[117th Congress Public Law 108]
[From the U.S. Government Publishing Office]
[[Page 136 STAT. 1127]]
Public Law 117-108
117th Congress
An Act
To provide stability to and enhance the services of the United States
Postal Service, and for other purposes. <<NOTE: Apr. 6, 2022 - [H.R.
3076]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Postal Service
Reform Act of 2022.>>
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) <<NOTE: 39 USC 101 note.>> Short Title.--This Act may be cited
as the ``Postal Service Reform Act of 2022''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--POSTAL SERVICE FINANCIAL REFORMS
Sec. 101. Postal Service Health Benefits Program.
Sec. 102. USPS Fairness Act.
Sec. 103. Nonpostal services.
TITLE II--POSTAL SERVICE OPERATIONAL REFORMS
Sec. 201. Performance targets and transparency.
Sec. 202. Integrated delivery network.
Sec. 203. Review of Postal Service cost attribution guidelines.
Sec. 204. Rural newspaper sustainability.
Sec. 205. Funding of Postal Regulatory Commission.
Sec. 206. Flats operations study and reform.
Sec. 207. Reporting requirements.
Sec. 208. Postal Service transportation selection policy revisions.
Sec. 209. USPS Inspector General oversight of Postal Regulatory
Commission.
TITLE III--SEVERABILITY
Sec. 301. Severability.
SEC. 2. <<NOTE: 39 USC 501 note.>> DEFINITIONS.
(a) Commission.--In this Act, the term ``Commission'' means the
Postal Regulatory Commission.
(b) Terms Defined in Title 39, United States Code.--In this Act, the
terms ``competitive product'', ``market-dominant product'', and ``Postal
Service'' have the meanings given those terms in section 102 of title
39, United States Code.
TITLE I--POSTAL SERVICE FINANCIAL REFORMS
SEC. 101. POSTAL SERVICE HEALTH BENEFITS PROGRAM.
(a) Establishment.--
(1) In general.--Chapter 89 of title 5, United States Code,
is amended by inserting after section 8903b the following:
[[Page 136 STAT. 1128]]
``Sec. 8903c. <<NOTE: 5 USC 8903c.>> Postal Service Health
Benefits Program
``(a) Definitions.--In this section--
``(1) the term `covered Medicare individual' means an
individual who is entitled to benefits under Medicare part A,
but excluding an individual who is eligible to enroll under such
part under section 1818 or 1818A of the Social Security Act (42
U.S.C. 1395i-2, 1395i-2a);
``(2) the term `initial contract year' means the contract
year beginning in January of 2025;
``(3) the term `initial participating carrier' means a
carrier that enters into a contract with the Office to
participate in the Program during the initial contract year;
``(4) the term `Medicare part A' means part A of title XVIII
of the Social Security Act (42 U.S.C. 1395c et seq.);
``(5) the term `Medicare part B' means part B of title XVIII
of the Social Security Act (42 U.S.C. 1395j et seq.);
``(6) the term `Office' means the Office of Personnel
Management;
``(7) the term `Postal Service' means the United States
Postal Service;
``(8) the term `Postal Service annuitant' means an annuitant
enrolled in a health benefits plan under this chapter whose
Government contribution is required to be paid under section
8906(g)(2);
``(9) the term `Postal Service employee' means an employee
of the Postal Service enrolled in a health benefits plan under
this chapter whose Government contribution is paid by the Postal
Service;
``(10) the term `Postal Service Medicare covered annuitant'
means an individual who--
``(A) is a Postal Service annuitant; and
``(B) is a covered Medicare individual;
``(11) the term `Program' means the Postal Service Health
Benefits Program established under subsection (c) within the
Federal Employees Health Benefits Program;
``(12) the term `Program plan' means a health benefits plan
offered under the Program; and
``(13) the definitions set forth in section 8901 shall
apply, and for the purposes of applying such definitions in
carrying out this section, a Postal Service employee and Postal
Service annuitant shall be treated in the same manner as an
employee and an annuitant (as those terms are defined in
paragraphs (1) and (3), respectively, of section 8901),
consistent with the requirements of this section.
``(b) Application.--The requirements under this section shall--
``(1) apply to the initial contract year and each contract
year thereafter; and
``(2) supersede any other provision of this chapter
inconsistent with such requirements, as determined by the
Office.
``(c) Establishment of the Postal Service Health Benefits Program.--
``(1) In general.--
``(A) Establishment.--The Office shall establish the
Postal Service Health Benefits Program within the
Federal Employees Health Benefits Program under this
chapter, under which the Office may contract with
carriers to offer health benefits plans as described
under this section.
[[Page 136 STAT. 1129]]
``(B) Applicability of chapter requirements to
contracts.--Except as otherwise provided in this
section, any contract described in subparagraph (A)
shall be consistent with the requirements of this
chapter for contracts under section 8902 with carriers
to offer health benefits plans other than under this
section.
``(C) Program plans and participation.--The Program
shall--
``(i) to the greatest extent practicable--
``(I) <<NOTE: Effective date.>>
with respect to each plan provided by a
carrier under this subchapter in which
the total enrollment includes, in the
contract year beginning in January 2023,
1,500 or more enrollees who are Postal
Service employees or Postal Service
annuitants, include a plan offered by
that carrier with equivalent benefits
and cost-sharing requirements as
provided under paragraph (2), except
that the Director of the Office may
exempt any comprehensive medical plan
from this requirement; and
``(II) include plans offered by any
other carrier determined appropriate by
the Office;
``(ii) provide for enrollment in Program plans
of Postal Service employees and Postal Service
annuitants, in accordance with subsection (d);
``(iii) provide for enrollment in a Program
plan as an individual, for self plus one, or for
self and family; and
``(iv) not provide for enrollment in a Program
plan of an individual who is not a Postal Service
employee or Postal Service annuitant (except as a
member of family of such an employee or annuitant
or as provided under paragraph (4)).
``(2) Coverage with equivalent benefits and cost-sharing.--
In the initial contract year, the Office shall ensure that each
carrier participating in the Program provides under the Program
plans offered by the carrier benefits and cost-sharing
requirements that are equivalent to the benefits and cost-
sharing requirements under the health benefits plans offered by
the carrier under this chapter that are not Program plans,
except that prescription drug benefits and cost-sharing
requirements may differ between the Program plans and other
health benefits plans offered by the carrier under this chapter
to the extent needed to integrate the Medicare part D
prescription drug benefits coverage required under subsection
(h)(2).
``(3) Applicability of federal employees health benefits
program requirements.--Except as otherwise set forth in this
section, the provisions of this chapter applicable to health
benefits plans offered by carriers under section 8903 or 8903a
shall apply to plans offered under the Program.
``(4) Application of continuation coverage.--In accordance
with rules established by the Office, section 8905a shall apply
to health benefits plans offered under this section in the same
manner as such section applies to other health benefits plans
offered under this chapter.
``(d) Election of Coverage.--Each Postal Service employee and Postal
Service annuitant who elects to receive health benefits coverage under
this chapter--
[[Page 136 STAT. 1130]]
``(1) shall be subject to the requirements of this section;
and
``(2) may not enroll in any other health benefits plan
offered under any other section of this chapter.
``(e) Requirement of Medicare Enrollment for Certain Annuitants and
Their Family Members.--
``(1) Medicare covered annuitants.--Except as provided under
paragraph (3), a Postal Service Medicare covered annuitant may
not enroll in a Program plan unless the annuitant is entitled to
benefits under Medicare part A and enrolled in Medicare part B.
``(2) Medicare covered family members.--Except as provided
under paragraph (3), in the case of a Postal Service annuitant
who is entitled to benefits under Medicare part A and required
under this subsection to enroll in Medicare part B to enroll
under the Program, if a member of family of such Postal Service
annuitant is a covered Medicare individual, that member of
family may not enroll under the Program as a member of family of
the Postal Service annuitant unless that member of family is
entitled to benefits under Medicare part A and enrolled in
Medicare part B.
``(3) Exceptions.--
``(A) <<NOTE: Effective date.>> In general.--The
requirements under paragraphs (1) and (2), as
applicable, shall not apply with respect to an
individual in the following cases:
``(i) Current postal service annuitants.--The
individual, as of January 1, 2025, is a Postal
Service annuitant who is not both entitled to
benefits under Medicare part A and enrolled in
Medicare part B.
``(ii) Current employees aged 64 and over.--
The individual, as of January 1, 2025, is a Postal
Service employee and is at least 64 years of age.
``(iii) Postal service medicare covered
annuitants and family members residing abroad.--
For any contract year with respect to which the
individual is a Postal Service Medicare covered
annuitant or a member of family of a Postal
Service Medicare covered annuitant and resides
outside the United States (which includes the
States, the District of Columbia, the Commonwealth
of Puerto Rico, the Virgin Islands, Guam, American
Samoa, and the Northern Mariana Islands), provided
that the individual demonstrates such residency to
the Postal Service in accordance with regulations
issued by the Postal Service.
``(iv) Postal service medicare covered
annuitants and family members enrolled under va
coverage.--The individual--
``(I) is a Postal Service Medicare
covered annuitant or a member of family
of a Postal Service Medicare covered
annuitant; and
``(II) is enrolled in health care
benefits provided by the Department of
Veterans Affairs under subchapter II of
chapter 17 of title 38, United States
Code.
``(v) Postal service medicare covered
annuitants and family members eligible for ihs
health services.--The individual--
[[Page 136 STAT. 1131]]
``(I) is a Postal Service Medicare
covered annuitant or a member of family
of a Postal Service Medicare covered
annuitant; and
``(II) is eligible for health
services from the Indian Health Service.
``(B) <<NOTE: Deadline. Consultation.>> Regulations
for va and ihs exceptions.--Not later than 1 year after
the date of enactment of this section, the Office shall,
in consultation with the Secretary of Veterans Affairs,
the Secretary of Health and Human Services, and the
Postmaster General, promulgate any regulations necessary
to implement clauses (iv) and (v) of subparagraph (A).
``(C) List of individuals residing abroad.--The
Postal Service shall provide a list of individuals who
satisfy the exception under subparagraph (A)(iii) to the
Office.
``(4) Process for information collection and
dissemination. <<NOTE: Consultation.>> --The Postal Service and
the Office, in consultation with the Social Security
Administration and the Centers for Medicare & Medicaid Services,
shall establish a process that will enable the Postal Service to
timely inform Postal Service employees, Postal Service
annuitants, and members of family of such employees and
annuitants of the requirements described in paragraphs (1) and
(2) in order to be eligible to enroll in Program plans under
this section.
``(f) Transitional Open Season.--
``(1) Definitions.--In this subsection--
``(A) the term `current option', with respect to an
individual, means the option under a plan under this
chapter in which the individual is enrolled during the
contract year preceding the initial contract year; and
``(B) the term `current plan', with respect to an
individual, means the plan under this chapter in which
the individual is enrolled during the contract year
preceding the initial contract year.
``(2) Automatic enrollment.--
``(A) In general.--Subject to subparagraphs (B) and
(C), in the case of an individual who is a Postal
Service employee or Postal Service annuitant eligible to
enroll in a Program plan under subsection (d), who is
enrolled in a current plan, and who does not enroll in a
Program plan during the open season that immediately
precedes the initial contract year, the Office shall
automatically enroll the individual, as of the start of
the initial contract year, in a Program plan offered by
the carrier of the individual's current plan.
``(B) Carriers offering multiple program plans or
options.--If the carrier of the current plan of an
individual described in subparagraph (A) offers more
than 1 Program plan or option, the Office, in carrying
out subparagraph (A), shall automatically enroll the
individual in the plan and option that provide coverage
with equivalent benefits and cost sharing, as described
in subsection (c)(2), to the individual's current plan
and current option.
``(C) Carriers not offering program plans.--If the
carrier of the current plan of an individual described
in subparagraph (A) does not offer a Program plan, the
Office, in carrying out subparagraph (A), shall
automatically enroll
[[Page 136 STAT. 1132]]
the individual in the lowest-cost nationwide plan option
within the Program that is not a high deductible health
plan and does not charge an association or membership
fee.
``(g) OPM Regulations.--
``(1) <<NOTE: Deadline.>> In general.--Not later than 1
year after the date of enactment of this section, the Director
of the Office shall issue regulations to carry out this section.
``(2) Consultation.--In issuing regulations under paragraph
(1), the Director of the Office shall consult, as necessary,
with the Secretary of Health and Human Services, the Secretary
of Veterans Affairs, the Commissioner of Social Security, and
the Postmaster General.
``(3) Contents.--The regulations issued under paragraph (1)
shall include--
``(A) any provisions necessary to implement this
section;
``(B) a process under which Postal Service
annuitants and affected family members are timely
informed of the enrollment requirements and may request,
in writing, any additional enrollment information;
``(C) provisions under which a Postal Service
employee or Postal Service annuitant enrolled under the
Program may request a belated change of plan and may be
prospectively enrolled in the plan of the employee's or
annuitant's choice; and
``(D) provisions for individuals to cancel coverage
under the Program in writing to the Postal Service
because the individuals choose not to enroll in, or to
disenroll from, Medicare part B.
``(h) <<NOTE: Requirements.>> Medicare Coordination.--
``(1) In general.--The Office shall require each Program
plan to provide benefits for covered Medicare individuals
pursuant to a coordination of benefits method approved by the
Office.
``(2) Medicare part d prescription drug benefits.--The
Office shall require each Program plan to provide prescription
drug benefits to any Postal Service annuitant and member of
family of such annuitant who is a part D eligible individual (as
defined in section 1860D-1(a)(3)(A) of the Social Security Act)
through employment-based retiree health coverage (as defined in
section 1860D-22(c)(1) of such Act) through--
``(A) a prescription drug plan (as defined in
section 1860D-41(a)(14) of such Act); or
``(B) <<NOTE: Contracts.>> contracts between such a
Program plan and PDP sponsor, as defined in section
1860D-41(a)(13) of such Act, of such a prescription drug
plan.
``(i) Postal Service Contribution.--
``(1) <<NOTE: Applicability.>> In general.--Subject to
subsection (k), for purposes of applying section 8906(b) to the
Postal Service, the weighted average shall be calculated in
accordance with paragraphs (2) and (3).
``(2) <<NOTE: Deadline. Effective date. Determination.>>
Weighted average calculation.--Not later than October 1 of each
year (beginning with 2024), the Office shall determine the
weighted average of the rates established pursuant to subsection
(c)(2) for Program plans that will be in effect during the
following contract year with respect to--
``(A) enrollments for self only;
[[Page 136 STAT. 1133]]
``(B) enrollments for self plus one; and
``(C) enrollments for self and family.
``(3) Weighting in computing rates for initial contract
year.-- <<NOTE: Effective date.>> In determining such weighted
average of the rates for the initial contract year, the Office
shall take into account (for purposes of section 8906(a)(2)) the
enrollment of Postal Service employees and annuitants in the
health benefits plans offered by the initial participating
carriers as of March 31, 2023.
``(4) Payment of late enrollment penalties.--The Postal
Service may direct the Office to pay the amounts required by an
agreement between the United States Postal Service and the
Secretary of the Department of Health and Human Services under
section 1839(e)(1) of the Social Security Act (42 U.S.C.
1395r(e)(1)) from the Postal Service Retiree Health Benefits
Fund established under section 8909a until depleted and
thereafter shall pay such amounts from the Postal Service Fund
established under section 2003 of title 39.
``(j) Reserves.--
``(1) Separate reserves.--
``(A) In general.--The Office shall ensure that each
Program plan maintains separate reserves (including a
separate contingency reserve) with respect to the
enrollees in the Program plan in accordance with section
8909.
``(B) Applicability of section 8909 to contingency
reserves.--All provisions of section 8909 relating to
contingency reserves shall apply to contingency reserves
of Program plans in the same manner as to the
contingency reserves of other plans under this chapter,
except to the extent that such provisions are
inconsistent with the requirements of this subsection.
``(C) References.--For purposes of the Program, each
reference to `the Government' in section 8909 shall be
deemed to be a reference to the Postal Service.
``(D) Amounts to be credited.--The reserves
(including the separate contingency reserve) maintained
for each Program plan shall be credited with a
proportionate amount of the funds in the reserves for
health benefits plans offered by the carrier.
``(2) <<NOTE: Applicability.>> Discontinuation of program
plan.--In applying section 8909(e) relating to a Program plan
that is discontinued, the Office shall credit the separate
Postal Service contingency reserve maintained under paragraph
(1) for that plan only to the separate Postal Service
contingency reserves of the Program plans continuing under this
chapter.
``(k) No Effect on Existing Law.--Nothing in this section shall be
construed as affecting section 1005(f) of title 39 regarding variations,
additions, or substitutions to the provisions of this chapter.
``(l) Health Benefits Education Program.--
``(1) Definition.--In this subsection, the term `navigator'
means an employee of the Postal Service or of a contractor of
the Postal Service who is designated by the Postal Service or
contractor to carry out activities under paragraph (5).
``(2) <<NOTE: Deadline.>> Establishment.--Not later than 18
months after the date of enactment of this section, the Postal
Service shall establish a Health Benefits Education Program.
[[Page 136 STAT. 1134]]
``(3) Requirements.--In carrying out the Health Benefits
Education Program established under paragraph (2), the Postal
Service shall--
``(A) <<NOTE: Notification.>> notify Postal Service
annuitants and Postal Service employees about the Postal
Service Health Benefits Program established under
subsection (c)(1);
``(B) provide information regarding the Postal
Service Health Benefits Program and the requirements of
this section to Postal Service annuitants and Postal
Service employees, including--
``(i) a description of the health care options
available under such Program;
``(ii) the enrollment provisions of subsection
(d); and
``(iii) the requirement that Postal Service
annuitants and their family members be enrolled in
Medicare under subsection (e);
``(C) <<NOTE: Consultation.>> respond and provide
answers to any inquiry from such employees and
annuitants about the Postal Service Health Benefits
Program, in consultation with the Office as necessary;
``(D) <<NOTE: Consultation.>> in consultation with
the Centers for Medicare & Medicaid Services and the
Social Security Administration, provide information to
individuals about enrollment under the Medicare program
under title XVIII of the Social Security Act, and refer
individuals to the Centers for Medicare & Medicaid
Services and the Social Security Administration as
necessary for additional enrollment information; and
``(E) carry out, or provide for through contract or
other arrangement, the activities described in paragraph
(5).
``(4) Information.--
``(A) Information from opm.--The Office shall timely
provide the Postal Service with such information as
necessary to conduct the Health Benefits Education
Program.
``(B) <<NOTE: Consultation.>> Coordination with
opm.--The Postal Service shall coordinate with the
Office, in consultation with the Centers for Medicare &
Medicaid Services and the Social Security
Administration, to obtain and confirm the accuracy of
information as the Postal Service determines to be
necessary to conduct the Health Benefits Education
Program.
``(5) Navigator activities.--
``(A) Activities.--The activities described in this
paragraph, with respect to Program plans and the health
care options available under the Program, are the
following:
``(i) Educational activities for annuitants
and employees of the Postal Service to raise
awareness of the availability of Program plans and
requirements for enrolling in such plans,
including requirements to be entitled to Medicare
part A and enroll in Medicare part B.
``(ii) Distribution of fair and impartial
information concerning enrollment in such plans.
``(iii) Facilitation of enrollment in such
plans.
``(iv) Provision of information in a manner
that is culturally and linguistically appropriate
to the needs of the population being served by the
Program plans.
[[Page 136 STAT. 1135]]
``(B) Standards.--
``(i) In general.--The Postal Service shall
establish standards for navigators carrying out
the activities under this paragraph to--
``(I) engage in the navigator
activities described in subparagraph
(A); and
``(II) avoid conflicts of interest.
``(ii) Contents.--The standards established
under clause (i) shall provide that a navigator
may not--
``(I) be a health insurance carrier;
or
``(II) receive any consideration
directly or indirectly from any health
insurance carrier in connection with the
enrollment of any individual in a
Program plan.
``(C) <<NOTE: Consultation.>> Fair and impartial
information and services.--The Postal Service, in
consultation as necessary with the Office and the
Centers for Medicare & Medicaid Services, shall develop
standards to ensure that information made available by
navigators under this paragraph is fair, accurate, and
impartial.
``(6) Regulations.--
``(A) <<NOTE: Deadline.>> In general.--Not later
than 18 months after the date of enactment of this
section, the Postmaster General shall issue regulations
to establish the Health Benefits Education Program
required under this subsection.
``(B) <<NOTE: Notifications.>> Contents.--The
regulations issued under subparagraph (A) shall
include--
``(i) provisions for the notification of
Postal Service annuitants and Postal Service
employees about the Program, including a
description of the available health benefits
options, including a process for notifying Postal
Service employees who become eligible for Medicare
part B and Postal Service Medicare covered
annuitants about their choices;
``(ii) provisions for notifying Postal Service
annuitants, Postal Service employees, and their
family members of the requirements under
subsection (e) to enroll in Medicare as a
condition of eligibility to enroll in the Program;
and
``(iii) <<NOTE: Consultation.>> a process,
developed in consultation with the Social Security
Administration, the Centers for Medicare &
Medicaid Services, and the Office, for addressing
any inquiry from Postal Service annuitants and
Postal Service employees about the Program or
Medicare enrollment.''.
(2) Technical and conforming amendments.--
(A) Service benefit plans.--Section 8903(1) of title
5, United States Code, is amended by striking ``two
levels of benefits'' and inserting ``at least 2 levels
of benefits for enrollees under this chapter generally
and at least 2 levels of benefits for enrollees under
the Postal Service Health Benefits Program established
under section 8903c''.
(B) Table of sections.--The table of sections for
chapter 89 of title 5, United States Code, <<NOTE: 5 USC
8901 prec.>> is amended by inserting after the item
relating to section 8903b the following:
``8903c. Postal Service Health Benefits Program.''.
[[Page 136 STAT. 1136]]
(C) Application to certain postal service annuitants
or family members.--Section 1862(b)(1)(E) of the Social
Security Act (42 U.S.C. 1395y(b)(1)(E)) is amended by
adding at the end the following:
``(iv) Application to certain postal service
annuitants or family members.--Nothing in this
paragraph shall prohibit a group health plan from
determining an individual's eligibility to enroll
in a health benefits plan offered under the Postal
Service Health Benefits Program under section
8903c of title 5, United States Code, in
accordance with subsection (e) of such section.''.
(b) Coordination With Medicare.--
(1) Part b special enrollment period.--Section 1837 of the
Social Security Act (42 U.S.C. 1395p) is amended by adding at
the end the following new subsection:
``(o)(1) In the case of an individual who--
``(A) <<NOTE: Effective date.>> as of January 1, 2024, is--
``(i) a Postal Service annuitant who is entitled to
benefits under part A of title XVIII of the Social
Security Act, but excluding an individual who is
eligible to enroll under such part under section 1818 of
such Act or 1818A of such Act (42 U.S.C. 1395i-2, 1395i-
2a); or
``(ii) a member of family (as defined in section
8901(5) of title 5, United States Code) of a Postal
Service annuitant and is entitled to benefits under part
A of title XVIII of the Social Security Act, but
excluding an individual who is eligible to enroll under
such part under section 1818 of such Act or 1818A of
such Act (42 U.S.C. 1395i-2, 1395i-2a); and
``(B) <<NOTE: Time period.>> is not enrolled under this
part, the individual may elect to be enrolled under this part
during a special enrollment period during the 6-month period
beginning on April 1, 2024.
``(2) <<NOTE: Definition.>> In this subsection, the term `Postal
Service annuitant' means an annuitant enrolled in a health benefits plan
under chapter 89 of title 5, United States Code, whose Government
contribution is required to be paid under section 8906(g)(2) of such
title.''.
(2) Technical and conforming amendments.--
(A) Part a enrollment.--Section 1818(c) of the
Social Security Act (42 U.S.C. 1395i-2(c)) is amended,
in the matter preceding paragraph (1), by striking
``(except subsection (f) thereof)'' and inserting
``(except subsections (f) and (o) thereof)''.
(B) Coverage period under part b.--Section 1838 of
the Social Security Act (42 U.S.C. 1395q) is amended by
adding at the end the following:
``(i) <<NOTE: Effective date.>> Notwithstanding subsection (a), in
the case of an individual who enrolls during the special enrollment
period pursuant to section 1837(o), the coverage period shall begin on
January 1, 2025.''.
(3) Treatment of part b late enrollment penalty for
individuals enrolling during special enrollment period.--Section
1839(e) of the Social Security Act (42 U.S.C. 1395r(e)) is
amended--
(A) in paragraph (1), by striking ``(as defined in
paragraph (3)(A))'' and by inserting ``(as defined in
paragraph (3)(A)(i)). <<NOTE: Contracts.>> The
Secretary shall enter into an agreement with the United
States Postal Service under which the United
[[Page 136 STAT. 1137]]
States Postal Service agrees to pay on a quarterly or
other periodic basis to the Secretary (to be deposited
in the Treasury to the credit of the Federal
Supplementary Medical Insurance Trust Fund) an amount
equal to the amount of the part B late enrollment
premium increases with respect to the premiums for
eligible individuals (as defined in paragraph
(3)(A)(ii)).''; and
(B) by amending paragraph (3)(A) to read as follows:
``(A) <<NOTE: Definition.>> The term `eligible
individual' means an individual who is enrolled under
this part B and who--
``(i) in the case of an agreement entered into
under the first sentence of paragraph (1), is
within a class of individuals specified in such
agreement; and
``(ii) in the case of an agreement entered
into under the second sentence of paragraph (1),
is so enrolled under this part pursuant to the
special enrollment period under section 1837(o)''.
(4) Part d egwp contracting conforming amendment.--
Section <<NOTE: Applicability.>> 1860D-22(b) of the Social
Security Act (42 U.S.C. 1395w-132(b)) is amended by inserting
before the period at the end the following: ``, and shall be
applied in a manner to facilitate the offering of prescription
drug benefits under a Program plan under section 8903c of title
5, United States Code, as required under subsection (h)(2) of
such section, through employment-based retiree health coverage
through--
``(1) a prescription drug plan; or
``(2) contracts between such a Program plan and the PDP
sponsor of such a prescription drug plan.''.
(c) <<NOTE: 5 USC 8903c note.>> Information Sharing and
Dissemination Required for Special Enrollment Period and Enforcement of
Part B Enrollment Requirements.--
(1) Definitions.--In this subsection, the terms ``Medicare
part A'', ``Medicare part B'', ``Office'', ``Postal Service'',
and ``Postal Service annuitant'' have the meanings given those
terms in section 8903c of title 5, United States Code, as added
by subsection (a).
(2) <<NOTE: Regulations.>> Information sharing by opm.--The
Office shall, by regulation, establish a process for providing
such information as is necessary to the Social Security
Administration regarding Postal Service annuitants (and the
family members of such annuitants) who may be eligible to enroll
under Medicare part B during the special enrollment period
described in subsection (o) of section 1837 of the Social
Security Act (42 U.S.C. 1395p), as added by subsection (b), or
who may be subject to the enrollment requirements described in
paragraphs (1) and (2) of section 8903c(e) of title 5, United
States Code, as added by subsection (a).
(3) <<NOTE: Determination.>> Information sharing by ssa.--
The Social Security Administration shall provide to the Office
and the Postal Service information regarding whether a Postal
Service annuitant, or a family member of such an annuitant, is
entitled to benefits under Medicare part A and enrolled under
Medicare part B, to assist the Office and the Postal Service in
determining--
(A) which Postal Service annuitants, and family
members of such annuitants, may be eligible to enroll
under
[[Page 136 STAT. 1138]]
Medicare part B during the special enrollment period
described in paragraph (2); and
(B) whether Postal Service annuitants, and family
members of such annuitants, satisfy the enrollment
requirements described in paragraphs (1) and (2) of
section 8903c(e) of title 5, United States Code, as
added by subsection (a).
(d) Funding.--
(1) CMS appropriation.--In addition to amounts otherwise
available, there is appropriated to the Centers for Medicare &
Medicaid Services--Program Management Account, for fiscal year
2022, out of any money in the Treasury not otherwise
appropriated, $7,500,000, to remain available until expended,
for the purposes of carrying out this section, including the
amendments made by this section.
(2) SSA appropriation.--In addition to amounts otherwise
available, there is appropriated to the Social Security
Administration for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $16,000,000, to remain
available until expended, for the purposes of carrying out this
section (with the exception of the purposes set forth in
subsection (c)(3)(B)), including the amendments made by this
section.
(3) OPM appropriation.--In addition to amounts otherwise
available, there is appropriated to the Office of Personnel
Management for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $70,500,000, to remain
available until expended, for the purposes of carrying out this
section, including the amendments made by this section.
(4) <<NOTE: Time period.>> Funds credited by postal
service.--The United States Postal Service shall deposit an
amount equal to the sum of the amounts appropriated under
paragraphs (1), (2), and (3) into the Treasury as a
miscellaneous receipt from the Postal Service Fund in fiscal
year 2022.
(5) <<NOTE: 5 USC 8903c note.>> Reimbursement for periodic
ssa data sharing.--
(A) <<NOTE: Contracts.>> Inter-agency agreement.--
The Commissioner of Social Security shall enter into an
agreement with the Director of the Office under which
the Director pays the Commissioner from the Postal
Service administrative reserve the full costs (including
systems and administrative costs) of providing the
information described in subsection (c)(3) for the
purpose set forth in subsection (c)(3)(B).
(B) Report to congress.--The Director of the
Office--
(i) shall report the amount paid under
subparagraph (A) annually to the Committee on
Homeland Security and Governmental Affairs of the
Senate and the Committee on Oversight and Reform
of the House of Representatives; and
(ii) may satisfy the requirement under clause
(i) by including the amount paid under
subparagraph (A) in any other annual report
submitted to Congress.
SEC. 102. <<NOTE: USPS Fairness Act.>> USPS FAIRNESS ACT.
(a) <<NOTE: 5 USC 101 note.>> Short Title.--This section may be
cited as the ``USPS Fairness Act''.
(b) Rational Benefits Funding and Accounting.--
[[Page 136 STAT. 1139]]
(1) In general.--Section 8909a of title 5, United States
Code, is amended by striking subsection (d) and inserting the
following:
``(d)(1) <<NOTE: Deadlines.>> Not later than June 30, 2026, and by
June 30 of each succeeding year, the Office shall compute, for the most
recently concluded fiscal year, the amount (if any) that Government
contributions required to be paid from the Fund under section
8906(g)(2)(A) exceeded the estimated net claims costs under the
enrollment of the individuals described in section 8906(g)(2)(A).
``(2) <<NOTE: Payment.>> Not later than September 30 of each year
in which the Office makes a computation under paragraph (1), the United
States Postal Service shall pay into the Fund the amount (if any) of the
excess computed under such paragraph.
``(e) Any computation required under section 3654(b) of title 39
shall be based on--
``(1) the net present value of the future net claims costs
with respect to--
``(A) current annuitants of the United States Postal
Service as of the end of the fiscal year ending on
September 30 of the relevant reporting year; and
``(B) current employees of the United States Postal
Service who would, as of September 30 of that year--
``(i) be eligible to become annuitants
pursuant to section 8901(3)(A)(i) or (ii); and
``(ii) if they were retired as of that date,
meet the criteria for coverage of annuitants under
section 8905(b);
``(2) economic and actuarial methods and assumptions
consistent with the methods and assumptions used in determining
the Postal surplus or supplemental liability under section
8348(h); and
``(3) <<NOTE: Determination.>> any other methods and
assumptions, including a health care cost trend rate, that the
Director of the Office determines to be appropriate.
``(f) <<NOTE: Consultation. Regulations.>> After consultation with
the United States Postal Service, the Office shall promulgate any
regulations the Office determines necessary under this subsection.
``(g) <<NOTE: Definition.>> For purposes of this section, the term
`estimated net claims costs' shall mean the difference between--
``(1) the sum of--
``(A) the estimated costs incurred by a carrier in
providing health services to, paying for health services
provided to, or reimbursing expenses for health services
provided to, annuitants of the United States Postal
Service and any other persons covered under the
enrollment of such annuitants; and
``(B) an amount of indirect expenses reasonably
allocable to the provision, payment, or reimbursement
described in subparagraph (A), as determined by the
Office; and
``(2) the amount withheld from the annuity of or paid by
annuitants of the United States Postal Service under section
8906.''.
(2) Clerical amendment.--The heading of section 8909a of
title 5, United States Code, is amended by striking ``Benefit''
and inserting ``Benefits''.
(c) <<NOTE: 5 USC 8909a note.>> Application.--
[[Page 136 STAT. 1140]]
(1) Cancellation of payments.--Any payment required from the
Postal Service under section 8909a of title 5, United States
Code, as in effect on the day before the date of enactment of
this Act that remains unpaid as of such date of enactment is
canceled.
(2) Effect of this act.--In any determination relating to
the future liability for retiree health benefits of the United
States Postal Service or the Postal Service Retiree Health
Benefits Fund, the Office of Personnel Management shall take
into account the actual and reasonably expected effects of this
Act.
(d) Use of Funds From Sale of Real Property for Certain Payments.--
(1) In general.--Chapter 29 of title 39, United States Code,
is amended by adding at the end the following:
``Sec. 2903. <<NOTE: 39 USC 2903.>> Use of funds from sale of
property
``In the event that the Postal Service permanently ceases
operations, any funds derived from the sale of any real property owned
by the Postal Service shall be used to pay any outstanding liability
with respect to the salaries and expenses of any Postal Service
employee. The balance of any remaining funds shall be deposited into the
Postal Service Retiree Health Benefits Fund established under section
8909a of title 5.''.
(2) Clerical amendment.--The table of sections of such
chapter <<NOTE: 39 USC 2901 prec.>> is amended by adding after
the item relating to section 2902 the following new item:
``2903. Use of funds from sale of property.''.
SEC. 103. NONPOSTAL SERVICES.
(a) Nonpostal Services.--
(1) In general.--Part IV of title 39, United States Code, is
amended by adding after chapter 36 the following:
``CHAPTER 37-- <<NOTE: 39 USC 3701 prec.>> 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. <<NOTE: 39 USC 3701.>> Purpose
``The purpose of this chapter is to enable the Postal Service to
increase its net revenues through specific nonpostal products and
services that are expressly authorized by this chapter.
``Sec. 3702. <<NOTE: 39 USC 3702.>> Definitions
``In this chapter--
``(1) the term `nonpostal services' is limited to services
offered by the Postal Service that are expressly authorized by
this chapter and are not postal products or services;
``(2) the term `costs attributable' has the meaning given
such term in section 3631;
``(3) the term `year' means a fiscal year;
``(4) the term `local government' means a county,
municipality, city, town, township, local public authority,
school district, special district, intrastate district, council
of governments, or regional or interstate government entity;
[[Page 136 STAT. 1141]]
``(5) the term `State government' includes the government of
the District of Columbia, the Commonwealth of Puerto Rico, the
United States Virgin Islands, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, and any other
territory or possession of the United States;
``(6) the term `tribal government' means the government of
an Indian tribe, as that term is defined in section 4 of the
Indian Self-Determination and Education Assistance Act (25
U.S.C. 5304); and
``(7) the term `United States', when used in a geographical
sense, means the States, the District of Columbia, the
Commonwealth of Puerto Rico, the United States Virgin Islands,
Guam, American Samoa, the Commonwealth of the Northern Mariana
Islands, and any other territory or possession of the United
States.
``Sec. 3703. <<NOTE: 39 USC 3703.>> Postal Service program for
State governments
``(a) <<NOTE: Contracts.>> In General.--Notwithstanding any other
provision of this title, the Postal Service may establish a program to
enter into agreements with an agency of any State government, local
government, or tribal government to provide property or nonpostal
services to the public on behalf of such agencies for non-commercial
purposes, but only if--
``(1) such property or nonpostal services--
``(A) provide enhanced value to the public, such as
by lowering the cost or raising the quality of such
services or by making such services more accessible;
``(B) do not interfere with or detract from the
value of postal services, including by--
``(i) harming the cost and efficiency of
postal services; and
``(ii) unreasonably restricting access to
postal retail service, such as customer waiting
time and access to parking; and
``(2) <<NOTE: Review.>> such agreements provide a net
contribution to the Postal Service, defined as reimbursement
that covers at least 100 percent of the costs attributable to
all property and nonpostal services provided under each relevant
agreement in each year, except that agreements determined to be
substantially similar by the Postal Service with the concurrence
of the Postal Regulatory Commission shall be reviewed based on
their collective revenue and costs attributable.
``(b) <<NOTE: Deadline. Web posting.>> Public Notice.--Not more
than 90 days after offering a service under the program, the Postal
Service shall make available to the public on its website--
``(1) the agreement with the agency regarding such service;
and
``(2) <<NOTE: Business plan.>> a business plan that
describes the specific property or nonpostal service to be
provided, the enhanced value to the public, and terms of
reimbursement to the Postal Service.
``(c) <<NOTE: Public information. Web posting.>> Approval
Required.--The Postal Service may not establish the program under
subsection (a) unless the Governors of the Postal Service approve such
program by a recorded vote that is publicly disclosed on the Postal
Service website with a majority of the Governors then in office voting
for approval.
[[Page 136 STAT. 1142]]
``(d) Confidential Information.--Subsection (b) shall not be
construed as requiring the Postal Service to disclose to the public any
information--
``(1) described in section 410(c); or
``(2) exempt from public disclosure under section 552(b) of
title 5.
``Sec. 3704. <<NOTE: 39 USC 3704.>> Postal Service program for
other Government agencies
``The Postal Service may establish a program to provide property and
nonpostal services to other Government agencies within the meaning of
section 411, but only if such program provides a net contribution to the
Postal Service, defined as reimbursement that covers at least 100
percent of the costs attributable for property and nonpostal services
provided by the Postal Service in each year to such agencies.
``Sec. 3705. <<NOTE: 39 USC 3705.>> Transparency and
accountability for nonpostal services
``(a) Annual Report to the Commission.--
``(1) <<NOTE: Analysis.>> In general.--Not later than 90
days after the last day of each year, the Postal Service shall
submit to the Postal Regulatory Commission a report that
analyzes costs, revenues, rates, and quality of service for each
agreement or substantially similar set of agreements for the
provision of property or nonpostal services under section 3703
or the program as a whole under section 3704, and any other
nonpostal service authorized under this chapter, using such
methodologies as the Commission may prescribe, and in sufficient
detail to demonstrate compliance with the requirements of this
chapter.
``(2) Supporting matter.--A report submitted under paragraph
(1) shall include any nonpublic annex, the working papers, and
any other supporting matter of the Postal Service and the
Inspector General related to the information submitted in such
report.
``(b) Content and Form of Report.--
``(1) <<NOTE: Regulation.>> 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) <<NOTE: Data.>> Revised requirements.--The Commission
may, on its own motion or on request of any interested party,
initiate proceedings to improve the quality, accuracy, or
completeness of Postal Service data required by the Commission
if--
``(A) the attribution of costs or revenues to
property, products, or services under this chapter has
become significantly inaccurate or can be significantly
improved;
[[Page 136 STAT. 1143]]
``(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) <<NOTE: Reports.>> 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) <<NOTE: Determination. Notification.>> In general.--
If the Postal Service determines that any document or portion of
a document, or other matter, which it provides to the Postal
Regulatory Commission in a nonpublic annex under this section
contains information described in section 410(c), or exempt from
public disclosure under section 552(b) of title 5, the Postal
Service shall, at the time of providing such matter to the
Commission, notify the Commission of its determination, in
writing, and describe with particularity the documents (or
portions of documents) or other matter for which confidentiality
is sought and the reasons therefor.
``(2) Treatment.--Any information or other matter described
in paragraph (1) to which the Commission gains access under this
section shall be subject to paragraphs (2) and (3) of section
504(g) in the same way as if the Commission had received
notification with respect to such matter under section
504(g)(1).
``(e) <<NOTE: Deadlines.>> 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) <<NOTE: Appointment.>> appoint an officer of
the Commission to represent the interests of the general
public.
``(2) Determination of compliance or noncompliance.--Not
later than 90 days after receiving a report required under
subsection (a), the Postal Regulatory Commission shall make a
written determination as to whether the activities carried out
pursuant to this chapter during the applicable year were or were
not in compliance with the provisions of this chapter. For
purposes of this paragraph, any case in which the requirements
for coverage of costs attributable have not been met shall be
considered to be a case of noncompliance. If, with respect to a
year, no instance of noncompliance is found to have occurred,
the determination shall be to that effect. Such determination of
noncompliance shall be included with the annual compliance
determination required under section 3653.
``(3) Noncompliance.--If a timely written determination of
noncompliance is made under paragraph (2), the Postal Regulatory
Commission shall take appropriate action. If the requirements
for coverage of costs attributable specified by this chapter are
not met, the Commission shall, within 60 days after the
determination, prescribe remedial action to restore compliance
as soon as practicable, including the full restoration of
revenue shortfalls during the following year. The Commission may
order the Postal Service to discontinue a nonpostal service
under
[[Page 136 STAT. 1144]]
section 3703 that persistently fails to meet cost coverage
requirements.
``(4) Deliberate noncompliance.--In the case of deliberate
noncompliance by the Postal Service with the requirements of
this chapter, the Postal Regulatory Commission may order, based
on the nature, circumstances, extent, and seriousness of the
noncompliance, a fine (in the amount specified by the Commission
in its order) for each incidence of such noncompliance. All
receipts from fines imposed under this subsection shall be
deposited in the general fund of the Treasury.
``(f) Regulations Required.--The Postal Regulatory Commission shall
issue such regulations as are necessary to carry out this section.
``(g) Experimental Product Authority.--The Postal Service may
conduct market tests of agreements pursuant to section 3703 and section
3704 of this chapter subject to the same terms and conditions described
in section 3641 of this title. For the purposes of a market test, the
cost coverage requirements in sections 3703 and 3704 of this chapter
shall not apply.''.
(2) Clerical amendment.--The table of chapters for part IV
of title 39, United States Code, <<NOTE: 39 USC 3001 prec.>> is
amended by adding after the item relating to chapter 36 the
following:
``37. Nonpostal services.........................................3701''.
(b) Conforming Amendments.--
(1) Section 404.--Section 404(e) of title 39, United States
Code, is amended in paragraph (2), by inserting after
``subsection'' the following: ``, or any nonpostal products or
services authorized by chapter 37''.
(2) Section 411.--The last sentence of section 411 of title
39, United States Code, is amended by striking ``including
reimbursability'' and inserting ``including reimbursability
within the limitations of chapter 37''.
(3) <<NOTE: 39 USC 404 note.>> Treatment of existing
nonpostal services.--All individual nonpostal services, provided
directly or through licensing, that are continued pursuant to
section 404(e) of title 39, United States Code, shall be
considered to be expressly authorized by chapter 37 of such
title (as added by subsection (a)(1)) and shall be subject to
the requirements of section 3705, subsections (a) through (d).
TITLE II--POSTAL SERVICE OPERATIONAL REFORMS
SEC. 201. PERFORMANCE TARGETS AND TRANSPARENCY.
(a) In General.--Subchapter VII of chapter 36 of title 39, United
States Code, is amended by inserting after section 3691 the following:
``Sec. 3692. <<NOTE: 39 USC 3692.>> Performance targets and
transparency
``(a) Performance Targets.--Each year, to ensure that mail service
for postal customers meets the service standards for market-dominant
products, established under section 3691, the Postal Service shall--
``(1) <<NOTE: Deadline.>> not later than 60 days after the
beginning of the fiscal year in which they will apply, establish
and provide
[[Page 136 STAT. 1145]]
to the Postal Regulatory Commission reasonable targets for
performance for each product; and
``(2) provide the previous fiscal year's performance targets
in its Annual Compliance Report to the Postal Regulatory
Commission for evaluation of compliance for each product.
``(b) Postal Regulatory Commission Determination of Certain
Performance Information.-- <<NOTE: Deadline.>> Not later than 90 days
after first receiving the performance targets under subsection (a)(1),
the Postal Regulatory Commission shall provide to the Postal Service--
``(1) <<NOTE: Requirements. Publication.>> requirements for
the Postal Service to publish nationwide, regional, and local
delivery area performance information in accordance with
subsection (c)(2) that--
``(A) are consistent with the organizational
structure of the delivery network of the Postal Service
(including at the District and Area organizational
levels, or the functional equivalents, and, to the
extent practicable, at the U.S. ZIP Code Area level);
``(B) reflect the most granular geographic level of
performance information appropriate for the Postal
Service to publish; and
``(C) <<NOTE: Time period.>> includes time period
segments for the published geographic levels to satisfy
the publishing requirements of subparagraphs (A) and (C)
of subsection (c)(2); and
``(2) <<NOTE: Recommenda- tions.>> recommendations for any
modifications to the Postal Service's measurement systems
necessary to measure and publish the performance information
under subsection (c)(2) that the Postal Regulatory Commission
deems relevant.
``(c) <<NOTE: Website.>> Public Performance Dashboard.--
``(1) In general.--The Postal Service shall develop and
maintain a publicly available Website with an interactive web-
tool that provides performance information for market-dominant
products that is updated on a weekly basis.
``(2) Performance information.--The performance information
provided for a market-dominant product on the Website shall
include--
``(A) the type of market-dominant product;
``(B) performance information for different
geographic areas, consistent with subsection (b);
``(C) performance information for different time
periods, including annual, quarterly, monthly, and
weekly segments;
``(D) comparisons of performance information for
market-dominant products to performance information for
previous time periods to facilitate identification of
performance trends; and
``(E) the performance targets then in effect, and
the performance targets for the previous fiscal year, as
established under subsection (a)(1).
``(3) Comprehensibility.--The Website shall include plain
language descriptions of the elements required under paragraph
(2) and information on the collection process, measurement
methodology, completeness, accuracy, and validity of the
performance information provided on the Website.
``(4) Address search functionality.--The Website shall
include functionality to enable a user to search for performance
information by street address, ZIP Code, or post office box.
[[Page 136 STAT. 1146]]
``(5) Format.--The Postal Service shall make the performance
information provided on the Website available--
``(A) in a manner that--
``(i) presents the information required under
paragraph (2) on an interactive dashboard;
``(ii) is searchable and may be sorted and
filtered by the elements described in paragraph
(2); and
``(iii) to the extent practicable, enables any
person or entity to download in bulk--
``(I) such performance information;
and
``(II) the results of a search by
the elements described in paragraph (2);
``(B) under an `open license' which has the meaning
given that term in section 3502 of title 44; and
``(C) as an `open Government data asset' and in a
`machine-readable' format which have the meaning given
those terms in section 3502 of title 44.
``(6) Consultation.--The Postal Service shall regularly
consult with the Postal Regulatory Commission on appropriate
features and information to be included on the Website.
``(7) Public input.--The Postal Service shall--
``(A) solicit public input on the design and
implementation of the Website; and
``(B) maintain a public feedback tool to ensure each
feature of, and the information on, the Website is
usable and understandable.
``(8) <<NOTE: Public information.>> Deadline.--The Postal
Service shall implement and make available to the public (and
make any subsequent changes in accordance with subsection (b))
the Website not later than 60 days from the date on which the
Postal Service receives the requirements and recommendations
from the Postal Regulatory Commission under subsection (b), and
shall continuously update such information on the Website as
required by subsection (b).
``(9) Availability.--A link and plain language description
of the Website shall be made available on any webpage where
performance targets and measurements established under
subsection (a)(1) are made available to the public.
``(10) Reporting.--The Postal Service, the Postmaster
General, or the Board, as applicable, shall reference the
dashboard described in paragraph (5)(A)(i) in the Annual
Performance Plan under section 2803, the Annual Performance
Report under section 2804, and the Annual Report under section
2402.
``(11) Definitions.--In this subsection--
``(A) Performance information.--The term
`performance information' means the objective external
performance measurements established under section
3691(b)(1)(D).
``(B) Website.--The term `Website' means the website
described in paragraph (1).''.
(b) Technical and Conforming Amendment.--The table of sections for
chapter 36 of title 39, United States Code, <<NOTE: 39 USC 3621 prec.>>
is amended by inserting after the item relating to section 3691 the
following:
``3692. Performance targets and transparency.''.
SEC. 202. INTEGRATED DELIVERY NETWORK.
(a) In General.--Section 101(b) of title 39, United States Code, is
amended by inserting before ``The Postal Service'' the following:
[[Page 136 STAT. 1147]]
``The Postal Service shall maintain an integrated network for the
delivery of market-dominant and competitive products (as defined in
chapter 36 of this title). Delivery shall occur at least six days a
week, except during weeks that include a Federal holiday, in emergency
situations, such as natural disasters, or in geographic areas where the
Postal Service has established a policy of delivering mail fewer than
six days a week as of the date of enactment of the Postal Service Reform
Act of 2022.''.
(b) <<NOTE: 39 USC 101 note.>> Rule of Construction.--Nothing in
subsection (a) or the amendment made by such subsection is intended to
alter or amend the requirements of chapters 20 or 36 of title 39, United
States Code, and related implementing regulations, including provisions
relating to costing, accounting, or rates.
SEC. 203. <<NOTE: Deadline. Determination. 39 USC 3633 note.>>
REVIEW OF POSTAL SERVICE COST ATTRIBUTION
GUIDELINES.
Not later than the date that is one year after the date of the
enactment of this Act, the Postal Regulatory Commission shall initiate a
review of the regulations issued pursuant to sections 3633(a) and
3652(a)(1) of title 39, United States Code, to determine whether
revisions are appropriate to ensure that all direct and indirect costs
attributable to competitive and market-dominant products are properly
attributed to those products, including by considering the underlying
methodologies in determining cost attribution and considering options to
revise such methodologies. If <<NOTE: Notice. Public comment.>> the
Commission determines, after notice and opportunity for public comment,
that revisions are appropriate, the Commission shall make modifications
or adopt alternative methodologies as necessary.
SEC. 204. RURAL NEWSPAPER SUSTAINABILITY.
Section 3626(h) of title 39, United States Code, is amended by
striking ``10 percent'' and inserting ``50 percent''.
SEC. 205. FUNDING OF POSTAL REGULATORY COMMISSION.
(a) In General.--Subsection (d) of section 504 of title 39, United
States Code, is amended to read as follows:
``(d)(1) <<NOTE: Deadlines. Budget.>> Not later than September 1 of
each fiscal year (beginning with fiscal year 2022), the Postal
Regulatory Commission shall submit to the Postal Service a budget of the
Commission's expenses, including expenses for facilities, supplies,
compensation, and employee benefits, for the following fiscal year. Any
such budget shall be deemed approved as submitted if the Governors fail
to adjust the budget in accordance with paragraph (2).
``(2)(A) Not later than 30 days after receiving a budget under
paragraph (1), the Governors holding office, by unanimous written
decision, may adjust the total amount of funding requested in such
budget. Nothing in this subparagraph may be construed to authorize the
Governors to adjust any activity proposed to be funded by the budget.
``(B) If the Governors adjust the budget under subparagraph (A), the
Postal Regulatory Commission shall adjust the suballocations within such
budget to reflect the total adjustment made by the
Governors. <<NOTE: Approval date.>> The budget shall be deemed approved
on the date the Commission makes any such adjustments. The Commission
may make further adjustments to the suballocations within such budget as
necessary.
[[Page 136 STAT. 1148]]
``(3) Expenses incurred under any budget approved under this
subsection shall be paid out of the Postal Service Fund established
under section 2003.''.
(b) Conforming Amendments.--Title 39, United States Code, is
amended--
(1) in section 2003(e), by striking ``(B) all expenses of
the Postal Regulatory Commission, subject to the availability of
amounts appropriated under section 504(d);'' and inserting ``(B)
all expenses of the Postal Regulatory Commission, pursuant to
section 504(d);''; and
(2) in section 2009--
(A) by striking ``, (2)'' and inserting ``, and
(2)''; and
(B) by striking ``, and (3) the Postal Regulatory
Commission requests to be appropriated, out of the
Postal Service Fund, under section 504(d) of this
title''.
SEC. 206. <<NOTE: 39 USC 501 note.>> FLATS OPERATIONS STUDY AND
REFORM.
(a) <<NOTE: Consultation.>> Flats Operations Study.--
(1) In general.--The Postal Regulatory Commission, in
consultation with the Inspector General of the United States
Postal Service, shall conduct a study to--
(A) comprehensively identify the causes of
inefficiencies in the collection, sorting,
transportation, and delivery of Flats; and
(B) quantify the effects of the volume trends,
investments decisions, excess capacity, and operational
inefficiencies of the Postal Service on the direct and
indirect costs of the Postal Service that are
attributable to Flats.
(2) Postal service assistance.--For the purposes of carrying
out the study under paragraph (1), the Postal Service shall,
upon request by the Postal Regulatory Commission, consult with
the Postal Regulatory Commission and provide--
(A) access to Postal Service facilities to personnel
of the Postal Regulatory Commission; and
(B) information and records necessary to conduct
such study.
(3) Report.--Not later than one year after the date of the
enactment of this Act, the Postal Regulatory Commission shall
submit to Congress and the Postmaster General a report on the
findings of the study conducted under paragraph (1).
(4) Flats defined.--In this subsection, the term ``Flats''
means products that meet the physical standards described in the
Domestic Mail Manual (as in effect on the date of the enactment
of this Act) for Flats mail for any class of mail.
(b) Flats Operations Reform.--
(1) <<NOTE: Deadline.>> In general.--Not later than six
months after the date on which the Postal Regulatory Commission
submits the report described in subsection (a)(3), the Postal
Service shall--
(A) <<NOTE: Plan.>> develop and implement a plan to
remedy each inefficiency identified in the study
conducted under subsection (a)(1) to the extent
practicable; and
(B) <<NOTE: Determination.>> if the Postal Service
determines that remedying any such inefficiency is not
practicable, provide to Congress and the Postal
Regulatory Commission an explanation why remedying such
inefficiency is not practicable, including
[[Page 136 STAT. 1149]]
whether it may become practicable to remedy such
inefficiency at a later time.
(2) Implementation requirements.--Prior to implementing the
plan described in paragraph (1)--
(A) the Postal Regulatory Commission must approve
the plan; and
(B) <<NOTE: Public comment.>> the Postal Service
shall provide an adequate opportunity for public comment
on the plan.
(3) Completion notice.--On the date on which the plan
described in paragraph (1) is fully implemented, as determined
by the Postmaster General, the Postmaster General shall submit
to Congress and the Postal Regulatory Commission a written
notice of such implementation.
(c) <<NOTE: Time period. Effective date.>> Subsequent Rate
Adjustments.--During the five-year period beginning on the date on which
the Postal Regulatory Commission submits a report under subsection
(a)(3), the Postal Service, when making any adjustment to the rate of a
market-dominant product (as defined in section 102 of title 39, United
States Code), shall consider the findings of such report and, after the
plan described in subsection (b)(1) is implemented, the plan's efficacy
in remedying the inefficiencies identified in the study conducted under
subsection (a)(1).
SEC. 207. REPORTING REQUIREMENTS.
(a) <<NOTE: Time periods.>> In General.--Not later than 240 days
after the date of the enactment of this Act, and every six months
thereafter, the Postmaster General shall submit to the President, the
Postal Regulatory Commission, the Committee on Homeland Security and
Governmental Affairs of the Senate, and the Committee on Oversight and
Reform of the House of Representatives a report on the operations and
financial condition of the Postal Service during the six-month period
ending 60 days before the date on which the Postmaster General submits
such report.
(b) <<NOTE: Updates. Assessments.>> Contents.--Each report
submitted under this section shall include updates, details of changes
from previous standards and requirements, and assessments of progress
being made on the operations and financial condition of the Postal
Service, including--
(1) the actual mail and package volume growth relative to
any mail or package volume growth projections previously made or
relied upon by the Postal Service, including a discussion of the
reasons for the differences in projections and the associated
adjustments being made;
(2) the effect of pricing changes on product volume for
market-dominant and competitive products, and associated revenue
effects on financial projections, including a discussion of the
reasons behind the differences in projections and associated
adjustments being made;
(3) customer use of network distribution centers and
processing and distribution centers;
(4) the status of the USPS Connect program and revenue
effects of the program on the financial projections;
(5) the use of Priority Mail, Priority Mail Express, First-
Class Package Service, and Parcel Select services (as such terms
are defined in the Mail Classification Schedule as in effect on
the date of the enactment of this Act) among customers and
associated revenue effects;
[[Page 136 STAT. 1150]]
(6) the use of USPS Connect Returns service among customers,
and associated costs and revenue effects;
(7) the use of USPS E-Commerce Marketplace among customers,
and associated costs and revenue effects;
(8) <<NOTE: Updates.>> updates on the reliability,
efficiency, and cost-effectiveness of the transportation
network, including the manner in which ground transportation is
utilized over air transportation for types of market-dominant
products and competitive products;
(9) <<NOTE: Review.>> a review of efforts to enhance
employee training, safety, and wellbeing, including associated
effects on employee recruitment, satisfaction, and retention;
(10) <<NOTE: Review.>> a review of efforts being made to
improve employee allocation, including changes of non-career
employees to career status, and any associated impacts to
operational expenses and processing, transportation, and
delivery efficiency;
(11) <<NOTE: Review.>> the rate of planned investment into
Postal Service processing, transportation, and delivery
equipment and infrastructure for market-dominant and competitive
products, and a review of any associated effects on operational
expenses and efficiency;
(12) changes to network distribution centers and the
expansion of regional distribution centers, including costs
associated with the changes and any realized reduction in
operational expenses or improved resource efficiencies;
(13) <<NOTE: Review.>> a review of the ability of the
Postal Service to meet performance targets established under
section 3692(a)(1) of title 39, United States Code;
(14) a discussion of the progress of the Postal Service in
achieving any new, self-funded investments, including the
amounts realized and expended to date, and a discussion of the
reasons behind any disparities in the assumptions regarding the
expected progress of the Postal Service getting new, self-funded
investments to accommodate changes; and
(15) any other information the Postal Service determines
relevant, such as barriers or unanticipated events, in order to
help the Postal Regulatory Commission, Congress, the President,
and the American public evaluate the success or difficulties
faced by the Postal Service in implementing the reform plan.
(c) Confidential Information.--
(1) In general.--The report required under this subsection
shall be submitted in a form that excludes any proprietary or
confidential information and trade secrets.
(2) <<NOTE: Determination.>> Notification.--If the Postal
Service determines that any information must be excluded under
paragraph (1), the Postal Service shall, at the time of
submitting the report, notify the President, the Committee on
Oversight and Reform of the House of Representatives, the
Committee on Homeland Security and Governmental Affairs of the
Senate, and the Postal Regulatory Commission in writing of its
determination and describe in detail the information for which
confidentiality is sought and the reasons therefor.
(3) Annexes.--The Postal Service shall submit to the persons
and entities notified under paragraph (2) any information
excluded under paragraph (1) in an annex that shall be treated
as confidential in accordance with paragraph (4).
[[Page 136 STAT. 1151]]
(4) Treatment.--No person may, with respect to any
information which such person receives under paragraph (4)--
(A) use such information for purposes other than the
purposes for which it is supplied; or
(B) permit any person or entity other than a person
or entity notified under paragraph (2), or the staff
thereof, to have access to any such information.
(d) Termination.--This section shall terminate on the date that is
five years after the date on which the first report required by this
section is submitted.
SEC. 208. POSTAL SERVICE TRANSPORTATION SELECTION POLICY
REVISIONS.
Section 101(f) of title 39, United States Code, is amended--
(1) by striking ``prompt and economical'' and inserting
``prompt, economical, consistent, and reliable'';
(2) by inserting after ``all mail'' the following: ``in a
manner that increases operational efficiency and reduces
complexity'';
(3) by inserting ``cost-effective'' after ``to achieve'';
and
(4) by inserting ``also'' after ``Nation shall''.
SEC. 209. USPS INSPECTOR GENERAL OVERSIGHT OF POSTAL REGULATORY
COMMISSION.
(a) In General.--Section 8G of the Inspector General Act of 1978 (5
U.S.C. App.) <<NOTE: 5 USC app. 8G.>> is amended--
(1) in subsection (a)(2), by striking ``the Postal
Regulatory Commission,''; and
(2) in subsection (f)--
(A) in paragraph (2)--
(i) by striking ``(2) In carrying'' and
inserting ``(2)(A) In carrying''; and
(ii) by adding at the end the following:
``(B) In carrying out the duties and responsibilities
specified in this Act, the Inspector General of the United
States Postal Service shall function as the Inspector General
for the Postal Regulatory Commission, and shall have equal
responsibility over the United States Postal Service and the
Postal Regulatory Commission. <<NOTE: Compliance.>> The
Commission shall comply with the Inspector General's oversight
as if the Commission were a designated Federal entity under
subsection (a)(2) and as if the Inspector General were the
inspector general of the Commission. The Governors of the Postal
Service shall not direct oversight activities for the Postal
Regulatory Commission.'';
(B) in paragraph (3)(A)(i), by inserting
``pertaining to the United States Postal Service'' after
``subpoenas,'';
(C) in paragraph (3)(B)(i), by inserting ``and the
Postal Regulatory Commission'' after ``United States
Postal Service'';
(D) in paragraph (3)(C), by inserting ``or the
Postal Regulatory Commission'' after ``Governors'';
(E) by redesignating paragraphs (4), (5), and (6) as
paragraphs (5), (6), and (7), respectively; and
(F) by inserting after paragraph (3) the following:
``(4) <<NOTE: Applicability.>> For activities pertaining to
the Postal Regulatory Commission, sections 4, 5, 6 (other than
subsection (g) thereof), and 7 of this Act shall be applied by
substituting the term `head of the Postal Regulatory Commission'
for `head of the establishment'.''.
[[Page 136 STAT. 1152]]
(b) Appointment and Removal.--Section 202 of title 39, United States
Code, is amended--
(1) in subsection (e)(1), by striking ``The Governors shall
appoint'' and inserting ``The Governors and the members of the
Postal Regulatory Commission shall appoint, by a favorable vote
of a majority of the Governors in office and of a majority of
the members of the Commission in office,''; and
(2) in subsection (e)(3), by inserting ``and 3 members of
the Postal Regulatory Commission'' after ``at least 7
Governors''.
(c) <<NOTE: 5 USC app. 8G note.>> Savings Provision.--
(1) Personnel, documents, assets.--All personnel, documents,
assets, unexpended balances of appropriations, and obligations
of the Inspector General for the Postal Regulatory Commission
shall transfer to the Inspector General of the Postal Service on
the effective date of this section.
(2) Legal documents.--Any order, determination, rule,
regulation, permit, grant, loan, contract, agreement,
certificate, license, or privilege that has been issued, made,
granted, or allowed to become effective by the Inspector General
of the Postal Regulatory Commission that is in effect on the
effective date of this section shall continue in effect
according to their terms until modified, terminated, superseded,
set aside, or revoked in accordance with law.
(3) Proceedings.--This section and the amendments made by
this section shall not affect any proceeding pending on the
effective date of this section before the Inspector General of
the Postal Regulatory Commission, but such proceeding shall be
continued by the Inspector General of the Postal Service, at the
discretion of that Inspector General. Nothing in this paragraph
shall be construed to prohibit the discontinuance or
modification of any such proceeding under the same terms and
conditions and to the same extent that the proceeding could have
been discontinued or modified if this section and those
amendments had not been enacted.
(4) Suits.--This section and the amendments made by this
section shall not affect any suit commenced before the effective
date of this section, and in any such suit, proceeding shall be
had, appeals taken, and judgments rendered in the same manner
and with the same effect as if this section or such amendments
had not been enacted.
(5) References.--Any reference in any other Federal law,
Executive order, rule, regulation, or delegation of authority,
or any document relating to the Inspector General of the Postal
Regulatory Commission shall be deemed to refer to the Inspector
General of the United States Postal Service.
(d) Technical and Conforming Amendment.--Section 504 of title 39,
United States Code, is amended by striking subsection (h).
(e) <<NOTE: 5 USC app. 8G note.>> Effective Date.--This section and
the amendments made by this section shall take effect on the date that
is 180 days after the date of enactment of this Act.
[[Page 136 STAT. 1153]]
TITLE III--SEVERABILITY
SEC. 301. <<NOTE: 39 USC 101 note.>> SEVERABILITY.
If any provision of this Act or any amendment made by this Act, or
the application of a provision of this Act or an amendment made by this
Act to any person or circumstance, is held to be unconstitutional, the
remainder of this Act, and the application of the provisions to any
person or circumstance, shall not be affected by the holding.
Approved April 6, 2022.
LEGISLATIVE HISTORY--H.R. 3076:
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HOUSE REPORTS: No. 117-89, Pts. 1 and 2 (both from Comm. on Oversight
and Reform).
CONGRESSIONAL RECORD, Vol. 168 (2022):
Feb. 8, considered and passed House.
Mar. 1-3, 7, 8, considered and passed Senate.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2022):
Apr. 6, Presidential remarks.
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