[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2051 Introduced in Senate (IS)]

<DOC>






114th CONGRESS
  1st Session
                                S. 2051

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 17, 2015

  Mr. Carper 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 ``Improving Postal Operations, 
Service, and Transparency Act of 2015''.

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.
Sec. 4. Universal service obligation and guiding principles.
                   TITLE I--POSTAL SERVICE WORKFORCE

Sec. 101. Postal specific assumptions.
Sec. 102. Postal Service Health Benefits Program.
Sec. 103. Restructuring of payments for retiree health benefits.
Sec. 104. Annual Federal Employees Retirement System and Civil Service 
                            Retirement System assessments.
Sec. 105. Right of appeal to Merit Systems Protection Board.
Sec. 106. Labor disputes.
Sec. 107. Supervisory and other managerial organizations.
Sec. 108. Addressing the morale of Postal Service employees.
                      TITLE II--POSTAL OPERATIONS

Sec. 201. Long-term solvency plan; annual financial plan and budget.
Sec. 202. Plant closings and consolidations.
Sec. 203. Post office closings, consolidations, and restructuring.
Sec. 204. Area and district office structure.
Sec. 205. Service standards and performance ratings.
Sec. 206. Conversion of door delivery points.
Sec. 207. Fleet maintenance reporting and alternative fuel and emerging 
                            technologies demonstration program.
Sec. 208. Multi-broker lease of Postal Service facilities.
Sec. 209. Capitol Complex post offices.
            TITLE III--POSTAL SERVICE REVENUE AND INNOVATION

Sec. 301. Rates.
Sec. 302. Postal costing system.
Sec. 303. Nonpostal services.
Sec. 304. Shipping of wine, beer, and distilled spirits.
Sec. 305. Chief Innovation Officer; innovation strategy.
Sec. 306. Strategic Advisory Commission on Postal Service Solvency, 
                            Service, and Innovation.
TITLE IV--POSTAL SERVICE CUSTOMER SERVICE, TRANSPARENCY, AND REGULATION

Sec. 401. Customer service study and report.
Sec. 402. Postal Service results and terms.
Sec. 403. Annual report on United States mailing industry.
Sec. 404. Postal Regulatory Commission.
Sec. 405. Inspector General of the United States Postal Service and the 
                            Postal Regulatory Commission.
Sec. 406. GAO report on fragmentation, overlap, and duplication in 
                            Federal programs and activities.
Sec. 407. Postal services for market-dominant products.
Sec. 408. Postal Inspection Service Mail Covers program.
Sec. 409. Contract disputes.
Sec. 410. Contracting provisions.
              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.

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.

SEC. 4. UNIVERSAL SERVICE OBLIGATION AND GUIDING PRINCIPLES.

    Not later than 1 year after the date of enactment of this Act, the 
Commission shall submit to Congress a report on the universal service 
obligation of the Postal Service that--
            (1) takes into account--
                    (A) the report of the Commission entitled 
                ``Universal Postal Service and the Postal Monopoly'', 
                submitted to the President and Congress on December 19, 
                2008, in accordance with section 702 of the Postal 
                Accountability and Enhancement Act (39 U.S.C. 501 
                note); and
                    (B) the changing nature of communications, 
                including the dramatic changes in e-commerce and the 
                global marketplace; and
            (2) includes recommendations on better defining the 
        universal service obligation of the Postal Service to help keep 
        the Postal Service relevant in the digital age.

                   TITLE I--POSTAL SERVICE WORKFORCE

SEC. 101. POSTAL SPECIFIC ASSUMPTIONS.

    (a) Definition.--In this section, the term ``agency'' has the 
meaning given the term ``Executive agency'' under section 105 of title 
5, United States Code.
    (b) Use of Postal Specific Assumptions.--The head of each agency 
shall ensure that the agency uses criteria specific to employees of the 
Postal Service (including demographic factors and appropriate economic 
assumptions regarding wage and salary trends specific to the employees) 
in calculating any liability of the Postal Service, including retiree 
health benefits, retirement annuity, and workers' compensation 
liabilities.
    (c) Transparency.--In any report submitted to Congress, the Postal 
Service, or an agency relating to the valuation of assets and 
liabilities of funds or accounts maintained for purposes of providing 
health care or retirement annuities to employees the Postal Service, 
the Office of Personnel Management, the Department of Labor, and any 
other relevant agency shall--
            (1) identify the persons responsible for preparing the 
        report;
            (2) certify that such persons meet the professional 
        qualifications established by the governing body of the 
        relevant profession or industry; and
            (3) adhere to the professional standards of practice 
        established by the governing body of the actuarial industry.

SEC. 102. POSTAL SERVICE HEALTH BENEFITS PROGRAM.

    (a) Establishment.--
            (1) In general.--Chapter 89 of title 5, United States Code, 
        is amended by inserting after section 8903b the following:
``Sec. 8903c. Postal Service Health Benefits Program
    ``(a) Definitions.--In this section--
            ``(1) the term `initial contract year' means the contract 
        year beginning in January of the first full year that begins 
        not less than 7 months after the date of enactment of this 
        section;
            ``(2) the term `initial participating carrier' means a 
        carrier that enters into a contract with the Office to 
        participate in the Postal Service Health Benefits Program 
        during the initial contract year;
            ``(3) the term `Medicare eligible individual' means an 
        individual who--
                    ``(A) is entitled to Medicare part A, but excluding 
                an individual who is eligible to enroll under such part 
                under section 1818 of the Social Security Act (42 
                U.S.C. 1395i-2); and
                    ``(B) is eligible to enroll in Medicare part B;
            ``(4) 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.);
            ``(5) 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.);
            ``(6) the term `Medicare part D' means the Medicare 
        insurance program established under part D of title XVIII of 
        the Social Security Act (42 U.S.C. 1395w-101 et seq.);
            ``(7) the term `Office' means the Office of Personnel 
        Management;
            ``(8) the term `Postal Service' means the United States 
        Postal Service;
            ``(9) the term `Postal Service annuitant' means an 
        annuitant enrolled in a health benefits plan 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);
            ``(10) the term `Postal Service employee' means an employee 
        of the Postal Service enrolled in a health benefits plan under 
        this chapter;
            ``(11) the term `Postal Service Health Benefits Program' 
        means the program of health benefits plans established under 
        subsection (c) within the Federal Employees Health Benefits 
        Program under this chapter;
            ``(12) the term `Postal Service Medicare eligible 
        annuitant' means an individual who--
                    ``(A) is a Postal Service annuitant; and
                    ``(B) is a Medicare eligible individual;
            ``(13) the term `PSHBP plan' means a health benefits plan 
        offered under the Postal Service Health Benefits Program; and
            ``(14) the term `qualified carrier' means a carrier for 
        which the total enrollment in the plans provided under this 
        chapter includes, in the contract year beginning in January of 
        the year before the initial contract year, a combined total of 
        5,000 or more enrollees who are--
                    ``(A) Postal Service employees; or
                    ``(B) Postal Service annuitants.
    ``(b) Application of Section.--The requirements under this section 
shall--
            ``(1) apply to the initial contract year, and each contract 
        year thereafter; and
            ``(2) supersede other provisions of this chapter to the 
        extent of any specific inconsistency, as determined by the 
        Office.
    ``(c) Establishment of the Postal Service Health Benefits 
Program.--
            ``(1) In general.--The Office shall establish the Postal 
        Service Health Benefits Program, which shall--
                    ``(A) consist of health benefit plans offered under 
                this chapter;
                    ``(B) include plans offered by--
                            ``(i) each qualified carrier; and
                            ``(ii) any other carrier determined 
                        appropriate by the Office;
                    ``(C) be available for participation by all Postal 
                Service employees, in accordance with subsection (d);
                    ``(D) be available for participation by all Postal 
                Service annuitants, in accordance with subsection (d);
                    ``(E) not be available for participation by an 
                individual who is not a Postal Service employee or 
                Postal Service annuitant (except as a family member of 
                such an employee or annuitant); and
                    ``(F) be implemented and administered by the 
                Office.
            ``(2) Separate postal service risk pool.--The Office shall 
        ensure that each PSHBP plan includes rates, one for enrollment 
        as an individual, one for enrollment for self plus one, and one 
        for enrollment for self and family within each option in the 
        PSHBP plan, that reasonably and equitably reflect the cost of 
        benefits provided to a risk pool consisting solely of Postal 
        Service employees and Postal Service annuitants (and family 
        members of such employees and annuitants), taking into specific 
        account the reduction in benefits cost for the PSHBP plan due 
        to the Medicare enrollment requirements under subsection (e) 
        and any savings or subsidies resulting from subsection (f).
            ``(3) Actuarially equivalent coverage.--The Office shall 
        ensure that each carrier participating in the Postal Service 
        Health Benefits Program provides coverage under the PSHBP plans 
        offered by the carrier that is actuarially equivalent, as 
        determined by the Director of the Office, to the coverage that 
        the carrier provides under the health benefits plans offered by 
        the carrier under the Federal Employee Health Benefits Program 
        that are not PSHBP plans.
            ``(4) Applicability of federal employee health benefits 
        program requirements.--Except as otherwise set forth in this 
        section, all provisions of this chapter applicable to health 
        benefit plans offered by a carrier under section 8903 or 8903a 
        shall apply to PSHBP plans.
    ``(d) Election of Coverage.--
            ``(1) In general.--Except as provided in paragraphs (2) and 
        (3), each Postal Service employee and Postal Service annuitant 
        who elects to receive health benefits coverage under this 
        chapter--
                    ``(A) shall be subject to the requirements under 
                this section; and
                    ``(B) may only enroll in a PSHBP plan.
            ``(2) Annuitants.--A Postal Service annuitant shall not be 
        subject to this section if the Postal Service annuitant--
                    ``(A) is enrolled in a health benefits plan under 
                this chapter for the contract year before the initial 
                contract year that is not a health benefits plan 
                offered by an initial participating carrier, unless the 
                Postal Service annuitant voluntarily enrolls in a PSHBP 
                plan; or
                    ``(B) resides in a geographic area for which there 
                is not a PSHBP plan in which the Postal Service 
                annuitant may enroll.
            ``(3) Employees.--A Postal Service employee who is enrolled 
        in a health benefits plan under this chapter for the contract 
        year before the initial contract year that is not a health 
        benefits plan offered by an initial participating carrier shall 
        not be subject to the requirements under this section, except 
        that--
                    ``(A) if the Postal Service employee changes 
                enrollment to a different health benefits plan under 
                this chapter after the start of the initial contract 
                year, the Postal Service employee may only enroll in a 
                PSHBP plan; and
                    ``(B) upon becoming a Postal Service annuitant, if 
                the Postal Service employee elects to continue coverage 
                under this chapter, the Postal Service employee shall 
                enroll in a PSHBP plan during the first open season 
                available after the Postal Service employee becomes a 
                Postal Service annuitant.
    ``(e) Requirement of Medicare Enrollment.--
            ``(1) Postal service medicare eligible annuitants.--A 
        Postal Service Medicare eligible annuitant subject to this 
        section may not continue coverage under the Postal Service 
        Health Benefits Program unless the Postal Service Medicare 
        eligible annuitant enrolls in Medicare part A, Medicare part B, 
        and Medicare part D (as part of a prescription drug plan 
        described in subsection (f)).
            ``(2) Medicare eligible family members.--If a family member 
        of a Postal Service annuitant who is subject to this section is 
        a Medicare eligible individual, the family member may not be 
        covered under the Postal Service Health Benefits Program as a 
        family member of the Postal Service annuitant unless the family 
        member enrolls in Medicare part A, Medicare part B, and 
        Medicare part D (as part of a prescription drug plan described 
        in subsection (f)).
    ``(f) Medicare Part D Prescription Drug Benefits.--The Office shall 
require each PSHBP plan to provide prescription drug benefits for 
Postal Service annuitants and family members who are eligible for 
Medicare part D through a prescription drug plan offered under a waiver 
under section 1860D-22 of the Social Security Act (42 U.S.C. 1395w-
132).
    ``(g) Postal Service Contribution.--
            ``(1) In general.--Subject to subsection (i), for purposes 
        of applying section 8906(b) to the Postal Service, the weighted 
        average shall be calculated in accordance with paragraph (2).
            ``(2) Weighted average calculation.--Not later than October 
        1 of each year, the Office shall determine the weighted average 
        of the rates established pursuant to subsection (c)(2) for 
        PSHBP plans that will be in effect during the following 
        contract year with respect to--
                    ``(A) enrollments for self only;
                    ``(B) enrollments for self plus one; and
                    ``(C) enrollments for self and family.
    ``(h) Reserves.--
            ``(1) Separate reserves.--
                    ``(A) In general.--The Office shall ensure that 
                each PSHBP plan maintains separate reserves (including 
                a separate contingency reserve) with respect to the 
                enrollees in the PSHBP plan in accordance with section 
                8909.
                    ``(B) References.--For purposes of the Postal 
                Service Health Benefits Program, each reference to `the 
                Government' in section 8909 shall be deemed to be a 
                reference to the Postal Service.
                    ``(C) Amounts to be credited.--The reserves 
                (including the separate contingency reserve) maintained 
                by each PSHBP plan shall be credited with a 
                proportionate amount of the funds in the existing 
                reserves for health benefits plans offered by an 
                initial participating carrier.
            ``(2) Discontinuation of pshbp plan.--In applying section 
        8909(e) relating to a PSHBP plan that is discontinued, the 
        Office shall credit the separate Postal Service contingency 
        reserve maintained under paragraph (1) for that plan only to 
        the separate Postal Service contingency reserves of the PSHBP 
        plans continuing under this chapter.
    ``(i) No Effect on Existing Law.--Nothing in this section shall be 
construed as affecting section 1005(f) of title 39 regarding 
variations, additions, or substitutions to the provisions of this 
chapter.''.
            (2) Technical and conforming amendments.--
                    (A) Section 8903(1) of title 5, United States Code, 
                is amended by striking ``two levels of benefits'' and 
                inserting ``2 levels of benefits for enrollees under 
                this chapter generally and 2 levels of benefits for 
                enrollees under the Postal Service Health Benefits 
                Program established under section 8903c''.
                    (B) 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. Postal Service Health Benefits Program.''.
    (b) Special Enrollment Period for Postal Service Medicare Eligible 
Annuitants and Medicare Eligible Family Members of Postal Service 
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)(A) In the case of any individual who is subject to the 
enrollment requirement of section 8903c(e) of title 5, United States 
Code, 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 subparagraph (B).
    ``(B) The special enrollment period described in this subparagraph 
is the 6-month period, beginning on August 1 of the year before the 
initial contract year and ending on January 31 of the initial contract 
year.
    ``(2)(A) In the case of any individual who--
            ``(i) was initially not subject to the enrollment 
        requirement of section 8903c(e) of title 5, United States Code;
            ``(ii) is eligible to enroll in a plan under chapter 89 of 
        title 5, United States Code, because of an involuntary loss of 
        health care coverage;
            ``(iii) upon the involuntary loss of health care coverage, 
        becomes subject to the enrollment requirement of section 
        8903c(e) of title 5, United States Code, because of enrollment 
        in a PSHBP plan; and
            ``(iv) 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 subparagraph 
(B).
    ``(B) The special enrollment period described in this subparagraph 
is the period of time equivalent to the period of time in which the 
individual has the ability to enroll in a PSHBP plan due to the 
involuntary loss of health care coverage, pursuant to chapter 89 of 
title 5, United States Code, and its implementing regulations.
    ``(C) For purposes of this subsection, the term `PSHBP plan' has 
the meaning under section 8903c(a) of title 5, United States Code.
    ``(3) In the case of an individual who enrolls during the special 
enrollment period provided under paragraphs (1) and (2), 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. 103. RESTRUCTURING OF PAYMENTS FOR RETIREE HEALTH BENEFITS.

    (a) Contributions.--Section 8906(g)(2) of title 5, United States 
Code, is amended--
            (1) by inserting ``(i)'' after ``(2)(A)'';
            (2) in subparagraph (A)--
                    (A) in clause (i), as so designated, by striking 
                ``shall through September 30, 2016, be paid'' and all 
                that follows and inserting ``shall be paid as provided 
                in clause (ii).''; and
                    (B) by adding at the end the following:
    ``(ii) With respect to the Government contributions required to be 
paid under clause (i)--
            ``(I) the portion of the contributions that is equal to the 
        amount of the net claims costs under the enrollment of the 
        individuals described in clause (i) shall be paid from the 
        Postal Service Retiree Health Benefits Fund up to the amount 
        contained in the Fund; and
            ``(II) any remaining amount shall be paid by the United 
        States Postal Service.''; and
            (3) by adding at the end the following:
    ``(C) For purposes of this paragraph, the amount of the net claims 
costs under the enrollment of an individual described in subparagraph 
(A)(i) shall be the amount, as determined by the Office over any 
particular period of time, that is the difference between--
            ``(i) the sum of--
                    ``(I) the costs incurred by a carrier in providing 
                health services to, paying for health services provided 
                to, or reimbursing expenses for health services 
                provided to, the individual and any other person 
                covered under the enrollment of the individual; and
                    ``(II) an amount of indirect expenses reasonably 
                allocable to the provision, payment, or reimbursement 
                described in subclause (I), as determined by the 
                Office; and
            ``(ii) the amount withheld from the annuity of the 
        individual or otherwise paid by the individual under this 
        section.''.
    (b) Postal Service Retiree Health Benefits Fund.--Section 8909a of 
title 5, United States Code, is amended--
            (1) in subsection (d)--
                    (A) in paragraph (1), by striking ``required under 
                section 8906(g)(2)(A)'' and inserting ``required to be 
                paid from the Postal Service Retiree Health Benefits 
                Fund under section 8906(g)(2)(A)(ii)(I)'';
                    (B) by striking paragraph (2) and inserting the 
                following:
    ``(2)(A) Not later than June 30, 2017, 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, 2056, 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 preceding fiscal year; and
            ``(ii) the value of the assets of the Postal Service 
        Retiree Health Benefits Fund as of September 30 of the 
        preceding fiscal year.'';
                    (C) 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)(ii)--
                                    (I) by inserting ``subject to 
                                paragraph (7),'' before ``any annual 
                                installment''; and
                                    (II) by striking ``paragraph 
                                (2)(B)'' and inserting ``paragraph 
                                (2)'';
                    (D) 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
                    (E) by adding at the end the following:
    ``(7)(A)(i) There is established in the Treasury a fund to be known 
as the `Postal Service Investment Account' (in this paragraph referred 
to as the `Account').
    ``(ii) The Secretary of the Treasury shall invest amounts in the 
Account in a manner similar to how amounts in the Thrift Savings Fund 
are invested and in accordance with guidance from the Thrift Savings 
Board.
    ``(B) If the amount described under paragraph (2)(B) for a fiscal 
year is a liability, the United States Postal Service may, in lieu of 
paying an annual installment under paragraph (3)(B)(ii), deposit in the 
Account an amount equal to the amount of the annual installment.
    ``(C)(i)(I) Before September 30 of the tenth fiscal year after the 
fiscal year during which the United States Postal Service makes a 
deposit under subparagraph (B) in lieu of paying an annual installment 
under paragraph (3)(B)(ii), upon request by the United States Postal 
Service or if determined appropriate by the Secretary of the Treasury, 
the Secretary of the Treasury shall transfer from the amounts in the 
Account attributable to the earnings on the deposit to the Postal 
Service Retiree Health Benefits Fund an amount equal to the amount of 
such annual installment.
    ``(II) If a transfer has not been made under subclause (I) relating 
to a deposit under subparagraph (B) in lieu of paying an annual 
installment under paragraph (3)(B)(ii) before September 30 of the tenth 
fiscal year after the fiscal year during which the United States Postal 
Service makes the deposit, effective on such September 30, the 
Secretary of the Treasury shall transfer from the amounts in the 
Account attributable to the earnings on the deposit to the Postal 
Service Retiree Health Benefits Fund an amount equal to the amount of 
such annual installment.
    ``(ii) If, on the date a transfer is required under clause (i)(II), 
the amount in the Account attributable to the earnings on the 
applicable deposit is less than the amount required to be transferred 
under clause (i)(II)--
            ``(I) the Secretary of the Treasury shall transfer to the 
        Postal Service Retiree Health Benefits Fund the amounts in the 
        Account attributable to the earnings on the applicable deposit; 
        and
            ``(II) the United States Postal Service--
                    ``(aa) may request that the Secretary of the 
                Treasury transfer to the Postal Service Retiree Health 
                Benefits Fund from the amounts in the Account 
                attributable to the applicable deposit an amount equal 
                to the difference between the amount transferred under 
                subclause (I) and the amount of the applicable annual 
                installment; and
                    ``(bb) if the United States Postal Service does not 
                request a transfer under item (aa), shall pay into the 
                Postal Service Retiree Health Benefits Fund an amount 
                equal to the difference between the amount transferred 
                under subclause (I) and the amount of the applicable 
                annual installment.
    ``(iii) After a transfer under clause (i) and a transfer or payment 
under clause (ii), if applicable, any remaining amounts in the Account 
that are attributable to the applicable deposit and earnings on the 
deposit--
            ``(I) shall be used by the United States Postal Service to 
        repay any obligation issued under section 2005(a) of title 39;
            ``(II) to the extent amounts remain after repayments under 
        subclause (I), shall be transferred by the United States Postal 
        Service to the Civil Service Retirement and Disability Fund for 
        the purpose of reducing any supplemental liability under 
        section 8348(h); and
            ``(III) to the extent amounts remain after repayments under 
        subclause (I) and transfers under subclause (II), may be used 
        by the United States Postal Service for the operation of the 
        United States Postal Service.
    ``(8) In this subsection, the term `Postal Service actuarial 
liability' means the difference between--
            ``(A) the net present value of future payments required to 
        be paid from the Postal Service Retiree Health Benefits Fund 
        under section 8906(g)(2)(A)(ii)(I) 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.
    ``(9) For purposes of computing an amount under paragraph (1) or 
(8)(A), section 8906(g)(2)(A)(ii)(I) shall be applied as though `up to 
the amount contained in the Fund' were struck.''; and
            (2) by adding at the end the following:
    ``(e) Subsections (a) through (d) of this section shall be subject 
to section 102 of the Improving Postal Operations, Service, and 
Transparency Act of 2015.''.
    (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. ANNUAL FEDERAL EMPLOYEES 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), by inserting ``other than the 
                United States Postal Service'' after ``Each employing 
                agency''; and
                    (B) by adding at the end the following:
            ``(5)(A) The United States Postal Service shall contribute 
        to the Fund an amount equal to the product of--
                    ``(i) the normal-cost percentage, as determined for 
                employees of the United States Postal Service under 
                subparagraph (B), 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.
            ``(B)(i) 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) appropriate economic assumptions, consistent 
                with recommendations from an independent entity, 
                regarding wage and salary trends specific to the 
                employees.
            ``(ii) 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 clause (i).
            ``(iii) Notwithstanding paragraph (2), in determining the 
        normal-cost percentage to be applied for employees of the 
        United States Postal Service, the Office shall take into 
        account amounts provided under section 8422.
            ``(iv) The Office shall review the determination of the 
        normal-cost percentage for employees of the United States 
        Postal Service and make such adjustments as the Office 
        determines 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 180 days after 
        the date on which the Office receives the appropriate data or 
        projections from the Postal Service under clause (ii) of 
        section 8423(a)(5)(B) of title 5, United States Code, as added 
        by paragraph (1), the Office shall determine the normal-cost 
        percentage for employees of the Postal Service in accordance 
        with the requirements under such section 8423(a)(5)(B).
            (3) Applicability.--On and after the date on which the 
        Office determines the normal-cost percentage under paragraph 
        (2), the contributions of the Postal Service to the Civil 
        Service Retirement and Disability Fund relating to employees 
        covered under chapter 84 of title 5, United States Code, shall 
        be determined in accordance with paragraph (5) of section 
        8423(a) 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) in paragraph (2)--
                            (i) by striking ``or (1)(B)''; and
                            (ii) by inserting ``and the amount of any 
                        supplemental liability computed under paragraph 
                        (1)(B) shall be amortized in 40 equal annual 
                        installments'' after ``annual installments'';
                    (B) by redesignating paragraph (5) as paragraph 
                (6); and
                    (C) 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) After the date on which the Office determines 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, not later than the date on which 
        the Postmaster General makes a request under subparagraph (C) 
        of this paragraph, and if the amount determined under paragraph 
        (7)(C) is less than zero, the Postmaster General may request 
        that some or all of the amount of the postal funding surplus, 
        not to exceed $6,000,000,000, be returned to the United States 
        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 
        subparagraph (E)(i).
            ``(C)(i) Subject to clause (ii), after the date on which 
        the Office computes the amount of supplemental liability under 
        paragraph (1)(B) as of the close of the fiscal year ending on 
        September 30, 2014, and if such amount is less than zero, the 
        Postmaster General may request that some of the amount of the 
        postal funding surplus, not to exceed \2/3\ of the amount, be 
        returned to the United States 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 subparagraph (E)(ii).
            ``(ii) If any amount requested by the Postmaster General 
        under subparagraph (B) is not transferred from the Fund as of 
        the close of the fiscal year ending on September 30, 2014, for 
        purposes of this subparagraph, the Office shall recompute the 
        amount of supplemental liability computed under paragraph 
        (1)(B) as of the close of that fiscal year by subtracting from 
        the balance of the Fund the amount requested under subparagraph 
        (B) of this paragraph.
            ``(D) If the amount of supplemental liability computed 
        under paragraph (1)(B) as of the close of any fiscal year 
        commencing after September 30, 2014, is less than zero, the 
        Office shall establish an amortization schedule, including a 
        series of equal annual installments that--
                    ``(i) provide for the liquidation of the postal 
                funding surplus in 40 years, commencing on September 30 
                of the subsequent fiscal year; and
                    ``(ii) shall be transferred to the United States 
                Postal Service from the Fund for use in accordance with 
                subparagraph (E)(ii).
            ``(E)(i) The United States Postal Service may use an amount 
        transferred under subparagraph (B) only for the purpose of 
        repaying any obligation issued under section 2005(a) of title 
        39.
            ``(ii) The United States Postal Service may use an amount 
        transferred under subparagraph (C) or (D) only--
                    ``(I) by directing that some or all of the amount 
                be transferred to the Postal Service Retiree Health 
                Benefits Fund for the purpose of reducing any Postal 
                Service actuarial liability referred to under section 
                8909a;
                    ``(II) by directing that some or all of the amount 
                be transferred to the Civil Service Retirement and 
                Disability Fund for the purpose of reducing any 
                supplemental liability under section 8348(h);
                    ``(III) by directing that some or all of the amount 
                be transferred to the Civil Service Retirement and 
                Disability Fund for the purpose of reducing any 
                supplemental liability under section 8423(b)(1)(B); or
                    ``(IV) as described in clause (i), if none of the 
                liabilities referred to in subclause (I), (II), or 
                (III) remain unpaid.''.
            (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)(B), use--
                    ``(i) demographic factors specific to current and 
                former employees of the United States Postal Service; 
                and
                    ``(ii) appropriate economic assumptions, as 
                determined by the Office, regarding wage and salary 
                trends specific to 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 180 days after the later of the date 
        on which the Office receives the appropriate data or 
        projections from the United States Postal Service under 
        subparagraph (B) or the date of enactment of the Improving 
        Postal Operations, Service, and Transparency Act of 2015, 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 the date on which the Office determines 
the normal-cost percentage under section 104(a)(2) of the Improving 
Postal Operations, Service, and Transparency Act of 2015, 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, 2016, which provides for the liquidation of such 
liability by September 30, 2055.
    ``(ii)(I) The Office shall determine the Postal surplus or 
supplemental liability as of the close of each fiscal year beginning 
after September 30, 2014, in accordance with the requirements under 
paragraph (4).
    ``(II) If the result of the determination 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, 2016, if the result of the 
determination 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, 2055.''; 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)(B), use--
            ``(i) demographic factors specific to current and former 
        employees of the United States Postal Service; and
            ``(ii) appropriate economic assumptions, as determined by 
        the Office, regarding wage and salary trends specific to the 
        employees.
    ``(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. 105. RIGHT OF APPEAL TO MERIT SYSTEMS PROTECTION BOARD.

    Section 1005(a)(4)(A)(ii)(I) of title 39, United States Code, is 
amended to read as follows:
                    ``(I) is an officer or employee of the Postal 
                Service who--
                            ``(aa) is not represented by a bargaining 
                        representative recognized under section 1203; 
                        and
                            ``(bb) is in a supervisory, professional, 
                        technical, clerical, administrative, or 
                        managerial position covered by the Executive 
                        and Administrative Schedule; and''.

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).''.

SEC. 107. SUPERVISORY AND OTHER MANAGERIAL ORGANIZATIONS.

    Section 1004 of title 39, United States Code, is amended--
            (1) in subsection (a), by inserting ``and fringe benefits'' 
        after ``differentials in rates of pay'';
            (2) in subsection (b), in the second sentence, by inserting 
        ``as provided under subsection (d) and any changes in, or 
        termination of, pay policies and schedules and fringe benefit 
        programs for members of the supervisors' organization as 
        provided under subsection (e). Such pay policies and fringe 
        benefit programs shall reflect adequate differentials in rates 
        of pay and fringe benefits as provided under subsection (a)'' 
        before the period; and
            (3) in subsection (e)(1), by inserting ``, or termination 
        of,'' after ``any changes in''.

SEC. 108. ADDRESSING THE MORALE OF POSTAL SERVICE EMPLOYEES.

    (a) Appointment of a Workforce Development Officer.--
            (1) In general.--The Postmaster General shall designate an 
        employee of the Postal Service as the Workforce Development 
        Officer and assign to the Workforce Development Officer primary 
        responsibility for issues relating to the morale of employees 
        of the Postal Service stationed at the headquarters of the 
        Postal Service and employees of the Postal Service stationed in 
        other locations.
            (2) Duties.--The Workforce Development Officer--
                    (A) shall oversee and develop national initiatives, 
                in consultation with all relevant stakeholders, that 
                address working conditions, staffing, communication, 
                training, and employee morale at the Postal Service; 
                and
                    (B) may work with employees of the Postal Service 
                throughout the United States, as needed, who have 
                responsibilities relating to carrying out the national 
                initiatives.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Inspector General of the Postal Service, after 
consultation with relevant individuals and entities, 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 examining the challenges confronted 
by the Postal Service, including--
            (1) decisionmaking by the management of the Postal Service;
            (2) workforce conditions;
            (3) the morale of employees of the Postal Service stationed 
        at the headquarters of the Postal Service and employees of the 
        Postal Service stationed in other locations; and
            (4) recommendations, if any, for improvement.
    (c) Action Plan.--The Postal Service shall develop and 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 an action plan to address the recommendations 
contained in the report of the Inspector General.

                      TITLE II--POSTAL OPERATIONS

SEC. 201. 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;
                    (G) the long-term capital needs of the Postal 
                Service, including the need to maintain, repair, and 
                replace facilities and equipment; and
                    (H) the distinctions between market-dominant and 
                competitive products.
            (3) Review and submission to congress and commission.--
                    (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 and commission.--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, 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, 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.
            (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 date of 
                enactment of this Act.
                    (B) Review by board of governors.--The Board of 
                Governors shall review and submit to Congress and the 
                Commission 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 
        achieving 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;
                    (H) distinguish between market-dominant and 
                competitive products, as practicable; and
                    (I) 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 submit to each covered recipient--
                            (i) a notice of approval under subparagraph 
                        (C)(i); or
                            (ii) 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 that fiscal year.
                            (ii) Process for review, approval, 
                        disapproval, and postmaster general action.--
                        The procedures described in subparagraphs (B) 
                        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.
    (e) Third-Party Analysis of Postal Service Finances.--The 
Commission shall enter into a contract with 1 or more independent third 
parties under which the third party or parties, not later than 15 
months after the date of enactment of this Act, shall--
            (1) complete a study that analyzes--
                    (A) the finances of the Postal Service;
                    (B) the overall mailing industry;
                    (C) the demand for market-dominant and competitive 
                products and services in rural, urban, and suburban 
                communities; and
                    (D) the changes in overall revenue and cost savings 
                of the Postal Service due to recent--
                            (i) closings and consolidations of 
                        processing plants, post offices, and other 
                        facilities;
                            (ii) changes to service standards; and
                            (iii) service performance; and
            (2) submit to the Commission a report on the study 
        conducted under paragraph (1) that includes recommendations on 
        affordable options and timetables for improving postal 
        operations and services, including--
                    (A) how rural service measurement can be made more 
                accurate to ensure that the Postal Service 
                comprehensively measures the mail service provided to 
                each region of the United States, regardless of 
                population size and geographic location;
                    (B) the feasibility of restoring overnight service 
                standards for market-dominant products similar to the 
                service standards that were in effect on July 1, 2012, 
                including an examination of the resources needed, 
                structural and operational changes needed, and market 
                demand for such a change;
                    (C) recommended definitions for the terms 
                ``urban'', ``suburban'', and ``rural'' for purposes of 
                measuring the performance of the Postal Service 
                relative to service standards under section 3691 of 
                title 39, United States Code, as amended by section 
                205; and
                    (D) the feasibility, including the costs and 
                benefits, of bifurcating postal delivery into 2 
                components, consisting of a market-dominant product 
                delivery component and a competitive product delivery 
                component.

SEC. 202. PLANT CLOSINGS AND CONSOLIDATIONS.

    (a) Moratorium on Closing or Consolidation 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 (as defined in section 404(f) of title 39, United States Code, 
as added by this section).
    (b) Closing or Consolidating Certain Postal Facilities.--Section 
404 of title 39, United States Code, is amended by adding at the end 
the following:
    ``(f) Closing or Consolidation of Certain Postal Facilities.--
            ``(1) Postal facility.--In this subsection, the term 
        `postal facility'--
                    ``(A) means any Postal Service facility that is 
                primarily involved in the preparation, dispatch, or 
                other physical processing of mail; and
                    ``(B) does not include--
                            ``(i) any post office, station, or branch; 
                        or
                            ``(ii) any facility used only for 
                        administrative functions.
            ``(2) Area mail processing study.--
                    ``(A) New area mail processing studies.--After the 
                date of enactment of this subsection, before making a 
                determination under subsection (a)(3) as to the 
                necessity for the closing or consolidation of any 
                postal facility, the Postal Service shall--
                            ``(i) conduct an area mail processing study 
                        relating to that postal facility that 
                        includes--
                                    ``(I) a plan to reduce the capacity 
                                of the postal facility, but not close 
                                the postal facility; and
                                    ``(II) consideration of the effect 
                                of the closing or consolidation of the 
                                postal facility on the ability of 
                                individuals served by the postal 
                                facility to vote by mail and the 
                                ability of the Postal Service to timely 
                                deliver ballots by mail in accordance 
                                with the deadline to return ballots 
                                established under applicable State law;
                            ``(ii) publish the study on the Postal 
                        Service website; and
                            ``(iii) publish a notice that the study is 
                        complete and available to the public, including 
                        on the Postal Service website.
                    ``(B) Completed or ongoing area mail processing 
                studies.--
                            ``(i) In general.--In the case of a postal 
                        facility described in clause (ii), the Postal 
                        Service shall--
                                    ``(I) consider a plan to reduce the 
                                capacity of the postal facility without 
                                closing the postal facility;
                                    ``(II) consider the effect of the 
                                closing or consolidation of the postal 
                                facility on the ability of individuals 
                                served by the postal facility to vote 
                                by mail and the ability of the Postal 
                                Service to timely deliver ballots by 
                                mail in accordance with the deadline to 
                                return ballots established under 
                                applicable State law; and
                                    ``(III) publish the results of the 
                                consideration under subclause (I) with 
                                or as an amendment to the area mail 
                                processing study relating to the postal 
                                facility.
                            ``(ii) Postal facilities.--A postal 
                        facility described in this clause is a postal 
                        facility for which, on or before the date of 
                        enactment of this subsection--
                                    ``(I) an area mail processing study 
                                that does not include a plan to reduce 
                                the capacity of the postal facility 
                                without closing the postal facility or 
                                consideration of the effect of the 
                                closing or consolidation of the postal 
                                facility on the ability of individuals 
                                served by the postal facility to vote 
                                by mail and the ability of the Postal 
                                Service to timely deliver ballots by 
                                mail in accordance with the deadline to 
                                return ballots established under 
                                applicable State law has been 
                                completed;
                                    ``(II) an area mail processing 
                                study is in progress; or
                                    ``(III) a determination as to the 
                                necessity for the closing or 
                                consolidation of the postal facility 
                                has not been made.
            ``(3) Notice, public comment, and public hearing.--If the 
        Postal Service makes a determination under subsection (a)(3) to 
        close or consolidate a postal facility, the Postal Service 
        shall--
                    ``(A) provide notice of the determination to--
                            ``(i) Congress; and
                            ``(ii) the Postal Regulatory Commission;
                    ``(B) provide adequate public notice of the 
                intention of the Postal Service to close or consolidate 
                the postal facility;
                    ``(C) ensure that interested persons have an 
                opportunity to submit public comments during a 45-day 
                period after the notice of intention is provided under 
                subparagraph (B);
                    ``(D) before the 45-day period described in 
                subparagraph (C), provide for public notice of that 
                opportunity by--
                            ``(i) publication on the Postal Service 
                        website;
                            ``(ii) prominent posting at the affected 
                        postal facility; and
                            ``(iii) advertising the date and location 
                        of the public community meeting under 
                        subparagraph (E); and
                    ``(E) during the 45-day period described in 
                subparagraph (C), conduct a public community meeting 
                that provides an opportunity for public comments to be 
                submitted verbally or in writing.
            ``(4) Further considerations.--Not earlier than 30 days 
        after the end of the 45-day period for public comment under 
        paragraph (3), the Postal Service, in making a determination to 
        close or consolidate a postal facility, shall consider--
                    ``(A) the views presented by interested persons 
                under paragraph (3);
                    ``(B) the effect of the closing or consolidation on 
                the affected community, including any disproportionate 
                impact the closing or consolidation may have on a 
                State, region, or locality;
                    ``(C) the effect of the closing or consolidation on 
                the travel times and distances for affected customers 
                to access services under the proposed closing or 
                consolidation;
                    ``(D) the effect of the closing or consolidation on 
                delivery times for all classes of mail;
                    ``(E) any characteristics of certain geographical 
                areas, such as remoteness, broadband Internet 
                availability, and weather-related obstacles to using 
                alternative facilities, that may result in the closing 
                or consolidation having a unique effect;
                    ``(F) the effect of the closing or consolidation on 
                small businesses in the area, including shipping and 
                communications with customers and suppliers and the 
                corresponding impact on revenues, operations, and 
                growth; and
                    ``(G) any other factor the Postal Service 
                determines is necessary.
            ``(5) Notice of final determination; justification 
        statement.--Before the date on which the Postal Service closes 
        or consolidates a postal facility, the Postal Service shall 
        post on the Postal Service website--
                    ``(A) notice of the final determination to close or 
                consolidate the postal facility; and
                    ``(B) a closing or consolidation justification 
                statement that includes--
                            ``(i) a response to all public comments 
                        received with respect to the considerations 
                        described under paragraph (4);
                            ``(ii) a description of the considerations 
                        made by the Postal Service under paragraph (4); 
                        and
                            ``(iii) the actions that will be taken by 
                        the Postal Service to mitigate any negative 
                        effects identified under paragraph (4).
            ``(6) Closing or consolidation of postal facilities.--
                    ``(A) In general.--Not earlier than 15 days after 
                the date on which the Postal Service posts notice of 
                the final determination and the justification statement 
                under paragraph (5) with respect to a postal facility, 
                the Postal Service may close or consolidate the postal 
                facility.
                    ``(B) Alternative intake of mail.--If the Postal 
                Service closes or consolidates a postal facility under 
                subparagraph (A), the Postal Service shall make 
                reasonable efforts to ensure continued mail receipt 
                from customers of the closed or consolidated postal 
                facility at the same location or at another appropriate 
                location in close geographic proximity to the closed or 
                consolidated postal facility.
            ``(7) Postal regulatory commission appeals.--
                    ``(A) Right to appeal.--A determination of the 
                Postal Service to close or consolidate any postal 
                facility may be appealed by any person served by the 
                postal facility to the Postal Regulatory Commission not 
                later than 15 days after the date on which the 
                determination is posted on the Postal Service website 
                under paragraph (5).
                    ``(B) Review based on record.--The Commission shall 
                review a determination appealed under this paragraph on 
                the basis of the record before the Postal Service in 
                the making of the determination.
                    ``(C) Deadline for commission determination.--The 
                Commission shall make a determination based upon a 
                review conducted under subparagraph (B) not later than 
                90 days after the date on which the Commission receives 
                the appeal of the determination under subparagraph (A).
                    ``(D) Bases for setting aside postal service 
                determinations.--In making a determination under 
                subparagraph (C), the Commission shall set aside any 
                determination, finding, or conclusion of the Postal 
                Service that the Commission determines--
                            ``(i) is arbitrary, capricious, an abuse of 
                        discretion, or otherwise not in accordance with 
                        the law;
                            ``(ii) is without observance of the 
                        procedures required under this subsection or 
                        any other applicable law; or
                            ``(iii) is unsupported by substantial 
                        evidence on the record.
                    ``(E) Option to affirm or remand.--The Commission--
                            ``(i) may affirm a determination of the 
                        Postal Service appealed under this paragraph or 
                        order that the entire matter be returned for 
                        further consideration; and
                            ``(ii) may not modify the determination of 
                        the Postal Service.
                    ``(F) Temporary suspension.--The Commission may 
                suspend the effectiveness of a determination of the 
                Postal Service appealed under this paragraph until the 
                final disposition of the appeal.
                    ``(G) Applicability of other laws.--The provisions 
                of section 556, section 557, and chapter 7 of title 5 
                shall not apply to any review carried out by the 
                Commission under this paragraph.
                    ``(H) Date of receipt of appeal.--For purposes of 
                subparagraph (A), any appeal received by the Commission 
                shall--
                            ``(i) if sent to the Commission through the 
                        mails, be considered to have been received on 
                        the date of the Postal Service postmark on the 
                        envelope or other cover in which the appeal is 
                        mailed; or
                            ``(ii) if otherwise lawfully delivered to 
                        the Commission, be considered to have been 
                        received on the date determined based on any 
                        appropriate documentation or other indicia (as 
                        determined under regulations of the 
                        Commission).
            ``(8) Postal service website.--For purposes of any notice 
        required to be published on the Postal Service website under 
        this subsection, the Postal Service shall ensure that the 
        Postal Service website--
                    ``(A) is updated routinely; and
                    ``(B) provides any person, at the option of the 
                person, the opportunity to receive relevant updates by 
                electronic mail.
            ``(9) Protection of certain information.--Nothing in this 
        subsection may be construed to require the Postal Service to 
        disclose--
                    ``(A) any proprietary data, including any reference 
                or citation to proprietary data; or
                    ``(B) any information relating to the security of a 
                postal facility.''.

SEC. 203. POST OFFICE CLOSINGS, CONSOLIDATIONS, AND RESTRUCTURING.

    (a) Moratorium on Closing, Consolidating, Reducing Hours of, or 
Reclassifying Downward Certain Post Offices.--During the 5-year period 
beginning on the date of enactment of this Act, the Postal Service may 
not--
            (1) close or consolidate any post office; or
            (2) reduce the hours of operation of or reclassify downward 
        any post office that, as of the date of enactment of this Act, 
        was classified at or below level 18.
    (b) Required Procedures.--Section 404(d) of title 39, United States 
Code, is amended--
            (1) by striking ``(6) For purposes of paragraph (5)'' and 
        inserting the following:
            ``(7) Date of receipt of appeals.--For purposes of 
        paragraph (6)'';
            (2) by striking ``(5) A determination'' and inserting the 
        following:
            ``(6) Appeals.--A determination'';
            (3) by striking ``(d)(1) The Postal Service'' and all that 
        follows through the end of paragraph (4) and inserting the 
        following:
    ``(d) Discontinuance of Post Offices.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `discontinuance' has the meaning 
                given the term in section 241.3 of title 39, Code of 
                Federal Regulations, as in effect on November 1, 2013;
                    ``(B) the term `local government' means--
                            ``(i) a county, municipality, city, town, 
                        township, local public authority, special 
                        district, intrastate district, council of 
                        government, 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; and
                    ``(C) 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) Preliminary considerations.--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--
                    ``(A) consider whether--
                            ``(i) to discontinue the post office and 
                        combine it with 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 postal 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 
                                utilizing mobile technologies, as 
                                feasible;
                                    ``(II) by colocating postal 
                                services at a commercial or government 
                                entity; or
                                    ``(III) by implementing an 
                                alternative proposal made by a local 
                                government under subparagraph (B)(iii);
                    ``(B) provide--
                            ``(i) relevant information on financial 
                        costs associated with the operations of the 
                        post office to postal customers and local 
                        governments served by the post office;
                            ``(ii) postal customers served by the post 
                        office an opportunity to present their views, 
                        which may be by nonbinding survey conducted by 
                        mail; and
                            ``(iii) local governments served by the 
                        post office an opportunity to present 
                        alternative proposals for providing postal 
                        services to the community, including the 
                        furnishing of property or services to the 
                        Postal Service to maintain the same level of 
                        postal services in the community; and
                    ``(C) if the Postal Service determines to 
                discontinue the post office, provide adequate public 
                notice of its intention to discontinue the post office 
                at least 60 days prior to the proposed date of the 
                discontinuance to persons and local governments served 
                by the post office.
            ``(3) Considerations.--The Postal Service, in making a 
        determination whether or not to discontinue a post office--
                    ``(A) shall consider--
                            ``(i) the effect of the discontinuance on 
                        the community served by the post office;
                            ``(ii) the effect of the discontinuance on 
                        businesses, including small businesses, in the 
                        area;
                            ``(iii) the effect of the discontinuance on 
                        employees of the Postal Service employed at the 
                        post office;
                            ``(iv) whether the discontinuance would 
                        have a significant adverse effect on 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, broadband, or cellular telephone 
                        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, such as 
                        prescription drugs 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 
                        the discontinuance; and
                            ``(ix) any other factors that the Postal 
                        Service determines are necessary;
                    ``(B) may not consider compliance with any 
                provision of the Occupational Safety and Health Act of 
                1970 (29 U.S.C. 651 et seq.); and
                    ``(C) may not make a determination to discontinue a 
                post office unless the Postal Service--
                            ``(i)(I) determines that postal customers 
                        served by the post office would continue after 
                        the discontinuance to receive substantially 
                        similar access to essential items, such as 
                        prescription medications and time-sensitive 
                        communications, that are sent through the 
                        mails; or
                            ``(II) takes action to substantially 
                        ameliorate any projected reduction in access to 
                        essential items described in clause (i); and
                            ``(ii) determines that--
                                    ``(I) there is unlikely to be 
                                substantial economic loss to the 
                                community served by the post office as 
                                a result of the discontinuance; and
                                    ``(II) the area served by the post 
                                office has adequate access to broadband 
                                Internet service, as identified on the 
                                National Broadband Map of the National 
                                Telecommunications and Information 
                                Administration.
            ``(4) Written determination and findings.--
                    ``(A) In general.--Any determination of the Postal 
                Service to discontinue a post office shall--
                            ``(i) be in writing; and
                            ``(ii) include the findings of the Postal 
                        Service with respect to the considerations 
                        required to be made under paragraph (3).
                    ``(B) Availability of findings.--The Postal Service 
                shall make available, to persons served by a post 
                office that the Postal Service determines to 
                discontinue, any determination and findings under 
                subparagraph (A) with respect to that post office.
                    ``(C) Notice before discontinuance.--The Postal 
                Service may not take any action to discontinue a post 
                office until 60 days after the date on which the Postal 
                Service makes available, to persons served by the post 
                office, the written determination and findings with 
                respect to the post office as required under 
                subparagraph (B).
            ``(5) Reductions in hours of operation.--
                    ``(A) Considerations.--The Postal Service, prior to 
                making a determination under paragraph (2)(A)(ii)(I) to 
                reduce the number of hours per day that a post office 
                operates, shall consider--
                            ``(i) the impact of the proposed reduction 
                        in hours on local businesses;
                            ``(ii) the effect of the proposed reduction 
                        in hours on the community served by the post 
                        office;
                            ``(iii) the ability of the Postal Service 
                        to hire qualified employees to operate the post 
                        office during the reduced hours;
                            ``(iv) the proximity and accessibility of 
                        other post offices within 15 miles of the post 
                        office, and the hours those post offices are 
                        open;
                            ``(v) the impact of the proposed reduction 
                        in hours on the elderly and other vulnerable 
                        populations; and
                            ``(vi) the impact of alternative schedules 
                        on the community served by the post office, 
                        including consideration of which schedules 
                        would most effectively mitigate any negative 
                        impacts identified under clauses (i) through 
                        (v).
                    ``(B) Findings.--If the Postal Service determines, 
                after considering the factors under subparagraph (A), 
                to reduce the number of hours per day that a post 
                office operates, the Postal Service shall make 
                available to persons served by the post office--
                            ``(i) a summary of the findings of the 
                        Postal Service under subparagraph (A);
                            ``(ii) the hours during which the post 
                        office will be open; and
                            ``(iii) an explanation of the change in 
                        hours referred to in clause (ii).'';
            (4) in paragraph (6), as so designated--
                    (A) by striking ``close or consolidate'' and 
                inserting ``discontinue'';
                    (B) by striking ``under paragraph (3)'' and 
                inserting ``under paragraph (4)'';
                    (C) by moving subparagraphs (A), (B), and (C) 2 ems 
                to the right; and
                    (D) by moving the flush text following subparagraph 
                (C) 2 ems to the right;
            (5) in paragraph (7), as so designated, by moving 
        subparagraphs (A) and (B) 2 ems to the right; and
            (6) by adding at the end the following:
            ``(8) Minimum retail standards.--The Postal Service shall 
        establish minimum standards for retail postal services.''.
    (c) Report on Post Office Discontinuances.--
            (1) Definition.--In this subsection, the term 
        ``moratorium'' means the 5-year period described in subsection 
        (a).
            (2) Report required.--Not later than 6 years after the 
        expiration of the moratorium, the Inspector General of the 
        Postal Service shall submit to each recipient described in 
        paragraph (3) a consolidated report that describes, for each 
        post office that was discontinued under section 404 of title 
        39, United States Code (as amended by subsection (b)), during 
        the 5-year period beginning on the day after the expiration of 
        the moratorium--
                    (A) the actual cost savings resulting from the 
                discontinuance; and
                    (B) a comparison between the findings described in 
                subparagraph (A) and the cost savings that the Postal 
                Service predicted would result from the discontinuance.
            (3) Recipients.--The recipients described in this paragraph 
        are--
                    (A) the Postal Regulatory Commission;
                    (B) the Board of Governors;
                    (C) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (D) the Committee on Oversight and Government 
                Reform of the House of Representatives;
                    (E) the Member of the House of Representatives in 
                whose district the post office was located; and
                    (F) the Senators in whose State the post office was 
                located.

SEC. 204. 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. 205. SERVICE STANDARDS AND PERFORMANCE RATINGS.

    (a) Service Standards and Performance Ratings.--
            (1) In general.--Section 3691 of title 39, United States 
        Code, is amended to read as follows:
``Sec. 3691. Modern service standards and performance ratings
    ``(a) Definitions.--In this section--
            ``(1) the term `Commission' means the Postal Regulatory 
        Commission;
            ``(2) the term `national service standards' means the 
        service standards established by the Commission under 
        subsection (b);
            ``(3) the term `performance targets' means the targets 
        established by the Commission under subsection (e)(1)(A); and
            ``(4) the terms `urban', `suburban', and `rural' have the 
        meanings given those terms under regulations promulgated by the 
        Commission under subsection (e)(1)(B).
    ``(b) Authority Generally.--
            ``(1) Establishment; revision.--The Postal Service, in 
        consultation with the Commission as provided under paragraph 
        (2), shall by regulation establish and regularly revise a 
        uniform set of national service standards for market-dominant 
        products based on--
                    ``(A) the finances of the Postal Service;
                    ``(B) the ability of the Postal Service to meet the 
                national service standards; and
                    ``(C) the ability of Postal Service customers to 
                receive fair and reliable service.
            ``(2) PRC advisory opinion.--
                    ``(A) Request for advisory opinion.--If the Postal 
                Service determines that there should be a change in the 
                national service standards, the Postal Service shall 
                submit a proposal to the Commission requesting an 
                advisory opinion on the change in accordance with 
                subparagraph (B).
                    ``(B) Applicability of section 3661.--Section 3661 
                shall apply to a request for an advisory opinion under 
                subparagraph (A) of this paragraph, except that the 
                Postal Service may not implement a proposed national 
                service standard earlier than the date that is 60 days 
                after the date on which the Postal Service submits to 
                the President and Congress the response to the advisory 
                opinion of the Commission on the proposal required 
                under section 3661(b)(3).
    ``(c) Objectives.--The national service standards shall be designed 
to achieve the following objectives:
            ``(1) To ensure that the Postal Service meets the universal 
        service obligation, including the obligation to preserve 
        regular and effective access to postal services in all 
        communities, including those in rural areas or where post 
        offices are not self-sustaining.
            ``(2) To enhance the value of postal services to both 
        senders and recipients.
            ``(3) To reasonably assure Postal Service customers 
        delivery reliability, speed and frequency consistent with 
        reasonable rates and best business practices.
            ``(4) To provide a system of objective performance 
        measurements for each market-dominant product as a basis for 
        measurement of Postal Service performance, in accordance with 
        subsection (e).
            ``(5) To ensure that performance is as strong as possible 
        under the applicable national service standard.
    ``(d) Factors.--In establishing or revising the national service 
standards, the Postal Service shall take into account--
            ``(1) the actual level of service that Postal Service 
        customers receive under any service guidelines previously 
        established by the Postal Service or service standards 
        established under this section;
            ``(2) the degree of customer satisfaction with Postal 
        Service performance in the acceptance, processing, and delivery 
        of mail;
            ``(3) the needs of Postal Service customers, including 
        those with physical impairments;
            ``(4) mail volume and revenues projected for future years;
            ``(5) the projected growth in the number of addresses the 
        Postal Service will be required to serve in future years;
            ``(6) the current and projected future cost of serving 
        Postal Service customers;
            ``(7) the effect of changes in technology, demographics, 
        and population distribution on the efficient and reliable 
        operation of the postal delivery system; and
            ``(8) the policies of this title and such other factors as 
        the Postal Service determines appropriate.
    ``(e) Performance Targets, Ratings, and Publication.--
            ``(1) Performance targets.--
                    ``(A) Annual performance targets.--Each year, the 
                Commission, in consultation with the Postal Service, 
                shall by regulation establish reasonable targets for 
                performance to ensure that mail service for all postal 
                customers meets the national service standards.
                    ``(B) Definition of urban, suburban, and rural.--
                For purposes of establishing performance targets, the 
                Commission--
                            ``(i) shall promulgate regulations to 
                        define the terms `urban', `suburban', and 
                        `rural';
                            ``(ii) in defining the terms under clause 
                        (i), shall--
                                    ``(I) consider--
                                            ``(aa) the recommendations 
                                        of the report submitted to the 
                                        Commission under section 201(e) 
                                        of the Improving Postal 
                                        Operations, Service, and 
                                        Transparency Act of 2015; and
                                            ``(bb) existing definitions 
                                        of those terms that are in use 
                                        by the Postal Service, the 
                                        Federal Government, and other 
                                        sources; and
                                    ``(II) incorporate stakeholder 
                                input; and
                            ``(iii) shall categorize each 3-digit zip 
                        code area as an urban, suburban, or rural 
                        community.
            ``(2) Performance ratings.--The Commission shall rate the 
        performance of the Postal Service with respect to--
                    ``(A) each 3-digit zip code area, postal district, 
                and operational area;
                    ``(B) all postal districts--
                            ``(i) by urban, suburban, or rural 
                        category; and
                            ``(ii) nationwide;
                    ``(C) all operational areas--
                            ``(i) by urban, suburban, or rural 
                        category; and
                            ``(ii) nationwide;
                    ``(D) market-dominant products nationwide; and
                    ``(E) first-class mail nationwide.
            ``(3) Publication.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Postal Service shall publish on the website of the 
                Postal Service the ratings recorded under paragraph 
                (2)--
                            ``(i) covering a period of not less than 24 
                        months; and
                            ``(ii) categorized in accordance with that 
                        paragraph.
                    ``(B) Commercially sensitive or proprietary 
                information.--To the extent that the Postal Service 
                considers any information required to be reported under 
                subparagraph (A) to be commercially sensitive or 
                proprietary in nature, the Commission shall determine 
                the level of information that shall be publicly 
                disclosed.
    ``(f) Review Upon Complaint.--The regulations promulgated pursuant 
to this section (and any revisions thereto), and any violations 
thereof, shall be subject to review upon complaint under sections 3662 
and 3663.
    ``(g) Noncompliance With Performance Targets.--
            ``(1) In general.--If the Postal Service fails to meet the 
        performance targets, the Commission shall require the Postal 
        Service to develop a plan to make specific operational 
        corrections under the control of the Postal Service that will 
        cause the performance targets to be met within 1 year of the 
        date of noncompliance.
            ``(2) Postal service submission of plan.--Not later than 
        180 days after the date of noncompliance, the Postal Service 
        shall submit the plan required under paragraph (1) to the 
        Commission.
            ``(3) Commission consideration of postal service plan.--
                    ``(A) In general.--The Commission shall determine 
                whether the plan submitted by the Postal Service under 
                paragraph (2) is sufficient to improve performance to 
                meet the performance targets.
                    ``(B) Remand.--If the Commission determines under 
                subparagraph (A) that the Postal Service plan is not 
                sufficient, the Commission may remand the plan to the 
                Postal Service for revision.
                    ``(C) Revision.--If the Commission remands a plan 
                to the Postal Service under subparagraph (B), the 
                Postal Service shall have 30 days to revise and 
                resubmit the plan to the Commission.
            ``(4) Postal service implementation of plan.--Not later 
        than 180 days after the date on which the Commission approves a 
        plan of the Postal Service under paragraph (3), the Postal 
        Service shall fully implement the plan.
    ``(h) Periodic Review of Service Standards.--The Commission shall 
periodically--
            ``(1) review the appropriateness of the national service 
        standards; and
            ``(2) submit to Congress a report on the review conducted 
        under paragraph (1).''.
            (2) Technical and conforming amendment.--The table of 
        sections for subchapter VII of chapter 36 of title 39, United 
        States Code, is amended by striking the item relating to 
        section 3691 and inserting the following:

``3691. Modern service standards and performance ratings.''.
    (b) Report to Congress.--Not later than 180 days after the date on 
which the report is submitted to the Commission under section 
201(e)(2), the Commission shall submit to Congress an extensive report 
that includes--
            (1) a determination as to whether the service standards for 
        market-dominant products in effect on the day before the date 
        of enactment of this Act achieve the objectives and factors set 
        forth under section 3691 of title 39, United States Code, as 
        amended by this section; and
            (2) recommendations as to how delivery service to postal 
        customers could be improved based on the financial condition of 
        the Postal Service.
    (c) Temporary Floor for Service Standards.--
            (1) In general.--Subject to paragraph (2), during the 5-
        year period beginning on the date of enactment of this Act, the 
        Postal Service may not revise the service standards for market-
        dominant products in a manner that lengthens delivery times.
            (2) Authority of commission to extend temporary floor.--The 
        Commission may extend the 5-year period described in paragraph 
        (1) by any length of time that the Commission determines 
        appropriate if, as of the last day of that period, the 
        Commission determines that the Postal Service is not meeting 
        the performance targets established under subsection (e) of 
        section 3691 of title 39, United States Code, as added by this 
        section.

SEC. 206. CONVERSION OF DOOR DELIVERY POINTS.

    (a) Voluntary Nature of Delivery Conversion.--Nothing in section 
3692 of title 39, United States Code, as added by subsection (b), shall 
be construed to authorize the Postal Service to convert the primary 
mode of mail delivery of a postal customer without the consent of the 
postal customer.
    (b) Amendment to Title 39, United States Code.--
            (1) 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 
        Improving Postal Operations, Service, and Transparency Act of 
        2015, 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, on a voluntary basis, 
        business addresses with door delivery on the date of enactment 
        of the Improving Postal Operations, Service, and Transparency 
        Act of 2015 to centralized delivery or to curbside delivery.
            ``(3) Residential address conversion.--
                    ``(A) Identification.--Not later than 270 days 
                after the date of enactment of the Improving Postal 
                Operations, Service, and Transparency Act of 2015, the 
                head of each district office of the Postal Service 
                shall identify residential addresses within the service 
                area of the district office that are appropriate 
                candidates for conversion from door delivery to a more 
                cost-effective 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 Improving Postal 
                Operations, Service, and Transparency Act of 2015, 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.--
                    ``(A) In general.--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--
                            ``(i) centralized delivery or curbside 
                        delivery would, but for this paragraph, be the 
                        primary mode of mail delivery for the delivery 
                        point; and
                            ``(ii) a physical hardship prevents the 
                        postal customer from receiving his or her mail 
                        through any other form of mail delivery.
                    ``(B) Publicity; simplicity.--In establishing and 
                maintaining the waiver program under subparagraph (A), 
                the Postal Service shall--
                            ``(i) publicize the waiver program; and
                            ``(ii) provide a simple application process 
                        for participation in the waiver program.
                    ``(C) Postal service discretion.--Nothing in this 
                paragraph shall be construed to--
                            ``(i) prohibit the Postal Service from 
                        requiring evidence of a physical hardship in an 
                        appropriate case; or
                            ``(ii) require the Postal Service to 
                        require evidence of a physical hardship in any 
                        case.
                    ``(D) No fees for application or door delivery.--In 
                establishing and maintaining the waiver program under 
                subparagraph (A), the Postal Service may not charge a 
                postal customer any fee to--
                            ``(i) apply for a waiver; or
                            ``(ii) upon the granting of a waiver by the 
                        Postal Service, receive mail through door 
                        delivery.''.
    (c) 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. 207. FLEET MAINTENANCE REPORTING AND ALTERNATIVE FUEL AND EMERGING 
              TECHNOLOGIES DEMONSTRATION PROGRAM.

    (a) Definitions.--In this section--
            (1) the term ``alternative fuel infrastructure'' means 
        motor vehicle fueling infrastructure and equipment capable of 
        providing alternative fuel for an alternative fuel vehicle;
            (2) the term ``alternative fuel vehicle'' means a motor 
        vehicle that uses--
                    (A) electricity, including a--
                            (i) plug-in electric vehicle; or
                            (ii) hybrid electric vehicle;
                    (B) natural gas;
                    (C) propane;
                    (D) hydrogen; or
                    (E) biodiesel, using a B20 minimum standard or 
                better;
            (3) the term ``emerging technologies'' includes--
                    (A) collision aversion technologies; and
                    (B) vehicle designs that address geographic and 
                weather conditions; and
            (4) the term ``pilot program'' means the pilot program 
        implemented under subsection (b)(1).
    (b) Implementation; Duration.--
            (1) Implementation.--Not later than 180 days after the date 
        of enactment of this Act, the Postal Service shall implement a 
        pilot program to assess the feasibility of integrating 
        alternative fuel vehicles and emerging technologies into the 
        postal fleet.
            (2) Duration.--The Postal Service shall carry out the pilot 
        program for a period of not less than 1 year.
    (c) Locations.--The Postal Service shall deploy and assess 2 types 
of alternative fuel vehicles described in subparagraphs (A) through (F) 
of subsection (a)(2), that are not being deployed or assessed as of the 
date of enactment of this Act, and any relevant emerging technologies, 
in the postal fleet in not fewer than 2 locations that--
            (1) have existing or planned alternative fuel 
        infrastructure appropriate to the alternative fuel vehicle 
        being assessed under the pilot program;
            (2) have support from the applicable State and local 
        governments and other stakeholders, including utility 
        companies; and
            (3) demonstrate a commitment to alternative fuel vehicle 
        uptake and deployment.
    (d) Reinvestment of Cost Savings.--The Postal Service shall use any 
cost savings from the pilot program--
            (1) to repay any obligation issued under section 2005(a) of 
        title 39, United States Code; and
            (2) after repaying any obligation described in paragraph 
        (1), to fund innovation efforts for market-dominant products of 
        the Postal Service.
    (e) Report.--Not later than 90 days after the date on which the 
Postal Service terminates the pilot program, the Postal Service shall 
complete and submit to Congress a report on the results of the pilot 
program, including an assessment of the feasibility of integrating 
alternative fuel vehicles into the postal fleet in conjunction with the 
future acquisition of the Next Generation of Delivery Vehicles 
(commonly known as ``NGDV''), including assessments of--
            (1) the ability of alternative fuel vehicles to--
                    (A) reduce the cost of vehicle operation, including 
                fuel costs and other operation and maintenance costs, 
                in the postal fleet;
                    (B) improve the environmental performance of 
                vehicles in the postal fleet, including by reducing air 
                emissions to comply with standards established by the 
                Administrator of the Environmental Protection Agency 
                under the Clean Air Act (42 U.S.C. 7401 et seq.);
                    (C) create an alternative source of revenue for the 
                Postal Service; and
                    (D) provide additional economic and environmental 
                benefits to the communities surrounding the pilot 
                sites; and
            (2) the availability of alternative fuel infrastructure to 
        support an expanded integration of alternative fuel vehicles 
        into the postal fleet.
    (f) Fleet Modernization.--
            (1) GAO report.--Not later than 1 year after the date of 
        enactment of this Act, the Comptroller General of the United 
        States shall study and submit to Congress a report on--
                    (A) the feasibility of the Postal Service designing 
                mail delivery vehicles that are equipped for diverse 
                geographic conditions such as travel in rural areas and 
                extreme weather conditions; and
                    (B) the feasibility and cost of the Postal Service 
                integrating the use of collision-averting technology 
                into its vehicle fleet.
            (2) Postal service report.--Not later than 1 year after the 
        date of enactment of this Act, the Postal Service shall submit 
        to Congress a report that includes--
                    (A) a review of the efforts of the Postal Service 
                relating to fleet replacement and modernization; and
                    (B) a strategy for carrying out the fleet 
                replacement and lifecycle plan of the Postal Service.

SEC. 208. MULTI-BROKER LEASE OF POSTAL SERVICE FACILITIES.

    (a) In General.--Chapter 20 of title 39, United States Code, is 
amended by adding at the end the following:
``Sec. 2012. Multi-broker lease of Postal Service facilities
    ``(a) Definition.--In this section, the term `multi-broker contract 
vehicle' means a contract vehicle, similar to the National Broker 
Contract used by the General Services Administration, that encourages 
competition through the use of multiple national real estate companies.
    ``(b) Requirement To Use Multi-Broker Lease.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Postal Service shall use a multi-broker contract vehicle to 
        acquire any leased property.
            ``(2) Exception.--Paragraph (1) shall not apply to a leased 
        property--
                    ``(A) that the Postal Service acquired before the 
                date of enactment of the Improving Postal Operations, 
                Service, and Transparency Act of 2015; and
                    ``(B) the lease for which the Postal Service 
                renews, using its own resources, on or after the date 
                of enactment of the Improving Postal Operations, 
                Service, and Transparency Act of 2015.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 20 of title 39, United States Code, is amended by adding at the 
end the following:

``2012. Multi-broker lease of Postal Service facilities.''.

SEC. 209. CAPITOL COMPLEX POST OFFICES.

    (a) House of Representatives.--
            (1) In general.--The Postal Service shall not maintain or 
        operate more than 1 post office in the United States Capitol 
        Complex, as defined in section 310(a)(3)(B) of the Legislative 
        Branch Appropriations Act, 1990 (2 U.S.C. 2172(a)(3)(B)), which 
        shall be located in a House Office Building.
            (2) Closing of capitol post offices.--The Postal Service 
        shall close any post office in the United States Capitol 
        Complex, as defined in section 310(a)(3)(B) of the Legislative 
        Branch Appropriations Act, 1990 (2 U.S.C. 2172(a)(3)(B)), not 
        permitted under this subsection, without regard to the 
        requirements under section 404(d) of title 39, United States 
        Code.
    (b) Senate.--
            (1) In general.--The Sergeant at Arms and Doorkeeper of the 
        Senate may not enter into, modify, or renew a contract with the 
        Postal Service to maintain or operate more than 1 post office 
        in a Senate Office Building.
            (2) Existing contracts.--Nothing in paragraph (1) may be 
        construed to affect a contract entered into by the Sergeant at 
        Arms and Doorkeeper of the Senate and the Postal Service before 
        the date of enactment of this Act.

            TITLE III--POSTAL SERVICE REVENUE AND INNOVATION

SEC. 301. RATES.

    (a) Establishment of Rate Baseline and Temporary Freeze.--The rates 
for market-dominant products in effect on September 30, 2015--
            (1) shall be in effect on and after the date of enactment 
        of this Act unless adjusted in accordance with section 3622 of 
        title 39, United States Code, as amended by subsection (b)(2) 
        of this section; and
            (2) may not be adjusted before January 1, 2018.
    (b) Establishment of New System.--
            (1) In general.--Not later than January 1, 2018, the 
        Commission--
                    (A) shall by regulation establish a new system for 
                regulating rates and classes for market-dominant 
                products under section 3622 of title 39, United States 
                Code, as amended by paragraph (2) of this subsection; 
                and
                    (B) in establishing the new system, may consider 
                any rate increases that, but for the prohibition on 
                adjustments to rates under subsection (a)(2) of this 
                section, might have been applied during the period 
                during which the prohibition was in effect.
            (2) New principles.--Section 3622(c) of title 39, United 
        States Code, is amended--
                    (A) in paragraph (13), by striking ``and'' at the 
                end;
                    (B) by redesignating paragraph (14) as paragraph 
                (15); and
                    (C) by inserting after paragraph (13) the 
                following:
            ``(14) the service standards established under section 3691 
        and the extent to which the Postal Service is meeting those 
        standards in all communities, including urban, suburban, and 
        rural communities; and''.

SEC. 302. POSTAL COSTING SYSTEM.

    Not later than 1 year after the date of enactment of this Act, the 
Commission, in consultation with the Postal Service and in conjunction 
with the establishment of a new system for regulating rates and classes 
for market-dominant products under section 3622 of title 39, United 
States Code (as amended by section 301(b)(2) of this Act), shall by 
regulation direct the Postal Service to update its existing costing 
methodologies as necessary and appropriate to effectuate the changes to 
mail processing technologies and cost tracking that have occurred in 
recent years or are reasonably expected to occur in the foreseeable 
future.

SEC. 303. NONPOSTAL SERVICES.

    (a) Authorization of New Nonpostal Services.--
            (1) In general.--Section 404 of title 39, United States 
        Code, as amended by this Act, 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 Improving 
        Postal Operations, Service, and Transparency Act of 2015, 
        except as provided in subsection (e) and subject to subsection 
        (h)--
                    ``(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 demonstrated likely 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 
                        laws or requirements generally applicable to 
                        the provision of such 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 and regulations applicable to 
                        the provision of such services; and
                            ``(vi) is reasonably expected to improve 
                        the net financial position of the Postal 
                        Service, based on a market analysis conducted 
                        by or on behalf of 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 Improving Postal Operations, Service, 
                and Transparency Act of 2015'' after ``102(5)''; and
                    (C) by adding at the end the following:
    ``(g) Treatment of New Nonpostal Services.--For purposes of 
chapters 20 and 36 of this title, nonpostal services provided under 
subsection (a)(6) shall be treated as competitive products.
    ``(h) Federal Regulation of New Nonpostal Services.--The Postal 
Service shall ensure that any nonpostal service provided under 
subsection (a)(6) that is otherwise subject to the jurisdiction and 
regulation of a Federal regulatory agency remains subject to the 
jurisdiction and regulation of the Federal regulatory agency 
notwithstanding the fact that the nonpostal service is provided by the 
Postal Service.''.
            (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, not later than 7 days after 
        the date on which any market analysis conducted under section 
        404(a)(6)(A)(vi) of title 39, United States Code, as amended by 
        this section, is completed, the Postal Service shall submit a 
        copy of the market analysis to--
                    (A) the Commission;
                    (B) the Committee on Homeland Security and 
                Governmental Affairs of the Senate; and
                    (C) 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 striking ``Executive agencies'' and inserting ``(a) 
        Federal Government.--Executive agencies''; and
            (3) by adding at the end the following:
    ``(b) State, Local, and Tribal Governments.--
            ``(1) Authority of postal service.--The Postal Service is 
        authorized to furnish property and services to States, local 
        governments, and tribal governments, under such terms and 
        conditions as the Postal Service and the applicable State, 
        local government, or tribal government shall determine 
        appropriate.
            ``(2) Definitions.--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) Report.--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 property and 
services furnished by the Postal Service under this section during the 
period covered by the report required under section 3652.
    ``(d) Reimbursement Determination.--In determining the possibility 
for reimbursement under subsections (a) and (b), the Postal Service 
shall ensure that each property or service furnished 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--
                    (A) by striking ``(e)(1) In this'' and inserting 
                the following:
    ``(e) Previously Offered Nonpostal Services.--
            ``(1) Definition.--In this'';
                    (B) in paragraph (2), by striking ``(2) Nothing'' 
                and inserting the following:
            ``(2) Eligible nonpostal services.--Nothing'';
                    (C) in paragraph (3)--
                            (i) by striking ``(3) Not'' and inserting 
                        the following:
            ``(3) Review of nonpostal services.--Not''; and
                            (ii) by moving subparagraphs (A) and (B) 2 
                        ems to the right;
                    (D) in paragraph (4), by striking ``(4) Any'' and 
                inserting the following:
            ``(4) Termination.--Any''; and
                    (E) by striking paragraph (5) and inserting the 
                following:
            ``(5) Designation.--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 Improving Postal Operations, Service, and 
        Transparency Act of 2015.
            ``(6) Rule of construction.--Nothing in this subsection 
        shall be construed to prevent the Postal Service from providing 
        nonpostal services under 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 
                services)'' 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 property and services authorized under section 
        411,''.
    (d) Assessment of Wi-Fi Feasibility.--
            (1) In general.--The Inspector General of the Postal 
        Service shall assess the feasibility of the Postal Service 
        providing unique services in urban and rural communities, such 
        as providing wireless broadband Internet access service at post 
        offices.
            (2) No unfair competition.--The assessment conducted under 
        paragraph (1) shall take into account the requirement under 
        section 404(a)(6)(A)(iii) of title 39, United States Code (as 
        added by subsection (a)), that the Postal Service, in providing 
        new nonpostal services, may not create unfair competition with 
        the private sector.

SEC. 304. 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) the date that is 120 days after the date of enactment 
        of this Act.
    (d) No Preemption of State, Local, or Tribal Laws Prohibiting 
Deliveries, Shipments, or Sales.--Nothing in this section, the 
amendments made by this section, or any regulation promulgated under 
this section or the amendments made by this section, shall be construed 
to preempt, supersede, or otherwise limit or restrict any State, local, 
or tribal law that prohibits or regulates the delivery, shipment, or 
sale 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)).

SEC. 305. CHIEF INNOVATION OFFICER; INNOVATION STRATEGY.

    (a) Chief Innovation Officer.--
            (1) In general.--Chapter 2 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 from among 
officers and employees of the Postal Service.
    ``(b) Qualifications.--The Chief Innovation Officer shall have 
proven expertise and a record of accomplishment in areas such as--
            ``(1) business process management;
            ``(2) the postal and shipping industry;
            ``(3) innovative product research and development;
            ``(4) brand marketing strategy; or
            ``(5) new and emerging technology, including communications 
        technology.
    ``(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 services authorized under section 404(a)(6) 
        that have the potential to improve the net financial position 
        of the Postal Service.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 2 of title 39, United States Code, is 
        amended by adding at the end the following:

``209. Chief Innovation Officer.''.
            (3) Deadline.--Not later than 90 days after the date of 
        enactment of this Act, the Postmaster General shall appoint a 
        Chief Innovation Officer under section 209 of title 39, United 
        States Code, as added by paragraph (1).
            (4) Existing resources.--The Postal Service shall fund the 
        office of the Chief Innovation Officer established under 
        section 209 of title 39, United States Code, as added by 
        paragraph (1), using existing resources.
    (b) Innovation Strategy.--
            (1) Initial report on innovation strategy.--
                    (A) In general.--Not later than 270 days 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 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 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. 306. STRATEGIC ADVISORY COMMISSION ON POSTAL SERVICE SOLVENCY, 
              SERVICE, AND INNOVATION.

    (a) Establishment.--
            (1) In general.--There is established in the executive 
        branch a Strategic Advisory Commission on Postal Service 
        Solvency, Service, 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''), any Executive Committee established under section 
        202(i) of title 39, United States Code, the Postmaster General, 
        or any other officer or employee of the Postal Service.
    (b) Purpose.--The purpose of the Advisory Commission is to--
            (1) provide strategic guidance to the President, Congress, 
        the Board of Governors, the Postmaster General, and the Chief 
        Innovation Officer on enhancing the long-term solvency of the 
        Postal Service; and
            (2) foster innovative thinking to address the challenges 
        facing the Postal Service without unfairly competing with the 
        private sector.
    (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 have--
                    (A) recognized and significant experience in such 
                fields as business, technology, and public 
                administration;
                    (B) a documented record of innovative thinking;
                    (C) familiarity with new and emerging technologies; 
                and
                    (D) experience with revitalizing organizations, 
                corporations, or communities 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 60 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 services that the Postal Service 
                        could offer;
                            (iv) the comparative postal practices of 
                        other countries, including innovative products 
                        and services that postal services in other 
                        countries have offered, including services that 
                        respond to the increasing use of electronic 
                        means of communication, and different 
                        approaches to mail delivery, including rural 
                        delivery, that other countries have adopted;
                            (v) the governance and organizational and 
                        management structures of the Postal Service;
                            (vi) efforts by the Postal Service to 
                        recruit and retain a workforce, particularly in 
                        rural areas, capable of meeting the strategic 
                        needs of the Postal Service regarding 
                        innovation, nationwide service standards, and 
                        nationwide delivery schedules;
                            (vii) efforts by the Postal Service to 
                        protect and enhance the provision of postal 
                        services to rural areas of the United States, 
                        including additional actions or strategies 
                        needed to meet service standards in rural 
                        areas;
                            (viii) the morale of the workforce of the 
                        Postal Service, including strategies to improve 
                        morale; and
                            (ix) technology that could enhance and 
                        protect postal services; and
                    (B) submit the report required under subsection 
                (h).
            (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) Applicability of Laws.--The Federal Advisory Committee Act (5 
U.S.C. App.) and section 552a of title 5, United States Code (commonly 
known as the ``Privacy Act of 1974''), shall apply to the Advisory 
Commission.
    (f) Assistance From Federal Agencies.--
            (1) Postal service.--The Postmaster General shall provide 
        to the Advisory Commission administrative support and other 
        services for the performance of the functions of the Advisory 
        Commission.
            (2) Other departments and agencies.--An agency of the 
        Federal Government may provide to the Advisory Committee such 
        services, funds, facilities, staff, and other support services 
        that the agency determines to be advisable or is otherwise 
        authorized under law.
    (g) 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.
    (h) Strategic Blueprint for Long-Term Solvency.--
            (1) In general.--Not later than 270 days 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, including products 
                and services targeting rural areas;
                    (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;
                    (H) a strategy for ensuring that the Postal Service 
                has a sufficient workforce to meet all of its needs and 
                comply with applicable legal requirements; and
                    (I) recommendations for any legislative changes 
                necessary to implement the strategic blueprint 
                described in this paragraph.
    (i) 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 interagency 
                        agreements.--The study under clause (i) shall 
                        include consideration of the advisability of 
                        the Postal Service entering into an interagency 
                        agreement with Federal agencies responsible for 
                        providing services to the general public.
                    (B) Findings.--The Advisory Commission shall--
                            (i) not later than 270 days 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 (h).
            (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 nonbinding 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.
    (j) Termination of the Commission.--The Advisory Commission shall 
terminate on the earlier of--
            (1) the date that is 60 days after the later of--
                    (A) the date on which the Advisory Commission 
                submits the report on the strategic blueprint for long-
                term solvency under subsection (h); or
                    (B) the date on which the Advisory Commission 
                submits the findings on interagency agreements for post 
                offices under subsection (i); or
            (2) the date that is 1 year after the date of enactment of 
        this Act.

TITLE IV--POSTAL SERVICE CUSTOMER SERVICE, TRANSPARENCY, AND REGULATION

SEC. 401. CUSTOMER SERVICE STUDY AND REPORT.

    (a) Study.--The Board of Governors of the Postal Service shall 
conduct a study on the customer service of the Postal Service, 
including--
            (1) the training of customer-facing employees of the Postal 
        Service at facilities operated by the Postal Service, the 
        primary function of which is to provide retail postal services; 
        and
            (2) the flexibility of the facilities described in 
        paragraph (1) to allow for the cross-training of customer-
        facing employees of the Postal Service during peak hours.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Board of Governors of the Postal Service shall submit to 
Congress a report on the study required under subsection (a), 
including--
            (1) the current methods for measuring the customer service 
        of the Postal Service;
            (2) recent customer service performance; and
            (3) strategies to enhance customer service.

SEC. 402. POSTAL SERVICE RESULTS AND TERMS.

    (a) In General.--Chapter 36 of title 39, United States Code, is 
amended by adding after section 3661 the following:
``Sec. 3661A. Postal Service transparency
    ``(a) Postal Service Terms.--The Postal Service shall develop and 
regularly update a more customer friendly publication of Postal Service 
terms, abbreviations, and acronyms, which shall be made publicly 
available on the Postal Service website.
    ``(b) Centralized Hub To View Delivery and Retail Performance 
Standards and Results.--Not later than 12 months after the date of 
enactment of this section, the Postal Service shall create a more 
centralized, easily accessible hub for viewing all delivery and retail 
performance standards and performance results. Performance trending 
results for a period of not less than 24 months shall be made available 
on the hub.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 36 of title 39, United States Code, is amended by adding after 
the item relating to section 3661 the following:

``3661A. Postal Service transparency.''.

SEC. 403. ANNUAL REPORT ON UNITED STATES MAILING INDUSTRY.

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

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

SEC. 404. POSTAL REGULATORY COMMISSION.

    (a) Commissioners.--Section 502 of title 39, United States Code, is 
amended--
            (1) in subsection (c), by striking ``subsection (f)'' and 
        inserting ``subsections (f) and (g)''; and
            (2) by adding at the end the following:
    ``(g) The Commissioners may serve for not more than 2 full 
terms.''.
    (b) Administration.--Section 504 of title 39, United States Code, 
is amended--
            (1) in subsection (a), in the second sentence--
                    (A) by striking ``The Chairman'' and inserting 
                ``Subject to the policies adopted under subsection (b), 
                the Chairman''; and
                    (B) by striking ``all the executive'' and inserting 
                ``the day-to-day executive'';
            (2) by amending subsection (b) to read as follows:
    ``(b)(1) The Chairman shall be governed by the policies adopted by 
the Commission under paragraph (2)(A) in carrying out any of the 
functions under this section.
    ``(2) The Commission shall adopt, by a vote of the majority of the 
members of the Commission, policies that shall govern all functions of 
the Commission, including the finances, operations, and administration 
of the Commission.
    ``(3) The Commission shall review and, if necessary, revise the 
policies adopted under paragraph (2) not less frequently than every 4 
years. Adoption of revised policies, or re-adoption of existing 
policies, shall be by a vote of the majority of the members of the 
Commission.''; and
            (3) in subsection (c), by striking ``The Chairman'' and 
        inserting ``Subject to the policies adopted under subsection 
        (b), the Chairman''.

SEC. 405. INSPECTOR GENERAL OF THE UNITED STATES POSTAL SERVICE AND THE 
              POSTAL REGULATORY COMMISSION.

    (a) Appointment of Inspector General of the United States Postal 
Service and the Postal Regulatory Commission by President.--Section 8G 
of the Inspector General Act of 1978 (5 U.S.C. App.) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2), by striking ``the United 
                States International Trade Commission, the Postal 
                Regulatory Commission, and the United States Postal 
                Service'' and inserting ``the United States 
                International Trade Commission, and the United States 
                Postal Service and the Postal Regulatory Commission''; 
                and
                    (B) in paragraph (4), by striking subparagraph (B) 
                and inserting the following:
                    ``(B) with respect to the United States Postal 
                Service and the Postal Regulatory Commission, such 
                term, for purposes of oversight of--
                            ``(i) the United States Postal Service, 
                        means the Governors (as defined in section 
                        102(3) of title 39, United States Code); and
                            ``(ii) the Postal Regulatory Commission, 
                        means the Chairman of the Postal Regulatory 
                        Commission;'';
            (2) in subsection (d)(1), by inserting ``or subsection 
        (f)(3)'' after ``Except as provided in paragraph (2)''; and
            (3) in subsection (f)--
                    (A) by striking paragraph (1) and inserting the 
                following:
    ``(1)(A) There is established in the United States Postal Service 
the Office of the Inspector General of the United States Postal Service 
and the Postal Regulatory Commission.
    ``(B) There shall be at the head of the Office of the Inspector 
General of the United States Postal Service and the Postal Regulatory 
Commission an Inspector General (referred to in this subsection as the 
`Inspector General') who shall be appointed by the President, by and 
with the advice and consent of the Senate, without regard to political 
affiliation and solely on the basis of integrity and demonstrated 
ability in accounting, auditing, financial analysis, law, management 
analysis, public administration, or investigations.
    ``(C) The Inspector General may be removed from office by the 
President. If the Inspector General is removed from office or is 
transferred to another position or location within the United States 
Postal Service, the President shall communicate in writing the reasons 
for any such removal or transfer to both Houses of Congress, not later 
than 30 days before the removal or transfer. Nothing in this 
subparagraph shall prohibit a personnel action otherwise authorized by 
law, other than transfer or removal.
    ``(D) For the purposes of section 7324 of title 5, United States 
Code, the Inspector General shall not be considered to be an employee 
who determines policies to be pursued by the United States in the 
nationwide administration of Federal laws.
    ``(E) The Inspector General shall have all of the authorities and 
responsibilities provided by this Act with respect to the Postal 
Regulatory Commission, as if the Postal Regulatory Commission were part 
of the United States Postal Service.'';
                    (B) in paragraph (2), by striking ``of the United 
                States Postal Service (hereinafter in this subsection 
                referred to as the `Inspector General')'';
                    (C) in paragraph (3)--
                            (i) in subparagraph (A)--
                                    (I) in clause (i), in the matter 
                                preceding subclause (I), by inserting 
                                ``relating to the United States Postal 
                                Service'' before ``which require access 
                                to sensitive information''; and
                                    (II) in clause (iii), by striking 
                                ``Committee on Governmental Affairs of 
                                the Senate'' and inserting ``Committee 
                                on Homeland Security and Governmental 
                                Affairs of the Senate'';
                            (ii) in subparagraph (B)(i), by inserting 
                        ``and the Postal Regulatory Commission'' after 
                        ``United States Postal Service''; and
                            (iii) in subparagraph (C), by striking 
                        ``Committee on Governmental Affairs of the 
                        Senate'' and inserting ``Committee on Homeland 
                        Security and Governmental Affairs of the 
                        Senate'';
                    (D) in paragraph (4), by adding at the end the 
                following: ``Nothing in this paragraph may be invoked 
                by the United States Postal Service to restrict or 
                limit any audit or investigation that the Inspector 
                General considers appropriate.''; and
                    (E) in paragraph (6), by inserting ``and the Postal 
                Regulatory Commission'' after ``United States Postal 
                Service''.
    (b) Interim Power of Inspector General of the United States Postal 
Service.--During the period beginning on the date of enactment of this 
Act and ending on the date on which the first individual is appointed 
as Inspector General of the United States Postal Service and the Postal 
Regulatory Commission after the date of enactment of this Act, the 
Inspector General of the United States Postal Service shall have all of 
the authorities and responsibilities provided by the Inspector General 
Act of 1978 (5 U.S.C. App.) with respect to the Postal Regulatory 
Commission on the day before the date of enactment of this Act, as if 
the Postal Regulatory Commission were part of the United States Postal 
Service.
    (c) Transfer of Personnel.--
            (1) Office of the inspector general of the united states 
        postal service.--The personnel employed in the Office of the 
        Inspector General of the United States Postal Service are 
        transferred to the Office of the Inspector General of the 
        United States Postal Service and the Postal Regulatory 
        Commission.
            (2) Office of the inspector general of the postal 
        regulatory commission.--The personnel employed in the Office of 
        the Inspector General of the Postal Regulatory Commission may 
        be transferred to the other offices of the Postal Regulatory 
        Commission.
            (3) Modern service and performance standards.--Any 
        unobligated amounts made available to carry out the functions 
        of the Office of the Inspector General of the Postal Regulatory 
        Commission before the date of enactment of this Act shall be 
        used to establish and revise modern service standards and 
        record performance ratings under section 3691 of title 39, 
        United States Code, as added by section 205(a) of this Act.
            (4) Effect.--During the 1-year period beginning on the date 
        of enactment of this Act, any full-time or part-time employee 
        who, on the day before such date of enactment, was employed in 
        a permanent position in the Office of the Inspector General of 
        the Postal Regulatory Commission, shall not be separated or 
        reduced in grade or compensation because of the transfer under 
        an amendment made by this section.
    (d) Technical and Conforming Amendments.--
            (1) Title 39, united states code.--Title 39, United States 
        Code, is amended--
                    (A) in section 102(4), by striking ``section 202(e) 
                of this title'' and inserting ``section 8G(f)(1)(B) of 
                the Inspector General Act of 1978 (5 U.S.C. App.)'';
                    (B) in section 202, by striking subsection (e);
                    (C) in section 504, by striking subsection (h);
                    (D) in section 1001(b), in the first sentence, by 
                inserting ``, and section 8G(f)(1)(B) of the Inspector 
                General Act of 1978 (5 U.S.C. App.)'' after ``1001(c) 
                of this title'';
                    (E) in section 1003(b), by striking ``11(2)'' and 
                inserting ``12(2)'';
                    (F) in section 1005(a)(3), by inserting ``, and 
                section 8G(f)(1)(B) of the Inspector General Act of 
                1978 (5 U.S.C. App.)'' after ``1001(c) of this title'';
                    (G) in section 2009, by inserting ``and the Postal 
                Regulatory Commission'' after ``United States Postal 
                Service''; and
                    (H) in section 2011(h)(2)(D), by inserting ``and 
                the Postal Regulatory Commission'' after ``United 
                States Postal Service''.
            (2) Title 5, united states code.--Section 8153(c)(2)(C)(ii) 
        of title 5, United States Code, as added by section 512(a) of 
        this Act, is amended by striking ``Inspector General of the 
        United States Postal Service'' and inserting ``Inspector 
        General of the United States Postal Service and the Postal 
        Regulatory Commission''.
            (3) Omnibus consolidated appropriations act, 1997.--Section 
        662(d) of the Omnibus Consolidated Appropriations Act, 1997 (39 
        U.S.C. 2802 note) is amended--
                    (A) in paragraph (1)--
                            (i) in the paragraph heading, by inserting 
                        ``and the postal regulatory commission'' after 
                        ``Postal service'';
                            (ii) in subparagraph (A), by inserting 
                        ``and the Postal Regulatory Commission'' after 
                        ``Postal Service''; and
                            (iii) in subparagraph (B)(i), by inserting 
                        ``and the Postal Regulatory Commission'' after 
                        ``Postal Service''; and
                    (B) in the first sentence of paragraph (2), by 
                inserting ``and the Postal Regulatory Commission'' 
                after ``Postal Service''.
    (e) Savings Provisions.--
            (1) Suits.--The provisions of this Act shall not affect 
        suits commenced before the effective date of this Act, and in 
        all such suits, proceeding shall be had, appeals taken, and 
        judgments rendered in the same manner and with the same effect 
        as if this Act had not been enacted.
            (2) Nonabatement of actions.--No suit, action, or other 
        proceeding commenced by or against the Inspector General of the 
        United States Postal Service or the Inspector General of the 
        Postal Regulatory Commission, or by or against any individual 
        in the official capacity of such individual as an officer of 
        the Office of the Inspector General of the United States Postal 
        Service or the Office of the Inspector General of the Postal 
        Regulatory Commission shall abate by reason of the enactment of 
        this Act.
            (3) Continuance of suits.--If, before the effective date of 
        this Act, the Office of the Inspector General of the United 
        States Postal Service or the Office of the Inspector General of 
        the Postal Regulatory Commission or officer thereof in the 
        official capacity of such officer, is party to a suit, and 
        under this Act any function of the Office of the Inspector 
        General of the United States Postal Service or the Office of 
        the Inspector General of the Postal Regulatory Commission or 
        officer is transferred to the Inspector General of the United 
        States Postal Service and the Postal Regulatory Commission or 
        any other official of the Office of the Inspector General of 
        the United States Postal Service and the Postal Regulatory 
        Commission, then such suit shall be continued with the 
        Inspector General of the United States Postal Service and the 
        Postal Regulatory Commission or other appropriate official of 
        the Office of the Inspector General of the United States Postal 
        Service and the Postal Regulatory Commission substituted or 
        added as a party.
    (f) Applicability.--
            (1) In general.--Except with respect to the amendment made 
        by subsection (a)(1)(A) relating to the Postal Regulatory 
        Commission and the amendment made by subsection (d)(1)(C), the 
        amendments made by this section shall apply with respect to the 
        first individual appointed as Inspector General of the United 
        States Postal Service and the Postal Regulatory Commission 
        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 United 
        States Postal Service on the date of enactment of this Act.
    (g) References in This Act to the Inspector General of the United 
States Postal Service.--On and after the date on which the first 
individual is appointed as Inspector General of the United States 
Postal Service and the Postal Regulatory Commission after the date of 
enactment of this Act, each reference in sections 107(b), 203(c)(1), 
303(d)(1), 406, and 408 of this Act to the Inspector General of the 
United States Postal Service shall be deemed to be a reference to the 
Inspector General of the United States Postal Service and the Postal 
Regulatory Commission.
    (h) Resources for Waste, Fraud, and Abuse Investigations.--
            (1) In general.--Chapter 4 of title 39, United States Code, 
        is amended by adding at the end the following:
``Sec. 417. Waste, fraud, and abuse investigations
    ``The Postal Service may transfer such resources to the Inspector 
General for waste, fraud, and abuse investigations as the Postal 
Service determines necessary.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 4 of title 39, United States Code, is 
        amended by adding at the end the following:

``417. Waste, fraud, and abuse investigations.''.

SEC. 406. GAO REPORT ON FRAGMENTATION, OVERLAP, AND DUPLICATION IN 
              FEDERAL PROGRAMS AND ACTIVITIES.

    The Comptroller General of the United States shall include in the 
annual report to Congress required under section 21 of the Joint 
Resolution entitled ``Joint Resolution increasing the statutory limit 
on the public debt'', approved February 12, 2010 (31 U.S.C. 712 note), 
that is applicable to the first year beginning after the date of 
enactment of this Act a review of the duplication of services and 
functions between the Office of the Inspector General of the United 
States Postal Service, the Postal Inspection Service, and any other 
Federal agency.

SEC. 407. POSTAL SERVICES FOR MARKET-DOMINANT PRODUCTS.

    (a) In General.--Chapter 36 of title 39, United States Code, is 
amended by striking section 3661 and inserting 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) Proposed Changes for Market-Dominant Products.--
            ``(1) Submission of proposal.--If the Postal Service 
        determines that there should be a change in the nature of 
        postal services relating to market-dominant products that will 
        generally affect service on a nationwide or substantially 
        nationwide basis, the Postal Service shall submit a proposal to 
        the Postal Regulatory Commission requesting an advisory opinion 
        on the change.
            ``(2) Advisory opinion.--Upon receipt of a proposal under 
        paragraph (1), the Postal Regulatory Commission shall--
                    ``(A) provide notice and an opportunity for public 
                comment and a public hearing on the proposal; and
                    ``(B) issue an advisory opinion not later than--
                            ``(i) 90 days after the date on which the 
                        Postal Regulatory Commission receives the 
                        proposal; or
                            ``(ii) a date that the Postal Regulatory 
                        Commission and the Postal Service may determine 
                        jointly.
            ``(3) Response to opinion.--The Postal Service shall submit 
        to the President and to Congress a response to an advisory 
        opinion issued under paragraph (2) that includes--
                    ``(A) a statement of whether the Postal Service 
                plans to modify the proposal to address any concerns or 
                implement any recommendations made by the Commission; 
                and
                    ``(B) for any matter that the Postal Service 
                determines not to address and any recommendation that 
                the Postal Service determines not to implement, the 
                reasons for the determination.
            ``(4) Action on proposal.--The Postal Service may take 
        action regarding a proposal submitted under paragraph (1)--
                    ``(A) on or after the date on which the Postal 
                Service submits the response required under paragraph 
                (3);
                    ``(B) on or after a date that the Postal Regulatory 
                Commission and the Postal Service may determine 
                jointly; or
                    ``(C) after the date described in paragraph (2)(B), 
                if--
                            ``(i) the Postal Regulatory Commission 
                        fails to issue an advisory opinion on or before 
                        the date described in paragraph (2)(B); and
                            ``(ii) the action is not otherwise 
                        prohibited under Federal law.
            ``(5) Modification of timeline.--At any time, the Postal 
        Service and the Postal Regulatory Commission may jointly 
        redetermine a date determined under paragraph (2)(B)(ii) or 
        (4)(B).
    ``(c) Limitation.--
            ``(1) No changes for competitive products.--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.
            ``(2) Hybrid changes.--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.''.

SEC. 408. POSTAL INSPECTION SERVICE MAIL COVERS PROGRAM.

    (a) Assessment.--Not later than 12 months after the date of 
enactment of this Act, and annually thereafter, the Inspector General 
of the Postal Service shall conduct an assessment of the mail covers 
program of the United States Postal Inspection Service that includes--
            (1) a review of issues found in prior audits by the 
        Inspector General of the Postal Service that involve--
                    (A) mail cover approvals;
                    (B) the security of mail cover documents and 
                information;
                    (C) the handling of accountable documents; and
                    (D) compliance with mail cover procedures;
            (2) a validation of internal and external mail cover 
        request statistics provided by the United States Postal 
        Inspection Service;
            (3) recommendations to address deficiencies and improve the 
        mail covers program; and
            (4) consideration of any civil liberty and privacy issues 
        raised regarding the mail covers program.
    (b) Submission of Statistics.--Not later than November 1 of each 
year, the Chief Postal Inspector shall submit to the Inspector General 
of the Postal Service all statistics regarding the mail covers program 
of the United States Postal Inspection Service, including the number of 
external and internal requests, approvals, and processing time data.
    (c) Report.--The Inspector General of 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 an annual report that contains the 
findings of each assessment conducted under subsection (a).

SEC. 409. CONTRACT DISPUTES.

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

SEC. 410. CONTRACTING PROVISIONS.

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

                  ``CHAPTER 7--CONTRACTING PROVISIONS

``Sec.
``701. Definitions.
``702. Advocate for competition.
``703. Delegation of contracting authority.
``704. Posting of noncompetitive purchase requests for noncompetitive 
                            contracts.
``705. Review of ethical issues.
``706. Ethical restrictions on participation in certain contracting 
                            activity.
``707. Congressional oversight authority.
``Sec. 701. Definitions
    ``In this chapter--
            ``(1) the term `contracting officer' means an employee of a 
        covered postal entity who has authority to enter into a postal 
        contract;
            ``(2) the term `covered postal entity' means--
                    ``(A) the Postal Service; or
                    ``(B) the Postal Regulatory Commission;
            ``(3) the term `head of a covered postal entity' means--
                    ``(A) in the case of the Postal Service, the 
                Postmaster General; or
                    ``(B) in the case of the Postal Regulatory 
                Commission, the Chairman of the Postal Regulatory 
                Commission;
            ``(4) the term `postal contract' means any contract 
        (including any agreement or memorandum of understanding) 
        entered into by a covered postal entity for the procurement of 
        goods or services; and
            ``(5) the term `senior procurement executive' means the 
        senior procurement executive of a covered postal entity.
``Sec. 702. Advocate for competition
    ``(a) Establishment and Designation.--
            ``(1) Establishment.--There is established in each covered 
        postal entity an advocate for competition.
            ``(2) Designation.--The head of each covered postal entity 
        shall designate for the covered postal entity 1 or more 
        officers or employees (other than the senior procurement 
        executive) to serve as the advocate for competition.
    ``(b) Responsibilities.--The advocate for competition of each 
covered postal entity shall--
            ``(1) be responsible for promoting competition to the 
        maximum extent practicable consistent with obtaining best value 
        by promoting the acquisition of commercial items and 
        challenging barriers to competition;
            ``(2) review the procurement activities of the covered 
        postal entity; and
            ``(3) prepare and transmit to the head of each covered 
        postal entity, the senior procurement executive of each covered 
        postal entity, the Board of Governors, and Congress, an annual 
        report describing--
                    ``(A) the activities of the advocate under this 
                section;
                    ``(B) initiatives required to promote competition;
                    ``(C) barriers to competition that remain; and
                    ``(D) the number of waivers made by each covered 
                postal entity under section 704(c).
``Sec. 703. Delegation of contracting authority
    ``(a) In General.--
            ``(1) Policy.--Not later than 60 days after the date of 
        enactment of the Improving Postal Operations, Service, and 
        Transparency Act of 2015, the head of each covered postal 
        entity shall issue a policy on contracting officer delegations 
        of authority for the covered postal entity.
            ``(2) Contents.--The policy issued under paragraph (1) 
        shall require that--
                    ``(A) notwithstanding any delegation of authority 
                with respect to postal contracts, the ultimate 
                responsibility and accountability for the award and 
                administration of postal contracts resides with the 
                senior procurement executive; and
                    ``(B) a contracting officer shall maintain an 
                awareness of and engagement in the activities being 
                performed on postal contracts of which that officer has 
                cognizance, notwithstanding any delegation of authority 
                that may have been executed.
    ``(b) Posting of Delegations.--
            ``(1) In general.--The head of each covered postal entity 
        shall make any delegation of authority for postal contracts 
        outside the functional contracting unit readily available and 
        accessible on the website of the covered postal entity.
            ``(2) Effective date.--This paragraph shall apply to any 
        delegation of authority made on or after 30 days after the date 
        of enactment of the Improving Postal Operations, Service, and 
        Transparency Act of 2015.
``Sec. 704. Posting of noncompetitive purchase requests for 
              noncompetitive contracts
    ``(a) Posting Required.--
            ``(1) Postal regulatory commission.--The Postal Regulatory 
        Commission shall make the noncompetitive purchase request for 
        any noncompetitive award, including the rationale supporting 
        the noncompetitive award, publicly available on the website of 
        the Postal Regulatory Commission--
                    ``(A) not later than 14 days after the date of the 
                award of the noncompetitive contract; or
                    ``(B) not later than 30 days after the date of the 
                award of the noncompetitive contract, if the basis for 
                the award was a compelling business interest.
            ``(2) Postal service.--The Postal Service shall make the 
        noncompetitive purchase request for any noncompetitive award of 
        a postal contract valued at $250,000 or more, including the 
        rationale supporting the noncompetitive award, publicly 
        available on the website of the Postal Service--
                    ``(A) not later than 14 days after the date of the 
                award; or
                    ``(B) not later than 30 days after the date of the 
                award, if the basis for the award was a compelling 
                business interest.
            ``(3) Adjustments to the posting threshold for the postal 
        service.--
                    ``(A) Review and determination.--Not later than 
                January 31 of each year, the Postal Service shall--
                            ``(i) review the $250,000 threshold 
                        established under paragraph (2); and
                            ``(ii) based on any change in the Consumer 
                        Price Index for All Urban Consumers of the 
                        Department of Labor, determine whether an 
                        adjustment to the threshold shall be made.
                    ``(B) Amount of adjustments.--An adjustment under 
                subparagraph (A) shall be made in increments of $5,000. 
                If the Postal Service determines that a change in the 
                Consumer Price Index for a year would require an 
                adjustment in an amount that is less than $5,000, the 
                Postal Service may not make an adjustment to the 
                threshold for the year.
            ``(4) Effective date.--This subsection shall apply to any 
        noncompetitive contract awarded on or after the date that is 90 
        days after the date of enactment of the Improving Postal 
        Operations, Service, and Transparency Act of 2015.
    ``(b) Public Availability.--
            ``(1) In general.--Subject to paragraph (2), the 
        information required to be made publicly available by a covered 
        postal entity under subsection (a) shall be readily accessible 
        on the website of the covered postal entity.
            ``(2) Protection of proprietary information.--A covered 
        postal entity shall--
                    ``(A) carefully screen any description of the 
                rationale supporting a noncompetitive award required to 
                be made publicly available under subsection (a) to 
                determine whether the description includes proprietary 
                data (including any reference or citation to the 
                proprietary data) or security-related information; and
                    ``(B) remove any proprietary data or security-
                related information before making publicly available a 
                description of the rational supporting a noncompetitive 
                award.
    ``(c) Waivers.--
            ``(1) Waiver permitted.--If a covered postal entity 
        determines that making a noncompetitive purchase request 
        publicly available would risk placing the Postal Service at a 
        competitive disadvantage relative to a private sector 
        competitor, the senior procurement executive, in consultation 
        with the advocate for competition of the covered postal entity, 
        may waive the requirements under subsection (a).
            ``(2) Form and content of waiver.--
                    ``(A) Form.--A waiver under paragraph (1) shall be 
                in the form of a written determination placed in the 
                file of the contract to which the noncompetitive 
                purchase agreement relates.
                    ``(B) Content.--A waiver under paragraph (1) shall 
                include--
                            ``(i) a description of the risk associated 
                        with making the noncompetitive purchase request 
                        publicly available; and
                            ``(ii) a statement that redaction of 
                        sensitive information in the noncompetitive 
                        purchase request would not be sufficient to 
                        protect the Postal Service from being placed at 
                        a competitive disadvantage relative to a 
                        private sector competitor.
            ``(3) Delegation of waiver authority.--A covered postal 
        entity may not delegate the authority to approve a waiver under 
        paragraph (1) to any employee having less authority than the 
        senior procurement executive.
``Sec. 705. Review of ethical issues
    ``If a contracting officer identifies any ethical issues relating 
to a proposed contract and submits those issues and that proposed 
contract to the designated ethics official for the covered postal 
entity before the awarding of that contract, that ethics official 
shall--
            ``(1) review the proposed contract; and
            ``(2) advise the contracting officer on the appropriate 
        resolution of ethical issues.
``Sec. 706. Ethical restrictions on participation in certain 
              contracting activity
    ``(a) Definitions.--In this section--
            ``(1) the term `covered employee' means--
                    ``(A) a contracting officer; or
                    ``(B) any employee of a covered postal entity whose 
                decisionmaking affects a postal contract as determined 
                by regulations prescribed by the head of a covered 
                postal entity;
            ``(2) the term `covered relationship' means a covered 
        relationship described in section 2635.502(b)(1) of title 5, 
        Code of Federal Regulations, or any successor thereto; and
            ``(3) the term `final conviction' means a conviction, 
        whether entered on a verdict or plea, including a plea of nolo 
        contendere, for which a sentence has been imposed.
    ``(b) In General.--
            ``(1) Regulations.--The head of each covered postal entity 
        shall prescribe regulations that--
                    ``(A) require a covered employee to include in the 
                file of any noncompetitive purchase request for a 
                noncompetitive postal contract a written certification 
                that--
                            ``(i) discloses any covered relationship of 
                        the covered employee; and
                            ``(ii) the covered employee will not take 
                        any action with respect to the noncompetitive 
                        purchase request that affects the financial 
                        interests of a friend, relative, or person with 
                        whom the covered employee is affiliated in a 
                        nongovernmental capacity, or otherwise gives 
                        rise to an appearance of the use of public 
                        office for private gain, as described in 
                        section 2635.702 of title 5, Code of Federal 
                        Regulations, or any successor thereto;
                    ``(B) require a contracting officer to consult with 
                the ethics counsel for the covered postal entity 
                regarding any disclosure made by a covered employee 
                under subparagraph (A)(i), to determine whether 
                participation by the covered employee in the 
                noncompetitive purchase request would give rise to a 
                violation of part 2635 of title 5, Code of Federal 
                Regulations (commonly referred to as the `Standards of 
                Ethical Conduct for Employees of the Executive 
                Branch');
                    ``(C) require the ethics counsel for a covered 
                postal entity to review any disclosure made by a 
                contracting officer under subparagraph (A)(i) to 
                determine whether participation by the contracting 
                officer in the noncompetitive purchase request would 
                give rise to a violation of part 2635 of title 5, Code 
                of Federal Regulations (commonly referred to as the 
                `Standards of Ethical Conduct for Employees of the 
                Executive Branch'), or any successor thereto;
                    ``(D) under subsections (d) and (e) of section 
                2635.50 of title 5, Code of Federal Regulations, or any 
                successor thereto, require the ethics counsel for a 
                covered postal entity to--
                            ``(i) authorize a covered employee that 
                        makes a disclosure under subparagraph (A)(i) to 
                        participate in the noncompetitive postal 
                        contract; or
                            ``(ii) disqualify a covered employee that 
                        makes a disclosure under subparagraph (A)(i) 
                        from participating in the noncompetitive postal 
                        contract;
                    ``(E) require a contractor to timely disclose to 
                the contracting officer in a bid, solicitation, award, 
                or performance of a postal contract any conflict of 
                interest with a covered employee; and
                    ``(F) include authority for the head of the covered 
                postal entity to a grant a waiver or otherwise mitigate 
                any organizational or personal conflict of interest, if 
                the head of the covered postal entity determines that 
                the waiver or mitigation is in the best interests of 
                the Postal Service.
            ``(2) Posting of waivers.--Not later than 30 days after the 
        head of a covered postal entity grants a waiver described in 
        paragraph (1)(F), the head of the covered postal entity shall 
        make the waiver publicly available on the website of the 
        covered postal entity.
    ``(c) Contract Voidance and Recovery.--
            ``(1) Unlawful conduct.--In any case in which there is a 
        final conviction for a violation of any provision of chapter 11 
        of title 18 relating to a postal contract, the head of a 
        covered postal entity may--
                    ``(A) void that contract; and
                    ``(B) recover the amounts expended and property 
                transferred by the covered postal entity under that 
                contract.
            ``(2) Obtaining or disclosing procurement information.--
                    ``(A) In general.--In any case where a contractor 
                under a postal contract fails to timely disclose a 
                conflict of interest to the appropriate contracting 
                officer as required under the regulations promulgated 
                under subsection (b)(1)(D), the head of a covered 
                postal entity may--
                            ``(i) void that contract; and
                            ``(ii) recover the amounts expended and 
                        property transferred by the covered postal 
                        entity under that contract.
                    ``(B) Conviction or administrative determination.--
                A case described under subparagraph (A) is any case in 
                which--
                            ``(i) there is a final conviction for an 
                        offense punishable under section 27(e) of the 
                        Office of Federal Procurement Policy Act (41 
                        U.S.C. 423(e)); or
                            ``(ii) the head of a covered postal entity 
                        determines, based upon a preponderance of the 
                        evidence, that the contractor or someone acting 
                        for the contractor has engaged in conduct 
                        constituting an offense punishable under 
                        section 27(e) of that Act.
``Sec. 707. Congressional oversight authority
    ``The Postal Service may not enter into any contract that restricts 
the ability of Congress to exercise oversight authority.''.
    (b) Technical and Conforming Amendment.--The table of chapters for 
part I of title 39, United States Code, is amended by adding at the end 
the following:

``7.  Contracting Provisions................................     701''.

              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 2015''.
    (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 ``; and''; 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)).''.
            (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);
                    (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 for existing recipients and recipients 
        with exempt disability condition or facing financial 
        hardship.--Paragraph (1) shall not apply to a claim for total 
        disability by an employee--
                    ``(A) resulting from personal injury sustained 
                before the date of enactment of the Workers' 
                Compensation Reform Act of 2015; or
                    ``(B) who 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).''; and
                    (D) in subsection (c), as so redesignated, by 
                inserting ``Prima Facie Permanent Total Disability.--'' 
                before ``The loss''.
            (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;
                    (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 for existing recipients and recipients 
        facing financial hardship.--Paragraph (1) shall not apply to a 
        claim for partial disability by an employee--
                    ``(A) resulting from personal injury sustained 
                before the date of enactment of the Workers' 
                Compensation Reform Act of 2015; or
                    ``(B) who 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).'';
                    (D) in subsection (c), as so redesignated, by 
                inserting ``Reporting.--'' before ``The Secretary of 
                Labor''; and
                    (E) in subsection (d), as so redesignated, by 
                inserting ``Exclusions.--'' before ``A partially 
                disabled employee''.

SEC. 503. AUGMENTED COMPENSATION FOR DEPENDENTS.

    (a) In General.--Section 8110 is amended--
            (1) in subsection (a), by inserting ``Definition.--'' 
        before ``For the purpose'';
            (2) by redesignating subsection (b) as subsection (c);
            (3) by inserting after subsection (a) the following:
    ``(b) Termination of Augmented Compensation.--
            ``(1) In general.--Subject to paragraph (2), augmented 
        compensation for dependents under subsection (c) shall not be 
        provided.
            ``(2) Exception.--Augmented compensation shall be provided 
        in accordance with subsection (c) to an employee for a claim 
        for disability (including a claim for a permanent disability 
        described in section 8107(a)) by an employee resulting from 
        personal injury sustained before the date of enactment of the 
        Workers' Compensation Reform Act of 2015.''; and
            (4) in subsection (c), as so redesignated, by inserting 
        ``Augmented Compensation for Existing Claims.--'' before ``A 
        disabled employee''.
    (b) Maximum and Minimum Monthly Payments.--Section 8112 is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``Except as provided by section 
                8138'' and inserting ``In General.--Except as provided 
                by subsections (b) and (c) and 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.--With respect to claims for disability by an 
employee resulting from personal injury sustained before the date of 
enactment of the Workers' Compensation Reform Act of 2015--
            ``(1) 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
            ``(2) subsection (a) shall be applied by substituting `75 
        percent' for `66\2/3\ percent' each place it appears.''; and
            (4) in subsection (c), as so redesignated--
                    (A) by inserting ``Exclusion.--'' before ``The 
                provisions''; and
                    (B) by striking ``subsection (a)'' and inserting 
                ``subsections (a) and (b)''.
    (c) Death Benefits Generally.--Section 8133 is amended--
            (1) in subsection (a)--
                    (A) by inserting ``In General.--'' before ``If 
                death results''; and
                    (B) by striking ``75 percent'' each place it 
                appears and inserting ``66\2/3\ percent (except as 
                provided in subsection (g))'';
            (2) in subsection (b), by inserting ``Period of 
        Compensation.--'' before ``The compensation payable'';
            (3) in subsection (c), by inserting ``Compensation of 
        Remaining Individuals.--'' before ``On the cessation'';
            (4) in subsection (d), by inserting ``Multiple Classes of 
        Individuals.--'' before ``When there are two or more'';
            (5) in subsection (e)--
                    (A) by inserting ``Computation.--'' before ``In 
                computing compensation''; and
                    (B) in paragraph (2), by striking ``75 percent'' 
                and inserting ``66\2/3\ percent (except as provided in 
                subsection (g))'';
            (6) in subsection (f), by inserting ``Other Costs.--'' 
        before ``Notwithstanding''; and
            (7) by adding at the end the following:
    ``(g) Existing Claims.--If the death occurred before the date of 
enactment of the Workers' Compensation Reform Act of 2015, 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 (a), by inserting ``In General.--'' 
        before ``Subject to the provisions'';
            (2) in subsection (b)--
                    (A) by inserting ``Administration.--'' before ``In 
                administering''; and
                    (B) in paragraph (2)(B) by striking ``75 percent'' 
                and inserting ``66\2/3\ percent (except as provided in 
                subsection (c))'';
            (3) by redesignating subsection (c) as subsection (d);
            (4) by inserting after subsection (b) the following:
    ``(c) Existing Claims.--If the death occurred before the date of 
enactment of the Workers' Compensation Reform Act of 2015, subsection 
(b)(2)(B) shall be applied by substituting `75 percent' for `66\2/3\ 
percent'.''; and
            (5) in subsection (d), as so redesignated, by inserting 
        ``Coordination With Air Force.--'' before ``The Secretary of 
        Labor''.

SEC. 504. SCHEDULE COMPENSATION PAYMENTS.

    Section 8107 is amended--
            (1) in subsection (a)--
                    (A) by inserting ``In General.--'' before ``If 
                there is''; and
                    (B) by striking ``at the rate of 66\2/3\ percent of 
                his monthly pay'' and inserting ``at the rate specified 
                under subsection (d)'';
            (2) in subsection (b), by inserting ``Other Compensation.--
        '' before ``With respect to'';
            (3) in subsection (c), by inserting ``Schedule.--'' before 
        ``The compensation schedule''; and
            (4) 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 2015 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 2015, 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 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).
            ``(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 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).''.

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 (b) 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--
            (1) in subsection (a), by inserting ``In General.--'' 
        before ``An employee shall'';
            (2) in subsection (b), by inserting ``Expenses.--'' before 
        ``An employee is entitled'';
            (3) in subsection (c), by inserting ``Fees.--'' before 
        ``The Secretary shall'';
            (4) in subsection (d), by inserting ``Refusal or 
        Obstruction.--'' before ``If an employee''; and
            (5) 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 a covered 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 covered 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 covered 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 covered employee under this subsection 
                        is necessary; and
                            ``(iii) copies of the materials relating to 
                        the covered 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 a 
                covered employee has undergone an initial physical 
                examination under paragraph (4)(B)(i), the Secretary 
                shall promptly require the physical examination of the 
                covered 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 a covered 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 covered 
                                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 (a), by inserting ``In General.--'' 
        before ``The United States'';
            (3) in subsection (b)--
                    (A) by inserting ``Furnishing of Continuation of 
                Pay.--'' before ``Continuation of pay''; and
                    (B) in paragraph (1), by striking ``section 
                8117(b)'' and inserting ``section 8117'';
            (4) by striking subsection (c);
            (5) by redesignating subsection (d) as subsections (c);
            (6) in subsection (c), as so redesignated, by inserting 
        ``Denial.--'' before ``If a claim''; and
            (7) in subsection (e), by inserting ``Treatment of 
        Payments.--'' before ``Payments under this section''.
    (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--
            (1) in subsection (a), by inserting ``In General.--'' 
        before ``While an employee'';
            (2) in subsection (b), by inserting ``Election.--'' before 
        ``An individual entitled'';
            (3) in subsection (c), by inserting ``Liability.--'' before 
        ``The liability of the United States'';
            (4) in subsection (d), by inserting ``Exceptions.--'' 
        before ``Notwithstanding''; and
            (5) 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, 
        subchapter II of chapter 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, subchapter II of chapter 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)--
                    (A) in the matter preceding paragraph (1)--
                            (i) by inserting ``In General.--'' before 
                        ``If an injury''; and
                            (ii) by inserting ``continuation of pay 
                        or'' before ``compensation'';
                    (B) in paragraph (1), by striking ``he'' each place 
                it appears and inserting ``the beneficiary''; and
                    (C) in paragraph (2), by striking ``his own name'' 
                and inserting ``the name of the beneficiary'';
            (2) in subsection (b)--
                    (A) by inserting ``Refusal.--'' before ``A 
                beneficiary'';
                    (B) by striking ``his own name'' and inserting 
                ``the name of the beneficiary''; and
                    (C) by inserting ``continuation of pay or'' before 
                ``compensation'';
            (3) in subsection (c)--
                    (A) by inserting ``Prosecution and Compromise.--'' 
                before ``The Secretary may'';
                    (B) by striking ``he shall'' and inserting ``the 
                Secretary shall'';
                    (C) by inserting ``continuation of pay or'' before 
                ``compensation already paid''; and
                    (D) by inserting ``continuation of pay or'' before 
                ``compensation payable''; and
            (4) in subsection (d), by inserting ``Panama Canal 
        Company.--'' before ``If an injury''.
    (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(f) 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 2015, 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)(5) 
        of this Act, by striking ``subsection (a)'' and inserting 
        ``subsection (a) or (d)''; and
            (3) by 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 (E) 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; and
            (2) in section 8139, by inserting ``under this subchapter'' 
        after ``Compensation awarded''.

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.
                                 <all>