,i  #aahth ,,congress  #b;d ,session    
,h4 ,r4 #ihci  ,,in ,,the ,,house ,,of  
,,representatives  ,september #be1 #bjbd
 ,mr4 ,la,turner introduced the         
following bill2 which was referred to   
the ,committee on ,oversight and        
,accountability  ,a ,,bill  ,to amend   
title #ci1 ,united ,states ,code1 to    
modernize the ,postal ,service          
regulations1 and for other purposes4    
#a4 ,modernizing postal regulations  7a7
 ,cost and efficiency reforms  7#a7 ,in 
general ,section #cfbb7;d7 of title #ci1
 ,united ,states ,code1 is amended--    
7,a7 in paragraph 7#a77;,a71 by striking
 to be set by and all that follows and  
inserting the following3  equal to the  
amount that is the difference between-- 
7i7 the percentage change in the        
,consumer ,price ,index for ,all ,urban 
,consumers unadjusted for seasonal      
variation over the most recent available
 #ab-month period preceding the date the
 ,postal ,service files notice of its   
intention to increase rates2 and  7ii7 a

 percentage determined by the           
,commission to be sufficient to ensure  
that the rate of cost growth of the     
,postal ,service will be significantly  
less than the percentage change         
described in clause 7i7 7but not less   
than zero72  2 and  7,b7 by amending    
paragraph 7#c7 to read as follows3  7#c7
 ,revisions ,in revising the system as  
permitted by subsection 7a71 the ,postal
 ,regulatory ,commission shall make no  
change which would cause the revised    
system to be inconsistent with this     
section4  4  7#b7 ,regulations ,not     
later than #fj days after the date of   
the enactment of this ,act1 the ,postal 
,regulatory ,commission shall issue such
 regulations as are necessary to carry  
out section #cfbb7;d77#a77;,a7 of title 
#ci1 ,united ,states ,code1 as amended  
by this subsection4  7b7 ,sanctions for 
certain failures of service  7#a7 ,in   
general ,subchapter ,,vii of chapter #cf
 of title #ci1 ,united ,states ,code1 is
 amended by adding at the end the       

following new section3  #cfic4          
,sanctions4  7a7 ,in general ,if1       
pursuant to section #cfec or a complaint
 proceeding conducted pursuant to       
section #cffb1 the ,postal ,regulatory  
,commission determines that the ,postal 
,service failed to meet a target        
established under section #cfib and that
 such failure is a covered failure1 the 
,commission may reduce the maximum      
amount by which the ,postal ,service may
 adjust the rates for the               
market-dominant products affected by    
such failure under section #cfbb1 except
 that such reduction may not cause such 
maximum amount to be less than zero4 ,in
 making such determination1 the         
,commission shall consider evidence of  
losses incurred by users of the product 
or products concerned as a result of the
 failure4  7b7 ,applicability  7#a7 ,in 
general ,a reduction under subsection   
7a7 to the maximum amount by which the  
,postal ,service may adjust the rates   
for a market-dominant product under     

section #cfbb shall apply only with     
respect to-- 7,a7 the first             
implementation of such an adjustment for
 such market-dominant product occurring 
during the period beginning on the date 
on which the ,postal ,regulatory        
,commission makes such reduction and    
ending on the date on which ,commission 
determines that the ,postal ,service is 
meeting the target established under    
section #cfib with respect to which the 
,commission made such reduction2 and    
7,b7 each subsequent implementation of  
such an adjustment for such             
market-dominant product occurring during
 such period to the extent determined   
appropriate by the ,commission4  7#b7   
,subsequent implementation determination
 ,in making the determination described 
in paragraph 7#a77;,b7 with respect to a
 reduction for a failure described in   
subsection 7a71 the ,postal ,regulatory 
,commission shall consider evidence of  
losses incurred by users of each product
 affected by such failure4  7c7 ,covered

 failure defined ,in this section1 the  
term covered failure means a failure to 
meet a target established under section 
#cfib-- 7#a7 that is not the result of a
 natural disaster or another disruptive 
event the cause of which was outside the
 control of the ,postal ,service2  7#b7 
that has persisted for a material period
 of time2 and  7#c7 with respect to     
which the ,postal ,service does not have
 a credible plan for achieving and      
maintaining performance sufficient to   
meet the targeted level within a        
reasonable time4  4  7#b7 ,clerical     
amendment ,the table of sections for    
chapter #cf of title #ci1 ,united       
,states ,code1 is amended by inserting  
after the item relating to section #cfib
 the following3  #cfic4 ,sanctions4  4  
7c7 ,improving change-in-,service       
procedures ,section #cffa of title #ci1 
,united ,states ,code1 is amended--     
7#a7 in subsection 7b7-- 7,a7 by        
striking ,when the and insert 7#a7 ,when
 the2  7,b7 by striking advisory opinion

 and inserting a decision2 and  7,c7 by 
adding at the end the following new     
paragraph3  7#b7  7,a7 ,in the absence  
of a decision with respect to a proposal
 under paragraph 7#a71 if the           
,commission determines that a plan or   
initiative of the ,postal ,service      
clearly indicates the need for a change 
described in such paragraph but such    
plan or initiative does explicitly make 
such a change a purpose or goal of such 
plan or initiative1 the ,commission     
shall order the ,postal ,service to     
explain why the ,postal ,service        
determined that the ,postal ,service did
 not need to submit a proposal to the   
,commission under such paragraph with   
respect to such plan or initiative4     
7,b7 ,an order under subparagraph 7,a7  
pursuant to a determination of the      
,commission described in such           
subparagraph shall include an           
explanation of the reasoning for such   
determination4  7,c7  7i7 ,if the       
,commission determines that the         

explanation of the ,postal ,service     
provided pursuant to subparagraph 7,a7  
is not sufficient to support the        
determination of the ,postal ,service   
that the ,postal ,service did not need  
to submit a proposal to the ,commission 
under paragraph 7#a7 with respect to a  
plan or initiative1 the ,postal ,service
 shall justify the change in the nature 
of postal services implied by the plan  
or initiative and1 to the extent        
necessary1 justify the underlying plan  
or initiative in a hearing before the   
,commission4  7ii7 ,each hearing under  
clause 7i7 shall be conducted in        
accordance with sections #eef and #eef  
of title #e4  7#c7 ,each decision of the
 ,postal ,regulatory ,commission under  
this subsection shall be transmitted to 
the ,governors of the ,postal ,service4 
,the ,governors may accept the decision 
or1 by unanimous written decision1      
reject the decision and adopt the       
original proposal of the ,postal        
,service1 in the case of a request by   

the ,postal ,service for a decision1 or 
approve the plan or initiative found by 
the ,commission to have required a      
decision under paragraph 7#b74 ,the     
decision of the ,governors shall be a   
final order for purposes of section     
#cffc of this title4 ,if the ,governors 
have not acted upon a ,commission       
decision within #fj days of receiving   
it1 the ,commission decision will be    
deemed a final order for purposes of    
section #cffc of this title4  2 and     
7#b7 in subsection 7c7--  7,a7 by       
inserting designated pursuant to section
 #eje of this title after officer of the
 ,commission2 and  7,b7 by striking his 
judgment and inserting the judgment of  
such ,commissioner4  7d7 ,one rate      
increase annually ,section              
#cfbb7;d77#a77;,b7 of title #ci1 ,united
 ,states ,code1 is amended by inserting 
after amounts the following3 1 except   
that rates may not change more          
frequently than once every #ab months4  
7e7 ,limit on underwater surcharges     

,section #cfbb7;d77#b7 of title #ci1    
,united ,states ,code1 is amended by    
adding at the end the following new     
subparagraph3  7,d7 ,use of rate        
authority for non-compensatory classes  
7i7 ,limitation ,notwithstanding        
paragraph 7#a77;,a71 the ,commission may
 authorize the ,postal ,service to      
increase the rates for a                
non-compensatory class in excess of     
annual limitation under paragraph       
7#a77;,a7 if-- 7,i7 the change in the   
attributable cost 7as such term is      
defined in section #cfca7 per piece of  
mail for such class does not exceed the 
annual limitation under paragraph       
7#a77;,a71 as determined using          
year-to-year comparable costing         
methodologies2  7,,ii7 in the           
immediately preceding fiscal year1 the  
,postal ,service has-- 7aa7 pursuant to 
section #cfeb and without the use of any
 proxy data not approved by the         
,commission1 directly measured and      
reported the compliance of the ,postal  

,service with the targets established   
under section #cfib for each product in 
such class for such fiscal year2 and    
7bb7 met each such target for such      
fiscal year2 and  7,,iii7 no target     
described in subclause 7,,ii7 for the   
immediately preceding fiscal year was   
reduced from the preceding fiscal year4 
7ii7 ,non-compensatory class defined ,in
 this subparagraph1 the term            
non-compensatory class means a class of 
mail for which the attributable costs   
7as defined in section #cfca7;b77 of the
 ,postal ,service exceed revenues of the
 ,postal ,service attributable to such  
class of mail4  4  7f7 ,case-,specific  
objectives ,section #cfbb of title #ci1 
,united ,states ,code1 is amended--     
7#a7 in subsection 7b71 in the matter   
preceding paragraph 7#a71 by inserting 1
 and all of which shall be applied to   
each class or type of mail service and  
product after others2 and  7#b7 in      
subsection 7c71 in the matter preceding 
paragraph 7#a71 by inserting after such 

system1 the following3 or when          
evaluating whether a class or type of   
mail service or product complies with   
the applicable provisions of this       
chapter and the regulations issues under
 such provisions14  7g7 ,retained       
earnings from cost savings ,section     
#cfbb7;b77#e7 of title #ci1 ,united     
,states ,code1 is amended by inserting  
after retained earnings the following3  
resulting from improvements in          
efficiency or reductions in cost only4  
7h7 ,office of the ,customer ,advocate  
7#a7 ,in general ,section #eje of title 
#ci1 ,united ,states ,code1 is amended  
to read as follows3  #eje4 ,office of   
the ,customer ,advocate  7a7 ,in general
 ,the ,postal ,regulatory ,commission   
shall establish in the ,postal          
,regulatory ,commission an ,office of   
the ,customer ,advocate 7in this section
 referred to as the ,office74  7b7      
,representation  7#a7 ,in general ,the  
,office shall represent the interests of
 the general public in all public       

proceedings of the ,commission1         
including the interests of customers of 
market-dominant products and classes4   
7#b7 ,rights and limits  7,a7 ,in       
general ,the ,office-- 7i7 shall have   
the same right as any interested person 
to lodge a complaint with or petition   
the ,commission1 or otherwise seek to   
have the ,commission initiate a public  
proceeding1 including rulemakings2 and  
7ii7 is subject to the same ex parte    
rules and limitations as any other      
litigant with respect to communication  
with the ,commission1 ,commissioners1   
and the advisory staff of the           
,commission4  7,b7 ,represent           
conflicting interest  7i7 ,in general   
,the ,office may represent conflicting  
interests of the general public in a    
public proceeding of the ,commission to 
the extent that the head of the ,office 
determines necessary for the ,office to 
effectively represent the interests of  
the general public in such proceeding4  
7ii7 ,separate representatives ,if the  

,office is representing conflicting     
interests of the general public in a    
public proceeding of the ,commission1   
the head of the ,office shall ensure    
that such conflicting interests are     
represented by different individuals to 
the extent and in such manner as the    
head of the ,office determines necessary
 for the ,office to effectively         
represent the interests of the general  
public in such proceeding4  7#c7 ,office
 autonomy ,the ,commission may not      
terminate or otherwise take adverse     
employment action against any employee  
of or individual detailed to the ,office
 based on the representation of the     
interests of the general public by such 
employee or detailee as an employee of  
or detailee to the ,office1             
respectively1 in a public proceeding of 
the ,commission1 except for cause4  7c7 
,research authority ,the ,office may--  
7#a7 conduct research and policy        
development for the purposes of         
representing the interests of the       

general public1 including research and  
policy development that is unrelated to 
a specific proceeding of the            
,commission2 and  7#b7 subject to the   
availability of funds1 obtain the       
temporary or intermittent services of   
experts or consultants for such         
purposes4  7d7 ,outside consultation    
,the ,office shall consult with outside 
persons and organizations whose postal  
interests are relevant to the mission of
 the ,office1 including those persons   
and organizations that are actual or    
potential litigants before the          
,commission4  7e7 ,rate and             
classification inquiry ,the ,office     
shall inquire into the rates and        
classifications of competitive products 
only to the extent necessary to evaluate
 compliance with sections #cfbb7;b77#h7 
and #cfbb7;b77#i7 of this title1        
subchapter ,,ii of chapter #cf of this  
title1 and the regulations issued under 
such subchapter4  7f7 ,office staff ,the
 ,commission shall ensure that1 to the  

extent practicable1 the ,office has     
employees of a sufficient quantity and  
quality for the ,office to effectively  
carry out the responsibilities of the   
,office under this section1 including by
 maximizing the duration of the detail  
of individuals detailed to the ,office4 
4  7#b7 ,clerical amendment ,the table  
of sections for chapter #e of title #ci1
 ,united ,states ,code1 is amended by   
striking the item relating to section   
#eje and inserting the following3  #eje4
 ,office of the ,customer ,advocate4  4 
7i7 ,complaint process improvement      
,section #cffb of title #ci1 ,united    
,states ,code1 is amended--  7#a7 in    
subsection 7b7-- 7,a7 in paragraph      
7#a7--  7i7 in the matter preceding     
subparagraph 7,a7-- 7,i7 by striking    
,the ,postal and inserting ,with respect
 to a complaint received under          
subsection 7a71 the ,postal2 and  7,,ii7
 by striking 1 within #ij days after    
receiving a complaint under subsection  
7a72 and  7ii7 in subparagraph 7,a7--   

7,i7 by striking clause 7i7 and         
inserting the following3  7i7 begin     
proceedings on such complaint--  7,i7   
immediately after the expiration of the 
period described in paragraph 7#c7 if   
the ,commission finds that such         
complaint raises material issues of fact
 or law and no motion described in      
clause 7ii7 with respect to such        
complaint is filed in such period2      
7,,ii7 immediately after the ,commission
 denies all motions described in clause 
7ii7 with respect to such complaint that
 were filed during the period described 
in paragraph 7#c7 if the ,commission    
finds that such complaint raises        
material issues of fact or law and all  
such motions are denied not later than  
#de days after the date on which the    
,commission received such complaint     
under such subsection2 or  7,,iii7 not  
later than #de days after the date on   
which the ,commission receives such     
complaint under such subsection if      
subclause 7,i7 and 7,,ii7 do not apply  

with respect to such complaint2 or  2   
and  7,,ii7 in clause 7ii7--  7aa7 by   
inserting before issue the following3 if
 the ,commission finds that1 after      
consideration of any motion asserting   
that such complaint raises no material  
issues of law or fact1 that such        
complaint raises no such issue1 upon    
making such finding2 and  7bb7 by       
inserting within #de days after         
receiving such complaint under such     
subsection after dismissing the         
complaint2 and  7,b7 by adding at the   
end the following new paragraph3  7#c7  
,prompt motions ,a motion described in  
subparagraph 7,a77ii7 with respect to a 
complaint may only be filed during the  
#be-;day period beginning on date on    
which such complaint is filed1 or during
 such shorter period as the ,postal     
,regulatory ,commission may prescribed  
by regulation4  2 and  7#b7 in          
subsection 7c7-- 7,a7 by striking or    
requiring and inserting requiring2 and  
7,b7 by inserting after competitive     

products the following3 or1 upon a      
finding that the ,postal ,service has   
unreasonably delayed the proceeding1    
ordering reimbursement consistent with  
section #cfha4  7j7 ,reimbursement of   
unlawful rates2 penalty for unreasonable
 delay ,section #cfha of title #ci1     
,united ,states ,code1 is amended--     
7#a7 by striking ,no mailer and         
inserting 7a7 ,no mailer2  7#b7 by      
striking through #cffd of this title1 or
 is superseded by a lower rate or fee   
established under subchapter ,,ii of    
this chapter2 and  7#c7 by adding at the
 end the following new subsection3  7b7 
7#a7 7,a7 ,if the ,postal ,regulatory   
,commissions determines that a rate or  
fee for a product is unlawful in a      
review conducted pursuant to section    
#cfec of this title or in a complaint   
proceeding conducted pursuant to section
 #cffb of this title1 the ,commission   
shall order the price increase authority
 for such product and all other products
 in the class of mail containing such   

product to be reduced 7but not below    
zero7 for the next following price      
adjustment and each succeeding price    
adjustments until the amount of foregone
 revenue is equal to amount of revenue  
received by the ,postal ,service from   
the portion of such rate or fee that    
exceeded the lawful amount such rate or 
fee4  7,b7 ,in this paragraph1 the term 
foregone revenue means the difference   
between-- 7i7 the revenue that the      
,postal ,service would have received    
from the sale of the products subject to
 an order under subparagraph 7,a7 during
 the period that the ,postal ,service is
 unable to increase the prices of such  
products pursuant to such order if--    
7,i7 the ,commission had not issued such
 order2 and  7,,ii7 the rate or fee for 
the product with the unlawful rate or   
fee for which the ,commission issued    
such order was the maximum lawful rate  
or fee for such product at the time the 
,commission issued such order2 and  7ii7
 the revenue the ,postal ,service       

receives from the sale of the products  
subject to such order during such       
period4  7#b7 7,a7 ,in a complaint      
proceeding conducted pursuant to section
 #cffb of this title1 if the ,postal    
,regulatory ,commission finds that the  
,postal ,service has unreasonably       
delayed the proceeding1 the ,commission 
may order a reduction in the price      
increase authority for the product or   
products whose rate or fee it has       
determined to be unlawful to the extent 
that the unreasonable delay caused by   
the ,postal ,service has extended the   
time during which users of such product 
or products have paid the unlawful rate 
or fee4  7,b7 ,a reduction under        
subparagraph 7,a7 shall be in addition  
to any reduction under paragraph 7#a74  
7,c7 ,the ,commission shall include in  
an order under subparagraph 7,a7 with   
respect to the unreasonably delay of a  
proceeding an explanation of the basis  
for the determination of the ,commission
 regarding the time such proceeding     

would have required absent such         
unreasonable delay4  4  7k7 ,mail volume
 system objective ,section #cfbb7;b7 of 
title #ci1 ,united ,states ,code1 is    
amended-- 7#a7 by redesignating         
paragraph 7#i7 as paragraph 7#aj72 and  
7#b7 by inserting after paragraph 7#h7  
the following new paragraph3  7#i7 ,to  
maintain and1 to the extent practicable1
 increase the volume of market-dominant 
mail1 with due regard to total          
contribution to the institutional costs 
of the ,postal ,service4  4  7l7 ,new   
product definition criteria ,section    
#cfdb7;b77#c7 of title #ci1 ,united     
,states ,code1 is amended-- 7#a7 in     
subparagraph 7,b71 by striking and2     
7#b7 in subparagraph 7,c71 by striking  
the period at the end and inserting 2   
and2 and  7#c7 by adding at the end the 
following new subparagraph3  7,d7 the   
importance of paragraphs 7#g71 7#h71 and
 7#aa7 of section #cfbb7;c7 of this     
title in the appropriate definition of  
market-dominant products4  4  7m7 ,mail 

volume estimation model  7#a7 ,in       
general ,not later than #abj days after 
the date of the enactment of this ,act1 
the ,postal ,regulatory ,commission     
shall develop a model for estimating the
 demand for postal services4  7#b7      
,independent development ,the           
,commission may not consider any models 
for estimating demand developed by the  
,postal ,service when developing the    
model required under this subsection4   
7#c7 ,public comment ,in developing the 
model required under this subsection1   
the ,postal ,regulatory ,commission     
shall solicit and provide adequate      
opportunity for public comment regarding
 the model4  7#d7 ,regulations ,the     
,postal ,regulatory ,commission may     
issue such regulations1 after notice and
 comment in accordance with section #eec
 of title #e1 ,united ,states ,code1 as 
the ,commission determines necessary to 
develop the model required under this   
subsection4  7#e7 ,expert advisors ,the 
,commission may obtain the temporary or 

intermittent services of experts or     
consultants to facilitate the           
development of the model required under 
this subsection4  7n7 ,labor dispute    
arbitration considerations ,section     
#abjg7;c77#b7 of title #ci1 ,united     
,states ,code1 is amended by inserting  
after they may elect4 the following3    
,when making a decision1 the arbitration
 board shall consider the current and1  
to the extent practicable1 projected    
financial condition of the ,postal      
,service in addition to any other       
relevant considerations44  #b4          
,investment of the postal service       
retiree health benefits funds ,section  
#hiji;a7c7 of title #e1 ,united ,states 
,code1 is amended--  7#a7 by striking   
7c7 ,the ,secretary and inserting       
7c77#a7 ,subject to paragraph 7#b71 the 
,secretary2 and  7#b7 by adding at the  
end the following3  7#b7  7,a7 ,the     
,secretary of the ,treasury shall       
immediately invest a specified          
percentage of the ,fund1 using one or   

more qualified professional asset       
managers1 in index funds modeled after  
those established under subparagraphs   
7,b71 7,c71 7,d71 and 7,e7 of section   
#hdch7;b77#a74 ,the ,secretary shall    
ensure1 to the maximum extent           
practicable1 that the investment        
replicates the performance of the       
longest-term target date asset          
allocation investment fund established  
by the ,federal ,retirement ,thrift     
,investment ,board4  7,b7 ,in exercising
 authority under subparagraph 7,a71     
including in the selection of specific  
qualified professional asset managers   
and in the development of specific      
investment guidelines to meet the       
requirement of such subparagraph1 the   
,secretary shall consult with the       
,postal ,service ,retiree ,health       
,benefits ,fund ,investment ,committee4 
7,c7  7i7 ,there is established a       
,postal ,service ,retiree ,health       
,benefits ,fund ,investment ,committee  
that shall consist of-- 7,i7 the        

,secretary2  7,,ii7 the ,chair of the   
,board of ,governors of the ,united     
,states ,postal ,service2  7,,iii7 the  
,chairman of the ,federal ,retirement   
,thrift ,investment ,board2 and  7,,iv7 
two members1 appointed by the           
,president1 who-- 7aa7 shall represent  
the interests of ,postal ,service       
employees and annuitants2  7bb7 have    
experience and expertise in the         
management of financial investments and 
,postal ,service employee benefits2 and 
7cc7 shall serve for a term of #c years4
  7ii7 ,subsections 7b77#a7 and 7c77#b7 
of section #hdgg shall apply with       
respect to the ,postal ,service ,retiree
 ,health ,benefits ,fund ,investment    
,committee and each member of the       
,postal ,service ,retiree ,health       
,benefits ,fund ,investment ,committee  
in the same manner as such subsections  
apply to a fiduciary with respect to the
 ,thrift ,savings ,fund4  7,d7 7i7 ,the 
,secretary shall annually engage an     
independent qualified public accountant 

7as defined in section #hdci7 to audit  
and provide a report on the financial   
statements of the investments made      
pursuant to subparagraph 7,a74  7ii7    
,not later than #ahj days after the end 
of each fiscal year beginning after the 
date of the enactment of this paragraph1
 the ,secretary shall submit to         
,congress an annual management report   
regarding the ,fund that includes-- 7,i7
 a statement of financial position2     
7,,ii7 a statement of operations2       
7,,iii7 a statement of cash flows2      
7,,iv7 a statement on internal          
accounting and administrative control   
systems2  7,v7 the most recent report   
resulting from an audit of the financial
 statements of the investments conducted
 under clause 7i72 and  7,,vi7 any other
 comments and information the ,secretary
 determines necessary to inform the     
,congress about the operations and      
financial condition of the investments4 
7,e7 ,in this paragraph--  7i7 the term 
specified percentage means #be percent  

of the currently available portions of  
the ,fund as are not immediately        
required for payments from the ,fund1   
except that the ,postal ,service        
,retiree ,health ,benefits ,fund        
,investment ,committee may specify a    
higher percentage1 not to exceed #cj    
percent1 not earlier than #e years after
 the date of enactment of the ,postal   
,service ,financial ,improvement ,act of
 #bjai1 and as appropriate thereafter2  
and  7ii7 the term qualified            
professional asset manager has the      
meaning given that term in section      
#hdch7;a74  4