[Congressional Record Volume 158, Number 55 (Tuesday, April 17, 2012)]
[Senate]
[Pages S2435-S2451]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
21ST CENTURY POSTAL SERVICE ACT
Amendment No. 2000, as Modified
Mr. REID. Mr. President, due to a clerical error, the printout of
amendment No. 2000, which was filed at the desk last evening, had
missing pages.
I ask unanimous consent that the amendment be modified with the
additional pages at the desk; further, that the cloture motion filed
earlier today with respect to amendment No. 2000 be applicable to
amendment No. 2000, as modified.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment (No. 2000), as modified, is as follows:
(Purpose: In the nature of a substitute)
Strike all after the enacting clause and insert 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. Incentives for voluntary separation.
Sec. 103. Restructuring of payments for retiree health benefits.
Sec. 104. Postal Service Health Benefits Program.
Sec. 105. Medicare coordination efforts for Postal Service employees
and retirees.
Sec. 106. Arbitration; labor disputes.
TITLE II--POSTAL SERVICES AND OPERATIONS
Sec. 201. Maintenance of delivery service standards.
Sec. 202. Preserving mail processing capacity.
Sec. 203. Establishment of retail service standards.
Sec. 204. Expanded retail access.
Sec. 205. Preserving community post offices.
Sec. 206. Area and district office structure.
Sec. 207. Conversion of door delivery points.
Sec. 208. Limitations on changes to mail delivery schedule.
Sec. 209. Time limits for consideration of service changes.
Sec. 210. Public procedures for significant changes to mailing
specifications.
Sec. 211. Nonpostal products and services.
Sec. 212. Chief Innovation Officer; innovation strategy.
Sec. 213. Strategic Advisory Commission on Postal Service Solvency and
Innovation.
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.
Sec. 316. Effective date.
TITLE IV--OTHER MATTERS
Sec. 401. Solvency plan.
Sec. 402. Postal rates.
Sec. 403. Co-location with Federal agencies.
Sec. 404. Cooperation with State and local governments; intra-Service
agreements.
Sec. 405. Shipping of wine, beer, and distilled spirits.
Sec. 406. Annual report on United States mailing industry.
Sec. 407. Use of negotiated service agreements.
Sec. 408. Contract disputes.
Sec. 409. 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, 2013, and 2014
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 incentives for voluntary separation, in
accordance with section 102 of the 21st Century Postal
Service Act of 2012 and sections 8332(p) and 8411(m) of this
title, to employees of the United States Postal Service who
voluntarily separate from service before October 1, 2015.
``(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. INCENTIVES FOR VOLUNTARY SEPARATION.
(a) Voluntary Separation Incentive Payments.--The Postal
Service may provide voluntary separation incentive payments
to employees of the Postal Service who voluntarily separate
from service before October 1, 2015 (including payments to
employees who retire under section 8336(d)(2) or
8414(b)(1)(B) of title 5, United States Code, before October
1, 2015), which may not exceed the maximum amount provided
under section 3523(b)(3)(B) of title 5, United States Code,
for any employee.
(b) Additional Service Credit.--
(1) 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, 2015, the Office, if
so directed by the United States Postal Service, shall add
not more than 1 year 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) The United States Postal Service shall ensure that
the average actuarial present value of the additional
liability of the United States Postal Service to the Fund
resulting from additional creditable service provided under
paragraph (1) or section 8411(m)(1) is not more than $25,000
per employee provided additional creditable service under
paragraph (1) or section 8411(m)(1).
``(3)(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).''.
(2) 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, 2015, the Office, if
so directed by the United States Postal Service, shall add
not more than 2 years to the total
[[Page S2436]]
creditable service of the employee for purposes of
determining entitlement to and computing the amount of an
annuity under this chapter (except for a disability annuity
under subchapter V of that chapter).
``(B) An employee who receives additional creditable
service under this paragraph may not receive a voluntary
separation incentive payment from the United States Postal
Service.
``(2) The United States Postal Service shall ensure that
the average actuarial present value of the additional
liability of the United States Postal Service to the Fund
resulting from additional creditable service provided under
paragraph (1) or section 8332(p)(1) is not more than $25,000
per employee provided additional creditable service under
paragraph (1) or section 8332(p)(1).
``(3)(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).''.
(c) Goals.--
(1) In general.--The Postal Service shall offer incentives
for voluntary separation under this section and the
amendments made by this section as a means of ensuring that
the size and cost of the workforce of the Postal Service is
appropriate to the work required of the Postal Service,
including consideration of--
(A) the closure and consolidation of postal facilities;
(B) the ability to operate existing postal facilities more
efficiently, including by reducing the size or scope of
operations of postal facilities in lieu of closing postal
facilities; and
(C) the number of employees eligible, or projected in the
near-term to be eligible, for retirement, including early
retirement.
(2) Percentage goal.--The Postal Service shall offer
incentives for voluntary separation under this section to a
sufficient number of employees as would reasonably be
expected to lead to an 18 percent reduction in the total
number of career employees of the Postal Service by the end
of fiscal year 2015.
(3) Definition.--In this subsection, the term ``career
employee of the Postal Service'' means an employee of the
Postal Service--
(A) whose appointment is not for a limited period; and
(B) who is eligible for benefits, including retirement
coverage under chapter 83 or 84 of title 5, United States
Code.
(d) Funding.--The Postal Service shall carry out subsection
(a) and sections 8332(p) and 8411(m) of title 5, United
States Code, as added by subsection (b) of this section,
using funds made available under section 8423(b)(5)(C) of
title 5, United States Code, as amended by section 101 of
this Act.
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) by striking paragraph (2) and inserting the following:
``(2)(A) Not later than 180 days after the date of
enactment of the 21st Century Postal Service Act of 2012, or
March 31, 2013, whichever is later, the Office shall compute,
and by June 30 of each succeeding year, the Office shall
recompute, a schedule including a series of annual
installments which provide for the liquidation of the amount
described under subparagraph (B) (regardless of whether the
amount is a liability or surplus) by September 30, 2052, or
within 15 years, whichever is later, including interest at
the rate used in the computations under this subsection.
``(B) The amount described in this subparagraph is the
amount, as of the date on which the applicable computation or
recomputation under subparagraph (A) is made, that is equal
to the difference between--
``(i) 80 percent of the Postal Service actuarial liability
as of September 30 of the most recently ended fiscal year;
and
``(ii) the value of the assets of the Postal Retiree Health
Benefits Fund as of September 30 of the most recently ended
fiscal year.''.
(B) in paragraph (3)--
(i) in subparagraph (A)--
(I) in clause (iii), by adding ``and'' at the end;
(II) in clause (iv), by striking the semicolon at the end
and inserting a period; and
(III) by striking clauses (v) through (x); and
(ii) in subparagraph (B), by striking ``2017'' and
inserting ``2013'';
(C) by amending paragraph (4) to read as follows:
``(4) Computations under this subsection shall be based
on--
``(A) economic and actuarial methods and assumptions
consistent with the methods and assumptions used in
determining the Postal surplus or supplemental liability
under section 8348(h); and
``(B) any other methods and assumptions, including a health
care cost trend rate, that the Director of the Office
determines to be appropriate.''; and
(D) by adding at the end the following:
``(7) In this subsection, the term `Postal Service
actuarial liability' means the difference between--
``(A) the net present value of future payments required
under section 8906(g)(2)(A) for current and future United
States Postal Service annuitants; and
``(B) the net present value as computed under paragraph (1)
attributable to the future service of United States Postal
Service employees.''; and
(2) by adding at the end the following:
``(e) Subsections (a) through (d) of this section shall be
subject to section 104 of the 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. MEDICARE COORDINATION EFFORTS FOR POSTAL SERVICE
EMPLOYEES AND RETIREES.
(a) Additional Enrollment Options Under Federal Employees
Health Benefits Plans.--Chapter 89 of title 5, United States
Code, is amended by inserting after section 8903b the
following:
``SEC. 8903C. COORDINATION WITH MEDICARE FOR POSTAL SERVICE
EMPLOYEES AND ANNUITANTS.
``(a) Definitions.--In this section--
[[Page S2437]]
``(1) the term `contract year' means a calendar year in
which health benefits plans are administered under this
chapter;
``(2) the term `Medicare part A' means the Medicare program
for hospital insurance benefits under part A of title XVIII
of the Social Security Act (42 U.S.C. 1395c et seq.);
``(3) the term `Medicare part B' means the Medicare program
for supplementary medical insurance benefits under part B of
title XVIII of the Social Security Act (42 U.S.C. 1395j et
seq.); and
``(4) the term `Postal Service employee or annuitant' means
an individual who is--
``(A) an employee of the Postal Service; or
``(B) an annuitant covered under this chapter whose
Government contribution is paid by the Postal Service under
section 8906(g)(2).
``(b) Enrollment Options.--
``(1) Establishment.--
``(A) In general.--For contract years beginning on or after
January 1, 2014, the Office shall establish enrollment
options for health benefits plans that are open only to
Postal Service employees and annuitants, and family members
of a Postal Service employee or annuitant, who are enrolled
in Medicare part A and Medicare part B.
``(B) Additional plans.--The enrollment options established
under this subsection shall be in addition to any other
health benefit plan or enrollment option otherwise available
to Postal Service employees or annuitants under this chapter
and shall not affect the eligibility of a Postal Service
employee or annuitant for any another health benefit plan or
enrollment option under this chapter.
``(2) Enrollment eligibility.--Any Postal Service employee
or annuitant, or family member of a Postal Service employee
or annuitant, who is enrolled in Medicare part A and Medicare
part B may enroll in 1 of the enrollment options established
under paragraph (1).
``(3) Value of coverage.--The Office shall ensure that the
aggregate actuarial value of coverage under the enrollment
options established under this subsection, in combination
with the value of coverage under Medicare part A and Medicare
part B, shall be not less than the actuarial value of the
most closely corresponding enrollment options for each plan
available under section 8905, in combination with the value
of coverage under Medicare part A and Medicare part B.
``(4) Enrollment options.--
``(A) In general.--The enrollment options established under
paragraph (1) shall include--
``(i) an individual option, for Postal Service employees or
annuitants enrolled in Medicare part A and Medicare part B;
``(ii) a self and family option, for Postal Service
employees or annuitants and family members who are each
enrolled in Medicare part A and Medicare part B; and
``(iii) a self and family option, for Postal Service
employees or annuitants--
``(I) who are enrolled in Medicare part A and Medicare part
B; and
``(II) the family members of whom are not enrolled in
Medicare part A or Medicare part B.
``(B) Specific sub-options.--The Office may establish more
specific enrollment options within the types of options
described under subparagraph (A).
``(5) Reduced premiums to account for medicare
coordination.--In determining the premiums for the enrollment
options under paragraph (4), the Office shall--
``(A) establish a separate claims pool for individuals
eligible for coverage under any of those options; and
``(B) ensure that--
``(i) the premiums are reduced from the premiums otherwise
established under this chapter to directly reflect the full
cost savings to the health benefits plans due to the complete
coordination of benefits with Medicare part A and Medicare
part B for Postal Service employees or annuitants, or family
members of Postal Service employees or annuitants, who are
enrolled in Medicare part A and Medicare part B; and
``(ii) the cost savings described under clause (i) result
solely in the reduction of--
``(I) the premiums paid by the Postal Service employee or
annuitant; and
``(II) the Government contributions paid by the Postal
Service or other employer.
``(c) Postal Service Consultation.--The Office shall
establish the enrollment options and premiums under this
section in consultation with the Postal Service.''.
(b) Technical and Conforming Amendments.--The table of
sections for chapter 89 of title 5, United States Code, is
amended by inserting after the item relating to section 8903b
the following:
``8903c. Coordination with Medicare for Postal Service employees and
annuitants.''.
(c) Effective Date.--The amendments made by subsection (a)
shall apply with respect to contract years beginning on or
after January 1, 2014.
(d) Special Enrollment Period for Postal Service Employees
and Annuitants.--
(1) Special enrollment period.--Section 1837 of the Social
Security Act (42 U.S.C. 1395p) is amended by adding at the
end the following new subsection:
``(m)(1) In the case of any individual who, as of the date
of enactment of the 21st Century Postal Service Act of 2012,
is a Postal Service employee or annuitant (as defined in
section 8903c(a) of title 5, United States Code) at the time
the individual is entitled to part A under section 226 or
section 226A and who is eligible to enroll but who has
elected not to enroll (or to be deemed enrolled) during the
individual's initial enrollment period, there shall be a
special enrollment period described in paragraph (2).
``(2) The special enrollment period described in this
paragraph, with respect to an individual, is the 1-year
period beginning on July 1, 2013.
``(3) In the case of an individual who enrolls during the
special enrollment period provided under paragraph (1), the
coverage period under this part shall begin on the first day
of the month in which the individual enrolls.''.
(2) Waiver of increase of premium.--Section 1839(b) of the
Social Security Act (42 U.S.C. 1395r(b)) is amended by
striking ``(i)(4) or (l)'' and inserting ``(i)(4), (l), or
(m)''.
(e) Educational Program.--The Postmaster General, in
consultation with the Director of the Office of Personnel
Management and the Administrator of the Centers for Medicare
& Medicaid Services, shall develop an educational program to
encourage the voluntary use of the Medicare program for
hospital insurance benefits under part A of title XVIII of
the Social Security Act (42 U.S.C. 1395c et seq.) (commonly
known as ``Medicare Part A'') and the Medicare program for
supplementary medical insurance benefits under part B of
title XVIII of the Social Security Act (42 U.S.C. 1395j et
seq.) (commonly known as ``Medicare Part B'') for eligible
Postal Service employees and annuitants that may benefit from
enrollment, the objective of which shall be to--
(1) educate employees and annuitants on how Medicare
benefits interact with and can supplement the benefits of the
employee or annuitant under the Federal Employees Health
Benefit Program; and
(2) reduce costs to the Federal Employees Health Benefit
Program, beneficiaries, and the Postal Service by
coordinating services with the Medicare program.
SEC. 106. ARBITRATION; LABOR DISPUTES.
Section 1207(c) of title 39, United States Code, is
amended--
(1) in paragraph (2)--
(A) by inserting ``(A)'' after ``(2)'';
(B) by striking the last sentence and inserting ``The
arbitration board shall render a decision not later than 45
days after the date of its appointment.''; and
(C) by adding at the end the following:
``(B) In rendering a decision under this paragraph, the
arbitration board shall consider such relevant factors as the
financial condition of the Postal Service.''; and
(2) by adding at the end the following:
``(4) Nothing in this section may be construed to limit the
relevant factors that the arbitration board may take into
consideration in rendering a decision under paragraph (2).''.
TITLE II--POSTAL SERVICES AND OPERATIONS
SEC. 201. MAINTENANCE OF DELIVERY SERVICE STANDARDS.
(a) Definitions.--For purposes of this section--
(1) the term ``plant service area'' means the geographic
area served by a single sectional center facility, or a
corresponding successor facility, as designated by the Postal
Service; and
(2) the term ``continental United States'' means the 48
contiguous States and the District of Columbia.
(b) Interim Maintenance of Standards.--During the 3-year
period beginning on the date of enactment of this Act, the
Postal Service--
(1) shall maintain the service standards described in
subsection (c);
(2) may not establish a new or revised service standard for
market-dominant products under section 3691 of title 39,
United States Code, that is inconsistent with the
requirements under subsection (c); and
(3) shall include in any new or revised overnight service
standard established for market-dominant products under
section 3691 of title 39, United States Code, a policy on
changes to critical entry times at post offices and business
mail entry units that ensures that any such changes maintain
meaningful access to the services provided under the service
standard required to be maintained under subsection (c).
(c) Service Standards.--
(1) Overnight standard for first-class mail and
periodicals.--
(A) In general.--Except as provided in subparagraph (B),
the Postal Service shall maintain an overnight service
standard that provides overnight service for first-class mail
and periodicals that--
(i) originate and destinate in the same plant service area;
and
(ii) enter the mails before the critical entry time
established and published by the Postal Service.
(B) Areas outside the continental united states.--The
requirements of subparagraph (A) shall not apply to areas
outside the continental United States--
(i) in the case of mail that originates or destinates in a
territory or possession of the United States that is part of
a plant service area having a sectional center facility
that--
(I) is not located in the territory or possession; and
(II) was not located in the territory or possession on
January 1, 2012; and
(ii) in the case of mail not described in clause (i),
except to the extent that the requirements are consistent
with the service
[[Page S2438]]
standards under part 121 of title 39, Code of Federal
Regulations, as in effect on January 1, 2012.
(2) Two-day delivery for first-class mail.--The Postal
Service shall maintain a service standard that provides that
first-class mail not delivered overnight will be delivered
within 2 delivery days, to the maximum extent feasible using
the network of postal facilities maintained to meet the
requirements under paragraph (1).
(3) Maximum delivery time for first-class mail.--
(A) In general.--The Postal Service shall maintain a
service standard that provides that first-class mail will be
delivered--
(i) within a maximum of 3 delivery days, for mail that
originates and destinates within the continental United
States; and
(ii) within a maximum period of time consistent with
service standards under part 121 of title 39, Code of Federal
Regulations, as in effect on January 1, 2012, for mail
originating or destinating outside the continental United
States.
(B) Revisions.--Notwithstanding subparagraph (A)(ii), the
Postal Service may revise the service standards under part
121 of title 39, Code of Federal Regulations for mail
described in subparagraph (A)(ii) to take into account
transportation conditions (including the availability of
transportation) or other circumstances outside the control of
the Postal Service.
SEC. 202. PRESERVING MAIL PROCESSING CAPACITY.
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 without closing 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 without
closing the postal facility has been completed;
``(II) an area mail processing study is in progress; or
``(III) a determination as to the necessity for the closing
or consolidation of the postal facility has not been made.
``(3) Notice, public comment, and public hearing.--If the
Postal Service makes a determination under subsection (a)(3)
to close or consolidate a postal facility, the Postal Service
shall--
``(A) provide notice of the determination to--
``(i) Congress; and
``(ii) the Postal Regulatory Commission;
``(B) provide adequate public notice of the intention of
the Postal Service to close or consolidate the postal
facility;
``(C) ensure that interested persons have an opportunity to
submit public comments during a 45-day period after the
notice of intention is provided under subparagraph (B);
``(D) before the 45-day period described in subparagraph
(C), provide for public notice of that opportunity by--
``(i) publication on the Postal Service website;
``(ii) posting at the affected postal facility; and
``(iii) advertising the date and location of the public
community meeting under subparagraph (E); and
``(E) during the 45-day period described in subparagraph
(C), conduct a public community meeting that provides an
opportunity for public comments to be submitted verbally or
in writing.
``(4) Further considerations.--Not earlier than 30 days
after the end of the 45-day period for public comment under
paragraph (3), the Postal Service, in making a determination
to close or consolidate a postal facility, shall consider--
``(A) the views presented by interested persons under
paragraph (3);
``(B) the effect of the closing or consolidation on the
affected community, including any disproportionate impact the
closing or consolidation may have on a State, region, or
locality;
``(C) the effect of the closing or consolidation on the
travel times and distances for affected customers to access
services under the proposed closing or consolidation;
``(D) the effect of the closing or consolidation on
delivery times for all classes of mail;
``(E) any characteristics of certain geographical areas,
such as remoteness, broadband internet availability, and
weather-related obstacles to using alternative facilities,
that may result in the closing or consolidation having a
unique effect; and
``(F) any other factor the Postal Service determines is
necessary.
``(5) Justification statement.--Before the date on which
the Postal Service closes or consolidates a postal facility,
the Postal Service shall post on the Postal Service website a
closing 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 the final determination and the justification
statement under paragraph (5) with respect to a postal
facility, the Postal Service may close or consolidate the
postal facility.
``(B) Alternative intake of mail.--If the Postal Service
closes or consolidates a postal facility under subparagraph
(A), the Postal Service shall make reasonable efforts to
ensure continued mail receipt from customers of the closed or
consolidated postal facility at the same location or at
another appropriate location in close geographic proximity to
the closed or consolidated postal facility.
``(C) Limitations.--During the 3-year period beginning on
the date of enactment of the 21st Century Postal Service Act
of 2012, the Postal Service may not close or consolidate a
postal facility if the closing or consolidation prevents the
Postal Service from maintaining service standards as required
under section 201 of the 21st Century Postal Service Act of
2012.
``(7) Review by postal regulatory commission.--In
accordance with section 3662--
``(A) an interested person may lodge a complaint with the
Postal Regulatory Commission if the person believes that the
closure or consolidation of a postal facility is not in
conformance with applicable service standards, including the
service standards established under section 201 of the 21st
Century Postal Service Act of 2012; and
``(B) if the Postal Regulatory Commission finds a complaint
lodged by an interested person to be justified, the
Commission shall order the Postal Service to take appropriate
action to achieve compliance with applicable service
standards, including the service standards established under
section 201 of the 21st Century Postal Service Act of 2012,
or to remedy the effects of any noncompliance.
``(8) Postal service website.--For purposes of any notice
required to be published on the Postal Service website under
this subsection, the Postal Service shall ensure that the
Postal Service website--
``(A) is updated routinely; and
``(B) provides any person, at the option of the person, the
opportunity to receive relevant updates by electronic mail.
``(9) Protection of certain information.--Nothing in this
subsection may be construed to require the Postal Service to
disclose--
``(A) any proprietary data, including any reference or
citation to proprietary data; or
``(B) any information relating to the security of a postal
facility.''.
SEC. 203. ESTABLISHMENT OF RETAIL SERVICE STANDARDS.
(a) Definition.--In this section, the term ``retail postal
service'' means service that allows a postal customer to--
(1) purchase postage;
(2) enter packages into the mail; and
(3) procure other services offered by the Postal Service.
(b) Establishment of Retail Service Standards.--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.
(c) Contents.--The service standards established under
subsection (b) shall--
(1) be consistent with--
(A) the obligations of the Postal Service under section
101(b) of title 39, United States Code; and
(B) the contents of the plan developed under section 302 of
the Postal Accountability and Enhancement Act of 2006 (39
U.S.C. 3691 note), and any updated or revised plan developed
under section 204 of this Act; and
(2) take into account factors including--
[[Page S2439]]
(A) geography, including the establishment of standards for
the proximity of retail postal services to postal customers,
including a consideration of the reasonable maximum time a
postal customer should expect to travel to access a postal
retail location;
(B) the importance of facilitating communications for
communities with limited or no access to Internet, broadband,
or cellular telephone services;
(C) population, including population density, demographic
factors such as the age, disability status, and degree of
poverty 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;
(D) 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);
(E) 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
(F) 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.
SEC. 204. EXPANDED RETAIL ACCESS.
(a) Updated Plan.--Not later than 1 year after the date of
enactment of this Act, the Postal Service shall, in
consultation with the Commission, develop and submit to
Congress a revised and updated version of the plan to expand
and market retail access to postal services required under
section 302(d) of the Postal Accountability and Enhancement
Act of 2006 (39 U.S.C. 3691 note).
(b) Contents.--The plan required under subsection (a)
shall--
(1) include a consideration of methods to expand and market
retail access to postal services described in paragraphs (1)
through (8) of section 302(d) of the Postal Accountability
and Enhancement Act of 2006 (39 U.S.C. 3691 note);
(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 rural
areas, communities, and small towns; and
(4) ensure that--
(A) rural areas, communities, and small towns 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.
(c) Further Updates.--The Postal Service, in consultation
with the Commission, shall--
(1) update the plan required under subsection (a) as the
Postal Service determines is appropriate; and
(2) submit each update under paragraph (1) to Congress.
SEC. 205. PRESERVING COMMUNITY POST OFFICES.
(a) Closing Post Offices.--Section 404(d) of title 39,
United States Code, is amended to read as follows:
``(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.
``(2) The Postal Service, in making a determination whether
or not to close or consolidate a post office--
``(A) shall consider--
``(i) the effect of such closing or consolidation on the
community served by such post office;
``(ii) the effect of such closing or consolidation on
employees of the Postal Service employed at such office;
``(iii) whether such closing or consolidation is consistent
with the policy of the Government, as stated in section
101(b) of this title, that the Postal Service shall provide a
maximum degree of effective and regular postal services to
rural areas, communities, and small towns where post offices
are not self-sustaining;
``(iv) the extent to which the community served by the post
office lacks access to Internet, broadband and cellular phone
service;
``(v) the economic savings to the Postal Service resulting
from such closing or consolidation; and
``(vi) such other factors as the Postal Service determines
are necessary; and
``(B) may not consider compliance with any provision of the
Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et
seq.).
``(3) Any determination of the Postal Service to close or
consolidate a post office shall be in writing and shall
include the findings of the Postal Service with respect to
the considerations required to be made under paragraph (2) of
this subsection. Such determination and findings shall be
made available to persons served by such post office.
``(4) The Postal Service shall take no action to close or
consolidate a post office until 60 days after its written
determination is made available to persons served by such
post office.
``(5) A determination of the Postal Service to close or
consolidate any post office, station, or branch may be
appealed by any person served by such office, station, or
branch to the Postal Regulatory Commission within 30 days
after such determination is made available to such person.
The Commission shall review such determination on the basis
of the record before the Postal Service in the making of such
determination. The Commission shall make a determination
based upon such review no later than 120 days after receiving
any appeal under this paragraph. The Commission shall set
aside any determination, findings, and conclusions found to
be--
``(A) arbitrary, capricious, an abuse of discretion, or
otherwise not in accordance with the law;
``(B) without observance of procedure required by law;
``(C) not in conformance with the retail service standards
established under section 203 of the 21st Century Postal
Service Act of 2012; or
``(D) unsupported by substantial evidence on the record.
The Commission may affirm the determination of the Postal
Service or order that the entire matter be returned for
further consideration, but the Commission may not modify the
determination of the Postal Service. The Commission may
suspend the effectiveness of the determination of the Postal
Service until the final disposition of the appeal. The
provisions of section 556, section 557, and chapter 7 of
title 5 shall not apply to any review carried out by the
Commission under this paragraph.
``(6) For purposes of paragraph (5), any appeal received by
the Commission shall--
``(A) if sent to the Commission through the mails, be
considered to have been received on the date of the Postal
Service postmark on the envelope or other cover in which such
appeal is mailed; or
``(B) if otherwise lawfully delivered to the Commission, be
considered to have been received on the date determined based
on any appropriate documentation or other indicia (as
determined under regulations of the Commission).
``(7) Nothing in this subsection shall be construed to
limit the right under section 3662--
``(A) of an interested person to lodge a complaint with the
Postal Regulatory Commission under section 3662 concerning
nonconformance with service standards, including the retail
service standards established under section 203 of the 21st
Century Postal Service Act of 2012; or
``(B) of the Postal Regulatory Commission, if the
Commission finds a complaint lodged by an interested person
to be justified, to order the Postal Service to take
appropriate action to achieve compliance with applicable
requirements, including the retail service standards
established under section 203 of the 21st Century Postal
Service Act of 2012, or to remedy the effects of any
noncompliance.''.
(b) Prohibition on Closing Post Offices.--Notwithstanding
section 404(d) of title 39, United States Code, as amended by
this section, during the period beginning on the date of
enactment of this Act and ending on the date on which the
Postal Service establishes the retail service standards under
section 203 of this Act, the Postal Service may not close a
post office, except as required for the immediate protection
of health and safety.
(c) Historic Post Offices.--Section 404(d) of title 39,
United States Code, as amended by this section, is amended by
adding at the end the following:
``(8)(A) In this paragraph, the term `historic post office
building' means a post office building that is a certified
historic structure, as that term is defined in section
47(c)(3) of the Internal Revenue Code of 1986.
``(B) In the case of a post office that has been closed and
that is located within a historic post office building, the
Postal Service shall provide Federal agencies and State and
local government entities the opportunity to lease the
historic post office building, if--
``(i) the Postal Service is unable to sell the building at
an acceptable price within a reasonable period of time after
the post office has been closed; and
``(ii) the Federal agency or State or local government
entity that leases the building agrees to--
``(I) restore the historic post office building at no cost
to the Postal Service;
``(II) assume responsibility for the maintenance of the
historic post office building; and
[[Page S2440]]
``(III) make the historic post office building available
for public use.''.
SEC. 206. 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 within the
continental United States (as defined in section 201(a))
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.
(d) State Liaison.--If the Postal Service does not maintain
a district office in a State, the Postal Service shall
designate at least 1 employee of the district office
responsible for Postal Service operations in the State to
represent the needs of Postal Service customers in the State.
SEC. 207. 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 solvency plan required under
section 401 of the 21st Century Postal Service Act of 2012
and standards established by the Postal Service, the Postal
Service is authorized to, to the maximum extent feasible,
convert door delivery points to--
``(1) curbline delivery points;
``(2) sidewalk delivery points; or
``(3) centralized delivery points.
``(c) Exceptions.--
``(1) Continued door delivery.--The Postal Service may
allow for the continuation of door delivery due to--
``(A) a physical hardship of a customer;
``(B) weather, in a geographic area where snow removal
efforts could obstruct access to mailboxes near a road;
``(C) circumstances in an urban area that preclude
efficient use of curbline delivery points;
``(D) other exceptional circumstances, as determined in
accordance with regulations issued by the Postal Service; or
``(E) other circumstances in which the Postal Service
determines that alternatives to door delivery would not be
practical or cost effective.
``(2) New door delivery points.--The Postal Service may
provide door delivery to a new delivery point in a delivery
area that received door delivery on the day before the date
of enactment of this section, if the delivery point is
established before the delivery area is converted from door
delivery under subsection (b).
``(d) Solicitation of Comments.--The Postal Service shall
establish procedures to solicit, consider, and respond to
input from individuals affected by a conversion under this
section.
``(e) Review.--Subchapter V of this chapter shall not apply
with respect to any action taken by the Postal Service under
this section.
``(f) Report.--Not later than 60 days after the end of each
fiscal year through fiscal year 2015, the Postal Service
shall submit to Congress and the Inspector General of the
Postal Service a report on the implementation of this section
during the preceding fiscal year that--
``(1) includes the number of door delivery points--
``(A) that existed at the end of the fiscal year preceding
the preceding fiscal year;
``(B) that existed at the end of the preceding fiscal year;
``(C) that, during the preceding fiscal year, converted
to--
``(i) curbline delivery points or sidewalk delivery points;
``(ii) centralized delivery points; and
``(iii) any other type of delivery point; and
``(D) for which door delivery was continued under
subsection (c)(1);
``(2) estimates any cost savings, revenue loss, or decline
in the value of mail resulting from the conversions from door
delivery that occurred during the preceding fiscal year;
``(3) describes the progress of the Postal Service toward
achieving the conversions authorized under subsection (b);
and
``(4) provides such additional information as the Postal
Service considers appropriate.''.
(b) Clerical Amendment.--The table of sections for
subchapter VII of chapter 36 of title 39, United States Code,
is amended by adding at the end the following:
``3692. Conversion of door delivery points.''.
SEC. 208. 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, 207, and 211 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 achieve long-term 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
[[Page S2441]]
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
achieve long-term 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
increase revenue and reduce costs 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 achieve long-term
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 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.
(e) Definition.--In this section, the term ``long-term
solvency'' means the ability of the Postal Service to pay
debts and meet expenses, including the ability to perform
maintenance and repairs, make investments, and maintain
financial reserves, as necessary to fulfill the requirements
and comply with the policies of title 39, United States Code,
and other obligations of the Postal Service over the long
term.
SEC. 209. TIME LIMITS FOR CONSIDERATION OF SERVICE CHANGES.
Section 3661 of title 39, United States Code, is amended by
striking subsections (b) and (c) and inserting the following:
``(b) Proposed Changes for Market-dominant Products.--
``(1) Submission of proposal.--If the Postal Service
determines that there should be a change in the nature of
postal services relating to market-dominant products that
will generally affect service on a nationwide or
substantially nationwide basis, the Postal Service shall
submit a proposal to the Postal Regulatory Commission
requesting an advisory opinion on the change.
``(2) Advisory opinion.--Upon receipt of a proposal under
paragraph (1), the Postal Regulatory Commission shall--
``(A) provide an opportunity for public comment on the
proposal; and
``(B) issue an advisory opinion not later than--
``(i) 90 days after the date on which the Postal Regulatory
Commission receives the proposal; or
``(ii) a date that the Postal Regulatory Commission and the
Postal Service may, not later than 1 week after the date on
which the Postal Regulatory Commission receives the proposal,
determine jointly.
``(3) Response to opinion.--The Postal Service shall submit
to the President and to Congress a response to an advisory
opinion issued under paragraph (2) that includes--
``(A) a statement of whether the Postal Service plans to
modify the proposal to address any concerns or implement any
recommendations made by the Commission; and
``(B) for any concern that the Postal Service determines
not to address and any recommendation that the Postal Service
determines not to implement, the reasons for the
determination.
``(4) Action on proposal.--The Postal Service may take
action regarding a proposal submitted under paragraph (1)--
``(A) on or after the date that is 30 days after the date
on which the Postal Service submits the response required
under paragraph (3);
``(B) on or after a date that the Postal Regulatory
Commission and the Postal Service may, not later than 1 week
after the date on which the Postal Regulatory Commission
receives a proposal under paragraph (2), determine jointly;
or
``(C) after the date described in paragraph (2)(B), if--
``(i) the Postal Regulatory Commission fails to issue an
advisory opinion on or before the date described in paragraph
(2)(B); and
``(ii) the action is not otherwise prohibited under Federal
law.
``(5) Modification of timeline.--At any time, the Postal
Service and the Postal Regulatory Commission may jointly
redetermine a date determined under paragraph (2)(B)(ii) or
(4)(B).''.
SEC. 210. 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
[[Page S2442]]
(ii) responses to the comments submitted under subparagraph
(B).
SEC. 211. 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, taking into consideration the extent to which
the Postal Service will not, either by legal obligation or
voluntarily, comply with any State or local requirements that
are generally applicable to persons that provide the
services;
``(iv) will be undertaken in accordance with all Federal
laws generally applicable to the provision of such services;
and
``(v) 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) Complaints.--Section 3662(a) of title 39, United States
Code, is amended by inserting ``404(a)(6)(A),'' after
``403(c),''.
(c) 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)(v) 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.
SEC. 212. CHIEF INNOVATION OFFICER; INNOVATION STRATEGY.
(a) Chief Innovation Officer.--
(1) In general.--Chapter 2 of title 39, United States Code,
is amended by adding at the end the following:
``Sec. 209. Chief innovation officer
``(a) Establishment.--There shall be in the Postal Service
a Chief Innovation Officer appointed by the Postmaster
General.
``(b) Qualifications.--The Chief Innovation Officer shall
have proven expertise and a record of accomplishment in areas
such as--
``(1) the postal and shipping industry;
``(2) innovative product research and development;
``(3) brand marketing strategy;
``(4) new and emerging technology, including communications
technology; or
``(5) business process management.
``(c) Duties.--The Chief Innovation Officer shall lead the
development and implementation of--
``(1) innovative postal products and services, particularly
products and services that use new and emerging technology,
including communications technology, to improve the net
financial position of the Postal Service; and
``(2) nonpostal products and services authorized under
section 404(a)(6) that have the potential to improve the net
financial position of the Postal Service.
``(d) Deadline.--The Postmaster General shall appoint a
Chief Innovation Officer not later than 90 days after the
date of enactment of the 21st Century Postal Service Act of
2012.
``(e) Condition.--
``(1) In general.--The Chief Innovation Officer may not
hold any other office or position in the Postal Service while
serving as Chief Innovation Officer.
``(2) Rule of construction.--Nothing in this section shall
be construed to prohibit an individual who holds another
office or position in the Postal Service at the time the
individual is appointed Chief Innovation Officer from serving
as the Chief Innovation Officer under this section.''.
(2) Technical and conforming amendment.--The table of
sections for chapter 2 of title 39, United States Code, is
amended by adding at the end the following:
``209. Chief innovation officer.''.
(b) Innovation Strategy.--
(1) Initial report on innovation strategy.--
(A) In general.--Not later than 1 year after the date of
enactment of this Act, the Postmaster General, acting through
the Chief Innovation Officer, shall submit a report that
contains a comprehensive strategy (referred to in this
subsection as the ``innovation strategy'') for improving the
net financial position of the Postal Service through
innovation, including the offering of new postal and
nonpostal products and services, to--
(i) the Committee on Homeland Security and Governmental
Affairs of the Senate; and
(ii) the Committee on Oversight and Government Reform of
the House of Representatives.
(B) Matters to be addressed.--At a minimum, the report on
innovation strategy required under subparagraph (A) shall
describe--
(i) the specific innovative postal and nonpostal products
and services to be developed and offered by the Postal
Service, including--
(I) the nature of the market demand to be satisfied by each
product or service; and
(II) the estimated date by which each product or service
will be introduced;
(ii) the cost of developing and offering each product or
service;
(iii) the anticipated sales volume for each product or
service;
(iv) the anticipated revenues and profits to be generated
by each product or service;
(v) the likelihood of success of each product or service
and the risks associated with the development and sale of
each product or service;
(vi) the trends anticipated in market conditions that may
affect the success of each product or service during the 5-
year period beginning on the date of the submission of the
report under subparagraph (A);
(vii) any innovations designed to improve the net financial
position of the Postal Service, other than the offering of
new products and services; and
(viii) the metrics that will be used to assess the
effectiveness of the innovation strategy.
(2) Annual report.--
(A) In general.--Not later than 1 year after the date of
the submission of the initial report containing the
innovation strategy under paragraph (1), and annually
thereafter for 10 years, the Postmaster General, acting
through the Chief Innovation Officer, shall submit a report
on the implementation of the innovation strategy to--
(i) the Committee on Homeland Security and Governmental
Affairs of the Senate; and
(ii) the Committee on Oversight and Government Reform of
the House of Representatives.
(B) Matters to be addressed.--At a minimum, an annual
report submitted under subparagraph (A) shall include--
(i) an update of the initial report on innovation strategy
submitted under paragraph (1);
(ii) a description of the progress made by the Postal
Service in implementing the products, services, and other
innovations described in the initial report on innovation
strategy;
(iii) an analysis of the performance of each product,
service, or other innovation described in the initial report
on innovation strategy, including--
(I) the revenue generated by each product or service
developed in accordance with the innovation strategy under
this section and the cost of developing and offering each
product or service for the preceding year;
(II) trends in each market in which a product or service is
intended to satisfy a demand;
(III) each product or service identified in the innovation
strategy that is to be discontinued, the date on which each
discontinuance will occur, and the reasons for each
discontinuance;
(IV) each alteration that the Postal Service plans to make
to a product or service identified in the innovation strategy
to address changing market conditions and an explanation of
how each alteration will ensure the success of the product or
service;
(V) the performance of innovations other than new products
and services that are designed to improve the net financial
position of the Postal Service; and
(VI) the performance of the innovation strategy according
to the metrics described in paragraph (1)(B)(viii).
SEC. 213. STRATEGIC ADVISORY COMMISSION ON POSTAL SERVICE
SOLVENCY AND INNOVATION.
(a) Establishment.--
(1) In general.--There is established in the Postal Service
a Strategic Advisory Commission on Postal Service Solvency
and Innovation (in this section referred to as the ``Advisory
Commission'').
(2) Independence.--The Advisory Commission shall not be
subject to the supervision of the Board of Governors of the
Postal Service (in this section referred to as the ``Board of
Governors''), the Postmaster General, or any other officer or
employee of the Postal Service.
(b) Purpose.--The purpose of the Advisory Commission is--
(1) to provide strategic guidance to the President,
Congress, the Board of Governors, and the Postmaster General
on enhancing the long-term solvency of the Postal Service;
and
(2) to foster innovative thinking to address the challenges
facing the Postal Service.
(c) Membership.--
(1) Composition.--The Advisory Commission shall be composed
of 7 members, of whom--
[[Page S2443]]
(A) 3 members shall be appointed by the President, who
shall designate 1 member appointed under this subparagraph to
serve as Chairperson of the Advisory Commission; and
(B) 1 member shall be appointed by each of--
(i) the majority leader of the Senate;
(ii) the minority leader of the Senate;
(iii) the Speaker of the House of Representatives; and
(iv) the minority leader of the House of Representatives.
(2) Qualifications.--Members of the Advisory Commission
shall be prominent citizens having--
(A) significant depth of experience in such fields as
business and public administration;
(B) a reputation for innovative thinking;
(C) familiarity with new and emerging technologies; and
(D) experience with revitalizing organizations that
experienced significant financial challenges or other
challenges.
(3) Incompatible offices.--An individual who is appointed
to the Advisory Commission may not serve as an elected
official or an officer or employee of the Federal Government
while serving as a member of the Advisory Commission, except
in the capacity of that individual as a member of the
Advisory Commission.
(4) Deadline for appointment.--Each member of the Advisory
Commission shall be appointed not later than 45 days after
the date of enactment of this Act.
(5) Meetings; quorum; vacancies.--
(A) Meetings.--The Advisory Commission shall meet at the
call of the Chairperson or a majority of the members of the
Advisory Commission.
(B) Quorum.--4 members of the Advisory Commission shall
constitute a quorum.
(C) Vacancies.--Any vacancy in the Advisory Commission
shall not affect the powers of the Advisory Commission, but
shall be filled as soon as practicable in the same manner in
which the original appointment was made.
(d) Duties and Powers.--
(1) Duties.--The Advisory Commission shall--
(A) study matters that the Advisory Commission determines
are necessary and appropriate to develop a strategic
blueprint for the long-term solvency of the Postal Service,
including--
(i) the financial, operational, and structural condition of
the Postal Service;
(ii) alternative strategies and business models that the
Postal Service could adopt;
(iii) opportunities for additional postal and nonpostal
products and services that the Postal Service could offer;
(iv) innovative services that postal services in foreign
countries have offered, including services that respond to
the increasing use of electronic means of communication; and
(v) the governance structure, management structure, and
management of the Postal Service, including--
(I) the appropriate method of appointment, qualifications,
duties, and compensation for senior officials of the Postal
Service, including the Postmaster General; and
(II) the number and functions of senior officials of the
Postal Service and the number of levels of management of the
Postal Service; and
(B) submit the report required under subsection (f).
(2) Hearings.--The Advisory Commission may hold such
hearings, take such testimony, and receive such evidence as
is necessary to carry out this section.
(3) Access to information.--The Advisory Commission may
secure directly from the Postal Service, the Board of
Governors, the Postal Regulatory Commission, and any other
Federal department or agency such information as the Advisory
Commission considers necessary to carry out this section.
Upon request of the Chairperson of the Advisory Commission,
the head of the department or agency shall furnish the
information described in the preceding sentence to the
Advisory Commission.
(e) Personnel Matters.--
(1) Advisory commission members.--
(A) Compensation of members.--Each member of the Advisory
Commission shall be compensated at a rate equal to the daily
equivalent of the annual rate of basic pay prescribed for
level IV of the Executive Schedule under section 5315 of
title 5, United States Code, for each day during which the
member is engaged in the actual performance of the duties of
the Advisory Commission.
(B) Travel expenses.--Members of the Advisory Commission
shall be allowed travel expenses, including per diem in lieu
of subsistence, at rates authorized for employees serving
intermittently in the Government service under section 5703
of title 5, United States Code, while away from their homes
or regular places of business in the performance of services
for the Advisory Commission.
(2) Staff.--
(A) Appointment and compensation.--The Chairperson, in
accordance with rules agreed upon by the Advisory Commission,
shall appoint and fix the compensation of an executive
director and such other personnel as may be necessary to
enable the Advisory Commission to carry out the functions of
the Advisory Commission, without regard to the provisions of
title 5, United States Code, governing appointments in the
competitive service, and without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of such title
relating to classification of positions and General Schedule
pay rates, except that a rate of pay fixed under this
subsection may not exceed the rate payable for level V of the
Executive Schedule under section 5316 of title 5, United
States Code.
(B) Detailees.--Any Federal employee, including an employee
of the Postal Service, may be detailed to the Advisory
Commission without reimbursement, and such detail shall be
without interruption or loss of the civil service rights,
status, or privilege of the employee.
(C) Consultant services.--The Advisory Commission may
procure the services of experts and consultants in accordance
with section 3109 of title 5, United States Code, at rates
for individuals that do not exceed the daily equivalent of
the annual rate of basic pay prescribed for level IV of the
Executive Schedule under section 5315 of such title.
(f) Strategic Blueprint for Long-term Solvency.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act, the Advisory Commission shall submit a
report that contains a strategic blueprint to--
(A) the President;
(B) the Committee on Homeland Security and Governmental
Affairs of the Senate;
(C) the Committee on Oversight and Government Reform of the
House of Representatives;
(D) the Board of Governors; and
(E) the Postmaster General.
(2) Contents.--The report submitted under paragraph (1)
shall contain a strategic blueprint for the long-term
solvency of the Postal Service that includes--
(A) an assessment of the business model of the Postal
Service as of the date on which the report is submitted;
(B) an assessment of potential future business models for
the Postal Service, including an evaluation of the
appropriate balance between--
(i) necessary reductions in costs and services; and
(ii) additional opportunities for growth and revenue;
(C) a strategy for addressing significant current and
future liabilities;
(D) identification of opportunities for further reductions
in costs;
(E) identification of opportunities for new and innovative
products and services;
(F) a strategy for future growth;
(G) a vision of how the Postal Service will operate in a
sustainable manner 20 years after the date of enactment of
this Act; and
(H) recommendations for any legislative changes necessary
to implement the strategic blueprint described in this
paragraph.
(g) Termination.--The Advisory Commission shall terminate
90 days after the date on which the Advisory Commission
submits the report under subsection (f).
(h) Authorization of Appropriations.--There are authorized
to be appropriated for fiscal years 2013 and 2014 such sums
as may be necessary to carry out this section.
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-
[[Page S2444]]
home care or custodial care, such as placement in a nursing
home; or
``(C) who is eligible to receive continuous periodic
compensation for total disability under section 8105--
``(i) for not less than the 3-year period ending on the
date of enactment of the Workers' Compensation Reform Act of
2012; or
``(ii) if the individual became eligible to receive
continuous periodic compensation for total disability under
section 8105 during the period beginning on the date that is
3 years before the date of enactment of the Workers'
Compensation Reform Act of 2012 and ending on such date of
enactment, for not less than the 3-year period beginning on
the date on which the individual became eligible.''.
(2) Total disability.--Section 8105 is amended--
(A) in subsection (a), by striking ``If'' and inserting
``In General.--Subject to subsection (b), if'';
(B) by redesignating subsection (b) as subsection (c); and
(C) by inserting after subsection (a) the following:
``(b) Conversion of Entitlement at Retirement Age.--
``(1) In general.--Except as provided in paragraph (2), the
basic compensation for total disability for an employee who
has attained retirement age shall be 50 percent of the
monthly pay of the employee.
``(2) Exceptions.--
``(A) Covered recipients who are retirement age or have an
exempt disability condition.--Paragraph (1) shall not apply
to a covered claim for total disability by an employee if the
employee--
``(i) on the date of enactment of the Workers' Compensation
Reform Act of 2012, has attained retirement age; or
``(ii) is an individual who has an exempt disability
condition.
``(B) Transition period for certain employees.--For a
covered claim for total disability by an employee who is not
an employee described in subparagraph (A), the employee shall
receive the basic compensation for total disability provided
under subsection (a) until the later of--
``(i) the date on which the employee attains retirement
age; and
``(ii) the date that is 3 years after the date of enactment
of the Workers' Compensation Reform Act of 2012.''.
(3) Partial disability.--Section 8106 is amended--
(A) in subsection (a), by striking ``If'' and inserting
``In General.--Subject to subsection (b), if'';
(B) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(C) by inserting after subsection (a) the following:
``(b) Conversion of Entitlement at Retirement Age.--
``(1) In general.--Except as provided in paragraph (2), the
basic compensation for partial disability for an employee who
has attained retirement age shall be 50 percent of the
difference between the monthly pay of the employee and the
monthly wage-earning capacity of the employee after the
beginning of the partial disability.
``(2) Exceptions.--
``(A) Covered recipients who are retirement age.--Paragraph
(1) shall not apply to a covered claim for partial disability
by an employee if, on the date of enactment of the Workers'
Compensation Reform Act of 2012, the employee has attained
retirement age.
``(B) Transition period for certain employees.--For a
covered claim for partial disability by an employee who is
not an employee described in subparagraph (A), the employee
shall receive basic compensation for partial disability in
accordance with subsection (a) until the later of--
``(i) the date on which the employee attains retirement
age; and
``(ii) the date that is 3 years after the date of enactment
of the Workers' Compensation Reform Act of 2012.''.
SEC. 303. AUGMENTED COMPENSATION FOR DEPENDENTS.
(a) In General.--Section 8110 is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following:
``(b) Termination of Augmented Compensation.--
``(1) In general.--Subject to paragraph (2), augmented
compensation for dependants under subsection (c) shall not be
provided.
``(2) Exceptions.--
``(A) Total disability.--For a covered claim for total
disability by an employee--
``(i) the employee shall receive augmented compensation
under subsection (c) if the employee is an individual who has
an exempt disability condition; and
``(ii) the employee shall receive augmented compensation
under subsection (c) until the date that is 3 years after the
date of enactment of the Workers' Compensation Reform Act of
2012 if the employee is not an employee described in clause
(i).
``(B) Partial disability.--For a covered claim for partial
disability by an employee, the employee shall receive
augmented compensation under subsection (c) until the date
that is 3 years after the date of enactment of the Workers'
Compensation Reform Act of 2012.
``(C) Permanent disability compensated by a schedule.--For
a claim for a permanent disability described in section
8107(a) by an employee that commenced before the date of
enactment of the Workers' Compensation Reform Act of 2012,
the employee shall receive augmented compensation under
subsection (c).''.
(b) Maximum and Minimum Monthly Payments.--Section 8112 is
amended--
(1) in subsection (a)--
(A) by inserting ``subsections (b) and (c) and'' before
``section 8138'';
(B) by striking ``including augmented compensation under
section 8110 of this title but''; and
(C) by striking ``75 percent'' each place it appears and
inserting ``66\2/3\ percent'';
(2) by redesignating subsection (b) as subsection (c);
(3) by inserting after subsection (a) the following:
``(b) Exceptions.--
``(1) Covered disability condition.--For a covered claim
for total disability by an employee, if the employee is an
individual who has an exempt disability condition--
``(A) the monthly rate of compensation for disability that
is subject to the maximum and minimum monthly amounts under
subsection (a) shall include any augmented compensation under
section 8110; and
``(B) subsection (a) shall be applied by substituting `75
percent' for `66\2/3\ percent' each place it appears.
``(2) Partial disability.--For a covered claim for partial
disability by an employee, until the date that is 3 years
after the date of enactment of the Workers' Compensation
Reform Act of 2012--
``(A) the monthly rate of compensation for disability that
is subject to the maximum and minimum monthly amounts under
subsection (a) shall include any augmented compensation under
section 8110; and
``(B) subsection (a) shall be applied by substituting `75
percent' for `66\2/3\ percent' each place it appears.''; and
(4) in subsection (c), as redesignated by paragraph (2), by
striking ``subsection (a)'' and inserting ``subsections (a)
and (b)''.
(c) Death Benefits Generally.--Section 8133 is amended--
(1) in subsections (a) and (e), by striking ``75 percent''
each place it appears and inserting ``66\2/3\ percent (except
as provided in subsection (g))''; and
(2) by adding at the end the following:
``(g) If the death occurred before the date of enactment of
the Workers' Compensation Reform Act of 2012, subsections (a)
and (e) shall be applied by substituting `75 percent' for
`66\2/3\ percent' each place it appears.''.
(d) Death Benefits for Civil Air Patrol Volunteers.--
Section 8141 is amended--
(1) in subsection (b)(2)(B) by striking ``75 percent'' and
inserting ``66\2/3\ percent (except as provided in subsection
(c))'';
(2) by redesignating subsection (c) as subsection (d); and
(3) by inserting after subsection (b) the following:
``(c) If the death occurred before the date of enactment of
the Workers' Compensation Reform Act of 2012, subsection
(b)(2)(B) shall be applied by substituting `75 percent' for
`66\2/3\ percent'.''.
SEC. 304. SCHEDULE COMPENSATION PAYMENTS.
Section 8107 is amended--
(1) in subsection (a), by striking ``at the rate of 66\2/3\
percent of his monthly pay'' and inserting ``at the rate
specified under subsection (d)''; and
(2) by adding at the end the following:
``(d) Rate for Compensation.--
``(1) Annual salary.--
``(A) In general.--Except as provided in paragraph (2), the
rate under subsection (a) shall be the rate of 66\2/3\
percent of the annual salary level established under
subparagraph (B), in a lump sum equal to the present value
(as calculated under subparagraph (C)) of the amount of
compensation payable under the schedule.
``(B) Establishment.--
``(i) In general.--The Secretary of Labor shall establish
an annual salary for purposes of subparagraph (A) in the
amount the Secretary determines will result in the aggregate
cost of payments made under this section being equal to what
would have been the aggregate cost of payments under this
section if the amendments made by section 304(a) of the
Workers' Compensation Reform Act of 2012 had not been
enacted.
``(ii) Cost of living adjustment.--The annual salary
established under clause (i) shall be increased on March 1 of
each year by the amount determined by the Secretary of Labor
to represent the percent change in the price index published
for December of the preceding year over the price index
published for the December of the year prior to the preceding
year, adjusted to the nearest one-tenth of 1 percent.
``(C) Present value.--The Secretary of Labor shall
calculate the present value for purposes of subparagraph (A)
using a rate of interest equal to the average market yield
for outstanding marketable obligations of the United States
with a maturity of 2 years on the first business day of the
month in which the compensation is paid or, in the event that
such marketable obligations are not being issued on such
date, at an equivalent rate selected by the Secretary of
Labor, true discount compounded annually.
``(2) Certain injuries.--For an injury that occurred before
the date of enactment of the Workers' Compensation Reform Act
of 2012, the rate under subsection (a) shall be 66\2/3\
percent of the employee's monthly pay.
``(e) Simultaneous Receipt.--
``(1) Total disability.--An employee who receives
compensation for total disability
[[Page S2445]]
under section 8105 may only receive the lump sum of schedule
compensation under this section in addition to and
simultaneously with the benefits for total disability after
the earlier of--
``(A) the date on which the basic compensation for total
disability of the employee becomes 50 percent of the monthly
pay of the employee under section 8105(b); or
``(B) the date on which augmented compensation of the
employee terminates under section 8110(b)(2)(A)(ii), if the
employee receives such compensation.
``(2) Partial disability.--An employee who receives
benefits for partial disability under section 8106 may only
receive the lump sum of schedule compensation under this
section in addition to and simultaneously with the benefits
for partial disability after the earlier of--
``(A) the date on which the basic compensation for partial
disability of the employee becomes 50 percent of the
difference between the monthly pay of the employee and the
monthly wage-earning capacity of the employee after the
beginning of the partial disability under section 8106(b); or
``(B) the date on which augmented compensation of the
employee terminates under section 8110(b)(2)(B), if the
employee receives such compensation.''.
SEC. 305. VOCATIONAL REHABILITATION.
(a) In General.--Section 8104 is amended--
(1) in subsection (a)--
(A) by striking ``(a) The Secretary of Labor may'' and all
that follows through ``undergo vocational rehabilitation.''
and inserting the following:
``(a) In General.--
``(1) Direction.--Except as provided in paragraph (2), not
earlier than the date that is 6 months after the date on
which an individual eligible for wage-loss compensation under
section 8105 or 8106 is injured, or by such other date as the
Secretary of Labor determines it would be reasonable under
the circumstances for the individual to begin vocational
rehabilitation, and if vocational rehabilitation may enable
the individual to become capable of more gainful employment,
the Secretary of Labor shall direct the individual to
participate in developing a comprehensive return to work plan
and to undergo vocational rehabilitation at a location a
reasonable distance from the residence of the individual.'';
(B) by striking ``the Secretary of Health, Education, and
Welfare in carrying out the purposes of chapter 4 of title
29'' and inserting ``the Secretary of Education in carrying
out the purposes of the Rehabilitation Act of 1973 (29 U.S.C.
701 et seq.)'';
(C) by striking ``under section 32(b)(1) of title 29'' and
inserting ``under section 5 of the Rehabilitation Act of 1973
(29 U.S.C. 704)''; and
(D) by adding at the end the following:
``(2) Exception.--The Secretary of Labor may not direct an
individual who has attained retirement age to participate in
developing a comprehensive return to work plan or to undergo
vocational rehabilitation.'';
(2) by redesignating subsection (b) as subsection (c);
(3) by inserting after subsection (a) the following:
``(b) Contents of Return to Work Plan.--A return to work
plan developed under subsection (a)--
``(1) shall--
``(A) set forth specific measures designed to increase the
wage-earning capacity of an individual;
``(B) take into account the prior training and education of
the individual and the training, educational, and employment
opportunities reasonably available to the individual; and
``(C) provide that any employment undertaken by the
individual under the return to work plan be at a location a
reasonable distance from the residence of the individual;
``(2) may provide that the Secretary will pay out of
amounts in the Employees' Compensation Fund reasonable
expenses of vocational rehabilitation (which may include
tuition, books, training fees, supplies, equipment, and child
or dependent care) during the course of the plan; and
``(3) may not be for a period of more than 2 years, unless
the Secretary finds good cause to grant an extension, which
may be for not more than 2 years.'';
(4) in subsection (c), as so redesignated--
(A) by inserting ``Compensation.--'' before
``Notwithstanding''; and
(B) by striking ``, other than employment undertaken
pursuant to such rehabilitation''; and
(5) by adding at the end the following:
``(d) Assisted Reemployment Agreements.--
``(1) In general.--The Secretary may enter into an assisted
reemployment agreement with an agency or instrumentality of
any branch of the Federal Government or a State or local
government or a private employer that employs an individual
eligible for wage-loss compensation under section 8105 or
8106 to enable the individual to return to productive
employment.
``(2) Contents.--An assisted reemployment agreement under
paragraph (1)--
``(A) may provide that the Secretary will use amounts in
the Employees' Compensation Fund to reimburse an employer in
an amount equal to not more than 100 percent of the
compensation the individual would otherwise receive under
section 8105 or 8106; and
``(B) may not be for a period of more than 3 years.
``(e) List.--To facilitate the hiring of individuals
eligible for wage-loss compensation under section 8105 or
8106, the Secretary shall provide a list of such individuals
to the Office of Personnel Management, which the Office of
Personnel Management shall provide to all agencies and
instrumentalities of the Federal Government.''.
(b) Employees' Compensation Fund.--Section 8147 is amended
by adding at the end:
``(d) Notwithstanding subsection (b), any benefits or other
payments paid to or on behalf of an employee under this
subchapter or any extension or application thereof for a
recurrence of injury, consequential injury, aggravation of
injury, or increase in percentage of impairment to a member
for which compensation is provided under the schedule under
section 8107 suffered in a permanent position with an agency
or instrumentality of the United States while the employment
with the agency or instrumentality is covered under an
assisted reemployment agreement entered into under section
8104(d) shall not be included in total cost of benefits and
other payments in the statement provided to the agency or
instrumentality under subsection (b) if the injury was
originally incurred in a position not covered by an assisted
reemployment agreement.''.
(c) Termination of Vocational Rehabilitation Requirement
After Retirement Age.--Section 8113(b) is amended by adding
at the end the following: ``An individual who has attained
retirement age may not be required to undergo vocational
rehabilitation.''.
(d) Mandatory Benefit Reduction for Noncompliance.--Section
8113(b) is amended by striking ``may reduce'' and inserting
``shall reduce''.
(e) Technical and Conforming Amendments.--
(1) In general.--Subchapter III of chapter 15 of title 31,
United States Code, is amended by adding at the end the
following:
``Sec. 1538. Authorization for assisted reemployment
``Funds may be transferred from the Employees' Compensation
Fund established under section 8147 of title 5 to the
applicable appropriations account for an agency or
instrumentality of any branch of the Federal Government for
the purposes of reimbursing the agency or instrumentality in
accordance with an assisted reemployment agreement entered
into under section 8104 of title 5.''.
(2) Table of sections.--The table of sections for chapter
15 of title 31, United States Code, is amended by inserting
after the item relating to section 1537 the following:
``1538. Authorization for assisted reemployment.''.
SEC. 306. REPORTING REQUIREMENTS.
(a) In General.--Chapter 81 is amended by inserting after
section 8106 the following:
``Sec. 8106a. Reporting requirements
``(a) Definition.--In this section, the term `employee
receiving compensation' means an employee who--
``(1) is paid compensation under section 8105 or 8106; and
``(2) has not attained retirement age.
``(b) Authority.--The Secretary of Labor shall require an
employee receiving compensation to report the earnings of the
employee receiving compensation from employment or self-
employment, by affidavit or otherwise, in the manner and at
the times the Secretary specifies.
``(c) Contents.--An employee receiving compensation shall
include in a report required under subsection (a) the value
of housing, board, lodging, and other advantages which are
part of the earnings of the employee receiving compensation
in employment or self-employment and the value of which can
be estimated.
``(d) Failure To Report and False Reports.--
``(1) In general.--An employee receiving compensation who
fails to make an affidavit or other report required under
subsection (b) or who knowingly omits or understates any part
of the earnings of the employee in such an affidavit or other
report shall forfeit the right to compensation with respect
to any period for which the report was required.
``(2) Forfeited compensation.--Compensation forfeited under
this subsection, if already paid to the employee receiving
compensation, shall be recovered by a deduction from the
compensation payable to the employee or otherwise recovered
under section 8129, unless recovery is waived under that
section.''.
(b) Technical and Conforming Amendments.--The table of
sections for chapter 81 is amended by inserting after the
item relating to section 8106 the following:
``8106a. Reporting requirements.''.
SEC. 307. DISABILITY MANAGEMENT REVIEW; INDEPENDENT MEDICAL
EXAMINATIONS.
Section 8123 is amended by adding at the end the following:
``(e) Disability Management Review.--
``(1) Definitions.--In this subsection--
``(A) the term `covered employee' means an employee who is
in continuous receipt of compensation for total disability
under section 8105 for a period of not less than 6 months;
and
``(B) the term `disability management review process' means
the disability management review process established under
paragraph (2)(A).
``(2) Establishment.--The Secretary of Labor shall--
[[Page S2446]]
``(A) establish a disability management review process for
the purpose of certifying and monitoring the disability
status and extent of injury of each covered employee; and
``(B) promulgate regulations for the administration of the
disability management review process.
``(3) Physical examinations required.--Under the disability
management review process, the Secretary of Labor shall
periodically require covered employees to submit to physical
examinations under subsection (a) by physicians selected by
the Secretary. A physician conducting a physical examination
of a covered employee shall submit to the Secretary a report
regarding the nature and extent of the injury to and
disability of the covered employee.
``(4) Frequency.--
``(A) In general.--The regulations promulgated under
paragraph (2)(B) shall specify the process and criteria for
determining when and how frequently a physical examination
should be conducted for a covered employee.
``(B) Minimum frequency.--
``(i) Initial.--An initial physical examination shall be
conducted not more than a brief period after the date on
which a covered employee has been in continuous receipt of
compensation for total disability under section 8015 for 6
months.
``(ii) Subsequent examinations.--After the initial physical
examination, physical examinations of a covered employee
shall be conducted not less than once every 3 years.
``(5) Employing agency or instrumentality requests.--
``(A) In general.--The agency or instrumentality employing
an employee who has made a claim for compensation for total
disability under section 8105 may at any time submit a
request for the Secretary of Labor to promptly require the
employee to submit to a physical examination under this
subsection.
``(B) Requesting officer.--A request under subparagraph (A)
shall be made on behalf of an agency or instrumentality by--
``(i) the head of the agency or instrumentality;
``(ii) the Chief Human Capital Officer of the agency or
instrumentality; or
``(iii) if the agency or instrumentality does not have a
Chief Human Capital Officer, an officer with responsibilities
similar to those of a Chief Human Capital Officer designated
by the head of the agency or instrumentality to make requests
under this paragraph.
``(C) Information.--A request under subparagraph (A) shall
be in writing and accompanied by--
``(i) a certification by the officer making the request
that the officer has reviewed the relevant material in the
employee's file;
``(ii) an explanation of why the officer has determined,
based on the materials in the file and other information
known to the officer, that requiring a physical examination
of the employee under this subsection is necessary; and
``(iii) copies of the materials relating to the employee
that are relevant to the officer's determination and request,
unless the agency or instrumentality has a reasonable basis
for not providing the materials.
``(D) Examination.--If the Secretary of Labor receives a
request under this paragraph before an employee has undergone
an initial physical examination under paragraph (4)(B)(i),
the Secretary shall promptly require the physical examination
of the employee. A physical examination under this
subparagraph shall satisfy the requirement under paragraph
(4)(B)(i) that an initial physical examination be conducted.
``(E) After initial examination.--
``(i) In general.--If the Secretary of Labor receives a
request under this paragraph after an employee has undergone
an initial physical examination under paragraph (4)(B)(i),
the Secretary shall--
``(I) review the request and the information, explanation,
and other materials submitted with the request; and
``(II) determine whether to require the physical
examination of the employee who is the subject of the
request.
``(ii) Not granted.--If the Secretary determines not to
grant a request described in clause (i), the Secretary shall
promptly notify the officer who made the request and provide
an explanation of the reasons why the request was denied.''.
SEC. 308. WAITING PERIOD.
(a) In General.--Section 8117 is amended--
(1) in the section heading, by striking ``Time of accrual
of right'' and inserting ``Waiting period'';
(2) in subsection (a)--
(A) in the matter preceding paragraph (1), by striking ``An
employee'' and all that follows through ``is not entitled''
and inserting ``In General.--An employee is not entitled to
continuation of pay within the meaning of section 8118 for
the first 3 days of temporary disability or, if section 8118
does not apply, is not entitled'';
(B) in paragraph (1), by adding ``or'' at the end;
(C) by striking paragraph (2); and
(D) by redesignating paragraph (3) as paragraph (2); and
(3) in subsection (b)--
(A) by striking ``A Postal Service'' the first place it
appears and all that follows through ``A Postal Service'' the
second place it appears and inserting ``Use of Leave.--An'';
(B) by striking ``that 3-day period'' and inserting ``the
first 3 days of temporary disability''; and
(C) by striking ``or is followed by permanent disability''.
(b) Continuation of Pay.--Section 8118 is amended--
(1) in the section heading, by striking ``; election to use
annual or sick leave'';
(2) in subsection (b)(1), by striking ``section 8117(b)''
and inserting ``section 8117'';
(3) by striking subsection (c); and
(4) by redesignating subsections (d) as subsection (c).
(c) Technical and Conforming Amendments.--The table of
sections for chapter 81 is amended by striking the items
relating to sections 8117 and 8118 and inserting the
following:
``8117. Waiting period.
``8118. Continuation of pay.''.
SEC. 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''.
(c) Effective Date.--This section and the amendments made
by this section shall take effect on the date of enactment of
this Act.
[[Page S2447]]
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 `improper payment' has the meaning given
that term in section 2(f) of the Improper Payments
Information Act of 2002 (31 U.S.C. 3321 note);
``(3) the term `Inspector General'--
``(A) means an Inspector General described in subparagraph
(A), (B), or (I) of section 11(b)(1) of the Inspector General
Act of 1978 (5 U.S.C. App.); and
``(B) does not include the Inspector General of an entity
having no employees covered under the FECA program.
``(4) the term `Integrity and Compliance Program' means the
Integrity and Compliance Program established under subsection
(b);
``(5) the term `provider' means a provider of medical or
other services under the FECA program;
``(6) the term `Secretary' means the Secretary of Labor;
and
``(7) the term `Task Force' means the FECA Integrity and
Compliance Task Force established under subsection (c)(2)(A).
``(b) Integrity and Compliance Program.--Not later than 270
days after the date of enactment of this section, the
Secretary shall establish an Integrity and Compliance Program
for the purpose of preventing, identifying, and recovering
fraudulent and other improper payments for the FECA program,
which shall include--
``(1) procedures for identifying potentially improper
payments before payment is made to claimants and providers,
including, where appropriate, predictive analytics;
``(2) reviews after payment is made to identify potentially
improper payments to claimants and providers;
``(3) on-going screening and verification procedures to
ensure the continued eligibility of medical providers to
provide services under the FECA program, including licensure,
Federal disbarment, and the existence of relevant criminal
convictions;
``(4) provision of appropriate information, education, and
training to claimants and providers on requirements to ensure
the integrity of the FECA program, including payments under
the FECA program;
``(5) appropriate controls and audits to ensure that
providers adopt internal controls and procedures for
compliance with requirements under the FECA program;
``(6) procedures to ensure--
``(A) initial and continuing eligibility of claimants for
compensation, benefits, or services under the FECA program;
and
``(B) ongoing verification of information in databases
relating to claimants to ensure accuracy and completeness;
and
``(7) sharing and accessing data and information with other
agencies and instrumentalities of the United States,
including the United States Postal Service.
``(c) Interagency Cooperation on Anti-fraud Efforts.--
``(1) In general.--In administering the FECA program,
including the Integrity and Compliance Program, the Secretary
shall cooperate with other agencies and instrumentalities of
the United States (including the United States Postal
Service) and the Inspectors General of such agencies and
instrumentalities to prevent, identify, and recover
fraudulent and other improper payments under the FECA
program.
``(2) Task force.--
``(A) In general.--There is established a task force, which
shall be known as the FECA Integrity and Compliance Task
Force.
``(B) Membership.--The members of the Task Force shall be--
``(i) the Secretary, who shall serve as the Chairperson of
the Task Force;
``(ii) the Postmaster General, who shall serve as the Vice
Chairperson of the Task Force;
``(iii) the Attorney General;
``(iv) the Director of the Office of Management and Budget;
and
``(v) other appropriate Federal officials, as determined by
the Chairperson and Vice Chairperson of the Task Force.
``(C) Advisory members.--The following officials shall
attend meetings of the Task Force and participate as ad hoc,
advisory members, to provide technical assistance and
guidance to the Task Force with respect to the duties of the
Task Force:
``(i) The Inspector General of the Department of Labor.
``(ii) The Inspector General of the United States Postal
Service.
``(iii) The Inspectors General of other appropriate
agencies and instrumentalities of the United States that
employ a significant number of individuals receiving
compensation, benefits, or services under the FECA program,
as determined by the Chairperson of the Task Force.
``(D) Duties.--The Task Force shall--
``(i) set forth, in writing, a description of the
respective roles and responsibilities in preventing,
identifying, recovering, and prosecuting fraud under, and
otherwise ensuring integrity and compliance of, the FECA
program of--
``(I) the Secretary (including subordinate officials such
as the Director of the Office of Workers' Compensation
Programs);
``(II) the Inspector General of the Department of Labor;
``(III) the Inspectors General of agencies and
instrumentalities of the United States that employ claimants
under the FECA program;
``(IV) the Attorney General; and
``(V) any other relevant officials;
``(ii) develop procedures for sharing information of
possible fraud under the FECA program or other intentional
misstatements by claimants or providers under the FECA
program, including procedures addressing--
``(I) notification of appropriate officials of the
Department of Labor of potential fraud or other intentional
misstatements, including provision of supporting information;
``(II) timely and appropriate response by officials of the
Department of Labor to notifications described in subclause
(I);
``(III) the inclusion of information and evidence relating
to fraud and other intentional misstatements in criminal,
civil, and administrative proceedings relating to the
provision of compensation, benefits, or medical services
(including payments to providers) under the FECA program;
``(IV) the coordination of criminal investigations with the
administration of the FECA program; and
``(V) the protection of information relating to an
investigation of possible fraud under the FECA program from
potential disclosure, including requirements that enable
investigative files to be appropriately separated from case
management files;
``(iii) not later than 1 year after the date of enactment
of this section, submit to the Committee on Homeland Security
and Governmental Affairs of the Senate and the Committee on
Oversight and Government Reform and the Committee on
Education and the Workforce of the House of Representatives a
report that includes the description and procedures required
under clauses (i) and (ii).
``(3) Rule of construction.--Nothing in this subsection
shall be construed to limit or restrict any authority of an
Inspector General.
``(d) Improvements to Access of Federal Databases.--
``(1) In general.--In order to improve compliance with the
requirements under and the integrity of the FECA program, or
as required to otherwise detect and prevent improper payments
under the FECA program (including for purposes of computer
matching under subsection (e)(1)(D)), upon written request--
``(A) the Commissioner of Social Security shall make
available to the Secretary, the Postmaster General, and each
Inspector General the Social Security earnings information of
a living or deceased employee;
``(B) the Director of the Office of Personnel Management
shall make available to the Secretary, the Postmaster
General, and each Inspector General the information in the
databases of Federal employees and retirees maintained by the
Director; and
``(C) the Secretary of Veterans Affairs shall make
available to the Secretary, the Postmaster General, and each
Inspector General the information in the database of disabled
individuals maintained by the Secretary of Veterans Affairs.
``(2) National directory of new hires.--Upon written
request, the Secretary of Health and Human Services shall
make available to the Secretary, the Postmaster General, each
Inspector General, and the Comptroller General of the United
States the information in the National Directory of New Hires
for purposes of carrying out this subchapter, in order to
improve compliance with the requirements under and the
integrity of the FECA program, or as required to otherwise
detect and prevent improper payments under the FECA program
(including for purposes of computer matching under subsection
(e)(1)(D)). The Comptroller General may obtain information
from the National Directory of New Hires for purposes of any
audit, evaluation, or investigation, including any audit,
evaluation, or investigation relating to program integrity.
``(3) Procedures.--The Secretary shall establish procedures
for correlating the identity and status of recipients of
compensation, benefits, or services under this subchapter
with Social Security earnings information described in
paragraph (1)(A).
``(4) Provision.--Information requested under this
subsection shall be provided--
``(A) in a timely manner;
``(B) at a reasonable cost to the Secretary, the Postmaster
General, or an Inspector General;
``(C) without cost to the Comptroller General of the United
States; and
``(D) in the manner, frequency, and form reasonably
specified by the officer making the request, which, upon
request, shall include electronic form.
``(5) Assessment of data cost-effectiveness.--
``(A) In general.--The Secretary shall consider and assess
procedures for correlating the identity and status of
recipients of compensation, benefits, or services under this
subchapter with information relating to employees, retirees,
and individuals described in subparagraphs (B) and (C) of
paragraph (1) and paragraph (2).
``(B) Report.--Not later than 1 year after the date of
enactment of this section, the Secretary shall submit to the
Committee on Homeland Security and Governmental Affairs of
the Senate and the Committee on Oversight and Government
Reform and the Committee on Education and the Workforce
[[Page S2448]]
of the House of Representatives a report on the cost-
effectiveness of the use of the databases described in
subparagraphs (B) and (C) of paragraph (1) and paragraph (2)
for program compliance and integrity. The report required
under this subparagraph may be included as part of the report
required under subsection (f).
``(6) United states postal service feca enrollee
database.--Not later than 180 days after the date of
enactment of this section, in order to track, verify, and
communicate with the Secretary and other relevant entities,
the Postmaster General shall establish an electronic database
of information relating to employees of the United States
Postal Service who have applied for or are receiving
compensation, benefits, or services under this subchapter.
``(7) Rule of construction.--Nothing in this subsection
shall be construed to limit the authority of the Comptroller
General of the United States under section 716 of title 31.
``(e) General Protocols and Security.--
``(1) Establishment.--
``(A) In general.--In order to ensure strong information
security and privacy standards, the Task Force shall
establish protocols for the secure transfer and storage of
any information provided to an individual or entity under
this section.
``(B) Considerations.--In establishing protocols under
subparagraph (A), the Task Force shall consider any
recommendations submitted to the Secretary by the Inspector
General of the Department of Health and Human Services with
respect to the secure transfer and storage of information,
and to comply with privacy laws and best practices.
``(C) Fraud case protection.--The Task Force shall
establish protocols and procedures to enable information and
materials relating to an active investigation of possible
fraud relating to the FECA program to be appropriately kept
separate from the files for employees relating to the
provision of compensation, benefits, or services under the
FECA program.
``(D) Computer matching by federal agencies for purposes of
investigation and prevention of improper payments and
fraud.--
``(i) In general.--Except as provided in this subparagraph,
in accordance with section 552a (commonly known as the
Privacy Act of 1974), the Secretary, the Postmaster General,
each Inspector General, and the head of each agency may enter
into computer matching agreements that allow ongoing data
matching (which shall include automated data matching) in
order to assist in the detection and prevention of improper
payments under the FECA program.
``(ii) Review.--Not later than 60 days after a proposal for
an agreement under clause (i) has been presented to a Data
Integrity Board established under section 552a(u) for
consideration, the Data Integrity Board shall approve or deny
the agreement.
``(iii) Termination date.--An agreement under clause (i)--
``(I) shall have a termination date of less than 3 years;
and
``(II) during the 3-month period ending on the date on
which the agreement is scheduled to terminate, may be renewed
by the agencies entering the agreement for not more than 3
years.
``(iv) Multiple agencies.--For purposes of this
subparagraph, section 552a(o)(1) shall be applied by
substituting `between the source agency and the recipient
agency or non-Federal agency or an agreement governing
multiple agencies' for `between the source agency and the
recipient agency or non-Federal agency' in the matter
preceding subparagraph (A).
``(v) Cost-benefit analysis.--An agreement under clause (i)
may be entered without regard to section 552a(o)(1)(B),
relating to a cost-benefit analysis of the proposed matching
program.
``(vi) Guidance by the office of management and budget.--
Not later than 6 months after the date of enactment of the
Workers' Compensation Reform Act of 2012, and in consultation
with the Council of Inspectors General on Integrity and
Efficiency, the Secretary of Health and Human Services, the
Commissioner of Social Security, and the head of any other
relevant agency, the Director of the Office of Management and
Budget shall--
``(I) issue guidance for agencies regarding implementing
this subparagraph, which shall include standards for
reimbursement costs, when necessary, between agencies; and
``(II) establish standards and develop standard matching
agreements for the purpose of improving the process for
establishing data use or computer matching agreements.
``(2) Compliance.--The Secretary, the Postmaster General,
and each Inspector General shall ensure that any information
provided to an individual or entity under this section is
provided in accordance with protocols established under
paragraph (1).
``(3) Rule of construction.--Nothing in this section shall
be construed to affect the rights of an individual under
section 552a(p).
``(f) Report.--Not later than 1 year after the date of
enactment of this section, and annually thereafter for 5
years, the Secretary shall submit a report on the activities
of the Secretary under this section, including implementation
of the Integrity and Compliance Program, to--
``(1) the Committee on Homeland Security and Governmental
Affairs of the Senate; and
``(2) the Committee on Oversight and Government Reform and
the Committee on Education and the Workforce of the House of
Representatives.
``(g) GAO Review.--The Comptroller General of the United
States shall--
``(1) conduct periodic reviews of the Integrity and
Compliance Program; and
``(2) submit reports on the results of the reviews under
paragraph (1) to the Committee on Homeland Security and
Governmental Affairs of the Senate and the Committee on
Oversight and Government Reform and the Committee on
Education and the Workforce of the House of Representatives
not later than--
``(A) 2 years after the date of enactment of this section;
and
``(B) 3 years after submission of the report under
subparagraph (A).''.
(b) Technical and Conforming Amendment.--The table of
sections for chapter 81 is amended by inserting after the
item relating to section 8152 the following:
``8153. Integrity and Compliance Program.''.
(c) Effective Date.--This section and the amendments made
by this section shall take effect on the date of enactment of
this Act.
SEC. 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''; and
(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.
SEC. 316. EFFECTIVE DATE.
Except as otherwise provided in this title, this title and
the amendments made by this title shall take effect 60 days
after the date of enactment of this Act.
TITLE IV--OTHER MATTERS
SEC. 401. SOLVENCY 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 achieve long-term solvency (as defined in section
208(e) of this Act).
(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;
(4) projected changes in mail volume;
(5) projected changes in the number of employees needed to
carry out the responsibilities of the Postal Service; and
(6) the long-term capital needs of the Postal Service,
including the need to maintain, repair, and replace
facilities and equipment.
[[Page S2449]]
(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 3 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 services; 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. CO-LOCATION WITH FEDERAL AGENCIES.
Chapter 5 of subtitle I of title 40, United States Code, is
amended by adding at the end the following:
``SUBCHAPTER VII--FEDERAL REAL PROPERTY ASSET MANAGEMENT
``Sec. 701. Definitions
``In this subchapter:
``(1) Agency field office.--The term `agency field office'
means the field office of a landholding agency.
``(2) Council.--The term `Council' means the Federal Real
Property Council established under section 702.
``(3) Landholding agency.--The term `landholding agency'
has the same meaning as in section 501(i) of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11411(i)).
``(4) Postal property.--The term `Postal property' means
real property owned by the United States Postal Service.
``Sec. 702. Establishment of a Federal Real Property Council
``(a) Establishment.--There is within the Office of
Management and Budget a council to be known as the `Federal
Real Property Council'.
``(b) Purpose.--The purpose of the Council shall be to
develop guidance for the asset management program of each
executive agency.
``(c) Composition.--
``(1) In general.--The Council shall be composed of--
``(A) the senior real property officers of each executive
agency;
``(B) the Deputy Director for Management of the Office of
Management and Budget;
``(C) the Controller of the Office of Management and
Budget;
``(D) the Administrator of General Services; and
``(E) any other full-time or permanent part-time Federal
officials or employees, as the Chairperson determines to be
necessary.
``(2) Chairperson.--The Deputy Director for Management of
the Office of Management and Budget shall serve as
Chairperson of the Council.
``(3) Administrative support.--The Office of Management and
Budget shall provide funding and administrative support for
the Council, as appropriate.
``Sec. 703. Co-location among Postal Service properties
``(a) Co-location Among Postal Service Properties.--
``(1) Identification of real property assets.--Each year,
the Council shall--
``(A) identify and compile a list of agency field offices
that are suitable for co-location with another Federal
civilian real property asset; and
``(B) submit the list to the Director of the Office of
Management and Budget and the Postmaster General of the
United States.
``(2) Postal property.--
``(A) In general.--Not later than 30 days after the
completion of a list under paragraph (1), the Director of the
Office of Management and Budget, in collaboration with the
Postmaster General, shall identify agency field offices on
the list that are within reasonable distance of a Postal
property.
``(B) Reasonable distance.--For purposes of this paragraph,
an agency field office shall be considered to be within
reasonable distance of a Postal property if the office would
be able to fulfill the mission of the office if the office is
located at the Postal property.
``(C) Review by postal service.--Not later than 90 days
after the receipt of the list submitted under subparagraph
(B), the Postmaster General shall--
``(i) review the list; and
``(ii) submit to the Director of the Office of Management
and Budget a report containing the conclusions of the review.
``(3) Terms of co-location.--On approval of the
recommendations under paragraph (2) by the Postmaster General
and the applicable agency head, the co-location of a Postal
property and an agency field office shall consist of the
Executive agency that owns or leases the agency field office
entering into a lease for space within the Postal property
with United States Postal Service that has--
``(A) an initial lease term of not less than 5 years; and
``(B) a cost that is within 5 percent of the prevailing
market lease rate for a similarly situated space.''.
SEC. 404. 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''
and 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. 405. SHIPPING OF WINE, BEER, AND DISTILLED SPIRITS.
(a) Mailability.--
(1) Nonmailable articles.--Section 1716(f) of title 18,
United States Code, is amended by striking ``mails'' and
inserting ``mails, except to the extent that the mailing is
allowable under section 3001(p) of title 39''.
(2) Application of laws.--Section 1161 of title 18, United
States Code, is amended, by inserting ``, and, with respect
to the mailing
[[Page S2450]]
of distilled spirits, wine, or malt beverages (as those terms
are defined in section 117 of the Federal Alcohol
Administration Act (27 U.S.C. 211)), is in conformity with
section 3001(p) of title 39'' after ``Register''.
(b) Regulations.--Section 3001 of title 39, United States
Code, is amended by adding at the end the following:
``(p)(1) In this subsection, the terms `distilled spirits',
`wine', and `malt beverage' have the same meanings as in
section 117 of the Federal Alcohol Administration Act (27
U.S.C. 211).
``(2) Distilled spirits, wine, or malt beverages shall be
considered mailable if mailed--
``(A) in accordance with the laws and regulations of--
``(i) the State, territory, or district of the United
States where the sender or duly authorized agent initiates
the mailing; and
``(ii) the State, territory, or district of the United
States where the addressee or duly authorized agent takes
delivery; and
``(B) to an addressee who is at least 21 years of age--
``(i) who provides a signature and presents a valid,
government-issued photo identification upon delivery; or
``(ii) the duly authorized agent of whom--
``(I) is at least 21 years of age; and
``(II) provides a signature and presents a valid,
government-issued photo identification upon delivery.
``(3) The Postal Service shall prescribe such regulations
as may be necessary to carry out this subsection.''.
(c) Effective Date.--The amendments made by this section
shall take effect on the earlier of--
(1) the date on which the Postal Service issues regulations
under section 3001(p) of title 39, United States Code, as
amended by this section; and
(2) 120 days after the date of enactment of this Act.
SEC. 406. 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. 407. 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. 408. 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. 409. 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 S2451]]
``(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:
701''.tracting Provisions............................................
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