[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............................................

                          ____________________