,i #aacth ,,congress #ast ,session ,h4 ,r4 #bgdh ,,in ,,the ,,house ,,of ,,representatives ,july #ai1 #bjac ,mr4 ,issa 7for himself1 ,mr4 ,farenthold1 and ,mr4 ,ross7 introduced the following bill2 which was referred to the ,committee on ,oversight and ,government ,reform ,a ,,bill ,to restore the financial solvency of the ,united ,states ,postal ,service and to ensure the efficient and affordable nationwide delivery of mail4 #a4 ,short title2 table of contents2 references 7a7 ,short title ,this ,act may be cited as the ,postal ,reform ,act of #bjac4 7b7 ,table of contents ,sec4 #a4 ,short title2 table of contents2 references4 ,sec4 #b4 ,definitions4 ,title ,i--,postal ,service ,modernization ,sec4 #aja4 ,nationwide mail delivery schedule4 ,sec4 #ajb4 ,delivery-point modernization4 ,sec4 #ajc4 ,efficient and flexible universal postal service4 ,sec4 #ajd4 ,applicability of procedures relating to closures and consolidations4 ,sec4 #aje4 ,enhanced reporting on ,postal ,service efficiency4 ,sec4 #ajf4 ,area and district office structure4 ,title ,,ii--,postal ,service ,governance ,subtitle ,a--,temporary ,governance ,authority ,sec4 #bja4 ,purposes4 ,sec4 #bjb4 ,establishment of the ,postal ,service ,financial ,responsibility and ,management ,assistance ,authority4 ,sec4 #bjc4 ,membership and qualification requirements4 ,sec4 #bjd4 ,organization and staff4 ,sec4 #bje4 ,funding4 ,sec4 #bjf4 ,responsibilities and powers4 ,sec4 #bjg4 ,development of financial plan and budget for the solvency of the ,postal ,service4 ,sec4 #bjh4 ,process for submission and approval of financial plan and budget4 ,sec4 #bji4 ,dissolution of the ,authority2 reconstitution of the ,board of ,governors4 ,subtitle ,b--,other ,matters ,sec4 #baa4 ,appointment of the ,postal ,service ,inspector ,general4 ,sec4 #bab4 ,membership of the ,board of ,governors4 ,title ,,iii--,postal ,service ,workforce ,sec4 #cja4 ,applicability of reduction-in-force procedures4 ,sec4 #cjb4 ,postal ,service ,,fehbp and ,,fegli funding requirements4 ,sec4 #cjc4 ,repeal of provision relating to overall value of fringe benefits4 ,sec4 #cjd4 ,modifications relating to determination of pay comparability4 ,sec4 #cje4 ,last-best-final-offer negotiations4 ,sec4 #cjf4 ,postal ,service workers' compensation reform4 ,sec4 #cjg4 ,reporting requirement4 ,title ,,iv--,postal ,service ,revenue ,sec4 #dja4 ,adequacy1 efficiency1 and fairness of postal rates4 ,sec4 #djb4 ,repeal of rate preferences for qualified political committees4 ,sec4 #djc4 ,use of negotiated service agreements4 ,sec4 #djd4 ,nonpostal services4 ,sec4 #dje4 ,alaska bypass mail modernization4 ,sec4 #djf4 ,appropriations modernization4 ,sec4 #djg4 ,enhanced product innovation4 ,title ,v--,postal ,service ,finance ,sec4 #eja4 ,treatment of ,postal ,service postemployment benefit funding projected surpluses4 ,sec4 #ejb4 ,retiree health benefit liability payment schedule4 ,sec4 #ejc4 ,supplementary borrowing authority during a control period4 ,sec4 #ejd4 ,postal ,service ,delivery-,point ,modernization ,fund4 ,sec4 #eje4 ,specific retirement liability calculations relating to the ,postal ,service4 ,title ,,vi--,postal ,contracting ,reform ,sec4 #fja4 ,contracting provisions4 ,sec4 #fjb4 ,technical amendment to definition4 ,sec4 #fjc4 ,contract limitation4 ,title ,,vii--,other ,provisions ,sec4 #gja4 ,postal facility designations4 ,sec4 #gjb4 ,response to submissions by the ,postal ,service4 ,sec4 #gjc4 ,fair stamp-evidencing competition4 ,sec4 #gjd4 ,,usps innovation officer and accountability4 ,sec4 #gje4 ,postal regulatory commission travel reporting4 7c7 ,references ,except as otherwise expressly provided1 whenever in this ,act an amendment or repeal is expressed in terms of an amendment to1 or repeal of1 a section or other provision1 the reference shall be considered to be made to a section or other provision of title #ci1 ,united ,states ,code4 #b4 ,definitions ,for the purposes of this ,act-- 7#a7 the term ,postal ,service means the ,united ,states ,postal ,service2 7#b7 the term postal retail facility means a post office1 post office branch1 post office classified station1 or other facility which is operated by the ,postal ,service1 and the primary function of which is to provide retail postal services1 but does not include a contractor-operated facility offering postal services2 7#c7 the term district office means the central office of an administrative field unit with responsibility for postal operations in a designated geographic area 7as defined under regulations1 directives1 or other guidance of the ,postal ,service1 as in effect on ,january #a1 #bjac72 and 7#d7 the term area office means the central office of an administrative field unit with responsibility for postal operations in a designated geographic area which is comprised of designated geographic areas as referred to in paragraph 7#c74 ,i ,postal ,service ,modernization #aja4 ,nationwide mail delivery schedule 7a7 ,in general ,section #djd is amended by inserting after subsection 7e7 the following3 7f7 7#a7 ,the ,postal ,service may establish a general1 nationwide mail delivery schedule of #e days per week4 7#b7 ,the ,postal ,service shall ensure that under any schedule established under paragraph 7#a71 there shall not occur more than #b consecutive days on which mail is not delivered1 including as a result of ,federal holidays4 7#c7 ,for a period not to end before ,december #ca1 #bjah1 the ,postal ,service shall provide domestic competitive product service #f days per week to each street address that was scheduled to receive package service #f days per week as of ,september #cj1 #bjab4 7#d7 ,nothing in this section shall be construed to authorize a reduction1 or to require an increase1 in frequency of mail delivery for any address for which the ,postal ,service provided delivery on fewer than #f days per week as of ,january #a1 #bjac4 4 7b7 ,mailbox access ,if the ,postal ,service establishes a general1 nationwide mail delivery schedule of #e days per week1 consistent with the provisions of section #djd of title #ci1 ,united ,states ,code1 as amended by subsection 7a71 the ,postal ,service shall amend the ,mailing ,standards of the ,united ,states ,postal ,service 7as set forth in the ,domestic ,mail ,manual7 to ensure that the provisions of section #ejh4c4b4aj of such ,manual1 as in effect on ,september #cj1 #bjab1 shall apply on any day on which the ,postal ,service does not deliver mail under the established delivery schedule4 #ajb4 ,delivery-point modernization 7a7 ,in general ,subchapter ,,vii of chapter #cf is amended by adding at the end the following3 #cfib4 ,delivery-point modernization 7a7 ,definitions ,for the purposes of this section-- 7#a7 the term delivery point means a mailbox or other receptacle to which mail is delivered2 7#b7 the term primary mode of mail delivery means the typical method by which the ,postal ,service delivers letter mail to the delivery point of a postal patron2 7#c7 the term door delivery means a primary mode of mail delivery whereby mail is placed into a slot or receptacle at or near the postal patron's door or is hand delivered to a postal patron1 but does not include curbside or centralized delivery2 7#d7 the term centralized delivery means a primary mode of mail delivery whereby mail receptacles of a number of delivery points are grouped or clustered at a single location2 and 7#e7 the term curbside delivery means a primary mode of mail delivery whereby a mail receptacle is situated at the edge of a sidewalk abutting a road or curb1 at a road1 or at a curb4 7b7 ,policy ,it shall be the policy of the ,postal ,service to use the most cost-effective primary mode of mail delivery feasible for postal patrons4 7c7 ,phaseout of door delivery 7#a7 ,new addresses ,subject to paragraph 7#d71 the ,postal ,service shall implement a program1 wherever feasible1 to provide a primary mode of mail delivery other than door delivery to new addresses established after the date of enactment of this section4 7#b7 ,business address conversion ,subject to paragraph 7#d71 the ,postal ,service shall implement a program to convert existing business addresses with door delivery to centralized delivery to the maximum extent feasible4 ,in cases in which conversion to centralized delivery is impractical1 conversion to curbside delivery shall be implemented to the maximum extent feasible4 7#c7 ,residential address conversion 7,a7 ,identification ,within one year after the date of enactment of this section1 each district office shall identify residential addresses within its service area that are appropriate candidates for conversion from door delivery to curbside or centralized delivery1 in accordance with standards established by the ,postal ,service4 7,b7 ,voluntary conversion ,subject to paragraph 7#d71 the ,postal ,service shall seek to voluntarily convert the delivery points identified under subparagraph 7,a7 from door delivery to more cost-effective primary modes of mail delivery4 7,c7 ,procedures ,in carrying out conversions under subparagraph 7,b71 the ,postal ,service shall establish procedures to-- 7i7 solicit1 consider1 and respond to input from postal patrons1 ,state and local governments1 local associations1 and property owners2 and 7ii7 place centralized delivery points in locations that maximize delivery efficiency1 ease of use for postal patrons1 and respect for private property rights4 7#d7 ,considerations ,in making any determination to convert the primary mode of mail delivery for an existing address from door delivery to any other primary mode of mail delivery1 or to provide a primary mode of mail delivery to a new address1 the ,postal ,service may consider-- 7,a7 the impact of weather conditions1 physical barriers1 or any other factor that may impact the feasibility of providing a primary mode of mail delivery other than door delivery 7such as a factor that may significantly reduce the potential cost savings associated with providing centralized or curbside delivery72 7,b7 whether the address is in a registered historic district 7as that term is defined in section #dg7;c77#c77;,b7 of the ,internal ,revenue ,code of #aihf7 is listed on the ,national ,register of ,historic ,places1 or is of historic value2 and 7,c7 population density and the concentration of poverty4 7#e7 ,waiver for physical hardship ,the ,postal ,service shall establish and maintain a waiver program under which1 upon application1 door delivery may be continued1 or provided1 at no cost to the applicant in any case in which-- 7,a7 centralized or curbside delivery would1 but for this paragraph1 otherwise be the primary mode of mail delivery2 and 7,b7 door delivery is necessary in order to avoid causing significant physical hardship to a postal patron4 7#f7 ,legacy door delivery service 7,a7 ,in general ,the ,postal ,service may continue to provide1 for a fee to be paid by the addressee1 door delivery to an address that received door delivery as of ,january #a1 #bjac1 but was converted to a different primary mode of mail delivery as a result of the requirements of subsection 7d74 7,b7 ,offset ,the fee shall1 when taken in the nationwide aggregate1 offset the additional cost to the ,postal ,service for door delivery 7compared to the cost of the primary mode of mail delivery which would otherwise exist for such address7 as a result of the requirements of subsection 7d74 7,c7 ,requirements ,the fee shall be subject to the requirements of section #cfbb7;d77#a77;,b7 and the ,postmaster ,general may by regulation prescribe the method of the fee's calculation4 7d7 ,modernization requirement 7#a7 ,minimum points to be converted ,not later than ,september #cj1 #bjbb1 the ,postal ,service shall convert not less than #cj1jjj1jjj of the door delivery points extant on ,december #ca1 #bjab1 to centralized or curbside delivery4 7#b7 ,conversion order ,in determining which delivery points to convert under paragraph 7#a71 postal patrons who voluntarily agree to convert their delivery point or points under subsection 7c77#c7 shall take precedence over any other conversions to the greatest extent practicable4 7#c7 ,funding and repayment ,until ,september #cj1 #bjbb1 the ,postal ,service may withdraw funds from the ,postal ,service ,delivery-,point ,modernization ,fund to carry out the purposes of this section4 ,all savings accrued by the ,postal ,service from conversions under this subsection shall be repaid to the ,fund on a monthly basis until all funds have been repaid4 ,all funds withdrawn under this paragraph must be repaid not later than ,september #cj1 #bjbc4 7#d7 ,voucher program ,the ,postal ,service shall1 in accordance with such standards and procedures as the ,postal ,service shall by regulation prescribe1 provide for a voucher program1 funded through the ,postal ,service ,delivery ,point ,modernization ,fund1 under which1 upon application1 the ,postal ,service may defray all or any portion of the costs associated with conversion from door delivery under this section which would otherwise be borne by postal patrons4 7#e7 ,treatment of ,exemption ,addresses receiving door delivery or legacy door delivery as a result of paragraph 7#e7 or 7#f7 of subsection 7c7-- 7,a7 shall be counted as addresses that receive the primary mode of mail delivery which the address would be subject to if not for the applicable exemption2 and 7,b7 shall1 within #cj days after ceasing to meet the requirements of such paragraph 7#e7 or 7#f71 as applicable1 be converted to the primary mode of mail delivery which was otherwise applicable4 7#f7 ,annual reports ,not later than #fj days after the end of each of fiscal years #bjac through #bjbc1 the ,postal ,service shall submit to ,congress and the ,inspector ,general of the ,postal ,service a report on the implementation of this section during the most recently completed fiscal year4 ,each such report shall include-- 7,a7 the number of residential and business addresses that-- 7i7 receive door delivery as of the end of the fiscal year preceding the most recently completed fiscal year2 7ii7 receive door delivery as of the end of the most recently completed fiscal year2 and 7iii7 during the most recently completed fiscal year1 were converted from door delivery to-- 7,i7 centralized delivery points2 7,,ii7 curbside delivery points2 and 7,,iii7 any other primary mode of mail delivery1 respectively2 7,b7 the estimated cost savings from the conversions described in subparagraph 7,a77iii72 7,c7 a description of the progress made by the ,postal ,service toward meeting the requirements of subsection 7c7 and paragraph 7#a7 of this subsection2 and 7,d7 any other information which the ,postal ,service considers appropriate4 7e7 ,review ,subchapters ,,iv and ,v shall not apply with respect to any action taken by the ,postal ,service under this section4 4 7b7 ,clerical amendment ,the table of sections for chapter #cf is amended by adding after the item relating to section #cfia the following3 #cfib4 ,delivery-point modernization4 4 #ajc4 ,efficient and flexible universal postal service 7a7 ,postal policy 7#a7 ,in general ,section #aja7;b7 is amended to read as follows3 7b7 ,the ,postal ,service shall provide effective and regular postal services to rural areas1 communities1 and small towns where post offices are not self-sustaining4 4 7#b7 ,conforming amendment ,clause 7iii7 of section #djd7;d77#b77;,a7 is amended to read as follows3 7iii7 whether such closing or consolidation is consistent with the policy of the ,government1 as stated in section #aja7;b71 that the ,postal ,service shall provide effective and regular postal services to rural areas1 communities1 and small towns where post offices are not self-sustaining2 4 7b7 ,general duty ,paragraph 7#c7 of section #djc7;b7 is amended to read as follows3 7#c7 to ensure that postal patrons throughout the ,nation will1 consistent with reasonable economies of postal operations1 have ready access to essential postal services4 4 7c7 ,conditions ,clause 7i7 of section #djd7;d77#b77;,a7 is amended to read as follows3 7i7 the effect of such closing or consolidation on the community served by such post office1 including through an analysis of such factors as-- 7,i7 the distance 7as measured by public roads7 to the closest postal retail facility not proposed for closure or consolidation under such plan2 7,,ii7 the characteristics of such location1 including weather and terrain2 7,,iii7 whether commercial mobile service 7as defined in section #ccb of the ,communications ,act of #aicd7 and commercial mobile data service 7as defined in section #fjja of the ,middle ,class ,tax ,relief and ,job ,creation ,act of #bjab7 are available in at least #hj percent of the total geographic area of the ,,zip codes served by the postal retail facility proposed for closure or consolidation2 and 7,,iv7 whether fixed broadband ,internet access service is available to households in at least #hj 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 #gjf of the ,telecommunications ,act of #aiif2 4 7d7 ,,prc review of determinations ,to close or consolidate a post office 7#a7 ,deadline for review ,section #djd7;d77#e7 is amended by striking #abj days and inserting #fj days4 7#b7 ,exclusion from review ,section #djd7;d7 is amended by adding at the end the following3 7#g7 7,a7 ,the appeals process set forth in paragraph 7#e7 shall not apply to a determination of the ,postal ,service to close a post office if there is located1 within #b miles of such post office1 a qualified contract postal unit4 7,b7 ,for purposes of this paragraph-- 7i7 the term contract postal unit means a store or other place of business which-- 7,i7 is not owned or operated by the ,postal ,service2 and 7,,ii7 in addition to its usual operations1 provides postal services to the general public under contract with the ,postal ,service2 and 7ii7 the term qualified contract postal unit1 as used in connection with a post office1 means a contract postal unit which-- 7,i7 begins to provide postal services to the general public during the period-- 7aa7 beginning #a year before the date on which the closure or consolidation of such post office is scheduled to take effect2 and 7bb7 ending on the #aeth day after the date on which the closure or consolidation of such post office is scheduled to take effect2 and 7,,ii7 has not1 pursuant to subparagraph 7,a71 served as the basis for exempting any other post office from the appeals process set forth in paragraph 7#e74 7,c7 7i7 ,if the qualified contract postal unit does not continue to provide postal services1 as required by subparagraph 7,b77i77,,ii71 for at least the #b-year period beginning on the date on which such post office was closed or1 if later1 the date on which such unit began providing postal services to the general public1 the contract postal unit shall be subject to a closure determination by the ,postal ,service to decide whether a post office must be reopened within the area 7delimited by the #b-mile radius referred to in subparagraph 7,a774 7ii7 ,a decision under clause 7i7 not to reopen a post office may be appealed to the ,postal ,regulatory ,commission under procedures which the ,commission shall by regulation prescribe4 ,such procedures shall be based on paragraph 7#e71 except that1 for purposes of this clause1 paragraph 7#e77;,c7 shall be applied by substituting in violation of section #aja7;b71 leaving postal patrons without effective and regular access to postal services for unsupported by substantial evidence on the record4 4 7#c7 ,applicability ,the amendments made by this subsection shall not apply with respect to any appeal1 notice of which is received by the ,postal ,regulatory ,commission before the date of enactment of this ,act 7determined applying the rules set forth in section #djd7;d77#f7 of title #ci1 ,united ,states ,code74 7e7 ,expedited procedures 7#a7 ,in general ,section #cffa is amended by adding at the end the following3 7d7 7#a7 ,the ,commission shall issue its opinion within #ij days after the receipt of any proposal 7as referred to in subsection 7b77 concerning-- 7,a7 the closing or consolidation of postal retail facilities 7as that term is defined in section #b7b7 of the ,postal ,reform ,act of #bjac7 to a degree that will generally affect service on a nationwide or substantially nationwide basis2 or 7,b7 an identical or substantially identical proposal on which the ,commission issued an opinion within the preceding #e years4 7#b7 ,if necessary in order to comply with the #ij-;day requirement under paragraph 7#a71 the ,commission may apply expedited procedures which the ,commission shall by regulation prescribe4 4 7#b7 ,regulations ,the ,postal ,regulatory ,commission shall prescribe any regulations necessary to carry out the amendment made by paragraph 7#a7 within #ij days after the date of enactment of this ,act4 7#c7 ,applicability ,the amendment made by this subsection shall apply with respect to any proposal received by the ,postal ,regulatory ,commission on or after the earlier of-- 7,a7 the #ijth day after the date of enactment of this ,act2 or 7,b7 the effective date of the regulations under paragraph 7#b74 7f7 ,rural post office annual closure limitation ,section #djd;a7a7 is amended-- 7#a7 in paragraph 7#b71 by striking or at the end2 7#b7 in paragraph 7#c71 by striking the period and inserting 2 or2 and 7#c7 by adding at the end the following3 7#d7 close1 consolidate1 or suspend the operations of more than #e-percent of the number of currently operating postal retail facilities on ,january #a1 of each year that were within the ,k or ,l cost ascertainment grouping on ,january #a1 #bjab1 excluding any postal retail facility scheduled for closure and ineligible for appeal due to section #djd7;d77#g77;,a7 shall not count toward the #e percent limitation4 4 7g7 ,alternate postal access choice ,section #djd7;d7 is amended by striking paragraph 7#a7 and inserting the following3 7d7 7#a7 ,the ,postal ,service1 prior to making a determination under subsection 7a77#c7 as to the necessity for the closing or consolidation of any post office1 shall-- 7,a7 provide adequate notice of its intention to close or consolidate such post office at least #fj days prior to the proposed date of such closing or consolidation to postal patrons served by such post office2 7,b7 conduct a nonbinding survey on the proposed closing or consolidation to allow postal patrons served by such post office an opportunity to indicate their preference between or among-- 7i7 the closing or consolidation2 and 7ii7 #a or more alternative options2 and 7,c7 ensure that-- 7i7 should the closure or consolidation of a postal retail facility be deemed necessary1 it shall be the policy of the ,postal ,service to provide alternative access to postal services to those served by the postal retail facility by the option chosen by the highest number of survey respondents under subparagraph 7,b77ii72 and 7ii7 if the ,postal ,service is unable to provide alternative access through the option identified in clause 7i71 or if that option is cost prohibitive1 the ,postal ,service may provide alternative access through a different means4 ,upon selection of an alternative access method other than the one identified by clause 7i71 the ,postal ,service must provide written notice to those patrons served by the postal retail facility identifying and explaining why the option identified by clause 7i7 was not possible or cost prohibitive4 4 #ajd4 ,applicability of procedures relating to closures and consolidations 7a7 ,in general ,section #djd7;d7 is amended by adding after paragraph 7#g7 7as added by section #ajc7;d77#b77 the following3 7#h7 ,for purposes of this subsection1 the term post office means a post office and any other facility described in section #b7b7 of the ,postal ,reform ,act of #bjac4 4 7b7 ,effective date ,in the case of any post office 7within the meaning of the amendment made by subsection 7a77 which1 but for such amendment1 would not otherwise be subject to section #djd7;d7 of title #ci1 ,united ,states ,code1 the amendment made by subsection 7a7 shall be effective with respect to any closure or consolidation1 the proposed effective date of which occurs on or after the #fjth day following the date of enactment of this ,act4 #aje4 ,enhanced reporting on ,postal ,service efficiency ,section #cfeb7;a7 is amended-- 7#a7 in paragraph 7#a71 by striking and after the semicolon2 7#b7 in paragraph 7#b71 by striking the period at the end and inserting 2 and2 and 7#c7 by adding after paragraph 7#b7 the following3 7#c7 which shall provide the overall change in ,postal ,service productivity and the resulting effect of such change on overall ,postal ,service costs during such year1 using such methodologies as the ,commission shall by regulation prescribe4 4 #ajf4 ,area and district office structure 7a7 ,in general ,not later than #abj days after the date of enactment of this ,act1 the ,postal ,service1 in consultation with the ,inspector ,general of the ,united ,states ,postal ,service1 shall develop and begin implementation of a plan for the closure or consolidation of such area and district offices as the ,postal ,service considers necessary and appropriate so that1 by ,october #a1 #bjae1 the combined total number of area and district offices will be at least #cj percent less than the corresponding combined total as of ,september #cj1 #bjab4 7b7 ,contents ,the plan shall include-- 7#a7 a list of the area and district offices proposed for closure or consolidation2 7#b7 a proposed schedule under which closures and consolidations of area and district offices would be carried out2 7#c7 the estimated total annual cost savings attributable to the proposed closures and consolidations described in the plan2 7#d7 the criteria and process used to develop the information described in paragraphs 7#a7 and 7#b72 7#e7 the methodology and assumptions used to derive the estimates described in paragraph 7#c72 and 7#f7 any changes to the processing1 transportation1 delivery1 or other postal operations anticipated as a result of the proposed closures and consolidations described in the plan4 7c7 ,plan submission revision ,not later than #abj days after the date of enactment of this ,act1 the plan shall be submitted to the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate and the ,committee on ,oversight and ,government ,reform of the ,house of ,representatives4 ,any revision to the plan shall be submitted not later than #ad days after such revision is adopted by the ,postal ,service4 ,,ii ,postal ,service ,governance ,a ,temporary ,governance ,authority #bja4 ,purposes 7a7 ,purposes ,the purposes of this subtitle are as follows3 7#a7 ,to eliminate budget deficits and cash shortages of the ,postal ,service through strategic financial planning1 sound budgeting1 accurate revenue forecasts1 and careful spending4 7#b7 ,to ensure that universal service1 as required by section #aja of title #ci1 ,united ,states ,code1 is maintained during the period of any fiscal emergency4 7#c7 ,to conduct necessary investigations and studies to determine the fiscal status and operational efficiency of the ,postal ,service4 7#d7 ,to assist the ,postal ,service in-- 7,a7 restructuring its organization and workforce to bring expenses in line with diminishing revenue and generate sufficient profits for capital investments and repayment of debt2 7,b7 meeting all fiscal obligations to the ,treasury of the ,united ,states2 and 7,c7 ensuring the appropriate and efficient delivery of postal services4 7#e7 ,to ensure the long-term financial1 fiscal1 and economic vitality and operational efficiency of the ,postal ,service4 7b7 ,reservation of powers ,nothing in this subtitle may be construed-- 7#a7 to relieve any obligation of the ,postal ,service to the ,treasury of the ,united ,states existing as of the date of enactment of this ,act2 or 7#b7 to limit the authority of ,congress to exercise legislative authority over the ,postal ,service4 #bjb4 ,establishment of the ,postal ,service ,financial ,responsibility and ,management ,assistance ,authority 7a7 ,establishment ,there is established1 in accordance with the provisions of this subtitle1 an entity to be known as the ,postal ,service ,financial ,responsibility and ,management ,assistance ,authority 7hereinafter in this subtitle referred to as the ,authority74 7b7 ,operations during the control period 7#a7 ,control period defined ,for the purposes of this subtitle1 the term control period means the period that commences on the date as of which the ,authority has at least #d members and terminates as of the date determined under paragraph 7#e74 7#b7 ,transfer of authorities and responsibilities ,effective as of the date on which the control period commences-- 7,a7 subsections 7a7 and 7b7 of section #bjb are repealed2 7,b7 the term of office of each of the #i ,governors 7appointed under the second sentence of section #bjb7;a77#a7 of title #ci1 ,united ,states ,code1 as last in effect before the date of enactment of this ,act7 shall terminate2 and 7,c7 the ,authority shall assume its responsibilities1 as set forth in section #bjf4 7#c7 ,treatment of certain executives 7,a7 ,definition ,for the purposes of this section1 the term ,level-,two ,postal ,service ,executive includes the ,postmaster ,general1 the ,deputy ,postmaster ,general1 and all the other officers and employees of the ,postal ,service in level two of the ,postal ,career ,executive ,service 7or the equivalent71 but does not include any officer or employee of the ,office of ,inspector ,general of the ,united ,states ,postal ,service4 7,b7 ,treatment ,notwithstanding any other provision of law or the provisions of any employment contract1 during the control period-- 7i7 all ,level-,two ,postal ,service ,executives shall serve at the pleasure of the ,authority2 7ii7 the duties and responsibilities of all ,level-,two ,postal ,service ,executives1 as well as the terms and conditions of their employment 7including their compensation71 shall be subject to determination or redetermination by the ,authority2 7iii7 total compensation of a ,level-,two ,postal ,service ,executive may not1 for the first full fiscal year occurring in such control period or any subsequent fiscal year commencing in such control period1 exceed the annual rate of basic pay payable for level ,i of the ,executive ,schedule under section #ecab of title #e1 ,united ,states ,code1 for that year2 for purposes of this clause1 the term total compensation means basic pay1 bonuses1 awards1 and all other monetary compensation2 7iv7 the percentage by which the rate of basic pay of a ,level-,two ,postal ,service ,executive is increased during any year may not exceed the percentage change in the ,consumer ,price ,index for ,all ,urban ,consumers1 unadjusted for seasonal variation1 for the most recent #ab-month period available1 except that1 in the case of a ,level-,two ,postal ,service ,executive who has had a significant change in job responsibilities1 a greater change shall be allowable if approved by the ,authority2 7v7 apart from basic pay1 a ,level-,two ,postal ,service ,executive may not be afforded any bonus1 award1 or other monetary compensation for any full fiscal year in the control period if expenditures of the ,postal ,service for such fiscal year exceeded revenues of the ,postal ,service for such fiscal year 7determined in accordance with generally accepted accounting principles72 and 7vi7 no deferred compensation may be paid1 accumulated1 or recognized in the case of any ,level-,two ,postal ,service ,executive1 with respect to any full year in the control period1 which is not generally paid1 accumulated1 or recognized in the case of employees of the ,united ,states 7outside of the ,postal ,service7 in level ,i of the ,executive ,schedule under section #ecab of title #e1 ,united ,states ,code1 with respect to such year4 7,c7 ,bonus authority ,section #cfhf of title #ci1 ,united ,states ,code1 shall1 during the period beginning on the commencement date of the control period and ending on the termination date of the control period-- 7i7 be suspended with respect to all ,level-,two ,postal ,service ,executives2 but 7ii7 remain in effect for all other officers and employees of the ,postal ,service otherwise covered by this section4 7#d7 ,certification requirement ,the control period may not terminate until after the ,authority1 with the concurrence of the ,secretary of the ,treasury and the ,director of the ,office of ,personnel ,management1 certifies to the ,director of the ,office of ,management and ,budget that-- 7,a7 for #b consecutive fiscal years 7occurring after the date of enactment of this ,act71 expenditures of the ,postal ,service did not exceed revenues of the ,postal ,service 7as determined in accordance with generally accepted accounting principles72 7,b7 the ,authority has approved a ,postal ,service financial plan and budget that shows expenditures of the ,postal ,service not exceeding revenues of the ,postal ,service 7as so determined7 for the fiscal year to which such budget pertains and each of the next #c fiscal years2 and 7,c7 the ,postal ,service financial plan and budget 7as referred to in subparagraph 7,b77 includes plans-- 7i7 for the repayment of any collateralized debt authorized by section #ejc2 and 7ii7 to properly fund ,postal ,service pensions and retiree health benefits in accordance with applicable provisions of title #e1 ,united ,states ,code4 7#e7 ,termination of control period 7,a7 ,termination date 7i7 ,general rule ,except as provided in clause 7ii71 the control period shall terminate #ahj days after the date on which the certification described in paragraph 7#d7 is made4 7ii7 ,alternative date 7,i7 ,authority ,the ,director of the ,office of ,management and ,budget may1 by written notice given to the ,authority within #ae days after the date on which the certification described in paragraph 7#d7 is made1 provide for an alternative termination date 7in lieu of the date that would otherwise apply under clause 7i774 7,,ii7 ,range ,an alternative date under this clause shall not apply unless such date occurs not less than #cj days after the date on which written notice under subclause 7,i7 is given and not later than #ahj days after the date on which the certification described in paragraph 7#d7 is made4 7,b7 ,public notice ,the ,authority shall cause to be published in the ,federal ,register-- 7i7 the date on which the certification described in paragraph 7#d7 is made1 not later than #a business day after the date on which such certification is made2 and 7ii7 the termination date of the control period1 not later than #af business days after the date on which the certification described in paragraph 7#d7 is made4 #bjc4 ,membership and qualification requirements 7a7 ,membership 7#a7 ,in general ,the ,authority shall consist of #e members appointed by the ,president who meet the qualifications described in subsection 7b71 except that the ,authority may take any action under this subtitle at any time after the ,president has appointed the initial #d of its members4 ,members of the ,authority shall report to the ,secretary of the ,treasury4 7#b7 ,recommendations ,of the #e members so appointed-- 7,a7 #a shall be appointed by the ,president taking into account any individuals recommended by the ,speaker of the ,house of ,representatives2 7,b7 #a shall be appointed by the ,president taking into account any individuals recommended by the majority leader of the ,senate2 7,c7 #a shall be appointed by the ,president taking into account any individuals recommended by the minority leader of the ,house of ,representatives2 7,d7 #a shall be appointed by the ,president taking into account any individuals recommended by the minority leader of the ,senate2 and 7,e7 #a shall be appointed by the ,president taking into account any individuals recommended by the ,comptroller ,general4 7#c7 ,political affiliation ,no more than #c members of the ,authority may be of the same political party4 7#d7 ,chair ,the ,president shall designate #a of the members of the ,authority as the ,chair of the ,authority4 7#e7 ,sense of ,congress regarding deadline for appointment ,it is the sense of ,congress that the ,president should appoint the members of the ,authority as soon as practicable after the date of enactment of this ,act1 but no later than #cj days after such date4 7#f7 ,term of service 7,a7 ,in general ,except as provided in subparagraph 7,b71 each member of the ,authority shall be appointed for a term of #c years4 7,b7 ,appointment for term following initial term ,as designated by the ,president at the time of appointment for the term immediately following the initial term1 of the members appointed for the term immediately following the initial term-- 7i7 #a member shall be appointed for a term of #a year2 7ii7 #b members shall be appointed for a term of #b years2 and 7iii7 #b members shall be appointed for a term of #c years4 7,c7 ,vacancies and succession ,any member of the ,authority appointed to fill a vacancy before the expiration of the term for which the predecessor of the member of the ,authority was appointed shall serve for the remainder of such term4 7,d7 ,removal ,the ,president may remove any member of the ,authority only for cause4 7,e7 ,compensation for service ,each member of the ,authority shall be paid for full-time service at a rate of pay equivalent to the rate of basic pay payable for level ,,iii of the ,executive ,schedule under section #ecad of title #e1 ,united ,states ,code4 7b7 ,qualification requirements 7#a7 ,in general ,an individual meets the qualifications for membership on the ,authority if the individual-- 7,a7 has significant knowledge and expertise in finance1 management1 and the organization or operation of businesses having more than #ejj employees2 and 7,b7 represents the public interest generally1 is not a representative of specific interests using or belonging to the ,postal ,service1 and does not have any business or financial interest in any enterprise in the private sector of the economy engaged in the delivery of mail matter4 7#b7 ,specific conditions ,an individual shall not be considered to satisfy paragraph 7#a77;,b7 if1 at any time during the #e-year period ending on the date of appointment1 such individual-- 7,a7 has been an officer1 employee1 or private contractor with the ,postal ,service1 ,united ,states ,postal ,service ,inspector ,general1 or the ,postal ,regulatory ,commission2 or 7,b7 has served as an employee or contractor of a labor organization representing employees of the ,postal ,service1 the ,united ,states ,postal ,service ,inspector ,general1 or the ,postal ,regulatory ,commission4 #bjd4 ,organization and staff 7a7 ,adoption of bylaws for conducting business ,as soon as practicable after the appointment of its members1 the ,authority shall adopt bylaws1 rules1 and procedures governing its activities under this subtitle1 including procedures for hiring experts and consultants4 ,upon adoption1 such bylaws1 rules1 and procedures shall be submitted by the ,authority to the ,postmaster ,general1 the ,president1 and ,congress4 7b7 ,executive director and staff 7#a7 ,executive director ,the ,authority shall have an ,executive ,director who shall be appointed by the ,chair with the consent of the ,authority4 ,the ,executive ,director shall be paid at a rate determined by the ,authority1 except that such rate may not exceed the rate of basic pay payable for level ,,iv of the ,executive ,schedule under section #ecae of title #e1 ,united ,states ,code4 7#b7 ,staff ,with the approval of the ,authority1 the ,executive ,director may appoint and fix the pay of such additional personnel as the ,executive ,director considers appropriate1 except that no individual appointed by the ,executive ,director may be paid at a rate greater than the rate of pay for the ,executive ,director4 ,personnel appointed under this paragraph shall serve at the pleasure of the ,executive ,director4 7#c7 ,inapplicability of certain civil service laws ,the ,executive ,director and staff of the ,authority may be appointed without regard to the provisions of title #e1 ,united ,states ,code1 governing appointments in the competitive service1 and paid without regard to the provisions of chapter #ea and subchapter ,,iii of chapter #ec of such title relating to classification and ,general ,schedule pay rates4 7#d7 ,staff of ,federal agencies ,upon request of the ,chair1 the head of any ,federal department or agency may detail1 on a reimbursable or nonreimbursable basis1 any of the personnel of such department or agency to the ,authority to assist it in carrying out its duties under this subtitle4 #bje4 ,funding 7a7 ,general rule ,there are authorized to be appropriated1 out of the ,postal ,service ,fund1 such sums as may be necessary for the ,authority4 ,in requesting an appropriation under this section for a fiscal year1 the ,authority shall prepare and submit to the ,congress under section #bjji of title #ci1 ,united ,states ,code1 a budget of the ,authority's expenses1 including expenses for facilities1 supplies1 compensation1 and employee benefits1 not to exceed #aj1jjj1jjj4 7b7 ,initial rule ,notwithstanding any other provision of this section1 effective as of the date on which at least #d members of the ,authority have been appointed1 there shall be available to the ,authority1 out of the ,postal ,service ,fund1 such sums as the ,authority may require in order to carry out this subtitle1 not to exceed the amount equal to the product obtained by multiplying-- 7#a7 the dollar amount specified in subsection 7a71 times 7#b7 a fraction-- 7,a7 the numerator of which is the number of months remaining in the fiscal year as of the date on which at least #d members of the ,authority have been appointed 7rounding any fraction of a month to the next highest whole number72 and 7,b7 the denominator of which is #ab4 7c7 ,amendment to section #bjji ,section #bjji is amended in the next to last sentence-- 7#a7 by striking 1 and 7#c7 and inserting 1 7#c72 and 7#b7 by striking the period and inserting 1 and 7#d7 the ,postal ,service ,financial ,responsibility and ,management ,assistance ,authority requests to be appropriated1 out of the ,postal ,service ,fund1 under section #bje of the ,postal ,reform ,act of #bjac44 #bjf4 ,responsibilities and powers ,the exercise of the powers of the ,postal ,service shall be directed by the ,authority1 including-- 7#a7 all duties and responsibilities ascribed to the ,governors and the ,board of ,governors by title #ci1 ,united ,states ,code2 7#b7 determining the overall strategies of the ,postal ,service2 7#c7 hiring1 monitoring1 compensating1 and1 when necessary1 replacing senior management at the level of vice president and higher1 as well as ensuring adequate succession planning for these positions2 7#d7 approving major policies1 particularly those that have an important effect on the ,postal ,service's financial position and the provision of universal postal service2 7#e7 approving corporate budgets1 financial and capital plans1 operational and service performance standards and targets1 human resource strategies1 collective-bargaining strategies1 negotiation parameters1 collective-bargaining agreements1 and the compensation structure for nonbargaining employees2 7#f7 formulating and communicating organizational policy and positions on legislative and other public policy matters to ,congress and the public2 and 7#g7 carrying out any responsibility1 not otherwise listed in this section1 that was the responsibility of the ,board of ,governors of the ,postal ,service at any time during the #e-year period ending on the date of enactment of this ,act4 #bjg4 ,development of financial plan and budget for the solvency of the ,postal ,service 7a7 ,development of financial plan and budget ,for each fiscal year during a control period1 the ,postmaster ,general shall submit to the ,authority1 by ,august #a before the start of such fiscal year1 a financial plan and budget for such fiscal year for the long-term solvency of the ,postal ,service1 except that1 for fiscal year #bjad1 the deadline for submission of the plan and budget under this subsection shall be the #cjth day after a majority of the ,authority take office4 ,if a majority of the ,authority do not take office before ,august #a1 #bjad1 the requirement for a financial plan and budget under this subsection for fiscal year #bjad is waived4 7b7 ,contents of financial plan and budget ,a financial plan and budget under this section for a fiscal year shall specify the budget for the ,postal ,service as required by section #bjji of title #ci1 ,united ,states ,code1 for the applicable fiscal year and each of the next #c fiscal years1 in accordance with the following requirements3 7#a7 ,the financial plan and budget shall meet the requirements described in subsection 7c7 to promote the financial stability of the ,postal ,service4 7#b7 ,the financial plan and budget shall-- 7,a7 include the ,postal ,service's annual budget program 7under section #bjji of title #ci1 ,united ,states ,code7 and the ,postal ,service's plan commonly referred to as its ,integrated ,financial ,plan2 7,b7 describe lump-sum expenditures by all categories traditionally used by the ,postal ,service2 7,c7 describe capital expenditures 7together with a schedule of projected capital commitments and cash outlays of the ,postal ,service and proposed sources of funding72 7,d7 contain estimates of overall debt 7both outstanding and anticipated to be issued72 and 7,e7 contain cash flow and liquidity forecasts for the ,postal ,service at such intervals as the ,authority may require4 7#c7 ,the financial plan and budget shall include a statement describing methods of estimations and significant assumptions4 7#d7 ,the financial plan and budget shall include any other provisions and shall meet such other criteria as the ,authority considers appropriate to meet the purposes of this subtitle1 including provisions for-- 7,a7 changes in personnel policies and levels for each component of the ,postal ,service2 and 7,b7 management initiatives to promote productivity1 improvement in the delivery of services1 or cost savings4 7c7 ,requirements ,to promote financial stability 7#a7 ,in general ,the requirements to promote the solvency and financial stability of the ,postal ,service applicable to the financial plan and budget for a fiscal year are as follows3 7,a7 ,for fiscal year #bjaf and each subsequent fiscal year during a control period1 budgeted expenditures of the ,postal ,service for the fiscal year involved may not exceed budgeted revenues of the ,postal ,service for the fiscal year involved4 7,b7 ,in each fiscal year where a financial plan and budget must be developed1 the financial plan and budget shall provide for continuous1 substantial progress toward long-term fiscal solvency of the ,postal ,service4 7,c7 ,the financial plan and budget shall provide for the orderly repayment of any outstanding obligations authorized under section #ejc4 7,d7 ,the financial plan and budget shall assure the continuing long-term solvency of the ,postal ,service1 as indicated by factors such as the efficient management of the ,postal ,service's workforce and the effective provision of services by the ,postal ,service4 ,in so doing1 the financial plan and budget shall consider-- 7i7 the legal authority of the ,postal ,service2 7ii7 the changes in the legal authority and responsibilities of the ,postal ,service under this ,act2 7iii7 any cost savings that the ,postal ,service anticipates will be achieved through negotiations with employees of the ,postal ,service2 7iv7 projected changes in mail volume2 7v7 the impact of regulations the ,postal ,service was required by law to promulgate2 7vi7 projected changes in the number of employees needed to carry out the responsibilities of the ,postal ,service2 and 7vii7 the long-term capital needs of the ,postal ,service1 including the need to maintain1 repair1 and replace facilities and equipment4 7#b7 ,application of sound budgetary practices ,in meeting the requirements described in paragraph 7#a7 with respect to a financial plan and budget for a fiscal year1 the ,postal ,service shall apply sound budgetary practices1 including reducing costs and other expenditures1 improving productivity1 increasing revenues1 or a combination of such practices4 7#c7 ,assumptions based on current law ,in meeting the requirements described in paragraph 7#a7 with respect to a financial plan and budget for a fiscal year1 the ,postal ,service shall base estimates of revenues and expenditures on ,federal law as in effect at the time of the preparation of such financial plan and budget4 7d7 ,definition ,for the purposes of this section1 the term long-term solvency means the ability of the ,postal ,service over the long term to pay debts and meet expenses1 including the ability to perform maintenance and repairs1 make investments1 and maintain financial reserves1 as necessary to fulfill the requirements and comply with the policies of title #ci1 ,united ,states ,code1 and other obligations of the ,postal ,service4 #bjh4 ,process for submission and approval of financial plan and budget 7a7 ,review by the authority ,upon receipt of a financial plan and budget required by section #bjg1 the ,authority shall promptly review such financial plan and budget4 ,in conducting the review1 the ,authority may request any additional information it considers necessary and appropriate to carry out its duties4 7b7 ,approval of postmaster general's financial plan and budget 7#a7 ,in general ,if the ,authority determines that the final financial plan and budget for the fiscal year submitted by the ,postmaster ,general under subsection 7a7 meets the requirements of section #bjg-- 7,a7 the ,authority shall approve the financial plan and budget and shall provide the ,postmaster ,general1 the ,president1 the ,committee on ,homeland ,security and ,governmental ,affairs in the ,senate1 and the ,committee on ,oversight and ,government ,reform in the ,house of ,representatives with a notice certifying its approval2 and 7,b7 the ,postmaster ,general shall promptly submit the annual budget program for the relevant fiscal year to the ,office of ,management and ,budget pursuant to section #bjji of title #ci1 ,united ,states ,code4 7#b7 ,deemed approval after #cj days ,if the ,authority has not provided the ,postmaster ,general1 the ,president1 and ,congress with a notice certifying approval under paragraph 7#a77;,a7 or a statement of disapproval under subsection 7c7 before the expiration of the #cj-;day period which begins on the date the ,authority receives the financial plan and budget from the ,postmaster ,general under subsection 7a71 the ,authority shall be deemed to have approved the financial plan and budget and to have provided the ,postmaster ,general1 the ,president1 the ,committee on ,homeland ,security and ,governmental ,affairs in the ,senate1 and the ,committee on ,oversight and ,government ,reform in the ,house of ,representatives with the notice certifying approval under paragraph 7#a77;,a74 7c7 ,disapproval of postmaster general's financial plan and budget 7#a7 ,in general ,if1 after reviewing the financial plan and budget for a fiscal year submitted by the ,postmaster ,general under subsection 7a7 in accordance with the procedures described in this section1 the ,authority determines that the revised final financial plan and budget does not meet the applicable requirements under section #bjg1 the ,authority shall-- 7,a7 disapprove the financial plan and budget2 7,b7 provide the ,postmaster ,general1 the ,president1 and ,congress with a statement containing the reasons for such disapproval and describing the amount of any shortfall in the financial plan and budget2 and 7,c7 approve and recommend a financial plan and budget for the ,postal ,service which meets the applicable requirements under section #bjg1 and submit such financial plan and budget to the ,postmaster ,general1 the ,president1 the ,committee on ,homeland ,security and ,governmental ,affairs in the ,senate1 and the ,committee on ,oversight and ,government ,reform in the ,house of ,representatives4 7#b7 ,submission to ,,omb ,upon receipt of the recommended financial plan and budget under paragraph 7#a77;,c71 the ,postmaster ,general shall promptly submit the recommended annual budget program to the ,office of ,management and ,budget pursuant to section #bjji of title #ci1 ,united ,states ,code4 7d7 ,deadline for transmission of financial plan and budget by the ,authority ,notwithstanding any other provision of this section1 not later than ,september #cjth before the start of each fiscal year for which a financial plan and budget is required1 the ,authority shall-- 7#a7 provide ,congress with a notice certifying its approval of the ,postmaster ,general's financial plan and budget for the fiscal year under subsection 7c72 or 7#b7 submit to ,congress an approved and recommended financial plan and budget developed by the ,authority for the fiscal year under subsection 7c77#a77;,c74 7e7 ,revisions to financial plan and budget 7#a7 ,permitting postmaster general to submit revisions ,the ,postmaster ,general may submit proposed revisions to the financial plan and budget for the control period to the ,authority at any time during the fiscal year4 7#b7 ,process for review1 approval1 disapproval1 and postmaster general action ,the procedures described in subsections 7b71 7c71 and 7d7 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 budget4 7f7 ,requirements of the ,authority 7#a7 ,in general ,it shall be the policy of the ,authority to direct the ,postal ,service to take any action necessary and permitted by law to ensure that the approved financial plan and budget is fully implemented over the course of each fiscal year and that the budgetary goals for expenses and revenues are achieved4 7#b7 ,additional fiduciary actions ,in addition to paragraph 7#a71 the ,authority shall take any additional actions it deems necessary and permitted by law to ensure the requirements of the financial plan and budget are achieved in practice so that the total revenue of the ,postal ,service exceeds its total operating expenses for the full fiscal year not later than fiscal year #bjaf and each fiscal year thereafter4 ,such actions may include accelerating the conversion of door delivery points to more cost-effective delivery methods1 the consolidation of additional mail processing facilities1 transition to a #b-;day or #c-;day ,first-,class ,mail delivery standard for the continental ,united ,states1 and any other action consistent with this ,act and the provisions of title #ci1 ,united ,states ,code4 ,for the purposes of this paragraph1 the term total operating expenses refers to all categories of expenses identified under that term in the ,report on ,form #aj-,k filed by the ,postal ,service for fiscal year #bjab4 #bji4 ,dissolution of the ,authority2 reconstitution of the ,board of ,governors 7a7 ,in general ,effective as of the date on which the control period terminates 7as determined under section #bjb7;b77#e77-- 7#a7 the ,authority is dissolved2 and 7#b7 section #bjb of title #ci1 ,united ,states ,code 7as amended by section #bjb7;b77#b77;,a7 of this ,act7 is amended by inserting after the section heading the following3 7a7 7#a7 ,the exercise of the power of the ,postal ,service shall be directed by a ,board of ,governors composed of #e members appointed in accordance with this section4 ,the members1 to be known as ,governors1 shall be appointed by the ,president1 by and with the advice and consent of the ,senate4 ,not more than #c of the ,governors may be adherents of the same political party4 ,the ,governors shall elect a ,chairman from among the individual ,governors4 ,the ,governors shall represent the public interest generally1 and shall be chosen solely on the basis of their experience in the field of public administration1 law1 or accounting1 or on their demonstrated ability in managing organizations or corporations 7in either the public or private sector7 of substantial size2 except that at least #c of the ,governors shall be chosen solely on the basis of their demonstrated ability in managing organizations or corporations 7in either the public or private sector7 that employ at least #aj1jjj employees4 ,the ,governors shall not be representatives of specific interests using the ,postal ,service1 and may be removed only for cause4 ,each ,governor shall receive a salary of #cj1jjj a year plus #cjj a day for not more than #db days of meetings each year and shall be reimbursed for travel and reasonable expenses incurred in attending meetings of the ,board4 ,nothing in the preceding sentence shall be construed to limit the number of days of meetings each year to #db days4 7#b7 ,in selecting the individuals described in paragraph 7#a7 for nomination for appointment to the position of ,governor1 the ,president should consult with the ,speaker of the ,house of ,representatives1 the minority leader of the ,house of ,representatives1 the majority leader of the ,senate1 and the minority leader of the ,senate4 7#c7 ,not later than #fj days after the end of each fiscal year1 the ,board of ,governors shall submit an itemized report describing all travel and reimbursable business travel expenses paid to each ,governor when performing ,board duties to the ,committee on ,oversight and ,government ,reform of the ,house of ,representatives and the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate4 ,the report submitted under this paragraph shall include a detailed justification for any travel or reimbursable business travel expense that deviates from the ,board's travel and reimbursable business travel expense policies and guidelines under paragraph 7#a74 7b7 7#a7 ,the terms of the #e ,governors shall be #g years1 except that-- 7,a7 upon the reconstitution of the ,board of ,governors pursuant to the ,postal ,reform ,act of #bjac-- 7i7 the #e members last comprising the ,postal ,service ,financial ,responsibility and ,management ,assistance ,authority before the termination of the control period 7as defined in section #bjb7;b77#a7 of the ,postal ,reform ,act of #bjac7 shall become the initial members of the reconstituted ,board of ,governors2 and 7ii7 the term of each of the #e respective individuals under clause 7i7 shall expire at the end of the term which would have applied with respect to that individual1 if-- 7,i7 the control period 7as so defined7 had not terminated2 and 7,,ii7 such individual had remained a member of the ,postal ,service ,financial ,responsibility and ,management ,assistance ,authority2 and 7,b7 the terms of the ,governors first taking office after the initial ,governors of the reconstituted ,board 7as described in subparagraph 7,a77 shall be as fixed by the ,president at the time of their appointment1 except that each such term-- 7i7 shall be for a period of years not less than #c years and not more than #g years2 and 7ii7 shall be fixed such that the term of not more than #a ,governor is thereafter scheduled to expire in any calendar year 7determined disregarding the term of an initial ,governor expiring as described in subparagraph 7,a77ii774 7#b7 ,any ,governor appointed to fill a vacancy before the expiration of the term for which his predecessor was appointed shall serve for the remainder of such term4 ,a ,governor may continue to serve after the expiration of his term until his successor has qualified1 but not to exceed #a year4 7#c7 ,no person may serve more than #ad years as a ,governor4 ,for purposes of the preceding sentence1 there shall be taken into account any period served as a member of-- 7,a7 the ,postal ,service ,financial ,responsibility and ,management ,assistance ,authority2 or 7,b7 the ,board of ,governors1 as constituted before the start of the control period4 4 7b7 ,conforming amendments 7#a7 ,section #ajb7c7 is amended by striking #i and inserting #e2 and 7#b7 ,section #bje7;c7 is amended by striking all after present1 and and inserting an absolute majority of the ,governors in office shall constitute a quorum for the transaction of business by the ,board44 ,b ,other ,matters #baa4 ,appointment of the ,postal ,service ,inspector ,general 7a7 ,appointment of ,inspector ,general of the ,postal ,service by ,president ,the ,inspector ,general ,act of #aigh 7#e ,u4,s4,c4 ,app47 is amended-- 7#a7 in section #h;,g-- 7,a7 in subsection 7a7-- 7i7 in paragraph 7#b71 by striking the ,postal ,regulatory ,commission1 and the ,united ,states ,postal ,service and inserting and the ,postal ,regulatory ,commission2 7ii7 in paragraph 7#c71 by striking subsection 7h77#a7 and inserting subsection 7g77#a72 and 7iii7 in paragraph 7#d7-- 7,i7 in the matter preceding subparagraph 7,a71 by striking subsection 7h77#a7 and inserting subsection 7g77#a72 7,,ii7 by striking subparagraph 7,b72 and 7,,iii7 by redesignating subparagraphs 7,c7 through 7,h7 as subparagraphs 7,b7 through 7,g71 respectively2 7,b7 in subsection 7c71 by striking ,except as provided under subsection 7f7 of this section1 the and inserting ,the2 7,c7 by striking subsection 7f72 and 7,d7 by redesignating subsections 7g7 and 7h7 as subsections 7f7 and 7g71 respectively2 7#b7 by inserting after section #h,l the following3 #h,m4 ,special provisions concerning the ,inspector ,general of the ,united ,states ,postal ,service 7a7 ,oversight of ,postal ,inspection ,service ,in carrying out the duties and responsibilities specified in this ,act1 the ,inspector ,general of the ,united ,states ,postal ,service 7in this section referred to as the ,inspector ,general7 shall have oversight responsibility for all activities of the ,postal ,inspection ,service1 including any internal investigation performed by the ,postal ,inspection ,service4 ,the ,chief ,postal ,inspector shall promptly report the significant activities being carried out by the ,postal ,inspection ,service to such ,inspector ,general4 7b7 ,supervision2 additional duties and responsibilities2 report 7#a7 ,authority1 direction1 and control 7,a7 ,audits1 investigations1 subpoenas ,the ,inspector ,general shall be under the authority1 direction1 and control of the ,governors with respect to audits or investigations1 or the issuance of subpoenas1 which require access to sensitive information concerning-- 7i7 ongoing civil or criminal investigations or proceedings2 7ii7 undercover operations2 7iii7 the identity of confidential sources1 including protected witnesses2 7iv7 intelligence or counterintelligence matters2 or 7v7 other matters the disclosure of which would constitute a serious threat to national security4 7,b7 ,authority of ,governors ,with respect to the information described under subparagraph 7,a71 the ,governors may prohibit the ,inspector ,general from carrying out or completing any audit or investigation1 or from issuing any subpoena1 after such ,inspector ,general has decided to initiate1 carry out1 or complete such audit or investigation or to issue such subpoena1 if the ,governors determine that such prohibition is necessary to prevent the disclosure of any information described under subparagraph 7,a7 or to prevent the significant impairment to the national interests of the ,united ,states4 7,c7 ,notice required ,if the ,governors exercise any power under subparagraph 7,a7 or 7,b71 the ,governors shall notify the ,inspector ,general in writing stating the reasons for such exercise4 ,within #cj days after receipt of any such notice1 the ,inspector ,general shall transmit a copy of such notice to the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate and the ,committee on ,oversight and ,government ,reform of the ,house of ,representatives1 and to other appropriate committees or subcommittees of the ,congress4 7#b7 ,additional duties and responsibilities ,in carrying out the duties and responsibilities specified in this ,act1 the ,inspector ,general-- 7,a7 may initiate1 conduct1 and supervise such audits and investigations in the ,united ,states ,postal ,service as the ,inspector ,general considers appropriate2 and 7,b7 shall give particular regard to the activities of the ,postal ,inspection ,service with a view toward avoiding duplication and insuring effective coordination and cooperation4 7#c7 ,report required ,any report required to be transmitted by the ,governors to the appropriate committees or subcommittees of the ,congress under section #e7;d7 shall also be transmitted1 within the seven-day period specified under such section1 to the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate and the ,committee on ,oversight and ,government ,reform of the ,house of ,representatives4 7c7 ,governors defined ,as used in this section1 the term ,governors has the meaning given such term by section #ajb7c7 of title #ci1 ,united ,states ,code4 7d7 ,authorization of appropriations ,there are authorized to be appropriated1 out of the ,postal ,service ,fund1 such sums as may be necessary for the ,office of ,inspector ,general of the ,united ,states4 2 and 7#c7 in section #ab-- 7,a7 in paragraph 7#a71 by striking or the ,federal ,cochairpersons of the ,commissions established under section #aecja of title #dj1 ,united ,states ,code and inserting the ,federal ,cochairpersons of the ,commissions established under section #aecja of title #dj1 ,united ,states ,code2 or the ,board of ,governors of the ,united ,states ,postal ,service2 and 7,b7 in paragraph 7#b71 by striking or the ,commissions established under section #aecja of title #dj1 ,united ,states ,code and inserting the ,commissions established under section #aecja of title #dj1 ,united ,states ,code1 or the ,united ,states ,postal ,service4 7b7 ,technical and conforming amendments ,title #ci1 ,united ,states ,code1 is amended-- 7#a7 in section #ajb7d71 by striking section #bjb7;e7 of this title and inserting section #c of the ,inspector ,general ,act of #aigh 7#e ,u4,s4,c4 ,app472 7#b7 in section #ajja7;b71 in the first sentence1 by inserting and section #c of the ,inspector ,general ,act of #aigh 7#e ,u4,s4,c4 ,app47 after #ajja7;c7 of this title2 7#c7 in section #ajjc7;a71 by striking #h;,g and inserting #h,m2 7#d7 in section #ajje7;a77#c71 by inserting and section #c of the ,inspector ,general ,act of #aigh 7#e ,u4,s4,c4 ,app47 after #ajja7;c7 of this title2 7#e7 in section #bjjc7;e7 by striking #h;,g7f7 and inserting #h,m7d72 and 7#f7 in section #bjji by striking #h;,g7f7 and inserting #h,m7d74 7c7 ,applicability 7#a7 ,in general ,the amendments made by this section shall apply with respect to the first individual appointed as ,inspector ,general of the ,postal ,service after the date of enactment of this ,act4 7#b7 ,rule of construction ,nothing in this ,act may be construed to alter the authority or the length of the term of the individual serving as ,inspector ,general of the ,postal ,service on the date of enactment of this ,act4 #bab4 ,membership of the ,board of ,governors 7a7 ,postmaster ,general ,section #bjb7;c7 is amended to read as follows3 7c7 ,the ,governors shall appoint and shall have the power to remove the ,postmaster ,general4 ,his pay and term of service shall be fixed by the ,governors4 4 7b7 ,deputy ,postmaster ,general ,section #bjb7;d7 is amended to read as follows3 7d7 ,the ,governors shall appoint and shall have the power to remove the ,deputy ,postmaster ,general4 ,his term of service shall be fixed by the ,governors and the ,postmaster ,general and his pay by the ,governors4 4 ,,iii ,postal ,service ,workforce #cja4 ,applicability of reduction-in-force procedures ,section #abjf is amended by adding at the end the following3 7d7 ,collective-bargaining agreements between the ,postal ,service and bargaining representatives recognized under section #abjc1 ratified after the date of enactment of this subsection1 shall contain no provision restricting the applicability of reduction-in-force procedures under title #e with respect to members of the applicable bargaining unit4 7e7 7#a7 ,if a collective-bargaining agreement between the ,postal ,service and bargaining representatives recognized under section #abjc1 ratified after the date of enactment of this subsection1 includes reduction-in-force procedures which can be applied in lieu of reduction-in-force procedures under title #e1 the ,postal ,service may1 in its discretion1 apply with respect to members of the applicable bargaining unit-- 7,a7 the alternative procedures 7or1 if #b or more are agreed to1 #a of the alternative procedures72 or 7,b7 the reduction-in-force procedures under title #e4 7#b7 ,in no event may1 if procedures for the resolution of a dispute or impasse arising in the negotiation of a collective-bargaining agreement 7whether through binding arbitration or otherwise7 are invoked under this chapter1 the award or other resolution reached under such procedures provide for the elimination of1 or the substitution of any alternative procedures in lieu of1 reduction-in-force procedures under title #e4 4 #cjb4 ,postal ,service ,,fehbp and ,,fegli funding requirements ,section #ajje7;d77#a7 is amended-- 7#a7 in the first sentence1 by striking chapters #hc and #hd and inserting chapters #hc1 #hd1 #hg1 and #hi2 and 7#b7 by adding at the end the following3 ,beginning not later than ,january #a1 #bjbj1 the ,postal ,service shall withhold from pay and shall pay into the ,employees ,life ,insurance ,fund and the ,employee ,health ,benefits ,fund the amounts specified in or determined under chapters #hg and #hi1 respectively44 #cjc4 ,repeal of provision relating to overall value of fringe benefits ,the last sentence of section #ajje7;f7 is repealed4 #cjd4 ,modifications relating to determination of pay comparability 7a7 ,postal policy ,the first sentence of section #aja7;c7 is amended-- 7#a7 by inserting total before rates and types of compensation2 and 7#b7 by inserting entire before private sector4 7b7 ,employment policy ,the second sentence of section #ajjc7;a7 is amended-- 7#a7 by inserting total before compensation and benefits each place it appears2 and 7#b7 by inserting entire before private sector4 7c7 ,considerations ,for purposes of the amendments made by this section1 any determination of total rates and types of compensation or total compensation and benefits shall1 at a minimum1 take into account pay1 health benefits1 retirement benefits1 life insurance benefits1 leave1 holidays1 and continuity and stability of employment4 #cje4 ,last-best-final-offer negotiations ,section #abjg is amended by striking subsections 7c7 and 7d7 and inserting the following3 7c7 7#a7 ,if no agreement is reached within #cj days after the appointment of a mediator under subsection 7b71 or if the parties decide upon arbitration before the expiration of the #cj-;day period1 an arbitration board shall be established consisting of #a member selected by the ,postal ,service 7from the list under paragraph 7#b771 #a member selected by the bargaining representative of the employees 7from the list under paragraph 7#b771 and the mediator appointed under subsection 7b74 7#b7 ,upon receiving a request from either of the parties referred to in paragraph 7#a71 the ,director of the ,federal ,mediation and ,conciliation ,service shall provide a list of not less than #i individuals who are well qualified to serve as neutral arbitrators4 ,each person listed shall be an arbitrator of nationwide reputation and professional nature1 a member of the ,national ,academy of ,arbitrators1 and an individual whom the ,director has determined to be willing and available to serve4 ,if1 within #g days after the list is provided1 either of the parties has not selected an individual from the list1 the ,director shall make the selection within #c days4 7#c7 ,the arbitration board shall give the parties a full and fair hearing1 including an opportunity to present evidence in support of their claims1 and an opportunity to present their case in person1 by counsel1 or by other representative as they may elect4 ,the hearing shall be concluded no more than #dj days after the arbitration board is established4 7#d7 ,no more than #g days after the hearing is concluded1 each party shall submit to the arbitration board #b offer packages1 each of which packages shall specify the terms of a proposed final agreement4 7#e7 ,if no agreement is reached within #g days after the last day allowable for the submission of an offer package under paragraph 7#d71 each party shall submit to the arbitration board a single1 final offer package specifying the terms of a proposed final agreement4 7#f7 ,no later than #c days after the submission of the final offer packages under paragraph 7#e71 the arbitration board shall select #a of those packages as its tentative award1 subject to paragraph 7#g74 7#g7 7,a7 ,the arbitration board may not select a final offer package under paragraph 7#f7 unless it satisfies each of the following3 7i7 ,the offer complies with the requirements of sections #aja7;c7 and #ajjc7;a74 7ii7 ,the offer takes into account the current financial condition of the ,postal ,service4 7iii7 ,the offer takes into account the long-term financial condition of the ,postal ,service4 7,b7 7i7 ,if the board unanimously determines1 based on clear and convincing evidence presented during the hearing under paragraph 7#c71 that neither final offer package satisfies the conditions set forth in subparagraph 7,a71 the board shall by majority vote-- 7,i7 select the package that best meets such conditions2 and 7,,ii7 modify the package so selected to the minimum extent necessary to satisfy such conditions4 7ii7 ,if modification 7as described in subparagraph 7,b77i77,,ii77 is necessary1 the board shall have an additional #g days to render its tentative award under this subparagraph4 7#h7 ,the parties may negotiate a substitute award to replace the tentative award selected under paragraph 7#f7 or rendered under paragraph 7#g7 7as the case may be74 ,if no agreement on a substitute award is reached within #aj days after the date on which the tentative award is so selected or rendered1 the tentative award shall become final4 7#i7 ,the arbitration board shall review any substitute award negotiated under paragraph 7#h7 to determine if it satisfies the conditions set forth in paragraph 7#g77;,a74 ,if the arbitration board1 by a unanimous vote taken within #c days after the date on which the agreement on the substitute award is reached under paragraph 7#h71 determines that the substitute award does not satisfy such conditions1 the tentative award shall become final4 ,in the absence of a vote1 as described in the preceding sentence1 the substitute agreement shall become final4 7#aj7 ,if1 under paragraph 7#e71 neither party submits a final offer package by the last day allowable under such paragraph1 the arbitration board shall develop and issue a final award no later than #bj days after such last day4 7#aa7 ,a final award or agreement under this subsection shall be conclusive and binding upon the parties4 7#ab7 ,costs of the arbitration board and mediation shall be shared equally by the ,postal ,service and the bargaining representative4 7d7 ,in the case of a bargaining unit whose recognized collective-bargaining representative does not have an agreement with the ,postal ,service1 if the parties fail to reach agreement within #ij days after the commencement of collective bargaining1 a mediator shall be appointed in accordance with the provisions of subsection 7b71 unless the parties have previously agreed to another procedure for a binding resolution of their differences4 ,if the parties fail to reach agreement within #ahj days after the commencement of collective bargaining1 an arbitration board shall be established to provide conclusive and binding arbitration in accordance with the provisions of subsection 7c74 4 #cjf4 ,postal ,service workers' compensation reform 7a7 ,in general ,effective #ab months after the triggering date of this section 7as defined in subsection 7e77#b771 section #ajje is amended by striking subsection 7c7 and inserting the following3 7c7 7#a7 ,for purposes of this subsection-- 7,a7 the term postal employee means an officer or employee of the ,postal ,service or the former ,post ,office ,department2 and 7,b7 the term retirement age has the meaning given such term under section #baf7l77#a7 of the ,social ,security ,act4 7#b7 ,the ,postal ,service shall design and administer a program for the payment of benefits for the disability or death of an individual resulting from personal injury sustained while in the performance of such individual's duties as a postal employee4 7#c7 ,the program under this subsection-- 7,a7 shall be designed by the ,postal ,service in consultation with appropriate employee representatives2 7,b7 shall not provide for any amount payable to a disabled postal employee to be augmented on the basis of number of dependents2 and 7,c7 shall include provisions for automatic transition1 upon attainment of retirement age1 to benefits involving1 coordinated with1 or otherwise determined by reference to retirement benefits4 4 7b7 ,recommendations ,not later than #f months after the triggering date-- 7#a7 the ,office of ,personnel ,management shall submit to the appropriate committees of ,congress recommendations for any legislation or administrative actions which the ,office considers necessary to carry out the purposes of this section with respect to any matter within the jurisdiction of the ,office1 including any amendments which may be necessary with respect to chapter #hg or #hi of title #e1 ,united ,states ,code2 and 7#b7 the ,postal ,service shall submit to the appropriate committees of ,congress recommendations for any legislation which the ,postal ,service considers necessary to carry out the purposes of this section with respect to any matter within the jurisdiction of the ,postal ,service4 7c7 ,notification requirements ,not later than #i months after the triggering date1 the ,postal ,service shall submit to the appropriate committees of ,congress and shall cause to be published in the ,federal ,register a description of the program proposed by the ,postal ,service for implementation under section #ajje7;c7 of title #ci1 ,united ,states ,code1 as amended by subsection 7a74 ,included in the notification provided under the preceding sentence shall be-- 7#a7 a detailed statement of the benefits to be offered and the persons eligible to receive those benefits2 7#b7 provisions to ensure an orderly transition to the system proposed to be implemented2 and 7#c7 such other information as the ,postal ,service considers appropriate4 7d7 ,commencement date ,the program under section #ajje7;c7 of title #ci1 ,united ,states ,code1 as amended by subsection 7a7-- 7#a7 shall begin to operate on such date as the ,postmaster ,general shall determine1 except that such date shall be a date occurring-- 7,a7 not earlier than #ab months after the triggering date2 and 7,b7 not later than #bd months after the triggering date2 and 7#b7 shall apply with respect to amounts payable for periods beginning on or after the date on which the program begins to operate1 irrespective of date of the disability or death to which such amounts relate4 7e7 ,condition precedent 7#a7 ,in general ,the preceding provisions of this section shall not become effective until the date on which the ,postal ,service ,financial ,responsibility and ,management ,assistance ,authority 7established under section #bjb7-- 7,a7 makes a written determination that conditions warrant their implementation2 and 7,b7 submits such written determination to the ,postal ,service1 the ,office of ,personnel ,management1 and the appropriate committees of ,congress4 7#b7 ,triggering date ,for purposes of this section1 the term triggering date of this section or triggering date means the date described in paragraph 7#a74 7f7 ,appropriate committees of ,congress defined ,for purposes of this section1 the term appropriate committees of ,congress means-- 7#a7 the ,committee on ,oversight and ,government ,reform of the ,house of ,representatives2 and 7#b7 the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate4 #cjg4 ,reporting requirement 7a7 ,in general ,chapter #aj is amended by adding at the end the following3 #ajab4 ,official time reporting 7a7 ,not later than ,march #ca of each calendar year1 the ,postal ,service1 in consultation with the ,office of ,management and ,budget1 shall submit to each ,house of ,congress a report on the operation of this section during the fiscal year last ending before the start of such calendar year4 7b7 ,each report by the ,postal ,service under this subsection shall include1 with respect to the fiscal year described in subsection 7a71 at least the following information3 7#a7 ,the total amount of official time granted to employees4 7#b7 ,the average amount of official time expended per bargaining unit employee4 7#c7 ,the specific types of activities or purposes for which official time was granted1 and the impact which the granting of such official time for such activities or purposes had on agency operations4 7#d7 ,the total number of employees to whom official time was granted1 and1 of that total1 the number who were not engaged in any activities or purposes except activities or purposes involving the use of official time4 7#e7 ,the total amount of compensation 7including fringe benefits7 afforded to employees in connection with activities or purposes for which they were granted official time4 7c7 ,all information included in a report by the ,postal ,service under this subsection with respect to a fiscal year-- 7#a7 shall be shown both for each supervisory and managerial organization recognized under section #ajjd and labor organization recognized under section #abjc and for all organizations together2 and 7#b7 shall be accompanied by the corresponding information 7submitted by the ,postal ,service in its report under this subsection7 for the fiscal year before the fiscal year to which such report pertains1 together with appropriate comparisons and analyses4 7d7 ,for purposes of this subsection1 the term official time means any period of time1 regardless of ,postal ,service nomenclature-- 7#a7 which may be granted to an employee under this chapter or chapter #ab 7including a collective-bargaining agreement entered into under chapter #ab7 to perform representational or consultative functions2 and 7#b7 during which the employee would otherwise be in a duty status4 4 7b7 ,applicability ,the amendment made by subsection 7a7 shall be effective beginning with the report which1 under the provisions of such amendment1 is first required to be submitted by the ,postal ,service to each ,house of ,congress by a date which occurs at least #f months after the date of the enactment of this ,act4 7c7 ,clerical amendment ,the table of sections for chapter #aj is amended by adding at the end the following3 #ajab4 ,official time reporting4 4 ,,iv ,postal ,service ,revenue #dja4 ,adequacy1 efficiency1 and fairness of postal rates 7a7 ,in general ,section #cfbb7;d7 is amended-- 7#a7 in paragraph 7#a7-- 7,a7 by redesignating subparagraphs 7,b7 through 7,e7 as subparagraphs 7,d7 through 7,g71 respectively2 and 7,b7 by inserting after subparagraph 7,a7 the following3 7,b7 subject to the limitation under subparagraph 7,a71 establish postal rates to fulfill the requirement that each market-dominant class1 product1 and type of mail service 7except for an experimental product or service7 bear the direct and indirect postal costs attributable to such class1 product1 or type through reliably identified causal relationships plus that portion of all other costs of the ,postal ,service reasonably assignable to such class1 product1 or type2 7,c7 establish postal rates for each group of functionally equivalent agreements between the ,postal ,service and users of the mail that-- 7i7 cover attributable cost2 7ii7 improve the net financial position of the ,postal ,service2 and 7iii7 do not cause unreasonable disruption in the marketplace1 consistent with subsection 7c77#aj77;,b72 for purposes of this subparagraph1 a group of functionally equivalent agreements shall consist of all service agreements that are functionally equivalent to each other within the same market-dominant product1 but shall not include agreements within an experimental product2 2 7#b7 in paragraph 7#c71 by striking subsection 7c71 and inserting subsection 7c7 and the provisions of title ,,iv of the ,postal ,reform ,act of #bjac12 and 7#c7 by adding at the end the following3 7#d7 ,,prc study 7,a7 ,in general ,within #ij days after the end of the first fiscal year beginning after the date of enactment of the ,postal ,reform ,act of #bjac1 the ,postal ,regulatory ,commission shall complete a study to determine the quantitative impact of the ,postal ,service's excess capacity on the direct and indirect postal costs attributable to any class that bears less than #ajj percent of its costs attributable 7as described in paragraph 7#a77;,b771 according to the most recent annual determination of the ,postal ,regulatory ,commission under section #cfec4 7,b7 ,requirements ,the study required under subparagraph 7,a7 shall-- 7i7 be conducted pursuant to regulations that the ,postal ,regulatory ,commission shall prescribe within #ij days after the date of enactment of the ,postal ,reform ,act of #bjac1 taking into account existing regulations for proceedings to improve the quality1 accuracy1 or completeness of ratemaking information under section #cfeb7;e77#b7 in effect on such date2 and 7ii7 for any year in which any class of mail bears less than #ajj percent of its costs attributable 7as described in paragraph 7#a77;,b771 be updated annually by the ,postal ,service and included in its annual report to the ,commission under section #cfeb1 using such methodologies as the ,commission shall by regulation prescribe4 7#e7 ,additional rates ,starting not earlier than #ab months and not later than #ah months after the date on which the first study described in paragraph 7#d7 is completed1 and at least once in each subsequent #ab-month period1 the ,postal ,service shall establish postal rates for each loss-making class of mail to eliminate such losses 7other than those caused by the ,postal ,service's excess capacity7 by exhausting all unused rate authority as well as maximizing incentives to reduce costs and increase efficiency1 subject to the following3 7,a7 ,the term loss-making1 as used in this paragraph with respect to a class of mail1 means a class of mail that bears less than #ajj percent of its costs attributable 7as described in paragraph 7#a77;,b771 according to the most recent annual determination of the ,postal ,regulatory ,commission under section #cfec1 adjusted to account for the quantitative effect of excess capacity on the costs attributable of the class4 7,b7 ,unused rate authority shall be annually increased by #b percentage points for each class of mail that bears less than #ij percent of its costs attributable 7as described in paragraph 7#a77;,b771 according to the most recent annual determination of the ,postal ,regulatory ,commission under section #cfec1 adjusted to account for the quantitative effect of excess capacity on the costs attributable of the class1 with such increase in unused rate authority to take effect #cj days after the date that the ,commission issues such determination4 4 7b7 ,exception ,section #cfbb7;d7 is amended by adding after paragraph 7#e7 7as added by subsection 7a77#b77 the following3 7#f7 ,exception ,the requirements of paragraph 7#a77;,b7 shall not apply to a market-dominant product for which a substantial portion of the product's mail volume consists of inbound international mail with terminal dues rates determined by the ,universal ,postal ,union 7and not by bilateral agreements or other arrangements74 4 #djb4 ,repeal of rate preferences for qualified political committees ,subsection 7e7 of section #cfbf is repealed4 #djc4 ,use of negotiated service agreements 7a7 ,streamlined review of qualifying service agreements for competitive products ,section #cfcc is amended by adding at the end the following3 7c7 ,streamlined review ,not later than #ij days after the date of enactment of this subsection1 after notice and opportunity for comment1 the ,postal ,regulatory ,commission shall promulgate 7and may from time to time thereafter revise7 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 products4 ,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 ,service4 ,the regulations issued under this subsection shall provide that streamlined review shall be concluded not later than #e 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 equivalence4 ,agreements not approved may be resubmitted without prejudice under section #cfcb4 4 7b7 ,submission of service agreements for streamlined review ,section #cfcb7;b7 is amended-- 7#a7 by redesignating paragraph 7#d7 as paragraph 7#e72 and 7#b7 by inserting after paragraph 7#c7 the following3 7#d7 ,rates for streamlined review ,in the case of rates not of general applicability for competitive products that the ,postmaster ,general considers eligible for streamlined review under section #cfcc7;c71 the ,postmaster ,general 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 agreement1 as the ,postmaster ,general considers appropriate4 4 7c7 ,transparency and accountability for service agreements 7#a7 ,certain information required to be included in determinations of compliance ,section #cfec is amended-- 7,a7 by redesignating subsections 7c71 7d71 and 7e7 as subsections 7d71 7e71 and 7f71 respectively2 and 7,b7 by inserting after subsection 7b7 the following3 7c7 ,written determination ,each annual written determination of the ,commission under this section shall include the following3 7#a7 ,requirements ,for each group of functionally equivalent agreements between the ,postal ,service and users of the mail1 whether such group fulfilled requirements to-- 7,a7 cover costs attributable2 and 7,b7 improve the net financial position of the ,postal ,service4 7#b7 ,noncompliance ,any group of functionally equivalent agreements not meeting subparagraphs 7,a7 and 7,b7 of paragraph 7#a7 shall be determined to be in noncompliance under this subsection4 7#c7 ,definition ,for purposes of this subsection1 a group of functionally equivalent agreements shall consist of #a or more service agreements that are functionally equivalent to each other within the same market-dominant or competitive product1 but shall not include agreements within an experimental product4 4 7#b7 ,criteria for special classifications relating to market-dominant products 7,a7 ,amendment ,section #cfbb7;c77#aj7 is amended by striking subparagraphs 7,a7 and 7,b7 and inserting the following3 7,a7 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 ,service2 and 7,b7 do not cause-- 7i7 unfair competitive advantage for the ,postal ,service or postal users eligible for the agreements2 or 7ii7 unreasonable disruption to the volume or revenues of other postal users4 4 7,b7 ,applicability ,the amendment made by subparagraph 7,a7 shall take effect on the date of enactment of this ,act and shall apply with respect to an agreement that-- 7i7 is filed with the ,commission on or after such date of enactment2 or 7ii7 is remanded to the ,commission by a court on or after such date of enactment4 #djd4 ,nonpostal services 7a7 ,nonpostal services 7#a7 ,in general ,part ,,iv is amended by adding after chapter #cf the following3 #cg ,nonpostal ,services ,sec4 #cgja4 ,purpose4 #cgjb4 ,definitions4 #cgjc4 ,postal ,service advertising program4 #cgjd4 ,postal ,service program for ,state governments4 #cgje4 ,postal ,service program for other government agencies4 #cgjf4 ,transparency and accountability for nonpostal services4 #cgja4 ,purpose ,this chapter is intended to enable the ,postal ,service to increase its net revenues through specific nonpostal products and services that are expressly authorized by this chapter4 ,postal ,service revenues and expenses under this chapter shall be funded through the ,postal ,service ,fund4 #cgjb4 ,definitions ,as used in this chapter-- 7#a7 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 services2 7#b7 the term attributable costs has the same meaning as is given such term in section #cfca2 and 7#c7 the term year means a fiscal year4 #cgjc4 ,postal ,service advertising program ,notwithstanding any other provision of this title1 the ,postal ,service may establish and manage a program that allows entities to advertise at ,postal ,service facilities1 on ,postal ,service assets1 and on ,postal ,service vehicles4 ,such a program shall be subject to the following requirements3 7#a7 ,the ,postal ,service shall at all times ensure advertising it permits is consistent with the integrity of the ,postal ,service4 7#b7 ,any advertising program is required to cover a minimum of #bjj percent of its attributable costs in each year4 7#c7 ,all advertising expenditures and revenues are subject to annual compliance determination 7including remedies for noncompliance7 applicable to nonpostal products4 7#d7 ,total advertising expenditures and revenues must be disclosed in ,postal ,service annual reports4 #cgjd4 ,postal ,service program for ,state governments 7a7 ,in general ,notwithstanding any other provision of this title1 the ,postal ,service may establish a program to provide services for agencies of ,state governments within the ,united ,states1 but only if such services-- 7#a7 shall provide enhanced value to the public1 such as by lowering the cost or raising the quality of such services or by making such services more accessible2 7#b7 do not interfere with or detract from the value of postal services1 including-- 7,a7 the cost and efficiency of postal services2 and 7,b7 unreasonable access to postal retail service1 such as customer waiting time and access to parking2 and 7#c7 provide a reasonable contribution to the institutional costs of the ,postal ,service1 defined as reimbursement for each service and covering at least #aej percent of the attributable costs of such service in each year4 7b7 ,public notice ,at least #ij days before offering any services under this section1 the ,postal ,service shall make each agreement with ,state agencies readily available to the public on its ,web site1 including a business plan that describes the specific services to be provided1 the enhanced value to the public1 terms of reimbursement1 the estimated annual reimbursement to the ,postal ,service1 and the estimated percentage of attributable ,postal ,service costs that will be covered by reimbursement 7with documentation to support these estimates74 ,the ,postal ,service shall solicit public comment for at least #cj days1 with comments posted on its ,web site1 followed by its written response posted on its ,web site at least #cj days before offering such services4 7c7 ,approval required ,the ,governors of the ,postal ,service shall approve the provision of services under this section by a recorded vote1 with at least #b_/c of its membership voting for approval1 with the vote publicly disclosed on the ,postal ,service ,web site4 7d7 ,classification of services ,all services for a given agency provided under this section shall be classified as a separate activity subject to the requirements of annual reporting under section #cgjf4 ,such reporting shall also include information on the quality of service and related information to demonstrate that it satisfied the requirements of subsection 7a74 ,information provided under this section shall be according to requirements that the ,postal ,regulatory ,commission shall by regulation prescribe4 7e7 ,definitions ,for the purpose of this section-- 7#a7 the term ,state includes the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 the ,united ,states ,virgin ,islands1 ,guam1 ,american ,samoa1 the ,commonwealth of the ,northern ,mariana ,islands1 and any other territory or possession of the ,united ,states2 and 7#b7 the term ,united ,states1 when used in a geographical sense1 means the ,states4 #cgje4 ,postal ,service program for other government agencies 7a7 ,in general ,the ,postal ,service may establish a program to provide property and services for other government agencies within the meaning of section #daa1 but only if such program provides a reasonable contribution to the institutional costs of the ,postal ,service1 defined as reimbursement by each agency that covers at least #ajj percent of the attributable costs of all property and service provided by the ,postal ,service in each year to such agency4 7b7 ,classification of services ,for each agency1 all property and services provided by the ,postal ,service under this section shall be classified as a separate activity subject to the requirements of annual reporting under section #cgjf4 ,information provided under this section shall be according to requirements that the ,postal ,regulatory ,commission shall by regulation prescribe4 #cgjf4 ,transparency and accountability for nonpostal services 7a7 ,annual reports to the ,commission 7#a7 ,in general ,the ,postal ,service shall1 no later than #ij days after the end of each year1 prepare and submit to the ,postal ,regulatory ,commission a report 7together with such nonpublic annex to the report as the ,commission may require under subsection 7b77 which shall analyze costs1 revenues1 rates1 and quality of service for this chapter1 using such methodologies as the ,commission shall by regulation prescribe1 and in sufficient detail to demonstrate compliance with all applicable requirements of this chapter4 7#b7 ,audits ,the ,inspector ,general shall regularly audit the data collection systems and procedures utilized in collecting information and preparing such report4 ,the results of any such audit shall be submitted to the ,postal ,service and the ,postal ,regulatory ,commission4 7b7 ,supporting matter ,the ,postal ,regulatory ,commission shall have access1 in accordance with such regulations as the ,commission shall prescribe1 to the working papers and any other supporting matter of the ,postal ,service and the ,inspector ,general in connection with any information submitted under this section4 7c7 ,content and form of reports 7#a7 ,in general ,the ,postal ,regulatory ,commission shall1 by regulation1 prescribe the content and form of the public reports 7and any nonpublic annex and supporting matter relating to the report7 to be provided by the ,postal ,service under this section4 ,such reports shall be included with the annual compliance determination reported under section #cfec4 ,in carrying out this subsection1 the ,commission shall give due consideration to-- 7,a7 providing the public with timely1 adequate information to assess compliance2 7,b7 avoiding unnecessary or unwarranted administrative effort and expense on the part of the ,postal ,service2 and 7,c7 protecting the confidentiality of information that is commercially sensitive or is exempt from public disclosure under section #eeb7;b7 of title #e4 7#b7 ,revised requirements ,the ,commission may1 on its own motion or on request of any interested party1 initiate proceedings 7to be conducted in accordance with regulations that the ,commission shall prescribe7 to improve the quality1 accuracy1 or completeness of ,postal ,service data required by the ,commission under this subsection whenever it shall appear that-- 7,a7 the attribution of costs or revenues to property or services under this chapter has become significantly inaccurate or can be significantly improved2 7,b7 the quality of service data provided to the ,commission for annual reports under this chapter has become significantly inaccurate or can be significantly improved2 or 7,c7 such revisions are1 in the judgment of the ,commission1 otherwise necessitated by the public interest4 7d7 ,confidential information 7#a7 ,in general ,if the ,postal ,service determines that any document or portion of a document1 or other matter1 which it provides to the ,postal ,regulatory ,commission in a nonpublic annex under this section contains information which is described in section #daj7;c7 of this title1 or exempt from public disclosure under section #eeb7;b7 of title #e1 the ,postal ,service shall1 at the time of providing such matter to the ,commission1 notify the ,commission of its determination1 in writing1 and describe with particularity the documents 7or portions of documents7 or other matter for which confidentiality is sought and the reasons therefor4 7#b7 ,treatment ,any information or other matter described in paragraph 7#a7 to which the ,commission gains access under this section shall be subject to paragraphs 7#b7 and 7#c7 of section #ejd7;g7 in the same way as if the ,commission had received notification with respect to such matter under section #ejd7;g77#a74 7e7 ,annual compliance determination 7#a7 ,opportunity for public comment ,after receiving the reports required under subsection 7a7 for any year1 the ,postal ,regulatory ,commission shall promptly provide an opportunity for comment on such reports by any interested party1 and an officer of the ,commission who shall be required to represent the interests of the general public4 7#b7 ,determination of compliance or noncompliance ,not later than #ij days after receiving the submissions required under subsection 7a7 with respect to a year1 the ,postal ,regulatory ,commission shall make a written determination as to whether any nonpostal activities during such year were or were not in compliance with applicable provisions of this chapter 7or regulations promulgated under this chapter74 ,the ,postal ,regulatory ,commission shall issue a determination of noncompliance if the requirements for coverage of attributable costs are not met4 ,if1 with respect to a year1 no instance of noncompliance is found to have occurred in such year1 the written determination shall be to that effect4 7#c7 ,noncompliance ,if1 for a year1 a timely written determination of noncompliance is made under this chapter1 the ,postal ,regulatory ,commission shall take appropriate action4 ,if the requirements for coverage of attributable costs specified by this chapter are not met1 the ,commission shall1 within #fj days after the determination1 prescribe remedial action to restore compliance as soon as practicable1 which shall also include the full restoration of revenue shortfalls during the following fiscal year4 ,the ,commission may order the ,postal ,service to discontinue a nonpostal service under section #cgjc or #cgjd that persistently fails to meet cost coverage requirements4 7#d7 ,deliberate noncompliance ,in addition1 in cases of deliberate noncompliance by the ,postal ,service with the requirements of this chapter1 the ,postal ,regulatory ,commission may order1 based on the nature1 circumstances1 extent1 and seriousness of the noncompliance1 a fine 7in the amount specified by the ,commission in its order7 for each incidence of such noncompliance4 ,all receipts from fines imposed under this subsection shall be deposited in the general fund of the ,treasury of the ,united ,states4 4 7#b7 ,clerical amendment ,the table of chapters at the beginning of part ,,iv is amended by adding after the item relating to chapter #cf the following3 #cg4,nonpostal ,services#cgja 4 7b7 ,conforming amendments 7#a7 ,section #djd7;e7 ,section #djd7;e7 is amended by adding at the end the following3 7#f7 ,licensing which1 before the date of enactment of this paragraph1 has been authorized by the ,postal ,regulatory ,commission for continuation as a nonpostal service may not be used for any purpose other than-- 7,a7 to continue to provide licensed mailing and shipping supplies offered as of ,june #bc1 #bjaa2 or 7,b7 to license other goods1 products1 or services1 the primary purpose of which is to promote and enhance the image or brand of the ,postal ,service4 7#g7 ,nothing in this section shall be considered to prevent the ,postal ,service from establishing nonpostal products and services that are expressly authorized by chapter #cg4 4 7#b7 ,section #dji ,section #dji7;f7 is amended by inserting at the end the following3 7#g7 ,the provisions of this section shall not apply to any outdoor advertising structure or sign constructed1 installed1 operated1 or maintained on a facility or asset owned or operated by the ,postal ,service except in a jurisdiction in which posting of off premise advertising signs for all persons1 entities1 governmental agencies1 and others is prohibited by law4 4 7#c7 ,section #daa ,the last sentence of section #daa is amended by striking including reimbursability and inserting including reimbursability within the limitations of chapter #cg4 7#d7 ,treatment of existing nonpostal services ,all individual nonpostal services1 provided directly or through licensing1 that are continued pursuant to section #djd7;e7 of title #ci1 ,united ,states ,code1 shall be considered to be expressly authorized by chapter #cg of such title 7as added by subsection 7a77#a77 and shall be subject to the requirements of such chapter4 #dje4 ,alaska bypass mail modernization 7a7 ,fair competition for ,alaska bypass mail 7#a7 ,in general ,section #edjb is amended-- 7,a7 in subsection 7g77#d7-- 7i7 in subparagraph 7,a71 by striking existing2 7ii7 in subparagraph 7,b7-- 7,i7 in the matter preceding clause 7i71 by striking an existing mainline carrier and inserting a carrier permitted under subparagraph 7,a72 and 7,,ii7 in clause 7i71 by striking existing mainline carriers and inserting mainline carriers providing service2 and 7iii7 in subparagraph 7,c71 by striking existing2 7,b7 in subsection 7g77#e7-- 7i7 in subparagraph 7,a71 by striking new2 7ii7 in subparagraph 7,b71 by striking new2 and 7iii7 in subparagraph 7,c71 by striking new2 7,c7 in subsection 7h77#c77;,a71 by striking new or existing2 and 7,d7 in subsection 7i77#c71 by striking new4 7#b7 ,conforming amendment ,paragraphs 7#ab7 and 7#ae7 of section #edjb7;a7 are repealed4 7b7 ,reduction of ,alaska bypass mail subsidy 7#a7 ,in general ,chapter #ed is amended by adding at the end the following3 #edjd4 ,reduction of ,alaska bypass mail subsidy 7a7 ,competitive product classification 7#a7 ,in general ,except as provided in this section1 ,alaska bypass mail service under section #edjb shall be treated as a separate competitive product for all purposes4 7#b7 ,transfer prohibited ,no part of ,alaska bypass mail service may be transferred to the market-dominant category of mail under section #cfdb4 7#c7 ,limitations ,alaska bypass mail service shall not be treated as a competitive product for purposes of the implementation of sections #cfcc7;a7 and #cfcd4 7b7 ,minimum cost coverage 7#a7 ,in general ,the ,postal ,service shall establish and maintain rates and fees for matter sent by ,alaska bypass mail service-- 7,a7 for fiscal year #bjad1 that cover at least #cj percent of the costs attributable to ,alaska bypass mail service in that fiscal year2 7,b7 for fiscal year #bjae1 that cover at least #ce percent of the costs attributable to ,alaska bypass mail service in that fiscal year2 7,c7 for fiscal year #bjaf1 that cover at least #dj percent of the costs attributable to ,alaska bypass mail service in that fiscal year2 7,d7 for fiscal year #bjag1 that cover at least #de percent of the costs attributable to ,alaska bypass mail service in that fiscal year2 and 7,e7 for fiscal year #bjah and for each fiscal year thereafter1 that cover at least #ej percent of the costs attributable to ,alaska bypass mail service in the applicable fiscal year4 7#b7 ,costs attributable ,the costs attributable to ,alaska bypass mail service for a fiscal year shall include all the direct and indirect costs of ,alaska bypass mail service during that fiscal year that are attributable to that service through reliably identified causal relationships4 7#c7 ,institutional costs ,costs that can be attributed to ,alaska bypass mail service may not be classified as institutional costs of the ,postal ,service4 7c7 ,compliance 7#a7 ,annual review ,at least once each fiscal year1 the ,postal ,regulatory ,commission shall determine whether the ,postal ,service is in compliance with the requirements under subsection 7b74 7#b7 ,remedial actions ,if1 under paragraph 7#a71 the ,postal ,regulatory ,commission determines that the ,postal ,service has not complied with the requirements under subsection 7b7 with respect to a fiscal year1 the ,commission shall prescribe1 not later than #fj days after making such determination1 actions to ensure-- 7,a7 the establishment and maintenance of rates and fees for ,alaska bypass mail service that recover any costs required to have been covered for such fiscal year under subsection 7b71 but that were not covered1 by the date that is not later than the last day of the fiscal year that follows such fiscal year2 and 7,b7 compliance with the requirements under subsection 7b7 in subsequent fiscal years4 7#c7 ,limitation ,the ,postal ,regulatory ,commission may not order the ,postal ,service to discontinue ,alaska bypass mail service4 7#d7 ,regulations ,not later than #ij days after the date of enactment of this subsection1 the ,postal ,regulatory ,commission shall issue regulations to implement this subsection4 4 7#b7 ,clerical amendment ,the table of sections for chapter #ed is amended by adding at the end the following3 #edjd4 ,reduction of ,alaska bypass mail subsidy4 4 #djf4 ,appropriations modernization 7a7 ,in general ,section #bdja is amended by striking subsections 7b7 through 7d74 7b7 ,effective date ,the amendment made by subsection 7a7 shall be effective with respect to fiscal years beginning after the date of enactment of this ,act4 7c7 ,conforming amendment ,section #cfbg is repealed4 #djg4 ,enhanced product innovation 7a7 ,dollar-,amount limitation relating to market tests of experimental products ,section #cfda7;e77#a7 is amended by striking #aj1jjj1jjj and inserting #ej1jjj1jjj4 7b7 ,dollar-,amount limitation relating to exemption authority ,section #cfda7;e77#b7 is amended by striking #ej1jjj1jjj and inserting #ajj1jjj1jjj4 ,v ,postal ,service ,finance #eja4 ,treatment of ,postal ,service postemployment benefit funding projected surpluses ,section #hdbc7;b77#d7 of title #e1 ,united ,states ,code1 is amended by adding at the end the following3 7,c7 ,not later than #cj days after the end of each fiscal year1 the ,office of ,personnel ,management shall transfer from ,postal ,service ,federal ,employee ,retirement ,system monies within the ,civil ,service ,retirement and ,disability ,fund to the ,postal ,service ,retiree ,health ,benefits ,fund an amount equal to the negative supplemental liability 7if any71 as calculated under paragraph 7#a77;,b71 for the most recent fiscal year available1 less the sum of-- 7i7 the ,postal supplemental liability1 calculated under section #hcdh7;h71 for the same fiscal year 7if any72 and 7ii7 any contribution required by this section that the ,postal ,service has not made between the close of the fiscal year of the calculation under paragraph 7#a77;,b7 and the close of the most recent fiscal year1 as determined by the ,office of ,personnel ,management4 4 #ejb4 ,retiree health benefit liability payment schedule 7a7 ,in general ,subsection #hiji;a7d7 of title #e1 ,united ,states ,code1 is amended-- 7#a7 in paragraph 7#b77;,b71 by striking #bjag and inserting #bjae2 and 7#b7 in paragraph 7#c7-- 7,a7 in subparagraph 7,a7-- 7i7 in clause 7iii71 by adding and at the end2 7ii7 in clause 7iv71 by striking the semicolon at the end and inserting a period2 and 7iii7 by striking clauses 7v7 through 7x72 and 7,b7 in subparagraph 7,b71 by striking #bjag and inserting #bjae4 7b7 ,conforming amendment ,section #hijf7;g77#b77;,a7 of title #e1 ,united ,states ,code1 is amended by striking #bjaf and inserting #bjad4 7c7 ,technical correction ,the heading for section #hiji;a of title #e1 ,united ,states ,code1 is amended by striking ,benefit and inserting ,benefits4 #ejc4 ,supplementary borrowing authority during a control period 7a7 ,in general ,chapter #bj is amended by adding after section #bjaa the following3 #bjab4 ,supplementary borrowing authority 7a7 ,supplementary borrowing authority ,upon the commencement of the control period1 subject to the approval of the ,authority1 the ,postal ,service is authorized to borrow money and issue and sell such obligations as may be necessary to carry out the purposes of this title1 to the same extent1 in the same manner1 and subject to the same terms and conditions as if the maximum amount allowable under the provisions of section #bjje7;a77#b7 for the fiscal year involved were equal to the maximum amount which 7but for this section7 would otherwise be allowable under such provisions1 increased by #e1jjj1jjj1jjj4 7b7 ,sunset ,the authority to borrow money and to issue and sell obligations under subsection 7a7 shall cease to be available after ,september #cj1 #bjbb4 7c7 ,deposit ,any amounts received under this section shall be deposited in the ,postal ,service ,fund4 7d7 ,properties ,to be set aside ,notwithstanding section #bjje7;b77#b71 the ,postal ,service shall take such measures as may be necessary and appropriate so that1 during any period in which the ,postal ,service is using supplemental borrowing authority under subsection 7a71 a sufficient amount of real property has been pledged or otherwise set aside by the ,postal ,service to carry out subsection 7e74 7e7 ,outstanding supplemental debt reduction 7#a7 ,in general ,in the case of any full fiscal year in which the ,postal ,service borrows funds pursuant to subsection 7a71 the ,postal ,service shall1 not later than ,september #cj of such fiscal year1 deposit into the ,postal ,service ,fund an amount such that the total obligations accrued and outstanding pursuant to subsection 7a7 are1 as of the close of such fiscal year1 at least #bj percent less than the total obligations so accrued and outstanding as of the start of such fiscal year4 7#b7 ,sense of ,congress ,it is the sense of ,congress that1 to achieve the requirement of paragraph 7#a71 the ,postal ,service should dispose of such real property as may be necessary4 7f7 ,definitions ,for purposes of this section-- 7#a7 the term ,authority means the ,postal ,service ,financial ,responsibility and ,management ,assistance ,authority1 established in title ,,ii of the ,postal ,reform ,act of #bjac2 and 7#b7 the term control period has the meaning given such term in section #bjb7;b77#a7 of such ,act4 4 7b7 ,clerical amendment ,the table of sections for chapter #bj is amended by adding at the end the following3 #bjab4 ,supplemental borrowing authority4 4 #ejd4 ,postal ,service ,delivery-,point ,modernization ,fund 7a7 ,in general ,chapter #bj is further amended by adding after section #bjab 7as added by section #ejc7;a77 the following3 #bjac4 ,postal ,service ,delivery-,point ,modernization ,fund 7a7 ,establishment ,there is established within the ,treasury of the ,united ,states a revolving fund to be known as the ,postal ,service ,delivery-,point ,modernization ,fund1 which shall be available without fiscal year limitation pursuant to the requirements of this section4 7b7 ,funding 7#a7 ,authorization ,the ,postal ,service is authorized to borrow money and to issue and sell such obligations as it determines necessary solely to carry out the purposes of section #cifb4 ,the aggregate amount of obligations issued by the ,postal ,service which may be outstanding at any one time under this paragraph shall not exceed #a1jjj1jjj1jjj4 7#b7 ,applicability of section #bjje ,the provisions of subsections #bjje7;b71 7c71 and 7d7 shall apply to obligations issued under this subsection4 7#c7 ,deposit ,any amounts received by the ,postal ,service as a result of paragraph 7#a7 shall be deposited in the ,postal ,service ,delivery-,point ,modernization ,fund4 7c7 ,sunset ,the authority to borrow money and to issue and sell obligations under subsection 7b7 shall cease to be available after ,september #cj1 #bjbc4 7d7 ,budgetary treatment ,the receipts and disbursements of the ,postal ,service ,delivery-,point ,modernization ,fund shall be accorded the same budgetary treatment as is accorded to receipts and disbursements of the ,postal ,service ,fund under section #bjji;a4 7e7 ,termination of ,fund ,on ,september #cj1 #bjbc1 any funds remaining in the ,postal ,service ,delivery-,point ,modernization ,fund shall be used to satisfy any remaining obligations under subsection 7b77#a71 and any funds in excess of such obligations shall be deposited in the ,postal ,service ,fund4 ,after any excess funds have been so deposited1 the ,postal ,service ,delivery-,point ,modernization ,fund shall be terminated4 4 7b7 ,clerical amendment ,the table of sections for chapter #bj is amended by adding after the item relating to section #bjab 7as added by section #ejc7;b77 the following3 #bjac4 ,postal ,service ,delivery-,point ,modernization ,fund4 4 #eje4 ,specific retirement liability calculations relating to the ,postal ,service 7a7 ,federal ,employees ,retirement ,system ,section #hdbc7;a7 of title #e1 ,united ,states ,code1 is amended-- 7#a7 in paragraph 7#a7-- 7,a7 in subparagraph 7,a7-- 7i7 in clause 7i71 by striking subparagraph 7,b771 and inserting subparagraph 7,b7 or 7,c7712 and 7ii7 in clause 7ii71 by striking and after the semicolon2 7,b7 in subparagraph 7,b77ii71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7,c7 the product of-- 7i7 the normal-cost percentage1 as determined for employees 7other than employees covered by subparagraph 7,b77 of the ,united ,states ,postal ,service under paragraph 7#e71 multiplied by 7ii7 the aggregate amount of basic pay payable by the ,united ,states ,postal ,service1 for the period involved1 to employees of the ,united ,states ,postal ,service4 2 and 7#b7 by adding at the end the following3 7#e7 7,a7 ,in determining the normal-cost percentage for employees of the ,united ,states ,postal ,service for purposes of paragraph 7#a77;,c71 the ,office-- 7i7 shall use demographic factors specific to such employees1 unless such data cannot be generated2 and 7ii7 may use economic assumptions regarding wage and salary growth that reflect the specific past1 and likely future1 pay for such employees4 7,b7 ,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 ,service1 consistent with subparagraph 7,a74 7,c7 ,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-- 7i7 upon request of the ,united ,states ,postal ,service1 but not more frequently than once each fiscal year2 and 7ii7 at such other times as the ,office considers appropriate4 7#f7 ,for the purpose of carrying out subsection 7b77#a77;,b71 and consistent with paragraph 7#e71 for fiscal year #bjac1 and each fiscal year thereafter1 the ,office-- 7,a7 shall use demographic factors specific to current and former employees of the ,united ,states ,postal ,service1 unless such data cannot be generated2 and 7,b7 may use economic assumptions regarding wage and salary growth that reflect the specific past1 and likely future1 pay for current employees of the ,united ,states ,postal ,service4 4 7b7 ,civil ,service ,retirement ,system ,section #hcdh7;h7 of title #e1 ,united ,states ,code1 is amended by adding at the end the following3 7#d7 ,for the purpose of carrying out paragraph 7#a71 consistent with section #hdbc7;b77#a77;,b71 for fiscal year #bjac1 and each fiscal year thereafter1 the ,office-- 7,a7 shall use demographic factors specific to current and former employees of the ,united ,states ,postal ,service1 unless such data cannot be generated2 and 7,b7 may use economic assumptions regarding wage and salary growth that reflect the specific past1 and likely future1 pay for current employees of the ,united ,states ,postal ,service4 4 ,,vi ,postal ,contracting ,reform #fja4 ,contracting provisions 7a7 ,in general ,part ,i is amended by adding at the end the following3 #g ,contracting ,provisions ,sec4 #gja4 ,definitions4 #gjb4 ,advocate for competition4 #gjc4 ,delegation of contracting authority4 #gjd4 ,posting of noncompetitive purchase requests for noncompetitive contracts4 #gje4 ,review of ethical issues4 #gjf4 ,ethical restrictions on participation in certain contracting activity4 #gja4 ,definitions ,in this chapter-- 7#a7 the term contracting officer means an employee of a covered postal entity who has authority to enter into a postal contract2 7#b7 the term covered postal entity means-- 7,a7 the ,postal ,service2 or 7,b7 the ,postal ,regulatory ,commission2 7#c7 the term head of a covered postal entity means-- 7,a7 in the case of the ,postal ,service1 the ,postmaster ,general2 or 7,b7 in the case of the ,postal ,regulatory ,commission1 the ,chairman of the ,postal ,regulatory ,commission2 7#d7 the term postal contract means-- 7,a7 in the case of the ,postal ,service1 any contract 7including any agreement or memorandum of understanding7 entered into by the ,postal ,service for the procurement of goods or services2 or 7,b7 in the case of the ,postal ,regulatory ,commission1 any contract 7including any agreement or memorandum of understanding7 in an amount exceeding the simplified acquisition threshold 7as defined in section #acd of title #da and adjusted under section #aijh of such title7 entered into by the ,postal ,regulatory ,commission for the procurement of goods or services2 and 7#e7 the term senior procurement executive means the senior procurement executive of a covered postal entity4 #gjb4 ,advocate for competition 7a7 ,establishment and designation 7#a7 ,there is established in each covered postal entity an advocate for competition4 7#b7 ,the head of each covered postal entity shall designate for the covered postal entity #a or more officers or employees 7other than the senior procurement executive7 to serve as the advocate for competition4 7b7 ,responsibilities ,the advocate for competition of a covered postal entity shall-- 7#a7 be responsible for promoting-- 7,a7 the contracting out of functions of the covered postal entity that the private sector can perform equally well or better1 and at lower cost2 and 7,b7 competition to the maximum extent practicable consistent with obtaining best value by promoting the acquisition of commercial items and challenging barriers to competition2 7#b7 review the procurement activities of the covered postal entity2 and 7#c7 prepare and transmit the annual report required under subsection 7c74 7c7 ,annual ,report 7#a7 ,preparation ,the advocate for competition of a covered postal entity shall prepare an annual report describing the following3 7,a7 ,the activities of the advocate under this section4 7,b7 ,initiatives required to promote contracting out and competition4 7,c7 ,barriers to contracting out and competition4 7,d7 ,in the case of the report prepared by the competition advocate of the ,postal ,service1 the number of waivers made by the ,postal ,service under section #gjd7;c74 7#b7 ,transmission ,the report under this subsection shall be transmitted-- 7,a7 to ,congress2 7,b7 to the head of the postal entity2 7,c7 to the senior procurement executive of the entity2 7,d7 in the case of the competition advocate of the ,postal ,service1 to each member of the ,postal ,service ,board of ,governors2 and 7,e7 in the case of the competition advocate of the ,postal ,regulatory ,commission1 to each of the ,commissioners of the ,commission4 #gjc4 ,delegation of contracting authority 7a7 ,in general 7#a7 ,policy ,not later than #fj days after the date of enactment of this chapter1 the head of each covered postal entity shall issue a policy on contracting officer delegations of authority for postal contracts for the covered postal entity4 7#b7 ,contents ,the policy issued under paragraph 7#a7 shall require that-- 7,a7 notwithstanding any delegation of authority with respect to postal contracts1 the ultimate responsibility and accountability for the award and administration of postal contracts resides with the senior procurement executive2 and 7,b7 a contracting officer shall maintain an awareness of and engagement in the activities being performed on postal contracts of which that officer has cognizance1 notwithstanding any delegation of authority that may have been executed4 7b7 ,posting of delegations 7#a7 ,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 ,web site of the covered postal entity4 7#b7 ,effective date ,this paragraph shall apply to any delegation of authority made on or after #cj days after the date of enactment of this chapter4 #gjd4 ,posting of noncompetitive purchase requests for noncompetitive contracts 7a7 ,posting required 7#a7 ,postal regulatory commission ,the ,postal ,regulatory ,commission shall make the noncompetitive purchase request for any noncompetitive award for any contract 7including any agreement or memorandum of understanding7 entered into by the ,postal ,regulatory ,commission for the procurement of goods and services1 in an amount of #bj1jjj or more1 including the rationale supporting the noncompetitive award1 publicly available on the ,web site of the ,postal ,regulatory ,commission-- 7,a7 not later than #ad days after the date of the award of the noncompetitive contract2 or 7,b7 not later than #cj days after the date of the award of the noncompetitive contract1 if the basis for the award was a compelling business interest4 7#b7 ,postal service ,the ,postal ,service shall make the noncompetitive purchase request for any noncompetitive award of a postal contract in an amount of #bej1jjj or more1 including the rationale supporting the noncompetitive award1 publicly available on the ,web site of the ,postal ,service-- 7,a7 not later than #ad days after the date of the award2 or 7,b7 not later than #cj days after the date of the award1 if the basis for the award was a compelling business interest4 7#c7 ,adjustments to the posting threshold for the postal service 7,a7 ,review and determination ,not later than ,january #ca of each year1 the ,postal ,service shall-- 7i7 review the #bej1jjj threshold established under paragraph 7#b72 and 7ii7 based on any change in the ,consumer ,price ,index for ,all ,urban ,consumers of the ,department of ,labor1 determine whether an adjustment to the threshold shall be made4 7,b7 ,amount of adjustments ,an adjustment under subparagraph 7,a7 shall be made in increments of #e1jjj4 ,if the ,postal ,service determines that a change in the ,consumer ,price ,index for a year would require an adjustment in an amount that is less than #e1jjj1 the ,postal ,service may not make an adjustment to the threshold for the year4 7#d7 ,effective date ,this subsection shall apply to any noncompetitive contract awarded on or after the date that is #ij days after the date of enactment of this chapter4 7b7 ,public availability 7#a7 ,in general ,subject to paragraph 7#b71 the information required to be made publicly available by a covered postal entity under subsection 7a7 shall be readily accessible on the ,web site of the covered postal entity4 7#b7 ,protection of proprietary information ,a covered postal entity shall-- 7,a7 carefully screen any description of the rationale supporting a noncompetitive award required to be made publicly available under subsection 7a7 to determine whether the description includes proprietary data 7including any reference or citation to the proprietary data7 or security-related information2 and 7,b7 remove any proprietary data or security-related information before making publicly available a description of the rationale supporting a noncompetitive award4 7c7 ,waivers 7#a7 ,waiver permitted ,if the ,postal ,service determines that making a noncompetitive purchase request for a postal contract of the ,postal ,service publicly available would risk placing the ,postal ,service at a competitive disadvantage relative to a private sector competitor1 the senior procurement executive1 in consultation with the advocate for competition of the ,postal ,service1 may waive the requirements under subsection 7a74 7#b7 ,form and content of waiver 7,a7 ,form ,a waiver under paragraph 7#a7 shall be in the form of a written determination placed in the file of the contract to which the noncompetitive purchase request relates4 7,b7 ,content ,a waiver under paragraph 7#a7 shall include-- 7i7 a description of the risk associated with making the noncompetitive purchase request publicly available2 and 7ii7 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 competitor4 7#c7 ,delegation of waiver authority ,the ,postal ,service may not delegate the authority to approve a waiver under paragraph 7#a7 to any employee having less authority than the senior procurement executive4 #gje4 ,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 contract1 that ethics official shall-- 7#a7 review the proposed contract2 and 7#b7 advise the contracting officer on the appropriate resolution of ethical issues4 #gjf4 ,ethical restrictions on participation in certain contracting activity 7a7 ,definitions ,in this section-- 7#a7 the term covered employee means-- 7,a7 a contracting officer2 or 7,b7 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 entity2 7#b7 the term final conviction means a conviction1 whether entered on a verdict or plea1 including a plea of nolo contendere1 for which a sentence has been imposed2 and 7#c7 the term covered relationship means a covered relationship described in section #bfce4ejb7;b77#a7 of title #e1 ,code of ,federal ,regulations1 or any successor thereto4 7b7 ,in general 7#a7 ,regulations ,the head of each covered postal entity shall prescribe regulations that-- 7,a7 require a covered employee to include in the file of any noncompetitive purchase request for a noncompetitive postal contract a written certification that-- 7i7 discloses any covered relationship of the covered employee2 and 7ii7 states that the covered employee will not take any action with respect to the noncompetitive purchase request that affects the financial interests of a friend1 relative1 or person with whom the covered employee is affiliated in a nongovernmental capacity1 or otherwise gives rise to an appearance of the use of public office for private gain1 as described in section #bfce4gjb of title #e1 ,code of ,federal ,regulations1 or any successor thereto2 7,b7 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 7,a77i71 to determine whether participation by the covered employee in the noncompetitive purchase request would give rise to a violation of part #bfce of title #e1 ,code of ,federal ,regulations 7commonly referred to as the ,standards of ,ethical ,conduct for ,employees of the ,executive ,branch71 or any successor thereto2 7,c7 require the ethics counsel for a covered postal entity to review any disclosure made by a contracting officer under subparagraph 7,a77i7 to determine whether participation by the contracting officer in the noncompetitive purchase request would give rise to a violation of part #bfce of title #e1 ,code of ,federal ,regulations 7commonly referred to as the ,standards of ,ethical ,conduct for ,employees of the ,executive ,branch71 or any successor thereto2 7,d7 under subsections 7d7 and 7e7 of section #bfce4ejb of title #e1 ,code of ,federal ,regulations1 or any successor thereto1 require the ethics counsel for a covered postal entity to-- 7i7 authorize a covered employee that makes a disclosure under subparagraph 7,a77i7 to participate in the noncompetitive postal contract2 or 7ii7 disqualify a covered employee that makes a disclosure under subparagraph 7,a77i7 from participating in the noncompetitive postal contract2 7,e7 require a contractor to timely disclose to the contracting officer in a bid1 solicitation1 award1 or performance of a postal contract any conflict of interest with a covered employee2 and 7,f7 include authority for the head of the covered postal entity to grant a waiver or otherwise mitigate any organizational or personal conflict of interest1 if the head of the covered postal entity determines that the waiver or mitigation is in the best interests of the covered postal entity4 7#b7 ,posting of waivers ,not later than #cj days after the head of a covered postal entity grants a waiver described in paragraph 7#a77;,f71 the head of the covered postal entity shall make the waiver publicly available on the ,web site of the covered postal entity4 7c7 ,contract voidance and recovery 7#a7 ,unlawful conduct ,in any case in which there is a final conviction for a violation of any provision of chapter #aa of title #ah relating to a postal contract1 the head of a covered postal entity may-- 7,a7 void that contract2 and 7,b7 recover the amounts expended and property transferred by the covered postal entity under that contract4 7#b7 ,obtaining or disclosing procurement information 7,a7 ,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 7b77#a77;,e71 the head of a covered postal entity may-- 7i7 void that contract2 and 7ii7 recover the amounts expended and property transferred by the covered postal entity under that contract4 7,b7 ,conviction or administrative determination ,a case described under subparagraph 7,a7 is any case in which-- 7i7 there is a final conviction for an offense punishable under section #baje of title #da2 or 7ii7 the head of a covered postal entity determines1 based upon a preponderance of the evidence1 that the contractor or someone acting for the contractor has engaged in conduct constituting an offense punishable under section #baje of such title4 4 7b7 ,clerical amendment ,the table of chapters at the beginning of part ,i is amended by adding at the end the following3 #g4;,contracting ,provisions#gja 4 #fjb4 ,technical amendment to definition ,section #gaja7h7 of title #da1 ,united ,states ,code1 is amended-- 7#a7 by striking and at the end of subparagraph 7,c72 7#b7 by striking the period at the end of subparagraph 7,d7 and inserting 2 and2 and 7#c7 by adding at the end the following3 7,e7 the ,united ,states ,postal ,service and the ,postal ,regulatory ,commission4 4 #fjc4 ,contract limitation 7a7 ,in general ,each covered contract entered into within #f months after the date on which the ,postal ,service commences any reduction in force shall include a requirement that the contractor provide a preference in the hiring of qualifying individuals for full-time positions created by or as a result of the contract4 7b7 ,covered contract ,for the purposes of this section1 the term covered contract means a contract-- 7#a7 for an amount greater than #bej1jjj2 7#b7 entered into by the ,postal ,service-- 7,a7 within #b years after the date of enactment of this ,act2 7,b7 with a person other than a small business concern2 and 7,c7 for the procurement of goods or services2 and 7#c7 for which such person will hire #aj or more individuals4 7c7 ,qualifying individual ,for the purposes of this section1 the term qualifying individual means an individual who-- 7#a7 is separated from the ,postal ,service due to a reduction in force2 7#b7 at the time of separation-- 7,a7 is a career postal employee2 and 7,b7 is not a retirement-eligible individual2 7#c7 as of the date of hire 7as referred to in subsection 7b77#c77 has been continuously unemployed for a period not exceeding #gh weeks2 and 7#d7 is qualified for the position involved4 7d7 ,retirement-,eligible individual ,for purposes of this section1 the term retirement-eligible individual1 as used with respect to a qualifying individual1 means an individual who1 at the time of such individual's separation 7as described in subsection 7c77#a771 satisfies the age and service requirements for entitlement to an annuity under-- 7#a7 subsection 7a71 7b71 7c71 or 7f7 of section #hccf of title #e1 ,united ,states ,code2 or 7#b7 subsection 7a71 7b71 7c71 7d71 or 7g7 of section #hdab of title #e1 ,united ,states ,code4 7e7 ,small business concern ,for purposes of this section1 the term small business concern means a small business as defined pursuant to section #c of the ,small ,business ,act and relevant regulations prescribed pursuant thereto4 ,,vii ,other ,provisions #gja4 ,postal facility designations 7a7 ,facilities designated 7#a7 ,officer ,tommy ,decker ,memorial ,post ,office 7,a7 ,designation ,the facility of the ,united ,states ,postal ,service located at #ad ,red ,river ,avenue ,north in ,cold ,spring1 ,minnesota1 shall be known and designated as the ,officer ,tommy ,decker ,memorial ,post ,office4 7,b7 ,references ,any reference in a law1 map1 regulation1 document1 paper1 or other record of the ,united ,states to the facility referred to in subsection 7a7 shall be deemed to be a reference to the ,officer ,tommy ,decker ,memorial ,post ,office4 7#b7 ,richard ,k4 ,salick ,post ,office 7,a7 ,designation ,the facility of the ,united ,states ,postal ,service located at #ejj ,north ,brevard ,avenue in ,cocoa ,beach1 ,florida1 shall be known and designated as the ,richard ,k4 ,salick ,post ,office4 7,b7 ,references ,any reference in a law1 map1 regulation1 document1 paper1 or other record of the ,united ,states to the facility referred to in subsection 7a7 shall be deemed to be a reference to the ,richard ,k4 ,salick ,post ,office4 7#c7 ,national ,park ,ranger ,margaret ,anderson ,post ,office 7,a7 ,designation ,the facility of the ,united ,states ,postal ,service located at #ajc ,center ,street ,west in ,eatonville1 ,washington1 shall be known and designated as the ,national ,park ,ranger ,margaret ,anderson ,post ,office4 7,b7 ,references ,any reference in a law1 map1 regulation1 document1 paper1 or other record of the ,united ,states to the facility referred to in subsection 7a7 shall be deemed to be a reference to the ,national ,park ,ranger ,margaret ,anderson ,post ,office4 7#d7 ,judge ,shirley ,a4 ,tolentino ,post ,office ,building 7,a7 ,designation ,the facility of the ,united ,states ,postal ,service located at #cfi ,martin ,luther ,king ,jr4 ,drive in ,jersey ,city1 ,new ,jersey1 shall be known and designated as the ,judge ,shirley ,a4 ,tolentino ,post ,office ,building4 7,b7 ,references ,any reference in a law1 map1 regulation1 document1 paper1 or other record of the ,united ,states to the facility referred to in subsection 7a7 shall be deemed to be a reference to the ,judge ,shirley ,a4 ,tolentino ,post ,office ,building4 7b7 ,sense of ,congress ,it is the sense of ,congress that additional postal facility designations be included in postal reform legislation4 #gjb4 ,response to submissions by the ,postal ,service 7a7 ,in general ,chapter #e is amended by adding at the end the following3 #ejf4 ,submissions by the ,postal ,service to the ,postal ,regulatory ,commission ,whenever the ,postal ,service submits to the ,postal ,regulatory ,commission any notice1 petition1 request1 or other filing intended to initiate a new proceeding before the ,commission1 the ,commission shall make an initial determination that such filing presents adequate information upon which the ,commission may make its decision or advisory opinion4 ,if the ,commission's initial determination is that the ,postal ,service's filing is inadequate1 it shall dismiss the filing without prejudice4 4 7b7 ,clerical amendment ,the table of sections for chapter #e is amended by adding at the end the following3 #ejf4 ,submissions by the ,postal ,service to the ,postal ,regulatory ,commission4 4 #gjc4 ,fair stamp-evidencing competition ,section #djd7;a7 is amended-- 7#a7 in paragraph 7#b71 by striking or at the end2 7#b7 in paragraph 7#c71 by striking the period at the end and inserting 2 or2 and 7#c7 by adding at the end the following3 7#d7 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 company4 4 #gjd4 ,,usps innovation officer and accountability 7a7 ,in general ,chapter #b is amended by adding at the end the following3 #bji4 ,,usps innovation officer and accountability 7a7 ,in general ,there shall be in the ,postal ,service a ,chief ,innovation ,officer selected by the ,postmaster ,general who shall have proven expertise and a record of success in #a or more of the following3 postal and shipping industry1 innovation product research and development1 marketing brand strategy1 emerging communications technology1 or business process management4 ,the ,chief ,innovation ,officer shall manage the ,postal ,service's development and implementation of innovative postal and nonpostal products and services4 7b7 ,duties ,the ,chief ,innovation ,officer shall have as primary duties-- 7#a7 leading the development of innovative nonpostal products and services that will maximize revenue to the ,postal ,service2 7#b7 developing innovative postal products and services1 particularly those that utilize emerging information technologies1 to maximize revenue to the ,postal ,service2 7#c7 monitoring the performance of innovative products and services and revising them as needed to meet changing market trends2 and 7#d7 taking into consideration comments or advisory opinions1 if applicable1 issued by the ,postal ,regulatory ,committee prior to the initial sale of innovative postal or nonpostal products and services4 7c7 ,designation 7#a7 ,deadline ,as soon as practicable after the date of enactment of this section1 but no later than ,january #a1 #bjad1 the ,postmaster ,general shall designate a ,chief ,innovation ,officer4 7#b7 ,condition ,nothing in this section shall be construed to prohibit an individual who holds another office or position in the ,postal ,service from serving as the ,chief ,innovation ,officer under this chapter4 ,however1 upon appointment to the position of the ,chief ,innovation ,officer1 such individual may not1 while serving in such office1 concurrently hold any other office or position in the ,postal ,service4 7d7 ,innovation strategy 7#a7 ,in general ,not later than #ab months after the date on which the ,chief ,innovation ,officer is designated under subsection 7c77#a71 the ,postmaster ,general shall submit to the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate and the ,committee on ,oversight and ,government ,reform of the ,house of ,representatives a comprehensive strategy for maximizing revenues through innovative postal and nonpostal products and services4 7#b7 ,matters to be addressed ,at a minimum1 the strategy required by this section shall address-- 7,a7 the specific innovative postal and nonpostal products and services to be developed and offered by the ,postal ,service1 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 introduced2 7,b7 the cost of developing and offering each product or service2 7,c7 the anticipated sales volume of each product and service2 7,d7 the anticipated revenues and profits expected to be generated by each product and service2 7,e7 the likelihood of success of each innovative product and service as well as the risks associated with the development and sale of each innovative product and service2 7,f7 the trends anticipated in market conditions that may affect the success of each product and service over the #e-year period beginning on the date such strategy or update is submitted2 and 7,g7 the metrics that will be utilized to assess the effectiveness of the innovation strategy4 7#c7 ,strategy updates ,on ,january #a1 #bjah1 and every #c years thereafter1 the ,chief ,innovation ,officer shall submit an update to the innovation strategy submitted under paragraph 7#a7 to the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate1 the ,committee on ,oversight and ,government ,reform of the ,house of ,representatives1 and the ,postal ,regulatory ,commission4 7e7 ,report on performance 7#a7 ,in general ,the ,postmaster ,general shall submit to the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate1 the ,committee on ,oversight and ,government ,reform of the ,house of ,representatives1 and the ,postal ,regulatory ,commission with the ,president's budget submission under section #aaje7;a7 of title #ca a report that details the ,postal ,service's progress in implementing the innovation strategy4 7#b7 ,matters to be addressed ,at a minimum1 the report required by this section shall address-- 7,a7 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 year2 7,b7 the total sales volume and revenue generated by each product and service on a monthly basis for the preceding year2 7,c7 trends in the markets filled by each product and service2 7,d7 products and services identified in the innovation strategy that are to be discontinued1 the date on which the discontinuance will occur1 and the reasons for the discontinuance2 7,e7 alterations in products and services identified in the innovation strategy that will be made to meet changing market conditions1 and an explanation of how these alterations will ensure the success of the products and services2 and 7,f7 the performance of the innovation strategy according to the metrics identified in subsection 7d77#b77;,g74 7f7 ,comptroller general 7#a7 ,in general ,the ,comptroller ,general shall conduct a study on the implementation of the innovation strategy not later than #d years after the date of enactment of this section4 7#b7 ,contents ,at a minimum1 the ,comptroller ,general shall assess the effectiveness of the ,postal ,service in identifying1 developing1 and selling innovative postal and nonpostal products and services4 ,the study shall also include-- 7,a7 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 this section and ending #d years after such date2 7,b7 the sales volume of each such product and service2 7,c7 the revenues and profits generated by each such product and service2 and 7,d7 the likelihood of continued success of each such product and service4 7#c7 ,submission ,the results of the study required under this subsection shall be submitted to the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate and the ,committee on ,oversight and ,government ,reform of the ,house of ,representatives4 4 7b7 ,clerical amendment ,the table of sections at the beginning of chapter #b is amended by adding at the end the following3 #bji4 ,,usps innovation officer and accountability4 4 #gje4 ,postal regulatory commission travel reporting ,section #ejd7;d7 is amended-- 7#a7 by striking 7d7 and inserting 7d77#a72 and 7#b7 by adding at the end the following3 7#b7 ,not later than #fj days after the end of each fiscal year1 the ,postal ,regulatory ,commissioners shall submit an itemized report describing all travel and reimbursable business travel expenses paid to each ,commissioner1 including the ,chairman1 when performing regulatory duties to the ,committee on ,oversight and ,government ,reform of the ,house of ,representatives and the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate4 ,the report submitted under this paragraph shall include a detailed justification for any travel or reimbursable business travel expense that deviates from the ,commission's travel and reimbursable business travel expense policies and guidelines4 4