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WRI11284 DISCUSSION DRAFT S.L.C.

112TH CONGRESS1ST SESSION S.ll

To amend the provisions of title 5, United States Code, relating to the

methodology for calculating the amount of any Postal surplus or supple-

mental liability under the Civil Service Retirement System, and for other

purposes.

IN THE SENATE OF THE UNITED STATES

llllllllll

Mr. CARPER introduced the following bill; which was read twice and referred

to the Committee onllllllllll

A BILL

To amend the provisions of title 5, United States Code,

relating to the methodology for calculating the amount

of any Postal surplus or supplemental liability under

the Civil Service Retirement System, and for other pur-

poses.

Be it enacted by the Senate and House of Representa-1

tives of the United States of America in Congress assembled,2

SECTION 1. SHORT TITLE.3

This Act may be cited as the Postal Operations4

Sustainment and Transformation Act of 2011.5

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TITLE IANNUITY AND RETIREE1

HEALTH OBLIGATIONS2

SEC. 101. TRANSFER OF AMOUNTS FROM THE CIVIL SERV-3

ICE RETIREMENT AND DISABILITY FUND.4

Section 8348(h) of title 5, United States Code, is5

amended6

(1) in paragraph (2), by striking subparagraphs7

(B) and (C) and inserting the following:8

(B)(i) The Office shall9

(I) redetermine the Postal surplus or10

supplemental liability as of the close of11

each of fiscal years 2010 through 2043, as12

if this subsection (as amended by the Post-13

al Operations Sustainment and Trans-14

formation Act of 2011) had been in effect15

since July 1, 1971; and16

(II) report the results of the redeter-17

mination for each such fiscal year, includ-18

ing appropriate supporting analyses and19

documentation, to the United States Postal20

Service on or before June 30 of the subse-21

quent fiscal year.22

(ii) If the result of a redetermination23

under clause (i) for a fiscal year is a surplus,24

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that amount shall remain in the Fund until dis-1

tribution is authorized under subparagraph (C).2

(iii) Beginning June 15, 2017, if the re-3

sult of a redetermination under clause (i) is a4

supplemental liability, the Office shall establish5

an amortization schedule, including a series of6

annual installments commencing on September7

30 of the subsequent fiscal year, that provides8

for the liquidation of such liability by Sep-9

tember 30, 2043.10

(C)(i) If the result of a redetermination11

under subparagraph (B) for fiscal year 2010,12

2011, 2012, 2013, 2014, 2015, or 2016 is a13

surplus, that amount, or any part of that14

amount, may be transferred to the Postal Serv-15

ice Retiree Health Benefits Fund.16

(ii) If the result of a redetermination17

under subparagraph (B) for any of fiscal years18

2017 through 2043 is a surplus, that amount,19

or any part of that amount, may be transferred20

to21

(I) the Postal Service Retiree Health22

Benefits Fund to pay any liability to the23

United States Postal Service Retiree24

Health Benefits Fund; or25

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(II) if all liability to the Postal Serv-1

ice Retiree Health Benefits Fund is paid2

(aa) the Employees Compensa-3

tion Fund established under section4

8147; or5

(bb) the United States Postal6

Service for the repayment of any obli-7

gation issued under section 2005 of8

title 39.9

(iii) Any transfer under clause (i) shall10

be11

(I) made at the discretion of the12

Board of Governors of the Postal Service13

in the amount determined by the Board of14

Governors, except the amount may not ex-15

ceed the amount under section16

8909a(d)(3)(A) remaining to be paid for17

the applicable fiscal year; and18

(II) credited to the United States19

Postal Service for payment of the amount20

required under section 8909a(d)(3)(A) for21

the applicable fiscal year.22

(iv) Any transfer under clause (ii) shall23

be24

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(I) made at the discretion of the1

Board of Governors of the Postal Service2

in the amount determined by the Board of3

Governors;4

(II) if transferred to the Postal Serv-5

ice Retiree Health Benefits Fund, credited6

to the United States Postal Service for7

payment of any liability of the United8

States Postal Service to the Postal Service9

Retiree Health Benefits Fund for the ap-10

plicable fiscal year; and11

(III) if transferred to the Employees12

Compensation Fund established under sec-13

tion 8147, credited to the United States14

Postal Service for payment of any liability15

of the United States Postal Service under16

chapter 81 for the applicable fiscal year.17

(v) The Board of Governors shall18

(I) provide written notice to the Of-19

fice of any amount to be transferred under20

this clause, not later than September 15 of21

the fiscal year following the fiscal year for22

which the Office determines there is a23

Postal surplus; and24

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(II) take all actions of the Board1

under this clause by a majority vote.2

(vi) The Office shall transfer any amount3

determined by the Board of Governors to the4

credit of the United States Postal Service in ac-5

cordance with this clause.; and6

(2) by adding at the end the following:7

(4) To the extent that a determination under8

paragraph (1)(A) of the benefits attributable to civil-9

ian employment with the United States Postal Serv-10

ice is based on the first sentence of section 8339(a),11

such determination shall be made in accordance with12

such sentence and otherwise applicable provisions of13

law, subject to the following:14

(A) The average pay used in the case of15

any individual shall be a single amount, deter-16

mined in accordance with section 8331(4), tak-17

ing into account the rates of basic pay in effect18

for such individual during the periods of cred-19

itable service performed by such individual.20

Nothing in this subsection shall be construed to21

permit or require22

(i) one determination of average pay23

with respect to service performed with the24

United States Postal Service; and25

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(ii) a separate determination of aver-1

age pay with respect to service performed2

with its predecessor entity in function, or3

any other entity.4

(B) With respect to an annuity calculated5

under section 8339(a), the Office shall calculate6

the portion of such annuity attributable to civil-7

ian employment with the United States Postal8

Service which follows any other period of cred-9

itable service under section 8332 (whether with10

an entity referred to under subparagraph11

(A)(ii) or otherwise) by12

(i) determining the period of cred-13

itable service not attributable to civilian14

employment with the United States Postal15

Service;16

(ii) adding the applicable percentages17

under section 8339(a) to determine the18

overall percentage earned under section19

8339(a) for the period of creditable service20

determined under clause (i);21

(iii) multiplying the overall percent-22

age calculated under clause (ii) by the av-23

erage pay (calculated in accordance with24

subparagraph (A)) to determine the por-25

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tion of the annuity that is not attributable1

to civilian employment with the United2

States Postal Service; and3

(iv) subtracting the portion of the4

annuity calculated under clause (iii) from5

the total annuity to determine the portion6

of the annuity attributable to civilian em-7

ployment with the United States Postal8

Service.9

(C) The calculation under subparagraph10

(B) shall apply to all benefit payments that11

have been issued, or which may be issued on or12

after the date of enactment of the Postal Oper-13

ations Sustainment and Transformation Act of14

2011, that are allocable to the portion of the15

annuity attributable to civilian employment with16

the United States Postal Service under sub-17

paragraph (B), including benefits payable to in-18

dividuals who, at the time of the calculation,19

are retired or employees eligible for benefits20

under the Civil Service Retirement System.21

(D) The assets allocable to the Postal22

Fund balance under paragraph (1)(B)(ii) shall23

be adjusted to reflect the allocation required24

under subparagraph (C) for the portion of ben-25

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efits that are not attributable to civilian em-1

ployment with the United States Postal Service2

and that were paid before the date of enact-3

ment of the Postal Operations Sustainment and4

Transformation Act of 2011.5

(E)(i) Except as provided in clause (ii),6

the requirements of subparagraphs (B), (C),7

and (D) shall not require the Office to revise8

(I) any valuation or other report9

issued before the date of enactment of the10

Postal Operations Sustainment and Trans-11

formation Act of 2011; or12

(II) any valuation or report that is13

issued before the date that is 90 days after14

the date of enactment of the Postal Oper-15

ations Sustainment and Transformation16

Act of 2011.17

(ii)(I) The first actuarial valuation issued18

after the date that is 90 days after the date of19

enactment of the Postal Operations20

Sustainment and Transformation Act of 201121

shall reflect the retroactive allocation of all past22

service liabilities as specified in this paragraph23

and corresponding adjustment of assets.24

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(II) Each actuarial valuation thereafter1

shall reflect the subsequent changes in liabilities2

and assets.3

(F) If the Office lacks complete data nec-4

essary to make a determination required under5

this subsection, the Office shall use its best esti-6

mate and shall provide the United States Postal7

Service with a written report describing the8

method and any assumptions used in making9

the determination.10

(G)(i) Not later than 10 days after mak-11

ing any determination under this subsection,12

the Office shall notify the United States Postal13

Service of the determination.14

(ii) Not later than 30 days after the date15

on which the United States Postal Service re-16

ceives the notice under clause (i), the United17

States Postal Service may request from the Of-18

fice all supporting documentation reasonable19

and necessary to review the determination.20

(iii) The Office shall respond fully to a21

request under clause (ii) not later than 30 days22

after the date on which the Office receives the23

request.24

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(iv) Not later than 90 days after the date1

on which the United States Postal Service re-2

ceives the information requested under clause3

(ii), the United States Postal Service may ap-4

peal the determination of the Office to the5

Board of Actuaries of the Civil Service Retire-6

ment System. The Board of Actuaries shall re-7

view the computations of the Office and may8

make any adjustment with respect to any such9

amount which the Board determines appro-10

priate. A determination by the Board of Actu-11

aries under this paragraph shall be final..12

SEC. 102. TRANSFER OF AMOUNTS FROM THE FEDERAL EM-13

PLOYEES RETIREMENT SYSTEM.14

(a) POSTAL SERVICE SURPLUS OR LIABILITY BASED15

ON FEDERAL EMPLOYEES RETIREMENT SYSTEM CON-16

TRIBUTIONS.Section 8461 of title 5, United States17

Code, is amended by adding at the end the following:18

(o)(1) In this subsection, the term Postal surplus19

or supplemental liability means the estimated difference,20

as determined by the Office, between21

(A) the actuarial present value of all future benefits22

payable from the System under this chapter from the23

Fund? to current or former employees of the United24

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States Postal Service and attributable to civilian employ-1

ment with the United States Postal Service; and2

(B) the sum of3

(i) the actuarial present value of deductions to4

be withheld from the future basic pay of employees5

of the United States Postal Service currently subject6

to this subchapter under section 8334;7

(ii) that portion of the System balance - bal-8

ance of the Civil Service Retirement and Disability9

Fund?, as of the date the Postal surplus or supple-10

mental liability is determined, attributable to pay-11

ments to the System by the United States Postal12

Service and its employees, minus benefit payments13

attributable to civilian employment with the United14

States Postal Service, plus the earnings on such15

amounts while in the System; and16

(iii) any other appropriate amount, as deter-17

mined by the Office in accordance with generally ac-18

cepted actuarial practices and principles.19

(2)(A) The Office shall determine the Postal surplus20

or supplemental liability as of the close of the fiscal year21

ending September 30, 2010, and for each fiscal year there-22

after.23

(B)(i) If the result of a determination under sub-24

paragraph (A) for a fiscal year is a surplus, the amount25

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of the surplus shall remain in the System until distribution1

is authorized under this subparagraph.2

(ii) If the result of a determination under subpara-3

graph (A) for fiscal year 2010, 2011, 2012, 2013, 2014,4

2015, 2016, or 2017 is a surplus, that amount, or any5

part of that amount, may be transferred to the Postal6

Service Retiree Health Benefits Fund.7

(iii) If the result of a determination under subpara-8

graph (A) for fiscal year 2017, or any fiscal year there-9

after, is a surplus, that amount, or any part of that10

amount, may be transferred to11

(I) the Postal Service Retiree Health Benefits12

Fund to pay any liability to the Postal Service Re-13

tiree Health Benefits Fund; or14

(II) if all liability to the Postal Service Retiree15

Health Benefits Fund is paid16

(aa) the Employees Compensation Fund17

established under section 8147; or18

(bb) the United States Postal Service for19

the repayment of any obligation issued under20

section 2005 of title 39.21

(iv) Any transfer under clause (ii) shall be22

(I) made at the discretion of the Board of23

Governors of the Postal Service in the amount deter-24

mined by the Board of Governors, except the25

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amount may not exceed the amount under section1

8909a(d)(3)(A) remaining to be paid for the applica-2

ble fiscal year; and3

(II) credited to the Postal Service for payment4

of the amount required under section5

8909a(d)(3)(A) for the applicable fiscal year.6

(v) Any transfer under clause (iii) shall be7

(I) made at the discretion of the Board of8

Governors of the Postal Service in the amount deter-9

mined by the Board of Governors;10

(II) if transferred to the Postal Service Re-11

tiree Health Benefits Fund, credited to the Postal12

Service for payment of any liability of the Postal13

Service to the Postal Service Retiree Health Benefits14

Fund for the applicable fiscal year; and15

(III) if transferred to the Employees Com-16

pensation Fund established under section 8147,17

credited to the Postal Service for payment of any li-18

ability of the Postal Service under chapter 81 for the19

applicable fiscal year.20

(vi) The Board of Governors shall21

(I) provide written notice to the Office of any22

amount to be transferred under this subparagraph23

not later than September 15 of the fiscal year fol-24

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lowing the fiscal year for which the Office deter-1

mines there is a Postal surplus; and2

(II) take all actions of the Board under this3

subparagraph by a majority vote.4

(vii) The Office shall transfer any amount deter-5

mined by the Board of Governors to the credit of the Post-6

al Service in accordance with this subparagraph.7

(C)(i) Beginning June 15, 2017, if the result of a8

determination under subparagraph (A) is a supplemental9

liability, the Office shall establish an amortization sched-10

ule, including a series of annual installments commencing11

on September 30 of the subsequent fiscal year, which pro-12

vides for the liquidation of such liability over 30 years.13

(ii) An amortization schedule under this subpara-14

graph shall be established in accordance with generally ac-15

cepted actuarial practices and principles, with interest16

computed at the rate used in the then most recent valu-17

ation of the System.18

(iii) The United States Postal Service shall pay each19

amount required under an amortization schedule under20

this subparagraph to the Office, not later than the date21

scheduled by the Office.22

(3) Notwithstanding any other provision of law, the23

amount of any payment under any other subsection of this24

section that is based upon the amount of the supplemental25

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liability shall be computed disregarding the portion of the1

supplemental liability that the Office determines will be2

liquidated by payments under this subsection.3

(4)(A) Not later than 10 days after making a deter-4

mination under paragraph (2), the Office shall notify the5

United States Postal Service of the determination.6

(B) Not later than 30 days after the date on which7

the United States Postal Service receives the notice under8

subparagraph (A), the United States Postal Service may9

request from the Office all supporting documentation rea-10

sonable and necessary to review the determination.11

(C) The Office shall respond fully to a request under12

subparagraph (B) not later than 30 days after the date13

on which the Office receives the request.14

(D) Not later than 90 days after the date on which15

the United States Postal Service receives the information16

requested under subparagraph (B), the United States17

Postal Service may appeal the determination of the Office18

to the Board of Actuaries of the Civil Service Retirement19

System. The Board of Actuaries shall review the computa-20

tions of the Office and may make any adjustment with21

respect to any such amount which the Board determines22

appropriate. A determination by the Board of Actuaries23

under this subsection shall be final..24

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SEC. 103. CALCULATING THE POSTAL SERVICE RETIREE1

HEALTH BENEFITS FUND LIABILITY ON2

LONG-TERM FUNDING BASIS.3

Section 8909a(d)(4) of title 5, United States Code,4

is amended to read as follows:5

(4) Computations under this subsection shall be6

(A) made consistent with the entry-age normal7

cost method; and8

(B) based on9

(i) the economic assumptions used in de-10

termining the Postal surplus or supplemental li-11

ability under section 8348(h) of this title, ex-12

cept that a different discount rate may be ap-13

plied if necessary to reflect the experience of14

the Postal Service Retiree Health Benefits?15

Fund; and16

(ii) such other assumptions, including a17

health care cost trend rate, as the Board of Ac-18

tuaries of the Civil Service Retirement System19

determine appropriate..20

SEC. 104. REPORTING OF DATA BASED ON ASSUMPTIONS21

OF BOARD OF ACTUARIES.22

Section 3654(b)(2) of title 39, United States Code,23

is amended by adding at the end the following: The Of-24

fice shall at a minimum provide data that are based on25

the assumptions set by the Board of Actuaries of the Civil26

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Service Retirement System and used in the actuarial valu-1

ation of the Postal Services annuity and postretirement2

health obligations under sections 8348 and 8909a..3

TITLE IIPOSTAL SERVICE4

RESTRUCTURING5

SEC. 201. POSTAL POLICY.6

Section 101(b) of title 39, United States Code, is7

amended8

(1) by striking a maximum degree of; and9

(2) by striking where post offices and all that10

follows through a deficit.11

SEC. 202. SPECIFIC POWERS OF THE UNITED STATES POST-12

AL SERVICE.13

Section 404(d)(2) of title 39, United States Code, is14

amended15

(1) by redesignating subparagraphs (A) and16

(B) as subparagraphs (B) and (C), respectively;17

(2) by inserting before subparagraph (B), as so18

redesignated, the following:19

(A) shall give primary consideration to20

whether such closing or consolidation is con-21

sistent with the intent of Congress, as stated in22

section 101(b), that the Postal Service shall23

provide effective and regular postal services to24

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rural areas, communities, and small towns;;1

and2

(3) in subparagraph (B), as so redesignated3

(A) by striking clause (iii); and4

(B) by redesignating clauses (iv) and (v)5

as clauses (iii) and (iv), respectively.6

SEC. 203. EXPANSION OF RETAIL ALTERNATIVES.7

(a) IN GENERAL.The United States Postal Service8

shall develop a plan for the expansion of retail alternatives9

to post offices, such as10

(1) self-service kiosks;11

(2) vending machines;12

(3) the Internet;13

(4) Postal Service employees or contractors on14

delivery routes; and15

(5) contract postal units.16

(b) CONTENTS.In developing the plan under sub-17

section (a), the Postal Service shall18

(1) where possible, provide for an increase in19

customers access to postal services;20

(2) consider the impact of any decisions on21

small communities and rural areas; and22

(3) ensure that23

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products that guarantee Postal Service customers a degree1

of access to postal services that is consistent with2

(1) the obligations of the United States Postal3

Service under section 101(b) of title 39, United4

States Code, as amended by this Act; and5

(2) the contents of the plan developed under6

section 203 of this Act.7

SEC. 205. NO LIMITATION ON CHANGES IN FREQUENCY OF8

MAIL DELIVERY.9

Notwithstanding any other provision of law, the10

United States Postal Service shall exercise its authority11

under section 3691 of title 39, United States Code, to ad-12

just the frequency of the delivery of market-dominant13

products.14

SEC. 206. TIME LIMITS FOR CONSIDERATION OF SERVICE15

CHANGES.16

Section 3661 of title 39, United States Code, is17

amended by striking subsections (b) and (c) and inserting18

the following:19

(b) PROPOSED CHANGES FOR MARKET-DOMINANT20

PRODUCTS.21

(1) SUBMISSION OF PROPOSAL.If the Postal22

Service determines that there should be a change in23

the nature of postal services relating to market-dom-24

inant products that will generally affect service on a25

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nationwide or substantially nationwide basis, it shall1

submit a proposal to the Postal Regulatory Commis-2

sion requesting an advisory opinion on the change.3

(2) ADVISORY OPINION.Upon receipt of a4

proposal under paragraph (1), the Postal Regulatory5

Commission shall6

(A) provide an opportunity for public7

comment on the proposal; and8

(B) not later than 90 days after the date9

of receipt, issue an advisory opinion.10

(3) RESPONSE TO OPINION.The Postal Serv-11

ice shall submit to the President and to Congress a12

response to the advisory opinion issued under para-13

graph (2), including any recommendations contained14

therein.15

(4) ACTION ON PROPOSAL.The Postal Serv-16

ice may take action regarding a proposal submitted17

under paragraph (1)18

(A) on or after the date that is 30 days19

after the date on which the Postal Service sub-20

mits the response required under paragraph21

(3); or22

(B) after the date described in paragraph23

(2)(B), if24

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(i) the Postal Regulatory Commis-1

sion fails to issue an advisory opinion on2

or before the date described in paragraph3

(2)(B); and4

(ii) the action is not otherwise pro-5

hibited under Federal law..6

TITLE IIIENHANCED7

COMMERCIAL FLEXIBILITY8

SEC. 301. COOPERATION WITH OTHER AGENCIES.9


amended in the first sentence by striking and the Gov-11

ernment Printing Office inserting , the Government12

Printing Office, and agencies and other units of State and13

local governments.14

SEC. 302. WINE AND BEER SHIPPING.15

(a) MAILABILITY.16

(1) NONMAILABLE ARTICLES.Section 1716(f)17

of title 18, United States Code, is amended by strik-18

ing mails and inserting mails, except to the ex-19

tent that the mailing is allowable under section20

3001(p) of title 39.21

(2) INTOXICANTS.Section 1154(a) of title 18,22

United States Code, is amended, by inserting or,23

with respect to the mailing of wine or malt bev-24

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erages, to the extent allowed under section 3001(p)1

of title 39 after mechanical purposes.2

(b) REGULATIONS.Section 3001 of title 39, United3

States Code, is amended by adding at the end the fol-4

lowing:5

(p)(1) Wine or malt beverages shall be considered6

mailable if mailed7

(A) by a licensed winery or brewery, in accord-8

ance with applicable regulations under paragraph9

(2); and10

(B) in accordance with the law of the State,11

territory, or district of the United States where the12

addressee or duly authorized agent takes delivery.13

(2) The Postal Service shall prescribe such regula-14

tions as may be necessary to carry out this subsection,15

including regulations providing that16

(A) the mailing shall be by a means estab-17

lished by the Postal Service to ensure direct delivery18

to the addressee or a duly authorized agent at a19

postal facility;20

(B) the addressee (and any duly authorized21

agent) shall be an individual at least 21 years of22

age, and shall present a valid, government-issued23

photo identification at the time of delivery;24

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(C) the wine or malt beverages may not be for1

resale or other commercial purpose; and2

(D) the winery or brewery involved shall3

(i) certify in writing to the satisfaction of4

the Postal Service, through a registration proc-5

ess administered by the Postal Service, that the6

mailing is not in violation of any provision of7

this subsection or regulation prescribed under8

this subsection; and9

(ii) provide any other information or af-10

firmation that the Postal Service may require,11

including with respect to the prepayment of12

State alcohol beverage taxes.13

(3) For purposes of this subsection14

(A) a winery shall be considered to be licensed15

if it holds an appropriate basic permit issued16

(i) under the Federal Alcohol Administra-17

tion Act; and18

(ii) under the law of the State in which19

the winery is located; and20

(B) a brewery shall be considered to be li-21

censed if22

(i) it possesses a notice of registration23

and bond approved by the Alcohol and Tobacco24

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Tax and Trade Bureau of the Department of1

the Treasury; and2

(ii) it is licensed to manufacture and sell3

beer in the State in which the brewery is lo-4

cated..5

(c) EFFECTIVE DATE.The amendments made by6

this section shall take effect on the earlier of7

(1) the date on which the Postal Service issues8

regulations under section 3001(p) of title 39, United9

States Code, as amended by this section; and10

(2) 120 days after the date of enactment of this11

Act.12

SEC. 303. PRESERVING VOLUME.13

(a) MODERN RATE REGULATION.Section14

3622(c)(10) of title 39, United States Code, is amended15

by striking subparagraph (A) and inserting the following:16

(A) result in compliance by the applicable17

class of mail with the standard under para-18

graph (2); and.19

(b) NEW PRODUCTS AND TRANSFERS OF PRODUCTS20

BETWEEN THE MARKET-DOMINANT AND COMPETITIVE21

C ATEGORIES OF MAIL.Section 3642(d) of title 39,22

United States Code, is amended23

(1) in subsection (d), by adding at the end the24

following:25

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(3) TIMING OF REVIEW.The Postal Regu-1

latory Commission shall issue a final decision on any2

request to add, transfer, or remove3

(A) a market-dominant product or com-4

petitive product of general applicability, not5

later than 45 days after the date of the filing6

of the request; and7

(B) a competitive product that is not of8

general applicability, not later than 15 days9

after the date of the filing of the request.; and10

(2) in subsection (e)11

(A) in paragraph (2), by striking the pe-12

riod at the end and inserting ; and;13

(B) by redesignating paragraphs (1) and14

(2) as subparagraphs (A) and (B), respectively,15

and adjusting the margins accordingly;16

(C) by striking unless it and inserting17

the following: unless18

(1) it; and19

(D) by adding at the end the following:20

(2) the Postal Regulatory Commission has21

(A) issued a final decision under sub-22

section (d); or23

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(B) failed to issue a final decision under1

subsection (d) before the date required under2

subsection (d)(3)..3

SEC. 304. NON-POSTAL PRODUCTS AND SERVICES.4

(a) SPECIFIC POWERS.Section 404 of title 39,5

United States Code, is amended6

(1) in subsection (a)7

(A) by redesignating paragraphs (6)8

through (8) as paragraphs (7) through (9), re-9

spectively; and10

(B) by inserting after paragraph (5) the11

following:12

(6) to provide other services that are not post-13

al services, as defined in section 102(5), after14

(A) the Postal Regulatory Commission15

(i) makes a determination under sec-16

tion 3642 that the provision of such serv-17

ices utilizes the processing, transportation,18

delivery, retail network, or technology of19

the Postal Service in a manner that is con-20

sistent with the public interest and that21

does not create unfair competition; and22

(ii) publishes the notice required23

under section 3642(d)(1) with respect to24

the determination; and25

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(B) classifying each such service as a1

market-dominant product, competitive product,2

experimental product, or new product, as re-3

quired under chapter 36 of title 39, United4

States Code;; and5

(2) in subsection (e)(1), by inserting before the6

period at the end the following: , except that the7

term nonpostal service shall not include any service8

that may be offered pursuant to specific authority in9

this title or pursuant to other statutory authority.10

TITLE IVMISCELLANEOUS11

PROVISIONS12

SEC. 401. ARBITRATION; LABOR DISPUTES.13

Section 1207(c)(2) of title 39, United States Code,14

is amended15

(1) by inserting (A) after (2);16

(2) by striking the last sentence and inserting17

The arbitration board shall render a decision not18

later than 45 days after the date of its appoint-19

ment.; and20


(B) In rendering a decision under this para-22

graph, the arbitration board shall consider such rel-23

evant factors as24

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(i) the financial condition of the Postal1

Service;2

(ii) the flexibilities and restrictions in the3

rate system established under the Postal Ac-4

countability and Enhancement Act (Public Law5

109435; 120 Stat. 3198), and the amend-6

ments made by that Act; and7

(iii) the requirement related to pay and8

compensation comparability under section9

1003(a) of this title..10

SEC. 402. REVISED REPORTING REQUIREMENT.11

Section 3652(a) of title 39, United States Code, is12

amended by striking 90 days after the end of each year13

and inserting the next January 15 after the end of each14

year.15

SEC. 403. DELEGATION OF AUTHORITY.16


amended to read as follows:18

402. Delegation of authority19

(a) DELEGATION PERMITTED.The Board of Gov-20

ernors may delegate the authority vested in it, including21

the powers, duties, and obligations specifically vested in22

the Governors, to the Postmaster General under such23

terms, conditions, and limitations, including the power of24

redelegation, as it deems desirable.25

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(b) COMMITTEES.The Board may establish such1

committees of the Board, and delegate such powers to any2

committee, as the Board determines appropriate to carry3

out its functions and duties.4

(c) OTHER PROVISIONS.Delegations to the Post-5

master General or committees shall be consistent with6

other provisions of this title, shall not relieve the Board7

of full responsibility for the carrying out of its duties and8

functions, or for ensuring that the Postmaster General9

complies with all applicable provisions of law, and shall10

be revocable by the Governors in their exclusive judg-11

ment..12

SEC. 404. CONTRACT DISPUTES.13

Section 7101(8) of title 41, United States Code, is14

amended15

(1) in subparagraph (C), by striking and at16

the end;17

(2) in subparagraph (D), by striking the period18

at the end and inserting ; and; and19


(E) the United States Postal Service and21

the Postal Regulatory Commission..22

S.1010 - POST Act

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Transcript of S.1010 - POST Act