor, as defined in section 1860D-41(a)(13) of such Act, of
such a prescription drug plan.
``(i) Postal Service Contribution.--
``(1) In general.--Subject to subsection (k), for purposes of
applying section 8906(b) to the Postal Service, the weighted
average shall be calculated in accordance with paragraphs (2) and
(3).
``(2) Weighted average calculation.--Not later than October 1
of each year (beginning with 2024), the Office shall determine the
weighted average of the rates established pursuant to subsection
(c)(2) for Program plans that will be in effect during the
following contract year with respect to--
``(A) enrollments for self only;
``(B) enrollments for self plus one; and
``(C) enrollments for self and family.
``(3) Weighting in computing rates for initial contract year.--
In determining such weighted average of the rates for the initial
contract year, the Office shall take into account (for purposes of
section 8906(a)(2)) the enrollment of Postal Service employees and
annuitants in the health benefits plans offered by the initial
participating carriers as of March 31, 2023.
``(4) Payment of late enrollment penalties.--The Postal Service
may direct the Office to pay the amounts required by an agreement
between the United States Postal Service and the Secretary of the
Department of Health and Human Services under section 1839(e)(1) of
the Social Security Act (42 U.S.C. 1395r(e)(1)) from the Postal
Service Retiree Health Benefits Fund established under section
8909a until depleted and thereafter shall pay such amounts from the
Postal Service Fund established under section 2003 of title 39.
``(j) Reserves.--
``(1) Separate reserves.--
``(A) In general.--The Office shall ensure that each
Program plan maintains separate reserves (including a separate
contingency reserve) with respect to the enrollees in the
Program plan in accordance with section 8909.
``(B) Applicability of section 8909 to contingency
reserves.--All provisions of section 8909 relating to
contingency reserves shall apply to contingency reserves of
Program plans in the same manner as to the contingency reserves
of other plans under this chapter, except to the extent that
such provisions are inconsistent with the requirements of this
subsection.
``(C) References.--For purposes of the Program, each
reference to `the Government' in section 8909 shall be deemed
to be a reference to the Postal Service.
``(D) Amounts to be credited.--The reserves (including the
separate contingency reserve) maintained for each Program plan
shall be credited with a proportionate amount of the funds in
the reserves for health benefits plans offered by the carrier.
``(2) Discontinuation of program plan.--In applying section
8909(e) relating to a Program plan that is discontinued, the Office
shall credit the separate Postal Service contingency reserve
maintained under paragraph (1) for that plan only to the separate
Postal Service contingency reserves of the Program plans continuing
under this chapter.
``(k) No Effect on Existing Law.--Nothing in this section shall be
construed as affecting section 1005(f) of title 39 regarding
variations, additions, or substitutions to the provisions of this
chapter.
``(l) Health Benefits Education Program.--
``(1) Definition.--In this subsection, the term `navigator'
means an employee of the Postal Service or of a contractor of the
Postal Service who is designated by the Postal Service or
contractor to carry out activities under paragraph (5).
``(2) Establishment.--Not later than 18 months after the date
of enactment of this section, the Postal Service shall establish a
Health Benefits Education Program.
``(3) Requirements.--In carrying out the Health Benefits
Education Program established under paragraph (2), the Postal
Service shall--
``(A) notify Postal Service annuitants and Postal Service
employees about the Postal Service Health Benefits Program
established under subsection (c)(1);
``(B) provide information regarding the Postal Service
Health Benefits Program and the requirements of this section to
Postal Service annuitants and Postal Service employees,
including--
``(i) a description of the health care options
available under such Program;
``(ii) the enrollment provisions of subsection (d); and
``(iii) the requirement that Postal Service annuitants
and their family members be enrolled in Medicare under
subsection (e);
``(C) respond and provide answers to any inquiry from such
employees and annuitants about the Postal Service Health
Benefits Program, in consultation with the Office as necessary;
``(D) in consultation with the Centers for Medicare &
Medicaid Services and the Social Security Administration,
provide information to individuals about enrollment under the
Medicare program under title XVIII of the Social Security Act,
and refer individuals to the Centers for Medicare & Medicaid
Services and the Social Security Administration as necessary
for additional enrollment information; and
``(E) carry out, or provide for through contract or other
arrangement, the activities described in paragraph (5).
``(4) Information.--
``(A) Information from opm.--The Office shall timely
provide the Postal Service with such information as necessary
to conduct the Health Benefits Education Program.
``(B) Coordination with opm.--The Postal Service shall
coordinate with the Office, in consultation with the Centers
for Medicare & Medicaid Services and the Social Security
Administration, to obtain and confirm the accuracy of
information as the Postal Service determines to be necessary to
conduct the Health Benefits Education Program.
``(5) Navigator activities.--
``(A) Activities.--The activities described in this
paragraph, with respect to Program plans and the health care
options available under the Program, are the following:
``(i) Educational activities for annuitants and
employees of the Postal Service to raise awareness of the
availability of Program plans and requirements for
enrolling in such plans, including requirements to be
entitled to Medicare part A and enroll in Medicare part B.
``(ii) Distribution of fair and impartial information
concerning enrollment in such plans.
``(iii) Facilitation of enrollment in such plans.
``(iv) Provision of information in a manner that is
culturally and linguistically appropriate to the needs of
the population being served by the Program plans.
``(B) Standards.--
``(i) In general.--The Postal Service shall establish
standards for navigators carrying out the activities under
this paragraph to--
``(I) engage in the navigator activities described
in subparagraph (A); and
``(II) avoid conflicts of interest.
``(ii) Contents.--The standards established under
clause (i) shall provide that a navigator may not--
``(I) be a health insurance carrier; or
``(II) receive any consideration directly or
indirectly from any health insurance carrier in
connection with the enrollment of any individual in a
Program plan.
``(C) Fair and impartial information and services.--The
Postal Service, in consultation as necessary with the Office
and the Centers for Medicare & Medicaid Services, shall develop
standards to ensure that information made available by
navigators under this paragraph is fair, accurate, and
impartial.
``(6) Regulations.--
``(A) In general.--Not later than 18 months after the date
of enactment of this section, the Postmaster General shall
issue regulations to establish the Health Benefits Education
Program required under this subsection.
``(B) Contents.--The regulations issued under subparagraph
(A) shall include--
``(i) provisions for the notification of Postal Service
annuitants and Postal Service employees about the Program,
including a description of the available health benefits
options, including a process for notifying Postal Service
employees who become eligible for Medicare part B and
Postal Service Medicare covered annuitants about their
choices;
``(ii) provisions for notifying Postal Service
annuitants, Postal Service employees, and their family
members of the requirements under subsection (e) to enroll
in Medicare as a condition of eligibility to enroll in the
Program; and
``(iii) a process, developed in consultation with the
Social Security Administration, the Centers for Medicare &
Medicaid Services, and the Office, for addressing any
inquiry from Postal Service annuitants and Postal Service
employees about the Program or Medicare enrollment.''.
(2) Technical and conforming amendments.--
(A) Service benefit plans.--Section 8903(1) of title 5,
United States Code, is amended by striking ``two levels of
benefits'' and inserting ``at least 2 levels of benefits for
enrollees under this chapter generally and at least 2 levels of
benefits for enrollees under the Postal Service Health Benefits
Program established under section 8903c''.
(B) Table of sections.--The table of sections for chapter
89 of title 5, United States Code, is amended by inserting
after the item relating to section 8903b the following:
``8903c. Postal Service Health Benefits Program.''.
(C) Application to certain postal service annuitants or
family members.--Section 1862(b)(1)(E) of the Social Security
Act (42 U.S.C. 1395y(b)(1)(E)) is amended by adding at the end
the following:
``(iv) Application to certain postal service annuitants
or family members.--Nothing in this paragraph shall
prohibit a group health plan from determining an
individual's eligibility to enroll in a health benefits
plan offered under the Postal Service Health Benefits
Program under section 8903c of title 5, United States Code,
in accordance with subsection (e) of such section.''.
(b) Coordination With Medicare.--
(1) Part b special enrollment period.--Section 1837 of the
Social Security Act (42 U.S.C. 1395p) is amended by adding at the
end the following new subsection:
``(o)(1) In the case of an individual who--
``(A) as of January 1, 2024, is--
``(i) a Postal Service annuitant who is entitled to
benefits under part A of title XVIII of the Social Security
Act, but excluding an individual who is eligible to enroll
under such part under section 1818 of such Act or 1818A of such
Act (42 U.S.C. 1395i-2, 1395i-2a); or
``(ii) a member of family (as defined in section 8901(5) of
title 5, United States Code) of a Postal Service annuitant and
is entitled to benefits under part A of title XVIII of the
Social Security Act, but excluding an individual who is
eligible to enroll under such part under section 1818 of such
Act or 1818A of such Act (42 U.S.C. 1395i-2, 1395i-2a); and
``(B) is not enrolled under this part, the individual may elect
to be enrolled under this part during a special enrollment period
during the 6-month period beginning on April 1, 2024.
``(2) In this subsection, the term `Postal Service annuitant' means
an annuitant enrolled in a health benefits plan under chapter 89 of
title 5, United States Code, whose Government contribution is required
to be paid under section 8906(g)(2) of such title.''.
(2) Technical and conforming amendments.--
(A) Part a enrollment.--Section 1818(c) of the Social
Security Act (42 U.S.C. 1395i-2(c)) is amended, in the matter
preceding paragraph (1), by striking ``(except subsection (f)
thereof)'' and inserting ``(except subsections (f) and (o)
thereof)''.
(B) Coverage period under part b.--Section 1838 of the
Social Security Act (42 U.S.C. 1395q) is amended by adding at
the end the following:
``(i) Notwithstanding subsection (a), in the case of an individual
who enrolls during the special enrollment period pursuant to section
1837(o), the coverage period shall begin on January 1, 2025.''.
(3) Treatment of part b late enrollment penalty for individuals
enrolling during special enrollment period.--Section 1839(e) of the
Social Security Act (42 U.S.C. 1395r(e)) is amended--
(A) in paragraph (1), by striking ``(as defined in
paragraph (3)(A))'' and by inserting ``(as defined in paragraph
(3)(A)(i)). The Secretary shall enter into an agreement with
the United States Postal Service under which the United States
Postal Service agrees to pay on a quarterly or other periodic
basis to the Secretary (to be deposited in the Treasury to the
credit of the Federal Supplementary Medical Insurance Trust
Fund) an amount equal to the amount of the part B late
enrollment premium increases with respect to the premiums for
eligible individuals (as defined in paragraph (3)(A)(ii)).'';
and
(B) by amending paragraph (3)(A) to read as follows:
``(A) The term `eligible individual' means an individual
who is enrolled under this part B and who--
``(i) in the case of an agreement entered into under
the first sentence of paragraph (1), is within a class of
individuals specified in such agreement; and
``(ii) in the case of an agreement entered into under
the second sentence of paragraph (1), is so enrolled under
this part pursuant to the special enrollment period under
section 1837(o)''.
(4) Part d egwp contracting conforming amendment.--Section
1860D-22(b) of the Social Security Act (42 U.S.C. 1395w-132(b)) is
amended by inserting before the period at the end the following:
``, and shall be applied in a manner to facilitate the offering of
prescription drug benefits under a Program plan under section 8903c
of title 5, United States Code, as required under subsection (h)(2)
of such section, through employment-based retiree health coverage
through--
``(1) a prescription drug plan; or
``(2) contracts between such a Program plan and the PDP sponsor
of such a prescription drug plan.''.
(c) Information Sharing and Dissemination Required for Special
Enrollment Period and Enforcement of Part B Enrollment Requirements.--
(1) Definitions.--In this subsection, the terms ``Medicare part
A'', ``Medicare part B'', ``Office'', ``Postal Service'', and
``Postal Service annuitant'' have the meanings given those terms in
section 8903c of title 5, United States Code, as added by
subsection (a).
(2) Information sharing by opm.--The Office shall, by
regulation, establish a process for providing such information as
is necessary to the Social Security Administration regarding Postal
Service annuitants (and the family members of such annuitants) who
may be eligible to enroll under Medicare part B during the special
enrollment period described in subsection (o) of section 1837 of
the Social Security Act (42 U.S.C. 1395p), as added by subsection
(b), or who may be subject to the enrollment requirements described
in paragraphs (1) and (2) of section 8903c(e) of title 5, United
States Code, as added by subsection (a).
(3) Information sharing by ssa.--The Social Security
Administration shall provide to the Office and the Postal Service
information regarding whether a Postal Service annuitant, or a
family member of such an annuitant, is entitled to benefits under
Medicare part A and enrolled under Medicare part B, to assist the
Office and the Postal Service in determining--
(A) which Postal Service annuitants, and family members of
such annuitants, may be eligible to enroll under Medicare part
B during the special enrollment period described in paragraph
(2); and
(B) whether Postal Service annuitants, and family members
of such annuitants, satisfy the enrollment requirements
described in paragraphs (1) and (2) of section 8903c(e) of
title 5, United States Code, as added by subsection (a).
(d) Funding.--
(1) CMS appropriation.--In addition to amounts otherwise
available, there is appropriated to the Centers for Medicare &
Medicaid Services--Program Management Account, for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$7,500,000, to remain available until expended, for the purposes of
carrying out this section, including the amendments made by this
section.
(2) SSA appropriation.--In addition to amounts otherwise
available, there is appropriated to the Social Security
Administration for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $16,000,000, to remain
available until expended, for the purposes of carrying out this
section (with the exception of the purposes set forth in subsection
(c)(3)(B)), including the amendments made by this section.
(3) OPM appropriation.--In addition to amounts otherwise
available, there is appropriated to the Office of Personnel
Management for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $70,500,000, to remain available until
expended, for the purposes of carrying out this section, including
the amendments made by this section.
(4) Funds credited by postal service.--The United States Postal
Service shall deposit an amount equal to the sum of the amounts
appropriated under paragraphs (1), (2), and (3) into the Treasury
as a miscellaneous receipt from the Postal Service Fund in fiscal
year 2022.
(5) Reimbursement for periodic ssa data sharing.--
(A) Inter-agency agreement.--The Commissioner of Social
Security shall enter into an agreement with the Director of the
Office under which the Director pays the Commissioner from the
Postal Service administrative reserve the full costs (including
systems and administrative costs) of providing the information
described in subsection (c)(3) for the purpose set forth in
subsection (c)(3)(B).
(B) Report to congress.--The Director of the Office--
(i) shall report the amount paid under subparagraph (A)
annually to the Committee on Homeland Security and
Governmental Affairs of the Senate and the Committee on
Oversight and Reform of the House of Representatives; and
(ii) may satisfy the requirement under clause (i) by
including the amount paid under subparagraph (A) in any
other annual report submitted to Congress.
SEC. 102. USPS FAIRNESS ACT.
(a) Short Title.--This section may be cited as the ``USPS Fairness
Act''.
(b) Rational Benefits Funding and Accounting.--
(1) In general.--Section 8909a of title 5, United States Code,
is amended by striking subsection (d) and inserting the following:
``(d)(1) Not later than June 30, 2026, and by June 30 of each
succeeding year, the Office shall compute, for the most recently
concluded fiscal year, the amount (if any) that Government
contributions required to be paid from the Fund under section
8906(g)(2)(A) exceeded the estimated net claims costs under the
enrollment of the individuals described in section 8906(g)(2)(A).
``(2) Not later than September 30 of each year in which the Office
makes a computation under paragraph (1), the United States Postal
Service shall pay into the Fund the amount (if any) of the excess
computed under such paragraph.
``(e) Any computation required under section 3654(b) of title 39
shall be based on--
``(1) the net present value of the future net claims costs with
respect to--
``(A) current annuitants of the United States Postal
Service as of the end of the fiscal year ending on September 30
of the relevant reporting year; and
``(B) current employees of the United States Postal Service
who would, as of September 30 of that year--
``(i) be eligible to become annuitants pursuant to
section 8901(3)(A)(i) or (ii); and
``(ii) if they were retired as of that date, meet the
criteria for coverage of annuitants under section 8905(b);
``(2) economic and actuarial methods and assumptions consistent
with the methods and assumptions used in determining the Postal
surplus or supplemental liability under section 8348(h); and
``(3) any other methods and assumptions, including a health
care cost trend rate, that the Director of the Office determines to
be appropriate.
``(f) After consultation with the United States Postal Service, the
Office shall promulgate any regulations the Office determines necessary
under this subsection.
``(g) For purposes of this section, the term `estimated net claims
costs' shall mean the difference between--
``(1) the sum of--
``(A) the estimated costs incurred by a carrier in
providing health services to, paying for health services
provided to, or reimbursing expenses for health services
provided to, annuitants of the United States Postal Service and
any other persons covered under the enrollment of such
annuitants; and
``(B) an amount of indirect expenses reasonably allocable
to the provision, payment, or reimbursement described in
subparagraph (A), as determined by the Office; and
``(2) the amount withheld from the annuity of or paid by
annuitants of the United States Postal Service under section
8906.''.
(2) Clerical amendment.--The heading of section 8909a of title
5, United States Code, is amended by striking ``Benefit'' and
inserting ``Benefits''.
(c) Application.--
(1) Cancellation of payments.--Any payment required from the
Postal Service under section 8909a of title 5, United States Code,
as in effect on the day before the date of enactment of this Act
that remains unpaid as of such date of enactment is canceled.
(2) Effect of this act.--In any determination relating to the
future liability for retiree health benefits of the United States
Postal Service or the Postal Service Retiree Health Benefits Fund,
the Office of Personnel Management shall take into account the
actual and reasonably expected effects of this Act.
(d) Use of Funds From Sale of Real Property for Certain Payments.--
(1) In general.--Chapter 29 of title 39, United States Code, is
amended by adding at the end the following:
``Sec. 2903. Use of funds from sale of property
``In the event that the Postal Service permanently ceases
operations, any funds derived from the sale of any real property owned
by the Postal Service shall be used to pay any outstanding liability
with respect to the salaries and expenses of any Postal Service
employee. The balance of any remaining funds shall be deposited into
the Postal Service Retiree Health Benefits Fund established under
section 8909a of title 5.''.
(2) Clerical amendment.--The table of sections of such chapter
is amended by adding after the item relating to section 2902 the
following new item:
``2903. Use of funds from sale of property.''.
SEC. 103. NONPOSTAL SERVICES.
(a) Nonpostal Services.--
(1) In general.--Part IV of title 39, United States Code, is
amended by adding after chapter 36 the following:
``CHAPTER 37--NONPOSTAL SERVICES
``Sec.
``3701. Purpose.
``3702. Definitions.
``3703. Postal Service program for State governments.
``3704. Postal Service program for other Government agencies.
``3705. Transparency and accountability for nonpostal services.
``Sec. 3701. Purpose
``The purpose of this chapter is to enable the Postal Service to
increase its net revenues through specific nonpostal products and
services that are expressly authorized by this chapter.
``Sec. 3702. Definitions
``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 `costs attributable' has the meaning given such
term in section 3631;
``(3) the term `year' means a fiscal year;
``(4) the term `local government' means a county, municipality,
city, town, township, local public authority, school district,
special district, intrastate district, council of governments, or
regional or interstate government entity;
``(5) the term `State government' includes the government of
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;
``(6) the term `tribal government' means the government of an
Indian tribe, as that term is defined in section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C. 5304);
and
``(7) the term `United States', when used in a geographical
sense, means the States, 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.
``Sec. 3703. Postal Service program for State governments
``(a) In General.--Notwithstanding any other provision of this
title, the Postal Service may establish a program to enter into
agreements with an agency of any State government, local government, or
tribal government to provide property or nonpostal services to the
public on behalf of such agencies for non-commercial purposes, but only
if--
``(1) such property or nonpostal services--
``(A) 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;
``(B) do not interfere with or detract from the value of
postal services, including by--
``(i) harming the cost and efficiency of postal
services; and
``(ii) unreasonably restricting access to postal retail
service, such as customer waiting time and access to
parking; and
``(2) such agreements provide a net contribution to the Postal
Service, defined as reimbursement that covers at least 100 percent
of the costs attributable to all property and nonpostal services
provided under each relevant agreement in each year, except that
agreements determined to be substantially similar by the Postal
Service with the concurrence of the Postal Regulatory Commission
shall be reviewed based on their collective revenue and costs
attributable.
``(b) Public Notice.--Not more than 90 days after offering a
service under the program, the Postal Service shall make available to
the public on its website--
``(1) the agreement with the agency regarding such service; and
``(2) a business plan that describes the specific property or
nonpostal service to be provided, the enhanced value to the public,
and terms of reimbursement to the Postal Service.
``(c) Approval Required.--The Postal Service may not establish the
program under subsection (a) unless the Governors of the Postal Service
approve such program by a recorded vote that is publicly disclosed on
the Postal Service website with a majority of the Governors then in
office voting for approval.
``(d) Confidential Information.--Subsection (b) shall not be
construed as requiring the Postal Service to disclose to the public any
information--
``(1) described in section 410(c); or
``(2) exempt from public disclosure under section 552(b) of
title 5.
``Sec. 3704. Postal Service program for other Government agencies
``The Postal Service may establish a program to provide property
and nonpostal services to other Government agencies within the meaning
of section 411, but only if such program provides a net contribution to
the Postal Service, defined as reimbursement that covers at least 100
percent of the costs attributable for property and nonpostal services
provided by the Postal Service in each year to such agencies.
``Sec. 3705. Transparency and accountability for nonpostal services
``(a) Annual Report to the Commission.--
``(1) In general.--Not later than 90 days after the last day of
each year, the Postal Service shall submit to the Postal Regulatory
Commission a report that analyzes costs, revenues, rates, and
quality of service for each agreement or substantially similar set
of agreements for the provision of property or nonpostal services
under section 3703 or the program as a whole under section 3704,
and any other nonpostal service authorized under this chapter,
using such methodologies as the Commission may prescribe, and in
sufficient detail to demonstrate compliance with the requirements
of this chapter.
``(2) Supporting matter.--A report submitted under paragraph
(1) shall include any nonpublic annex, the working papers, and any
other supporting matter of the Postal Service and the Inspector
General related to the information submitted in such report.
``(b) Content and Form of Report.--
``(1) In general.--The Postal Regulatory Commission shall, by
regulation, prescribe the content and form of the report required
under subsection (a). In prescribing such regulations, 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 improve the quality, accuracy, or completeness of Postal Service
data required by the Commission if--
``(A) the attribution of costs or revenues to property,
products, 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 a report 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.
``(c) Audits.--The Inspector General shall regularly audit the data
collection systems and procedures used in collecting information and
preparing the report required under subsection (a). The results of any
such audit shall be submitted to the Postal Service and the Postal
Regulatory Commission.
``(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 described in section
410(c), 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.--Upon receiving a report
required under subsection (a), the Postal Regulatory Commission
shall promptly--
``(A) provide an opportunity for comment on such report by
any interested party; and
``(B) appoint an officer of the Commission to represent the
interests of the general public.
``(2) Determination of compliance or noncompliance.--Not later
than 90 days after receiving a report required under subsection
(a), the Postal Regulatory Commission shall make a written
determination as to whether the activities carried out pursuant to
this chapter during the applicable year were or were not in
compliance with the provisions of this chapter. For purposes of
this paragraph, any case in which the requirements for coverage of
costs attributable have not been met shall be considered to be a
case of noncompliance. If, with respect to a year, no instance of
noncompliance is found to have occurred, the determination shall be
to that effect. Such determination of noncompliance shall be
included with the annual compliance determination required under
section 3653.
``(3) Noncompliance.--If a timely written determination of
noncompliance is made under paragraph (2), the Postal Regulatory
Commission shall take appropriate action. If the requirements for
coverage of costs attributable 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, including the full restoration of revenue shortfalls
during the following year. The Commission may order the Postal
Service to discontinue a nonpostal service under section 3703 that
persistently fails to meet cost coverage requirements.
``(4) Deliberate noncompliance.--In the case of deliberate
noncompliance by the Postal Service with the requirements of this
chapter, the Postal Regulatory Commission may order, based on the
nature, circumstances, extent, and seriousness of the
noncompliance, a fine (in the amount specified by the Commission in
its order) for each incidence of such noncompliance. All receipts
from fines imposed under this subsection shall be deposited in the
general fund of the Treasury.
``(f) Regulations Required.--The Postal Regulatory Commission shall
issue such regulations as are necessary to carry out this section.
``(g) Experimental Product Authority.--The Postal Service may
conduct market tests of agreements pursuant to section 3703 and section
3704 of this chapter subject to the same terms and conditions described
in section 3641 of this title. For the purposes of a market test, the
cost coverage requirements in sections 3703 and 3704 of this chapter
shall not apply.''.
(2) Clerical amendment.--The table of chapters for part IV of
title 39, United States Code, is amended by adding after the item
relating to chapter 36 the following:
``37. Nonpostal services.........................................3701''.
(b) Conforming Amendments.--
(1) Section 404.--Section 404(e) of title 39, United States
Code, is amended in paragraph (2), by inserting after
``subsection'' the following: ``, or any nonpostal products or
services authorized by chapter 37''.
(2) Section 411.--The last sentence of section 411 of title 39,
United States Code, is amended by striking ``including
reimbursability'' and inserting ``including reimbursability within
the limitations of chapter 37''.
(3) Treatment of existing nonpostal services.--All individual
nonpostal services, provided directly or through licensing, that
are continued pursuant to section 404(e) of title 39, United States
Code, shall be considered to be expressly authorized by chapter 37
of such title (as added by subsection (a)(1)) and shall be subject
to the requirements of section 3705, subsections (a) through (d).
TITLE II--POSTAL SERVICE OPERATIONAL REFORMS
SEC. 201. PERFORMANCE TARGETS AND TRANSPARENCY.
(a) In General.--Subchapter VII of chapter 36 of title 39, United
States Code, is amended by inserting after section 3691 the following:
``Sec. 3692. Performance targets and transparency
``(a) Performance Targets.--Each year, to ensure that mail service
for postal customers meets the service standards for market-dominant
products, established under section 3691, the Postal Service shall--
``(1) not later than 60 days after the beginning of the fiscal
year in which they will apply, establish and provide to the Postal
Regulatory Commission reasonable targets for performance for each
product; and
``(2) provide the previous fiscal year's performance targets in
its Annual Compliance Report to the Postal Regulatory Commission
for evaluation of compliance for each product.
``(b) Postal Regulatory Commission Determination of Certain
Performance Information.--Not later than 90 days after first receiving
the performance targets under subsection (a)(1), the Postal Regulatory
Commission shall provide to the Postal Service--
``(1) requirements for the Postal Service to publish
nationwide, regional, and local delivery area performance
information in accordance with subsection (c)(2) that--
``(A) are consistent with the organizational structure of
the delivery network of the Postal Service (including at the
District and Area organizational levels, or the functional
equivalents, and, to the extent practicable, at the U.S. ZIP
Code Area level);
``(B) reflect the most granular geographic level of
performance information appropriate for the Postal Service to
publish; and
``(C) includes time period segments for the published
geographic levels to satisfy the publishing requirements of
subparagraphs (A) and (C) of subsection (c)(2); and
``(2) recommendations for any modifications to the Postal
Service's measurement systems necessary to measure and publish the
performance information under subsection (c)(2) that the Postal
Regulatory Commission deems relevant.
``(c) Public Performance Dashboard.--
``(1) In general.--The Postal Service shall develop and
maintain a publicly available Website with an interactive web-tool
that provides performance information for market-dominant products
that is updated on a weekly basis.
``(2) Performance information.--The performance information
provided for a market-dominant product on the Website shall
include--
``(A) the type of market-dominant product;
``(B) performance information for different geographic
areas, consistent with subsection (b);
``(C) performance information for different time periods,
including annual, quarterly, monthly, and weekly segments;
``(D) comparisons of performance information for market-
dominant products to performance information for previous time
periods to facilitate identification of performance trends; and
``(E) the performance targets then in effect, and the
performance targets for the previous fiscal year, as
established under subsection (a)(1).
``(3) Comprehensibility.--The Website shall include plain
language descriptions of the elements required under paragraph (2)
and information on the collection process, measurement methodology,
completeness, accuracy, and validity of the performance information
provided on the Website.
``(4) Address search functionality.--The Website shall include
functionality to enable a user to search for performance
information by street address, ZIP Code, or post office box.
``(5) Format.--The Postal Service shall make the performance
information provided on the Website available--
``(A) in a manner that--
``(i) presents the information required under paragraph
(2) on an interactive dashboard;
``(ii) is searchable and may be sorted and filtered by
the elements described in paragraph (2); and
``(iii) to the extent practicable, enables any person
or entity to download in bulk--
``(I) such performance information; and
``(II) the results of a search by the elements
described in paragraph (2);
``(B) under an `open license' which has the meaning given
that term in section 3502 of title 44; and
``(C) as an `open Government data asset' and in a `machine-
readable' format which have the meaning given those terms in
section 3502 of title 44.
``(6) Consultation.--The Postal Service shall regularly consult
with the Postal Regulatory Commission on appropriate features and
information to be included on the Website.
``(7) Public input.--The Postal Service shall--
``(A) solicit public input on the design and implementation
of the Website; and
``(B) maintain a public feedback tool to ensure each
feature of, and the information on, the Website is usable and
understandable.
``(8) Deadline.--The Postal Service shall implement and make
available to the public (and make any subsequent changes in
accordance with subsection (b)) the Website not later than 60 days
from the date on which the Postal Service receives the requirements
and recommendations from the Postal Regulatory Commission under
subsection (b), and shall continuously update such information on
the Website as required by subsection (b).
``(9) Availability.--A link and plain language description of
the Website shall be made available on any webpage where
performance targets and measurements established under subsection
(a)(1) are made available to the public.
``(10) Reporting.--The Postal Service, the Postmaster General,
or the Board, as applicable, shall reference the dashboard
described in paragraph (5)(A)(i) in the Annual Performance Plan
under section 2803, the Annual Performance Report under section
2804, and the Annual Report under section 2402.
``(11) Definitions.--In this subsection--
``(A) Performance information.--The term `performance
information' means the objective external performance
measurements established under section 3691(b)(1)(D).
``(B) Website.--The term `Website' means the website
described in paragraph (1).''.
(b) Technical and Conforming Amendment.--The table of sections for
chapter 36 of title 39, United States Code, is amended by inserting
after the item relating to section 3691 the following:
``3692. Performance targets and transparency.''.
SEC. 202. INTEGRATED DELIVERY NETWORK.
(a) In General.--Section 101(b) of title 39, United States Code, is
amended by inserting before ``The Postal Service'' the following: ``The
Postal Service shall maintain an integrated network for the delivery of
market-dominant and competitive products (as defined in chapter 36 of
this title). Delivery shall occur at least six days a week, except
during weeks that include a Federal holiday, in emergency situations,
such as natural disasters, or in geographic areas where the Postal
Service has established a policy of delivering mail fewer than six days
a week as of the date of enactment of the Postal Service Reform Act of
2022.''.
(b) Rule of Construction.--Nothing in subsection (a) or the
amendment made by such subsection is intended to alter or amend the
requirements of chapters 20 or 36 of title 39, United States Code, and
related implementing regulations, including provisions relating to
costing, accounting, or rates.
SEC. 203. REVIEW OF POSTAL SERVICE COST ATTRIBUTION GUIDELINES.
Not later than the date that is one year after the date of the
enactment of this Act, the Postal Regulatory Commission shall initiate
a review of the regulations issued pursuant to sections 3633(a) and
3652(a)(1) of title 39, United States Code, to determine whether
revisions are appropriate to ensure that all direct and indirect costs
attributable to competitive and market-dominant products are properly
attributed to those products, including by considering the underlying
methodologies in determining cost attribution and considering options
to revise such methodologies. If the Commission determines, after
notice and opportunity for public comment, that revisions are
appropriate, the Commission shall make modifications or adopt
alternative methodologies as necessary.
SEC. 204. RURAL NEWSPAPER SUSTAINABILITY.
Section 3626(h) of title 39, United States Code, is amended by
striking ``10 percent'' and inserting ``50 percent''.
SEC. 205. FUNDING OF POSTAL REGULATORY COMMISSION.
(a) In General.--Subsection (d) of section 504 of title 39, United
States Code, is amended to read as follows:
``(d)(1) Not later than September 1 of each fiscal year (beginning
with fiscal year 2022), the Postal Regulatory Commission shall submit
to the Postal Service a budget of the Commission's expenses, including
expenses for facilities, supplies, compensation, and employee benefits,
for the following fiscal year. Any such budget shall be deemed approved
as submitted if the Governors fail to adjust the budget in accordance
with paragraph (2).
``(2)(A) Not later than 30 days after receiving a budget under
paragraph (1), the Governors holding office, by unanimous written
decision, may adjust the total amount of funding requested in such
budget. Nothing in this subparagraph may be construed to authorize the
Governors to adjust any activity proposed to be funded by the budget.
``(B) If the Governors adjust the budget under subparagraph (A),
the Postal Regulatory Commission shall adjust the suballocations within
such budget to reflect the total adjustment made by the Governors. The
budget shall be deemed approved on the date the Commission makes any
such adjustments. The Commission may make further adjustments to the
suballocations within such budget as necessary.
``(3) Expenses incurred under any budget approved under this
subsection shall be paid out of the Postal Service Fund established
under section 2003.''.
(b) Conforming Amendments.--Title 39, United States Code, is
amended--
(1) in section 2003(e), by striking ``(B) all expenses of the
Postal Regulatory Commission, subject to the availability of
amounts appropriated under section 504(d);'' and inserting ``(B)
all expenses of the Postal Regulatory Commission, pursuant to
section 504(d);''; and
(2) in section 2009--
(A) by striking ``, (2)'' and inserting ``, and (2)''; and
(B) by striking ``, and (3) the Postal Regulatory
Commission requests to be appropriated, out of the Postal
Service Fund, under section 504(d) of this title''.
SEC. 206. FLATS OPERATIONS STUDY AND REFORM.
(a) Flats Operations Study.--
(1) In general.--The Postal Regulatory Commission, in
consultation with the Inspector General of the United States Postal
Service, shall conduct a study to--
(A) comprehensively identify the causes of inefficiencies
in the collection, sorting, transportation, and delivery of
Flats; and
(B) quantify the effects of the volume trends, investments
decisions, excess capacity, and operational inefficiencies of
the Postal Service on the direct and indirect costs of the
Postal Service that are attributable to Flats.
(2) Postal service assistance.--For the purposes of carrying
out the study under paragraph (1), the Postal Service shall, upon
request by the Postal Regulatory Commission, consult with the
Postal Regulatory Commission and provide--
(A) access to Postal Service facilities to personnel of the
Postal Regulatory Commission; and
(B) information and records necessary to conduct such
study.
(3) Report.--Not later than one year after the date of the
enactment of this Act, the Postal Regulatory Commission shall
submit to Congress and the Postmaster General a report on the
findings of the study conducted under paragraph (1).
(4) Flats defined.--In this subsection, the term ``Flats''
means products that meet the physical standards described in the
Domestic Mail Manual (as in effect on the date of the enactment of
this Act) for Flats mail for any class of mail.
(b) Flats Operations Reform.--
(1) In general.--Not later than six months after the date on
which the Postal Regulatory Commission submits the report described
in subsection (a)(3), the Postal Service shall--
(A) develop and implement a plan to remedy each
inefficiency identified in the study conducted under subsection
(a)(1) to the extent practicable; and
(B) if the Postal Service determines that remedying any
such inefficiency is not practicable, provide to Congress and
the Postal Regulatory Commission an explanation why remedying
such inefficiency is not practicable, including whether it may
become practicable to remedy such inefficiency at a later time.
(2) Implementation requirements.--Prior to implementing the
plan described in paragraph (1)--
(A) the Postal Regulatory Commission must approve the plan;
and
(B) the Postal Service shall provide an adequate
opportunity for public comment on the plan.
(3) Completion notice.--On the date on which the plan described
in paragraph (1) is fully implemented, as determined by the
Postmaster General, the Postmaster General shall submit to Congress
and the Postal Regulatory Commission a written notice of such
implementation.
(c) Subsequent Rate Adjustments.--During the five-year period
beginning on the date on which the Postal Regulatory Commission submits
a report under subsection (a)(3), the Postal Service, when making any
adjustment to the rate of a market-dominant product (as defined in
section 102 of title 39, United States Code), shall consider the
findings of such report and, after the plan described in subsection
(b)(1) is implemented, the plan's efficacy in remedying the
inefficiencies identified in the study conducted under subsection
(a)(1).
SEC. 207. REPORTING REQUIREMENTS.
(a) In General.--Not later than 240 days after the date of the
enactment of this Act, and every six months thereafter, the Postmaster
General shall submit to the President, the Postal Regulatory
Commission, the Committee on Homeland Security and Governmental Affairs
of the Senate, and the Committee on Oversight and Reform of the House
of Representatives a report on the operations and financial condition
of the Postal Service during the six-month period ending 60 days before
the date on which the Postmaster General submits such report.
(b) Contents.--Each report submitted under this section shall
include updates, details of changes from previous standards and
requirements, and assessments of progress being made on the operations
and financial condition of the Postal Service, including--
(1) the actual mail and package volume growth relative to any
mail or package volume growth projections previously made or relied
upon by the Postal Service, including a discussion of the reasons
for the differences in projections and the associated adjustments
being made;
(2) the effect of pricing changes on product volume for market-
dominant and competitive products, and associated revenue effects
on financial projections, including a discussion of the reasons
behind the differences in projections and associated adjustments
being made;
(3) customer use of network distribution centers and processing
and distribution centers;
(4) the status of the USPS Connect program and revenue effects
of the program on the financial projections;
(5) the use of Priority Mail, Priority Mail Express, First-
Class Package Service, and Parcel Select services (as such terms
are defined in the Mail Classification Schedule as in effect on the
date of the enactment of this Act) among customers and associated
revenue effects;
(6) the use of USPS Connect Returns service among customers,
and associated costs and revenue effects;
(7) the use of USPS E-Commerce Marketplace among customers, and
associated costs and revenue effects;
(8) updates on the reliability, efficiency, and cost-
effectiveness of the transportation network, including the manner
in which ground transportation is utilized over air transportation
for types of market-dominant products and competitive products;
(9) a review of efforts to enhance employee training, safety,
and wellbeing, including associated effects on employee
recruitment, satisfaction, and retention;
(10) a review of efforts being made to improve employee
allocation, including changes of non-career employees to career
status, and any associated impacts to operational expenses and
processing, transportation, and delivery efficiency;
(11) the rate of planned investment into Postal Service
processing, transportation, and delivery equipment and
infrastructure for market-dominant and competitive products, and a
review of any associated effects on operational expenses and
efficiency;
(12) changes to network distribution centers and the expansion
of regional distribution centers, including costs associated with
the changes and any realized reduction in operational expenses or
improved resource efficiencies;
(13) a review of the ability of the Postal Service to meet
performance targets established under section 3692(a)(1) of title
39, United States Code;
(14) a discussion of the progress of the Postal Service in
achieving any new, self-funded investments, including the amounts
realized and expended to date, and a discussion of the reasons
behind any disparities in the assumptions regarding the expected
progress of the Postal Service getting new, self-funded investments
to accommodate changes; and
(15) any other information the Postal Service determines
relevant, such as barriers or unanticipated events, in order to
help the Postal Regulatory Commission, Congress, the President, and
the American public evaluate the success or difficulties faced by
the Postal Service in implementing the reform plan.
(c) Confidential Information.--
(1) In general.--The report required under this subsection
shall be submitted in a form that excludes any proprietary or
confidential information and trade secrets.
(2) Notification.--If the Postal Service determines that any
information must be excluded under paragraph (1), the Postal
Service shall, at the time of submitting the report, notify the
President, the Committee on Oversight and Reform of the House of
Representatives, the Committee on Homeland Security and
Governmental Affairs of the Senate, and the Postal Regulatory
Commission in writing of its determination and describe in detail
the information for which confidentiality is sought and the reasons
therefor.
(3) Annexes.--The Postal Service shall submit to the persons
and entities notified under paragraph (2) any information excluded
under paragraph (1) in an annex that shall be treated as
confidential in accordance with paragraph (4).
(4) Treatment.--No person may, with respect to any information
which such person receives under paragraph (4)--
(A) use such information for purposes other than the
purposes for which it is supplied; or
(B) permit any person or entity other than a person or
entity notified under paragraph (2), or the staff thereof, to
have access to any such information.
(d) Termination.--This section shall terminate on the date that is
five years after the date on which the first report required by this
section is submitted.
SEC. 208. POSTAL SERVICE TRANSPORTATION SELECTION POLICY REVISIONS.
Section 101(f) of title 39, United States Code, is amended--
(1) by striking ``prompt and economical'' and inserting
``prompt, economical, consistent, and reliable'';
(2) by inserting after ``all mail'' the following: ``in a
manner that increases operational efficiency and reduces
complexity'';
(3) by inserting ``cost-effective'' after ``to achieve''; and
(4) by inserting ``also'' after ``Nation shall''.
SEC. 209. USPS INSPECTOR GENERAL OVERSIGHT OF POSTAL REGULATORY
COMMISSION.
(a) In General.--Section 8G of the Inspector General Act of 1978 (5
U.S.C. App.) is amended--
(1) in subsection (a)(2), by striking ``the Postal Regulatory
Commission,''; and
(2) in subsection (f)--
(A) in paragraph (2)--
(i) by striking ``(2) In carrying'' and inserting
``(2)(A) In carrying''; and
(ii) by adding at the end the following:
``(B) In carrying out the duties and responsibilities specified
in this Act, the Inspector General of the United States Postal
Service shall function as the Inspector General for the Postal
Regulatory Commission, and shall have equal responsibility over the
United States Postal Service and the Postal Regulatory Commission.
The Commission shall comply with the Inspector General's oversight
as if the Commission were a designated Federal entity under
subsection (a)(2) and as if the Inspector General were the
inspector general of the Commission. The Governors of the Postal
Service shall not direct oversight activities for the Postal
Regulatory Commission.'';
(B) in paragraph (3)(A)(i), by inserting ``pertaining to
the United States Postal Service'' after ``subpoenas,'';
(C) in paragraph (3)(B)(i), by inserting ``and the Postal
Regulatory Commission'' after ``United States Postal Service'';
(D) in paragraph (3)(C), by inserting ``or the Postal
Regulatory Commission'' after ``Governors'';
(E) by redesignating paragraphs (4), (5), and (6) as
paragraphs (5), (6), and (7), respectively; and
(F) by inserting after paragraph (3) the following:
``(4) For activities pertaining to the Postal Regulatory
Commission, sections 4, 5, 6 (other than subsection (g) thereof),
and 7 of this Act shall be applied by substituting the term `head
of the Postal Regulatory Commission' for `head of the
establishment'.''.
(b) Appointment and Removal.--Section 202 of title 39, United
States Code, is amended--
(1) in subsection (e)(1), by striking ``The Governors shall
appoint'' and inserting ``The Governors and the members of the
Postal Regulatory Commission shall appoint, by a favorable vote of
a majority of the Governors in office and of a majority of the
members of the Commission in office,''; and
(2) in subsection (e)(3), by inserting ``and 3 members of the
Postal Regulatory Commission'' after ``at least 7 Governors''.
(c) Savings Provision.--
(1) Personnel, documents, assets.--All personnel, documents,
assets, unexpended balances of appropriations, and obligations of
the Inspector General for the Postal Regulatory Commission shall
transfer to the Inspector General of the Postal Service on the
effective date of this section.
(2) Legal documents.--Any order, determination, rule,
regulation, permit, grant, loan, contract, agreement, certificate,
license, or privilege that has been issued, made, granted, or
allowed to become effective by the Inspector General of the Postal
Regulatory Commission that is in effect on the effective date of
this section shall continue in effect according to their terms
until modified, terminated, superseded, set aside, or revoked in
accordance with law.
(3) Proceedings.--This section and the amendments made by this
section shall not affect any proceeding pending on the effective
date of this section before the Inspector General of the Postal
Regulatory Commission, but such proceeding shall be continued by
the Inspector General of the Postal Service, at the discretion of
that Inspector General. Nothing in this paragraph shall be
construed to prohibit the discontinuance or modification of any
such proceeding under the same terms and conditions and to the same
extent that the proceeding could have been discontinued or modified
if this section and those amendments had not been enacted.
(4) Suits.--This section and the amendments made by this
section shall not affect any suit commenced before the effective
date of this section, and in any such suit, proceeding shall be
had, appeals taken, and judgments rendered in the same manner and
with the same effect as if this section or such amendments had not
been enacted.
(5) References.--Any reference in any other Federal law,
Executive order, rule, regulation, or delegation of authority, or
any document relating to the Inspector General of the Postal
Regulatory Commission shall be deemed to refer to the Inspector
General of the United States Postal Service.
(d) Technical and Conforming Amendment.--Section 504 of title 39,
United States Code, is amended by striking subsection (h).
(e) Effective Date.--This section and the amendments made by this
section shall take effect on the date that is 180 days after the date
of enactment of this Act.
TITLE III--SEVERABILITY
SEC. 301. SEVERABILITY.
If any provision of this Act or any amendment made by this Act, or
the application of a provision of this Act or an amendment made by this
Act to any person or circumstance, is held to be unconstitutional, the
remainder of this Act, and the application of the provisions to any
person or circumstance, shall not be affected by the holding.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.