[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1789 Reported in Senate (RS)]

                                                       Calendar No. 296
112th CONGRESS
  2d Session
                                S. 1789

  To improve, sustain, and transform the United States Postal Service.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 2, 2011

 Mr. Lieberman (for himself, Ms. Collins, Mr. Carper, and Mr. Brown of 
Massachusetts) introduced the following bill; which was read twice and 
referred to the Committee on Homeland Security and Governmental Affairs

                            January 26, 2012

              Reported by Mr. Lieberman, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
  To improve, sustain, and transform the United States Postal Service.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``21st Century Postal Service 
Act of 2011.''</DELETED>

<DELETED>SEC. 2. TABLE OF CONTENTS.</DELETED>

<DELETED>    The table of contents for this Act is as 
follows:</DELETED>

<DELETED>Sec. 1. Short title.
<DELETED>Sec. 2. Table of contents.
<DELETED>Sec. 3. Definitions.
               <DELETED>TITLE I--POSTAL WORKFORCE MATTERS

<DELETED>Sec. 101. Treatment of surplus contributions to Federal 
                            Employees Retirement System.
<DELETED>Sec. 102. Additional service credit.
<DELETED>Sec. 103. Medicare coverage for Postal Service Medicare 
                            eligible annuitants.
<DELETED>Sec. 104. Restructuring of payments for retiree health 
                            benefits.
<DELETED>Sec. 105. Postal Service Health Benefits Program.
<DELETED>Sec. 106. Arbitration; labor disputes.
           <DELETED>TITLE II--POSTAL SERVICES AND OPERATIONS

<DELETED>Sec. 201. Postal facilities.
<DELETED>Sec. 202. Additional Postal Service planning.
<DELETED>Sec. 203. Area and district office structure.
<DELETED>Sec. 204. Retail service standards.
<DELETED>Sec. 205. Conversion of door delivery points.
<DELETED>Sec. 206. Limitations on changes to mail delivery schedule.
<DELETED>Sec. 207. Time limits for consideration of service changes.
<DELETED>Sec. 208. Public procedures for significant changes to mailing 
                            specifications.
<DELETED>Sec. 209. Nonpostal products and services.
        <DELETED>TITLE III--FEDERAL EMPLOYEES' COMPENSATION ACT

<DELETED>Sec. 301. Short title; references.
<DELETED>Sec. 302. Federal workers compensation reforms for retirement-
                            age employees.
<DELETED>Sec. 303. Augmented compensation for dependents.
<DELETED>Sec. 304. Schedule compensation payments.
<DELETED>Sec. 305. Vocational rehabilitation.
<DELETED>Sec. 306. Reporting requirements.
<DELETED>Sec. 307. Disability management review; independent medical 
                            examinations.
<DELETED>Sec. 308. Waiting period.
<DELETED>Sec. 309. Election of benefits.
<DELETED>Sec. 310. Sanction for noncooperation with field nurses.
<DELETED>Sec. 311. Subrogation of continuation of pay.
<DELETED>Sec. 312. Social Security earnings information.
<DELETED>Sec. 313. Amount of compensation.
<DELETED>Sec. 314. Technical and conforming amendments.
<DELETED>Sec. 315. Regulations.
                    <DELETED>TITLE IV--OTHER MATTERS

<DELETED>Sec. 401. Profitability plan.
<DELETED>Sec. 402. Postal rates.
<DELETED>Sec. 403. Cooperation with State and local governments; intra-
                            Service agreements.
<DELETED>Sec. 404. Shipping of wine and beer.
<DELETED>Sec. 405. Annual report on United States mailing industry.
<DELETED>Sec. 406. Use of negotiated service agreements.
<DELETED>Sec. 407. Contract disputes.
<DELETED>Sec. 408. Contracting provisions.

<DELETED>SEC. 3. DEFINITIONS.</DELETED>

<DELETED>    In this Act, the following definitions shall 
apply:</DELETED>
        <DELETED>    (1) Commission.--The term ``Commission'' means the 
        Postal Regulatory Commission.</DELETED>
        <DELETED>    (2) Postal service.--The term ``Postal Service'' 
        means the United States Postal Service.</DELETED>

          <DELETED>TITLE I--POSTAL WORKFORCE MATTERS</DELETED>

<DELETED>SEC. 101. TREATMENT OF SURPLUS CONTRIBUTIONS TO FEDERAL 
              EMPLOYEES RETIREMENT SYSTEM.</DELETED>

<DELETED>    Section 8423(b) of title 5, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) by redesignating paragraph (5) as paragraph 
        (6); and</DELETED>
        <DELETED>    (2) by inserting after paragraph (4) the 
        following:</DELETED>
<DELETED>    ``(5)(A) In this paragraph, the term `surplus postal 
contributions' means the amount by which the amount computed under 
paragraph (1)(B) is less than zero.</DELETED>
<DELETED>    ``(B) For each fiscal year in which the amount computed 
under paragraph (1)(B) is less than zero, upon request of the 
Postmaster General, the Director shall transfer to the United States 
Postal Service from the Fund an amount equal to the surplus postal 
contributions for that fiscal year for use in accordance with this 
paragraph.</DELETED>
<DELETED>    ``(C) For each of fiscal years 2012, 2013, and 2014, if 
the amount computed under paragraph (1)(B) is less than zero, a portion 
of the surplus postal contributions for the fiscal year shall be used 
by the United States Postal Service for the cost of providing to 
employees of the United States Postal Service who voluntarily separate 
from service before October 1, 2014--</DELETED>
        <DELETED>    ``(i) voluntary separation incentive payments 
        (including payments to employees who retire under section 
        8336(d)(2) or 8414(b)(1)(B) before October 1, 2014) that may 
        not exceed the maximum amount provided under section 
        3523(b)(3)(B) for any employee; and</DELETED>
        <DELETED>    ``(ii) retirement service credits, as authorized 
        under section 8332(p) or 8411(m).</DELETED>
<DELETED>    ``(D) Any surplus postal contributions for a fiscal year 
not expended under subparagraph (C) may be used by the United States 
Postal Service for the purposes of--</DELETED>
        <DELETED>    ``(i) repaying any obligation issued under section 
        2005 of title 39; or</DELETED>
        <DELETED>    ``(ii) making required payments to--</DELETED>
                <DELETED>    ``(I) the Employees' Compensation Fund 
                established under section 8147;</DELETED>
                <DELETED>    ``(II) the Postal Service Retiree Health 
                Benefits Fund established under section 
                8909a;</DELETED>
                <DELETED>    ``(III) the Employees Health Benefits Fund 
                established under section 8909; or</DELETED>
                <DELETED>    ``(IV) the Civil Service Retirement and 
                Disability Fund.''.</DELETED>

<DELETED>SEC. 102. ADDITIONAL SERVICE CREDIT.</DELETED>

<DELETED>    (a) Civil Service Retirement System.--Section 8332 of 
title 5, United States Code, is amended by adding at the end the 
following:</DELETED>
<DELETED>    ``(p)(1)(A) For an employee of the United States Postal 
Service who is covered under this subchapter and voluntarily separates 
from service before October 1, 2014, at the direction of the United 
States Postal Service, the Office shall add not more than 1 year (as 
specified by the United States Postal Service) to the total creditable 
service of the employee for purposes of determining entitlement to and 
computing the amount of an annuity under this subchapter (except for a 
disability annuity under section 8337).</DELETED>
<DELETED>    ``(B) An employee who receives additional creditable 
service under this paragraph may not receive a voluntary separation 
incentive payment from the United States Postal Service.</DELETED>
<DELETED>    ``(2)(A) Subject to subparagraph (B), and notwithstanding 
any other provision of law, no deduction, deposit, or contribution 
shall be required for service credited under this subsection.</DELETED>
<DELETED>    ``(B) The actuarial present value of the additional 
liability of the United States Postal Service to the Fund resulting 
from this subsection shall be included in the amount calculated under 
section 8348(h)(1)(A).''.</DELETED>
<DELETED>    (b) Federal Employees Retirement System.--Section 8411 of 
title 5, United States Code, is amended by adding at the end the 
following:</DELETED>
<DELETED>    ``(m)(1)(A) For an employee of the United States Postal 
Service who is covered under this chapter and voluntarily separates 
from service before October 1, 2014, at the direction of the United 
States Postal Service, the Office shall add not more than 2 years (as 
specified by the United States Postal Service) to the total creditable 
service of the employee for purposes of determining entitlement to and 
computing the amount of an annuity under this chapter (except for a 
disability annuity under subchapter V of that chapter).</DELETED>
<DELETED>    ``(B) An employee who receives additional creditable 
service under this paragraph may not receive a voluntary separation 
incentive payment from the United States Postal Service.</DELETED>
<DELETED>    ``(2)(A) Subject to subparagraph (B), and notwithstanding 
any other provision of law, no deduction, deposit, or contribution 
shall be required for service credited under this subsection.</DELETED>
<DELETED>    ``(B) The actuarial present value of the additional 
liability of the United States Postal Service to the Fund resulting 
from this subsection shall be included in the amount calculated under 
section 8423(b)(1)(B).''.</DELETED>

<DELETED>SEC. 103. MEDICARE COVERAGE FOR POSTAL SERVICE MEDICARE 
              ELIGIBLE ANNUITANTS.</DELETED>

<DELETED>    (a) Federal Employees Health Benefits Plans.--</DELETED>
        <DELETED>    (1) In general.--Chapter 89 of title 5, United 
        States Code, is amended by inserting after section 8903b the 
        following:</DELETED>
<DELETED>``Sec. 8903c. Postal Service Medicare eligible 
              annuitants</DELETED>
<DELETED>    ``(a) Definitions.--In this section--</DELETED>
        <DELETED>    ``(1) the term `contract year' means a calendar 
        year in which health benefits plans are administered under this 
        chapter;</DELETED>
        <DELETED>    ``(2) the term `Medicare part A' means the 
        Medicare program for hospital insurance benefits under part A 
        of title XVIII of the Social Security Act (42 U.S.C. 1395c et 
        seq.);</DELETED>
        <DELETED>    ``(3) the term `Medicare part B' means the 
        Medicare program for supplementary medical insurance benefits 
        under part B of title XVIII of the Social Security Act (42 
        U.S.C. 1395j et seq.); and</DELETED>
        <DELETED>    ``(4) the term `Postal Service Medicare eligible 
        annuitant' means an individual who--</DELETED>
                <DELETED>    ``(A) is an annuitant covered under this 
                chapter whose Government contribution is paid by the 
                Postal Service under section 8906(g)(2); and</DELETED>
                <DELETED>    ``(B) is eligible to enroll in Medicare 
                part A and Medicare part B.</DELETED>
<DELETED>    ``(b) Requirement of Medicare Enrollment.--</DELETED>
        <DELETED>    ``(1) Postal service medicare eligible 
        annuitants.--</DELETED>
                <DELETED>    ``(A) Immediate application.--An 
                individual who is a Postal Service Medicare eligible 
                annuitant on the date of enactment of the 21st Century 
                Postal Service Act of 2011 may not continue coverage 
                under this chapter, unless that individual enrolls in 
                Medicare part A and Medicare part B during the special 
                enrollment period established under section 1837(m) of 
                the Social Security Act.</DELETED>
                <DELETED>    ``(B) Prospective application.--An 
                individual who becomes a Postal Service Medicare 
                eligible annuitant after the date of enactment of the 
                21st Century Postal Service Act of 2011 may not 
                continue coverage under this chapter, unless after 
                becoming eligible for Medicare part A and Medicare part 
                B that individual enrolls in Medicare part A and 
                Medicare part B during the applicable initial 
                enrollment period under section 1837 of the Social 
                Security Act (42 U.S.C. 1395p).</DELETED>
        <DELETED>    ``(2) Family members of postal service medicare 
        eligible annuitants.--</DELETED>
                <DELETED>    ``(A) Family member is medicare 
                eligible.--An individual who, on the date of enactment 
                of the 21st Century Postal Service Act of 2011, is a 
                Postal Service Medicare eligible annuitant, is enrolled 
                in self and family coverage under this chapter, and has 
                a member of the family who is eligible to enroll in 
                Medicare part A and Medicare part B, may not continue 
                coverage under this chapter, unless--</DELETED>
                        <DELETED>    ``(i) the family member enrolls in 
                        Medicare part A and Medicare part B during the 
                        special enrollment period established under 
                        section 1837(m) of the Social Security Act; 
                        or</DELETED>
                        <DELETED>    ``(ii) the individual enrolls for 
                        self only coverage under this 
                        chapter.</DELETED>
                <DELETED>    ``(B) Family member becomes medicare 
                eligible.--An individual who, on the date of enactment 
                of the 21st Century Postal Service Act of 2011, is a 
                Postal Service Medicare eligible annuitant, is enrolled 
                in self and family coverage under this chapter, and has 
                a member of the family who becomes eligible to enroll 
                in Medicare part A and Medicare part B after that date, 
                may not continue coverage under this chapter, unless--
                </DELETED>
                        <DELETED>    ``(i) the family member enrolls in 
                        Medicare part A and Medicare part B during the 
                        applicable initial enrollment period under 
                        section 1837 of the Social Security Act (42 
                        U.S.C. 1395p); or</DELETED>
                        <DELETED>    ``(ii) the individual enrolls for 
                        self only coverage under this 
                        chapter.</DELETED>
<DELETED>    ``(c) Enrollment Options.--</DELETED>
        <DELETED>    ``(1) Establishment.--For contract years following 
        the date of enactment of the 21st Century Postal Service Act of 
        2011, the Office shall establish enrollment options for health 
        benefits plans that are open only to Postal Service Medicare 
        eligible annuitants or family members of a Postal Service 
        Medicare eligible annuitants who continue coverage under this 
        chapter in accordance with subsection (b).</DELETED>
        <DELETED>    ``(2) Enrollment requirement.--Any Postal Service 
        Medicare eligible annuitant or family member of a Postal 
        Service Medicare eligible annuitant who continues coverage 
        under this chapter in accordance with subsection (b) may only 
        enroll in 1 of the enrollment options established under 
        paragraph (1).</DELETED>
        <DELETED>    ``(3) Value of coverage.--The Office shall ensure 
        that the aggregate actuarial value of coverage under the 
        enrollment options established under this subsection, in 
        combination with the value of coverage under Medicare part A 
        and Medicare part B, shall be not less than the actuarial value 
        of the most closely corresponding enrollment options available 
        under section 8905.</DELETED>
        <DELETED>    ``(4) Enrollment options.--</DELETED>
                <DELETED>    ``(A) In general.--The enrollment options 
                established under paragraph (1) shall include--
                </DELETED>
                        <DELETED>    ``(i) an individual option, for 
                        Postal Service Medicare eligible annuitants 
                        subject to subsection (b)(1);</DELETED>
                        <DELETED>    ``(ii) a self and family option, 
                        for Postal Service Medicare eligible annuitants 
                        subject to subsection (b)(1) and family members 
                        of Postal Service Medicare eligible annuitants 
                        subject to subsection (b)(2); and</DELETED>
                        <DELETED>    ``(iii) a self and family option, 
                        for Postal Service Medicare eligible annuitants 
                        subject to subsection (b)(1) and family members 
                        of Postal Service Medicare eligible annuitants, 
                        including family members not subject to 
                        subsection (b)(2).</DELETED>
                <DELETED>    ``(B) Specific sub-options.--The Office 
                may establish more specific enrollment options within 
                the types of options described under subparagraph 
                (A).</DELETED>
        <DELETED>    ``(5) Reduced premiums to account for medicare 
        coordination.--In determining the premiums for the enrollment 
        options under paragraph (4), the Office shall--</DELETED>
                <DELETED>    ``(A) establish a separate claims pool for 
                individuals eligible for coverage under those options; 
                and</DELETED>
                <DELETED>    ``(B) ensure that--</DELETED>
                        <DELETED>    ``(i) the premiums are reduced 
                        from the premiums otherwise established under 
                        this chapter to directly reflect the full cost 
                        savings to the health benefits plans due to the 
                        complete coordination of benefits with Medicare 
                        part A and Medicare part B for Postal Service 
                        Medicare eligible annuitants or family members 
                        of Postal Service Medicare eligible annuitants 
                        who continue coverage under this chapter; 
                        and</DELETED>
                        <DELETED>    ``(ii) the cost savings described 
                        under clause (i) result solely in the reduction 
                        of--</DELETED>
                                <DELETED>    ``(I) the premiums paid by 
                                the Postal Service Medicare eligible 
                                annuitant; and</DELETED>
                                <DELETED>    ``(II) the Government 
                                contributions paid by the Postal 
                                Service.</DELETED>
<DELETED>    ``(d) Conversion of Enrollment.--</DELETED>
        <DELETED>    ``(1) In general.--For any individual who enrolls 
        in Medicare part A and Medicare part B in accordance with 
        subsection (b) other than during the special enrollment period 
        established under section 1837(m) of the Social Security Act, 
        coverage under this chapter shall be converted to coverage 
        under the applicable enrollment option established under 
        subsection (c) upon enrollment in Medicare part A and Medicare 
        part B.</DELETED>
        <DELETED>    ``(2) Notification.--The Office shall provide 
        reasonable advance notice to any Postal Service Medicare 
        eligible annuitant or family member of any Postal Service 
        Medicare eligible annuitant that such annuitant or family 
        member will become subject to conversion of enrollment under 
        paragraph (1).</DELETED>
<DELETED>    ``(e) Postal Service Consultation.--The Office shall 
establish the enrollment options and premiums under this section in 
consultation with the Postal Service.''.</DELETED>
        <DELETED>    (2) Technical and conforming amendments.--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:</DELETED>

<DELETED>``8903c. Postal Service Medicare eligible annuitants.''.
        <DELETED>    (3) Effective date.--The amendments made by this 
        subsection shall apply with respect to contract years beginning 
        6 months following the date of enactment of this Act.</DELETED>
<DELETED>    (b) Special Enrollment Period for Postal Service Medicare 
Eligible Annuitants.--</DELETED>
        <DELETED>    (1) Special enrollment period.--</DELETED>
                <DELETED>    (A) In general.--Section 1837 of the 
                Social Security Act (42 U.S.C. 1395p) is amended by 
                adding at the end the following new 
                subsection:</DELETED>
<DELETED>    ``(m)(1) In the case of any individual who is a Postal 
Service Medicare eligible annuitant (as defined in section 8903c(a) of 
title 5, United States Code) at the time the individual is entitled to 
part A under section 226(b) or section 226A and who is eligible to 
enroll but who has elected not to enroll (or to be deemed enrolled) 
during the individual's initial enrollment period, there shall be a 
special enrollment period described in paragraph (2).</DELETED>
<DELETED>    ``(2) The special enrollment period described in this 
paragraph, with respect to an individual is the 6-month period, 
beginning on the first day of the month which includes the date of 
enactment of the 21st Century Postal Service Act of 2011.</DELETED>
<DELETED>    ``(3) In the case of an individual who enrolls during the 
special enrollment period provided under paragraph (1), the coverage 
period under this part shall begin on the first day of the month in 
which the individual enrolls.''.</DELETED>
                <DELETED>    (B) Effective date.--The amendment made by 
                subparagraph (A) shall apply to elections made with 
                respect to initial enrollment periods that end after 
                the date of enactment of the 21st Century Postal 
                Service Act of 2011.</DELETED>
        <DELETED>    (2) Waiver of increase of premium.--Section 
        1839(b) of the Social Security Act (42 U.S.C. 1395r(b)) is 
        amended by striking ``(i)(4) or (l)'' and inserting ``(i)(4), 
        (l), or (m)''.</DELETED>

<DELETED>SEC. 104. RESTRUCTURING OF PAYMENTS FOR RETIREE HEALTH 
              BENEFITS.</DELETED>

<DELETED>    (a) Contributions.--Section 8906(g)(2)(A) of title 5, 
United States Code, is amended by striking ``through September 30, 
2016, be paid by the United States Postal Service, and thereafter 
shall'' and inserting ``after the date of enactment of the 21st Century 
Postal Service Act of 2011''.</DELETED>
<DELETED>    (b) Postal Service Retiree Health Benefits Fund.--Section 
8909a of title 5, United States Code, is amended--</DELETED>
        <DELETED>    (1) in subsection (d)--</DELETED>
                <DELETED>    (A) in paragraph (2)(B)--</DELETED>
                        <DELETED>    (i) by striking ``2017'' and 
                        inserting ``2012''; and</DELETED>
                        <DELETED>    (ii) by inserting after ``later, 
                        of'' the following: ``80 percent of''; 
                        and</DELETED>
                <DELETED>    (B) in paragraph (3)--</DELETED>
                        <DELETED>    (i) in subparagraph (A)--
                        </DELETED>
                                <DELETED>    (I) in clause (iii), by 
                                adding ``and'' at the end;</DELETED>
                                <DELETED>    (II) in clause (iv), by 
                                striking the semicolon at the end and 
                                inserting a period; and</DELETED>
                                <DELETED>    (III) by striking clauses 
                                (v) through (x); and</DELETED>
                        <DELETED>    (ii) in subparagraph (B), by 
                        striking ``2017'' and inserting ``2012''; 
                        and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(e) Subsections (a) through (d) shall be subject to 
section 105 of the 21st Century Postal Service Act of 
2011.''.</DELETED>

<DELETED>SEC. 105. POSTAL SERVICE HEALTH BENEFITS PROGRAM.</DELETED>

<DELETED>    (a) Definitions.--In this section--</DELETED>
        <DELETED>    (1) the term ``covered employee'' means an 
        employee of the Postal Service who is represented by a 
        bargaining representative recognized under section 1203 of 
        title 39, United States Code;</DELETED>
        <DELETED>    (2) the term ``Federal Employee Health Benefits 
        Program'' means the health benefits program under chapter 89 of 
        title 5, United States Code; and</DELETED>
        <DELETED>    (3) the term ``Postal Service Health Benefits 
        Program'' means the health benefits program that may be agreed 
        to under subsection (b)(1).</DELETED>
<DELETED>    (b) Collective Bargaining.--</DELETED>
        <DELETED>    (1) In general.--Consistent with section 1005(f) 
        of title 39, United States Code, the Postal Service may 
        negotiate jointly with all bargaining representatives 
        recognized under section 1203 of title 39, United States Code, 
        and enter into a joint collective bargaining agreement with 
        those bargaining representatives to establish the Postal 
        Service Health Benefits Program that satisfies the conditions 
        under subsection (c). The Postal Service and the bargaining 
        representatives shall negotiate in consultation with the 
        Director of the Office of Personnel Management.</DELETED>
        <DELETED>    (2) Arbitration limitation.--Notwithstanding 
        chapter 12 of title 39, United States Code, there shall not be 
        arbitration of any dispute in the negotiations under this 
        subsection.</DELETED>
        <DELETED>    (3) Time limitation.--The authority under this 
        subsection shall extend until September 30, 2012.</DELETED>
<DELETED>    (c) Postal Service Health Benefits Program.--The Postal 
Service Health Benefits Program--</DELETED>
        <DELETED>    (1) shall--</DELETED>
                <DELETED>    (A) be available for participation by all 
                covered employees;</DELETED>
                <DELETED>    (B) provide adequate and appropriate 
                health benefits;</DELETED>
                <DELETED>    (C) be administered by the Postmaster 
                General; and</DELETED>
                <DELETED>    (D) provide for transition of coverage 
                under the Federal Employee Health Benefits Program of 
                covered employees to coverage under the Postal Service 
                Health Benefits Program on January 1, 2013;</DELETED>
        <DELETED>    (2) may provide dental benefits; and</DELETED>
        <DELETED>    (3) may provide vision benefits.</DELETED>
<DELETED>    (d) Agreement and Implementation.--If a joint agreement is 
reached under subsection (b)--</DELETED>
        <DELETED>    (1) the Postal Service shall implement the Postal 
        Service Health Benefits Program;</DELETED>
        <DELETED>    (2) the Postal Service Health Benefits Program 
        shall constitute an agreement between the collective bargaining 
        representatives and the Postal Service for purposes of section 
        1005(f) of title 39, United States Code; and</DELETED>
        <DELETED>    (3) covered employees may not participate as 
        employees in the Federal Employees Health Benefits 
        Program.</DELETED>
<DELETED>    (e) Government Plan.--The Postal Service Health Benefits 
Program shall be a government plan as that term is defined under 
section 3(32) of Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1002(32)).</DELETED>
<DELETED>    (f) Report.--Not later than June 30, 2013, the Postal 
Service shall submit a report to the Committee on Homeland Security and 
Governmental Affairs of the Senate and the Committee on Oversight and 
Government Reform of the House of Representatives that--</DELETED>
        <DELETED>    (1) reports on the implementation of this section; 
        and</DELETED>
        <DELETED>    (2) requests any additional statutory authority 
        that the Postal Service determines is necessary to carry out 
        the purposes of this section.</DELETED>

<DELETED>SEC. 106. ARBITRATION; LABOR DISPUTES.</DELETED>

<DELETED>    Section 1207(c)(2) of title 39, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) by inserting ``(A)'' after ``(2)'';</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
<DELETED>    ``(B) In rendering a decision under this paragraph, the 
arbitration board shall consider such relevant factors as--</DELETED>
        <DELETED>    ``(i) the financial condition of the Postal 
        Service;</DELETED>
        <DELETED>    ``(ii) the requirements relating to pay and 
        compensation comparability under section 1003(a); and</DELETED>
        <DELETED>    ``(iii) the policies of this title.''.</DELETED>

      <DELETED>TITLE II--POSTAL SERVICES AND OPERATIONS</DELETED>

<DELETED>SEC. 201. POSTAL FACILITIES.</DELETED>

<DELETED>    Section 404 of title 39, United States Code, is amended by 
adding after subsection (e) the following:</DELETED>
<DELETED>    ``(f) Closing or Consolidation of Certain Postal 
Facilities.--</DELETED>
        <DELETED>    ``(1) Postal facility.--In this subsection, the 
        term `postal facility' does not include--</DELETED>
                <DELETED>    ``(A) any post office, station, or branch; 
                or</DELETED>
                <DELETED>    ``(B) any facility used only for 
                administrative functions.</DELETED>
        <DELETED>    ``(2) Area mail processing study.--</DELETED>
                <DELETED>    ``(A) New area mail processing studies.--
                After the date of enactment of this subsection, before 
                making a determination under subsection (a)(3) as to 
                the necessity for the closing or consolidation of any 
                postal facility, the Postal Service shall--</DELETED>
                        <DELETED>    ``(i) conduct an area mail 
                        processing study relating to that postal 
                        facility that includes a plan to reduce the 
                        capacity of the postal facility, but not close 
                        the postal facility;</DELETED>
                        <DELETED>    ``(ii) publish the study on the 
                        Postal Service website; and</DELETED>
                        <DELETED>    ``(iii) publish a notice that the 
                        study is complete and available to the public, 
                        including on the Postal Service 
                        website.</DELETED>
                <DELETED>    ``(B) Completed or ongoing area mail 
                processing studies.--</DELETED>
                        <DELETED>    ``(i) In general.--In the case of 
                        a postal facility described in clause (ii), the 
                        Postal Service shall--</DELETED>
                                <DELETED>    ``(I) consider a plan to 
                                reduce the capacity of the postal 
                                facility, but not close the post 
                                facility; and</DELETED>
                                <DELETED>    ``(II) publish the results 
                                of the consideration under subclause 
                                (I) with or as an amendment to the area 
                                mail processing study relating to the 
                                postal facility.</DELETED>
                        <DELETED>    ``(ii) Postal facilities.--A 
                        postal facility described in this clause is a 
                        postal facility for which, on or before the 
                        date of enactment of this subsection--
                        </DELETED>
                                <DELETED>    ``(I) an area mail 
                                processing study that does not include 
                                a plan to reduce the capacity of the 
                                postal facility, but not close the 
                                facility, has been completed or is in 
                                progress; and</DELETED>
                                <DELETED>    ``(II) a determination as 
                                to the necessity for the closing or 
                                consolidation of the postal facility 
                                has not been made.</DELETED>
        <DELETED>    ``(3) Notice; public comment; and public 
        hearing.--If the Postal Service makes a determination under 
        subsection (a)(3) to close or consolidate a postal facility, 
        the Postal Service shall--</DELETED>
                <DELETED>    ``(A) provide notice of the determination 
                to--</DELETED>
                        <DELETED>    ``(i) Congress; and</DELETED>
                        <DELETED>    ``(ii) the Postal Regulatory 
                        Commission;</DELETED>
                <DELETED>    ``(B) provide adequate public notice of 
                the intention of the Postal Service to close or 
                consolidate the postal facility;</DELETED>
                <DELETED>    ``(C) ensure that interested persons have 
                an opportunity to submit public comments during a 45-
                day period after the notice of intention is provided 
                under subparagraph (B);</DELETED>
                <DELETED>    ``(D) before that 45-day period provide 
                for public notice of that opportunity by--</DELETED>
                        <DELETED>    ``(i) publication on the Postal 
                        Service website;</DELETED>
                        <DELETED>    ``(ii) posting at the affected 
                        postal facility; and</DELETED>
                        <DELETED>    ``(iii) advertising the date and 
                        location of the public community meeting under 
                        subparagraph (E); and</DELETED>
                <DELETED>    ``(E) during the 45-day period described 
                under subparagraph (C), conduct a public community 
                meeting that provides an opportunity for public 
                comments to be submitted verbally or in 
                writing.</DELETED>
        <DELETED>    ``(4) Further considerations.--Not earlier than 30 
        days after the end of the 45-day period for public comment 
        under paragraph (3), the Postal Service, in making a 
        determination whether or not to close or consolidate a postal 
        facility, shall consider--</DELETED>
                <DELETED>    ``(A) the views presented by interested 
                persons solicited under paragraph (3);</DELETED>
                <DELETED>    ``(B) the effect of the closing or 
                consolidation on the affected community, including any 
                disproportionate impact the closure or consolidation 
                may have on a State, region, or locality;</DELETED>
                <DELETED>    ``(C) the effect of the closing or 
                consolidation on the travel times and distances for 
                affected customers to access services under the 
                proposed closing or consolidation;</DELETED>
                <DELETED>    ``(D) the effect of the closing or 
                consolidation on delivery times for all classes of 
                mail;</DELETED>
                <DELETED>    ``(E) any characteristics of certain 
                geographical areas, such as remoteness, broadband 
                internet availability, and weather-related obstacles to 
                using alternative facilities, that may result in the 
                closing or consolidation having a unique effect; 
                and</DELETED>
                <DELETED>    ``(F) any other factor the Postal Service 
                determines is necessary.</DELETED>
        <DELETED>    ``(5) Justification statement.--Before the date on 
        which the Postal Service closes or consolidates a postal 
        facility, the Postal Service shall post on the Postal Service 
        website a closure or consolidation justification statement that 
        includes--</DELETED>
                <DELETED>    ``(A) a response to all public comments 
                received with respect to the considerations described 
                under paragraph (4);</DELETED>
                <DELETED>    ``(B) a description of the considerations 
                made by the Postal Service under paragraph (4); 
                and</DELETED>
                <DELETED>    ``(C) the actions that will be taken by 
                the Postal Service to mitigate any negative effects 
                identified under paragraph (4).</DELETED>
        <DELETED>    ``(6) Closing or consolidation of postal 
        facilities.--</DELETED>
                <DELETED>    ``(A) In general.--Not earlier than the 15 
                days after posting and publishing the final 
                determination and the justification statement under 
                paragraph (6) with respect to a postal facility, the 
                Postal Service may close or consolidate the postal 
                facility.</DELETED>
                <DELETED>    ``(B) Alternative intake of mail.--If the 
                Postal Service closes or consolidates a postal facility 
                under subparagraph (A), the Postal Service shall make 
                reasonable efforts to ensure continued mail receipt 
                from customers of the closed or consolidated postal 
                facility at the same location or at another appropriate 
                location in close geographic proximity to the closed or 
                consolidated postal facility.</DELETED>
        <DELETED>    ``(7) Postal service website.--For purposes of any 
        notice required to be published on the Postal Service website 
        under this subsection, the Postal Service shall ensure that the 
        Postal Service website--</DELETED>
                <DELETED>    ``(A) is updated routinely; and</DELETED>
                <DELETED>    ``(B) provides any person, at the option 
                of the person, the opportunity to receive relevant 
                updates by electronic mail.''.</DELETED>

<DELETED>SEC. 202. ADDITIONAL POSTAL SERVICE PLANNING.</DELETED>

<DELETED>    Section 302(d) of the Postal Accountability and 
Enhancement Act of 2006 (39 U.S.C. 3691 note) is amended--</DELETED>
        <DELETED>    (1) in paragraph (8), by striking the period at 
        the end and inserting ``; and'';</DELETED>
        <DELETED>    (2) by redesignating paragraphs (1) through (8) as 
        subparagraphs (A) through (H), respectively, and adjusting the 
        margins accordingly;</DELETED>
        <DELETED>    (3) in the matter preceding subparagraph (A), as 
        so redesignated, by striking ``shall include'' and inserting 
        the following: ``shall--</DELETED>
        <DELETED>    ``(1) include''; and</DELETED>
        <DELETED>    (4) by adding at the end the following:</DELETED>
        <DELETED>    ``(2) where possible, provide for an improvement 
        in customer access to postal services;</DELETED>
        <DELETED>    ``(3) consider the impact of any decisions by the 
        Postal Service relating to the implementation of the plan on 
        small communities and rural areas; and</DELETED>
        <DELETED>    ``(4) ensure that--</DELETED>
                <DELETED>    ``(A) small communities and rural areas 
                continue to receive regular and effective access to 
                retail postal services after implementation of the 
                plan; and</DELETED>
                <DELETED>    ``(B) the Postal Service solicits 
                community input in accordance with applicable 
                provisions of Federal law.''.</DELETED>

<DELETED>SEC. 203. AREA AND DISTRICT OFFICE STRUCTURE.</DELETED>

<DELETED>    (a) Plan Required.--Not later than 1 year after the date 
of enactment of this Act, the Postal Service shall submit 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--</DELETED>
        <DELETED>    (1) a comprehensive strategic plan to govern 
        decisions relating to area and district office structure that 
        considers efficiency, costs, redundancies, mail volume, 
        technological advancements, operational considerations, and 
        other issues that may be relevant to establishing an effective 
        area and district office structure; and</DELETED>
        <DELETED>    (2) a 10-year plan, including a timetable, that 
        provides for consolidation of area and district offices 
        wherever the Postal Service determines a consolidation would--
        </DELETED>
                <DELETED>    (A) be cost-effective; and</DELETED>
                <DELETED>    (B) not substantially and adversely affect 
                the operations of the Postal Service.</DELETED>
<DELETED>    (b) Consolidation.--Beginning not later than 1 year after 
the date of enactment of this Act, the Postal Service shall, consistent 
with the plans required under subsection (a)--</DELETED>
        <DELETED>    (1) consolidate district offices that are located 
        within 50 miles of each other;</DELETED>
        <DELETED>    (2) consolidate area and district offices that 
        have less than the mean mail volume and number of work hours 
        for all area and district offices; and</DELETED>
        <DELETED>    (3) relocate area offices to 
        headquarters.</DELETED>
<DELETED>    (c) Updates.--The Postal Service shall update the plans 
required under subsection (a) not less frequently than once every 5 
years.</DELETED>

<DELETED>SEC. 204. RETAIL SERVICE STANDARDS.</DELETED>

<DELETED>    (a) Establishment of Service Standards.--Not later than 1 
year after the date of enactment of this Act, the Postal Service shall 
exercise its authority under section 3691 of title 39, United States 
Code, to establish service standards for market-dominant products in 
order to guarantee customers of the Postal Service regular and 
effective access to retail postal services nationwide (including in 
territories and possessions of the United States) on a reasonable 
basis.</DELETED>
<DELETED>    (b) Contents.--The service standards established under 
subsection (a) shall--</DELETED>
        <DELETED>    (1) be consistent with--</DELETED>
                <DELETED>    (A) the obligations of the Postal Service 
                under section 101(b) of title 39, United States Code; 
                and</DELETED>
                <DELETED>    (B) the contents of the plan developed 
                under section 302 of the Postal Accountability and 
                Enhancement Act of 2006 (39 U.S.C. 3691 note), as 
                amended by section 202 of this Act; and</DELETED>
        <DELETED>    (2) take into account factors including--
        </DELETED>
                <DELETED>    (A) geography, including the establishment 
                of standards for the proximity of retail postal 
                services to postal customers, including a consideration 
                of the reasonable maximum time a postal customer should 
                expect to travel to access a postal retail 
                location;</DELETED>
                <DELETED>    (B) population, including population 
                density, demographic factors such as the age and 
                disability status of individuals in the area to be 
                served by a location providing postal retail services, 
                and other factors that may impact the ability of postal 
                customers, including businesses, to travel to a postal 
                retail location;</DELETED>
                <DELETED>    (C) the feasibility of offering retail 
                access to postal services in addition to post offices, 
                as described in section 302(d) of the Postal 
                Accountability and Enhancement Act of 2006 (39 U.S.C. 
                3691 note); and</DELETED>
                <DELETED>    (D) the requirement that the Postal 
                Service serve remote areas and communities with 
                transportation challenges, including communities in 
                which the effects of inclement weather or other natural 
                conditions might obstruct or otherwise impede access to 
                retail postal services.</DELETED>

<DELETED>SEC. 205. CONVERSION OF DOOR DELIVERY POINTS.</DELETED>

<DELETED>    (a) In General.--Subchapter VII of chapter 36 of title 39, 
United States Code, is amended by adding at the end the 
following:</DELETED>
<DELETED>``Sec. 3692. Conversion of door delivery points</DELETED>
<DELETED>    ``(a) Definitions.--In this section, the following 
definitions shall apply:</DELETED>
        <DELETED>    ``(1) Centralized delivery point.--The term 
        `centralized delivery point' means a group or cluster of mail 
        receptacles at 1 delivery point that is within reasonable 
        proximity of the street address associated with the delivery 
        point.</DELETED>
        <DELETED>    ``(2) Curbline delivery point.--The term `curbline 
        delivery point' means a delivery point that is--</DELETED>
                <DELETED>    ``(A) adjacent to the street address 
                associated with the delivery point; and</DELETED>
                <DELETED>    ``(B) accessible by vehicle on a street 
                that is not a private driveway.</DELETED>
        <DELETED>    ``(3) Door delivery point.--The term `door 
        delivery point' means a delivery point at a door of the 
        structure at a street address.</DELETED>
        <DELETED>    ``(4) Sidewalk delivery point.--The term `sidewalk 
        delivery point' means a delivery point on a sidewalk adjacent 
        to the street address associated with the delivery 
        point.</DELETED>
<DELETED>    ``(b) Conversion.--Except as provided in subsection (c), 
not later than September 30, 2015, in accordance with standards 
established by the Postal Service, the Postal Service may, where 
feasible, convert door delivery points to--</DELETED>
        <DELETED>    ``(1) curbline delivery points;</DELETED>
        <DELETED>    ``(2) sidewalk delivery points; or</DELETED>
        <DELETED>    ``(3) centralized delivery points.</DELETED>
<DELETED>    ``(c) Exceptions.--</DELETED>
        <DELETED>    ``(1) Continued door delivery.--The Postal Service 
        may allow for the continuation of door delivery due to--
        </DELETED>
                <DELETED>    ``(A) a physical hardship of a 
                customer;</DELETED>
                <DELETED>    ``(B) weather, in a geographic area where 
                snow removal efforts could obstruct access to mailboxes 
                near a road;</DELETED>
                <DELETED>    ``(C) circumstances in an urban area that 
                preclude efficient use of curbside delivery 
                points;</DELETED>
                <DELETED>    ``(D) other exceptional circumstances, as 
                determined in accordance with regulations issued by the 
                Postal Service; or</DELETED>
                <DELETED>    ``(E) other circumstances in which the 
                Postal Service determines that alternatives to door 
                delivery would not be practical or cost 
                effective.</DELETED>
        <DELETED>    ``(2) New door delivery points.--The Postal 
        Service may provide door delivery to a new delivery point in a 
        delivery area that received door delivery on the day before the 
        date of enactment of this section, if the delivery point is 
        established before the delivery area is converted from door 
        delivery under subsection (b).</DELETED>
<DELETED>    ``(d) Solicitation of Comments.--The Postal Service shall 
establish procedures to solicit, consider, and respond to input from 
individuals affected by a conversion under this section.</DELETED>
<DELETED>    ``(e) Review.--Subchapter V of this chapter shall not 
apply with respect to any action taken by the Postal Service under this 
section.</DELETED>
<DELETED>    ``(f) Report.--Not later than 60 days after the end of 
each fiscal year through fiscal year 2015, the Postal Service shall 
submit to Congress and the Inspector General of the Postal Service a 
report on the implementation of this section during the preceding 
fiscal year that--</DELETED>
        <DELETED>    ``(1) includes the number of door delivery 
        points--</DELETED>
                <DELETED>    ``(A) that existed at the end of the 
                fiscal year preceding the preceding fiscal 
                year;</DELETED>
                <DELETED>    ``(B) that existed at the end of the 
                preceding fiscal year;</DELETED>
                <DELETED>    ``(C) that, during the preceding fiscal 
                year, converted to--</DELETED>
                        <DELETED>    ``(i) curbline delivery points or 
                        sidewalk delivery points;</DELETED>
                        <DELETED>    ``(ii) centralized delivery 
                        points; and</DELETED>
                        <DELETED>    ``(iii) any other type of delivery 
                        point; and</DELETED>
                <DELETED>    ``(D) for which door delivery was 
                continued under subsection (c)(1);</DELETED>
        <DELETED>    ``(2) estimates the cost savings from the 
        conversions from door delivery that occurred during the 
        preceding fiscal year;</DELETED>
        <DELETED>    ``(3) describes the progress of the Postal Service 
        toward achieving the requirements under subsection (b); 
        and</DELETED>
        <DELETED>    ``(4) provides such additional information as the 
        Postal Service considers appropriate.''.</DELETED>
<DELETED>    (b) Clerical Amendment.--The table of sections for 
subchapter VII of chapter 36 of title 39, United States Code, is 
amended by adding at the end the following:</DELETED>

<DELETED>``3692. Conversion of door delivery points.''.

<DELETED>SEC. 206. LIMITATIONS ON CHANGES TO MAIL DELIVERY 
              SCHEDULE.</DELETED>

<DELETED>    (a) Limitation on Change in Schedule.--Notwithstanding any 
other provision of law--</DELETED>
        <DELETED>    (1) the Postal Service may not establish a 
        general, nationwide 5-day-per-week delivery schedule to street 
        addresses under the authority of the Postal Service under 
        section 3691 of title 39, United States Code, earlier than the 
        date that is 24 months after the date of enactment of this Act; 
        and</DELETED>
        <DELETED>    (2) on or after the date that is 24 months after 
        the date of enactment of this Act, the Postal Service may 
        establish a general, nationwide 5-day-per-week delivery 
        schedule to street addresses under the authority of the Postal 
        Service under section 3691 of title 39, United States Code, 
        only in accordance with the requirements and limitations under 
        this section.</DELETED>
<DELETED>    (b) Preconditions.--If the Postal Service intends to 
establish a change in delivery schedule under subsection (a)(2), the 
Postal Service shall--</DELETED>
        <DELETED>    (1) identify customers and communities for whom 
        the change may have a disproportionate, negative impact, 
        including the customers identified as ``particularly affected'' 
        in the Advisory Opinion on Elimination of Saturday Delivery 
        issued by the Commission on March 24, 2011;</DELETED>
        <DELETED>    (2) develop, to the maximum extent possible, 
        measures to ameliorate any disproportionate, negative impact 
        the change would have on customers and communities identified 
        under paragraph (1), including, where appropriate, providing or 
        expanding access to mailboxes for periodical mailers on days on 
        which the Postal Service does not provide delivery;</DELETED>
        <DELETED>    (3) implement measures to increase revenue and 
        reduce costs, including the measures authorized under the 
        amendments made by sections 101, 102, 103, 104, 204, and 208 of 
        this Act;</DELETED>
        <DELETED>    (4) evaluate whether any increase in revenue or 
        reduction in costs resulting from the measures implemented 
        under paragraph (3) are sufficient to allow the Postal Service, 
        without implementing a change in delivery schedule under 
        subsection (a), to--</DELETED>
                <DELETED>    (A) become profitable by fiscal year 2015; 
                and</DELETED>
                <DELETED>    (B) achieve long-term financial solvency; 
                and</DELETED>
        <DELETED>    (5) not earlier than 15 months after the date of 
        enactment of this Act and not later than 9 months before the 
        effective date proposed by the Postal Service for the change, 
        submit a report on the steps the Postal Service has taken to 
        carry out this subsection to--</DELETED>
                <DELETED>    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate and the Committee on 
                Oversight and Government Reform of the House of 
                Representatives;</DELETED>
                <DELETED>    (B) the Comptroller General of the United 
                States; and</DELETED>
                <DELETED>    (C) the Commission.</DELETED>
<DELETED>    (c) Review.--</DELETED>
        <DELETED>    (1) Government accountability office.--Not later 
        than 3 months after the date on which the Postal Service 
        submits a report under subsection (b)(5), the Comptroller 
        General shall submit to the Commission and to the Committee on 
        Homeland Security and Governmental Affairs of the Senate and 
        the Committee on Oversight and Government Reform of the House 
        of Representatives a report that contains findings relating to 
        each of the following:</DELETED>
                <DELETED>    (A) Whether the Postal Service has 
                adequately complied with subsection (b)(3), taking into 
                consideration the statutory authority of and 
                limitations on the Postal Service.</DELETED>
                <DELETED>    (B) The accuracy of any statement by the 
                Postal Service that the measures implemented under 
                subsection (b)(3) have increased revenues or reduced 
                costs, and the accuracy of any projection by the Postal 
                Service relating to increased revenue or reduced costs 
                resulting from the measures implemented under 
                subsection (b)(3).</DELETED>
                <DELETED>    (C) The adequacy and methodological 
                soundness of any evaluation conducted by the Postal 
                Service under subsection (b)(4) that led the Postal 
                Service to assert the necessity of a change in delivery 
                schedule under subsection (a)(2).</DELETED>
                <DELETED>    (D) Whether, based on an analysis of the 
                measures implemented by the Postal Service to increase 
                revenues and reduce costs, projections of increased 
                revenue and cost savings, and the details of the 
                profitability plan required under section 401, a change 
                in delivery schedule is necessary to allow the Postal 
                Service to--</DELETED>
                        <DELETED>    (i) become profitable by fiscal 
                        year 2015; and</DELETED>
                        <DELETED>    (ii) achieve long-term financial 
                        solvency.</DELETED>
        <DELETED>    (2) Postal regulatory commission.--</DELETED>
                <DELETED>    (A) Request.--Not later than 6 months 
                before the proposed effective date of a change in 
                delivery schedule under subsection (a), the Postal 
                Service shall submit to the Commission a request for an 
                advisory opinion relating to the change.</DELETED>
                <DELETED>    (B) Advisory opinion.--</DELETED>
                        <DELETED>    (i) In general.--The Commission 
                        shall--</DELETED>
                                <DELETED>    (I) issue an advisory 
                                opinion with respect to a request under 
                                subparagraph (A), in accordance with 
                                the time limits for the issuance of 
                                advisory opinions under section 
                                3661(b)(2) of title 39, United States 
                                Code, as amended by this Act; 
                                and</DELETED>
                                <DELETED>    (II) submit the advisory 
                                opinion to the Committee on Homeland 
                                Security and Governmental Affairs of 
                                the Senate and the Committee on 
                                Oversight and Government Reform of the 
                                House of Representatives.</DELETED>
                        <DELETED>    (ii) Required determinations.--An 
                        advisory opinion under clause (i) shall 
                        determine--</DELETED>
                                <DELETED>    (I) whether the measures 
                                developed under subsection (b)(2) 
                                ameliorate any disproportionate, 
                                negative impact that a change in 
                                schedule may have on customers and 
                                communities identified under subsection 
                                (b)(1); and</DELETED>
                                <DELETED>    (II) based on the report 
                                submitted by the Comptroller General 
                                under paragraph (1)--</DELETED>
                                        <DELETED>    (aa) whether the 
                                        Postal Service has implemented 
                                        measures to reduce operating 
                                        losses as required under 
                                        subsection (b)(3);</DELETED>
                                        <DELETED>    (bb) whether the 
                                        implementation of the measures 
                                        described in item (aa) has 
                                        increased revenues or reduced 
                                        costs, or is projected to 
                                        further increase revenues or 
                                        reduce costs in the future; 
                                        and</DELETED>
                                        <DELETED>    (cc) whether a 
                                        change in schedule under 
                                        subsection (a)(2) is necessary 
                                        to allow the Postal Service 
                                        to--</DELETED>

                                                <DELETED>    (AA) 
                                                become profitable by 
                                                fiscal year 2015; 
                                                and</DELETED>

                                                <DELETED>    (BB) 
                                                achieve long-term 
                                                financial 
                                                solvency.</DELETED>

        <DELETED>    (3) Prohibition on implementation of change in 
        schedule.--The Postal Service may not implement a change in 
        delivery schedule under subsection (a)(2)--</DELETED>
                <DELETED>    (A) before the date on which the 
                Comptroller General submits the report required under 
                paragraph (1); and</DELETED>
                <DELETED>    (B) unless the Commission determines under 
                paragraph (2)(B)(ii)(II)(cc) that the Comptroller 
                General has concluded that the change is necessary to 
                allow the Postal Service to become profitable by fiscal 
                year 2015 and to achieve long-term financial solvency, 
                without regard to whether the Commission determines 
                that the change is advisable.</DELETED>
<DELETED>    (d) Additional Limitations.--</DELETED>
        <DELETED>    (1) Rules of construction.--Nothing in this 
        subsection shall be construed to--</DELETED>
                <DELETED>    (A) authorize the reduction, or require an 
                increase, in delivery frequency for any route for which 
                the Postal Service provided delivery on fewer than 6 
                days per week on the date of enactment of this 
                Act;</DELETED>
                <DELETED>    (B) authorize any change in--</DELETED>
                        <DELETED>    (i) the days and times that postal 
                        retail service or any mail acceptance is 
                        available; or</DELETED>
                        <DELETED>    (ii) the locations at which postal 
                        retail service or mail acceptance 
                        occurs;</DELETED>
                <DELETED>    (C) authorize any change in the frequency 
                of delivery to a post office box;</DELETED>
                <DELETED>    (D) prohibit the collection or delivery of 
                a competitive mail product on a weekend or a recognized 
                Federal holiday; or</DELETED>
                <DELETED>    (E) prohibit the Postal Service from 
                exercising its authority to make changes to processing 
                or retail networks.</DELETED>
        <DELETED>    (2) Prohibition on consecutive days without mail 
        delivery.--The Postal Service shall ensure that, under any 
        change in schedule under subsection (a)(2), at no time shall 
        there be more than 2 consecutive days without mail delivery to 
        street addresses, including recognized Federal 
        holidays.</DELETED>

<DELETED>SEC. 207. TIME LIMITS FOR CONSIDERATION OF SERVICE 
              CHANGES.</DELETED>

<DELETED>    Section 3661 of title 39, United States Code, is amended 
by striking subsections (b) and (c) and inserting the 
following:</DELETED>
<DELETED>    ``(b) Proposed Changes for Market-dominant Products.--
</DELETED>
        <DELETED>    ``(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, the Postal Service shall submit a proposal to 
        the Postal Regulatory Commission requesting an advisory opinion 
        on the change.</DELETED>
        <DELETED>    ``(2) Advisory opinion.--Upon receipt of a 
        proposal under paragraph (1), the Postal Regulatory Commission 
        shall--</DELETED>
                <DELETED>    ``(A) provide an opportunity for public 
                comment on the proposal; and</DELETED>
                <DELETED>    ``(B) issue an advisory opinion not later 
                than--</DELETED>
                        <DELETED>    ``(i) 90 days after the date on 
                        which the Postal Regulatory Commission receives 
                        the proposal; or</DELETED>
                        <DELETED>    ``(ii) a date that the Postal 
                        Regulatory Commission and the Postal Service 
                        may, not later than 1 week after the date on 
                        which the Postal Regulatory Commission receives 
                        the proposal, determine jointly.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(4) Action on proposal.--The Postal Service may 
        take action regarding a proposal submitted under paragraph 
        (1)--</DELETED>
                <DELETED>    ``(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);</DELETED>
                <DELETED>    ``(B) on or after a date that the Postal 
                Regulatory Commission and the Postal Service may, not 
                later than 1 week after the date on which the Postal 
                Regulatory Commission receives a proposal under 
                paragraph (2), determine jointly; or</DELETED>
                <DELETED>    ``(C) after the date described in 
                paragraph (2)(B), if--</DELETED>
                        <DELETED>    ``(i) the Postal Regulatory 
                        Commission fails to issue an advisory opinion 
                        on or before the date described in paragraph 
                        (2)(B); and</DELETED>
                        <DELETED>    ``(ii) the action is not otherwise 
                        prohibited under Federal law.</DELETED>
        <DELETED>    ``(5) Modification of timeline.--At any time, the 
        Postal Service and the Postal Regulatory Commission may jointly 
        redetermine a date determined under paragraph (2)(B)(ii) or 
        (4)(B).''.</DELETED>

<DELETED>SEC. 208. PUBLIC PROCEDURES FOR SIGNIFICANT CHANGES TO MAILING 
              SPECIFICATIONS.</DELETED>

<DELETED>    (a) Notice and Opportunity for Comment Required.--
Effective on the date on which the Postal Service issues a final rule 
under subsection (c), before making a change to mailing specifications 
that could pose a significant burden to the customers of the Postal 
Service and that is not reviewed by the Commission, the Postal Service 
shall--</DELETED>
        <DELETED>    (1) publish a notice of the proposed change to the 
        specification in the Federal Register;</DELETED>
        <DELETED>    (2) provide an opportunity for the submission of 
        written comments concerning the proposed change for a period of 
        not less than 30 days;</DELETED>
        <DELETED>    (3) after considering any comments submitted under 
        paragraph (2) and making any modifications to the proposed 
        change that the Postal Service determines are necessary, 
        publish--</DELETED>
                <DELETED>    (A) the final change to the specification 
                in the Federal Register;</DELETED>
                <DELETED>    (B) responses to any comments submitted 
                under paragraph (2); and</DELETED>
                <DELETED>    (C) an analysis of the financial impact 
                that the proposed change would have on--</DELETED>
                        <DELETED>    (i) the Postal Service; 
                        and</DELETED>
                        <DELETED>    (ii) the customers of the Postal 
                        Service that would be affected by the proposed 
                        change; and</DELETED>
        <DELETED>    (4) establish an effective date for the change to 
        mailing specifications that is not earlier than 30 days after 
        the date on which the Postal Service publishes the final change 
        under paragraph (3).</DELETED>
<DELETED>    (b) Exception for Good Cause.--If the Postal Service 
determines that there is an urgent and compelling need for a change to 
a mailing specification described in subsection (a) in order to avoid 
demonstrable harm to the operations of the Postal Service or to the 
public interest, the Postal Service may--</DELETED>
        <DELETED>    (1) change the mailing specifications by--
        </DELETED>
                <DELETED>    (A) issuing an interim final rule that--
                </DELETED>
                        <DELETED>    (i) includes a finding by the 
                        Postal Service that there is good cause for the 
                        interim final rule;</DELETED>
                        <DELETED>    (ii) provides an opportunity for 
                        the submission of written comments on the 
                        interim final rule for a period of not less 
                        than 30 days; and</DELETED>
                        <DELETED>    (iii) establishes an effective 
                        date for the interim final rule that is not 
                        earlier than 30 days after the date on which 
                        the interim final rule is issued; and</DELETED>
                <DELETED>    (B) publishing in the Federal Register a 
                response to any comments submitted under subparagraph 
                (A)(ii); and</DELETED>
        <DELETED>    (2) waive the requirement under paragraph 
        (1)(A)(iii) or subsection (a)(4).</DELETED>
<DELETED>    (c) Rules Relating to Notice and Comment.--</DELETED>
        <DELETED>    (1) In general.--Not later than 180 days after the 
        date of enactment of this Act, the Postal Service shall issue 
        rules governing the provision of notice and opportunity for 
        comment for changes in mailing specifications under subsection 
        (a).</DELETED>
        <DELETED>    (2) Rules.--In issuing the rules required under 
        paragraph (1), the Postal Service shall--</DELETED>
                <DELETED>    (A) publish a notice of proposed 
                rulemaking in the Federal Register that includes 
                proposed definitions of the terms ``mailing 
                specifications'' and ``significant burden'';</DELETED>
                <DELETED>    (B) provide an opportunity for the 
                submission of written comments concerning the proposed 
                change for a period of not less than 30 days; 
                and</DELETED>
                <DELETED>    (C) publish--</DELETED>
                        <DELETED>    (i) the rule in final form in the 
                        Federal Register; and</DELETED>
                        <DELETED>    (ii) responses to the comments 
                        submitted under subparagraph (B).</DELETED>

<DELETED>SEC. 209. NONPOSTAL PRODUCTS AND SERVICES.</DELETED>

<DELETED>    (a) In General.--Section 404 of title 39, United States 
Code, is amended--</DELETED>
        <DELETED>    (1) in subsection (a)--</DELETED>
                <DELETED>    (A) by redesignating paragraphs (6) 
                through (8) as paragraphs (7) through (9), 
                respectively; and</DELETED>
                <DELETED>    (B) by inserting after paragraph (5) the 
                following:</DELETED>
        <DELETED>    ``(6) after the date of enactment of the 21st 
        Century Postal Service Act of 2011, and except as provided in 
        subsection (e), to provide other services that are not postal 
        services, after the Postal Regulatory Commission--</DELETED>
                <DELETED>    ``(A) makes a determination that the 
                provision of such services--</DELETED>
                        <DELETED>    ``(i) uses the processing, 
                        transportation, delivery, retail network, or 
                        technology of the Postal Service;</DELETED>
                        <DELETED>    ``(ii) is consistent with the 
                        public interest and a demonstrated or potential 
                        public demand for--</DELETED>
                                <DELETED>    ``(I) the Postal Service 
                                to provide the services instead of 
                                another entity providing the services; 
                                or</DELETED>
                                <DELETED>    ``(II) the Postal Service 
                                to provide the services in addition to 
                                another entity providing the 
                                services;</DELETED>
                        <DELETED>    ``(iii) would not create unfair 
                        competition with the private sector; 
                        and</DELETED>
                        <DELETED>    ``(iv) has the potential to 
                        improve the net financial position of the 
                        Postal Service, based on a market analysis 
                        provided to the Postal Regulatory Commission by 
                        the Postal Service; and</DELETED>
                <DELETED>    ``(B) for services that the Postal 
                Regulatory Commission determines meet the criteria 
                under subparagraph (A), 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</DELETED>
        <DELETED>    (2) in subsection (e)(2), by striking ``Nothing'' 
        and all that follows through ``except that the'' and inserting 
        ``The''.</DELETED>
<DELETED>    (b) Market Analysis.--During the 5-year period beginning 
on the date of enactment of this Act, the Postal Service shall submit a 
copy of any market analysis provided to the Commission under section 
404(a)(6)(A)(iv) of title 39, United States Code, as amended by this 
section, to the Committee on Homeland Security and Governmental Affairs 
of the Senate and the Committee on Oversight and Government Reform of 
the House of Representatives.</DELETED>

   <DELETED>TITLE III--FEDERAL EMPLOYEES' COMPENSATION ACT</DELETED>

<DELETED>SEC. 301. SHORT TITLE; REFERENCES.</DELETED>

<DELETED>    (a) Short Title.--This title may be cited as the 
``Workers' Compensation Reform Act of 2011''.</DELETED>
<DELETED>    (b) References.--Except as otherwise expressly provided, 
whenever in this title an amendment or repeal is expressed in terms of 
an amendment to, or a repeal of, a section or other provision, the 
reference shall be considered to be made to a section or other 
provision of title 5, United States Code.</DELETED>

<DELETED>SEC. 302. FEDERAL WORKERS COMPENSATION REFORMS FOR RETIREMENT-
              AGE EMPLOYEES.</DELETED>

<DELETED>    (a) Conversion of Entitlement at Retirement Age.--
</DELETED>
        <DELETED>    (1) Definitions.--Section 8101 is 
        amended</DELETED>
                <DELETED>    (A) in paragraph (18), by striking ``and'' 
                at the end;</DELETED>
                <DELETED>    (B) in paragraph (19), by striking ``and'' 
                at the end;</DELETED>
                <DELETED>    (C) in paragraph (20), by striking the 
                period at the end and inserting a semicolon; 
                and</DELETED>
                <DELETED>    (D) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(21) `retirement age' has the meaning given that 
        term under section 216(l)(1) of the Social Security Act (42 
        U.S.C. 416(l)(1));</DELETED>
        <DELETED>    ``(22) `covered claim for total disability' means 
        a claim for a period of total disability that commenced before 
        the date of enactment of the Workers' Compensation Reform Act 
        of 2011;</DELETED>
        <DELETED>    ``(23) `covered claim for partial disability' 
        means a claim for a period of partial disability that commenced 
        before the date of enactment of the Workers' Compensation 
        Reform Act of 2011; and</DELETED>
        <DELETED>    ``(24) `individual who has an exempt disability 
        condition' means an individual--</DELETED>
                <DELETED>    ``(A) who--</DELETED>
                        <DELETED>    ``(i) is eligible to receive 
                        continuous periodic compensation for total 
                        disability under section 8105 on the date of 
                        enactment of the Workers' Compensation Reform 
                        Act of 2011; and</DELETED>
                        <DELETED>    ``(ii) meets the criteria under 
                        8105(c);</DELETED>
                <DELETED>    ``(B) who, on the date of enactment of the 
                Workers' Compensation Reform Act of 2011--</DELETED>
                        <DELETED>    ``(i) is eligible to receive 
                        continuous periodic compensation for total 
                        disability under section 8105; and</DELETED>
                        <DELETED>    ``(ii) has sustained a currently 
                        irreversible severe mental or physical 
                        disability for which the Secretary of Labor has 
                        authorized, for at least the 1 year period 
                        ending on the date of enactment of the Workers' 
                        Compensation Reform Act of 2011, constant in-
                        home care or custodial care, such as in 
                        placement in a nursing home; or</DELETED>
                <DELETED>    ``(C) who is eligible to receive 
                continuous periodic compensation for total disability 
                under section 8105--</DELETED>
                        <DELETED>    ``(i) for not less than the 3-year 
                        period ending on the date of enactment of the 
                        Workers' Compensation Reform Act of 2011; 
                        or</DELETED>
                        <DELETED>    ``(ii) if the individual became 
                        eligible to receive continuous periodic 
                        compensation for total disability under section 
                        8105 during the period beginning on the date 
                        that is 3 years before the date of enactment of 
                        the Workers' Compensation Reform Act of 2011 
                        and ending on such date of enactment, for not 
                        less than the 3-year period beginning on the 
                        date on which the individual became 
                        eligible.''.</DELETED>
        <DELETED>    (2) Total disability.--Section 8105 is amended--
        </DELETED>
                <DELETED>    (A) in subsection (a), by striking ``If'' 
                and inserting ``In General.--Subject to subsection (b), 
                if'';</DELETED>
                <DELETED>    (B) by redesignating subsection (b) as 
                subsection (c); and</DELETED>
                <DELETED>    (C) by inserting after subsection (a) the 
                following:</DELETED>
<DELETED>    ``(b) Conversion of Entitlement at Retirement Age.--
</DELETED>
        <DELETED>    ``(1) In general.--Except as provided in paragraph 
        (2), the basic compensation for total disability for an 
        employee who has attained retirement age shall be 50 percent of 
        the monthly pay of the employee.</DELETED>
        <DELETED>    ``(2) Exceptions.--</DELETED>
                <DELETED>    ``(A) Covered recipients who are 
                retirement age or have an exempt disability 
                condition.--Paragraph (1) shall not apply to a covered 
                claim for total disability by an employee if the 
                employee--</DELETED>
                        <DELETED>    ``(i) on the date of enactment of 
                        the Workers' Compensation Reform Act of 2011, 
                        has attained retirement age; or</DELETED>
                        <DELETED>    ``(ii) is an individual who has an 
                        exempt disability condition.</DELETED>
                <DELETED>    ``(B) Transition period for certain 
                employees.--For a covered claim for total disability by 
                an employee who is not an employee described in 
                subparagraph (A), the employee shall receive the basic 
                compensation for total disability provided under 
                subsection (a) until the later of--</DELETED>
                        <DELETED>    ``(i) the date on which the 
                        employee attains retirement age; and</DELETED>
                        <DELETED>    ``(ii) the date that is 3 years 
                        after the date of enactment of the Workers' 
                        Compensation Reform Act of 2011.''.</DELETED>
        <DELETED>    (3) Partial disability.--Section 8106 is amended--
        </DELETED>
                <DELETED>    (A) in subsection (a), by striking ``If'' 
                and inserting ``In General.--Subject to subsection (b), 
                if'';</DELETED>
                <DELETED>    (B) by redesignating subsections (b) and 
                (c) as subsections (c) and (d), respectively; 
                and</DELETED>
                <DELETED>    (C) by inserting after subsection (a) the 
                following:</DELETED>
<DELETED>    ``(b) Conversion of Entitlement at Retirement Age.--
</DELETED>
        <DELETED>    ``(1) In general.--Except as provided in paragraph 
        (2), the basic compensation for partial disability for an 
        employee who has attained retirement age shall be 50 percent of 
        the difference between the monthly pay of the employee and the 
        monthly wage-earning capacity of the employee after the 
        beginning of the partial disability.</DELETED>
        <DELETED>    ``(2) Exceptions.--</DELETED>
                <DELETED>    ``(A) Covered recipients who are 
                retirement age.--Paragraph (1) shall not apply to a 
                covered claim for partial disability by an employee if, 
                on the date of enactment of theWorkers' Compensation 
                Reform Act of 2011, the employee has attained 
                retirement age.</DELETED>
                <DELETED>    ``(B) Transition period for certain 
                employees.--For a covered claim for partial disability 
                by an employee who is not an employee described in 
                subparagraph (A), the employee shall receive basic 
                compensation for partial disability in accordance with 
                subsection (a) until the later of--</DELETED>
                        <DELETED>    ``(i) the date on which the 
                        employee attains retirement age; and</DELETED>
                        <DELETED>    ``(ii) the date that is 3 years 
                        after the date of enactment of the Workers' 
                        Compensation Reform Act of 2011.''.</DELETED>

<DELETED>SEC. 303. AUGMENTED COMPENSATION FOR DEPENDENTS.</DELETED>

<DELETED>    (a) In General.--Section 8110 is amended--</DELETED>
        <DELETED>    (1) by redesignating subsection (b) as subsection 
        (c); and</DELETED>
        <DELETED>    (2) by inserting after subsection (a) the 
        following:</DELETED>
<DELETED>    ``(b) Termination of Augmented Compensation.--</DELETED>
        <DELETED>    ``(1) In general.--Subject to paragraph (2), 
        augmented compensation for dependants under subsection (c) 
        shall not be provided.</DELETED>
        <DELETED>    ``(2) Exceptions.--</DELETED>
                <DELETED>    ``(A) Total disability.--For a covered 
                claim for total disability by an employee--</DELETED>
                        <DELETED>    ``(i) the employee shall receive 
                        augmented compensation under subsection (c) if 
                        the employee is an individual who has an exempt 
                        disability condition; and</DELETED>
                        <DELETED>    ``(ii) the employee shall receive 
                        augmented compensation under subsection (c) 
                        until the date that is 3 years after the date 
                        of enactment of the Workers' Compensation 
                        Reform Act of 2011 if the employee is not an 
                        employee described in clause (i).</DELETED>
                <DELETED>    ``(B) Partial disability.--For a covered 
                claim for partial disability by an employee, the 
                employee shall receive augmented compensation under 
                subsection (c) until the date that is 3 years after the 
                date of enactment of the Workers' Compensation Reform 
                Act of 2011.</DELETED>
                <DELETED>    ``(C) Permanent disability compensated by 
                a schedule.--For a claim for a permanent disability 
                described in section 8107(a) by an employee that 
                commenced before the date of enactment of the Workers' 
                Compensation Reform Act of 2011, the employee shall 
                receive augmented compensation under subsection 
                (c).''.</DELETED>
<DELETED>    (b) Maximum and Minimum Monthly Payments.--Section 8112 is 
amended--</DELETED>
        <DELETED>    (1) in subsection (a)--</DELETED>
                <DELETED>    (A) by inserting ``subsections (b) and (c) 
                and'' before ``section 8138'';</DELETED>
                <DELETED>    (B) by striking ``including augmented 
                compensation under section 8110 of this title but''; 
                and</DELETED>
                <DELETED>    (C) by striking ``75 percent'' each place 
                it appears and inserting ``66 </DELETED>\<DELETED>2/
                3</DELETED>\ <DELETED>percent'';</DELETED>
        <DELETED>    (2) by redesignating subsection (b) as subsection 
        (c);</DELETED>
        <DELETED>    (3) by inserting after subsection (a) the 
        following:</DELETED>
<DELETED>    ``(b) Exceptions.--</DELETED>
        <DELETED>    ``(1) Covered disability condition.--For a covered 
        claim for total disability by an employee, if the employee is 
        an individual who has an exempt disability condition--
        </DELETED>
                <DELETED>    ``(A) the monthly rate of compensation for 
                disability that is subject to the maximum and minimum 
                monthly amounts under subsection (a) shall include any 
                augmented compensation under section 8110; 
                and</DELETED>
                <DELETED>    ``(B) subsection (a) shall be applied by 
                substituting `75 percent' for `66 
                </DELETED>\<DELETED>2/3</DELETED>\ <DELETED>percent' 
                each place it appears.</DELETED>
        <DELETED>    ``(2) Partial disability.--For a covered claim for 
        partial disability by an employee, until the date that is 3 
        years after the date of enactment of the Workers' Compensation 
        Reform Act of 2011--</DELETED>
                <DELETED>    ``(A) the monthly rate of compensation for 
                disability that is subject to the maximum and minimum 
                monthly amounts under subsection (a) shall include any 
                augmented compensation under section 8110; 
                and</DELETED>
                <DELETED>    ``(B) subsection (a) shall be applied by 
                substituting `75 percent' for `66 
                </DELETED>\<DELETED>2/3</DELETED>\ <DELETED>percent' 
                each place it appears.''; and</DELETED>
        <DELETED>    (4) in subsection (c), as redesignated by 
        paragraph (2), by striking ``subsection (a)'' and inserting 
        ``subsections (a) and (b)''.</DELETED>
<DELETED>    (c) Death Benefits Generally.--Section 8133 is amended--
</DELETED>
        <DELETED>    (1) in subsections (a) and (e), by striking ``75 
        percent'' each place it appears and inserting ``66 
        </DELETED>\<DELETED>2/3</DELETED>\ <DELETED>percent (except as 
        provided in subsection (g))''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(g) If the death occurred before the date of enactment 
of the Workers' Compensation Reform Act of 2011, subsections (a) and 
(e) shall be applied by substituting `75 percent' for `66 
</DELETED>\<DELETED>2/3</DELETED>\ <DELETED>percent' each place it 
appears.''.</DELETED>
<DELETED>    (d) Death Benefits for Civil Air Patrol Volunteers.--
Section 8141 is amended--</DELETED>
        <DELETED>    (1) in subsection (b)(2)(B) by striking ``75 
        percent'' and inserting ``66 </DELETED>\<DELETED>2/3</DELETED>\ 
        <DELETED>percent (except as provided in subsection 
        (c))'';</DELETED>
        <DELETED>    (2) by redesignating subsection (c) as subsection 
        (d); and</DELETED>
        <DELETED>    (3) by inserting after subsection (b) the 
        following:</DELETED>
<DELETED>    ``(c) If the death occurred before the date of enactment 
of the Workers' Compensation Reform Act of 2011, subsection (b)(2)(B) 
shall be applied by substituting `75 percent' for `66 
</DELETED>\<DELETED>2/3</DELETED>\ <DELETED>percent'.''.</DELETED>

<DELETED>SEC. 304. SCHEDULE COMPENSATION PAYMENTS.</DELETED>

<DELETED>    Section 8107 is amended--</DELETED>
        <DELETED>    (1) in subsection (a), by striking ``at the rate 
        of 66 2/3 percent of his monthly pay'' and inserting ``at the 
        rate specified under subsection (d)''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(d) Rate for Compensation.--</DELETED>
        <DELETED>    ``(1) Annual salary.--</DELETED>
                <DELETED>    ``(A) In general.--Except as provided in 
                paragraph (2), the rate under subsection (a) shall be 
                the rate of 66 </DELETED>\<DELETED>2/3</DELETED>\ 
                <DELETED>percent of the annual salary level established 
                under subparagraph (B), in a lump sum equal to the 
                present value (as calculated under subparagraph (C)) of 
                the amount of compensation payable under the 
                schedule.</DELETED>
                <DELETED>    ``(B) Establishment.--</DELETED>
                        <DELETED>    ``(i) In general.--The Secretary 
                        of Labor shall establish an annual salary for 
                        purposes of subparagraph (A) in the amount the 
                        Secretary determines will result in the 
                        aggregate cost of payments made under this 
                        section being equal to what would have been the 
                        aggregate cost of payments under this section 
                        if the amendments made by section 304(a) of the 
                        Workers' Compensation Reform Act of 2011 had 
                        not been enacted.</DELETED>
                        <DELETED>    ``(ii) Cost of living 
                        adjustment.--The annual salary established 
                        under clause (i) shall be increased on March 1 
                        of each year by the amount determined by the 
                        Secretary of Labor to represent the percent 
                        change in the price index published for 
                        December of the preceding year over the price 
                        index published for the December of the year 
                        prior to the preceding year, adjusted to the 
                        nearest one-tenth of 1 percent.</DELETED>
                <DELETED>    ``(C) Present value.--The Secretary of 
                Labor shall calculate the present value for purposes of 
                subparagraph (A) using a rate of interest equal to the 
                average market yield for outstanding marketable 
                obligations of the United States with a maturity of 2 
                years on the first business day of the month in which 
                the compensation is paid or, in the event that such 
                marketable obligations are not being issued on such 
                date, at an equivalent rate selected by the Secretary 
                of Labor, true discount compounded annually.</DELETED>
        <DELETED>    ``(2) Certain injuries.--For an injury that 
        occurred before the date of enactment of the Workers' 
        Compensation Reform Act of 2011, the rate under subsection (a) 
        shall be 66 </DELETED>\<DELETED>2/3</DELETED>\ <DELETED>percent 
        of the employee's monthly pay.</DELETED>
<DELETED>    ``(e) Simultaneous Receipt.--</DELETED>
        <DELETED>    ``(1) Total disability.--An employee who receives 
        compensation for total disability under section 8105 may only 
        receive the lump sum of schedule compensation under this 
        section in addition to and simultaneously with the benefits for 
        total disability after the later of--</DELETED>
                <DELETED>    ``(A) the date on which the basic 
                compensation for total disability of the employee 
                becomes 50 percent of the monthly pay of the employee 
                under section 8105(b); or</DELETED>
                <DELETED>    ``(B) the date on which augmented 
                compensation of the employee terminates under section 
                8110(b)(2)(A)(ii), if the employee receives such 
                compensation.</DELETED>
        <DELETED>    ``(2) Partial disability.--An employee who 
        receives benefits for partial disability under section 8106 may 
        only receive the lump sum of schedule compensation under this 
        section in addition to and simultaneously with the benefits for 
        partial disability after the later of--</DELETED>
                <DELETED>    ``(A) the date on which the basic 
                compensation for partial disability of the employee 
                becomes 50 percent of the difference between the 
                monthly pay of the employee and the monthly wage-
                earning capacity of the employee after the beginning of 
                the partial disability under section 8106(b); 
                or</DELETED>
                <DELETED>    ``(B) the date on which augmented 
                compensation of the employee terminates under section 
                8110(b)(2)(B), if the employee receives such 
                compensation.''.</DELETED>

<DELETED>SEC. 305. VOCATIONAL REHABILITATION.</DELETED>

<DELETED>    (a) In General.--Section 8104 is amended--</DELETED>
        <DELETED>    (1) in subsection (a)--</DELETED>
                <DELETED>    (A) by striking ``(a) The Secretary of 
                Labor may'' and all that follows through ``undergo 
                vocational rehabilitation.'' and inserting the 
                following:</DELETED>
<DELETED>    ``(a) In General.--</DELETED>
        <DELETED>    ``(1) Direction.--Except as provided in paragraph 
        (2), not earlier than the date that is 6 months after the date 
        on which an individual eligible for wage-loss compensation 
        under section 8105 or 8106 is injured, or by such other date as 
        the Secretary of Labor determines it would be reasonable under 
        the circumstances for the individual to begin vocational 
        rehabilitation, and if vocational rehabilitation may enable the 
        individual to become capable of more gainful employment, the 
        Secretary of Labor shall direct the individual to participate 
        in developing a comprehensive return to work plan and to 
        undergo vocational rehabilitation at a location a reasonable 
        distance from the residence of the individual.'';</DELETED>
                <DELETED>    (B) by striking ``the Secretary of Health, 
                Education, and Welfare in carrying out the purposes of 
                chapter 4 of title 29'' and inserting ``the Secretary 
                of Education in carrying out the purposes of the 
                Rehabilitation Act of 1973 (29 U.S.C. 701 et 
                seq.)'';</DELETED>
                <DELETED>    (C) by striking ``under section 32(b)(1) 
                of title 29'' and inserting ``under section 5 of the 
                Rehabilitation Act of 1973 (29 U.S.C. 704)''; 
                and</DELETED>
                <DELETED>    (D) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(2) Exception.--The Secretary of Labor may not 
        direct an individual who has attained retirement age to 
        participate in developing a comprehensive return to work plan 
        or to undergo vocational rehabilitation.'';</DELETED>
        <DELETED>    (2) by redesignating subsection (b) as subsection 
        (c);</DELETED>
        <DELETED>    (3) by inserting after subsection (a) the 
        following:</DELETED>
<DELETED>    ``(b) Contents of Return to Work Plan.--A return to work 
plan developed under subsection (a)--</DELETED>
        <DELETED>    ``(1) shall--</DELETED>
                <DELETED>    ``(A) set forth specific measures designed 
                to increase the wage-earning capacity of an 
                individual;</DELETED>
                <DELETED>    ``(B) take into account the prior training 
                and education of the individual and the training, 
                educational, and employment opportunities reasonably 
                available to the individual; and</DELETED>
                <DELETED>    ``(C) provide that any employment 
                undertaken by the individual under the return to work 
                plan be at a location a reasonable distance from the 
                residence of the individual;</DELETED>
        <DELETED>    ``(2) may provide that the Secretary will pay out 
        of amounts in the Employees' Compensation Fund reasonable 
        expenses of vocational rehabilitation (which may include 
        tuition, books, training fees, supplies, equipment, and child 
        or dependent care) during the course of the plan; and</DELETED>
        <DELETED>    ``(3) may not be for a period of more than 2 
        years, unless the Secretary finds good cause to grant an 
        extension, which may be for not more than 2 years.'';</DELETED>
        <DELETED>    (4) in subsection (c), as so redesignated--
        </DELETED>
                <DELETED>    (A) by inserting ``Compensation.--'' 
                before ``Notwithstanding''; and</DELETED>
                <DELETED>    (B) by striking ``, other than employment 
                undertaken pursuant to such rehabilitation''; 
                and</DELETED>
        <DELETED>    (5) by adding at the end the following:</DELETED>
<DELETED>    ``(d) Assisted Reemployment Agreements.--</DELETED>
        <DELETED>    ``(1) In general.--The Secretary may enter into an 
        assisted reemployment agreement with an agency or 
        instrumentality of any branch of the Federal Government or a 
        State or local government or a private employer that employs an 
        individual eligible for wage-loss compensation under section 
        8105 or 8106 to enable the individual to return to productive 
        employment.</DELETED>
        <DELETED>    ``(2) Contents.--An assisted reemployment 
        agreement under paragraph (1)--</DELETED>
                <DELETED>    ``(A) may provide that the Secretary will 
                use amounts in the Employees' Compensation Fund to 
                reimburse an employer in an amount equal to not more 
                than 100 percent of the compensation the individual 
                would otherwise receive under section 8105 or 8106; 
                and</DELETED>
                <DELETED>    ``(B) may not be for a period of more than 
                3 years.</DELETED>
<DELETED>    ``(e) List.--To facilitate the hiring of individuals 
eligible for wage-loss compensation under section 8105 or 8106, the 
Secretary shall provide a list of such individuals to the Office of 
Personnel Management, which the Office of Personnel Management shall 
provide to all agencies and instrumentalities of the Federal 
Government.''.</DELETED>
<DELETED>    (b) Termination of Vocational Rehabilitation Requirement 
After Retirement Age.--Section 8113(b) is amended by adding at the end 
the following: ``An individual who has attained retirement age may not 
be required to undergo vocational rehabilitation.''.</DELETED>
<DELETED>    (c) Mandatory Benefit Reduction for Noncompliance.--
Section 8113(b) is amended by striking ``may reduce'' and inserting 
``shall reduce''.</DELETED>
<DELETED>    (d) Technical and Conforming Amendments.--</DELETED>
        <DELETED>    (1) In general.--Subchapter III of chapter 15 of 
        title 31, United States Code, is amended by adding at the end 
        the following:</DELETED>
<DELETED>``Sec. 1538. Authorization for assisted reemployment</DELETED>
<DELETED>    ``Funds may be transferred from the Employees' 
Compensation Fund established under section 8147 of title 5 to the 
applicable appropriations account for an agency or instrumentality of 
any branch of the Federal Government for the purposes of reimbursing 
the agency or instrumentality in accordance with an assisted 
reemployment agreement entered into under section 8104 of title 
5.''.</DELETED>
        <DELETED>    (2) Table of sections.--The table of sections for 
        chapter 15 of title 31, United States Code, is amended by 
        inserting after the item relating to section 1537 the 
        following:</DELETED>

<DELETED>``1538. Authorization for assisted reemployment.''.

<DELETED>SEC. 306. REPORTING REQUIREMENTS.</DELETED>

<DELETED>    (a) In General.--Chapter 81 is amended by inserting after 
section 8106 the following:</DELETED>
<DELETED>``Sec. 8106a. Reporting requirements</DELETED>
<DELETED>    ``(a) Definition.--In this section, the term `employee 
receiving compensation' means an employee who--</DELETED>
        <DELETED>    ``(1) is paid compensation under section 8105 or 
        8106; and</DELETED>
        <DELETED>    ``(2) has not attained retirement age.</DELETED>
<DELETED>    ``(b) Authority.--The Secretary of Labor shall require an 
employee receiving compensation to report the earnings of the employee 
receiving compensation from employment or self-employment, by affidavit 
or otherwise, in the manner and at the times the Secretary 
specifies.</DELETED>
<DELETED>    ``(c) Contents.--An employee receiving compensation shall 
include in a report required under subsection (a) the value of housing, 
board, lodging, and other advantages which are part of the earnings of 
the employee receiving compensation in employment or self-employment 
and the value of which can be estimated.</DELETED>
<DELETED>    ``(d) Failure To Report and False Reports.--</DELETED>
        <DELETED>    ``(1) In general.--An employee receiving 
        compensation who fails to make an affidavit or other report 
        required under subsection (b) or who knowingly omits or 
        understates any part of the earnings of the employee in such an 
        affidavit or other report shall forfeit the right to 
        compensation with respect to any period for which the report 
        was required.</DELETED>
        <DELETED>    ``(2) Forfeited compensation.--Compensation 
        forfeited under this subsection, if already paid to the 
        employee receiving compensation, shall be recovered by a 
        deduction from the compensation payable to the employee or 
        otherwise recovered under section 8129, unless recovery is 
        waived under that section.''.</DELETED>
<DELETED>    (b) Technical and Conforming Amendments.--The table of 
sections for chapter 81 is amended by inserting after the item relating 
to section 8106 the following:</DELETED>

<DELETED>``8106a. Reporting requirements.''.

<DELETED>SEC. 307. DISABILITY MANAGEMENT REVIEW; INDEPENDENT MEDICAL 
              EXAMINATIONS.</DELETED>

<DELETED>    Section 8123 is amended by adding at the end the 
following:</DELETED>
<DELETED>    ``(e) Disability Management Review.--</DELETED>
        <DELETED>    ``(1) Definitions.--In this subsection--</DELETED>
                <DELETED>    ``(A) the term `covered employee' means an 
                employee who is in continuous receipt of compensation 
                for total disability under section 8105 for a period of 
                not less than 6 months; and</DELETED>
                <DELETED>    ``(B) the term `disability management 
                review process' means the disability management review 
                process established under paragraph (2)(A).</DELETED>
        <DELETED>    ``(2) Establishment.--The Secretary of Labor 
        shall--</DELETED>
                <DELETED>    ``(A) establish a disability management 
                review process for the purpose of certifying and 
                monitoring the disability status and extent of injury 
                of each covered employee; and</DELETED>
                <DELETED>    ``(B) promulgate regulations for the 
                administration of the disability management review 
                process.</DELETED>
        <DELETED>    ``(3) Physical examinations required.--Under the 
        disability management review process, the Secretary of Labor 
        shall periodically require covered employees to submit to 
        physical examinations under subsection (a) by physicians 
        selected by the Secretary. A physician conducting a physical 
        examination of a covered employee shall submit to the Secretary 
        a report regarding the nature and extent of the injury to and 
        disability of the covered employee.</DELETED>
        <DELETED>    ``(4) Frequency.--</DELETED>
                <DELETED>    ``(A) In general.--The regulations 
                promulgated under paragraph (2)(B) shall specify the 
                process and criteria for determining when and how 
                frequently a physical examination should be conducted 
                for a covered employee.</DELETED>
                <DELETED>    ``(B) Minimum frequency.--</DELETED>
                        <DELETED>    ``(i) Initial.--An initial 
                        physical examination shall be conducted not 
                        more than a brief period after the date on 
                        which a covered employee has been in continuous 
                        receipt of compensation for total disability 
                        under section 8015 for 6 months.</DELETED>
                        <DELETED>    ``(ii) Subsequent examinations.--
                        After the initial physical examination, 
                        physical examinations of a covered employee 
                        shall be conducted not less than once every 3 
                        years.</DELETED>
        <DELETED>    ``(5) Employing agency or instrumentality 
        requests.--</DELETED>
                <DELETED>    ``(A) In general.--The agency or 
                instrumentality employing an employee who has made a 
                claim for compensation for total disability under 
                section 8105 may at any time submit a request for the 
                Secretary of Labor to promptly require the employee to 
                submit to a physical examination under this 
                subsection.</DELETED>
                <DELETED>    ``(B) Requesting officer.--A request under 
                subparagraph (A) shall be made on behalf of an agency 
                or instrumentality by--</DELETED>
                        <DELETED>    ``(i) the head of the agency or 
                        instrumentality;</DELETED>
                        <DELETED>    ``(ii) the Chief Human Capital 
                        Officer of the agency or instrumentality; 
                        or</DELETED>
                        <DELETED>    ``(iii) if the agency or 
                        instrumentality does not have a Chief Human 
                        Capital Officer, an officer with 
                        responsibilities similar to those of a Chief 
                        Human Capital Officer designated by the head of 
                        the agency or instrumentality to make requests 
                        under this paragraph.</DELETED>
                <DELETED>    ``(C) Information.--A request under 
                subparagraph (A) shall be in writing and accompanied 
                by--</DELETED>
                        <DELETED>    ``(i) a certification by the 
                        officer making the request that the officer has 
                        reviewed the relevant material in the 
                        employee's file;</DELETED>
                        <DELETED>    ``(ii) an explanation of why the 
                        officer has determined, based on the materials 
                        in the file and other information known to the 
                        officer, that requiring a physical examination 
                        of the employee under this subsection is 
                        necessary; and</DELETED>
                        <DELETED>    ``(iii) copies of the materials 
                        relating to the employee that are relevant to 
                        the officer's determination and request, unless 
                        the agency or instrumentality has a reasonable 
                        basis for not providing the 
                        materials.</DELETED>
                <DELETED>    ``(D) Examination.--If the Secretary of 
                Labor receives a request under this paragraph before an 
                employee has undergone an initial physical examination 
                under paragraph (4)(B)(i), the Secretary shall promptly 
                require the physical examination of the employee. A 
                physical examination under this subparagraph shall 
                satisfy the requirement under paragraph (4)(B)(i) that 
                an initial physical examination be conducted.</DELETED>
                <DELETED>    ``(E) After initial examination.--
                </DELETED>
                        <DELETED>    ``(i) In general.--If the 
                        Secretary of Labor receives a request under 
                        this paragraph after an employee has undergone 
                        an initial physical examination under paragraph 
                        (4)(B)(i), the Secretary shall--</DELETED>
                                <DELETED>    ``(I) review the request 
                                and the information, explanation, and 
                                other materials submitted with the 
                                request; and</DELETED>
                                <DELETED>    ``(II) determine whether 
                                to require the physical examination of 
                                the employee who is the subject of the 
                                request.</DELETED>
                        <DELETED>    ``(ii) Not granted.--If the 
                        Secretary determines not to grant a request 
                        described in clause (i), the Secretary shall 
                        promptly notify the officer who made the 
                        request and provide an explanation of the 
                        reasons why the request was 
                        denied.''.</DELETED>

<DELETED>SEC. 308. WAITING PERIOD.</DELETED>

<DELETED>    (a) In General.--Section 8117 is amended--</DELETED>
        <DELETED>    (1) in the section heading, by striking ``Time of 
        accrual of right'' and inserting ``Waiting period'';</DELETED>
        <DELETED>    (2) in subsection (a)--</DELETED>
                <DELETED>    (A) in the matter preceding paragraph (1), 
                by striking ``An employee'' and all that follows 
                through ``is not entitled'' and inserting ``In 
                General.--An employee is not entitled to continuation 
                of pay within the meaning of section 8118 for the first 
                3 days of temporary disability or, if section 8118 does 
                not apply, is not entitled'';</DELETED>
                <DELETED>    (B) in paragraph (1), by adding ``or'' at 
                the end;</DELETED>
                <DELETED>    (C) by striking paragraph (2); 
                and</DELETED>
                <DELETED>    (D) by redesignating paragraph (3) as 
                paragraph (2); and</DELETED>
        <DELETED>    (3) in subsection (b)--</DELETED>
                <DELETED>    (A) by striking ``A Postal Service'' the 
                first place it appears and all that follows through ``A 
                Postal Service'' the second place it appears and 
                inserting ``Use of Leave.--An'';</DELETED>
                <DELETED>    (B) by striking ``that 3-day period'' and 
                inserting ``the first 3 days of temporary disability''; 
                and</DELETED>
                <DELETED>    (C) by striking ``or is followed by 
                permanent disability''.</DELETED>
<DELETED>    (b) Continuation of Pay.--Section 8118 is amended--
</DELETED>
        <DELETED>    (1) in the section heading, by striking ``; 
        election to use annual or sick leave'';</DELETED>
        <DELETED>    (2) in subsection (b)(1), by striking ``section 
        8117(b)'' and inserting ``section 8117'';</DELETED>
        <DELETED>    (3) by striking subsection (c); and</DELETED>
        <DELETED>    (4) by redesignating subsections (d) and (e) as 
        subsections (c) and (d), respectively.</DELETED>
<DELETED>    (c) Technical and Conforming Amendments.--The table of 
sections for chapter 81 is amended by striking the items relating to 
sections 8117 and 8118 and inserting the following:</DELETED>

<DELETED>``8117. Waiting period.
<DELETED>``8118. Continuation of pay.''.

<DELETED>SEC. 309. ELECTION OF BENEFITS.</DELETED>

<DELETED>    (a) In General.--Section 8116 is amended by adding at the 
end the following:</DELETED>
<DELETED>    ``(e) Retirement Benefits.--</DELETED>
        <DELETED>    ``(1) In general.--An individual entitled to 
        compensation benefits payable under this subchapter and under 
        chapter 83 or 84 or any other retirement system for employees 
        of the Government, for the same period, shall elect which 
        benefits the individual will receive.</DELETED>
        <DELETED>    ``(2) Election.--</DELETED>
                <DELETED>    ``(A) Deadline.--An individual shall make 
                an election under paragraph (1) in accordance with such 
                deadlines as the Secretary of Labor shall 
                establish.</DELETED>
                <DELETED>    ``(B) Revocability.--An election under 
                paragraph (1) shall be revocable, notwithstanding any 
                other provision of law, except for any period during 
                which an individual--</DELETED>
                        <DELETED>    ``(i) was qualified for benefits 
                        payable under both this subchapter and under a 
                        retirement system described in paragraph (1); 
                        and</DELETED>
                        <DELETED>    ``(ii) was paid benefits under the 
                        retirement system after having been notified of 
                        eligibility for benefits under this 
                        subchapter.</DELETED>
        <DELETED>    ``(3) Informed choice.--The Secretary of Labor 
        shall provide information, and shall ensure that information is 
        provided, to an individual described in paragraph (1) about the 
        benefits available to the individual under this subchapter or 
        under chapter 83 or 84 or any other retirement system referred 
        to in paragraph (1) the individual may elect to 
        receive.''.</DELETED>
<DELETED>    (b) Technical and Conforming Amendments.--Sections 
8337(f)(3) and 8464a(a)(3) are each amended by striking ``Paragraphs'' 
and inserting ``Except as provided under chapter 81, 
paragraphs''.</DELETED>

<DELETED>SEC. 310. SANCTION FOR NONCOOPERATION WITH FIELD 
              NURSES.</DELETED>

<DELETED>    Section 8123, as amended by section 307, is amended by 
adding at the end the following:</DELETED>
<DELETED>    ``(f) Field Nurses.--</DELETED>
        <DELETED>    ``(1) Definition.--In this subsection, the term 
        `field nurse' means a registered nurse that assists the 
        Secretary in the medical management of disability claims under 
        this subchapter and provides claimants with assistance in 
        coordinating medical care.</DELETED>
        <DELETED>    ``(2) Authorization.--The Secretary may use field 
        nurses to coordinate medical services and vocational 
        rehabilitation programs for injured employees under this 
        subchapter. If an employee refuses to cooperate with a field 
        nurse or obstructs a field nurse in the performance of duties 
        under this subchapter, the right to compensation under this 
        subchapter shall be suspended until the refusal or obstruction 
        stops.''.</DELETED>

<DELETED>SEC. 311. SUBROGATION OF CONTINUATION OF PAY.</DELETED>

<DELETED>    (a) In General.--Section 8131 is amended--</DELETED>
        <DELETED>    (1) in subsection (a), in the matter preceding 
        paragraph (1), by inserting ``continuation of pay or'' before 
        ``compensation''; and</DELETED>
        <DELETED>    (2) in subsection (b), by inserting ``continuation 
        of pay'' before compensation; and</DELETED>
        <DELETED>    (3) in subsection (c)--</DELETED>
                <DELETED>    (A) by inserting ``continuation of pay 
                or'' before ``compensation already paid''; 
                and</DELETED>
                <DELETED>    (B) by inserting ``continuation of pay 
                or'' before ``compensation payable''.</DELETED>
<DELETED>    (b) Adjustment After Recovery From a Third Person.--
Section 8132 is amended--</DELETED>
        <DELETED>    (1) in the first sentence--</DELETED>
                <DELETED>    (A) by inserting ``continuation of pay 
                or'' before ``compensation is payable'';</DELETED>
                <DELETED>    (B) by inserting ``continuation of pay 
                or'' before ``compensation from the United 
                States'';</DELETED>
                <DELETED>    (C) by striking ``by him or in his 
                behalf'' and inserting ``by the beneficiary or on 
                behalf of the beneficiary'';</DELETED>
                <DELETED>    (D) by inserting ``continuation of pay 
                and'' before ``compensation paid by the United 
                States''; and</DELETED>
                <DELETED>    (E) by striking ``compensation payable to 
                him'' and inserting ``continuation of pay or 
                compensation payable to the beneficiary'';</DELETED>
        <DELETED>    (2) in the second sentence, by striking ``his 
        designee'' and inserting ``the designee of the beneficiary''; 
        and</DELETED>
        <DELETED>    (3) in the fourth sentence, by striking ``If 
        compensation'' and all that follows through ``payable to him by 
        the United States'' and inserting ``If continuation of pay or 
        compensation has not been paid to the beneficiary, the money or 
        property shall be credited against continuation of pay or 
        compensation payable to the beneficiary by the United 
        States''.</DELETED>

<DELETED>SEC. 312. SOCIAL SECURITY EARNINGS INFORMATION.</DELETED>

<DELETED>    Section 8116, as amended by section 308, is amended by 
adding at the end the following:</DELETED>
<DELETED>    ``(f) Earnings Information.--Notwithstanding section 552a 
or any other provision of Federal or State law, the Social Security 
Administration shall make available to the Secretary of Labor, upon 
written request, the Social Security earnings information of a living 
or deceased employee who may have sustained an injury or died as a 
result of an injury that is the subject of a claim under this 
subchapter required by the Secretary of Labor to carry out this 
subchapter.''.</DELETED>

<DELETED>SEC. 313. AMOUNT OF COMPENSATION.</DELETED>

<DELETED>    (a) Injuries to Face, Head, and Neck.--Section 8107(c)(21) 
is amended--</DELETED>
        <DELETED>    (1) by striking ``not to exceed $3,500'' and 
        inserting ``in proportion to the severity of the disfigurement, 
        not to exceed $50,000,''; and</DELETED>
        <DELETED>    (2) by adding at the end the following: ``The 
        maximum amount of compensation under this paragraph shall be 
        increased on March 1 of each year by the amount determined by 
        the Secretary of Labor to represent the percent change in the 
        price index published for December of the preceding year over 
        the price index published for the December of the year prior to 
        the preceding year, adjusted to the nearest one-tenth of 1 
        percent.''.</DELETED>
<DELETED>    (b) Funeral Expenses.--Section 8134(a) is amended--
</DELETED>
        <DELETED>    (1) by striking ``$800'' and inserting ``$6,000''; 
        and</DELETED>
        <DELETED>    (2) by adding at the end the following: ``The 
        maximum amount of compensation under this subsection shall be 
        increased on March 1 of each year by the amount determined by 
        the Secretary of Labor to represent the percent change in the 
        price index published for December of the preceding year over 
        the price index published for the December of the year prior to 
        the preceding year, adjusted to the nearest one-tenth of 1 
        percent.''.</DELETED>
<DELETED>    (c) Application.--The amendments made by this section 
shall apply to injuries or deaths, respectively, occurring on or after 
the date of enactment of this Act.</DELETED>

<DELETED>SEC. 314. TECHNICAL AND CONFORMING AMENDMENTS.</DELETED>

<DELETED>    Chapter 81 is amended--</DELETED>
        <DELETED>    (1) in section 8101(1)(D), by inserting ``for an 
        injury that occurred before the effective date of section 
        204(e) of the District of Columbia Self-Government and 
        Governmental Reorganization Act (Public Law 93-198; 87 Stat. 
        783; 5 U.S.C. 8101 note)'' before the semicolon;</DELETED>
        <DELETED>    (2) in section 8139, by inserting ``under this 
        subchapter'' after ``Compensation awarded'';</DELETED>
        <DELETED>    (3) in section 8148(a), by striking ``section 
        8106'' and inserting ``section 8106a'';</DELETED>

<DELETED>SEC. 315. REGULATIONS.</DELETED>

<DELETED>    (a) In General.--As soon as possible after the date of 
enactment of this Act, the Secretary of Labor shall promulgate 
regulations (which may include interim final regulations) to carry out 
this title.</DELETED>
<DELETED>    (b) Contents.--The regulations promulgated under 
subsection (a) shall include, for purposes of the amendments made by 
sections 302 and 303, clarification of--</DELETED>
        <DELETED>    (1) what is a claim; and</DELETED>
        <DELETED>    (2) what is the date on which a period of 
        disability, for which a claim is made, commences.</DELETED>

               <DELETED>TITLE IV--OTHER MATTERS</DELETED>

<DELETED>SEC. 401. PROFITABILITY PLAN.</DELETED>

<DELETED>    (a) Plan Required.--Not later than 90 days after the date 
of enactment of this Act, the Postal Service shall submit to the 
Committee on Homeland Security and Governmental Affairs of the Senate, 
the Committee on Oversight and Government Reform of the House of 
Representatives, the Comptroller General of the United States, and the 
Commission a plan describing, in detail, the actions the Postal Service 
will take to--</DELETED>
        <DELETED>    (1) become profitable by fiscal year 2015; 
        and</DELETED>
        <DELETED>    (2) achieve long-term financial 
        solvency.</DELETED>
<DELETED>    (b) Considerations.--The plan required under subsection 
(a) shall take into consideration--</DELETED>
        <DELETED>    (1) the legal authority of the Postal 
        Service;</DELETED>
        <DELETED>    (2) the changes in the legal authority and 
        responsibilities of the Postal Service under this 
        Act;</DELETED>
        <DELETED>    (3) any cost savings that the Postal Service 
        anticipates will be achieved through negotiations with 
        employees of the Postal Service; and</DELETED>
        <DELETED>    (4) projected changes in mail volume.</DELETED>
<DELETED>    (c) Updates.--The Postal Service shall update the plan 
required under subsection (a) not less frequently than quarterly, until 
the last quarter of fiscal year 2015.</DELETED>

<DELETED>SEC. 402. POSTAL RATES.</DELETED>

<DELETED>    (a) Commission Study.--</DELETED>
        <DELETED>    (1) In general.--Not earlier than 2 years after 
        the date of enactment of this Act, the Commission shall 
        commence a study to determine--</DELETED>
                <DELETED>    (A) whether and to what extent any market-
                dominant classes, products, or types of mail services 
                do not bear the direct and indirect costs attributable 
                to those classes, products, or types of mail service; 
                and</DELETED>
                <DELETED>    (B) the impact of any excess mail 
                processing, transportation, or delivery capacity of the 
                Postal Service on the direct and indirect costs 
                attributable to any class that bears less than 100 
                percent of the costs attributable to the class, as 
                determined under subparagraph (A).</DELETED>
        <DELETED>    (2) Requirements.--The Commission shall conduct 
        the study under paragraph (1) in a manner that protects 
        confidential and proprietary business information.</DELETED>
        <DELETED>    (3) Hearing.--Before completing the study under 
        paragraph (1), the Commission shall hold a public hearing, on 
        the record, in order to better inform the conclusions of the 
        study. The Postal Service, postal customers, and other 
        interested persons may participate in the hearing under this 
        paragraph.</DELETED>
        <DELETED>    (4) Completion.--Not later than 6 months after the 
        date on which the Commission commences the study under 
        subsection (a), the Commission shall complete the 
        study.</DELETED>
<DELETED>    (b) Annual Updates Required.--Not later than 1 year after 
the date of completion of the study under subsection (a), and annually 
thereafter, the Commission shall--</DELETED>
        <DELETED>    (1) determine whether any class of mail bears less 
        than 100 percent of the direct and indirect costs attributable 
        to the class, product, or type of mail service, in the same 
        manner as under subsection (a)(1)(A);</DELETED>
        <DELETED>    (2) for any class of mail for which the Commission 
        makes a determination under paragraph (1), update the study 
        under subsection (a); and</DELETED>
        <DELETED>    (3) include the study updated under paragraph (2) 
        in the annual written determination of the Commission under 
        section 3653 of title 39, United States Code.</DELETED>
<DELETED>    (c) Postal Rates.--</DELETED>
        <DELETED>    (1) Definition.--In this subsection, the term 
        ``loss-making'', as used with respect to a class of mail, means 
        a class of mail that bears less than 100 percent of the costs 
        attributable to the class of mail, according to the most recent 
        annual determination of the Commission under subsection (a)(1) 
        or (b)(1), adjusted to account for the quantitative effect of 
        excess mail processing, transportation, or delivery capacity of 
        the Postal Service on the costs attributable to the class of 
        mail.</DELETED>
        <DELETED>    (2) In general.--Not later than 1 year after the 
        date on which the study under subsection (a) is completed, and 
        annually thereafter, the Postal Service shall establish postal 
        rates for each loss-making class of mail.</DELETED>
        <DELETED>    (3) Considerations.--The Postal Service may 
        establish postal rates under paragraph (2) in a manner that 
        ensures, to the extent practicable, that a class of mail 
        described in paragraph (2) is not loss-making by--</DELETED>
                <DELETED>    (A) using the authority to increase rates 
                under section 3622(d)(1)(A) of title 39, United States 
                Code;</DELETED>
                <DELETED>    (B) exhausting any unused rate adjustment 
                authority, as defined in section 3622(d)(2)(C) of title 
                39, United States Code, subject to paragraph (4); 
                and</DELETED>
                <DELETED>    (C) maximizing incentives to reduce costs 
                and increase efficiency with regard to the processing, 
                transportation, and delivery of such mail by the Postal 
                Service.</DELETED>
        <DELETED>    (4) Unused rate adjustment authority.--Section 
        3622(d)(2)(C) of title 39, United States Code, shall be applied 
        by annually increasing by 2 percentage points any unused rate 
        adjustment authority for a class of mail that bears less than 
        90 percent of the costs attributable to the class of mail, 
        according to the most recent annual determination of the 
        Commission under subsection (a)(1) or (b)(1), adjusted to 
        account for the quantitative effect of excess mail processing, 
        transportation, or delivery capacity of the Postal Service on 
        the costs attributable to the class of mail.</DELETED>

<DELETED>SEC. 403. COOPERATION WITH STATE AND LOCAL GOVERNMENTS; INTRA-
              SERVICE AGREEMENTS.</DELETED>

<DELETED>    (a) Cooperation With State and Local Governments.--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''.</DELETED>
<DELETED>    (b) Intra-Service Agreements.--Section 411 of title 39, 
United States Code, as amended by subsection (a), is amended--
</DELETED>
        <DELETED>    (1) in the section heading, by adding at the end 
        the following: ``and within the Postal Service'';</DELETED>
        <DELETED>    (2) in the second sentence, by striking 
        ``section'' and inserting ``subsection'';</DELETED>
        <DELETED>    (3) by striking ``Executive agencies'' and 
        inserting the following:</DELETED>
<DELETED>    ``(a) Cooperation With State and Local Governments.--
Executive agencies''; and</DELETED>
        <DELETED>    (4) by adding at the end the following:</DELETED>
<DELETED>    ``(b) Cooperation Within the Postal Service.--The Office 
of the Inspector General and other components of the Postal Service may 
enter into agreements to furnish to each other property, both real and 
personal, and personal and nonpersonal services. The furnishing of 
property and services under this subsection shall be under such terms 
and conditions, including reimbursability, as the Inspector General and 
the head of the component concerned shall deem 
appropriate.''.</DELETED>
<DELETED>    (c) Technical and Conforming Amendment.--The table of 
sections for chapter 4 of title 39, United States Code, is amended by 
striking the item relating to section 411 and inserting the 
following:</DELETED>

<DELETED>``411. Cooperation with other Government agencies and within 
                            the Postal Service.''.

<DELETED>SEC. 404. SHIPPING OF WINE AND BEER.</DELETED>

<DELETED>    (a) Mailability.--</DELETED>
        <DELETED>    (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''.</DELETED>
        <DELETED>    (2) Application of laws.--Section 1161 of title 
        18, United States Code, is amended, by inserting ``, and, with 
        respect to the mailing of wine or malt beverages (as those 
        terms are defined in section 117 of the Federal Alcohol 
        Administration Act (27 U.S.C. 211)), is in conformity with 
        section 3001(p) of title 39'' after ``Register''.</DELETED>
<DELETED>    (b) Regulations.--Section 3001 of title 39, United States 
Code, is amended by adding at the end the following:</DELETED>
<DELETED>    ``(p)(1) In this subsection, the terms `wine' and `malt 
beverage' have the same meanings as in section 117 of the Federal 
Alcohol Administration Act (27 U.S.C. 211).</DELETED>
<DELETED>    ``(2) Wine or malt beverages shall be considered mailable 
if mailed--</DELETED>
        <DELETED>    ``(A) by a licensed winery or brewery, in 
        accordance with applicable regulations under paragraph (3); 
        and</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(3) The Postal Service shall prescribe such regulations 
as may be necessary to carry out this subsection, including regulations 
providing that--</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(B) the addressee (and any duly authorized 
        agent) shall be an individual at least 21 years of 
        age;</DELETED>
        <DELETED>    ``(C) the individual who takes delivery, whether 
        the addressee or a duly authorized agent, shall present a 
        valid, government-issued photo identification at the time of 
        delivery;</DELETED>
        <DELETED>    ``(D) the wine or malt beverages may not be for 
        resale or other commercial purpose; and</DELETED>
        <DELETED>    ``(E) the winery or brewery involved shall--
        </DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(ii) provide any other information or 
                affirmation that the Postal Service may require, 
                including with respect to the prepayment of State 
                alcohol beverage taxes.</DELETED>
<DELETED>    ``(4) For purposes of this subsection--</DELETED>
        <DELETED>    ``(A) a winery shall be considered to be licensed 
        if it holds an appropriate basic permit issued--</DELETED>
                <DELETED>    ``(i) under the Federal Alcohol 
                Administration Act; and</DELETED>
                <DELETED>    ``(ii) under the law of the State in which 
                the winery is located; and</DELETED>
        <DELETED>    ``(B) a brewery shall be considered to be licensed 
        if--</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(ii) it is licensed to manufacture and 
                sell malt beverages in the State in which the brewery 
                is located.''.</DELETED>
<DELETED>    (c) Effective Date.--The amendments made by this section 
shall take effect on the earlier of--</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (2) 120 days after the date of enactment of this 
        Act.</DELETED>

<DELETED>SEC. 405. ANNUAL REPORT ON UNITED STATES MAILING 
              INDUSTRY.</DELETED>

<DELETED>    (a) In General.--Chapter 24 of title 39, United States 
Code, is amended by adding at the end the following:</DELETED>
<DELETED>``Sec. 2403. Annual report on the fiscal stability of the 
              United States mailing industry</DELETED>
<DELETED>    ``(a) In General.--Not later than 1 year after the date of 
enactment of this section, and annually thereafter, the Postal 
Regulatory Commission shall submit a report on the fiscal stability of 
the United States mailing industry with respect to the preceding fiscal 
year to--</DELETED>
        <DELETED>    ``(1) the Committee on Homeland Security and 
        Governmental Affairs of the Senate; and</DELETED>
        <DELETED>    ``(2) the Committee on Oversight and Government 
        Reform of the House of Representatives.</DELETED>
<DELETED>    ``(b) Assistance.--The United States Postal Service and 
any Federal agency involved in oversight or data collection regarding 
industry sectors relevant to the report under subsection (a) shall 
provide any assistance to the Postal Regulatory Commission that the 
Postal Regulatory Commission determines is necessary in the preparation 
of a report under subsection (a).''.</DELETED>
<DELETED>    (b) Technical and Conforming Amendment.--The table of 
sections for chapter 24 of title 39, United States Code, is amended by 
adding at the end the following:</DELETED>

<DELETED>``2403. Annual report on the fiscal stability of the United 
                            States mailing industry.''.

<DELETED>SEC. 406. USE OF NEGOTIATED SERVICE AGREEMENTS.</DELETED>

<DELETED>    Section 3622 of title 39, United States Code, is amended--
</DELETED>
        <DELETED>    (1) in subsection (c)(10)(A)--</DELETED>
                <DELETED>    (A) in the matter preceding clause (i), by 
                striking ``either'' and inserting ``will'';</DELETED>
                <DELETED>    (B) in clause (i), by striking ``or'' at 
                the end;</DELETED>
                <DELETED>    (C) in clause (ii), by striking ``and'' at 
                the end and inserting ``or''; and</DELETED>
                <DELETED>    (D) by adding at the end the 
                following:</DELETED>
                        <DELETED>    ``(iii) preserve mail volume and 
                        revenue; and''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(g) Coordination.--The Postal Service and the Postal 
Regulatory Commission shall coordinate actions to identify methods to 
increase the use of negotiated service agreements for market-dominant 
products by the Postal Service consistent with subsection 
(c)(10).''.</DELETED>

<DELETED>SEC. 407. CONTRACT DISPUTES.</DELETED>

<DELETED>    Section 7101(8) of title 41, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) in subparagraph (C), by striking ``and'' at 
        the end;</DELETED>
        <DELETED>    (2) in subparagraph (D), by striking the period at 
        the end and inserting ``; and''; and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
                <DELETED>    ``(E) the United States Postal Service and 
                the Postal Regulatory Commission.''.</DELETED>

<DELETED>SEC. 408. CONTRACTING PROVISIONS.</DELETED>

<DELETED>    (a) In General.--Part I of title 39, United States Code, 
is amended by adding at the end the following:</DELETED>

         <DELETED>``CHAPTER 7--CONTRACTING PROVISIONS</DELETED>

<DELETED>``Sec.
<DELETED>``701. Definitions.
<DELETED>``702. Advocate for competition.
<DELETED>``703. Delegation of contracting authority.
<DELETED>``704. Posting of noncompetitive purchase requests for 
                            noncompetitive contracts.
<DELETED>``705. Review of ethical issues.
<DELETED>``706. Ethical restrictions on participation in certain 
                            contracting activity.
<DELETED>``Sec. 701. Definitions</DELETED>
<DELETED>    ``In this chapter--</DELETED>
        <DELETED>    ``(1) the term `contracting officer' means an 
        employee of a covered postal entity who has authority to enter 
        into a postal contract;</DELETED>
        <DELETED>    ``(2) the term `covered postal entity' means--
        </DELETED>
                <DELETED>    ``(A) the United States Postal Service; 
                or</DELETED>
                <DELETED>    ``(B) the Postal Regulatory 
                Commission;</DELETED>
        <DELETED>    ``(3) the term `head of a covered postal entity' 
        means--</DELETED>
                <DELETED>    ``(A) in the case of the United States 
                Postal Service, the Postmaster General; or</DELETED>
                <DELETED>    ``(B) in the case of the Postal Regulatory 
                Commission, the Chairman of the Postal Regulatory 
                Commission;</DELETED>
        <DELETED>    ``(4) the term `postal contract' means any 
        contract (including any agreement or memorandum of 
        understanding) entered into by a covered postal entity for the 
        procurement of goods or services; and</DELETED>
        <DELETED>    ``(5) the term `senior procurement executive' 
        means the senior procurement executive of a covered postal 
        entity.</DELETED>
<DELETED>``Sec. 702. Advocate for competition</DELETED>
<DELETED>    ``(a) Establishment and Designation.--</DELETED>
        <DELETED>    ``(1) There is established in each covered postal 
        entity an advocate for competition.</DELETED>
        <DELETED>    ``(2) The head of each covered postal entity shall 
        designate for the covered postal entity 1 or more officers or 
        employees (other than the senior procurement executive) to 
        serve as the advocate for competition.</DELETED>
<DELETED>    ``(b) Responsibilities.--The advocate for competition of 
each covered postal entity shall--</DELETED>
        <DELETED>    ``(1) be responsible for promoting competition to 
        the maximum extent practicable consistent with obtaining best 
        value by promoting the acquisition of commercial items and 
        challenging barriers to competition;</DELETED>
        <DELETED>    ``(2) review the procurement activities of the 
        covered postal entity; and</DELETED>
        <DELETED>    ``(3) prepare and transmit to the head of each 
        covered postal entity, the senior procurement executive of each 
        covered postal entity, the Board of Governors of the United 
        States Postal Service, and Congress, an annual report 
        describing--</DELETED>
                <DELETED>    ``(A) the activities of the advocate under 
                this section;</DELETED>
                <DELETED>    ``(B) initiatives required to promote 
                competition;</DELETED>
                <DELETED>    ``(C) barriers to competition that remain; 
                and</DELETED>
                <DELETED>    ``(D) the number of waivers made by each 
                covered postal entity under section 704(c).</DELETED>
<DELETED>``Sec. 703. Delegation of contracting authority</DELETED>
<DELETED>    ``(a) In General.--</DELETED>
        <DELETED>    ``(1) Policy.--Not later than 60 days after the 
        date of enactment of the 21st Century Postal Service Act of 
        2011, the head of each covered postal entity shall issue a 
        policy on contracting officer delegations of authority for the 
        covered postal entity.</DELETED>
        <DELETED>    ``(2) Contents.--The policy issued under paragraph 
        (1) shall require that--</DELETED>
                <DELETED>    ``(A) notwithstanding any delegation of 
                authority with respect to postal contracts, the 
                ultimate responsibility and accountability for the 
                award and administration of postal contracts resides 
                with the senior procurement executive; and</DELETED>
                <DELETED>    ``(B) a contracting officer shall maintain 
                an awareness of and engagement in the activities being 
                performed on postal contracts of which that officer has 
                cognizance, notwithstanding any delegation of authority 
                that may have been executed.</DELETED>
<DELETED>    ``(b) Posting of Delegations.--</DELETED>
        <DELETED>    ``(1) In general.--The head of each covered postal 
        entity shall make any delegation of authority for postal 
        contracts outside the functional contracting unit readily 
        available and accessible on the website of the covered postal 
        entity.</DELETED>
        <DELETED>    ``(2) Effective date.--This paragraph shall apply 
        to any delegation of authority made on or after 30 days after 
        the date of enactment of the 21st Century Postal Service Act of 
        2011.</DELETED>
<DELETED>``Sec. 704. Posting of noncompetitive purchase requests for 
              noncompetitive contracts</DELETED>
<DELETED>    ``(a) Posting Required.--</DELETED>
        <DELETED>    ``(1) Postal regulatory commission.--The Postal 
        Regulatory Commission shall make the noncompetitive purchase 
        request for any noncompetitive award, including the rationale 
        supporting the noncompetitive award, publicly available on the 
        website of the Postal Regulatory Commission--</DELETED>
                <DELETED>    ``(A) not later than 14 days after the 
                date of the award of the noncompetitive contract; 
                or</DELETED>
                <DELETED>    ``(B) not later than 30 days after the 
                date of the award of the noncompetitive contract, if 
                the basis for the award was a compelling business 
                interest.</DELETED>
        <DELETED>    ``(2) United states postal service.--The United 
        States Postal Service shall make the noncompetitive purchase 
        request for any noncompetitive award of a postal contract 
        valued at $250,000 or more, including the rationale supporting 
        the noncompetitive award, publicly available on the website of 
        the United States Postal Service--</DELETED>
                <DELETED>    ``(A) not later than 14 days after the 
                date of the award; or</DELETED>
                <DELETED>    ``(B) not later than 30 days after the 
                date of the award, if the basis for the award was a 
                compelling business interest.</DELETED>
        <DELETED>    ``(3) Adjustments to the posting threshold for the 
        united states postal service.--</DELETED>
                <DELETED>    ``(A) Review and determination.--Not later 
                than January 31 of each year, the United States Postal 
                Service shall--</DELETED>
                        <DELETED>    ``(i) review the $250,000 
                        threshold established under paragraph (2); 
                        and</DELETED>
                        <DELETED>    ``(ii) based on any change in the 
                        Consumer Price Index for all-urban consumers of 
                        the Department of Labor, determine whether an 
                        adjustment to the threshold shall be 
                        made.</DELETED>
                <DELETED>    ``(B) Amount of adjustments.--An 
                adjustment under subparagraph (A) shall be made in 
                increments of $5,000. If the United States Postal 
                Service determines that a change in the Consumer Price 
                Index for a year would require an adjustment in an 
                amount that is less than $5,000, the United States 
                Postal Service may not make an adjustment to the 
                threshold for the year.</DELETED>
        <DELETED>    ``(4) Effective date.--This subsection shall apply 
        to any noncompetitive contract awarded on or after the date 
        that is 90 days after the date of enactment of the 21st Century 
        Postal Service Act of 2011.</DELETED>
<DELETED>    ``(b) Public Availability.--</DELETED>
        <DELETED>    ``(1) In general.--Subject to paragraph (2), the 
        information required to be made publicly available by a covered 
        postal entity under subsection (a) shall be readily accessible 
        on the website of the covered postal entity.</DELETED>
        <DELETED>    ``(2) Protection of proprietary information.--A 
        covered postal entity shall--</DELETED>
                <DELETED>    ``(A) carefully screen any description of 
                the rationale supporting a noncompetitive award 
                required to be made publicly available under subsection 
                (a) to determine whether the description includes 
                proprietary data (including any reference or citation 
                to the proprietary data) or security-related 
                information; and</DELETED>
                <DELETED>    ``(B) remove any proprietary data or 
                security-related information before making publicly 
                available a description of the rational supporting a 
                noncompetitive award.</DELETED>
<DELETED>    ``(c) Waivers.--</DELETED>
        <DELETED>    ``(1) Waiver permitted.--If a covered postal 
        entity determines that making a noncompetitive purchase request 
        publicly available would risk placing the United States Postal 
        Service at a competitive disadvantage relative to a private 
        sector competitor, the senior procurement executive, in 
        consultation with the advocate for competition of the covered 
        postal entity, may waive the requirements under subsection 
        (a).</DELETED>
        <DELETED>    ``(2) Form and content of waiver.--</DELETED>
                <DELETED>    ``(A) Form.--A waiver under paragraph (1) 
                shall be in the form of a written determination placed 
                in the file of the contract to which the noncompetitive 
                purchase agreement relates.</DELETED>
                <DELETED>    ``(B) Content.--A waiver under paragraph 
                (1) shall include--</DELETED>
                        <DELETED>    ``(i) a description of the risk 
                        associated with making the noncompetitive 
                        purchase request publicly available; 
                        and</DELETED>
                        <DELETED>    ``(ii) a statement that redaction 
                        of sensitive information in the noncompetitive 
                        purchase request would not be sufficient to 
                        protect the United States Postal Service from 
                        being placed at a competitive disadvantage 
                        relative to a private sector 
                        competitor.</DELETED>
        <DELETED>    ``(3) Delegation of waiver authority.--A covered 
        postal entity may not delegate the authority to approve a 
        waiver under paragraph (1) to any employee having less 
        authority than the senior procurement executive.</DELETED>
<DELETED>``Sec. 705. Review of ethical issues</DELETED>
<DELETED>    ``If a contracting officer identifies any ethical issues 
relating to a proposed contract and submits those issues and that 
proposed contract to the designated ethics official for the covered 
postal entity before the awarding of that contract, that ethics 
official shall--</DELETED>
        <DELETED>    ``(1) review the proposed contract; and</DELETED>
        <DELETED>    ``(2) advise the contracting officer on the 
        appropriate resolution of ethical issues.</DELETED>
<DELETED>``Sec. 706. Ethical restrictions on participation in certain 
              contracting activity</DELETED>
<DELETED>    ``(a) Definitions.--In this section--</DELETED>
        <DELETED>    ``(1) the term `covered employee' means--
        </DELETED>
                <DELETED>    ``(A) a contracting officer; or</DELETED>
                <DELETED>    ``(B) any employee of a covered postal 
                entity whose decisionmaking affects a postal contract 
                as determined by regulations prescribed by the head of 
                a covered postal entity;</DELETED>
        <DELETED>    ``(2) the term `covered relationship' means a 
        covered relationship described in section 2635.502(b)(1) of 
        title 5, Code of Federal Regulations, or any successor thereto; 
        and</DELETED>
        <DELETED>    ``(3) the term `final conviction' means a 
        conviction, whether entered on a verdict or plea, including a 
        plea of nolo contendere, for which a sentence has been 
        imposed.</DELETED>
<DELETED>    ``(b) In General.--</DELETED>
        <DELETED>    ``(1) Regulations.--The head of each covered 
        postal entity shall prescribe regulations that--</DELETED>
                <DELETED>    ``(A) require a covered employee to 
                include in the file of any noncompetitive purchase 
                request for a noncompetitive postal contract a written 
                certification that--</DELETED>
                        <DELETED>    ``(i) discloses any covered 
                        relationship of the covered employee; 
                        and</DELETED>
                        <DELETED>    ``(ii) the covered employee will 
                        not take any action with respect to the 
                        noncompetitive purchase request that affects 
                        the financial interests of a friend, relative, 
                        or person with whom the covered employee is 
                        affiliated in a nongovernmental capacity, or 
                        otherwise gives rise to an appearance of the 
                        use of public office for private gain, as 
                        described in section 2635.702 of title 5, Code 
                        of Federal Regulations, or any successor 
                        thereto;</DELETED>
                <DELETED>    ``(B) require a contracting officer to 
                consult with the ethics counsel for the covered postal 
                entity regarding any disclosure made by a covered 
                employee under subparagraph (A)(i), to determine 
                whether participation by the covered employee in the 
                noncompetitive purchase request would give rise to a 
                violation of part 2635 of title 5, Code of Federal 
                Regulations (commonly referred to as the `Standards of 
                Ethical Conduct for Employees of the Executive 
                Branch');</DELETED>
                <DELETED>    ``(C) require the ethics counsel for a 
                covered postal entity to review any disclosure made by 
                a contracting officer under subparagraph (A)(i) to 
                determine whether participation by the contracting 
                officer in the noncompetitive purchase request would 
                give rise to a violation of part 2635 of title 5, Code 
                of Federal Regulations (commonly referred to as the 
                `Standards of Ethical Conduct for Employees of the 
                Executive Branch'), or any successor thereto;</DELETED>
                <DELETED>    ``(D) under subsections (d) and (e) of 
                section 2635.50 of title 5, Code of Federal 
                Regulations, or any successor thereto, require the 
                ethics counsel for a covered postal entity to--
                </DELETED>
                        <DELETED>    ``(i) authorize a covered employee 
                        that makes a disclosure under subparagraph 
                        (A)(i) to participate in the noncompetitive 
                        postal contract; or</DELETED>
                        <DELETED>    ``(ii) disqualify a covered 
                        employee that makes a disclosure under 
                        subparagraph (A)(i) from participating in the 
                        noncompetitive postal contract;</DELETED>
                <DELETED>    ``(E) require a contractor to timely 
                disclose to the contracting officer in a bid, 
                solicitation, award, or performance of a postal 
                contract any conflict of interest with a covered 
                employee; and</DELETED>
                <DELETED>    ``(F) include authority for the head of 
                the covered postal entity to a grant a waiver or 
                otherwise mitigate any organizational or personal 
                conflict of interest, if the head of the covered postal 
                entity determines that the waiver or mitigation is in 
                the best interests of the Postal Service.</DELETED>
        <DELETED>    ``(2) Posting of waivers.--Not later than 30 days 
        after the head of a covered postal entity grants a waiver 
        described in paragraph (1)(F), the head of the covered postal 
        entity shall make the waiver publicly available on the website 
        of the covered postal entity.</DELETED>
<DELETED>    ``(c) Contract Voidance and Recovery.--</DELETED>
        <DELETED>    ``(1) Unlawful conduct.--In any case in which 
        there is a final conviction for a violation of any provision of 
        chapter 11 of title 18 relating to a postal contract, the head 
        of a covered postal entity may--</DELETED>
                <DELETED>    ``(A) void that contract; and</DELETED>
                <DELETED>    ``(B) recover the amounts expended and 
                property transferred by the covered postal entity under 
                that contract.</DELETED>
        <DELETED>    ``(2) Obtaining or disclosing procurement 
        information.--</DELETED>
                <DELETED>    ``(A) In general.--In any case where a 
                contractor under a postal contract fails to timely 
                disclose a conflict of interest to the appropriate 
                contracting officer as required under the regulations 
                promulgated under subsection (b)(1)(D), the head of a 
                covered postal entity may--</DELETED>
                        <DELETED>    ``(i) void that contract; 
                        and</DELETED>
                        <DELETED>    ``(ii) recover the amounts 
                        expended and property transferred by the 
                        covered postal entity under that 
                        contract.</DELETED>
                <DELETED>    ``(B) Conviction or administrative 
                determination.--A case described under subparagraph (A) 
                is any case in which--</DELETED>
                        <DELETED>    ``(i) there is a final conviction 
                        for an offense punishable under section 27(e) 
                        of the Office of Federal Procurement Policy Act 
                        (41 U.S.C. 423(e)); or</DELETED>
                        <DELETED>    ``(ii) the head of a covered 
                        postal entity determines, based upon a 
                        preponderance of the evidence, that the 
                        contractor or someone acting for the contractor 
                        has engaged in conduct constituting an offense 
                        punishable under section 27(e) of that 
                        Act.''.</DELETED>
<DELETED>    (b) Technical and Conforming Amendment.--The table of 
chapters for part I of title 39, United States Code, is amended by 
adding at the end the following:</DELETED>

<DELETED>``7. Contracting Provisions........................     701''.

</DELETED>SECTION 1. SHORT TITLE.

    This Act may be cited as the ``21st Century Postal Service Act of 
2012''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.

                   TITLE I--POSTAL WORKFORCE MATTERS

Sec. 101. Treatment of postal funding surplus for Federal Employees 
                            Retirement System.
Sec. 102. Additional service credit.
Sec. 103. Restructuring of payments for retiree health benefits.
Sec. 104. Postal Service Health Benefits Program.
Sec. 105. Arbitration; labor disputes.

                TITLE II--POSTAL SERVICES AND OPERATIONS

Sec. 201. Postal facilities.
Sec. 202. Additional Postal Service planning.
Sec. 203. Area and district office structure.
Sec. 204. Post offices; retail service standards.
Sec. 205. Conversion of door delivery points.
Sec. 206. Limitations on changes to mail delivery schedule.
Sec. 207. Time limits for consideration of service changes.
Sec. 208. Public procedures for significant changes to mailing 
                            specifications.
Sec. 209. Nonpostal products and services.

             TITLE III--FEDERAL EMPLOYEES' COMPENSATION ACT

Sec. 301. Short title; references.
Sec. 302. Federal workers compensation reforms for retirement-age 
                            employees.
Sec. 303. Augmented compensation for dependents.
Sec. 304. Schedule compensation payments.
Sec. 305. Vocational rehabilitation.
Sec. 306. Reporting requirements.
Sec. 307. Disability management review; independent medical 
                            examinations.
Sec. 308. Waiting period.
Sec. 309. Election of benefits.
Sec. 310. Sanction for noncooperation with field nurses.
Sec. 311. Subrogation of continuation of pay.
Sec. 312. Integrity and compliance.
Sec. 313. Amount of compensation.
Sec. 314. Technical and conforming amendments.
Sec. 315. Regulations.

                        TITLE IV--OTHER MATTERS

Sec. 401. Profitability plan.
Sec. 402. Postal rates.
Sec. 403. Cooperation with State and local governments; intra-Service 
                            agreements.
Sec. 404. Shipping of wine and beer.
Sec. 405. Annual report on United States mailing industry.
Sec. 406. Use of negotiated service agreements.
Sec. 407. Contract disputes.
Sec. 408. Contracting provisions.

SEC. 3. DEFINITIONS.

    In this Act, the following definitions shall apply:
            (1) Commission.--The term ``Commission'' means the Postal 
        Regulatory Commission.
            (2) Postal service.--The term ``Postal Service'' means the 
        United States Postal Service.

                   TITLE I--POSTAL WORKFORCE MATTERS

SEC. 101. TREATMENT OF POSTAL FUNDING SURPLUS FOR FEDERAL EMPLOYEES 
              RETIREMENT SYSTEM.

    Section 8423(b) of title 5, United States Code, is amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following:
    ``(5)(A) In this paragraph, the term `postal funding surplus' means 
the amount by which the amount computed under paragraph (1)(B) is less 
than zero.
    ``(B)(i) Beginning with fiscal year 2011, for each fiscal year in 
which the amount computed under paragraph (1)(B) is less than zero, 
upon request of the Postmaster General, the Director shall transfer to 
the United States Postal Service from the Fund an amount equal to the 
postal funding surplus for that fiscal year for use in accordance with 
this paragraph.
    ``(ii) The Office shall calculate the amount under paragraph (1)(B) 
for a fiscal year by not later than June 15 after the close of the 
fiscal year, and shall transfer any postal funding surplus to the 
United States Postal Service within 10 days after a request by the 
Postmaster General.
    ``(C) For each of fiscal years 2011, 2012, and 2013, if the amount 
computed under paragraph (1)(B) is less than zero, a portion of the 
postal funding surplus for the fiscal year shall be used by the United 
States Postal Service for the cost of providing to employees of the 
United States Postal Service who voluntarily separate from service 
before October 1, 2014--
            ``(i) voluntary separation incentive payments (including 
        payments to employees who retire under section 8336(d)(2) or 
        8414(b)(1)(B) before October 1, 2014) that may not exceed the 
        maximum amount provided under section 3523(b)(3)(B) for any 
        employee; and
            ``(ii) retirement service credits, as authorized under 
        section 8332(p) or 8411(m).
    ``(D) Any postal funding surplus for a fiscal year not expended 
under subparagraph (C) may be used by the United States Postal Service 
for the purposes of--
            ``(i) repaying any obligation issued under section 2005 of 
        title 39; or
            ``(ii) making required payments to--
                    ``(I) the Employees' Compensation Fund established 
                under section 8147;
                    ``(II) the Postal Service Retiree Health Benefits 
                Fund established under section 8909a;
                    ``(III) the Employees Health Benefits Fund 
                established under section 8909; or
                    ``(IV) the Civil Service Retirement and Disability 
                Fund.''.

SEC. 102. ADDITIONAL SERVICE CREDIT.

    (a) Civil Service Retirement System.--Section 8332 of title 5, 
United States Code, is amended by adding at the end the following:
    ``(p)(1)(A) For an employee of the United States Postal Service who 
is covered under this subchapter and voluntarily separates from service 
before October 1, 2014, at the direction of the United States Postal 
Service, the Office shall add not more than 1 year (as specified by the 
United States Postal Service) to the total creditable service of the 
employee for purposes of determining entitlement to and computing the 
amount of an annuity under this subchapter (except for a disability 
annuity under section 8337).
    ``(B) An employee who receives additional creditable service under 
this paragraph may not receive a voluntary separation incentive payment 
from the United States Postal Service.
    ``(2)(A) Subject to subparagraph (B), and notwithstanding any other 
provision of law, no deduction, deposit, or contribution shall be 
required for service credited under this subsection.
    ``(B) The actuarial present value of the additional liability of 
the United States Postal Service to the Fund resulting from this 
subsection shall be included in the amount calculated under section 
8348(h)(1)(A).''.
    (b) Federal Employees Retirement System.--Section 8411 of title 5, 
United States Code, is amended by adding at the end the following:
    ``(m)(1)(A) For an employee of the United States Postal Service who 
is covered under this chapter and voluntarily separates from service 
before October 1, 2014, at the direction of the United States Postal 
Service, the Office shall add not more than 2 years (as specified by 
the United States Postal Service) to the total creditable service of 
the employee for purposes of determining entitlement to and computing 
the amount of an annuity under this chapter (except for a disability 
annuity under subchapter V of that chapter).
    ``(B) An employee who receives additional creditable service under 
this paragraph may not receive a voluntary separation incentive payment 
from the United States Postal Service.
    ``(2)(A) Subject to subparagraph (B), and notwithstanding any other 
provision of law, no deduction, deposit, or contribution shall be 
required for service credited under this subsection.
    ``(B) The actuarial present value of the additional liability of 
the United States Postal Service to the Fund resulting from this 
subsection shall be included in the amount calculated under section 
8423(b)(1)(B).''.

SEC. 103. RESTRUCTURING OF PAYMENTS FOR RETIREE HEALTH BENEFITS.

    (a) Contributions.--Section 8906(g)(2)(A) of title 5, United States 
Code, is amended by striking ``through September 30, 2016, be paid by 
the United States Postal Service, and thereafter shall'' and inserting 
``after the date of enactment of the 21st Century Postal Service Act of 
2012''.
    (b) Postal Service Retiree Health Benefits Fund.--Section 8909a of 
title 5, United States Code, is amended--
            (1) in subsection (d)--
                    (A) in paragraph (2)(B)--
                            (i) by striking ``2017'' and inserting 
                        ``2012''; and
                            (ii) by inserting after ``later, of'' the 
                        following: ``80 percent of''; and
                    (B) in paragraph (3)--
                            (i) in subparagraph (A)--
                                    (I) in clause (iii), by adding 
                                ``and'' at the end;
                                    (II) in clause (iv), by striking 
                                the semicolon at the end and inserting 
                                a period; and
                                    (III) by striking clauses (v) 
                                through (x); and
                            (ii) in subparagraph (B), by striking 
                        ``2017'' and inserting ``2012''; and
            (2) by adding at the end the following:
    ``(e) Subsections (a) through (d) shall be subject to section 104 
of the 21st Century Postal Service Act of 2012.''.

SEC. 104. POSTAL SERVICE HEALTH BENEFITS PROGRAM.

    (a) Definitions.--In this section--
            (1) the term ``covered employee'' means an employee of the 
        Postal Service who is represented by a bargaining 
        representative recognized under section 1203 of title 39, 
        United States Code;
            (2) the term ``Federal Employee Health Benefits Program'' 
        means the health benefits program under chapter 89 of title 5, 
        United States Code; and
            (3) the term ``Postal Service Health Benefits Program'' 
        means the health benefits program that may be agreed to under 
        subsection (b)(1).
    (b) Collective Bargaining.--
            (1) In general.--Consistent with section 1005(f) of title 
        39, United States Code, the Postal Service may negotiate 
        jointly with all bargaining representatives recognized under 
        section 1203 of title 39, United States Code, and enter into a 
        joint collective bargaining agreement with those bargaining 
        representatives to establish the Postal Service Health Benefits 
        Program that satisfies the conditions under subsection (c). The 
        Postal Service and the bargaining representatives shall 
        negotiate in consultation with the Director of the Office of 
        Personnel Management.
            (2) Consultation with supervisory and managerial 
        personnel.--In the course of negotiations under paragraph (1), 
        the Postal Service shall consult with each of the organizations 
        of supervisory and other managerial personnel that are 
        recognized under section 1004 of title 39, United States Code, 
        concerning the views of the personnel represented by each of 
        those organizations.
            (3) Arbitration limitation.--Notwithstanding chapter 12 of 
        title 39, United States Code, there shall not be arbitration of 
        any dispute in the negotiations under this subsection.
            (4) Time limitation.--The authority under this subsection 
        shall extend until September 30, 2012.
    (c) Postal Service Health Benefits Program.--The Postal Service 
Health Benefits Program--
            (1) shall--
                    (A) be available for participation by all covered 
                employees;
                    (B) be available for participation by any officer 
                or employee of the Postal Service who is not a covered 
                employee, at the option solely of that officer or 
                employee;
                    (C) provide adequate and appropriate health 
                benefits;
                    (D) be administered in a manner determined in a 
                joint agreement reached under subsection (b); and
                    (E) provide for transition of coverage under the 
                Federal Employee Health Benefits Program of covered 
                employees to coverage under the Postal Service Health 
                Benefits Program on January 1, 2013;
            (2) may provide dental benefits; and
            (3) may provide vision benefits.
    (d) Agreement and Implementation.--If a joint agreement is reached 
under subsection (b)--
            (1) the Postal Service shall implement the Postal Service 
        Health Benefits Program;
            (2) the Postal Service Health Benefits Program shall 
        constitute an agreement between the collective bargaining 
        representatives and the Postal Service for purposes of section 
        1005(f) of title 39, United States Code; and
            (3) covered employees may not participate as employees in 
        the Federal Employees Health Benefits Program.
    (e) Government Plan.--The Postal Service Health Benefits Program 
shall be a government plan as that term is defined under section 3(32) 
of Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1002(32)).
    (f) Report.--Not later than June 30, 2013, the Postal Service shall 
submit a report to the Committee on Homeland Security and Governmental 
Affairs of the Senate and the Committee on Oversight and Government 
Reform of the House of Representatives that--
            (1) reports on the implementation of this section; and
            (2) requests any additional statutory authority that the 
        Postal Service determines is necessary to carry out the 
        purposes of this section.

SEC. 105. 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 requirements relating to pay and compensation 
        comparability under section 1003(a); and
            ``(iii) the policies of this title.''.

                TITLE II--POSTAL SERVICES AND OPERATIONS

SEC. 201. POSTAL FACILITIES.

    Section 404 of title 39, United States Code, is amended by adding 
after subsection (e) the following:
    ``(f) Closing or Consolidation of Certain Postal Facilities.--
            ``(1) Postal facility.--In this subsection, the term 
        `postal facility'--
                    ``(A) means any Postal Service facility that is 
                primarily involved in the preparation, dispatch, or 
                other physical processing of mail; and
                    ``(B) does not include--
                            ``(i) any post office, station, or branch; 
                        or
                            ``(ii) any facility used only for 
                        administrative functions.
            ``(2) Area mail processing study.--
                    ``(A) New area mail processing studies.--After the 
                date of enactment of this subsection, before making a 
                determination under subsection (a)(3) as to the 
                necessity for the closing or consolidation of any 
                postal facility, the Postal Service shall--
                            ``(i) conduct an area mail processing study 
                        relating to that postal facility that includes 
                        a plan to reduce the capacity of the postal 
                        facility, but not close the postal facility;
                            ``(ii) publish the study on the Postal 
                        Service website; and
                            ``(iii) publish a notice that the study is 
                        complete and available to the public, including 
                        on the Postal Service website.
                    ``(B) Completed or ongoing area mail processing 
                studies.--
                            ``(i) In general.--In the case of a postal 
                        facility described in clause (ii), the Postal 
                        Service shall--
                                    ``(I) consider a plan to reduce the 
                                capacity of the postal facility, but 
                                not close the postal facility; and
                                    ``(II) publish the results of the 
                                consideration under subclause (I) with 
                                or as an amendment to the area mail 
                                processing study relating to the postal 
                                facility.
                            ``(ii) Postal facilities.--A postal 
                        facility described in this clause is a postal 
                        facility for which, on or before the date of 
                        enactment of this subsection--
                                    ``(I) an area mail processing study 
                                that does not include a plan to reduce 
                                the capacity of the postal facility, 
                                but not close the facility, has been 
                                completed or is in progress; and
                                    ``(II) a determination as to the 
                                necessity for the closing or 
                                consolidation of the postal facility 
                                has not been made.
            ``(3) Notice, public comment, and public hearing.--If the 
        Postal Service makes a determination under subsection (a)(3) to 
        close or consolidate a postal facility, the Postal Service 
        shall--
                    ``(A) provide notice of the determination to--
                            ``(i) Congress; and
                            ``(ii) the Postal Regulatory Commission;
                    ``(B) provide adequate public notice of the 
                intention of the Postal Service to close or consolidate 
                the postal facility;
                    ``(C) ensure that interested persons have an 
                opportunity to submit public comments during a 45-day 
                period after the notice of intention is provided under 
                subparagraph (B);
                    ``(D) before the 45-day period described in 
                subparagraph (C), provide for public notice of that 
                opportunity by--
                            ``(i) publication on the Postal Service 
                        website;
                            ``(ii) posting at the affected postal 
                        facility; and
                            ``(iii) advertising the date and location 
                        of the public community meeting under 
                        subparagraph (E); and
                    ``(E) during the 45-day period described in 
                subparagraph (C), conduct a public community meeting 
                that provides an opportunity for public comments to be 
                submitted verbally or in writing.
            ``(4) Further considerations.--Not earlier than 30 days 
        after the end of the 45-day period for public comment under 
        paragraph (3), the Postal Service, in making a determination 
        whether or not to close or consolidate a postal facility, shall 
        consider--
                    ``(A) the views presented by interested persons 
                solicited under paragraph (3);
                    ``(B) the effect of the closing or consolidation on 
                the affected community, including any disproportionate 
                impact the closure or consolidation may have on a 
                State, region, or locality;
                    ``(C) the effect of the closing or consolidation on 
                the travel times and distances for affected customers 
                to access services under the proposed closing or 
                consolidation;
                    ``(D) the effect of the closing or consolidation on 
                delivery times for all classes of mail;
                    ``(E) any characteristics of certain geographical 
                areas, such as remoteness, broadband internet 
                availability, and weather-related obstacles to using 
                alternative facilities, that may result in the closing 
                or consolidation having a unique effect; and
                    ``(F) any other factor the Postal Service 
                determines is necessary.
            ``(5) Justification statement.--Before the date on which 
        the Postal Service closes or consolidates a postal facility, 
        the Postal Service shall post on the Postal Service website a 
        closure or consolidation justification statement that 
        includes--
                    ``(A) a response to all public comments received 
                with respect to the considerations described under 
                paragraph (4);
                    ``(B) a description of the considerations made by 
                the Postal Service under paragraph (4); and
                    ``(C) the actions that will be taken by the Postal 
                Service to mitigate any negative effects identified 
                under paragraph (4).
            ``(6) Closing or consolidation of postal facilities.--
                    ``(A) In general.--Not earlier than the 15 days 
                after posting and publishing the final determination 
                and the justification statement under paragraph (6) 
                with respect to a postal facility, the Postal Service 
                may close or consolidate the postal facility.
                    ``(B) Alternative intake of mail.--If the Postal 
                Service closes or consolidates a postal facility under 
                subparagraph (A), the Postal Service shall make 
                reasonable efforts to ensure continued mail receipt 
                from customers of the closed or consolidated postal 
                facility at the same location or at another appropriate 
                location in close geographic proximity to the closed or 
                consolidated postal facility.
            ``(7) Postal service website.--For purposes of any notice 
        required to be published on the Postal Service website under 
        this subsection, the Postal Service shall ensure that the 
        Postal Service website--
                    ``(A) is updated routinely; and
                    ``(B) provides any person, at the option of the 
                person, the opportunity to receive relevant updates by 
                electronic mail.
            ``(8) Protection of certain information.--Nothing in this 
        subsection may be construed to require the Postal Service to 
        disclose--
                    ``(A) any proprietary data, including any reference 
                or citation to proprietary data; and
                    ``(B) any information relating to the security of a 
                postal facility.''.

SEC. 202. ADDITIONAL POSTAL SERVICE PLANNING.

    Section 302(d) of the Postal Accountability and Enhancement Act of 
2006 (39 U.S.C. 3691 note) is amended--
            (1) in paragraph (8), by striking the period at the end and 
        inserting ``; and'';
            (2) by redesignating paragraphs (1) through (8) as 
        subparagraphs (A) through (H), respectively, and adjusting the 
        margins accordingly;
            (3) in the matter preceding subparagraph (A), as so 
        redesignated, by striking ``shall include'' and inserting the 
        following: ``shall--
            ``(1) include''; and
            (4) by adding at the end the following:
            ``(2) where possible, provide for an improvement in 
        customer access to postal services;
            ``(3) consider the impact of any decisions by the Postal 
        Service relating to the implementation of the plan on small 
        communities and rural areas; and
            ``(4) ensure that--
                    ``(A) small communities and rural areas continue to 
                receive regular and effective access to retail postal 
                services after implementation of the plan; and
                    ``(B) the Postal Service solicits community input 
                in accordance with applicable provisions of Federal 
                law.''.

SEC. 203. AREA AND DISTRICT OFFICE STRUCTURE.

    (a) Plan Required.--Not later than 1 year after the date of 
enactment of this Act, the Postal Service shall submit 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--
            (1) a comprehensive strategic plan to govern decisions 
        relating to area and district office structure that considers 
        efficiency, costs, redundancies, mail volume, technological 
        advancements, operational considerations, and other issues that 
        may be relevant to establishing an effective area and district 
        office structure; and
            (2) a 10-year plan, including a timetable, that provides 
        for consolidation of area and district offices wherever the 
        Postal Service determines a consolidation would--
                    (A) be cost effective; and
                    (B) not substantially and adversely affect the 
                operations of the Postal Service.
    (b) Consolidation.--Beginning not later than 1 year after the date 
of enactment of this Act, the Postal Service shall, consistent with the 
plans required under and the criteria described in subsection (a)--
            (1) consolidate district offices that are located within 50 
        miles of each other;
            (2) consolidate area and district offices that have less 
        than the mean mail volume and number of work hours for all area 
        and district offices; and
            (3) relocate area offices to headquarters.
    (c) Updates.--The Postal Service shall update the plans required 
under subsection (a) not less frequently than once every 5 years.

SEC. 204. POST OFFICES; RETAIL SERVICE STANDARDS.

    (a) Closing Post Offices.--Section 404 of title 39, United States 
Code, is amended--
            (1) by striking ``(d)(1)'' and all that follows through 
        ``present their views.'' and inserting the following:
    ``(d)(1) The Postal Service, prior to making a determination under 
subsection (a)(3) of this section as to the necessity for the closing 
or consolidation of any post office, shall--
            ``(A) consider whether--
                    ``(i) to close the post office or consolidate the 
                post office and another post office located within a 
                reasonable distance;
                    ``(ii) instead of closing or consolidating the post 
                office--
                            ``(I) to reduce the number of hours a day 
                        that the post office operates; or
                            ``(II) to continue operating the post 
                        office for the same number of hours a day;
                    ``(iii) to procure a contract providing full, or 
                less than full, retail services in the community served 
                by the post office; or
                    ``(iv) to provide postal services to the community 
                served by the post office through a rural carrier;
            ``(B) provide postal customers served by the post office an 
        opportunity to participate in a nonbinding survey conducted by 
        mail on a preference for an option described in subparagraph 
        (A); and
            ``(C) if the Postal Service determines to close or 
        consolidate the post office, provide adequate notice of its 
        intention to close or consolidate such post office at least 60 
        days prior to the proposed date of such closing or 
        consolidation to persons served by such post office to ensure 
        that such persons will have an opportunity to present their 
        views.''; and
            (2) in subsection (d)(5), in the first sentence--
                    (A) by inserting ``, station, or branch'' after 
                ``post office'';
                    (B) by inserting ``, station, or branch'' after 
                ``such office''; and
                    (C) by striking ``under paragraph (3)''.
    (b) Retail Service Standards.--
            (1) Definition.--In this subsection, the term ``retail 
        postal service'' means service that allows a postal customer 
        to--
                    (A) purchase postage;
                    (B) enter packages into the mail; and
                    (C) procure other services offered by the Postal 
                Service.
            (2) Establishment.--Not later than 6 months after the date 
        of enactment of this Act, the Postal Service shall exercise its 
        authority under section 3691 of title 39, United States Code, 
        to establish service standards for market-dominant products in 
        order to guarantee customers of the Postal Service regular and 
        effective access to retail postal services nationwide 
        (including in territories and possessions of the United States) 
        on a reasonable basis.
            (3) Contents.--The service standards established under 
        paragraph (2) shall--
                    (A) be consistent with--
                            (i) the obligations of the Postal Service 
                        under section 101(b) of title 39, United States 
                        Code; and
                            (ii) the contents of the plan developed 
                        under section 302 of the Postal Accountability 
                        and Enhancement Act of 2006 (39 U.S.C. 3691 
                        note), as amended by section 202 of this Act; 
                        and
                    (B) take into account factors including--
                            (i) geography, including the establishment 
                        of standards for the proximity of retail postal 
                        services to postal customers, including a 
                        consideration of the reasonable maximum time a 
                        postal customer should expect to travel to 
                        access a postal retail location;
                            (ii) population, including population 
                        density, demographic factors such as the age 
                        and disability status of individuals in the 
                        area to be served by a location providing 
                        postal retail services, and other factors that 
                        may impact the ability of postal customers, 
                        including businesses, to travel to a postal 
                        retail location;
                            (iii) the feasibility of offering retail 
                        access to postal services in addition to post 
                        offices, as described in section 302(d) of the 
                        Postal Accountability and Enhancement Act of 
                        2006 (39 U.S.C. 3691 note);
                            (iv) the requirement that the Postal 
                        Service serve remote areas and communities with 
                        transportation challenges, including 
                        communities in which the effects of inclement 
                        weather or other natural conditions might 
                        obstruct or otherwise impede access to retail 
                        postal services; and
                            (v) the ability of postal customers to 
                        access retail postal services in areas that 
                        were served by a post office that was closed or 
                        consolidated during the 1 year period ending on 
                        the date of enactment of this Act.
    (c) Prohibition on Closing Post Offices.--Notwithstanding section 
404(d) of title 39, United States Code, during the period beginning on 
the date of enactment of this Act and ending on the date on which the 
Postal Service establishes the service standards under subsection (b), 
the Postal Service may not close a post office, except as required for 
the immediate protection of health and safety.

SEC. 205. CONVERSION OF DOOR DELIVERY POINTS.

    (a) In General.--Subchapter VII of chapter 36 of title 39, United 
States Code, is amended by adding at the end the following:
``Sec. 3692. Conversion of door delivery points
    ``(a) Definitions.--In this section, the following definitions 
shall apply:
            ``(1) Centralized delivery point.--The term `centralized 
        delivery point' means a group or cluster of mail receptacles at 
        1 delivery point that is within reasonable proximity of the 
        street address associated with the delivery point.
            ``(2) Curbline delivery point.--The term `curbline delivery 
        point' means a delivery point that is--
                    ``(A) adjacent to the street address associated 
                with the delivery point; and
                    ``(B) accessible by vehicle on a street that is not 
                a private driveway.
            ``(3) Door delivery point.--The term `door delivery point' 
        means a delivery point at a door of the structure at a street 
        address.
            ``(4) Sidewalk delivery point.--The term `sidewalk delivery 
        point' means a delivery point on a sidewalk adjacent to the 
        street address associated with the delivery point.
    ``(b) Conversion.--Except as provided in subsection (c), and in 
accordance with the profitability plan required under section 401 and 
standards established by the Postal Service, the Postal Service is 
authorized to, to the maximum extent feasible, convert door delivery 
points to--
            ``(1) curbline delivery points;
            ``(2) sidewalk delivery points; or
            ``(3) centralized delivery points.
    ``(c) Exceptions.--
            ``(1) Continued door delivery.--The Postal Service may 
        allow for the continuation of door delivery due to--
                    ``(A) a physical hardship of a customer;
                    ``(B) weather, in a geographic area where snow 
                removal efforts could obstruct access to mailboxes near 
                a road;
                    ``(C) circumstances in an urban area that preclude 
                efficient use of curbline delivery points;
                    ``(D) other exceptional circumstances, as 
                determined in accordance with regulations issued by the 
                Postal Service; or
                    ``(E) other circumstances in which the Postal 
                Service determines that alternatives to door delivery 
                would not be practical or cost effective.
            ``(2) New door delivery points.--The Postal Service may 
        provide door delivery to a new delivery point in a delivery 
        area that received door delivery on the day before the date of 
        enactment of this section, if the delivery point is established 
        before the delivery area is converted from door delivery under 
        subsection (b).
    ``(d) Solicitation of Comments.--The Postal Service shall establish 
procedures to solicit, consider, and respond to input from individuals 
affected by a conversion under this section.
    ``(e) Review.--Subchapter V of this chapter shall not apply with 
respect to any action taken by the Postal Service under this section.
    ``(f) Report.--Not later than 60 days after the end of each fiscal 
year through fiscal year 2015, the Postal Service shall submit to 
Congress and the Inspector General of the Postal Service a report on 
the implementation of this section during the preceding fiscal year 
that--
            ``(1) includes the number of door delivery points--
                    ``(A) that existed at the end of the fiscal year 
                preceding the preceding fiscal year;
                    ``(B) that existed at the end of the preceding 
                fiscal year;
                    ``(C) that, during the preceding fiscal year, 
                converted to--
                            ``(i) curbline delivery points or sidewalk 
                        delivery points;
                            ``(ii) centralized delivery points; and
                            ``(iii) any other type of delivery point; 
                        and
                    ``(D) for which door delivery was continued under 
                subsection (c)(1);
            ``(2) estimates any cost savings, revenue loss, or decline 
        in the value of mail resulting from the conversions from door 
        delivery that occurred during the preceding fiscal year;
            ``(3) describes the progress of the Postal Service toward 
        achieving the conversions authorized under subsection (b); and
            ``(4) provides such additional information as the Postal 
        Service considers appropriate.''.
    (b) Clerical Amendment.--The table of sections for subchapter VII 
of chapter 36 of title 39, United States Code, is amended by adding at 
the end the following:

``3692. Conversion of door delivery points.''.

SEC. 206. LIMITATIONS ON CHANGES TO MAIL DELIVERY SCHEDULE.

    (a) Limitation on Change in Schedule.--Notwithstanding any other 
provision of law--
            (1) the Postal Service may not establish a general, 
        nationwide delivery schedule of 5 or fewer days per week to 
        street addresses under the authority of the Postal Service 
        under title 39, United States Code, earlier than the date that 
        is 24 months after the date of enactment of this Act; and
            (2) on or after the date that is 24 months after the date 
        of enactment of this Act, the Postal Service may establish a 
        general, nationwide 5-day-per-week delivery schedule to street 
        addresses under the authority of the Postal Service under 
        section 3691 of title 39, United States Code, only in 
        accordance with the requirements and limitations under this 
        section.
    (b) Preconditions.--If the Postal Service intends to establish a 
change in delivery schedule under subsection (a)(2), the Postal Service 
shall--
            (1) identify customers and communities for whom the change 
        may have a disproportionate, negative impact, including the 
        customers identified as ``particularly affected'' in the 
        Advisory Opinion on Elimination of Saturday Delivery issued by 
        the Commission on March 24, 2011;
            (2) develop, to the maximum extent possible, measures to 
        ameliorate any disproportionate, negative impact the change 
        would have on customers and communities identified under 
        paragraph (1), including, where appropriate, providing or 
        expanding access to mailboxes for periodical mailers on days on 
        which the Postal Service does not provide delivery;
            (3) implement measures to increase revenue and reduce 
        costs, including the measures authorized under the amendments 
        made by sections 101, 102, 103, 205, and 209 of this Act;
            (4) evaluate whether any increase in revenue or reduction 
        in costs resulting from the measures implemented under 
        paragraph (3) are sufficient to allow the Postal Service, 
        without implementing a change in delivery schedule under 
        subsection (a), to--
                    (A) become profitable by fiscal year 2015; and
                    (B) achieve long-term financial solvency; and
            (5) not earlier than 15 months after the date of enactment 
        of this Act and not later than 9 months before the effective 
        date proposed by the Postal Service for the change, submit a 
        report on the steps the Postal Service has taken to carry out 
        this subsection to--
                    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate and the Committee on 
                Oversight and Government Reform of the House of 
                Representatives;
                    (B) the Comptroller General of the United States; 
                and
                    (C) the Commission.
    (c) Review.--
            (1) Government accountability office.--Not later than 3 
        months after the date on which the Postal Service submits a 
        report under subsection (b)(5), the Comptroller General shall 
        submit to the Commission and to the Committee on Homeland 
        Security and Governmental Affairs of the Senate and the 
        Committee on Oversight and Government Reform of the House of 
        Representatives a report that contains findings relating to 
        each of the following:
                    (A) Whether the Postal Service has adequately 
                complied with subsection (b)(3), taking into 
                consideration the statutory authority of and 
                limitations on the Postal Service.
                    (B) The accuracy of any statement by the Postal 
                Service that the measures implemented under subsection 
                (b)(3) have increased revenues or reduced costs, and 
                the accuracy of any projection by the Postal Service 
                relating to increased revenue or reduced costs 
                resulting from the measures implemented under 
                subsection (b)(3).
                    (C) The adequacy and methodological soundness of 
                any evaluation conducted by the Postal Service under 
                subsection (b)(4) that led the Postal Service to assert 
                the necessity of a change in delivery schedule under 
                subsection (a)(2).
                    (D) Whether, based on an analysis of the measures 
                implemented by the Postal Service to increase revenues 
                and reduce costs, projections of increased revenue and 
                cost savings, and the details of the profitability plan 
                required under section 401, a change in delivery 
                schedule is necessary to allow the Postal Service to--
                            (i) become profitable by fiscal year 2015; 
                        and
                            (ii) achieve long-term financial solvency.
            (2) Postal regulatory commission.--
                    (A) Request.--Not later than 6 months before the 
                proposed effective date of a change in delivery 
                schedule under subsection (a), the Postal Service shall 
                submit to the Commission a request for an advisory 
                opinion relating to the change.
                    (B) Advisory opinion.--
                            (i) In general.--The Commission shall--
                                    (I) issue an advisory opinion with 
                                respect to a request under subparagraph 
                                (A), in accordance with the time limits 
                                for the issuance of advisory opinions 
                                under section 3661(b)(2) of title 39, 
                                United States Code, as amended by this 
                                Act; and
                                    (II) submit the advisory opinion to 
                                the Committee on Homeland Security and 
                                Governmental Affairs of the Senate and 
                                the Committee on Oversight and 
                                Government Reform of the House of 
                                Representatives.
                            (ii) Required determinations.--An advisory 
                        opinion under clause (i) shall determine--
                                    (I) whether the measures developed 
                                under subsection (b)(2) ameliorate any 
                                disproportionate, negative impact that 
                                a change in schedule may have on 
                                customers and communities identified 
                                under subsection (b)(1); and
                                    (II) based on the report submitted 
                                by the Comptroller General under 
                                paragraph (1)--
                                            (aa) whether the Postal 
                                        Service has implemented 
                                        measures to reduce operating 
                                        losses as required under 
                                        subsection (b)(3);
                                            (bb) whether the 
                                        implementation of the measures 
                                        described in item (aa) has 
                                        increased revenues or reduced 
                                        costs, or is projected to 
                                        further increase revenues or 
                                        reduce costs in the future; and
                                            (cc) whether a change in 
                                        schedule under subsection 
                                        (a)(2) is necessary to allow 
                                        the Postal Service to--

                                                    (AA) become 
                                                profitable by fiscal 
                                                year 2015; and

                                                    (BB) achieve long-
                                                term financial 
                                                solvency.

            (3) Prohibition on implementation of change in schedule.--
        The Postal Service may not implement a change in delivery 
        schedule under subsection (a)(2)--
                    (A) before the date on which the Comptroller 
                General submits the report required under paragraph 
                (1); and
                    (B) unless the Commission determines under 
                paragraph (2)(B)(ii)(II)(cc) that the Comptroller 
                General has concluded that the change is necessary to 
                allow the Postal Service to become profitable by fiscal 
                year 2015 and to achieve long-term financial solvency, 
                without regard to whether the Commission determines 
                that the change is advisable.
    (d) Additional Limitations.--
            (1) Rules of construction.--Nothing in this subsection 
        shall be construed to--
                    (A) authorize the reduction, or require an 
                increase, in delivery frequency for any route for which 
                the Postal Service provided delivery on fewer than 6 
                days per week on the date of enactment of this Act;
                    (B) authorize any change in--
                            (i) the days and times that postal retail 
                        service or any mail acceptance is available at 
                        postal retail facilities or processing 
                        facilities; or
                            (ii) the locations at which postal retail 
                        service or mail acceptance occurs at postal 
                        retail facilities or processing facilities;
                    (C) authorize any change in the frequency of 
                delivery to a post office box;
                    (D) prohibit the collection or delivery of a 
                competitive mail product on a weekend, a recognized 
                Federal holiday, or any other specific day of the week; 
                or
                    (E) prohibit the Postal Service from exercising its 
                authority to make changes to processing or retail 
                networks.
            (2) Prohibition on consecutive days without mail 
        delivery.--The Postal Service shall ensure that, under any 
        change in schedule under subsection (a)(2), at no time shall 
        there be more than 2 consecutive days without mail delivery to 
        street addresses, including recognized Federal holidays.

SEC. 207. 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, the Postal Service 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) issue an advisory opinion not later than--
                            ``(i) 90 days after the date on which the 
                        Postal Regulatory Commission receives the 
                        proposal; or
                            ``(ii) a date that the Postal Regulatory 
                        Commission and the Postal Service may, not 
                        later than 1 week after the date on which the 
                        Postal Regulatory Commission receives the 
                        proposal, determine jointly.
            ``(3) Response to opinion.--The Postal Service shall submit 
        to the President and to Congress a response to an advisory 
        opinion issued under paragraph (2) that includes--
                    ``(A) a statement of whether the Postal Service 
                plans to modify the proposal to address any concerns or 
                implement any recommendations made by the Commission; 
                and
                    ``(B) for any concern that the Postal Service 
                determines not to address and any recommendation that 
                the Postal Service determines not to implement, the 
                reasons for the determination.
            ``(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);
                    ``(B) on or after a date that the Postal Regulatory 
                Commission and the Postal Service may, not later than 1 
                week after the date on which the Postal Regulatory 
                Commission receives a proposal under paragraph (2), 
                determine jointly; or
                    ``(C) 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.
            ``(5) Modification of timeline.--At any time, the Postal 
        Service and the Postal Regulatory Commission may jointly 
        redetermine a date determined under paragraph (2)(B)(ii) or 
        (4)(B).''.

SEC. 208. PUBLIC PROCEDURES FOR SIGNIFICANT CHANGES TO MAILING 
              SPECIFICATIONS.

    (a) Notice and Opportunity for Comment Required.--Effective on the 
date on which the Postal Service issues a final rule under subsection 
(c), before making a change to mailing specifications that could pose a 
significant burden to the customers of the Postal Service and that is 
not reviewed by the Commission, the Postal Service shall--
            (1) publish a notice of the proposed change to the 
        specification in the Federal Register;
            (2) provide an opportunity for the submission of written 
        comments concerning the proposed change for a period of not 
        less than 30 days;
            (3) after considering any comments submitted under 
        paragraph (2) and making any modifications to the proposed 
        change that the Postal Service determines are necessary, 
        publish--
                    (A) the final change to the specification in the 
                Federal Register;
                    (B) responses to any comments submitted under 
                paragraph (2); and
                    (C) an analysis of the financial impact that the 
                proposed change would have on--
                            (i) the Postal Service; and
                            (ii) the customers of the Postal Service 
                        that would be affected by the proposed change; 
                        and
            (4) establish an effective date for the change to mailing 
        specifications that is not earlier than 30 days after the date 
        on which the Postal Service publishes the final change under 
        paragraph (3).
    (b) Exception for Good Cause.--If the Postal Service determines 
that there is an urgent and compelling need for a change to a mailing 
specification described in subsection (a) in order to avoid 
demonstrable harm to the operations of the Postal Service or to the 
public interest, the Postal Service may--
            (1) change the mailing specifications by--
                    (A) issuing an interim final rule that--
                            (i) includes a finding by the Postal 
                        Service that there is good cause for the 
                        interim final rule;
                            (ii) provides an opportunity for the 
                        submission of written comments on the interim 
                        final rule for a period of not less than 30 
                        days; and
                            (iii) establishes an effective date for the 
                        interim final rule that is not earlier than 30 
                        days after the date on which the interim final 
                        rule is issued; and
                    (B) publishing in the Federal Register a response 
                to any comments submitted under subparagraph (A)(ii); 
                and
            (2) waive the requirement under paragraph (1)(A)(iii) or 
        subsection (a)(4).
    (c) Rules Relating to Notice and Comment.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Postal Service shall issue rules 
        governing the provision of notice and opportunity for comment 
        for changes in mailing specifications under subsection (a).
            (2) Rules.--In issuing the rules required under paragraph 
        (1), the Postal Service shall--
                    (A) publish a notice of proposed rulemaking in the 
                Federal Register that includes proposed definitions of 
                the terms ``mailing specifications'' and ``significant 
                burden'';
                    (B) provide an opportunity for the submission of 
                written comments concerning the proposed change for a 
                period of not less than 30 days; and
                    (C) publish--
                            (i) the rule in final form in the Federal 
                        Register; and
                            (ii) responses to the comments submitted 
                        under subparagraph (B).

SEC. 209. NONPOSTAL PRODUCTS AND SERVICES.

    (a) In General.--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) after the date of enactment of the 21st Century 
        Postal Service Act of 2012, and except as provided in 
        subsection (e), to provide other services that are not postal 
        services, after the Postal Regulatory Commission--
                    ``(A) makes a determination that the provision of 
                such services--
                            ``(i) uses the processing, transportation, 
                        delivery, retail network, or technology of the 
                        Postal Service;
                            ``(ii) is consistent with the public 
                        interest and a demonstrated or potential public 
                        demand for--
                                    ``(I) the Postal Service to provide 
                                the services instead of another entity 
                                providing the services; or
                                    ``(II) the Postal Service to 
                                provide the services in addition to 
                                another entity providing the services;
                            ``(iii) would not create unfair competition 
                        with the private sector; and
                            ``(iv) has the potential to improve the net 
                        financial position of the Postal Service, based 
                        on a market analysis provided to the Postal 
                        Regulatory Commission by the Postal Service; 
                        and
                    ``(B) for services that the Postal Regulatory 
                Commission determines meet the criteria under 
                subparagraph (A), classifies each such service as a 
                market-dominant product, competitive product, or 
                experimental product, as required under chapter 36 of 
                title 39, United States Code;''; and
            (2) in subsection (e)(2), by striking ``Nothing'' and all 
        that follows through ``except that the'' and inserting ``The''.
    (b) Market Analysis.--During the 5-year period beginning on the 
date of enactment of this Act, the Postal Service shall submit a copy 
of any market analysis provided to the Commission under section 
404(a)(6)(A)(iv) of title 39, United States Code, as amended by this 
section, to the Committee on Homeland Security and Governmental Affairs 
of the Senate and the Committee on Oversight and Government Reform of 
the House of Representatives.

             TITLE III--FEDERAL EMPLOYEES' COMPENSATION ACT

SEC. 301. SHORT TITLE; REFERENCES.

    (a) Short Title.--This title may be cited as the ``Workers' 
Compensation Reform Act of 2012''.
    (b) References.--Except as otherwise expressly provided, whenever 
in this title an amendment or repeal is expressed in terms of an 
amendment to, or a repeal of, a section or other provision, the 
reference shall be considered to be made to a section or other 
provision of title 5, United States Code.

SEC. 302. FEDERAL WORKERS COMPENSATION REFORMS FOR RETIREMENT-AGE 
              EMPLOYEES.

    (a) Conversion of Entitlement at Retirement Age.--
            (1) Definitions.--Section 8101 is amended
                    (A) in paragraph (18), by striking ``and'' at the 
                end;
                    (B) in paragraph (19), by striking ``and'' at the 
                end;
                    (C) in paragraph (20), by striking the period at 
                the end and inserting a semicolon; and
                    (D) by adding at the end the following:
            ``(21) `retirement age' has the meaning given that term 
        under section 216(l)(1) of the Social Security Act (42 U.S.C. 
        416(l)(1));
            ``(22) `covered claim for total disability' means a claim 
        for a period of total disability that commenced before the date 
        of enactment of the Workers' Compensation Reform Act of 2012;
            ``(23) `covered claim for partial disability' means a claim 
        for a period of partial disability that commenced before the 
        date of enactment of the Workers' Compensation Reform Act of 
        2012; and
            ``(24) `individual who has an exempt disability condition' 
        means an individual--
                    ``(A) who--
                            ``(i) is eligible to receive continuous 
                        periodic compensation for total disability 
                        under section 8105 on the date of enactment of 
                        the Workers' Compensation Reform Act of 2012; 
                        and
                            ``(ii) meets the criteria under section 
                        8105(c);
                    ``(B) who, on the date of enactment of the Workers' 
                Compensation Reform Act of 2012--
                            ``(i) is eligible to receive continuous 
                        periodic compensation for total disability 
                        under section 8105; and
                            ``(ii) has sustained a currently 
                        irreversible severe mental or physical 
                        disability for which the Secretary of Labor has 
                        authorized, for at least the 1-year period 
                        ending on the date of enactment of the Workers' 
                        Compensation Reform Act of 2012, constant in-
                        home care or custodial care, such as placement 
                        in a nursing home; or
                    ``(C) who is eligible to receive continuous 
                periodic compensation for total disability under 
                section 8105--
                            ``(i) for not less than the 3-year period 
                        ending on the date of enactment of the Workers' 
                        Compensation Reform Act of 2012; or
                            ``(ii) if the individual became eligible to 
                        receive continuous periodic compensation for 
                        total disability under section 8105 during the 
                        period beginning on the date that is 3 years 
                        before the date of enactment of the Workers' 
                        Compensation Reform Act of 2012 and ending on 
                        such date of enactment, for not less than the 
                        3-year period beginning on the date on which 
                        the individual became eligible.''.
            (2) Total disability.--Section 8105 is amended--
                    (A) in subsection (a), by striking ``If'' and 
                inserting ``In General.--Subject to subsection (b), 
                if'';
                    (B) by redesignating subsection (b) as subsection 
                (c); and
                    (C) by inserting after subsection (a) the 
                following:
    ``(b) Conversion of Entitlement at Retirement Age.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        basic compensation for total disability for an employee who has 
        attained retirement age shall be 50 percent of the monthly pay 
        of the employee.
            ``(2) Exceptions.--
                    ``(A) Covered recipients who are retirement age or 
                have an exempt disability condition.--Paragraph (1) 
                shall not apply to a covered claim for total disability 
                by an employee if the employee--
                            ``(i) on the date of enactment of the 
                        Workers' Compensation Reform Act of 2012, has 
                        attained retirement age; or
                            ``(ii) is an individual who has an exempt 
                        disability condition.
                    ``(B) Transition period for certain employees.--For 
                a covered claim for total disability by an employee who 
                is not an employee described in subparagraph (A), the 
                employee shall receive the basic compensation for total 
                disability provided under subsection (a) until the 
                later of--
                            ``(i) the date on which the employee 
                        attains retirement age; and
                            ``(ii) the date that is 3 years after the 
                        date of enactment of the Workers' Compensation 
                        Reform Act of 2012.''.
            (3) Partial disability.--Section 8106 is amended--
                    (A) in subsection (a), by striking ``If'' and 
                inserting ``In General.--Subject to subsection (b), 
                if'';
                    (B) by redesignating subsections (b) and (c) as 
                subsections (c) and (d), respectively; and
                    (C) by inserting after subsection (a) the 
                following:
    ``(b) Conversion of Entitlement at Retirement Age.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        basic compensation for partial disability for an employee who 
        has attained retirement age shall be 50 percent of the 
        difference between the monthly pay of the employee and the 
        monthly wage-earning capacity of the employee after the 
        beginning of the partial disability.
            ``(2) Exceptions.--
                    ``(A) Covered recipients who are retirement age.--
                Paragraph (1) shall not apply to a covered claim for 
                partial disability by an employee if, on the date of 
                enactment of the Workers' Compensation Reform Act of 
                2012, the employee has attained retirement age.
                    ``(B) Transition period for certain employees.--For 
                a covered claim for partial disability by an employee 
                who is not an employee described in subparagraph (A), 
                the employee shall receive basic compensation for 
                partial disability in accordance with subsection (a) 
                until the later of--
                            ``(i) the date on which the employee 
                        attains retirement age; and
                            ``(ii) the date that is 3 years after the 
                        date of enactment of the Workers' Compensation 
                        Reform Act of 2012.''.

SEC. 303. AUGMENTED COMPENSATION FOR DEPENDENTS.

    (a) In General.--Section 8110 is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following:
    ``(b) Termination of Augmented Compensation.--
            ``(1) In general.--Subject to paragraph (2), augmented 
        compensation for dependants under subsection (c) shall not be 
        provided.
            ``(2) Exceptions.--
                    ``(A) Total disability.--For a covered claim for 
                total disability by an employee--
                            ``(i) the employee shall receive augmented 
                        compensation under subsection (c) if the 
                        employee is an individual who has an exempt 
                        disability condition; and
                            ``(ii) the employee shall receive augmented 
                        compensation under subsection (c) until the 
                        date that is 3 years after the date of 
                        enactment of the Workers' Compensation Reform 
                        Act of 2012 if the employee is not an employee 
                        described in clause (i).
                    ``(B) Partial disability.--For a covered claim for 
                partial disability by an employee, the employee shall 
                receive augmented compensation under subsection (c) 
                until the date that is 3 years after the date of 
                enactment of the Workers' Compensation Reform Act of 
                2012.
                    ``(C) Permanent disability compensated by a 
                schedule.--For a claim for a permanent disability 
                described in section 8107(a) by an employee that 
                commenced before the date of enactment of the Workers' 
                Compensation Reform Act of 2012, the employee shall 
                receive augmented compensation under subsection (c).''.
    (b) Maximum and Minimum Monthly Payments.--Section 8112 is 
amended--
            (1) in subsection (a)--
                    (A) by inserting ``subsections (b) and (c) and'' 
                before ``section 8138'';
                    (B) by striking ``including augmented compensation 
                under section 8110 of this title but''; and
                    (C) by striking ``75 percent'' each place it 
                appears and inserting ``66\2/3\ percent'';
            (2) by redesignating subsection (b) as subsection (c);
            (3) by inserting after subsection (a) the following:
    ``(b) Exceptions.--
            ``(1) Covered disability condition.--For a covered claim 
        for total disability by an employee, if the employee is an 
        individual who has an exempt disability condition--
                    ``(A) the monthly rate of compensation for 
                disability that is subject to the maximum and minimum 
                monthly amounts under subsection (a) shall include any 
                augmented compensation under section 8110; and
                    ``(B) subsection (a) shall be applied by 
                substituting `75 percent' for `66\2/3\ percent' each 
                place it appears.
            ``(2) Partial disability.--For a covered claim for partial 
        disability by an employee, until the date that is 3 years after 
        the date of enactment of the Workers' Compensation Reform Act 
        of 2012--
                    ``(A) the monthly rate of compensation for 
                disability that is subject to the maximum and minimum 
                monthly amounts under subsection (a) shall include any 
                augmented compensation under section 8110; and
                    ``(B) subsection (a) shall be applied by 
                substituting `75 percent' for `66\2/3\ percent' each 
                place it appears.''; and
            (4) in subsection (c), as redesignated by paragraph (2), by 
        striking ``subsection (a)'' and inserting ``subsections (a) and 
        (b)''.
    (c) Death Benefits Generally.--Section 8133 is amended--
            (1) in subsections (a) and (e), by striking ``75 percent'' 
        each place it appears and inserting ``66 \2/3\ percent (except 
        as provided in subsection (g))''; and
            (2) by adding at the end the following:
    ``(g) If the death occurred before the date of enactment of the 
Workers' Compensation Reform Act of 2012, subsections (a) and (e) shall 
be applied by substituting `75 percent' for `66\2/3\ percent' each 
place it appears.''.
    (d) Death Benefits for Civil Air Patrol Volunteers.--Section 8141 
is amended--
            (1) in subsection (b)(2)(B) by striking ``75 percent'' and 
        inserting ``66\2/3\ percent (except as provided in subsection 
        (c))'';
            (2) by redesignating subsection (c) as subsection (d); and
            (3) by inserting after subsection (b) the following:
    ``(c) If the death occurred before the date of enactment of the 
Workers' Compensation Reform Act of 2012, subsection (b)(2)(B) shall be 
applied by substituting `75 percent' for `66\2/3\ percent'.''.

SEC. 304. SCHEDULE COMPENSATION PAYMENTS.

    Section 8107 is amended--
            (1) in subsection (a), by striking ``at the rate of 66\2/3\ 
        percent of his monthly pay'' and inserting ``at the rate 
        specified under subsection (d)''; and
            (2) by adding at the end the following:
    ``(d) Rate for Compensation.--
            ``(1) Annual salary.--
                    ``(A) In general.--Except as provided in paragraph 
                (2), the rate under subsection (a) shall be the rate of 
                66\2/3\ percent of the annual salary level established 
                under subparagraph (B), in a lump sum equal to the 
                present value (as calculated under subparagraph (C)) of 
                the amount of compensation payable under the schedule.
                    ``(B) Establishment.--
                            ``(i) In general.--The Secretary of Labor 
                        shall establish an annual salary for purposes 
                        of subparagraph (A) in the amount the Secretary 
                        determines will result in the aggregate cost of 
                        payments made under this section being equal to 
                        what would have been the aggregate cost of 
                        payments under this section if the amendments 
                        made by section 304(a) of the Workers' 
                        Compensation Reform Act of 2012 had not been 
                        enacted.
                            ``(ii) Cost of living adjustment.--The 
                        annual salary established under clause (i) 
                        shall be increased on March 1 of each year by 
                        the amount determined by the Secretary of Labor 
                        to represent the percent change in the price 
                        index published for December of the preceding 
                        year over the price index published for the 
                        December of the year prior to the preceding 
                        year, adjusted to the nearest one-tenth of 1 
                        percent.
                    ``(C) Present value.--The Secretary of Labor shall 
                calculate the present value for purposes of 
                subparagraph (A) using a rate of interest equal to the 
                average market yield for outstanding marketable 
                obligations of the United States with a maturity of 2 
                years on the first business day of the month in which 
                the compensation is paid or, in the event that such 
                marketable obligations are not being issued on such 
                date, at an equivalent rate selected by the Secretary 
                of Labor, true discount compounded annually.
            ``(2) Certain injuries.--For an injury that occurred before 
        the date of enactment of the Workers' Compensation Reform Act 
        of 2012, the rate under subsection (a) shall be 66\2/3\ percent 
        of the employee's monthly pay.
    ``(e) Simultaneous Receipt.--
            ``(1) Total disability.--An employee who receives 
        compensation for total disability under section 8105 may only 
        receive the lump sum of schedule compensation under this 
        section in addition to and simultaneously with the benefits for 
        total disability after the earlier of--
                    ``(A) the date on which the basic compensation for 
                total disability of the employee becomes 50 percent of 
                the monthly pay of the employee under section 8105(b); 
                or
                    ``(B) the date on which augmented compensation of 
                the employee terminates under section 
                8110(b)(2)(A)(ii), if the employee receives such 
                compensation.
            ``(2) Partial disability.--An employee who receives 
        benefits for partial disability under section 8106 may only 
        receive the lump sum of schedule compensation under this 
        section in addition to and simultaneously with the benefits for 
        partial disability after the earlier of--
                    ``(A) the date on which the basic compensation for 
                partial disability of the employee becomes 50 percent 
                of the difference between the monthly pay of the 
                employee and the monthly wage-earning capacity of the 
                employee after the beginning of the partial disability 
                under section 8106(b); or
                    ``(B) the date on which augmented compensation of 
                the employee terminates under section 8110(b)(2)(B), if 
                the employee receives such compensation.''.

SEC. 305. VOCATIONAL REHABILITATION.

    (a) In General.--Section 8104 is amended--
            (1) in subsection (a)--
                    (A) by striking ``(a) The Secretary of Labor may'' 
                and all that follows through ``undergo vocational 
                rehabilitation.'' and inserting the following:
    ``(a) In General.--
            ``(1) Direction.--Except as provided in paragraph (2), not 
        earlier than the date that is 6 months after the date on which 
        an individual eligible for wage-loss compensation under section 
        8105 or 8106 is injured, or by such other date as the Secretary 
        of Labor determines it would be reasonable under the 
        circumstances for the individual to begin vocational 
        rehabilitation, and if vocational rehabilitation may enable the 
        individual to become capable of more gainful employment, the 
        Secretary of Labor shall direct the individual to participate 
        in developing a comprehensive return to work plan and to 
        undergo vocational rehabilitation at a location a reasonable 
        distance from the residence of the individual.'';
                    (B) by striking ``the Secretary of Health, 
                Education, and Welfare in carrying out the purposes of 
                chapter 4 of title 29'' and inserting ``the Secretary 
                of Education in carrying out the purposes of the 
                Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.)'';
                    (C) by striking ``under section 32(b)(1) of title 
                29'' and inserting ``under section 5 of the 
                Rehabilitation Act of 1973 (29 U.S.C. 704)''; and
                    (D) by adding at the end the following:
            ``(2) Exception.--The Secretary of Labor may not direct an 
        individual who has attained retirement age to participate in 
        developing a comprehensive return to work plan or to undergo 
        vocational rehabilitation.'';
            (2) by redesignating subsection (b) as subsection (c);
            (3) by inserting after subsection (a) the following:
    ``(b) Contents of Return to Work Plan.--A return to work plan 
developed under subsection (a)--
            ``(1) shall--
                    ``(A) set forth specific measures designed to 
                increase the wage-earning capacity of an individual;
                    ``(B) take into account the prior training and 
                education of the individual and the training, 
                educational, and employment opportunities reasonably 
                available to the individual; and
                    ``(C) provide that any employment undertaken by the 
                individual under the return to work plan be at a 
                location a reasonable distance from the residence of 
                the individual;
            ``(2) may provide that the Secretary will pay out of 
        amounts in the Employees' Compensation Fund reasonable expenses 
        of vocational rehabilitation (which may include tuition, books, 
        training fees, supplies, equipment, and child or dependent 
        care) during the course of the plan; and
            ``(3) may not be for a period of more than 2 years, unless 
        the Secretary finds good cause to grant an extension, which may 
        be for not more than 2 years.'';
            (4) in subsection (c), as so redesignated--
                    (A) by inserting ``Compensation.--'' before 
                ``Notwithstanding''; and
                    (B) by striking ``, other than employment 
                undertaken pursuant to such rehabilitation''; and
            (5) by adding at the end the following:
    ``(d) Assisted Reemployment Agreements.--
            ``(1) In general.--The Secretary may enter into an assisted 
        reemployment agreement with an agency or instrumentality of any 
        branch of the Federal Government or a State or local government 
        or a private employer that employs an individual eligible for 
        wage-loss compensation under section 8105 or 8106 to enable the 
        individual to return to productive employment.
            ``(2) Contents.--An assisted reemployment agreement under 
        paragraph (1)--
                    ``(A) may provide that the Secretary will use 
                amounts in the Employees' Compensation Fund to 
                reimburse an employer in an amount equal to not more 
                than 100 percent of the compensation the individual 
                would otherwise receive under section 8105 or 8106; and
                    ``(B) may not be for a period of more than 3 years.
    ``(e) List.--To facilitate the hiring of individuals eligible for 
wage-loss compensation under section 8105 or 8106, the Secretary shall 
provide a list of such individuals to the Office of Personnel 
Management, which the Office of Personnel Management shall provide to 
all agencies and instrumentalities of the Federal Government.''.
    (b) Employees' Compensation Fund.--Section 8147 is amended by 
adding at the end:
    ``(d) Notwithstanding subsection (b), any benefits or other 
payments paid to or on behalf of an employee under this subchapter or 
any extension or application thereof for a recurrence of injury, 
consequential injury, aggravation of injury, or increase in percentage 
of impairment to a member for which compensation is provided under the 
schedule under section 8107 suffered in a permanent position with an 
agency or instrumentality of the United States while the employment 
with the agency or instrumentality is covered under an assisted 
reemployment agreement entered into under section 8104(d) shall not be 
included in total cost of benefits and other payments in the statement 
provided to the agency or instrumentality under subsection (b) if the 
injury was originally incurred in a position not covered by an assisted 
reemployment agreement.''.
    (c) Termination of Vocational Rehabilitation Requirement After 
Retirement Age.--Section 8113(b) is amended by adding at the end the 
following: ``An individual who has attained retirement age may not be 
required to undergo vocational rehabilitation.''.
    (d) Mandatory Benefit Reduction for Noncompliance.--Section 8113(b) 
is amended by striking ``may reduce'' and inserting ``shall reduce''.
    (e) Technical and Conforming Amendments.--
            (1) In general.--Subchapter III of chapter 15 of title 31, 
        United States Code, is amended by adding at the end the 
        following:
``Sec. 1538. Authorization for assisted reemployment
    ``Funds may be transferred from the Employees' Compensation Fund 
established under section 8147 of title 5 to the applicable 
appropriations account for an agency or instrumentality of any branch 
of the Federal Government for the purposes of reimbursing the agency or 
instrumentality in accordance with an assisted reemployment agreement 
entered into under section 8104 of title 5.''.
            (2) Table of sections.--The table of sections for chapter 
        15 of title 31, United States Code, is amended by inserting 
        after the item relating to section 1537 the following:

``1538. Authorization for assisted reemployment.''.

SEC. 306. REPORTING REQUIREMENTS.

    (a) In General.--Chapter 81 is amended by inserting after section 
8106 the following:
``Sec. 8106a. Reporting requirements
    ``(a) Definition.--In this section, the term `employee receiving 
compensation' means an employee who--
            ``(1) is paid compensation under section 8105 or 8106; and
            ``(2) has not attained retirement age.
    ``(b) Authority.--The Secretary of Labor shall require an employee 
receiving compensation to report the earnings of the employee receiving 
compensation from employment or self-employment, by affidavit or 
otherwise, in the manner and at the times the Secretary specifies.
    ``(c) Contents.--An employee receiving compensation shall include 
in a report required under subsection (a) the value of housing, board, 
lodging, and other advantages which are part of the earnings of the 
employee receiving compensation in employment or self-employment and 
the value of which can be estimated.
    ``(d) Failure To Report and False Reports.--
            ``(1) In general.--An employee receiving compensation who 
        fails to make an affidavit or other report required under 
        subsection (b) or who knowingly omits or understates any part 
        of the earnings of the employee in such an affidavit or other 
        report shall forfeit the right to compensation with respect to 
        any period for which the report was required.
            ``(2) Forfeited compensation.--Compensation forfeited under 
        this subsection, if already paid to the employee receiving 
        compensation, shall be recovered by a deduction from the 
        compensation payable to the employee or otherwise recovered 
        under section 8129, unless recovery is waived under that 
        section.''.
    (b) Technical and Conforming Amendments.--The table of sections for 
chapter 81 is amended by inserting after the item relating to section 
8106 the following:

``8106a. Reporting requirements.''.

SEC. 307. DISABILITY MANAGEMENT REVIEW; INDEPENDENT MEDICAL 
              EXAMINATIONS.

    Section 8123 is amended by adding at the end the following:
    ``(e) Disability Management Review.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `covered employee' means an employee 
                who is in continuous receipt of compensation for total 
                disability under section 8105 for a period of not less 
                than 6 months; and
                    ``(B) the term `disability management review 
                process' means the disability management review process 
                established under paragraph (2)(A).
            ``(2) Establishment.--The Secretary of Labor shall--
                    ``(A) establish a disability management review 
                process for the purpose of certifying and monitoring 
                the disability status and extent of injury of each 
                covered employee; and
                    ``(B) promulgate regulations for the administration 
                of the disability management review process.
            ``(3) Physical examinations required.--Under the disability 
        management review process, the Secretary of Labor shall 
        periodically require covered employees to submit to physical 
        examinations under subsection (a) by physicians selected by the 
        Secretary. A physician conducting a physical examination of a 
        covered employee shall submit to the Secretary a report 
        regarding the nature and extent of the injury to and disability 
        of the covered employee.
            ``(4) Frequency.--
                    ``(A) In general.--The regulations promulgated 
                under paragraph (2)(B) shall specify the process and 
                criteria for determining when and how frequently a 
                physical examination should be conducted for a covered 
                employee.
                    ``(B) Minimum frequency.--
                            ``(i) Initial.--An initial physical 
                        examination shall be conducted not more than a 
                        brief period after the date on which a covered 
                        employee has been in continuous receipt of 
                        compensation for total disability under section 
                        8015 for 6 months.
                            ``(ii) Subsequent examinations.--After the 
                        initial physical examination, physical 
                        examinations of a covered employee shall be 
                        conducted not less than once every 3 years.
            ``(5) Employing agency or instrumentality requests.--
                    ``(A) In general.--The agency or instrumentality 
                employing an employee who has made a claim for 
                compensation for total disability under section 8105 
                may at any time submit a request for the Secretary of 
                Labor to promptly require the employee to submit to a 
                physical examination under this subsection.
                    ``(B) Requesting officer.--A request under 
                subparagraph (A) shall be made on behalf of an agency 
                or instrumentality by--
                            ``(i) the head of the agency or 
                        instrumentality;
                            ``(ii) the Chief Human Capital Officer of 
                        the agency or instrumentality; or
                            ``(iii) if the agency or instrumentality 
                        does not have a Chief Human Capital Officer, an 
                        officer with responsibilities similar to those 
                        of a Chief Human Capital Officer designated by 
                        the head of the agency or instrumentality to 
                        make requests under this paragraph.
                    ``(C) Information.--A request under subparagraph 
                (A) shall be in writing and accompanied by--
                            ``(i) a certification by the officer making 
                        the request that the officer has reviewed the 
                        relevant material in the employee's file;
                            ``(ii) an explanation of why the officer 
                        has determined, based on the materials in the 
                        file and other information known to the 
                        officer, that requiring a physical examination 
                        of the employee under this subsection is 
                        necessary; and
                            ``(iii) copies of the materials relating to 
                        the employee that are relevant to the officer's 
                        determination and request, unless the agency or 
                        instrumentality has a reasonable basis for not 
                        providing the materials.
                    ``(D) Examination.--If the Secretary of Labor 
                receives a request under this paragraph before an 
                employee has undergone an initial physical examination 
                under paragraph (4)(B)(i), the Secretary shall promptly 
                require the physical examination of the employee. A 
                physical examination under this subparagraph shall 
                satisfy the requirement under paragraph (4)(B)(i) that 
                an initial physical examination be conducted.
                    ``(E) After initial examination.--
                            ``(i) In general.--If the Secretary of 
                        Labor receives a request under this paragraph 
                        after an employee has undergone an initial 
                        physical examination under paragraph (4)(B)(i), 
                        the Secretary shall--
                                    ``(I) review the request and the 
                                information, explanation, and other 
                                materials submitted with the request; 
                                and
                                    ``(II) determine whether to require 
                                the physical examination of the 
                                employee who is the subject of the 
                                request.
                            ``(ii) Not granted.--If the Secretary 
                        determines not to grant a request described in 
                        clause (i), the Secretary shall promptly notify 
                        the officer who made the request and provide an 
                        explanation of the reasons why the request was 
                        denied.''.

SEC. 308. WAITING PERIOD.

    (a) In General.--Section 8117 is amended--
            (1) in the section heading, by striking ``Time of accrual 
        of right'' and inserting ``Waiting period'';
            (2) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``An employee'' and all that follows through 
                ``is not entitled'' and inserting ``In General.--An 
                employee is not entitled to continuation of pay within 
                the meaning of section 8118 for the first 3 days of 
                temporary disability or, if section 8118 does not 
                apply, is not entitled'';
                    (B) in paragraph (1), by adding ``or'' at the end;
                    (C) by striking paragraph (2); and
                    (D) by redesignating paragraph (3) as paragraph 
                (2); and
            (3) in subsection (b)--
                    (A) by striking ``A Postal Service'' the first 
                place it appears and all that follows through ``A 
                Postal Service'' the second place it appears and 
                inserting ``Use of Leave.--An'';
                    (B) by striking ``that 3-day period'' and inserting 
                ``the first 3 days of temporary disability''; and
                    (C) by striking ``or is followed by permanent 
                disability''.
    (b) Continuation of Pay.--Section 8118 is amended--
            (1) in the section heading, by striking ``; election to use 
        annual or sick leave'';
            (2) in subsection (b)(1), by striking ``section 8117(b)'' 
        and inserting ``section 8117'';
            (3) by striking subsection (c); and
            (4) by redesignating subsections (d) and (e) as subsections 
        (c) and (d), respectively.
    (c) Technical and Conforming Amendments.--The table of sections for 
chapter 81 is amended by striking the items relating to sections 8117 
and 8118 and inserting the following:

``8117. Waiting period.
``8118. Continuation of pay.''.

SEC. 309. ELECTION OF BENEFITS.

    (a) In General.--Section 8116 is amended by adding at the end the 
following:
    ``(e) Retirement Benefits.--
            ``(1) In general.--An individual entitled to compensation 
        benefits payable under this subchapter and under chapter 83 or 
        84 or any other retirement system for employees of the 
        Government, for the same period, shall elect which benefits the 
        individual will receive.
            ``(2) Election.--
                    ``(A) Deadline.--An individual shall make an 
                election under paragraph (1) in accordance with such 
                deadlines as the Secretary of Labor shall establish, 
                which shall be a reasonable period after the individual 
                has received notice of a final determination that the 
                individual is entitled to compensation benefits payable 
                under this subchapter.
                    ``(B) Revocability.--An election under paragraph 
                (1) shall be revocable, notwithstanding any other 
                provision of law, except for any period during which an 
                individual--
                            ``(i) was qualified for benefits payable 
                        under both this subchapter and under a 
                        retirement system described in paragraph (1); 
                        and
                            ``(ii) was paid benefits under the 
                        retirement system after having been notified of 
                        eligibility for benefits under this subchapter.
            ``(3) Informed choice.--The Secretary of Labor shall 
        provide information, and shall ensure that information is 
        provided, to an individual described in paragraph (1) about the 
        benefits available to the individual under this subchapter or 
        under chapter 83 or 84 or any other retirement system referred 
        to in paragraph (1) the individual may elect to receive.''.
    (b) Technical and Conforming Amendments.--Sections 8337(f)(3) and 
8464a(a)(3) are each amended by striking ``Paragraphs'' and inserting 
``Except as provided under chapter 81, paragraphs''.

SEC. 310. SANCTION FOR NONCOOPERATION WITH FIELD NURSES.

    Section 8123, as amended by section 307, is amended by adding at 
the end the following:
    ``(f) Field Nurses.--
            ``(1) Definition.--In this subsection, the term `field 
        nurse' means a registered nurse that assists the Secretary in 
        the medical management of disability claims under this 
        subchapter and provides claimants with assistance in 
        coordinating medical care.
            ``(2) Authorization.--The Secretary may use field nurses to 
        coordinate medical services and vocational rehabilitation 
        programs for injured employees under this subchapter. If an 
        employee refuses to cooperate with a field nurse or obstructs a 
        field nurse in the performance of duties under this subchapter, 
        the right to compensation under this subchapter shall be 
        suspended until the refusal or obstruction stops.''.

SEC. 311. SUBROGATION OF CONTINUATION OF PAY.

    (a) In General.--Section 8131 is amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1), by inserting ``continuation of pay or'' before 
        ``compensation'';
            (2) in subsection (b), by inserting ``continuation of pay 
        or'' before ``compensation''; and
            (3) in subsection (c)--
                    (A) by inserting ``continuation of pay or'' before 
                ``compensation already paid''; and
                    (B) by inserting ``continuation of pay or'' before 
                ``compensation payable''.
    (b) Adjustment After Recovery From a Third Person.--Section 8132 is 
amended--
            (1) in the first sentence--
                    (A) by inserting ``continuation of pay or'' before 
                ``compensation is payable'';
                    (B) by inserting ``continuation of pay or'' before 
                ``compensation from the United States'';
                    (C) by striking ``by him or in his behalf'' and 
                inserting ``by the beneficiary or on behalf of the 
                beneficiary'';
                    (D) by inserting ``continuation of pay and'' before 
                ``compensation paid by the United States''; and
                    (E) by striking ``compensation payable to him'' and 
                inserting ``continuation of pay or compensation payable 
                to the beneficiary'';
            (2) in the second sentence, by striking ``his designee'' 
        and inserting ``the designee of the beneficiary''; and
            (3) in the fourth sentence, by striking ``If compensation'' 
        and all that follows through ``payable to him by the United 
        States'' and inserting ``If continuation of pay or compensation 
        has not been paid to the beneficiary, the money or property 
        shall be credited against continuation of pay or compensation 
        payable to the beneficiary by the United States''.

SEC. 312. INTEGRITY AND COMPLIANCE.

    (a) In General.--Subchapter I of chapter 81 is amended by adding at 
the end the following:
``Sec. 8153. Integrity and Compliance Program
    ``(a) Definitions.--In this section--
            ``(1) the term `FECA program' means the Federal Employees 
        Compensation Program administered under this subchapter;
            ``(2) the term `Integrity and Compliance Program' means the 
        Integrity and Compliance Program established under subsection 
        (b);
            ``(3) the term `provider' means a provider of medical or 
        other services under the FECA program; and
            ``(4) the term `Secretary' means the Secretary of Labor.
    ``(b) Integrity and Compliance Program.--Not later than 270 days 
after the date of enactment of this section, the Secretary shall 
establish an Integrity and Compliance Program for the purpose of 
preventing, identifying, and recovering improper payments (including 
improper payments obtained by fraud) for the FECA program, which shall 
include--
            ``(1) procedures for identifying potentially improper 
        payments (including improper payments obtained by fraud) before 
        payment is made to claimants and providers, including, where 
        appropriate, predictive analytics;
            ``(2) reviews after payment is made to identify potentially 
        improper payments (including improper payments obtained by 
        fraud) to claimants and providers;
            ``(3) on-going screening and verification procedures to 
        ensure the continued eligibility of medical providers to 
        provide services under the FECA program, including licensure, 
        Federal disbarment, and the existence of relevant criminal 
        convictions;
            ``(4) provision of appropriate information, education, and 
        training to claimants and providers on requirements to ensure 
        the integrity of the FECA program, including payments under the 
        FECA program;
            ``(5) appropriate controls and audits to ensure that 
        providers adopt internal controls and procedures for compliance 
        with requirements under the FECA program;
            ``(6) procedures to ensure--
                    ``(A) initial and continuing eligibility of 
                claimants for compensation, benefits, or services under 
                the FECA program; and
                    ``(B) ongoing verification of databases of 
                information relating to claimants to ensure accuracy 
                and completeness; and
            ``(7) appropriately sharing and accessing data and 
        information with other agencies and instrumentalities of the 
        United States, including the United States Postal Service.
    ``(c) Interagency Cooperation on Anti-fraud Efforts.--
            ``(1) In general.--In administering the FECA program, 
        including the Integrity and Compliance Program, the Secretary 
        shall cooperate with other agencies and instrumentalities of 
        the United States (including the United States Postal Service) 
        and the Inspectors General of such agencies and 
        instrumentalities to prevent, identify, and recover improper 
        payments (including improper payments obtained by fraud) under 
        the FECA program.
            ``(2) Task force.--
                    ``(A) In general.--There is established a task 
                force, which shall be known as the FECA Integrity and 
                Compliance Task Force (in this paragraph referred to as 
                the `Task Force').
                    ``(B) Membership.--The members of the Task Force 
                shall be--
                            ``(i) the Secretary, who shall serve as the 
                        Chairperson of the Task Force;
                            ``(ii) the Postmaster General, who shall 
                        serve as the Vice Chairperson of the Task 
                        Force;
                            ``(iii) the Attorney General;
                            ``(iv) the Director of the Office of 
                        Management and Budget;
                            ``(v) the Inspector General of the 
                        Department of Labor;
                            ``(vi) the Inspector General of the United 
                        States Postal Service;
                            ``(vii) the Inspectors General of other 
                        appropriate agencies and instrumentalities of 
                        the United States that employ a significant 
                        number of individuals receiving compensation, 
                        benefits, or services under the FECA program, 
                        as determined by the Chairperson and Vice 
                        Chairperson of the Task Force; and
                            ``(viii) other appropriate Federal 
                        officials, as determined by the Chairperson and 
                        Vice Chairperson of the Task Force.
                    ``(C) Duties.--The Task Force shall--
                            ``(i) set forth, in writing, a description 
                        of the respective roles and responsibilities in 
                        preventing, identifying, recovering, and 
                        prosecuting fraud under, and otherwise ensuring 
                        integrity and compliance of, the FECA program 
                        of--
                                    ``(I) the Secretary (including 
                                subordinate officials such as the 
                                Director of the Office of Workers' 
                                Compensation Programs);
                                    ``(II) the Inspector General of the 
                                Department of Labor;
                                    ``(III) the Inspectors General of 
                                agencies and instrumentalities of the 
                                United States that employ claimants 
                                under the FECA program;
                                    ``(IV) the Attorney General; and
                                    ``(V) any other relevant officials;
                            ``(ii) develop procedures for sharing 
                        information of possible fraud under the FECA 
                        program or other intentional misstatements by 
                        claimants or providers under the FECA program, 
                        including procedures addressing--
                                    ``(I) notification of appropriate 
                                officials of the Department of Labor of 
                                potential fraud or intentional 
                                misstatements, including provision of 
                                supporting information;
                                    ``(II) timely and appropriate 
                                response by officials of the Department 
                                of Labor to notifications described in 
                                subclause (I);
                                    ``(III) the inclusion of 
                                information and evidence relating to 
                                fraud and other intentional 
                                misstatements in criminal, civil, and 
                                administrative proceedings relating to 
                                the provision of compensation, 
                                benefits, or medical services 
                                (including payments to providers) under 
                                the FECA program;
                                    ``(IV) the coordination of criminal 
                                investigations with the administration 
                                of the FECA program; and
                                    ``(V) the protection of information 
                                relating to an investigation of 
                                possible fraud under the FECA program 
                                from potential disclosure, including 
                                requirements that enable investigative 
                                files to be appropriately separated 
                                from case management files;
                            ``(iii) not later than 1 year after the 
                        date of enactment of this section, submit to 
                        the Committee on Homeland Security and 
                        Governmental Affairs of the Senate and the 
                        Committee on Oversight and Government Reform 
                        and the Committee on Education and the 
                        Workforce of the House of Representatives a 
                        report that includes the description and 
                        procedures required under clauses (i) and (ii).
    ``(d) Improvements to Access of Federal Databases.--
            ``(1) In general.--The Secretary, the Postmaster General, 
        the Inspector General of the United States Postal Service, and 
        the Inspector General of the Department of Labor shall have 
        access to and make use of the agency databases described in 
        this subsection in order to improve compliance with the 
        requirements under and the integrity of the FECA program.
            ``(2) Social security earnings information.--
                    ``(A) In general.--Notwithstanding section 552a or 
                any other provision of Federal or State law, upon 
                written request, the Commissioner of Social Security 
                shall make available to the Secretary, the Inspector 
                General of the Department of Labor, the Postmaster 
                General, and the Inspector General of the United States 
                Postal Service the Social Security earnings information 
                of a living or deceased employee required by the 
                Secretary to carry out this subchapter.
                    ``(B) Procedures.--The Secretary shall establish 
                procedures for correlating the identity and status of 
                recipients of compensation, benefits, or services under 
                this subchapter with Social Security earnings 
                information described in subparagraph (A).
            ``(3) Office of personnel management federal retiree 
        database.--Notwithstanding section 552a or any other provision 
        of Federal or State law, upon written request, the Director of 
        the Office of Personnel Management shall make available to the 
        Secretary, the Inspector General of the Department of Labor, 
        the Postmaster General, and the Inspector General of the United 
        States Postal Service the information in the databases of 
        Federal employees and retirees maintained by the Director.
            ``(4) Department of veterans affairs beneficiaries 
        database.--Notwithstanding section 552a or any other provision 
        of Federal or State law, upon written request, the Secretary of 
        Veterans Affairs shall make available to the Secretary, the 
        Inspector General of the Department of Labor, the Postmaster 
        General, and the Inspector General of the United States Postal 
        Service the information in the database of disabled individuals 
        maintained by the Secretary of Veterans Affairs.
            ``(5) National directory of new hires.--Notwithstanding 
        section 552a, section 453(j) of the Social Security Act (42 
        U.S.C. 653(j)), or any other provision of Federal or State law, 
        upon written request, the Secretary of Health and Human 
        Services shall make available to the Secretary, the Inspector 
        General of the Department of Labor, the Postmaster General, the 
        Inspector General of the United States Postal Service, and the 
        Comptroller General of the United States the information in the 
        National Directory of New Hires. The Comptroller General may 
        obtain information from the National Directory of New Hires 
        under this paragraph for any audit, evaluation, or 
        investigation, including any audit, evaluation, or 
        investigation relating to program integrity.
            ``(6) Provision.--Information requested under this 
        subsection shall be provided--
                    ``(A) in a timely manner;
                    ``(B) at a reasonable cost to the Secretary, the 
                Inspector General of the Department of Labor, the 
                Postmaster General, the Inspector General of the United 
                States Postal Service, or the Comptroller General of 
                the United States; and
                    ``(C) in the manner, frequency, and form reasonably 
                specified by the officer making the request, which, 
                upon request, shall include electronic form.
            ``(7) Assessment of data cost-effectiveness.--
                    ``(A) In general.--The Secretary shall consider and 
                assess procedures for correlating the identity and 
                status of recipients of compensation, benefits, or 
                services under this subchapter with information 
                relating to employees, retirees, and individuals 
                described in paragraphs (3), (4), and (5).
                    ``(B) Report.--Not later than 1 year after the date 
                of enactment of this section, the Secretary shall 
                submit to the Committee on Homeland Security and 
                Governmental Affairs of the Senate and the Committee on 
                Oversight and Government Reform and the Committee on 
                Education and the Workforce of the House of 
                Representatives a report on the cost-effectiveness of 
                the use of the databases described in paragraphs (3), 
                (4), and (5) for program compliance and integrity. The 
                report required under this subparagraph may be included 
                as part of the report required under subsection (f).
            ``(8) United states postal service feca enrollee 
        database.--Not later than 180 days after the date of enactment 
        of this section, in order to track, verify, and communicate 
        with the Secretary and other relevant entities, the Postmaster 
        General shall establish an electronic database of information 
        relating to employees of the United States Postal Service who 
        have applied for or are receiving compensation, benefits, or 
        services under this subchapter.
    ``(e) General Protocols and Security.--
            ``(1) Establishment.--
                    ``(A) In general.--In order to ensure strong 
                information security and privacy standards, the 
                Secretary, the Postmaster General, the Inspector 
                General of the Department of Labor, and the Inspector 
                General of the United States Postal Service shall 
                establish protocols for the secure transfer and storage 
                of any information provided to an individual or entity 
                under this section.
                    ``(B) Considerations.--In establishing protocols 
                under subparagraph (A), the Secretary, the Postmaster 
                General, the Inspector General of the Department of 
                Labor, and the Inspector General of the United States 
                Postal Service shall consider any recommendations 
                submitted to the Secretary by the Inspector General of 
                the Department of Health and Human Services with 
                respect to the secure transfer and storage of 
                information, and to comply with privacy laws and best 
                practices.
                    ``(C) Fraud case protection.--The Secretary, the 
                Postmaster General, the Inspector General of the 
                Department of Labor, and the Inspector General of the 
                United States Postal Service shall establish protocols 
                and procedures to enable information and materials 
                relating to an active investigation of possible fraud 
                relating to the FECA program to be appropriately kept 
                separate from the files for employees relating to the 
                provision of compensation, benefits, or services under 
                the FECA program.
            ``(2) Compliance.--The Secretary, the Postmaster General, 
        the Inspector General of the Department of Labor, and the 
        Inspector General of the United States Postal Service shall 
        ensure that any information provided to an individual or entity 
        under this section is provided in accordance with protocols 
        established under paragraph (1).
    ``(f) Report.--Not later than 1 year after the date of enactment of 
this section, and annually thereafter for 5 years, the Secretary shall 
submit a report on the activities of the Secretary under this section, 
including implementation of the Integrity and Compliance Program, to--
            ``(1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate; and
            ``(2) the Committee on Oversight and Government Reform and 
        the Committee on Education and the Workforce of the House of 
        Representatives.
    ``(g) GAO Review.--The Comptroller General of the United States 
shall--
            ``(1) conduct periodic reviews of the Integrity and 
        Compliance Program; and
            ``(2) submit reports on the results of the reviews under 
        paragraph (1) to the Committee on Homeland Security and 
        Governmental Affairs of the Senate and the Committee on 
        Oversight and Government Reform and the Committee on Education 
        and the Workforce of the House of Representatives not later 
        than--
                    ``(A) 2 years after the date of enactment of this 
                section; and
                    ``(B) 3 years after submission of the report under 
                subparagraph (A).''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 81 is amended by inserting after the item relating to section 
8152 the following:

``8153. Integrity and Compliance Program.''.

SEC. 313. AMOUNT OF COMPENSATION.

    (a) Injuries to Face, Head, and Neck.--Section 8107(c)(21) is 
amended--
            (1) by striking ``not to exceed $3,500'' and inserting ``in 
        proportion to the severity of the disfigurement, not to exceed 
        $50,000,''; and
            (2) by adding at the end the following: ``The maximum 
        amount of compensation under this paragraph shall be increased 
        on March 1 of each year by the amount determined by the 
        Secretary of Labor to represent the percent change in the price 
        index published for December of the preceding year over the 
        price index published for the December of the year prior to the 
        preceding year, adjusted to the nearest one-tenth of 1 
        percent.''.
    (b) Funeral Expenses.--Section 8134(a) is amended--
            (1) by striking ``$800'' and inserting ``$6,000''; and
            (2) by adding at the end the following: ``The maximum 
        amount of compensation under this subsection shall be increased 
        on March 1 of each year by the amount determined by the 
        Secretary of Labor to represent the percent change in the price 
        index published for December of the preceding year over the 
        price index published for the December of the year prior to the 
        preceding year, adjusted to the nearest one-tenth of 1 
        percent.''.
    (c) Application.--The amendments made by this section shall apply 
to injuries or deaths, respectively, occurring on or after the date of 
enactment of this Act.

SEC. 314. TECHNICAL AND CONFORMING AMENDMENTS.

    Chapter 81 is amended--
            (1) in section 8101(1)(D), by inserting ``for an injury 
        that occurred before the effective date of section 204(e) of 
        the District of Columbia Self-Government and Governmental 
        Reorganization Act (Public Law 93-198; 87 Stat. 783; 5 U.S.C. 
        8101 note)'' before the semicolon;
            (2) in section 8139, by inserting ``under this subchapter'' 
        after ``Compensation awarded'';
            (3) in section 8148(a), by striking ``section 8106'' and 
        inserting ``section 8106a'';

SEC. 315. REGULATIONS.

    (a) In General.--As soon as possible after the date of enactment of 
this Act, the Secretary of Labor shall promulgate regulations (which 
may include interim final regulations) to carry out this title.
    (b) Contents.--The regulations promulgated under subsection (a) 
shall include, for purposes of the amendments made by sections 302 and 
303, clarification of--
            (1) what is a claim; and
            (2) what is the date on which a period of disability, for 
        which a claim is made, commences.

                        TITLE IV--OTHER MATTERS

SEC. 401. PROFITABILITY PLAN.

    (a) Plan Required.--Not later than 90 days after the date of 
enactment of this Act, the Postal Service shall submit to the Committee 
on Homeland Security and Governmental Affairs of the Senate, the 
Committee on Oversight and Government Reform of the House of 
Representatives, the Comptroller General of the United States, and the 
Commission a plan describing, in detail, the actions the Postal Service 
will take to--
            (1) become profitable by fiscal year 2015; and
            (2) achieve long-term financial solvency.
    (b) Considerations.--The plan required under subsection (a) shall 
take into consideration--
            (1) the legal authority of the Postal Service;
            (2) the changes in the legal authority and responsibilities 
        of the Postal Service under this Act;
            (3) any cost savings that the Postal Service anticipates 
        will be achieved through negotiations with employees of the 
        Postal Service; and
            (4) projected changes in mail volume.
    (c) Updates.--The Postal Service shall update the plan required 
under subsection (a) not less frequently than quarterly, until the last 
quarter of fiscal year 2015.

SEC. 402. POSTAL RATES.

    (a) Commission Study.--
            (1) In general.--Not earlier than 2 years after the date of 
        enactment of this Act, the Commission shall commence a study to 
        determine--
                    (A) whether and to what extent any market-dominant 
                classes, products, or types of mail services do not 
                bear the direct and indirect costs attributable to 
                those classes, products, or types of mail service; and
                    (B) the impact of any excess mail processing, 
                transportation, or delivery capacity of the Postal 
                Service on the direct and indirect costs attributable 
                to any class, product, or type of mail service that 
                bears less than 100 percent of the costs attributable 
                to the class, product, or type of mail service, as 
                determined under subparagraph (A).
            (2) Requirements.--The Commission shall conduct the study 
        under paragraph (1) in a manner that protects confidential and 
        proprietary business information.
            (3) Hearing.--Before completing the study under paragraph 
        (1), the Commission shall hold a public hearing, on the record, 
        in order to better inform the conclusions of the study. The 
        Postal Service, postal customers, and other interested persons 
        may participate in the hearing under this paragraph.
            (4) Completion.--Not later than 6 months after the date on 
        which the Commission commences the study under subsection (a), 
        the Commission shall complete the study.
    (b) Annual Updates Required.--Not later than 1 year after the date 
of completion of the study under subsection (a), and annually 
thereafter, the Commission shall--
            (1) determine whether any class of mail bears less than 100 
        percent of the direct and indirect costs attributable to the 
        class, product, or type of mail service, in the same manner as 
        under subsection (a)(1)(A);
            (2) for any class of mail for which the Commission makes a 
        determination under paragraph (1), update the study under 
        subsection (a); and
            (3) include the study updated under paragraph (2) in the 
        annual written determination of the Commission under section 
        3653 of title 39, United States Code.
    (c) Postal Rates.--
            (1) Definition.--In this subsection, the term ``loss-
        making'', as used with respect to a class of mail, means a 
        class of mail that bears less than 100 percent of the costs 
        attributable to the class of mail, according to the most recent 
        annual determination of the Commission under subsection (a)(1) 
        or (b)(1), adjusted to account for the quantitative effect of 
        excess mail processing, transportation, or delivery capacity of 
        the Postal Service on the costs attributable to the class of 
        mail.
            (2) In general.--Not later than 1 year after the date on 
        which the study under subsection (a) is completed, and annually 
        thereafter, the Postal Service shall establish postal rates for 
        each loss-making class of mail.
            (3) Considerations.--The Postal Service may establish 
        postal rates under paragraph (2) in a manner that ensures, to 
        the extent practicable, that a class of mail described in 
        paragraph (2) is not loss-making by--
                    (A) using the authority to increase rates under 
                section 3622(d)(1)(A) of title 39, United States Code;
                    (B) exhausting any unused rate adjustment 
                authority, as defined in section 3622(d)(2)(C) of title 
                39, United States Code, subject to paragraph (4); and
                    (C) maximizing incentives to reduce costs and 
                increase efficiency with regard to the processing, 
                transportation, and delivery of such mail by the Postal 
                Service.
            (4) Unused rate adjustment authority.--Section 
        3622(d)(2)(C) of title 39, United States Code, shall be applied 
        by annually increasing by 2 percentage points any unused rate 
        adjustment authority for a class of mail that bears less than 
        90 percent of the costs attributable to the class of mail, 
        according to the most recent annual determination of the 
        Commission under subsection (a)(1) or (b)(1), adjusted to 
        account for the quantitative effect of excess mail processing, 
        transportation, or delivery capacity of the Postal Service on 
        the costs attributable to the class of mail.

SEC. 403. COOPERATION WITH STATE AND LOCAL GOVERNMENTS; INTRA-SERVICE 
              AGREEMENTS.

    (a) Cooperation With State and Local Governments.--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''.
    (b) Intra-Service Agreements.--Section 411 of title 39, United 
States Code, as amended by subsection (a), is amended--
            (1) in the section heading, by adding at the end the 
        following: ``and within the Postal Service'';
            (2) in the second sentence, by striking ``section'' and 
        inserting ``subsection'';
            (3) by striking ``Executive agencies'' and inserting the 
        following:
    ``(a) Cooperation With State and Local Governments.--Executive 
agencies''; and
            (4) by adding at the end the following:
    ``(b) Cooperation Within the Postal Service.--The Office of the 
Inspector General and other components of the Postal Service may enter 
into agreements to furnish to each other property, both real and 
personal, and personal and nonpersonal services. The furnishing of 
property and services under this subsection shall be under such terms 
and conditions, including reimbursability, as the Inspector General and 
the head of the component concerned shall deem appropriate.''.
    (c) Technical and Conforming Amendment.--The table of sections for 
chapter 4 of title 39, United States Code, is amended by striking the 
item relating to section 411 and inserting the following:

``411. Cooperation with other Government agencies and within the Postal 
                            Service.''.

SEC. 404. SHIPPING OF WINE AND BEER.

    (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) Application of laws.--Section 1161 of title 18, United 
        States Code, is amended, by inserting ``, and, with respect to 
        the mailing of wine or malt beverages (as those terms are 
        defined in section 117 of the Federal Alcohol Administration 
        Act (27 U.S.C. 211)), is in conformity with section 3001(p) of 
        title 39'' after ``Register''.
    (b) Regulations.--Section 3001 of title 39, United States Code, is 
amended by adding at the end the following:
    ``(p)(1) In this subsection, the terms `wine' and `malt beverage' 
have the same meanings as in section 117 of the Federal Alcohol 
Administration Act (27 U.S.C. 211).
    ``(2) Wine or malt beverages shall be considered mailable if 
mailed--
            ``(A) by a licensed winery or brewery, in accordance with 
        applicable regulations under paragraph (3); and
            ``(B) in accordance with the laws of--
                    ``(i) the State, territory, or district of the 
                United States where the sender or duly authorized agent 
                initiates the mailing; and
                    ``(ii) the State, territory, or district of the 
                United States where the addressee or duly authorized 
                agent takes delivery.
    ``(3) 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;
            ``(B) the addressee (and any duly authorized agent) shall 
        be an individual at least 21 years of age;
            ``(C) the individual who takes delivery, whether the 
        addressee or a duly authorized agent, shall present a valid, 
        government-issued photo identification at the time of delivery;
            ``(D) the wine or malt beverages may not be for resale or 
        other commercial purpose; and
            ``(E) 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.
    ``(4) 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 malt 
                beverages 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. 405. ANNUAL REPORT ON UNITED STATES MAILING INDUSTRY.

    (a) In General.--Chapter 24 of title 39, United States Code, is 
amended by adding at the end the following:
``Sec. 2403. Annual report on the fiscal stability of the United States 
              mailing industry
    ``(a) In General.--Not later than 1 year after the date of 
enactment of this section, and annually thereafter, the Postal 
Regulatory Commission shall submit a report on the fiscal stability of 
the United States mailing industry with respect to the preceding fiscal 
year to--
            ``(1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate; and
            ``(2) the Committee on Oversight and Government Reform of 
        the House of Representatives.
    ``(b) Assistance.--The United States Postal Service and any Federal 
agency involved in oversight or data collection regarding industry 
sectors relevant to the report under subsection (a) shall provide any 
assistance to the Postal Regulatory Commission that the Postal 
Regulatory Commission determines is necessary in the preparation of a 
report under subsection (a).''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 24 of title 39, United States Code, is amended by adding at the 
end the following:

``2403. Annual report on the fiscal stability of the United States 
                            mailing industry.''.

SEC. 406. USE OF NEGOTIATED SERVICE AGREEMENTS.

    Section 3622 of title 39, United States Code, is amended--
            (1) in subsection (c)(10)(A)--
                    (A) in the matter preceding clause (i), by striking 
                ``either'' and inserting ``will'';
                    (B) in clause (i), by striking ``or'' at the end;
                    (C) in clause (ii), by striking ``and'' at the end 
                and inserting ``or''; and
                    (D) by adding at the end the following:
                            ``(iii) preserve mail volume and revenue; 
                        and''; and
            (2) by adding at the end the following:
    ``(g) Coordination.--The Postal Service and the Postal Regulatory 
Commission shall coordinate actions to identify methods to increase the 
use of negotiated service agreements for market-dominant products by 
the Postal Service consistent with subsection (c)(10).''.

SEC. 407. 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.''.

SEC. 408. CONTRACTING PROVISIONS.

    (a) In General.--Part I of title 39, United States Code, is amended 
by adding at the end the following:

                  ``CHAPTER 7--CONTRACTING PROVISIONS

``Sec.
``701. Definitions.
``702. Advocate for competition.
``703. Delegation of contracting authority.
``704. Posting of noncompetitive purchase requests for noncompetitive 
                            contracts.
``705. Review of ethical issues.
``706. Ethical restrictions on participation in certain contracting 
                            activity.
``707. Congressional oversight authority.
``Sec. 701. Definitions
    ``In this chapter--
            ``(1) the term `contracting officer' means an employee of a 
        covered postal entity who has authority to enter into a postal 
        contract;
            ``(2) the term `covered postal entity' means--
                    ``(A) the Postal Service; or
                    ``(B) the Postal Regulatory Commission;
            ``(3) the term `head of a covered postal entity' means--
                    ``(A) in the case of the Postal Service, the 
                Postmaster General; or
                    ``(B) in the case of the Postal Regulatory 
                Commission, the Chairman of the Postal Regulatory 
                Commission;
            ``(4) the term `postal contract' means any contract 
        (including any agreement or memorandum of understanding) 
        entered into by a covered postal entity for the procurement of 
        goods or services; and
            ``(5) the term `senior procurement executive' means the 
        senior procurement executive of a covered postal entity.
``Sec. 702. Advocate for competition
    ``(a) Establishment and Designation.--
            ``(1) Establishment.--There is established in each covered 
        postal entity an advocate for competition.
            ``(2) Designation.--The head of each covered postal entity 
        shall designate for the covered postal entity 1 or more 
        officers or employees (other than the senior procurement 
        executive) to serve as the advocate for competition.
    ``(b) Responsibilities.--The advocate for competition of each 
covered postal entity shall--
            ``(1) be responsible for promoting competition to the 
        maximum extent practicable consistent with obtaining best value 
        by promoting the acquisition of commercial items and 
        challenging barriers to competition;
            ``(2) review the procurement activities of the covered 
        postal entity; and
            ``(3) prepare and transmit to the head of each covered 
        postal entity, the senior procurement executive of each covered 
        postal entity, the Board of Governors, and Congress, an annual 
        report describing--
                    ``(A) the activities of the advocate under this 
                section;
                    ``(B) initiatives required to promote competition;
                    ``(C) barriers to competition that remain; and
                    ``(D) the number of waivers made by each covered 
                postal entity under section 704(c).
``Sec. 703. Delegation of contracting authority
    ``(a) In General.--
            ``(1) Policy.--Not later than 60 days after the date of 
        enactment of the 21st Century Postal Service Act of 2012, the 
        head of each covered postal entity shall issue a policy on 
        contracting officer delegations of authority for the covered 
        postal entity.
            ``(2) Contents.--The policy issued under paragraph (1) 
        shall require that--
                    ``(A) notwithstanding any delegation of authority 
                with respect to postal contracts, the ultimate 
                responsibility and accountability for the award and 
                administration of postal contracts resides with the 
                senior procurement executive; and
                    ``(B) a contracting officer shall maintain an 
                awareness of and engagement in the activities being 
                performed on postal contracts of which that officer has 
                cognizance, notwithstanding any delegation of authority 
                that may have been executed.
    ``(b) Posting of Delegations.--
            ``(1) In general.--The head of each covered postal entity 
        shall make any delegation of authority for postal contracts 
        outside the functional contracting unit readily available and 
        accessible on the website of the covered postal entity.
            ``(2) Effective date.--This paragraph shall apply to any 
        delegation of authority made on or after 30 days after the date 
        of enactment of the 21st Century Postal Service Act of 2012.
``Sec. 704. Posting of noncompetitive purchase requests for 
              noncompetitive contracts
    ``(a) Posting Required.--
            ``(1) Postal regulatory commission.--The Postal Regulatory 
        Commission shall make the noncompetitive purchase request for 
        any noncompetitive award, including the rationale supporting 
        the noncompetitive award, publicly available on the website of 
        the Postal Regulatory Commission--
                    ``(A) not later than 14 days after the date of the 
                award of the noncompetitive contract; or
                    ``(B) not later than 30 days after the date of the 
                award of the noncompetitive contract, if the basis for 
                the award was a compelling business interest.
            ``(2) Postal service.--The Postal Service shall make the 
        noncompetitive purchase request for any noncompetitive award of 
        a postal contract valued at $250,000 or more, including the 
        rationale supporting the noncompetitive award, publicly 
        available on the website of the Postal Service--
                    ``(A) not later than 14 days after the date of the 
                award; or
                    ``(B) not later than 30 days after the date of the 
                award, if the basis for the award was a compelling 
                business interest.
            ``(3) Adjustments to the posting threshold for the postal 
        service.--
                    ``(A) Review and determination.--Not later than 
                January 31 of each year, the Postal Service shall--
                            ``(i) review the $250,000 threshold 
                        established under paragraph (2); and
                            ``(ii) based on any change in the Consumer 
                        Price Index for all-urban consumers of the 
                        Department of Labor, determine whether an 
                        adjustment to the threshold shall be made.
                    ``(B) Amount of adjustments.--An adjustment under 
                subparagraph (A) shall be made in increments of $5,000. 
                If the Postal Service determines that a change in the 
                Consumer Price Index for a year would require an 
                adjustment in an amount that is less than $5,000, the 
                Postal Service may not make an adjustment to the 
                threshold for the year.
            ``(4) Effective date.--This subsection shall apply to any 
        noncompetitive contract awarded on or after the date that is 90 
        days after the date of enactment of the 21st Century Postal 
        Service Act of 2012.
    ``(b) Public Availability.--
            ``(1) In general.--Subject to paragraph (2), the 
        information required to be made publicly available by a covered 
        postal entity under subsection (a) shall be readily accessible 
        on the website of the covered postal entity.
            ``(2) Protection of proprietary information.--A covered 
        postal entity shall--
                    ``(A) carefully screen any description of the 
                rationale supporting a noncompetitive award required to 
                be made publicly available under subsection (a) to 
                determine whether the description includes proprietary 
                data (including any reference or citation to the 
                proprietary data) or security-related information; and
                    ``(B) remove any proprietary data or security-
                related information before making publicly available a 
                description of the rational supporting a noncompetitive 
                award.
    ``(c) Waivers.--
            ``(1) Waiver permitted.--If a covered postal entity 
        determines that making a noncompetitive purchase request 
        publicly available would risk placing the Postal Service at a 
        competitive disadvantage relative to a private sector 
        competitor, the senior procurement executive, in consultation 
        with the advocate for competition of the covered postal entity, 
        may waive the requirements under subsection (a).
            ``(2) Form and content of waiver.--
                    ``(A) Form.--A waiver under paragraph (1) shall be 
                in the form of a written determination placed in the 
                file of the contract to which the noncompetitive 
                purchase agreement relates.
                    ``(B) Content.--A waiver under paragraph (1) shall 
                include--
                            ``(i) a description of the risk associated 
                        with making the noncompetitive purchase request 
                        publicly available; and
                            ``(ii) a statement that redaction of 
                        sensitive information in the noncompetitive 
                        purchase request would not be sufficient to 
                        protect the Postal Service from being placed at 
                        a competitive disadvantage relative to a 
                        private sector competitor.
            ``(3) Delegation of waiver authority.--A covered postal 
        entity may not delegate the authority to approve a waiver under 
        paragraph (1) to any employee having less authority than the 
        senior procurement executive.
``Sec. 705. Review of ethical issues
    ``If a contracting officer identifies any ethical issues relating 
to a proposed contract and submits those issues and that proposed 
contract to the designated ethics official for the covered postal 
entity before the awarding of that contract, that ethics official 
shall--
            ``(1) review the proposed contract; and
            ``(2) advise the contracting officer on the appropriate 
        resolution of ethical issues.
``Sec. 706. Ethical restrictions on participation in certain 
              contracting activity
    ``(a) Definitions.--In this section--
            ``(1) the term `covered employee' means--
                    ``(A) a contracting officer; or
                    ``(B) any employee of a covered postal entity whose 
                decisionmaking affects a postal contract as determined 
                by regulations prescribed by the head of a covered 
                postal entity;
            ``(2) the term `covered relationship' means a covered 
        relationship described in section 2635.502(b)(1) of title 5, 
        Code of Federal Regulations, or any successor thereto; and
            ``(3) the term `final conviction' means a conviction, 
        whether entered on a verdict or plea, including a plea of nolo 
        contendere, for which a sentence has been imposed.
    ``(b) In General.--
            ``(1) Regulations.--The head of each covered postal entity 
        shall prescribe regulations that--
                    ``(A) require a covered employee to include in the 
                file of any noncompetitive purchase request for a 
                noncompetitive postal contract a written certification 
                that--
                            ``(i) discloses any covered relationship of 
                        the covered employee; and
                            ``(ii) the covered employee will not take 
                        any action with respect to the noncompetitive 
                        purchase request that affects the financial 
                        interests of a friend, relative, or person with 
                        whom the covered employee is affiliated in a 
                        nongovernmental capacity, or otherwise gives 
                        rise to an appearance of the use of public 
                        office for private gain, as described in 
                        section 2635.702 of title 5, Code of Federal 
                        Regulations, or any successor thereto;
                    ``(B) require a contracting officer to consult with 
                the ethics counsel for the covered postal entity 
                regarding any disclosure made by a covered employee 
                under subparagraph (A)(i), to determine whether 
                participation by the covered employee in the 
                noncompetitive purchase request would give rise to a 
                violation of part 2635 of title 5, Code of Federal 
                Regulations (commonly referred to as the `Standards of 
                Ethical Conduct for Employees of the Executive 
                Branch');
                    ``(C) require the ethics counsel for a covered 
                postal entity to review any disclosure made by a 
                contracting officer under subparagraph (A)(i) to 
                determine whether participation by the contracting 
                officer in the noncompetitive purchase request would 
                give rise to a violation of part 2635 of title 5, Code 
                of Federal Regulations (commonly referred to as the 
                `Standards of Ethical Conduct for Employees of the 
                Executive Branch'), or any successor thereto;
                    ``(D) under subsections (d) and (e) of section 
                2635.50 of title 5, Code of Federal Regulations, or any 
                successor thereto, require the ethics counsel for a 
                covered postal entity to--
                            ``(i) authorize a covered employee that 
                        makes a disclosure under subparagraph (A)(i) to 
                        participate in the noncompetitive postal 
                        contract; or
                            ``(ii) disqualify a covered employee that 
                        makes a disclosure under subparagraph (A)(i) 
                        from participating in the noncompetitive postal 
                        contract;
                    ``(E) require a contractor to timely disclose to 
                the contracting officer in a bid, solicitation, award, 
                or performance of a postal contract any conflict of 
                interest with a covered employee; and
                    ``(F) include authority for the head of the covered 
                postal entity to a grant a waiver or otherwise mitigate 
                any organizational or personal conflict of interest, if 
                the head of the covered postal entity determines that 
                the waiver or mitigation is in the best interests of 
                the Postal Service.
            ``(2) Posting of waivers.--Not later than 30 days after the 
        head of a covered postal entity grants a waiver described in 
        paragraph (1)(F), the head of the covered postal entity shall 
        make the waiver publicly available on the website of the 
        covered postal entity.
    ``(c) Contract Voidance and Recovery.--
            ``(1) Unlawful conduct.--In any case in which there is a 
        final conviction for a violation of any provision of chapter 11 
        of title 18 relating to a postal contract, the head of a 
        covered postal entity may--
                    ``(A) void that contract; and
                    ``(B) recover the amounts expended and property 
                transferred by the covered postal entity under that 
                contract.
            ``(2) Obtaining or disclosing procurement information.--
                    ``(A) In general.--In any case where a contractor 
                under a postal contract fails to timely disclose a 
                conflict of interest to the appropriate contracting 
                officer as required under the regulations promulgated 
                under subsection (b)(1)(D), the head of a covered 
                postal entity may--
                            ``(i) void that contract; and
                            ``(ii) recover the amounts expended and 
                        property transferred by the covered postal 
                        entity under that contract.
                    ``(B) Conviction or administrative determination.--
                A case described under subparagraph (A) is any case in 
                which--
                            ``(i) there is a final conviction for an 
                        offense punishable under section 27(e) of the 
                        Office of Federal Procurement Policy Act (41 
                        U.S.C. 423(e)); or
                            ``(ii) the head of a covered postal entity 
                        determines, based upon a preponderance of the 
                        evidence, that the contractor or someone acting 
                        for the contractor has engaged in conduct 
                        constituting an offense punishable under 
                        section 27(e) of that Act.
``Sec. 707. Congressional oversight authority
    ``The Postal Service may not enter into any contract that restricts 
the ability of Congress to exercise oversight authority.''.
    (b) Technical and Conforming Amendment.--The table of chapters for 
part I of title 39, United States Code, is amended by adding at the end 
the following:

``7. Contracting Provisions.................................     701''.
                                                       Calendar No. 296

112th CONGRESS

  2d Session

                                S. 1789

_______________________________________________________________________

                                 A BILL

  To improve, sustain, and transform the United States Postal Service.

_______________________________________________________________________

                            January 26, 2012

                       Reported with an amendment