Bi-Partisan Postal Reform Legislation in the House of Representatives

On June 15, 2016 the House of Representatives House Oversight Committee Chairman Jason Chaffetz and Ranking Member Elijah Cummings introduced a draft of bipartisan postal reform legislation.  In releasing the draft the members issued the following statement:

 

“The Postal Service is in dire financial shape.  Without reform now, the problems will only worsen and reform will become far more difficult to accomplish.  This bipartisan legislative solution provides the opportunity for the Postal Service to return to solvency and continue to provide universal service to all Americans.”

 

Following the June 15 meeting, the Committee took comments from stakeholders, including the Association of United States Postal Lessors.

 

The final legislation, H.R. 5714, Postal Service Reform Act of 2016, was introduced in the House of Representatives on July 11 and referred to the Committee on Oversight and Government Reform, the Committee on Energy and Commerce, and to the House Ways and Means Committee for budget scoring.  On July 12 the Oversight Committee issued a report to the full chamber recommending that the bill be considered further.

 

The Bill proposes changes in criteria for closing or consolidating post offices.  Current regulations require the USPS to consider “The effect of such closing or consolidation on the community served by such post office.”  H.R. 5714 clarifies the measurement of those effects by requiring an analysis of 1) the distance to the closest post office, 2) the local weather and terrain, 3) availability of commercial mobile service, and 4) availability of fixed broadband internet.

 

H.R. 5714 also gives qualified authorization for non-postal services.  The USPS would be allowed to enter into agreements with agencies of any State, local or tribal government to provide property and services for non-commercial products and services at Postal Service facilities.

 

Additional issues addressed by H.R. 5714 are retiree health care benefit funding reform, pension funding reform, Medicare integration, and streamlining governance and oversight.   Funding reforms and Medicare integration would stabilize the USPS’s financial condition.  Streamlining governance would reduce the number of Governors, and increase the functions of the Postal Regulatory Commission.