No official summary available for this bill.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9839 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 9839
To amend title 39, United States Code, to modernize the Postal Service
regulations, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 25, 2024
Mr. LaTurner introduced the following bill; which was referred to the
Committee on Oversight and Accountability
_______________________________________________________________________
A BILL
To amend title 39, United States Code, to modernize the Postal Service
regulations, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. MODERNIZING POSTAL REGULATIONS.
(a) Cost and Efficiency Reforms.--
(1) In general.--Section 3622(d) of title 39, United States
Code, is amended--
(A) in paragraph (1)(A), by striking ``to be set
by'' and all that follows and inserting the following:
``equal to the amount that is the difference between--
``(i) the percentage change in the Consumer
Price Index for All Urban Consumers unadjusted
for seasonal variation over the most recent
available 12-month period preceding the date
the Postal Service files notice of its
intention to increase rates; and
``(ii) a percentage determined by the
Commission to be sufficient to ensure that the
rate of cost growth of the Postal Service will
be significantly less than the percentage
change described in clause (i) (but not less
than zero);''; and
(B) by amending paragraph (3) to read as follows:
``(3) Revisions.--In revising the system as permitted by
subsection (a), the Postal Regulatory Commission shall make no
change which would cause the revised system to be inconsistent
with this section.''.
(2) Regulations.--Not later than 60 days after the date of
the enactment of this Act, the Postal Regulatory Commission
shall issue such regulations as are necessary to carry out
section 3622(d)(1)(A) of title 39, United States Code, as
amended by this subsection.
(b) Sanctions for Certain Failures of Service.--
(1) In general.--Subchapter VII of chapter 36 of title 39,
United States Code, is amended by adding at the end the
following new section:
``Sec. 3693. Sanctions.
``(a) In General.--If, pursuant to section 3653 or a complaint
proceeding conducted pursuant to section 3662, the Postal Regulatory
Commission determines that the Postal Service failed to meet a target
established under section 3692 and that such failure is a covered
failure, the Commission may reduce the maximum amount by which the
Postal Service may adjust the rates for the market-dominant products
affected by such failure under section 3622, except that such reduction
may not cause such maximum amount to be less than zero. In making such
determination, the Commission shall consider evidence of losses
incurred by users of the product or products concerned as a result of
the failure.
``(b) Applicability.--
``(1) In general.--A reduction under subsection (a) to the
maximum amount by which the Postal Service may adjust the rates
for a market-dominant product under section 3622 shall apply
only with respect to--
``(A) the first implementation of such an
adjustment for such market-dominant product occurring
during the period beginning on the date on which the
Postal Regulatory Commission makes such reduction and
ending on the date on which Commission determines that
the Postal Service is meeting the target established
under section 3692 with respect to which the Commission
made such reduction; and
``(B) each subsequent implementation of such an
adjustment for such market-dominant product occurring
during such period to the extent determined appropriate
by the Commission.
``(2) Subsequent implementation determination.--In making
the determination described in paragraph (1)(B) with respect to
a reduction for a failure described in subsection (a), the
Postal Regulatory Commission shall consider evidence of losses
incurred by users of each product affected by such failure.
``(c) Covered Failure Defined.--In this section, the term `covered
failure' means a failure to meet a target established under section
3692--
``(1) that is not the result of a natural disaster or
another disruptive event the cause of which was outside the
control of the Postal Service;
``(2) that has persisted for a material period of time; and
``(3) with respect to which the Postal Service does not
have a credible plan for achieving and maintaining performance
sufficient to meet the targeted level within a reasonable
time.''.
(2) Clerical amendment.--The table of sections for chapter
36 of title 39, United States Code, is amended by inserting
after the item relating to section 3692 the following:
``3693. Sanctions.''.
(c) Improving Change-in-Service Procedures.--Section 3661 of title
39, United States Code, is amended--
(1) in subsection (b)--
(A) by striking ``When the'' and insert ``(1) When
the'';
(B) by striking ``advisory opinion'' and inserting
``a decision''; and
(C) by adding at the end the following new
paragraph:
``(2)(A) In the absence of a decision with respect to a
proposal under paragraph (1), if the Commission determines that
a plan or initiative of the Postal Service clearly indicates
the need for a change described in such paragraph but such plan
or initiative does explicitly make such a change a purpose or
goal of such plan or initiative, the Commission shall order the
Postal Service to explain why the Postal Service determined
that the Postal Service did not need to submit a proposal to
the Commission under such paragraph with respect to such plan
or initiative.
``(B) An order under subparagraph (A) pursuant to a
determination of the Commission described in such subparagraph
shall include an explanation of the reasoning for such
determination.
``(C)(i) If the Commission determines that the explanation
of the Postal Service provided pursuant to subparagraph (A) is
not sufficient to support the determination of the Postal
Service that the Postal Service did not need to submit a
proposal to the Commission under paragraph (1) with respect to
a plan or initiative, the Postal Service shall justify the
change in the nature of postal services implied by the plan or
initiative and, to the extent necessary, justify the underlying
plan or initiative in a hearing before the Commission.
``(ii) Each hearing under clause (i) shall be conducted in
accordance with sections 556 and 556 of title 5.
``(3) Each decision of the Postal Regulatory Commission
under this subsection shall be transmitted to the Governors of
the Postal Service. The Governors may accept the decision or,
by unanimous written decision, reject the decision and adopt
the original proposal of the Postal Service, in the case of a
request by the Postal Service for a decision, or approve the
plan or initiative found by the Commission to have required a
decision under paragraph (2). The decision of the Governors
shall be a final order for purposes of section 3663 of this
title. If the Governors have not acted upon a Commission
decision within 60 days of receiving it, the Commission
decision will be deemed a final order for purposes of section
3663 of this title.''; and
(2) in subsection (c)--
(A) by inserting ``designated pursuant to section
505 of this title'' after ``officer of the
Commission''; and
(B) by striking ``his judgment'' and inserting
``the judgment of such Commissioner''.
(d) One Rate Increase Annually.--Section 3622(d)(1)(B) of title 39,
United States Code, is amended by inserting after ``amounts'' the
following: ``, except that rates may not change more frequently than
once every 12 months''.
(e) Limit on Underwater Surcharges.--Section 3622(d)(2) of title
39, United States Code, is amended by adding at the end the following
new subparagraph:
``(D) Use of rate authority for non-compensatory
classes.--
``(i) Limitation.--Notwithstanding
paragraph (1)(A), the Commission may authorize
the Postal Service to increase the rates for a
non-compensatory class in excess of annual
limitation under paragraph (1)(A) if--
``(I) the change in the
attributable cost (as such term is
defined in section 3631) per piece of
mail for such class does not exceed the
annual limitation under paragraph
(1)(A), as determined using year-to-
year comparable costing methodologies;
``(II) in the immediately preceding
fiscal year, the Postal Service has--
``(aa) pursuant to section
3652 and without the use of any
proxy data not approved by the
Commission, directly measured
and reported the compliance of
the Postal Service with the
targets established under
section 3692 for each product
in such class for such fiscal
year; and
``(bb) met each such target
for such fiscal year; and
``(III) no target described in
subclause (II) for the immediately
preceding fiscal year was reduced from
the preceding fiscal year.
``(ii) Non-compensatory class defined.--In
this subparagraph, the term `non-compensatory
class' means a class of mail for which the
attributable costs (as defined in section
3631(b)) of the Postal Service exceed revenues
of the Postal Service attributable to such
class of mail.''.
(f) Case-Specific Objectives.--Section 3622 of title 39, United
States Code, is amended--
(1) in subsection (b), in the matter preceding paragraph
(1), by inserting ``, and all of which shall be applied to each
class or type of mail service and product'' after ``others'';
and
(2) in subsection (c), in the matter preceding paragraph
(1), by inserting after ``such system,'' the following: ``or
when evaluating whether a class or type of mail service or
product complies with the applicable provisions of this chapter
and the regulations issues under such provisions,''.
(g) Retained Earnings From Cost Savings.--Section 3622(b)(5) of
title 39, United States Code, is amended by inserting after ``retained
earnings'' the following: ``resulting from improvements in efficiency
or reductions in cost only''.
(h) Office of the Customer Advocate.--
(1) In general.--Section 505 of title 39, United States
Code, is amended to read as follows:
``Sec. 505. Office of the Customer Advocate
``(a) In General.--The Postal Regulatory Commission shall establish
in the Postal Regulatory Commission an Office of the Customer Advocate
(in this section referred to as the `Office').
``(b) Representation.--
``(1) In general.--The Office shall represent the interests
of the general public in all public proceedings of the
Commission, including the interests of customers of market-
dominant products and classes.
``(2) Rights and limits.--
``(A) In general.--The Office--
``(i) shall have the same right as any
interested person to lodge a complaint with or
petition the Commission, or otherwise seek to
have the Commission initiate a public
proceeding, including rulemakings; and
``(ii) is subject to the same ex parte
rules and limitations as any other litigant
with respect to communication with the
Commission, Commissioners, and the advisory
staff of the Commission.
``(B) Represent conflicting interest.--
``(i) In general.--The Office may represent
conflicting interests of the general public in
a public proceeding of the Commission to the
extent that the head of the Office determines
necessary for the Office to effectively
represent the interests of the general public
in such proceeding.
``(ii) Separate representatives.--If the
Office is representing conflicting interests of
the general public in a public proceeding of
the Commission, the head of the Office shall
ensure that such conflicting interests are
represented by different individuals to the
extent and in such manner as the head of the
Office determines necessary for the Office to
effectively represent the interests of the
general public in such proceeding.
``(3) Office autonomy.--The Commission may not terminate or
otherwise take adverse employment action against any employee
of or individual detailed to the Office based on the
representation of the interests of the general public by such
employee or detailee as an employee of or detailee to the
Office, respectively, in a public proceeding of the Commission,
except for cause.
``(c) Research Authority.--The Office may--
``(1) conduct research and policy development for the
purposes of representing the interests of the general public,
including research and policy development that is unrelated to
a specific proceeding of the Commission; and
``(2) subject to the availability of funds, obtain the
temporary or intermittent services of experts or consultants
for such purposes.
``(d) Outside Consultation.--The Office shall consult with outside
persons and organizations whose postal interests are relevant to the
mission of the Office, including those persons and organizations that
are actual or potential litigants before the Commission.
``(e) Rate and Classification Inquiry.--The Office shall inquire
into the rates and classifications of competitive products only to the
extent necessary to evaluate compliance with sections 3622(b)(8) and
3622(b)(9) of this title, subchapter II of chapter 36 of this title,
and the regulations issued under such subchapter.
``(f) Office Staff.--The Commission shall ensure that, to the
extent practicable, the Office has employees of a sufficient quantity
and quality for the Office to effectively carry out the
responsibilities of the Office under this section, including by
maximizing the duration of the detail of individuals detailed to the
Office.''.
(2) Clerical amendment.--The table of sections for chapter
5 of title 39, United States Code, is amended by striking the
item relating to section 505 and inserting the following:
``505. Office of the Customer Advocate.''.
(i) Complaint Process Improvement.--Section 3662 of title 39,
United States Code, is amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph
(A)--
(I) by striking ``The Postal'' and
inserting ``With respect to a complaint
received under subsection (a), the
Postal''; and
(II) by striking ``, within 90 days
after receiving a complaint under
subsection (a)''; and
(ii) in subparagraph (A)--
(I) by striking clause (i) and
inserting the following:
``(i) begin proceedings on such complaint--
``(I) immediately after the
expiration of the period described in
paragraph (3) if the Commission finds
that such complaint raises material
issues of fact or law and no motion
described in clause (ii) with respect
to such complaint is filed in such
period;
``(II) immediately after the
Commission denies all motions described
in clause (ii) with respect to such
complaint that were filed during the
period described in paragraph (3) if
the Commission finds that such
complaint raises material issues of
fact or law and all such motions are
denied not later than 45 days after the
date on which the Commission received
such complaint under such subsection;
or
``(III) not later than 45 days
after the date on which the Commission
receives such complaint under such
subsection if subclause (I) and (II) do
not apply with respect to such
complaint; or''; and
(II) in clause (ii)--
(aa) by inserting before
``issue'' the following: ``if
the Commission finds that,
after consideration of any
motion asserting that such
complaint raises no material
issues of law or fact, that
such complaint raises no such
issue, upon making such
finding''; and
(bb) by inserting ``within
45 days after receiving such
complaint under such
subsection'' after ``dismissing
the complaint''; and
(B) by adding at the end the following new
paragraph:
``(3) Prompt motions.--A motion described in subparagraph
(A)(ii) with respect to a complaint may only be filed during
the 25-day period beginning on date on which such complaint is
filed, or during such shorter period as the Postal Regulatory
Commission may prescribed by regulation.''; and
(2) in subsection (c)--
(A) by striking ``or requiring'' and inserting
``requiring''; and
(B) by inserting after ``competitive products'' the
following: ``or, upon a finding that the Postal Service
has unreasonably delayed the proceeding, ordering
reimbursement consistent with section 3681''.
(j) Reimbursement of Unlawful Rates; Penalty for Unreasonable
Delay.--Section 3681 of title 39, United States Code, is amended--
(1) by striking ``No mailer'' and inserting ``(a) No
mailer'';
(2) by striking ``through 3664 of this title, or is
superseded by a lower rate or fee established under subchapter
II of this chapter''; and
(3) by adding at the end the following new subsection:
``(b)(1)(A) If the Postal Regulatory Commissions determines that a
rate or fee for a product is unlawful in a review conducted pursuant to
section 3653 of this title or in a complaint proceeding conducted
pursuant to section 3662 of this title, the Commission shall order the
price increase authority for such product and all other products in the
class of mail containing such product to be reduced (but not below
zero) for the next following price adjustment and each succeeding price
adjustments until the amount of foregone revenue is equal to amount of
revenue received by the Postal Service from the portion of such rate or
fee that exceeded the lawful amount such rate or fee.
``(B) In this paragraph, the term `foregone revenue' means the
difference between--
``(i) the revenue that the Postal Service would have
received from the sale of the products subject to an order
under subparagraph (A) during the period that the Postal
Service is unable to increase the prices of such products
pursuant to such order if--
``(I) the Commission had not issued such order; and
``(II) the rate or fee for the product with the
unlawful rate or fee for which the Commission issued
such order was the maximum lawful rate or fee for such
product at the time the Commission issued such order;
and
``(ii) the revenue the Postal Service receives from the
sale of the products subject to such order during such period.
``(2)(A) In a complaint proceeding conducted pursuant to section
3662 of this title, if the Postal Regulatory Commission finds that the
Postal Service has unreasonably delayed the proceeding, the Commission
may order a reduction in the price increase authority for the product
or products whose rate or fee it has determined to be unlawful to the
extent that the unreasonable delay caused by the Postal Service has
extended the time during which users of such product or products have
paid the unlawful rate or fee.
``(B) A reduction under subparagraph (A) shall be in addition to
any reduction under paragraph (1).
``(C) The Commission shall include in an order under subparagraph
(A) with respect to the unreasonably delay of a proceeding an
explanation of the basis for the determination of the Commission
regarding the time such proceeding would have required absent such
unreasonable delay.''.
(k) Mail Volume System Objective.--Section 3622(b) of title 39,
United States Code, is amended--
(1) by redesignating paragraph (9) as paragraph (10); and
(2) by inserting after paragraph (8) the following new
paragraph:
``(9) To maintain and, to the extent practicable, increase
the volume of market-dominant mail, with due regard to total
contribution to the institutional costs of the Postal
Service.''.
(l) New Product Definition Criteria.--Section 3642(b)(3) of title
39, United States Code, is amended--
(1) in subparagraph (B), by striking ``and'';
(2) in subparagraph (C), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(D) the importance of paragraphs (7), (8), and
(11) of section 3622(c) of this title in the
appropriate definition of market-dominant products.''.
(m) Mail Volume Estimation Model.--
(1) In general.--Not later than 120 days after the date of
the enactment of this Act, the Postal Regulatory Commission
shall develop a model for estimating the demand for postal
services.
(2) Independent development.--The Commission may not
consider any models for estimating demand developed by the
Postal Service when developing the model required under this
subsection.
(3) Public comment.--In developing the model required under
this subsection, the Postal Regulatory Commission shall solicit
and provide adequate opportunity for public comment regarding
the model.
(4) Regulations.--The Postal Regulatory Commission may
issue such regulations, after notice and comment in accordance
with section 553 of title 5, United States Code, as the
Commission determines necessary to develop the model required
under this subsection.
(5) Expert advisors.--The Commission may obtain the
temporary or intermittent services of experts or consultants to
facilitate the development of the model required under this
subsection.
(n) Labor Dispute Arbitration Considerations.--Section 1207(c)(2)
of title 39, United States Code, is amended by inserting after ``they
may elect.'' the following: ``When making a decision, the arbitration
board shall consider the current and, to the extent practicable,
projected financial condition of the Postal Service in addition to any
other relevant considerations.''.
SEC. 2. INVESTMENT OF THE POSTAL SERVICE RETIREE HEALTH BENEFITS FUNDS.
Section 8909a(c) of title 5, United States Code, is amended--
(1) by striking ``(c) The Secretary'' and inserting
``(c)(1) Subject to paragraph (2), the Secretary''; and
(2) by adding at the end the following:
``(2)(A) The Secretary of the Treasury shall immediately
invest a specified percentage of the Fund, using one or more
qualified professional asset managers, in index funds modeled
after those established under subparagraphs (B), (C), (D), and
(E) of section 8438(b)(1). The Secretary shall ensure, to the
maximum extent practicable, that the investment replicates the
performance of the longest-term target date asset allocation
investment fund established by the Federal Retirement Thrift
Investment Board.
``(B) In exercising authority under subparagraph (A),
including in the selection of specific qualified professional
asset managers and in the development of specific investment
guidelines to meet the requirement of such subparagraph, the
Secretary shall consult with the Postal Service Retiree Health
Benefits Fund Investment Committee.
``(C)(i) There is established a Postal Service Retiree
Health Benefits Fund Investment Committee that shall consist
of--
``(I) the Secretary;
``(II) the Chair of the Board of Governors of the
United States Postal Service;
``(III) the Chairman of the Federal Retirement
Thrift Investment Board; and
``(IV) two members, appointed by the President,
who--
``(aa) shall represent the interests of
Postal Service employees and annuitants;
``(bb) have experience and expertise in the
management of financial investments and Postal
Service employee benefits; and
``(cc) shall serve for a term of 3 years.
``(ii) Subsections (b)(1) and (c)(2) of section 8477 shall
apply with respect to the Postal Service Retiree Health
Benefits Fund Investment Committee and each member of the
Postal Service Retiree Health Benefits Fund Investment
Committee in the same manner as such subsections apply to a
fiduciary with respect to the Thrift Savings Fund.
``(D)(i) The Secretary shall annually engage an independent
qualified public accountant (as defined in section 8439) to
audit and provide a report on the financial statements of the
investments made pursuant to subparagraph (A).
``(ii) Not later than 180 days after the end of each fiscal
year beginning after the date of the enactment of this
paragraph, the Secretary shall submit to Congress an annual
management report regarding the Fund that includes--
``(I) a statement of financial position;
``(II) a statement of operations;
``(III) a statement of cash flows;
``(IV) a statement on internal accounting and
administrative control systems;
``(V) the most recent report resulting from an
audit of the financial statements of the investments
conducted under clause (i); and
``(VI) any other comments and information the
Secretary determines necessary to inform the Congress
about the operations and financial condition of the
investments.
``(E) In this paragraph--
``(i) the term `specified percentage' means 25
percent of the currently available portions of the Fund
as are not immediately required for payments from the
Fund, except that the Postal Service Retiree Health
Benefits Fund Investment Committee may specify a higher
percentage, not to exceed 30 percent, not earlier than
5 years after the date of enactment of the Postal
Service Financial Improvement Act of 2019, and as
appropriate thereafter; and
``(ii) the term `qualified professional asset
manager' has the meaning given that term in section
8438(a).''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Oversight and Accountability.
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