[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1486 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1486

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 1, 2013

Mr. Carper (for himself and Mr. Coburn) introduced the following bill; 
which was read twice and referred to the Committee on Homeland Security 
                        and Governmental Affairs

_______________________________________________________________________

                                 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,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Postal Reform Act of 2013''.

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 SERVICE WORKFORCE

Sec. 101. Annual Federal Employee Retirement System and Civil Service 
                            Retirement System Assessments.
Sec. 102. Postal service authority to negotiate retirement benefit 
                            terms for new employees.
Sec. 103. Restructuring of payments for retiree health benefits.
Sec. 104. Postal service health benefits plan.
Sec. 105. Medicare coordination efforts for postal service employees 
                            and retirees.
Sec. 106. Labor disputes.
                  TITLE II--POSTAL SERVICE OPERATIONS

Sec. 201. Maintenance of delivery service standards.
Sec. 202. Preserving mail processing capacity.
Sec. 203. Preserving community post offices.
Sec. 204. Changes to mail delivery schedule.
Sec. 205. Delivery point modernization.
Sec. 206. Postal services for market-dominant products.
                   TITLE III--POSTAL SERVICE REVENUE

Sec. 301. Postal rates.
Sec. 302. Nonpostal services.
Sec. 303. Shipping of wine, beer, and distilled spirits.
                  TITLE IV--POSTAL SERVICE GOVERNANCE

Sec. 401. Board of Governors of the Postal Service.
Sec. 402. Strategic Advisory Commission on Postal Service Solvency and 
                            Innovation.
Sec. 403. Long-term solvency plan; annual financial plan and budget.
Sec. 404. Chief Innovation Officer; innovation strategy.
Sec. 405. Area and district office structure.
Sec. 406. Inspector General of the Postal Service.
              TITLE V--FEDERAL EMPLOYEES' COMPENSATION ACT

Sec. 501. Short title; references.
Sec. 502. Federal workers compensation reforms for retirement-age 
                            employees.
Sec. 503. Augmented compensation for dependents.
Sec. 504. Schedule compensation payments.
Sec. 505. Vocational rehabilitation.
Sec. 506. Reporting requirements.
Sec. 507. Disability management review; independent medical 
                            examinations.
Sec. 508. Waiting period.
Sec. 509. Election of benefits.
Sec. 510. Sanction for noncooperation with field nurses.
Sec. 511. Subrogation of continuation of pay.
Sec. 512. Integrity and compliance.
Sec. 513. Amount of compensation.
Sec. 514. Terrorism injuries; zones of armed conflict.
Sec. 515. Technical and conforming amendments.
Sec. 516. Regulations.
Sec. 517. Effective date.
 TITLE VI--PROPERTY MANAGEMENT AND EXPEDITED DISPOSAL OF REAL PROPERTY

Sec. 601. Short title.
Sec. 602. Purpose.
Sec. 603. Property management and expedited disposal of real property.
Sec. 604. Report of the Comptroller General.
Sec. 605. Technical and conforming amendment.

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 SERVICE WORKFORCE

SEC. 101. ANNUAL FEDERAL EMPLOYEE RETIREMENT SYSTEM AND CIVIL SERVICE 
              RETIREMENT SYSTEM ASSESSMENTS.

    (a) Use of Postal-Specific Assumptions in Normal Cost 
Calculation.--
            (1) In general.--Section 8423(a) of title 5, United States 
        Code, is amended--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A)--
                                    (I) in clause (i), by inserting 
                                ``or (C)'' after ``subparagraph (B)''; 
                                and
                                    (II) in clause (ii), by striking 
                                ``and'';
                            (ii) in subparagraph (B)(ii), by striking 
                        the period at the end and inserting ``; and''; 
                        and
                            (iii) by adding at the end the following:
                    ``(C) the product of--
                            ``(i) the normal-cost percentage, as 
                        determined for employees of the United States 
                        Postal Service under paragraph (5), multiplied 
                        by
                            ``(ii) the aggregate amount of basic pay 
                        payable by the United States Postal Service, 
                        for the period involved, to employees of the 
                        United States Postal Service.''; and
                    (B) by adding at the end the following:
            ``(5)(A) In determining the normal-cost percentage for 
        employees of the United States Postal Service, the Office shall 
        use--
                    ``(i) demographic factors specific to the 
                employees; and
                    ``(ii) economic assumptions regarding wage and 
                salary growth that reflect the specific past, and 
                likely future, pay for the employees.
            ``(B) The United States Postal Service shall provide any 
        data or projections the Office requires in order to determine 
        the normal-cost percentage for employees of the United States 
        Postal Service consistent with subparagraph (A).
            ``(C) The Office shall review the determination of the 
        normal-cost percentage for employees of the United States 
        Postal Service and make such adjustments as are necessary--
                    ``(i) upon request of the United States Postal 
                Service, but no more frequently than once each fiscal 
                year; and
                    ``(ii) at any additional times, as the Office 
                considers appropriate.''.
            (2) Initial determination.--Not later than 90 days after 
        the date of enactment of this Act, the Office shall determine 
        the normal-cost percentage for employees of the United States 
        Postal Service in accordance with the requirements under 
        section 8423(a)(5) of title 5, United States Code, as added by 
        paragraph (1).
    (b) Postal Funding Surplus or Liability.--
            (1) Treatment of postal funding surplus.--Section 8423(b) 
        of title 5, United States Code, is amended--
                    (A) by redesignating paragraph (5) as paragraph 
                (6); and
                    (B) by inserting after paragraph (4) the following:
            ``(5)(A) In this paragraph, the term `postal funding 
        surplus' means the amount by which the amount of supplemental 
        liability computed under paragraph (1)(B) is less than zero.
            ``(B)(i) After the date on which the Office determines or 
        redetermines under paragraph (7)(C) the amount of supplemental 
        liability computed under paragraph (1)(B) as of the close of 
        the fiscal year ending on September 30, 2013, and if such 
        amount is less than zero, the Postmaster General may request 
        that some or all of the amount of the postal funding surplus be 
        returned to the Postal Service, and not later than 10 days 
        after the request, the Director shall transfer to the United 
        States Postal Service from the Fund an amount equal to the 
        portion of the postal funding surplus requested for use in 
        accordance with this subparagraph.
            ``(ii) Of the amount transferred under clause (i), not more 
        than $6,000,000,000 may be used by the United States Postal 
        Service for the purposes of repaying any obligation issued 
        under section 2005(a) of title 39.
            ``(C) If the amount of supplemental liability computed 
        under paragraph (1)(B) as of the close of any fiscal year 
        commencing after September 30, 2013, is less than zero, the 
        Office shall establish an amortization schedule, including a 
        series of annual installments, to be transferred to the United 
        States Postal Service from the Fund, commencing on September 30 
        of the subsequent fiscal year, which provides for the 
        liquidation of the postal funding surplus by September 30, 
        2054.''.
            (2) Supplemental liability calculation.--
                    (A) FERS.--Section 8423(b) of title 5, United 
                States Code, as amended by paragraph (1) of this 
                subsection, is amended--
                            (i) in paragraph (6), as so redesignated, 
                        in the matter preceding subparagraph (A), by 
                        striking ``For the purpose'' and inserting 
                        ``Subject to paragraph (7), for the purpose''; 
                        and
                            (ii) by adding at the end the following:
            ``(7)(A) For the purpose of carrying out paragraph (1)(B) 
        with respect to the fiscal year ending September 30, 2013, and 
        each fiscal year thereafter, the Office shall, consistent with 
        subsection (a)(5), use--
                    ``(i) demographic factors specific to current and 
                former employees of the United States Postal Service; 
                and
                    ``(ii) economic assumptions regarding wage and 
                salary growth that reflect the specific past and likely 
                future pay for current employees of the United States 
                Postal Service.
            ``(B) The United States Postal Service shall provide any 
        data or projections the Office requires in order to carry out 
        paragraph (1)(B) consistent with subparagraph (A) of this 
        paragraph.
            ``(C) Not later than June 14, 2014, the Office shall 
        determine or redetermine whether there is a postal funding 
        surplus (as defined in paragraph (5)) or a supplemental 
        liability described in paragraph (1)(B) (and the amount 
        thereof) as of the close of the fiscal year ending on September 
        30, 2013, in accordance with the requirements under 
        subparagraph (A) of this paragraph.''.
                    (B) CSRS.--Section 8348(h) of title 5, United 
                States Code, is amended--
                            (i) in paragraph (2), by striking 
                        subparagraph (B) and inserting the following:
    ``(B)(i)(I) Not later than June 14, 2014, the Office shall 
redetermine the Postal surplus or supplemental liability as of the 
close of the fiscal year ending on September 30, 2013, in accordance 
with the requirements under paragraph (4).
    ``(II) If the result of the redetermination under subclause (I) is 
a surplus, that amount shall remain in the Fund until distribution is 
authorized under subparagraph (C).
    ``(III) If the result of the redetermination under subclause (I) is 
a supplemental liability, the Office shall establish an amortization 
schedule, including a series of annual installments commencing on 
September 30, 2015, which provides for the liquidation of such 
liability by September 30, 2054.
    ``(ii)(I) The Office shall redetermine the Postal surplus or 
supplemental liability as of the close of each fiscal year beginning 
after September 30, 2013, in accordance with the requirements under 
paragraph (4).
    ``(II) If the result of the redetermination under subclause (I) is 
a surplus, that amount shall remain in the Fund until distribution is 
authorized under subparagraph (C).
    ``(III) On and after June 15, 2015, if the result of the 
redetermination under subclause (I) is a supplemental liability, the 
Office shall establish an amortization schedule, including a series of 
annual installments commencing on September 30 of the subsequent fiscal 
year, which provides for the liquidation of such liability by September 
30, 2054.''; and
                            (ii) by adding at the end the following:
            ``(4)(A) For the purpose of carrying out paragraphs (1) and 
        (2), the Office shall, consistent with section 8423(a)(5), 
        use--
                    ``(i) demographic factors specific to current and 
                former employees of the United States Postal Service; 
                and
                    ``(ii) economic assumptions regarding wage and 
                salary growth that reflect the specific past and likely 
                future pay for current employees of the United States 
                Postal Service.
            ``(B) The United States Postal Service shall provide any 
        data or projections the Office requires in order to carry out 
        paragraphs (1) and (2) consistent with subparagraph (A) of this 
        paragraph.''.

SEC. 102. POSTAL SERVICE AUTHORITY TO NEGOTIATE RETIREMENT BENEFIT 
              TERMS FOR NEW EMPLOYEES.

    (a) Authority To Negotiate Retirement Benefit Terms.--
            (1) Collective bargaining over certain retirement 
        benefits.--Section 1005 of title 39, United States Code, is 
        amended by adding at the end the following:
    ``(g)(1) In this subsection--
            ``(A) the term `collective bargaining agreement' means a 
        collective bargaining agreement between the Postal Service and 
        a bargaining representative recognized under section 1203 
        entered into after the date of enactment of the Postal Reform 
        Act of 2013;
            ``(B) the term `new employee' means an individual who 
        becomes an officer or employee of the Postal Service after the 
        date of enactment of the Postal Reform Act of 2013;
            ``(C) the term `not covered under the FERS defined benefit 
        plan', with respect to an officer or employee of the Postal 
        Service, means that service by the officer or employee of the 
        Postal Service as an officer or employee of the Postal Service 
        shall not be creditable service for purposes of chapter 84 of 
        title 5.
    ``(2)(A) A collective bargaining agreement may provide, 
notwithstanding chapter 84 of title 5, that some or all new employees 
covered under the collective bargaining agreement shall be not covered 
under the FERS defined benefit plan.
    ``(B) If a new employee is not covered under the FERS defined 
benefit plan pursuant to a collective bargaining agreement, any 
subsequent service by the new employee as an officer or employee of the 
Postal Service shall be not covered under the FERS defined benefit 
plan.
    ``(C) Subject to the requirements under this subsection, a 
collective bargaining agreement may include one or more additional 
retirement benefit plans for the benefit of some or all new employees 
covered under the collective bargaining agreement.
    ``(3)(A) A collective bargaining agreement may establish, with 
respect to some or all new employees covered under the collective 
bargaining agreement--
            ``(i) without regard to section 8422 of title 5, and 
        subject to subparagraph (C) of this paragraph and paragraph 
        (2)(B), the amounts to be deducted and withheld from the pay of 
        the new employees for deposit in the Treasury of the United 
        States to the credit of the Civil Service Retirement and 
        Disability Fund;
            ``(ii) without regard to section 8432 of title 5, whether 
        the Postal Service shall make contributions to the Thrift 
        Savings Fund for the benefit of the new employees, and, if the 
        Postal Service shall make such contributions, the amounts that 
        the Postal Service shall contribute; and
            ``(iii) for any retirement benefit plan established under 
        the bargaining agreement, the amounts to be deducted and 
        withheld from the pay of the new employees under the retirement 
        benefit plan for the benefit of the new employees.
    ``(B) Except as provided in paragraph (2)(B), a collective 
bargaining agreement may establish the amounts described in 
subparagraph (A)(i) with respect to some or all new employees who were 
covered under a previous collective bargaining agreement.
    ``(C) The Postal Service shall, under section 8422(c) of title 5, 
deposit in the Treasury to the credit of the Civil Service Retirement 
and Disability Fund the amount that the Postal Service would have 
deducted and withheld from the basic pay of each officer and employee 
of the Postal Service, except an officer or employee who is not covered 
under the FERS defined benefit plan, without regard to subparagraph 
(A)(i) or any agreement regarding amounts to be deducted and withheld 
under subparagraph (A)(i).
    ``(4) If any new employee is not covered under the FERS defined 
benefit plan pursuant to a collective bargaining agreement, any member 
of the Postal Career Executive Service shall be not covered under the 
FERS defined benefit plan on and after the effective date of the 
collective bargaining agreement.
    ``(5) Except as provided in paragraph (3)(A), nothing in this 
subsection or in a provision of a collective bargaining agreement 
entered under this subsection shall affect the coverage of an officer 
or employee of the Postal Service under subchapter III of chapter 84 of 
the United States Code (relating to the Thrift Savings Plan).''.
            (2) Applicability of laws relating to federal employees.--
        Section 1005 of title 39, United States Code, is amended--
                    (A) in subsection (d)(1), by striking ``Officers'' 
                and inserting ``Except as provided in subsection (g), 
                officers''; and
                    (B) in subsection (f), in the second sentence--
                            (i) by inserting ``84,'' before ``87,''; 
                        and
                            (ii) by striking ``this subsection.'' and 
                        inserting ``this subsection or subsection 
                        (g).''.
    (b) Special Rules Relating to FERS Coverage for Covered Postal 
Employees.--
            (1) In general.--Subchapter II of chapter 84 of title 5, 
        United States Code, is amended by adding at the end the 
        following:
``Sec. 8426. Postal Service retirement
    ``The application of sections 8422 and 8423 of this title and 
subchapters III and VII of this chapter with respect to an officer or 
employee of the Postal Service may be modified as provided under 
section 1005(g) of title 39.''.
            (2) Technical and conforming amendments.--The table of 
        sections for chapter 84 of title 5, United States Code, is 
        amended by adding at the end the following:

``8426. Postal Service retirement.''.

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 Postal Reform Act of 2013''.
    (b) Postal Service Retiree Health Benefits Fund.--Section 8909a of 
title 5, United States Code, is amended--
            (1) in subsection (d)--
                    (A) by striking paragraph (2) and inserting the 
                following:
    ``(2)(A) Not later than June 30, 2016, the Office shall compute, 
and by June 30 of each succeeding year, the Office shall recompute, a 
schedule including a series of annual installments which provide for 
the liquidation of the amount described under subparagraph (B) 
(regardless of whether the amount is a liability or surplus) by 
September 30, 2052, or within 15 years, whichever is later, including 
interest at the rate used in the computations under this subsection.
    ``(B) The amount described in this subparagraph is the amount, as 
of the date on which the applicable computation or recomputation under 
subparagraph (A) is made, that is equal to the difference between--
            ``(i) 80 percent of the Postal Service actuarial liability 
        as of September 30 of the most recently ended fiscal year; and
            ``(ii) the value of the assets of the Postal Retiree Health 
        Benefits Fund as of September 30 of the most recently ended 
        fiscal year.'';
                    (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 ``2016'';
                    (C) by amending paragraph (4) to read as follows:
            ``(4) Computations under this subsection shall be based 
        on--
                    ``(A) economic and actuarial methods and 
                assumptions consistent with the methods and assumptions 
                used in determining the Postal surplus or supplemental 
                liability under section 8348(h); and
                    ``(B) any other methods and assumptions, including 
                a health care cost trend rate, that the Director of the 
                Office determines to be appropriate.''; and
                    (D) by adding at the end the following:
            ``(7) In this subsection, the term `Postal Service 
        actuarial liability' means the difference between--
                    ``(A) the net present value of future payments 
                required under section 8906(g)(2)(A) for current and 
                future United States Postal Service annuitants; and
                    ``(B) the net present value as computed under 
                paragraph (1) attributable to the future service of 
                United States Postal Service employees.''; and
            (2) by adding at the end the following:
    ``(e) Subsections (a) through (d) of this section shall be subject 
to section 104 of the Postal Reform Act of 2013.''.
    (c) Cancellation of Certain Unpaid Obligations of the Postal 
Service.--Any obligation of the Postal Service under section 
8909a(d)(3)(A) of title 5, United States Code, as in effect on the day 
before the date of enactment of this Act, that remains unpaid as of 
such date of enactment is cancelled.
    (d) Technical and Conforming Amendment.--The heading of section 
8909a of title 5, United States Code, is amended by striking 
``Benefit'' and inserting ``Benefits''.

SEC. 104. POSTAL SERVICE HEALTH BENEFITS PLAN.

    (a) Definitions.--In this section--
            (1) the term ``bargaining representative'' means a 
        bargaining representative recognized under section 1203 of 
        title 39, United States Code;
            (2) the term ``covered employee'' means an officer or 
        employee of the Postal Service who is--
                    (A) represented by a bargaining representative; or
                    (B) a member of the Postal Career Executive 
                Service;
            (3) the term ``Federal Employee Health Benefits Program'' 
        means the health benefits program under chapter 89 of title 5, 
        United States Code;
            (4) the term ``participant'' means--
                    (A) a covered employee who is--
                            (i) represented by a bargaining 
                        representative that enters into an agreement to 
                        establish a Postal Service Health Benefits 
                        Plan; or
                            (ii) if any bargaining representative 
                        enters into an agreement to establish a Postal 
                        Service Health Benefits Plan, a member of the 
                        Postal Career Executive Service; and
                    (B) an officer or employee of the Postal Service 
                who--
                            (i) is not a covered employee; and
                            (ii) elects to participate in the Postal 
                        Service Health Benefits Plan; and
            (5) the term ``Postal Service Health Benefits Plan'' means 
        the health benefits plan 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 
        individually or jointly with bargaining representatives and 
        enter into a collective bargaining agreement or agreements with 
        1 or more of those bargaining representatives to establish a 
        single Postal Service Health Benefits Plan that--
                    (A) satisfies the conditions under subsection (c); 
                and
                    (B) may be a health benefits plan offered under 
                chapter 89 of title 5, United States Code.
            (2) Consultation with opm.--The Postal Service and 
        bargaining representatives shall conduct negotiations under 
        paragraph (1) in consultation with the Director of the Office 
        of Personnel Management.
            (3) 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.
            (4) Disputes.--If the Postal Service or a bargaining 
        representative offers a proposed agreement for negotiation 
        under paragraph (1) and the parties do not reach agreement 
        within 180 days after the commencement of collective bargaining 
        on the proposal, the procedures under section 1207(d) of title 
        39, United States Code, shall apply upon the election of any 
        party to the negotiations.
            (5) Time limitation.--The authority under this subsection 
        shall extend until the date that is 2 years after the date of 
        enactment of this Act.
    (c) Postal Service Health Benefits Plan.--The Postal Service Health 
Benefits Plan--
            (1) shall--
                    (A) be available for participation by--
                            (i) all covered employees represented by a 
                        bargaining representative entering an agreement 
                        described in subsection (b)(1); and
                            (ii) all covered employees who are members 
                        of the Postal Career Executive Service;
                    (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 coverage that is actuarially equivalent 
                to the coverage offered under the types of plans 
                available under the Federal Employee Health Benefits 
                Program, as determined by the Director of the Office of 
                Personnel Management;
                    (D) be administered in a manner determined in an 
                agreement or agreements reached under subsection (b);
                    (E) unless the Postal Service Health Benefits Plan 
                is a health benefits plan offered under chapter 89 of 
                title 5, United States Code, provide for transition of 
                coverage under the Federal Employee Health Benefits 
                Program of all participants in the Postal Service 
                Health Benefits Plan to coverage under the Postal 
                Service Health Benefits Plan; and
                    (F) if the Postal Service Health Benefits Plan is a 
                health benefits plan offered under chapter 89 of title 
                5, United States Code, and except as provided in 
                section 8903c of title 5, United States Code, as added 
                by section 105 of this Act, provide that the Postal 
                Service Health Benefits Plan is the only health 
                benefits plan under the Federal Employee Health 
                Benefits Program in which a participant in the Postal 
                Service Health Benefits Plan may participate as an 
                employee;
            (2) may provide dental benefits; and
            (3) may provide vision benefits.
    (d) Agreement and Implementation.--If an agreement or agreements 
are reached under subsection (b) to provide a Postal Service Health 
Benefits Plan--
            (1) the Postal Service shall implement the Postal Service 
        Health Benefits Plan;
            (2) the Postal Service Health Benefits Plan 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) unless the Postal Service Health Benefits Plan is a 
        health benefits plan offered under chapter 89 of title 5, 
        United States Code, participants in the Postal Service Health 
        Benefits Plan may not participate as employees in the Federal 
        Employees Health Benefits Program.
    (e) Governmental Plan.--The Postal Service Health Benefits Plan 
shall be a governmental 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 6 months after the earlier of the date 
on which any agreement is reached under subsection (b) and June 30, 
2016, 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. MEDICARE COORDINATION EFFORTS FOR POSTAL SERVICE EMPLOYEES 
              AND RETIREES.

    (a) Additional Enrollment Options Under Federal Employees Health 
Benefits Plans.--Chapter 89 of title 5, United States Code, is amended 
by inserting after section 8903b the following:
``Sec. 8903c. Coordination with Medicare for Postal Service employees 
              and annuitants
    ``(a) Definitions.--In this section--
            ``(1) the term `contract year' means a calendar year in 
        which health benefits plans are administered under this 
        chapter;
            ``(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.);
            ``(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
            ``(4) the term `Postal Service employee or annuitant' means 
        an individual who is--
                    ``(A) an employee of the Postal Service covered 
                under this chapter; or
                    ``(B) an annuitant covered under this chapter whose 
                Government contribution is paid by the Postal Service 
                or the Postal Service Retiree Health Benefits Fund 
                under section 8906(g)(2).
    ``(b) Enrollment Options.--
            ``(1) Establishment.--
                    ``(A) In general.--For contract years beginning on 
                or after January 1, 2015, the Office shall establish 
                enrollment options for health benefits plans that are 
                open only to Postal Service employees and annuitants, 
                and family members of a Postal Service employee or 
                annuitant, who are enrolled in Medicare part A and 
                Medicare part B.
                    ``(B) Additional plans.--The enrollment options 
                established under this subsection shall be in addition 
                to any other health benefit plan or enrollment option 
                otherwise available to Postal Service employees or 
                annuitants under this chapter and shall not affect the 
                eligibility of a Postal Service employee or annuitant 
                for any another health benefit plan or enrollment 
                option under this chapter.
            ``(2) Enrollment eligibility.--
                    ``(A) In general.--Any Postal Service employee or 
                annuitant, or family member of a Postal Service 
                employee or annuitant, who is enrolled in Medicare part 
                A and Medicare part B may enroll in 1 of the enrollment 
                options established under paragraph (1).
                    ``(B) Determination of eligibility.--Eligibility to 
                enroll in an enrollment option established under 
                paragraph (1) shall be determined without regard to the 
                requirements under section 8905(b).
            ``(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 for each plan 
        available under section 8905, in combination with the value of 
        coverage under Medicare part A and Medicare part B.
            ``(4) Enrollment options.--
                    ``(A) In general.--The enrollment options 
                established under paragraph (1) shall include--
                            ``(i) an individual option, for Postal 
                        Service employees or annuitants enrolled in 
                        Medicare part A and Medicare part B;
                            ``(ii) a self and family option, for Postal 
                        Service employees or annuitants and family 
                        members who are each enrolled in Medicare part 
                        A and Medicare part B; and
                            ``(iii) a self and family option, for 
                        Postal Service employees or annuitants--
                                    ``(I) who are enrolled in Medicare 
                                part A and Medicare part B; and
                                    ``(II) the family members of whom 
                                are not enrolled in Medicare part A or 
                                Medicare part B.
                    ``(B) Specific sub-options.--The Office may 
                establish more specific enrollment options within the 
                types of options described under subparagraph (A).
            ``(5) Reduced premiums to account for medicare 
        coordination.--In determining the premiums for the enrollment 
        options under paragraph (4), the Office shall--
                    ``(A) establish a separate risk pool for 
                individuals eligible for coverage under any of those 
                options; and
                    ``(B) ensure that--
                            ``(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 
                        employees or annuitants, or family members of 
                        Postal Service employees or annuitants, who are 
                        enrolled in Medicare part A and Medicare part 
                        B; and
                            ``(ii) the cost savings described under 
                        clause (i) result solely in the reduction of--
                                    ``(I) the premiums paid by the 
                                Postal Service employee or annuitant; 
                                and
                                    ``(II) the Government contributions 
                                paid by the Postal Service or other 
                                employer.
    ``(c) Postal Service Consultation.--The Office shall establish the 
enrollment options and premiums under this section in consultation with 
the Postal Service.''.
    (b) 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:

``8903c. Coordination with Medicare for Postal Service employees and 
                            annuitants.''.
    (c) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to contract years beginning on or after January 1, 
2015.
    (d) Special Enrollment Period for Postal Service Employees and 
Annuitants.--
            (1) Special enrollment period.--Section 1837 of the Social 
        Security Act (42 U.S.C. 1395p) is amended by adding at the end 
        the following new subsection:
    ``(m)(1) In the case of any individual who, as of the date of 
enactment of the Postal Reform Act of 2013, is a Postal Service 
employee or 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 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).
    ``(2) The special enrollment period described in this paragraph, 
with respect to an individual, is the 1-year period beginning on July 
1, 2014.
    ``(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.''.
            (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)''.

SEC. 106. LABOR DISPUTES.

    Section 1207(c) of title 39, United States Code, is amended--
            (1) in paragraph (2)--
                    (A) by inserting ``(A)'' after ``(2)'';
                    (B) 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
                    (C) by adding at the end the following:
                    ``(B) In rendering a decision under this paragraph, 
                the arbitration board shall consider such relevant 
                factors as the financial condition of the Postal 
                Service.''; and
            (2) by adding at the end the following:
            ``(4) Nothing in this section may be construed to limit the 
        relevant factors that the arbitration board may take into 
        consideration in rendering a decision under paragraph (2).''.

                  TITLE II--POSTAL SERVICE OPERATIONS

SEC. 201. MAINTENANCE OF DELIVERY SERVICE STANDARDS.

    During the 2-year period beginning on the date of enactment of this 
Act, the Postal Service shall maintain the service standards for first-
class mail and periodicals under part 121 of title 39, Code of Federal 
Regulations, as in effect on the date of enactment of this Act.

SEC. 202. PRESERVING MAIL PROCESSING CAPACITY.

    (a) Definition of Postal Facility.--In this section, the term 
``postal facility'' means a processing and distribution center, 
processing and distribution facility, network distribution center, or 
other facility that is operated by the Postal Service, the primary 
function of which is to sort and process mail.
    (b) Moratorium on Closures of Postal Facilities.--During the 2-year 
period beginning on the date of enactment of this Act, the Postal 
Service may not close or consolidate any postal facility that is open 
as of the date of enactment of this Act.

SEC. 203. PRESERVING COMMUNITY POST OFFICES.

    Section 404(d) of title 39, United States Code, is amended--
            (1) by redesignating paragraphs (5) and (6) as paragraphs 
        (6) and (7), respectively;
            (2) by striking paragraphs (1) through (4) and inserting 
        the following:
    ``(d)(1) In this subsection, the term `post office' means a post 
office, post office branch, post office classified station, or other 
facility that is operated by the Postal Service, the primary function 
of which is to provide retail postal services.
    ``(2) The Postal Service, prior to making a determination under 
subsection (a)(3) of this section as to the necessity for the 
discontinuance of any post office, shall, to the extent practicable and 
appropriate--
            ``(A) consider whether--
                    ``(i) to discontinue the post office and another 
                post office located within a reasonable distance;
                    ``(ii) instead of discontinuing 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--
                            ``(I) through a letter carrier; or
                            ``(II) by co-locating postal services at a 
                        commercial or government entity;
            ``(B) provide postal customers served by the post office an 
        opportunity to present their views, which may be by nonbinding 
        survey conducted by mail; and
            ``(C) if the Postal Service determines to discontinue the 
        post office, provide adequate public notice of its intention to 
        discontinue such post office at least 60 days prior to the 
        proposed date of such discontinuance to persons served by such 
        post office.
    ``(3) The Postal Service, in making a determination whether or not 
to discontinue a post office--
            ``(A) shall consider, to the extent practicable and 
        appropriate--
                    ``(i) the effect of the discontinuance on the 
                community served by such post office;
                    ``(ii) the effect of the discontinuance on 
                businesses, including small businesses, in the area;
                    ``(iii) the effect of such discontinuance on 
                employees of the Postal Service employed at such 
                office;
                    ``(iv) whether such discontinuance is consistent 
                with the policy of the Government, as stated in section 
                101(b) of this title, that the Postal Service shall 
                provide a maximum degree of effective and regular 
                postal services to rural areas, communities, and small 
                towns where post offices are not self-sustaining;
                    ``(v) the extent to which the community served by 
                the post office lacks access to Internet phone service;
                    ``(vi) the extent to which postal customers served 
                by the post office would continue after the 
                discontinuance to receive substantially similar access 
                to essential items and time-sensitive communications;
                    ``(vii) the proximity and accessibility of other 
                post offices;
                    ``(viii) whether substantial economic savings to 
                the Postal Service would result from such 
                discontinuance; and
                    ``(ix) such other factors as the Postal Service 
                determines are necessary; and
            ``(B) may not consider compliance with any provision of the 
        Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et 
        seq.).
    ``(4) Any determination of the Postal Service to discontinue a post 
office shall be in writing and shall include the findings of the Postal 
Service, to the extent practicable and appropriate, with respect to the 
considerations required to be made under paragraph (3) of this 
subsection. Such determination and findings shall be made available to 
persons served by such post office by public notice.
    ``(5)(A) The Postal Service shall take no action to discontinue a 
post office until 60 days after its written determination is made 
available to persons served by such post office.
    ``(B) The Postal Service shall take no action to discontinue a post 
office until 60 days after the Postal Service provides written notice 
of the determination under paragraph (4) to the State board of 
elections for the State in which the post office is located.'';
            (3) in paragraph (6), as redesignated by this section--
                    (A) by striking ``close or consolidate'' and 
                inserting ``discontinue''; and
                    (B) by striking ``paragraph (3)'' and inserting 
                ``paragraph (4)''; and
            (4) in paragraph (7), as redesignated by this section, by 
        striking ``paragraph (5)'' and inserting ``paragraph (6)''.

SEC. 204. CHANGES TO MAIL DELIVERY SCHEDULE.

    (a) Limitation on Change in Schedule.--The Postal Service may 
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, if--
            (1) the Postal Service determines that such a delivery 
        schedule would contribute to the achievement of long-term 
        solvency; and
            (2) not less than 1 year has elapsed since the date of 
        enactment of this Act.
    (b) Implementation.--
            (1) In general.--If the Postal Service intends to establish 
        a change in delivery schedule under subsection (a), the Postal 
        Service, to the extent practicable and appropriate, shall--
                    (A) identify customers and communities for which 
                the change may have a disproportionate, negative 
                impact, including small business customers and the 
                customers identified as ``particularly affected'' in 
                the Advisory Opinion on Elimination of Saturday 
                Delivery issued by the Commission on March 24, 2011;
                    (B) develop measures to ameliorate any 
                disproportionately negative impact the change would 
                have on customers and communities identified under 
                paragraph (1); and
                    (C) not later than 3 months before the effective 
                date for any proposed change, submit a report that 
                includes the determination required under subsection 
                (a)(1) and details any measures developed pursuant to 
                subparagraph (B) of this paragraph to--
                            (i) the Committee on Homeland Security and 
                        Governmental Affairs of the Senate;
                            (ii) the Committee on Oversight and 
                        Government Reform of the House of 
                        Representatives; and
                            (iii) the Commission.
            (2) Rule of construction.--Nothing in this subsection shall 
        be construed to affect the authority of the Postal Service to 
        establish a nationwide delivery schedule of 5 or fewer days per 
        week if the conditions in subsection (a) are satisfied.
    (c) GAO Report.--Not later than 270 days after the date of 
enactment of this Act, the Comptroller General of the United States 
shall submit 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 evaluating the extent 
to which a change in delivery schedule would improve the financial 
condition of the Postal Service and assist in the efforts of the Postal 
Service to achieve long-term solvency, taking into consideration other 
ongoing and planned efforts to increase revenue and reduce costs, 
consistent with the requirements of this Act.
    (d) Rules of Construction.--Nothing in this section shall be 
construed to--
            (1) require the decrease or increase in delivery frequency 
        for any route for which the Postal Service provided delivery on 
        fewer than 6 days per week as of the date of enactment of this 
        Act;
            (2) authorize any change in--
                    (A) the days and times that postal retail service 
                or any mail acceptance is available at postal retail 
                facilities or processing facilities; or
                    (B) the locations at which postal retail service or 
                mail acceptance occurs at postal retail facilities or 
                processing facilities;
            (3) require any change in the frequency of delivery to a 
        post office box;
            (4) 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
            (5) prohibit the Postal Service from exercising its 
        authority to make changes to processing or retail networks.
    (e) Packages.--Notwithstanding any other provision of this section, 
for a period of not less than 2 years, beginning on the date of 
enactment of this Act, the Postal Service shall provide package 
service--
            (1) 6 days per week to each street address that was 
        eligible to receive package service 6 days per week as of 
        January 1, 2013; and
            (2) 7 days per week to each street address for which the 
        Postal Service determines that such service provides an 
        economic benefit to the Postal Service.
    (f) Mailbox Access.--If the Postal Service establishes a general, 
nationwide delivery schedule of 5 or fewer days per week consistent 
with the provisions of this section, the Postal Service shall amend the 
Mailing Standards of the United States, Domestic Mail Manual to ensure 
that the provisions of section 508.3.2.10 of such manual, as in effect 
on January 1, 2013, shall apply on any day on which the Postal Service 
does not deliver the mail under the established delivery schedule.

SEC. 205. DELIVERY POINT MODERNIZATION.

    (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. Delivery point modernization
    ``(a) Definitions.--In this section, the following definitions 
shall apply:
            ``(1) Centralized delivery.--The term `centralized 
        delivery' means a primary mode of mail delivery whereby mail is 
        delivered to a group or cluster of mail receptacles at a single 
        location.
            ``(2) Curbside delivery.--The term `curbside delivery' 
        means a primary mode of mail delivery whereby mail is delivered 
        to a mail receptacle that is situated at the edge of a public 
        sidewalk abutting a road or curb, at a road, or at a curb.
            ``(3) Delivery point.--The term `delivery point' means a 
        mailbox or other receptacle to which mail is delivered.
            ``(4) District office.--The term `district office' means 
        the central office of an administrative field unit with 
        responsibility for postal operations in a designated geographic 
        area (as defined under regulations, directives, or other 
        guidance of the Postal Service).
            ``(5) Door delivery.--The term `door delivery'--
                    ``(A) means a primary mode of mail delivery whereby 
                mail is--
                            ``(i) delivered to a mail receptacle at or 
                        near a postal customer's door; or
                            ``(ii) hand-delivered to a postal customer; 
                        and
                    ``(B) does not include curbside or centralized 
                delivery.
            ``(6) Primary mode of mail delivery.--The term `primary 
        mode of mail delivery' means the typical method by which the 
        Postal Service delivers mail to the delivery point of a postal 
        customer.
    ``(b) Policy.--Except as otherwise provided in this section, 
including paragraphs (4) and (5) of subsection (c), it shall be the 
policy of the Postal Service to use the primary mode of mail delivery 
that is most cost-effective and is in the best long-term interest of 
the Postal Service.
    ``(c) Conversion to Other Delivery Modes.--
            ``(1) New addresses.--Except as provided in paragraphs (4) 
        and (5), the Postal Service shall provide centralized delivery 
        to new addresses established after the date of enactment of the 
        Postal Reform Act of 2013, or if centralized delivery is not 
        practicable shall provide curbside delivery.
            ``(2) Business address conversion.--The Postal Service 
        shall carry out a program to convert business addresses with 
        door delivery on the date of enactment of the Postal Reform Act 
        of 2013 to centralized delivery or to curbside delivery.
            ``(3) Residential address conversion.--
                    ``(A) Identification.--Not later than 9 months 
                after the date of enactment of the Postal Reform Act of 
                2013, the head of each district office of the Postal 
                Service shall identify residential addresses within the 
                district office's service area that are appropriate 
                candidates for conversion from door delivery to another 
                primary mode of delivery, in accordance with standards 
                established by the Postal Service.
                    ``(B) Voluntary conversion.--Not later than 1 year 
                after the date of enactment of the Postal Reform Act of 
                2013, and consistent with subsection (b) and paragraph 
                (4), the Postal Service shall begin implementation of a 
                program to convert, on a voluntary basis, the addresses 
                identified under subparagraph (A) from door delivery to 
                a more cost-effective primary mode of delivery.
                    ``(C) Procedures.--In pursuing conversion under 
                subparagraph (B), the Postal Service shall establish 
                procedures to--
                            ``(i) solicit and consider input from 
                        postal customers, State and local governments, 
                        local associations, and property owners; and
                            ``(ii) place centralized delivery points in 
                        locations that maximize delivery efficiency, 
                        ease of use for postal customers, and respect 
                        for private property rights.
            ``(4) Exceptions.--In establishing a primary mode of mail 
        delivery for new addresses under paragraph (1) or converting 
        the primary mode of mail delivery for an address under 
        paragraph (2) or (3), the Postal Service may provide door 
        delivery if--
                    ``(A) a physical barrier precludes the efficient 
                provision of centralized delivery or curbside delivery;
                    ``(B) the address is located in a registered 
                historic district, as that term is defined in section 
                47(c)(3)(B) of the Internal Revenue Code of 1986; or
                    ``(C) the Postal Service determines that the 
                provision of centralized delivery or curbside delivery 
                would be impractical, would not be cost-effective, or 
                would not be in the best long-term interest of the 
                Postal Service.
            ``(5) Waiver for physical hardship.--The Postal Service 
        shall establish and maintain a waiver program under which, upon 
        the application of a postal customer, door delivery may be 
        continued or provided to a delivery point if--
                    ``(A) centralized delivery or curbside delivery 
                would, but for this paragraph, be the primary mode of 
                mail delivery for the delivery point; and
                    ``(B) a physical hardship prevents the postal 
                customer from receiving his or her mail through any 
                other form of mail delivery.''.
    (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. Delivery point modernization.''.

SEC. 206. POSTAL SERVICES FOR MARKET-DOMINANT PRODUCTS.

    (a) In General.--Strike section 3661 of title 39, United States 
Code, and insert the following:
``Sec. 3661. Postal services for market-dominant products
    ``(a) General Obligation.--The Postal Service shall develop and 
promote adequate and efficient postal services with respect to its 
market-dominant products.
    ``(b) Change in Service.--The Board of Governors of the Postal 
Service is authorized to determine whether there should be a change in 
the nature of postal service provided for market-dominant products that 
will generally affect such service on a nationwide or substantially 
nationwide basis. The authority under this subsection may not be 
delegated to the Postmaster General or to any other individual or 
entity.
    ``(c) Notice, Comment, and Review.--
            ``(1) Notice.--
                    ``(A) In general.--Not later than 60 days before 
                the date on which any change in service under 
                subsection (b) is implemented, the Board of Governors 
                shall provide public notice of the proposed change in 
                service implementation of the proposed change, 
                including any adjustment in classes or rates proposed 
                to be made under this section.
                    ``(B) Publication.--The notice required by 
                subparagraph (A) shall be--
                            ``(i) published in the Federal Register and 
                        on the website of the Postal Service; and
                            ``(ii) provided to the Postal Regulatory 
                        Commission.
                    ``(C) Contents.--The notice required by 
                subparagraph (A) shall describe the proposed change in 
                service, and address the consistency of the change with 
                the policies of this title, including its effect on the 
                provision of universal postal service.
            ``(2) Public comment.--The Board of Governors shall solicit 
        and receive public comments on any proposed change in service 
        under subsection (b). The Board shall give interested persons 
        an opportunity to comment on the proposed change in service 
        through the submission of written data, views, or arguments, 
        with or without opportunity for oral presentation, and shall 
        take any relevant matter presented into consideration in making 
        its final determination regarding the proposed change in 
        service.
            ``(3) Final decision.--Not later than 30 days before the 
        date on which a change in service under subsection (b) takes 
        effect, the Board of Governors shall issue a final decision on 
        the change in service which shall--
                    ``(A) be published in the Federal Register and on 
                the website of the Postal Service; and
                    ``(B) include an explanation responding to all 
                relevant comments received.
            ``(4) Commission review.--Any change in service made by the 
        Board of Governors under this section shall be subject to 
        review by the Commission under section 3662.
    ``(d) Limitation.--Nothing in this section shall be construed as 
authorizing the making of changes under this section to the nature of 
service provided for competitive products. For a change that affects 
the nature of service provided for both market-dominant products and 
competitive products, only the effect on market-dominant products shall 
be subject to this section.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 36 of title 39, United States Code, is amended by striking the 
item relating to section 3661 and inserting the following:

``3661. Postal services for market-dominant products.''.

                   TITLE III--POSTAL SERVICE REVENUE

SEC. 301. POSTAL RATES.

    (a) Modern Rate System.--
            (1) In general.--Chapter 36 of title 39, United States 
        Code, is amended by striking section 3622 and inserting the 
        following:
``Sec. 3622. Modern rate system
    ``(a) Authority Generally.--The Board of Governors of the Postal 
Service shall establish, and may from time to time thereafter revise, a 
system of classes and rates for market-dominant products, consistent 
with the requirements of this section. The authority under this section 
may not be delegated to the Postmaster General or to any other 
individual or body.
    ``(b) Objectives.--Such system shall be designed to achieve the 
following objectives, each of which shall be applied in conjunction 
with the others:
            ``(1) To maximize incentives for the Postal Service to 
        reduce costs and increase efficiency.
            ``(2) To create predictability and stability in rates 
        through the establishment of a schedule whereby rates change at 
        regular intervals by predictable amounts.
            ``(3) To maintain high quality service standards 
        established under section 3691.
            ``(4) To assure adequate revenues, including retained 
        earnings, to maintain financial stability.
            ``(5) To establish and maintain a just and reasonable 
        schedule for rates and classifications, however the objective 
        under this paragraph shall not be construed to prohibit the 
        Board of Governors from making changes of unequal magnitude 
        within, between, or among classes of mail.
            ``(6) To enhance mail security and deter terrorism.
            ``(7) To allocate the total institutional costs of the 
        Postal Service appropriately between market-dominant and 
        competitive products, in accordance with regulations 
        established by the Postal Regulatory Commission under section 
        3633.
    ``(c) Factors.--In establishing or revising such system, the Board 
of Governors shall take into account--
            ``(1) the value of the mail service actually provided each 
        class or type of mail service to both the sender and the 
        recipient, including but not limited to the collection, mode of 
        transportation, and priority of delivery;
            ``(2) the direct and indirect postal costs attributable to 
        each class or type of mail service through reliably identified 
        causal relationships and that portion of all other costs of the 
        Postal Service reasonably assignable to such class or type;
            ``(3) the effect of rate increases upon the general public, 
        business mail users, and enterprises in the private sector of 
        the economy engaged in the delivery of mail matter other than 
        letters;
            ``(4) the available alternative means of sending and 
        receiving letters and other mail matter at reasonable costs;
            ``(5) the simplicity of structure for the entire schedule 
        and simple, identifiable relationships between the rates or 
        fees charged the various classes of mail for postal services;
            ``(6) the relative value to the people of the kinds of mail 
        matter entered into the postal system and the desirability and 
        justification for special classifications and services of mail;
            ``(7) the importance of providing classifications with 
        extremely high degrees of reliability and speed of delivery and 
        of providing those that do not require high degrees of 
        reliability and speed of delivery;
            ``(8) the desirability of special classifications for both 
        postal users and the Postal Service in accordance with the 
        policies of this title;
            ``(9) the educational, cultural, scientific, and 
        informational value to the recipient of mail matter;
            ``(10) the need for the Postal Service to increase its 
        efficiency and reduce its costs, including infrastructure 
        costs, to help maintain high quality, affordable postal 
        services;
            ``(11) the value to the Postal Service and postal users of 
        promoting intelligent mail and of secure, sender-identified 
        mail; and
            ``(12) the policies of this title as well as such other 
        factors as the Board of Governors determines appropriate.
    ``(d) Notice, Comment, and Review.--
            ``(1) Notice.--The Board of Governors shall provide notice 
        of any adjustment in classes or rates proposed to be made under 
        this section--
                    ``(A) not less than--
                            ``(i) 90 days before implementation of any 
                        class or rate adjustment that affects all or 
                        substantially all market-dominant products; and
                            ``(ii) 45 days before implementation of any 
                        other class or rate adjustment; and
                    ``(B) to--
                            ``(i) the public, including by--
                                    ``(I) publication in the Federal 
                                Register; and
                                    ``(II) posting on Postal Service's 
                                website; and
                            ``(ii) the Postal Regulatory Commission.
            ``(2) Public comment.--The Board of Governors shall solicit 
        and receive public comments on any proposed rate or class 
        adjustment, and shall take such comments into account in making 
        its final determination as to a rate or class adjustment.
            ``(3) Final decision.--Not later than 10 days before a rate 
        or class adjustment takes effect, the Board of Governors shall 
        issue a final decision on the adjustment which shall--
                    ``(A) be published in the Federal Register and on 
                the Postal Service's website; and
                    ``(B) include an explanation responding to all 
                relevant comments received.
            ``(4) Commission review.--Any adjustment made by the Board 
        of Governors under this section shall be subject to review by 
        the Commission under section 3662.
    ``(e) Limitations on Rate Adjustments.--
            ``(1) Annual limitation.--The Board of Governors may not 
        increase rates under this section for market-dominant products 
        as a whole by an annual percentage that exceeds the percentage 
        change in the Consumer Price Index for All Urban Consumers 
        unadjusted for seasonal variation over the most recent 
        available 12-month period preceding the date the Board of 
        Governors provides notice of its intention to increase rates.
            ``(2) Conditions.--
                    ``(A) Rounding of rates and fees.--Nothing in this 
                subsection shall preclude the Board of Governors from 
                rounding rates and fees to the nearest whole integer, 
                if the effect of such rounding does not cause the 
                overall rate increase for any class to exceed the 
                Consumer Price Index for All Urban Consumers.
                    ``(B) Use of unused rate authority.--
                            ``(i) Definition.--In this subparagraph, 
                        the term `unused rate adjustment authority' 
                        means the difference between--
                                    ``(I) the maximum amount of a rate 
                                adjustment that the Board of Governors 
                                is authorized to make in any year 
                                subject to the annual limitation under 
                                paragraph (1); and
                                    ``(II) the amount of the rate 
                                adjustment the Board of Governors 
                                actually makes in that year.
                            ``(ii) Authority.--Subject to clause (iii), 
                        the Postal Service may use any unused rate 
                        adjustment authority for any of the 5 years 
                        following the year such authority occurred.
                            ``(iii) Limitations.--In exercising the 
                        authority under clause (ii) in any year, the 
                        Postal Service--
                                    ``(I) may use unused rate 
                                adjustment authority from more than 1 
                                year;
                                    ``(II) may use any part of the 
                                unused rate adjustment authority from 
                                any year;
                                    ``(III) shall use the unused rate 
                                adjustment authority from the earliest 
                                year such authority first occurred and 
                                then each following year; and
                                    ``(IV) may not exceed the annual 
                                limitation under paragraph (1) by more 
                                than 2 percentage points.
            ``(3) Exigent circumstances.--Notwithstanding any 
        limitation under subsection (d)(1) and paragraph (1) of this 
        subsection, and provided there is not sufficient unused rate 
        authority under paragraph (2)(B), the Board of Governors may 
        adjust rates on an expedited basis due to either extraordinary 
        or exceptional circumstances, provided that the Board of 
        Governors unanimously determines, after notice and opportunity 
        for public comment, that such adjustment is reasonable and 
        equitable and necessary to enable the Postal Service, under 
        best practices of honest, efficient, and economical management, 
        to maintain and continue the development of postal services of 
        the kind and quality adapted to the needs of the United States.
            ``(4) Expiration of rate cap.--Any system of rates and 
        classes established or revised by the Board of Governors under 
        subsection (a) after December 20, 2016, shall not be subject to 
        the limitation in paragraph (1) of this subsection.
    ``(f) Workshare Discounts.--
            ``(1) Definition.--In this subsection, the term `workshare 
        discount' refers to rate discounts provided to mailers for the 
        presorting, prebarcoding, handling, or transportation of mail, 
        as further defined by the Board of Governors under subsection 
        (a).
            ``(2) Scope.--The Board of Governors shall ensure that such 
        discounts do not exceed the cost that the Postal Service avoids 
        as a result of workshare activity, unless--
                    ``(A) the discount is--
                            ``(i) associated with a new postal service, 
                        a change to an existing postal service, or with 
                        a new work share initiative related to an 
                        existing postal service; and
                            ``(ii) necessary to induce mailer behavior 
                        that furthers the economically efficient 
                        operation of the Postal Service and the portion 
                        of the discount in excess of the cost that the 
                        Postal Service avoids as a result of the 
                        workshare activity will be phased out over a 
                        limited period of time;
                    ``(B) the amount of the discount above costs 
                avoided--
                            ``(i) is necessary to mitigate rate shock; 
                        and
                            ``(ii) will be phased out over time;
                    ``(C) the discount is provided in connection with a 
                category of mail consisting exclusively of mail matter 
                of educational, cultural, scientific, or informational 
                value; or
                    ``(D) reduction or elimination of the discount 
                would--
                            ``(i) impede the efficient operation of the 
                        Postal Service;
                            ``(ii) lead to a loss of volume in the 
                        affected category of mail and reduce the 
                        aggregate contribution to the institutional 
                        costs of the Postal Service from the category 
                        subject to the discount below what it otherwise 
                        would have been if the discount had not been 
                        reduced or eliminated; or
                            ``(iii) result in a further increase in the 
                        rates paid by mailers not able to take 
                        advantage of the discount.
            ``(3) Notice.--Whenever a workshare discount is 
        established, the Board of Governors shall ensure that the 
        notice provided under subsection (d)(1) includes--
                    ``(A) the reasons for establishing the discount;
                    ``(B) the data, economic analyses, and other 
                information relied on by the Board of Governors to 
                justify the rate; and
                    ``(C) a certification that the discount will not 
                adversely affect rates or services provided to users of 
                postal services who do not take advantage of the 
                discount rate.
    ``(g) Negotiated Service Agreements.--The Board of Governors shall 
ensure that any agreement between the Postal Service and a mailer that 
adjusts rates or classes in a manner that is specific to the mailer--
            ``(1) is available on public and reasonable terms to 
        similarly situated mailers;
            ``(2) either--
                    ``(A) improves the net financial position of the 
                Postal Service through reducing Postal Service costs or 
                increasing the overall contribution to the 
                institutional costs of the Postal Service; or
                    ``(B) enhances the performance of mail preparation, 
                processing, transportation, or other functions; and
            ``(3) does not cause unreasonable harm to the marketplace.
    ``(h) Consideration of Prior Commission Decisions.--In making any 
determination under this section, including the construction and 
interpretation of the terms used in this section, the Board of 
Governors shall give consideration to decisions of the Commission made 
prior to the date of enactment of the Postal Reform Act of 2013, and 
shall include an explanation of any deviation from such decisions in 
the notice required under subsection (d)(1).''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 36 of title 39, United States Code, is 
        amended by striking the item relating to section 3622 and 
        inserting the following:

``3622. Postal services for market-dominant products.''.
    (b) Repeal of Rate Preferences for Qualified Political 
Committees.--
            (1) In general.--Section 3626 of title 39, United States 
        Code, is amended--
                    (A) by striking subsection (e);
                    (B) by redesignating subsections (f), (g), and (h) 
                as subsections (e), (f), and (g), respectively;
                    (C) by redesignating subsections (j) through (n) as 
                subsections (h) through (l), respectively; and
                    (D) in subsection (h), as redesignated by paragraph 
                (3)--
                            (i) in paragraph (1)(D), by striking 
                        ``subsection (m)(2)'' and inserting 
                        ``subsection (k)(2)''; and
                            (ii) in paragraph (3)(B), by striking 
                        ``subsection (m)'' and inserting ``subsection 
                        (k)''.
            (2) Technical and conforming amendment.--Section 3629 of 
        title 39, United States Code, is amended--
                    (A) by striking ``is available'' and inserting 
                ``was available''; and
                    (B) by striking ``section 3626'' and inserting 
                ``section 3626, as in effect on the day before the date 
                of enactment of the Postal Reform Act of 2013,''.

SEC. 302. NONPOSTAL SERVICES.

    (a) Authorization of New Nonpostal Services.--
            (1) In general.--Section 404 of title 39, United States 
        Code, is amended--
                    (A) in subsection (a)--
                            (i) by redesignating paragraphs (6) through 
                        (8) as paragraphs (7) through (9), 
                        respectively; and
                            (ii) by inserting after paragraph (5) the 
                        following:
            ``(6) on and after the date of enactment of the Postal 
        Reform Act of 2013, and except as provided in subsection (e)--
                    ``(A) to provide other services that are not postal 
                services, if 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, rather 
                                than another entity, to provide the 
                                services; or
                                    ``(II) the Postal Service, in 
                                addition to or in partnership with 
                                another entity, to provide the 
                                services;
                            ``(iii) would not create unfair competition 
                        with the private sector, taking into 
                        consideration the extent to which the Postal 
                        Service will not, either by legal obligation or 
                        voluntarily, comply with any state or local 
                        requirements that generally apply to persons 
                        providing the services;
                            ``(iv) does not unreasonably interfere with 
                        or detract from the value of postal services, 
                        including--
                                    ``(I) the cost and efficiency of 
                                postal services; and
                                    ``(II) access to postal retail 
                                service;
                            ``(v) will be undertaken in accordance with 
                        all Federal laws generally applicable to the 
                        provision of such services; and
                            ``(vi) 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) to classify a service provided under 
                subparagraph (A) as an experimental product subject to 
                section 3641;'';
                    (B) in subsection (e)(1), by inserting ``and that 
                was offered by the Postal Service on the date of 
                enactment of the Postal Reform Act of 2013'' after 
                ``102(5)''; and
                    (C) by adding at the end the following:
    ``(g) For purposes of chapters 20 and 36 of this title, nonpostal 
services provided under subsection (a)(6) shall be treated as 
competitive products.''.
            (2) Complaints.--Section 3662(a) of title 39, United States 
        Code, is amended by inserting ``404(a)(6),'' after ``403(c),''.
            (3) 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)(vi) 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.
    (b) Governmental Services.--Section 411 of title 39, United States 
Code, is amended--
            (1) in the second sentence, by striking ``this section'' 
        and inserting ``this subsection'';
            (2) by inserting ``(a)'' before ``Executive agencies''; and
            (3) by adding at the end the following--
    ``(b)(1) The Postal Service is authorized to furnish property and 
services to States, local governments, and tribal governments, under 
such terms and conditions, including reimbursability, as the Postal 
Service and the applicable State, local government, or tribal 
government shall determine appropriate.
    ``(2) For purposes of this subsection--
            ``(A) the term `local government' means--
                    ``(i) a county, municipality, city, town, township, 
                local public authority, school district, special 
                district, intrastate district, council of governments, 
                or regional or interstate government entity;
                    ``(ii) an agency or instrumentality of an entity 
                described in clause (i); or
                    ``(iii) a rural community, an unincorporated town 
                or village, or an instrumentality of a rural community 
                or an unincorporated town or village;
            ``(B) the term `State' includes the District of Columbia, 
        the Commonwealth of Puerto Rico, the United States Virgin 
        Islands, Guam, American Samoa, the Commonwealth of the Northern 
        Mariana Islands, and any other territory or possession of the 
        United States; and
            ``(C) the term `tribal government' means the government of 
        an Indian tribe, as that term is defined in section 4(e) of the 
        Indian Self-Determination Act (25 U.S.C. 450b(e)).
    ``(c) The Postal Service shall submit to the Postal Regulatory 
Commission, together with the report required under section 3652, a 
report that details the costs and revenues of the services provided by 
the Postal Service under this section.
    ``(d) In determining reimbursability under subsections (a) and (b), 
the Postal Service shall ensure that each service provided under such 
subsections covers its costs attributable, as that term is defined in 
section 3631(b).''.
    (c) Conforming Amendments.--
            (1) Section 404(e) of title 39.--Section 404(e) of title 
        39, United States Code, is amended by striking paragraph (5) 
        and inserting the following:
    ``(5) Each nonpostal service authorized under this subsection shall 
be designated as market-dominant or competitive based on the 
designation of the nonpostal service in the Mail Classification 
Schedule as in effect on the date of enactment of the Postal Reform Act 
of 2013.
    ``(6) Nothing in this subsection shall be construed to prevent the 
Postal Service from establishing nonpostal products and services that 
are expressly authorized by subsection (a)(6).''.
            (2) Section 3641 of title 39.--Section 3641 of title 39, 
        United States Code, is amended--
                    (A) in subsection (b)(1), by inserting ``(or the 
                appropriate consumers in the case of nonpostal 
                products)'' after ``users'';
                    (B) in the first sentence of subsection (b)(3), by 
                striking ``section 3642(b)(1)'' and inserting 
                ``sections 404(g) and 3642(b)(1)'';
                    (C) in the second sentence of subsection (b)(3), by 
                striking ``section 3633(3)'' and inserting ``section 
                3633(a)(3)'';
                    (D) in subsection (e)(1), by striking 
                ``$10,000,000'' and inserting ``$50,000,000''; and
                    (E) in subsection (e)(2), by striking 
                ``$50,000,000'' and inserting ``$100,000,000''.
            (3) Technical and conforming amendments.--Section 
        2003(b)(1) of title 39, United States Code, is amended by 
        striking ``postal and nonpostal services'' and inserting 
        ``postal services, nonpostal services authorized under section 
        404(e), and products and services authorized under section 
        411,''.

SEC. 303. SHIPPING OF WINE, BEER, AND DISTILLED SPIRITS.

    (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 distilled spirits, 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 `distilled spirits', `wine', 
and `malt beverage' have the same meanings as in section 117 of the 
Federal Alcohol Administration Act (27 U.S.C. 211).
    ``(2) Distilled spirits, wine, or malt beverages shall be 
considered mailable if mailed--
            ``(A) in accordance with the laws and regulations 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; and
            ``(B) to an addressee who is at least 21 years of age--
                    ``(i) who provides a signature and presents a 
                valid, government-issued photo identification upon 
                delivery; or
                    ``(ii) the duly authorized agent of whom--
                            ``(I) is at least 21 years of age; and
                            ``(II) provides a signature and presents a 
                        valid, government-issued photo identification 
                        upon delivery.
    ``(3) The Postal Service shall prescribe such regulations as may be 
necessary to carry out this subsection.''.
    (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.

                  TITLE IV--POSTAL SERVICE GOVERNANCE

SEC. 401. BOARD OF GOVERNORS OF THE POSTAL SERVICE.

    (a) Board of Governors.--Title 39, United States Code, is amended 
by striking section 202 and inserting the following:
``Sec. 202. Board of Governors
    ``(a) In General.--The exercise of the power of the Postal Service 
shall be directed by a Board of Governors composed of 9 members 
appointed in accordance with this section, each of whom shall be a 
voting member of the Board.
    ``(b) Membership.--
            ``(1) Composition.--The Board shall be composed of--
                    ``(A) the Postmaster General;
                    ``(B) the Secretary of the Treasury; and
                    ``(C) 7 members, to be known as Governors, who 
                shall be appointed by the President, by and with the 
                advice and consent of the Senate.
            ``(2) Affiliation.--Not more than 4 of the Governors may be 
        members of any one political party.
            ``(3) Chairperson.--The President shall designate one of 
        the Governors to serve as the Chairperson of the Board.
    ``(c) Qualifications.--
            ``(1) In general.--The Governors shall represent the public 
        interest generally, and shall be chosen solely on the basis of 
        experience in public service, law, or accounting, or on a 
        demonstrated ability to manage organizations or corporations 
        (in either the public or private sector) of substantial size.
            ``(2) No specific interest.--A Governor may not be a 
        representative of a specific interest using the Postal Service.
            ``(3) Initial appointments.--At least one of the Governors 
        who is appointed to fill a position that is vacant on the date 
        of enactment of the Postal Reform Act of 2013 shall, in 
        addition to the qualifications set forth in paragraph (1), be 
        appointed based on the demonstrated ability of that individual 
        to manage and improve financially troubled organizations.
    ``(d) Removal.--A Governor may be removed only for cause.
    ``(e) Compensation.--
            ``(1) Salary.--Each Governor shall receive a salary of 
        $30,000 each year, plus $300 for each day, for not more than 42 
        days, on which the Governor attends a meeting of the Board. 
        Nothing in this paragraph shall be construed to limit the 
        number of days of meetings each year to 42 days.
            ``(2) Reimbursement for meetings.--Each Governor shall be 
        reimbursed for travel and reasonable expenses incurred in 
        attending meeting meetings of the Board.
    ``(f) Terms.--
            ``(1) In general.--Each Governor shall serve for a term of 
        7 years.
            ``(2) Vacancies.--A Governor appointed to fill a vacancy 
        occurring before the expiration of the term to which the 
        predecessor of that Governor was appointed shall serve for the 
        remainder for the remainder of that term.
            ``(3) Continuation of service.--A Governor may continue to 
        serve after the expiration of the term of that Governor until a 
        successor has been appointed, except that a Governor may not 
        continue to serve for more than 1 year after the date on which 
        the term of that Governor would have otherwise expired.
            ``(4) Limit.--A Governor may serve for not more than 2 
        terms.
    ``(g) Postmaster General.--
            ``(1) Appointment and removal.--The Governors shall appoint 
        and shall have the power to remove the Postmaster General.
            ``(2) Pay and term of service.--The pay and term of service 
        of the Postmaster General shall be determined by the Governors.
    ``(h) Deputy Postmaster General.--
            ``(1) Appointment and removal.--The Governors and the 
        Postmaster General shall appoint and shall have the power to 
        remove the Deputy Postmaster General.
            ``(2) Pay.--The pay of the Deputy Postmaster General shall 
        be determined by the Governors.
            ``(3) Term of service.--The term of service of the Deputy 
        Postmaster General shall be determined by the Governors and the 
        Postmaster General.
    ``(i) Executive Committee.--
            ``(1) Authority to establish.--The Board, by a vote of a 
        majority of its members, may establish an Executive Committee 
        of the Board, consistent with paragraph (2).
            ``(2) Board membership and responsibilities.--If 
        established by the Board, the Executive Committee shall--
                    ``(A) be composed of the Chairperson of the Board 
                and 2 additional Governors designated by the Board, 
                except that not more than 2 members of the Executive 
                Committee may be members of any one political party;
                    ``(B) develop and oversee implementation of 
                strategies and measures to ensure the long-term 
                financial solvency of the Postal Service;
                    ``(C) develop and oversee the implementation of the 
                financial plan and budget required under section 403 of 
                the Postal Reform Act of 2013 and updates to the 
                financial plan and budget;
                    ``(D) make recommendations to the Board regarding 
                aspects of postal operations; and
                    ``(E) assume such other responsibilities as the 
                Board determines appropriate.
            ``(3) Quorum.--2 members of the Executive Committee shall 
        constitute a quorum for the transaction of business by the 
        Executive Committee.
            ``(4) Termination.--The Executive Committee may be 
        terminated by a vote of the majority of the members of the 
        Board.''.
    (b) Procedures of the Board.--Section 205(c) of title 39, United 
States Code, is amended by striking ``6 members'' and inserting ``5 
members''.
    (c) Incumbents; Implementation.--
            (1) Incumbents.--An individual serving as a Governor on the 
        Board of Governors of the Postal Service (referred to in this 
        subsection as a ``Governor'') on the date of enactment of this 
        Act may continue to serve as a Governor until the expiration of 
        the term of that Governor.
            (2) Implementation of membership reduction.--
                    (A) In general.--The following vacancies in the 
                position of Governor shall not be filled:
                            (i) One of the 2 positions as a Governor 
                        for which the term is scheduled to expire on 
                        December 8, 2014.
                            (ii) One of the 2 positions as a Governor 
                        for which the term is scheduled to expire on 
                        December 8, 2015.
                    (B) Preference for abolishing vacant positions.--
                            (i) Positions expiring in 2014.--If one of 
                        the 2 positions referred to in clause (i) of 
                        subparagraph (A) is vacant on the date of 
                        enactment of this Act, that vacant position 
                        shall be the position that is not filled, as 
                        required under such clause (i).
                            (ii) Positions expiring in 2015.--If one of 
                        the 2 positions referred to in clause (ii) of 
                        subparagraph (A) is vacant on the date of 
                        enactment of this Act, that vacant position 
                        shall be the position that is not filled, as 
                        required under such clause (ii).
    (d) Conforming Amendments.--Title 39, United States Code, is 
amended--
            (1) in section 102(3)--
                    (A) by striking ``9'' and inserting ``7''; and
                    (B) by striking ``202(a)'' and inserting 
                ``202(b)(1)(C)''; and
            (2) in section 203--
                    (A) by striking ``202(c)'' and inserting 
                ``202(g)''; and
                    (B) by striking ``202(d)'' and inserting 
                ``202(h)''.

SEC. 402. STRATEGIC ADVISORY COMMISSION ON POSTAL SERVICE SOLVENCY AND 
              INNOVATION.

    (a) Establishment.--
            (1) In general.--There is established in the Postal Service 
        a Strategic Advisory Commission on Postal Service Solvency and 
        Innovation (referred to in this section as the ``Advisory 
        Commission'').
            (2) Independence.--The Advisory Commission shall not be 
        subject to the supervision of the Board of Governors of the 
        Postal Service (referred to in this section as the ``Board of 
        Governors''), the Postmaster General, or any other officer or 
        employee of the Postal Service.
    (b) Purpose.--The purpose of the Advisory Commission is--
            (1) to provide strategic guidance to the President, 
        Congress, the Board of Governors, and the Postmaster General on 
        enhancing the long-term solvency of the Postal Service; and
            (2) to foster innovative thinking to address the challenges 
        facing the Postal Service.
    (c) Membership.--
            (1) Composition.--The Advisory Commission shall be composed 
        of 7 members, of whom--
                    (A) 3 members shall be appointed by the President, 
                who shall designate 1 member appointed under this 
                subparagraph to serve as Chairperson of the Advisory 
                Commission; and
                    (B) 1 member shall be appointed by each of--
                            (i) the majority leader of the Senate;
                            (ii) the minority leader of the Senate;
                            (iii) the Speaker of the House of 
                        Representatives; and
                            (iv) the minority leader of the House of 
                        Representatives.
            (2) Qualifications.--Members of the Advisory Commission 
        shall be prominent citizens having--
                    (A) significant depth of experience in such fields 
                as business and public administration;
                    (B) a reputation for innovative thinking;
                    (C) familiarity with new and emerging technologies; 
                and
                    (D) experience with revitalizing organizations that 
                experienced significant financial challenges or other 
                challenges.
            (3) Incompatible offices.--An individual who is appointed 
        to the Advisory Commission may not serve as an elected official 
        or an officer or employee of the Federal Government while 
        serving as a member of the Advisory Commission, except in the 
        capacity of that individual as a member of the Advisory 
        Commission.
            (4) Deadline for appointment.--Each member of the Advisory 
        Commission shall be appointed not later than 45 days after the 
        date of enactment of this Act.
            (5) Meetings; quorum; vacancies.--
                    (A) Meetings.--The Advisory Commission shall meet 
                at the call of the Chairperson or a majority of the 
                members of the Advisory Commission.
                    (B) Quorum.--4 members of the Advisory Commission 
                shall constitute a quorum.
                    (C) Vacancies.--Any vacancy in the Advisory 
                Commission shall not affect the powers of the Advisory 
                Commission, but shall be filled as soon as practicable 
                in the same manner in which the original appointment 
                was made.
    (d) Duties and Powers.--
            (1) Duties.--The Advisory Commission shall--
                    (A) study matters that the Advisory Commission 
                determines are necessary and appropriate to develop a 
                strategic blueprint for the long-term solvency of the 
                Postal Service, including--
                            (i) the financial, operational, and 
                        structural condition of the Postal Service;
                            (ii) alternative strategies and business 
                        models that the Postal Service could adopt;
                            (iii) opportunities for additional postal 
                        and nonpostal products and services that the 
                        Postal Service could offer;
                            (iv) innovative services that postal 
                        services in foreign countries have offered, 
                        including services that respond to the 
                        increasing use of electronic means of 
                        communication; and
                            (v) the governance structure, management 
                        structure, and management of the Postal 
                        Service, including--
                                    (I) the appropriate method of 
                                appointment, qualifications, duties, 
                                and compensation for senior officials 
                                of the Postal Service, including the 
                                Postmaster General; and
                                    (II) the number and functions of 
                                senior officials of the Postal Service 
                                and the number of levels of management 
                                of the Postal Service; and
                    (B) submit the report required under subsection 
                (f).
            (2) Hearings.--The Advisory Commission may hold such 
        hearings, take such testimony, and receive such evidence as is 
        necessary to carry out this section.
            (3) Access to information.--The Advisory Commission may 
        secure directly from the Postal Service, the Board of 
        Governors, the Postal Regulatory Commission, and any other 
        Federal department or agency such information as the Advisory 
        Commission considers necessary to carry out this section. Upon 
        request of the Chairperson of the Advisory Commission, the head 
        of the department or agency shall furnish the information 
        described in the preceding sentence to the Advisory Commission.
    (e) Personnel Matters.--
            (1) Advisory commission members.--
                    (A) Compensation of members.--Each member of the 
                Advisory Commission shall be compensated at a rate 
                equal to the daily equivalent of the annual rate of 
                basic pay prescribed for level IV of the Executive 
                Schedule under section 5315 of title 5, United States 
                Code, for each day during which the member is engaged 
                in the actual performance of the duties of the Advisory 
                Commission.
                    (B) Travel expenses.--Each member of the Advisory 
                Commission shall be allowed travel expenses, including 
                per diem in lieu of subsistence, at the rate authorized 
                for employees serving intermittently in the Government 
                service under section 5703 of title 5, United States 
                Code, while away from home or regular place of business 
                in the performance of services for the Advisory 
                Commission.
            (2) Staff.--
                    (A) Appointment and compensation.--The Chairperson, 
                in accordance with rules agreed upon by the Advisory 
                Commission, shall appoint and fix the compensation of 
                an executive director and such other personnel as may 
                be necessary to enable the Advisory Commission to carry 
                out the functions of the Advisory Commission, without 
                regard to the provisions of title 5, United States 
                Code, governing appointments in the competitive 
                service, and without regard to the provisions of 
                chapter 51 and subchapter III of chapter 53 of such 
                title relating to classification of positions and 
                General Schedule pay rates, except that a rate of pay 
                fixed under this subparagraph may not exceed the annual 
                rate of basic pay prescribed for level V of the 
                Executive Schedule under section 5316 of title 5, 
                United States Code.
                    (B) Detailees.--Any Federal employee, including an 
                employee of the Postal Service, may be detailed to the 
                Advisory Commission without reimbursement, and such 
                detail shall be without interruption or loss of the 
                civil service rights, status, or privilege of the 
                employee.
                    (C) Consultant services.--The Advisory Commission 
                may procure the services of experts and consultants in 
                accordance with section 3109 of title 5, United States 
                Code, at rates for individuals that do not exceed the 
                daily equivalent of the annual rate of basic pay 
                prescribed for level IV of the Executive Schedule under 
                section 5315 of such title.
    (f) Strategic Blueprint for Long-Term Solvency.--
            (1) In general.--Not later than 9 months after the date of 
        enactment of this Act, the Advisory Commission shall submit a 
        report that contains a strategic blueprint for the long-term 
        solvency of the Postal Service to--
                    (A) the President;
                    (B) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (C) the Committee on Oversight and Government 
                Reform of the House of Representatives;
                    (D) the Board of Governors; and
                    (E) the Postmaster General.
            (2) Contents.--The strategic blueprint contained in the 
        report submitted under paragraph (1) shall include--
                    (A) an assessment of the business model of the 
                Postal Service as of the date on which the report is 
                submitted;
                    (B) an assessment of potential future business 
                models for the Postal Service, including an evaluation 
                of the appropriate balance between--
                            (i) necessary reductions in costs and 
                        services; and
                            (ii) additional opportunities for growth 
                        and revenue;
                    (C) a strategy for addressing significant current 
                and future liabilities;
                    (D) identification of opportunities for further 
                reductions in costs;
                    (E) identification of opportunities for new and 
                innovative products and services;
                    (F) a strategy for future growth;
                    (G) a vision of how the Postal Service will operate 
                in a sustainable manner 20 years after the date of 
                enactment of this Act; and
                    (H) recommendations for any legislative changes 
                necessary to implement the strategic blueprint 
                described in this paragraph.
    (g) Study and Strategic Plan on Interagency Agreements for Post 
Offices.--
            (1) Duties of advisory commission.--
                    (A) Study.--
                            (i) In general.--The Advisory Commission 
                        shall conduct a study concerning the 
                        advisability of the Postal Service entering 
                        into interagency agreements with Federal, 
                        State, and local agencies, with respect to post 
                        offices, that--
                                    (I) streamline and consolidate 
                                services provided by Federal, State, 
                                and local agencies;
                                    (II) decrease the costs incurred by 
                                Federal agencies in providing services 
                                to the general public; and
                                    (III) improve the efficiency and 
                                maintain the customer service standards 
                                of the Federal, State, and local 
                                agencies.
                            (ii) Clarification of inter-agency 
                        agreements.--The study under clause (i) shall 
                        include consideration of the advisability of 
                        the Postal Service entering into an interagency 
                        agreement with--
                                    (I) the Bureau of the Census for 
                                the provision of personnel and 
                                resources for the 2020 decennial 
                                census;
                                    (II) the department of motor 
                                vehicles, or an equivalent agency, of 
                                each State for the provision of driver 
                                licenses, vehicle registration, and 
                                voter registration;
                                    (III) the division of wildlife, the 
                                department of natural resources, or an 
                                equivalent agency, of each State for 
                                the provision of hunting and fishing 
                                licenses; and
                                    (IV) other Federal agencies 
                                responsible for providing services to 
                                the general public.
                    (B) Findings.--The Advisory Commission shall--
                            (i) not later than 9 months after the date 
                        of enactment of this Act, submit to the Postal 
                        Service the findings of the study conducted 
                        under subparagraph (A); and
                            (ii) incorporate the findings described in 
                        clause (i) into the strategic blueprint 
                        required under subsection (f).
            (2) Postal service strategic plan.--
                    (A) In general.--Not later than 6 months after the 
                date on which the Advisory Commission submits to the 
                Postal Service the findings under paragraph (1)(B), the 
                Postal Service shall submit a strategic plan for 
                entering into interagency agreements concerning post 
                offices to--
                            (i) the Committee on Homeland Security and 
                        Governmental Affairs of the Senate; and
                            (ii) the Committee on Oversight and 
                        Government Reform of the House of 
                        Representatives.
                    (B) Limitations.--The strategic plan submitted 
                under subparagraph (A) shall be consistent with public 
                interest and demand.
                    (C) Cost savings projections.--The strategic plan 
                submitted under subparagraph (A) shall include, for 
                each proposed interagency agreement, a projection of 
                cost savings to be realized by the Postal Service and 
                by any other Federal agency that is a party to the 
                agreement.
    (h) Termination of the Commission.--The Advisory Commission shall 
terminate 90 days after the later of--
            (1) the date on which the Advisory Commission submits the 
        report on the strategic blueprint for long-term solvency under 
        subsection (f); and
            (2) the date on which the Advisory Commission submits the 
        findings on interagency agreements for post offices under 
        subsection (g).
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated out of the Postal Service Fund for fiscal years 2014 and 
2015 such sums as may be necessary to carry out this section.

SEC. 403. LONG-TERM SOLVENCY PLAN; ANNUAL FINANCIAL PLAN AND BUDGET.

    (a) Definitions.--In this section--
            (1) the term ``Board of Governors'' means the Board of 
        Governors of the Postal Service;
            (2) the term ``long-term solvency plan'' means the plan 
        required to be submitted by the Postmaster General under 
        subsection (b)(1); and
            (3) the term ``solvency'' means the ability of the Postal 
        Service to pay debts and meet expenses, including the ability 
        to perform maintenance and repairs, make investments, and 
        maintain financial reserves, as necessary to fulfill the 
        requirements under, and comply with the policies of, title 39, 
        United States Code, and other obligations of the Postal 
        Service.
    (b) Plan for the Long-Term Solvency of the Postal Service.--
            (1) Solvency plan required.--
                    (A) In general.--Not later than the date described 
                in subparagraph (B), the Postmaster General shall 
                submit to the Board of Governors a plan describing the 
                actions the Postal Service intends to take to achieve 
                long-term solvency.
                    (B) Date.--The date described in this subparagraph 
                is the later of--
                            (i) the date that is 90 days after the date 
                        of enactment of this Act; and
                            (ii) the earliest date as of which the 
                        Board of Governors has the number of members 
                        required for a quorum.
            (2) Considerations.--The long-term solvency plan shall take 
        into account--
                    (A) the legal authority of the Postal Service;
                    (B) changes in the legal authority and 
                responsibilities of the Postal Service under this Act 
                and the amendments made by this Act;
                    (C) any cost savings that the Postal Service 
                anticipates will be achieved through negotiations with 
                employees of the Postal Service;
                    (D) projected changes in mail volume;
                    (E) the impact of any regulations that the Postal 
                Service is required to promulgate under Federal law;
                    (F) projected changes in the number of employees 
                needed to carry out the responsibilities of the Postal 
                Service; and
                    (G) the long-term capital needs of the Postal 
                Service, including the need to maintain, repair, and 
                replace facilities and equipment.
            (3) Review and submission to congress.--
                    (A) Review.--Upon receipt of the long-term solvency 
                plan, the Board of Governors shall review the long-term 
                solvency plan and may request that the Postmaster 
                General make changes to the long-term solvency plan.
                    (B) Submission to congress.--Not later than 60 days 
                after initial receipt of the long-term solvency plan, 
                the Board of Governors shall provide a copy of the 
                long-term solvency plan 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, together with a letter 
                indicating whether and in what respects the Board of 
                Governors agrees or disagrees with the measures set out 
                in the long-term solvency plan.
            (4) Updates.--
                    (A) Annual updates required.--The Postmaster 
                General shall update and submit to the Board of 
                Governors the long-term solvency plan not less 
                frequently than annually for 5 years after the 
                enactment of this Act.
                    (B) Review by board of governors.--The Board of 
                Governors shall review and submit to Congress the 
                updates under this paragraph in accordance with 
                paragraph (3).
    (c) Annual Financial Plan and Budget.--
            (1) In general.--For each of the first 5 full fiscal years 
        after the date of enactment of this Act, not later than August 
        1 of the preceding fiscal year, the Postmaster General shall 
        submit to the Board of Governors a financial plan and budget 
        for the fiscal year that is consistent with the goal of 
        promoting the long-term solvency of the Postal Service.
            (2) Contents of financial plan and budget.--The financial 
        plan and budget for a fiscal year shall--
                    (A) promote the financial stability of the Postal 
                Service and provide for progress towards the long-term 
                solvency of the Postal Service;
                    (B) include the annual budget program of the Postal 
                Service under section 2009 of title 39, United States 
                Code, and the plan of the Postal Service commonly 
                referred to as the ``Integrated Financial Plan'';
                    (C) describe lump-sum expenditures by all 
                categories traditionally used by the Postal Service;
                    (D) describe capital expenditures, together with a 
                schedule of projected capital commitments and cash 
                outlays of the Postal Service, and proposed sources of 
                funding;
                    (E) contain estimates of overall debt (both 
                outstanding and expected to be incurred);
                    (F) contain cash flow and liquidity forecasts for 
                the Postal Service at such intervals as the Board of 
                Governors may require;
                    (G) include a statement describing methods of 
                estimations and significant assumptions; and
                    (H) address any other issues that the Board of 
                Governors considers appropriate.
            (3) Process for submission and approval of financial plan 
        and budget.--
                    (A) Definition.--In this paragraph, the term 
                ``covered recipient'' means--
                            (i) the Postmaster General;
                            (ii) the President;
                            (iii) the Committee on Homeland Security 
                        and Governmental Affairs of the Senate; and
                            (iv) the Committee on Oversight and 
                        Government Reform of the House of 
                        Representatives.
                    (B) Review by the board of governors.--
                            (i) In general.--Upon receipt of a 
                        financial plan and budget under paragraph (1), 
                        the Board of Governors shall promptly review 
                        the financial plan and budget.
                            (ii) Additional information.--In conducting 
                        the review under this subparagraph, the Board 
                        of Governors may request any additional 
                        information it considers necessary and 
                        appropriate to carry out the duties of the 
                        Board of Governors.
                    (C) Approval of financial plan and budget submitted 
                by the postmaster general.--If the Board of Governors 
                determines that the financial plan and budget for a 
                fiscal year received under paragraph (1) meets the 
                requirements under paragraph (2) and otherwise 
                adequately addresses the financial situation of the 
                Postal Service--
                            (i) the Board of Governors shall approve 
                        the financial plan and budget and submit a 
                        notice of approval to each covered recipient; 
                        and
                            (ii) the Postmaster General shall submit 
                        the annual budget program for the relevant 
                        fiscal year to the Office of Management and 
                        Budget in accordance with section 2009 of title 
                        39, United States Code.
                    (D) Disapproval of financial plan and budget 
                submitted by the postmaster general.--
                            (i) In general.--If the Board of Governors 
                        determines that the financial plan and budget 
                        for a fiscal year under paragraph (1) does not 
                        meet the requirements under paragraph (2) or is 
                        otherwise inadequate in addressing the 
                        financial situation of the Postal Service, the 
                        Board of Governors shall--
                                    (I) disapprove the financial plan 
                                and budget;
                                    (II) submit to each covered 
                                recipient a statement that describes 
                                the reasons for the disapproval;
                                    (III) direct the Postmaster General 
                                to appropriately revise the financial 
                                plan and budget for the Postal Service; 
                                and
                                    (IV) submit the revised financial 
                                plan and budget to each covered 
                                recipient.
                            (ii) Submission to office of management and 
                        budget.--Upon receipt of a revised financial 
                        plan and budget under clause (i)(IV), the 
                        Postmaster General shall submit the annual 
                        budget program for the relevant fiscal year to 
                        the Office of Management and Budget in 
                        accordance with section 2009 of title 39, 
                        United States Code.
                    (E) Deadline for transmission of financial plan and 
                budget by board of governors.--Notwithstanding any 
                other provision of this paragraph, not later than 
                September 30 of the fiscal year that precedes each 
                fiscal year for which a financial plan and budget is 
                required under paragraph (1), the Board of Governors 
                shall--
                            (i) submit to each covered recipient a 
                        notice of approval under subparagraph 
                        (C)(i)(I); or
                            (ii) submit to each covered recipient an 
                        approved financial plan and budget for the 
                        fiscal year under subparagraph (D)(i)(IV).
                    (F) Revisions to financial plan and budget.--
                            (i) Permitting postmaster general to submit 
                        revisions.--The Postmaster General may submit 
                        proposed revisions to the financial plan and 
                        budget for a fiscal year to the Board of 
                        Governors at any time during the fiscal year.
                            (ii) Process for review, approval, 
                        disapproval, and postmaster general action.--
                        The procedures described in subparagraphs (C) 
                        through (E) shall apply with respect to a 
                        proposed revision to a financial plan and 
                        budget in the same manner as such procedures 
                        apply with respect to the original financial 
                        plan and budget.
    (d) Assumptions Based on Current Law.--In preparing the long-term 
solvency plan or an annual financial plan and budget required under 
this section, the Postal Service shall base estimates of revenues and 
expenditures on Federal law as in effect at the time of the preparation 
of the long-term solvency plan or the financial plan and budget.

SEC. 404. CHIEF INNOVATION OFFICER; INNOVATION STRATEGY.

    (a) Chief Innovation Officer.--
            (1) In general.--Chapter 2 of part I of title 39, United 
        States Code, is amended by adding at the end the following:
``Sec. 209. Chief innovation officer
    ``(a) Establishment.--There shall be in the Postal Service a Chief 
Innovation Officer appointed by the Postmaster General.
    ``(b) Qualifications.--The Chief Innovation Officer shall have 
proven expertise and a record of accomplishment in areas such as--
            ``(1) the postal and shipping industry;
            ``(2) innovative product research and development;
            ``(3) brand marketing strategy;
            ``(4) new and emerging technology, including communications 
        technology; or
            ``(5) business process management.
    ``(c) Duties.--The Chief Innovation Officer shall lead the 
development and implementation of--
            ``(1) innovative postal products and services, particularly 
        products and services that use new and emerging technology, 
        including communications technology, to improve the net 
        financial position of the Postal Service; and
            ``(2) nonpostal products and services authorized under 
        section 404(a)(6) that have the potential to improve the net 
        financial position of the Postal Service.
    ``(d) Deadline.--The Postmaster General shall appoint a Chief 
Innovation Officer not later than 90 days after the date of enactment 
of the Postal Reform Act of 2013.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 2 of part I of title 39, United States 
        Code, is amended by adding at the end the following:

``209. Chief Innovation Officer.''.
    (b) Innovation Strategy.--
            (1) Initial report on innovation strategy.--
                    (A) In general.--Not later than 9 months after the 
                date of enactment of this Act, the Postmaster General, 
                acting through the Chief Innovation Officer, shall 
                submit a report that contains a comprehensive strategy 
                (referred to in this subsection as the ``innovation 
                strategy'') for improving the net financial position of 
                the Postal Service through innovation, including the 
                offering of new postal and nonpostal products and 
                services, to--
                            (i) the Committee on Homeland Security and 
                        Governmental Affairs of the Senate; and
                            (ii) the Committee on Oversight and 
                        Government Reform of the House of 
                        Representatives.
                    (B) Matters to be addressed.--At a minimum, the 
                report on innovation strategy required under 
                subparagraph (A) shall describe--
                            (i) the specific innovative postal and 
                        nonpostal products and services to be developed 
                        and offered by the Postal Service, including--
                                    (I) the nature of the market demand 
                                to be satisfied by each product or 
                                service; and
                                    (II) the estimated date by which 
                                each product or service will be 
                                introduced;
                            (ii) the cost of developing and offering 
                        each product or service;
                            (iii) the anticipated sales volume for each 
                        product or service;
                            (iv) the anticipated revenues and profits 
                        to be generated by each product or service;
                            (v) the likelihood of success of each 
                        product or service and the risks associated 
                        with the development and sale of each product 
                        or service;
                            (vi) the trends anticipated in market 
                        conditions that may affect the success of each 
                        product or service during the 5-year period 
                        beginning on the date of the submission of the 
                        report under subparagraph (A);
                            (vii) any innovations designed to improve 
                        the net financial position of the Postal 
                        Service, other than the offering of new 
                        products and services; and
                            (viii) the metrics that will be used to 
                        assess the effectiveness of the innovation 
                        strategy.
            (2) Annual report.--
                    (A) In general.--Not later than 1 year after the 
                date of the submission of the initial report containing 
                the innovation strategy under paragraph (1), and 
                annually thereafter for 10 years, the Postmaster 
                General, acting through the Chief Innovation Officer, 
                shall submit a report on the implementation of the 
                innovation strategy to--
                            (i) the Committee on Homeland Security and 
                        Governmental Affairs of the Senate; and
                            (ii) the Committee on Oversight and 
                        Government Reform of the House of 
                        Representatives.
                    (B) Matters to be addressed.--At a minimum, an 
                annual report submitted under subparagraph (A) shall 
                include--
                            (i) an update of the initial report on 
                        innovation strategy submitted under paragraph 
                        (1);
                            (ii) a description of the progress made by 
                        the Postal Service in implementing the 
                        products, services, and other innovations 
                        described in the initial report on innovation 
                        strategy; and
                            (iii) an analysis of the performance of 
                        each product, service, or other innovation 
                        described in the initial report on innovation 
                        strategy, including--
                                    (I) the revenue generated by each 
                                product or service developed in 
                                accordance with the innovation strategy 
                                under this section and the cost of 
                                developing and offering each product or 
                                service for the preceding year;
                                    (II) trends in each market in which 
                                a product or service is intended to 
                                satisfy a demand;
                                    (III) each product or service 
                                identified in the innovation strategy 
                                that is to be discontinued, the date on 
                                which each discontinuance will occur, 
                                and the reasons for each 
                                discontinuance;
                                    (IV) each alteration that the 
                                Postal Service plans to make to a 
                                product or service identified in the 
                                innovation strategy to address changing 
                                market conditions and an explanation of 
                                how each alteration will ensure the 
                                success of the product or service;
                                    (V) the performance of innovations 
                                other than new products and services 
                                that are designed to improve the net 
                                financial position of the Postal 
                                Service; and
                                    (VI) the performance of the 
                                innovation strategy according to the 
                                metrics described in paragraph 
                                (1)(B)(viii).

SEC. 405. AREA AND DISTRICT OFFICE STRUCTURE.

    (a) Definitions.--In this section--
            (1) the term ``area office'' means the central office of an 
        administrative field unit with responsibility for postal 
        operations in a designated geographic area that is comprised of 
        district offices;
            (2) the term ``district office'' means the central office 
        of an administrative field unit with responsibility for postal 
        operations in a designated geographic area (as defined under 
        regulations, directives, or other guidance of the Postal 
        Service, as in effect on January 1, 2013); and
            (3) the term ``State'' includes the District of Columbia, 
        the Commonwealth of Puerto Rico, the United States Virgin 
        Islands, Guam, American Samoa, the Commonwealth of the Northern 
        Mariana Islands, and any other territory or possession of the 
        United States.
    (b) 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 Government Reform of the House of 
Representatives a comprehensive strategic plan for an area office and 
district office structure that will--
            (1) be efficient and cost effective;
            (2) not substantially and adversely affect the operations 
        of the Postal Service; and
            (3) reduce the total number of area and district offices.
    (c) Implementation.--Not later than 60 days after the date on which 
the Postal Service submits the plan under subsection (b), the Postal 
Service shall begin implementing the plan, including, where 
appropriate, by consolidating area and district offices.
    (d) State Liaison.--If the Postal Service does not maintain a 
district office in a State, the Postal Service shall designate at least 
1 employee of the district office responsible for Postal Service 
operations in the State to represent the needs of Postal Service 
customers in the State. An employee designated under this subsection to 
represent the needs of Postal Service customers in a State shall be 
located in that State.

SEC. 406. INSPECTOR GENERAL OF THE POSTAL SERVICE.

    (a) Appointment of Inspector General of the Postal Service by 
President.--The Inspector General Act of 1978 (5 U.S.C. App.) is 
amended--
            (1) in section 8G--
                    (A) in subsection (a)--
                            (i) in paragraph (2), by striking ``the 
                        Postal Regulatory Commission, and the United 
                        States Postal Service'' and inserting ``and the 
                        Postal Regulatory Commission'';
                            (ii) in paragraph (3), by striking 
                        ``subsection (h)(1)'' and inserting 
                        ``subsection (g)(1)''; and
                            (iii) in paragraph (4)--
                                    (I) in the matter preceding 
                                subparagraph (A), by striking 
                                ``subsection (h)(1)'' and inserting 
                                ``subsection (g)(1)'';
                                    (II) by striking subparagraph (B); 
                                and
                                    (III) by redesignating 
                                subparagraphs (C) through (H) as 
                                subparagraphs (B) through (G), 
                                respectively;
                    (B) in subsection (c), by striking ``Except as 
                provided under subsection (f) of this section, the'' 
                and inserting ``The'';
                    (C) by striking subsection (f); and
                    (D) by redesignating subsections (g) and (h) as 
                subsections (f) and (g), respectively;
            (2) by inserting after section 8M the following:

``SEC. 8N. SPECIAL PROVISIONS CONCERNING THE INSPECTOR GENERAL OF THE 
              UNITED STATES POSTAL SERVICE.

    ``(a) In this section--
            ``(1) the term `Inspector General' means the Inspector 
        General of the United States Postal Service; and
            ``(2) the term `Governors' has the meaning given that term 
        in section 102(3) of title 39, United States Code.
    ``(b) In carrying out the duties and responsibilities specified in 
this Act, the Inspector General shall have oversight responsibility for 
all activities of the Postal Inspection Service, including any internal 
investigation performed by the Postal Inspection Service. The Chief 
Postal Inspector shall promptly report the significant activities being 
carried out by the Postal Inspection Service to the Inspector General.
    ``(c)(1)(A) The Inspector General shall be under the authority, 
direction, and control of the Governors with respect to audits or 
investigations, or the issuance of subpoenas, which require access to 
sensitive information concerning--
            ``(i) ongoing civil or criminal investigations or 
        proceedings;
            ``(ii) undercover operations;
            ``(iii) the identity of confidential sources, including 
        protected witnesses;
            ``(iv) intelligence or counterintelligence matters; or
            ``(v) other matters the disclosure of which would 
        constitute a serious threat to national security.
    ``(B) With respect to the information described under subparagraph 
(A), the Governors may prohibit the Inspector General from carrying out 
or completing any audit or investigation, or from issuing any subpoena, 
after the Inspector General has decided to initiate, carry out, or 
complete such audit or investigation or to issue such subpoena, if the 
Governors determine that such prohibition is necessary to prevent the 
disclosure of any information described under subparagraph (A) or to 
prevent the significant impairment to the national interests of the 
United States.
    ``(C) If the Governors exercise any power under subparagraph (A) or 
(B), the Governors shall notify the Inspector General in writing 
stating the reasons for the exercise of such power. Not later than 30 
days after receipt of any such notice, the Inspector General shall 
transmit a copy of the notice 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, and to other 
appropriate committees or subcommittees of the Congress.
    ``(2) In carrying out the duties and responsibilities specified in 
this Act, the Inspector General--
            ``(A) may initiate, conduct, and supervise such audits and 
        investigations in the United States Postal Service as the 
        Inspector General considers appropriate; and
            ``(B) shall give particular regard to the activities of the 
        Postal Inspection Service with a view toward avoiding 
        duplication and ensuring effective coordination and 
        cooperation.
    ``(3) Any report required to be transmitted by the Governors to the 
appropriate committees or subcommittees of the Congress under section 
5(d) shall also be transmitted, within the seven-day period specified 
under that 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.
    ``(d) Nothing in this Act shall restrict, eliminate, or otherwise 
adversely affect any of the rights, privileges, or benefits of either 
employees of the United States Postal Service, or labor organizations 
representing employees of the United States Postal Service, under 
chapter 12 of title 39, United States Code, the National Labor 
Relations Act (29 U.S.C. 151 et seq.), any handbook or manual affecting 
employee labor relations with the United States Postal Service, or any 
collective bargaining agreement.
    ``(e) There are authorized to be appropriated, out of the Postal 
Service Fund, such sums as may be necessary for the Office of Inspector 
General of the United States Postal Service.''; and
            (3) in section 12--
                    (A) in paragraph (1), by striking ``or the Federal 
                Cochairpersons of the Commissions established under 
                section 15301 of title 40, United States Code'' and 
                inserting ``the Federal Cochairpersons of the 
                Commissions established under section 15301 of title 
                40, United States Code; or the Board of Governors of 
                the United States Postal Service''; and
                    (B) in paragraph (2), by striking ``or the 
                Commissions established under section 15301 of title 
                40, United States Code'' and inserting ``the 
                Commissions established under section 15301 of title 
                40, United States Code, or the United States Postal 
                Service''.
    (b) Technical and Conforming Amendments.--Title 39, United States 
Code, is amended--
            (1) in section 102(4), by striking ``section 202(e) of this 
        title'' and inserting ``section 3 of the Inspector General Act 
        of 1978 (5 U.S.C. App.)'';
            (2) in section 1001(b), in the first sentence, by inserting 
        ``, and section 3 of the Inspector General Act of 1978 (5 
        U.S.C. App.)'' after ``1001(c) of this title''; and
            (3) in section 1005(a)(3), by inserting ``, and section 3 
        of the Inspector General Act of 1978 (5 U.S.C. App.)'' after 
        ``1001(c) of this title''.
    (c) Applicability.--
            (1) In general.--The amendments made by this section shall 
        apply with respect to the first individual appointed as 
        Inspector General of the Postal Service after the date of 
        enactment of this Act.
            (2) Rule of construction.--Nothing in this Act may be 
        construed to alter the authority or the length of the term of 
        the individual serving as Inspector General of the Postal 
        Service on the date of enactment of this Act.

              TITLE V--FEDERAL EMPLOYEES' COMPENSATION ACT

SEC. 501. SHORT TITLE; REFERENCES.

    (a) Short Title.--This title may be cited as the ``Workers' 
Compensation Reform Act of 2013''.
    (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. 502. 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 2013;
            ``(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 
        2013; 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 2013; 
                        and
                            ``(ii) meets the criteria under section 
                        8105(c);
                    ``(B) who, on the date of enactment of the Workers' 
                Compensation Reform Act of 2013--
                            ``(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 2013, 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 2013; 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 2013 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, 
                have an exempt disability condition, or face financial 
                hardship.--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 2013, has 
                        attained retirement age;
                            ``(ii) is an individual who has an exempt 
                        disability condition; or
                            ``(iii) is a member of a household that 
                        would meet the income and assets requirements 
                        for eligibility for the supplemental nutrition 
                        assistance program as described in section 5 of 
                        the Food and Nutrition Act of 2008 (7 U.S.C. 
                        2014) (not including any provisions permitting 
                        eligibility due to benefits received under any 
                        other law) if the basic compensation for total 
                        disability of the employee were provided in 
                        accordance with paragraph (1).
                    ``(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 2013.''.
            (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 or 
                face financial hardship.--Paragraph (1) shall not apply 
                to a covered claim for partial disability by an 
                employee if the employee--
                            ``(i) on the date of enactment of the 
                        Workers' Compensation Reform Act of 2013, has 
                        attained retirement age; or
                            ``(ii) is a member of a household that 
                        would meet the income and assets requirements 
                        for eligibility for the supplemental nutrition 
                        assistance program as described in section 5 of 
                        the Food and Nutrition Act of 2008 (7 U.S.C. 
                        2014) (not including any provisions permitting 
                        eligibility due to benefits received under any 
                        other law) if the basic compensation for total 
                        disability of the employee were provided in 
                        accordance with paragraph (1).
                    ``(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 2013.''.

SEC. 503. 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 2013 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 
                2013.
                    ``(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 2013, 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 2013--
                    ``(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 2013, 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 2013, subsection (b)(2)(B) shall be 
applied by substituting `75 percent' for `66\2/3\ percent'.''.

SEC. 504. 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 504 of the Workers' 
                        Compensation Reform Act of 2013 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 2013, 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. 505. 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. 506. 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. 507. 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. 508. 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 subsection (d) as subsection (c).
    (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. 509. 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. 510. SANCTION FOR NONCOOPERATION WITH FIELD NURSES.

    Section 8123, as amended by section 507, 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. 511. 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''.
    (c) Effective Date.--This section and the amendments made by this 
section shall take effect on the date of enactment of this Act.

SEC. 512. 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 `improper payment' has the meaning given 
        that term in section 2(g) of the Improper Payments Information 
        Act of 2002 (31 U.S.C. 3321 note);
            ``(3) the term `Inspector General'--
                    ``(A) means an Inspector General described in 
                subparagraph (A), (B), or (I) of section 11(b)(1) of 
                the Inspector General Act of 1978 (5 U.S.C. App.); and
                    ``(B) does not include the Inspector General of an 
                entity having no employees covered under the FECA 
                program;
            ``(4) the term `Integrity and Compliance Program' means the 
        Integrity and Compliance Program established under subsection 
        (b);
            ``(5) the term `provider' means a provider of medical or 
        other services under the FECA program;
            ``(6) the term `Secretary' means the Secretary of Labor; 
        and
            ``(7) the term `Task Force' means the FECA Integrity and 
        Compliance Task Force established under subsection (c)(2)(A).
    ``(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 fraudulent and other improper 
payments for the FECA program, which shall include--
            ``(1) procedures for identifying potentially improper 
        payments before payment is made to claimants and providers, 
        including, where appropriate, predictive analytics;
            ``(2) reviews after payment is made to identify potentially 
        improper payments 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 information in 
                databases relating to claimants to ensure accuracy and 
                completeness; and
            ``(7) 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 fraudulent 
        and other improper payments 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.
                    ``(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; and
                            ``(v) other appropriate Federal officials, 
                        as determined by the Chairperson and Vice 
                        Chairperson of the Task Force.
                    ``(C) Advisory members.--The following officials 
                shall attend meetings of the Task Force and participate 
                as ad hoc, advisory members, to provide technical 
                assistance and guidance to the Task Force with respect 
                to the duties of the Task Force:
                            ``(i) The Inspector General of the 
                        Department of Labor.
                            ``(ii) The Inspector General of the United 
                        States Postal Service.
                            ``(iii) 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 of the Task 
                        Force.
                    ``(D) 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 other 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; and
                            ``(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).
            ``(3) Rule of construction.--Nothing in this subsection 
        shall be construed to limit or restrict any authority of an 
        Inspector General.
    ``(d) Improvements to Access of Federal Databases.--
            ``(1) In general.--In order to improve compliance with the 
        requirements under and the integrity of the FECA program, or as 
        required to otherwise detect and prevent improper payments 
        under the FECA program (including for purposes of computer 
        matching under subsection (e)(1)(D)), upon written request--
                    ``(A) the Commissioner of Social Security shall 
                make available to the Secretary, the Postmaster 
                General, and each Inspector General the Social Security 
                earnings information of a living or deceased employee;
                    ``(B) the Director of the Office of Personnel 
                Management shall make available to the Secretary, the 
                Postmaster General, and each Inspector General the 
                information in the databases of Federal employees and 
                retirees maintained by the Director; and
                    ``(C) the Secretary of Veterans Affairs shall make 
                available to the Secretary, the Postmaster General, and 
                each Inspector General the information in the database 
                of disabled individuals maintained by the Secretary of 
                Veterans Affairs.
            ``(2) National directory of new hires.--Upon written 
        request, the Secretary of Health and Human Services shall make 
        available to the Secretary, the Postmaster General, each 
        Inspector General, and the Comptroller General of the United 
        States the information in the National Directory of New Hires 
        for purposes of carrying out this subchapter, in order to 
        improve compliance with the requirements under and the 
        integrity of the FECA program, or as required to otherwise 
        detect and prevent improper payments under the FECA program 
        (including for purposes of computer matching under subsection 
        (e)(1)(D)). The Comptroller General may obtain information from 
        the National Directory of New Hires for purposes of any audit, 
        evaluation, or investigation, including any audit, evaluation, 
        or investigation relating to program integrity.
            ``(3) 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 paragraph 
        (1)(A).
            ``(4) Provision.--Information requested under this 
        subsection shall be provided--
                    ``(A) in a timely manner;
                    ``(B) at a reasonable cost to the Secretary, the 
                Postmaster General, or an Inspector General;
                    ``(C) without cost to the Comptroller General of 
                the United States; and
                    ``(D) in the manner, frequency, and form reasonably 
                specified by the officer making the request, which, 
                upon request, shall include electronic form.
            ``(5) 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 subparagraphs (B) and (C) of paragraph (1) 
                and paragraph (2).
                    ``(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 subparagraphs (B) 
                and (C) of paragraph (1) and paragraph (2) for program 
                compliance and integrity. The report required under 
                this subparagraph may be included as part of the report 
                required under subsection (f).
            ``(6) 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.
            ``(7) Rule of construction.--Nothing in this subsection 
        shall be construed to limit the authority of the Comptroller 
        General of the United States under section 716 of title 31.
    ``(e) General Protocols and Security.--
            ``(1) Establishment.--
                    ``(A) In general.--In order to ensure strong 
                information security and privacy standards, the Task 
                Force 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 Task Force 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 Task Force 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.
                    ``(D) Computer matching by federal agencies for 
                purposes of investigation and prevention of improper 
                payments and fraud.--
                            ``(i) In general.--Except as provided in 
                        this subparagraph, in accordance with section 
                        552a (commonly known as the Privacy Act of 
                        1974), the Secretary, the Postmaster General, 
                        each Inspector General, and the head of each 
                        agency may enter into computer matching 
                        agreements that allow ongoing data matching 
                        (which shall include automated data matching) 
                        in order to assist in the detection and 
                        prevention of improper payments under the FECA 
                        program.
                            ``(ii) Review.--Not later than 60 days 
                        after a proposal for an agreement under clause 
                        (i) has been presented to a Data Integrity 
                        Board established under section 552a(u) for 
                        consideration, the Data Integrity Board shall 
                        approve or deny the agreement.
                            ``(iii) Termination date.--An agreement 
                        under clause (i)--
                                    ``(I) shall have a termination date 
                                of less than 3 years; and
                                    ``(II) during the 3-month period 
                                ending on the date on which the 
                                agreement is scheduled to terminate, 
                                may be renewed by the agencies entering 
                                the agreement for not more than 3 
                                years.
                            ``(iv) Multiple agencies.--For purposes of 
                        this subparagraph, section 552a(o)(1) shall be 
                        applied by substituting `between the source 
                        agency and the recipient agency or non-Federal 
                        agency or an agreement governing multiple 
                        agencies' for `between the source agency and 
                        the recipient agency or non-Federal agency' in 
                        the matter preceding subparagraph (A).
                            ``(v) Cost-benefit analysis.--An agreement 
                        under clause (i) may be entered without regard 
                        to section 552a(o)(1)(B), relating to a cost-
                        benefit analysis of the proposed matching 
                        program.
                            ``(vi) Guidance by the office of management 
                        and budget.--Not later than 6 months after the 
                        date of enactment of the Workers' Compensation 
                        Reform Act of 2013, and in consultation with 
                        the Council of Inspectors General on Integrity 
                        and Efficiency, the Secretary of Health and 
                        Human Services, the Commissioner of Social 
                        Security, and the head of any other relevant 
                        agency, the Director of the Office of 
                        Management and Budget shall--
                                    ``(I) issue guidance for agencies 
                                regarding implementing this 
                                subparagraph, which shall include 
                                standards for reimbursement costs, when 
                                necessary, between agencies; and
                                    ``(II) establish standards and 
                                develop standard matching agreements 
                                for the purpose of improving the 
                                process for establishing data use or 
                                computer matching agreements.
            ``(2) Compliance.--The Secretary, the Postmaster General, 
        and each Inspector General shall ensure that any information 
        provided to an individual or entity under this section is 
        provided in accordance with protocols established under 
        paragraph (1).
            ``(3) Rule of construction.--Nothing in this section shall 
        be construed to affect the rights of an individual under 
        section 552a(p).
    ``(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.''.
    (c) Effective Date.--This section and the amendments made by this 
section shall take effect on the date of enactment of this Act.

SEC. 513. 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. 514. TERRORISM INJURIES; ZONES OF ARMED CONFLICT.

    (a) Covering Terrorism Injuries.--Section 8102(b) is amended in the 
matter preceding paragraph (1)--
            (1) by inserting ``or from an attack by a terrorist or 
        terrorist organization, either known or unknown,'' after 
        ``force or individual,''; and
            (2) by striking ``outside'' and all that follows through 
        ``1979)'' and inserting ``outside of the United States''.
    (b) Continuation of Pay in a Zone of Armed Conflict.--Section 8118, 
as amended by section 508(b) of this Act, is amended--
            (1) in subsection (b), by striking ``Continuation'' and 
        inserting ``Except as provided under subsection (d)(2), 
        continuation'';
            (2) in subsection (c), as redesignated by section 508(b)(4) 
        of this Act, by striking ``subsection (a)'' and inserting 
        ``subsection (a) or (d)''; and
            (3) inserting before subsection (e) the following:
    ``(d) Continuation of Pay in a Zone of Armed Conflict.--
            ``(1) In general.--Notwithstanding subsection (a), the 
        United States shall authorize the continuation of pay of an 
        employee described in subparagraph (A), (C), (D), or (F) of 
        section 8101(1), who--
                    ``(A) files a claim for a period of wage loss due 
                to an injury in performance of duty in a zone of armed 
                conflict (as determined by the Secretary of Labor under 
                paragraph (3)); and
                    ``(B) files the claim for such wage loss benefit 
                with the immediate superior of the employee not later 
                than 45 days after the later of--
                            ``(i) the termination of the assignment of 
                        the employee to the zone of armed conflict; or
                            ``(ii) the return of the employee to the 
                        United States.
            ``(2) Continuation of pay.--Notwithstanding subsection (b), 
        continuation of pay under this subsection shall be furnished 
        for a period not to exceed 135 days without any break in time 
        or waiting period, unless controverted under regulations 
        prescribed by the Secretary of Labor.
            ``(3) Determination of zones of armed conflict.--For 
        purposes of this subsection, the Secretary of Labor, in 
        consultation with the Secretary of State and the Secretary of 
        Defense, shall determine whether a foreign country or other 
        foreign geographic area outside of the United States (as 
        defined in section 202(a)(7) of the State Department Basic 
        Authorities Act of 1956 (22 U.S.C. 4302(a)(7)) is a zone of 
        armed conflict based on whether--
                    ``(A) the Armed Forces of the United States are 
                involved in hostilities in the country or area;
                    ``(B) the incidence of civil insurrection, civil 
                war, terrorism, or wartime conditions threatens 
                physical harm or imminent danger to the health or well-
                being of United States civilian employees in the 
                country or area;
                    ``(C) the country or area has been designated a 
                combat zone by the President under section 112(c) of 
                the Internal Revenue Code of 1986;
                    ``(D) a contingency operation involving combat 
                operations directly affects civilian employees in the 
                country or area; or
                    ``(E) there exist other relevant conditions and 
                factors.''.

SEC. 515. 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''; and
            (3) in section 8148(a), by striking ``section 8106'' and 
        inserting ``section 8106a''.

SEC. 516. 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 502 and 
503, 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.

SEC. 517. EFFECTIVE DATE.

    Except as otherwise provided in this title, this title and the 
amendments made by this title shall take effect 60 days after the date 
of enactment of this Act.

 TITLE VI--PROPERTY MANAGEMENT AND EXPEDITED DISPOSAL OF REAL PROPERTY

SEC. 601. SHORT TITLE.

    This title may be cited as the ``Federal Real Property Asset 
Management Reform Act of 2013''.

SEC. 602. PURPOSE.

    The purpose of this title is to increase the efficiency and 
effectiveness of the Federal Government in managing real property by--
            (1) requiring agencies to maintain an up-to-date inventory 
        of real property;
            (2) establishing a Federal Real Property Council to develop 
        guidance on and ensure the implementation of strategies for 
        better managing Federal real property; and
            (3) authorizing a pilot program to expedite the disposal of 
        surplus real property.

SEC. 603. PROPERTY MANAGEMENT AND EXPEDITED DISPOSAL OF REAL PROPERTY.

    Chapter 5 of subtitle I of title 40, United States Code, is amended 
by adding at the end the following:

 ``SUBCHAPTER VII--PROPERTY MANAGEMENT AND EXPEDITED DISPOSAL OF REAL 
                                PROPERTY

``Sec. 621. Definitions
    ``In this subchapter:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of General Services.
            ``(2) Council.--The term `Council' means the Federal Real 
        Property Council established by section 623(a).
            ``(3) Director.--The term `Director' means the Director of 
        the Office of Management and Budget.
            ``(4) Disposal.--The term `disposal' means any action that 
        constitutes the removal of any real property from the Federal 
        inventory, including sale, deed, demolition, or exchange.
            ``(5) Excess property.--The term `excess property' means 
        any real property under the control of a Federal agency that 
        the head of the Federal agency determines is not required to 
        meet the needs or responsibilities of the Federal agency.
            ``(6) Federal agency.--The term `Federal agency' means--
                    ``(A) an executive department or independent 
                establishment in the executive branch of the 
                Government; or
                    ``(B) a wholly owned Government corporation.
            ``(7) Field office.--The term `field office' means any 
        office of a Federal agency that is not the headquarters office 
        location for the Federal agency.
            ``(8) Postal property.--The term `postal property' means 
        any building owned by the United States Postal Service.
            ``(9) Surplus property.--
                    ``(A) In general.--The term `surplus property' 
                means excess real property that is not required to meet 
                the needs or responsibilities of any Federal agency.
                    ``(B) Exclusions.--The term `surplus property' does 
                not include--
                            ``(i) any military installation (as defined 
                        in section 2910 of the Defense Base Closure and 
                        Realignment Act of 1990 (10 U.S.C. 2687 note; 
                        Public Law 101-510));
                            ``(ii) any property that is excepted from 
                        the definition of the term `property' under 
                        section 102;
                            ``(iii) Indian and native Eskimo property 
                        held in trust by the Federal Government as 
                        described in section 3301(a)(5)(C)(iii);
                            ``(iv) real property operated and 
                        maintained by the Tennessee Valley Authority 
                        pursuant to the Tennessee Valley Authority Act 
                        of 1933 (16 U.S.C. 831 et seq.);
                            ``(v) any real property the Director 
                        excludes for reasons of national security;
                            ``(vi) any public lands (as defined in 
                        section 203 of the Public Lands Corps Act of 
                        1993 (16 U.S.C. 1722)) administered by--
                                    ``(I) the Secretary of the 
                                Interior, acting through--
                                            ``(aa) the Director of the 
                                        Bureau of Land Management;
                                            ``(bb) the Director of the 
                                        National Park Service;
                                            ``(cc) the Commissioner of 
                                        Reclamation; or
                                            ``(dd) the Director of the 
                                        United States Fish and Wildlife 
                                        Service; or
                                    ``(II) the Secretary of 
                                Agriculture, acting through the Chief 
                                of the Forest Service; or
                            ``(vii) any property operated and 
                        maintained by the United States Postal Service.
            ``(10) Underutilized property.--The term `underutilized 
        property' means a portion or the entirety of any real property, 
        including any improvements, that is used--
                    ``(A) irregularly or intermittently by the 
                accountable Federal agency for program purposes of the 
                Federal agency; or
                    ``(B) for program purposes that can be satisfied 
                only with a portion of the property.
``Sec. 622. Duties of Federal agencies
    ``Each Federal agency shall--
            ``(1) maintain adequate inventory controls and 
        accountability systems for real property under the control of 
        the Federal agency;
            ``(2) develop current and future workforce projections so 
        as to have the capacity to assess the needs of the Federal 
        workforce regarding the use of real property;
            ``(3) continuously survey real property under the control 
        of the Federal agency to identify excess property, 
        underutilized property, and other real property suitable to be 
        used for--
                    ``(A) colocation with other Federal agencies; or
                    ``(B) consolidation with other facilities;
            ``(4) promptly report excess property and underutilized 
        property to the Administrator;
            ``(5) establish goals that will lead the Federal agency to 
        reduce excess property and underutilized property in the 
        inventory of the Federal agency;
            ``(6) submit to the Council a report on all excess property 
        and underutilized property in the inventory of the Federal 
        agency, including--
                    ``(A) whether underutilized property can be better 
                utilized; and
                    ``(B) the extent to which the Federal agency 
                believes that the underutilized property serves the 
                needs of the Federal agency to retain underutilized 
                property;
            ``(7) adopt workplace practices, configurations, and 
        management techniques that can achieve increased levels of 
        productivity and decrease the need for real property assets;
            ``(8) assess leased space to identify space that is not 
        fully used or occupied;
            ``(9) on an annual basis and subject to the guidance of the 
        Council--
                    ``(A) conduct an inventory of real property under 
                control of the Federal agency; and
                    ``(B) make an assessment of each real property, 
                which shall include--
                            ``(i) the age and condition of the 
                        property;
                            ``(ii) the size of the property in square 
                        footage and acreage;
                            ``(iii) the geographical location of the 
                        property, including an address and description;
                            ``(iv) the extent to which the property is 
                        being utilized;
                            ``(v) the actual annual operating costs 
                        associated with the property;
                            ``(vi) the total cost of capital 
                        expenditures associated with the property;
                            ``(vii) sustainability metrics associated 
                        with the property;
                            ``(viii) the number of Federal employees 
                        and functions housed at the property;
                            ``(ix) the extent to which the mission of 
                        the Federal agency is dependent on the 
                        property;
                            ``(x) the estimated amount of capital 
                        expenditures projected to maintain and operate 
                        the property over each of the next 5 years 
                        after the date of enactment of this subchapter; 
                        and
                            ``(xi) any additional information required 
                        by the Administrator to carry out section 624; 
                        and
            ``(10) provide to the Council and the Administrator the 
        information described in paragraph (9)(B) to be used for the 
        establishment and maintenance of the database described in 
        section 624.
``Sec. 623. Colocation among United States Postal Service properties
    ``(a) Identification of Postal Property.--Each year, the Postmaster 
General may--
            ``(1) identify a list of postal properties with space 
        available for use by Federal agencies; and
            ``(2) submit the list to the Council.
    ``(b) Submission of List of Postal Properties to Federal 
Agencies.--
            ``(1) In general.--Not later than 30 days after the 
        completion of a list under subsection (a), the Council shall 
        provide the list to each Federal agency.
            ``(2) Review by federal agencies.--Not later than 90 days 
        after the receipt of the list submitted under paragraph (1), 
        each Federal agency shall--
                    ``(A) review the list;
                    ``(B) identify real property assets under the 
                control of the Federal agency; and
                    ``(C) recommend colocations if appropriate.
    ``(c) Terms of Colocation.--On approval of the recommendations 
under subsection (b) by the Postmaster General and the applicable 
agency head, the Federal agency or appropriate landholding entity may 
work with the Postmaster General to establish appropriate terms of a 
lease for each postal property.
``Sec. 624. Establishment of a Federal Real Property Council
    ``(a) Establishment.--There is established a Federal Real Property 
Council.
    ``(b) Purpose.--The purpose of the Council shall be--
            ``(1) to develop guidance and ensure implementation of an 
        efficient and effective real property management strategy;
            ``(2) to identify opportunities for the Federal Government 
        to better manage real property assets; and
            ``(3) to reduce the costs of managing real property, 
        including operations, maintenance, and security.
    ``(c) Composition.--
            ``(1) In general.--The Council shall be composed 
        exclusively of--
                    ``(A) the senior real property officers of each 
                Federal agency;
                    ``(B) the Deputy Director for Management of the 
                Office of Management and Budget;
                    ``(C) the Controller of the Office of Management 
                and Budget;
                    ``(D) the Administrator; and
                    ``(E) any other full-time or permanent part-time 
                Federal officials or employees, as the Chairperson 
                determines to be necessary.
            ``(2) Chairperson.--The Deputy Director for Management of 
        the Office of Management and Budget shall serve as Chairperson 
        of the Council.
            ``(3) Executive director.--
                    ``(A) In general.--The Chairperson shall designate 
                an Executive Director to assist in carrying out the 
                duties of the Council.
                    ``(B) Qualifications; full-time.--The Executive 
                Director shall--
                            ``(i) be appointed from among individuals 
                        who have substantial experience in the areas of 
                        commercial real estate and development, real 
                        property management, and Federal operations and 
                        management; and
                            ``(ii) serve full time.
    ``(d) Meetings.--
            ``(1) In general.--The Council shall meet subject to the 
        call of the Chairperson.
            ``(2) Minimum.--The Council shall meet not fewer than 4 
        times each year.
    ``(e) Duties.--The Council, in consultation with the Director and 
the Administrator, shall--
            ``(1) not later than 1 year after the date of enactment of 
        this subchapter, establish a real property management plan 
        template, to be updated annually, which shall include 
        performance measures, specific milestones, measurable savings, 
        strategies, and government-wide goals based on the goals 
        established under section 622(5) to reduce surplus property or 
        to achieve better utilization of underutilized property, and 
        evaluation criteria to determine the effectiveness of real 
        property management that are designed--
                    ``(A) to enable Congress and heads of Federal 
                agencies to track progress in the achievement of real 
                property management objectives on a government-wide 
                basis;
                    ``(B) to improve the management of real property; 
                and
                    ``(C) to allow for comparison of the performance of 
                Federal agencies against industry and other public 
                sector agencies in terms of performance;
            ``(2) develop standard use rates consistent throughout each 
        category of space and with nongovernmental space use rates;
            ``(3) develop a strategy to reduce the reliance of Federal 
        agencies on leased space for long-term needs if ownership would 
        be less costly;
            ``(4) provide guidance on eliminating inefficiencies in the 
        Federal leasing process;
            ``(5) compile a list of real property assets that are field 
        offices that are suitable for colocation with other real 
        property assets; and
            ``(6) not later than 1 year after the date of enactment of 
        this subchapter and annually during the 4-year period beginning 
        on the date that is 1 year after the date of enactment of this 
        subchapter and ending on the date that is 5 years after the 
        date of enactment of this subchapter, the Council shall submit 
        to the Director a report that contains--
                    ``(A) a list of the remaining excess property, 
                surplus property, and underutilized properties of each 
                Federal agency;
                    ``(B) the progress of the Council toward developing 
                guidance for Federal agencies to ensure that the 
                assessment required under section 622(9)(B) is carried 
                out in a uniform manner; and
                    ``(C) the progress of Federal agencies toward 
                achieving the goals established under section 622(5).
    ``(f) Consultation.--In carrying out the duties described in 
subsection (e), the Council shall also consult with representatives 
of--
            ``(1) State, local, tribal authorities, and affected 
        communities; and
            ``(2) appropriate private sector entities and 
        nongovernmental organizations that have expertise in areas of--
                    ``(A) commercial real estate and development;
                    ``(B) government management and operations;
                    ``(C) space planning;
                    ``(D) community development, including 
                transportation and planning; and
                    ``(E) historic preservation.
    ``(g) Council Resources.--The Director and the Administrator shall 
provide staffing, and administrative support for the Council, as 
appropriate.
``Sec. 625. Federal real property inventory and database
    ``(a) In General.--Not later than 1 year after the date of 
enactment of this subchapter, the Administrator shall establish and 
maintain a single, comprehensive, and descriptive database of all real 
property under the custody and control of all Federal agencies.
    ``(b) Contents.--The database shall include--
            ``(1) information provided to the Administrator under 
        section 622(9)(B); and
            ``(2) a list of real property disposals completed, 
        including--
                    ``(A) the date and disposal method used for each 
                real property;
                    ``(B) the proceeds obtained from the disposal of 
                each real property;
                    ``(C) the amount of time required to dispose of the 
                real property, including the date on which the real 
                property is designated as excess property;
                    ``(D) the date on which the property is designated 
                as surplus property and the date on which the property 
                is disposed; and
                    ``(E) all costs associated with the disposal.
    ``(c) Accessibility.--
            ``(1) Committees.--The database established under 
        subsection (a) shall be made available on request to the 
        Committee on Homeland Security and Governmental Affairs and the 
        Committee on Environment and Public Works of the Senate and the 
        Committee on Oversight and Government Reform and the Committee 
        on Transportation and Infrastructure of the House of 
        Representatives.
            ``(2) General public.--Not later than 3 years after the 
        date of enactment of this subchapter and to the extent 
        consistent with national security, the Administrator shall make 
        the database established under subsection (a) accessible to the 
        public at no cost through the website of the General Services 
        Administration.
``Sec. 626. Limitation on certain leasing authorities
    ``(a) In General.--Except as provided in subsection (b), not later 
than December 31 of each year following the date of enactment of this 
subchapter, a Federal agency with independent leasing authority shall 
submit to the Council a list of all leases, including operating leases, 
in effect on the date of enactment of this subchapter that includes--
            ``(1) the date on which each lease was executed;
            ``(2) the date on which ease lease will expire;
            ``(3) a description of the size of the space;
            ``(4) the location of the property;
            ``(5) the tenant agency;
            ``(6) the total annual rental rate; and
            ``(7) the amount of the net present value of the total 
        estimated legal obligations of the Federal Government over the 
        life of the contract.
    ``(b) Exception.--Subsection (a) shall not apply to--
            ``(1) the United States Postal Service;
            ``(2) the Department of Veterans Affairs; or
            ``(3) any other property the President excludes from 
        subsection (a) for reasons of national security.
``Sec. 627. Expedited disposal pilot program
    ``(a) Establishment.--The Director shall establish a pilot program 
to dispose of, by sale, transfer, or other means of disposal, any 
surplus property.
            ``(1) Properties for expedited disposal.--
                    ``(A) In general.--On an annual basis, the Director 
                may authorize the expedited disposal of not more than 
                200 surplus properties.
                    ``(B) Priority.--In determining which properties to 
                dispose of, the Director shall give priority to surplus 
                properties that have the highest fair market value and 
                the greatest potential for disposal.
                    ``(C) Costs associated with disposal.--
                            ``(i) In general.--The Administrator may 
                        obligate an amount to pay any direct and 
                        indirect costs under section 572 related to 
                        identifying and preparing properties to be 
                        reported as excess property by a Federal 
                        agency.
                            ``(ii) Reimbursement.--An amount obligated 
                        under clause (i) shall be paid from the 
                        proceeds of any sale of real property under 
                        this subsection.
                            ``(iii) Net proceeds.--Net proceeds shall 
                        be distributed under subsection (b).
                    ``(D) Maximum net proceeds.--Any real property 
                authorized to be disposed of by sale of under 
                subparagraph (A) shall disposed of in a manner that, as 
                determined by the Administrator in consultation with 
                the head of the applicable Federal agency, is 
                structured and marketed to maximize the value to the 
                Federal Government.
                    ``(E) Monetary proceeds requirement.--Surplus 
                property may be disposed of under this section only if 
                disposal of the property will generate monetary 
                proceeds to the Federal Government that--
                            ``(i) exceed the costs of disposal of the 
                        property; and
                            ``(ii) are not less than 90 percent of fair 
                        market value.
            ``(2) Applicability of certain law.--Any expedited disposal 
        of real property conducted under this section shall not be 
        subject to--
                    ``(A) any section of An Act Authorizing the 
                Transfer of Certain Real Property for Wildlife, or 
                Other Purposes (16 U.S.C. 667b);
                    ``(B) sections 107 and 317 of title 23;
                    ``(C) sections 545(b)(8), 550, 553, 554, and 
                1304(b);
                    ``(D) section 501 of the McKinney-Vento Homeless 
                Assistance Act (42 U.S.C. 11411);
                    ``(E) section 47151 of title 49; or
                    ``(F) section 13(d) of the Surplus Property Act of 
                1944 (50 U.S.C. App. 1622(d)).
            ``(3) Effect.--Except as provided in paragraph (2), nothing 
        in this subchapter terminates or in any way limits the 
        authority of any Federal agency under any other provision of 
        law to dispose of real property.
    ``(b) Use of Proceeds.--
            ``(1) In general.--Of the proceeds received from the 
        disposal of any real property under this subchapter--
                    ``(A) not less than 80 percent shall be returned to 
                the general fund of the Treasury for debt reduction;
                    ``(B) the lesser of 18 percent or the share of 
                proceeds otherwise authorized to be retained under law 
                shall be retained by the Federal agency that has 
                custody and is accountable for the real property, 
                subject to paragraph (2);
                    ``(C) not greater than 2 percent shall be made 
                available to carry out section 627, subject to annual 
                appropriations; and
                    ``(D) any remaining share of the proceeds shall be 
                returned to the general fund of the Treasury for 
                Federal budget deficit reduction.
            ``(2) Limitation on use of proceeds.--Any proceeds retained 
        by Federal agencies under this section shall be--
                    ``(A) deposited into the appropriate real property 
                account of the Federal agency that had custody and 
                accountability for the real property, with the funds 
                expended only as authorized in annual appropriations 
                Acts;
                    ``(B) used--
                            ``(i) by not later than 2 years after the 
                        date of disposal of the real property; and
                            ``(ii) only for activities relating to 
                        Federal real property asset management and 
                        disposal; and
                    ``(C) if not used by the date described in 
                subparagraph (B)(i), shall be deposited in the Treasury 
                and used for Federal budget deficit reduction.
    ``(c) Public Benefit.--
            ``(1) Conveyance.--Except as provided in paragraph (2), if 
        a real property authorized to be disposed of under subsection 
        (a) has not been disposed of by the date that is 2 years after 
        the date the property is listed for sale, the Director, in 
        consultation with the Administrator and the Secretary of 
        Housing and Urban Development, may consider a request from the 
        disposing Federal agency that the real property be conveyed to 
        State and local governments or nonprofit organizations for 
        various public purposes or uses as permitted by applicable law.
            ``(2) Predominant use and size standards.--
                    ``(A) In general.--Any real property authorized to 
                be disposed of under subsection (a) shall not be 
                conveyed under paragraph (1) if--
                            ``(i) the predominant use of the property 
                        is not for housing; and
                            ``(ii)(I) the area of the property is not 
                        less than 25,000 square feet; or
                            ``(II) the appraised fair market value of 
                        the property is greater than $1,000,000.
                    ``(B) Appraised fair market value.--The appraised 
                fair market value described in subparagraph (A)(ii)(II) 
                shall be determined by the Federal agency with custody 
                or control of the property, in consultation with the 
                Administrator and standard appraisal practice.
    ``(d) Enforcement.--
            ``(1) Increase in size of inventory.--Except as provided in 
        paragraph (2), if a Federal agency fails to make available for 
        public sale the real property authorized to be disposed of 
        under subsection (a) by the date that is 18 months after the 
        date on which the authorization is made under subsection (a), 
        that Federal agency, except for specific exceptions promulgated 
        by the Director, shall not increase the size of the civilian 
        real property inventory, unless the square footage of the 
        increase is offset, within an appropriate time as determined by 
        the Director, through consolidation, colocation, or disposal of 
        another building space from the inventory of that Federal 
        agency.
            ``(2) Exception.--Paragraph (1) shall not apply to a 
        Federal agency that acquires any real property not under the 
        administrative jurisdiction of the Federal Government, by sale 
        or lease, until the Director submits a certification to 
        Congress of the disposal of all of those surplus properties.
    ``(e) Termination of Authority.--The authority provided by this 
section terminates on the date that is 5 years after the date of 
enactment of this subchapter.
``Sec. 628. Homeless assistance grants
    ``(a) Definitions.--In this section:
            ``(1) Eligible nonprofit organization.--The term `eligible 
        nonprofit organization' means a nonprofit organization that is 
        a representative of the homeless.
            ``(2) Homeless.--The term `homeless' has the meaning given 
        the term in section 103 of the McKinney-Vento Homeless 
        Assistance Act (42 U.S.C. 11302), except that subsection (c) of 
        that section shall not apply.
            ``(3) Permanent housing.--The term `permanent housing' has 
        the meaning given the term in section 401 of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11360).
            ``(4) Private nonprofit organization.--The term `private 
        nonprofit organization' has the meaning given the term in 
        section 401 of the McKinney-Vento Homeless Assistance Act (42 
        U.S.C. 11360).
            ``(5) Representative of the homeless.--The term 
        `representative of the homeless' has the meaning given the term 
        in section 501(i) of the McKinney-Vento Homeless Assistance Act 
        (42 U.S.C. 11411(i)).
            ``(6) Secretary.--The term `Secretary' means the Secretary 
        of Housing and Urban Development.
            ``(7) Transitional housing.--The term `transitional 
        housing' has the meaning given the term in section 401 of the 
        McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360).
    ``(b) Grant Authority.--
            ``(1) In general.--To the extent amounts are made available 
        under section 626(b)(1)(B) for use under this section, the 
        Secretary shall make grants to eligible private nonprofit 
        organizations through the continuum of care program established 
        under subtitle C of title IV of the McKinney-Vento Homeless 
        Assistance Act (42 U.S.C. 11381 et seq.), to purchase real 
        property suitable for use to assist the homeless in accordance 
        with subsection (c).
            ``(2) Terms and conditions.--Except as otherwise provided 
        in this section, a grant under this section shall be subject to 
        the same terms and conditions as a grant under the continuum of 
        care program established under subtitle C of title IV of the 
        McKinney-Vento Homeless Assistance Act (42 U.S.C. 11381 et 
        seq.).
    ``(c) Use of Properties for Housing or Shelter for the Homeless.--
            ``(1) Eligible uses.--An eligible private nonprofit 
        organization that receives a grant under subsection (b) shall 
        use the amounts received only to purchase or rehabilitate real 
        property for use to provide permanent housing, transitional 
        housing, or temporary shelter to the homeless.
            ``(2) Term of use.--The Secretary may not make a grant 
        under subsection (b) to an eligible private nonprofit 
        organization unless the eligible private nonprofit organization 
        provides to the Secretary such assurances as the Secretary 
        determines necessary to ensure that any real property purchased 
        or rehabilitated using amounts received under the grant is used 
        only for the uses described in paragraph (1) for a period of 
        not less than 15 years.
    ``(d) Preference.--In awarding grants under subsection (b), the 
Secretary shall give preference to eligible private nonprofit 
organizations that operate within areas in which Federal real property 
is being sold under the disposal program authorized under section 626.
    ``(e) Regulations.--The Secretary may promulgate such regulations 
as are necessary to carry out this section.''.

SEC. 604. REPORT OF THE COMPTROLLER GENERAL.

    (a) Draft.--Not later than 3 years after the date of enactment of 
this Act, the Comptroller General of the United States shall submit to 
Congress a draft report on the expedited disposal pilot program 
established by the amendments made by section 3.
    (b) Final.--Not later than 5 years after the date of enactment of 
this Act, the Comptroller General of the United States shall submit to 
Congress a final report on the expedited disposal pilot program 
established by the amendments made by section 3.

SEC. 605. TECHNICAL AND CONFORMING AMENDMENT.

    The table of sections for chapter 5 of subtitle I of title 40, 
United States Code, is amended by inserting after the item relating to 
section 611 the following:

  ``subchapter vii--property management and expedited disposal of real 
                                property

``621. Definitions.
``622. Duties of Federal agencies.
``623. Colocation among United States Postal Service properties.
``624. Establishment of a Federal Real Property Council.
``625. Federal real property inventory and database.
``626. Limitation on certain leasing authorities.
``627. Expedited disposal pilot program.
``628. Homeless assistance grants.''.
                                 <all>