[Congressional Record Volume 158, Number 55 (Tuesday, April 17, 2012)]
[Senate]
[Pages S2357-S2370]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    21ST CENTURY POSTAL SERVICE ACT

  Mr. REID. Would the Chair report the bill, please.
  The PRESIDING OFFICER. The clerk will report the pending business.
  The assistant bill clerk read as follows:

       A bill (S. 1789) to improve, sustain, and transform the 
     United States Postal Service.

  There being no objection, the Senate proceeded to consider the bill 
which had been reported from the Committee on Homeland Security and 
Governmental Affairs, with an amendment to strike all after the 
enacting clause and insert in lieu thereof the following:

     SECTION 1. SHORT TITLE.

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

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

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

                   TITLE I--POSTAL WORKFORCE MATTERS

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

                TITLE II--POSTAL SERVICES AND OPERATIONS

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

             TITLE III--FEDERAL EMPLOYEES' COMPENSATION ACT

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

                        TITLE IV--OTHER MATTERS

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

     SEC. 3. DEFINITIONS.

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

                   TITLE I--POSTAL WORKFORCE MATTERS

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

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

     SEC. 102. ADDITIONAL SERVICE CREDIT.

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

[[Page S2358]]

       ``(B) An employee who receives additional creditable 
     service under this paragraph may not receive a voluntary 
     separation incentive payment from the United States Postal 
     Service.
       ``(2)(A) Subject to subparagraph (B), and notwithstanding 
     any other provision of law, no deduction, deposit, or 
     contribution shall be required for service credited under 
     this subsection.
       ``(B) The actuarial present value of the additional 
     liability of the United States Postal Service to the Fund 
     resulting from this subsection shall be included in the 
     amount calculated under section 8423(b)(1)(B).''.

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

       (a) Contributions.--Section 8906(g)(2)(A) of title 5, 
     United States Code, is amended by striking ``through 
     September 30, 2016, be paid by the United States Postal 
     Service, and thereafter shall'' and inserting ``after the 
     date of enactment of the 21st Century Postal Service Act of 
     2012''.
       (b) Postal Service Retiree Health Benefits Fund.--Section 
     8909a of title 5, United States Code, is amended--
       (1) in subsection (d)--
       (A) in paragraph (2)(B)--
       (i) by striking ``2017'' and inserting ``2012''; and
       (ii) by inserting after ``later, of'' the following: ``80 
     percent of''; and
       (B) in paragraph (3)--
       (i) in subparagraph (A)--

       (I) in clause (iii), by adding ``and'' at the end;
       (II) in clause (iv), by striking the semicolon at the end 
     and inserting a period; and
       (III) by striking clauses (v) through (x); and

       (ii) in subparagraph (B), by striking ``2017'' and 
     inserting ``2012''; and
       (2) by adding at the end the following:
       ``(e) Subsections (a) through (d) shall be subject to 
     section 104 of the 21st Century Postal Service Act of 
     2012.''.

     SEC. 104. POSTAL SERVICE HEALTH BENEFITS PROGRAM.

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

     SEC. 105. ARBITRATION; LABOR DISPUTES.

       Section 1207(c)(2) of title 39, United States Code, is 
     amended--
       (1) by inserting ``(A)'' after ``(2)'';
       (2) by striking the last sentence and inserting ``The 
     arbitration board shall render a decision not later than 45 
     days after the date of its appointment.''; and
       (3) by adding at the end the following:
       ``(B) In rendering a decision under this paragraph, the 
     arbitration board shall consider such relevant factors as--
       ``(i) the financial condition of the Postal Service;
       ``(ii) the requirements relating to pay and compensation 
     comparability under section 1003(a); and
       ``(iii) the policies of this title.''.

                TITLE II--POSTAL SERVICES AND OPERATIONS

     SEC. 201. POSTAL FACILITIES.

       Section 404 of title 39, United States Code, is amended by 
     adding after subsection (e) the following:
       ``(f) Closing or Consolidation of Certain Postal 
     Facilities.--
       ``(1) Postal facility.--In this subsection, the term 
     `postal facility'--
       ``(A) means any Postal Service facility that is primarily 
     involved in the preparation, dispatch, or other physical 
     processing of mail; and
       ``(B) does not include--
       ``(i) any post office, station, or branch; or
       ``(ii) any facility used only for administrative functions.
       ``(2) Area mail processing study.--
       ``(A) New area mail processing studies.--After the date of 
     enactment of this subsection, before making a determination 
     under subsection (a)(3) as to the necessity for the closing 
     or consolidation of any postal facility, the Postal Service 
     shall--
       ``(i) conduct an area mail processing study relating to 
     that postal facility that includes a plan to reduce the 
     capacity of the postal facility, but not close the postal 
     facility;
       ``(ii) publish the study on the Postal Service website; and
       ``(iii) publish a notice that the study is complete and 
     available to the public, including on the Postal Service 
     website.
       ``(B) Completed or ongoing area mail processing studies.--
       ``(i) In general.--In the case of a postal facility 
     described in clause (ii), the Postal Service shall--

       ``(I) consider a plan to reduce the capacity of the postal 
     facility, but not close the postal facility; and
       ``(II) publish the results of the consideration under 
     subclause (I) with or as an amendment to the area mail 
     processing study relating to the postal facility.

       ``(ii) Postal facilities.--A postal facility described in 
     this clause is a postal facility for which, on or before the 
     date of enactment of this subsection--

       ``(I) an area mail processing study that does not include a 
     plan to reduce the capacity of the postal facility, but not 
     close the facility, has been completed or is in progress; and
       ``(II) a determination as to the necessity for the closing 
     or consolidation of the postal facility has not been made.

       ``(3) Notice, public comment, and public hearing.--If the 
     Postal Service makes a determination under subsection (a)(3) 
     to close or consolidate a postal facility, the Postal Service 
     shall--
       ``(A) provide notice of the determination to--
       ``(i) Congress; and
       ``(ii) the Postal Regulatory Commission;
       ``(B) provide adequate public notice of the intention of 
     the Postal Service to close or consolidate the postal 
     facility;
       ``(C) ensure that interested persons have an opportunity to 
     submit public comments during a 45-day period after the 
     notice of intention is provided under subparagraph (B);
       ``(D) before the 45-day period described in subparagraph 
     (C), provide for public notice of that opportunity by--
       ``(i) publication on the Postal Service website;
       ``(ii) posting at the affected postal facility; and
       ``(iii) advertising the date and location of the public 
     community meeting under subparagraph (E); and
       ``(E) during the 45-day period described in subparagraph 
     (C), conduct a public community meeting that provides an 
     opportunity for public comments to be submitted verbally or 
     in writing.
       ``(4) Further considerations.--Not earlier than 30 days 
     after the end of the 45-day period for public comment under 
     paragraph (3), the Postal Service, in making a determination 
     whether or not to close or consolidate a postal facility, 
     shall consider--
       ``(A) the views presented by interested persons solicited 
     under paragraph (3);
       ``(B) the effect of the closing or consolidation on the 
     affected community, including any disproportionate impact the 
     closure or consolidation may have on a State, region, or 
     locality;
       ``(C) the effect of the closing or consolidation on the 
     travel times and distances for affected customers to access 
     services under the proposed closing or consolidation;
       ``(D) the effect of the closing or consolidation on 
     delivery times for all classes of mail;
       ``(E) any characteristics of certain geographical areas, 
     such as remoteness, broadband internet availability, and 
     weather-related obstacles to using alternative facilities, 
     that may result in the closing or consolidation having a 
     unique effect; and
       ``(F) any other factor the Postal Service determines is 
     necessary.

[[Page S2359]]

       ``(5) Justification statement.--Before the date on which 
     the Postal Service closes or consolidates a postal facility, 
     the Postal Service shall post on the Postal Service website a 
     closure or consolidation justification statement that 
     includes--
       ``(A) a response to all public comments received with 
     respect to the considerations described under paragraph (4);
       ``(B) a description of the considerations made by the 
     Postal Service under paragraph (4); and
       ``(C) the actions that will be taken by the Postal Service 
     to mitigate any negative effects identified under paragraph 
     (4).
       ``(6) Closing or consolidation of postal facilities.--
       ``(A) In general.--Not earlier than the 15 days after 
     posting and publishing the final determination and the 
     justification statement under paragraph (6) with respect to a 
     postal facility, the Postal Service may close or consolidate 
     the postal facility.
       ``(B) Alternative intake of mail.--If the Postal Service 
     closes or consolidates a postal facility under subparagraph 
     (A), the Postal Service shall make reasonable efforts to 
     ensure continued mail receipt from customers of the closed or 
     consolidated postal facility at the same location or at 
     another appropriate location in close geographic proximity to 
     the closed or consolidated postal facility.
       ``(7) Postal service website.--For purposes of any notice 
     required to be published on the Postal Service website under 
     this subsection, the Postal Service shall ensure that the 
     Postal Service website--
       ``(A) is updated routinely; and
       ``(B) provides any person, at the option of the person, the 
     opportunity to receive relevant updates by electronic mail.
       ``(8) Protection of certain information.--Nothing in this 
     subsection may be construed to require the Postal Service to 
     disclose--
       ``(A) any proprietary data, including any reference or 
     citation to proprietary data; and
       ``(B) any information relating to the security of a postal 
     facility.''.

     SEC. 202. ADDITIONAL POSTAL SERVICE PLANNING.

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

     SEC. 203. AREA AND DISTRICT OFFICE STRUCTURE.

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

     SEC. 204. POST OFFICES; RETAIL SERVICE STANDARDS.

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

     SEC. 205. CONVERSION OF DOOR DELIVERY POINTS.

       (a) In General.--Subchapter VII of chapter 36 of title 39, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec.  3692. Conversion of door delivery points

       ``(a) Definitions.--In this section, the following 
     definitions shall apply:
       ``(1) Centralized delivery point.--The term `centralized 
     delivery point' means a group or cluster of mail receptacles 
     at 1 delivery point that is within reasonable proximity of 
     the street address associated with the delivery point.
       ``(2) Curbline delivery point.--The term `curbline delivery 
     point' means a delivery point that is--
       ``(A) adjacent to the street address associated with the 
     delivery point; and
       ``(B) accessible by vehicle on a street that is not a 
     private driveway.
       ``(3) Door delivery point.--The term `door delivery point' 
     means a delivery point at a door of the structure at a street 
     address.
       ``(4) Sidewalk delivery point.--The term `sidewalk delivery 
     point' means a delivery point on a sidewalk adjacent to the 
     street address associated with the delivery point.
       ``(b) Conversion.--Except as provided in subsection (c), 
     and in accordance with the profitability plan required under 
     section 401 and standards established by the Postal Service, 
     the Postal Service is authorized to, to the maximum extent 
     feasible, convert door delivery points to--
       ``(1) curbline delivery points;

[[Page S2360]]

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

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

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

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

       (I) issue an advisory opinion with respect to a request 
     under subparagraph (A), in accordance with the time limits 
     for the issuance of advisory opinions under section 
     3661(b)(2) of title 39, United States Code, as amended by 
     this Act; and
       (II) submit the advisory opinion to the Committee on 
     Homeland Security and Governmental Affairs of the Senate and 
     the Committee on Oversight and Government Reform of the House 
     of Representatives.

       (ii) Required determinations.--An advisory opinion under 
     clause (i) shall determine--

       (I) whether the measures developed under subsection (b)(2) 
     ameliorate any disproportionate, negative impact that a 
     change in schedule may have on customers and communities 
     identified under subsection (b)(1); and
       (II) based on the report submitted by the Comptroller 
     General under paragraph (1)--

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

     SEC. 207. TIME LIMITS FOR CONSIDERATION OF SERVICE CHANGES.

       Section 3661 of title 39, United States Code, is amended by 
     striking subsections (b) and (c) and inserting the following:
       ``(b) Proposed Changes for Market-dominant Products.--
       ``(1) Submission of proposal.--If the Postal Service 
     determines that there should be a change in the nature of 
     postal services relating

[[Page S2361]]

     to market-dominant products that will generally affect 
     service on a nationwide or substantially nationwide basis, 
     the Postal Service shall submit a proposal to the Postal 
     Regulatory Commission requesting an advisory opinion on the 
     change.
       ``(2) Advisory opinion.--Upon receipt of a proposal under 
     paragraph (1), the Postal Regulatory Commission shall--
       ``(A) provide an opportunity for public comment on the 
     proposal; and
       ``(B) issue an advisory opinion not later than--
       ``(i) 90 days after the date on which the Postal Regulatory 
     Commission receives the proposal; or
       ``(ii) a date that the Postal Regulatory Commission and the 
     Postal Service may, not later than 1 week after the date on 
     which the Postal Regulatory Commission receives the proposal, 
     determine jointly.
       ``(3) Response to opinion.--The Postal Service shall submit 
     to the President and to Congress a response to an advisory 
     opinion issued under paragraph (2) that includes--
       ``(A) a statement of whether the Postal Service plans to 
     modify the proposal to address any concerns or implement any 
     recommendations made by the Commission; and
       ``(B) for any concern that the Postal Service determines 
     not to address and any recommendation that the Postal Service 
     determines not to implement, the reasons for the 
     determination.
       ``(4) Action on proposal.--The Postal Service may take 
     action regarding a proposal submitted under paragraph (1)--
       ``(A) on or after the date that is 30 days after the date 
     on which the Postal Service submits the response required 
     under paragraph (3);
       ``(B) on or after a date that the Postal Regulatory 
     Commission and the Postal Service may, not later than 1 week 
     after the date on which the Postal Regulatory Commission 
     receives a proposal under paragraph (2), determine jointly; 
     or
       ``(C) after the date described in paragraph (2)(B), if--
       ``(i) the Postal Regulatory Commission fails to issue an 
     advisory opinion on or before the date described in paragraph 
     (2)(B); and
       ``(ii) the action is not otherwise prohibited under Federal 
     law.
       ``(5) Modification of timeline.--At any time, the Postal 
     Service and the Postal Regulatory Commission may jointly 
     redetermine a date determined under paragraph (2)(B)(ii) or 
     (4)(B).''.

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

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

     SEC. 209. NONPOSTAL PRODUCTS AND SERVICES.

       (a) In General.--Section 404 of title 39, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraphs (6) through (8) as 
     paragraphs (7) through (9), respectively; and
       (B) by inserting after paragraph (5) the following:
       ``(6) after the date of enactment of the 21st Century 
     Postal Service Act of 2012, and except as provided in 
     subsection (e), to provide other services that are not postal 
     services, after the Postal Regulatory Commission--
       ``(A) makes a determination that the provision of such 
     services--
       ``(i) uses the processing, transportation, delivery, retail 
     network, or technology of the Postal Service;
       ``(ii) is consistent with the public interest and a 
     demonstrated or potential public demand for--

       ``(I) the Postal Service to provide the services instead of 
     another entity providing the services; or
       ``(II) the Postal Service to provide the services in 
     addition to another entity providing the services;

       ``(iii) would not create unfair competition with the 
     private sector; and
       ``(iv) has the potential to improve the net financial 
     position of the Postal Service, based on a market analysis 
     provided to the Postal Regulatory Commission by the Postal 
     Service; and
       ``(B) for services that the Postal Regulatory Commission 
     determines meet the criteria under subparagraph (A), 
     classifies each such service as a market-dominant product, 
     competitive product, or experimental product, as required 
     under chapter 36 of title 39, United States Code;''; and
       (2) in subsection (e)(2), by striking ``Nothing'' and all 
     that follows through ``except that the'' and inserting 
     ``The''.
       (b) Market Analysis.--During the 5-year period beginning on 
     the date of enactment of this Act, the Postal Service shall 
     submit a copy of any market analysis provided to the 
     Commission under section 404(a)(6)(A)(iv) of title 39, United 
     States Code, as amended by this section, to the Committee on 
     Homeland Security and Governmental Affairs of the Senate and 
     the Committee on Oversight and Government Reform of the House 
     of Representatives.

             TITLE III--FEDERAL EMPLOYEES' COMPENSATION ACT

     SEC. 301. SHORT TITLE; REFERENCES.

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

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

       (a) Conversion of Entitlement at Retirement Age.--
       (1) Definitions.--Section 8101 is amended
       (A) in paragraph (18), by striking ``and'' at the end;
       (B) in paragraph (19), by striking ``and'' at the end;
       (C) in paragraph (20), by striking the period at the end 
     and inserting a semicolon; and
       (D) by adding at the end the following:
       ``(21) `retirement age' has the meaning given that term 
     under section 216(l)(1) of the Social Security Act (42 U.S.C. 
     416(l)(1));
       ``(22) `covered claim for total disability' means a claim 
     for a period of total disability that commenced before the 
     date of enactment of the Workers' Compensation Reform Act of 
     2012;
       ``(23) `covered claim for partial disability' means a claim 
     for a period of partial disability that commenced before the 
     date of enactment of the Workers' Compensation Reform Act of 
     2012; and
       ``(24) `individual who has an exempt disability condition' 
     means an individual--
       ``(A) who--
       ``(i) is eligible to receive continuous periodic 
     compensation for total disability under section 8105 on the 
     date of enactment of the Workers' Compensation Reform Act of 
     2012; and
       ``(ii) meets the criteria under section 8105(c);
       ``(B) who, on the date of enactment of the Workers' 
     Compensation Reform Act of 2012--
       ``(i) is eligible to receive continuous periodic 
     compensation for total disability under section 8105; and
       ``(ii) has sustained a currently irreversible severe mental 
     or physical disability for which the Secretary of Labor has 
     authorized, for at least the 1-year period ending on the date 
     of enactment of the Workers' Compensation Reform Act of 2012, 
     constant in-home care or custodial care, such as placement in 
     a nursing home; or
       ``(C) who is eligible to receive continuous periodic 
     compensation for total disability under section 8105--
       ``(i) for not less than the 3-year period ending on the 
     date of enactment of the Workers' Compensation Reform Act of 
     2012; or
       ``(ii) if the individual became eligible to receive 
     continuous periodic compensation for total disability under 
     section 8105 during the period beginning on the date that is 
     3 years before the date of enactment of the Workers' 
     Compensation Reform Act of 2012 and ending on such date of 
     enactment, for not less than the 3-year period beginning on 
     the date on which the individual became eligible.''.
       (2) Total disability.--Section 8105 is amended--

[[Page S2362]]

       (A) in subsection (a), by striking ``If'' and inserting 
     ``In General.--Subject to subsection (b), if'';
       (B) by redesignating subsection (b) as subsection (c); and
       (C) by inserting after subsection (a) the following:
       ``(b) Conversion of Entitlement at Retirement Age.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     basic compensation for total disability for an employee who 
     has attained retirement age shall be 50 percent of the 
     monthly pay of the employee.
       ``(2) Exceptions.--
       ``(A) Covered recipients who are retirement age or have an 
     exempt disability condition.--Paragraph (1) shall not apply 
     to a covered claim for total disability by an employee if the 
     employee--
       ``(i) on the date of enactment of the Workers' Compensation 
     Reform Act of 2012, has attained retirement age; or
       ``(ii) is an individual who has an exempt disability 
     condition.
       ``(B) Transition period for certain employees.--For a 
     covered claim for total disability by an employee who is not 
     an employee described in subparagraph (A), the employee shall 
     receive the basic compensation for total disability provided 
     under subsection (a) until the later of--
       ``(i) the date on which the employee attains retirement 
     age; and
       ``(ii) the date that is 3 years after the date of enactment 
     of the Workers' Compensation Reform Act of 2012.''.
       (3) Partial disability.--Section 8106 is amended--
       (A) in subsection (a), by striking ``If'' and inserting 
     ``In General.--Subject to subsection (b), if'';
       (B) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively; and
       (C) by inserting after subsection (a) the following:
       ``(b) Conversion of Entitlement at Retirement Age.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     basic compensation for partial disability for an employee who 
     has attained retirement age shall be 50 percent of the 
     difference between the monthly pay of the employee and the 
     monthly wage-earning capacity of the employee after the 
     beginning of the partial disability.
       ``(2) Exceptions.--
       ``(A) Covered recipients who are retirement age.--Paragraph 
     (1) shall not apply to a covered claim for partial disability 
     by an employee if, on the date of enactment of the Workers' 
     Compensation Reform Act of 2012, the employee has attained 
     retirement age.
       ``(B) Transition period for certain employees.--For a 
     covered claim for partial disability by an employee who is 
     not an employee described in subparagraph (A), the employee 
     shall receive basic compensation for partial disability in 
     accordance with subsection (a) until the later of--
       ``(i) the date on which the employee attains retirement 
     age; and
       ``(ii) the date that is 3 years after the date of enactment 
     of the Workers' Compensation Reform Act of 2012.''.

     SEC. 303. AUGMENTED COMPENSATION FOR DEPENDENTS.

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

     SEC. 304. SCHEDULE COMPENSATION PAYMENTS.

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

[[Page S2363]]

     8110(b)(2)(B), if the employee receives such compensation.''.

     SEC. 305. VOCATIONAL REHABILITATION.

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

     ``Sec.  1538. Authorization for assisted reemployment

       ``Funds may be transferred from the Employees' Compensation 
     Fund established under section 8147 of title 5 to the 
     applicable appropriations account for an agency or 
     instrumentality of any branch of the Federal Government for 
     the purposes of reimbursing the agency or instrumentality in 
     accordance with an assisted reemployment agreement entered 
     into under section 8104 of title 5.''.
       (2) Table of sections.--The table of sections for chapter 
     15 of title 31, United States Code, is amended by inserting 
     after the item relating to section 1537 the following:

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

     SEC. 306. REPORTING REQUIREMENTS.

       (a) In General.--Chapter 81 is amended by inserting after 
     section 8106 the following:

     ``Sec.  8106a. Reporting requirements

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

``8106a. Reporting requirements.''.

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

       Section 8123 is amended by adding at the end the following:
       ``(e) Disability Management Review.--
       ``(1) Definitions.--In this subsection--
       ``(A) the term `covered employee' means an employee who is 
     in continuous receipt of compensation for total disability 
     under section 8105 for a period of not less than 6 months; 
     and
       ``(B) the term `disability management review process' means 
     the disability management review process established under 
     paragraph (2)(A).
       ``(2) Establishment.--The Secretary of Labor shall--
       ``(A) establish a disability management review process for 
     the purpose of certifying and monitoring the disability 
     status and extent of injury of each covered employee; and
       ``(B) promulgate regulations for the administration of the 
     disability management review process.
       ``(3) Physical examinations required.--Under the disability 
     management review process, the Secretary of Labor shall 
     periodically require covered employees to submit to physical 
     examinations under subsection (a) by physicians selected by 
     the Secretary. A physician conducting a physical examination 
     of a covered employee shall submit to the Secretary a report 
     regarding the nature and extent of the injury to and 
     disability of the covered employee.
       ``(4) Frequency.--
       ``(A) In general.--The regulations promulgated under 
     paragraph (2)(B) shall specify the process and criteria for 
     determining when and how frequently a physical examination 
     should be conducted for a covered employee.
       ``(B) Minimum frequency.--
       ``(i) Initial.--An initial physical examination shall be 
     conducted not more than a brief period after the date on 
     which a covered employee has been in continuous receipt of 
     compensation for total disability under section 8015 for 6 
     months.
       ``(ii) Subsequent examinations.--After the initial physical 
     examination, physical examinations of a covered employee 
     shall be conducted not less than once every 3 years.
       ``(5) Employing agency or instrumentality requests.--
       ``(A) In general.--The agency or instrumentality employing 
     an employee who has made a claim for compensation for total 
     disability under section 8105 may at any time submit a 
     request for the Secretary of Labor to promptly require the 
     employee to submit to a physical examination under this 
     subsection.
       ``(B) Requesting officer.--A request under subparagraph (A) 
     shall be made on behalf of an agency or instrumentality by--

[[Page S2364]]

       ``(i) the head of the agency or instrumentality;
       ``(ii) the Chief Human Capital Officer of the agency or 
     instrumentality; or
       ``(iii) if the agency or instrumentality does not have a 
     Chief Human Capital Officer, an officer with responsibilities 
     similar to those of a Chief Human Capital Officer designated 
     by the head of the agency or instrumentality to make requests 
     under this paragraph.
       ``(C) Information.--A request under subparagraph (A) shall 
     be in writing and accompanied by--
       ``(i) a certification by the officer making the request 
     that the officer has reviewed the relevant material in the 
     employee's file;
       ``(ii) an explanation of why the officer has determined, 
     based on the materials in the file and other information 
     known to the officer, that requiring a physical examination 
     of the employee under this subsection is necessary; and
       ``(iii) copies of the materials relating to the employee 
     that are relevant to the officer's determination and request, 
     unless the agency or instrumentality has a reasonable basis 
     for not providing the materials.
       ``(D) Examination.--If the Secretary of Labor receives a 
     request under this paragraph before an employee has undergone 
     an initial physical examination under paragraph (4)(B)(i), 
     the Secretary shall promptly require the physical examination 
     of the employee. A physical examination under this 
     subparagraph shall satisfy the requirement under paragraph 
     (4)(B)(i) that an initial physical examination be conducted.
       ``(E) After initial examination.--
       ``(i) In general.--If the Secretary of Labor receives a 
     request under this paragraph after an employee has undergone 
     an initial physical examination under paragraph (4)(B)(i), 
     the Secretary shall--

       ``(I) review the request and the information, explanation, 
     and other materials submitted with the request; and
       ``(II) determine whether to require the physical 
     examination of the employee who is the subject of the 
     request.

       ``(ii) Not granted.--If the Secretary determines not to 
     grant a request described in clause (i), the Secretary shall 
     promptly notify the officer who made the request and provide 
     an explanation of the reasons why the request was denied.''.

     SEC. 308. WAITING PERIOD.

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

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

     SEC. 309. ELECTION OF BENEFITS.

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

     SEC. 310. SANCTION FOR NONCOOPERATION WITH FIELD NURSES.

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

     SEC. 311. SUBROGATION OF CONTINUATION OF PAY.

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

     SEC. 312. INTEGRITY AND COMPLIANCE.

       (a) In General.--Subchapter I of chapter 81 is amended by 
     adding at the end the following:

     ``Sec.  8153. Integrity and Compliance Program

       ``(a) Definitions.--In this section--
       ``(1) the term `FECA program' means the Federal Employees 
     Compensation Program administered under this subchapter;
       ``(2) the term `Integrity and Compliance Program' means the 
     Integrity and Compliance Program established under subsection 
     (b);
       ``(3) the term `provider' means a provider of medical or 
     other services under the FECA program; and
       ``(4) the term `Secretary' means the Secretary of Labor.
       ``(b) Integrity and Compliance Program.--Not later than 270 
     days after the date of enactment of this section, the 
     Secretary shall establish an Integrity and Compliance Program 
     for the purpose of preventing, identifying, and recovering 
     improper payments (including improper payments obtained by 
     fraud) for the FECA program, which shall include--
       ``(1) procedures for identifying potentially improper 
     payments (including improper payments obtained by fraud) 
     before payment is made to claimants and providers, including, 
     where appropriate, predictive analytics;
       ``(2) reviews after payment is made to identify potentially 
     improper payments (including improper payments obtained by 
     fraud) to claimants and providers;
       ``(3) on-going screening and verification procedures to 
     ensure the continued eligibility of medical providers to 
     provide services under the FECA program, including licensure, 
     Federal disbarment, and the existence of relevant criminal 
     convictions;
       ``(4) provision of appropriate information, education, and 
     training to claimants and providers on requirements to ensure 
     the integrity of the FECA program, including payments under 
     the FECA program;
       ``(5) appropriate controls and audits to ensure that 
     providers adopt internal controls and procedures for 
     compliance with requirements under the FECA program;
       ``(6) procedures to ensure--
       ``(A) initial and continuing eligibility of claimants for 
     compensation, benefits, or services under the FECA program; 
     and
       ``(B) ongoing verification of databases of information 
     relating to claimants to ensure accuracy and completeness; 
     and
       ``(7) appropriately sharing and accessing data and 
     information with other agencies and instrumentalities of the 
     United States, including the United States Postal Service.
       ``(c) Interagency Cooperation on Anti-fraud Efforts.--
       ``(1) In general.--In administering the FECA program, 
     including the Integrity and Compliance Program, the Secretary 
     shall cooperate

[[Page S2365]]

     with other agencies and instrumentalities of the United 
     States (including the United States Postal Service) and the 
     Inspectors General of such agencies and instrumentalities to 
     prevent, identify, and recover improper payments (including 
     improper payments obtained by fraud) under the FECA program.
       ``(2) Task force.--
       ``(A) In general.--There is established a task force, which 
     shall be known as the FECA Integrity and Compliance Task 
     Force (in this paragraph referred to as the `Task Force').
       ``(B) Membership.--The members of the Task Force shall be--
       ``(i) the Secretary, who shall serve as the Chairperson of 
     the Task Force;
       ``(ii) the Postmaster General, who shall serve as the Vice 
     Chairperson of the Task Force;
       ``(iii) the Attorney General;
       ``(iv) the Director of the Office of Management and Budget;
       ``(v) the Inspector General of the Department of Labor;
       ``(vi) the Inspector General of the United States Postal 
     Service;
       ``(vii) the Inspectors General of other appropriate 
     agencies and instrumentalities of the United States that 
     employ a significant number of individuals receiving 
     compensation, benefits, or services under the FECA program, 
     as determined by the Chairperson and Vice Chairperson of the 
     Task Force; and
       ``(viii) other appropriate Federal officials, as determined 
     by the Chairperson and Vice Chairperson of the Task Force.
       ``(C) Duties.--The Task Force shall--
       ``(i) set forth, in writing, a description of the 
     respective roles and responsibilities in preventing, 
     identifying, recovering, and prosecuting fraud under, and 
     otherwise ensuring integrity and compliance of, the FECA 
     program of--

       ``(I) the Secretary (including subordinate officials such 
     as the Director of the Office of Workers' Compensation 
     Programs);
       ``(II) the Inspector General of the Department of Labor;
       ``(III) the Inspectors General of agencies and 
     instrumentalities of the United States that employ claimants 
     under the FECA program;
       ``(IV) the Attorney General; and
       ``(V) any other relevant officials;

       ``(ii) develop procedures for sharing information of 
     possible fraud under the FECA program or other intentional 
     misstatements by claimants or providers under the FECA 
     program, including procedures addressing--

       ``(I) notification of appropriate officials of the 
     Department of Labor of potential fraud or intentional 
     misstatements, including provision of supporting information;
       ``(II) timely and appropriate response by officials of the 
     Department of Labor to notifications described in subclause 
     (I);
       ``(III) the inclusion of information and evidence relating 
     to fraud and other intentional misstatements in criminal, 
     civil, and administrative proceedings relating to the 
     provision of compensation, benefits, or medical services 
     (including payments to providers) under the FECA program;
       ``(IV) the coordination of criminal investigations with the 
     administration of the FECA program; and
       ``(V) the protection of information relating to an 
     investigation of possible fraud under the FECA program from 
     potential disclosure, including requirements that enable 
     investigative files to be appropriately separated from case 
     management files;

       ``(iii) not later than 1 year after the date of enactment 
     of this section, submit to the Committee on Homeland Security 
     and Governmental Affairs of the Senate and the Committee on 
     Oversight and Government Reform and the Committee on 
     Education and the Workforce of the House of Representatives a 
     report that includes the description and procedures required 
     under clauses (i) and (ii).
       ``(d) Improvements to Access of Federal Databases.--
       ``(1) In general.--The Secretary, the Postmaster General, 
     the Inspector General of the United States Postal Service, 
     and the Inspector General of the Department of Labor shall 
     have access to and make use of the agency databases described 
     in this subsection in order to improve compliance with the 
     requirements under and the integrity of the FECA program.
       ``(2) Social security earnings information.--
       ``(A) In general.--Notwithstanding section 552a or any 
     other provision of Federal or State law, upon written 
     request, the Commissioner of Social Security shall make 
     available to the Secretary, the Inspector General of the 
     Department of Labor, the Postmaster General, and the 
     Inspector General of the United States Postal Service the 
     Social Security earnings information of a living or deceased 
     employee required by the Secretary to carry out this 
     subchapter.
       ``(B) Procedures.--The Secretary shall establish procedures 
     for correlating the identity and status of recipients of 
     compensation, benefits, or services under this subchapter 
     with Social Security earnings information described in 
     subparagraph (A).
       ``(3) Office of personnel management federal retiree 
     database.--Notwithstanding section 552a or any other 
     provision of Federal or State law, upon written request, the 
     Director of the Office of Personnel Management shall make 
     available to the Secretary, the Inspector General of the 
     Department of Labor, the Postmaster General, and the 
     Inspector General of the United States Postal Service the 
     information in the databases of Federal employees and 
     retirees maintained by the Director.
       ``(4) Department of veterans affairs beneficiaries 
     database.--Notwithstanding section 552a or any other 
     provision of Federal or State law, upon written request, the 
     Secretary of Veterans Affairs shall make available to the 
     Secretary, the Inspector General of the Department of Labor, 
     the Postmaster General, and the Inspector General of the 
     United States Postal Service the information in the database 
     of disabled individuals maintained by the Secretary of 
     Veterans Affairs.
       ``(5) National directory of new hires.--Notwithstanding 
     section 552a, section 453(j) of the Social Security Act (42 
     U.S.C. 653(j)), or any other provision of Federal or State 
     law, upon written request, the Secretary of Health and Human 
     Services shall make available to the Secretary, the Inspector 
     General of the Department of Labor, the Postmaster General, 
     the Inspector General of the United States Postal Service, 
     and the Comptroller General of the United States the 
     information in the National Directory of New Hires. The 
     Comptroller General may obtain information from the National 
     Directory of New Hires under this paragraph for any audit, 
     evaluation, or investigation, including any audit, 
     evaluation, or investigation relating to program integrity.
       ``(6) Provision.--Information requested under this 
     subsection shall be provided--
       ``(A) in a timely manner;
       ``(B) at a reasonable cost to the Secretary, the Inspector 
     General of the Department of Labor, the Postmaster General, 
     the Inspector General of the United States Postal Service, or 
     the Comptroller General of the United States; and
       ``(C) in the manner, frequency, and form reasonably 
     specified by the officer making the request, which, upon 
     request, shall include electronic form.
       ``(7) Assessment of data cost-effectiveness.--
       ``(A) In general.--The Secretary shall consider and assess 
     procedures for correlating the identity and status of 
     recipients of compensation, benefits, or services under this 
     subchapter with information relating to employees, retirees, 
     and individuals described in paragraphs (3), (4), and (5).
       ``(B) Report.--Not later than 1 year after the date of 
     enactment of this section, the Secretary shall submit to the 
     Committee on Homeland Security and Governmental Affairs of 
     the Senate and the Committee on Oversight and Government 
     Reform and the Committee on Education and the Workforce of 
     the House of Representatives a report on the cost-
     effectiveness of the use of the databases described in 
     paragraphs (3), (4), and (5) for program compliance and 
     integrity. The report required under this subparagraph may be 
     included as part of the report required under subsection (f).
       ``(8) United states postal service feca enrollee 
     database.--Not later than 180 days after the date of 
     enactment of this section, in order to track, verify, and 
     communicate with the Secretary and other relevant entities, 
     the Postmaster General shall establish an electronic database 
     of information relating to employees of the United States 
     Postal Service who have applied for or are receiving 
     compensation, benefits, or services under this subchapter.
       ``(e) General Protocols and Security.--
       ``(1) Establishment.--
       ``(A) In general.--In order to ensure strong information 
     security and privacy standards, the Secretary, the Postmaster 
     General, the Inspector General of the Department of Labor, 
     and the Inspector General of the United States Postal Service 
     shall establish protocols for the secure transfer and storage 
     of any information provided to an individual or entity under 
     this section.
       ``(B) Considerations.--In establishing protocols under 
     subparagraph (A), the Secretary, the Postmaster General, the 
     Inspector General of the Department of Labor, and the 
     Inspector General of the United States Postal Service shall 
     consider any recommendations submitted to the Secretary by 
     the Inspector General of the Department of Health and Human 
     Services with respect to the secure transfer and storage of 
     information, and to comply with privacy laws and best 
     practices.
       ``(C) Fraud case protection.--The Secretary, the Postmaster 
     General, the Inspector General of the Department of Labor, 
     and the Inspector General of the United States Postal Service 
     shall establish protocols and procedures to enable 
     information and materials relating to an active investigation 
     of possible fraud relating to the FECA program to be 
     appropriately kept separate from the files for employees 
     relating to the provision of compensation, benefits, or 
     services under the FECA program.
       ``(2) Compliance.--The Secretary, the Postmaster General, 
     the Inspector General of the Department of Labor, and the 
     Inspector General of the United States Postal Service shall 
     ensure that any information provided to an individual or 
     entity under this section is provided in accordance with 
     protocols established under paragraph (1).
       ``(f) Report.--Not later than 1 year after the date of 
     enactment of this section, and annually thereafter for 5 
     years, the Secretary shall submit a report on the activities 
     of the Secretary under this section, including implementation 
     of the Integrity and Compliance Program, to--
       ``(1) the Committee on Homeland Security and Governmental 
     Affairs of the Senate; and
       ``(2) the Committee on Oversight and Government Reform and 
     the Committee on Education and the Workforce of the House of 
     Representatives.
       ``(g) GAO Review.--The Comptroller General of the United 
     States shall--
       ``(1) conduct periodic reviews of the Integrity and 
     Compliance Program; and
       ``(2) submit reports on the results of the reviews under 
     paragraph (1) to the Committee on Homeland Security and 
     Governmental Affairs of the Senate and the Committee on 
     Oversight and Government Reform and the Committee on 
     Education and the Workforce of the House of Representatives 
     not later than--
       ``(A) 2 years after the date of enactment of this section; 
     and

[[Page S2366]]

       ``(B) 3 years after submission of the report under 
     subparagraph (A).''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 81 is amended by inserting after the 
     item relating to section 8152 the following:

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

     SEC. 313. AMOUNT OF COMPENSATION.

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

     SEC. 314. TECHNICAL AND CONFORMING AMENDMENTS.

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

     SEC. 315. REGULATIONS.

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

                        TITLE IV--OTHER MATTERS

     SEC. 401. PROFITABILITY PLAN.

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

     SEC. 402. POSTAL RATES.

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

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

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

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

     SEC. 404. SHIPPING OF WINE AND BEER.

       (a) Mailability.--
       (1) Nonmailable articles.--Section 1716(f) of title 18, 
     United States Code, is amended by striking ``mails'' and 
     inserting ``mails, except to the extent that the mailing is 
     allowable under section 3001(p) of title 39''.
       (2) Application of laws.--Section 1161 of title 18, United 
     States Code, is amended, by inserting ``, and, with respect 
     to the mailing of wine or malt beverages (as those terms are 
     defined in section 117 of the Federal Alcohol Administration 
     Act (27 U.S.C. 211)), is in conformity with section 3001(p) 
     of title 39'' after ``Register''.
       (b) Regulations.--Section 3001 of title 39, United States 
     Code, is amended by adding at the end the following:
       ``(p)(1) In this subsection, the terms `wine' and `malt 
     beverage' have the same meanings as in section 117 of the 
     Federal Alcohol Administration Act (27 U.S.C. 211).
       ``(2) Wine or malt beverages shall be considered mailable 
     if mailed--
       ``(A) by a licensed winery or brewery, in accordance with 
     applicable regulations under paragraph (3); and
       ``(B) in accordance with the laws of--
       ``(i) the State, territory, or district of the United 
     States where the sender or duly authorized agent initiates 
     the mailing; and

[[Page S2367]]

       ``(ii) the State, territory, or district of the United 
     States where the addressee or duly authorized agent takes 
     delivery.
       ``(3) The Postal Service shall prescribe such regulations 
     as may be necessary to carry out this subsection, including 
     regulations providing that--
       ``(A) the mailing shall be by a means established by the 
     Postal Service to ensure direct delivery to the addressee or 
     a duly authorized agent;
       ``(B) the addressee (and any duly authorized agent) shall 
     be an individual at least 21 years of age;
       ``(C) the individual who takes delivery, whether the 
     addressee or a duly authorized agent, shall present a valid, 
     government-issued photo identification at the time of 
     delivery;
       ``(D) the wine or malt beverages may not be for resale or 
     other commercial purpose; and
       ``(E) the winery or brewery involved shall--
       ``(i) certify in writing to the satisfaction of the Postal 
     Service, through a registration process administered by the 
     Postal Service, that the mailing is not in violation of any 
     provision of this subsection or regulation prescribed under 
     this subsection; and
       ``(ii) provide any other information or affirmation that 
     the Postal Service may require, including with respect to the 
     prepayment of State alcohol beverage taxes.
       ``(4) For purposes of this subsection--
       ``(A) a winery shall be considered to be licensed if it 
     holds an appropriate basic permit issued--
       ``(i) under the Federal Alcohol Administration Act; and
       ``(ii) under the law of the State in which the winery is 
     located; and
       ``(B) a brewery shall be considered to be licensed if--
       ``(i) it possesses a notice of registration and bond 
     approved by the Alcohol and Tobacco Tax and Trade Bureau of 
     the Department of the Treasury; and
       ``(ii) it is licensed to manufacture and sell malt 
     beverages in the State in which the brewery is located.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the earlier of--
       (1) the date on which the Postal Service issues regulations 
     under section 3001(p) of title 39, United States Code, as 
     amended by this section; and
       (2) 120 days after the date of enactment of this Act.

     SEC. 405. ANNUAL REPORT ON UNITED STATES MAILING INDUSTRY.

       (a) In General.--Chapter 24 of title 39, United States 
     Code, is amended by adding at the end the following:

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

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

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

     SEC. 406. USE OF NEGOTIATED SERVICE AGREEMENTS.

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

     SEC. 407. CONTRACT DISPUTES.

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

     SEC. 408. CONTRACTING PROVISIONS.

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

                  ``CHAPTER 7--CONTRACTING PROVISIONS

``Sec.
``701. Definitions.
``702. Advocate for competition.
``703. Delegation of contracting authority.
``704. Posting of noncompetitive purchase requests for noncompetitive 
              contracts.
``705. Review of ethical issues.
``706. Ethical restrictions on participation in certain contracting 
              activity.
``707. Congressional oversight authority.

     ``Sec.  701. Definitions

       ``In this chapter--
       ``(1) the term `contracting officer' means an employee of a 
     covered postal entity who has authority to enter into a 
     postal contract;
       ``(2) the term `covered postal entity' means--
       ``(A) the Postal Service; or
       ``(B) the Postal Regulatory Commission;
       ``(3) the term `head of a covered postal entity' means--
       ``(A) in the case of the Postal Service, the Postmaster 
     General; or
       ``(B) in the case of the Postal Regulatory Commission, the 
     Chairman of the Postal Regulatory Commission;
       ``(4) the term `postal contract' means any contract 
     (including any agreement or memorandum of understanding) 
     entered into by a covered postal entity for the procurement 
     of goods or services; and
       ``(5) the term `senior procurement executive' means the 
     senior procurement executive of a covered postal entity.

     ``Sec.  702. Advocate for competition

       ``(a) Establishment and Designation.--
       ``(1) Establishment.--There is established in each covered 
     postal entity an advocate for competition.
       ``(2) Designation.--The head of each covered postal entity 
     shall designate for the covered postal entity 1 or more 
     officers or employees (other than the senior procurement 
     executive) to serve as the advocate for competition.
       ``(b) Responsibilities.--The advocate for competition of 
     each covered postal entity shall--
       ``(1) be responsible for promoting competition to the 
     maximum extent practicable consistent with obtaining best 
     value by promoting the acquisition of commercial items and 
     challenging barriers to competition;
       ``(2) review the procurement activities of the covered 
     postal entity; and
       ``(3) prepare and transmit to the head of each covered 
     postal entity, the senior procurement executive of each 
     covered postal entity, the Board of Governors, and Congress, 
     an annual report describing--
       ``(A) the activities of the advocate under this section;
       ``(B) initiatives required to promote competition;
       ``(C) barriers to competition that remain; and
       ``(D) the number of waivers made by each covered postal 
     entity under section 704(c).

     ``Sec.  703. Delegation of contracting authority

       ``(a) In General.--
       ``(1) Policy.--Not later than 60 days after the date of 
     enactment of the 21st Century Postal Service Act of 2012, the 
     head of each covered postal entity shall issue a policy on 
     contracting officer delegations of authority for the covered 
     postal entity.
       ``(2) Contents.--The policy issued under paragraph (1) 
     shall require that--
       ``(A) notwithstanding any delegation of authority with 
     respect to postal contracts, the ultimate responsibility and 
     accountability for the award and administration of postal 
     contracts resides with the senior procurement executive; and
       ``(B) a contracting officer shall maintain an awareness of 
     and engagement in the activities being performed on postal 
     contracts of which that officer has cognizance, 
     notwithstanding any delegation of authority that may have 
     been executed.
       ``(b) Posting of Delegations.--
       ``(1) In general.--The head of each covered postal entity 
     shall make any delegation of authority for postal contracts 
     outside the functional contracting unit readily available and 
     accessible on the website of the covered postal entity.
       ``(2) Effective date.--This paragraph shall apply to any 
     delegation of authority made on or after 30 days after the 
     date of enactment of the 21st Century Postal Service Act of 
     2012.

     ``Sec.  704. Posting of noncompetitive purchase requests for 
       noncompetitive contracts

       ``(a) Posting Required.--
       ``(1) Postal regulatory commission.--The Postal Regulatory 
     Commission shall make the noncompetitive purchase request for 
     any noncompetitive award, including the rationale supporting 
     the noncompetitive award, publicly available on the website 
     of the Postal Regulatory Commission--
       ``(A) not later than 14 days after the date of the award of 
     the noncompetitive contract; or
       ``(B) not later than 30 days after the date of the award of 
     the noncompetitive contract, if the basis for the award was a 
     compelling business interest.
       ``(2) Postal service.--The Postal Service shall make the 
     noncompetitive purchase request for any noncompetitive award 
     of a postal contract valued at $250,000 or more, including 
     the rationale supporting the noncompetitive award, publicly 
     available on the website of the Postal Service--
       ``(A) not later than 14 days after the date of the award; 
     or
       ``(B) not later than 30 days after the date of the award, 
     if the basis for the award was a compelling business 
     interest.
       ``(3) Adjustments to the posting threshold for the postal 
     service.--
       ``(A) Review and determination.--Not later than January 31 
     of each year, the Postal Service shall--
       ``(i) review the $250,000 threshold established under 
     paragraph (2); and
       ``(ii) based on any change in the Consumer Price Index for 
     all-urban consumers of the Department of Labor, determine 
     whether an adjustment to the threshold shall be made.

[[Page S2368]]

       ``(B) Amount of adjustments.--An adjustment under 
     subparagraph (A) shall be made in increments of $5,000. If 
     the Postal Service determines that a change in the Consumer 
     Price Index for a year would require an adjustment in an 
     amount that is less than $5,000, the Postal Service may not 
     make an adjustment to the threshold for the year.
       ``(4) Effective date.--This subsection shall apply to any 
     noncompetitive contract awarded on or after the date that is 
     90 days after the date of enactment of the 21st Century 
     Postal Service Act of 2012.
       ``(b) Public Availability.--
       ``(1) In general.--Subject to paragraph (2), the 
     information required to be made publicly available by a 
     covered postal entity under subsection (a) shall be readily 
     accessible on the website of the covered postal entity.
       ``(2) Protection of proprietary information.--A covered 
     postal entity shall--
       ``(A) carefully screen any description of the rationale 
     supporting a noncompetitive award required to be made 
     publicly available under subsection (a) to determine whether 
     the description includes proprietary data (including any 
     reference or citation to the proprietary data) or security-
     related information; and
       ``(B) remove any proprietary data or security-related 
     information before making publicly available a description of 
     the rational supporting a noncompetitive award.
       ``(c) Waivers.--
       ``(1) Waiver permitted.--If a covered postal entity 
     determines that making a noncompetitive purchase request 
     publicly available would risk placing the Postal Service at a 
     competitive disadvantage relative to a private sector 
     competitor, the senior procurement executive, in consultation 
     with the advocate for competition of the covered postal 
     entity, may waive the requirements under subsection (a).
       ``(2) Form and content of waiver.--
       ``(A) Form.--A waiver under paragraph (1) shall be in the 
     form of a written determination placed in the file of the 
     contract to which the noncompetitive purchase agreement 
     relates.
       ``(B) Content.--A waiver under paragraph (1) shall 
     include--
       ``(i) a description of the risk associated with making the 
     noncompetitive purchase request publicly available; and
       ``(ii) a statement that redaction of sensitive information 
     in the noncompetitive purchase request would not be 
     sufficient to protect the Postal Service from being placed at 
     a competitive disadvantage relative to a private sector 
     competitor.
       ``(3) Delegation of waiver authority.--A covered postal 
     entity may not delegate the authority to approve a waiver 
     under paragraph (1) to any employee having less authority 
     than the senior procurement executive.

     ``Sec.  705. Review of ethical issues

       ``If a contracting officer identifies any ethical issues 
     relating to a proposed contract and submits those issues and 
     that proposed contract to the designated ethics official for 
     the covered postal entity before the awarding of that 
     contract, that ethics official shall--
       ``(1) review the proposed contract; and
       ``(2) advise the contracting officer on the appropriate 
     resolution of ethical issues.

     ``Sec.  706. Ethical restrictions on participation in certain 
       contracting activity

       ``(a) Definitions.--In this section--
       ``(1) the term `covered employee' means--
       ``(A) a contracting officer; or
       ``(B) any employee of a covered postal entity whose 
     decisionmaking affects a postal contract as determined by 
     regulations prescribed by the head of a covered postal 
     entity;
       ``(2) the term `covered relationship' means a covered 
     relationship described in section 2635.502(b)(1) of title 5, 
     Code of Federal Regulations, or any successor thereto; and
       ``(3) the term `final conviction' means a conviction, 
     whether entered on a verdict or plea, including a plea of 
     nolo contendere, for which a sentence has been imposed.
       ``(b) In General.--
       ``(1) Regulations.--The head of each covered postal entity 
     shall prescribe regulations that--
       ``(A) require a covered employee to include in the file of 
     any noncompetitive purchase request for a noncompetitive 
     postal contract a written certification that--
       ``(i) discloses any covered relationship of the covered 
     employee; and
       ``(ii) the covered employee will not take any action with 
     respect to the noncompetitive purchase request that affects 
     the financial interests of a friend, relative, or person with 
     whom the covered employee is affiliated in a nongovernmental 
     capacity, or otherwise gives rise to an appearance of the use 
     of public office for private gain, as described in section 
     2635.702 of title 5, Code of Federal Regulations, or any 
     successor thereto;
       ``(B) require a contracting officer to consult with the 
     ethics counsel for the covered postal entity regarding any 
     disclosure made by a covered employee under subparagraph 
     (A)(i), to determine whether participation by the covered 
     employee in the noncompetitive purchase request would give 
     rise to a violation of part 2635 of title 5, Code of Federal 
     Regulations (commonly referred to as the `Standards of 
     Ethical Conduct for Employees of the Executive Branch');
       ``(C) require the ethics counsel for a covered postal 
     entity to review any disclosure made by a contracting officer 
     under subparagraph (A)(i) to determine whether participation 
     by the contracting officer in the noncompetitive purchase 
     request would give rise to a violation of part 2635 of title 
     5, Code of Federal Regulations (commonly referred to as the 
     `Standards of Ethical Conduct for Employees of the Executive 
     Branch'), or any successor thereto;
       ``(D) under subsections (d) and (e) of section 2635.50 of 
     title 5, Code of Federal Regulations, or any successor 
     thereto, require the ethics counsel for a covered postal 
     entity to--
       ``(i) authorize a covered employee that makes a disclosure 
     under subparagraph (A)(i) to participate in the 
     noncompetitive postal contract; or
       ``(ii) disqualify a covered employee that makes a 
     disclosure under subparagraph (A)(i) from participating in 
     the noncompetitive postal contract;
       ``(E) require a contractor to timely disclose to the 
     contracting officer in a bid, solicitation, award, or 
     performance of a postal contract any conflict of interest 
     with a covered employee; and
       ``(F) include authority for the head of the covered postal 
     entity to a grant a waiver or otherwise mitigate any 
     organizational or personal conflict of interest, if the head 
     of the covered postal entity determines that the waiver or 
     mitigation is in the best interests of the Postal Service.
       ``(2) Posting of waivers.--Not later than 30 days after the 
     head of a covered postal entity grants a waiver described in 
     paragraph (1)(F), the head of the covered postal entity shall 
     make the waiver publicly available on the website of the 
     covered postal entity.
       ``(c) Contract Voidance and Recovery.--
       ``(1) Unlawful conduct.--In any case in which there is a 
     final conviction for a violation of any provision of chapter 
     11 of title 18 relating to a postal contract, the head of a 
     covered postal entity may--
       ``(A) void that contract; and
       ``(B) recover the amounts expended and property transferred 
     by the covered postal entity under that contract.
       ``(2) Obtaining or disclosing procurement information.--
       ``(A) In general.--In any case where a contractor under a 
     postal contract fails to timely disclose a conflict of 
     interest to the appropriate contracting officer as required 
     under the regulations promulgated under subsection (b)(1)(D), 
     the head of a covered postal entity may--
       ``(i) void that contract; and
       ``(ii) recover the amounts expended and property 
     transferred by the covered postal entity under that contract.
       ``(B) Conviction or administrative determination.--A case 
     described under subparagraph (A) is any case in which--
       ``(i) there is a final conviction for an offense punishable 
     under section 27(e) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 423(e)); or
       ``(ii) the head of a covered postal entity determines, 
     based upon a preponderance of the evidence, that the 
     contractor or someone acting for the contractor has engaged 
     in conduct constituting an offense punishable under section 
     27(e) of that Act.

     ``Sec.  707. Congressional oversight authority

       ``The Postal Service may not enter into any contract that 
     restricts the ability of Congress to exercise oversight 
     authority.''.
       (b) Technical and Conforming Amendment.--The table of 
     chapters for part I of title 39, United States Code, is 
     amended by adding at the end the following:

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

  The PRESIDING OFFICER. The majority leader.
  Mr. REID. Mr. President, relevance is a fair standard. A lot of 
amendments can be offered. Very few couldn't be offered unless it were 
something dealing with foreign policy on the Postal Service bill. A lot 
of people want to offer amendments dealing with situations all over the 
world. That is why we struggled, for example, to get the Iran sanctions 
bill moving. A standard of relevance merely asks that we stay on the 
subject--a subject this morning to which 74 Senators agreed to proceed 
to.

  I regret my friend has objected to this request. But I hope my friend 
from Kentucky will go home and explain to the people who are dependent 
on those small post offices around the State of Kentucky and those 
processing centers that this bill has not been resolved because of him.
  If we do nothing, there will be the wide-range closing of post 
offices. We have more than 30,000 post offices in America. Many of them 
will be closed. We have hundreds and hundreds of processing centers. 
They will be closed. The Postal Service, as we have known it, is a 
fleeting moment in the eyes of Americans when they cannot get their 
medicine they want, they cannot get the mail they want. The volume is 
down a lot. But that is what this bill is about: to address some of the 
problems we have with what we need to have happen as a new Postal 
Service.
  The chairman of the committee, Senator Lieberman, has worked 
extremely hard. Senator Collins has spent lots and lots of time on this 
issue. Of course, Tom Carper, who has a tremendous interest in this, 
has been working on this issue for a long time.
  It is a shame we have had this objection. It leaves me with 
absolutely no alternative but to fill the amendment tree and make sure 
we stick on the subject of postal reform. I remain hopeful we will be 
able to work together to get an agreement for consideration of 
amendments related to this most important task: saving the Postal 
Service.

[[Page S2369]]

           Committee-Reported Substitute Amendment Withdrawn

  Mr. President, I have been authorized by the chairman of the Senate 
Homeland Security and Governmental Affairs Committee to withdraw the 
committee-reported substitute amendment.
  The PRESIDING OFFICER (Mr. Franken). The amendment is withdrawn.


                           Amendment No. 2000

                (Purpose: In the nature of a substitute)

  Mr. REID. Mr. President, on behalf of Senators Lieberman, Collins, 
and others, I call up amendment No. 2000, which is at the desk.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       para.The Senator from Nevada [Mr. Reid], for Mr. Lieberman, 
     for himself, Ms. Collins, Mr. Carper, and Mr. Brown of 
     Massachusetts, proposes an amendment numbered 2000.

  (The amendment is printed in the Record of Monday, April 16, 2012, 
under ``Text of Amendments.'')
  Mr. REID. Mr. President, I ask for the yeas and nays on the 
amendment.
  The PRESIDING OFFICER. Is there a sufficient second?
  There appears to be a sufficient second.
  The yeas and nays were ordered.


                Amendment No. 2013 to Amendment No. 2000

  Mr. REID. Mr. President, I have a first-degree perfecting amendment 
at the desk.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Nevada [Mr. Reid] proposes an amendment 
     numbered 2013 to amendment No. 2000.

  The amendment is as follows:

       At the end, add the following new section:

     SEC. __

       This Act shall become effective 7 days after enactment.

  Mr. REID. Mr. President, I ask for the yeas and nays on that 
amendment.
  The PRESIDING OFFICER. Is there a sufficient second?
  There appears to be a sufficient second.
  The yeas and nays were ordered.


                Amendment No. 2014 to Amendment No. 2013

  Mr. REID. Mr. President, I have a second-degree amendment at the 
desk.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Nevada [Mr. Reid] proposes an amendment 
     numbered 2014 to amendment No. 2013.

  The amendment is as follows:

       In the amendment, strike ``7 days'' and insert ``6 days''.


                             Cloture Motion

  Mr. REID. Mr. President, I have a cloture motion at the desk.
  The PRESIDING OFFICER. The cloture motion having been presented under 
rule XXII, the Chair directs the clerk to read the motion.
  The assistant legislative clerk read as follows:

                             Cloture Motion

       We, the undersigned Senators, in accordance with the 
     provisions of rule XXII of the Standing Rules of the Senate, 
     hereby move to bring to a close debate on the Lieberman-
     Collins substitute amendment No. 2000 to S. 1789, the 21st 
     Century Postal Service Act.
         Harry Reid, Joseph I. Lieberman, Sherrod Brown, Debbie 
           Stabenow, Thomas R. Carper, Bernard Sanders, Jeanne 
           Shaheen, Bill Nelson, Christopher A. Coons, Sheldon 
           Whitehouse, Kirsten E. Gillibrand, Charles E. Schumer, 
           Jack Reed, John F. Kerry, Daniel K. Inouye, Richard 
           Blumenthal.


                           Amendment No. 2015

  Mr. REID. Mr. President, I have an amendment at the desk to the 
language proposed to be stricken.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Nevada [Mr. Reid] proposes an amendment 
     numbered 2015 to the language proposed to be stricken (by 
     amendment No. 2000).

  The amendment is as follows:

       At the end, add the following new section:

     SEC. __

       This Act shall become effective 5 days after enactment.

  Mr. REID. Mr. President, I ask for the yeas and nays on that 
amendment.
  The PRESIDING OFFICER. Is there a sufficient second?
  There appears to be a sufficient second.
  The yeas and nays were ordered.


                Amendment No. 2016 to Amendment No. 2015

  Mr. REID. Mr. President, I have a second-degree amendment at the 
desk.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Nevada [Mr. Reid] proposes an amendment 
     numbered 2016 to amendment No. 2015.

  The amendment is as follows:

       In the amendment, strike ``5 days'' and insert ``4 days''.


                             Cloture Motion

  Mr. REID. Mr. President, I have a cloture motion at the desk.
  The PRESIDING OFFICER. The cloture motion having been presented under 
rule XXII, the Chair directs the clerk to read the motion.
  The assistant legislative clerk read as follows:

                             Cloture Motion

       We, the undersigned Senators, in accordance with the 
     provisions of rule XXII of the Standing Rules of the Senate, 
     hereby move to bring to a close debate on S. 1789, the 21st 
     Century Postal Service Act.
         Harry Reid, Joseph I. Lieberman, Sherrod Brown, Debbie 
           Stabenow, Thomas R. Carper, Bernard Sanders, Jeanne 
           Shaheen, Bill Nelson, Christopher A. Coons, Sheldon 
           Whitehouse, Kirsten E. Gillibrand, Charles E. Schumer, 
           Jack Reed, John F. Kerry, Daniel K. Inouye, Richard 
           Blumenthal.

  Mr. REID. I ask for the yeas and nays on the motion.
  The PRESIDING OFFICER. The yeas and nays are not necessary.
  Mr. REID. Mr. President, I got ahead of myself. Reading was one of my 
better subjects, but I skipped a line.


               Motion to Recommit With Amendment No. 2017

  Mr. President, I have a motion to recommit the bill with 
instructions, which is at the desk.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Nevada [Mr. Reid] moves to recommit the 
     bill, S. 1789, to the Committee on Homeland Security and 
     Governmental Affairs with instructions to report back 
     forthwith with an amendment numbered 2017.

  The amendment is as follows:

       At the end, add the following new section:

     SEC. __

       This Act shall become effective 3 days after enactment.

  Mr. REID. Mr. President, I ask for the yeas and nays on that motion.
  The PRESIDING OFFICER. Is there a sufficient second?
  There appears to be a sufficient second.
  The yeas and nays were ordered.


                           Amendment No. 2018

  Mr. REID. Mr. President, I have an amendment to the instructions at 
the desk.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Nevada [Mr. Reid] proposes an amendment 
     numbered 2018 to the instructions (amendment No. 2017) of the 
     motion to recommit S. 1789.

  The amendment is as follows:

       In the amendment, strike ``3 days'' and insert ``2 days''.

  Mr. REID. Mr. President, I ask for the yeas and nays on that 
amendment.
  The PRESIDING OFFICER. Is there a sufficient second?
  There appears to be a sufficient second.
  The yeas and nays were ordered.


                Amendment No. 2019 to Amendment No. 2018

  Mr. REID. Mr. President, I have a second-degree amendment at the 
desk.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Nevada [Mr. Reid] proposes an amendment 
     numbered 2019 to amendment No. 2018.

  The amendment is as follows:

       In the amendment, strike ``2 days'' and insert ``1 day''.

  Mr. REID. Mr. President, I have another matter of business, but I 
wish to say to all Senators here, not just the Senator from Kentucky 
who objected to a reasonable manner to proceed on this measure--all 
States are going to be dramatically impacted by virtue of his 
objection. Post offices in Nevada will be closed and in Minnesota, 
Massachusetts, Tennessee, unnecessarily.
  We need to be able to work through this. I do not know how anyone 
could object to a standard as we have had, as I have proposed: relevant 
amendments. It is too bad. Eight million people depend on the Postal 
Service. That is 8 million people who work as a result of the Postal 
Service. Mr. President, 500,000 people work for the Postal Service 
directly. So we have an obligation to do something about this 
legislation.

[[Page S2370]]

  Even though my friend, who is one of the leaders of the tea party 
movement around the country, has thrown a monkey wrench into what we 
are doing on a postal bill--moving to some foreign relations matter--it 
is too bad. It cheapens what we are trying to do, and it is unfortunate 
for millions of people in America.

                          ____________________