In the nature of a substitute.

SA 2000. Mr. REID (for Mr. Lieberman (for himself, Ms. Collins, Mr.
Carper, and Mr. Brown of Massachusetts)) submitted an amendment
intended to be proposed by Mr. Reid to the bill S. 1789, to improve,
sustain, and transform the United States Postal Service; which was
ordered to lie on the table; as follows:

Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``21st Century Postal Service
Act of 2012''.

SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.

TITLE I--POSTAL WORKFORCE MATTERS

Sec. 101. Treatment of postal funding surplus for Federal Employees
Retirement System.
Sec. 102. Incentives for voluntary separation.
Sec. 103. Restructuring of payments for retiree health benefits.
Sec. 104. Postal Service Health Benefits Program.
Sec. 105. Medicare coordination efforts for Postal Service employees
and retirees.
Sec. 106. Arbitration; labor disputes.

TITLE II--POSTAL SERVICES AND OPERATIONS

Sec. 201. Maintenance of delivery service standards.
Sec. 202. Preserving mail processing capacity.
Sec. 203. Establishment of retail service standards.
Sec. 204. Expanded retail access.
Sec. 205. Preserving community post offices.
Sec. 206. Area and district office structure.
Sec. 207. Conversion of door delivery points.
Sec. 208. Limitations on changes to mail delivery schedule.

[[Page S2334]]

Sec. 209. Time limits for consideration of service changes.
Sec. 210. Public procedures for significant changes to mailing
specifications.
Sec. 211. Nonpostal products and services.
Sec. 212. Chief Innovation Officer; innovation strategy.
Sec. 213. Strategic Advisory Commission on Postal Service Solvency and
Innovation.

TITLE III--FEDERAL EMPLOYEES' COMPENSATION ACT

Sec. 301. Short title; references.
Sec. 302. Federal workers compensation reforms for retirement-age
employees.
Sec. 303. Augmented compensation for dependents.
Sec. 304. Schedule compensation payments.
Sec. 305. Vocational rehabilitation.
Sec. 306. Reporting requirements.
Sec. 307. Disability management review; independent medical
examinations.
Sec. 308. Waiting period.
Sec. 309. Election of benefits.
Sec. 310. Sanction for noncooperation with field nurses.
Sec. 311. Subrogation of continuation of pay.
Sec. 312. Integrity and compliance.
Sec. 313. Amount of compensation.
Sec. 314. Technical and conforming amendments.
Sec. 315. Regulations.
Sec. 316. Effective date.

TITLE IV--OTHER MATTERS

Sec. 401. Solvency plan.
Sec. 402. Postal rates.
Sec. 403. Co-location with Federal agencies.
Sec. 404. Cooperation with State and local governments; intra-Service
agreements.
Sec. 405. Shipping of wine, beer, and distilled spirits.
Sec. 406. Annual report on United States mailing industry.
Sec. 407. Use of negotiated service agreements.
Sec. 408. Contract disputes.
Sec. 409. Contracting provisions.

SEC. 3. DEFINITIONS.

In this Act, the following definitions shall apply:
(1) Commission.--The term ``Commission'' means the Postal
Regulatory Commission.
(2) Postal service.--The term ``Postal Service'' means the
United States Postal Service.

TITLE I--POSTAL WORKFORCE MATTERS

SEC. 101. TREATMENT OF POSTAL FUNDING SURPLUS FOR FEDERAL
EMPLOYEES RETIREMENT SYSTEM.

Section 8423(b) of title 5, United States Code, is
amended--
(1) by redesignating paragraph (5) as paragraph (6); and
(2) by inserting after paragraph (4) the following:
``(5)(A) In this paragraph, the term `postal funding
surplus' means the amount by which the amount computed under
paragraph (1)(B) is less than zero.
``(B)(i) Beginning with fiscal year 2011, for each fiscal
year in which the amount computed under paragraph (1)(B) is
less than zero, upon request of the Postmaster General, the
Director shall transfer to the United States Postal Service
from the Fund an amount equal to the postal funding surplus
for that fiscal year for use in accordance with this
paragraph.
``(ii) The Office shall calculate the amount under
paragraph (1)(B) for a fiscal year by not later than June 15
after the close of the fiscal year, and shall transfer any
postal funding surplus to the United States Postal Service
within 10 days after a request by the Postmaster General.
``(C) For each of fiscal years 2011, 2012, 2013, and 2014
if the amount computed under paragraph (1)(B) is less than
zero, a portion of the postal funding surplus for the fiscal
year shall be used by the United States Postal Service for
the cost of providing incentives for voluntary separation, in
accordance with section 102 of the 21st Century Postal
Service Act of 2012 and sections 8332(p) and 8411(m) of this
title, to employees of the United States Postal Service who
voluntarily separate from service before October 1, 2015.
``(D) Any postal funding surplus for a fiscal year not
expended under subparagraph (C) may be used by the United
States Postal Service for the purposes of--
``(i) repaying any obligation issued under section 2005 of
title 39; or
``(ii) making required payments to--
``(I) the Employees' Compensation Fund established under
section 8147;
``(II) the Postal Service Retiree Health Benefits Fund
established under section 8909a;
``(III) the Employees Health Benefits Fund established
under section 8909; or
``(IV) the Civil Service Retirement and Disability Fund.''.

SEC. 102. INCENTIVES FOR VOLUNTARY SEPARATION.

(a) Voluntary Separation Incentive Payments.--The Postal
Service may provide voluntary separation incentive payments
to employees of the Postal Service who voluntarily separate
from service before October 1, 2015 (including payments to
employees who retire under section 8336(d)(2) or
8414(b)(1)(B) of title 5, United States Code, before October
1, 2015), which may not exceed the maximum amount provided
under section 3523(b)(3)(B) of title 5, United States Code,
for any employee.
(b) Additional Service Credit.--
(1) Civil service retirement system.--Section 8332 of title
5, United States Code, is amended by adding at the end the
following:
``(p)(1)(A) For an employee of the United States Postal
Service who is covered under this subchapter and voluntarily
separates from service before October 1, 2015, the Office, if
so directed by the United States Postal Service, shall add
not more than 1 year to the total creditable service of the
employee for purposes of determining entitlement to and
computing the amount of an annuity under this subchapter
(except for a disability annuity under section 8337).
``(B) An employee who receives additional creditable
service under this paragraph may not receive a voluntary
separation incentive payment from the United States Postal
Service.
``(2) The United States Postal Service shall ensure that
the average actuarial present value of the additional
liability of the United States Postal Service to the Fund
resulting from additional creditable service provided under
paragraph (1) or section 8411(m)(1) is not more than $25,000
per employee provided additional creditable service under
paragraph (1) or section 8411(m)(1).
``(3)(A) Subject to subparagraph (B), and notwithstanding
any other provision of law, no deduction, deposit, or
contribution shall be required for service credited under
this subsection.
``(B) The actuarial present value of the additional
liability of the United States Postal Service to the Fund
resulting from this subsection shall be included in the
amount calculated under section 8348(h)(1)(A).''.
(2) Federal employees retirement system.--Section 8411 of
title 5, United States Code, is amended by adding at the end
the following:
``(m)(1)(A) For an employee of the United States Postal
Service who is covered under this chapter and voluntarily
separates from service before October 1, 2015, the Office, if
so directed by the United States Postal Service, shall add
not more than 2 years to the total creditable service of the
employee for purposes of determining entitlement to and
computing the amount of an annuity under this chapter (except
for a disability annuity under subchapter V of that chapter).
``(B) An employee who receives additional creditable
service under this paragraph may not receive a voluntary
separation incentive payment from the United States Postal
Service.
``(2) The United States Postal Service shall ensure that
the average actuarial present value of the additional
liability of the United States Postal Service to the Fund
resulting from additional creditable service provided under
paragraph (1) or section 8332(p)(1) is not more than $25,000
per employee provided additional creditable service under
paragraph (1) or section 8332(p)(1)
``(3)(A) Subject to subparagraph (B), and notwithstanding
any other provision of law, no deduction, deposit, or
contribution shall be required for service credited under
this subsection.
``(B) The actuarial present value of the additional
liability of the United States Postal Service to the Fund
resulting from this subsection shall be included in the
amount calculated under section 8423(b)(1)(B).''.
(c) Goals.--
(1) In general.--The Postal Service shall offer incentives
for voluntary separation under this section and the
amendments made by this section as a means of ensuring that
the size and cost of the workforce of the Postal Service is
appropriate to the work required of the Postal Service,
including consideration of--
(A) the closure and consolidation of postal facilities;
(B) the ability to operate existing postal facilities more
efficiently, including by reducing the size or scope of
operations of postal facilities in lieu of closing postal
facilities; and
(C) the number of employees eligible, or projected in the
near-term to be eligible, for retirement, including early
retirement.
(2) Percentage goal.--The Postal Service shall offer
incentives for voluntary separation under this section to a
sufficient number of employees as would reasonably be
expected to lead to an 18 percent reduction in the total
number of career employees of the Postal Service by the end
of fiscal year 2015.
(3) Definition.--In this subsection, the term ``career
employee of the Postal Service'' means an employee of the
Postal Service--
(A) whose appointment is not for a limited period; and
(B) who is eligible for benefits, including retirement
coverage under chapter 83 or 84 of title 5, United States
Code.
(d) Funding.--The Postal Service shall carry out subsection
(a) and sections 8332(p) and 8411(m) of title 5, United
States Code, as added by subsection (b) of this section,
using funds made available under section 8423(b)(5)(C) of
title 5, United States Code, as amended by section 101 of
this Act.

SEC. 103. RESTRUCTURING OF PAYMENTS FOR RETIREE HEALTH
BENEFITS.

(a) Contributions.--Section 8906(g)(2)(A) of title 5,
United States Code, is amended by striking ``through
September 30, 2016, be paid by the United States Postal
Service, and thereafter shall'' and inserting ``after the
date of enactment of the 21st Century Postal Service Act of
2012''.
(b) Postal Service Retiree Health Benefits Fund.--Section
8909a of title 5, United States Code, is amended--

[[Page S2335]]

(1) in subsection (d)--
(A) by striking paragraph (2) and inserting the following:
``(2)(A) Not later than 180 days after the date of
enactment of the 21st Century Postal Service Act of 2012, or
March 31, 2013, whichever is later, the Office shall compute,
and by June 30 of each succeeding year, the Office shall
recompute, a schedule including a series of annual
installments which provide for the liquidation of the amount
described under subparagraph (B) (regardless of whether the
amount is a liability or surplus) by September 30, 2052, or
within 15 years, whichever is later, including interest at
the rate used in the computations under this subsection.
``(B) The amount described in this subparagraph is the
amount, as of the date on which the applicable computation or
recomputation under subparagraph (A) is made, that is equal
to the difference between--
``(i) 80 percent of the Postal Service actuarial liability
as of September 30 of the most recently ended fiscal year;
and
``(ii) the value of the assets of the Postal Retiree Health
Benefits Fund as of September 30 of the most recently ended
fiscal year.''.
(B) in paragraph (3)--
(i) in subparagraph (A)--

(I) in clause (iii), by adding ``and'' at the end;
(II) in clause (iv), by striking the semicolon at the end
and inserting a period; and
(III) by striking clauses (v) through (x); and

(ii) in subparagraph (B), by striking ``2017'' and
inserting ``2013'';
(C) by amending paragraph (4) to read as follows:
``(4) Computations under this subsection shall be based
on--
``(A) economic and actuarial methods and assumptions
consistent with the methods and assumptions used in
determining the Postal surplus or supplemental liability
under section 8348(h); and
``(B) any other methods and assumptions, including a health
care cost trend rate, that the Director of the Office
determines to be appropriate.''; and
(D) by adding at the end the following:
``(7) In this subsection, the term `Postal Service
actuarial liability' means the difference between--
``(A) the net present value of future payments required
under section 8906(g)(2)(A) for current and future United
States Postal Service annuitants; and
``(B) the net present value as computed under paragraph (1)
attributable to the future service of United States Postal
Service employees.''; and
(2) by adding at the end the following:
``(e) Subsections (a) through (d) of this section shall be
subject to section 104 of the 21st Century Postal Service Act
of 2012.''.

SEC. 104. POSTAL SERVICE HEALTH BENEFITS PROGRAM.

(a) Definitions.--In this section--
(1) the term ``covered employee'' means an employee of the
Postal Service who is represented by a bargaining
representative recognized under section 1203 of title 39,
United States Code;
(2) the term ``Federal Employee Health Benefits Program''
means the health benefits program under chapter 89 of title
5, United States Code; and
(3) the term ``Postal Service Health Benefits Program''
means the health benefits program that may be agreed to under
subsection (b)(1).
(b) Collective Bargaining.--
(1) In general.--Consistent with section 1005(f) of title
39, United States Code, the Postal Service may negotiate
jointly with all bargaining representatives recognized under
section 1203 of title 39, United States Code, and enter into
a joint collective bargaining agreement with those bargaining
representatives to establish the Postal Service Health
Benefits Program that satisfies the conditions under
subsection (c). The Postal Service and the bargaining
representatives shall negotiate in consultation with the
Director of the Office of Personnel Management.
(2) Consultation with supervisory and managerial
personnel.--In the course of negotiations under paragraph
(1), the Postal Service shall consult with each of the
organizations of supervisory and other managerial personnel
that are recognized under section 1004 of title 39, United
States Code, concerning the views of the personnel
represented by each of those organizations.
(3) Arbitration limitation.--Notwithstanding chapter 12 of
title 39, United States Code, there shall not be arbitration
of any dispute in the negotiations under this subsection.
(4) Time limitation.--The authority under this subsection
shall extend until September 30, 2012.
(c) Postal Service Health Benefits Program.--The Postal
Service Health Benefits Program--
(1) shall--
(A) be available for participation by all covered
employees;
(B) be available for participation by any officer or
employee of the Postal Service who is not a covered employee,
at the option solely of that officer or employee;
(C) provide adequate and appropriate health benefits;
(D) be administered in a manner determined in a joint
agreement reached under subsection (b); and
(E) provide for transition of coverage under the Federal
Employee Health Benefits Program of covered employees to
coverage under the Postal Service Health Benefits Program on
January 1, 2013;
(2) may provide dental benefits; and
(3) may provide vision benefits.
(d) Agreement and Implementation.--If a joint agreement is
reached under subsection (b)--
(1) the Postal Service shall implement the Postal Service
Health Benefits Program;
(2) the Postal Service Health Benefits Program shall
constitute an agreement between the collective bargaining
representatives and the Postal Service for purposes of
section 1005(f) of title 39, United States Code; and
(3) covered employees may not participate as employees in
the Federal Employees Health Benefits Program.
(e) Government Plan.--The Postal Service Health Benefits
Program shall be a government plan as that term is defined
under section 3(32) of Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1002(32)).
(f) Report.--Not later than June 30, 2013, the Postal
Service shall submit a report 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 that--
(1) reports on the implementation of this section; and
(2) requests any additional statutory authority that the
Postal Service determines is necessary to carry out the
purposes of this section.

SEC. 105. MEDICARE COORDINATION EFFORTS FOR POSTAL SERVICE
EMPLOYEES AND RETIREES.

(a) Additional Enrollment Options Under Federal Employees
Health Benefits Plans.--Chapter 89 of title 5, United States
Code, is amended by inserting after section 8903b the
following:

``SEC. 8903C. COORDINATION WITH MEDICARE FOR POSTAL SERVICE
EMPLOYEES AND ANNUITANTS.

``(a) Definitions.--In this section--
``(1) the term `contract year' means a calendar year in
which health benefits plans are administered under this
chapter;
``(2) the term `Medicare part A' means the Medicare program
for hospital insurance benefits under part A of title XVIII
of the Social Security Act (42 U.S.C. 1395c et seq.);
``(3) the term `Medicare part B' means the Medicare program
for supplementary medical insurance benefits under part B of
title XVIII of the Social Security Act (42 U.S.C. 1395j et
seq.); and
``(4) the term `Postal Service employee or annuitant' means
an individual who is--
``(A) an employee of the Postal Service; or
``(B) an annuitant covered under this chapter whose
Government contribution is paid by the Postal Service under
section 8906(g)(2).
``(b) Enrollment Options.--
``(1) Establishment.--
``(A) In general.--For contract years beginning on or after
January 1, 2014, the Office shall establish enrollment
options for health benefits plans that are open only to
Postal Service employees and annuitants, and family members
of a Postal Service employee or annuitant, who are enrolled
in Medicare part A and Medicare part B.
``(B) Additional plans.--The enrollment options established
under this subsection shall be in addition to any other
health benefit plan or enrollment option otherwise available
to Postal Service employees or annuitants under this chapter
and shall not affect the eligibility of a Postal Service
employee or annuitant for any another health benefit plan or
enrollment option under this chapter.
``(2) Enrollment eligibility.--Any Postal Service employee
or annuitant, or family member of a Postal Service employee
or annuitant, who is enrolled in Medicare part A and Medicare
part B may enroll in 1 of the enrollment options established
under paragraph (1).
``(3) Value of coverage.--The Office shall ensure that the
aggregate actuarial value of coverage under the enrollment
options established under this subsection, in combination
with the value of coverage under Medicare part A and Medicare
part B, shall be not less than the actuarial value of the
most closely corresponding enrollment options for each plan
available under section 8905, in combination with the value
of coverage under Medicare part A and Medicare part B.
``(4) Enrollment options.--
``(A) In general.--The enrollment options established under
paragraph (1) shall include--
``(i) an individual option, for Postal Service employees or
annuitants enrolled in Medicare part A and Medicare part B;
``(ii) a self and family option, for Postal Service
employees or annuitants and family members who are each
enrolled in Medicare part A and Medicare part B; and
``(iii) a self and family option, for Postal Service
employees or annuitants--

``(I) who are enrolled in Medicare part A and Medicare part
B; and
``(II) the family members of whom are not enrolled in
Medicare part A or Medicare part B.

``(B) Specific sub-options.--The Office may establish more
specific enrollment options within the types of options
described under subparagraph (A).
``(5) Reduced premiums to account for medicare
coordination.--In determining the premiums for the enrollment
options under paragraph (4), the Office shall--

[[Page S2336]]

``(A) establish a separate claims pool for individuals
eligible for coverage under any of those options; and
``(B) ensure that--
``(i) the premiums are reduced from the premiums otherwise
established under this chapter to directly reflect the full
cost savings to the health benefits plans due to the complete
coordination of benefits with Medicare part A and Medicare
part B for Postal Service employees or annuitants, or family
members of Postal Service employees or annuitants, who are
enrolled in Medicare part A and Medicare part B; and
``(ii) the cost savings described under clause (i) result
solely in the reduction of--

``(I) the premiums paid by the Postal Service employee or
annuitant; and
``(II) the Government contributions paid by the Postal
Service or other employer.

``(c) Postal Service Consultation.--The Office shall
establish the enrollment options and premiums under this
section in consultation with the Postal Service.''.
(b) Technical and Conforming Amendments.--The table of
sections for chapter 89 of title 5, United States Code, is
amended by inserting after the item relating to section 8903b
the following:

``8903c. Coordination with Medicare for Postal Service employees and
annuitants.''.

(c) Effective Date.--The amendments made by subsection (a)
shall apply with respect to contract years beginning on or
after January 1, 2014.
(d) Special Enrollment Period for Postal Service Employees
and Annuitants.--
(1) Special enrollment period.--Section 1837 of the Social
Security Act (42 U.S.C. 1395p) is amended by adding at the
end the following new subsection:
``(m)(1) In the case of any individual who, as of the date
of enactment of the 21st Century Postal Service Act of 2012,
is a Postal Service employee or annuitant (as defined in
section 8903c(a) of title 5, United States Code) at the time
the individual is entitled to part A under section 226 or
section 226A and who is eligible to enroll but who has
elected not to enroll (or to be deemed enrolled) during the
individual's initial enrollment period, there shall be a
special enrollment period described in paragraph (2).
``(2) The special enrollment period described in this
paragraph, with respect to an individual, is the 1-year
period beginning on July 1, 2013.
``(3) In the case of an individual who enrolls during the
special enrollment period provided under paragraph (1), the
coverage period under this part shall begin on the first day
of the month in which the individual enrolls.''.
(2) Waiver of increase of premium.--Section 1839(b) of the
Social Security Act (42 U.S.C. 1395r(b)) is amended by
striking ``(i)(4) or (l)'' and inserting ``(i)(4), (l), or
(m)''.
(e) Educational Program.--The Postmaster General, in
consultation with the Director of the Office of Personnel
Management and the Administrator of the Centers for Medicare
& Medicaid Services, shall develop an educational program to
encourage the voluntary use of the Medicare program for
hospital insurance benefits under part A of title XVIII of
the Social Security Act (42 U.S.C. 1395c et seq.) (commonly
known as ``Medicare Part A'') and the Medicare program for
supplementary medical insurance benefits under part B of
title XVIII of the Social Security Act (42 U.S.C. 1395j et
seq.) (commonly known as ``Medicare Part B'') for eligible
Postal Service employees and annuitants that may benefit from
enrollment, the objective of which shall be to--
(1) educate employees and annuitants on how Medicare
benefits interact with and can supplement the benefits of the
employee or annuitant under the Federal Employees Health
Benefit Program; and
(2) reduce costs to the Federal Employees Health Benefit
Program, beneficiaries, and the Postal Service by
coordinating services with the Medicare program.

SEC. 106. ARBITRATION; LABOR DISPUTES.

Section 1207(c) of title 39, United States Code, is
amended--
(1) in paragraph (2)--
(A) by inserting ``(A)'' after ``(2)'';
(B) by striking the last sentence and inserting ``The
arbitration board shall render a decision not later than 45
days after the date of its appointment.''; and
(C) by adding at the end the following:
``(B) In rendering a decision under this paragraph, the
arbitration board shall consider such relevant factors as the
financial condition of the Postal Service.''; and
(2) by adding at the end the following:
``(4) Nothing in this section may be construed to limit the
relevant factors that the arbitration board may take into
consideration in rendering a decision under paragraph (2).''.

TITLE II--POSTAL SERVICES AND OPERATIONS

SEC. 201. MAINTENANCE OF DELIVERY SERVICE STANDARDS.

(a) Definitions.--For purposes of this section--
(1) the term ``plant service area'' means the geographic
area served by a single sectional center facility, or a
corresponding successor facility, as designated by the Postal
Service; and
(2) the term ``continental United States'' means the 48
contiguous States and the District of Columbia.
(b) Interim Maintenance of Standards.--During the 3-year
period beginning on the date of enactment of this Act, the
Postal Service--
(1) shall maintain the service standards described in
subsection (c);
(2) may not establish a new or revised service standard for
market-dominant products under section 3691 of title 39,
United States Code, that is inconsistent with the
requirements under subsection (c); and
(3) shall include in any new or revised overnight service
standard established for market-dominant products under
section 3691 of title 39, United States Code, a policy on
changes to critical entry times at post offices and business
mail entry units that ensures that any such changes maintain
meaningful access to the services provided under the service
standard required to be maintained under subsection (c).
(c) Service Standards.--
(1) Overnight standard for first-class mail and
periodicals.--
(A) In general.--Except as provided in subparagraph (B),
the Postal Service shall maintain an overnight service
standard that provides overnight service for first-class mail
and periodicals that--
(i) originate and destinate in the same plant service area;
and
(ii) enter the mails before the critical entry time
established and published by the Postal Service.
(B) Areas outside the continental united states.--The
requirements of subparagraph (A) shall not apply to areas
outside the continental United States--
(i) in the case of mail that originates or destinates in a
territory or possession of the United States that is part of
a plant service area having a sectional center facility
that--

(I) is not located in the territory or possession; and
(II) was not located in the territory or possession on
January 1, 2012; and

(ii) in the case of mail not described in clause (i),
except to the extent that the requirements are consistent
with the service standards under part 121 of title 39, Code
of Federal Regulations, as in effect on January 1, 2012.
(2) Two-day delivery for first-class mail.--The Postal
Service shall maintain a service standard that provides that
first-class mail not delivered overnight will be delivered
within 2 delivery days, to the maximum extent feasible using
the network of postal facilities maintained to meet the
requirements under paragraph (1).
(3) Maximum delivery time for first-class mail.--
(A) In general.--The Postal Service shall maintain a
service standard that provides that first-class mail will be
delivered--
(i) within a maximum of 3 delivery days, for mail that
originates and destinates within the continental United
States; and
(ii) within a maximum period of time consistent with
service standards under part 121 of title 39, Code of Federal
Regulations, as in effect on January 1, 2012, for mail
originating or destinating outside the continental United
States.
(B) Revisions.--Notwithstanding subparagraph (A)(ii), the
Postal Service may revise the service standards under part
121 of title 39, Code of Federal Regulations for mail
described in subparagraph (A)(ii) to take into account
transportation conditions (including the availability of
transportation) or other circumstances outside the control of
the Postal Service.

SEC. 202. PRESERVING MAIL PROCESSING CAPACITY.

Section 404 of title 39, United States Code, is amended by
adding after subsection (e) the following:
``(f) Closing or Consolidation of Certain Postal
Facilities.--
``(1) Postal facility.--In this subsection, the term
`postal facility'--
``(A) means any Postal Service facility that is primarily
involved in the preparation, dispatch, or other physical
processing of mail; and
``(B) does not include--
``(i) any post office, station, or branch; or
``(ii) any facility used only for administrative functions.
``(2) Area mail processing study.--
``(A) New area mail processing studies.--After the date of
enactment of this subsection, before making a determination
under subsection (a)(3) as to the necessity for the closing
or consolidation of any postal facility, the Postal Service
shall--
``(i) conduct an area mail processing study relating to
that postal facility that includes a plan to reduce the
capacity of the postal facility, but not close the postal
facility;
``(ii) publish the study on the Postal Service website; and
``(iii) publish a notice that the study is complete and
available to the public, including on the Postal Service
website.
``(B) Completed or ongoing area mail processing studies.--
``(i) In general.--In the case of a postal facility
described in clause (ii), the Postal Service shall--

``(I) consider a plan to reduce the capacity of the postal
facility without closing the postal facility; and
``(II) publish the results of the consideration under
subclause (I) with or as an amendment to the area mail
processing study relating to the postal facility.

``(ii) Postal facilities.--A postal facility described in
this clause is a postal facility for which, on or before the
date of enactment of this subsection--

[[Page S2337]]

``(I) an area mail processing study that does not include a
plan to reduce the capacity of the postal facility without
closing the postal facility has been completed;
``(II) an area mail processing study is in progress; or
``(III) a determination as to the necessity for the closing
or consolidation of the postal facility has not been made.

``(3) Notice, public comment, and public hearing.--If the
Postal Service makes a determination under subsection (a)(3)
to close or consolidate a postal facility, the Postal Service
shall--
``(A) provide notice of the determination to--
``(i) Congress; and
``(ii) the Postal Regulatory Commission;
``(B) provide adequate public notice of the intention of
the Postal Service to close or consolidate the postal
facility;
``(C) ensure that interested persons have an opportunity to
submit public comments during a 45-day period after the
notice of intention is provided under subparagraph (B);
``(D) before the 45-day period described in subparagraph
(C), provide for public notice of that opportunity by--
``(i) publication on the Postal Service website;
``(ii) posting at the affected postal facility; and
``(iii) advertising the date and location of the public
community meeting under subparagraph (E); and
``(E) during the 45-day period described in subparagraph
(C), conduct a public community meeting that provides an
opportunity for public comments to be submitted verbally or
in writing.
``(4) Further considerations.--Not earlier than 30 days
after the end of the 45-day period for public comment under
paragraph (3), the Postal Service, in making a determination
to close or consolidate a postal facility, shall consider--
``(A) the views presented by interested persons under
paragraph (3);
``(B) the effect of the closing or consolidation on the
affected community, including any disproportionate impact the
closing or consolidation may have on a State, region, or
locality;
``(C) the effect of the closing or consolidation on the
travel times and distances for affected customers to access
services under the proposed closing or consolidation;
``(D) the effect of the closing or consolidation on
delivery times for all classes of mail;
``(E) any characteristics of certain geographical areas,
such as remoteness, broadband internet availability, and
weather-related obstacles to using alternative facilities,
that may result in the closing or consolidation having a
unique effect; and
``(F) any other factor the Postal Service determines is
necessary.
``(5) Justification statement.--Before the date on which
the Postal Service closes or consolidates a postal facility,
the Postal Service shall post on the Postal Service website a
closing or consolidation justification statement that
includes--
``(A) a response to all public comments received with
respect to the considerations described under paragraph (4);
``(B) a description of the considerations made by the
Postal Service under paragraph (4); and
``(C) the actions that will be taken by the Postal Service
to mitigate any negative effects identified under paragraph
(4).
``(6) Closing or consolidation of postal facilities.--
``(A) In general.--Not earlier than the 15 days after
posting the final determination and the justification
statement under paragraph (5) with respect to a postal
facility, the Postal Service may close or consolidate the
postal facility.
``(B) Alternative intake of mail.--If the Postal Service
closes or consolidates a postal facility under subparagraph
(A), the Postal Service shall make reasonable efforts to
ensure continued mail receipt from customers of the closed or
consolidated postal facility at the same location or at
another appropriate location in close geographic proximity to
the closed or consolidated postal facility.
``(C) Limitations.--During the 3-year period beginning on
the date of enactment of the 21st Century Postal Service Act
of 2012, the Postal Service may not close or consolidate a
postal facility if the closing or consolidation prevents the
Postal Service from maintaining service standards as required
under section 201 of the 21st Century Postal Service Act of
2012.
``(7) Review by postal regulatory commission.--In
accordance with section 3662--
``(A) an interested person may lodge a complaint with the
Postal Regulatory Commission if the person believes that the
closure or consolidation of a postal facility is not in
conformance with applicable service standards, including the
service standards established under section 201 of the 21st
Century Postal Service Act of 2012; and
``(B) if the Postal Regulatory Commission finds a complaint
lodged by an interested person to be justified, the
Commission shall order the Postal Service to take appropriate
action to achieve compliance with applicable service
standards, including the service standards established under
section 201 of the 21st Century Postal Service Act of 2012,
or to remedy the effects of any noncompliance.
``(8) Postal service website.--For purposes of any notice
required to be published on the Postal Service website under
this subsection, the Postal Service shall ensure that the
Postal Service website--
``(A) is updated routinely; and
``(B) provides any person, at the option of the person, the
opportunity to receive relevant updates by electronic mail.
``(9) Protection of certain information.--Nothing in this
subsection may be construed to require the Postal Service to
disclose--
``(A) any proprietary data, including any reference or
citation to proprietary data; or
``(B) any information relating to the security of a postal
facility.''.

SEC. 203. ESTABLISHMENT OF RETAIL SERVICE STANDARDS.

(a) Definition.--In this section, the term ``retail postal
service'' means service that allows a postal customer to--
(1) purchase postage;
(2) enter packages into the mail; and
(3) procure other services offered by the Postal Service.
(b) Establishment of Retail Service Standards.--Not later
than 6 months after the date of enactment of this Act, the
Postal Service shall exercise its authority under section
3691 of title 39, United States Code, to establish service
standards for market-dominant products in order to guarantee
customers of the Postal Service regular and effective access
to retail postal services nationwide (including in
territories and possessions of the United States) on a
reasonable basis.
(c) Contents.--The service standards established under
subsection (b) shall--
(1) be consistent with--
(A) the obligations of the Postal Service under section
101(b) of title 39, United States Code; and
(B) the contents of the plan developed under section 302 of
the Postal Accountability and Enhancement Act of 2006 (39
U.S.C. 3691 note), and any updated or revised plan developed
under section 204 of this Act; and
(2) take into account factors including--
(A) geography, including the establishment of standards for
the proximity of retail postal services to postal customers,
including a consideration of the reasonable maximum time a
postal customer should expect to travel to access a postal
retail location;
(B) the importance of facilitating communications for
communities with limited or no access to Internet, broadband,
or cellular telephone services;
(C) population, including population density, demographic
factors such as the age, disability status, and degree of
poverty of individuals in the area to be served by a location
providing postal retail services, and other factors that may
impact the ability of postal customers, including businesses,
to travel to a postal retail location;
(D) the feasibility of offering retail access to postal
services in addition to post offices, as described in section
302(d) of the Postal Accountability and Enhancement Act of
2006 (39 U.S.C. 3691 note);
(E) the requirement that the Postal Service serve remote
areas and communities with transportation challenges,
including communities in which the effects of inclement
weather or other natural conditions might obstruct or
otherwise impede access to retail postal services; and
(F) the ability of postal customers to access retail postal
services in areas that were served by a post office that was
closed or consolidated during the 1 year period ending on the
date of enactment of this Act.

SEC. 204. EXPANDED RETAIL ACCESS.

(a) Updated Plan.--Not later than 1 year after the date of
enactment of this Act, the Postal Service shall, in
consultation with the Commission, develop and submit to
Congress a revised and updated version of the plan to expand
and market retail access to postal services required under
section 302(d) of the Postal Accountability and Enhancement
Act of 2006 (39 U.S.C. 3691 note).
(b) Contents.--The plan required under subsection (a)
shall--
(1) include a consideration of methods to expand and market
retail access to postal services described in paragraphs (1)
through (8) of section 302(d) of the Postal Accountability
and Enhancement Act of 2006 (39 U.S.C. 3691 note);
(2) where possible, provide for an improvement in customer
access to postal services;
(3) consider the impact of any decisions by the Postal
Service relating to the implementation of the plan on rural
areas, communities, and small towns; and
(4) ensure that--
(A) rural areas, communities, and small towns continue to
receive regular and effective access to retail postal
services after implementation of the plan; and
(B) the Postal Service solicits community input in
accordance with applicable provisions of Federal law.
(c) Further Updates.--The Postal Service, in consultation
with the Commission, shall--
(1) update the plan required under subsection (a) as the
Postal Service determines is appropriate; and
(2) submit each update under paragraph (1) to Congress.

SEC. 205. PRESERVING COMMUNITY POST OFFICES.

(a) Closing Post Offices.--Section 404(d) of title 39,
United States Code, is amended to read as follows:
``(d)(1) The Postal Service, prior to making a
determination under subsection (a)(3) of this section as to
the necessity for the closing or consolidation of any post
office, shall--

[[Page S2338]]

``(A) consider whether--
``(i) to close the post office or consolidate the post
office and another post office located within a reasonable
distance;
``(ii) instead of closing or consolidating the post
office--
``(I) to reduce the number of hours a day that the post
office operates; or
``(II) to continue operating the post office for the same
number of hours a day;
``(iii) to procure a contract providing full, or less than
full, retail services in the community served by the post
office; or
``(iv) to provide postal services to the community served
by the post office through a rural carrier;
``(B) provide postal customers served by the post office an
opportunity to participate in a nonbinding survey conducted
by mail on a preference for an option described in
subparagraph (A); and
``(C) if the Postal Service determines to close or
consolidate the post office, provide adequate notice of its
intention to close or consolidate such post office at least
60 days prior to the proposed date of such closing or
consolidation to persons served by such post office to ensure
that such persons will have an opportunity to present their
views.
``(2) The Postal Service, in making a determination whether
or not to close or consolidate a post office--
``(A) shall consider--
``(i) the effect of such closing or consolidation on the
community served by such post office;
``(ii) the effect of such closing or consolidation on
employees of the Postal Service employed at such office;
``(iii) whether such closing or consolidation is consistent
with the policy of the Government, as stated in section
101(b) of this title, that the Postal Service shall provide a
maximum degree of effective and regular postal services to
rural areas, communities, and small towns where post offices
are not self-sustaining;
``(iv) the extent to which the community served by the post
office lacks access to Internet, broadband and cellular phone
service;
``(v) the economic savings to the Postal Service resulting
from such closing or consolidation; and
``(vi) such other factors as the Postal Service determines
are necessary; and
``(B) may not consider compliance with any provision of the
Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et
seq.).
``(3) Any determination of the Postal Service to close or
consolidate a post office shall be in writing and shall
include the findings of the Postal Service with respect to
the considerations required to be made under paragraph (2) of
this subsection. Such determination and findings shall be
made available to persons served by such post office.
``(4) The Postal Service shall take no action to close or
consolidate a post office until 60 days after its written
determination is made available to persons served by such
post office.
``(5) A determination of the Postal Service to close or
consolidate any post office, station, or branch may be
appealed by any person served by such office, station, or
branch to the Postal Regulatory Commission within 30 days
after such determination is made available to such person.
The Commission shall review such determination on the basis
of the record before the Postal Service in the making of such
determination. The Commission shall make a determination
based upon such review no later than 120 days after receiving
any appeal under this paragraph. The Commission shall set
aside any determination, findings, and conclusions found to
be--
``(A) arbitrary, capricious, an abuse of discretion, or
otherwise not in accordance with the law;
``(B) without observance of procedure required by law;
``(C) not in conformance with the retail service standards
established under section 203 of the 21st Century Postal
Service Act of 2012; or
``(D) unsupported by substantial evidence on the record.

The Commission may affirm the determination of the Postal
Service or order that the entire matter be returned for
further consideration, but the Commission may not modify the
determination of the Postal Service. The Commission may
suspend the effectiveness of the determination of the Postal
Service until the final disposition of the appeal. The
provisions of section 556, section 557, and chapter 7 of
title 5 shall not apply to any review carried out by the
Commission under this paragraph.
``(6) For purposes of paragraph (5), any appeal received by
the Commission shall--
``(A) if sent to the Commission through the mails, be
considered to have been received on the date of the Postal
Service postmark on the envelope or other cover in which such
appeal is mailed; or
``(B) if otherwise lawfully delivered to the Commission, be
considered to have been received on the date determined based
on any appropriate documentation or other indicia (as
determined under regulations of the Commission).
``(7) Nothing in this subsection shall be construed to
limit the right under section 3662--
``(A) of an interested person to lodge a complaint with the
Postal Regulatory Commission under section 3662 concerning
nonconformance with service standards, including the retail
service standards established under section 203 of the 21st
Century Postal Service Act of 2012; or
``(B) of the Postal Regulatory Commission, if the
Commission finds a complaint lodged by an interested person
to be justified, to order the Postal Service to take
appropriate action to achieve compliance with applicable
requirements, including the retail service standards
established under section 203 of the 21st Century Postal
Service Act of 2012, or to remedy the effects of any
noncompliance.''.
(b) Prohibition on Closing Post Offices.--Notwithstanding
section 404(d) of title 39, United States Code, as amended by
this section, during the period beginning on the date of
enactment of this Act and ending on the date on which the
Postal Service establishes the retail service standards under
section 203 of this Act, the Postal Service may not close a
post office, except as required for the immediate protection
of health and safety.
(c) Historic Post Offices.--Section 404(d) of title 39,
United States Code, as amended by this section, is amended by
adding at the end the following:
``(8)(A) In this paragraph, the term `historic post office
building' means a post office building that is a certified
historic structure, as that term is defined in section
47(c)(3) of the Internal Revenue Code of 1986.
``(B) In the case of a post office that has been closed and
that is located within a historic post office building, the
Postal Service shall provide Federal agencies and State and
local government entities the opportunity to lease the
historic post office building, if--
``(i) the Postal Service is unable to sell the building at
an acceptable price within a reasonable period of time after
the post office has been closed; and
``(ii) the Federal agency or State or local government
entity that leases the building agrees to--
``(I) restore the historic post office building at no cost
to the Postal Service;
``(II) assume responsibility for the maintenance of the
historic post office building; and
``(III) make the historic post office building available
for public use.''.

SEC. 206. AREA AND DISTRICT OFFICE STRUCTURE.

(a) Plan Required.--Not later than 1 year after the date of
enactment of this Act, the Postal Service shall submit to the
Committee on Homeland Security and Governmental Affairs of
the Senate and the Committee on Oversight and Governmental
Reform of the House of Representatives--
(1) a comprehensive strategic plan to govern decisions
relating to area and district office structure that considers
efficiency, costs, redundancies, mail volume, technological
advancements, operational considerations, and other issues
that may be relevant to establishing an effective area and
district office structure; and
(2) a 10-year plan, including a timetable, that provides
for consolidation of area and district offices within the
continental United States (as defined in section 201(a))
wherever the Postal Service determines a consolidation
would--
(A) be cost effective; and
(B) not substantially and adversely affect the operations
of the Postal Service.
(b) Consolidation.--Beginning not later than 1 year after
the date of enactment of this Act, the Postal Service shall,
consistent with the plans required under and the criteria
described in subsection (a)--
(1) consolidate district offices that are located within 50
miles of each other;
(2) consolidate area and district offices that have less
than the mean mail volume and number of work hours for all
area and district offices; and
(3) relocate area offices to headquarters.
(c) Updates.--The Postal Service shall update the plans
required under subsection (a) not less frequently than once
every 5 years.
(d) State Liaison.--If the Postal Service does not maintain
a district office in a State, the Postal Service shall
designate at least 1 employee of the district office
responsible for Postal Service operations in the State to
represent the needs of Postal Service customers in the State.

SEC. 207. CONVERSION OF DOOR DELIVERY POINTS.

(a) In General.--Subchapter VII of chapter 36 of title 39,
United States Code, is amended by adding at the end the
following:

``Sec.  3692. Conversion of door delivery points

``(a) Definitions.--In this section, the following
definitions shall apply:
``(1) Centralized delivery point.--The term `centralized
delivery point' means a group or cluster of mail receptacles
at 1 delivery point that is within reasonable proximity of
the street address associated with the delivery point.
``(2) Curbline delivery point.--The term `curbline delivery
point' means a delivery point that is--
``(A) adjacent to the street address associated with the
delivery point; and
``(B) accessible by vehicle on a street that is not a
private driveway.
``(3) Door delivery point.--The term `door delivery point'
means a delivery point at a door of the structure at a street
address.
``(4) Sidewalk delivery point.--The term `sidewalk delivery
point' means a delivery point on a sidewalk adjacent to the
street address associated with the delivery point.
``(b) Conversion.--Except as provided in subsection (c),
and in accordance with the solvency plan required under
section 401 of the 21st Century Postal Service Act of 2012
and standards established by the Postal

[[Page S2339]]

Service, the Postal Service is authorized to, to the maximum
extent feasible, convert door delivery points to--
``(1) curbline delivery points;
``(2) sidewalk delivery points; or
``(3) centralized delivery points.
``(c) Exceptions.--
``(1) Continued door delivery.--The Postal Service may
allow for the continuation of door delivery due to--
``(A) a physical hardship of a customer;
``(B) weather, in a geographic area where snow removal
efforts could obstruct access to mailboxes near a road;
``(C) circumstances in an urban area that preclude
efficient use of curbline delivery points;
``(D) other exceptional circumstances, as determined in
accordance with regulations issued by the Postal Service; or
``(E) other circumstances in which the Postal Service
determines that alternatives to door delivery would not be
practical or cost effective.
``(2) New door delivery points.--The Postal Service may
provide door delivery to a new delivery point in a delivery
area that received door delivery on the day before the date
of enactment of this section, if the delivery point is
established before the delivery area is converted from door
delivery under subsection (b).
``(d) Solicitation of Comments.--The Postal Service shall
establish procedures to solicit, consider, and respond to
input from individuals affected by a conversion under this
section.
``(e) Review.--Subchapter V of this chapter shall not apply
with respect to any action taken by the Postal Service under
this section.
``(f) Report.--Not later than 60 days after the end of each
fiscal year through fiscal year 2015, 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 preceding fiscal year that--
``(1) includes the number of door delivery points--
``(A) that existed at the end of the fiscal year preceding
the preceding fiscal year;
``(B) that existed at the end of the preceding fiscal year;
``(C) that, during the preceding fiscal year, converted
to--
``(i) curbline delivery points or sidewalk delivery points;
``(ii) centralized delivery points; and
``(iii) any other type of delivery point; and
``(D) for which door delivery was continued under
subsection (c)(1);
``(2) estimates any cost savings, revenue loss, or decline
in the value of mail resulting from the conversions from door
delivery that occurred during the preceding fiscal year;
``(3) describes the progress of the Postal Service toward
achieving the conversions authorized under subsection (b);
and
``(4) provides such additional information as the Postal
Service considers appropriate.''.
(b) Clerical Amendment.--The table of sections for
subchapter VII of chapter 36 of title 39, United States Code,
is amended by adding at the end the following:

``3692. Conversion of door delivery points.''.

SEC. 208. LIMITATIONS ON CHANGES TO MAIL DELIVERY SCHEDULE.

(a) Limitation on Change in Schedule.--Notwithstanding any
other provision of law--
(1) the Postal Service may not establish a general,
nationwide delivery schedule of 5 or fewer days per week to
street addresses under the authority of the Postal Service
under title 39, United States Code, earlier than the date
that is 24 months after the date of enactment of this Act;
and
(2) on or after the date that is 24 months after the date
of enactment of this Act, the Postal Service may establish a
general, nationwide 5-day-per-week delivery schedule to
street addresses under the authority of the Postal Service
under section 3691 of title 39, United States Code, only in
accordance with the requirements and limitations under this
section.
(b) Preconditions.--If the Postal Service intends to
establish a change in delivery schedule under subsection
(a)(2), the Postal Service shall--
(1) identify customers and communities for whom the change
may have a disproportionate, negative impact, including the
customers identified as ``particularly affected'' in the
Advisory Opinion on Elimination of Saturday Delivery issued
by the Commission on March 24, 2011;
(2) develop, to the maximum extent possible, measures to
ameliorate any disproportionate, negative impact the change
would have on customers and communities identified under
paragraph (1), including, where appropriate, providing or
expanding access to mailboxes for periodical mailers on days
on which the Postal Service does not provide delivery;
(3) implement measures to increase revenue and reduce
costs, including the measures authorized under the amendments
made by sections 101, 102, 103, 207, and 211 of this Act;
(4) evaluate whether any increase in revenue or reduction
in costs resulting from the measures implemented under
paragraph (3) are sufficient to allow the Postal Service,
without implementing a change in delivery schedule under
subsection (a), to achieve long-term solvency; and
(5) not earlier than 15 months after the date of enactment
of this Act and not later than 9 months before the effective
date proposed by the Postal Service for the change, submit a
report on the steps the Postal Service has taken to carry out
this subsection to--
(A) the Committee on Homeland Security and Governmental
Affairs of the Senate and the Committee on Oversight and
Government Reform of the House of Representatives;
(B) the Comptroller General of the United States; and
(C) the Commission.
(c) Review.--
(1) Government accountability office.--Not later than 3
months after the date on which the Postal Service submits a
report under subsection (b)(5), the Comptroller General shall
submit to the Commission and 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 report that contains findings relating to
each of the following:
(A) Whether the Postal Service has adequately complied with
subsection (b)(3), taking into consideration the statutory
authority of and limitations on the Postal Service.
(B) The accuracy of any statement by the Postal Service
that the measures implemented under subsection (b)(3) have
increased revenues or reduced costs, and the accuracy of any
projection by the Postal Service relating to increased
revenue or reduced costs resulting from the measures
implemented under subsection (b)(3).
(C) The adequacy and methodological soundness of any
evaluation conducted by the Postal Service under subsection
(b)(4) that led the Postal Service to assert the necessity of
a change in delivery schedule under subsection (a)(2).
(D) Whether, based on an analysis of the measures
implemented by the Postal Service to increase revenues and
reduce costs, projections of increased revenue and cost
savings, and the details of the profitability plan required
under section 401, a change in delivery schedule is necessary
to allow the Postal Service to achieve long-term solvency.
(2) Postal regulatory commission.--
(A) Request.--Not later than 6 months before the proposed
effective date of a change in delivery schedule under
subsection (a), the Postal Service shall submit to the
Commission a request for an advisory opinion relating to the
change.
(B) Advisory opinion.--
(i) In general.--The Commission shall--

(I) issue an advisory opinion with respect to a request
under subparagraph (A), in accordance with the time limits
for the issuance of advisory opinions under section
3661(b)(2) of title 39, United States Code, as amended by
this Act; and
(II) submit the advisory opinion 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.

(ii) Required determinations.--An advisory opinion under
clause (i) shall determine--

(I) whether the measures developed under subsection (b)(2)
ameliorate any disproportionate, negative impact that a
change in schedule may have on customers and communities
identified under subsection (b)(1); and
(II) based on the report submitted by the Comptroller
General under paragraph (1)--

(aa) whether the Postal Service has implemented measures to
increase revenue and reduce costs as required under
subsection (b)(3);
(bb) whether the implementation of the measures described
in item (aa) has increased revenues or reduced costs, or is
projected to further increase revenues or reduce costs in the
future; and
(cc) whether a change in schedule under subsection (a)(2)
is necessary to allow the Postal Service to achieve long-term
solvency.
(3) Prohibition on implementation of change in schedule.--
The Postal Service may not implement a change in delivery
schedule under subsection (a)(2)--
(A) before the date on which the Comptroller General
submits the report required under paragraph (1); and
(B) unless the Commission determines under paragraph
(2)(B)(ii)(II)(cc) that the Comptroller General has concluded
that the change is necessary to allow the Postal Service to
become profitable by fiscal year 2015 and to achieve long-
term solvency, without regard to whether the Commission
determines that the change is advisable.
(d) Additional Limitations.--
(1) Rules of construction.--Nothing in this subsection
shall be construed to--
(A) authorize the reduction, or require an increase, in
delivery frequency for any route for which the Postal Service
provided delivery on fewer than 6 days per week on the date
of enactment of this Act;
(B) authorize any change in--
(i) the days and times that postal retail service or any
mail acceptance is available at postal retail facilities or
processing facilities; or
(ii) the locations at which postal retail service or mail
acceptance occurs at postal retail facilities or processing
facilities;
(C) authorize any change in the frequency of delivery to a
post office box;
(D) prohibit the collection or delivery of a competitive
mail product on a weekend, a

[[Page S2340]]

recognized Federal holiday, or any other specific day of the
week; or
(E) prohibit the Postal Service from exercising its
authority to make changes to processing or retail networks.
(2) Prohibition on consecutive days without mail
delivery.--The Postal Service shall ensure that, under any
change in schedule under subsection (a)(2), at no time shall
there be more than 2 consecutive days without mail delivery
to street addresses, including recognized Federal holidays.
(e) Definition.--In this section, the term ``long-term
solvency'' means the ability of the Postal Service to pay
debts and meet expenses, including the ability to perform
maintenance and repairs, make investments, and maintain
financial reserves, as necessary to fulfill the requirements
and comply with the policies of title 39, United States Code,
and other obligations of the Postal Service over the long
term.

SEC. 209. TIME LIMITS FOR CONSIDERATION OF SERVICE CHANGES.

Section 3661 of title 39, United States Code, is amended by
striking subsections (b) and (c) and inserting the following:
``(b) Proposed Changes for Market-dominant Products.--
``(1) Submission of proposal.--If the Postal Service
determines that there should be a change in the nature of
postal services relating to market-dominant products that
will generally affect service on a nationwide or
substantially nationwide basis, the Postal Service shall
submit a proposal to the Postal Regulatory Commission
requesting an advisory opinion on the change.
``(2) Advisory opinion.--Upon receipt of a proposal under
paragraph (1), the Postal Regulatory Commission shall--
``(A) provide an opportunity for public comment on the
proposal; and
``(B) issue an advisory opinion not later than--
``(i) 90 days after the date on which the Postal Regulatory
Commission receives the proposal; or
``(ii) a date that the Postal Regulatory Commission and the
Postal Service may, not later than 1 week after the date on
which the Postal Regulatory Commission receives the proposal,
determine jointly.
``(3) Response to opinion.--The Postal Service shall submit
to the President and to Congress a response to an advisory
opinion issued under paragraph (2) that includes--
``(A) a statement of whether the Postal Service plans to
modify the proposal to address any concerns or implement any
recommendations made by the Commission; and
``(B) for any concern that the Postal Service determines
not to address and any recommendation that the Postal Service
determines not to implement, the reasons for the
determination.
``(4) Action on proposal.--The Postal Service may take
action regarding a proposal submitted under paragraph (1)--
``(A) on or after the date that is 30 days after the date
on which the Postal Service submits the response required
under paragraph (3);
``(B) on or after a date that the Postal Regulatory
Commission and the Postal Service may, not later than 1 week
after the date on which the Postal Regulatory Commission
receives a proposal under paragraph (2), determine jointly;
or
``(C) after the date described in paragraph (2)(B), if--
``(i) the Postal Regulatory Commission fails to issue an
advisory opinion on or before the date described in paragraph
(2)(B); and
``(ii) the action is not otherwise prohibited under Federal
law.
``(5) Modification of timeline.--At any time, the Postal
Service and the Postal Regulatory Commission may jointly
redetermine a date determined under paragraph (2)(B)(ii) or
(4)(B).''.

SEC. 210. PUBLIC PROCEDURES FOR SIGNIFICANT CHANGES TO
MAILING SPECIFICATIONS.

(a) Notice and Opportunity for Comment Required.--Effective
on the date on which the Postal Service issues a final rule
under subsection (c), before making a change to mailing
specifications that could pose a significant burden to the
customers of the Postal Service and that is not reviewed by
the Commission, the Postal Service shall--
(1) publish a notice of the proposed change to the
specification in the Federal Register;
(2) provide an opportunity for the submission of written
comments concerning the proposed change for a period of not
less than 30 days;
(3) after considering any comments submitted under
paragraph (2) and making any modifications to the proposed
change that the Postal Service determines are necessary,
publish--
(A) the final change to the specification in the Federal
Register;
(B) responses to any comments submitted under paragraph
(2); and
(C) an analysis of the financial impact that the proposed
change would have on--
(i) the Postal Service; and
(ii) the customers of the Postal Service that would be
affected by the proposed change; and
(4) establish an effective date for the change to mailing
specifications that is not earlier than 30 days after the
date on which the Postal Service publishes the final change
under paragraph (3).
(b) Exception for Good Cause.--If the Postal Service
determines that there is an urgent and compelling need for a
change to a mailing specification described in subsection (a)
in order to avoid demonstrable harm to the operations of the
Postal Service or to the public interest, the Postal Service
may--
(1) change the mailing specifications by--
(A) issuing an interim final rule that--
(i) includes a finding by the Postal Service that there is
good cause for the interim final rule;
(ii) provides an opportunity for the submission of written
comments on the interim final rule for a period of not less
than 30 days; and
(iii) establishes an effective date for the interim final
rule that is not earlier than 30 days after the date on which
the interim final rule is issued; and
(B) publishing in the Federal Register a response to any
comments submitted under subparagraph (A)(ii); and
(2) waive the requirement under paragraph (1)(A)(iii) or
subsection (a)(4).
(c) Rules Relating to Notice and Comment.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Postal Service shall issue rules
governing the provision of notice and opportunity for comment
for changes in mailing specifications under subsection (a).
(2) Rules.--In issuing the rules required under paragraph
(1), the Postal Service shall--
(A) publish a notice of proposed rulemaking in the Federal
Register that includes proposed definitions of the terms
``mailing specifications'' and ``significant burden'';
(B) provide an opportunity for the submission of written
comments concerning the proposed change for a period of not
less than 30 days; and
(C) publish--
(i) the rule in final form in the Federal Register; and
(ii) responses to the comments submitted under subparagraph
(B).

SEC. 211. NONPOSTAL PRODUCTS AND SERVICES.

(a) In General.--Section 404 of title 39, United States
Code, is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (6) through (8) as
paragraphs (7) through (9), respectively; and
(B) by inserting after paragraph (5) the following:
``(6) after the date of enactment of the 21st Century
Postal Service Act of 2012, and except as provided in
subsection (e), to provide other services that are not postal
services, after the Postal Regulatory Commission--
``(A) makes a determination that the provision of such
services--
``(i) uses the processing, transportation, delivery, retail
network, or technology of the Postal Service;
``(ii) is consistent with the public interest and a
demonstrated or potential public demand for--

``(I) the Postal Service to provide the services instead of
another entity providing the services; or
``(II) the Postal Service to provide the services in
addition to another entity providing the services;

``(iii) would not create unfair competition with the
private sector, taking into consideration the extent to which
the Postal Service will not, either by legal obligation or
voluntarily, comply with any State or local requirements that
are generally applicable to persons that provide the
services;
``(iv) will be undertaken in accordance with all Federal
laws generally applicable to the provision of such services;
and
``(v) has the potential to improve the net financial
position of the Postal Service, based on a market analysis
provided to the Postal Regulatory Commission by the Postal
Service; and
``(B) for services that the Postal Regulatory Commission
determines meet the criteria under subparagraph (A),
classifies each such service as a market-dominant product,
competitive product, or experimental product, as required
under chapter 36 of title 39, United States Code;''; and
(2) in subsection (e)(2), by striking ``Nothing'' and all
that follows through ``except that the'' and inserting
``The''.
(b) Complaints.--Section 3662(a) of title 39, United States
Code, is amended by inserting ``404(a)(6)(A),'' after
``403(c),''.
(c) Market Analysis.--During the 5-year period beginning on
the date of enactment of this Act, the Postal Service shall
submit a copy of any market analysis provided to the
Commission under section 404(a)(6)(A)(v) of title 39, United
States Code, as amended by this section, 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.

SEC. 212. CHIEF INNOVATION OFFICER; INNOVATION STRATEGY.

(a) Chief Innovation Officer.--
(1) In general.--Chapter 2 of title 39, United States Code,
is amended by adding at the end the following:

``Sec.  209. Chief innovation officer

``(a) Establishment.--There shall be in the Postal Service
a Chief Innovation Officer appointed by the Postmaster
General.
``(b) Qualifications.--The Chief Innovation Officer shall
have proven expertise and a record of accomplishment in areas
such as--
``(1) the postal and shipping industry;
``(2) innovative product research and development;

[[Page S2341]]

``(3) brand marketing strategy;
``(4) new and emerging technology, including communications
technology; or
``(5) business process management.
``(c) Duties.--The Chief Innovation Officer shall lead the
development and implementation of--
``(1) innovative postal products and services, particularly
products and services that use new and emerging technology,
including communications technology, to improve the net
financial position of the Postal Service; and
``(2) nonpostal products and services authorized under
section 404(a)(6) that have the potential to improve the net
financial position of the Postal Service.
``(d) Deadline.--The Postmaster General shall appoint a
Chief Innovation Officer not later than 90 days after the
date of enactment of the 21st Century Postal Service Act of
2012.
``(e) Condition.--
``(1) In general.--The Chief Innovation Officer may not
hold any other office or position in the Postal Service while
serving as Chief Innovation Officer.
``(2) Rule of construction.--Nothing in this section shall
be construed to prohibit an individual who holds another
office or position in the Postal Service at the time the
individual is appointed Chief Innovation Officer from serving
as the Chief Innovation Officer under this section.''.
(2) Technical and conforming amendment.--The table of
sections for chapter 2 of title 39, United States Code, is
amended by adding at the end the following:

``209. Chief innovation officer.''.

(b) Innovation Strategy.--
(1) Initial report on innovation strategy.--
(A) In general.--Not later than 1 year after the date of
enactment of this Act, the Postmaster General, acting through
the Chief Innovation Officer, shall submit a report that
contains a comprehensive strategy (referred to in this
subsection as the ``innovation strategy'') for improving the
net financial position of the Postal Service through
innovation, including the offering of new postal and
nonpostal products and services, to--
(i) the Committee on Homeland Security and Governmental
Affairs of the Senate; and
(ii) the Committee on Oversight and Government Reform of
the House of Representatives.
(B) Matters to be addressed.--At a minimum, the report on
innovation strategy required under subparagraph (A) shall
describe--
(i) the specific innovative postal and nonpostal products
and services to be developed and offered by the Postal
Service, including--

(I) the nature of the market demand to be satisfied by each
product or service; and
(II) the estimated date by which each product or service
will be introduced;

(ii) the cost of developing and offering each product or
service;
(iii) the anticipated sales volume for each product or
service;
(iv) the anticipated revenues and profits to be generated
by each product or service;
(v) the likelihood of success of each product or service
and the risks associated with the development and sale of
each product or service;
(vi) the trends anticipated in market conditions that may
affect the success of each product or service during the 5-
year period beginning on the date of the submission of the
report under subparagraph (A);
(vii) any innovations designed to improve the net financial
position of the Postal Service, other than the offering of
new products and services; and
(viii) the metrics that will be used to assess the
effectiveness of the innovation strategy.
(2) Annual report.--
(A) In general.--Not later than 1 year after the date of
the submission of the initial report containing the
innovation strategy under paragraph (1), and annually
thereafter for 10 years, the Postmaster General, acting
through the Chief Innovation Officer, shall submit a report
on the implementation of the innovation strategy to--
(i) the Committee on Homeland Security and Governmental
Affairs of the Senate; and
(ii) the Committee on Oversight and Government Reform of
the House of Representatives.
(B) Matters to be addressed.--At a minimum, an annual
report submitted under subparagraph (A) shall include--
(i) an update of the initial report on innovation strategy
submitted under paragraph (1);
(ii) a description of the progress made by the Postal
Service in implementing the products, services, and other
innovations described in the initial report on innovation
strategy;
(iii) an analysis of the performance of each product,
service, or other innovation described in the initial report
on innovation strategy, including--

(I) the revenue generated by each product or service
developed in accordance with the innovation strategy under
this section and the cost of developing and offering each
product or service for the preceding year;
(II) trends in each market in which a product or service is
intended to satisfy a demand;
(III) each product or service identified in the innovation
strategy that is to be discontinued, the date on which each
discontinuance will occur, and the reasons for each
discontinuance;
(IV) each alteration that the Postal Service plans to make
to a product or service identified in the innovation strategy
to address changing market conditions and an explanation of
how each alteration will ensure the success of the product or
service;
(V) the performance of innovations other than new products
and services that are designed to improve the net financial
position of the Postal Service; and
(VI) the performance of the innovation strategy according
to the metrics described in paragraph (1)(B)(viii).

SEC. 213. STRATEGIC ADVISORY COMMISSION ON POSTAL SERVICE
SOLVENCY AND INNOVATION.

(a) Establishment.--
(1) In general.--There is established in the Postal Service
a Strategic Advisory Commission on Postal Service Solvency
and Innovation (in this section referred to as the ``Advisory
Commission'').
(2) Independence.--The Advisory Commission shall not be
subject to the supervision of the Board of Governors of the
Postal Service (in this section referred to as the ``Board of
Governors''), the Postmaster General, or any other officer or
employee of the Postal Service.
(b) Purpose.--The purpose of the Advisory Commission is--
(1) to provide strategic guidance to the President,
Congress, the Board of Governors, and the Postmaster General
on enhancing the long-term solvency of the Postal Service;
and
(2) to foster innovative thinking to address the challenges
facing the Postal Service.
(c) Membership.--
(1) Composition.--The Advisory Commission shall be composed
of 7 members, of whom--
(A) 3 members shall be appointed by the President, who
shall designate 1 member appointed under this subparagraph to
serve as Chairperson of the Advisory Commission; and
(B) 1 member shall be appointed by each of--
(i) the majority leader of the Senate;
(ii) the minority leader of the Senate;
(iii) the Speaker of the House of Representatives; and
(iv) the minority leader of the House of Representatives.
(2) Qualifications.--Members of the Advisory Commission
shall be prominent citizens having--
(A) significant depth of experience in such fields as
business and public administration;
(B) a reputation for innovative thinking;
(C) familiarity with new and emerging technologies; and
(D) experience with revitalizing organizations that
experienced significant financial challenges or other
challenges.
(3) Incompatible offices.--An individual who is appointed
to the Advisory Commission may not serve as an elected
official or an officer or employee of the Federal Government
while serving as a member of the Advisory Commission, except
in the capacity of that individual as a member of the
Advisory Commission.
(4) Deadline for appointment.--Each member of the Advisory
Commission shall be appointed not later than 45 days after
the date of enactment of this Act.
(5) Meetings; quorum; vacancies.--
(A) Meetings.--The Advisory Commission shall meet at the
call of the Chairperson or a majority of the members of the
Advisory Commission.
(B) Quorum.--4 members of the Advisory Commission shall
constitute a quorum.
(C) Vacancies.--Any vacancy in the Advisory Commission
shall not affect the powers of the Advisory Commission, but
shall be filled as soon as practicable in the same manner in
which the original appointment was made.
(d) Duties and Powers.--
(1) Duties.--The Advisory Commission shall--
(A) study matters that the Advisory Commission determines
are necessary and appropriate to develop a strategic
blueprint for the long-term solvency of the Postal Service,
including--
(i) the financial, operational, and structural condition of
the Postal Service;
(ii) alternative strategies and business models that the
Postal Service could adopt;
(iii) opportunities for additional postal and nonpostal
products and services that the Postal Service could offer;
(iv) innovative services that postal services in foreign
countries have offered, including services that respond to
the increasing use of electronic means of communication; and
(v) the governance structure, management structure, and
management of the Postal Service, including--

(I) the appropriate method of appointment, qualifications,
duties, and compensation for senior officials of the Postal
Service, including the Postmaster General; and
(II) the number and functions of senior officials of the
Postal Service and the number of levels of management of the
Postal Service; and

(B) submit the report required under subsection (f).

[[Page S2342]]

____________________