untitled

136 STAT. 1127 PUBLIC LAW 117–108—APR. 6, 2022

Public Law 117–108

117th Congress

An Act

To provide stability to and enhance the services of the United States Postal Service,

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. SHORT TITLE; TABLE OF CONTENTS.

(a) S

HORT

ITLE

.—This Act may be cited as the ‘‘Postal Service

Reform Act of 2022’’.

(b) T

ABLE OF

ONTENTS

.—The table of contents of this Act

is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definitions.

TITLE I—POSTAL SERVICE FINANCIAL REFORMS

Sec. 101. Postal Service Health Benefits Program.

Sec. 102. USPS Fairness Act.

Sec. 103. Nonpostal services.

TITLE II—POSTAL SERVICE OPERATIONAL REFORMS

Sec. 201. Performance targets and transparency.

Sec. 202. Integrated delivery network.

Sec. 203. Review of Postal Service cost attribution guidelines.

Sec. 204. Rural newspaper sustainability.

Sec. 205. Funding of Postal Regulatory Commission.

Sec. 206. Flats operations study and reform.

Sec. 207. Reporting requirements.

Sec. 208. Postal Service transportation selection policy revisions.

Sec. 209. USPS Inspector General oversight of Postal Regulatory Commission.

TITLE III—SEVERABILITY

Sec. 301. Severability.

SEC. 2. DEFINITIONS.

(a) C

OMMISSION

.—In this Act, the term ‘‘Commission’’ means

the Postal Regulatory Commission.

(b) T

ERMS

EFINED IN

ITLE

39, U

NITED

TATES

ODE

.—In

this Act, the terms ‘‘competitive product’’, ‘‘market-dominant

product’’, and ‘‘Postal Service’’ have the meanings given those terms

in section 102 of title 39, United States Code.

TITLE I—POSTAL SERVICE FINANCIAL

REFORMS

SEC. 101. POSTAL SERVICE HEALTH BENEFITS PROGRAM.

(a) E

STABLISHMENT

.—

(1) I

N GENERAL

.—Chapter 89 of title 5, United States Code,

is amended by inserting after section 8903b the following:

39 USC 501 note.

39 USC 101 note.

Postal Service

Reform Act of

2022.

Apr. 6, 2022

[H.R. 3076]

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136 STAT. 1128 PUBLIC LAW 117–108—APR. 6, 2022

‘‘§ 8903c. Postal Service Health Benefits Program

‘‘(a) D

EFINITIONS

.—In this section—

‘‘(1) the term ‘covered Medicare individual’ means an indi-

vidual who is entitled to benefits under Medicare part A, but

excluding an individual who is eligible to enroll under such

part under section 1818 or 1818A of the Social Security Act

(42 U.S.C. 1395i–2, 1395i–2a);

‘‘(2) the term ‘initial contract year’ means the contract

year beginning in January of 2025;

‘‘(3) the term ‘initial participating carrier’ means a carrier

that enters into a contract with the Office to participate in

the Program during the initial contract year;

‘‘(4) the term ‘Medicare part A’ means part A of title XVIII

of the Social Security Act (42 U.S.C. 1395c et seq.);

‘‘(5) the term ‘Medicare part B’ means part B of title XVIII

of the Social Security Act (42 U.S.C. 1395j et seq.);

‘‘(6) the term ‘Office’ means the Office of Personnel Manage-

ment;

‘‘(7) the term ‘Postal Service’ means the United States

Postal Service;

‘‘(8) the term ‘Postal Service annuitant’ means an annuitant

enrolled in a health benefits plan under this chapter whose

Government contribution is required to be paid under section

8906(g)(2);

‘‘(9) the term ‘Postal Service employee’ means an employee

of the Postal Service enrolled in a health benefits plan under

this chapter whose Government contribution is paid by the

Postal Service;

‘‘(10) the term ‘Postal Service Medicare covered annuitant’

means an individual who—

‘‘(A) is a Postal Service annuitant; and

‘‘(B) is a covered Medicare individual;

‘‘(11) the term ‘Program’ means the Postal Service Health

Benefits Program established under subsection (c) within the

Federal Employees Health Benefits Program;

‘‘(12) the term ‘Program plan’ means a health benefits

plan offered under the Program; and

‘‘(13) the definitions set forth in section 8901 shall apply,

and for the purposes of applying such definitions in carrying

out this section, a Postal Service employee and Postal Service

annuitant shall be treated in the same manner as an employee

and an annuitant (as those terms are defined in paragraphs

(1) and (3), respectively, of section 8901), consistent with the

requirements of this section.

‘‘(b) A

PPLICATION

.—The requirements under this section shall—

‘‘(1) apply to the initial contract year and each contract

year thereafter; and

‘‘(2) supersede any other provision of this chapter incon-

sistent with such requirements, as determined by the Office.

‘‘(c) E

STABLISHMENT OF THE

OSTAL

ERVICE

EALTH

ENEFITS

ROGRAM

.—

‘‘(1) I

N GENERAL

.—

‘‘(A) E

STABLISHMENT

.—The Office shall establish the

Postal Service Health Benefits Program within the Federal

Employees Health Benefits Program under this chapter,

under which the Office may contract with carriers to offer

health benefits plans as described under this section.

5 USC 8903c.

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136 STAT. 1129 PUBLIC LAW 117–108—APR. 6, 2022

‘‘(B) A

PPLICABILITY OF CHAPTER REQUIREMENTS TO CON

TRACTS

.—Except as otherwise provided in this section, any

contract described in subparagraph (A) shall be consistent

with the requirements of this chapter for contracts under

section 8902 with carriers to offer health benefits plans

other than under this section.

‘‘(C) P

ROGRAM PLANS AND PARTICIPATION

.—The Pro-

gram shall—

‘‘(i) to the greatest extent practicable—

‘‘(I) with respect to each plan provided by a

carrier under this subchapter in which the total

enrollment includes, in the contract year beginning

in January 2023, 1,500 or more enrollees who are

Postal Service employees or Postal Service annu-

itants, include a plan offered by that carrier with

equivalent benefits and cost-sharing requirements

as provided under paragraph (2), except that the

Director of the Office may exempt any comprehen-

sive medical plan from this requirement; and

‘‘(II) include plans offered by any other carrier

determined appropriate by the Office;

‘‘(ii) provide for enrollment in Program plans of

Postal Service employees and Postal Service annu-

itants, in accordance with subsection (d);

‘‘(iii) provide for enrollment in a Program plan

as an individual, for self plus one, or for self and

family; and

‘‘(iv) not provide for enrollment in a Program plan

of an individual who is not a Postal Service employee

or Postal Service annuitant (except as a member of

family of such an employee or annuitant or as provided

under paragraph (4)).

‘‘(2) C

OVERAGE WITH EQUIVALENT BENEFITS AND COST

SHARING

.—In the initial contract year, the Office shall ensure

that each carrier participating in the Program provides under

the Program plans offered by the carrier benefits and cost-

sharing requirements that are equivalent to the benefits and

cost-sharing requirements under the health benefits plans

offered by the carrier under this chapter that are not Program

plans, except that prescription drug benefits and cost-sharing

requirements may differ between the Program plans and other

health benefits plans offered by the carrier under this chapter

to the extent needed to integrate the Medicare part D prescrip-

tion drug benefits coverage required under subsection (h)(2).

‘‘(3) A

PPLICABILITY OF FEDERAL EMPLOYEES HEALTH BENE

FITS PROGRAM REQUIREMENTS

.—Except as otherwise set forth

in this section, the provisions of this chapter applicable to

health benefits plans offered by carriers under section 8903

or 8903a shall apply to plans offered under the Program.

‘‘(4) A

PPLICATION OF CONTINUATION COVERAGE

.—In accord-

ance with rules established by the Office, section 8905a shall

apply to health benefits plans offered under this section in

the same manner as such section applies to other health bene-

fits plans offered under this chapter.

‘‘(d) E

LECTION OF

OVERAGE

.—Each Postal Service employee

and Postal Service annuitant who elects to receive health benefits

coverage under this chapter—

Effective date.

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136 STAT. 1130 PUBLIC LAW 117–108—APR. 6, 2022

‘‘(1) shall be subject to the requirements of this section;

and

‘‘(2) may not enroll in any other health benefits plan offered

under any other section of this chapter.

‘‘(e) R

EQUIREMENT OF

EDICARE

NROLLMENT FOR

ERTAIN

NNUITANTS AND

HEIR

AMILY

EMBERS

.—

‘‘(1) M

EDICARE COVERED ANNUITANTS

.—Except as provided

under paragraph (3), a Postal Service Medicare covered annu-

itant may not enroll in a Program plan unless the annuitant

is entitled to benefits under Medicare part A and enrolled

in Medicare part B.

‘‘(2) M

EDICARE COVERED FAMILY MEMBERS

.—Except as pro-

vided under paragraph (3), in the case of a Postal Service

annuitant who is entitled to benefits under Medicare part A

and required under this subsection to enroll in Medicare part

B to enroll under the Program, if a member of family of such

Postal Service annuitant is a covered Medicare individual, that

member of family may not enroll under the Program as a

member of family of the Postal Service annuitant unless that

member of family is entitled to benefits under Medicare part

A and enrolled in Medicare part B.

‘‘(3) E

XCEPTIONS

.—

‘‘(A) I

N GENERAL

.—The requirements under paragraphs

(1) and (2), as applicable, shall not apply with respect

to an individual in the following cases:

‘‘(i) C

URRENT POSTAL SERVICE ANNUITANTS

.—The

individual, as of January 1, 2025, is a Postal Service

annuitant who is not both entitled to benefits under

Medicare part A and enrolled in Medicare part B.

‘‘(ii) C

URRENT EMPLOYEES AGED 64 AND OVER

.—

The individual, as of January 1, 2025, is a Postal

Service employee and is at least 64 years of age.

‘‘(iii) P

OSTAL SERVICE MEDICARE COVERED ANNU

ITANTS AND FAMILY MEMBERS RESIDING ABROAD

.—For

any contract year with respect to which the individual

is a Postal Service Medicare covered annuitant or a

member of family of a Postal Service Medicare covered

annuitant and resides outside the United States (which

includes the States, the District of Columbia, the

Commonwealth of Puerto Rico, the Virgin Islands,

Guam, American Samoa, and the Northern Mariana

Islands), provided that the individual demonstrates

such residency to the Postal Service in accordance with

regulations issued by the Postal Service.

‘‘(iv) P

OSTAL SERVICE MEDICARE COVERED ANNU

ITANTS AND FAMILY MEMBERS ENROLLED UNDER VA COV

ERAGE

.—The individual—

‘‘(I) is a Postal Service Medicare covered annu-

itant or a member of family of a Postal Service

Medicare covered annuitant; and

‘‘(II) is enrolled in health care benefits pro-

vided by the Department of Veterans Affairs under

subchapter II of chapter 17 of title 38, United

States Code.

‘‘(v) P

OSTAL SERVICE MEDICARE COVERED ANNU

ITANTS AND FAMILY MEMBERS ELIGIBLE FOR IHS HEALTH

SERVICES

.—The individual—

Effective date.

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136 STAT. 1131 PUBLIC LAW 117–108—APR. 6, 2022

‘‘(I) is a Postal Service Medicare covered annu-

itant or a member of family of a Postal Service

Medicare covered annuitant; and

‘‘(II) is eligible for health services from the

Indian Health Service.

‘‘(B) R

EGULATIONS FOR VA AND IHS EXCEPTIONS

.—Not

later than 1 year after the date of enactment of this section,

the Office shall, in consultation with the Secretary of Vet-

erans Affairs, the Secretary of Health and Human Services,

and the Postmaster General, promulgate any regulations

necessary to implement clauses (iv) and (v) of subparagraph

(A).

‘‘(C) L

IST OF INDIVIDUALS RESIDING ABROAD

.—The

Postal Service shall provide a list of individuals who satisfy

the exception under subparagraph (A)(iii) to the Office.

‘‘(4) P

ROCESS FOR INFORMATION COLLECTION AND DISSEMI

NATION

.—The Postal Service and the Office, in consultation

with the Social Security Administration and the Centers for

Medicare & Medicaid Services, shall establish a process that

will enable the Postal Service to timely inform Postal Service

employees, Postal Service annuitants, and members of family

of such employees and annuitants of the requirements described

in paragraphs (1) and (2) in order to be eligible to enroll

in Program plans under this section.

‘‘(f) T

RANSITIONAL

PEN

EASON

.—

‘‘(1) D

EFINITIONS

.—In this subsection—

‘‘(A) the term ‘current option’, with respect to an indi-

vidual, means the option under a plan under this chapter

in which the individual is enrolled during the contract

year preceding the initial contract year; and

‘‘(B) the term ‘current plan’, with respect to an indi-

vidual, means the plan under this chapter in which the

individual is enrolled during the contract year preceding

the initial contract year.

‘‘(2) A

UTOMATIC ENROLLMENT

.—

‘‘(A) I

N GENERAL

.—Subject to subparagraphs (B) and

(C), in the case of an individual who is a Postal Service

employee or Postal Service annuitant eligible to enroll in

a Program plan under subsection (d), who is enrolled in

a current plan, and who does not enroll in a Program

plan during the open season that immediately precedes

the initial contract year, the Office shall automatically

enroll the individual, as of the start of the initial contract

year, in a Program plan offered by the carrier of the individ-

ual’s current plan.

‘‘(B) C

ARRIERS OFFERING MULTIPLE PROGRAM PLANS OR

OPTIONS

.—If the carrier of the current plan of an individual

described in subparagraph (A) offers more than 1 Program

plan or option, the Office, in carrying out subparagraph

(A), shall automatically enroll the individual in the plan

and option that provide coverage with equivalent benefits

and cost sharing, as described in subsection (c)(2), to the

individual’s current plan and current option.

‘‘(C) C

ARRIERS NOT OFFERING PROGRAM PLANS

.—If the

carrier of the current plan of an individual described in

subparagraph (A) does not offer a Program plan, the Office,

in carrying out subparagraph (A), shall automatically enroll

Consultation.

Deadline.

Consultation.

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136 STAT. 1132 PUBLIC LAW 117–108—APR. 6, 2022

the individual in the lowest-cost nationwide plan option

within the Program that is not a high deductible health

plan and does not charge an association or membership

fee.

‘‘(g) OPM R

EGULATIONS

.—

‘‘(1) I

N GENERAL

.—Not later than 1 year after the date

of enactment of this section, the Director of the Office shall

issue regulations to carry out this section.

‘‘(2) C

ONSULTATION

.—In issuing regulations under para-

graph (1), the Director of the Office shall consult, as necessary,

with the Secretary of Health and Human Services, the Sec-

retary of Veterans Affairs, the Commissioner of Social Security,

and the Postmaster General.

‘‘(3) C

ONTENTS

.—The regulations issued under paragraph

(1) shall include—

‘‘(A) any provisions necessary to implement this sec-

tion;

‘‘(B) a process under which Postal Service annuitants

and affected family members are timely informed of the

enrollment requirements and may request, in writing, any

additional enrollment information;

‘‘(C) provisions under which a Postal Service employee

or Postal Service annuitant enrolled under the Program

may request a belated change of plan and may be prospec-

tively enrolled in the plan of the employee’s or annuitant’s

choice; and

‘‘(D) provisions for individuals to cancel coverage under

the Program in writing to the Postal Service because the

individuals choose not to enroll in, or to disenroll from,

Medicare part B.

‘‘(h) M

EDICARE

OORDINATION

.—

‘‘(1) I

N GENERAL

.—The Office shall require each Program

plan to provide benefits for covered Medicare individuals pursu-

ant to a coordination of benefits method approved by the Office.

‘‘(2) M

EDICARE PART D PRESCRIPTION DRUG BENEFITS

.—The

Office shall require each Program plan to provide prescription

drug benefits to any Postal Service annuitant and member

of family of such annuitant who is a part D eligible individual

(as defined in section 1860D–1(a)(3)(A) of the Social Security

Act) through employment-based retiree health coverage (as

defined in section 1860D–22(c)(1) of such Act) through—

‘‘(A) a prescription drug plan (as defined in section

1860D–41(a)(14) of such Act); or

‘‘(B) contracts between such a Program plan and PDP

sponsor, as defined in section 1860D–41(a)(13) of such Act,

of such a prescription drug plan.

‘‘(i) P

OSTAL

ERVICE

ONTRIBUTION

.—

‘‘(1) I

N GENERAL

.—Subject to subsection (k), for purposes

of applying section 8906(b) to the Postal Service, the weighted

average shall be calculated in accordance with paragraphs (2)

and (3).

‘‘(2) W

EIGHTED AVERAGE CALCULATION

.—Not later than

October 1 of each year (beginning with 2024), the Office shall

determine the weighted average of the rates established pursu-

ant to subsection (c)(2) for Program plans that will be in effect

during the following contract year with respect to—

‘‘(A) enrollments for self only;

Deadline.

Effective date.

Determination.

Applicability.

Contracts.

Requirements.

Deadline.

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136 STAT. 1133 PUBLIC LAW 117–108—APR. 6, 2022

‘‘(B) enrollments for self plus one; and

‘‘(C) enrollments for self and family.

‘‘(3) W

EIGHTING IN COMPUTING RATES FOR INITIAL CONTRACT

YEAR

.—In determining such weighted average of the rates for

the initial contract year, the Office shall take into account

(for purposes of section 8906(a)(2)) the enrollment of Postal

Service employees and annuitants in the health benefits plans

offered by the initial participating carriers as of March 31,

2023.

‘‘(4) P

AYMENT OF LATE ENROLLMENT PENALTIES

.—The Postal

Service may direct the Office to pay the amounts required

by an agreement between the United States Postal Service

and the Secretary of the Department of Health and Human

Services under section 1839(e)(1) of the Social Security Act

(42 U.S.C. 1395r(e)(1)) from the Postal Service Retiree Health

Benefits Fund established under section 8909a until depleted

and thereafter shall pay such amounts from the Postal Service

Fund established under section 2003 of title 39.

‘‘(j) R

ESERVES

.—

‘‘(1) S

EPARATE RESERVES

.—

‘‘(A) I

N GENERAL

.—The Office shall ensure that each

Program plan maintains separate reserves (including a

separate contingency reserve) with respect to the enrollees

in the Program plan in accordance with section 8909.

‘‘(B) A

PPLICABILITY OF SECTION 8909 TO CONTINGENCY

RESERVES

.—All provisions of section 8909 relating to contin-

gency reserves shall apply to contingency reserves of Pro-

gram plans in the same manner as to the contingency

reserves of other plans under this chapter, except to the

extent that such provisions are inconsistent with the

requirements of this subsection.

‘‘(C) R

EFERENCES

.—For purposes of the Program, each

reference to ‘the Government’ in section 8909 shall be

deemed to be a reference to the Postal Service.

‘‘(D) A

MOUNTS TO BE CREDITED

.—The reserves

(including the separate contingency reserve) maintained

for each Program plan shall be credited with a propor-

tionate amount of the funds in the reserves for health

benefits plans offered by the carrier.

‘‘(2) D

ISCONTINUATION OF PROGRAM PLAN

.—In applying sec-

tion 8909(e) relating to a Program plan that is discontinued,

the Office shall credit the separate Postal Service contingency

reserve maintained under paragraph (1) for that plan only

to the separate Postal Service contingency reserves of the Pro-

gram plans continuing under this chapter.

‘‘(k) N

FFECT ON

XISTING

.—Nothing in this section

shall be construed as affecting section 1005(f) of title 39 regarding

variations, additions, or substitutions to the provisions of this

chapter.

‘‘(l) H

EALTH

ENEFITS

DUCATION

ROGRAM

.—

‘‘(1) D

EFINITION

.—In this subsection, the term ‘navigator’

means an employee of the Postal Service or of a contractor

of the Postal Service who is designated by the Postal Service

or contractor to carry out activities under paragraph (5).

‘‘(2) E

STABLISHMENT

.—Not later than 18 months after the

date of enactment of this section, the Postal Service shall

establish a Health Benefits Education Program.

Deadline.

Applicability.

Effective date.

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136 STAT. 1134 PUBLIC LAW 117–108—APR. 6, 2022

‘‘(3) R

EQUIREMENTS

.—In carrying out the Health Benefits

Education Program established under paragraph (2), the Postal

Service shall—

‘‘(A) notify Postal Service annuitants and Postal Service

employees about the Postal Service Health Benefits Pro-

gram established under subsection (c)(1);

‘‘(B) provide information regarding the Postal Service

Health Benefits Program and the requirements of this sec-

tion to Postal Service annuitants and Postal Service

employees, including—

‘‘(i) a description of the health care options avail-

able under such Program;

‘‘(ii) the enrollment provisions of subsection (d);

and

‘‘(iii) the requirement that Postal Service annu-

itants and their family members be enrolled in Medi-

care under subsection (e);

‘‘(C) respond and provide answers to any inquiry from

such employees and annuitants about the Postal Service

Health Benefits Program, in consultation with the Office

as necessary;

‘‘(D) in consultation with the Centers for Medicare

& Medicaid Services and the Social Security Administra-

tion, provide information to individuals about enrollment

under the Medicare program under title XVIII of the Social

Security Act, and refer individuals to the Centers for Medi-

care & Medicaid Services and the Social Security Adminis-

tration as necessary for additional enrollment information;

and

‘‘(E) carry out, or provide for through contract or other

arrangement, the activities described in paragraph (5).

‘‘(4) I

NFORMATION

.—

‘‘(A) I

NFORMATION FROM OPM

.—The Office shall timely

provide the Postal Service with such information as nec-

essary to conduct the Health Benefits Education Program.

‘‘(B) C

OORDINATION WITH OPM

.—The Postal Service

shall coordinate with the Office, in consultation with the

Centers for Medicare & Medicaid Services and the Social

Security Administration, to obtain and confirm the accuracy

of information as the Postal Service determines to be nec-

essary to conduct the Health Benefits Education Program.

‘‘(5) N

AVIGATOR ACTIVITIES

.—

‘‘(A) A

CTIVITIES

.—The activities described in this para-

graph, with respect to Program plans and the health care

options available under the Program, are the following:

‘‘(i) Educational activities for annuitants and

employees of the Postal Service to raise awareness

of the availability of Program plans and requirements

for enrolling in such plans, including requirements to

be entitled to Medicare part A and enroll in Medicare

part B.

‘‘(ii) Distribution of fair and impartial information

concerning enrollment in such plans.

‘‘(iii) Facilitation of enrollment in such plans.

‘‘(iv) Provision of information in a manner that

is culturally and linguistically appropriate to the needs

of the population being served by the Program plans.

Consultation.

Notification.

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136 STAT. 1135 PUBLIC LAW 117–108—APR. 6, 2022

‘‘(B) S

TANDARDS

.—

‘‘(i) I

N GENERAL

.—The Postal Service shall estab-

lish standards for navigators carrying out the activities

under this paragraph to—

‘‘(I) engage in the navigator activities

described in subparagraph (A); and

‘‘(II) avoid conflicts of interest.

‘‘(ii) C

ONTENTS

.—The standards established under

clause (i) shall provide that a navigator may not—

‘‘(I) be a health insurance carrier; or

‘‘(II) receive any consideration directly or

indirectly from any health insurance carrier in

connection with the enrollment of any individual

in a Program plan.

‘‘(C) F

AIR AND IMPARTIAL INFORMATION AND SERVICES

.—

The Postal Service, in consultation as necessary with the

Office and the Centers for Medicare & Medicaid Services,

shall develop standards to ensure that information made

available by navigators under this paragraph is fair,

accurate, and impartial.

‘‘(6) R

EGULATIONS

.—

‘‘(A) I

N GENERAL

.—Not later than 18 months after the

date of enactment of this section, the Postmaster General

shall issue regulations to establish the Health Benefits

Education Program required under this subsection.

‘‘(B) C

ONTENTS

.—The regulations issued under

subparagraph (A) shall include—

‘‘(i) provisions for the notification of Postal Service

annuitants and Postal Service employees about the

Program, including a description of the available health

benefits options, including a process for notifying

Postal Service employees who become eligible for Medi-

care part B and Postal Service Medicare covered annu-

itants about their choices;

‘‘(ii) provisions for notifying Postal Service annu-

itants, Postal Service employees, and their family mem-

bers of the requirements under subsection (e) to enroll

in Medicare as a condition of eligibility to enroll in

the Program; and

‘‘(iii) a process, developed in consultation with the

Social Security Administration, the Centers for Medi-

care & Medicaid Services, and the Office, for

addressing any inquiry from Postal Service annuitants

and Postal Service employees about the Program or

Medicare enrollment.’’.

(2) T

ECHNICAL AND CONFORMING AMENDMENTS

.—

(A) S

ERVICE BENEFIT PLANS

.—Section 8903(1) of title

5, United States Code, is amended by striking ‘‘two levels

of benefits’’ and inserting ‘‘at least 2 levels of benefits

for enrollees under this chapter generally and at least

2 levels of benefits for enrollees under the Postal Service

Health Benefits Program established under section 8903c’’.

(B) T

ABLE OF SECTIONS

.—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. Postal Service Health Benefits Program.’’.

5 USC 8901 prec.

Consultation.

Notifications.

Deadline.

Consultation.

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136 STAT. 1136 PUBLIC LAW 117–108—APR. 6, 2022

PPLICATION TO CERTAIN POSTAL SERVICE ANNU

ITANTS OR FAMILY MEMBERS

.—Section 1862(b)(1)(E) of the

Social Security Act (42 U.S.C. 1395y(b)(1)(E)) is amended

by adding at the end the following:

‘‘(iv) A

PPLICATION TO CERTAIN POSTAL SERVICE

ANNUITANTS OR FAMILY MEMBERS

.—Nothing in this

paragraph shall prohibit a group health plan from

determining an individual’s eligibility to enroll in a

health benefits plan offered under the Postal Service

Health Benefits Program under section 8903c of title

5, United States Code, in accordance with subsection

(e) of such section.’’.

(b) C

OORDINATION

ITH

EDICARE

.—

(1) P

ART B 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:

‘‘(o)(1) In the case of an individual who—

‘‘(A) as of January 1, 2024, is—

‘‘(i) a Postal Service annuitant who is entitled to bene-

fits under part A of title XVIII of the Social Security

Act, but excluding an individual who is eligible to enroll

under such part under section 1818 of such Act or 1818A

of such Act (42 U.S.C. 1395i–2, 1395i–2a); or

‘‘(ii) a member of family (as defined in section 8901(5)

of title 5, United States Code) of a Postal Service annuitant

and is entitled to benefits under part A of title XVIII

of the Social Security Act, but excluding an individual

who is eligible to enroll under such part under section

1818 of such Act or 1818A of such Act (42 U.S.C. 1395i–

2, 1395i–2a); and

‘‘(B) is not enrolled under this part, the individual may

elect to be enrolled under this part during a special enrollment

period during the 6–month period beginning on April 1, 2024.

‘‘(2) In this subsection, the term ‘Postal Service annuitant’

means an annuitant enrolled in a health benefits plan under chapter

89 of title 5, United States Code, whose Government contribution

is required to be paid under section 8906(g)(2) of such title.’’.

(2) T

ECHNICAL AND CONFORMING AMENDMENTS

.—

(A) P

ART A ENROLLMENT

.—Section 1818(c) of the Social

Security Act (42 U.S.C. 1395i–2(c)) is amended, in the

matter preceding paragraph (1), by striking ‘‘(except sub-

section (f) thereof)’’ and inserting ‘‘(except subsections (f)

and (o) thereof)’’.

(B) C

OVERAGE PERIOD UNDER PART B

.—Section 1838

of the Social Security Act (42 U.S.C. 1395q) is amended

by adding at the end the following:

‘‘(i) Notwithstanding subsection (a), in the case of an individual

who enrolls during the special enrollment period pursuant to section

1837(o), the coverage period shall begin on January 1, 2025.’’.

(3) T

REATMENT OF PART B LATE ENROLLMENT PENALTY FOR

INDIVIDUALS ENROLLING DURING SPECIAL ENROLLMENT

PERIOD

.—Section 1839(e) of the Social Security Act (42 U.S.C.

1395r(e)) is amended—

(A) in paragraph (1), by striking ‘‘(as defined in para-

graph (3)(A))’’ and by inserting ‘‘(as defined in paragraph

(3)(A)(i)). The Secretary shall enter into an agreement with

the United States Postal Service under which the United

Contracts.

Effective date.

Definition.

Time period.

Effective date.

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136 STAT. 1137 PUBLIC LAW 117–108—APR. 6, 2022

States Postal Service agrees to pay on a quarterly or other

periodic basis to the Secretary (to be deposited in the

Treasury to the credit of the Federal Supplementary Med-

ical Insurance Trust Fund) an amount equal to the amount

of the part B late enrollment premium increases with

respect to the premiums for eligible individuals (as defined

in paragraph (3)(A)(ii)).’’; and

(B) by amending paragraph (3)(A) to read as follows:

‘‘(A) The term ‘eligible individual’ means an individual

who is enrolled under this part B and who—

‘‘(i) in the case of an agreement entered into under

the first sentence of paragraph (1), is within a class

of individuals specified in such agreement; and

‘‘(ii) in the case of an agreement entered into under

the second sentence of paragraph (1), is so enrolled

under this part pursuant to the special enrollment

period under section 1837(o)’’.

(4) P

ART D EGWP CONTRACTING CONFORMING AMENDMENT

.—

Section 1860D–22(b) of the Social Security Act (42 U.S.C.

1395w–132(b)) is amended by inserting before the period at

the end the following: ‘‘, and shall be applied in a manner

to facilitate the offering of prescription drug benefits under

a Program plan under section 8903c of title 5, United States

Code, as required under subsection (h)(2) of such section,

through employment-based retiree health coverage through—

‘‘(1) a prescription drug plan; or

‘‘(2) contracts between such a Program plan and the PDP

sponsor of such a prescription drug plan.’’.

NFORMATION

HARING AND

ISSEMINATION

EQUIRED FOR

PECIAL

NROLLMENT

ERIOD AND

NFORCEMENT OF

ART

NROLLMENT

EQUIREMENTS

.—

(1) D

EFINITIONS

.—In this subsection, the terms ‘‘Medicare

part A’’, ‘‘Medicare part B’’, ‘‘Office’’, ‘‘Postal Service’’, and

‘‘Postal Service annuitant’’ have the meanings given those terms

in section 8903c of title 5, United States Code, as added by

subsection (a).

(2) I

NFORMATION SHARING BY OPM

.—The Office shall, by

regulation, establish a process for providing such information

as is necessary to the Social Security Administration regarding

Postal Service annuitants (and the family members of such

annuitants) who may be eligible to enroll under Medicare part

B during the special enrollment period described in subsection

(o) of section 1837 of the Social Security Act (42 U.S.C. 1395p),

as added by subsection (b), or who may be subject to the

enrollment requirements described in paragraphs (1) and (2)

of section 8903c(e) of title 5, United States Code, as added

by subsection (a).

(3) I

NFORMATION SHARING BY SSA

.—The Social Security

Administration shall provide to the Office and the Postal

Service information regarding whether a Postal Service annu-

itant, or a family member of such an annuitant, is entitled

to benefits under Medicare part A and enrolled under Medicare

part B, to assist the Office and the Postal Service in deter-

mining—

(A) which Postal Service annuitants, and family mem-

bers of such annuitants, may be eligible to enroll under

Determination.

Regulations.

5 USC 8903c

note.

Applicability.

Definition.

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136 STAT. 1138 PUBLIC LAW 117–108—APR. 6, 2022

Medicare part B during the special enrollment period

described in paragraph (2); and

(B) whether Postal Service annuitants, and family

members of such annuitants, satisfy the enrollment

requirements described in paragraphs (1) and (2) of section

8903c(e) of title 5, United States Code, as added by sub-

section (a).

(d) F

UNDING

.—

(1) CMS

APPROPRIATION

.—In addition to amounts otherwise

available, there is appropriated to the Centers for Medicare

& Medicaid Services—Program Management Account, for fiscal

year 2022, out of any money in the Treasury not otherwise

appropriated, $7,500,000, to remain available until expended,

for the purposes of carrying out this section, including the

amendments made by this section.

(2) SSA

APPROPRIATION

.—In addition to amounts otherwise

available, there is appropriated to the Social Security Adminis-

tration for fiscal year 2022, out of any money in the Treasury

not otherwise appropriated, $16,000,000, to remain available

until expended, for the purposes of carrying out this section

(with the exception of the purposes set forth in subsection

(c)(3)(B)), including the amendments made by this section.

(3) OPM

APPROPRIATION

.—In addition to amounts otherwise

available, there is appropriated to the Office of Personnel

Management for fiscal year 2022, out of any money in the

Treasury not otherwise appropriated, $70,500,000, to remain

available until expended, for the purposes of carrying out this

section, including the amendments made by this section.

(4) F

UNDS CREDITED BY POSTAL SERVICE

.—The United

States Postal Service shall deposit an amount equal to the

sum of the amounts appropriated under paragraphs (1), (2),

and (3) into the Treasury as a miscellaneous receipt from

the Postal Service Fund in fiscal year 2022.

(5) R

EIMBURSEMENT FOR PERIODIC SSA DATA SHARING

.—

(A) I

NTER

AGENCY AGREEMENT

.—The Commissioner of

Social Security shall enter into an agreement with the

Director of the Office under which the Director pays the

Commissioner from the Postal Service administrative

reserve the full costs (including systems and administrative

costs) of providing the information described in subsection

(c)(3) for the purpose set forth in subsection (c)(3)(B).

(B) R

EPORT TO CONGRESS

.—The Director of the Office—

(i) shall report the amount paid under subpara-

graph (A) annually to the Committee on Homeland

Security and Governmental Affairs of the Senate and

the Committee on Oversight and Reform of the House

of Representatives; and

(ii) may satisfy the requirement under clause (i)

by including the amount paid under subparagraph (A)

in any other annual report submitted to Congress.

SEC. 102. USPS FAIRNESS ACT.

(a) S

HORT

ITLE

.—This section may be cited as the ‘‘USPS

Fairness Act’’.

(b) R

ATIONAL

ENEFITS

UNDING AND

CCOUNTING

.—

5 USC 101 note.

USPS Fairness

Act.

Contracts.

5 USC 8903c

note.

Time period.

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136 STAT. 1139 PUBLIC LAW 117–108—APR. 6, 2022

(1) I

N GENERAL

.—Section 8909a of title 5, United States

Code, is amended by striking subsection (d) and inserting the

following:

‘‘(d)(1) Not later than June 30, 2026, and by June 30 of each

succeeding year, the Office shall compute, for the most recently

concluded fiscal year, the amount (if any) that Government contribu-

tions required to be paid from the Fund under section 8906(g)(2)(A)

exceeded the estimated net claims costs under the enrollment of

the individuals described in section 8906(g)(2)(A).

‘‘(2) Not later than September 30 of each year in which the

Office makes a computation under paragraph (1), the United States

Postal Service shall pay into the Fund the amount (if any) of

the excess computed under such paragraph.

‘‘(e) Any computation required under section 3654(b) of title

39 shall be based on—

‘‘(1) the net present value of the future net claims costs

with respect to—

‘‘(A) current annuitants of the United States Postal

Service as of the end of the fiscal year ending on September

30 of the relevant reporting year; and

‘‘(B) current employees of the United States Postal

Service who would, as of September 30 of that year—

‘‘(i) be eligible to become annuitants pursuant to

section 8901(3)(A)(i) or (ii); and

‘‘(ii) if they were retired as of that date, meet

the criteria for coverage of annuitants under section

8905(b);

‘‘(2) economic and actuarial methods and assumptions con-

sistent with the methods and assumptions used in determining

the Postal surplus or supplemental liability under section

8348(h); and

‘‘(3) any other methods and assumptions, including a health

care cost trend rate, that the Director of the Office determines

to be appropriate.

‘‘(f) After consultation with the United States Postal Service,

the Office shall promulgate any regulations the Office determines

necessary under this subsection.

‘‘(g) For purposes of this section, the term ‘estimated net claims

costs’ shall mean the difference between—

‘‘(1) the sum of—

‘‘(A) the estimated costs incurred by a carrier in pro-

viding health services to, paying for health services pro-

vided to, or reimbursing expenses for health services pro-

vided to, annuitants of the United States Postal Service

and any other persons covered under the enrollment of

such annuitants; and

‘‘(B) an amount of indirect expenses reasonably allo-

cable to the provision, payment, or reimbursement

described in subparagraph (A), as determined by the Office;

and

‘‘(2) the amount withheld from the annuity of or paid

by annuitants of the United States Postal Service under section

8906.’’.

(2) C

LERICAL AMENDMENT

.—The heading of section 8909a

of title 5, United States Code, is amended by striking ‘‘Benefit’’

and inserting ‘‘Benefits’’.

PPLICATION

.—

5 USC 8909a

note.

Definition.

Consultation.

Regulations.

Determination.

Payment.

Deadlines.

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136 STAT. 1140 PUBLIC LAW 117–108—APR. 6, 2022

(1) C

ANCELLATION OF PAYMENTS

.—Any payment required

from the Postal Service under section 8909a of title 5, United

States Code, as in effect on the day before the date of enactment

of this Act that remains unpaid as of such date of enactment

is canceled.

(2) E

FFECT OF THIS ACT

.—In any determination relating

to the future liability for retiree health benefits of the United

States Postal Service or the Postal Service Retiree Health Bene-

fits Fund, the Office of Personnel Management shall take into

account the actual and reasonably expected effects of this Act.

(d) U

SE OF

UNDS

ROM

ALE OF

EAL

ROPERTY FOR

ERTAIN

AYMENTS

.—

(1) I

N GENERAL

.—Chapter 29 of title 39, United States

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

‘‘§ 2903. Use of funds from sale of property

‘‘In the event that the Postal Service permanently ceases oper-

ations, any funds derived from the sale of any real property owned

by the Postal Service shall be used to pay any outstanding liability

with respect to the salaries and expenses of any Postal Service

employee. The balance of any remaining funds shall be deposited

into the Postal Service Retiree Health Benefits Fund established

under section 8909a of title 5.’’.

(2) C

LERICAL AMENDMENT

.—The table of sections of such

chapter is amended by adding after the item relating to section

2902 the following new item:

‘‘2903. Use of funds from sale of property.’’.

SEC. 103. NONPOSTAL SERVICES.

(a) N

ONPOSTAL

ERVICES

.—

(1) I

N GENERAL

.—Part IV of title 39, United States Code,

is amended by adding after chapter 36 the following:

‘‘CHAPTER 37—NONPOSTAL SERVICES

‘‘Sec.

‘‘3701. Purpose.

‘‘3702. Definitions.

‘‘3703. Postal Service program for State governments.

‘‘3704. Postal Service program for other Government agencies.

‘‘3705. Transparency and accountability for nonpostal services.

‘‘§ 3701. Purpose

‘‘The purpose of this chapter is to enable the Postal Service

to increase its net revenues through specific nonpostal products

and services that are expressly authorized by this chapter.

‘‘§ 3702. Definitions

‘‘In this chapter—

‘‘(1) the term ‘nonpostal services’ is limited to services

offered by the Postal Service that are expressly authorized

by this chapter and are not postal products or services;

‘‘(2) the term ‘costs attributable’ has the meaning given

such term in section 3631;

‘‘(3) the term ‘year’ means a fiscal year;

‘‘(4) the term ‘local government’ means a county, munici-

pality, city, town, township, local public authority, school dis-

trict, special district, intrastate district, council of governments,

or regional or interstate government entity;

39 USC 3702.

39 USC 3701.

39 USC 3701

prec.

39 USC 2901

prec.

39 USC 2903.

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136 STAT. 1141 PUBLIC LAW 117–108—APR. 6, 2022

‘‘(5) the term ‘State government’ includes the government

of the District of Columbia, the Commonwealth of Puerto Rico,

the United States Virgin Islands, Guam, American Samoa,

the Commonwealth of the Northern Mariana Islands, and any

other territory or possession of the United States;

‘‘(6) the term ‘tribal government’ means the government

of an Indian tribe, as that term is defined in section 4 of

the Indian Self-Determination and Education Assistance Act

(25 U.S.C. 5304); and

‘‘(7) the term ‘United States’, when used in a geographical

sense, means the States, the District of Columbia, the Common-

wealth of Puerto Rico, the United States Virgin Islands, Guam,

American Samoa, the Commonwealth of the Northern Mariana

Islands, and any other territory or possession of the United

States.

‘‘§ 3703. Postal Service program for State governments

‘‘(a) I

ENERAL

.—Notwithstanding any other provision of this

title, the Postal Service may establish a program to enter into

agreements with an agency of any State government, local govern-

ment, or tribal government to provide property or nonpostal services

to the public on behalf of such agencies for non-commercial pur-

poses, but only if—

‘‘(1) such property or nonpostal services—

‘‘(A) provide enhanced value to the public, such as

by lowering the cost or raising the quality of such services

or by making such services more accessible;

‘‘(B) do not interfere with or detract from the value

of postal services, including by—

‘‘(i) harming the cost and efficiency of postal serv-

ices; and

‘‘(ii) unreasonably restricting access to postal retail

service, such as customer waiting time and access to

parking; and

‘‘(2) such agreements provide a net contribution to the

Postal Service, defined as reimbursement that covers at least

100 percent of the costs attributable to all property and non-

postal services provided under each relevant agreement in each

year, except that agreements determined to be substantially

similar by the Postal Service with the concurrence of the Postal

Regulatory Commission shall be reviewed based on their collec-

tive revenue and costs attributable.

‘‘(b) P

UBLIC

OTICE

.—Not more than 90 days after offering

a service under the program, the Postal Service shall make available

to the public on its website—

‘‘(1) the agreement with the agency regarding such service;

and

‘‘(2) a business plan that describes the specific property

or nonpostal service to be provided, the enhanced value to

the public, and terms of reimbursement to the Postal Service.

‘‘(c) A

PPROVAL

EQUIRED

.—The Postal Service may not establish

the program under subsection (a) unless the Governors of the Postal

Service approve such program by a recorded vote that is publicly

disclosed on the Postal Service website with a majority of the

Governors then in office voting for approval.

Public

information.

Web posting.

Business plan.

Deadline.

Web posting.

Review.

Contracts.

39 USC 3703.

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136 STAT. 1142 PUBLIC LAW 117–108—APR. 6, 2022

‘‘(d) C

ONFIDENTIAL

NFORMATION

.—Subsection (b) shall not be

construed as requiring the Postal Service to disclose to the public

any information—

‘‘(1) described in section 410(c); or

‘‘(2) exempt from public disclosure under section 552(b)

of title 5.

‘‘§ 3704. Postal Service program for other Government agen-

cies

‘‘The Postal Service may establish a program to provide prop-

erty and nonpostal services to other Government agencies within

the meaning of section 411, but only if such program provides

a net contribution to the Postal Service, defined as reimbursement

that covers at least 100 percent of the costs attributable for property

and nonpostal services provided by the Postal Service in each year

to such agencies.

‘‘§ 3705. Transparency and accountability for nonpostal serv-

ices

‘‘(a) A

NNUAL

EPORT TO THE

OMMISSION

.—

‘‘(1) I

N GENERAL

.—Not later than 90 days after the last

day of each year, the Postal Service shall submit to the Postal

Regulatory Commission a report that analyzes costs, revenues,

rates, and quality of service for each agreement or substantially

similar set of agreements for the provision of property or non-

postal services under section 3703 or the program as a whole

under section 3704, and any other nonpostal service authorized

under this chapter, using such methodologies as the Commis-

sion may prescribe, and in sufficient detail to demonstrate

compliance with the requirements of this chapter.

‘‘(2) S

UPPORTING MATTER

.—A report submitted under para-

graph (1) shall include any nonpublic annex, the working

papers, and any other supporting matter of the Postal Service

and the Inspector General related to the information submitted

in such report.

‘‘(b) C

ONTENT AND

ORM OF

EPORT

.—

‘‘(1) I

N GENERAL

.—The Postal Regulatory Commission shall,

by regulation, prescribe the content and form of the report

required under subsection (a). In prescribing such regulations,

the Commission shall give due consideration to—

‘‘(A) providing the public with timely, adequate

information to assess compliance;

‘‘(B) avoiding unnecessary or unwarranted administra-

tive effort and expense on the part of the Postal Service;

and

‘‘(C) protecting the confidentiality of information that

is commercially sensitive or is exempt from public disclo-

sure under section 552(b) of title 5.

‘‘(2) R

EVISED REQUIREMENTS

.—The Commission may, on

its own motion or on request of any interested party, initiate

proceedings to improve the quality, accuracy, or completeness

of Postal Service data required by the Commission if—

‘‘(A) the attribution of costs or revenues to property,

products, or services under this chapter has become signifi-

cantly inaccurate or can be significantly improved;

Data.

Regulation.

Analysis.

39 USC 3705.

39 USC 3704.

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136 STAT. 1143 PUBLIC LAW 117–108—APR. 6, 2022

‘‘(B) the quality of service data provided to the Commis-

sion for a report under this chapter has become signifi-

cantly inaccurate or can be significantly improved; or

‘‘(C) such revisions are, in the judgment of the Commis-

sion, otherwise necessitated by the public interest.

‘‘(c) A

UDITS

.—The Inspector General shall regularly audit the

data collection systems and procedures used in collecting informa-

tion and preparing the report required under subsection (a). The

results of any such audit shall be submitted to the Postal Service

and the Postal Regulatory Commission.

‘‘(d) C

ONFIDENTIAL

NFORMATION

.—

‘‘(1) I

N GENERAL

.—If the Postal Service determines that

any document or portion of a document, or other matter, which

it provides to the Postal Regulatory Commission in a nonpublic

annex under this section contains information described in

section 410(c), or exempt from public disclosure under section

552(b) of title 5, the Postal Service shall, at the time of pro-

viding such matter to the Commission, notify the Commission

of its determination, in writing, and describe with particularity

the documents (or portions of documents) or other matter for

which confidentiality is sought and the reasons therefor.

‘‘(2) T

REATMENT

.—Any information or other matter

described in paragraph (1) to which the Commission gains

access under this section shall be subject to paragraphs (2)

and (3) of section 504(g) in the same way as if the Commission

had received notification with respect to such matter under

section 504(g)(1).

‘‘(e) A

NNUAL

OMPLIANCE

ETERMINATION

.—

‘‘(1) O

PPORTUNITY FOR PUBLIC COMMENT

.—Upon receiving

a report required under subsection (a), the Postal Regulatory

Commission shall promptly—

‘‘(A) provide an opportunity for comment on such report

by any interested party; and

‘‘(B) appoint an officer of the Commission to represent

the interests of the general public.

‘‘(2) D

ETERMINATION OF COMPLIANCE OR NONCOMPLIANCE

.—

Not later than 90 days after receiving a report required under

subsection (a), the Postal Regulatory Commission shall make

a written determination as to whether the activities carried

out pursuant to this chapter during the applicable year were

or were not in compliance with the provisions of this chapter.

For purposes of this paragraph, any case in which the require-

ments for coverage of costs attributable have not been met

shall be considered to be a case of noncompliance. If, with

respect to a year, no instance of noncompliance is found to

have occurred, the determination shall be to that effect. Such

determination of noncompliance shall be included with the

annual compliance determination required under section 3653.

‘‘(3) N

ONCOMPLIANCE

.—If a timely written determination

of noncompliance is made under paragraph (2), the Postal Regu-

latory Commission shall take appropriate action. If the require-

ments for coverage of costs attributable specified by this chapter

are not met, the Commission shall, within 60 days after the

determination, prescribe remedial action to restore compliance

as soon as practicable, including the full restoration of revenue

shortfalls during the following year. The Commission may order

the Postal Service to discontinue a nonpostal service under

Appointment.

Deadlines.

Determination.

Notification.

Reports.

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136 STAT. 1144 PUBLIC LAW 117–108—APR. 6, 2022

section 3703 that persistently fails to meet cost coverage

requirements.

‘‘(4) D

ELIBERATE NONCOMPLIANCE

.—In the case of delib-

erate noncompliance by the Postal Service with the require-

ments of this chapter, the Postal Regulatory Commission may

order, based on the nature, circumstances, extent, and serious-

ness of the noncompliance, a fine (in the amount specified

by the Commission in its order) for each incidence of such

noncompliance. All receipts from fines imposed under this sub-

section shall be deposited in the general fund of the Treasury.

‘‘(f) R

EGULATIONS

EQUIRED

.—The Postal Regulatory Commis-

sion shall issue such regulations as are necessary to carry out

this section.

‘‘(g) E

XPERIMENTAL

RODUCT

UTHORITY

.—The Postal Service

may conduct market tests of agreements pursuant to section 3703

and section 3704 of this chapter subject to the same terms and

conditions described in section 3641 of this title. For the purposes

of a market test, the cost coverage requirements in sections 3703

and 3704 of this chapter shall not apply.’’.

(2) C

LERICAL AMENDMENT

.—The table of chapters for part

IV of title 39, United States Code, is amended by adding

after the item relating to chapter 36 the following:

‘‘37. Nonpostal services ..................................................................................... 3701’’.

(b) C

ONFORMING

MENDMENTS

.—

(1) S

ECTION 404

.—Section 404(e) of title 39, United States

Code, is amended in paragraph (2), by inserting after ‘‘sub-

section’’ the following: ‘‘, or any nonpostal products or services

authorized by chapter 37’’.

(2) S

ECTION 411

.—The last sentence of section 411 of title

39, United States Code, is amended by striking ‘‘including

reimbursability’’ and inserting ‘‘including reimbursability

within the limitations of chapter 37’’.

(3) T

REATMENT OF EXISTING NONPOSTAL SERVICES

.—All

individual nonpostal services, provided directly or through

licensing, that are continued pursuant to section 404(e) of title

39, United States Code, shall be considered to be expressly

authorized by chapter 37 of such title (as added by subsection

(a)(1)) and shall be subject to the requirements of section 3705,

subsections (a) through (d).

TITLE II—POSTAL SERVICE

OPERATIONAL REFORMS

SEC. 201. PERFORMANCE TARGETS AND TRANSPARENCY.

(a) I

ENERAL

.—Subchapter VII of chapter 36 of title 39,

United States Code, is amended by inserting after section 3691

the following:

‘‘§ 3692. Performance targets and transparency

‘‘(a) P

ERFORMANCE

ARGETS

.—Each year, to ensure that mail

service for postal customers meets the service standards for market-

dominant products, established under section 3691, the Postal

Service shall—

‘‘(1) not later than 60 days after the beginning of the

fiscal year in which they will apply, establish and provide

Deadline.

39 USC 3692.

39 USC 404 note.

39 USC 3001

prec.

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136 STAT. 1145 PUBLIC LAW 117–108—APR. 6, 2022

to the Postal Regulatory Commission reasonable targets for

performance for each product; and

‘‘(2) provide the previous fiscal year’s performance targets

in its Annual Compliance Report to the Postal Regulatory

Commission for evaluation of compliance for each product.

‘‘(b) P

OSTAL

EGULATORY

OMMISSION

ETERMINATION OF

TAIN

ERFORMANCE

NFORMATION

.—Not later than 90 days after

first receiving the performance targets under subsection (a)(1), the

Postal Regulatory Commission shall provide to the Postal Service—

‘‘(1) requirements for the Postal Service to publish nation-

wide, regional, and local delivery area performance information

in accordance with subsection (c)(2) that—

‘‘(A) are consistent with the organizational structure

of the delivery network of the Postal Service (including

at the District and Area organizational levels, or the func-

tional equivalents, and, to the extent practicable, at the

U.S. ZIP Code Area level);

‘‘(B) reflect the most granular geographic level of

performance information appropriate for the Postal Service

to publish; and

‘‘(C) includes time period segments for the published

geographic levels to satisfy the publishing requirements

of subparagraphs (A) and (C) of subsection (c)(2); and

‘‘(2) recommendations for any modifications to the Postal

Service’s measurement systems necessary to measure and pub-

lish the performance information under subsection (c)(2) that

the Postal Regulatory Commission deems relevant.

‘‘(c) P

UBLIC

ERFORMANCE

ASHBOARD

.—

‘‘(1) I

N GENERAL

.—The Postal Service shall develop and

maintain a publicly available Website with an interactive web-

tool that provides performance information for market-domi-

nant products that is updated on a weekly basis.

‘‘(2) P

ERFORMANCE INFORMATION

.—The performance

information provided for a market-dominant product on the

Website shall include—

‘‘(A) the type of market-dominant product;

‘‘(B) performance information for different geographic

areas, consistent with subsection (b);

‘‘(C) performance information for different time periods,

including annual, quarterly, monthly, and weekly seg-

ments;

‘‘(D) comparisons of performance information for

market-dominant products to performance information for

previous time periods to facilitate identification of perform-

ance trends; and

‘‘(E) the performance targets then in effect, and the

performance targets for the previous fiscal year, as estab-

lished under subsection (a)(1).

‘‘(3) C

OMPREHENSIBILITY

.—The Website shall include plain

language descriptions of the elements required under paragraph

(2) and information on the collection process, measurement

methodology, completeness, accuracy, and validity of the

performance information provided on the Website.

‘‘(4) A

DDRESS SEARCH FUNCTIONALITY

.—The Website shall

include functionality to enable a user to search for performance

information by street address, ZIP Code, or post office box.

Website.

Recommenda-

tions.

Time period.

Requirements.

Publication.

Deadline.

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136 STAT. 1146 PUBLIC LAW 117–108—APR. 6, 2022

‘‘(5) F

ORMAT

.—The Postal Service shall make the perform-

ance information provided on the Website available—

‘‘(A) in a manner that—

‘‘(i) presents the information required under para-

graph (2) on an interactive dashboard;

‘‘(ii) is searchable and may be sorted and filtered

by the elements described in paragraph (2); and

‘‘(iii) to the extent practicable, enables any person

or entity to download in bulk—

‘‘(I) such performance information; and

‘‘(II) the results of a search by the elements

described in paragraph (2);

‘‘(B) under an ‘open license’ which has the meaning

given that term in section 3502 of title 44; and

‘‘(C) as an ‘open Government data asset’ and in a

‘machine-readable’ format which have the meaning given

those terms in section 3502 of title 44.

‘‘(6) C

ONSULTATION

.—The Postal Service shall regularly

consult with the Postal Regulatory Commission on appropriate

features and information to be included on the Website.

‘‘(7) P

UBLIC INPUT

.—The Postal Service shall—

‘‘(A) solicit public input on the design and implementa-

tion of the Website; and

‘‘(B) maintain a public feedback tool to ensure each

feature of, and the information on, the Website is usable

and understandable.

‘‘(8) D

EADLINE

.—The Postal Service shall implement and

make available to the public (and make any subsequent changes

in accordance with subsection (b)) the Website not later than

60 days from the date on which the Postal Service receives

the requirements and recommendations from the Postal Regu-

latory Commission under subsection (b), and shall continuously

update such information on the Website as required by sub-

section (b).

‘‘(9) A

VAILABILITY

.—A link and plain language description

of the Website shall be made available on any webpage where

performance targets and measurements established under sub-

section (a)(1) are made available to the public.

‘‘(10) R

EPORTING

.—The Postal Service, the Postmaster Gen-

eral, or the Board, as applicable, shall reference the dashboard

described in paragraph (5)(A)(i) in the Annual Performance

Plan under section 2803, the Annual Performance Report under

section 2804, and the Annual Report under section 2402.

‘‘(11) D

EFINITIONS

.—In this subsection—

‘‘(A) P

ERFORMANCE INFORMATION

.—The term ‘perform-

ance information’ means the objective external performance

measurements established under section 3691(b)(1)(D).

‘‘(B) W

EBSITE

.—The term ‘Website’ means the website

described in paragraph (1).’’.

(b) T

ECHNICAL AND

ONFORMING

MENDMENT

.—The table of

sections for chapter 36 of title 39, United States Code, is amended

by inserting after the item relating to section 3691 the following:

‘‘3692. Performance targets and transparency.’’.

SEC. 202. INTEGRATED DELIVERY NETWORK.

(a) I

ENERAL

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

is amended by inserting before ‘‘The Postal Service’’ the following:

39 USC 3621

prec.

Public

information.

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136 STAT. 1147 PUBLIC LAW 117–108—APR. 6, 2022

‘‘The Postal Service shall maintain an integrated network for the

delivery of market-dominant and competitive products (as defined

in chapter 36 of this title). Delivery shall occur at least six days

a week, except during weeks that include a Federal holiday, in

emergency situations, such as natural disasters, or in geographic

areas where the Postal Service has established a policy of delivering

mail fewer than six days a week as of the date of enactment

of the Postal Service Reform Act of 2022.’’.

(b) R

ULE OF

ONSTRUCTION

.—Nothing in subsection (a) or the

amendment made by such subsection is intended to alter or amend

the requirements of chapters 20 or 36 of title 39, United States

Code, and related implementing regulations, including provisions

relating to costing, accounting, or rates.

SEC. 203. REVIEW OF POSTAL SERVICE COST ATTRIBUTION GUIDE-

LINES.

Not later than the date that is one year after the date of

the enactment of this Act, the Postal Regulatory Commission shall

initiate a review of the regulations issued pursuant to sections

3633(a) and 3652(a)(1) of title 39, United States Code, to determine

whether revisions are appropriate to ensure that all direct and

indirect costs attributable to competitive and market-dominant

products are properly attributed to those products, including by

considering the underlying methodologies in determining cost

attribution and considering options to revise such methodologies.

If the Commission determines, after notice and opportunity for

public comment, that revisions are appropriate, the Commission

shall make modifications or adopt alternative methodologies as

necessary.

SEC. 204. RURAL NEWSPAPER SUSTAINABILITY.

Section 3626(h) of title 39, United States Code, is amended

by striking ‘‘10 percent’’ and inserting ‘‘50 percent’’.

SEC. 205. FUNDING OF POSTAL REGULATORY COMMISSION.

(a) I

ENERAL

.—Subsection (d) of section 504 of title 39,

United States Code, is amended to read as follows:

‘‘(d)(1) Not later than September 1 of each fiscal year (beginning

with fiscal year 2022), the Postal Regulatory Commission shall

submit to the Postal Service a budget of the Commission’s expenses,

including expenses for facilities, supplies, compensation, and

employee benefits, for the following fiscal year. Any such budget

shall be deemed approved as submitted if the Governors fail to

adjust the budget in accordance with paragraph (2).

‘‘(2)(A) Not later than 30 days after receiving a budget under

paragraph (1), the Governors holding office, by unanimous written

decision, may adjust the total amount of funding requested in

such budget. Nothing in this subparagraph may be construed to

authorize the Governors to adjust any activity proposed to be funded

by the budget.

‘‘(B) If the Governors adjust the budget under subparagraph

(A), the Postal Regulatory Commission shall adjust the suballoca-

tions within such budget to reflect the total adjustment made by

the Governors. The budget shall be deemed approved on the date

the Commission makes any such adjustments. The Commission

may make further adjustments to the suballocations within such

budget as necessary.

Approval date.

Deadlines.

Budget.

Notice.

Public comment.

Deadline.

Determination.

39 USC 3633

note.

39 USC 101 note.

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136 STAT. 1148 PUBLIC LAW 117–108—APR. 6, 2022

‘‘(3) Expenses incurred under any budget approved under this

subsection shall be paid out of the Postal Service Fund established

under section 2003.’’.

(b) C

ONFORMING

MENDMENTS

.—Title 39, United States Code,

is amended—

(1) in section 2003(e), by striking ‘‘(B) all expenses of the

Postal Regulatory Commission, subject to the availability of

amounts appropriated under section 504(d);’’ and inserting ‘‘(B)

all expenses of the Postal Regulatory Commission, pursuant

to section 504(d);’’; and

(2) in section 2009—

(A) by striking ‘‘, (2)’’ and inserting ‘‘, and (2)’’; and

(B) by striking ‘‘, and (3) the Postal Regulatory

Commission requests to be appropriated, out of the Postal

Service Fund, under section 504(d) of this title’’.

SEC. 206. FLATS OPERATIONS STUDY AND REFORM.

(a) F

LATS

PERATIONS

TUDY

.—

(1) I

N GENERAL

.—The Postal Regulatory Commission, in

consultation with the Inspector General of the United States

Postal Service, shall conduct a study to—

(A) comprehensively identify the causes of inefficiencies

in the collection, sorting, transportation, and delivery of

Flats; and

(B) quantify the effects of the volume trends, invest-

ments decisions, excess capacity, and operational inefficien-

cies of the Postal Service on the direct and indirect costs

of the Postal Service that are attributable to Flats.

(2) P

OSTAL SERVICE ASSISTANCE

.—For the purposes of car-

rying out the study under paragraph (1), the Postal Service

shall, upon request by the Postal Regulatory Commission, con-

sult with the Postal Regulatory Commission and provide—

(A) access to Postal Service facilities to personnel of

the Postal Regulatory Commission; and

(B) information and records necessary to conduct such

study.

(3) R

EPORT

.—Not later than one year after the date of

the enactment of this Act, the Postal Regulatory Commission

shall submit to Congress and the Postmaster General a report

on the findings of the study conducted under paragraph (1).

(4) F

LATS DEFINED

.—In this subsection, the term ‘‘Flats’’

means products that meet the physical standards described

in the Domestic Mail Manual (as in effect on the date of

the enactment of this Act) for Flats mail for any class of

mail.

(b) F

LATS

PERATIONS

EFORM

.—

(1) I

N GENERAL

.—Not later than six months after the date

on which the Postal Regulatory Commission submits the report

described in subsection (a)(3), the Postal Service shall—

(A) develop and implement a plan to remedy each

inefficiency identified in the study conducted under sub-

section (a)(1) to the extent practicable; and

(B) if the Postal Service determines that remedying

any such inefficiency is not practicable, provide to Congress

and the Postal Regulatory Commission an explanation why

remedying such inefficiency is not practicable, including

Determination.

Plan.

Deadline.

Consultation.

39 USC 501 note.

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136 STAT. 1149 PUBLIC LAW 117–108—APR. 6, 2022

whether it may become practicable to remedy such ineffi-

ciency at a later time.

(2) I

MPLEMENTATION REQUIREMENTS

.—Prior to imple-

menting the plan described in paragraph (1)—

(A) the Postal Regulatory Commission must approve

the plan; and

(B) the Postal Service shall provide an adequate oppor-

tunity for public comment on the plan.

(3) C

OMPLETION NOTICE

.—On the date on which the plan

described in paragraph (1) is fully implemented, as determined

by the Postmaster General, the Postmaster General shall

submit to Congress and the Postal Regulatory Commission

a written notice of such implementation.

UBSEQUENT

ATE

DJUSTMENTS

.—During the five-year

period beginning on the date on which the Postal Regulatory

Commission submits a report under subsection (a)(3), the Postal

Service, when making any adjustment to the rate of a market-

dominant product (as defined in section 102 of title 39, United

States Code), shall consider the findings of such report and, after

the plan described in subsection (b)(1) is implemented, the plan’s

efficacy in remedying the inefficiencies identified in the study con-

ducted under subsection (a)(1).

SEC. 207. REPORTING REQUIREMENTS.

(a) I

ENERAL

.—Not later than 240 days after the date of

the enactment of this Act, and every six months thereafter, the

Postmaster General shall submit to the President, the Postal Regu-

latory Commission, the Committee on Homeland Security and

Governmental Affairs of the Senate, and the Committee on Over-

sight and Reform of the House of Representatives a report on

the operations and financial condition of the Postal Service during

the six-month period ending 60 days before the date on which

the Postmaster General submits such report.

(b) C

ONTENTS

.—Each report submitted under this section shall

include updates, details of changes from previous standards and

requirements, and assessments of progress being made on the oper-

ations and financial condition of the Postal Service, including—

(1) the actual mail and package volume growth relative

to any mail or package volume growth projections previously

made or relied upon by the Postal Service, including a discus-

sion of the reasons for the differences in projections and the

associated adjustments being made;

(2) the effect of pricing changes on product volume for

market-dominant and competitive products, and associated rev-

enue effects on financial projections, including a discussion

of the reasons behind the differences in projections and associ-

ated adjustments being made;

(3) customer use of network distribution centers and proc-

essing and distribution centers;

(4) the status of the USPS Connect program and revenue

effects of the program on the financial projections;

(5) the use of Priority Mail, Priority Mail Express, First-

Class Package Service, and Parcel Select services (as such

terms are defined in the Mail Classification Schedule as in

effect on the date of the enactment of this Act) among customers

and associated revenue effects;

Updates.

Assessments.

Time periods.

Time period.

Effective date.

Public comment.

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136 STAT. 1150 PUBLIC LAW 117–108—APR. 6, 2022

(6) the use of USPS Connect Returns service among cus-

tomers, and associated costs and revenue effects;

(7) the use of USPS E-Commerce Marketplace among cus-

tomers, and associated costs and revenue effects;

(8) updates on the reliability, efficiency, and cost-effective-

ness of the transportation network, including the manner in

which ground transportation is utilized over air transportation

for types of market-dominant products and competitive prod-

ucts;

(9) a review of efforts to enhance employee training, safety,

and wellbeing, including associated effects on employee recruit-

ment, satisfaction, and retention;

(10) a review of efforts being made to improve employee

allocation, including changes of non-career employees to career

status, and any associated impacts to operational expenses

and processing, transportation, and delivery efficiency;

(11) the rate of planned investment into Postal Service

processing, transportation, and delivery equipment and infra-

structure for market-dominant and competitive products, and

a review of any associated effects on operational expenses and

efficiency;

(12) changes to network distribution centers and the expan-

sion of regional distribution centers, including costs associated

with the changes and any realized reduction in operational

expenses or improved resource efficiencies;

(13) a review of the ability of the Postal Service to meet

performance targets established under section 3692(a)(1) of title

39, United States Code;

(14) a discussion of the progress of the Postal Service

in achieving any new, self-funded investments, including the

amounts realized and expended to date, and a discussion of

the reasons behind any disparities in the assumptions regarding

the expected progress of the Postal Service getting new, self-

funded investments to accommodate changes; and

(15) any other information the Postal Service determines

relevant, such as barriers or unanticipated events, in order

to help the Postal Regulatory Commission, Congress, the Presi-

dent, and the American public evaluate the success or difficul-

ties faced by the Postal Service in implementing the reform

plan.

ONFIDENTIAL

NFORMATION

.—

(1) I

N GENERAL

.—The report required under this subsection

shall be submitted in a form that excludes any proprietary

or confidential information and trade secrets.

(2) N

OTIFICATION

.—If the Postal Service determines that

any information must be excluded under paragraph (1), the

Postal Service shall, at the time of submitting the report,

notify the President, the Committee on Oversight and Reform

of the House of Representatives, the Committee on Homeland

Security and Governmental Affairs of the Senate, and the Postal

Regulatory Commission in writing of its determination and

describe in detail the information for which confidentiality is

sought and the reasons therefor.

(3) A

NNEXES

.—The Postal Service shall submit to the per-

sons and entities notified under paragraph (2) any information

excluded under paragraph (1) in an annex that shall be treated

as confidential in accordance with paragraph (4).

Determination.

Review.

Updates.

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136 STAT. 1151 PUBLIC LAW 117–108—APR. 6, 2022

(4) T

REATMENT

.—No person may, with respect to any

information which such person receives under paragraph (4)—

(A) use such information for purposes other than the

purposes for which it is supplied; or

(B) permit any person or entity other than a person

or entity notified under paragraph (2), or the staff thereof,

to have access to any such information.

(d) T

ERMINATION

.—This section shall terminate on the date

that is five years after the date on which the first report required

by this section is submitted.

SEC. 208. POSTAL SERVICE TRANSPORTATION SELECTION POLICY

REVISIONS.

Section 101(f) of title 39, United States Code, is amended—

(1) by striking ‘‘prompt and economical’’ and inserting

‘‘prompt, economical, consistent, and reliable’’;

(2) by inserting after ‘‘all mail’’ the following: ‘‘in a manner

that increases operational efficiency and reduces complexity’’;

(3) by inserting ‘‘cost-effective’’ after ‘‘to achieve’’; and

(4) by inserting ‘‘also’’ after ‘‘Nation shall’’.

SEC. 209. USPS INSPECTOR GENERAL OVERSIGHT OF POSTAL REGU-

LATORY COMMISSION.

(a) I

ENERAL

.—Section 8G of the Inspector General Act of

1978 (5 U.S.C. App.) is amended—

(1) in subsection (a)(2), by striking ‘‘the Postal Regulatory

Commission,’’; and

(2) in subsection (f)—

(A) in paragraph (2)—

(i) by striking ‘‘(2) In carrying’’ and inserting

‘‘(2)(A) In carrying’’; and

(ii) by adding at the end the following:

‘‘(B) In carrying out the duties and responsibilities specified

in this Act, the Inspector General of the United States Postal

Service shall function as the Inspector General for the Postal

Regulatory Commission, and shall have equal responsibility

over the United States Postal Service and the Postal Regulatory

Commission. The Commission shall comply with the Inspector

General’s oversight as if the Commission were a designated

Federal entity under subsection (a)(2) and as if the Inspector

General were the inspector general of the Commission. The

Governors of the Postal Service shall not direct oversight activi-

ties for the Postal Regulatory Commission.’’;

(B) in paragraph (3)(A)(i), by inserting ‘‘pertaining to

the United States Postal Service’’ after ‘‘subpoenas,’’;

Regulatory Commission’’ after ‘‘United States Postal

Service’’;

(D) in paragraph (3)(C), by inserting ‘‘or the Postal

Regulatory Commission’’ after ‘‘Governors’’;

(E) by redesignating paragraphs (4), (5), and (6) as

paragraphs (5), (6), and (7), respectively; and

(F) by inserting after paragraph (3) the following:

‘‘(4) For activities pertaining to the Postal Regulatory

Commission, sections 4, 5, 6 (other than subsection (g) thereof),

and 7 of this Act shall be applied by substituting the term

‘head of the Postal Regulatory Commission’ for ‘head of the

establishment’.’’.

Applicability.

Compliance.

5 USC app. 8G.

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136 STAT. 1152 PUBLIC LAW 117–108—APR. 6, 2022

(b) A

PPOINTMENT AND

EMOVAL

.—Section 202 of title 39, United

States Code, is amended—

(1) in subsection (e)(1), by striking ‘‘The Governors shall

appoint’’ and inserting ‘‘The Governors and the members of

the Postal Regulatory Commission shall appoint, by a favorable

vote of a majority of the Governors in office and of a majority

of the members of the Commission in office,’’; and

(2) in subsection (e)(3), by inserting ‘‘and 3 members of

the Postal Regulatory Commission’’ after ‘‘at least 7 Governors’’.

AVINGS

ROVISION

.—

(1) P

ERSONNEL

DOCUMENTS

ASSETS

.—All personnel, docu-

ments, assets, unexpended balances of appropriations, and

obligations of the Inspector General for the Postal Regulatory

Commission shall transfer to the Inspector General of the Postal

Service on the effective date of this section.

(2) L

EGAL DOCUMENTS

.—Any order, determination, rule,

regulation, permit, grant, loan, contract, agreement, certificate,

license, or privilege that has been issued, made, granted, or

allowed to become effective by the Inspector General of the

Postal Regulatory Commission that is in effect on the effective

date of this section shall continue in effect according to their

terms until modified, terminated, superseded, set aside, or

revoked in accordance with law.

(3) P

ROCEEDINGS

.—This section and the amendments made

by this section shall not affect any proceeding pending on

the effective date of this section before the Inspector General

of the Postal Regulatory Commission, but such proceeding shall

be continued by the Inspector General of the Postal Service,

at the discretion of that Inspector General. Nothing in this

paragraph shall be construed to prohibit the discontinuance

or modification of any such proceeding under the same terms

and conditions and to the same extent that the proceeding

could have been discontinued or modified if this section and

those amendments had not been enacted.

(4) S

UITS

.—This section and the amendments made by

this section shall not affect any suit commenced before the

effective date of this section, and in any such suit, proceeding

shall be had, appeals taken, and judgments rendered in the

same manner and with the same effect as if this section or

such amendments had not been enacted.

(5) R

EFERENCES

.—Any reference in any other Federal law,

Executive order, rule, regulation, or delegation of authority,

or any document relating to the Inspector General of the Postal

Regulatory Commission shall be deemed to refer to the

Inspector General of the United States Postal Service.

(d) T

ECHNICAL AND

ONFORMING

MENDMENT

.—Section 504

of title 39, United States Code, is amended by striking subsection

(h).

(e) E

FFECTIVE

ATE

.—This section and the amendments made

by this section shall take effect on the date that is 180 days

after the date of enactment of this Act.

5 USC app. 8G

note.

5 USC app. 8G

note.

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136 STAT. 1153 PUBLIC LAW 117–108—APR. 6, 2022

LEGISLATIVE HISTORY—H.R. 3076:

HOUSE REPORTS: No. 117–89, Pts. 1 and 2 (both from Comm. on Oversight and

Reform).

CONGRESSIONAL RECORD, Vol. 168 (2022):

Feb. 8, considered and passed House.

Mar. 1–3, 7, 8, considered and passed Senate.

DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2022):

Apr. 6, Presidential remarks.

TITLE III—SEVERABILITY

SEC. 301. SEVERABILITY.

If any provision of this Act or any amendment made by this

Act, or the application of a provision of this Act or an amendment

made by this Act to any person or circumstance, is held to be

unconstitutional, the remainder of this Act, and the application

of the provisions to any person or circumstance, shall not be affected

by the holding.

Approved April 6, 2022.

39 USC 101 note.

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