S 1010

112th CONGRESS
1st Session

S. 1010

To amend the provisions of title 5, United States Code, relating to the methodology for calculating the amount of any Postal surplus or supplemental liability under the Civil Service Retirement System, and for other purposes.

IN THE SENATE OF THE UNITED STATES

May 17, 2011

Mr. CARPER introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs


A BILL

To amend the provisions of title 5, United States Code, relating to the methodology for calculating the amount of any Postal surplus or supplemental liability under the Civil Service Retirement System, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the `Postal Operations Sustainment and Transformation Act of 2011'.

TITLE I--ANNUITY AND RETIREE HEALTH OBLIGATIONS

SEC. 101. TRANSFER OF AMOUNTS FROM THE CIVIL SERVICE RETIREMENT AND DISABILITY FUND.

    Section 8348(h) of title 5, United States Code, is amended--

      (1) in paragraph (2), by striking subparagraphs (B) and (C) and inserting the following:

        `(B)(i) The Office shall--

          `(I) redetermine the Postal surplus or supplemental liability as of the close of each of fiscal years 2010 through 2043, as if this subsection (as amended by the Postal Operations Sustainment and Transformation Act of 2011) had been in effect since July 1, 1971; and

          `(II) report the results of the redetermination for each such fiscal year, including appropriate supporting analyses and documentation, to the United States Postal Service on or before June 30 of the subsequent fiscal year.

        `(ii) If the result of a redetermination under clause (i) for a fiscal year is a surplus, that amount shall remain in the Fund until distribution is authorized under subparagraph (C).

        `(iii) Beginning June 15, 2017, if the result of a redetermination under clause (i) is a supplemental liability, the Office shall establish an amortization schedule, including a series of annual installments commencing on September 30 of the subsequent fiscal year, that provides for the liquidation of such liability by September 30, 2043.

        `(C)(i) If the result of a redetermination under subparagraph (B) for fiscal year 2010, 2011, 2012, 2013, 2014, 2015, or 2016 is a surplus, that amount, or any part of that amount, may be transferred to the Postal Service Retiree Health Benefits Fund.

        `(ii) If the result of a redetermination under subparagraph (B) for any of fiscal years 2017 through 2043 is a surplus, that amount, or any part of that amount, may be transferred to--

          `(I) the Postal Service Retiree Health Benefits Fund to pay any liability to the United States Postal Service Retiree Health Benefits Fund; or

          `(II) if all liability to the Postal Service Retiree Health Benefits Fund is paid--

            `(aa) the Employees' Compensation Fund established under section 8147; or

            `(bb) the United States Postal Service for the repayment of any obligation issued under section 2005 of title 39.

        `(iii) Any transfer under clause (i) shall be--

          `(I) made at the discretion of the Board of Governors of the Postal Service in the amount determined by the Board of Governors, except the amount may not exceed the amount under section 8909a(d)(3)(A) remaining to be paid for the applicable fiscal year; and

          `(II) credited to the United States Postal Service for payment of the amount required under section 8909a(d)(3)(A) for the applicable fiscal year.

        `(iv) Any transfer under clause (ii) shall be--

          `(I) made at the discretion of the Board of Governors of the Postal Service in the amount determined by the Board of Governors;

          `(II) if transferred to the Postal Service Retiree Health Benefits Fund, credited to the United States Postal Service for payment of any liability of the United States Postal Service to the Postal Service Retiree Health Benefits Fund for the applicable fiscal year; and

          `(III) if transferred to the Employees' Compensation Fund established under section 8147, credited to the United States Postal Service for payment of any liability of the United States Postal Service under chapter 81 for the applicable fiscal year.

        `(v) The Board of Governors shall--

          `(I) provide written notice to the Office of any amount to be transferred under this clause, not later than September 15 of the fiscal year following the fiscal year for which the Office determines there is a Postal surplus; and

          `(II) take all actions of the Board under this clause by a majority vote.

        `(vi) The Office shall transfer any amount determined by the Board of Governors to the credit of the United States Postal Service in accordance with this clause.'; and

      (2) by adding at the end the following:

      `(4) To the extent that a determination under paragraph (1)(A) of the benefits attributable to civilian employment with the United States Postal Service is based on the first sentence of section 8339(a), such determination shall be made in accordance with such sentence and otherwise applicable provisions of law, subject to the following:

        `(A) The `average pay' used in the case of any individual shall be a single amount, determined in accordance with section 8331(4), taking into account the rates of basic pay in effect for such individual during the periods of creditable service performed by such individual. Nothing in this subsection shall be construed to permit or require--

          `(i) one determination of average pay with respect to service performed with the United States Postal Service; and

          `(ii) a separate determination of average pay with respect to service performed with its predecessor entity in function, or any other entity.

        `(B) With respect to an annuity calculated under section 8339(a), the Office shall calculate the portion of such annuity attributable to civilian employment with the United States Postal Service which follows any other period of creditable service under section 8332 (whether with an entity referred to under subparagraph (A)(ii) or otherwise) by--

          `(i) determining the period of creditable service not attributable to civilian employment with the United States Postal Service;

          `(ii) adding the applicable percentages under section 8339(a) to determine the overall percentage earned under section 8339(a) for the period of creditable service determined under clause (i);

          `(iii) multiplying the overall percentage calculated under clause (ii) by the average pay (calculated in accordance with subparagraph (A)) to determine the portion of the annuity that is not attributable to civilian employment with the United States Postal Service; and

          `(iv) subtracting the portion of the annuity calculated under clause (iii) from the total annuity to determine the portion of the annuity attributable to civilian employment with the United States Postal Service.

        `(C) The calculation under subparagraph (B) shall apply to all benefit payments that have been issued, or which may be issued on or after the date of enactment of the Postal Operations Sustainment and Transformation Act of 2011, that are allocable to the portion of the annuity attributable to civilian employment with the United States Postal Service under subparagraph (B), including benefits payable to individuals who, at the time of the calculation, are retired or employees eligible for benefits under the Civil Service Retirement System.

        `(D) The assets allocable to the Postal Fund balance under paragraph (1)(B)(ii) shall be adjusted to reflect the allocation required under subparagraph (C) for the portion of benefits that are not attributable to civilian employment with the United States Postal Service and that were paid before the date of enactment of the Postal Operations Sustainment and Transformation Act of 2011.

        `(E)(i) Except as provided in clause (ii), the requirements of subparagraphs (B), (C), and (D) shall not require the Office to revise--

          `(I) any valuation or other report issued before the date of enactment of the Postal Operations Sustainment and Transformation Act of 2011; or

          `(II) any valuation or report that is issued before the date that is 90 days after the date of enactment of the Postal Operations Sustainment and Transformation Act of 2011.

        `(ii)(I) The first actuarial valuation issued after the date that is 90 days after the date of enactment of the Postal Operations Sustainment and Transformation Act of 2011 shall reflect the retroactive allocation of all past service liabilities as specified in this paragraph and corresponding adjustment of assets.

        `(II) Each actuarial valuation thereafter shall reflect the subsequent changes in liabilities and assets.

        `(F) If the Office lacks complete data necessary to make a determination required under this subsection, the Office shall use its best estimate and shall provide the United States Postal Service with a written report describing the method and any assumptions used in making the determination.

        `(G)(i) Not later than 10 days after making any determination under this subsection, the Office shall notify the United States Postal Service of the determination.

        `(ii) Not later than 30 days after the date on which the United States Postal Service receives the notice under clause (i), the United States Postal Service may request from the Office all supporting documentation reasonable and necessary to review the determination.

        `(iii) The Office shall respond fully to a request under clause (ii) not later than 30 days after the date on which the Office receives the request.

        `(iv) Not later than 90 days after the date on which the United States Postal Service receives the information requested under clause (ii), the United States Postal Service may appeal the determination of the Office to the Board of Actuaries of the Civil Service Retirement System. The Board of Actuaries shall review the computations of the Office and may make any adjustment with respect to any such amount which the Board determines appropriate. A determination by the Board of Actuaries under this paragraph shall be final.'.

SEC. 102. TRANSFER OF AMOUNTS FROM THE FEDERAL EMPLOYEES RETIREMENT SYSTEM.

    (a) Postal Service Surplus or Liability Based on Federal Employees Retirement System Contributions- Section 8461 of title 5, United States Code, is amended by adding at the end the following:

    `(o)(1) In this subsection, the term `Postal surplus or supplemental liability' means the estimated difference, as determined by the Office, between--

    `(A) the actuarial present value of all future benefits payable under this chapter from the Fund to current or former employees of the United States Postal Service and attributable to civilian employment with the United States Postal Service; and

    `(B) the sum of--

      `(i) the actuarial present value of deductions to be withheld from the future basic pay of employees of the United States Postal Service currently subject to this chapter under section 8422;

      `(ii) the actuarial present value of the future contributions to be made with respect to employees of the United States Postal Service currently subject to this chapter under section 8423(a);

      `(iii) that portion of the Fund, as of the date the Postal surplus or supplemental liability is determined, attributable to payments to the System by the United States Postal Service and its employees, minus benefit payments attributable to civilian employment with the United States Postal Service, plus the earnings on such amounts while in the System; and

      `(iv) any other appropriate amount, as determined by the Office in accordance with generally accepted actuarial practices and principles.

    `(2)(A) The Office shall determine the Postal surplus or supplemental liability as of the close of the fiscal year ending September 30, 2010, and for each fiscal year thereafter.

    `(B)(i) If the result of a determination under subparagraph (A) for a fiscal year is a surplus, the amount of the surplus shall remain in the System until distribution is authorized under this subparagraph.

    `(ii) If the result of a determination under subparagraph (A) for fiscal year 2010, 2011, 2012, 2013, 2014, 2015, 2016, or 2017 is a surplus, that amount, or any part of that amount, may be transferred to the Postal Service Retiree Health Benefits Fund.

    `(iii) If the result of a determination under subparagraph (A) for fiscal year 2017, or any fiscal year thereafter, is a surplus, that amount, or any part of that amount, may be transferred to--

      `(I) the Postal Service Retiree Health Benefits Fund to pay any liability to the Postal Service Retiree Health Benefits Fund; or

      `(II) if all liability to the Postal Service Retiree Health Benefits Fund is paid--

        `(aa) the Employees' Compensation Fund established under section 8147; or

        `(bb) the United States Postal Service for the repayment of any obligation issued under section 2005 of title 39.

    `(iv) Any transfer under clause (ii) shall be--

      `(I) made at the discretion of the Board of Governors of the Postal Service in the amount determined by the Board of Governors, except the amount may not exceed the amount under section 8909a(d)(3)(A) remaining to be paid for the applicable fiscal year; and

      `(II) credited to the Postal Service for payment of the amount required under section 8909a(d)(3)(A) for the applicable fiscal year.

    `(v) Any transfer under clause (iii) shall be--

      `(I) made at the discretion of the Board of Governors of the Postal Service in the amount determined by the Board of Governors;

      `(II) if transferred to the Postal Service Retiree Health Benefits Fund, credited to the Postal Service for payment of any liability of the Postal Service to the Postal Service Retiree Health Benefits Fund for the applicable fiscal year; and

      `(III) if transferred to the Employees' Compensation Fund established under section 8147, credited to the Postal Service for payment of any liability of the Postal Service under chapter 81 for the applicable fiscal year.

    `(vi) The Board of Governors shall--

      `(I) provide written notice to the Office of any amount to be transferred under this subparagraph not later than September 15 of the fiscal year following the fiscal year for which the Office determines there is a Postal surplus; and

      `(II) take all actions of the Board under this subparagraph by a majority vote.

    `(vii) The Office shall transfer any amount determined by the Board of Governors to the credit of the Postal Service in accordance with this subparagraph.

    `(C)(i) Beginning June 15, 2017, if the result of a determination under subparagraph (A) is a supplemental liability, the Office shall establish an amortization schedule, including a series of annual installments commencing on September 30 of the subsequent fiscal year, which provides for the liquidation of such liability over 30 years.

    `(ii) An amortization schedule under this subparagraph shall be established in accordance with generally accepted actuarial practices and principles, with interest computed at the rate used in the then most recent valuation of the System.

    `(iii) The United States Postal Service shall pay each amount required under an amortization schedule under this subparagraph to the Office, not later than the date scheduled by the Office.

    `(3) Notwithstanding any other provision of law, the amount of any payment under any other subsection of this section that is based upon the amount of the supplemental liability shall be computed disregarding the portion of the supplemental liability that the Office determines will be liquidated by payments under this subsection.

    `(4)(A) Not later than 10 days after making a determination under paragraph (2), the Office shall notify the United States Postal Service of the determination.

    `(B) Not later than 30 days after the date on which the United States Postal Service receives the notice under subparagraph (A), the United States Postal Service may request from the Office all supporting documentation reasonable and necessary to review the determination.

    `(C) The Office shall respond fully to a request under subparagraph (B) not later than 30 days after the date on which the Office receives the request.

    `(D) Not later than 90 days after the date on which the United States Postal Service receives the information requested under subparagraph (B), the United States Postal Service may appeal the determination of the Office to the Board of Actuaries of the Civil Service Retirement System. The Board of Actuaries shall review the computations of the Office and may make any adjustment with respect to any such amount which the Board determines appropriate. A determination by the Board of Actuaries under this subsection shall be final.'.

SEC. 103. CALCULATING THE POSTAL SERVICE RETIREE HEALTH BENEFITS FUND LIABILITY ON LONG-TERM FUNDING BASIS.

    Section 8909a(d)(4) of title 5, United States Code, is amended to read as follows:

    `(4) Computations under this subsection shall be--

      `(A) made consistent with the entry-age normal cost method; and

      `(B) based on--

        `(i) the economic assumptions used in determining the Postal surplus or supplemental liability under section 8348(h) of this title, except that a different discount rate may be applied if necessary to reflect the experience of the Postal Service Retiree Health Benefits Fund; and

        `(ii) such other assumptions, including a health care cost trend rate, as the Board of Actuaries of the Civil Service Retirement System determine appropriate.'.

SEC. 104. REPORTING OF DATA BASED ON ASSUMPTIONS OF BOARD OF ACTUARIES.

    Section 3654(b)(2) of title 39, United States Code, is amended by adding at the end the following: `The Office shall at a minimum provide data that are based on the assumptions set by the Board of Actuaries of the Civil Service Retirement System and used in the actuarial valuation of the Postal Service's annuity and postretirement health obligations under sections 8348 and 8909a.'.

TITLE II--POSTAL SERVICE RESTRUCTURING

SEC. 201. POSTAL POLICY.

    Section 101(b) of title 39, United States Code, is amended--

      (1) by striking `a maximum degree of'; and

      (2) by striking `where post offices' and all that follows through `a deficit'.

SEC. 202. SPECIFIC POWERS OF THE UNITED STATES POSTAL SERVICE.

    Section 404(d)(2) of title 39, United States Code, is amended--

      (1) by redesignating subparagraphs (A) and (B) as subparagraphs (B) and (C), respectively;

      (2) by inserting before subparagraph (B), as so redesignated, the following:

        `(A) shall give primary consideration to whether such closing or consolidation is consistent with the intent of Congress, as stated in section 101(b), that the Postal Service shall provide effective and regular postal services to rural areas, communities, and small towns;'; and

      (3) in subparagraph (B), as so redesignated--

        (A) by striking clause (iii); and

        (B) by redesignating clauses (iv) and (v) as clauses (iii) and (iv), respectively.

SEC. 203. EXPANSION OF RETAIL ALTERNATIVES.

    (a) In General- The United States Postal Service shall develop a plan for the expansion of retail alternatives to post offices, such as--

      (1) self-service kiosks;

      (2) vending machines;

      (3) the Internet;

      (4) Postal Service employees or contractors on delivery routes; and

      (5) contract postal units.

    (b) Contents- In developing the plan under subsection (a), the Postal Service shall--

      (1) where possible, provide for an increase in customers' access to postal services;

      (2) consider the impact of any decisions on small communities and rural areas; and

      (3) ensure that--

        (A) postal service continues in small communities and rural areas after implementation of the plan; and

        (B) community input is solicited where otherwise required by Federal law.

    (c) Submission of Plan- Not later than 90 days after the date of enactment of this Act, the United States Postal Service shall--

      (1) submit the plan developed under subsection (a) to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Governmental Reform of the House of Representatives; and

      (2) make the plan available to the public.

    (d) Report on Progress- Each of the first 5 years after the date of enactment of this Act, the Postmaster General shall include in the annual report under section 2402 of title 39, United States Code, an update on the progress made in implementing the plan under this section.

SEC. 204. SERVICE STANDARDS.

    Not later than 1 year after the date of enactment of this Act, the United States Postal Service shall exercise its authority under section 3691 of title 39, United States Code, to establish service standards for market-dominant products that guarantee Postal Service customers a degree of access to postal services that is consistent with--

      (1) the obligations of the United States Postal Service under section 101(b) of title 39, United States Code, as amended by this Act; and

      (2) the contents of the plan developed under section 203 of this Act.

SEC. 205. NO LIMITATION ON CHANGES IN FREQUENCY OF MAIL DELIVERY.

    Notwithstanding any other provision of law, the United States Postal Service shall exercise its authority under section 3691 of title 39, United States Code, to adjust the frequency of the delivery of market-dominant products.

SEC. 206. TIME LIMITS FOR CONSIDERATION OF SERVICE CHANGES.

    Section 3661 of title 39, United States Code, is amended by striking subsections (b) and (c) and inserting the following:

    `(b) Proposed Changes for Market-Dominant Products-

      `(1) SUBMISSION OF PROPOSAL- If the Postal Service determines that there should be a change in the nature of postal services relating to market-dominant products that will generally affect service on a nationwide or substantially nationwide basis, it shall submit a proposal to the Postal Regulatory Commission requesting an advisory opinion on the change.

      `(2) ADVISORY OPINION- Upon receipt of a proposal under paragraph (1), the Postal Regulatory Commission shall--

        `(A) provide an opportunity for public comment on the proposal; and

        `(B) not later than 90 days after the date of receipt, issue an advisory opinion.

      `(3) RESPONSE TO OPINION- The Postal Service shall submit to the President and to Congress a response to the advisory opinion issued under paragraph (2), including any recommendations contained therein.

      `(4) ACTION ON PROPOSAL- The Postal Service may take action regarding a proposal submitted under paragraph (1)--

        `(A) on or after the date that is 30 days after the date on which the Postal Service submits the response required under paragraph (3); or

        `(B) after the date described in paragraph (2)(B), if--

          `(i) the Postal Regulatory Commission fails to issue an advisory opinion on or before the date described in paragraph (2)(B); and

          `(ii) the action is not otherwise prohibited under Federal law.'.

TITLE III--ENHANCED COMMERCIAL FLEXIBILITY

SEC. 301. COOPERATION WITH OTHER AGENCIES.

    Section 411 of title 39, United States Code, is amended in the first sentence by striking `and the Government Printing Office' inserting `, the Government Printing Office, and agencies and other units of State and local governments'.

SEC. 302. WINE AND BEER SHIPPING.

    (a) Mailability-

      (1) NONMAILABLE ARTICLES- Section 1716(f) of title 18, United States Code, is amended by striking `mails' and inserting `mails, except to the extent that the mailing is allowable under section 3001(p) of title 39'.

      (2) INTOXICANTS- Section 1154(a) of title 18, United States Code, is amended, by inserting `or, with respect to the mailing of wine or malt beverages, to the extent allowed under section 3001(p) of title 39' after `mechanical purposes'.

    (b) Regulations- Section 3001 of title 39, United States Code, is amended by adding at the end the following:

    `(p)(1) Wine or malt beverages shall be considered mailable if mailed--

      `(A) by a licensed winery or brewery, in accordance with applicable regulations under paragraph (2); and

      `(B) in accordance with the law of the State, territory, or district of the United States where the addressee or duly authorized agent takes delivery.

    `(2) The Postal Service shall prescribe such regulations as may be necessary to carry out this subsection, including regulations providing that--

      `(A) the mailing shall be by a means established by the Postal Service to ensure direct delivery to the addressee or a duly authorized agent at a postal facility;

      `(B) the addressee (and any duly authorized agent) shall be an individual at least 21 years of age, and shall present a valid, government-issued photo identification at the time of delivery;

      `(C) the wine or malt beverages may not be for resale or other commercial purpose; and

      `(D) the winery or brewery involved shall--

        `(i) certify in writing to the satisfaction of the Postal Service, through a registration process administered by the Postal Service, that the mailing is not in violation of any provision of this subsection or regulation prescribed under this subsection; and

        `(ii) provide any other information or affirmation that the Postal Service may require, including with respect to the prepayment of State alcohol beverage taxes.

    `(3) For purposes of this subsection--

      `(A) a winery shall be considered to be licensed if it holds an appropriate basic permit issued--

        `(i) under the Federal Alcohol Administration Act; and

        `(ii) under the law of the State in which the winery is located; and

      `(B) a brewery shall be considered to be licensed if--

        `(i) it possesses a notice of registration and bond approved by the Alcohol and Tobacco Tax and Trade Bureau of the Department of the Treasury; and

        `(ii) it is licensed to manufacture and sell beer in the State in which the brewery is located.'.

    (c) Effective Date- The amendments made by this section shall take effect on the earlier of--

      (1) the date on which the Postal Service issues regulations under section 3001(p) of title 39, United States Code, as amended by this section; and

      (2) 120 days after the date of enactment of this Act.

SEC. 303. PRESERVING VOLUME.

    (a) Modern Rate Regulation- Section 3622(c)(10) of title 39, United States Code, is amended by striking subparagraph (A) and inserting the following:

        `(A) result in compliance by the applicable class of mail with the standard under paragraph (2); and'.

    (b) New Products and Transfers of Products Between the Market-Dominant and Competitive Categories of Mail- Section 3642(d) of title 39, United States Code, is amended--

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

      `(3) TIMING OF REVIEW- The Postal Regulatory Commission shall issue a final decision on any request to add, transfer, or remove--

        `(A) a market-dominant product or competitive product of general applicability, not later than 45 days after the date of the filing of the request; and

        `(B) a competitive product that is not of general applicability, not later than 15 days after the date of the filing of the request.'; and

      (2) in subsection (e)--

        (A) in paragraph (2), by striking the period at the end and inserting `; or';

        (B) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and adjusting the margins accordingly;

        (C) by striking `unless it' and inserting the following: unless--

      `(1) it'; and

        (D) by adding at the end the following:

      `(2) the Postal Regulatory Commission has failed to issue a final decision under subsection (d) before the date required under subsection (d)(3).'.

SEC. 304. NON-POSTAL PRODUCTS AND SERVICES.

    (a) Specific Powers- Section 404 of title 39, United States Code, is amended--

      (1) in subsection (a)--

        (A) by redesignating paragraphs (6) through (8) as paragraphs (7) through (9), respectively; and

        (B) by inserting after paragraph (5) the following:

      `(6) to provide other services that are not postal services, as defined in section 102(5), after--

        `(A) the Postal Regulatory Commission--

          `(i) makes a determination under section 3642 that the provision of such services utilizes the processing, transportation, delivery, retail network, or technology of the Postal Service in a manner that is consistent with the public interest and that does not create unfair competition;

          `(ii) publishes the notice required under section 3642(d)(1) with respect to the determination; and

          `(iii) classifies each such service as a market-dominant product, competitive product, experimental product, or new product, as required under chapter 36 of title 39, United States Code;'; and

      (2) in subsection (e)(1), by inserting before the period at the end the following: `, except that the term `nonpostal service' shall not include any service that may be offered pursuant to specific authority in this title or pursuant to other statutory authority'.

TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. ARBITRATION; LABOR DISPUTES.

    Section 1207(c)(2) of title 39, United States Code, is amended--

      (1) by inserting `(A)' after `(2)';

      (2) by striking the last sentence and inserting `The arbitration board shall render a decision not later than 45 days after the date of its appointment.'; and

      (3) by adding at the end the following:

      `(B) In rendering a decision under this paragraph, the arbitration board shall consider such relevant factors as--

        `(i) the financial condition of the Postal Service;

        `(ii) the flexibilities and restrictions in the rate system established under the Postal Accountability and Enhancement Act (Public Law 109-435; 120 Stat. 3198), and the amendments made by that Act; and

        `(iii) the requirement related to pay and compensation comparability under section 1003(a) of this title.'.

SEC. 402. REVISED REPORTING REQUIREMENT.

    Section 3652(a) of title 39, United States Code, is amended by striking `90 days after the end of each year' and inserting `the next January 15 after the end of each year'.

SEC. 403. DELEGATION OF AUTHORITY.

    Section 402 of title 39, United States Code, is amended to read as follows:

`Sec. 402. Delegation of authority

    `(a) Delegation Permitted- The Board of Governors may delegate the authority vested in it, including the powers, duties, and obligations specifically vested in the Governors, to the Postmaster General under such terms, conditions, and limitations, including the power of redelegation, as it deems desirable.

    `(b) Committees- The Board may establish such committees of the Board, and delegate such powers to any committee, as the Board determines appropriate to carry out its functions and duties.

    `(c) Other Provisions- Delegations to the Postmaster General or committees shall be consistent with other provisions of this title, shall not relieve the Board of full responsibility for the carrying out of its duties and functions, or for ensuring that the Postmaster General complies with all applicable provisions of law, and shall be revocable by the Governors in their exclusive judgment.'.

SEC. 404. CONTRACT DISPUTES.

    Section 7101(8) of title 41, United States Code, is amended--

      (1) in subparagraph (C), by striking `and' at the end;

      (2) in subparagraph (D), by striking the period at the end and inserting `; and'; and

      (3) by adding at the end the following:

        `(E) the United States Postal Service and the Postal Regulatory Commission.'.

END