Summary:
(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)

Postal Service Reform Act of 2016

TITLE I--POSTAL SERVICE BENEFITS REFORM

(Sec. 101) This bill requires the Office of Personnel Management (OPM) to establish a Postal Service Health Benefits Program within the Federal Employees Health Benefits Program to offer health benefits plans for U.S. Postal Service (USPS) employees, annuitant retirees, and their families at rates that reflect the cost of benefits provided solely to the USPS risk pool. To obtain or continue federal coverage, Medicare-eligible postal retirees must be enrolled in part A (Hospital Insurance) and part B (Supplementary Medical Insurance Benefits for Aged and Disabled) of title XVIII (Medicare) of the Social Security Act. Each plan must provide Medicare part D (Voluntary Prescription Drug Benefit Program) prescription drug benefits.

The USPS must establish a Medicare Education Program to notify USPS retirees and employees about the health plans and answer inquiries about Medicare enrollment.

(Sec. 102) The USPS's annual prefunding payments to the Postal Service Retiree Health Benefits Fund (PSRHBF) must be recomputed each year based on economic and actuarial methods to liquidate 100% of the USPS's actuarial liability by September 30, 2055. The bill cancels the unpaid final 6 of 10 prefunding payments that the USPS was obligated to pay into the fund from August 1, 2012, to September 30, 2016.

The government's health benefit contributions to be paid up to the amount in the PSRHBF for USPS retirees since July 1, 1971, shall be the difference between a carrier's costs of providing health services to an individual and the amount withheld from the individual's annuity or paid by the individual. The USPS shall pay any remaining amount.

(Sec. 103) The OPM must use postal-specific demographic and economic assumptions in its valuations of the USPS's Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) pension accounts. Under CSRS and FERS, any projected USPS funding surpluses shall be returned to the USPS through amortized annual installments. (Currently, the OPM uses federal government-wide assumptions.)

(Sec. 104) Postal retirees not previously enrolled in Medicare will be transitioned automatically into Medicare part B, with their premiums reduced by 75% in the first year, 50% in the second year, and 25% in the third year, after which they will pay the full premium.

TITLE II--POSTAL SERVICE OPERATIONS REFORM

(Sec. 201) This title reduces from nine to five the number of governors serving on the USPS Board of Governors with the Postmaster General and the Deputy Postmaster General. The USPS's power shall be vested in the governors and carried out by the Postmaster General consistent with the strategic direction and pricing and product strategy approved by the governors. The Postmaster General may delegate authority, but the bill removes the board's authority to delegate authority to the Postmaster General.

The USPS must transfer funds to the Department of State to coordinate and negotiate international postal rates and delivery services.

(Sec. 202) The USPS must provide mail delivery other than door delivery (with a preference for centralized delivery) for new delivery points. It must also begin converting to centralized delivery, curbside delivery, or sidewalk delivery for existing: (1) business delivery points, and (2) residential delivery points with postal patrons' consent.

The USPS must provide for a voucher program to defray costs associated with conversion from door delivery that would otherwise be borne by postal patrons.

The USPS must collect data on delivery mode costs and report on the potential savings of converting to more cost-efficient primary modes of mail delivery.

The Inspector General of the Postal Community must report on the costs and benefits of the delivery point conversions under this bill.

(Sec. 203) In establishing or revising rates or classifications for first-class mail, standard mail, or other market-dominant products, the Postal Regulatory Commission (PRC) must consider: (1) the effect of rate increases upon the general public and business mail users, (2) the reliability of delivery timelines, (3) the need to ensure that the USPS has adequate revenues and has taken appropriate cost-cutting and efficiency measures to maintain financial stability, (4) the desirability of special classifications that do not cause unfair competitive advantage for the USPS or postal users or unreasonable disruption to the volume or revenues of other postal users, and (5) the importance of stability and predictability of rates to ratepayers.

The title repeals a rate preference that currently allows certain political committees to send third-class mail at the nonprofit organization rate.

The PRC must promulgate regulations for streamlined after-the-fact review of newly proposed agreements between the USPS and users of the mail that provide rates not of general applicability for competitive products. Such a steamlined review shall apply only if agreements are functionally equivalent to existing agreements that have collectively covered attributable costs and improved the net financial position of the USPS.

(Sec. 204) The USPS may establish a program to provide property and services on behalf of state, local, or tribal governments for noncommercial products and services at USPS facilities, and a program to provide property and services to other executive agencies and the Government Publishing Office, but only if such property and services provide a reasonable contribution to the institutional costs of the USPS. The PRC must make annual determinations as to whether nonpostal activities carried out under the program comply with the requirement that each agency reimburse the USPS for at least 100% of the attributable costs of the provided property and services.

(Sec. 205) The USPS, when determining whether to close or consolidate a post office, must consider: (1) distance to the closest postal retail facility that is not operated by a contractor, (2) weather and terrain, and (3) the availability of broadband Internet service and commercial mobile service in the geographic area.

Before a determination as to the necessity for the closing or consolidation of a post office, the USPS must conduct a nonbinding survey to allow postal patrons to indicate their preferences among alternative postal service options. If closure or consolidation is necessary, the USPS must provide those patrons with access to postal services through the alternative option chosen by the highest number of survey respondents or through different means if the first option is not possible or is cost prohibitive.

The Inspector General of the Postal Community must report to the USPS and Congress on the impacts of the post office restructuring plan (POSTPlan) on USPS expenses, revenue, and retail service provision. Prior to any hour changes or consolidation decisions related to POSTPlan initiative impacted post offices, the USPS must: (1) review the inspector general's report and recommendations, and (2) make any appropriate revisions to any planned efforts regarding the POSTPlan initiative.

(Sec. 206) The USPS is prohibited from offering postage-evidencing products or services that do not comply with regulations applicable to private companies.

(Sec. 207) The Postmaster General must reinstate 50% of the exigent rate surcharge for first-class mail and other market-dominant products implemented under the rate adjustment authority for extraordinary or exceptional circumstances that was in effect on April 9, 2016, thereby increasing the postage rate for first-class stamps by 1 cent. The USPS may not institute or maintain an additional rate increase predicated upon the same extraordinary or exceptional circumstances upon which rates have previously been increased under that authority.

(Sec. 208) The PRC must complete the initial review of the system for regulating rates and classes for market-dominant products such that a final rule for a revised or reapproved system is issued by January 1, 2018.

(Sec. 209) The PRC must determine whether to revise methods of attributing costs to postal products.

(Sec. 210) A parcel carried by an air carrier or foreign air carrier must use postage generated by a validated postage evidencing system and be entered with in-person sender verification.

(Sec. 211) The USPS must designate a single, unique zip code for: (1) Miami Lakes, Florida; (2) Storey County, Nevada; and (3) Flanders, Northampton, and Riverside in the Town of Southampton, New York.

TITLE III--POSTAL SERVICE PERSONNEL

(Sec. 301) The Postmaster General must appoint a Chief Innovation Officer to: (1) maximize USPS revenues, (2) utilize emerging information technologies, and (3) update an innovation strategy for postal and nonpostal products and services every three years.

(Sec. 302) The President must appoint an Inspector General of the Postal Community to consolidate the currently separate USPS and PRC inspectors general. (Currently, the governors on the Board of Governors appoint the USPS inspector general and the PRC appoints the PRC inspector general.)

(Sec. 303) The right to appeal adverse personnel actions to the Merit Systems Protection Board is extended to nonsupervisory professional, technical, clerical, or administrative USPS employees who are not represented by a bargaining representative. (Under current law, USPS supervisors and managers already have the right to such appeals.)

 TITLE IV--POSTAL CONTRACTING REFORM

(Sec. 401) The USPS and the PRC must: (1) issue policies on contracting officer delegations of authority for postal contracts, (2) publish noncompetitive contract awards that exceed specified dollar amounts, (3) require contracting officers and decision-makers to disclose personal and business relationships that would cause questions regarding their impartiality, and (4) establish procedures for the ethics counsel to review conflict of interest disclosures to determine whether a contracting officer's participation would violate ethical conduct standards.

The USPS or the PRC may void postal contracts if: (1) there is a criminal conviction for bribery or a conflict of interest relating to the contract, or (2) the contractor fails to make required disclosures.

measure amended introduced summary expanded action occurred measure postal_service reform act title postal service benefits reform sec bill requires establish federal_employees_health_benefits_program offer health benefits plans usps employees annuitant retirees families rates reflect cost benefits provided solely usps risk pool obtain continue federal coverage medicare eligible postal retirees enrolled supplementary medical insurance benefits aged disabled title xviii medicare social security act plan provide medicare voluntary prescription drug benefit program prescription drug benefits usps establish notify usps retirees employees health plans answer inquiries medicare enrollment sec usps annual prefunding payments postal_service_retiree_health_benefits_fund year based economic actuarial methods liquidate usps actuarial liability september bill cancels unpaid final prefunding payments usps obligated pay fund august september government health benefit contributions paid usps retirees july shall difference carrier costs providing health services individual withheld individual annuity paid individual usps shall pay remaining sec opm use postal specific demographic economic assumptions valuations usps civil service retirement system csrs federal_employees_retirement_system fers pension accounts csrs fers projected usps funding surpluses shall returned usps amortized annual installments currently opm uses federal government wide assumptions sec postal retirees previously enrolled medicare automatically medicare premiums reduced year second year year pay premium title postal service operations reform sec title reduces number governors serving usps_board_of_governors postmaster_general deputy postmaster general usps power shall vested governors carried postmaster_general consistent strategic direction pricing product strategy approved governors postmaster general delegate authority bill removes board authority delegate authority postmaster_general usps transfer funds department_of_state coordinate negotiate international postal rates delivery services sec usps provide mail delivery door delivery preference centralized delivery new delivery points begin converting centralized delivery curbside delivery sidewalk delivery existing business delivery points residential delivery points postal patrons consent usps provide voucher program defray costs associated conversion door delivery borne postal patrons usps collect data delivery mode costs report potential savings converting cost efficient primary modes mail delivery inspector general report costs benefits delivery point conversions bill sec establishing revising rates classifications class mail standard mail market dominant products postal_regulatory_commission prc consider effect rate increases general public business mail users reliability delivery timelines need ensure usps adequate revenues taken appropriate cost cutting efficiency measures maintain financial stability desirability special classifications cause unfair competitive advantage usps postal users unreasonable disruption volume revenues postal users importance stability predictability rates ratepayers title repeals rate preference currently allows certain political committees send class mail nonprofit organization rate prc promulgate regulations streamlined fact review newly proposed agreements usps users mail provide rates general applicability competitive products review shall apply agreements functionally equivalent existing agreements collectively covered attributable costs improved net financial position usps sec usps establish program provide property services behalf state local tribal governments noncommercial products services usps facilities program provide property services executive agencies government_publishing_office property services provide reasonable contribution institutional costs usps prc annual determinations nonpostal activities carried program comply requirement agency reimburse usps attributable costs provided property services sec usps determining close consolidate post office consider distance closest postal retail facility operated contractor weather terrain availability broadband internet service commercial mobile service geographic area determination necessity closing consolidation post office usps conduct nonbinding survey allow postal patrons indicate preferences alternative postal service options closure consolidation necessary usps provide patrons access postal services alternative option chosen highest number survey respondents different means option possible cost prohibitive inspector general report usps congress impacts post office restructuring plan usps expenses revenue retail service provision prior hour changes consolidation decisions related initiative impacted post offices usps review inspector general report recommendations appropriate revisions planned efforts initiative sec usps prohibited offering postage evidencing products services comply regulations applicable private companies sec postmaster general reinstate exigent rate surcharge class mail market dominant products implemented rate adjustment authority extraordinary exceptional circumstances effect april increasing postage rate class stamps cent usps institute maintain additional rate increase predicated extraordinary exceptional circumstances rates previously increased authority sec prc complete initial review system regulating rates classes market dominant products final rule revised system issued january sec prc determine revise methods costs postal products sec parcel carried air carrier foreign air carrier use postage generated validated postage evidencing system entered person sender verification sec usps designate single unique zip code florida nevada riverside town new_york title iii postal service personnel sec postmaster general appoint chief innovation officer maximize usps revenues utilize emerging information technologies update innovation strategy postal nonpostal products services years sec president appoint inspector general consolidate currently separate usps prc inspectors general currently governors board_of_governors appoint usps inspector general prc appoints prc inspector general sec right appeal adverse personnel actions merit_systems_protection_board extended professional technical clerical administrative usps employees represented bargaining representative current law usps supervisors managers right appeals title postal contracting reform sec usps prc issue policies contracting officer delegations authority postal contracts publish noncompetitive contract awards exceed specified dollar amounts require contracting officers decision makers disclose personal business relationships cause questions establish procedures ethics counsel review conflict interest disclosures determine contracting officer participation violate ethical conduct standards usps prc void postal contracts criminal conviction bribery conflict interest relating contract contractor fails required disclosures


Summary:
Advancing Targeted Therapies for Rare Diseases Act of 2016

(Sec. 2) This bill amends the Federal Food, Drug, and Cosmetic Act to permit the Food and Drug Administration to allow the sponsor of a new drug or biological product for the treatment of a rare, serious condition to rely upon information submitted for an approved medication that uses the same technology. For a sponsor to be eligible to rely upon submitted information: (1) the sponsor must have developed, or have a right of reference to, the relied upon information; and (2) the new medication must use nucleic acids (e.g., DNA) or similar chemicals, or must affect a disease-causing product of a mutated gene (e.g., the protein that causes cystic fibrosis).

rare diseases act sec bill amends cosmetic act permit food_and_drug_administration allow sponsor new drug biological product treatment rare condition rely information submitted approved medication uses technology sponsor eligible rely submitted information sponsor developed right reference relied information new medication use acids dna similar chemicals affect disease causing product protein causes fibrosis