[Congressional Record Volume 158, Number 54 (Monday, April 16, 2012)]
[Senate]
[Pages S2333-S2342]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2000. Mr. REID (for Mr. Lieberman (for himself, Ms. Collins, Mr. 
Carper, and Mr. Brown of Massachusetts)) submitted an amendment 
intended to be proposed by Mr. Reid to the bill S. 1789, to improve, 
sustain, and transform the United States Postal Service; which was 
ordered to lie on the table; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``21st Century Postal Service 
     Act of 2012''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.

                   TITLE I--POSTAL WORKFORCE MATTERS

Sec. 101. Treatment of postal funding surplus for Federal Employees 
              Retirement System.
Sec. 102. Incentives for voluntary separation.
Sec. 103. Restructuring of payments for retiree health benefits.
Sec. 104. Postal Service Health Benefits Program.
Sec. 105. Medicare coordination efforts for Postal Service employees 
              and retirees.
Sec. 106. Arbitration; labor disputes.

                TITLE II--POSTAL SERVICES AND OPERATIONS

Sec. 201. Maintenance of delivery service standards.
Sec. 202. Preserving mail processing capacity.
Sec. 203. Establishment of retail service standards.
Sec. 204. Expanded retail access.
Sec. 205. Preserving community post offices.
Sec. 206. Area and district office structure.
Sec. 207. Conversion of door delivery points.
Sec. 208. Limitations on changes to mail delivery schedule.

[[Page S2334]]

Sec. 209. Time limits for consideration of service changes.
Sec. 210. Public procedures for significant changes to mailing 
              specifications.
Sec. 211. Nonpostal products and services.
Sec. 212. Chief Innovation Officer; innovation strategy.
Sec. 213. Strategic Advisory Commission on Postal Service Solvency and 
              Innovation.

             TITLE III--FEDERAL EMPLOYEES' COMPENSATION ACT

Sec. 301. Short title; references.
Sec. 302. Federal workers compensation reforms for retirement-age 
              employees.
Sec. 303. Augmented compensation for dependents.
Sec. 304. Schedule compensation payments.
Sec. 305. Vocational rehabilitation.
Sec. 306. Reporting requirements.
Sec. 307. Disability management review; independent medical 
              examinations.
Sec. 308. Waiting period.
Sec. 309. Election of benefits.
Sec. 310. Sanction for noncooperation with field nurses.
Sec. 311. Subrogation of continuation of pay.
Sec. 312. Integrity and compliance.
Sec. 313. Amount of compensation.
Sec. 314. Technical and conforming amendments.
Sec. 315. Regulations.
Sec. 316. Effective date.

                        TITLE IV--OTHER MATTERS

Sec. 401. Solvency plan.
Sec. 402. Postal rates.
Sec. 403. Co-location with Federal agencies.
Sec. 404. Cooperation with State and local governments; intra-Service 
              agreements.
Sec. 405. Shipping of wine, beer, and distilled spirits.
Sec. 406. Annual report on United States mailing industry.
Sec. 407. Use of negotiated service agreements.
Sec. 408. Contract disputes.
Sec. 409. Contracting provisions.

     SEC. 3. DEFINITIONS.

       In this Act, the following definitions shall apply:
       (1) Commission.--The term ``Commission'' means the Postal 
     Regulatory Commission.
       (2) Postal service.--The term ``Postal Service'' means the 
     United States Postal Service.

                   TITLE I--POSTAL WORKFORCE MATTERS

     SEC. 101. TREATMENT OF POSTAL FUNDING SURPLUS FOR FEDERAL 
                   EMPLOYEES RETIREMENT SYSTEM.

       Section 8423(b) of title 5, United States Code, is 
     amended--
       (1) by redesignating paragraph (5) as paragraph (6); and
       (2) by inserting after paragraph (4) the following:
       ``(5)(A) In this paragraph, the term `postal funding 
     surplus' means the amount by which the amount computed under 
     paragraph (1)(B) is less than zero.
       ``(B)(i) Beginning with fiscal year 2011, for each fiscal 
     year in which the amount computed under paragraph (1)(B) is 
     less than zero, upon request of the Postmaster General, the 
     Director shall transfer to the United States Postal Service 
     from the Fund an amount equal to the postal funding surplus 
     for that fiscal year for use in accordance with this 
     paragraph.
       ``(ii) The Office shall calculate the amount under 
     paragraph (1)(B) for a fiscal year by not later than June 15 
     after the close of the fiscal year, and shall transfer any 
     postal funding surplus to the United States Postal Service 
     within 10 days after a request by the Postmaster General.
       ``(C) For each of fiscal years 2011, 2012, 2013, and 2014 
     if the amount computed under paragraph (1)(B) is less than 
     zero, a portion of the postal funding surplus for the fiscal 
     year shall be used by the United States Postal Service for 
     the cost of providing incentives for voluntary separation, in 
     accordance with section 102 of the 21st Century Postal 
     Service Act of 2012 and sections 8332(p) and 8411(m) of this 
     title, to employees of the United States Postal Service who 
     voluntarily separate from service before October 1, 2015.
       ``(D) Any postal funding surplus for a fiscal year not 
     expended under subparagraph (C) may be used by the United 
     States Postal Service for the purposes of--
       ``(i) repaying any obligation issued under section 2005 of 
     title 39; or
       ``(ii) making required payments to--
       ``(I) the Employees' Compensation Fund established under 
     section 8147;
       ``(II) the Postal Service Retiree Health Benefits Fund 
     established under section 8909a;
       ``(III) the Employees Health Benefits Fund established 
     under section 8909; or
       ``(IV) the Civil Service Retirement and Disability Fund.''.

     SEC. 102. INCENTIVES FOR VOLUNTARY SEPARATION.

       (a) Voluntary Separation Incentive Payments.--The Postal 
     Service may provide voluntary separation incentive payments 
     to employees of the Postal Service who voluntarily separate 
     from service before October 1, 2015 (including payments to 
     employees who retire under section 8336(d)(2) or 
     8414(b)(1)(B) of title 5, United States Code, before October 
     1, 2015), which may not exceed the maximum amount provided 
     under section 3523(b)(3)(B) of title 5, United States Code, 
     for any employee.
       (b) Additional Service Credit.--
       (1) Civil service retirement system.--Section 8332 of title 
     5, United States Code, is amended by adding at the end the 
     following:
       ``(p)(1)(A) For an employee of the United States Postal 
     Service who is covered under this subchapter and voluntarily 
     separates from service before October 1, 2015, the Office, if 
     so directed by the United States Postal Service, shall add 
     not more than 1 year to the total creditable service of the 
     employee for purposes of determining entitlement to and 
     computing the amount of an annuity under this subchapter 
     (except for a disability annuity under section 8337).
       ``(B) An employee who receives additional creditable 
     service under this paragraph may not receive a voluntary 
     separation incentive payment from the United States Postal 
     Service.
       ``(2) The United States Postal Service shall ensure that 
     the average actuarial present value of the additional 
     liability of the United States Postal Service to the Fund 
     resulting from additional creditable service provided under 
     paragraph (1) or section 8411(m)(1) is not more than $25,000 
     per employee provided additional creditable service under 
     paragraph (1) or section 8411(m)(1).
       ``(3)(A) Subject to subparagraph (B), and notwithstanding 
     any other provision of law, no deduction, deposit, or 
     contribution shall be required for service credited under 
     this subsection.
       ``(B) The actuarial present value of the additional 
     liability of the United States Postal Service to the Fund 
     resulting from this subsection shall be included in the 
     amount calculated under section 8348(h)(1)(A).''.
       (2) Federal employees retirement system.--Section 8411 of 
     title 5, United States Code, is amended by adding at the end 
     the following:
       ``(m)(1)(A) For an employee of the United States Postal 
     Service who is covered under this chapter and voluntarily 
     separates from service before October 1, 2015, the Office, if 
     so directed by the United States Postal Service, shall add 
     not more than 2 years to the total creditable service of the 
     employee for purposes of determining entitlement to and 
     computing the amount of an annuity under this chapter (except 
     for a disability annuity under subchapter V of that chapter).
       ``(B) An employee who receives additional creditable 
     service under this paragraph may not receive a voluntary 
     separation incentive payment from the United States Postal 
     Service.
       ``(2) The United States Postal Service shall ensure that 
     the average actuarial present value of the additional 
     liability of the United States Postal Service to the Fund 
     resulting from additional creditable service provided under 
     paragraph (1) or section 8332(p)(1) is not more than $25,000 
     per employee provided additional creditable service under 
     paragraph (1) or section 8332(p)(1)
       ``(3)(A) Subject to subparagraph (B), and notwithstanding 
     any other provision of law, no deduction, deposit, or 
     contribution shall be required for service credited under 
     this subsection.
       ``(B) The actuarial present value of the additional 
     liability of the United States Postal Service to the Fund 
     resulting from this subsection shall be included in the 
     amount calculated under section 8423(b)(1)(B).''.
       (c) Goals.--
       (1) In general.--The Postal Service shall offer incentives 
     for voluntary separation under this section and the 
     amendments made by this section as a means of ensuring that 
     the size and cost of the workforce of the Postal Service is 
     appropriate to the work required of the Postal Service, 
     including consideration of--
       (A) the closure and consolidation of postal facilities;
       (B) the ability to operate existing postal facilities more 
     efficiently, including by reducing the size or scope of 
     operations of postal facilities in lieu of closing postal 
     facilities; and
       (C) the number of employees eligible, or projected in the 
     near-term to be eligible, for retirement, including early 
     retirement.
       (2) Percentage goal.--The Postal Service shall offer 
     incentives for voluntary separation under this section to a 
     sufficient number of employees as would reasonably be 
     expected to lead to an 18 percent reduction in the total 
     number of career employees of the Postal Service by the end 
     of fiscal year 2015.
       (3) Definition.--In this subsection, the term ``career 
     employee of the Postal Service'' means an employee of the 
     Postal Service--
       (A) whose appointment is not for a limited period; and
       (B) who is eligible for benefits, including retirement 
     coverage under chapter 83 or 84 of title 5, United States 
     Code.
       (d) Funding.--The Postal Service shall carry out subsection 
     (a) and sections 8332(p) and 8411(m) of title 5, United 
     States Code, as added by subsection (b) of this section, 
     using funds made available under section 8423(b)(5)(C) of 
     title 5, United States Code, as amended by section 101 of 
     this Act.

     SEC. 103. RESTRUCTURING OF PAYMENTS FOR RETIREE HEALTH 
                   BENEFITS.

       (a) Contributions.--Section 8906(g)(2)(A) of title 5, 
     United States Code, is amended by striking ``through 
     September 30, 2016, be paid by the United States Postal 
     Service, and thereafter shall'' and inserting ``after the 
     date of enactment of the 21st Century Postal Service Act of 
     2012''.
       (b) Postal Service Retiree Health Benefits Fund.--Section 
     8909a of title 5, United States Code, is amended--

[[Page S2335]]

       (1) in subsection (d)--
       (A) by striking paragraph (2) and inserting the following:
       ``(2)(A) Not later than 180 days after the date of 
     enactment of the 21st Century Postal Service Act of 2012, or 
     March 31, 2013, whichever is later, the Office shall compute, 
     and by June 30 of each succeeding year, the Office shall 
     recompute, a schedule including a series of annual 
     installments which provide for the liquidation of the amount 
     described under subparagraph (B) (regardless of whether the 
     amount is a liability or surplus) by September 30, 2052, or 
     within 15 years, whichever is later, including interest at 
     the rate used in the computations under this subsection.
       ``(B) The amount described in this subparagraph is the 
     amount, as of the date on which the applicable computation or 
     recomputation under subparagraph (A) is made, that is equal 
     to the difference between--
       ``(i) 80 percent of the Postal Service actuarial liability 
     as of September 30 of the most recently ended fiscal year; 
     and
       ``(ii) the value of the assets of the Postal Retiree Health 
     Benefits Fund as of September 30 of the most recently ended 
     fiscal year.''.
       (B) in paragraph (3)--
       (i) in subparagraph (A)--

       (I) in clause (iii), by adding ``and'' at the end;
       (II) in clause (iv), by striking the semicolon at the end 
     and inserting a period; and
       (III) by striking clauses (v) through (x); and

       (ii) in subparagraph (B), by striking ``2017'' and 
     inserting ``2013'';
       (C) by amending paragraph (4) to read as follows:
       ``(4) Computations under this subsection shall be based 
     on--
       ``(A) 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
       ``(B) any other methods and assumptions, including a health 
     care cost trend rate, that the Director of the Office 
     determines to be appropriate.''; and
       (D) by adding at the end the following:
       ``(7) In this subsection, the term `Postal Service 
     actuarial liability' means the difference between--
       ``(A) the net present value of future payments required 
     under section 8906(g)(2)(A) for current and future United 
     States Postal Service annuitants; and
       ``(B) the net present value as computed under paragraph (1) 
     attributable to the future service of United States Postal 
     Service employees.''; and
       (2) by adding at the end the following:
       ``(e) Subsections (a) through (d) of this section shall be 
     subject to section 104 of the 21st Century Postal Service Act 
     of 2012.''.

     SEC. 104. POSTAL SERVICE HEALTH BENEFITS PROGRAM.

       (a) Definitions.--In this section--
       (1) the term ``covered employee'' means an employee of the 
     Postal Service who is represented by a bargaining 
     representative recognized under section 1203 of title 39, 
     United States Code;
       (2) the term ``Federal Employee Health Benefits Program'' 
     means the health benefits program under chapter 89 of title 
     5, United States Code; and
       (3) the term ``Postal Service Health Benefits Program'' 
     means the health benefits program that may be agreed to under 
     subsection (b)(1).
       (b) Collective Bargaining.--
       (1) In general.--Consistent with section 1005(f) of title 
     39, United States Code, the Postal Service may negotiate 
     jointly with all bargaining representatives recognized under 
     section 1203 of title 39, United States Code, and enter into 
     a joint collective bargaining agreement with those bargaining 
     representatives to establish the Postal Service Health 
     Benefits Program that satisfies the conditions under 
     subsection (c). The Postal Service and the bargaining 
     representatives shall negotiate in consultation with the 
     Director of the Office of Personnel Management.
       (2) Consultation with supervisory and managerial 
     personnel.--In the course of negotiations under paragraph 
     (1), the Postal Service shall consult with each of the 
     organizations of supervisory and other managerial personnel 
     that are recognized under section 1004 of title 39, United 
     States Code, concerning the views of the personnel 
     represented by each of those organizations.
       (3) Arbitration limitation.--Notwithstanding chapter 12 of 
     title 39, United States Code, there shall not be arbitration 
     of any dispute in the negotiations under this subsection.
       (4) Time limitation.--The authority under this subsection 
     shall extend until September 30, 2012.
       (c) Postal Service Health Benefits Program.--The Postal 
     Service Health Benefits Program--
       (1) shall--
       (A) be available for participation by all covered 
     employees;
       (B) be available for participation by any officer or 
     employee of the Postal Service who is not a covered employee, 
     at the option solely of that officer or employee;
       (C) provide adequate and appropriate health benefits;
       (D) be administered in a manner determined in a joint 
     agreement reached under subsection (b); and
       (E) provide for transition of coverage under the Federal 
     Employee Health Benefits Program of covered employees to 
     coverage under the Postal Service Health Benefits Program on 
     January 1, 2013;
       (2) may provide dental benefits; and
       (3) may provide vision benefits.
       (d) Agreement and Implementation.--If a joint agreement is 
     reached under subsection (b)--
       (1) the Postal Service shall implement the Postal Service 
     Health Benefits Program;
       (2) the Postal Service Health Benefits Program shall 
     constitute an agreement between the collective bargaining 
     representatives and the Postal Service for purposes of 
     section 1005(f) of title 39, United States Code; and
       (3) covered employees may not participate as employees in 
     the Federal Employees Health Benefits Program.
       (e) Government Plan.--The Postal Service Health Benefits 
     Program shall be a government plan as that term is defined 
     under section 3(32) of Employee Retirement Income Security 
     Act of 1974 (29 U.S.C. 1002(32)).
       (f) Report.--Not later than June 30, 2013, the Postal 
     Service shall submit a report to the Committee on Homeland 
     Security and Governmental Affairs of the Senate and the 
     Committee on Oversight and Government Reform of the House of 
     Representatives that--
       (1) reports on the implementation of this section; and
       (2) requests any additional statutory authority that the 
     Postal Service determines is necessary to carry out the 
     purposes of this section.

     SEC. 105. MEDICARE COORDINATION EFFORTS FOR POSTAL SERVICE 
                   EMPLOYEES AND RETIREES.

       (a) Additional Enrollment Options Under Federal Employees 
     Health Benefits Plans.--Chapter 89 of title 5, United States 
     Code, is amended by inserting after section 8903b the 
     following:

     ``SEC. 8903C. COORDINATION WITH MEDICARE FOR POSTAL SERVICE 
                   EMPLOYEES AND ANNUITANTS.

       ``(a) Definitions.--In this section--
       ``(1) the term `contract year' means a calendar year in 
     which health benefits plans are administered under this 
     chapter;
       ``(2) the term `Medicare part A' means the Medicare program 
     for hospital insurance benefits under part A of title XVIII 
     of the Social Security Act (42 U.S.C. 1395c et seq.);
       ``(3) the term `Medicare part B' means the Medicare program 
     for supplementary medical insurance benefits under part B of 
     title XVIII of the Social Security Act (42 U.S.C. 1395j et 
     seq.); and
       ``(4) the term `Postal Service employee or annuitant' means 
     an individual who is--
       ``(A) an employee of the Postal Service; or
       ``(B) an annuitant covered under this chapter whose 
     Government contribution is paid by the Postal Service under 
     section 8906(g)(2).
       ``(b) Enrollment Options.--
       ``(1) Establishment.--
       ``(A) In general.--For contract years beginning on or after 
     January 1, 2014, the Office shall establish enrollment 
     options for health benefits plans that are open only to 
     Postal Service employees and annuitants, and family members 
     of a Postal Service employee or annuitant, who are enrolled 
     in Medicare part A and Medicare part B.
       ``(B) Additional plans.--The enrollment options established 
     under this subsection shall be in addition to any other 
     health benefit plan or enrollment option otherwise available 
     to Postal Service employees or annuitants under this chapter 
     and shall not affect the eligibility of a Postal Service 
     employee or annuitant for any another health benefit plan or 
     enrollment option under this chapter.
       ``(2) Enrollment eligibility.--Any Postal Service employee 
     or annuitant, or family member of a Postal Service employee 
     or annuitant, who is enrolled in Medicare part A and Medicare 
     part B may enroll in 1 of the enrollment options established 
     under paragraph (1).
       ``(3) Value of coverage.--The Office shall ensure that the 
     aggregate actuarial value of coverage under the enrollment 
     options established under this subsection, in combination 
     with the value of coverage under Medicare part A and Medicare 
     part B, shall be not less than the actuarial value of the 
     most closely corresponding enrollment options for each plan 
     available under section 8905, in combination with the value 
     of coverage under Medicare part A and Medicare part B.
       ``(4) Enrollment options.--
       ``(A) In general.--The enrollment options established under 
     paragraph (1) shall include--
       ``(i) an individual option, for Postal Service employees or 
     annuitants enrolled in Medicare part A and Medicare part B;
       ``(ii) a self and family option, for Postal Service 
     employees or annuitants and family members who are each 
     enrolled in Medicare part A and Medicare part B; and
       ``(iii) a self and family option, for Postal Service 
     employees or annuitants--

       ``(I) who are enrolled in Medicare part A and Medicare part 
     B; and
       ``(II) the family members of whom are not enrolled in 
     Medicare part A or Medicare part B.

       ``(B) Specific sub-options.--The Office may establish more 
     specific enrollment options within the types of options 
     described under subparagraph (A).
       ``(5) Reduced premiums to account for medicare 
     coordination.--In determining the premiums for the enrollment 
     options under paragraph (4), the Office shall--

[[Page S2336]]

       ``(A) establish a separate claims pool for individuals 
     eligible for coverage under any of those options; and
       ``(B) ensure that--
       ``(i) the premiums are reduced from the premiums otherwise 
     established under this chapter to directly reflect the full 
     cost savings to the health benefits plans due to the complete 
     coordination of benefits with Medicare part A and Medicare 
     part B for Postal Service employees or annuitants, or family 
     members of Postal Service employees or annuitants, who are 
     enrolled in Medicare part A and Medicare part B; and
       ``(ii) the cost savings described under clause (i) result 
     solely in the reduction of--

       ``(I) the premiums paid by the Postal Service employee or 
     annuitant; and
       ``(II) the Government contributions paid by the Postal 
     Service or other employer.

       ``(c) Postal Service Consultation.--The Office shall 
     establish the enrollment options and premiums under this 
     section in consultation with the Postal Service.''.
       (b) Technical and Conforming Amendments.--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. Coordination with Medicare for Postal Service employees and 
              annuitants.''.

       (c) Effective Date.--The amendments made by subsection (a) 
     shall apply with respect to contract years beginning on or 
     after January 1, 2014.
       (d) Special Enrollment Period for Postal Service Employees 
     and Annuitants.--
       (1) 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:
       ``(m)(1) In the case of any individual who, as of the date 
     of enactment of the 21st Century Postal Service Act of 2012, 
     is a Postal Service employee or annuitant (as defined in 
     section 8903c(a) of title 5, United States Code) at the time 
     the individual is entitled to part A under section 226 or 
     section 226A and who is eligible to enroll but who has 
     elected not to enroll (or to be deemed enrolled) during the 
     individual's initial enrollment period, there shall be a 
     special enrollment period described in paragraph (2).
       ``(2) The special enrollment period described in this 
     paragraph, with respect to an individual, is the 1-year 
     period beginning on July 1, 2013.
       ``(3) In the case of an individual who enrolls during the 
     special enrollment period provided under paragraph (1), the 
     coverage period under this part shall begin on the first day 
     of the month in which the individual enrolls.''.
       (2) Waiver of increase of premium.--Section 1839(b) of the 
     Social Security Act (42 U.S.C. 1395r(b)) is amended by 
     striking ``(i)(4) or (l)'' and inserting ``(i)(4), (l), or 
     (m)''.
       (e) Educational Program.--The Postmaster General, in 
     consultation with the Director of the Office of Personnel 
     Management and the Administrator of the Centers for Medicare 
     & Medicaid Services, shall develop an educational program to 
     encourage the voluntary use of the Medicare program for 
     hospital insurance benefits under part A of title XVIII of 
     the Social Security Act (42 U.S.C. 1395c et seq.) (commonly 
     known as ``Medicare Part A'') and the Medicare program for 
     supplementary medical insurance benefits under part B of 
     title XVIII of the Social Security Act (42 U.S.C. 1395j et 
     seq.) (commonly known as ``Medicare Part B'') for eligible 
     Postal Service employees and annuitants that may benefit from 
     enrollment, the objective of which shall be to--
       (1) educate employees and annuitants on how Medicare 
     benefits interact with and can supplement the benefits of the 
     employee or annuitant under the Federal Employees Health 
     Benefit Program; and
       (2) reduce costs to the Federal Employees Health Benefit 
     Program, beneficiaries, and the Postal Service by 
     coordinating services with the Medicare program.

     SEC. 106. ARBITRATION; LABOR DISPUTES.

       Section 1207(c) of title 39, United States Code, is 
     amended--
       (1) in paragraph (2)--
       (A) by inserting ``(A)'' after ``(2)'';
       (B) 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
       (C) by adding at the end the following:
       ``(B) In rendering a decision under this paragraph, the 
     arbitration board shall consider such relevant factors as the 
     financial condition of the Postal Service.''; and
       (2) by adding at the end the following:
       ``(4) Nothing in this section may be construed to limit the 
     relevant factors that the arbitration board may take into 
     consideration in rendering a decision under paragraph (2).''.

                TITLE II--POSTAL SERVICES AND OPERATIONS

     SEC. 201. MAINTENANCE OF DELIVERY SERVICE STANDARDS.

       (a) Definitions.--For purposes of this section--
       (1) the term ``plant service area'' means the geographic 
     area served by a single sectional center facility, or a 
     corresponding successor facility, as designated by the Postal 
     Service; and
       (2) the term ``continental United States'' means the 48 
     contiguous States and the District of Columbia.
       (b) Interim Maintenance of Standards.--During the 3-year 
     period beginning on the date of enactment of this Act, the 
     Postal Service--
       (1) shall maintain the service standards described in 
     subsection (c);
       (2) may not establish a new or revised service standard for 
     market-dominant products under section 3691 of title 39, 
     United States Code, that is inconsistent with the 
     requirements under subsection (c); and
       (3) shall include in any new or revised overnight service 
     standard established for market-dominant products under 
     section 3691 of title 39, United States Code, a policy on 
     changes to critical entry times at post offices and business 
     mail entry units that ensures that any such changes maintain 
     meaningful access to the services provided under the service 
     standard required to be maintained under subsection (c).
       (c) Service Standards.--
       (1) Overnight standard for first-class mail and 
     periodicals.--
       (A) In general.--Except as provided in subparagraph (B), 
     the Postal Service shall maintain an overnight service 
     standard that provides overnight service for first-class mail 
     and periodicals that--
       (i) originate and destinate in the same plant service area; 
     and
       (ii) enter the mails before the critical entry time 
     established and published by the Postal Service.
       (B) Areas outside the continental united states.--The 
     requirements of subparagraph (A) shall not apply to areas 
     outside the continental United States--
       (i) in the case of mail that originates or destinates in a 
     territory or possession of the United States that is part of 
     a plant service area having a sectional center facility 
     that--

       (I) is not located in the territory or possession; and
       (II) was not located in the territory or possession on 
     January 1, 2012; and

       (ii) in the case of mail not described in clause (i), 
     except to the extent that the requirements are consistent 
     with the service standards under part 121 of title 39, Code 
     of Federal Regulations, as in effect on January 1, 2012.
       (2) Two-day delivery for first-class mail.--The Postal 
     Service shall maintain a service standard that provides that 
     first-class mail not delivered overnight will be delivered 
     within 2 delivery days, to the maximum extent feasible using 
     the network of postal facilities maintained to meet the 
     requirements under paragraph (1).
       (3) Maximum delivery time for first-class mail.--
       (A) In general.--The Postal Service shall maintain a 
     service standard that provides that first-class mail will be 
     delivered--
       (i) within a maximum of 3 delivery days, for mail that 
     originates and destinates within the continental United 
     States; and
       (ii) within a maximum period of time consistent with 
     service standards under part 121 of title 39, Code of Federal 
     Regulations, as in effect on January 1, 2012, for mail 
     originating or destinating outside the continental United 
     States.
       (B) Revisions.--Notwithstanding subparagraph (A)(ii), the 
     Postal Service may revise the service standards under part 
     121 of title 39, Code of Federal Regulations for mail 
     described in subparagraph (A)(ii) to take into account 
     transportation conditions (including the availability of 
     transportation) or other circumstances outside the control of 
     the Postal Service.

     SEC. 202. PRESERVING MAIL PROCESSING CAPACITY.

       Section 404 of title 39, United States Code, is amended by 
     adding after subsection (e) the following:
       ``(f) Closing or Consolidation of Certain Postal 
     Facilities.--
       ``(1) Postal facility.--In this subsection, the term 
     `postal facility'--
       ``(A) means any Postal Service facility that is primarily 
     involved in the preparation, dispatch, or other physical 
     processing of mail; and
       ``(B) does not include--
       ``(i) any post office, station, or branch; or
       ``(ii) any facility used only for administrative functions.
       ``(2) Area mail processing study.--
       ``(A) New area mail processing studies.--After the date of 
     enactment of this subsection, before making a determination 
     under subsection (a)(3) as to the necessity for the closing 
     or consolidation of any postal facility, the Postal Service 
     shall--
       ``(i) conduct an area mail processing study relating to 
     that postal facility that includes a plan to reduce the 
     capacity of the postal facility, but not close the postal 
     facility;
       ``(ii) publish the study on the Postal Service website; and
       ``(iii) publish a notice that the study is complete and 
     available to the public, including on the Postal Service 
     website.
       ``(B) Completed or ongoing area mail processing studies.--
       ``(i) In general.--In the case of a postal facility 
     described in clause (ii), the Postal Service shall--

       ``(I) consider a plan to reduce the capacity of the postal 
     facility without closing the postal facility; and
       ``(II) publish the results of the consideration under 
     subclause (I) with or as an amendment to the area mail 
     processing study relating to the postal facility.

       ``(ii) Postal facilities.--A postal facility described in 
     this clause is a postal facility for which, on or before the 
     date of enactment of this subsection--

[[Page S2337]]

       ``(I) an area mail processing study that does not include a 
     plan to reduce the capacity of the postal facility without 
     closing the postal facility has been completed;
       ``(II) an area mail processing study is in progress; or
       ``(III) a determination as to the necessity for the closing 
     or consolidation of the postal facility has not been made.

       ``(3) Notice, public comment, and public hearing.--If the 
     Postal Service makes a determination under subsection (a)(3) 
     to close or consolidate a postal facility, the Postal Service 
     shall--
       ``(A) provide notice of the determination to--
       ``(i) Congress; and
       ``(ii) the Postal Regulatory Commission;
       ``(B) provide adequate public notice of the intention of 
     the Postal Service to close or consolidate the postal 
     facility;
       ``(C) ensure that interested persons have an opportunity to 
     submit public comments during a 45-day period after the 
     notice of intention is provided under subparagraph (B);
       ``(D) before the 45-day period described in subparagraph 
     (C), provide for public notice of that opportunity by--
       ``(i) publication on the Postal Service website;
       ``(ii) posting at the affected postal facility; and
       ``(iii) advertising the date and location of the public 
     community meeting under subparagraph (E); and
       ``(E) during the 45-day period described in subparagraph 
     (C), conduct a public community meeting that provides an 
     opportunity for public comments to be submitted verbally or 
     in writing.
       ``(4) Further considerations.--Not earlier than 30 days 
     after the end of the 45-day period for public comment under 
     paragraph (3), the Postal Service, in making a determination 
     to close or consolidate a postal facility, shall consider--
       ``(A) the views presented by interested persons under 
     paragraph (3);
       ``(B) the effect of the closing or consolidation on the 
     affected community, including any disproportionate impact the 
     closing or consolidation may have on a State, region, or 
     locality;
       ``(C) the effect of the closing or consolidation on the 
     travel times and distances for affected customers to access 
     services under the proposed closing or consolidation;
       ``(D) the effect of the closing or consolidation on 
     delivery times for all classes of mail;
       ``(E) any characteristics of certain geographical areas, 
     such as remoteness, broadband internet availability, and 
     weather-related obstacles to using alternative facilities, 
     that may result in the closing or consolidation having a 
     unique effect; and
       ``(F) any other factor the Postal Service determines is 
     necessary.
       ``(5) Justification statement.--Before the date on which 
     the Postal Service closes or consolidates a postal facility, 
     the Postal Service shall post on the Postal Service website a 
     closing or consolidation justification statement that 
     includes--
       ``(A) a response to all public comments received with 
     respect to the considerations described under paragraph (4);
       ``(B) a description of the considerations made by the 
     Postal Service under paragraph (4); and
       ``(C) the actions that will be taken by the Postal Service 
     to mitigate any negative effects identified under paragraph 
     (4).
       ``(6) Closing or consolidation of postal facilities.--
       ``(A) In general.--Not earlier than the 15 days after 
     posting the final determination and the justification 
     statement under paragraph (5) with respect to a postal 
     facility, the Postal Service may close or consolidate the 
     postal facility.
       ``(B) Alternative intake of mail.--If the Postal Service 
     closes or consolidates a postal facility under subparagraph 
     (A), the Postal Service shall make reasonable efforts to 
     ensure continued mail receipt from customers of the closed or 
     consolidated postal facility at the same location or at 
     another appropriate location in close geographic proximity to 
     the closed or consolidated postal facility.
       ``(C) Limitations.--During the 3-year period beginning on 
     the date of enactment of the 21st Century Postal Service Act 
     of 2012, the Postal Service may not close or consolidate a 
     postal facility if the closing or consolidation prevents the 
     Postal Service from maintaining service standards as required 
     under section 201 of the 21st Century Postal Service Act of 
     2012.
       ``(7) Review by postal regulatory commission.--In 
     accordance with section 3662--
       ``(A) an interested person may lodge a complaint with the 
     Postal Regulatory Commission if the person believes that the 
     closure or consolidation of a postal facility is not in 
     conformance with applicable service standards, including the 
     service standards established under section 201 of the 21st 
     Century Postal Service Act of 2012; and
       ``(B) if the Postal Regulatory Commission finds a complaint 
     lodged by an interested person to be justified, the 
     Commission shall order the Postal Service to take appropriate 
     action to achieve compliance with applicable service 
     standards, including the service standards established under 
     section 201 of the 21st Century Postal Service Act of 2012, 
     or to remedy the effects of any noncompliance.
       ``(8) Postal service website.--For purposes of any notice 
     required to be published on the Postal Service website under 
     this subsection, the Postal Service shall ensure that the 
     Postal Service website--
       ``(A) is updated routinely; and
       ``(B) provides any person, at the option of the person, the 
     opportunity to receive relevant updates by electronic mail.
       ``(9) Protection of certain information.--Nothing in this 
     subsection may be construed to require the Postal Service to 
     disclose--
       ``(A) any proprietary data, including any reference or 
     citation to proprietary data; or
       ``(B) any information relating to the security of a postal 
     facility.''.

     SEC. 203. ESTABLISHMENT OF RETAIL SERVICE STANDARDS.

       (a) Definition.--In this section, the term ``retail postal 
     service'' means service that allows a postal customer to--
       (1) purchase postage;
       (2) enter packages into the mail; and
       (3) procure other services offered by the Postal Service.
       (b) Establishment of Retail Service Standards.--Not later 
     than 6 months after the date of enactment of this Act, the 
     Postal Service shall exercise its authority under section 
     3691 of title 39, United States Code, to establish service 
     standards for market-dominant products in order to guarantee 
     customers of the Postal Service regular and effective access 
     to retail postal services nationwide (including in 
     territories and possessions of the United States) on a 
     reasonable basis.
       (c) Contents.--The service standards established under 
     subsection (b) shall--
       (1) be consistent with--
       (A) the obligations of the Postal Service under section 
     101(b) of title 39, United States Code; and
       (B) the contents of the plan developed under section 302 of 
     the Postal Accountability and Enhancement Act of 2006 (39 
     U.S.C. 3691 note), and any updated or revised plan developed 
     under section 204 of this Act; and
       (2) take into account factors including--
       (A) geography, including the establishment of standards for 
     the proximity of retail postal services to postal customers, 
     including a consideration of the reasonable maximum time a 
     postal customer should expect to travel to access a postal 
     retail location;
       (B) the importance of facilitating communications for 
     communities with limited or no access to Internet, broadband, 
     or cellular telephone services;
       (C) population, including population density, demographic 
     factors such as the age, disability status, and degree of 
     poverty of individuals in the area to be served by a location 
     providing postal retail services, and other factors that may 
     impact the ability of postal customers, including businesses, 
     to travel to a postal retail location;
       (D) the feasibility of offering retail access to postal 
     services in addition to post offices, as described in section 
     302(d) of the Postal Accountability and Enhancement Act of 
     2006 (39 U.S.C. 3691 note);
       (E) the requirement that the Postal Service serve remote 
     areas and communities with transportation challenges, 
     including communities in which the effects of inclement 
     weather or other natural conditions might obstruct or 
     otherwise impede access to retail postal services; and
       (F) the ability of postal customers to access retail postal 
     services in areas that were served by a post office that was 
     closed or consolidated during the 1 year period ending on the 
     date of enactment of this Act.

     SEC. 204. EXPANDED RETAIL ACCESS.

       (a) Updated Plan.--Not later than 1 year after the date of 
     enactment of this Act, the Postal Service shall, in 
     consultation with the Commission, develop and submit to 
     Congress a revised and updated version of the plan to expand 
     and market retail access to postal services required under 
     section 302(d) of the Postal Accountability and Enhancement 
     Act of 2006 (39 U.S.C. 3691 note).
       (b) Contents.--The plan required under subsection (a) 
     shall--
       (1) include a consideration of methods to expand and market 
     retail access to postal services described in paragraphs (1) 
     through (8) of section 302(d) of the Postal Accountability 
     and Enhancement Act of 2006 (39 U.S.C. 3691 note);
       (2) where possible, provide for an improvement in customer 
     access to postal services;
       (3) consider the impact of any decisions by the Postal 
     Service relating to the implementation of the plan on rural 
     areas, communities, and small towns; and
       (4) ensure that--
       (A) rural areas, communities, and small towns continue to 
     receive regular and effective access to retail postal 
     services after implementation of the plan; and
       (B) the Postal Service solicits community input in 
     accordance with applicable provisions of Federal law.
       (c) Further Updates.--The Postal Service, in consultation 
     with the Commission, shall--
       (1) update the plan required under subsection (a) as the 
     Postal Service determines is appropriate; and
       (2) submit each update under paragraph (1) to Congress.

     SEC. 205. PRESERVING COMMUNITY POST OFFICES.

       (a) Closing Post Offices.--Section 404(d) of title 39, 
     United States Code, is amended to read as follows:
       ``(d)(1) The Postal Service, prior to making a 
     determination under subsection (a)(3) of this section as to 
     the necessity for the closing or consolidation of any post 
     office, shall--

[[Page S2338]]

       ``(A) consider whether--
       ``(i) to close the post office or consolidate the post 
     office and another post office located within a reasonable 
     distance;
       ``(ii) instead of closing or consolidating the post 
     office--
       ``(I) to reduce the number of hours a day that the post 
     office operates; or
       ``(II) to continue operating the post office for the same 
     number of hours a day;
       ``(iii) to procure a contract providing full, or less than 
     full, retail services in the community served by the post 
     office; or
       ``(iv) to provide postal services to the community served 
     by the post office through a rural carrier;
       ``(B) provide postal customers served by the post office an 
     opportunity to participate in a nonbinding survey conducted 
     by mail on a preference for an option described in 
     subparagraph (A); and
       ``(C) if the Postal Service determines to close or 
     consolidate the post office, provide adequate notice of its 
     intention to close or consolidate such post office at least 
     60 days prior to the proposed date of such closing or 
     consolidation to persons served by such post office to ensure 
     that such persons will have an opportunity to present their 
     views.
       ``(2) The Postal Service, in making a determination whether 
     or not to close or consolidate a post office--
       ``(A) shall consider--
       ``(i) the effect of such closing or consolidation on the 
     community served by such post office;
       ``(ii) the effect of such closing or consolidation on 
     employees of the Postal Service employed at such office;
       ``(iii) whether such closing or consolidation is consistent 
     with the policy of the Government, as stated in section 
     101(b) of this title, that the Postal Service shall provide a 
     maximum degree of effective and regular postal services to 
     rural areas, communities, and small towns where post offices 
     are not self-sustaining;
       ``(iv) the extent to which the community served by the post 
     office lacks access to Internet, broadband and cellular phone 
     service;
       ``(v) the economic savings to the Postal Service resulting 
     from such closing or consolidation; and
       ``(vi) such other factors as the Postal Service determines 
     are necessary; and
       ``(B) may not consider compliance with any provision of the 
     Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et 
     seq.).
       ``(3) Any determination of the Postal Service to close or 
     consolidate a post office shall be in writing and shall 
     include the findings of the Postal Service with respect to 
     the considerations required to be made under paragraph (2) of 
     this subsection. Such determination and findings shall be 
     made available to persons served by such post office.
       ``(4) The Postal Service shall take no action to close or 
     consolidate a post office until 60 days after its written 
     determination is made available to persons served by such 
     post office.
       ``(5) A determination of the Postal Service to close or 
     consolidate any post office, station, or branch may be 
     appealed by any person served by such office, station, or 
     branch to the Postal Regulatory Commission within 30 days 
     after such determination is made available to such person. 
     The Commission shall review such determination on the basis 
     of the record before the Postal Service in the making of such 
     determination. The Commission shall make a determination 
     based upon such review no later than 120 days after receiving 
     any appeal under this paragraph. The Commission shall set 
     aside any determination, findings, and conclusions found to 
     be--
       ``(A) arbitrary, capricious, an abuse of discretion, or 
     otherwise not in accordance with the law;
       ``(B) without observance of procedure required by law;
       ``(C) not in conformance with the retail service standards 
     established under section 203 of the 21st Century Postal 
     Service Act of 2012; or
       ``(D) unsupported by substantial evidence on the record.

     The Commission may affirm the determination of the Postal 
     Service or order that the entire matter be returned for 
     further consideration, but the Commission may not modify the 
     determination of the Postal Service. The Commission may 
     suspend the effectiveness of the determination of the Postal 
     Service until the final disposition of the appeal. The 
     provisions of section 556, section 557, and chapter 7 of 
     title 5 shall not apply to any review carried out by the 
     Commission under this paragraph.
       ``(6) For purposes of paragraph (5), any appeal received by 
     the Commission shall--
       ``(A) if sent to the Commission through the mails, be 
     considered to have been received on the date of the Postal 
     Service postmark on the envelope or other cover in which such 
     appeal is mailed; or
       ``(B) if otherwise lawfully delivered to the Commission, be 
     considered to have been received on the date determined based 
     on any appropriate documentation or other indicia (as 
     determined under regulations of the Commission).
       ``(7) Nothing in this subsection shall be construed to 
     limit the right under section 3662--
       ``(A) of an interested person to lodge a complaint with the 
     Postal Regulatory Commission under section 3662 concerning 
     nonconformance with service standards, including the retail 
     service standards established under section 203 of the 21st 
     Century Postal Service Act of 2012; or
       ``(B) of the Postal Regulatory Commission, if the 
     Commission finds a complaint lodged by an interested person 
     to be justified, to order the Postal Service to take 
     appropriate action to achieve compliance with applicable 
     requirements, including the retail service standards 
     established under section 203 of the 21st Century Postal 
     Service Act of 2012, or to remedy the effects of any 
     noncompliance.''.
       (b) Prohibition on Closing Post Offices.--Notwithstanding 
     section 404(d) of title 39, United States Code, as amended by 
     this section, during the period beginning on the date of 
     enactment of this Act and ending on the date on which the 
     Postal Service establishes the retail service standards under 
     section 203 of this Act, the Postal Service may not close a 
     post office, except as required for the immediate protection 
     of health and safety.
       (c) Historic Post Offices.--Section 404(d) of title 39, 
     United States Code, as amended by this section, is amended by 
     adding at the end the following:
       ``(8)(A) In this paragraph, the term `historic post office 
     building' means a post office building that is a certified 
     historic structure, as that term is defined in section 
     47(c)(3) of the Internal Revenue Code of 1986.
       ``(B) In the case of a post office that has been closed and 
     that is located within a historic post office building, the 
     Postal Service shall provide Federal agencies and State and 
     local government entities the opportunity to lease the 
     historic post office building, if--
       ``(i) the Postal Service is unable to sell the building at 
     an acceptable price within a reasonable period of time after 
     the post office has been closed; and
       ``(ii) the Federal agency or State or local government 
     entity that leases the building agrees to--
       ``(I) restore the historic post office building at no cost 
     to the Postal Service;
       ``(II) assume responsibility for the maintenance of the 
     historic post office building; and
       ``(III) make the historic post office building available 
     for public use.''.

     SEC. 206. AREA AND DISTRICT OFFICE STRUCTURE.

       (a) Plan Required.--Not later than 1 year after the date of 
     enactment of this Act, the Postal Service shall submit 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--
       (1) a comprehensive strategic plan to govern decisions 
     relating to area and district office structure that considers 
     efficiency, costs, redundancies, mail volume, technological 
     advancements, operational considerations, and other issues 
     that may be relevant to establishing an effective area and 
     district office structure; and
       (2) a 10-year plan, including a timetable, that provides 
     for consolidation of area and district offices within the 
     continental United States (as defined in section 201(a)) 
     wherever the Postal Service determines a consolidation 
     would--
       (A) be cost effective; and
       (B) not substantially and adversely affect the operations 
     of the Postal Service.
       (b) Consolidation.--Beginning not later than 1 year after 
     the date of enactment of this Act, the Postal Service shall, 
     consistent with the plans required under and the criteria 
     described in subsection (a)--
       (1) consolidate district offices that are located within 50 
     miles of each other;
       (2) consolidate area and district offices that have less 
     than the mean mail volume and number of work hours for all 
     area and district offices; and
       (3) relocate area offices to headquarters.
       (c) Updates.--The Postal Service shall update the plans 
     required under subsection (a) not less frequently than once 
     every 5 years.
       (d) State Liaison.--If the Postal Service does not maintain 
     a district office in a State, the Postal Service shall 
     designate at least 1 employee of the district office 
     responsible for Postal Service operations in the State to 
     represent the needs of Postal Service customers in the State.

     SEC. 207. CONVERSION OF DOOR DELIVERY POINTS.

       (a) In General.--Subchapter VII of chapter 36 of title 39, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec.  3692. Conversion of door delivery points

       ``(a) Definitions.--In this section, the following 
     definitions shall apply:
       ``(1) Centralized delivery point.--The term `centralized 
     delivery point' means a group or cluster of mail receptacles 
     at 1 delivery point that is within reasonable proximity of 
     the street address associated with the delivery point.
       ``(2) Curbline delivery point.--The term `curbline delivery 
     point' means a delivery point that is--
       ``(A) adjacent to the street address associated with the 
     delivery point; and
       ``(B) accessible by vehicle on a street that is not a 
     private driveway.
       ``(3) Door delivery point.--The term `door delivery point' 
     means a delivery point at a door of the structure at a street 
     address.
       ``(4) Sidewalk delivery point.--The term `sidewalk delivery 
     point' means a delivery point on a sidewalk adjacent to the 
     street address associated with the delivery point.
       ``(b) Conversion.--Except as provided in subsection (c), 
     and in accordance with the solvency plan required under 
     section 401 of the 21st Century Postal Service Act of 2012 
     and standards established by the Postal

[[Page S2339]]

     Service, the Postal Service is authorized to, to the maximum 
     extent feasible, convert door delivery points to--
       ``(1) curbline delivery points;
       ``(2) sidewalk delivery points; or
       ``(3) centralized delivery points.
       ``(c) Exceptions.--
       ``(1) Continued door delivery.--The Postal Service may 
     allow for the continuation of door delivery due to--
       ``(A) a physical hardship of a customer;
       ``(B) weather, in a geographic area where snow removal 
     efforts could obstruct access to mailboxes near a road;
       ``(C) circumstances in an urban area that preclude 
     efficient use of curbline delivery points;
       ``(D) other exceptional circumstances, as determined in 
     accordance with regulations issued by the Postal Service; or
       ``(E) other circumstances in which the Postal Service 
     determines that alternatives to door delivery would not be 
     practical or cost effective.
       ``(2) New door delivery points.--The Postal Service may 
     provide door delivery to a new delivery point in a delivery 
     area that received door delivery on the day before the date 
     of enactment of this section, if the delivery point is 
     established before the delivery area is converted from door 
     delivery under subsection (b).
       ``(d) Solicitation of Comments.--The Postal Service shall 
     establish procedures to solicit, consider, and respond to 
     input from individuals affected by a conversion under this 
     section.
       ``(e) Review.--Subchapter V of this chapter shall not apply 
     with respect to any action taken by the Postal Service under 
     this section.
       ``(f) Report.--Not later than 60 days after the end of each 
     fiscal year through fiscal year 2015, the Postal Service 
     shall submit to Congress and the Inspector General of the 
     Postal Service a report on the implementation of this section 
     during the preceding fiscal year that--
       ``(1) includes the number of door delivery points--
       ``(A) that existed at the end of the fiscal year preceding 
     the preceding fiscal year;
       ``(B) that existed at the end of the preceding fiscal year;
       ``(C) that, during the preceding fiscal year, converted 
     to--
       ``(i) curbline delivery points or sidewalk delivery points;
       ``(ii) centralized delivery points; and
       ``(iii) any other type of delivery point; and
       ``(D) for which door delivery was continued under 
     subsection (c)(1);
       ``(2) estimates any cost savings, revenue loss, or decline 
     in the value of mail resulting from the conversions from door 
     delivery that occurred during the preceding fiscal year;
       ``(3) describes the progress of the Postal Service toward 
     achieving the conversions authorized under subsection (b); 
     and
       ``(4) provides such additional information as the Postal 
     Service considers appropriate.''.
       (b) Clerical Amendment.--The table of sections for 
     subchapter VII of chapter 36 of title 39, United States Code, 
     is amended by adding at the end the following:

``3692. Conversion of door delivery points.''.

     SEC. 208. LIMITATIONS ON CHANGES TO MAIL DELIVERY SCHEDULE.

       (a) Limitation on Change in Schedule.--Notwithstanding any 
     other provision of law--
       (1) the Postal Service may not establish a general, 
     nationwide delivery schedule of 5 or fewer days per week to 
     street addresses under the authority of the Postal Service 
     under title 39, United States Code, earlier than the date 
     that is 24 months after the date of enactment of this Act; 
     and
       (2) on or after the date that is 24 months after the date 
     of enactment of this Act, the Postal Service may establish a 
     general, nationwide 5-day-per-week delivery schedule to 
     street addresses under the authority of the Postal Service 
     under section 3691 of title 39, United States Code, only in 
     accordance with the requirements and limitations under this 
     section.
       (b) Preconditions.--If the Postal Service intends to 
     establish a change in delivery schedule under subsection 
     (a)(2), the Postal Service shall--
       (1) identify customers and communities for whom the change 
     may have a disproportionate, negative impact, including the 
     customers identified as ``particularly affected'' in the 
     Advisory Opinion on Elimination of Saturday Delivery issued 
     by the Commission on March 24, 2011;
       (2) develop, to the maximum extent possible, measures to 
     ameliorate any disproportionate, negative impact the change 
     would have on customers and communities identified under 
     paragraph (1), including, where appropriate, providing or 
     expanding access to mailboxes for periodical mailers on days 
     on which the Postal Service does not provide delivery;
       (3) implement measures to increase revenue and reduce 
     costs, including the measures authorized under the amendments 
     made by sections 101, 102, 103, 207, and 211 of this Act;
       (4) evaluate whether any increase in revenue or reduction 
     in costs resulting from the measures implemented under 
     paragraph (3) are sufficient to allow the Postal Service, 
     without implementing a change in delivery schedule under 
     subsection (a), to achieve long-term solvency; and
       (5) not earlier than 15 months after the date of enactment 
     of this Act and not later than 9 months before the effective 
     date proposed by the Postal Service for the change, submit a 
     report on the steps the Postal Service has taken to carry out 
     this subsection to--
       (A) the Committee on Homeland Security and Governmental 
     Affairs of the Senate and the Committee on Oversight and 
     Government Reform of the House of Representatives;
       (B) the Comptroller General of the United States; and
       (C) the Commission.
       (c) Review.--
       (1) Government accountability office.--Not later than 3 
     months after the date on which the Postal Service submits a 
     report under subsection (b)(5), the Comptroller General shall 
     submit to the Commission and to the Committee on Homeland 
     Security and Governmental Affairs of the Senate and the 
     Committee on Oversight and Government Reform of the House of 
     Representatives a report that contains findings relating to 
     each of the following:
       (A) Whether the Postal Service has adequately complied with 
     subsection (b)(3), taking into consideration the statutory 
     authority of and limitations on the Postal Service.
       (B) The accuracy of any statement by the Postal Service 
     that the measures implemented under subsection (b)(3) have 
     increased revenues or reduced costs, and the accuracy of any 
     projection by the Postal Service relating to increased 
     revenue or reduced costs resulting from the measures 
     implemented under subsection (b)(3).
       (C) The adequacy and methodological soundness of any 
     evaluation conducted by the Postal Service under subsection 
     (b)(4) that led the Postal Service to assert the necessity of 
     a change in delivery schedule under subsection (a)(2).
       (D) Whether, based on an analysis of the measures 
     implemented by the Postal Service to increase revenues and 
     reduce costs, projections of increased revenue and cost 
     savings, and the details of the profitability plan required 
     under section 401, a change in delivery schedule is necessary 
     to allow the Postal Service to achieve long-term solvency.
       (2) Postal regulatory commission.--
       (A) Request.--Not later than 6 months before the proposed 
     effective date of a change in delivery schedule under 
     subsection (a), the Postal Service shall submit to the 
     Commission a request for an advisory opinion relating to the 
     change.
       (B) Advisory opinion.--
       (i) In general.--The Commission shall--

       (I) issue an advisory opinion with respect to a request 
     under subparagraph (A), in accordance with the time limits 
     for the issuance of advisory opinions under section 
     3661(b)(2) of title 39, United States Code, as amended by 
     this Act; and
       (II) submit the advisory opinion to the Committee on 
     Homeland Security and Governmental Affairs of the Senate and 
     the Committee on Oversight and Government Reform of the House 
     of Representatives.

       (ii) Required determinations.--An advisory opinion under 
     clause (i) shall determine--

       (I) whether the measures developed under subsection (b)(2) 
     ameliorate any disproportionate, negative impact that a 
     change in schedule may have on customers and communities 
     identified under subsection (b)(1); and
       (II) based on the report submitted by the Comptroller 
     General under paragraph (1)--

       (aa) whether the Postal Service has implemented measures to 
     increase revenue and reduce costs as required under 
     subsection (b)(3);
       (bb) whether the implementation of the measures described 
     in item (aa) has increased revenues or reduced costs, or is 
     projected to further increase revenues or reduce costs in the 
     future; and
       (cc) whether a change in schedule under subsection (a)(2) 
     is necessary to allow the Postal Service to achieve long-term 
     solvency.
       (3) Prohibition on implementation of change in schedule.--
     The Postal Service may not implement a change in delivery 
     schedule under subsection (a)(2)--
       (A) before the date on which the Comptroller General 
     submits the report required under paragraph (1); and
       (B) unless the Commission determines under paragraph 
     (2)(B)(ii)(II)(cc) that the Comptroller General has concluded 
     that the change is necessary to allow the Postal Service to 
     become profitable by fiscal year 2015 and to achieve long-
     term solvency, without regard to whether the Commission 
     determines that the change is advisable.
       (d) Additional Limitations.--
       (1) Rules of construction.--Nothing in this subsection 
     shall be construed to--
       (A) authorize the reduction, or require an increase, in 
     delivery frequency for any route for which the Postal Service 
     provided delivery on fewer than 6 days per week on the date 
     of enactment of this Act;
       (B) authorize any change in--
       (i) the days and times that postal retail service or any 
     mail acceptance is available at postal retail facilities or 
     processing facilities; or
       (ii) the locations at which postal retail service or mail 
     acceptance occurs at postal retail facilities or processing 
     facilities;
       (C) authorize any change in the frequency of delivery to a 
     post office box;
       (D) prohibit the collection or delivery of a competitive 
     mail product on a weekend, a

[[Page S2340]]

     recognized Federal holiday, or any other specific day of the 
     week; or
       (E) prohibit the Postal Service from exercising its 
     authority to make changes to processing or retail networks.
       (2) Prohibition on consecutive days without mail 
     delivery.--The Postal Service shall ensure that, under any 
     change in schedule under subsection (a)(2), at no time shall 
     there be more than 2 consecutive days without mail delivery 
     to street addresses, including recognized Federal holidays.
       (e) Definition.--In this section, the term ``long-term 
     solvency'' means the ability of the Postal Service to pay 
     debts and meet expenses, including the ability to perform 
     maintenance and repairs, make investments, and maintain 
     financial reserves, as necessary to fulfill the requirements 
     and comply with the policies of title 39, United States Code, 
     and other obligations of the Postal Service over the long 
     term.

     SEC. 209. 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, the Postal Service 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) issue an advisory opinion not later than--
       ``(i) 90 days after the date on which the Postal Regulatory 
     Commission receives the proposal; or
       ``(ii) a date that the Postal Regulatory Commission and the 
     Postal Service may, not later than 1 week after the date on 
     which the Postal Regulatory Commission receives the proposal, 
     determine jointly.
       ``(3) Response to opinion.--The Postal Service shall submit 
     to the President and to Congress a response to an advisory 
     opinion issued under paragraph (2) that includes--
       ``(A) a statement of whether the Postal Service plans to 
     modify the proposal to address any concerns or implement any 
     recommendations made by the Commission; and
       ``(B) for any concern that the Postal Service determines 
     not to address and any recommendation that the Postal Service 
     determines not to implement, the reasons for the 
     determination.
       ``(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);
       ``(B) on or after a date that the Postal Regulatory 
     Commission and the Postal Service may, not later than 1 week 
     after the date on which the Postal Regulatory Commission 
     receives a proposal under paragraph (2), determine jointly; 
     or
       ``(C) 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.
       ``(5) Modification of timeline.--At any time, the Postal 
     Service and the Postal Regulatory Commission may jointly 
     redetermine a date determined under paragraph (2)(B)(ii) or 
     (4)(B).''.

     SEC. 210. PUBLIC PROCEDURES FOR SIGNIFICANT CHANGES TO 
                   MAILING SPECIFICATIONS.

       (a) Notice and Opportunity for Comment Required.--Effective 
     on the date on which the Postal Service issues a final rule 
     under subsection (c), before making a change to mailing 
     specifications that could pose a significant burden to the 
     customers of the Postal Service and that is not reviewed by 
     the Commission, the Postal Service shall--
       (1) publish a notice of the proposed change to the 
     specification in the Federal Register;
       (2) provide an opportunity for the submission of written 
     comments concerning the proposed change for a period of not 
     less than 30 days;
       (3) after considering any comments submitted under 
     paragraph (2) and making any modifications to the proposed 
     change that the Postal Service determines are necessary, 
     publish--
       (A) the final change to the specification in the Federal 
     Register;
       (B) responses to any comments submitted under paragraph 
     (2); and
       (C) an analysis of the financial impact that the proposed 
     change would have on--
       (i) the Postal Service; and
       (ii) the customers of the Postal Service that would be 
     affected by the proposed change; and
       (4) establish an effective date for the change to mailing 
     specifications that is not earlier than 30 days after the 
     date on which the Postal Service publishes the final change 
     under paragraph (3).
       (b) Exception for Good Cause.--If the Postal Service 
     determines that there is an urgent and compelling need for a 
     change to a mailing specification described in subsection (a) 
     in order to avoid demonstrable harm to the operations of the 
     Postal Service or to the public interest, the Postal Service 
     may--
       (1) change the mailing specifications by--
       (A) issuing an interim final rule that--
       (i) includes a finding by the Postal Service that there is 
     good cause for the interim final rule;
       (ii) provides an opportunity for the submission of written 
     comments on the interim final rule for a period of not less 
     than 30 days; and
       (iii) establishes an effective date for the interim final 
     rule that is not earlier than 30 days after the date on which 
     the interim final rule is issued; and
       (B) publishing in the Federal Register a response to any 
     comments submitted under subparagraph (A)(ii); and
       (2) waive the requirement under paragraph (1)(A)(iii) or 
     subsection (a)(4).
       (c) Rules Relating to Notice and Comment.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Postal Service shall issue rules 
     governing the provision of notice and opportunity for comment 
     for changes in mailing specifications under subsection (a).
       (2) Rules.--In issuing the rules required under paragraph 
     (1), the Postal Service shall--
       (A) publish a notice of proposed rulemaking in the Federal 
     Register that includes proposed definitions of the terms 
     ``mailing specifications'' and ``significant burden'';
       (B) provide an opportunity for the submission of written 
     comments concerning the proposed change for a period of not 
     less than 30 days; and
       (C) publish--
       (i) the rule in final form in the Federal Register; and
       (ii) responses to the comments submitted under subparagraph 
     (B).

     SEC. 211. NONPOSTAL PRODUCTS AND SERVICES.

       (a) In General.--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) after the date of enactment of the 21st Century 
     Postal Service Act of 2012, and except as provided in 
     subsection (e), to provide other services that are not postal 
     services, after the Postal Regulatory Commission--
       ``(A) makes a determination that the provision of such 
     services--
       ``(i) uses the processing, transportation, delivery, retail 
     network, or technology of the Postal Service;
       ``(ii) is consistent with the public interest and a 
     demonstrated or potential public demand for--

       ``(I) the Postal Service to provide the services instead of 
     another entity providing the services; or
       ``(II) the Postal Service to provide the services in 
     addition to another entity providing the services;

       ``(iii) would not create unfair competition with the 
     private sector, taking into consideration the extent to which 
     the Postal Service will not, either by legal obligation or 
     voluntarily, comply with any State or local requirements that 
     are generally applicable to persons that provide the 
     services;
       ``(iv) will be undertaken in accordance with all Federal 
     laws generally applicable to the provision of such services; 
     and
       ``(v) has the potential to improve the net financial 
     position of the Postal Service, based on a market analysis 
     provided to the Postal Regulatory Commission by the Postal 
     Service; and
       ``(B) for services that the Postal Regulatory Commission 
     determines meet the criteria under subparagraph (A), 
     classifies each such service as a market-dominant product, 
     competitive product, or experimental product, as required 
     under chapter 36 of title 39, United States Code;''; and
       (2) in subsection (e)(2), by striking ``Nothing'' and all 
     that follows through ``except that the'' and inserting 
     ``The''.
       (b) Complaints.--Section 3662(a) of title 39, United States 
     Code, is amended by inserting ``404(a)(6)(A),'' after 
     ``403(c),''.
       (c) Market Analysis.--During the 5-year period beginning on 
     the date of enactment of this Act, the Postal Service shall 
     submit a copy of any market analysis provided to the 
     Commission under section 404(a)(6)(A)(v) of title 39, United 
     States Code, as amended by this section, to the Committee on 
     Homeland Security and Governmental Affairs of the Senate and 
     the Committee on Oversight and Government Reform of the House 
     of Representatives.

     SEC. 212. CHIEF INNOVATION OFFICER; INNOVATION STRATEGY.

       (a) Chief Innovation Officer.--
       (1) In general.--Chapter 2 of title 39, United States Code, 
     is amended by adding at the end the following:

     ``Sec.  209. Chief innovation officer

       ``(a) Establishment.--There shall be in the Postal Service 
     a Chief Innovation Officer appointed by the Postmaster 
     General.
       ``(b) Qualifications.--The Chief Innovation Officer shall 
     have proven expertise and a record of accomplishment in areas 
     such as--
       ``(1) the postal and shipping industry;
       ``(2) innovative product research and development;

[[Page S2341]]

       ``(3) brand marketing strategy;
       ``(4) new and emerging technology, including communications 
     technology; or
       ``(5) business process management.
       ``(c) Duties.--The Chief Innovation Officer shall lead the 
     development and implementation of--
       ``(1) innovative postal products and services, particularly 
     products and services that use new and emerging technology, 
     including communications technology, to improve the net 
     financial position of the Postal Service; and
       ``(2) nonpostal products and services authorized under 
     section 404(a)(6) that have the potential to improve the net 
     financial position of the Postal Service.
       ``(d) Deadline.--The Postmaster General shall appoint a 
     Chief Innovation Officer not later than 90 days after the 
     date of enactment of the 21st Century Postal Service Act of 
     2012.
       ``(e) Condition.--
       ``(1) In general.--The Chief Innovation Officer may not 
     hold any other office or position in the Postal Service while 
     serving as Chief Innovation Officer.
       ``(2) Rule of construction.--Nothing in this section shall 
     be construed to prohibit an individual who holds another 
     office or position in the Postal Service at the time the 
     individual is appointed Chief Innovation Officer from serving 
     as the Chief Innovation Officer under this section.''.
       (2) Technical and conforming amendment.--The table of 
     sections for chapter 2 of title 39, United States Code, is 
     amended by adding at the end the following:

``209. Chief innovation officer.''.

       (b) Innovation Strategy.--
       (1) Initial report on innovation strategy.--
       (A) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Postmaster General, acting through 
     the Chief Innovation Officer, shall submit a report that 
     contains a comprehensive strategy (referred to in this 
     subsection as the ``innovation strategy'') for improving the 
     net financial position of the Postal Service through 
     innovation, including the offering of new postal and 
     nonpostal products and services, to--
       (i) the Committee on Homeland Security and Governmental 
     Affairs of the Senate; and
       (ii) the Committee on Oversight and Government Reform of 
     the House of Representatives.
       (B) Matters to be addressed.--At a minimum, the report on 
     innovation strategy required under subparagraph (A) shall 
     describe--
       (i) the specific innovative postal and nonpostal products 
     and services to be developed and offered by the Postal 
     Service, including--

       (I) the nature of the market demand to be satisfied by each 
     product or service; and
       (II) the estimated date by which each product or service 
     will be introduced;

       (ii) the cost of developing and offering each product or 
     service;
       (iii) the anticipated sales volume for each product or 
     service;
       (iv) the anticipated revenues and profits to be generated 
     by each product or service;
       (v) the likelihood of success of each product or service 
     and the risks associated with the development and sale of 
     each product or service;
       (vi) the trends anticipated in market conditions that may 
     affect the success of each product or service during the 5-
     year period beginning on the date of the submission of the 
     report under subparagraph (A);
       (vii) any innovations designed to improve the net financial 
     position of the Postal Service, other than the offering of 
     new products and services; and
       (viii) the metrics that will be used to assess the 
     effectiveness of the innovation strategy.
       (2) Annual report.--
       (A) In general.--Not later than 1 year after the date of 
     the submission of the initial report containing the 
     innovation strategy under paragraph (1), and annually 
     thereafter for 10 years, the Postmaster General, acting 
     through the Chief Innovation Officer, shall submit a report 
     on the implementation of the innovation strategy to--
       (i) the Committee on Homeland Security and Governmental 
     Affairs of the Senate; and
       (ii) the Committee on Oversight and Government Reform of 
     the House of Representatives.
       (B) Matters to be addressed.--At a minimum, an annual 
     report submitted under subparagraph (A) shall include--
       (i) an update of the initial report on innovation strategy 
     submitted under paragraph (1);
       (ii) a description of the progress made by the Postal 
     Service in implementing the products, services, and other 
     innovations described in the initial report on innovation 
     strategy;
       (iii) an analysis of the performance of each product, 
     service, or other innovation described in the initial report 
     on innovation strategy, including--

       (I) the revenue generated by each product or service 
     developed in accordance with the innovation strategy under 
     this section and the cost of developing and offering each 
     product or service for the preceding year;
       (II) trends in each market in which a product or service is 
     intended to satisfy a demand;
       (III) each product or service identified in the innovation 
     strategy that is to be discontinued, the date on which each 
     discontinuance will occur, and the reasons for each 
     discontinuance;
       (IV) each alteration that the Postal Service plans to make 
     to a product or service identified in the innovation strategy 
     to address changing market conditions and an explanation of 
     how each alteration will ensure the success of the product or 
     service;
       (V) the performance of innovations other than new products 
     and services that are designed to improve the net financial 
     position of the Postal Service; and
       (VI) the performance of the innovation strategy according 
     to the metrics described in paragraph (1)(B)(viii).

     SEC. 213. STRATEGIC ADVISORY COMMISSION ON POSTAL SERVICE 
                   SOLVENCY AND INNOVATION.

       (a) Establishment.--
       (1) In general.--There is established in the Postal Service 
     a Strategic Advisory Commission on Postal Service Solvency 
     and Innovation (in this section referred to as the ``Advisory 
     Commission'').
       (2) Independence.--The Advisory Commission shall not be 
     subject to the supervision of the Board of Governors of the 
     Postal Service (in this section referred to as the ``Board of 
     Governors''), the Postmaster General, or any other officer or 
     employee of the Postal Service.
       (b) Purpose.--The purpose of the Advisory Commission is--
       (1) to provide strategic guidance to the President, 
     Congress, the Board of Governors, and the Postmaster General 
     on enhancing the long-term solvency of the Postal Service; 
     and
       (2) to foster innovative thinking to address the challenges 
     facing the Postal Service.
       (c) Membership.--
       (1) Composition.--The Advisory Commission shall be composed 
     of 7 members, of whom--
       (A) 3 members shall be appointed by the President, who 
     shall designate 1 member appointed under this subparagraph to 
     serve as Chairperson of the Advisory Commission; and
       (B) 1 member shall be appointed by each of--
       (i) the majority leader of the Senate;
       (ii) the minority leader of the Senate;
       (iii) the Speaker of the House of Representatives; and
       (iv) the minority leader of the House of Representatives.
       (2) Qualifications.--Members of the Advisory Commission 
     shall be prominent citizens having--
       (A) significant depth of experience in such fields as 
     business and public administration;
       (B) a reputation for innovative thinking;
       (C) familiarity with new and emerging technologies; and
       (D) experience with revitalizing organizations that 
     experienced significant financial challenges or other 
     challenges.
       (3) Incompatible offices.--An individual who is appointed 
     to the Advisory Commission may not serve as an elected 
     official or an officer or employee of the Federal Government 
     while serving as a member of the Advisory Commission, except 
     in the capacity of that individual as a member of the 
     Advisory Commission.
       (4) Deadline for appointment.--Each member of the Advisory 
     Commission shall be appointed not later than 45 days after 
     the date of enactment of this Act.
       (5) Meetings; quorum; vacancies.--
       (A) Meetings.--The Advisory Commission shall meet at the 
     call of the Chairperson or a majority of the members of the 
     Advisory Commission.
       (B) Quorum.--4 members of the Advisory Commission shall 
     constitute a quorum.
       (C) Vacancies.--Any vacancy in the Advisory Commission 
     shall not affect the powers of the Advisory Commission, but 
     shall be filled as soon as practicable in the same manner in 
     which the original appointment was made.
       (d) Duties and Powers.--
       (1) Duties.--The Advisory Commission shall--
       (A) study matters that the Advisory Commission determines 
     are necessary and appropriate to develop a strategic 
     blueprint for the long-term solvency of the Postal Service, 
     including--
       (i) the financial, operational, and structural condition of 
     the Postal Service;
       (ii) alternative strategies and business models that the 
     Postal Service could adopt;
       (iii) opportunities for additional postal and nonpostal 
     products and services that the Postal Service could offer;
       (iv) innovative services that postal services in foreign 
     countries have offered, including services that respond to 
     the increasing use of electronic means of communication; and
       (v) the governance structure, management structure, and 
     management of the Postal Service, including--

       (I) the appropriate method of appointment, qualifications, 
     duties, and compensation for senior officials of the Postal 
     Service, including the Postmaster General; and
       (II) the number and functions of senior officials of the 
     Postal Service and the number of levels of management of the 
     Postal Service; and

       (B) submit the report required under subsection (f).

[[Page S2342]]



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