[Congressional Record Volume 164, Number 124 (Tuesday, July 24, 2018)]
[Senate]
[Pages S5280-S5297]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 3463. Mr. CARPER (for himself and Ms. Heitkamp) submitted an
amendment intended to be proposed to amendment SA 3399 proposed by Mr.
Shelby to the bill H.R. 6147, making appropriations for the Department
of the Interior, environment, and related agencies for the fiscal year
ending September 30, 2019, and for other purposes; which was ordered to
lie on the table; as follows:
At the end of division B (before the short title), add the
following:
TITLE IX--POSTAL SERVICE REFORM
SECTION 901. SHORT TITLE.
This title may be cited as the ``Postal Service Reform Act
of 2018''.
SEC. 902. TABLE OF CONTENTS.
The table of contents for this title is as follows:
Sec. 901. Short title.
Sec. 902. Table of contents.
Sec. 903. Definitions.
SUBTITLE A--POSTAL PERSONNEL
Sec. 921. Postal Service Health Benefits Program.
Sec. 922. Postal Service retiree health care benefit funding reform.
Sec. 923. Medicare part B premium subsidy for newly enrolling Postal
Service annuitants and family members.
Sec. 924. Postal Service pension funding reform.
Sec. 925. Supervisory and other managerial organizations.
Sec. 926. Right of appeal to Merit Systems Protection Board.
SUBTITLE B--POSTAL SERVICE OPERATIONS REFORM
Sec. 941. Governance reform.
Sec. 942. Modernizing postal rates.
Sec. 943. Nonpostal services.
Sec. 944. Shipping of wine, beer, and distilled spirits.
[[Page S5281]]
Sec. 945. Efficient and flexible universal postal service.
Sec. 946. Fair stamp-evidencing competition.
Sec. 947. Market-dominant rates.
Sec. 948. Review of Postal Service cost attribution guidelines.
Sec. 949. Aviation security for parcels.
Sec. 950. Long-term solvency plan; annual financial plan and budget.
Sec. 951. Service standards, performance targets, and performance
measurements.
Sec. 952. Postal Service Chief Innovation Officer.
Sec. 953. Emergency suspensions of post offices.
Sec. 954. Mailing address requirements.
SUBTITLE C--POSTAL CONTRACTING REFORM
Sec. 961. Contracting provisions.
Sec. 962. Technical amendment to definition.
SUBTITLE D--POSTAL REGULATORY COMMISSION, INSPECTOR GENERAL, RELATED
PROVISIONS, AND MISCELLANEOUS
Sec. 981. Postal Regulatory Commission.
Sec. 982. Inspector General of the United States Postal Service and the
Postal Regulatory Commission.
Sec. 983. GAO report on fragmentation, overlap, and duplication in
Federal programs and activities.
SEC. 903. DEFINITIONS.
In this title, the following definitions shall apply:
(1) Commission.--The term ``Commission'' means the Postal
Regulatory Commission.
(2) Postal retail facility.--The term ``postal retail
facility''--
(A) means a post office, post office branch, post office
classified station, or other facility that is operated by the
Postal Service, the primary function of which is to provide
retail postal services; and
(B) does not include a contractor-operated facility
offering postal services.
(3) Postal service.--The term ``Postal Service'' means the
United States Postal Service.
Subtitle A--Postal Personnel
SEC. 921. 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 `initial contract year' means the contract
year beginning in January of the first full year that begins
not less than 7 months after the date of enactment of this
section;
``(2) the term `initial participating carrier' means a
carrier that enters into a contract with the Office to
participate in the Postal Service Health Benefits Program
during the initial contract year;
``(3) the term `Medicare eligible individual' means an
individual who--
``(A) is entitled to Medicare part A, but excluding an
individual who is eligible to enroll under such part under
section 1818 of the Social Security Act (42 U.S.C. 1395i-2);
and
``(B) is eligible to enroll in Medicare part B;
``(4) 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.);
``(5) 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.);
``(6) the term `Medicare part D' means the Medicare
insurance program established under part D of title XVIII of
the Social Security Act (42 U.S.C. 1395w-101 et seq.);
``(7) the term `Office' means the Office of Personnel
Management;
``(8) the term `Postal Service' means the United States
Postal Service;
``(9) the term `Postal Service annuitant' means an
annuitant enrolled in a health benefits plan under this
chapter whose Government contribution is paid by the Postal
Service or the Postal Service Retiree Health Benefits Fund
under section 8906(g)(2);
``(10) the term `Postal Service employee' means an employee
of the Postal Service enrolled in a health benefits plan
under this chapter;
``(11) the term `Postal Service Health Benefits Program'
means the program of health benefits plans established under
subsection (c) within the Federal Employees Health Benefits
Program under this chapter;
``(12) the term `Postal Service Medicare eligible
annuitant' means an individual who--
``(A) is a Postal Service annuitant; and
``(B) is a Medicare eligible individual;
``(13) the term `PSHBP plan' means a health benefits plan
offered under the Postal Service Health Benefits Program; and
``(14) the term `qualified carrier' means a carrier for
which the total enrollment in the plans provided under this
chapter includes, in the contract year beginning in January
of the year before the initial contract year, a combined
total of 1,500 or more enrollees who are--
``(A) Postal Service employees; or
``(B) Postal Service annuitants.
``(b) Application of Section.--The requirements under this
section shall--
``(1) apply to the initial contract year, and each contract
year thereafter; and
``(2) supersede other provisions of this chapter to the
extent of any specific inconsistency, as determined by the
Office.
``(c) Establishment of the Postal Service Health Benefits
Program.--
``(1) In general.--The Office shall establish the Postal
Service Health Benefits Program, which shall--
``(A) consist of health benefits plans offered under this
chapter;
``(B) include plans offered by--
``(i) each qualified carrier; and
``(ii) any other carrier determined appropriate by the
Office;
``(C) be available for participation by all Postal Service
employees, in accordance with subsection (d);
``(D) be available for participation by all Postal Service
annuitants, in accordance with subsection (d);
``(E) not be available for participation by an individual
who is not a Postal Service employee or Postal Service
annuitant (except as a family member of such an employee or
annuitant); and
``(F) be implemented and administered by the Office.
``(2) Separate postal service risk pool.--The Office shall
ensure that each PSHBP plan includes rates, one for
enrollment as an individual, one for enrollment for self plus
one, and one for enrollment for self and family within each
option in the PSHBP plan, that reasonably and equitably
reflect the cost of benefits provided to a risk pool
consisting solely of Postal Service employees and Postal
Service annuitants (and family members of such employees and
annuitants), taking into specific account the reduction in
benefits cost for the PSHBP plan due to the Medicare
enrollment requirements under subsection (e) and any savings
or subsidies resulting from subsection (f).
``(3) Actuarially equivalent coverage.--The Office shall
ensure that each carrier participating in the Postal Service
Health Benefits Program provides coverage under the PSHBP
plans offered by the carrier that is actuarially equivalent,
as determined by the Director of the Office, to the coverage
that the carrier provides under the health benefits plans
offered by the carrier under the Federal Employee Health
Benefits Program that are not PSHBP plans.
``(4) Applicability of federal employee health benefits
program requirements.--Except as otherwise set forth in this
section, all provisions of this chapter applicable to health
benefits plans offered by a carrier under section 8903 or
8903a shall apply to PSHBP plans.
``(5) Application of continuation coverage.--In accordance
with rules established by the Office, section 8905a shall
apply to PSHBP plans in the same manner as that section
applies to other health benefits plans offered under this
chapter.
``(d) Election of Coverage.--
``(1) In general.--Except as provided in paragraphs (2) and
(3), each Postal Service employee and Postal Service
annuitant who elects to receive health benefits coverage
under this chapter--
``(A) shall be subject to the requirements under this
section; and
``(B) may only enroll in a PSHBP plan.
``(2) Annuitants.--A Postal Service annuitant shall not be
subject to this section if the Postal Service annuitant--
``(A) is enrolled in a health benefits plan under this
chapter for the contract year before the initial contract
year that is not a health benefits plan offered by an initial
participating carrier, unless the Postal Service annuitant
voluntarily enrolls in a PSHBP plan;
``(B) resides in a geographic area--
``(i) for which there is not a PSHBP plan in which the
Postal Service annuitant may enroll; or
``(ii) in which there is a lack of participating Medicare
part B providers; or
``(C) would not derive benefit from enrolling in Medicare
part B because of comprehensive medical coverage provided by
the Department of Veterans Affairs or other programs.
``(3) Employees.--A Postal Service employee who is enrolled
in a health benefits plan under this chapter for the contract
year immediately preceding the initial contract year that is
not a health benefits plan offered by an initial
participating carrier shall not be subject to the
requirements under this section, except that--
``(A) if the Postal Service employee changes enrollment to
a different health benefits plan under this chapter during
the open season for the initial contract year, or after the
start of the initial contract year, the Postal Service
employee may only enroll in a PSHBP plan;
``(B) if the health benefits plan in which the Postal
Service employee is enrolled for such contract year becomes
available as a PSHBP plan, the Postal Service employee may
only enroll in a PSHBP plan;
``(C) upon becoming a Postal Service annuitant, if the
Postal Service employee elects to continue coverage under
this chapter, the Postal Service employee shall enroll in a
PSHBP plan during--
``(i) the open season that is being held when the Postal
Service employee becomes a Postal Service annuitant; or
``(ii) if the date on which the Postal Service employee
becomes a Postal Service annuitant falls outside of an open
season, the first open season following that date; and
[[Page S5282]]
``(D) subparagraphs (A), (B), and (C) shall not apply to an
employee who resides in a geographic area for which there is
not a PSHBP plan in which the employee may enroll.
``(e) Requirement of Medicare Enrollment.--
``(1) Postal service medicare eligible annuitants.--A
Postal Service Medicare eligible annuitant subject to this
section may not continue coverage under the Postal Service
Health Benefits Program unless the Postal Service Medicare
eligible annuitant enrolls in Medicare part A, Medicare part
B, and Medicare part D (as part of a prescription drug plan
described in subsection (f)(2)).
``(2) Medicare eligible family members.--If a family member
of a Postal Service annuitant who is subject to this section
is a Medicare eligible individual, the family member may not
be covered under the Postal Service Health Benefits Program
as a family member of the Postal Service annuitant unless the
family member enrolls in Medicare part A, Medicare part B,
and Medicare part D (as part of a prescription drug plan
described in subsection (f)(2)).
``(3) Process for coordinated election of enrollment under
medicare part b.--The Office shall establish a process under
which--
``(A) Postal Service annuitants and family members who are
subject to the requirements of paragraph (1) or (2)--
``(i) are informed, at the time of enrollment under this
chapter, of such requirement; and
``(ii) except as provided in paragraph (4), as a
consequence of such enrollment are deemed to have elected to
be enrolled under Medicare part B (under subsection (m)(1) of
section 1837 of the Social Security Act (42 U.S.C. 1395p)) in
connection with the enrollment in a PSHBP plan under this
chapter; and
``(B) the Office provides the Secretary of Health and Human
Services and the Commissioner of Social Security in a timely
manner with such information respecting such annuitants and
family members and such election as may be required to effect
their enrollment and coverage under Medicare part B and this
section in a timely manner.
``(4) Waiver for extreme financial hardship.--
``(A) In general.--The Postal Service, in consultation with
recognized labor organizations and management organizations,
shall establish a waiver program under which the requirement
to enroll in Medicare part B under paragraph (1) or (2), as
applicable, is waived for Postal Service annuitants and
family members who demonstrate extreme financial hardship.
``(B) Effect of waiver.--If the applicable requirement
described in subparagraph (A) is waived for a Postal Service
annuitant or family member--
``(i) the Postal Service shall notify the Office of the
waiver; and
``(ii) the annuitant or family member shall not be deemed
to have elected to be enrolled under Medicare part B as
described in paragraph (3)(A)(ii).
``(f) Medicare Coordination.--
``(1) In general.--The Office shall require each PSHBP plan
to provide benefits for Medicare eligible individuals
pursuant to the standard coordination of benefits method used
under this chapter, rather than the exclusion method or the
carve-out method.
``(2) Medicare part d prescription drug benefits.--The
Office shall require each PSHBP plan to provide qualified
prescription drug coverage for Postal Service annuitants and
family members who are part D eligible individuals (as
defined in section 1860D-1(a)(3)(A) of the Social Security
Act (42 U.S.C. 1395w-101(a)(3)(A)) under a prescription drug
plan under Medicare part D pursuant to the provisions of
section 1860D-22(b) (commonly referred to as an `employer
group waiver plan'). For purposes of the preceding sentence,
the carrier offering the PSHBP plan shall be deemed to be the
sponsor of the plan for purposes of Medicare part D.
``(g) Postal Service Contribution.--
``(1) In general.--Subject to subsection (i), 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 the year before the initial
contract year), the Office shall determine the weighted
average of the rates established pursuant to subsection
(c)(2) for PSHBP 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
of the year before the initial contract year.
``(h) Reserves.--
``(1) Separate reserves.--
``(A) In general.--The Office shall ensure that each PSHBP
plan maintains separate reserves (including a separate
contingency reserve) with respect to the enrollees in the
PSHBP plan in accordance with section 8909.
``(B) References.--For purposes of the Postal Service
Health Benefits Program, each reference to `the Government'
in section 8909 shall be deemed to be a reference to the
Postal Service.
``(C) Amounts to be credited.--The reserves (including the
separate contingency reserve) maintained by each PSHBP plan
shall be credited with a proportionate amount of the funds in
the existing reserves for health benefits plans offered by an
initial participating carrier.
``(2) Discontinuation of pshbp plan.--In applying section
8909(e) relating to a PSHBP 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 PSHBP
plans continuing under this chapter.
``(i) 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.
``(j) Medicare Education Program.--Not later than 180 days
after the date of enactment of this section, the Postal
Service shall establish a Medicare Education Program, under
which the Postal Service shall--
``(1) notify annuitants and employees of the Postal Service
about the Postal Service Health Benefits Program;
``(2) provide information regarding the Postal Service
Health Benefits Program to such annuitants and employees,
including--
``(A) a description of the health care options available
under the Postal Service Health Benefits Program;
``(B) the requirement that annuitants be enrolled in
Medicare under subsection (e)(1); and
``(C) the premium subsidies under section 923 of the Postal
Service Reform Act of 2018; and
``(3) respond and provide answers to any inquiry from such
annuitants and employees about the Postal Service Health
Benefits Program or Medicare enrollment.''.
(2) Technical and conforming amendments.--
(A) Section 8903(1) of title 5, United States Code, is
amended by striking ``two levels of benefits'' and inserting
``2 levels of benefits for enrollees under this chapter
generally and 2 levels of benefits for enrollees under the
Postal Service Health Benefits Program established under
section 8903c''.
(B) 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.''.
(b) Coordination With Medicare.--
(1) Medicare enrollment and coverage.--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 an individual who--
``(A) is (i) a Postal Service Medicare eligible annuitant,
or (ii) an individual who is a family member of such an
annuitant and is a Medicare eligible individual;
``(B) enrolls in a PSHBP plan under section 8903c of title
5, United States Code; and
``(C) is not enrolled under this part,
the individual is deemed, in accordance with section
8903c(e)(3) of such title, to have elected to be enrolled
under this part.
``(2) In the case of an individual who is deemed to have
elected to be enrolled under paragraph (1), the coverage
period under this part shall begin on the date that the
individual first has coverage under the PSHBP plan pursuant
to the enrollment described in paragraph (1)(B).
``(3) The provisions of section 1838(b) shall apply to an
individual who is deemed to have elected to be enrolled under
paragraph (1).
``(4) The Secretary, the Commissioner of Social Security,
the United States Postal Service, and the Office of Personnel
Management shall coordinate to monitor premiums paid by
individuals who are deemed to have elected to be enrolled
under paragraph (1) for purposes of determining whether those
individuals are in compliance with the applicable
requirements under section 8903c(e) of title 5, United States
Code.
``(5) The definitions in section 8903c(a) of title 5,
United States Code, shall apply for purposes of this
subsection.''.
(2) Waiver of increase of premium.--Section 1839(b) of the
Social Security Act (42 U.S.C. 1395r(b)) is amended by
inserting after ``section 1837,'' the following: ``and not
pursuant to a deemed enrollment under subsection (m) of such
section during the open season for the initial contract year
(as defined in section 8903c(a) of title 5, United States
Code) of the Postal Service Health Benefits Program,''.
(3) Conforming coordination of benefit rules.--Section
1862(b) of the Social Security Act (42 U.S.C. 1395y(b)) is
amended by adding at the end the following:
``(10) Coordination of benefits with postal service health
benefits plans.--Paragraphs (1) through (9) shall apply
except to the extent that the Secretary, in consultation with
the Office of Personnel Management, determines those
paragraphs to be inconsistent with section 8903c(f) of title
5, United States Code.''.
SEC. 922. POSTAL SERVICE RETIREE HEALTH CARE BENEFIT FUNDING
REFORM.
(a) Contributions.--Section 8906(g) of title 5, United
States Code, is amended--
(1) by striking ``(2)(A) The Government'' and inserting
``(2)(A)(i) The Government''; and
(2) in paragraph (2)--
(A) in subparagraph (A)--
[[Page S5283]]
(i) in clause (i), as added by paragraph (1), by striking
``shall through September 30, 2016, be paid'' and all that
follows and inserting the following: ``shall be paid as
provided in clause (ii).''; and
(ii) by adding at the end the following:
``(ii) With respect to the Government contributions
required to be paid under clause (i)--
``(I) the portion of the contributions that is equal to the
amount of the net claims costs under the enrollment of the
individuals described in clause (i) shall be paid from the
Postal Service Retiree Health Benefits Fund up to the amount
contained in the Fund; and
``(II) any remaining amount shall be paid by the United
States Postal Service.''; and
(B) by adding at the end the following:
``(C) For purposes of this paragraph, the amount of the net
claims costs under the enrollment of an individual described
in subparagraph (A)(i) shall be the amount, as determined by
the Office over any particular period of time, equal to the
difference between--
``(i) the sum of--
``(I) the costs incurred by a carrier in providing health
services to, paying for health services provided to, or
reimbursing expenses for health services provided to, the
individual and any other person covered under the enrollment
of the individual; and
``(II) an amount of indirect expenses reasonably allocable
to the provision, payment, or reimbursement described in
subclause (I), as determined by the Office; and
``(ii) the amount withheld from the annuity of the
individual or otherwise paid by the individual under this
section.
``(D) Any computation by the Office under this section that
relates to an individual described in subparagraph (A)(i) of
this paragraph shall be made in consultation with the United
States Postal Service.''.
(b) Postal Service Retiree Health Benefits Fund.--Section
8909a(d) of title 5, United States Code, is amended--
(1) in paragraph (1)--
(A) by striking ``Office'' and inserting ``United States
Postal Service''; and
(B) by striking ``required under section 8906(g)(2)(A)''
and inserting the following: ``required to be paid from the
Postal Service Retiree Health Benefits Fund under section
8906(g)(2)(A)(ii)(I)'';
(2) by striking paragraphs (2) and (4);
(3) by redesignating paragraph (3) as paragraph (4);
(4) by inserting after paragraph (1) the following:
``(2) The United States Postal Service shall make
sufficient payments into the Fund, in accordance with
paragraphs (4) and (5)(B), so that the value of the assets of
the Fund is equal to the Postal Service actuarial liability.
``(3)(A) Not later than June 30, 2020, the United States
Postal Service shall compute, and by June 30 of each
succeeding year, the United States Postal Service shall
recompute, a schedule including a series of annual
installments that provide for the liquidation of the amount
described under subparagraph (B) (regardless of whether the
amount is a liability or surplus) by September 30 of the
first fiscal year that begins 40 years after the date of
enactment of the Postal Service Reform Act of 2018 (unless
the schedule is extended as provided in paragraph
(4)(C)(ii)(II)), 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 preceding fiscal year; and
``(ii) the value of the assets of the Postal Service
Retiree Health Benefits Fund as of September 30 of the
preceding fiscal year.'';
(5) in paragraph (4), as so redesignated--
(A) 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);
(B) in subparagraph (B)--
(i) in clause (i), by striking ``paragraph (1)'' and
inserting ``paragraph (1), except to the extent the payment
would cause the value of the assets in the Fund to exceed the
Postal Service actuarial liability''; and
(ii) in clause (ii)--
(I) by inserting ``except as provided in subparagraph
(C),'' before ``any''; and
(II) by striking ``paragraph (2)(B).'' and inserting
``paragraph (3).''; and
(C) by adding at the end the following:
``(C)(i) Upon request by the United States Postal Service,
the Postal Regulatory Commission may waive the annual
installment payment required to be made in a fiscal year
under subparagraph (B)(ii) if the United States Postal
Service meets conditions established by the Postal Regulatory
Commission related to--
``(I) financial stability and retained earnings; and
``(II) the capability to maintain a high level of service.
``(ii) If the Postal Regulatory Commission waives the
annual installment payment required to be made in a fiscal
year under subparagraph (B)(ii)--
``(I) for purposes of any financial reporting by the United
States Postal Service, the payment shall be deemed to have
been made; and
``(II) the United States Postal Service shall extend the
liquidation schedule under paragraph (3)(A) by 1 year.
``(iii) If the United States Postal Service does not
request a waiver of the annual installment payment required
to be made in a fiscal year under subparagraph (B)(ii) and
does not make the payment, the United States Postal Service
may not increase rates for market-dominant products under
section 3622 of title 39 during the following fiscal year.'';
(6) by redesignating paragraph (6) as paragraph (8);
(7) by striking paragraph (5) and inserting the following:
``(5)(A) Concurrently with each computation or
recomputation under paragraph (3), the United States Postal
Service shall compute the amount, as of the date of the
computation, that is equal to the difference between--
``(i) the Postal Service actuarial liability as of
September 30 of the preceding fiscal year; and
``(ii) the value of the assets of the Postal Service
Retiree Health Benefits Fund as of September 30 of the
preceding fiscal year.
``(B) If the United States Postal Service disposes of any
property owned or leased by the United States Postal Service,
and, based on the most recent computation under subparagraph
(A), the amount described in clause (i) of that subparagraph
is greater than the amount described in clause (ii) of that
subparagraph, the United States Postal Service shall pay into
the Fund the lesser of--
``(i) the amount of net profit to the United States Postal
Service resulting from the disposal of property (as
determined by the Postal Regulatory Commission); or
``(ii) the amount computed under subparagraph (A).
``(C) The United States Postal Service shall make each
payment required under subparagraph (B) without regard to
whether the United States Postal Service has completed the
annual installment payments required under paragraph
(4)(B)(ii), as scheduled under paragraph (3)(A).
``(6) 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.
``(7)(A) The Office shall provide to the United States
Postal Service any data necessary for computations under this
subsection.
``(B) Upon computing an amount or schedule under this
subsection for a fiscal year, the United States Postal
Service shall provide the data used for the computation to
the Postal Regulatory Commission for review of the
computation.
``(C) Not later than 30 days after receiving data from the
United States Postal Service under subparagraph (B), the
Postal Regulatory Commission, in consultation with the United
States Postal Service, shall--
``(i) determine whether the amount or schedule was computed
in accordance with this subsection;
``(ii) if the amount or schedule was computed in accordance
with this subsection, submit to the Office a certification
that the amount or schedule is the definitive amount or
schedule for that fiscal year; and
``(iii) if the amount or schedule was not computed in
accordance with this subsection, request that the Office
recompute the amount or schedule.
``(D)(i) Not later than 30 days after receiving a request
from the Postal Regulatory Commission under subparagraph
(C)(iii), the Office shall recompute the amount or schedule.
``(ii) If the Office recomputes an amount or schedule under
clause (i), the recomputed amount or schedule shall be the
definitive amount or schedule for that fiscal year for
purposes of this subsection.''; and
(8) by adding at the end the following:
``(9) In this subsection, the term `Postal Service
actuarial liability' means the difference between--
``(A) the net present value of future payments required to
be paid from the Postal Service Retiree Health Benefits Fund
under section 8906(g)(2)(A)(ii)(I) 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.
``(10) For purposes of computing an amount under paragraph
(1) or (9)(A), section 8906(g)(2)(A)(ii)(I) shall be applied
as though `up to the amount contained in the Fund' were
struck.''.
(c) Cancellation of Certain Unpaid Obligations of the
Postal Service.--Any obligation of the Postal Service under
section 8909a(d)(3)(A) 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.
(d) One-time Transfer to Medicare Funds.--
(1) Definitions.--In this subsection--
(A) the term ``applicable fiscal year'' means the first
fiscal year beginning on or after October 1, 2021, in which
the amount computed under paragraph (3)(B) of section
[[Page S5284]]
8909a(d) of title 5, United States Code (as amended by
subsection (b)) is a surplus; and
(B) the term ``Medicare fund'' means--
(i) the Federal Hospital Insurance Trust Fund under section
1817 of the Social Security Act (42 U.S.C. 1395i);
(ii) the Federal Supplementary Medical Insurance Trust Fund
under section 1841 of such Act (42 U.S.C. 1395t); and
(iii) the Medicare Prescription Drug Account under section
1860D-16 of such Act (42 U.S.C. 1395w-116).
(2) Transfer required.--Not later than 30 days after the
date on which the schedule under paragraph (3)(A) of section
8909a(d) of title 5, United States Code (as amended by
subsection (b)) in the applicable fiscal year is certified by
the Commission or recomputed by the Office of Personnel
Management, as applicable under paragraph (6) of such section
8909a(d)--
(A) the Secretary of Health and Human Services shall--
(i) estimate the amount of the increased expenditures
required from the Medicare funds, including the amount
required from each such fund, by reason of the requirements
under section 8903c(e) of title 5, United States Code (as
added by section 921(a)(1) of this title) for the 10-year
period beginning on the date of enactment of this Act; and
(ii) notify the Secretary of the Treasury and the Postal
Service of the amount estimated under clause (i); and
(B) the Secretary of the Treasury shall transfer from the
Postal Service Retiree Health Benefits Fund to the Medicare
funds an amount equal to the amount estimated by the
Secretary of Health and Human Services under subparagraph
(A)(i), in accordance with paragraph (3) of this subsection.
(3) Distribution.--An amount transferred under subparagraph
(B) of paragraph (2) shall be divided among the Medicare
funds in proportion to the increased expenditures required
from each such fund, as estimated by the Secretary of Health
and Human Services under subparagraph (A)(i) of that
paragraph.
(e) Technical and Conforming Amendment.--The heading of
section 8909a of title 5, United States Code, is amended by
striking ``Benefit'' and inserting ``Benefits''.
(f) Sense of Congress.--It is the sense of Congress that
nothing in this section or the amendments made by this
section is intended to establish a precedent with respect to
Federal employees at large, given that the Postal Service is
a unique entity within the Federal Government and benefits
for employees of the Postal Service are only partially
integrated with benefits for Federal employees at large.
SEC. 923. MEDICARE PART B PREMIUM SUBSIDY FOR NEWLY ENROLLING
POSTAL SERVICE ANNUITANTS AND FAMILY MEMBERS.
(a) Definitions.--In this section--
(1) the term ``eligible individual'' means a Postal Service
annuitant, or a family member of a Postal Service annuitant,
who--
(A) newly enrolls in Medicare part B during the open season
for the initial contract year pursuant to a deemed enrollment
under subsection (m) of section 1837 of the Social Security
Act (42 U.S.C. 1395p), as added by section 921 of this title;
and
(B) is not eligible for Medicare cost-sharing or any other
subsidies for Medicare part B premium payments;
(2) the term ``initial contract year'' has the meaning
given the term in section 8903c(a) of title 5, United States
Code, as added by section 921 of this title;
(3) the term ``Medicare cost-sharing'' means Medicare cost-
sharing described in section 1905(p)(3)(A)(ii) of the Social
Security Act (42 U.S.C. 1396d(p)(3)(A)(ii)) under a State
plan under title XIX of that Act (42 U.S.C. 1396 et seq.);
(4) 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
(5) the term ``Postal Service annuitant'' has the meaning
given the term in section 8903c(a) of title 5, United States
Code, as added by section 921 of this title.
(b) Subsidies.--With respect to the monthly Medicare part B
premium payments of eligible individuals (taking into account
any adjustments, including those under subsections (b) and
(i) of section 1839 of the Social Security Act (42 U.S.C.
1395r)), the Postal Service--
(1) in the initial contract year, shall subsidize 75
percent of the Medicare part B premium payments;
(2) in the first year after the initial contract year,
shall subsidize 50 percent of the Medicare part B premium
payments; and
(3) in the second year after the initial contract year,
shall subsidize 25 percent of the Medicare part B premium
payments.
(c) Fund.--The Postal Service shall establish a fund to
provide the subsidies required under subsection (b).
SEC. 924. POSTAL SERVICE PENSION FUNDING REFORM.
(a) Civil Service Retirement System.--Section 8348(h) of
title 5, United States Code, is amended--
(1) in paragraph (2), by striking subparagraphs (B) and (C)
and inserting the following:
``(B) The Office shall redetermine the Postal surplus or
supplemental liability as of the close of the fiscal year,
for each fiscal year beginning after September 30, 2016.
Subject to subparagraph (C), beginning June 15, 2019, if the
result is a surplus or a supplemental liability, the Office
shall establish an amortization schedule, including a series
of annual installments commencing on September 30 of the
subsequent fiscal year, which provides for the liquidation of
the surplus or liability to the Postal Service or the Fund
(as the case may be) by September 30, 2044.
``(C) Not later than June 30, 2034, the Office shall
determine, and thereafter shall redetermine as necessary, but
not more frequently than once per year, the appropriate date
by which to complete the liquidation of any remaining surplus
or liability determined under this paragraph. The appropriate
date shall be determined in accordance with generally
accepted actuarial practices and principles and shall not be
later than 15 years after the date on which the determination
is made.''; and
(2) by adding at the end the following:
``(4) For the purpose of carrying out paragraph (1), for
fiscal year 2018 and each fiscal year thereafter, the Office
shall use--
``(A) demographic factors specific to current and former
employees of the United States Postal Service, unless such
data cannot be generated; and
``(B) economic assumptions regarding wage and salary growth
that reflect the specific past, and likely future, pay for
current employees of the United States Postal Service.''.
(b) Federal Employees Retirement System Liability
Assumption Reform.--Section 8423 of title 5, United States
Code, is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) in subparagraph (A)--
(I) in clause (i), by striking ``subparagraph (B)),'' and
inserting ``subparagraph (B) or (C)),''; and
(II) in clause (ii), by striking ``and'' at the end;
(ii) in subparagraph (B)(ii), by striking the period at the
end and inserting ``; and''; and
(iii) by adding at the end the following:
``(C) the product of--
``(i) the normal-cost percentage, as determined for
employees (other than employees covered by subparagraph (B))
of the United States Postal Service under paragraph (5),
multiplied by
``(ii) the aggregate amount of basic pay payable by the
United States Postal Service, for the period involved, to
employees of the United States Postal Service.''; and
(B) by adding at the end the following:
``(5)(A) In determining the normal-cost percentage for
employees of the United States Postal Service for purposes of
paragraph (1)(C), the Office shall use--
``(i) demographic factors specific to such employees,
unless such data cannot be generated; and
``(ii) economic assumptions regarding wage and salary
growth that reflect the specific past, and likely future, pay
for such employees.
``(B) The United States Postal Service shall provide any
data or projections the Office requires in order to determine
the normal-cost percentage for employees of the United States
Postal Service, consistent with subparagraph (A).
``(C) The Office shall review the determination of the
normal-cost percentage for employees of the United States
Postal Service and make such adjustments as the Office
considers necessary--
``(i) upon request of the United States Postal Service, but
not more frequently than once each fiscal year; and
``(ii) at such other times as the Office considers
appropriate.
``(6) For the purpose of carrying out subsection (b)(1)(B),
and consistent with paragraph (5), for fiscal year 2018, and
each fiscal year thereafter, the Office shall use--
``(A) demographic factors specific to current and former
employees of the United States Postal Service, unless such
data cannot be generated; and
``(B) economic assumptions regarding wage and salary growth
that reflect the specific past, and likely future, pay for
current employees of the United States Postal Service.''; and
(2) in subsection (b)--
(A) by redesignating paragraph (5) as paragraph (6); and
(B) by inserting after paragraph (4) the following:
``(5)(A) In this paragraph, the term `postal funding
surplus' means the amount by which the amount of the
supplemental liability computed under paragraph (1)(B) is
less than zero.
``(B) If the amount of supplemental liability computed
under paragraph (1)(B) as of the close of any fiscal year
after the date of enactment of the Postal Service Reform Act
of 2018 is less than zero, the Office shall establish an
amortization schedule, including a series of equal annual
installments that--
``(i) provide for the liquidation of the postal funding
surplus in 30 years, commencing on September 30 of the
subsequent fiscal year; and
``(ii) shall be transferred to the Postal Service Fund.''.
SEC. 925. SUPERVISORY AND OTHER MANAGERIAL ORGANIZATIONS.
Not later than 3 years after the date of enactment of this
Act, the Inspector General of the Postal Service shall submit
to Congress a report on compliance by the Postal Service with
outcomes of consultative discussions under section 1004(e) of
title 39, United States Code, held with postal management
organizations on changes in, or termination of, pay policies
and schedules and fringe benefit programs for members of the
postal
[[Page S5285]]
management organization, including changes in, or termination
of, policies governing pay-for-performance systems covering
supervisory and management employees.
SEC. 926. RIGHT OF APPEAL TO MERIT SYSTEMS PROTECTION BOARD.
Section 1005(a)(4)(A)(ii)(I) of title 39, United States
Code, is amended to read as follows:
``(I) is an employee of the Postal Service or the Office of
the Inspector General who is not represented by a bargaining
representative recognized under section 1203; and''.
Subtitle B--Postal Service Operations Reform
SEC. 941. GOVERNANCE REFORM.
(a) Board of Governors.--
(1) In general.--Section 202 of title 39, United States
Code, is amended to read as follows:
``Sec. 202. Board of Governors
``(a) In General.--There is established in the Postal
Service a Board of Governors composed of 5 Governors, a
Postmaster General, and a Deputy Postmaster General, all of
whom shall be appointed in accordance with this section. The
Governors shall have the power to--
``(1) exercise the powers of the Postal Service, consistent
with section 203(c);
``(2) appoint, fix the term of service of, and remove the
Postmaster General;
``(3) in consultation with the Postmaster General, appoint,
fix the term of service of, and remove the Deputy Postmaster
General;
``(4) set the strategic direction of postal operations and
approve the pricing and product strategy for the Postal
Service;
``(5) set the compensation of the Postmaster General and
the Deputy Postmaster General in accordance with private
sector best practices, as determined by the Governors
pursuant to section 3686; and
``(6) carry out any other duties specifically provided for
in this title.
``(b) Appointment; Pay.--
``(1) In general.--The Governors shall be appointed by the
President, by and with the advice and consent of the Senate,
not more than 3 of whom may be adherents of the same
political party. The Governors shall elect a Chair from among
their members. The Governors shall represent the public
interest generally, and shall be chosen solely on the basis
of their experience in the field of public administration,
law, or accounting, or on their demonstrated ability in
managing organizations or corporations (in either the public
or private sector) of substantial size, except that at least
3 of the Governors shall be chosen solely on the basis of
their demonstrated ability in managing organizations or
corporations (in either the public or private sector) that
employ at least 10,000 employees. The Governors shall not be
representatives of specific interests using the Postal
Service, and may be removed only for cause.
``(2) Compensation.--Each Governor shall receive a salary
of $30,000 a year plus $300 a day for not more than 42 days
of meetings each year and shall be reimbursed for travel and
reasonable expenses incurred in attending meetings of the
Board. Nothing in the preceding sentence shall be construed
to limit the number of days of meetings each year to 42 days.
``(3) Consultation.--In selecting the individuals described
in paragraph (1) for nomination for appointment to the
position of Governor, the President should consult with the
Speaker of the House of Representatives, the minority leader
of the House of Representatives, the majority leader of the
Senate, and the minority leader of the Senate.
``(c) Terms of Governors.--
``(1) In general.--The terms of the 5 Governors shall be 7
years, except that the terms of the 5 Governors first taking
office shall expire as designated by the President at the
time of appointment, 1 at the end of 1 year, 1 at the end of
2 years, 1 at the end of 3 years, 1 at the end of 4 years,
and 1 at the end of 5 years, following the appointment of the
first of them. Any Governor appointed to fill a vacancy
before the expiration of the term for which the Governor's
predecessor was appointed shall serve for the remainder of
such term. A Governor may continue to serve after the
expiration of the Governor's term until such Governor's
successor has qualified, but not to exceed one year.
``(2) Limitation.--No individual may serve more than 2
terms as a Governor.
``(d) Staff.--The Chair of the Board of Governors shall
ensure that the Board has appropriate independent staff to
carry out the roles and responsibilities of the Board and the
Governors.''.
(2) Application.--Any individual serving as a Governor on
the Board of Governors of the Postal Service on the date of
enactment of this Act shall continue to serve as a Governor
until the term applicable to such individual expires (as
determined under section 202(b) of title 39, United States
Code, as in effect before the amendments made by this section
take effect pursuant to subsection (g)).
(b) Postmaster General.--
(1) In general.--Section 203 of title 39, United States
Code, is amended to read as follows:
``Sec. 203. Postmaster General
``(a) In General.--The chief executive officer of the
Postal Service is the Postmaster General, appointed pursuant
to section 202(a)(2). The alternate chief executive officer
of the Postal Service is the Deputy Postmaster General,
appointed pursuant to section 202(a)(3).
``(b) Powers.--Consistent with the requirements of this
title, the exercise of the power of the Postal Service shall
be vested in the Governors and carried out by the Postmaster
General in a manner consistent with the strategic direction
and pricing and product strategy approved by the Governors.
The Postmaster General shall, in accordance with bylaws
determined appropriate by the Board, consult with the
Governors and the Deputy Postmaster General in carrying out
such power.''.
(2) Conforming amendment.--The item relating to section 203
in the table of sections for chapter 2 of title 39, United
States Code, is amended to read as follows:
``203. Postmaster General.''.
(c) Procedures of the Board.--Section 205 of title 39,
United States Code, is amended to read as follows:
``Sec. 205. Procedures of the Board of Governors and the
Governors
``(a) Vacancies.--Vacancies in the Board shall not impair
the powers of the Board or the Governors under this title.
``(b) Vote.--The Board and the Governors shall act upon
majority vote of those members who are present, subject to
such quorum requirements as the Board and the Governors may
respectively establish.
``(c) Limitation.--No officer or employee of the United
States may serve concurrently as a Governor. A Governor may
hold any other office or employment not inconsistent or in
conflict with the Governor's duties, responsibilities, and
powers as an officer of the Government of the United States
in the Postal Service.''.
(d) Delegation of Authority.--Section 402 of title 39,
United States Code, is amended to read as follows:
``Sec. 402. Delegation of authority
``(a) Postmaster General.--The Postmaster General may
delegate his or her authority under such terms, conditions,
and limitations, including the power of redelegation, as he
or she determines desirable. The Postmaster General may
establish such committees of officers and employees of the
Postal Service, and delegate such powers to any committee, as
the Postmaster General determines appropriate to carry out
his or her functions and duties. Delegations under this
section shall be consistent with other provisions of this
title, shall not relieve the Postmaster General of full
responsibility for the carrying out the Postmaster General's
duties and functions, and shall be revocable by the
Postmaster General.
``(b) Board of Governors.--The Board may establish such
committees of the Board, and delegate such powers to any
committee, as the Board determines appropriate to carry out
its functions and duties. Delegations to committees shall be
consistent with other provisions of this title, shall not
relieve the Board of full responsibility for the carrying out
of its duties and functions, and shall be revocable by the
Board in its exclusive judgment.''.
(e) International Postal Arrangements.--
(1) In general.--Section 407 of title 39, United States
Code, is amended by adding at the end the following:
``(f) After submission to the Postal Regulatory Commission
by the Department of State of the budget detailing the
estimated costs of carrying out the activities under this
section, and the Commission's review and approval of such
submission, the Postal Service shall transfer to the
Department of State, from any funds available to the Postal
Service, such sums as may be reasonable, documented, and
auditable for the Department of State to carry out such
activities.''.
(2) Application.--The amendment made by paragraph (1) shall
take effect on October 1 of the first fiscal year beginning
after the date of enactment of this Act.
(3) Conforming amendment.--Section 633 of title VI of the
Treasury and General Government Appropriations Act, 1999
(Public Law 105-277; 39 U.S.C. 407 note) is amended by
striking subsection (d).
(f) Technical and Conforming Amendments.--Title 39, United
States Code, is amended--
(1) in section 102(3)--
(A) by striking ``9 members'' and inserting ``5 members'';
and
(B) by striking ``section 202(a)'' and inserting ``section
202(b)(1)'';
(2) in section 204--
(A) by striking ``the Board'' and inserting ``the
Postmaster General''; and
(B) by striking ``the Governors and'';
(3) in section 207, by striking ``the Board'' and inserting
``the Postal Service'';
(4) in section 414(b)(2), by striking ``the Governors''
each place the term appears and inserting ``the Postal
Service'';
(5) in section 416(c)--
(A) by striking ``the Governors'' and inserting ``the
Postal Service''; and
(B) by striking ``they'' and inserting ``the Postal
Service'';
(6) in section 1011, by striking ``the Board'' and
inserting ``the Postal Service'';
(7) by striking section 2402 and inserting the following:
``Sec. 2402. Annual report
``The Postmaster General shall render an annual report
concerning the operations of the Postal Service under this
title to the President and Congress.'';
(8) in section 3632--
[[Page S5286]]
(A) by striking the section heading, and inserting
``Establishment of rates and classes of competitive
products'';
(B) by striking subsection (a) and redesignating
subsections (b) and (c) as subsections (a) and (b),
respectively;
(C) in paragraph (a)(2) (as redesignated by subparagraph
(B)), by striking ``and the record of the Governors'
proceedings in connection with such decision'';
(D) in paragraph (a)(3) (as redesignated by subparagraph
(B))--
(i) by striking ``and the record of the proceedings in
connection with such decision''; and
(ii) by striking ``the Governors consider'' and inserting
``the Postal Service considers''; and
(E) by striking ``the Governors'' each place the term
appears and inserting ``the Postal Service''; and
(9) in the table of sections for chapter 36, by striking
the item relating to section 3632 and inserting the
following:
``3632. Establishment of rates and classes of competitive products.''.
(g) Delayed Effective Date.--The amendments made by this
section shall take effect on the date that is 30 days after
the date of enactment of this Act.
SEC. 942. MODERNIZING POSTAL RATES.
(a) Adequacy, Efficiency, and Fairness of Postal Rates.--
(1) Objectives.--Section 3622(b) of title 39, United States
Code, is amended--
(A) in paragraph (2), by inserting ``and ensure'' after
``create'';
(B) in paragraph (3)--
(i) by inserting ``and meet'' after ``maintain''; and
(ii) by inserting ``, with a focus on achieving predictable
and consistent delivery'' before the period at the end;
(C) in paragraph (5), by inserting ``establish and'' before
``maintain'';
(D) in paragraph (6), by striking ``process'' and inserting
``and cost attribution processes''; and
(E) in paragraph (9), by inserting ``(and to ensure
appropriate levels of transparency)'' before the period at
the end.
(2) Factors.--Section 3622(c) of title 39, United States
Code, is amended to read as follows:
``(c) Factors.--In establishing or revising such system,
the Postal Regulatory Commission shall take into account the
following factors:
``(1) The effect of rate increases upon the general public
and business mail users.
``(2) The available alternative means of sending and
receiving written communications, information, and letters
and other mail matter at reasonable costs.
``(3) The reliability of delivery timelines and the extent
to which the Postal Service is meeting its service standard
obligations.
``(4) The need to ensure that the Postal Service has
adequate revenues and has taken appropriate cost-cutting
measures to maintain financial stability and meet all legal
obligations.
``(5) The extent to which the Postal Service has taken
actions to increase its efficiency and reduce its costs.
``(6) The value of the mail service actually provided by
each class or type of mail service to both the sender and the
recipient, including the collection, mode of transportation,
and priority of delivery.
``(7) The requirement that each class of mail or type of
mail service bear the direct and indirect postal costs
attributable to each class or type of mail service through
reliably identified causal relationships plus that portion of
all other costs of the Postal Service reasonably assignable
to such class or type.
``(8) The degree of preparation of mail for delivery into
the postal system performed by the mailer and its effect upon
improving efficiency and reducing costs to the Postal
Service.
``(9) Simplicity of structure for the entire schedule and
simple, identifiable relationships between the rates or fees
charged the various classes of mail for postal services.
``(10) The importance of pricing flexibility to encourage
increased mail volume and operational efficiency.
``(11) The relative value to postal users of the kinds of
mail matter entered into the postal system and the
desirability and justification for special classifications
and services of mail.
``(12) The importance of providing classifications with
extremely high degrees of reliability and speed of delivery
and of providing those that do not require high degrees of
reliability and speed of delivery.
``(13) The desirability of special classifications for both
postal users and the Postal Service in accordance with the
policies of this title, including agreements between the
Postal Service and postal users, when available on public and
reasonable terms to similarly situated mailers, that--
``(A) improve the net financial position of the Postal
Service by reducing Postal Service costs or increasing the
overall contribution to the institutional costs of the Postal
Service; and
``(B) do not cause--
``(i) unfair competitive advantage for the Postal Service
or postal users eligible for the agreements; or
``(ii) unreasonable disruption to the volume or revenues of
other postal users.
``(14) The educational, cultural, scientific, and
informational value to the recipient of mail matter.
``(15) The need for the Postal Service to increase its
efficiency and reduce its costs, including infrastructure
costs, to help maintain high quality, affordable postal
services.
``(16) The value to the Postal Service and postal users of
promoting intelligent mail and of secure, sender-identified
mail.
``(17) The importance of stability and predictability of
rates to ratepayers.
``(18) The policies of this title as well as such other
factors as the Commission determines appropriate.''.
(3) Requirements.--Section 3622(d) of title 39, United
States Code, is amended--
(A) in paragraph (1)--
(i) by redesignating subparagraphs (B) through (E) as
subparagraphs (C) through (F), respectively;
(ii) in subparagraph (F) (as redesignated by clause (i)) by
striking ``subparagraphs (A) and (C)'' and inserting
``subparagraphs (A) and (D)''; and
(iii) by inserting after subparagraph (A) the following:
``(B) subject to paragraph (4), establish postal rates for
each group of functionally equivalent agreements between the
Postal Service and users of the mail that--
``(i) cover attributable cost;
``(ii) improve the net financial position of the Postal
Service; and
``(iii) do not cause unreasonable disruption in the
marketplace, consistent with subsection (c)(13)(B);''; and
(B) by adding at the end the following:
``(4) Group of functionally equivalent agreements
defined.--For purposes of paragraph (1)(B), a group of
functionally equivalent agreements shall consist of all
service agreements that are functionally equivalent to each
other within the same market-dominant product, but shall not
include agreements within an experimental product.''.
(4) Technical and conforming amendments.--Section 3622 of
title 39, United States Code, is amended--
(A) in subsection (a), by striking ``, within 18 months
after the date of enactment of this section,''; and
(B) in subsection (d)(1)(D) (as redesignated by paragraph
(3)(A)), by striking ``(c)(10)'' and inserting ``(c)(13)''.
(b) Use of Negotiated Service Agreements.--
(1) Streamlined review of qualifying service agreements for
competitive products.--Section 3633 of title 39, United
States Code, is amended by adding at the end the following:
``(c) Streamlined Review.--Not later than 90 days after the
date of enactment of this subsection, after notice and
opportunity for comment, the Postal Regulatory Commission
shall promulgate (and may from time to time thereafter
revise) regulations for streamlined after-the-fact review of
newly proposed agreements between the Postal Service and
users of the mail that provide rates not of general
applicability for competitive products. Streamlined review
shall apply only if agreements are functionally equivalent to
existing agreements that have collectively covered
attributable costs and collectively improved the net
financial position of the Postal Service. The regulations
issued under this subsection shall provide that streamlined
review shall be concluded not later than 5 business days
after the date on which the agreement is filed with the
Commission and shall be limited to approval or disapproval of
the agreement as a whole based on the Commission's
determination of its functional equivalence. Agreements not
approved may be resubmitted without prejudice under section
3632.''.
(2) Submission of service agreements for streamlined
review.--Section 3632(b) of title 39, United States Code, is
amended--
(A) by redesignating paragraph (4) as paragraph (5); and
(B) by inserting after paragraph (3) the following:
``(4) Rates for streamlined review.--In the case of rates
not of general applicability for competitive products that
the Postal Service considers eligible for streamlined review
under section 3633(c), the Postal Service shall cause the
agreement to be filed with the Postal Regulatory Commission
by a date that is on or before the effective date of any new
rate established under the agreement, as the Postal Service
considers appropriate.''.
(3) Transparency and accountability for service
agreements.--
(A) Certain information required to be included in
determinations of compliance.--Section 3653 of title 39,
United States Code, is amended--
(i) by redesignating subsections (c), (d), and (e) as
subsections (d), (e), and (f), respectively; and
(ii) by inserting after subsection (b) the following:
``(c) Written Determination.--Each annual written
determination of the Commission under this section shall
include the following:
``(1) Requirements.--For each group of functionally
equivalent agreements between the Postal Service and users of
the mail, whether such group fulfilled requirements to--
``(A) cover costs attributable; and
``(B) improve the net financial position of the Postal
Service.
``(2) Noncompliance.--Any group of functionally equivalent
agreements not meeting the requirements under subparagraphs
(A) and (B) of paragraph (1) shall be determined to be in
noncompliance under this subsection.
[[Page S5287]]
``(3) Definition.--For purposes of this subsection, a group
of functionally equivalent agreements shall consist of 1 or
more service agreements that are functionally equivalent to
each other within the same market-dominant or competitive
product, but shall not include agreements within an
experimental product.''.
(B) Technical amendment.--Section 3653(d) of title 39,
United States Code (as redesignated by subparagraph (A)), is
amended by striking ``subsections (c) and (e)'' and inserting
``subsections (c) and (d)''.
SEC. 943. NONPOSTAL SERVICES.
(a) Nonpostal Services.--
(1) In general.--Part IV of title 39, United States Code,
is amended by inserting 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. Postal Service revenues and expenses under
this chapter shall be funded through the Postal Service Fund.
``Sec. 3702. Definitions
``In this chapter--
``(1) the term `attributable costs' has the meaning given
the term `costs attributable' in section 3631;
``(2) the term `nonpostal service' means a service offered
by the Postal Service that--
``(A) is expressly authorized under this chapter; and
``(B) is not a postal product or service; and
``(3) the term `year' means a fiscal year.
``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
and services on behalf of such agencies for non-commercial
products and services (referred to in this section as the
`program'), but only if such property and services--
``(1) provide enhanced value to the public, such as by
lowering the cost or raising the quality of such services or
by making such services more accessible;
``(2) do not interfere with or detract from the value of
postal services, including--
``(A) the cost and efficiency of postal services; and
``(B) unreasonably restricting access to postal retail
service, such as customer waiting time and access to parking;
and
``(3) provide a reasonable contribution to the
institutional costs of the Postal Service, defined as
reimbursement that covers at least 100 percent of
attributable costs of all property and services provided
under each relevant agreement in each year.
``(b) Public Notice.--At least 90 days before 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 service
to be provided, the enhanced value to the public, terms of
reimbursement, the estimated annual reimbursement to the
Postal Service, and the estimated percentage of attributable
Postal Service costs that will be covered by reimbursement
(with documentation to support the estimates).
``(c) Public Comment.--Before offering a service under the
program, the Postal Service shall provide for a public
comment period of at least 30 days that allows the public to
post comments relating to the provision of such services on
the Postal Service website. The Postal Service shall make
reasonable efforts to provide written responses to the
comments on such website at least 30 days before offering
such services.
``(d) Approval Required.--The Postal Service may not
establish the program unless a majority of the Governors in
office vote to approve the program by a recorded vote that is
publicly disclosed on the Postal Service website.
``(e) Application of Reporting Requirements.--For purposes
of the reporting requirements under section 3705, the Postal
Service shall submit a separate report for each agreement
with an agency entered into under subsection (a) of this
section analyzing the costs, revenues, rates, and quality of
service for the provision of all services under such
agreement, including information demonstrating that the
agreement satisfies the requirements of paragraphs (1)
through (3) of such subsection (a).
``(f) Regulations Required.--The Postal Regulatory
Commission shall issue such regulations as are necessary to
carry out this section.
``(g) Definitions.--For the purpose of this section--
``(1) 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;
``(2) 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;
``(3) 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
``(4) 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.
``(h) Confidential Information.--Subsection (b) or (c)
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
``(a) In General.--The Postal Service may establish a
program to provide property and services to other Government
agencies within the meaning of section 411, but only if the
program provides a reasonable contribution to the
institutional costs of the Postal Service, defined as
reimbursement by each agency that covers at least 100 percent
of the attributable costs of all property and service
provided by the Postal Service in each year to such agency.
``(b) Application of Reporting Requirements.--For purposes
of the reporting requirements under section 3705, the Postal
Service shall submit a separate report for each agreement
with an agency entered into under subsection (a) of this
section analyzing the costs, revenues, rates, and quality of
service for the provision of all services under such
agreement, including information demonstrating that the
agreement satisfies the requirements of such subsection (a).
``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
for the provision of property and services 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 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 that
is 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
[[Page S5288]]
which the Commission gains access under this section shall be
subject to paragraphs (2) and (3) of section 504(g) in the
same manner 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 nonpostal activities
carried out 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 attributable costs 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 attributable costs specified by
this chapter are not met, the Commission shall, within 60
days after the determination, prescribe remedial action to
restore compliance as soon as practicable, 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.''.
(2) Technical and conforming amendment.--The table of
chapters for part IV of title 39, United States Code, is
amended by inserting 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--
(A) in paragraph (2), by inserting after ``subsection'' the
following: ``, or any nonpostal products or services
authorized by chapter 37''; and
(B) by adding at the end the following:
``(6) Licensing which, before the date of enactment of this
paragraph, has been authorized by the Postal Regulatory
Commission for continuation as a nonpostal service may not be
used for any purpose other than--
``(A) to continue to provide licensed mailing, shipping, or
stationery supplies offered as of June 23, 2011; or
``(B) to license other goods, products, or services, the
primary purpose of which is to promote and enhance the image
or brand of the Postal Service.
``(7) Nothing in this section shall be construed to prevent
the Postal Service from establishing nonpostal products and
services that are expressly authorized by chapter 37.''.
(2) Section 411.--The last sentence of section 411 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 such chapter.
SEC. 944. SHIPPING OF WINE, BEER, AND DISTILLED SPIRITS.
(a) Mailability.--
(1) Nonmailable articles.--Section 1716(f) of title 18,
United States Code, is amended by striking ``mails'' and
inserting ``mails, except to the extent that the mailing is
allowable under section 3001(p) of title 39''.
(2) Application of laws.--Section 1161 of title 18, United
States Code, is amended by inserting ``, and, with respect to
the mailing of distilled spirits, wine, or malt beverages (as
those terms are defined in section 117 of the Federal Alcohol
Administration Act (27 U.S.C. 211)), is in conformity with
section 3001(p) of title 39'' after ``Register''.
(b) Regulations.--Section 3001 of title 39, United States
Code, is amended by adding at the end the following:
``(p)(1) In this subsection, the terms `distilled spirits',
`wine', and `malt beverage' have the same meanings as in
section 117 of the Federal Alcohol Administration Act (27
U.S.C. 211).
``(2) Distilled spirits, wine, or malt beverages shall be
considered mailable if mailed--
``(A) in accordance with the laws and regulations of--
``(i) the State, territory, or district of the United
States where the sender or duly authorized agent initiates
the mailing; and
``(ii) the State, territory, or district of the United
States where the addressee or duly authorized agent takes
delivery; and
``(B) to an addressee who is at least 21 years of age--
``(i) who provides a signature and presents a valid,
government-issued photo identification upon delivery; or
``(ii) the duly authorized agent of whom--
``(I) is at least 21 years of age; and
``(II) provides a signature and presents a valid,
government-issued photo identification upon delivery.
``(3) The Postal Service shall prescribe such regulations
as may be necessary to carry out this subsection.''.
(c) Effective Date.--The amendments made by this section
shall take effect on the earlier of--
(1) the date on which the Postal Service issues regulations
under section 3001(p) of title 39, United States Code, as
amended by this section; and
(2) the date that is 120 days after the date of enactment
of this Act.
(d) No Preemption of State, Local, or Tribal Laws
Prohibiting Deliveries, Shipments, or Sales.--Nothing in this
section, the amendments made by this section, or any
regulation promulgated under this section or the amendments
made by this section shall be construed to preempt,
supersede, or otherwise limit or restrict any State, local,
or tribal law that prohibits or regulates the delivery,
shipment, or sale of distilled spirits, wine, or malt
beverages (as those terms are defined in section 117 of the
Federal Alcohol Administration Act (27 U.S.C. 211)).
SEC. 945. EFFICIENT AND FLEXIBLE UNIVERSAL POSTAL SERVICE.
(a) Conditions Regarding Determinations for Post Office
Closings.--Clause (i) of section 404(d)(2)(A) of title 39,
United States Code, is amended to read as follows:
``(i) the effect of such closing or consolidation on the
community served by such post office, including through an
analysis of--
``(I) the distance (as measured by public roads) to the
closest postal retail facility not proposed for closing or
consolidation under the determination;
``(II) the characteristics of such location, including
weather and terrain;
``(III) whether commercial mobile service (as defined in
section 332 of the Communications Act of 1934) and commercial
mobile data service (as defined in section 6001 of the Middle
Class Tax Relief and Job Creation Act of 2012) are available
in at least 80 percent of the total geographic area of the
ZIP codes served by the postal retail facility proposed for
closing or consolidation; and
``(IV) whether fixed broadband Internet access service is
available to households in at least 80 percent of such
geographic area at speeds not less than those sufficient for
service to be considered broadband for purposes of the most
recent report of the Federal Communications Commission under
section 706 of the Telecommunications Act of 1996 (47 U.S.C.
1302);''.
(b) PRC Review of Determinations to Close or Consolidate a
Post Office.--
(1) Deadline for review.--Section 404(d)(5) title 39,
United States Code, is amended by striking ``120 days'' and
inserting ``60 days, or a longer period for good cause shown
but in no event longer than 120 days,''.
(2) Applicability.--The amendment made by paragraph (1)
shall not apply with respect to an appeal received by the
Commission before the date of enactment of this Act (as
determined by applying the rules set forth in section
404(d)(6) of such title).
(c) Expedited Procedures.--
(1) In general.--Section 3661 of title 39, United States
Code, is amended by adding at the end the following:
``(d)(1) The Commission shall issue its opinion within 90
days, or a longer period for good cause shown but in no event
longer than 120 days, after the receipt of any proposal (as
referred to in subsection (b)) concerning an identical or
substantially identical proposal on which the Commission has
issued an opinion within the preceding 5 years.
``(2) If necessary in order to comply with the 90-day
requirement under paragraph (1), the Commission may apply
expedited procedures which the Commission shall by regulation
prescribe.''.
(2) Regulations.--The Commission shall prescribe any
regulations necessary to carry out the amendment made by
paragraph (1) within 90 days after the date of enactment of
this Act.
(3) Applicability.--The amendment made by this subsection
shall apply with respect to any proposal received by the
Commission on or after the earlier of--
(A) the date that is 90 days after the date of enactment of
this Act; or
(B) the effective date of the regulations prescribed under
paragraph (2).
(d) Alternate Postal Access Choice.--Section 404(d) of
title 39, United States Code, is amended by striking
paragraph (1) and inserting the following:
[[Page S5289]]
``(1) Prior to making a determination under subsection
(a)(3) as to the necessity for the closing or consolidation
of a post office--
``(A) the Postal Service shall provide adequate notice of
its intention to close or consolidate the post office not
later than 60 days before the proposed date of the closing or
consolidation to postal patrons served by the post office;
``(B) the Postal Service shall conduct a nonbinding survey
on the proposed closing or consolidation to allow postal
patrons served by the post office an opportunity to indicate
their preference between or among--
``(i) the closing or consolidation; and
``(ii) 1 or more alternative options; and
``(C) if the Postal Service determines that closing or
consolidating the post office is necessary--
``(i) the Postal Service shall endeavor to provide
alternative access to postal services to the postal patrons
served by the post office by the option chosen by the highest
number of survey respondents under subparagraph (B)(ii); and
``(ii) if the Postal Service is unable to provide
alternative access through the option identified under clause
(i), or if that option is cost prohibitive--
``(I) the Postal Service may provide alternative access
through a different method; and
``(II) upon selecting an alternative access method other
than the option identified under clause (i), the Postal
Service shall provide written notice to the postal patrons
served by the post office identifying the alternative access
method and explaining why the option identified under clause
(i) was not possible or was cost prohibitive.''.
(e) Applicability of Procedures Relating to Closings and
Consolidations.--
(1) In general.--Section 404(d) of title 39, United States
Code, as amended by this section, is amended by adding at the
end the following:
``(7) For purposes of this subsection, the term `post
office' means a post office and any other postal retail
facility, as defined in section 903 of the Postal Service
Reform Act of 2018.''.
(2) Effective date.--In the case of any post office, as
defined in subsection (d) of section 404 of title 39, United
States Code, as amended by paragraph (1), that, but for that
amendment, would not otherwise be subject to such subsection
(d), the amendments made by subsections (a) and (d) of this
section shall be effective with respect to any closure or
consolidation, the proposed effective date of which occurs on
or after the date that is 60 days after the date of enactment
of this Act.
(f) Enhanced Reporting on Postal Service Efficiency.--
Section 3652(a) of title 39, United States Code, is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by inserting after paragraph (2) the following:
``(3) which shall provide the overall change in Postal
Service productivity and the resulting effect of such change
on overall Postal Service costs during such year, using such
methodologies as the Commission shall by regulation
prescribe, if necessary.''.
(g) POSTPlan Study.--
(1) In general.--Beginning not later than 30 days after the
date of enactment of this Act, the Inspector General of the
Postal Service shall conduct a 1-year review of the impacts
of the POSTPlan post office restructuring plan on Postal
Service expenses, revenue, and retail service provision.
(2) Content.--In conducting the review under paragraph (1),
the Inspector General shall examine--
(A) changes in the costs for the provision of Postal
Service operated retail service, both nationwide and in the
aggregate for each of the Level 2, Level 4, Level 6, and
Level 18 post offices for which the hours, functions, or
responsibilities changed as a result of the POSTPlan
initiative before and after the implementation of the
POSTPlan initiative;
(B) changes in revenue received by Postal Service operated
retail service, both nationwide and in the aggregate for each
of the Level 2, Level 4, Level 6, and Level 18 post offices
for which the hours, functions, or responsibilities changed
as a result of the POSTPlan initiative before and after the
implementation of the POSTPlan initiative;
(C) a determination of the relative cost savings, taking
into account any changes in revenue earned, realized on an
annual basis for Level 2, Level 4, Level 6, and Level 18
offices each in the aggregate and any trends in such cost
savings;
(D) the relative impact on retail access to postal services
for individuals served by Level 2, Level 4, Level 6, and
Level 18 offices each in the aggregate; and
(E) any other factors the Inspector General determines
appropriate.
(3) Report and recommendations.--Upon completion of the
review required under paragraph (1), the Inspector General
shall submit to the Postal Service, 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 containing--
(A) the results of the review; and
(B) any recommendations resulting from such review.
(4) Postal service review.--Prior to any hour changes or
consolidation decisions related to POSTPlan initiative-
impacted post offices, the Postal Service shall--
(A) review the report and any recommendations submitted
pursuant to paragraph (3); and
(B) revise any planned efforts regarding the POSTPlan
initiative, as appropriate.
SEC. 946. FAIR STAMP-EVIDENCING COMPETITION.
Section 404a(a) of title 39, United States Code, is
amended--
(1) in paragraph (2), by striking ``or'' at the end;
(2) in paragraph (3), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(4) offer to the public any postage-evidencing product or
service that does not comply with any rule or regulation that
would be applicable to such product or service if the product
or service were offered by a private company.''.
SEC. 947. MARKET-DOMINANT RATES.
(a) Establishment of Rate Baseline.--Notwithstanding any
order of the Commission to the contrary--
(1) not earlier than the first Sunday after the date of
enactment of this Act, on a date selected by the Postmaster
General in the exercise of the Postmaster General's
unreviewable discretion, the Postal Service shall reinstate,
as nearly as is practicable, 50 percent of the rate surcharge
implemented under section 3622(d)(1)(F) (as redesignated by
this title) that was in effect on April 9, 2016; and
(2) the partially reinstated surcharge reinstated pursuant
to paragraph (1) shall be considered a part of the rate base
for purposes of determining the percentage changes in rates
when the Postal Service files a notice of rate adjustment.
(b) Subsequent Rate Increases.--The reinstatement described
under subsection (a)(1) may not affect the calculation of the
Postal Service's maximum rate adjustment authority under
subpart C of part 3010 of title 39, Code of Federal
Regulations (or any successor regulation), for purposes of
any rate increase that occurs following such reinstatement.
(c) Commission Review of System for Regulating Rates and
Classes for Market-dominant Products.--
(1) Definitions.--In this subsection--
(A) the term ``initial rate regulation review'' means the
proceeding conducted under the order of the Commission
entitled, ``Statutory Review of the System for Regulating
Market Dominant Rates and Classifications'' (81 Fed. Reg.
9507 (December 20, 2016)); and
(B) the term ``underwater product'' means a market-dominant
class, product, or type of mail service that does not bear
the direct and indirect costs attributable to that class,
product, or type of mail service under current costing
procedures.
(2) Underwater products study.--Not later than 120 days
after the date of enactment of this Act, the Commission,
without delaying completion of the initial rate regulation
review, shall begin a study, in conjunction with the
Inspector General of the Postal Service and including notice
and opportunity for public comment, to--
(A) determine whether and to what extent any market-
dominant classes, products, or types of mail service are
underwater products;
(B) quantify the impact of any operational decisions of the
Postal Service on the direct and indirect costs attributable
to any underwater products identified under subparagraph (A);
and
(C) determine whether any operational decisions of the
Postal Service have caused any direct or indirect costs to be
inappropriately attributed to any underwater product
identified under subparagraph (A).
(3) Additional considerations.--
(A) In general.--Except as provided in paragraph (4), the
Commission shall supplement and modify, as appropriate, the
record of proceedings in the initial rate regulation review,
taking into account the provisions of this title and the
amendments made by this title, before making a determination
to--
(i) modify the system for regulating rates and classes for
market-dominant products established under section 3622 of
title 39, United States Code; or
(ii) adopt an alternative system for regulating rates and
classes for market-dominant products.
(B) Minimum considerations.--In supplementing or modifying
the record under subparagraph (A)--
(i) the Commission shall, at a minimum, recalculate the
projected liabilities of the Postal Service by reason of the
requirements under section 8903c(e) of title 5, United States
Code (as added by section 921(a)(1) of this title) (requiring
Medicare-eligible postal annuitants enrolled in the Postal
Service Health Benefits Program to also enroll in Medicare);
and
(ii) if the Commission determines that other provisions of
this title or the amendments made by this title reduce
liabilities or increase revenues of the Postal Service, the
Commission shall incorporate those changes into the
calculations of the Commission.
(C) Consideration of underwater products study.--After
completing any supplementation and modification of the record
under subparagraph (A) of this paragraph and quantifying the
impact of operational decisions under paragraph (2)(B), the
Commission shall--
[[Page S5290]]
(i) take into account the impact quantified under paragraph
(2)(B) and modify, if appropriate, the record under
subparagraph (A) of this paragraph;
(ii) incorporate the findings of the study under paragraph
(2) into any subsequent adjustment to rates for underwater
products identified under subparagraph (A) of that paragraph;
and
(iii)(I) account for the cultural and informational value
that underwater products identified under paragraph (2)(A)
have to the mail; and
(II) recognize that--
(aa) the services provided by the Postal Service have
changed over time; and
(bb) the timely delivery of the underwater products
identified under paragraph (2)(A) impacts the overall value
of those products.
(4) Subsequent review required if initial review completed
before enactment.--If, on or before the date of enactment of
this Act, the Commission completes the initial rate
regulation review, the Commission--
(A) shall determine whether to--
(i) further modify the system for regulating rates and
classes for market-dominant products established under
section 3622 of title 39, United States Code; or
(ii) adopt an alternative system for regulating rates and
classes for market-dominant products; and
(B) in making the determination under subparagraph (A),
shall--
(i) take into account the provisions of this title and the
amendments made by this title;
(ii) comply with the requirements under clauses (i) and
(ii) of paragraph (3)(B); and
(iii) take into account, and incorporate into any
adjustment to rates for underwater products identified under
subparagraph (A) of paragraph (2), the impact quantified
under subparagraph (B) of that paragraph.
(5) Application of new rates to underwater products.--
(A) In general.--If the Commission modifies the system for
regulating rates and classes for market-dominant products
established under section 3622 of title 39, United States
Code, or adopts an alternative system for regulating rates
and classes for market-dominant products, the Commission--
(i) may not apply any new rates under the modified or
alternative system to underwater products until the
Commission has--
(I) completed the study under paragraph (2); and
(II) complied with subparagraph (C) of paragraph (3); and
(ii) in order to offer as many underwater products as
possible for as long as possible, shall establish a process
to gradually phase in the application of any new rates to
underwater products.
(B) Retroactive applicability.--If, before the date of
enactment of this Act, the Commission modifies the system for
regulating rates and classes for market-dominant products
established under section 3622 of title 39, United States
Code, or adopts an alternative system for regulating rates
and classes for market-dominant products, the Commission--
(i) shall, effective 90 days after the date of enactment of
this Act, apply the rates for underwater products that were
in effect on the day before the date on which the modified or
alternative system took effect; and
(ii) before applying the rates under the modified or
alternative system to underwater products, shall comply with
subparagraph (A).
(C) Rule of construction.--Nothing in this paragraph shall
be construed to affect the requirement under subsection (a)
relating to reinstatement of the rate surcharge that was in
effect on April 9, 2016, including with respect to underwater
products.
(d) Postal Regulatory Commission Authority Not Affected.--
Nothing in this section (other than subsection (c)) shall be
construed as affecting the authority of the Commission to, by
regulation, make such modification or adopt such alternative
system for regulating rates and classes for market-dominant
products as provided under section 3622 of title 39, United
States Code.
SEC. 948. REVIEW OF POSTAL SERVICE COST ATTRIBUTION
GUIDELINES.
Not later than April 1, 2020, the 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. 949. AVIATION SECURITY FOR PARCELS.
Not later than 18 months after the date of enactment of
this Act, the Inspector General of the Postal Service shall
transmit to the Committee on Oversight and Government Reform
of the House of Representatives and the Committee on Homeland
Security and Governmental Affairs of the Senate the results
of a review of the security measures in place for parcels
carried on air carriers to domestic and international
destinations for which audit trails are generated. The review
required under this subsection shall assess, at a minimum--
(1) the effectiveness of the audit trail created by postage
evidencing systems that have been validated under the Federal
Information Processing Standards in accurately and
consistently identifying the senders of parcels carried on
air carriers;
(2) the effectiveness of the Postal Service's in-person
identity verification procedures in accurately and
consistently identifying the senders of parcels carried on
air carriers; and
(3) the effectiveness of the audit trail generated by
customs declarations in accurately and consistently
identifying the senders of parcels carried on air carriers to
international destinations.
SEC. 950. LONG-TERM SOLVENCY PLAN; ANNUAL FINANCIAL PLAN AND
BUDGET.
(a) Definitions.--In this section--
(1) the term ``Board of Governors'' means the Board of
Governors of the Postal Service;
(2) the term ``long-term solvency plan'' means the plan
required to be submitted by the Postmaster General under
subsection (b)(1); and
(3) the 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 under, and comply with the policies of, title
39, United States Code, and other obligations of the Postal
Service.
(b) Plan for the Long-Term Solvency of the Postal
Service.--
(1) Solvency plan required.--
(A) In general.--Not later than the date described in
subparagraph (B), the Postmaster General shall submit to the
Board of Governors a plan describing the actions the Postal
Service intends to take to achieve long-term solvency.
(B) Date.--The date described in this subparagraph is the
later of--
(i) the date that is 90 days after the date of enactment of
this Act; and
(ii) the earliest date as of which the Board of Governors
has the number of members required for a quorum.
(2) Considerations.--The long-term solvency plan shall take
into account--
(A) the legal authority of the Postal Service;
(B) changes in the legal authority and responsibilities of
the Postal Service under this title and the amendments made
by this title;
(C) projected changes in mail volume;
(D) the impact of any regulations that the Postal Service
is required to promulgate under Federal law;
(E) projected changes in the number of employees needed to
carry out the responsibilities of the Postal Service;
(F) the long-term capital needs of the Postal Service,
including the need to maintain, repair, and replace
facilities and equipment; and
(G) the distinctions between market-dominant and
competitive products.
(3) Review and submission to congress and commission.--
(A) Review.--Upon receipt of the long-term solvency plan,
the Board of Governors shall review the long-term solvency
plan and may request that the Postmaster General make changes
to the long-term solvency plan.
(B) Submission to congress and commission.--Not later than
60 days after initial receipt of the long-term solvency plan,
the Board of Governors shall provide a copy of the long-term
solvency plan, together with a letter indicating whether and
in what respects the Board of Governors agrees or disagrees
with the measures set out in the long-term solvency plan,
to--
(i) the Committee on Homeland Security and Governmental
Affairs of the Senate;
(ii) the Committee on Oversight and Government Reform of
the House of Representatives; and
(iii) the Commission.
(4) Updates.--
(A) Annual updates required.--The Postmaster General shall
update and submit to the Board of Governors the long-term
solvency plan not less frequently than annually for 5 years
after the date of enactment of this Act.
(B) Review by board of governors.--The Board of Governors
shall review and submit to Congress and the Commission the
updates under this paragraph in accordance with paragraph
(3).
(c) Annual Financial Plan and Budget.--
(1) In general.--For each of the first 5 full fiscal years
after the date of enactment of this Act, not later than
August 1 of the preceding fiscal year, the Postmaster General
shall submit to the Board of Governors a financial plan and
budget for the fiscal year that is consistent with the goal
of achieving the long-term solvency of the Postal Service.
(2) Contents of financial plan and budget.--The financial
plan and budget for a fiscal year shall--
(A) promote the financial stability of the Postal Service
and provide for progress towards the long-term solvency of
the Postal Service;
(B) include the annual budget program of the Postal Service
under section 2009 of title 39, United States Code, and the
plan of the Postal Service commonly referred to as the
``Integrated Financial Plan'';
(C) describe lump-sum expenditures by all categories
traditionally used by the Postal Service;
(D) describe capital expenditures, together with a schedule
of projected capital commitments and cash outlays of the
Postal Service, and proposed sources of funding;
(E) contain estimates of overall debt (both outstanding and
expected to be incurred);
[[Page S5291]]
(F) contain cash flow and liquidity forecasts for the
Postal Service at such intervals as the Board of Governors
may require;
(G) include a statement describing methods of estimations
and significant assumptions;
(H) distinguish between market-dominant and competitive
products, as practicable; and
(I) address any other issues that the Board of Governors
considers appropriate.
(3) Process for submission and approval of financial plan
and budget.--
(A) Definition.--In this paragraph, the term ``covered
recipient'' means--
(i) the Postmaster General;
(ii) the President;
(iii) the Committee on Homeland Security and Governmental
Affairs of the Senate; and
(iv) the Committee on Oversight and Government Reform of
the House of Representatives.
(B) Review by the board of governors.--
(i) In general.--Upon receipt of a financial plan and
budget under paragraph (1), the Board of Governors shall
promptly review the financial plan and budget.
(ii) Additional information.--In conducting the review
under this subparagraph, the Board of Governors may request
any additional information it considers necessary and
appropriate to carry out the duties of the Board of
Governors.
(C) Approval of financial plan and budget submitted by the
postmaster general.--If the Board of Governors determines
that the financial plan and budget for a fiscal year received
under paragraph (1) meets the requirements under paragraph
(2) and otherwise adequately addresses the financial
situation of the Postal Service--
(i) the Board of Governors shall approve the financial plan
and budget and submit a notice of approval to each covered
recipient; and
(ii) the Postmaster General shall submit the annual budget
program for the relevant fiscal year to the Office of
Management and Budget in accordance with section 2009 of
title 39, United States Code.
(D) Disapproval of financial plan and budget submitted by
the postmaster general.--
(i) In general.--If the Board of Governors determines that
the financial plan and budget for a fiscal year under
paragraph (1) does not meet the requirements under paragraph
(2) or is otherwise inadequate in addressing the financial
situation of the Postal Service, the Board of Governors
shall--
(I) disapprove the financial plan and budget;
(II) submit to each covered recipient a statement that
describes the reasons for the disapproval;
(III) direct the Postmaster General to appropriately revise
the financial plan and budget for the Postal Service; and
(IV) submit the revised financial plan and budget to each
covered recipient.
(ii) Submission to office of management and budget.--Upon
receipt of a revised financial plan and budget under clause
(i)(IV), the Postmaster General shall submit the annual
budget program for the relevant fiscal year to the Office of
Management and Budget in accordance with section 2009 of
title 39, United States Code.
(E) Deadline for transmission of financial plan and budget
by board of governors.--Notwithstanding any other provision
of this paragraph, not later than September 30 of the fiscal
year that precedes each fiscal year for which a financial
plan and budget is required under paragraph (1), the Board of
Governors shall submit to each covered recipient--
(i) a notice of approval under subparagraph (C)(i); or
(ii) an approved financial plan and budget for the fiscal
year under subparagraph (D)(i)(IV).
(F) Revisions to financial plan and budget.--
(i) Permitting postmaster general to submit revisions.--The
Postmaster General may submit proposed revisions to the
financial plan and budget for a fiscal year to the Board of
Governors at any time during that fiscal year.
(ii) Process for review, approval, disapproval, and
postmaster general action.--The procedures described in
subparagraphs (B) through (E) shall apply with respect to a
proposed revision to a financial plan and budget in the same
manner as such procedures apply with respect to the original
financial plan and budget.
(d) Assumptions Based on Current Law.--In preparing the
long-term solvency plan or an annual financial plan and
budget required under this section, the Postal Service shall
base estimates of revenues and expenditures on Federal law as
in effect at the time of the preparation of the long-term
solvency plan or the financial plan and budget.
(e) Third-Party Analysis of Postal Service Finances.--The
Commission shall enter into a contract with 1 or more
independent third parties under which the third party or
parties, in not less than 2 years, shall--
(1) complete a study that analyzes--
(A) the finances of the Postal Service;
(B) the finances of, and business trends in, the overall
mailing industry;
(C) the demand for market-dominant and competitive products
and services in rural, urban, and suburban communities; and
(D) revenue changes and cost savings of the Postal Service
attributable to recent--
(i) closings and consolidations of processing plants, post
offices, and other facilities;
(ii) changes to service standards; and
(iii) service performance; and
(2) submit to the Commission a report on the study
conducted under paragraph (1) that includes recommendations
on affordable options and timetables for improving postal
operations and services, including--
(A) how rural service measurement can be made more accurate
to ensure that the Postal Service comprehensively measures
the mail service provided to each region of the United
States, regardless of population size and geographic
location;
(B) the feasibility of restoring overnight service
standards for market-dominant products similar to the service
standards that were in effect on July 1, 2012, including an
examination of the resources needed, structural and
operational changes needed, and market demand for such a
change; and
(C) recommended definitions for the terms ``rural'' and
``urban'' for purposes of measuring the performance of the
Postal Service relative to service standards under section
3691 of title 39, United States Code, as amended by section
950 of this title.
SEC. 951. SERVICE STANDARDS, PERFORMANCE TARGETS, AND
PERFORMANCE MEASUREMENTS.
(a) Service Standards, Performance Targets, and Performance
Measurements.--
(1) In general.--Section 3691 of title 39, United States
Code, is amended to read as follows:
``Sec. 3691. Modern service standards, performance targets,
and performance measurements
``(a) Definitions.--In this section--
``(1) the terms `Area' and `District' mean the
administrative field units established and given those
designations by the Postal Service;
``(2) the term `Commission' means the Postal Regulatory
Commission;
``(3) the term `performance targets' means the targets
established by the Postal Service under subsection (e)(1)(A);
``(4) the terms `rural' and `urban' have the meanings given
those terms under regulations promulgated by the Commission
under subsection (e)(2)(A); and
``(5) the term `service standards' means the service
standards established by the Postal Service under subsection
(b).
``(b) Authority Generally.--
``(1) Establishment; revision.--The Postal Service shall by
regulation establish (and may from time to time thereafter by
regulation revise) a set of service standards for market-
dominant products based on--
``(A) the finances of the Postal Service;
``(B) the ability of the Postal Service to meet the service
standards; and
``(C) the ability of Postal Service customers to receive
fair and reliable service.
``(2) Notice to congress.--On the date on which the Postal
Service requests an advisory opinion under section 3661 with
respect to any regulation promulgated or revised under
paragraph (1), the Postal Service shall notify Congress of
the request and the proposed regulation or revision of a
regulation.
``(c) Objectives.--The service standards shall be designed
to achieve the following objectives:
``(1) To ensure that the Postal Service meets the universal
service obligation, including the obligation to preserve
regular and effective access to postal services in all
communities, including those in rural areas or where post
offices are not self-sustaining.
``(2) To enhance the value of postal services to both
senders and recipients.
``(3) To assure Postal Service customers delivery
reliability, speed, and frequency consistent with reasonable
rates and best business practices.
``(4) To provide a system of objective performance
measurements for each market-dominant product as a basis for
measurement of Postal Service performance, in accordance with
subsection (e).
``(d) Factors.--In establishing or revising the service
standards, the Postal Service shall take into account--
``(1) the actual level of service that Postal Service
customers receive under any service guidelines previously
established by the Postal Service or service standards
established under this section;
``(2) the degree of customer satisfaction with Postal
Service performance in the acceptance, processing, and
delivery of mail;
``(3) the needs of all Postal Service customers;
``(4) mail volume and revenues projected for future years;
``(5) the projected growth in the number of addresses the
Postal Service will be required to serve in future years;
``(6) the current and projected future cost of serving
Postal Service customers;
``(7) the effect of changes in technology, demographics,
and population distribution on the efficient and reliable
operation of the postal delivery system;
``(8) the financial status of the Postal Service, including
the status of any accrued unfunded liabilities or
obligations;
``(9) ensuring that the performance of the Postal Service
is as strong as reasonably possible under the applicable
circumstances, including the factors described in paragraphs
(1) through (8); and
``(10) the policies of this title and such other factors as
the Postal Service determines appropriate.
[[Page S5292]]
``(e) Performance Targets, Measurements, and Publication.--
``(1) Performance targets.--
``(A) Establishment.--Each year, the Postal Service shall
establish reasonable targets for performance to ensure that
mail service for postal customers meets the service standards
for market-dominant products.
``(B) Compliance determination.--For purposes of section
3653(b)(2), the Commission shall evaluate the compliance of
the Postal Service with the service standards for market-
dominant products by reference to the performance targets.
``(2) Performance measurement.--
``(A) Definitions of urban and rural.--For purposes of
measuring performance under the performance targets, the
Commission, in consultation with the Postal Service--
``(i) shall promulgate regulations defining the terms--
``(I) rural; and
``(II) urban, which shall be defined by the Commission as
any geographic area that is not defined as rural under
subclause (I); and
``(ii) in defining the terms under clause (i), shall
consider--
``(I) the recommendations of the report submitted to the
Commission under section 950(e) of the Postal Service Reform
Act of 2018;
``(II) existing definitions of those terms that are in use
by the Postal Service, the Federal Government, and other
sources; and
``(III) stakeholder input.
``(B) Performance reporting.--
``(i) In general.--The Postal Service shall measure and
report to the Commission on the performance of the Postal
Service with respect to market-dominant products on a
nationwide, Area, and District basis based on the performance
targets, taking into consideration the Commission's opinion
on any proposed target, and in a manner that reflects
separate consideration of performance with respect to--
``(I) rural customers; and
``(II) urban customers.
``(ii) Commission review.--The Commission shall review and
comment upon the performance of the Postal Service as
reported under clause (i).
``(3) Publication.--
``(A) In general.--Subject to subparagraph (B), the Postal
Service shall publish on the website of the Postal Service
the performance targets, the actual measurements under those
targets, and the comments of the Commission under paragraph
(2)--
``(i) covering a period designated by the Commission, the
length of which shall be not less than 2 years; and
``(ii) categorized in accordance with that paragraph.
``(B) Commercially sensitive or proprietary information.--
To the extent that the Postal Service considers any
information required to be reported under subparagraph (A) to
be commercially sensitive or proprietary in nature, the
Commission shall determine the level of information that
shall be publicly disclosed in accordance with section
504(g)(3)(A).
``(f) Review Upon Complaint.--The regulations promulgated
pursuant to this section (and any revisions thereto), and any
violations thereof, shall be subject to review upon complaint
under sections 3662 and 3663.
``(g) Noncompliance With Performance Targets.--
``(1) In general.--If the Postal Service fails to meet 1 or
more performance targets--
``(A) subject to subparagraph (B), the Postal Service shall
develop a plan to make specific operational corrections under
the control of the Postal Service that will cause the
performance targets to be met as soon as is reasonably
practicable, as determined by the Postal Service; and
``(B) if the Postal Service makes best efforts to develop a
plan described in subparagraph (A) and determines that
achieving compliance with the performance targets through
such a plan would be impractical, would not be cost
effective, and would not be in the best long-term interest of
the Postal Service and its customers, the Postal Service
shall make adjustments to the service standards or
performance targets.
``(2) Postal service submission of plan.--Not later than
180 days after the date of noncompliance with a performance
target, the Postal Service shall submit to the Commission--
``(A) the plan required under paragraph (1)(A); or
``(B) a report explaining why the Postal Service is making
an adjustment described in paragraph (1)(B).
``(3) Commission consideration of postal service plan.--
``(A) In general.--The Commission--
``(i) shall review each plan or report submitted by the
Postal Service under paragraph (2); and
``(ii) may make such recommendations as the Commission
considers appropriate.
``(B) Postal service response.--If the Commission provides
recommendations regarding a plan or report to the Postal
Service under subparagraph (A)(ii), the Postal Service
shall--
``(i) consider the recommendations; and
``(ii) not later than 90 days after the date on which the
Postal Service receives the recommendations, submit a
response to the Commission explaining the bases for any
decision to accept or reject a recommendation.
``(4) Postal service implementation of plan.--After
developing a plan under paragraph (1)(A), the Postal Service
shall--
``(A) implement the plan; and
``(B) in each report provided under section 3652, discuss--
``(i) the implementation of the plan;
``(ii) the extent to which the Postal Service is improving
performance to meet the performance targets; and
``(iii) if the performance targets subject to the plan are
still not being met, whether--
``(I) the plan remains sufficient to achieve compliance
within a reasonably practicable period of time, and is
therefore being maintained;
``(II) the plan is being revised; or
``(III) the Postal Service has determined to make
adjustments described in paragraph (1)(B) rather than
continue with the plan.
``(5) Commission review of implementation.--
``(A) In general.--In making the determination required
under section 3653, the Commission shall--
``(i) review the implementation of each plan developed
under paragraph (1)(A); and
``(ii) make such recommendations as the Commission
considers appropriate.
``(B) Consideration.--The Postal Service shall consider any
recommendations under subparagraph (A)(ii) in the same manner
as provided under paragraph (3).
``(h) Periodic Review of Service Standards.--The Commission
shall periodically--
``(1) review the appropriateness of the service standards;
and
``(2) submit to Congress and the Postal Service a report on
the review conducted under paragraph (1).''.
(2) Technical and conforming amendment.--The table of
sections for chapter 36 of title 39, United States Code, is
amended by striking the item relating to section 3691 and
inserting the following:
``3691. Modern service standards, performance targets, and performance
measurements.''.
(b) Review of Nationwide Service Standard Changes.--Section
3661 of title 39, United States Code, as amended by section
945 of this title, is amended by adding at the end the
following:
``(e) Changes Relating to Market-dominant Products.--
``(1) Inspector general review.--Upon a request by the
Postal Service for an advisory opinion from the Commission
under subsection (b) relating to a nationwide or
substantially nationwide change in service standards for the
delivery of market-dominant products, including when the
Postal Service establishes new performance targets under
section 3691(e), the Inspector General shall, not later than
90 days after the submission of the request--
``(A) conduct a review of the proposal to determine
whether--
``(i) the Postal Service formulated the proposal based on
accurate data;
``(ii) the Postal Service followed appropriate policies and
procedures of the Postal Service in formulating the proposal;
and
``(iii) the proposal prioritizes the needs of the postal
customer; and
``(B) submit a report on the review conducted under
subparagraph (A) to--
``(i) the Postal Service;
``(ii) the Commission;
``(iii) the Committee on Homeland Security and Governmental
Affairs of the Senate; and
``(iv) the Committee on Oversight and Government Reform of
the House of Representatives.
``(2) Commission review.--Not earlier than 30 days after
the date on which the Inspector General submits a report on a
proposal to the Commission under paragraph (1), the
Commission shall issue its opinion on the proposal.''.
(c) Report to Congress.--Not later than 180 days after the
date on which the report is submitted to the Commission under
section 950(e)(2) of this title, the Commission shall submit
to Congress a report that includes--
(1) a determination as to whether the service standards for
market-dominant products in effect on the day before the date
of enactment of this Act achieve the objectives and factors
set forth under section 3691 of title 39, United States Code,
as amended by this section; and
(2) recommendations as to how delivery service to postal
customers could be improved based on the financial condition
of the Postal Service.
(d) Temporary Floor for Service Standards.--The Postal
Service may not revise the service standards for market-
dominant products in effect on the day before the date of
enactment of this Act in a manner that lengthens delivery
times before the date on which the report is submitted to the
Commission under section 950(e)(2) of this title.
SEC. 952. POSTAL SERVICE CHIEF INNOVATION OFFICER.
(a) 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) In General.--There is established within the Postal
Service the position of Chief Innovation Officer, appointed
by the Postmaster General, who shall manage the Postal
Service's development and implementation of innovative postal
and nonpostal products and services.
``(b) Duties.--The primary duties of the Chief Innovation
Officer are as follows:
``(1) Leading the development of innovative nonpostal
products and services that will maximize revenue to the
Postal Service.
[[Page S5293]]
``(2) Developing innovative postal products and services,
specifically those that utilize emerging information
technologies, to maximize revenue to the Postal Service.
``(3) Implementing the innovation strategy described under
subsection (d).
``(4) Monitoring the performance of innovative products and
services and revising them as needed to meet changing market
trends.
``(5) Taking into consideration comments or advisory
opinions, if applicable, issued by the Postal Regulatory
Commission prior to the initial sale of innovative postal or
nonpostal products and services.
``(c) Appointment.--
``(1) Deadline.--As soon as practicable after the date of
enactment of the Postal Service Reform Act of 2018, but not
later than 6 months after such date, the Postmaster General
shall appoint a Chief Innovation Officer.
``(2) Requirements.--Any individual appointed to serve as
the Chief Innovation Officer shall have proven expertise and
a record of success in at least 1 of the following:
``(A) Postal and shipping industry.
``(B) Innovation product research and development.
``(C) Marketing brand strategy.
``(D) Emerging communications technology.
``(E) Business process management.
``(3) Current officer or employee eligible.--An officer or
employee of the Postal Service may be appointed to the
position of Chief Innovation Officer under this chapter. Upon
appointment to such position, such officer or employee may
not concurrently hold any other position in the Postal
Service.
``(d) Innovation Strategy.--
``(1) In general.--Not later than 12 months after the date
on which the Chief Innovation Officer is appointed under
subsection (c)(1), the Postmaster General shall submit to the
Committee on Oversight and Government Reform of the House of
Representatives, the Committee on Homeland Security and
Governmental Affairs of the Senate, and the Postal Regulatory
Commission a comprehensive strategy for maximizing revenues
through innovative postal and nonpostal products and
services.
``(2) Matters to be addressed.--The strategy submitted
under paragraph (1) shall address--
``(A) the specific innovative postal and nonpostal products
and services to be developed and offered by the Postal
Service, including the nature of the market to be filled by
each product and service and the likely date by which each
product and service will be introduced;
``(B) the cost of developing and offering each product or
service;
``(C) the anticipated sales volume of each product and
service;
``(D) the anticipated revenues and profits expected to be
generated by each product and service;
``(E) the likelihood of success of each product and service
as well as the risks associated with the development and sale
of each product and service;
``(F) the trends anticipated in market conditions that may
affect the success of each product and service over the 5-
year period beginning on the date such strategy or update is
submitted;
``(G) the metrics that will be utilized to assess the
effectiveness of the innovation strategy; and
``(H) the specific methods by which mailpiece design
analysis may be improved to speed the approval process and
promote the increased use of innovative mailpiece design.
``(3) Strategy updates.--On January 1, 2020, and every 3
years thereafter, the Postal Service shall submit an update
to the innovation strategy submitted under paragraph (1) to
the Committee on Oversight and Government Reform of the House
of Representatives, the Committee on Homeland Security and
Governmental Affairs of the Senate, and the Postal Regulatory
Commission.
``(e) Report.--
``(1) In general.--On the date of submission of the
President's annual budget under section 1105(a) of title 31,
the Postmaster General shall submit to the Committee on
Oversight and Government Reform of the House of
Representatives, the Committee on Homeland Security and
Governmental Affairs of the Senate, and the Postal Regulatory
Commission a report that details the Postal Service's
progress in implementing the innovation strategy described
under subsection (d).
``(2) Matters to be addressed.--The report required under
paragraph (1) shall address--
``(A) the revenue generated by each product and service
developed through the innovation strategy and the costs of
developing and offering each such product and service for the
most recent fiscal year;
``(B) the total sales volume and revenue generated by each
product and service on a monthly basis for the preceding
year;
``(C) trends in the markets filled by each product and
service;
``(D) products and services identified in the innovation
strategy that are to be discontinued, the date on which the
discontinuance will occur, and the reasons for the
discontinuance;
``(E) alterations in products and services identified in
the innovation strategy that will be made to meet changing
market conditions, and an explanation of how these
alterations will ensure the success of the products and
services; and
``(F) the performance of the innovation strategy according
to the metrics identified in subsection (d)(2)(G).
``(f) Comptroller General Study.--
``(1) In general.--The Comptroller General shall conduct a
study on the implementation of the innovation strategy
described under subsection (d) not later than 4 years after
the date of enactment of the Postal Service Reform Act of
2018.
``(2) Contents.--The study required under paragraph (1)
shall assess the effectiveness of the Postal Service in
identifying, developing, and selling innovative postal and
nonpostal products and services. The study shall also
include--
``(A) an audit of the costs of developing each innovative
postal and nonpostal product and service developed or offered
by the Postal Service during the period beginning on the date
of enactment of the Postal Service Reform Act of 2018 and
ending 4 years after such date;
``(B) the sales volume of each such product and service;
``(C) the revenues and profits generated by each such
product and service; and
``(D) the likelihood of continued success of each such
product and service.
``(3) Submission.--The results of the study required under
this subsection shall be submitted to the Committee on
Oversight and Government Reform of the House of
Representatives, the Committee on Homeland Security and
Governmental Affairs of the Senate, and the Postal Regulatory
Commission.''.
(b) 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.''.
SEC. 953. EMERGENCY SUSPENSIONS OF POST OFFICES.
(a) In General.--Section 404 of title 39, United States
Code, is amended by adding at the end the following:
``(f) Emergency Suspensions.--
``(1) Definitions.--In this subsection--
``(A) the terms `alternate service' and `temporary
location' include a location at which customers affected by
an emergency suspension of a post office, or the expiration
of the lease or rental agreement for a post office, may send
and receive mail, which may include the provision and regular
servicing of a Cluster Box Unit (commonly known as a `CBU')
by the Postal Service;
``(B) the term `discontinuance procedures' means the
procedures required for the discontinuance of a post office
under subsection (d) and any regulations promulgated under
that subsection;
``(C) the term `emergency suspension' means the temporary
suspension of retail operations at a post office, without
following discontinuance procedures for the post office,
because of--
``(i) a natural disaster;
``(ii) the termination of a lease or rental agreement by
the lessor;
``(iii) a lack of qualified personnel to operate the post
office;
``(iv) severe or irreparable damage to, or destruction of,
the post office when alternate quarters acceptable to the
Postal Service for use as a post office are not immediately
available in the community;
``(v) a challenge to the sanctity of the mail; or
``(vi) a lack of adequate measures to safeguard the post
office or its revenues; and
``(D) the term `post office'--
``(i) means a Post Office, as that term is defined in
section 241.1 of title 39, Code of Federal Regulations, or
any successor regulation; and
``(ii) includes a post office branch or post office
station.
``(2) Authority.--The Postal Service may implement an
emergency suspension of a post office in accordance with the
requirements under paragraphs (3) through (7).
``(3) Notification.--If the Postal Service implements an
emergency suspension of a post office, the Postal Service
shall provide immediate notice of the suspension to--
``(A) the relevant local, regional, State, and Federal
officials, including--
``(i) each Member of Congress who represents the area in
which the affected post office is located; and
``(ii) the chief executive of each relevant unit of local
government; and
``(B) customers, notification to whom shall include--
``(i) the effective date of the suspension;
``(ii) the reason for the suspension;
``(iii) any alternate service available;
``(iv) the nearest postal retail facility (as defined in
section 903 of the Postal Service Reform Act of 2018) and
hours of service; and
``(v) the name and contact information of an individual to
contact for more information.
``(4) Alternate service.--If the Postal Service implements
an emergency suspension of a post office, the Postal Service
shall provide alternate drop-off, pick-up, and post office
box services at 1 or more locations that are as close as
feasible to the suspended post office.
``(5) Employee reassignment.--If the Postal Service
implements an emergency suspension of a post office, the
Postal Service shall temporarily reassign each employee of
the post office in accordance with each applicable Federal
statute, Federal regulation, and collective bargaining
agreement.
``(6) Suspension review.--
[[Page S5294]]
``(A) In general.--Within a reasonable period of time after
the date on which the Postal Service implements an emergency
suspension of a post office, the Postal Service shall review
the emergency suspension and determine whether to--
``(i) reopen the post office; or
``(ii) continue the emergency suspension.
``(B) Reopening.--
``(i) Notification.--If the Postal Service makes a
determination under subparagraph (A) to reopen a post office,
the Postal Service shall provide notice to the persons
described in paragraph (3) of the date by which the Postal
Service expects to reopen the post office.
``(ii) Delay.--If the Postal Service does not reopen a post
office by the date specified under clause (i), not later than
the next business day after that date, the Postal Service
shall provide notice of the delay to the persons described in
paragraph (3), including a new date by which the Postal
Service expects to reopen the post office, if such a date is
known.
``(iii) Subsequent delays.--If the Postal Service does not
reopen a post office by a new date specified under clause
(ii), the Postal Service shall provide to the persons
described in paragraph (3) notice, and a new date in the same
manner as under clause (ii) of this subparagraph, and shall
continue to do so at regular intervals until the Postal
Service reopens the post office or initiates discontinuance
procedures for the post office.
``(C) Continued suspension.--
``(i) In general.--If the Postal Service makes a
determination under subparagraph (A) to continue the
emergency suspension of a post office, the Postal Service--
``(I) not later than 30 days after making the
determination, shall--
``(aa) provide alternate services that are the same or
substantially similar to the services provided at the
suspended post office on a temporary basis at a location
within a reasonable distance of the suspended post office,
which may be at the nearest postal facility; and
``(bb)(AA) initiate discontinuance procedures for the post
office;
``(BB) publish a plan to restore service to the affected
community within a reasonable period of time; or
``(CC) provide notice to the persons described in paragraph
(3) of the date on which the Postal Service expects to
publish a plan to restore the same or substantially similar
service to the affected community within a reasonable period
of time; and
``(II) if the Postal Service elects to provide notice under
subclause (I)(bb)(CC), shall, not later than 90 days after
the date of the initial determination to implement the
emergency suspension, publish the plan described in that
subclause.
``(ii) Delay in restoration of service.--If the Postal
Service publishes a plan to restore service to an affected
community under subclause (I)(bb)(BB) or (II) of clause (i)
and such service to the affected community is not restored
within 180 days of the date on which the emergency suspension
was implemented, the Postal Service shall--
``(I)(aa) publish notice of the continued suspension,
including--
``(AA) a reason for the delay; and
``(BB) an anticipated date of restoration of service; and
``(bb) not later than 30 days after publishing the notice
under item (aa), host a question-and-answer forum--
``(AA) that members of the community may attend, at a
location accessible to the affected community; or
``(BB) in which members of the affected community may
participate by teleconference or videoconference; or
``(II) initiate discontinuance procedures for the post
office.
``(iii) 1-year delay.--If, as of the date that is 1 year
after the date on which an emergency suspension of a post
office was implemented, service to the affected community has
not been restored and the Postal Service has not initiated
discontinuance procedures for the post office, the Postal
Service--
``(I) shall publish notice of the continued suspension,
including--
``(aa) a reason for the delay; and
``(bb) an anticipated date of restoration of such service;
``(II) shall host--
``(aa) not later than 30 days after publishing the notice
under subclause (I), a second question-and-answer forum
described in clause (ii)(I)(bb); and
``(bb) additional question-and-answer fora described in
clause (ii)(I)(bb) every subsequent 180 days until--
``(AA) such service is restored; or
``(BB) the Postal Service initiates discontinuance
procedures for the post office; and
``(III) if services similar to those that have not been
restored are not located within a reasonable distance of the
post office, not later than 60 days after the date that is 1
year after the date on which the emergency suspension was
implemented, shall develop and publish a plan to provide
essential services, including alternate retail and post
office box services, on a temporary basis at a location
within a reasonable distance of the suspended post office.
``(7) Restoration of service.--Upon the restoration of
service under paragraph (6)(C), the Postal Service shall
immediately notify--
``(A) the affected community; and
``(B) the Headquarters Review Coordinator.
``(8) Lease or rental agreement expiration.--
``(A) In general.--
``(i) Prohibition on emergency suspensions.--The Postal
Service may not implement an emergency suspension of a post
office based on the expiration of the lease or rental
agreement for the post office.
``(ii) Alternative process.--The Postal Service shall
establish an alternative process for the suspension of postal
services to a community based on the expiration of a lease or
rental agreement for a post office in accordance with
subparagraphs (B) through (G) of this paragraph.
``(B) Failure to reach agreement.--If, as of 30 days before
the expiration of a lease or rental agreement for a post
office, the Postal Service does not expect to reach an
agreement with the lessor to extend the lease or rental
agreement or to sell the property to the Postal Service, the
Postal Service shall--
``(i) notify the affected community of a possible
disruption in service due to the possible expiration of the
lease or rental agreement; and
``(ii) include in the notification under clause (i)--
``(I) the expiration date of the lease or rental agreement;
``(II) alternate services available if the lease or rental
agreement expires,;
``(III) the nearest post offices and hours of service; and
``(IV) the name, telephone number, and email address of an
individual to contact for more information.
``(C) Restoration of service.--Not later than 5 days after
the date on which a lease or rental agreement for a post
office expires, the Postal Service shall make best efforts to
commence actions required to restore the same or
substantially similar service to the community in which the
post office that was the subject of the expired lease or
rental agreement is located.
``(D) Failure to restore service.--If, within 30 days after
the expiration of a lease or rental agreement for a post
office, the Postal Service is unable to restore service at
the same location or at another location in the affected
community, the Postal Service shall publish notice of intent
to restore the same or substantially similar service to the
affected community--
``(i) within a reasonable period of time; and
``(ii) in any event, not later than 180 days after the date
on which the lease or rental agreement expired.
``(E) Delay in restoration of service.--If the Postal
Service publishes notice of intent to restore the same or
substantially similar service to an affected community under
subparagraph (D) and such service to the affected community
is not restored within 180 days of the date on which the
lease or rental agreement for the post office expired, the
Postal Service shall--
``(i) publish notice of the delay, including--
``(I) a reason for the delay; and
``(II) an anticipated date of restoration of such service;
and
``(ii) within a reasonable period of time after publishing
the notice under clause (i), host a question-and-answer
forum--
``(I) that members of the community may attend, at a
location accessible to the affected community; or
``(II) in which members of the affected community may
participate by teleconference or videoconference.
``(F) Further delays in restoration of service.--Upon the
expiration of each 30-day period after the date on which the
Postal Service publishes notice of a delay under subparagraph
(E)(i), if the same or substantially similar service to the
affected community has not been restored, the Postal Service
shall publish an updated notice of the delay that includes
the anticipated date of restoration of such service.
``(G) 1-year delay.--If the same or substantially similar
service to the affected community is not restored within 1
year of the date on which the lease or rental agreement for
the post office expired, the Postal Service--
``(i) shall host--
``(I) a second question-and-answer forum described in
subparagraph (E)(ii); and
``(II) additional question-and-answer fora described in
subparagraph (E)(ii) in the affected community as determined
necessary by the Postal Service until--
``(aa) such service is restored; or
``(bb) the Postal Service initiates discontinuance
procedures for the post office; and
``(ii) if no alternate services are located within a
reasonable distance of the post office, not later than 60
days after the date that is 1 year after the date on which
the lease or rental agreement for the post office expired,
shall develop and publish a plan to provide essential
services, including alternate retail and post office box
services, on a temporary basis at a location within a
reasonable distance of the post office.''.
(b) Applicability.--The amendment made by subsection (a)
shall apply to any emergency suspension of a post office that
is implemented on or after the date that is 1 year after the
date of enactment of this Act.
SEC. 954. MAILING ADDRESS REQUIREMENTS.
(a) In General.--Subchapter VI of chapter 36 of title 39,
United States Code, is amended by adding at the end the
following:
``Sec. 3687. Mailing address requirements
``(a) Definitions.--In this section--
[[Page S5295]]
``(1) the term `municipality' means a city, town, borough,
county, parish, district, association, or other public entity
established by, or pursuant to, applicable State law; and
``(2) the term `State' means each of the several States,
territories, and possessions of the United States, the
District of Columbia, and the Commonwealth of Puerto Rico.
``(b) Requirement for Physical and Mailing Addresses to
Correspond.--The State and municipality used by the Postal
Service for the delivery address for purposes of mail matter
shall correspond with the State and municipality of the
physical address of the location for the delivery of such
mail matter.''.
(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 3686
the following:
``3687. Mailing address requirements.''.
Subtitle C--Postal Contracting Reform
SEC. 961. CONTRACTING PROVISIONS.
(a) In General.--Part I of title 39, United States Code, is
amended by adding at the end the following:
``CHAPTER 7--CONTRACTING PROVISIONS
``Sec.
``701. Definitions.
``702. Delegation of contracting authority.
``703. Posting of noncompetitive purchase requests for noncompetitive
contracts.
``704. Review of ethical issues.
``705. Ethical restrictions on participation in certain contracting
activity.
``Sec. 701. Definitions
``In this chapter--
``(1) the term `contracting officer' means an employee of a
covered postal entity who has authority to enter into a
postal contract;
``(2) the term `covered postal entity' means--
``(A) the Postal Service; or
``(B) the Postal Regulatory Commission;
``(3) the term `head of a covered postal entity' means--
``(A) in the case of the Postal Service, the Postmaster
General; or
``(B) in the case of the Postal Regulatory Commission, the
Chairman of the Postal Regulatory Commission;
``(4) the term `postal contract' means--
``(A) in the case of the Postal Service, any contract
(including any agreement or memorandum of understanding)
entered into by the Postal Service for the procurement of
goods or services; or
``(B) in the case of the Postal Regulatory Commission, any
contract (including any agreement or memorandum of
understanding) in an amount exceeding the simplified
acquisition threshold (as defined in section 134 of title 41)
entered into by the Postal Regulatory Commission for the
procurement of goods or services; and
``(5) the term `senior procurement executive' means the
senior procurement executive of a covered postal entity.
``Sec. 702. Delegation of contracting authority
``(a) In General.--
``(1) Policy.--Not later than 60 days after the date of
enactment of this chapter, the head of each covered postal
entity shall issue a policy on contracting officer
delegations of authority for postal contracts for the covered
postal entity.
``(2) Contents.--The policy issued under paragraph (1)
shall require that--
``(A) notwithstanding any delegation of authority with
respect to postal contracts, the ultimate responsibility and
accountability for the award and administration of postal
contracts resides with the senior procurement executive; and
``(B) a contracting officer shall maintain an awareness of,
and engagement in, the activities being performed on postal
contracts of which that officer has cognizance,
notwithstanding any delegation of authority that may have
been executed.
``(b) Posting of Delegations.--
``(1) In general.--The head of each covered postal entity
shall make any delegation of authority for postal contracts
outside the functional contracting unit readily available and
accessible on the website of the covered postal entity.
``(2) Effective date.--This paragraph shall apply to any
delegation of authority made on or after the date that is 30
days after the date of enactment of this chapter.
``Sec. 703. Posting of noncompetitive purchase requests for
noncompetitive contracts
``(a) Posting Required.--
``(1) Postal regulatory commission.--The Postal Regulatory
Commission shall make the noncompetitive purchase request for
any noncompetitive award for any contract (including any
agreement or memorandum of understanding) entered into by the
Postal Regulatory Commission for the procurement of goods and
services in an amount of $20,000 or more, including the
rationale supporting the noncompetitive award, publicly
available on the website of the Postal Regulatory
Commission--
``(A) not later than 14 days after the date of the award of
the noncompetitive contract; or
``(B) not later than 30 days after the date of the award of
the noncompetitive contract, if the basis for the award was a
compelling business interest.
``(2) Postal service.--The Postal Service shall make the
noncompetitive purchase request for any noncompetitive award
of a postal contract in an amount of $250,000 or more,
including the rationale supporting the noncompetitive award,
publicly available on the website of the Postal Service--
``(A) not later than 14 days after the date of the award;
or
``(B) not later than 30 days after the date of the award,
if the basis for the award was a compelling business
interest.
``(3) Adjustments to the posting threshold.--
``(A) Review and determination.--Not later than January 31
of each year, the Postal Service and the Postal Regulatory
Commission shall--
``(i) review the applicable threshold established under
paragraph (1) or (2); and
``(ii) based on any change in the Consumer Price Index for
All Urban Consumers of the Department of Labor, determine
whether an adjustment to the threshold shall be made.
``(B) Amount of adjustments.--An adjustment under
subparagraph (A) shall be made in increments of $5,000. If
the covered postal entity determines that a change in the
Consumer Price Index for a year would require an adjustment
in an amount that is less than $5,000, the covered postal
entity may not make an adjustment to the threshold for the
year.
``(4) Effective date.--This subsection shall apply to any
noncompetitive contract awarded on or after the date that is
90 days after the date of enactment of this chapter.
``(b) Public Availability.--
``(1) In general.--Subject to paragraph (2), the
information required to be made publicly available by a
covered postal entity under subsection (a) shall be readily
accessible on the website of the covered postal entity.
``(2) Protection of proprietary information.--A covered
postal entity shall--
``(A) carefully screen any description of the rationale
supporting a noncompetitive award required to be made
publicly available under subsection (a) to determine whether
the description includes proprietary data (including any
reference or citation to the proprietary data) or security-
related information; and
``(B) remove any proprietary data or security-related
information before making publicly available a description of
the rationale supporting a noncompetitive award.
``(c) Waivers.--
``(1) Waiver permitted.--If the Postal Service determines
that making a noncompetitive purchase request for a postal
contract of the Postal Service under subsection (a)(2)
publicly available would risk placing the Postal Service at a
competitive disadvantage relative to a private sector
competitor, the senior procurement executive, in consultation
with the advocate for competition of the Postal Service, may
waive the requirements under subsection (a).
``(2) Form and content of waiver.--
``(A) Form.--A waiver under paragraph (1) shall be in the
form of a written determination placed in the file of the
contract to which the noncompetitive purchase request
relates.
``(B) Content.--A waiver under paragraph (1) shall
include--
``(i) a description of the risk associated with making the
noncompetitive purchase request publicly available; and
``(ii) a statement that redaction of sensitive information
in the noncompetitive purchase request would not be
sufficient to protect the Postal Service from being placed at
a competitive disadvantage relative to a private sector
competitor.
``(3) Delegation of waiver authority.--The Postal Service
may not delegate the authority to approve a waiver under
paragraph (1) to any employee having less authority than the
senior procurement executive.
``Sec. 704. Review of ethical issues
``If a contracting officer identifies any ethical issues
relating to a proposed contract and submits those issues and
that proposed contract to the designated ethics official for
the covered postal entity before the awarding of that
contract, that ethics official shall--
``(1) review the proposed contract; and
``(2) advise the contracting officer on the appropriate
resolution of ethical issues.
``Sec. 705. Ethical restrictions on participation in certain
contracting activity
``(a) Definitions.--In this section--
``(1) the term `covered employee' means--
``(A) a contracting officer; or
``(B) any employee of a covered postal entity whose
decisionmaking affects a postal contract as determined by
regulations prescribed by the head of a covered postal
entity;
``(2) the term `final conviction' means a conviction
entered by a court, regardless of whether such conviction was
entered on a verdict or pursuant to a plea (including a plea
of nolo contendere), and with regard to which no further
appeal may be taken or is pending; and
``(3) the term `covered relationship' means a covered
relationship described in section 2635.502(b)(1) of title 5,
Code of Federal Regulations, or any successor thereto.
``(b) In General.--
``(1) Regulations.--The head of each covered postal entity
shall prescribe regulations that--
``(A) require a covered employee to include in the file of
any noncompetitive purchase request for a noncompetitive
postal contract a written certification that--
``(i) discloses any covered relationship of the covered
employee; and
[[Page S5296]]
``(ii) states that the covered employee will not take any
action with respect to the noncompetitive purchase request
that affects the financial interests of any person with which
the covered employee has a covered relationship, or otherwise
gives rise to an appearance of the use of public office for
private gain, as described in section 2635.702 of title 5,
Code of Federal Regulations, or any successor thereto;
``(B) require a contracting officer to consult with the
ethics counsel for the covered postal entity regarding any
disclosure made by a covered employee under subparagraph
(A)(i), to determine whether participation by the covered
employee in the noncompetitive purchase request would give
rise to a violation of part 2635 of title 5, Code of Federal
Regulations (commonly referred to as the Standards of Ethical
Conduct for Employees of the Executive Branch), or any
successor thereto;
``(C) require the ethics counsel for a covered postal
entity to review any disclosure made by a contracting officer
under subparagraph (A)(i) to determine whether participation
by the contracting officer in the noncompetitive purchase
request would give rise to a violation of part 2635 of title
5, Code of Federal Regulations (commonly referred to as the
Standards of Ethical Conduct for Employees of the Executive
Branch), or any successor thereto;
``(D) under subsections (d) and (e) of section 2635.502 of
title 5, Code of Federal Regulations, or any successor
thereto, require the ethics counsel for a covered postal
entity to--
``(i) authorize a covered employee that makes a disclosure
under subparagraph (A)(i) to participate in the
noncompetitive postal contract; or
``(ii) disqualify a covered employee that makes a
disclosure under subparagraph (A)(i) from participating in
the noncompetitive postal contract;
``(E) require a contractor to timely disclose to the
contracting officer in a bid, solicitation, award, or
performance of a postal contract any conflict of interest
with a covered employee; and
``(F) include authority for the head of the covered postal
entity to grant a waiver or otherwise mitigate any
organizational or personal conflict of interest, if the head
of the covered postal entity determines that the waiver or
mitigation is in the best interests of the covered postal
entity.
``(2) Posting of waivers.--Not later than 30 days after the
head of a covered postal entity grants a waiver described in
paragraph (1)(F), the head of the covered postal entity shall
make the waiver publicly available on the website of the
covered postal entity.
``(c) Contract Voidance and Recovery.--
``(1) Unlawful conduct.--In any case in which there is a
final conviction for a violation of any provision of chapter
11 of title 18 relating to a postal contract, the head of a
covered postal entity may--
``(A) void that contract; and
``(B) recover the amounts expended and property transferred
by the covered postal entity under that contract.
``(2) Obtaining or disclosing procurement information.--
``(A) In general.--In any case in which a contractor under
a postal contract fails to timely disclose a conflict of
interest to the appropriate contracting officer as required
under the regulations promulgated under subsection (b)(1)(E),
the head of a covered postal entity may--
``(i) void that contract; and
``(ii) recover the amounts expended and property
transferred by the covered postal entity under that contract.
``(B) Conviction or administrative determination.--A case
described under subparagraph (A) is any case in which--
``(i) there is a final conviction for an offense punishable
under section 2105 of title 41; or
``(ii) the head of a covered postal entity determines,
based upon a preponderance of the evidence, that the
contractor or someone acting for the contractor has engaged
in conduct constituting an offense punishable under section
2105 of such title.''.
(b) Technical and Conforming Amendment.--The table of
chapters at the beginning of part I is amended by adding at
the end the following:
``7. Contracting Provisions..................................701''.....
SEC. 962. TECHNICAL AMENDMENT TO DEFINITION.
Section 7101(8) of title 41, United States Code, is
amended--
(1) by striking ``and'' at the end of subparagraph (C);
(2) by striking the period at the end of subparagraph (D)
and inserting ``; and''; and
(3) by adding at the end the following:
``(E) the United States Postal Service and the Postal
Regulatory Commission.''.
Subtitle D--Postal Regulatory Commission, Inspector General, Related
Provisions, and Miscellaneous
SEC. 981. POSTAL REGULATORY COMMISSION.
Section 502 of title 39, United States Code, is amended--
(1) in subsection (c), by striking ``subsection (f)'' and
inserting ``subsections (f) and (g)''; and
(2) by adding at the end the following:
``(g) A Commissioner may serve for not more than 2 full
terms as a Commissioner.''.
SEC. 982. INSPECTOR GENERAL OF THE UNITED STATES POSTAL
SERVICE AND THE POSTAL REGULATORY COMMISSION.
(a) Appointment of Inspector General of the United States
Postal Service and the Postal Regulatory Commission by
President.--Section 8G of the Inspector General Act of 1978
(5 U.S.C. App.) is amended--
(1) in subsection (a)--
(A) in paragraph (2), by striking ``the United States
International Trade Commission, the Postal Regulatory
Commission, and the United States Postal Service'' and
inserting ``the United States International Trade Commission,
and the United States Postal Service and the Postal
Regulatory Commission''; and
(B) in paragraph (4), by striking subparagraph (B) and
inserting the following:
``(B) with respect to the United States Postal Service and
the Postal Regulatory Commission, such term, for purposes of
oversight of--
``(i) the United States Postal Service, means the Governors
(as defined in section 102(3) of title 39, United States
Code); and
``(ii) the Postal Regulatory Commission, means the Chairman
of the Postal Regulatory Commission;'';
(2) in subsection (d)(1), by inserting ``or subsection
(f)(3)'' after ``Except as provided in paragraph (2)''; and
(3) in subsection (f)--
(A) by striking paragraph (1) and inserting the following:
``(1)(A) There is established in the United States Postal
Service the Office of the Inspector General of the United
States Postal Service and the Postal Regulatory Commission.
``(B) There shall be at the head of the Office of the
Inspector General of the United States Postal Service and the
Postal Regulatory Commission an Inspector General (referred
to in this subsection as the `Inspector General') who shall
be appointed by the President, by and with the advice and
consent of the Senate, without regard to political
affiliation and solely on the basis of integrity and
demonstrated ability in accounting, auditing, financial
analysis, law, management analysis, public administration, or
investigations.
``(C) The Inspector General may be removed from office by
the President. If the Inspector General is removed from
office or is transferred to another position or location
within the United States Postal Service, the President shall
communicate in writing the reasons for any such removal or
transfer to both Houses of Congress, not later than 30 days
before the removal or transfer. Nothing in this subparagraph
shall prohibit a personnel action otherwise authorized by
law, other than transfer or removal.
``(D) For the purposes of section 7324 of title 5, United
States Code, the Inspector General shall not be considered to
be an employee who determines policies to be pursued by the
United States in the nationwide administration of Federal
laws.
``(E) The Inspector General shall have all of the
authorities and responsibilities provided by this Act with
respect to the Postal Regulatory Commission, as if the Postal
Regulatory Commission were part of the United States Postal
Service.'';
(B) in paragraph (2), by striking ``of the United States
Postal Service (hereinafter in this subsection referred to as
the `Inspector General')'';
(C) in paragraph (3)--
(i) in subparagraph (A)--
(I) in clause (i), in the matter preceding subclause (I),
by inserting ``relating to the United States Postal Service''
before ``which require access to sensitive information''; and
(II) in clause (iii), by striking ``Committee on
Governmental Affairs of the Senate'' and inserting
``Committee on Homeland Security and Governmental Affairs of
the Senate'';
(ii) in subparagraph (B)(i), by inserting ``and the Postal
Regulatory Commission'' after ``United States Postal
Service''; and
(iii) in subparagraph (C), by striking ``Committee on
Governmental Affairs of the Senate'' and inserting
``Committee on Homeland Security and Governmental Affairs of
the Senate'';
(D) in paragraph (4), by adding at the end the following:
``Nothing in this paragraph may be invoked by the United
States Postal Service to restrict or limit any audit or
investigation that the Inspector General considers
appropriate.''; and
(E) in paragraph (6), by inserting ``and the Postal
Regulatory Commission'' after ``United States Postal
Service''.
(b) Interim Power of Inspector General of the United States
Postal Service.--During the period beginning on the date of
enactment of this Act and ending on the date on which the
first individual is appointed as Inspector General of the
United States Postal Service and the Postal Regulatory
Commission after the date of enactment of this Act, the
Inspector General of the United States Postal Service shall
have all of the authorities and responsibilities provided by
the Inspector General Act of 1978 (5 U.S.C. App.) with
respect to the Postal Regulatory Commission on the day before
the date of enactment of this Act, as if the Postal
Regulatory Commission were part of the United States Postal
Service.
(c) Transfer of Personnel.--
(1) Office of the inspector general of the united states
postal service.--The personnel employed in the Office of the
Inspector General of the United States Postal Service are
transferred to the Office of the Inspector General of the
United States Postal Service and the Postal Regulatory
Commission.
(2) Office of the inspector general of the postal
regulatory commission.--The
[[Page S5297]]
personnel employed in the Office of the Inspector General of
the Postal Regulatory Commission may be transferred to the
other offices of the Postal Regulatory Commission.
(3) Modern service and performance standards.--Any
unobligated amounts made available to carry out the functions
of the Office of the Inspector General of the Postal
Regulatory Commission before the date of enactment of this
Act shall be used to establish and revise modern service
standards and measure performance under section 3691 of title
39, United States Code, as amended by section 950(a) of this
title.
(4) Effect.--During the 1-year period beginning on the date
of enactment of this Act, any full-time or part-time employee
who, on the day before such date of enactment, was employed
in a permanent position in the Office of the Inspector
General of the Postal Regulatory Commission, shall not be
separated or reduced in grade or compensation because of the
transfer under an amendment made by this section.
(d) Technical and Conforming Amendments.--
(1) Title 39, united states code.--Title 39, United States
Code, is amended--
(A) in section 102(4), by striking ``section 202(e) of this
title'' and inserting ``section 8G(f)(1)(B) of the Inspector
General Act of 1978 (5 U.S.C. App.)'';
(B) in section 202, by striking subsection (e);
(C) in section 504, by striking subsection (h);
(D) in section 1001(b), in the first sentence, by inserting
``, and section 8G(f)(1)(B) of the Inspector General Act of
1978 (5 U.S.C. App.)'' after ``1001(c) of this title'';
(E) in section 1003(b), by striking ``11(2)'' and inserting
``12(2)'';
(F) in section 1005(a)(3), by inserting ``, and section
8G(f)(1)(B) of the Inspector General Act of 1978 (5 U.S.C.
App.)'' after ``1001(c) of this title'';
(G) in section 2009, by inserting ``and the Postal
Regulatory Commission'' after ``United States Postal
Service''; and
(H) in section 2011(h)(2)(D), by inserting ``and the Postal
Regulatory Commission'' after ``United States Postal
Service''.
(2) Omnibus consolidated appropriations act, 1997.--Section
662(d) of the Omnibus Consolidated Appropriations Act, 1997
(39 U.S.C. 2802 note) is amended--
(A) in paragraph (1)--
(i) in the paragraph heading, by inserting ``and the postal
regulatory commission'' after ``Postal service'';
(ii) in subparagraph (A), by inserting ``and the Postal
Regulatory Commission'' after ``Postal Service''; and
(iii) in subparagraph (B)(i), by inserting ``and the Postal
Regulatory Commission'' after ``Postal Service''; and
(B) in the first sentence of paragraph (2), by inserting
``and the Postal Regulatory Commission'' after ``Postal
Service''.
(e) Savings Provisions.--
(1) Suits.--The provisions of this title shall not affect
suits commenced before the effective date of this title, and
in all such suits, proceeding shall be had, appeals taken,
and judgments rendered in the same manner and with the same
effect as if this title had not been enacted.
(2) Nonabatement of actions.--No suit, action, or other
proceeding commenced by or against the Inspector General of
the United States Postal Service or the Inspector General of
the Postal Regulatory Commission, or by or against any
individual in the official capacity of such individual as an
officer of the Office of the Inspector General of the United
States Postal Service or the Office of the Inspector General
of the Postal Regulatory Commission shall abate by reason of
the enactment of this title.
(3) Continuance of suits.--If, before the effective date of
this title, the Office of the Inspector General of the United
States Postal Service or the Office of the Inspector General
of the Postal Regulatory Commission or officer thereof in the
official capacity of such officer, is party to a suit, and
under this title any function of the Office of the Inspector
General of the United States Postal Service or the Office of
the Inspector General of the Postal Regulatory Commission or
officer is transferred to the Inspector General of the United
States Postal Service and the Postal Regulatory Commission or
any other official of the Office of the Inspector General of
the United States Postal Service and the Postal Regulatory
Commission, then such suit shall be continued with the
Inspector General of the United States Postal Service and the
Postal Regulatory Commission or other appropriate official of
the Office of the Inspector General of the United States
Postal Service and the Postal Regulatory Commission
substituted or added as a party.
(f) Applicability.--
(1) In general.--Except with respect to the amendment made
by subsection (a)(1)(A) relating to the Postal Regulatory
Commission and the amendment made by subsection (d)(1)(C),
the amendments made by this section shall apply with respect
to the first individual appointed as Inspector General of the
United States Postal Service and the Postal Regulatory
Commission after the date of enactment of this Act.
(2) Rule of construction.--Nothing in this title may be
construed to alter the authority or the length of the term of
the individual serving as Inspector General of the United
States Postal Service on the date of enactment of this Act.
(g) References in This Title to the Inspector General of
the United States Postal Service.--On and after the date on
which the first individual is appointed as Inspector General
of the United States Postal Service and the Postal Regulatory
Commission after the date of enactment of this Act, each
reference in this title to the Inspector General of the
Postal Service shall be deemed to be a reference to the
Inspector General of the United States Postal Service and the
Postal Regulatory Commission.
(h) Resources for Waste, Fraud, and Abuse Investigations.--
(1) In general.--Chapter 4 of title 39, United States Code,
is amended by adding at the end the following:
``Sec. 417. Waste, fraud, and abuse investigations
``The Postal Service may transfer such resources to the
Inspector General for waste, fraud, and abuse investigations
as the Postal Service determines necessary.''.
(2) Technical and conforming amendment.--The table of
sections for chapter 4 of title 39, United States Code, is
amended by adding at the end the following:
``417. Waste, fraud, and abuse investigations.''.
SEC. 983. GAO REPORT ON FRAGMENTATION, OVERLAP, AND
DUPLICATION IN FEDERAL PROGRAMS AND ACTIVITIES.
The Comptroller General of the United States shall include
in the annual report to Congress required under section 21 of
the Joint Resolution entitled ``Joint Resolution increasing
the statutory limit on the public debt'', approved February
12, 2010 (31 U.S.C. 712 note), that is applicable to the
first year beginning after the date of enactment of this Act
a review of the duplication of services and functions between
the Office of the Inspector General of the Postal Service,
the Postal Inspection Service, and any other Federal agency.
______