112TH CONGRESS 

2D SESSION S. 1789 

AN ACT 

To improve, sustain, and transform the United States Postal 

Service. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘21st Century Postal 

3 Service Act of 2012’’. 

4 SEC. 2. TABLE OF CONTENTS. 

5 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 Educational Program for Postal Service Employees and Retirees. 

Sec. 106. Arbitration; labor disputes. 

Sec. 107. Retirement reporting. 

Sec. 108. Executive compensation. 

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. Limitations on changes to mail delivery schedule. 

Sec. 208. Time limits for consideration of service changes. 

Sec. 209. Public procedures for significant changes to mailing specifications. 

Sec. 210. Nonpostal products and services. 

Sec. 211. Chief Innovation Officer; innovation strategy. 

Sec. 212. Strategic Advisory Commission on Postal Service Solvency and Innovation. 

Sec. 213. Citizen’s service protection advocates. 

Sec. 214. Capitol Complex post offices. 

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. 
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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. Terrorism injuries; zones of armed conflict. 

Sec. 315. Technical and conforming amendments. 

Sec. 316. Regulations. 

Sec. 317. 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. 410. Executive compensation. 

Sec. 411. Sense of the Senate. 

TITLE V—MISCELLANEOUS 

Sec. 501. Government sponsored conferences. 

1 SEC. 3. DEFINITIONS. 

2 In this Act, the following definitions shall apply: 

3 (1) COMMISSION.—The term ‘‘Commission’’ 

4 means the Postal Regulatory Commission. 

5 (2) POSTAL SERVICE.—The term ‘‘Postal Serv6 ice’’ means the United States Postal Service. 

7 TITLE I—POSTAL WORKFORCE 

8 MATTERS 

9 SEC. 101. TREATMENT OF POSTAL FUNDING SURPLUS FOR 

10 FEDERAL EMPLOYEES RETIREMENT SYSTEM. 

11 Section 8423(b) of title 5, United States Code, is 

12 amended— 
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1 (1) by redesignating paragraph (5) as para2 graph (6); and 

3 (2) by inserting after paragraph (4) the fol4 lowing: 

5 ‘‘(5)(A) In this paragraph, the term ‘postal funding 

6 surplus’ means the amount by which the amount com7 puted under paragraph (1)(B) is less than zero. 

8 ‘‘(B)(i) Beginning with fiscal year 2011, for each fis9 cal year in which the amount computed under paragraph 

10 (1)(B) is less than zero, upon request of the Postmaster 

11 General, the Director shall transfer to the United States 

12 Postal Service from the Fund an amount equal to the 

13 postal funding surplus for that fiscal year for use in ac14 cordance with this paragraph. 

15 ‘‘(ii) The Office shall calculate the amount under 

16 paragraph (1)(B) for a fiscal year by not later than June 

17 15 after the close of the fiscal year, and shall transfer 

18 any postal funding surplus to the United States Postal 

19 Service within 10 days after a request by the Postmaster 

20 General. 

21 ‘‘(C) For each of fiscal years 2011, 2012, 2013, and 

22 2014 if the amount computed under paragraph (1)(B) is 

23 less than zero, a portion of the postal funding surplus for 

24 the fiscal year shall be used by the United States Postal 

25 Service for the cost of providing incentives for voluntary 
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1 separation, in accordance with section 102 of the 21st 

2 Century Postal Service Act of 2012 and sections 8332(p) 

3 and 8411(m) of this title, to employees of the United 

4 States Postal Service who voluntarily separate from serv5 ice before October 1, 2015. 

6 ‘‘(D) Any postal funding surplus for a fiscal year not 

7 expended under subparagraph (C) may be used by the 

8 United States Postal Service for the purposes of— 

9 ‘‘(i) repaying any obligation issued under sec10 tion 2005 of title 39; or 

11 ‘‘(ii) making required payments to— 

12 ‘‘(I) the Employees’ Compensation Fund 

13 established under section 8147; 

14 ‘‘(II) the Postal Service Retiree Health 

15 Benefits Fund established under section 8909a; 

16 ‘‘(III) the Employees Health Benefits 

17 Fund established under section 8909; or 

18 ‘‘(IV) the Civil Service Retirement and 

19 Disability Fund.’’. 

20 SEC. 102. INCENTIVES FOR VOLUNTARY SEPARATION. 

21 (a) VOLUNTARY SEPARATION INCENTIVE PAY22 MENTS.—The Postal Service may provide voluntary sepa23 ration incentive payments to employees of the Postal Serv24 ice who voluntarily separate from service before October 

25 1, 2015 (including payments to employees who retire 
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1 under section 8336(d)(2) or 8414(b)(1)(B) of title 5, 

2 United States Code, before October 1, 2015), which may 

3 not exceed the maximum amount provided under section 

4 3523(b)(3)(B) of title 5, United States Code, for any em5 ployee. 

6 (b) ADDITIONAL SERVICE CREDIT.— 

7 (1) CIVIL SERVICE RETIREMENT SYSTEM.—Sec8 tion 8332 of title 5, United States Code, is amended 

9 by adding at the end the following: 

10 ‘‘(p)(1)(A) For an employee of the United States 

11 Postal Service who is covered under this subchapter and 

12 voluntarily separates from service before October 1, 2015, 

13 the Office, if so directed by the United States Postal Serv14 ice, shall add not more than 1 year to the total creditable 

15 service of the employee for purposes of determining enti16 tlement to and computing the amount of an annuity under 

17 this subchapter (except for a disability annuity under sec18 tion 8337). 

19 ‘‘(B) An employee who receives additional creditable 

20 service under this paragraph may not receive a voluntary 

21 separation incentive payment from the United States 

22 Postal Service. 

23 ‘‘(2) The United States Postal Service shall ensure 

24 that the average actuarial present value of the additional 

25 liability of the United States Postal Service to the Fund 
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1 resulting from additional creditable service provided under 

2 paragraph (1) or section 8411(m)(1) is not more than 

3 $25,000 per employee provided additional creditable serv4 ice under paragraph (1) or section 8411(m)(1). 

5 ‘‘(3)(A) Subject to subparagraph (B), and notwith6 standing any other provision of law, no deduction, deposit, 

7 or contribution shall be required for service credited under 

8 this subsection. 

9 ‘‘(B) The actuarial present value of the additional li10 ability of the United States Postal Service to the Fund 

11 resulting from this subsection shall be included in the 

12 amount calculated under section 8348(h)(1)(A).’’. 

13 (2) FEDERAL EMPLOYEES RETIREMENT SYS14 TEM.—Section 8411 of title 5, United States Code, 

15 is amended by adding at the end the following: 

16 ‘‘(m)(1)(A) For an employee of the United States 

17 Postal Service who is covered under this chapter and vol18 untarily separates from service before October 1, 2015, 

19 the Office, if so directed by the United States Postal Serv20 ice, shall add not more than 2 years to the total creditable 

21 service of the employee for purposes of determining enti22 tlement to and computing the amount of an annuity under 

23 this chapter (except for a disability annuity under sub24 chapter V of that chapter). 
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1 ‘‘(B) An employee who receives additional creditable 

2 service under this paragraph may not receive a voluntary 

3 separation incentive payment from the United States 

4 Postal Service. 

5 ‘‘(2) The United States Postal Service shall ensure 

6 that the average actuarial present value of the additional 

7 liability of the United States Postal Service to the Fund 

8 resulting from additional creditable service provided under 

9 paragraph (1) or section 8332(p)(1) is not more than 

10 $25,000 per employee provided additional creditable serv11 ice under paragraph (1) or section 8332(p)(1). 

12 ‘‘(3)(A) Subject to subparagraph (B), and notwith13 standing any other provision of law, no deduction, deposit, 

14 or contribution shall be required for service credited under 

15 this subsection. 

16 ‘‘(B) The actuarial present value of the additional li17 ability of the United States Postal Service to the Fund 

18 resulting from this subsection shall be included in the 

19 amount calculated under section 8423(b)(1)(B).’’. 

20 (c) GOALS.— 

21 (1) IN GENERAL.—The Postal Service shall 

22 offer incentives for voluntary separation under this 

23 section and the amendments made by this section as 

24 a means of ensuring that the size and cost of the 

25 workforce of the Postal Service is appropriate to the 
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1 work required of the Postal Service, including con2 sideration of— 

3 (A) the closure and consolidation of postal 

4 facilities; 

5 (B) the ability to operate existing postal 

6 facilities more efficiently, including by reducing 

7 the size or scope of operations of postal facili8 ties in lieu of closing postal facilities; and 

9 (C) the number of employees eligible, or 

10 projected in the near-term to be eligible, for re11 tirement, including early retirement. 

12 (2) PERCENTAGE GOAL.—The Postal Service 

13 shall offer incentives for voluntary separation under 

14 this section to a sufficient number of employees as 

15 would reasonably be expected to lead to an 18 per16 cent reduction in the total number of career employ17 ees of the Postal Service by the end of fiscal year 

18 2015. 

19 (3) DEFINITION.—In this subsection, the term 

20 ‘‘career employee of the Postal Service’’ means an 

21 employee of the Postal Service— 

22 (A) whose appointment is not for a limited 

23 period; and 
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1 (B) who is eligible for benefits, including 

2 retirement coverage under chapter 83 or 84 of 

3 title 5, United States Code. 

4 (d) FUNDING.—The Postal Service shall carry out 

5 subsection (a) and sections 8332(p) and 8411(m) of title 

6 5, United States Code, as added by subsection (b) of this 

7 section, using funds made available under section 

8 8423(b)(5)(C) of title 5, United States Code, as amended 

9 by section 101 of this Act. 

10 SEC. 103. RESTRUCTURING OF PAYMENTS FOR RETIREE 

11 HEALTH BENEFITS. 

12 (a) CONTRIBUTIONS.—Section 8906(g)(2)(A) of title 

13 5, United States Code, is amended by striking ‘‘through 

14 September 30, 2016, be paid by the United States Postal 

15 Service, and thereafter shall’’ and inserting ‘‘after the date 

16 of enactment of the 21st Century Postal Service Act of 

17 2012’’. 

18 (b) POSTAL SERVICE RETIREE HEALTH BENEFITS

19 FUND.—Section 8909a of title 5, United States Code, is 

20 amended— 

21 (1) in subsection (d)— 

22 (A) by striking paragraph (2) and insert23 ing the following: 

24 ‘‘(2)(A) Not later than 180 days after the date of 

25 enactment of the 21st Century Postal Service Act of 2012, 
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1 or March 31, 2013, whichever is later, the Office shall 

2 compute, and by June 30 of each succeeding year, the Of3 fice shall recompute, a schedule including a series of an4 nual installments which provide for the liquidation of the 

5 amount described under subparagraph (B) (regardless of 

6 whether the amount is a liability or surplus) by September 

7 30, 2052, or within 15 years, whichever is later, including 

8 interest at the rate used in the computations under this 

9 subsection. 

10 ‘‘(B) The amount described in this subparagraph is 

11 the amount, as of the date on which the applicable com12 putation or recomputation under subparagraph (A) is 

13 made, that is equal to the difference between— 

14 ‘‘(i) 80 percent of the Postal Service actuarial 

15 liability as of September 30 of the most recently 

16 ended fiscal year; and 

17 ‘‘(ii) the value of the assets of the Postal Re18 tiree Health Benefits Fund as of September 30 of 

19 the most recently ended fiscal year.’’. 

20 (B) in paragraph (3)— 

21 (i) in subparagraph (A)— 

22 (I) in clause (iii), by adding 

23 ‘‘and’’ at the end; 
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1 (II) in clause (iv), by striking the 

2 semicolon at the end and inserting a 

3 period; and 

4 (III) by striking clauses (v) 

5 through (x); and 

6 (ii) in subparagraph (B), by striking 

7 ‘‘2017’’ and inserting ‘‘2013’’; 

8 (C) by amending paragraph (4) to read as 

9 follows: 

10 ‘‘(4) Computations under this subsection shall be 

11 based on— 

12 ‘‘(A) economic and actuarial methods and as13 sumptions consistent with the methods and assump14 tions used in determining the Postal surplus or sup15 plemental liability under section 8348(h); and 

16 ‘‘(B) any other methods and assumptions, in17 cluding a health care cost trend rate, that the Direc18 tor of the Office determines to be appropriate.’’; and 

19 (D) by adding at the end the following: 

20 ‘‘(7) In this subsection, the term ‘Postal Service actu21 arial liability’ means the difference between— 

22 ‘‘(A) the net present value of future payments 

23 required under section 8906(g)(2)(A) for current 

24 and future United States Postal Service annuitants; 

25 and 
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1 ‘‘(B) the net present value as computed under 

2 paragraph (1) attributable to the future service of 

3 United States Postal Service employees.’’; and 

4 (2) by adding at the end the following: 

5 ‘‘(e) Subsections (a) through (d) of this section shall 

6 be subject to section 104 of the 21st Century Postal Serv7 ice Act of 2012.’’. 

8 SEC. 104. POSTAL SERVICE HEALTH BENEFITS PROGRAM. 

9 (a) DEFINITIONS.—In this section— 

10 (1) the term ‘‘covered employee’’ means an offi11 cer or employee of the Postal Service who is— 

12 (A) represented by a bargaining represent13 ative recognized under section 1203 of title 39, 

14 United States Code; or 

15 (B) a member of the Postal Career Execu16 tive Service; 

17 (2) the term ‘‘Federal Employee Health Bene18 fits Program’’ means the health benefits program 

19 under chapter 89 of title 5, United States Code; 

20 (3) the term ‘‘participants’’ means— 

21 (A) covered employees; and 

22 (B) officers and employees of the Postal 

23 Service who are not covered employees and who 

24 elect to participate in the Postal Service Health 

25 Benefits Program; and 
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1 (4) the term ‘‘Postal Service Health Benefits 

2 Program’’ means the health benefits program that 

3 may be agreed to under subsection (b)(1). 

4 (b) COLLECTIVE BARGAINING.— 

5 (1) IN GENERAL.—Consistent with section 

6 1005(f) of title 39, United States Code, the Postal 

7 Service may negotiate jointly with all bargaining 

8 representatives recognized under section 1203 of 

9 title 39, United States Code, and enter into a joint 

10 collective bargaining agreement with those bar11 gaining representatives to establish the Postal Serv12 ice Health Benefits Program that satisfies the condi13 tions under subsection (c). The Postal Service and 

14 the bargaining representatives shall negotiate in con15 sultation with the Director of the Office of Per16 sonnel Management. 

17 (2) CONSULTATION WITH SUPERVISORY AND

18 MANAGERIAL PERSONNEL.—In the course of nego19 tiations under paragraph (1), the Postal Service 

20 shall consult with each of the organizations of super21 visory and other managerial personnel that are rec22 ognized under section 1004 of title 39, United 

23 States Code, concerning the views of the personnel 

24 represented by each of those organizations. 
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1 (3) ARBITRATION LIMITATION.—Notwith2 standing chapter 12 of title 39, United States Code, 

3 there shall not be arbitration of any dispute in the 

4 negotiations under this subsection. 

5 (4) TIME LIMITATION.—The authority under 

6 this subsection shall extend until September 30, 

7 2012. 

8 (c) POSTAL SERVICE HEALTH BENEFITS PRO9 GRAM.—The Postal Service Health Benefits Program— 

10 (1) shall— 

11 (A) be available for participation by all 

12 covered employees; 

13 (B) be available for participation by any 

14 officer or employee of the Postal Service who is 

15 not a covered employee, at the option solely of 

16 that officer or employee; 

17 (C) provide coverage that is actuarially 

18 equivalent to the types of plans available under 

19 the Federal Employee Health Benefits Pro20 gram, as determined by the Director of the Of21 fice of Personnel Management; 

22 (D) be administered in a manner deter23 mined in a joint agreement reached under sub24 section (b); and 
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1 (E) provide for transition of coverage 

2 under the Federal Employee Health Benefits 

3 Program of all participants to coverage under 

4 the Postal Service Health Benefits Program on 

5 January 1, 2013; 

6 (2) may provide dental benefits; and 

7 (3) may provide vision benefits. 

8 (d) AGREEMENT AND IMPLEMENTATION.—If a joint 

9 agreement is reached under subsection (b)— 

10 (1) the Postal Service shall implement the Post11 al Service Health Benefits Program; 

12 (2) the Postal Service Health Benefits Program 

13 shall constitute an agreement between the collective 

14 bargaining representatives and the Postal Service for 

15 purposes of section 1005(f) of title 39, United 

16 States Code; and 

17 (3) participants may not participate as employ18 ees in the Federal Employees Health Benefits Pro19 gram. 

20 (e) GOVERNMENT PLAN.—The Postal Service Health 

21 Benefits Program shall be a government plan as that term 

22 is defined under section 3(32) of Employee Retirement In23 come Security Act of 1974 (29 U.S.C. 1002(32)). 

24 (f) REPORT.—Not later than June 30, 2013, the 

25 Postal Service shall submit a report to the Committee on 
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1 Homeland Security and Governmental Affairs of the Sen2 ate and the Committee on Oversight and Government Re3 form of the House of Representatives that— 

4 (1) reports on the implementation of this sec5 tion; and 

6 (2) requests any additional statutory authority 

7 that the Postal Service determines is necessary to 

8 carry out the purposes of this section. 

9 (g) RULE OF CONSTRUCTION.—Nothing in this sec10 tion shall be construed as an endorsement by Congress 

11 for withdrawing officers and employees of the Postal Serv12 ice from the Federal Employee Health Benefits Program. 

13 SEC. 105. MEDICARE EDUCATIONAL PROGRAM FOR POSTAL 

14 SERVICE EMPLOYEES AND RETIREES. 

15 (a) EDUCATIONAL PROGRAM.—The Postmaster Gen16 eral, in consultation with the Director of the Office of Per17 sonnel Management and the Administrator of the Centers 

18 for Medicare & Medicaid Services, shall develop an edu19 cational program for Postal Service employees and annu20 itants who may be eligible to enroll in the Medicare pro21 gram for hospital insurance benefits under part A of title 

22 XVIII of the Social Security Act (42 U.S.C. 1395c et seq.) 

23 (commonly known as ‘‘Medicare Part A’’) and the Medi24 care program for supplementary medical insurance bene25 fits under part B of title XVIII of the Social Security Act 
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1 (42 U.S.C. 1395j et seq.) (commonly known as ‘‘Medicare 

2 Part B’’), the objective of which shall be to educate em3 ployees and annuitants on how Medicare benefits interact 

4 with and can supplement the benefits of the employee or 

5 annuitant under the Federal Employees Health Benefit 

6 Program. 

7 (b) RULE OF CONSTRUCTION.—Nothing in this sec8 tion may be construed to authorize the Postal Service to 

9 require a Postal Service employee or annuitant (as defined 

10 in subsection (c)) to enroll in Medicare. 

11 (c) DEFINITION OF POSTAL SERVICE EMPLOYEE OR

12 ANNUITANT.—In this section, the term ‘‘Postal Service 

13 employee or annuitant’’ means an individual who is— 

14 (1) an employee of the Postal Service; or 

15 (2) an annuitant covered under chapter 89 of 

16 title 5, United States Code, whose Government con17 tribution is paid by the Postal Service under section 

18 8906(g)(2) of such title. 

19 SEC. 106. ARBITRATION; LABOR DISPUTES. 

20 Section 1207(c) of title 39, United States Code, is 

21 amended— 

22 (1) in paragraph (2)— 

23 (A) by inserting ‘‘(A)’’ after ‘‘(2)’’; 

24 (B) by striking the last sentence and in25 serting ‘‘The arbitration board shall render a 
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1 decision not later than 45 days after the date 

2 of its appointment.’’; and 

3 (C) by adding at the end the following: 

4 ‘‘(B) In rendering a decision under this paragraph, 

5 the arbitration board shall consider such relevant factors 

6 as the financial condition of the Postal Service.’’; and 

7 (2) by adding at the end the following: 

8 ‘‘(4) Nothing in this section may be construed to limit 

9 the relevant factors that the arbitration board may take 

10 into consideration in rendering a decision under paragraph 

11 (2).’’. 

12 SEC. 107. RETIREMENT REPORTING. 

13 (a) TIMELINESS AND PENDING APPLICATIONS.—Not 

14 later than 60 days after the date of enactment of this Act, 

15 and every month thereafter, the Director of the Office of 

16 Personnel Management shall submit to Congress, the 

17 Comptroller General of the United States, and issue pub18 licly (including on the website of the Office of Personnel 

19 Management) a report that— 

20 (1) evaluates the timeliness, completeness, and 

21 accuracy of information submitted by the Postal 

22 Service relating to employees of the Postal Service 

23 who are retiring, as compared with such information 

24 submitted by agencies (as defined under section 551 

25 of title 5, United States Code); and 
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1 (2) includes— 

2 (A) the total number of applications for re3 tirement benefits for employees of the Postal 

4 Service that are pending action by the Office of 

5 Personnel Management; and 

6 (B) the number of months each such appli7 cation has been pending. 

8 (b) ELECTRONIC DATA TIMETABLE.— 

9 (1) IN GENERAL.—Not later than 60 days after 

10 the date of enactment of this Act, the Office of Per11 sonnel Management shall submit to Congress and 

12 the Comptroller General of the United States a 

13 timetable for completion of each component of a re14 tirement systems modernization project of the Office 

15 of Personnel Management, including all data ele16 ments required for accurate completion of adjudica17 tion and the date by which electronic transmission of 

18 all personnel data to the Office of Personnel Man19 agement by the Postal Service shall commence. 

20 (2) TIMETABLE CONSIDERATIONS.—In pro21 viding a timetable for the commencing of the elec22 tronic transmission of all personnel data by the 

23 Postal Service under paragraph (1), the Office of 

24 Personnel Management shall consider the milestones 

25 established by other payroll processors participating 
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1 in the retirement systems modernization project of 

2 the Office of Personnel Management. 

3 SEC. 108. EXECUTIVE COMPENSATION. 

4 (a) LIMITATIONS ON COMPENSATION.—Section 1003 

5 of title 39, United States Code, is amended— 

6 (1) in subsection (a), by striking the last sen7 tence; and 

8 (2) by adding at the end the following: 

9 ‘‘(e) LIMITATIONS ON COMPENSATION.— 

10 ‘‘(1) RATES OF BASIC PAY.— 

11 ‘‘(A) IN GENERAL.—Subject to subpara12 graph (B), an officer or employee of the Postal 

13 Service may not be paid at a rate of basic pay 

14 that exceeds the rate of basic pay for level II 

15 of the Executive Schedule under section 5313 

16 of title 5. 

17 ‘‘(B) VERY SENIOR EXECUTIVES.—Not 

18 more than 6 officers or employees of the Postal 

19 Service that are in very senior executive posi20 tions, as determined by the Board of Governors, 

21 may be paid at a rate of basic pay that does not 

22 exceed the rate of basic pay for level I of the 

23 Executive Schedule under section 5312 of title 

24 5. 
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1 ‘‘(2) BENEFITS.—For any fiscal year, an officer 

2 or employee of the Postal Service who is in a critical 

3 senior executive or equivalent position, as designated 

4 under section 3686(c), may not receive fringe bene5 fits (within the meaning given that term under sec6 tion 1005(f)) that are greater than the fringe bene7 fits received by supervisory and other managerial 

8 personnel who are not subject to collective-bar9 gaining agreements under chapter 12.’’. 

10 (b) LIMITATION ON BONUS AUTHORITY.—Section 

11 3686 of title 39, United States Code, is amended— 

12 (1) in subsection (a), by striking ‘‘The Postal 

13 Service’’ and inserting ‘‘Subject to subsection (f), 

14 the Postal Service’’; and 

15 (2) by adding at the end the following: 

16 ‘‘(f) LIMITATION ON BONUS AUTHORITY.— 

17 ‘‘(1) DEFINITION.—In this subsection, the term 

18 ‘covered year’ means the fiscal year following a fiscal 

19 year relating to which the Office of Management and 

20 Budget determines the Postal Service has not imple21 mented the measures needed to achieve long-term 

22 solvency, as defined in section 208(e) of the 21st 

23 Century Postal Service Act of 2012. 

24 ‘‘(2) LIMITATION.—The Postal Service may not 

25 provide a bonus or other reward under this section 
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1 to an officer or employee of the Postal service in a 

2 critical senior executive or equivalent position, as 

3 designated under subsection (c), during a covered 

4 year.’’. 

5 (c) EFFECTIVE DATE; APPLICABILITY.—The amend6 ments made by subsections (a) and (b) shall— 

7 (1) take effect on the date of enactment of this 

8 Act; and 

9 (2) apply to any contract entered or modified 

10 by the Postal Service on or after the date of enact11 ment of this Act. 

12 (d) SUNSET.—Effective 2 years after the date of en13 actment of this Act— 

14 (1) section 1003 of title 39, United States 

15 Code, is amended— 

16 (A) in subsection (a), by adding at the end 

17 the following: ‘‘No officer or employee shall be 

18 paid compensation at a rate in excess of the 

19 rate for level I of the Executive Schedule under 

20 section 5312 of title 5.’’; and 

21 (B) by striking subsection (e); and 

22 (2) section 3686 of title 39, United States 

23 Code, is amended— 
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1 (A) in subsection (a), by striking ‘‘Subject 

2 to subsection (f), the Postal Service’’ and in3 serting ‘‘The Postal Service’’; and 

4 (B) by striking subsection (f). 

5 TITLE II—POSTAL SERVICES 

6 AND OPERATIONS 

7 SEC. 201. MAINTENANCE OF DELIVERY SERVICE STAND8 ARDS. 

9 (a) DEFINITIONS.—For purposes of this section— 

10 (1) the term ‘‘plant service area’’ means the ge11 ographic area served by a single sectional center fa12 cility, or a corresponding successor facility, as des13 ignated by the Postal Service; and 

14 (2) the term ‘‘continental United States’’ means 

15 the 48 contiguous States and the District of Colum16 bia. 

17 (b) INTERIM MAINTENANCE OF STANDARDS.—Dur18 ing the 3-year period beginning on the date of enactment 

19 of this Act, the Postal Service— 

20 (1) shall maintain the service standards de21 scribed in subsection (c); 

22 (2) may not establish a new or revised service 

23 standard for market-dominant products under sec24 tion 3691 of title 39, United States Code, that is in-
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1 consistent with the requirements under subsection 

2 (c); and 

3 (3) shall include in any new or revised over4 night service standard established for market-domi5 nant products under section 3691 of title 39, United 

6 States Code, a policy on changes to critical entry 

7 times at post offices and business mail entry units 

8 that ensures that any such changes maintain mean9 ingful access to the services provided under the serv10 ice standard required to be maintained under sub11 section (c). 

12 (c) SERVICE STANDARDS.— 

13 (1) OVERNIGHT STANDARD FOR FIRST-CLASS

14 MAIL AND PERIODICALS.— 

15 (A) IN GENERAL.—Except as provided in 

16 subparagraph (B), the Postal Service shall 

17 maintain an overnight service standard that 

18 provides overnight service for first-class mail 

19 and periodicals that— 

20 (i) originate and destinate in the same 

21 plant service area; and 

22 (ii) enter the mails before the critical 

23 entry time established and published by 

24 the Postal Service. 
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1 (B) AREAS OUTSIDE THE CONTINENTAL

2 UNITED STATES.—The requirements of sub3 paragraph (A) shall not apply to areas outside 

4 the continental United States— 

5 (i) in the case of mail that originates 

6 or destinates in a territory or possession of 

7 the United States that is part of a plant 

8 service area having a sectional center facil9 ity that— 

10 (I) is not located in the territory 

11 or possession; and 

12 (II) was not located in the terri13 tory or possession on January 1, 

14 2012; and 

15 (ii) in the case of mail not described 

16 in clause (i), except to the extent that the 

17 requirements are consistent with the serv18 ice standards under part 121 of title 39, 

19 Code of Federal Regulations, as in effect 

20 on January 1, 2012. 

21 (2) TWO-DAY DELIVERY FOR FIRST-CLASS

22 MAIL.—The Postal Service shall maintain a service 

23 standard that provides that first-class mail not deliv24 ered overnight will be delivered within 2 delivery 

25 days, to the maximum extent feasible using the net-
27 

†S 1789 ES

1 work of postal facilities maintained to meet the re2 quirements under paragraph (1). 

3 (3) MAXIMUM DELIVERY TIME FOR FIRST4 CLASS MAIL.— 

5 (A) IN GENERAL.—The Postal Service 

6 shall maintain a service standard that provides 

7 that first-class mail will be delivered— 

8 (i) within a maximum of 3 delivery 

9 days, for mail that originates and des10 tinates within the continental United 

11 States; and 

12 (ii) within a maximum period of time 

13 consistent with service standards under 

14 part 121 of title 39, Code of Federal Regu15 lations, as in effect on January 1, 2012, 

16 for mail originating or destinating outside 

17 the continental United States. 

18 (B) REVISIONS.—Notwithstanding sub19 paragraph (A)(ii), the Postal Service may revise 

20 the service standards under part 121 of title 

21 39, Code of Federal Regulations for mail de22 scribed in subparagraph (A)(ii) to take into ac23 count transportation conditions (including the 

24 availability of transportation) or other cir-
28 

†S 1789 ES

1 cumstances outside the control of the Postal 

2 Service. 

3 SEC. 202. PRESERVING MAIL PROCESSING CAPACITY. 

4 (a) CLOSING OR CONSOLIDATING CERTAIN POSTAL

5 FACILITIES.—Section 404 of title 39, United States Code, 

6 is amended by adding after subsection (e) the following: 

7 ‘‘(f) CLOSING OR CONSOLIDATION OF CERTAIN

8 POSTAL FACILITIES.— 

9 ‘‘(1) POSTAL FACILITY.—In this subsection, the 

10 term ‘postal facility’— 

11 ‘‘(A) means any Postal Service facility that 

12 is primarily involved in the preparation, dis13 patch, or other physical processing of mail; and 

14 ‘‘(B) does not include— 

15 ‘‘(i) any post office, station, or 

16 branch; or 

17 ‘‘(ii) any facility used only for admin18 istrative functions. 

19 ‘‘(2) AREA MAIL PROCESSING STUDY.— 

20 ‘‘(A) NEW AREA MAIL PROCESSING STUD21 IES.—After the date of enactment of this sub22 section, before making a determination under 

23 subsection (a)(3) as to the necessity for the 

24 closing or consolidation of any postal facility, 

25 the Postal Service shall— 
29 

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1 ‘‘(i) conduct an area mail processing 

2 study relating to that postal facility that 

3 includes— 

4 ‘‘(I) a plan to reduce the capacity 

5 of the postal facility, but not close the 

6 postal facility; and 

7 ‘‘(II) consideration of the effect 

8 of the closure or consolidation of the 

9 postal facility on the ability of individ10 uals served by the postal facility to 

11 vote by mail and the ability of the 

12 Postal Service to timely deliver ballots 

13 by mail in accordance with the dead14 line to return ballots established 

15 under applicable State law; 

16 ‘‘(ii) publish the study on the Postal 

17 Service website; and 

18 ‘‘(iii) publish a notice that the study 

19 is complete and available to the public, in20 cluding on the Postal Service website. 

21 ‘‘(B) COMPLETED OR ONGOING AREA MAIL

22 PROCESSING STUDIES.— 

23 ‘‘(i) IN GENERAL.—In the case of a 

24 postal facility described in clause (ii), the 

25 Postal Service shall— 
30 

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1 ‘‘(I) consider a plan to reduce the 

2 capacity of the postal facility without 

3 closing the postal facility; 

4 ‘‘(II) consider the effect of the 

5 closure or consolidation of the postal 

6 facility on the ability of individuals 

7 served by the postal facility to vote by 

8 mail and the ability of the Postal 

9 Service to timely deliver ballots by 

10 mail in accordance with the deadline 

11 to return ballots established under ap12 plicable State law; and 

13 ‘‘(III) publish the results of the 

14 consideration under subclause (I) with 

15 or as an amendment to the area mail 

16 processing study relating to the postal 

17 facility. 

18 ‘‘(ii) POSTAL FACILITIES.—A postal 

19 facility described in this clause is a postal 

20 facility for which, on or before the date of 

21 enactment of this subsection— 

22 ‘‘(I) an area mail processing 

23 study that does not include a plan to 

24 reduce the capacity of the postal facil25 ity without closing the postal facility 
31 

†S 1789 ES

1 or consideration of the effect of the 

2 closure or consolidation of the postal 

3 facility on the ability of individuals 

4 served by the postal facility to vote by 

5 mail and the ability of the Postal 

6 Service to timely deliver ballots by 

7 mail in accordance with the deadline 

8 to return ballots established under ap9 plicable State law has been completed; 

10 ‘‘(II) an area mail processing 

11 study is in progress; or 

12 ‘‘(III) a determination as to the 

13 necessity for the closing or consolida14 tion of the postal facility has not been 

15 made. 

16 ‘‘(3) NOTICE, PUBLIC COMMENT, AND PUBLIC

17 HEARING.—If the Postal Service makes a determina18 tion under subsection (a)(3) to close or consolidate 

19 a postal facility, the Postal Service shall— 

20 ‘‘(A) provide notice of the determination 

21 to— 

22 ‘‘(i) Congress; 

23 ‘‘(ii) the Postal Regulatory Commis24 sion; and 
32 

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1 ‘‘(iii) the chief executive of each State 

2 whose residents are served by the postal 

3 facility, to allow the chief executive to ap4 point a citizen’s service protection advocate 

5 under section 417; 

6 ‘‘(B) provide adequate public notice of the 

7 intention of the Postal Service to close or con8 solidate the postal facility; 

9 ‘‘(C) ensure that interested persons have 

10 an opportunity to submit public comments dur11 ing a 45-day period after the notice of intention 

12 is provided under subparagraph (B); 

13 ‘‘(D) before the 45-day period described in 

14 subparagraph (C), provide for public notice of 

15 that opportunity by— 

16 ‘‘(i) publication on the Postal Service 

17 website; 

18 ‘‘(ii) posting at the affected postal fa19 cility; and 

20 ‘‘(iii) advertising the date and location 

21 of the public community meeting under 

22 subparagraph (E); and 

23 ‘‘(E) during the 45-day period described in 

24 subparagraph (C), conduct a public community 

25 meeting that provides an opportunity for public 
33 

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1 comments to be submitted verbally or in writ2 ing. 

3 ‘‘(4) FURTHER CONSIDERATIONS.—Not earlier 

4 than 30 days after the end of the 45-day period for 

5 public comment under paragraph (3), the Postal 

6 Service, in making a determination to close or con7 solidate a postal facility, shall consider— 

8 ‘‘(A) the views presented by interested per9 sons under paragraph (3); 

10 ‘‘(B) the effect of the closing or consolida11 tion on the affected community, including any 

12 disproportionate impact the closing or consoli13 dation may have on a State, region, or locality; 

14 ‘‘(C) the effect of the closing or consolida15 tion on the travel times and distances for af16 fected customers to access services under the 

17 proposed closing or consolidation; 

18 ‘‘(D) the effect of the closing or consolida19 tion on delivery times for all classes of mail; 

20 ‘‘(E) any characteristics of certain geo21 graphical areas, such as remoteness, broadband 

22 internet availability, and weather-related obsta23 cles to using alternative facilities, that may re24 sult in the closing or consolidation having a 

25 unique effect; 
34 

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1 ‘‘(F) the effect of the closing or consolida2 tion on small businesses in the area, including 

3 shipping and communications with customers 

4 and suppliers and the corresponding impact on 

5 revenues, operations, and growth; and 

6 ‘‘(G) any other factor the Postal Service 

7 determines is necessary. 

8 ‘‘(5) JUSTIFICATION STATEMENT.—Before the 

9 date on which the Postal Service closes or consoli10 dates a postal facility, the Postal Service shall post 

11 on the Postal Service website a closing or consolida12 tion justification statement that includes— 

13 ‘‘(A) a response to all public comments re14 ceived with respect to the considerations de15 scribed under paragraph (4); 

16 ‘‘(B) a description of the considerations 

17 made by the Postal Service under paragraph 

18 (4); and 

19 ‘‘(C) the actions that will be taken by the 

20 Postal Service to mitigate any negative effects 

21 identified under paragraph (4). 

22 ‘‘(6) CLOSING OR CONSOLIDATION OF POSTAL

23 FACILITIES.— 

24 ‘‘(A) IN GENERAL.—Not earlier than the 

25 15 days after posting the final determination 
35 

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1 and the justification statement under paragraph 

2 (5) with respect to a postal facility, the Postal 

3 Service may close or consolidate the postal facil4 ity. 

5 ‘‘(B) ALTERNATIVE INTAKE OF MAIL.—If 

6 the Postal Service closes or consolidates a post7 al facility under subparagraph (A), the Postal 

8 Service shall make reasonable efforts to ensure 

9 continued mail receipt from customers of the 

10 closed or consolidated postal facility at the 

11 same location or at another appropriate location 

12 in close geographic proximity to the closed or 

13 consolidated postal facility. 

14 ‘‘(C) LIMITATIONS.— 

15 ‘‘(i) IN GENERAL.—Except as pro16 vided in clause (ii), during the 3-year pe17 riod beginning on the date of enactment of 

18 the 21st Century Postal Service Act of 

19 2012, the Postal Service may not close or 

20 consolidate a postal facility if— 

21 ‘‘(I) the closing or consolidation 

22 prevents the Postal Service from 

23 maintaining service standards as re24 quired under section 201 of the 21st 
36 

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1 Century Postal Service Act of 2012; 

2 or 

3 ‘‘(II) the Postal Service— 

4 ‘‘(aa) did not close or con5 solidate the postal facility before 

6 May 15, 2012; and 

7 ‘‘(bb) conducted an area 

8 mail processing study with re9 spect to the postal facility after 

10 January 1, 2006 that— 

11 ‘‘(AA) was terminated; 

12 or 

13 ‘‘(BB) concluded that 

14 no significant cost savings 

15 or efficiencies would result 

16 from closing or consolidating 

17 the postal facility. 

18 ‘‘(ii) EXCEPTION.—Clause (i) shall 

19 not apply with respect to a postal facility 

20 described in clause (i)(II) for which— 

21 ‘‘(I) an audit under clause (iii) 

22 concludes that the mail volume and 

23 operations of the facility have changed 

24 since the date of termination or com25 pletion of an area mail processing 
37 

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1 study described in clause (i)(II)(bb) to 

2 such an extent that the study is no 

3 longer valid; and 

4 ‘‘(II) an area mail processing 

5 study completed under this subsection 

6 concludes that the closing or consoli7 dation or the postal facility is justi8 fied, taking into consideration the sav9 ings to the Postal Service and the im10 pact of the closing or consolidation on 

11 postal customers. 

12 ‘‘(iii) AUDIT BY INSPECTOR GEN13 ERAL.— 

14 ‘‘(I) IN GENERAL.—Upon the 

15 written request of the Postmaster 

16 General, the Inspector General shall 

17 conduct an audit of the mail volume 

18 and operations of a postal facility. 

19 ‘‘(II) COMPLETION.—Not later 

20 than 90 days after the date on which 

21 the Inspector General receives a re22 quest under subclause (I), the Inspec23 tor General shall submit to the Post24 master General and the Postal Regu25 latory Commission a report containing 
38 

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1 the conclusions of the audit under 

2 subclause (I). 

3 ‘‘(7) REVIEW BY POSTAL REGULATORY COMMIS4 SION.—In accordance with section 3662— 

5 ‘‘(A) an interested person may lodge a 

6 complaint with the Postal Regulatory Commis7 sion if the person believes that the closure or 

8 consolidation of a postal facility is not in con9 formance with applicable service standards, in10 cluding the service standards established under 

11 section 201 of the 21st Century Postal Service 

12 Act of 2012, or with the requirements of sec13 tion 417 of this title; 

14 ‘‘(B) if a complaint described in subpara15 graph (A) is lodged relating to the closure or 

16 consolidation of a postal facility, upon request 

17 by the person lodging the complaint, the Postal 

18 Regulatory Commission shall determine wheth19 er— 

20 ‘‘(i) the area mail processing study re21 lating to the postal facility used an appro22 priate methodology; and 

23 ‘‘(ii) the cost savings identified in the 

24 area mail processing study relating to the 

25 postal facility are accurate; 
39 

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1 ‘‘(C) the Postal Regulatory Commission 

2 may direct the Postal Service to conduct an3 other area mail processing study or direct the 

4 Postal Service to take action as described under 

5 subparagraph (D) if the Postal Regulatory 

6 Commission determines that— 

7 ‘‘(i) the area mail processing study re8 lating to the postal facility used an inap9 propriate methodology; or 

10 ‘‘(ii) the cost savings identified in the 

11 area mail processing study relating to the 

12 postal facility are inaccurate; and 

13 ‘‘(D) if the Postal Regulatory Commission 

14 finds a complaint lodged by an interested per15 son to be justified, the Commission shall order 

16 the Postal Service to take appropriate action to 

17 achieve compliance with applicable service 

18 standards, including the service standards es19 tablished under section 201 of the 21st Century 

20 Postal Service Act of 2012, or with the require21 ments of section 417 of this title, or to remedy 

22 the effects of any noncompliance. 

23 ‘‘(8) POSTAL SERVICE WEBSITE.—For purposes 

24 of any notice required to be published on the Postal 

25 Service website under this subsection, the Postal 
40 

†S 1789 ES

1 Service shall ensure that the Postal Service 

2 website— 

3 ‘‘(A) is updated routinely; and 

4 ‘‘(B) provides any person, at the option of 

5 the person, the opportunity to receive relevant 

6 updates by electronic mail. 

7 ‘‘(9) PROTECTION OF CERTAIN INFORMA8 TION.—Nothing in this subsection may be construed 

9 to require the Postal Service to disclose— 

10 ‘‘(A) any proprietary data, including any 

11 reference or citation to proprietary data; or 

12 ‘‘(B) any information relating to the secu13 rity of a postal facility.’’. 

14 (b) COMPLAINTS RELATING TO CLOSING OR CON15 SOLIDATION OF POSTAL FACILITIES.—Section 3662 of 

16 title 39, United States Code, is amended— 

17 (1) in subsection (b), by adding at the end the 

18 following: 

19 ‘‘(3) SUSPENSION OF EFFECTIVENESS OF DE20 TERMINATION TO CLOSE OR CONSOLIDATE POSTAL

21 FACILITIES.—The Postal Regulatory Commission 

22 shall suspend the effectiveness of a determination by 

23 the Postal Service to close or consolidate a postal fa24 cility until the disposition of any complaint chal-
41 

†S 1789 ES

1 lenging the closing or consolidation on the basis that 

2 the closing or consolidation is— 

3 ‘‘(A) not in conformance with service 

4 standards issued under section 3691, including 

5 the service standards required to be maintained 

6 under section 201 of the 21st Century Postal 

7 Service Act of 2012; or 

8 ‘‘(B) unsupported by evidence on the 

9 record that substantial economic savings are 

10 likely to be achieved as a result of the closing 

11 or consolidation.’’; and 

12 (2) in subsection (c), by inserting ‘‘ordering the 

13 Postal Service to keep a postal facility open,’’ after 

14 ‘‘loss-making products,’’. 

15 SEC. 203. ESTABLISHMENT OF RETAIL SERVICE STAND16 ARDS. 

17 (a) DEFINITION.—In this section, the term ‘‘retail 

18 postal service’’ means service that allows a postal cus19 tomer to— 

20 (1) purchase postage; 

21 (2) enter packages into the mail; and 

22 (3) procure other services offered by the Postal 

23 Service. 

24 (b) ESTABLISHMENT OF RETAIL SERVICE STAND25 ARDS.—Not later than 6 months after the date of enact-
42 

†S 1789 ES

1 ment of this Act, the Postal Service shall exercise its au2 thority under section 3691 of title 39, United States Code, 

3 to establish service standards for market-dominant prod4 ucts in order to guarantee customers of the Postal Service 

5 regular and effective access to retail postal services nation6 wide (including in territories and possessions of the United 

7 States) on a reasonable basis. 

8 (c) CONTENTS.—The service standards established 

9 under subsection (b) shall— 

10 (1) be consistent with— 

11 (A) the obligations of the Postal Service 

12 under section 101(b) of title 39, United States 

13 Code; and 

14 (B) the contents of the plan developed 

15 under section 302 of the Postal Accountability 

16 and Enhancement Act of 2006 (39 U.S.C. 3691 

17 note), and any updated or revised plan devel18 oped under section 204 of this Act; and 

19 (2) take into account factors including— 

20 (A) geography, including the establishment 

21 of standards for the proximity of retail postal 

22 services to postal customers, including a consid23 eration of the reasonable maximum time a post24 al customer should expect to travel to access a 

25 postal retail location; 
43 

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1 (B) the importance of facilitating commu2 nications for communities with limited or no ac3 cess to Internet, broadband, or cellular tele4 phone services; 

5 (C) population, including population den6 sity, demographic factors such as the age, dis7 ability status, and degree of poverty of individ8 uals in the area to be served by a location pro9 viding postal retail services, and other factors 

10 that may impact the ability of postal customers, 

11 including businesses, to travel to a postal retail 

12 location; 

13 (D) the feasibility of offering retail access 

14 to postal services in addition to post offices, as 

15 described in section 302(d) of the Postal Ac16 countability and Enhancement Act of 2006 (39 

17 U.S.C. 3691 note); 

18 (E) the requirement that the Postal Serv19 ice serve remote areas and communities with 

20 transportation challenges, including commu21 nities in which the effects of inclement weather 

22 or other natural conditions might obstruct or 

23 otherwise impede access to retail postal serv24 ices; and 
44 

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1 (F) the ability of postal customers to ac2 cess retail postal services in areas that were 

3 served by a post office that was closed or con4 solidated during the 1 year period ending on 

5 the date of enactment of this Act. 

6 SEC. 204. EXPANDED RETAIL ACCESS. 

7 (a) UPDATED PLAN.—Not later than 1 year after the 

8 date of enactment of this Act, the Postal Service shall, 

9 in consultation with the Commission, develop and submit 

10 to Congress a revised and updated version of the plan to 

11 expand and market retail access to postal services required 

12 under section 302(d) of the Postal Accountability and En13 hancement Act of 2006 (39 U.S.C. 3691 note). 

14 (b) CONTENTS.—The plan required under subsection 

15 (a) shall— 

16 (1) include a consideration of methods to ex17 pand and market retail access to postal services de18 scribed in paragraphs (1) through (8) of section 

19 302(d) of the Postal Accountability and Enhance20 ment Act of 2006 (39 U.S.C. 3691 note); 

21 (2) where possible, provide for an improvement 

22 in customer access to postal services; 

23 (3) consider the impact of any decisions by the 

24 Postal Service relating to the implementation of the 
45 

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1 plan on rural areas, communities, and small towns; 

2 and 

3 (4) ensure that— 

4 (A) rural areas, communities, and small 

5 towns continue to receive regular and effective 

6 access to retail postal services after implemen7 tation of the plan; and 

8 (B) the Postal Service solicits community 

9 input in accordance with applicable provisions 

10 of Federal law. 

11 (c) FURTHER UPDATES.—The Postal Service, in con12 sultation with the Commission, shall— 

13 (1) update the plan required under subsection 

14 (a) as the Postal Service determines is appropriate; 

15 and 

16 (2) submit each update under paragraph (1) to 

17 Congress. 

18 SEC. 205. PRESERVING COMMUNITY POST OFFICES. 

19 (a) CLOSING POST OFFICES.—Section 404(d) of title 

20 39, United States Code, is amended to read as follows: 

21 ‘‘(d)(1) The Postal Service, prior to making a deter22 mination under subsection (a)(3) of this section as to the 

23 necessity for the closing or consolidation of any post office 

24 and, with respect to a determination to close a post office 

25 in a rural area, as defined by the Census Bureau, prior 
46 

†S 1789 ES

1 to making the determinations required by paragraph (4), 

2 shall— 

3 ‘‘(A) consider whether— 

4 ‘‘(i) to close the post office or consolidate 

5 the post office and another post office located 

6 within a reasonable distance; 

7 ‘‘(ii) instead of closing or consolidating the 

8 post office— 

9 ‘‘(I) to reduce the number of hours a 

10 day that the post office operates; or 

11 ‘‘(II) to continue operating the post 

12 office for the same number of hours a day; 

13 ‘‘(iii) to procure a contract providing full, 

14 or less than full, retail services in the commu15 nity served by the post office; or 

16 ‘‘(iv) to provide postal services to the com17 munity served by the post office— 

18 ‘‘(I) through a rural carrier; or 

19 ‘‘(II) by co-locating an employee of 

20 the Postal Service at a commercial or gov21 ernment entity; 

22 ‘‘(B) provide postal customers served by the 

23 post office an opportunity to participate in a non24 binding survey conducted by mail on a preference for 

25 an option described in subparagraph (A); and 
47 

†S 1789 ES

1 ‘‘(C) if the Postal Service determines to close or 

2 consolidate the post office, provide adequate notice 

3 of its intention to close or consolidate such post of4 fice at least 60 days prior to the proposed date of 

5 such closing or consolidation to— 

6 ‘‘(i) persons served by such post office to ensure that 

7 such persons will have an opportunity to present their 

8 views; and 

9 ‘‘(ii) the chief executive of each State whose residents 

10 are served by such post office to allow the chief executive 

11 to appoint a citizen’s service protection advocate under 

12 section 417. 

13 ‘‘(2) The Postal Service, in making a determination 

14 whether or not to close or consolidate a post office— 

15 ‘‘(A) shall consider— 

16 ‘‘(i) the effect of such closing or consolida17 tion on the community served by such post of18 fice; 

19 ‘‘(ii) the effect of the closing or consolida20 tion on small businesses in the area, including 

21 shipping and communications with customers 

22 and suppliers and the corresponding impact on 

23 revenues, operations, and growth; and 
48 

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1 ‘‘(iii) the effect of such closing or consoli2 dation on employees of the Postal Service em3 ployed at such office; 

4 ‘‘(iv) whether such closing or consolidation 

5 is consistent with— 

6 ‘‘(I) the policy of the Government, as 

7 stated in section 101(b) of this title, that 

8 the Postal Service shall provide a max9 imum degree of effective and regular postal 

10 services to rural areas, communities, and 

11 small towns where post offices are not self12 sustaining; and 

13 ‘‘(II) the retail service standards es14 tablished under section 203 of the 21st 

15 Century Postal Service Act of 2012; 

16 ‘‘(v) the extent to which the community 

17 served by the post office lacks access to Inter18 net, broadband and cellular phone service; 

19 ‘‘(vi) whether substantial economic savings 

20 to the Postal Service would result from such 

21 closing or consolidation; and 

22 ‘‘(vii) such other factors as the Postal 

23 Service determines are necessary; and 
49 

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1 ‘‘(B) may not consider compliance with any 

2 provision of the Occupational Safety and Health Act 

3 of 1970 (29 U.S.C. 651 et seq.). 

4 ‘‘(3) Any determination of the Postal Service to close 

5 or consolidate a post office shall be in writing and shall 

6 include the findings of the Postal Service with respect to 

7 the considerations required to be made under paragraph 

8 (2) of this subsection and, with respect to a determination 

9 to close a post office located in a rural area, as defined 

10 by the Census Bureau, a summary of the determinations 

11 required under paragraph (4). Such determination and 

12 findings shall be made available to persons served by such 

13 post office. 

14 ‘‘(4) The Postal Service may not make a determina15 tion under subsection (a)(3) to close a post office located 

16 in a rural area, as defined by the Census Bureau, unless 

17 the Postal Service— 

18 ‘‘(A)(i) determines that postal customers served 

19 by the post office would continue after the closing to 

20 receive substantially similar access to essential 

21 items, such as prescription medications and time22 sensitive communications, that are sent through the 

23 mail; or 
50 

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1 ‘‘(ii) takes action to substantially ameliorate 

2 any projected reduction in access to essential items 

3 described in clause (i); and 

4 ‘‘(B) determines that— 

5 ‘‘(i) businesses located in the community 

6 served by the post office would not suffer sub7 stantial financial loss as a result of the closing; 

8 ‘‘(ii) any economic loss to the community 

9 served by the post office as a result of the clos10 ing does not exceed the cost to the Postal Serv11 ice of not closing the post office; 

12 ‘‘(iii) the area served by the post office has 

13 adequate access to wired broadband Internet 

14 service, as identified on the National 

15 Broadband Map of the National Telecommuni16 cations and Information Administration; and 

17 ‘‘(iv) there is a road connecting the com18 munity to another post office that is not more 

19 than 10 miles from the post office proposed to 

20 be closed (as measured on roads with year21 round access). 

22 ‘‘(5)(A) The Postal Service shall take no action to 

23 close or consolidate a post office until 60 days after its 

24 written determination is made available to persons served 

25 by such post office. 
51 

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1 ‘‘(B) The Postal Service shall take no action to close 

2 or consolidate a post office until 60 days after the Postal 

3 Service provides written notice of the determination under 

4 paragraph (3) to— 

5 ‘‘(i) the State board of elections for the State 

6 in which the post office is located; and 

7 ‘‘(ii) each local board of elections (or equivalent 

8 local entity) having jurisdiction of an area served by 

9 the post office. 

10 ‘‘(6) A determination of the Postal Service to close 

11 or consolidate any post office, station, or branch may be 

12 appealed by any person served by such office, station, or 

13 branch to the Postal Regulatory Commission within 30 

14 days after such determination is made available to such 

15 person. The Commission shall review such determination 

16 on the basis of the record before the Postal Service in the 

17 making of such determination. The Commission shall 

18 make a determination based upon such review no later 

19 than 120 days after receiving any appeal under this para20 graph. The Commission shall set aside any determination, 

21 findings, and conclusions found to be— 

22 ‘‘(A) arbitrary, capricious, an abuse of discre23 tion, or otherwise not in accordance with the law; 

24 ‘‘(B) without observance of procedure required 

25 by law; 
52 

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1 ‘‘(C) inconsistent with the delivery service 

2 standards required to be maintained under section 

3 201 of the 21st Century Postal Service Act of 2012 

4 or not in conformance with the retail service stand5 ards established under section 203 of the 21st Cen6 tury Postal Service Act of 2012; or 

7 ‘‘(D) unsupported by substantial evidence on 

8 the record, including that substantial economic sav9 ings are likely to be achieved as a result of the clos10 ing or consolidation. 

11 The Commission may affirm or reverse the determination 

12 of the Postal Service or order that the entire matter be 

13 returned for further consideration, but the Commission 

14 may not modify the determination of the Postal Service. 

15 The determination of the Postal Service shall be sus16 pended until the final disposition of the appeal. The provi17 sions of section 556, section 557, and chapter 7 of title 

18 5 shall not apply to any review carried out by the Commis19 sion under this paragraph. 

20 ‘‘(7) For purposes of paragraph (6), any appeal re21 ceived by the Commission shall— 

22 ‘‘(A) if sent to the Commission through the 

23 mails, be considered to have been received on the 

24 date of the Postal Service postmark on the envelope 

25 or other cover in which such appeal is mailed; or 
53 

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1 ‘‘(B) if otherwise lawfully delivered to the Com2 mission, be considered to have been received on the 

3 date determined based on any appropriate docu4 mentation or other indicia (as determined under reg5 ulations of the Commission). 

6 ‘‘(8) Nothing in this subsection shall be construed to 

7 limit the right under section 3662— 

8 ‘‘(A) of an interested person to lodge a com9 plaint with the Postal Regulatory Commission under 

10 section 3662 concerning nonconformance with serv11 ice standards, including the retail service standards 

12 established under section 203 of the 21st Century 

13 Postal Service Act of 2012; or 

14 ‘‘(B) of the Postal Regulatory Commission, if 

15 the Commission finds a complaint lodged by an in16 terested person to be justified, to order the Postal 

17 Service to take appropriate action to achieve compli18 ance with applicable requirements, including the re19 tail service standards established under section 203 

20 of the 21st Century Postal Service Act of 2012, or 

21 to remedy the effects of any noncompliance.’’. 

22 (b) PROHIBITION ON CLOSING POST OFFICES.— 

23 (1) MORATORIUM PENDING ESTABLISHMENT OF

24 SERVICE STANDARDS.—Notwithstanding section 

25 404(d) of title 39, United States Code, as amended 
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1 by this section, during the period beginning on the 

2 date of enactment of this Act and ending on the 

3 date on which the Postal Service establishes the 

4 service standards under section 203 of this Act, the 

5 Postal Service may not close a post office, except as 

6 required for the immediate protection of health and 

7 safety. 

8 (2) MORATORIUM ON CLOSING RURAL POST OF9 FICES.— 

10 (A) IN GENERAL.—Notwithstanding para11 graph (1) of this subsection or section 404(d) 

12 of title 39, United States Code, during the 12- 

13 month period beginning on the date of enact14 ment of this Act, the Postal Service may not 

15 close a post office located in a rural area, as de16 fined by the Census Bureau, except as required 

17 for the immediate protection of health and safe18 ty, or unless there is no significant community 

19 opposition to such closure. 

20 (B) RULE OF CONSTRUCTION.—Nothing in 

21 this paragraph shall be construed to limit the 

22 authority of the Postal Service to implement, 

23 consistent with the procedures under section 

24 404(d)(1)(B) of title 39, United States Code, as 

25 amended by this Act, cost-saving measures with 
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1 respect to the post offices described in subpara2 graph (A), including, as appropriate, the meas3 ures required to be considered under clauses 

4 (ii), (iii), and (iv) of section 404(d)(1)(A) of 

5 title 39, United States Code, as amended by 

6 this Act. 

7 (c) MORATORIUM TO PROTECT THE ABILITY OF

8 VOTERS TO VOTE ABSENTEE OR BY MAIL.—Notwith9 standing subsection (b) of this subsection or subsection 

10 (d) or (f) of section 404 of title 39, United States Code, 

11 as amended by this Act, during the period beginning on 

12 the date of enactment of this Act and ending on November 

13 13, 2012, the Postal Service may not close or consolidate 

14 a post office or postal facility located in a State that con15 ducts all elections by mail or permits no-excuse absentee 

16 voting, except as required for the immediate protection of 

17 health and safety. 

18 (d) HISTORIC POST OFFICES.—Section 404(d) of 

19 title 39, United States Code, as amended by this section, 

20 is amended by adding at the end the following: 

21 ‘‘(9)(A) In this paragraph, the term ‘historic post of22 fice building’ means a post office building that is a cer23 tified historic structure, as that term is defined in section 

24 47(c)(3) of the Internal Revenue Code of 1986. 
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1 ‘‘(B) In the case of a post office that has been closed 

2 and that is located within a historic post office building, 

3 the Postal Service shall provide Federal agencies and 

4 State and local government entities the opportunity to 

5 lease the historic post office building, if— 

6 ‘‘(i) the Postal Service is unable to sell the 

7 building at an acceptable price within a reasonable 

8 period of time after the post office has been closed; 

9 and 

10 ‘‘(ii) the Federal agency or State or local gov11 ernment entity that leases the building agrees to— 

12 ‘‘(I) restore the historic post office building 

13 at no cost to the Postal Service; 

14 ‘‘(II) assume responsibility for the mainte15 nance of the historic post office building; and 

16 ‘‘(III) make the historic post office build17 ing available for public use.’’. 

18 SEC. 206. AREA AND DISTRICT OFFICE STRUCTURE. 

19 (a) PLAN REQUIRED.—Not later than 1 year after 

20 the date of enactment of this Act, the Postal Service shall 

21 submit to the Committee on Homeland Security and Gov22 ernmental Affairs of the Senate and the Committee on 

23 Oversight and Governmental Reform of the House of Rep24 resentatives— 
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1 (1) a comprehensive strategic plan to govern 

2 decisions relating to area and district office struc3 ture that considers efficiency, costs, redundancies, 

4 mail volume, technological advancements, oper5 ational considerations, and other issues that may be 

6 relevant to establishing an effective area and district 

7 office structure; and 

8 (2) a 10-year plan, including a timetable, that 

9 provides for consolidation of area and district offices 

10 within the continental United States (as defined in 

11 section 201(a)) wherever the Postal Service deter12 mines a consolidation would— 

13 (A) be cost effective; and 

14 (B) not substantially and adversely affect 

15 the operations of the Postal Service. 

16 (b) CONSOLIDATION.—Beginning not later than 1 

17 year after the date of enactment of this Act, the Postal 

18 Service shall, consistent with the plans required under and 

19 the criteria described in subsection (a)— 

20 (1) consolidate district offices that are located 

21 within 50 miles of each other; 

22 (2) consolidate area and district offices that 

23 have less than the mean mail volume and number of 

24 work hours for all area and district offices; and 

25 (3) relocate area offices to headquarters. 
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1 (c) UPDATES.—The Postal Service shall update the 

2 plans required under subsection (a) not less frequently 

3 than once every 5 years. 

4 (d) STATE LIAISON.—If the Postal Service does not 

5 maintain a district office in a State, the Postal Service 

6 shall designate at least 1 employee of the district office 

7 responsible for Postal Service operations in the State to 

8 represent the needs of Postal Service customers in the 

9 State. An employee designated under this subsection to 

10 represent the needs of Postal Service customers in a State 

11 shall be located in that State. 

12 SEC. 207. LIMITATIONS ON CHANGES TO MAIL DELIVERY 

13 SCHEDULE. 

14 (a) LIMITATION ON CHANGE IN SCHEDULE.—Not15 withstanding any other provision of law— 

16 (1) the Postal Service may not establish a gen17 eral, nationwide delivery schedule of 5 or fewer days 

18 per week to street addresses under the authority of 

19 the Postal Service under title 39, United States 

20 Code, earlier than the date that is 24 months after 

21 the date of enactment of this Act; and 

22 (2) on or after the date that is 24 months after 

23 the date of enactment of this Act, the Postal Service 

24 may establish a general, nationwide 5-day-per-week 

25 delivery schedule to street addresses under the au-
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1 thority of the Postal Service under section 3691 of 

2 title 39, United States Code, only in accordance with 

3 the requirements and limitations under this section. 

4 (b) PRECONDITIONS.—If the Postal Service intends 

5 to establish a change in delivery schedule under subsection 

6 (a)(2), the Postal Service shall— 

7 (1) identify customers, communities, and small 

8 businesses for whom the change may have a dis9 proportionate, negative impact, including the cus10 tomers identified as ‘‘particularly affected’’ in the 

11 Advisory Opinion on Elimination of Saturday Deliv12 ery issued by the Commission on March 24, 2011; 

13 (2) develop, to the maximum extent possible, 

14 measures to ameliorate any disproportionate, nega15 tive impact the change would have on customers and 

16 communities identified under paragraph (1), includ17 ing, where appropriate, providing or expanding ac18 cess to mailboxes for periodical mailers on days on 

19 which the Postal Service does not provide delivery; 

20 (3) implement measures to increase revenue 

21 and reduce costs, including the measures authorized 

22 under the amendments made by sections 101, 102, 

23 103, 207, and 211 of this Act; 

24 (4) evaluate whether any increase in revenue or 

25 reduction in costs resulting from the measures im-
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1 plemented under paragraph (3) are sufficient to 

2 allow the Postal Service, without implementing a 

3 change in delivery schedule under subsection (a), to 

4 achieve long-term solvency; and 

5 (5) not earlier than 15 months after the date 

6 of enactment of this Act and not later than 9 

7 months before the effective date proposed by the 

8 Postal Service for the change, submit a report on 

9 the steps the Postal Service has taken to carry out 

10 this subsection to— 

11 (A) the Committee on Homeland Security 

12 and Governmental Affairs of the Senate and the 

13 Committee on Oversight and Government Re14 form of the House of Representatives; 

15 (B) the Comptroller General of the United 

16 States; and 

17 (C) the Commission. 

18 (c) REVIEW.— 

19 (1) GOVERNMENT ACCOUNTABILITY OFFICE.— 

20 Not later than 3 months after the date on which the 

21 Postal Service submits a report under subsection 

22 (b)(5), the Comptroller General shall submit to the 

23 Commission and to the Committee on Homeland Se24 curity and Governmental Affairs of the Senate and 

25 the Committee on Oversight and Government Re-
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1 form of the House of Representatives a report that 

2 contains findings relating to each of the following: 

3 (A) Whether the Postal Service has ade4 quately complied with subsection (b)(3), taking 

5 into consideration the statutory authority of 

6 and limitations on the Postal Service. 

7 (B) The accuracy of any statement by the 

8 Postal Service that the measures implemented 

9 under subsection (b)(3) have increased revenues 

10 or reduced costs, and the accuracy of any pro11 jection by the Postal Service relating to in12 creased revenue or reduced costs resulting from 

13 the measures implemented under subsection 

14 (b)(3). 

15 (C) The adequacy and methodological 

16 soundness of any evaluation conducted by the 

17 Postal Service under subsection (b)(4) that led 

18 the Postal Service to assert the necessity of a 

19 change in delivery schedule under subsection 

20 (a)(2). 

21 (D) Whether, based on an analysis of the 

22 measures implemented by the Postal Service to 

23 increase revenues and reduce costs, projections 

24 of increased revenue and cost savings, and the 

25 details of the profitability plan required under 
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1 section 401, a change in delivery schedule is 

2 necessary to allow the Postal Service to achieve 

3 long-term solvency. 

4 (2) POSTAL REGULATORY COMMISSION.— 

5 (A) REQUEST.—Not later than 6 months 

6 before the proposed effective date of a change 

7 in delivery schedule under subsection (a), the 

8 Postal Service shall submit to the Commission 

9 a request for an advisory opinion relating to the 

10 change. 

11 (B) ADVISORY OPINION.— 

12 (i) IN GENERAL.—The Commission 

13 shall— 

14 (I) issue an advisory opinion with 

15 respect to a request under subpara16 graph (A), in accordance with the 

17 time limits for the issuance of advi18 sory opinions under section 

19 3661(b)(2) of title 39, United States 

20 Code, as amended by this Act; and 

21 (II) submit the advisory opinion 

22 to the Committee on Homeland Secu23 rity and Governmental Affairs of the 

24 Senate and the Committee on Over-
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1 sight and Government Reform of the 

2 House of Representatives. 

3 (ii) REQUIRED DETERMINATIONS.— 

4 An advisory opinion under clause (i) shall 

5 determine— 

6 (I) whether the measures devel7 oped under subsection (b)(2) amelio8 rate any disproportionate, negative 

9 impact that a change in schedule may 

10 have on customers, communities, and 

11 small businesses identified under sub12 section (b)(1); and 

13 (II) based on the report sub14 mitted by the Comptroller General 

15 under paragraph (1)— 

16 (aa) whether the Postal 

17 Service has implemented meas18 ures to increase revenue and re19 duce costs as required under sub20 section (b)(3); 

21 (bb) whether the implemen22 tation of the measures described 

23 in item (aa) has increased reve24 nues or reduced costs, or is pro25 jected to further increase reve-
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1 nues or reduce costs in the fu2 ture; and 

3 (cc) whether a change in 

4 schedule under subsection (a)(2) 

5 is necessary to allow the Postal 

6 Service to achieve long-term sol7 vency. 

8 (3) PROHIBITION ON IMPLEMENTATION OF

9 CHANGE IN SCHEDULE.—The Postal Service may 

10 not implement a change in delivery schedule under 

11 subsection (a)(2)— 

12 (A) before the date on which the Comp13 troller General submits the report required 

14 under paragraph (1); and 

15 (B) unless the Commission determines 

16 under paragraph (2)(B)(ii)(II)(cc) that the 

17 Comptroller General has concluded that the 

18 change is necessary to allow the Postal Service 

19 to become profitable by fiscal year 2015 and to 

20 achieve long-term solvency, without regard to 

21 whether the Commission determines that the 

22 change is advisable. 

23 (d) ADDITIONAL LIMITATIONS.— 

24 (1) RULES OF CONSTRUCTION.—Nothing in 

25 this subsection shall be construed to— 
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1 (A) authorize the reduction, or require an 

2 increase, in delivery frequency for any route for 

3 which the Postal Service provided delivery on 

4 fewer than 6 days per week on the date of en5 actment of this Act; 

6 (B) authorize any change in— 

7 (i) the days and times that postal re8 tail service or any mail acceptance is avail9 able at postal retail facilities or processing 

10 facilities; or 

11 (ii) the locations at which postal retail 

12 service or mail acceptance occurs at postal 

13 retail facilities or processing facilities; 

14 (C) authorize any change in the frequency 

15 of delivery to a post office box; 

16 (D) prohibit the collection or delivery of a 

17 competitive mail product on a weekend, a recog18 nized Federal holiday, or any other specific day 

19 of the week; or 

20 (E) prohibit the Postal Service from exer21 cising its authority to make changes to proc22 essing or retail networks. 

23 (2) PROHIBITION ON CONSECUTIVE DAYS WITH24 OUT MAIL DELIVERY.—The Postal Service shall en25 sure that, under any change in schedule under sub-
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1 section (a)(2), at no time shall there be more than 

2 2 consecutive days without mail delivery to street 

3 addresses, including recognized Federal holidays. 

4 (e) DEFINITION.—In this section, the term ‘‘long5 term solvency’’ means the ability of the Postal Service to 

6 pay debts and meet expenses, including the ability to per7 form maintenance and repairs, make investments, and 

8 maintain financial reserves, as necessary to fulfill the re9 quirements and comply with the policies of title 39, United 

10 States Code, and other obligations of the Postal Service 

11 over the long term. 

12 SEC. 208. TIME LIMITS FOR CONSIDERATION OF SERVICE 

13 CHANGES. 

14 Section 3661 of title 39, United States Code, is 

15 amended by striking subsections (b) and (c) and inserting 

16 the following: 

17 ‘‘(b) PROPOSED CHANGES FOR MARKET-DOMINANT

18 PRODUCTS.— 

19 ‘‘(1) SUBMISSION OF PROPOSAL.—If the Postal 

20 Service determines that there should be a change in 

21 the nature of postal services relating to market-dom22 inant products that will generally affect service on a 

23 nationwide or substantially nationwide basis, the 

24 Postal Service shall submit a proposal to the Postal 
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1 Regulatory Commission requesting an advisory opin2 ion on the change. 

3 ‘‘(2) ADVISORY OPINION.—Upon receipt of a 

4 proposal under paragraph (1), the Postal Regulatory 

5 Commission shall— 

6 ‘‘(A) provide an opportunity for public 

7 comment on the proposal; and 

8 ‘‘(B) issue an advisory opinion not later 

9 than— 

10 ‘‘(i) 90 days after the date on which 

11 the Postal Regulatory Commission receives 

12 the proposal; or 

13 ‘‘(ii) a date that the Postal Regu14 latory Commission and the Postal Service 

15 may, not later than 1 week after the date 

16 on which the Postal Regulatory Commis17 sion receives the proposal, determine joint18 ly. 

19 ‘‘(3) RESPONSE TO OPINION.—The Postal Serv20 ice shall submit to the President and to Congress a 

21 response to an advisory opinion issued under para22 graph (2) that includes— 

23 ‘‘(A) a statement of whether the Postal 

24 Service plans to modify the proposal to address 
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1 any concerns or implement any recommenda2 tions made by the Commission; and 

3 ‘‘(B) for any concern that the Postal Serv4 ice determines not to address and any rec5 ommendation that the Postal Service deter6 mines not to implement, the reasons for the de7 termination. 

8 ‘‘(4) ACTION ON PROPOSAL.—The Postal Serv9 ice may take action regarding a proposal submitted 

10 under paragraph (1)— 

11 ‘‘(A) on or after the date that is 30 days 

12 after the date on which the Postal Service sub13 mits the response required under paragraph 

14 (3); 

15 ‘‘(B) on or after a date that the Postal 

16 Regulatory Commission and the Postal Service 

17 may, not later than 1 week after the date on 

18 which the Postal Regulatory Commission re19 ceives a proposal under paragraph (2), deter20 mine jointly; or 

21 ‘‘(C) after the date described in paragraph 

22 (2)(B), if— 

23 ‘‘(i) the Postal Regulatory Commis24 sion fails to issue an advisory opinion on 
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1 or before the date described in paragraph 

2 (2)(B); and 

3 ‘‘(ii) the action is not otherwise pro4 hibited under Federal law. 

5 ‘‘(5) MODIFICATION OF TIMELINE.—At any 

6 time, the Postal Service and the Postal Regulatory 

7 Commission may jointly redetermine a date deter8 mined under paragraph (2)(B)(ii) or (4)(B).’’. 

9 SEC. 209. PUBLIC PROCEDURES FOR SIGNIFICANT 

10 CHANGES TO MAILING SPECIFICATIONS. 

11 (a) NOTICE AND OPPORTUNITY FOR COMMENT RE12 QUIRED.—Effective on the date on which the Postal Serv13 ice issues a final rule under subsection (c), before making 

14 a change to mailing specifications that could pose a sig15 nificant burden to the customers of the Postal Service and 

16 that is not reviewed by the Commission, the Postal Service 

17 shall— 

18 (1) publish a notice of the proposed change to 

19 the specification in the Federal Register; 

20 (2) provide an opportunity for the submission 

21 of written comments concerning the proposed change 

22 for a period of not less than 30 days; 

23 (3) after considering any comments submitted 

24 under paragraph (2) and making any modifications 
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1 to the proposed change that the Postal Service de2 termines are necessary, publish— 

3 (A) the final change to the specification in 

4 the Federal Register; 

5 (B) responses to any comments submitted 

6 under paragraph (2); and 

7 (C) an analysis of the financial impact that 

8 the proposed change would have on— 

9 (i) the Postal Service; and 

10 (ii) the customers of the Postal Serv11 ice that would be affected by the proposed 

12 change; and 

13 (4) establish an effective date for the change to 

14 mailing specifications that is not earlier than 30 

15 days after the date on which the Postal Service pub16 lishes the final change under paragraph (3). 

17 (b) EXCEPTION FOR GOOD CAUSE.—If the Postal 

18 Service determines that there is an urgent and compelling 

19 need for a change to a mailing specification described in 

20 subsection (a) in order to avoid demonstrable harm to the 

21 operations of the Postal Service or to the public interest, 

22 the Postal Service may— 

23 (1) change the mailing specifications by— 

24 (A) issuing an interim final rule that— 
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1 (i) includes a finding by the Postal 

2 Service that there is good cause for the in3 terim final rule; 

4 (ii) provides an opportunity for the 

5 submission of written comments on the in6 terim final rule for a period of not less 

7 than 30 days; and 

8 (iii) establishes an effective date for 

9 the interim final rule that is not earlier 

10 than 30 days after the date on which the 

11 interim final rule is issued; and 

12 (B) publishing in the Federal Register a 

13 response to any comments submitted under 

14 subparagraph (A)(ii); and 

15 (2) waive the requirement under paragraph 

16 (1)(A)(iii) or subsection (a)(4). 

17 (c) RULES RELATING TO NOTICE AND COMMENT.— 

18 (1) IN GENERAL.—Not later than 180 days 

19 after the date of enactment of this Act, the Postal 

20 Service shall issue rules governing the provision of 

21 notice and opportunity for comment for changes in 

22 mailing specifications under subsection (a). 

23 (2) RULES.—In issuing the rules required 

24 under paragraph (1), the Postal Service shall— 
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1 (A) publish a notice of proposed rule2 making in the Federal Register that includes 

3 proposed definitions of the terms ‘‘mailing spec4 ifications’’ and ‘‘significant burden’’; 

5 (B) provide an opportunity for the submis6 sion of written comments concerning the pro7 posed change for a period of not less than 30 

8 days; and 

9 (C) publish— 

10 (i) the rule in final form in the Fed11 eral Register; and 

12 (ii) responses to the comments sub13 mitted under subparagraph (B). 

14 SEC. 210. NONPOSTAL PRODUCTS AND SERVICES. 

15 (a) IN GENERAL.—Section 404 of title 39, United 

16 States Code, is amended— 

17 (1) in subsection (a)— 

18 (A) by redesignating paragraphs (6) 

19 through (8) as paragraphs (7) through (9), re20 spectively; and 

21 (B) by inserting after paragraph (5) the 

22 following: 

23 ‘‘(6) after the date of enactment of the 21st 

24 Century Postal Service Act of 2012, and except as 

25 provided in subsection (e), to provide other services 
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1 that are not postal services, after the Postal Regu2 latory Commission— 

3 ‘‘(A) makes a determination that the provi4 sion of such services— 

5 ‘‘(i) uses the processing, transpor6 tation, delivery, retail network, or tech7 nology of the Postal Service; 

8 ‘‘(ii) is consistent with the public in9 terest and a demonstrated or potential 

10 public demand for— 

11 ‘‘(I) the Postal Service to provide 

12 the services instead of another entity 

13 providing the services; or 

14 ‘‘(II) the Postal Service to pro15 vide the services in addition to an16 other entity providing the services; 

17 ‘‘(iii) would not create unfair competi18 tion with the private sector, taking into 

19 consideration the extent to which the Post20 al Service will not, either by legal obliga21 tion or voluntarily, comply with any State 

22 or local requirements that are generally ap23 plicable to persons that provide the serv24 ices; 
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1 ‘‘(iv) will be undertaken in accordance 

2 with all Federal laws generally applicable 

3 to the provision of such services; and 

4 ‘‘(v) has the potential to improve the 

5 net financial position of the Postal Service, 

6 based on a market analysis provided to the 

7 Postal Regulatory Commission by the 

8 Postal Service; and 

9 ‘‘(B) for services that the Postal Regu10 latory Commission determines meet the criteria 

11 under subparagraph (A), classifies each such 

12 service as a market-dominant product, competi13 tive product, or experimental product, as re14 quired under chapter 36 of title 39, United 

15 States Code;’’; and 

16 (2) in subsection (e)(2), by striking ‘‘Nothing’’ 

17 and all that follows through ‘‘except that the’’ and 

18 inserting ‘‘The’’. 

19 (b) COMPLAINTS.—Section 3662(a) of title 39, 

20 United States Code, is amended by inserting 

21 ‘‘404(a)(6)(A),’’ after ‘‘403(c),’’. 

22 (c) MARKET ANALYSIS.—During the 5-year period 

23 beginning on the date of enactment of this Act, the Postal 

24 Service shall submit a copy of any market analysis pro25 vided to the Commission under section 404(a)(6)(A)(v) of 
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1 title 39, United States Code, as amended by this section, 

2 to the Committee on Homeland Security and Govern3 mental Affairs of the Senate and the Committee on Over4 sight and Government Reform of the House of Represent5 atives. 

6 SEC. 211. CHIEF INNOVATION OFFICER; INNOVATION 

7 STRATEGY. 

8 (a) CHIEF INNOVATION OFFICER.— 

9 (1) IN GENERAL.—Chapter 2 of title 39, United 

10 States Code, is amended by adding at the end the 

11 following: 

12 ‘‘§ 209. Chief innovation officer 

13 ‘‘(a) ESTABLISHMENT.—There shall be in the Postal 

14 Service a Chief Innovation Officer appointed by the Post15 master General. 

16 ‘‘(b) QUALIFICATIONS.—The Chief Innovation Offi17 cer shall have proven expertise and a record of accomplish18 ment in areas such as— 

19 ‘‘(1) the postal and shipping industry; 

20 ‘‘(2) innovative product research and develop21 ment; 

22 ‘‘(3) brand marketing strategy; 

23 ‘‘(4) new and emerging technology, including 

24 communications technology; or 

25 ‘‘(5) business process management. 
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1 ‘‘(c) DUTIES.—The Chief Innovation Officer shall 

2 lead the development and implementation of— 

3 ‘‘(1) innovative postal products and services, 

4 particularly products and services that use new and 

5 emerging technology, including communications 

6 technology, to improve the net financial position of 

7 the Postal Service; and 

8 ‘‘(2) nonpostal products and services authorized 

9 under section 404(a)(6) that have the potential to 

10 improve the net financial position of the Postal Serv11 ice. 

12 ‘‘(d) DEADLINE.—The Postmaster General shall ap13 point a Chief Innovation Officer not later than 90 days 

14 after the date of enactment of the 21st Century Postal 

15 Service Act of 2012. 

16 ‘‘(e) CONDITION.— 

17 ‘‘(1) IN GENERAL.—The Chief Innovation Offi18 cer may not hold any other office or position in the 

19 Postal Service while serving as Chief Innovation Of20 ficer. 

21 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 

22 this section shall be construed to prohibit an indi23 vidual who holds another office or position in the 

24 Postal Service at the time the individual is appointed 
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1 Chief Innovation Officer from serving as the Chief 

2 Innovation Officer under this section.’’. 

3 (2) TECHNICAL AND CONFORMING AMEND4 MENT.—The table of sections for chapter 2 of title 

5 39, United States Code, is amended by adding at 

6 the end the following: 

‘‘209. Chief innovation officer.’’. 

7 (b) INNOVATION STRATEGY.— 

8 (1) INITIAL REPORT ON INNOVATION STRAT9 EGY.— 

10 (A) IN GENERAL.—Not later than 1 year 

11 after the date of enactment of this Act, the 

12 Postmaster General, acting through the Chief 

13 Innovation Officer, shall submit a report that 

14 contains a comprehensive strategy (referred to 

15 in this subsection as the ‘‘innovation strategy’’) 

16 for improving the net financial position of the 

17 Postal Service through innovation, including the 

18 offering of new postal and nonpostal products 

19 and services, to— 

20 (i) the Committee on Homeland Secu21 rity and Governmental Affairs of the Sen22 ate; and 

23 (ii) the Committee on Oversight and 

24 Government Reform of the House of Rep25 resentatives. 
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1 (B) MATTERS TO BE ADDRESSED.—At a 

2 minimum, the report on innovation strategy re3 quired under subparagraph (A) shall describe— 

4 (i) the specific innovative postal and 

5 nonpostal products and services to be de6 veloped and offered by the Postal Service, 

7 including— 

8 (I) the nature of the market de9 mand to be satisfied by each product 

10 or service; and 

11 (II) the estimated date by which 

12 each product or service will be intro13 duced; 

14 (ii) the cost of developing and offering 

15 each product or service; 

16 (iii) the anticipated sales volume for 

17 each product or service; 

18 (iv) the anticipated revenues and prof19 its to be generated by each product or 

20 service; 

21 (v) the likelihood of success of each 

22 product or service and the risks associated 

23 with the development and sale of each 

24 product or service; 
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1 (vi) the trends anticipated in market 

2 conditions that may affect the success of 

3 each product or service during the 5-year 

4 period beginning on the date of the sub5 mission of the report under subparagraph 

6 (A); 

7 (vii) any innovations designed to im8 prove the net financial position of the 

9 Postal Service, other than the offering of 

10 new products and services; and 

11 (viii) the metrics that will be used to 

12 assess the effectiveness of the innovation 

13 strategy. 

14 (2) ANNUAL REPORT.— 

15 (A) IN GENERAL.—Not later than 1 year 

16 after the date of the submission of the initial 

17 report containing the innovation strategy under 

18 paragraph (1), and annually thereafter for 10 

19 years, the Postmaster General, acting through 

20 the Chief Innovation Officer, shall submit a re21 port on the implementation of the innovation 

22 strategy to— 

23 (i) the Committee on Homeland Secu24 rity and Governmental Affairs of the Sen25 ate; and 
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1 (ii) the Committee on Oversight and 

2 Government Reform of the House of Rep3 resentatives. 

4 (B) MATTERS TO BE ADDRESSED.—At a 

5 minimum, an annual report submitted under 

6 subparagraph (A) shall include— 

7 (i) an update of the initial report on 

8 innovation strategy submitted under para9 graph (1); 

10 (ii) a description of the progress made 

11 by the Postal Service in implementing the 

12 products, services, and other innovations 

13 described in the initial report on innovation 

14 strategy; 

15 (iii) an analysis of the performance of 

16 each product, service, or other innovation 

17 described in the initial report on innovation 

18 strategy, including— 

19 (I) the revenue generated by each 

20 product or service developed in ac21 cordance with the innovation strategy 

22 under this section and the cost of de23 veloping and offering each product or 

24 service for the preceding year; 
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1 (II) trends in each market in 

2 which a product or service is intended 

3 to satisfy a demand; 

4 (III) each product or service 

5 identified in the innovation strategy 

6 that is to be discontinued, the date on 

7 which each discontinuance will occur, 

8 and the reasons for each discontinu9 ance; 

10 (IV) each alteration that the 

11 Postal Service plans to make to a 

12 product or service identified in the in13 novation strategy to address changing 

14 market conditions and an explanation 

15 of how each alteration will ensure the 

16 success of the product or service; 

17 (V) the performance of innova18 tions other than new products and 

19 services that are designed to improve 

20 the net financial position of the Postal 

21 Service; and 

22 (VI) the performance of the inno23 vation strategy according to the 

24 metrics described in paragraph 

25 (1)(B)(viii). 
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1 SEC. 212. STRATEGIC ADVISORY COMMISSION ON POSTAL 

2 SERVICE SOLVENCY AND INNOVATION. 

3 (a) ESTABLISHMENT.— 

4 (1) IN GENERAL.—There is established in the 

5 Postal Service a Strategic Advisory Commission on 

6 Postal Service Solvency and Innovation (in this sec7 tion referred to as the ‘‘Advisory Commission’’). 

8 (2) INDEPENDENCE.—The Advisory Commis9 sion shall not be subject to the supervision of the 

10 Board of Governors of the Postal Service (in this 

11 section referred to as the ‘‘Board of Governors’’), 

12 the Postmaster General, or any other officer or em13 ployee of the Postal Service. 

14 (b) PURPOSE.—The purpose of the Advisory Com15 mission is— 

16 (1) to provide strategic guidance to the Presi17 dent, Congress, the Board of Governors, and the 

18 Postmaster General on enhancing the long-term sol19 vency of the Postal Service; and 

20 (2) to foster innovative thinking to address the 

21 challenges facing the Postal Service. 

22 (c) MEMBERSHIP.— 

23 (1) COMPOSITION.—The Advisory Commission 

24 shall be composed of 7 members, of whom— 

25 (A) 3 members shall be appointed by the 

26 President, who shall designate 1 member ap-
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1 pointed under this subparagraph to serve as 

2 Chairperson of the Advisory Commission; and 

3 (B) 1 member shall be appointed by each 

4 of— 

5 (i) the majority leader of the Senate; 

6 (ii) the minority leader of the Senate; 

7 (iii) the Speaker of the House of Rep8 resentatives; and 

9 (iv) the minority leader of the House 

10 of Representatives. 

11 (2) QUALIFICATIONS.—Members of the Advi12 sory Commission shall be prominent citizens hav13 ing— 

14 (A) significant depth of experience in such 

15 fields as business and public administration; 

16 (B) a reputation for innovative thinking; 

17 (C) familiarity with new and emerging 

18 technologies; and 

19 (D) experience with revitalizing organiza20 tions that experienced significant financial chal21 lenges or other challenges. 

22 (3) INCOMPATIBLE OFFICES.—An individual 

23 who is appointed to the Advisory Commission may 

24 not serve as an elected official or an officer or em25 ployee of the Federal Government while serving as 
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1 a member of the Advisory Commission, except in the 

2 capacity of that individual as a member of the Advi3 sory Commission. 

4 (4) DEADLINE FOR APPOINTMENT.—Each 

5 member of the Advisory Commission shall be ap6 pointed not later than 45 days after the date of en7 actment of this Act. 

8 (5) MEETINGS; QUORUM; VACANCIES.— 

9 (A) MEETINGS.—The Advisory Commis10 sion shall meet at the call of the Chairperson or 

11 a majority of the members of the Advisory 

12 Commission. 

13 (B) QUORUM.—4 members of the Advisory 

14 Commission shall constitute a quorum. 

15 (C) VACANCIES.—Any vacancy in the Advi16 sory Commission shall not affect the powers of 

17 the Advisory Commission, but shall be filled as 

18 soon as practicable in the same manner in 

19 which the original appointment was made. 

20 (d) DUTIES AND POWERS.— 

21 (1) DUTIES.—The Advisory Commission 

22 shall— 

23 (A) study matters that the Advisory Com24 mission determines are necessary and appro25 priate to develop a strategic blueprint for the 
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1 long-term solvency of the Postal Service, includ2 ing— 

3 (i) the financial, operational, and 

4 structural condition of the Postal Service; 

5 (ii) alternative strategies and business 

6 models that the Postal Service could adopt; 

7 (iii) opportunities for additional postal 

8 and nonpostal products and services that 

9 the Postal Service could offer; 

10 (iv) innovative services that postal 

11 services in foreign countries have offered, 

12 including services that respond to the in13 creasing use of electronic means of commu14 nication; and 

15 (v) the governance structure, manage16 ment structure, and management of the 

17 Postal Service, including— 

18 (I) the appropriate method of ap19 pointment, qualifications, duties, and 

20 compensation for senior officials of 

21 the Postal Service, including the Post22 master General; and 

23 (II) the number and functions of 

24 senior officials of the Postal Service 
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1 and the number of levels of manage2 ment of the Postal Service; and 

3 (B) submit the report required under sub4 section (f). 

5 (2) HEARINGS.—The Advisory Commission may 

6 hold such hearings, take such testimony, and receive 

7 such evidence as is necessary to carry out this sec8 tion. 

9 (3) ACCESS TO INFORMATION.—The Advisory 

10 Commission may secure directly from the Postal 

11 Service, the Board of Governors, the Postal Regu12 latory Commission, and any other Federal depart13 ment or agency such information as the Advisory 

14 Commission considers necessary to carry out this 

15 section. Upon request of the Chairperson of the Ad16 visory Commission, the head of the department or 

17 agency shall furnish the information described in the 

18 preceding sentence to the Advisory Commission. 

19 (e) PERSONNEL MATTERS.— 

20 (1) ADVISORY COMMISSION MEMBERS.— 

21 (A) COMPENSATION OF MEMBERS.—Each 

22 member of the Advisory Commission shall be 

23 compensated at a rate equal to the daily equiva24 lent of the annual rate of basic pay prescribed 

25 for level IV of the Executive Schedule under 
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1 section 5315 of title 5, United States Code, for 

2 each day during which the member is engaged 

3 in the actual performance of the duties of the 

4 Advisory Commission. 

5 (B) TRAVEL EXPENSES.—Members of the 

6 Advisory Commission shall be allowed travel ex7 penses, including per diem in lieu of subsist8 ence, at rates authorized for employees serving 

9 intermittently in the Government service under 

10 section 5703 of title 5, United States Code, 

11 while away from their homes or regular places 

12 of business in the performance of services for 

13 the Advisory Commission. 

14 (2) STAFF.— 

15 (A) APPOINTMENT AND COMPENSATION.— 

16 The Chairperson, in accordance with rules 

17 agreed upon by the Advisory Commission, shall 

18 appoint and fix the compensation of an execu19 tive director and such other personnel as may 

20 be necessary to enable the Advisory Commission 

21 to carry out the functions of the Advisory Com22 mission, without regard to the provisions of title 

23 5, United States Code, governing appointments 

24 in the competitive service, and without regard 

25 to the provisions of chapter 51 and subchapter 
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1 III of chapter 53 of such title relating to classi2 fication of positions and General Schedule pay 

3 rates, except that a rate of pay fixed under this 

4 subsection may not exceed the rate payable for 

5 level V of the Executive Schedule under section 

6 5316 of title 5, United States Code. 

7 (B) DETAILEES.—Any Federal employee, 

8 including an employee of the Postal Service, 

9 may be detailed to the Advisory Commission 

10 without reimbursement, and such detail shall be 

11 without interruption or loss of the civil service 

12 rights, status, or privilege of the employee. 

13 (C) CONSULTANT SERVICES.—The Advi14 sory Commission may procure the services of 

15 experts and consultants in accordance with sec16 tion 3109 of title 5, United States Code, at 

17 rates for individuals that do not exceed the 

18 daily equivalent of the annual rate of basic pay 

19 prescribed for level IV of the Executive Sched20 ule under section 5315 of such title. 

21 (f) STRATEGIC BLUEPRINT FOR LONG-TERM SOL22 VENCY.— 

23 (1) IN GENERAL.—Not later than 18 months 

24 after the date of enactment of this Act, the Advisory 
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1 Commission shall submit a report that contains a 

2 strategic blueprint to— 

3 (A) the President; 

4 (B) the Committee on Homeland Security 

5 and Governmental Affairs of the Senate; 

6 (C) the Committee on Oversight and Gov7 ernment Reform of the House of Representa8 tives; 

9 (D) the Board of Governors; and 

10 (E) the Postmaster General. 

11 (2) CONTENTS.—The report submitted under 

12 paragraph (1) shall contain a strategic blueprint for 

13 the long-term solvency of the Postal Service that in14 cludes— 

15 (A) an assessment of the business model of 

16 the Postal Service as of the date on which the 

17 report is submitted; 

18 (B) an assessment of potential future busi19 ness models for the Postal Service, including an 

20 evaluation of the appropriate balance between— 

21 (i) necessary reductions in costs and 

22 services; and 

23 (ii) additional opportunities for 

24 growth and revenue; 
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1 (C) a strategy for addressing significant 

2 current and future liabilities; 

3 (D) identification of opportunities for fur4 ther reductions in costs; 

5 (E) identification of opportunities for new 

6 and innovative products and services; 

7 (F) a strategy for future growth; 

8 (G) a vision of how the Postal Service will 

9 operate in a sustainable manner 20 years after 

10 the date of enactment of this Act; and 

11 (H) recommendations for any legislative 

12 changes necessary to implement the strategic 

13 blueprint described in this paragraph. 

14 (g) STUDY AND STRATEGIC PLAN ON INTER-AGENCY

15 AGREEMENTS FOR POST OFFICES.— 

16 (1) DUTIES OF ADVISORY COMMISSION.— 

17 (A) STUDY.— 

18 (i) IN GENERAL.—The Advisory Com19 mission shall conduct a study concerning 

20 the advisability of the Postal Service enter21 ing into inter-agency agreements with Fed22 eral, State, and local agencies, with respect 

23 to post offices, that— 
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1 (I) streamline and consolidate 

2 services provided by Federal, State, 

3 and local agencies; 

4 (II) decrease the costs incurred 

5 by Federal agencies in providing serv6 ices to the general public; and 

7 (III) improve the efficiency and 

8 maintain the customer service stand9 ards of the Federal, State, and local 

10 agencies. 

11 (ii) CLARIFICATION OF INTER-AGENCY

12 AGREEMENTS.—The study under clause (i) 

13 shall include consideration of the advis14 ability of the Postal Service entering into 

15 an inter-agency agreement with— 

16 (I) the Bureau of the Census for 

17 the provision of personnel and re18 sources for the 2020 decennial census; 

19 (II) the department of motor ve20 hicles, or an equivalent agency, of 

21 each State for the provision of driver 

22 licenses, vehicle registration, and voter 

23 registration; 

24 (III) the division of wildlife, the 

25 department of natural resources, or 
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1 an equivalent agency, of each State 

2 for the provision of hunting and fish3 ing licenses; and 

4 (IV) other Federal agencies re5 sponsible for providing services to the 

6 general public. 

7 (B) FINDINGS.—The Advisory Commission 

8 shall— 

9 (i) not later than 1 year after the date 

10 of enactment of this Act, submit to the 

11 Postal Service the findings of the study 

12 conducted under subparagraph (A); and 

13 (ii) incorporate the findings described 

14 in clause (i) into the strategic blueprint re15 quired under subsection (f). 

16 (2) POSTAL SERVICE STRATEGIC PLAN.— 

17 (A) IN GENERAL.—Not later than 6 

18 months after the date on which the Advisory 

19 Commission submits to the Postal Service the 

20 findings under paragraph (1)(B), the Postal 

21 Service shall submit a strategic plan for enter22 ing into inter-agency agreements concerning 

23 post offices to— 
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1 (i) the Committee on Homeland Secu2 rity and Governmental Affairs of the Sen3 ate; and 

4 (ii) the Committee on Oversight and 

5 Government Reform of the House of Rep6 resentatives. 

7 (B) LIMITATIONS.—The strategic plan 

8 submitted under subparagraph (A)— 

9 (i) shall be consistent with— 

10 (I) the retail service standards 

11 established under section 203 of this 

12 Act; 

13 (II) section 411 of title 39, 

14 United States Code, as amended by 

15 this Act; and 

16 (III) public interest and demand; 

17 and 

18 (ii) may not prevent the implementa19 tion of Postal Service initiatives with re20 spect to retail access to postal services 

21 under sections 203 and 204 of this Act. 

22 (C) COST SAVINGS PROJECTIONS.—The 

23 strategic plan submitted under subparagraph 

24 (A) shall include, for each proposed inter-agen25 cy agreement, a projection of cost savings to be 
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1 realized by the Postal Service and by any other 

2 Federal agency that is a party to the agree3 ment. 

4 (h) TERMINATION OF THE COMMISSION.—The Advi5 sory Commission shall terminate 90 days after the later 

6 of— 

7 (1) the date on which the Advisory Commission 

8 submits the report on the strategic blueprint for 

9 long-term solvency under subsection (f); and 

10 (2) the date on which the Advisory Commission 

11 submits the findings on inter-agency agreements for 

12 post offices under subsection (g). 

13 (i) AUTHORIZATION OF APPROPRIATIONS.—There 

14 are authorized to be appropriated for fiscal years 2013 

15 and 2014 such sums as may be necessary to carry out 

16 this section. 

17 SEC. 213. CITIZEN’S SERVICE PROTECTION ADVOCATES. 

18 (a) IN GENERAL.—Chapter 4 of title 39, United 

19 States Code, is amended by adding at the end the fol20 lowing: 

21 ‘‘§ 417. Citizen’s service protection advocates 

22 ‘‘(a) DEFINITIONS.—In this section— 

23 ‘‘(1) the term ‘citizen’s service protection advo24 cate’ means an individual appointed or designated 

25 under applicable State law, in the manner described 
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1 in subsection (b), by the chief executive of a State 

2 affected by the closing or consolidation of a post of3 fice or postal facility to represent the interests of 

4 postal customers affected by the closing or consoli5 dation; and 

6 ‘‘(2) the term ‘postal facility’ has the meaning 

7 given the term in section 404(f). 

8 ‘‘(b) APPOINTMENT OF ADVOCATE.— 

9 ‘‘(1) IN GENERAL.—The chief executive of a 

10 State affected by the proposed closing or consolida11 tion of a post office or postal facility may appoint 

12 or designate a citizen’s service protection advocate to 

13 represent the interests of postal customers affected 

14 by the proposed closing or consolidation. 

15 ‘‘(2) CONSULTATION.—To be considered a citi16 zen’s service protection advocate for purposes of this 

17 section, an individual must have been appointed or 

18 designated by the chief executive of a State in con19 sultation with— 

20 ‘‘(A) the mayor (or equivalent official) of 

21 any city affected by the closing or consolidation; 

22 and 

23 ‘‘(B) the commissioner (or equivalent offi24 cial) of any county or parish affected by the 

25 closing or consolidation. 
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1 ‘‘(c) ACCESS TO INFORMATION AND ASSISTANCE.— 

2 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

3 upon the request of any citizen’s service protection 

4 advocate appointed under this section, the Postal 

5 Service shall provide to the citizen’s service protec6 tion advocate— 

7 ‘‘(A) not later than 15 days after the re8 quest, access to any records, reports, audits, re9 views, documents, papers, recommendations, or 

10 other materials of the Postal Service relating to 

11 the closing or consolidation of the relevant post 

12 office or postal facility; and 

13 ‘‘(B) technical assistance in carrying out 

14 the duties of the citizen’s service protection ad15 vocate. 

16 ‘‘(2) LIMITATIONS.—Nothing in this section 

17 may be construed to require the Postal Service to 

18 provide to a citizen’s service protection advocate any 

19 information that is exempt from disclosure under 

20 section 552(b) of title 5. 

21 ‘‘(d) COMMUNICATION AND CONSULTATION.—The 

22 Postal Service shall— 

23 ‘‘(1) provide for regular and efficient commu24 nication between a citizen’s service protection advo25 cate and the officer or employee of the Postal Serv-
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1 ice responsible for the closing or consolidation of the 

2 relevant post office or postal facility; and 

3 ‘‘(2) consult with the citizen’s service protection 

4 advocate in developing and implementing service 

5 changes that affect postal customers affected by the 

6 closing or consolidation of the relevant post office or 

7 postal facility. 

8 ‘‘(e) TERMINATION OF SERVICE.—An individual may 

9 not serve as a citizen’s service protection advocate with 

10 respect to the closing or consolidation of a post office or 

11 postal facility after the later of— 

12 ‘‘(1) the date on which the Postal Service deter13 mines not to close or consolidate the post office or 

14 postal facility; and 

15 ‘‘(2) the date on which the Postal Service deter16 mines to close or consolidate the post office or postal 

17 facility.’’. 

18 (b) TABLE OF SECTIONS.—The table of sections for 

19 chapter 4 of title 39, United States Code, is amended by 

20 adding at the end the following: 

‘‘417. Citizen’s service protection advocates.’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall take effect on the date on which the 

23 Postal Service establishes retail service standards under 

24 section 203. 
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1 SEC. 214. CAPITOL COMPLEX POST OFFICES. 

2 (a) HOUSE OF REPRESENTATIVES.— 

3 (1) IN GENERAL.—The Postal Service shall not 

4 maintain or operate more than 1 post office in the 

5 United States Capitol Complex, as defined in section 

6 310(a)(3)(B) of the Legislative Branch Appropria7 tions Act, 1990 (2 U.S.C. 130e(a)(3)(B)), which 

8 shall be located in a House Office Building. 

9 (2) CLOSING OF CAPITOL POST OFFICES.—The 

10 Postal Service shall close any post office in the 

11 United States Capitol Complex, as defined in section 

12 310(a)(3)(B) of the Legislative Branch Appropria13 tions Act, 1990 (2 U.S.C. 130e(a)(3)(B)), not per14 mitted under this subsection, without regard to the 

15 requirements under section 404(d) of title 39, 

16 United States Code. 

17 (b) SENATE.— 

18 (1) IN GENERAL.—The Sergeant at Arms and 

19 Doorkeeper of the Senate may not enter into, mod20 ify, or renew a contract with the Postal Service to 

21 maintain or operate more than 1 post office in a 

22 Senate Office Building. 

23 (2) EXISTING CONTRACTS.—Nothing in para24 graph (1) may be construed to affect a contract en25 tered into by the Sergeant at Arms and Doorkeeper 
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1 of the Senate and the Postal Service before the date 

2 of enactment of this Act. 

3 TITLE III—FEDERAL EMPLOY4 EES’ COMPENSATION ACT 

5 SEC. 301. SHORT TITLE; REFERENCES. 

6 (a) SHORT TITLE.—This title may be cited as the 

7 ‘‘Workers’ Compensation Reform Act of 2012’’. 

8 (b) REFERENCES.—Except as otherwise expressly 

9 provided, whenever in this title an amendment or repeal 

10 is expressed in terms of an amendment to, or a repeal 

11 of, a section or other provision, the reference shall be con12 sidered to be made to a section or other provision of title 

13 5, United States Code. 

14 SEC. 302. FEDERAL WORKERS COMPENSATION REFORMS 

15 FOR RETIREMENT-AGE EMPLOYEES. 

16 (a) CONVERSION OF ENTITLEMENT AT RETIREMENT

17 AGE.— 

18 (1) DEFINITIONS.—Section 8101 is amended— 

19 (A) in paragraph (18), by striking ‘‘and’’ 

20 at the end; 

21 (B) in paragraph (19), by striking ‘‘and’’ 

22 at the end; 

23 (C) in paragraph (20), by striking the pe24 riod at the end and inserting a semicolon; and 

25 (D) by adding at the end the following: 
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1 ‘‘(21) ‘retirement age’ has the meaning given 

2 that term under section 216(l)(1) of the Social Secu3 rity Act (42 U.S.C. 416(l)(1)); 

4 ‘‘(22) ‘covered claim for total disability’ means 

5 a claim for a period of total disability that com6 menced before the date of enactment of the Work7 ers’ Compensation Reform Act of 2012; 

8 ‘‘(23) ‘covered claim for partial disability’ 

9 means a claim for a period of partial disability that 

10 commenced before the date of enactment of the 

11 Workers’ Compensation Reform Act of 2012; and 

12 ‘‘(24) ‘individual who has an exempt disability 

13 condition’ means an individual— 

14 ‘‘(A) who— 

15 ‘‘(i) is eligible to receive continuous 

16 periodic compensation for total disability 

17 under section 8105 on the date of enact18 ment of the Workers’ Compensation Re19 form Act of 2012; and 

20 ‘‘(ii) meets the criteria under section 

21 8105(c); 

22 ‘‘(B) who, on the date of enactment of the 

23 Workers’ Compensation Reform Act of 2012— 
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1 ‘‘(i) is eligible to receive continuous 

2 periodic compensation for total disability 

3 under section 8105; and 

4 ‘‘(ii) has sustained a currently irre5 versible severe mental or physical disability 

6 for which the Secretary of Labor has au7 thorized, for at least the 1-year period end8 ing on the date of enactment of the Work9 ers’ Compensation Reform Act of 2012, 

10 constant in-home care or custodial care, 

11 such as placement in a nursing home; or 

12 ‘‘(C) who is eligible to receive continuous 

13 periodic compensation for total disability under 

14 section 8105— 

15 ‘‘(i) for not less than the 3-year pe16 riod ending on the date of enactment of 

17 the Workers’ Compensation Reform Act of 

18 2012; or 

19 ‘‘(ii) if the individual became eligible 

20 to receive continuous periodic compensa21 tion for total disability under section 8105 

22 during the period beginning on the date 

23 that is 3 years before the date of enact24 ment of the Workers’ Compensation Re25 form Act of 2012 and ending on such date 
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1 of enactment, for not less than the 3-year 

2 period beginning on the date on which the 

3 individual became eligible.’’. 

4 (2) TOTAL DISABILITY.—Section 8105 is 

5 amended— 

6 (A) in subsection (a), by striking ‘‘If’’ and 

7 inserting ‘‘IN GENERAL.—Subject to subsection 

8 (b), if’’; 

9 (B) by redesignating subsection (b) as sub10 section (c); and 

11 (C) by inserting after subsection (a) the 

12 following: 

13 ‘‘(b) CONVERSION OF ENTITLEMENT AT RETIRE14 MENT AGE.— 

15 ‘‘(1) IN GENERAL.—Except as provided in para16 graph (2), the basic compensation for total disability 

17 for an employee who has attained retirement age 

18 shall be 50 percent of the monthly pay of the em19 ployee. 

20 ‘‘(2) EXCEPTIONS.— 

21 ‘‘(A) COVERED RECIPIENTS WHO ARE RE22 TIREMENT AGE, HAVE AN EXEMPT DISABILITY

23 CONDITION, OR FACE FINANCIAL HARDSHIP.— 

24 Paragraph (1) shall not apply to a covered 
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1 claim for total disability by an employee if the 

2 employee— 

3 ‘‘(i) on the date of enactment of the 

4 Workers’ Compensation Reform Act of 

5 2012, has attained retirement age; 

6 ‘‘(ii) is an individual who has an ex7 empt disability condition; or 

8 ‘‘(iii) is a member of a household that 

9 would meet the income and assets require10 ments for eligibility for the supplemental 

11 nutrition assistance program as described 

12 in section 5 of the Food and Nutrition Act 

13 of 2008 (7 U.S.C. 2014) (not including 

14 any provisions permitting eligibility due to 

15 benefits received under any other law) if 

16 the basic compensation for total disability 

17 of the employee were provided in accord18 ance with paragraph (1). 

19 ‘‘(B) TRANSITION PERIOD FOR CERTAIN

20 EMPLOYEES.—For a covered claim for total dis21 ability by an employee who is not an employee 

22 described in subparagraph (A), the employee 

23 shall receive the basic compensation for total 

24 disability provided under subsection (a) until 

25 the later of— 
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1 ‘‘(i) the date on which the employee 

2 attains retirement age; and 

3 ‘‘(ii) the date that is 3 years after the 

4 date of enactment of the Workers’ Com5 pensation Reform Act of 2012.’’. 

6 (3) PARTIAL DISABILITY.—Section 8106 is 

7 amended— 

8 (A) in subsection (a), by striking ‘‘If’’ and 

9 inserting ‘‘IN GENERAL.—Subject to subsection 

10 (b), if’’; 

11 (B) by redesignating subsections (b) and 

12 (c) as subsections (c) and (d), respectively; and 

13 (C) by inserting after subsection (a) the 

14 following: 

15 ‘‘(b) CONVERSION OF ENTITLEMENT AT RETIRE16 MENT AGE.— 

17 ‘‘(1) IN GENERAL.—Except as provided in para18 graph (2), the basic compensation for partial dis19 ability for an employee who has attained retirement 

20 age shall be 50 percent of the difference between the 

21 monthly pay of the employee and the monthly wage22 earning capacity of the employee after the beginning 

23 of the partial disability. 

24 ‘‘(2) EXCEPTIONS.— 
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1 ‘‘(A) COVERED RECIPIENTS WHO ARE RE2 TIREMENT AGE OR FACE FINANCIAL HARD3 SHIP.—Paragraph (1) shall not apply to a cov4 ered claim for partial disability by an employee 

5 if the employee— 

6 ‘‘(i) on the date of enactment of the 

7 Workers’ Compensation Reform Act of 

8 2012, has attained retirement age; or 

9 ‘‘(ii) is a member of a household that 

10 would meet the income and assets require11 ments for eligibility for the supplemental 

12 nutrition assistance program as described 

13 in section 5 of the Food and Nutrition Act 

14 of 2008 (7 U.S.C. 2014) (not including 

15 any provisions permitting eligibility due to 

16 benefits received under any other law) if 

17 the basic compensation for total disability 

18 of the employee were provided in accord19 ance with paragraph (1). 

20 ‘‘(B) TRANSITION PERIOD FOR CERTAIN

21 EMPLOYEES.—For a covered claim for partial 

22 disability by an employee who is not an em23 ployee described in subparagraph (A), the em24 ployee shall receive basic compensation for par-
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1 tial disability in accordance with subsection (a) 

2 until the later of— 

3 ‘‘(i) the date on which the employee 

4 attains retirement age; and 

5 ‘‘(ii) the date that is 3 years after the 

6 date of enactment of the Workers’ Com7 pensation Reform Act of 2012.’’. 

8 SEC. 303. AUGMENTED COMPENSATION FOR DEPENDENTS. 

9 (a) IN GENERAL.—Section 8110 is amended— 

10 (1) by redesignating subsection (b) as sub11 section (c); and 

12 (2) by inserting after subsection (a) the fol13 lowing: 

14 ‘‘(b) TERMINATION OF AUGMENTED COMPENSA15 TION.— 

16 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

17 augmented compensation for dependants under sub18 section (c) shall not be provided. 

19 ‘‘(2) EXCEPTIONS.— 

20 ‘‘(A) TOTAL DISABILITY.—For a covered 

21 claim for total disability by an employee— 

22 ‘‘(i) the employee shall receive aug23 mented compensation under subsection (c) 

24 if the employee is an individual who has an 

25 exempt disability condition; and 
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1 ‘‘(ii) the employee shall receive aug2 mented compensation under subsection (c) 

3 until the date that is 3 years after the date 

4 of enactment of the Workers’ Compensa5 tion Reform Act of 2012 if the employee is 

6 not an employee described in clause (i). 

7 ‘‘(B) PARTIAL DISABILITY.—For a covered 

8 claim for partial disability by an employee, the 

9 employee shall receive augmented compensation 

10 under subsection (c) until the date that is 3 

11 years after the date of enactment of the Work12 ers’ Compensation Reform Act of 2012. 

13 ‘‘(C) PERMANENT DISABILITY COM14 PENSATED BY A SCHEDULE.—For a claim for a 

15 permanent disability described in section 

16 8107(a) by an employee that commenced before 

17 the date of enactment of the Workers’ Com18 pensation Reform Act of 2012, the employee 

19 shall receive augmented compensation under 

20 subsection (c).’’. 

21 (b) MAXIMUM AND MINIMUM MONTHLY PAY22 MENTS.—Section 8112 is amended— 

23 (1) in subsection (a)— 

24 (A) by inserting ‘‘subsections (b) and (c) 

25 and’’ before ‘‘section 8138’’; 
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1 (B) by striking ‘‘including augmented com2 pensation under section 8110 of this title but’’; 

3 and 

4 (C) by striking ‘‘75 percent’’ each place it 

appears and inserting ‘‘662 5 ⁄3 percent’’; 

6 (2) by redesignating subsection (b) as sub7 section (c); 

8 (3) by inserting after subsection (a) the fol9 lowing: 

10 ‘‘(b) EXCEPTIONS.— 

11 ‘‘(1) COVERED DISABILITY CONDITION.—For a 

12 covered claim for total disability by an employee, if 

13 the employee is an individual who has an exempt 

14 disability condition— 

15 ‘‘(A) the monthly rate of compensation for 

16 disability that is subject to the maximum and 

17 minimum monthly amounts under subsection 

18 (a) shall include any augmented compensation 

19 under section 8110; and 

20 ‘‘(B) subsection (a) shall be applied by 

substituting ‘75 percent’ for ‘662 21 ⁄3 percent’ 

22 each place it appears. 

23 ‘‘(2) PARTIAL DISABILITY.—For a covered 

24 claim for partial disability by an employee, until the 
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1 date that is 3 years after the date of enactment of 

2 the Workers’ Compensation Reform Act of 2012— 

3 ‘‘(A) the monthly rate of compensation for 

4 disability that is subject to the maximum and 

5 minimum monthly amounts under subsection 

6 (a) shall include any augmented compensation 

7 under section 8110; and 

8 ‘‘(B) subsection (a) shall be applied by 

substituting ‘75 percent’ for ‘662 9 ⁄3 percent’ 

10 each place it appears.’’; and 

11 (4) in subsection (c), as redesignated by para12 graph (2), by striking ‘‘subsection (a)’’ and inserting 

13 ‘‘subsections (a) and (b)’’. 

14 (c) DEATH BENEFITS GENERALLY.—Section 8133 is 

15 amended— 

16 (1) in subsections (a) and (e), by striking ‘‘75 

percent’’ each place it appears and inserting ‘‘662 17 ⁄3

18 percent (except as provided in subsection (g))’’; and 

19 (2) by adding at the end the following: 

20 ‘‘(g) If the death occurred before the date of enact21 ment of the Workers’ Compensation Reform Act of 2012, 

22 subsections (a) and (e) shall be applied by substituting 

‘75 percent’ for ‘662 23 ⁄3 percent’ each place it appears.’’. 

24 (d) DEATH BENEFITS FOR CIVIL AIR PATROL VOL25 UNTEERS.—Section 8141 is amended— 
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1 (1) in subsection (b)(2)(B) by striking ‘‘75 percent’’ and inserting ‘‘662 2 ⁄3 percent (except as pro3 vided in subsection (c))’’; 

4 (2) by redesignating subsection (c) as sub5 section (d); and 

6 (3) by inserting after subsection (b) the fol7 lowing: 

8 ‘‘(c) If the death occurred before the date of enact9 ment of the Workers’ Compensation Reform Act of 2012, 

10 subsection (b)(2)(B) shall be applied by substituting ‘75 

percent’ for ‘662 11 ⁄3 percent’.’’. 

12 SEC. 304. SCHEDULE COMPENSATION PAYMENTS. 

13 Section 8107 is amended— 

14 (1) in subsection (a), by striking ‘‘at the rate 

of 662 15 ⁄3 percent of his monthly pay’’ and inserting 

16 ‘‘at the rate specified under subsection (d)’’; and 

17 (2) by adding at the end the following: 

18 ‘‘(d) RATE FOR COMPENSATION.— 

19 ‘‘(1) ANNUAL SALARY.— 

20 ‘‘(A) IN GENERAL.—Except as provided in 

21 paragraph (2), the rate under subsection (a) 

shall be the rate of 662 22 ⁄3 percent of the annual 

23 salary level established under subparagraph 

24 (B), in a lump sum equal to the present value 

25 (as calculated under subparagraph (C)) of the 
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1 amount of compensation payable under the 

2 schedule. 

3 ‘‘(B) ESTABLISHMENT.— 

4 ‘‘(i) IN GENERAL.—The Secretary of 

5 Labor shall establish an annual salary for 

6 purposes of subparagraph (A) in the 

7 amount the Secretary determines will re8 sult in the aggregate cost of payments 

9 made under this section being equal to 

10 what would have been the aggregate cost 

11 of payments under this section if the 

12 amendments made by section 304(a) of the 

13 Workers’ Compensation Reform Act of 

14 2012 had not been enacted. 

15 ‘‘(ii) COST OF LIVING ADJUSTMENT.— 

16 The annual salary established under clause 

17 (i) shall be increased on March 1 of each 

18 year by the amount determined by the Sec19 retary of Labor to represent the percent 

20 change in the price index published for De21 cember of the preceding year over the price 

22 index published for the December of the 

23 year prior to the preceding year, adjusted 

24 to the nearest one-tenth of 1 percent. 
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1 ‘‘(C) PRESENT VALUE.—The Secretary of 

2 Labor shall calculate the present value for pur3 poses of subparagraph (A) using a rate of inter4 est equal to the average market yield for out5 standing marketable obligations of the United 

6 States with a maturity of 2 years on the first 

7 business day of the month in which the com8 pensation is paid or, in the event that such 

9 marketable obligations are not being issued on 

10 such date, at an equivalent rate selected by the 

11 Secretary of Labor, true discount compounded 

12 annually. 

13 ‘‘(2) CERTAIN INJURIES.—For an injury that 

14 occurred before the date of enactment of the Work15 ers’ Compensation Reform Act of 2012, the rate 

under subsection (a) shall be 662 16 ⁄3 percent of the 

17 employee’s monthly pay. 

18 ‘‘(e) SIMULTANEOUS RECEIPT.— 

19 ‘‘(1) TOTAL DISABILITY.—An employee who re20 ceives compensation for total disability under section 

21 8105 may only receive the lump sum of schedule 

22 compensation under this section in addition to and 

23 simultaneously with the benefits for total disability 

24 after the earlier of— 
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1 ‘‘(A) the date on which the basic com2 pensation for total disability of the employee be3 comes 50 percent of the monthly pay of the em4 ployee under section 8105(b); or 

5 ‘‘(B) the date on which augmented com6 pensation of the employee terminates under sec7 tion 8110(b)(2)(A)(ii), if the employee receives 

8 such compensation. 

9 ‘‘(2) PARTIAL DISABILITY.—An employee who 

10 receives benefits for partial disability under section 

11 8106 may only receive the lump sum of schedule 

12 compensation under this section in addition to and 

13 simultaneously with the benefits for partial disability 

14 after the earlier of— 

15 ‘‘(A) the date on which the basic com16 pensation for partial disability of the employee 

17 becomes 50 percent of the difference between 

18 the monthly pay of the employee and the 

19 monthly wage-earning capacity of the employee 

20 after the beginning of the partial disability 

21 under section 8106(b); or 

22 ‘‘(B) the date on which augmented com23 pensation of the employee terminates under sec24 tion 8110(b)(2)(B), if the employee receives 

25 such compensation.’’. 
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1 SEC. 305. VOCATIONAL REHABILITATION. 

2 (a) IN GENERAL.—Section 8104 is amended— 

3 (1) in subsection (a)— 

4 (A) by striking ‘‘(a) The Secretary of 

5 Labor may’’ and all that follows through ‘‘un6 dergo vocational rehabilitation.’’ and inserting 

7 the following: 

8 ‘‘(a) IN GENERAL.— 

9 ‘‘(1) DIRECTION.—Except as provided in para10 graph (2), not earlier than the date that is 6 months 

11 after the date on which an individual eligible for 

12 wage-loss compensation under section 8105 or 8106 

13 is injured, or by such other date as the Secretary of 

14 Labor determines it would be reasonable under the 

15 circumstances for the individual to begin vocational 

16 rehabilitation, and if vocational rehabilitation may 

17 enable the individual to become capable of more 

18 gainful employment, the Secretary of Labor shall di19 rect the individual to participate in developing a 

20 comprehensive return to work plan and to undergo 

21 vocational rehabilitation at a location a reasonable 

22 distance from the residence of the individual.’’; 

23 (B) by striking ‘‘the Secretary of Health, 

24 Education, and Welfare in carrying out the pur25 poses of chapter 4 of title 29’’ and inserting 

26 ‘‘the Secretary of Education in carrying out the 
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1 purposes of the Rehabilitation Act of 1973 (29 

2 U.S.C. 701 et seq.)’’; 

3 (C) by striking ‘‘under section 32(b)(1) of 

4 title 29’’ and inserting ‘‘under section 5 of the 

5 Rehabilitation Act of 1973 (29 U.S.C. 704)’’; 

6 and 

7 (D) by adding at the end the following: 

8 ‘‘(2) EXCEPTION.—The Secretary of Labor may 

9 not direct an individual who has attained retirement 

10 age to participate in developing a comprehensive re11 turn to work plan or to undergo vocational rehabili12 tation.’’; 

13 (2) by redesignating subsection (b) as sub14 section (c); 

15 (3) by inserting after subsection (a) the fol16 lowing: 

17 ‘‘(b) CONTENTS OF RETURN TO WORK PLAN.—A re18 turn to work plan developed under subsection (a)— 

19 ‘‘(1) shall— 

20 ‘‘(A) set forth specific measures designed 

21 to increase the wage-earning capacity of an in22 dividual; 

23 ‘‘(B) take into account the prior training 

24 and education of the individual and the train-
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1 ing, educational, and employment opportunities 

2 reasonably available to the individual; and 

3 ‘‘(C) provide that any employment under4 taken by the individual under the return to 

5 work plan be at a location a reasonable distance 

6 from the residence of the individual; 

7 ‘‘(2) may provide that the Secretary will pay 

8 out of amounts in the Employees’ Compensation 

9 Fund reasonable expenses of vocational rehabilita10 tion (which may include tuition, books, training fees, 

11 supplies, equipment, and child or dependent care) 

12 during the course of the plan; and 

13 ‘‘(3) may not be for a period of more than 2 

14 years, unless the Secretary finds good cause to grant 

15 an extension, which may be for not more than 2 

16 years.’’; 

17 (4) in subsection (c), as so redesignated— 

18 (A) by inserting ‘‘COMPENSATION.—’’ be19 fore ‘‘Notwithstanding’’; and 

20 (B) by striking ‘‘, other than employment 

21 undertaken pursuant to such rehabilitation’’; 

22 and 

23 (5) by adding at the end the following: 

24 ‘‘(d) ASSISTED REEMPLOYMENT AGREEMENTS.— 
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1 ‘‘(1) IN GENERAL.—The Secretary may enter 

2 into an assisted reemployment agreement with an 

3 agency or instrumentality of any branch of the Fed4 eral Government or a State or local government or 

5 a private employer that employs an individual eligi6 ble for wage-loss compensation under section 8105 

7 or 8106 to enable the individual to return to produc8 tive employment. 

9 ‘‘(2) CONTENTS.—An assisted reemployment 

10 agreement under paragraph (1)— 

11 ‘‘(A) may provide that the Secretary will 

12 use amounts in the Employees’ Compensation 

13 Fund to reimburse an employer in an amount 

14 equal to not more than 100 percent of the com15 pensation the individual would otherwise receive 

16 under section 8105 or 8106; and 

17 ‘‘(B) may not be for a period of more than 

18 3 years. 

19 ‘‘(e) LIST.—To facilitate the hiring of individuals eli20 gible for wage-loss compensation under section 8105 or 

21 8106, the Secretary shall provide a list of such individuals 

22 to the Office of Personnel Management, which the Office 

23 of Personnel Management shall provide to all agencies and 

24 instrumentalities of the Federal Government.’’. 
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1 (b) EMPLOYEES’ COMPENSATION FUND.—Section 

2 8147 is amended by adding at the end: 

3 ‘‘(d) Notwithstanding subsection (b), any benefits or 

4 other payments paid to or on behalf of an employee under 

5 this subchapter or any extension or application thereof for 

6 a recurrence of injury, consequential injury, aggravation 

7 of injury, or increase in percentage of impairment to a 

8 member for which compensation is provided under the 

9 schedule under section 8107 suffered in a permanent posi10 tion with an agency or instrumentality of the United 

11 States while the employment with the agency or instru12 mentality is covered under an assisted reemployment 

13 agreement entered into under section 8104(d) shall not 

14 be included in total cost of benefits and other payments 

15 in the statement provided to the agency or instrumentality 

16 under subsection (b) if the injury was originally incurred 

17 in a position not covered by an assisted reemployment 

18 agreement.’’. 

19 (c) TERMINATION OF VOCATIONAL REHABILITATION

20 REQUIREMENT AFTER RETIREMENT AGE.—Section 

21 8113(b) is amended by adding at the end the following: 

22 ‘‘An individual who has attained retirement age may not 

23 be required to undergo vocational rehabilitation.’’. 
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1 (d) MANDATORY BENEFIT REDUCTION FOR NON2 COMPLIANCE.—Section 8113(b) is amended by striking 

3 ‘‘may reduce’’ and inserting ‘‘shall reduce’’. 

4 (e) TECHNICAL AND CONFORMING AMENDMENTS.— 

5 (1) IN GENERAL.—Subchapter III of chapter 

6 15 of title 31, United States Code, is amended by 

7 adding at the end the following: 

8 ‘‘§ 1538. Authorization for assisted reemployment 

9 ‘‘Funds may be transferred from the Employees’ 

10 Compensation Fund established under section 8147 of 

11 title 5 to the applicable appropriations account for an 

12 agency or instrumentality of any branch of the Federal 

13 Government for the purposes of reimbursing the agency 

14 or instrumentality in accordance with an assisted reem15 ployment agreement entered into under section 8104 of 

16 title 5.’’. 

17 (2) TABLE OF SECTIONS.—The table of sections 

18 for chapter 15 of title 31, United States Code, is 

19 amended by inserting after the item relating to sec20 tion 1537 the following: 

‘‘1538. Authorization for assisted reemployment.’’. 

21 SEC. 306. REPORTING REQUIREMENTS. 

22 (a) IN GENERAL.—Chapter 81 is amended by insert23 ing after section 8106 the following: 
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1 ‘‘§ 8106a. Reporting requirements 

2 ‘‘(a) DEFINITION.—In this section, the term ‘em3 ployee receiving compensation’ means an employee who— 

4 ‘‘(1) is paid compensation under section 8105 

5 or 8106; and 

6 ‘‘(2) has not attained retirement age. 

7 ‘‘(b) AUTHORITY.—The Secretary of Labor shall re8 quire an employee receiving compensation to report the 

9 earnings of the employee receiving compensation from em10 ployment or self-employment, by affidavit or otherwise, in 

11 the manner and at the times the Secretary specifies. 

12 ‘‘(c) CONTENTS.—An employee receiving compensa13 tion shall include in a report required under subsection 

14 (a) the value of housing, board, lodging, and other advan15 tages which are part of the earnings of the employee re16 ceiving compensation in employment or self-employment 

17 and the value of which can be estimated. 

18 ‘‘(d) FAILURE TO REPORT AND FALSE REPORTS.— 

19 ‘‘(1) IN GENERAL.—An employee receiving com20 pensation who fails to make an affidavit or other re21 port required under subsection (b) or who knowingly 

22 omits or understates any part of the earnings of the 

23 employee in such an affidavit or other report shall 

24 forfeit the right to compensation with respect to any 

25 period for which the report was required. 
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1 ‘‘(2) FORFEITED COMPENSATION.—Compensa2 tion forfeited under this subsection, if already paid 

3 to the employee receiving compensation, shall be re4 covered by a deduction from the compensation pay5 able to the employee or otherwise recovered under 

6 section 8129, unless recovery is waived under that 

7 section.’’. 

8 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

9 The table of sections for chapter 81 is amended by insert10 ing after the item relating to section 8106 the following: 

‘‘8106a. Reporting requirements.’’. 

11 SEC. 307. DISABILITY MANAGEMENT REVIEW; INDE12 PENDENT MEDICAL EXAMINATIONS. 

13 Section 8123 is amended by adding at the end the 

14 following: 

15 ‘‘(e) DISABILITY MANAGEMENT REVIEW.— 

16 ‘‘(1) DEFINITIONS.—In this subsection— 

17 ‘‘(A) the term ‘covered employee’ means an 

18 employee who is in continuous receipt of com19 pensation for total disability under section 8105 

20 for a period of not less than 6 months; and 

21 ‘‘(B) the term ‘disability management re22 view process’ means the disability management 

23 review process established under paragraph 

24 (2)(A). 
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1 ‘‘(2) ESTABLISHMENT.—The Secretary of 

2 Labor shall— 

3 ‘‘(A) establish a disability management re4 view process for the purpose of certifying and 

5 monitoring the disability status and extent of 

6 injury of each covered employee; and 

7 ‘‘(B) promulgate regulations for the ad8 ministration of the disability management re9 view process. 

10 ‘‘(3) PHYSICAL EXAMINATIONS REQUIRED.— 

11 Under the disability management review process, the 

12 Secretary of Labor shall periodically require covered 

13 employees to submit to physical examinations under 

14 subsection (a) by physicians selected by the Sec15 retary. A physician conducting a physical examina16 tion of a covered employee shall submit to the Sec17 retary a report regarding the nature and extent of 

18 the injury to and disability of the covered employee. 

19 ‘‘(4) FREQUENCY.— 

20 ‘‘(A) IN GENERAL.—The regulations pro21 mulgated under paragraph (2)(B) shall specify 

22 the process and criteria for determining when 

23 and how frequently a physical examination 

24 should be conducted for a covered employee. 

25 ‘‘(B) MINIMUM FREQUENCY.— 
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1 ‘‘(i) INITIAL.—An initial physical ex2 amination shall be conducted not more 

3 than a brief period after the date on which 

4 a covered employee has been in continuous 

5 receipt of compensation for total disability 

6 under section 8015 for 6 months. 

7 ‘‘(ii) SUBSEQUENT EXAMINATIONS.— 

8 After the initial physical examination, 

9 physical examinations of a covered em10 ployee shall be conducted not less than 

11 once every 3 years. 

12 ‘‘(5) EMPLOYING AGENCY OR INSTRUMEN13 TALITY REQUESTS.— 

14 ‘‘(A) IN GENERAL.—The agency or instru15 mentality employing an employee who has made 

16 a claim for compensation for total disability 

17 under section 8105 may at any time submit a 

18 request for the Secretary of Labor to promptly 

19 require the employee to submit to a physical ex20 amination under this subsection. 

21 ‘‘(B) REQUESTING OFFICER.—A request 

22 under subparagraph (A) shall be made on be23 half of an agency or instrumentality by— 

24 ‘‘(i) the head of the agency or instru25 mentality; 
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1 ‘‘(ii) the Chief Human Capital Officer 

2 of the agency or instrumentality; or 

3 ‘‘(iii) if the agency or instrumentality 

4 does not have a Chief Human Capital Offi5 cer, an officer with responsibilities similar 

6 to those of a Chief Human Capital Officer 

7 designated by the head of the agency or in8 strumentality to make requests under this 

9 paragraph. 

10 ‘‘(C) INFORMATION.—A request under sub11 paragraph (A) shall be in writing and accom12 panied by— 

13 ‘‘(i) a certification by the officer mak14 ing the request that the officer has re15 viewed the relevant material in the employ16 ee’s file; 

17 ‘‘(ii) an explanation of why the officer 

18 has determined, based on the materials in 

19 the file and other information known to 

20 the officer, that requiring a physical exam21 ination of the employee under this sub22 section is necessary; and 

23 ‘‘(iii) copies of the materials relating 

24 to the employee that are relevant to the of25 ficer’s determination and request, unless 
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1 the agency or instrumentality has a rea2 sonable basis for not providing the mate3 rials. 

4 ‘‘(D) EXAMINATION.—If the Secretary of 

5 Labor receives a request under this paragraph 

6 before an employee has undergone an initial 

7 physical examination under paragraph 

8 (4)(B)(i), the Secretary shall promptly require 

9 the physical examination of the employee. A 

10 physical examination under this subparagraph 

11 shall satisfy the requirement under paragraph 

12 (4)(B)(i) that an initial physical examination be 

13 conducted. 

14 ‘‘(E) AFTER INITIAL EXAMINATION.— 

15 ‘‘(i) IN GENERAL.—If the Secretary of 

16 Labor receives a request under this para17 graph after an employee has undergone an 

18 initial physical examination under para19 graph (4)(B)(i), the Secretary shall— 

20 ‘‘(I) review the request and the 

21 information, explanation, and other 

22 materials submitted with the request; 

23 and 

24 ‘‘(II) determine whether to re25 quire the physical examination of the 
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1 employee who is the subject of the re2 quest. 

3 ‘‘(ii) NOT GRANTED.—If the Secretary 

4 determines not to grant a request de5 scribed in clause (i), the Secretary shall 

6 promptly notify the officer who made the 

7 request and provide an explanation of the 

8 reasons why the request was denied.’’. 

9 SEC. 308. WAITING PERIOD. 

10 (a) IN GENERAL.—Section 8117 is amended— 

11 (1) in the section heading, by striking ‘‘Time 

12 of accrual of right’’ and inserting ‘‘Waiting 

13 period’’; 

14 (2) in subsection (a)— 

15 (A) in the matter preceding paragraph (1), 

16 by striking ‘‘An employee’’ and all that follows 

17 through ‘‘is not entitled’’ and inserting ‘‘IN

18 GENERAL.—An employee is not entitled to con19 tinuation of pay within the meaning of section 

20 8118 for the first 3 days of temporary disability 

21 or, if section 8118 does not apply, is not enti22 tled’’; 

23 (B) in paragraph (1), by adding ‘‘or’’ at 

24 the end; 

25 (C) by striking paragraph (2); and 
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1 (D) by redesignating paragraph (3) as 

2 paragraph (2); and 

3 (3) in subsection (b)— 

4 (A) by striking ‘‘A Postal Service’’ the first 

5 place it appears and all that follows through ‘‘A 

6 Postal Service’’ the second place it appears and 

7 inserting ‘‘USE OF LEAVE.—An’’; 

8 (B) by striking ‘‘that 3-day period’’ and in9 serting ‘‘the first 3 days of temporary dis10 ability’’; and 

11 (C) by striking ‘‘or is followed by perma12 nent disability’’. 

13 (b) CONTINUATION OF PAY.—Section 8118 is amend14 ed— 

15 (1) in the section heading, by striking ‘‘; elec16 tion to use annual or sick leave’’; 

17 (2) in subsection (b)(1), by striking ‘‘section 

18 8117(b)’’ and inserting ‘‘section 8117’’; 

19 (3) by striking subsection (c); and 

20 (4) by redesignating subsections (d) as sub21 section (c). 

22 (c) TECHNICAL AND CONFORMING AMENDMENTS.— 

23 The table of sections for chapter 81 is amended by strik24 ing the items relating to sections 8117 and 8118 and in25 serting the following: 
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‘‘8117. Waiting period. 

‘‘8118. Continuation of pay.’’. 

1 SEC. 309. ELECTION OF BENEFITS. 

2 (a) IN GENERAL.—Section 8116 is amended by add3 ing at the end the following: 

4 ‘‘(e) RETIREMENT BENEFITS.— 

5 ‘‘(1) IN GENERAL.—An individual entitled to 

6 compensation benefits payable under this subchapter 

7 and under chapter 83 or 84 or any other retirement 

8 system for employees of the Government, for the 

9 same period, shall elect which benefits the individual 

10 will receive. 

11 ‘‘(2) ELECTION.— 

12 ‘‘(A) DEADLINE.—An individual shall 

13 make an election under paragraph (1) in ac14 cordance with such deadlines as the Secretary 

15 of Labor shall establish, which shall be a rea16 sonable period after the individual has received 

17 notice of a final determination that the indi18 vidual is entitled to compensation benefits pay19 able under this subchapter. 

20 ‘‘(B) REVOCABILITY.—An election under 

21 paragraph (1) shall be revocable, notwith22 standing any other provision of law, except for 

23 any period during which an individual— 
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1 ‘‘(i) was qualified for benefits payable 

2 under both this subchapter and under a re3 tirement system described in paragraph 

4 (1); and 

5 ‘‘(ii) was paid benefits under the re6 tirement system after having been notified 

7 of eligibility for benefits under this sub8 chapter. 

9 ‘‘(3) INFORMED CHOICE.—The Secretary of 

10 Labor shall provide information, and shall ensure 

11 that information is provided, to an individual de12 scribed in paragraph (1) about the benefits available 

13 to the individual under this subchapter or under 

14 chapter 83 or 84 or any other retirement system re15 ferred to in paragraph (1) the individual may elect 

16 to receive.’’. 

17 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

18 Sections 8337(f)(3) and 8464a(a)(3) are each amended by 

19 striking ‘‘Paragraphs’’ and inserting ‘‘Except as provided 

20 under chapter 81, paragraphs’’. 

21 SEC. 310. SANCTION FOR NONCOOPERATION WITH FIELD 

22 NURSES. 

23 Section 8123, as amended by section 307, is amended 

24 by adding at the end the following: 

25 ‘‘(f) FIELD NURSES.— 
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1 ‘‘(1) DEFINITION.—In this subsection, the term 

2 ‘field nurse’ means a registered nurse that assists 

3 the Secretary in the medical management of dis4 ability claims under this subchapter and provides 

5 claimants with assistance in coordinating medical 

6 care. 

7 ‘‘(2) AUTHORIZATION.—The Secretary may use 

8 field nurses to coordinate medical services and voca9 tional rehabilitation programs for injured employees 

10 under this subchapter. If an employee refuses to co11 operate with a field nurse or obstructs a field nurse 

12 in the performance of duties under this subchapter, 

13 the right to compensation under this subchapter 

14 shall be suspended until the refusal or obstruction 

15 stops.’’. 

16 SEC. 311. SUBROGATION OF CONTINUATION OF PAY. 

17 (a) IN GENERAL.—Section 8131 is amended— 

18 (1) in subsection (a), in the matter preceding 

19 paragraph (1), by inserting ‘‘continuation of pay or’’ 

20 before ‘‘compensation’’; 

21 (2) in subsection (b), by inserting ‘‘continuation 

22 of pay or’’ before ‘‘compensation’’; and 

23 (3) in subsection (c)— 

24 (A) by inserting ‘‘continuation of pay or’’ 

25 before ‘‘compensation already paid’’; and 
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1 (B) by inserting ‘‘continuation of pay or’’ 

2 before ‘‘compensation payable’’. 

3 (b) ADJUSTMENT AFTER RECOVERY FROM A THIRD

4 PERSON.—Section 8132 is amended— 

5 (1) in the first sentence— 

6 (A) by inserting ‘‘continuation of pay or’’ 

7 before ‘‘compensation is payable’’; 

8 (B) by inserting ‘‘continuation of pay or’’ 

9 before ‘‘compensation from the United States’’; 

10 (C) by striking ‘‘by him or in his behalf’’ 

11 and inserting ‘‘by the beneficiary or on behalf 

12 of the beneficiary’’; 

13 (D) by inserting ‘‘continuation of pay and’’ 

14 before ‘‘compensation paid by the United 

15 States’’; and 

16 (E) by striking ‘‘compensation payable to 

17 him’’ and inserting ‘‘continuation of pay or 

18 compensation payable to the beneficiary’’; 

19 (2) in the second sentence, by striking ‘‘his des20 ignee’’ and inserting ‘‘the designee of the bene21 ficiary’’; and 

22 (3) in the fourth sentence, by striking ‘‘If com23 pensation’’ and all that follows through ‘‘payable to 

24 him by the United States’’ and inserting ‘‘If con25 tinuation of pay or compensation has not been paid 
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1 to the beneficiary, the money or property shall be 

2 credited against continuation of pay or compensation 

3 payable to the beneficiary by the United States’’. 

4 (c) EFFECTIVE DATE.—This section and the amend5 ments made by this section shall take effect on the date 

6 of enactment of this Act. 

7 SEC. 312. INTEGRITY AND COMPLIANCE. 

8 (a) IN GENERAL.—Subchapter I of chapter 81 is 

9 amended by adding at the end the following: 

10 ‘‘§ 8153. Integrity and Compliance Program 

11 ‘‘(a) DEFINITIONS.—In this section— 

12 ‘‘(1) the term ‘FECA program’ means the Fed13 eral Employees Compensation Program administered 

14 under this subchapter; 

15 ‘‘(2) the term ‘improper payment’ has the 

16 meaning given that term in section 2(f) of the Im17 proper Payments Information Act of 2002 (31 

18 U.S.C. 3321 note); 

19 ‘‘(3) the term ‘Inspector General’— 

20 ‘‘(A) means an Inspector General described 

21 in subparagraph (A), (B), or (I) of section 

22 11(b)(1) of the Inspector General Act of 1978 

23 (5 U.S.C. App.); and 
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1 ‘‘(B) does not include the Inspector Gen2 eral of an entity having no employees covered 

3 under the FECA program. 

4 ‘‘(4) the term ‘Integrity and Compliance Pro5 gram’ means the Integrity and Compliance Program 

6 established under subsection (b); 

7 ‘‘(5) the term ‘provider’ means a provider of 

8 medical or other services under the FECA program; 

9 ‘‘(6) the term ‘Secretary’ means the Secretary 

10 of Labor; and 

11 ‘‘(7) the term ‘Task Force’ means the FECA 

12 Integrity and Compliance Task Force established 

13 under subsection (c)(2)(A). 

14 ‘‘(b) INTEGRITY AND COMPLIANCE PROGRAM.—Not 

15 later than 270 days after the date of enactment of this 

16 section, the Secretary shall establish an Integrity and 

17 Compliance Program for the purpose of preventing, identi18 fying, and recovering fraudulent and other improper pay19 ments for the FECA program, which shall include— 

20 ‘‘(1) procedures for identifying potentially im21 proper payments before payment is made to claim22 ants and providers, including, where appropriate, 

23 predictive analytics; 
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1 ‘‘(2) reviews after payment is made to identify 

2 potentially improper payments to claimants and pro3 viders; 

4 ‘‘(3) on-going screening and verification proce5 dures to ensure the continued eligibility of medical 

6 providers to provide services under the FECA pro7 gram, including licensure, Federal disbarment, and 

8 the existence of relevant criminal convictions; 

9 ‘‘(4) provision of appropriate information, edu10 cation, and training to claimants and providers on 

11 requirements to ensure the integrity of the FECA 

12 program, including payments under the FECA pro13 gram; 

14 ‘‘(5) appropriate controls and audits to ensure 

15 that providers adopt internal controls and proce16 dures for compliance with requirements under the 

17 FECA program; 

18 ‘‘(6) procedures to ensure— 

19 ‘‘(A) initial and continuing eligibility of 

20 claimants for compensation, benefits, or services 

21 under the FECA program; and 

22 ‘‘(B) ongoing verification of information in 

23 databases relating to claimants to ensure accu24 racy and completeness; and 
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1 ‘‘(7) sharing and accessing data and informa2 tion with other agencies and instrumentalities of the 

3 United States, including the United States Postal 

4 Service. 

5 ‘‘(c) INTERAGENCY COOPERATION ON ANTI-FRAUD

6 EFFORTS.— 

7 ‘‘(1) IN GENERAL.—In administering the 

8 FECA program, including the Integrity and Compli9 ance Program, the Secretary shall cooperate with 

10 other agencies and instrumentalities of the United 

11 States (including the United States Postal Service) 

12 and the Inspectors General of such agencies and in13 strumentalities to prevent, identify, and recover 

14 fraudulent and other improper payments under the 

15 FECA program. 

16 ‘‘(2) TASK FORCE.— 

17 ‘‘(A) IN GENERAL.—There is established a 

18 task force, which shall be known as the FECA 

19 Integrity and Compliance Task Force. 

20 ‘‘(B) MEMBERSHIP.—The members of the 

21 Task Force shall be— 

22 ‘‘(i) the Secretary, who shall serve as 

23 the Chairperson of the Task Force; 
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1 ‘‘(ii) the Postmaster General, who 

2 shall serve as the Vice Chairperson of the 

3 Task Force; 

4 ‘‘(iii) the Attorney General; 

5 ‘‘(iv) the Director of the Office of 

6 Management and Budget; and 

7 ‘‘(v) other appropriate Federal offi8 cials, as determined by the Chairperson 

9 and Vice Chairperson of the Task Force. 

10 ‘‘(C) ADVISORY MEMBERS.—The following 

11 officials shall attend meetings of the Task 

12 Force and participate as ad hoc, advisory mem13 bers, to provide technical assistance and guid14 ance to the Task Force with respect to the du15 ties of the Task Force: 

16 ‘‘(i) The Inspector General of the De17 partment of Labor. 

18 ‘‘(ii) The Inspector General of the 

19 United States Postal Service. 

20 ‘‘(iii) The Inspectors General of other 

21 appropriate agencies and instrumentalities 

22 of the United States that employ a signifi23 cant number of individuals receiving com24 pensation, benefits, or services under the 
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1 FECA program, as determined by the 

2 Chairperson of the Task Force. 

3 ‘‘(D) DUTIES.—The Task Force shall— 

4 ‘‘(i) set forth, in writing, a description 

5 of the respective roles and responsibilities 

6 in preventing, identifying, recovering, and 

7 prosecuting fraud under, and otherwise en8 suring integrity and compliance of, the 

9 FECA program of— 

10 ‘‘(I) the Secretary (including sub11 ordinate officials such as the Director 

12 of the Office of Workers’ Compensa13 tion Programs); 

14 ‘‘(II) the Inspector General of 

15 the Department of Labor; 

16 ‘‘(III) the Inspectors General of 

17 agencies and instrumentalities of the 

18 United States that employ claimants 

19 under the FECA program; 

20 ‘‘(IV) the Attorney General; and 

21 ‘‘(V) any other relevant officials; 

22 ‘‘(ii) develop procedures for sharing 

23 information of possible fraud under the 

24 FECA program or other intentional 

25 misstatements by claimants or providers 
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1 under the FECA program, including proce2 dures addressing— 

3 ‘‘(I) notification of appropriate 

4 officials of the Department of Labor 

5 of potential fraud or other intentional 

6 misstatements, including provision of 

7 supporting information; 

8 ‘‘(II) timely and appropriate re9 sponse by officials of the Department 

10 of Labor to notifications described in 

11 subclause (I); 

12 ‘‘(III) the inclusion of informa13 tion and evidence relating to fraud 

14 and other intentional misstatements 

15 in criminal, civil, and administrative 

16 proceedings relating to the provision 

17 of compensation, benefits, or medical 

18 services (including payments to pro19 viders) under the FECA program; 

20 ‘‘(IV) the coordination of crimi21 nal investigations with the administra22 tion of the FECA program; and 

23 ‘‘(V) the protection of informa24 tion relating to an investigation of 

25 possible fraud under the FECA pro-
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1 gram from potential disclosure, in2 cluding requirements that enable in3 vestigative files to be appropriately 

4 separated from case management 

5 files; 

6 ‘‘(iii) not later than 1 year after the 

7 date of enactment of this section, submit 

8 to the Committee on Homeland Security 

9 and Governmental Affairs of the Senate 

10 and the Committee on Oversight and Gov11 ernment Reform and the Committee on 

12 Education and the Workforce of the House 

13 of Representatives a report that includes 

14 the description and procedures required 

15 under clauses (i) and (ii). 

16 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

17 this subsection shall be construed to limit or restrict 

18 any authority of an Inspector General. 

19 ‘‘(d) IMPROVEMENTS TO ACCESS OF FEDERAL DATA20 BASES.— 

21 ‘‘(1) IN GENERAL.—In order to improve compli22 ance with the requirements under and the integrity 

23 of the FECA program, or as required to otherwise 

24 detect and prevent improper payments under the 

25 FECA program (including for purposes of computer 
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1 matching under subsection (e)(1)(D)), upon written 

2 request— 

3 ‘‘(A) the Commissioner of Social Security 

4 shall make available to the Secretary, the Post5 master General, and each Inspector General the 

6 Social Security earnings information of a living 

7 or deceased employee; 

8 ‘‘(B) the Director of the Office of Per9 sonnel Management shall make available to the 

10 Secretary, the Postmaster General, and each 

11 Inspector General the information in the data12 bases of Federal employees and retirees main13 tained by the Director; and 

14 ‘‘(C) the Secretary of Veterans Affairs 

15 shall make available to the Secretary, the Post16 master General, and each Inspector General the 

17 information in the database of disabled individ18 uals maintained by the Secretary of Veterans 

19 Affairs. 

20 ‘‘(2) NATIONAL DIRECTORY OF NEW HIRES.— 

21 Upon written request, the Secretary of Health and 

22 Human Services shall make available to the Sec23 retary, the Postmaster General, each Inspector Gen24 eral, and the Comptroller General of the United 

25 States the information in the National Directory of 
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1 New Hires for purposes of carrying out this sub2 chapter, in order to improve compliance with the re3 quirements under and the integrity of the FECA 

4 program, or as required to otherwise detect and pre5 vent improper payments under the FECA program 

6 (including for purposes of computer matching under 

7 subsection (e)(1)(D)). The Comptroller General may 

8 obtain information from the National Directory of 

9 New Hires for purposes of any audit, evaluation, or 

10 investigation, including any audit, evaluation, or in11 vestigation relating to program integrity. 

12 ‘‘(3) PROCEDURES.—The Secretary shall estab13 lish procedures for correlating the identity and sta14 tus of recipients of compensation, benefits, or serv15 ices under this subchapter with Social Security earn16 ings information described in paragraph (1)(A). 

17 ‘‘(4) PROVISION.—Information requested under 

18 this subsection shall be provided— 

19 ‘‘(A) in a timely manner; 

20 ‘‘(B) at a reasonable cost to the Secretary, 

21 the Postmaster General, or an Inspector Gen22 eral; 

23 ‘‘(C) without cost to the Comptroller Gen24 eral of the United States; and 
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1 ‘‘(D) in the manner, frequency, and form 

2 reasonably specified by the officer making the 

3 request, which, upon request, shall include elec4 tronic form. 

5 ‘‘(5) ASSESSMENT OF DATA COST-EFFECTIVE6 NESS.— 

7 ‘‘(A) IN GENERAL.—The Secretary shall 

8 consider and assess procedures for correlating 

9 the identity and status of recipients of com10 pensation, benefits, or services under this sub11 chapter with information relating to employees, 

12 retirees, and individuals described in subpara13 graphs (B) and (C) of paragraph (1) and para14 graph (2). 

15 ‘‘(B) REPORT.—Not later than 1 year 

16 after the date of enactment of this section, the 

17 Secretary shall submit to the Committee on 

18 Homeland Security and Governmental Affairs 

19 of the Senate and the Committee on Oversight 

20 and Government Reform and the Committee on 

21 Education and the Workforce of the House of 

22 Representatives a report on the cost-effective23 ness of the use of the databases described in 

24 subparagraphs (B) and (C) of paragraph (1) 

25 and paragraph (2) for program compliance and 
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1 integrity. The report required under this sub2 paragraph may be included as part of the re3 port required under subsection (f). 

4 ‘‘(6) UNITED STATES POSTAL SERVICE FECA

5 ENROLLEE DATABASE.—Not later than 180 days 

6 after the date of enactment of this section, in order 

7 to track, verify, and communicate with the Secretary 

8 and other relevant entities, the Postmaster General 

9 shall establish an electronic database of information 

10 relating to employees of the United States Postal 

11 Service who have applied for or are receiving com12 pensation, benefits, or services under this sub13 chapter. 

14 ‘‘(7) RULE OF CONSTRUCTION.—Nothing in 

15 this subsection shall be construed to limit the au16 thority of the Comptroller General of the United 

17 States under section 716 of title 31. 

18 ‘‘(e) GENERAL PROTOCOLS AND SECURITY.— 

19 ‘‘(1) ESTABLISHMENT.— 

20 ‘‘(A) IN GENERAL.—In order to ensure 

21 strong information security and privacy stand22 ards, the Task Force shall establish protocols 

23 for the secure transfer and storage of any infor24 mation provided to an individual or entity 

25 under this section. 
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1 ‘‘(B) CONSIDERATIONS.—In establishing 

2 protocols under subparagraph (A), the Task 

3 Force shall consider any recommendations sub4 mitted to the Secretary by the Inspector Gen5 eral of the Department of Health and Human 

6 Services with respect to the secure transfer and 

7 storage of information, and to comply with pri8 vacy laws and best practices. 

9 ‘‘(C) FRAUD CASE PROTECTION.—The 

10 Task Force shall establish protocols and proce11 dures to enable information and materials relat12 ing to an active investigation of possible fraud 

13 relating to the FECA program to be appro14 priately kept separate from the files for employ15 ees relating to the provision of compensation, 

16 benefits, or services under the FECA program. 

17 ‘‘(D) COMPUTER MATCHING BY FEDERAL

18 AGENCIES FOR PURPOSES OF INVESTIGATION

19 AND PREVENTION OF IMPROPER PAYMENTS

20 AND FRAUD.— 

21 ‘‘(i) IN GENERAL.—Except as pro22 vided in this subparagraph, in accordance 

23 with section 552a (commonly known as the 

24 Privacy Act of 1974), the Secretary, the 

25 Postmaster General, each Inspector Gen-
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1 eral, and the head of each agency may 

2 enter into computer matching agreements 

3 that allow ongoing data matching (which 

4 shall include automated data matching) in 

5 order to assist in the detection and preven6 tion of improper payments under the 

7 FECA program. 

8 ‘‘(ii) REVIEW.—Not later than 60 

9 days after a proposal for an agreement 

10 under clause (i) has been presented to a 

11 Data Integrity Board established under 

12 section 552a(u) for consideration, the Data 

13 Integrity Board shall approve or deny the 

14 agreement. 

15 ‘‘(iii) TERMINATION DATE.—An 

16 agreement under clause (i)— 

17 ‘‘(I) shall have a termination 

18 date of less than 3 years; and 

19 ‘‘(II) during the 3-month period 

20 ending on the date on which the 

21 agreement is scheduled to terminate, 

22 may be renewed by the agencies enter23 ing the agreement for not more than 

24 3 years. 
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1 ‘‘(iv) MULTIPLE AGENCIES.—For pur2 poses of this subparagraph, section 

3 552a(o)(1) shall be applied by substituting 

4 ‘between the source agency and the recipi5 ent agency or non-Federal agency or an 

6 agreement governing multiple agencies’ for 

7 ‘between the source agency and the recipi8 ent agency or non-Federal agency’ in the 

9 matter preceding subparagraph (A). 

10 ‘‘(v) COST-BENEFIT ANALYSIS.—An 

11 agreement under clause (i) may be entered 

12 without regard to section 552a(o)(1)(B), 

13 relating to a cost-benefit analysis of the 

14 proposed matching program. 

15 ‘‘(vi) GUIDANCE BY THE OFFICE OF

16 MANAGEMENT AND BUDGET.—Not later 

17 than 6 months after the date of enactment 

18 of the Workers’ Compensation Reform Act 

19 of 2012, and in consultation with the 

20 Council of Inspectors General on Integrity 

21 and Efficiency, the Secretary of Health 

22 and Human Services, the Commissioner of 

23 Social Security, and the head of any other 

24 relevant agency, the Director of the Office 

25 of Management and Budget shall— 
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1 ‘‘(I) issue guidance for agencies 

2 regarding implementing this subpara3 graph, which shall include standards 

4 for reimbursement costs, when nec5 essary, between agencies; and 

6 ‘‘(II) establish standards and de7 velop standard matching agreements 

8 for the purpose of improving the proc9 ess for establishing data use or com10 puter matching agreements. 

11 ‘‘(2) COMPLIANCE.—The Secretary, the Post12 master General, and each Inspector General shall 

13 ensure that any information provided to an indi14 vidual or entity under this section is provided in ac15 cordance with protocols established under paragraph 

16 (1). 

17 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

18 this section shall be construed to affect the rights of 

19 an individual under section 552a(p). 

20 ‘‘(f) REPORT.—Not later than 1 year after the date 

21 of enactment of this section, and annually thereafter for 

22 5 years, the Secretary shall submit a report on the activi23 ties of the Secretary under this section, including imple24 mentation of the Integrity and Compliance Program, to— 
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1 ‘‘(1) the Committee on Homeland Security and 

2 Governmental Affairs of the Senate; and 

3 ‘‘(2) the Committee on Oversight and Govern4 ment Reform and the Committee on Education and 

5 the Workforce of the House of Representatives. 

6 ‘‘(g) GAO REVIEW.—The Comptroller General of the 

7 United States shall— 

8 ‘‘(1) conduct periodic reviews of the Integrity 

9 and Compliance Program; and 

10 ‘‘(2) submit reports on the results of the re11 views under paragraph (1) to the Committee on 

12 Homeland Security and Governmental Affairs of the 

13 Senate and the Committee on Oversight and Govern14 ment Reform and the Committee on Education and 

15 the Workforce of the House of Representatives not 

16 later than— 

17 ‘‘(A) 2 years after the date of enactment 

18 of this section; and 

19 ‘‘(B) 3 years after submission of the report 

20 under subparagraph (A).’’. 

21 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

22 The table of sections for chapter 81 is amended by insert23 ing after the item relating to section 8152 the following: 

‘‘8153. Integrity and Compliance Program.’’. 
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1 (c) EFFECTIVE DATE.—This section and the amend2 ments made by this section shall take effect on the date 

3 of enactment of this Act. 

4 SEC. 313. AMOUNT OF COMPENSATION. 

5 (a) INJURIES TO FACE, HEAD, AND NECK.—Section 

6 8107(c)(21) is amended— 

7 (1) by striking ‘‘not to exceed $3,500’’ and in8 serting ‘‘in proportion to the severity of the dis9 figurement, not to exceed $50,000,’’; and 

10 (2) by adding at the end the following: ‘‘The 

11 maximum amount of compensation under this para12 graph shall be increased on March 1 of each year by 

13 the amount determined by the Secretary of Labor to 

14 represent the percent change in the price index pub15 lished for December of the preceding year over the 

16 price index published for the December of the year 

17 prior to the preceding year, adjusted to the nearest 

18 one-tenth of 1 percent.’’. 

19 (b) FUNERAL EXPENSES.—Section 8134(a) is 

20 amended— 

21 (1) by striking ‘‘$800’’ and inserting ‘‘$6,000’’; 

22 and 

23 (2) by adding at the end the following: ‘‘The 

24 maximum amount of compensation under this sub25 section shall be increased on March 1 of each year 
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1 by the amount determined by the Secretary of Labor 

2 to represent the percent change in the price index 

3 published for December of the preceding year over 

4 the price index published for the December of the 

5 year prior to the preceding year, adjusted to the 

6 nearest one-tenth of 1 percent.’’. 

7 (c) APPLICATION.—The amendments made by this 

8 section shall apply to injuries or deaths, respectively, oc9 curring on or after the date of enactment of this Act. 

10 SEC. 314. TERRORISM INJURIES; ZONES OF ARMED CON11 FLICT. 

12 (a) COVERING TERRORISM INJURIES.—Section 

13 8102(b) of title 5, United States Code, is amended in the 

14 matter preceding paragraph (1)— 

15 (1) by inserting ‘‘or from an attack by a ter16 rorist or terrorist organization, either known or un17 known,’’ after ‘‘force or individual,’’; and 

18 (2) by striking ‘‘outside’’ and all that follows 

19 through ‘‘1979)’’ and inserting ‘‘outside of the 

20 United States’’. 

21 (b) CONTINUATION OF PAY IN A ZONE OF ARMED

22 CONFLICT.—Section 8118 of title 5, United States Code, 

23 as amended by section 308(b) of this Act, is amended— 
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1 (1) in subsection (b), by striking ‘‘Continu2 ation’’ and inserting ‘‘Except as provided under sub3 section (d)(2), continuation’’; 

4 (2) in subsection (c), as redesignated by section 

5 308(b)(4) of this Act, by striking ‘‘subsection (a)’’ 

6 and inserting ‘‘subsection (a) or (d)’’; 

7 (3) by redesignating subsection (d), as redesig8 nated by section 308(b)(4) of this Act, as subsection 

9 (e); and 

10 (4) inserting after subsection (c) the following: 

11 ‘‘(d) CONTINUATION OF PAY IN A ZONE OF ARMED

12 CONFLICT.— 

13 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

14 (a), the United States shall authorize the continu15 ation of pay of an employee described in subpara16 graph (A), (C), (D), or (F) of section 8101(1), 

17 who— 

18 ‘‘(A) files a claim for a period of wage loss 

19 due to an injury in performance of duty in a 

20 zone of armed conflict (as determined by the 

21 Secretary of Labor under paragraph (3)); and 

22 ‘‘(B) files the claim for such wage loss ben23 efit with the immediate superior of the em24 ployee not later than 45 days after the later 

25 of— 
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1 ‘‘(i) the termination of the assignment 

2 of the employee to the zone of armed con3 flict; or 

4 ‘‘(ii) the return of the employee to the 

5 United States. 

6 ‘‘(2) CONTINUATION OF PAY.—Notwithstanding 

7 subsection (b), continuation of pay under this sub8 section shall be furnished for a period not to exceed 

9 135 days without any break in time or waiting pe10 riod, unless controverted under regulations pre11 scribed by the Secretary of Labor. 

12 ‘‘(3) DETERMINATION OF ZONES OF ARMED

13 CONFLICT.—For purposes of this subsection, the 

14 Secretary of Labor, in consultation with the Sec15 retary of State and the Secretary of Defense, shall 

16 determine whether a foreign country or other foreign 

17 geographic area outside of the United States (as de18 fined in section 202(a)(7) of the State Department 

19 Basic Authorities Act of 1956 (22 U.S.C. 

20 4302(a)(7)) is a zone of armed conflict based on 

21 whether— 

22 ‘‘(A) the Armed Forces of the United 

23 States are involved in hostilities in the country 

24 or area; 
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1 ‘‘(B) the incidence of civil insurrection, 

2 civil war, terrorism, or wartime conditions 

3 threatens physical harm or imminent danger to 

4 the health or well-being of United States civil5 ian employees in the country or area; 

6 ‘‘(C) the country or area has been des7 ignated a combat zone by the President under 

8 section 112(c) of the Internal Revenue Code of 

9 1986; 

10 ‘‘(D) a contingency operation involving 

11 combat operations directly affects civilian em12 ployees in the country or area; or 

13 ‘‘(E) there exist other relevant conditions 

14 and factors.’’. 

15 SEC. 315. TECHNICAL AND CONFORMING AMENDMENTS. 

16 Chapter 81 is amended— 

17 (1) in section 8101(1)(D), by inserting ‘‘for an 

18 injury that occurred before the effective date of sec19 tion 204(e) of the District of Columbia Self-Govern20 ment and Governmental Reorganization Act (Public 

21 Law 93–198; 87 Stat. 783; 5 U.S.C. 8101 note)’’ 

22 before the semicolon; 

23 (2) in section 8139, by inserting ‘‘under this 

24 subchapter’’ after ‘‘Compensation awarded’’; and 
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1 (3) in section 8148(a), by striking ‘‘section 

2 8106’’ and inserting ‘‘section 8106a’’. 

3 SEC. 316. REGULATIONS. 

4 (a) IN GENERAL.—As soon as possible after the date 

5 of enactment of this Act, the Secretary of Labor shall pro6 mulgate regulations (which may include interim final reg7 ulations) to carry out this title. 

8 (b) CONTENTS.—The regulations promulgated under 

9 subsection (a) shall include, for purposes of the amend10 ments made by sections 302 and 303, clarification of— 

11 (1) what is a claim; and 

12 (2) what is the date on which a period of dis13 ability, for which a claim is made, commences. 

14 SEC. 317. EFFECTIVE DATE. 

15 Except as otherwise provided in this title, this title 

16 and the amendments made by this title shall take effect 

17 60 days after the date of enactment of this Act. 

18 TITLE IV—OTHER MATTERS 

19 SEC. 401. SOLVENCY PLAN. 

20 (a) PLAN REQUIRED.—Not later than 90 days after 

21 the date of enactment of this Act, the Postal Service shall 

22 submit to the Committee on Homeland Security and Gov23 ernmental Affairs of the Senate, the Committee on Over24 sight and Government Reform of the House of Represent25 atives, the Comptroller General of the United States, and 
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1 the Commission a plan describing, in detail, the actions 

2 the Postal Service will take to achieve long-term solvency 

3 (as defined in section 208(e) of this Act). 

4 (b) CONSIDERATIONS.—The plan required under sub5 section (a) shall take into consideration— 

6 (1) the legal authority of the Postal Service; 

7 (2) the changes in the legal authority and re8 sponsibilities of the Postal Service under this Act; 

9 (3) any cost savings that the Postal Service an10 ticipates will be achieved through negotiations with 

11 employees of the Postal Service; 

12 (4) projected changes in mail volume; 

13 (5) the impact of— 

14 (A) regulations the Postmaster General 

15 was required by Congress to promulgate; and 

16 (B) congressional action required to facili17 tate the profitability of the Postal Service; 

18 (6) projected changes in the number of employ19 ees needed to carry out the responsibilities of the 

20 Postal Service; and 

21 (7) the long-term capital needs of the Postal 

22 Service, including the need to maintain, repair, and 

23 replace facilities and equipment. 
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1 (c) UPDATES.—The Postal Service shall update the 

2 plan required under subsection (a) not less frequently than 

3 quarterly, until the last quarter of fiscal year 2015. 

4 SEC. 402. POSTAL RATES. 

5 (a) COMMISSION STUDY.— 

6 (1) IN GENERAL.—Not earlier than 3 years 

7 after the date of enactment of this Act, the Commis8 sion shall commence a study to determine— 

9 (A) whether and to what extent any mar10 ket-dominant classes, products, or types of mail 

11 services do not bear the direct and indirect 

12 costs attributable to those classes, products, or 

13 types of mail services; and 

14 (B) the impact of any excess mail proc15 essing, transportation, or delivery capacity of 

16 the Postal Service on the direct and indirect 

17 costs attributable to any class, product, or type 

18 of mail service that bears less than 100 percent 

19 of the costs attributable to the class, product, 

20 or type of mail service, as determined under 

21 subparagraph (A). 

22 (2) REQUIREMENTS.—The Commission shall 

23 conduct the study under paragraph (1) in a manner 

24 that protects confidential and proprietary business 

25 information. 
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1 (3) HEARING.—Before completing the study 

2 under paragraph (1), the Commission shall hold a 

3 public hearing, on the record, in order to better in4 form the conclusions of the study. The Postal Serv5 ice, postal customers, and other interested persons 

6 may participate in the hearing under this paragraph. 

7 (4) COMPLETION.—Not later than 6 months 

8 after the date on which the Commission commences 

9 the study under subsection (a), the Commission shall 

10 complete the study. 

11 (b) ANNUAL UPDATES REQUIRED.—Not later than 

12 1 year after the date of completion of the study under 

13 subsection (a), and annually thereafter, the Commission 

14 shall— 

15 (1) determine whether any class of mail bears 

16 less than 100 percent of the direct and indirect costs 

17 attributable to the class, product, or type of mail 

18 service, in the same manner as under subsection 

19 (a)(1)(A); 

20 (2) for any class of mail for which the Commis21 sion makes a determination under paragraph (1), 

22 update the study under subsection (a); and 

23 (3) include the study updated under paragraph 

24 (2) in the annual written determination of the Com-
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1 mission under section 3653 of title 39, United 

2 States Code. 

3 (c) POSTAL RATES.— 

4 (1) DEFINITION.—In this subsection, the term 

5 ‘‘loss-making’’, as used with respect to a class of 

6 mail, means a class of mail that bears less than 100 

7 percent of the costs attributable to the class of mail, 

8 according to the most recent annual determination 

9 of the Commission under subsection (a)(1) or (b)(1), 

10 adjusted to account for the quantitative effect of ex11 cess mail processing, transportation, or delivery ca12 pacity of the Postal Service on the costs attributable 

13 to the class of mail. 

14 (2) IN GENERAL.—Not later than 1 year after 

15 the date on which the study under subsection (a) is 

16 completed, and annually thereafter, the Postal Serv17 ice shall establish postal rates for each loss-making 

18 class of mail. 

19 (3) CONSIDERATIONS.—The Postal Service may 

20 establish postal rates under paragraph (2) in a man21 ner that ensures, to the extent practicable, that a 

22 class of mail described in paragraph (2) is not loss23 making by— 
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1 (A) using the authority to increase rates 

2 under section 3622(d)(1)(A) of title 39, United 

3 States Code; 

4 (B) exhausting any unused rate adjust5 ment authority, as defined in section 

6 3622(d)(2)(C) of title 39, United States Code, 

7 subject to paragraph (4); and 

8 (C) maximizing incentives to reduce costs 

9 and increase efficiency with regard to the proc10 essing, transportation, and delivery of such mail 

11 by the Postal Service. 

12 (4) UNUSED RATE ADJUSTMENT AUTHORITY.— 

13 Section 3622(d)(2)(C) of title 39, United States 

14 Code, shall be applied by annually increasing by 2 

15 percentage points any unused rate adjustment au16 thority for a class of mail that bears less than 90 

17 percent of the costs attributable to the class of mail, 

18 according to the most recent annual determination 

19 of the Commission under subsection (a)(1) or (b)(1), 

20 adjusted to account for the quantitative effect of ex21 cess mail processing, transportation, or delivery ca22 pacity of the Postal Service on the costs attributable 

23 to the class of mail. 
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1 SEC. 403. CO-LOCATION WITH FEDERAL AGENCIES. 

2 Chapter 5 of subtitle I of title 40, United States 

3 Code, is amended by adding at the end the following: 

4 ‘‘SUBCHAPTER VII—FEDERAL REAL PROPERTY 

5 ASSET MANAGEMENT 

6 ‘‘§ 701. Definitions 

7 ‘‘In this subchapter: 

8 ‘‘(1) AGENCY FIELD OFFICE.—The term ‘agen9 cy field office’ means the field office of a landholding 

10 agency. 

11 ‘‘(2) COUNCIL.—The term ‘Council’ means the 

12 Federal Real Property Council established under 

13 section 702. 

14 ‘‘(3) LANDHOLDING AGENCY.—The term ‘land15 holding agency’ has the same meaning as in section 

16 501(i) of the McKinney-Vento Homeless Assistance 

17 Act (42 U.S.C. 11411(i)). 

18 ‘‘(4) POSTAL PROPERTY.—The term ‘Postal 

19 property’ means real property owned by the United 

20 States Postal Service. 

21 ‘‘§ 702. Establishment of a Federal Real Property 

22 Council 

23 ‘‘(a) ESTABLISHMENT.—There is within the Office of 

24 Management and Budget a council to be known as the 

25 ‘Federal Real Property Council’. 
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1 ‘‘(b) PURPOSE.—The purpose of the Council shall be 

2 to develop guidance for the asset management program 

3 of each executive agency. 

4 ‘‘(c) COMPOSITION.— 

5 ‘‘(1) IN GENERAL.—The Council shall be com6 posed of— 

7 ‘‘(A) the senior real property officers of 

8 each executive agency; 

9 ‘‘(B) the Deputy Director for Management 

10 of the Office of Management and Budget; 

11 ‘‘(C) the Controller of the Office of Man12 agement and Budget; 

13 ‘‘(D) the Administrator of General Serv14 ices; and 

15 ‘‘(E) any other full-time or permanent 

16 part-time Federal officials or employees, as the 

17 Chairperson determines to be necessary. 

18 ‘‘(2) CHAIRPERSON.—The Deputy Director for 

19 Management of the Office of Management and 

20 Budget shall serve as Chairperson of the Council. 

21 ‘‘(3) ADMINISTRATIVE SUPPORT.—The Office of 

22 Management and Budget shall provide funding and 

23 administrative support for the Council, as appro24 priate. 
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1 ‘‘§ 703. Co-location among Postal Service properties 

2 ‘‘(a) CO-LOCATION AMONG POSTAL SERVICE PROP3 ERTIES.— 

4 ‘‘(1) IDENTIFICATION OF REAL PROPERTY AS5 SETS.—Each year, the Council shall— 

6 ‘‘(A) identify and compile a list of agency 

7 field offices that are suitable for co-location 

8 with another Federal civilian real property 

9 asset; and 

10 ‘‘(B) submit the list to the Director of the 

11 Office of Management and Budget and the 

12 Postmaster General of the United States. 

13 ‘‘(2) POSTAL PROPERTY.— 

14 ‘‘(A) IN GENERAL.—Not later than 30 

15 days after the completion of a list under para16 graph (1), the Director of the Office of Man17 agement and Budget, in collaboration with the 

18 Postmaster General, shall identify agency field 

19 offices on the list that are within reasonable 

20 distance of a Postal property. 

21 ‘‘(B) REASONABLE DISTANCE.—For pur22 poses of this paragraph, an agency field office 

23 shall be considered to be within reasonable dis24 tance of a Postal property if the office would be 

25 able to fulfill the mission of the office if the of26 fice is located at the Postal property. 
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1 ‘‘(C) REVIEW BY POSTAL SERVICE.—Not 

2 later than 90 days after the receipt of the list 

3 submitted under subparagraph (B), the Post4 master General shall— 

5 ‘‘(i) review the list; and 

6 ‘‘(ii) submit to the Director of the Of7 fice of Management and Budget a report 

8 containing the conclusions of the review. 

9 ‘‘(3) TERMS OF CO-LOCATION.—On approval of 

10 the recommendations under paragraph (2) by the 

11 Postmaster General and the applicable agency head, 

12 the co-location of a Postal property and an agency 

13 field office shall consist of the Executive agency that 

14 owns or leases the agency field office entering into 

15 a lease for space within the Postal property with 

16 United States Postal Service that has— 

17 ‘‘(A) an initial lease term of not less than 

18 5 years; and 

19 ‘‘(B) a cost that is within 5 percent of the 

20 prevailing market lease rate for a similarly situ21 ated space.’’. 

22 SEC. 404. COOPERATION WITH STATE AND LOCAL GOVERN23 MENTS; INTRA-SERVICE AGREEMENTS. 

24 (a) COOPERATION WITH STATE AND LOCAL GOV25 ERNMENTS.—Section 411 of title 39, United States Code, 
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1 is amended, in the first sentence, by striking ‘‘and the 

2 Government Printing Office’’ and inserting ‘‘, the Govern3 ment Printing Office, and agencies and other units of 

4 State and local governments’’. 

5 (b) INTRA-SERVICE AGREEMENTS.—Section 411 of 

6 title 39, United States Code, as amended by subsection 

7 (a), is amended— 

8 (1) in the section heading, by adding at the end 

9 the following: ‘‘and within the Postal Serv10 ice’’; 

11 (2) in the second sentence, by striking ‘‘sec12 tion’’ and inserting ‘‘subsection’’; 

13 (3) by striking ‘‘Executive agencies’’ and insert14 ing the following: 

15 ‘‘(a) COOPERATION WITH STATE AND LOCAL GOV16 ERNMENTS.—Executive agencies’’; and 

17 (4) by adding at the end the following: 

18 ‘‘(b) COOPERATION WITHIN THE POSTAL SERV19 ICE.—The Office of the Inspector General and other com20 ponents of the Postal Service may enter into agreements 

21 to furnish to each other property, both real and personal, 

22 and personal and nonpersonal services. The furnishing of 

23 property and services under this subsection shall be under 

24 such terms and conditions, including reimbursability, as 
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1 the Inspector General and the head of the component con2 cerned shall deem appropriate.’’. 

3 (c) TECHNICAL AND CONFORMING AMENDMENT.— 

4 The table of sections for chapter 4 of title 39, United 

5 States Code, is amended by striking the item relating to 

6 section 411 and inserting the following: 

‘‘411. Cooperation with other Government agencies and within the Postal Service.’’. 

7 SEC. 405. SHIPPING OF WINE, BEER, AND DISTILLED SPIR8 ITS. 

9 (a) MAILABILITY.— 

10 (1) NONMAILABLE ARTICLES.—Section 1716(f) 

11 of title 18, United States Code, is amended by strik12 ing ‘‘mails’’ and inserting ‘‘mails, except to the ex13 tent that the mailing is allowable under section 

14 3001(p) of title 39’’. 

15 (2) APPLICATION OF LAWS.—Section 1161 of 

16 title 18, United States Code, is amended, by insert17 ing ‘‘, and, with respect to the mailing of distilled 

18 spirits, wine, or malt beverages (as those terms are 

19 defined in section 117 of the Federal Alcohol Admin20 istration Act (27 U.S.C. 211)), is in conformity with 

21 section 3001(p) of title 39’’ after ‘‘Register’’. 

22 (b) REGULATIONS.—Section 3001 of title 39, United 

23 States Code, is amended by adding at the end the fol24 lowing: 
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1 ‘‘(p)(1) In this subsection, the terms ‘distilled spirits’, 

2 ‘wine’, and ‘malt beverage’ have the same meanings as in 

3 section 117 of the Federal Alcohol Administration Act (27 

4 U.S.C. 211). 

5 ‘‘(2) Distilled spirits, wine, or malt beverages shall 

6 be considered mailable if mailed— 

7 ‘‘(A) in accordance with the laws and regula8 tions of— 

9 ‘‘(i) the State, territory, or district of the 

10 United States where the sender or duly author11 ized agent initiates the mailing; and 

12 ‘‘(ii) the State, territory, or district of the 

13 United States where the addressee or duly au14 thorized agent takes delivery; and 

15 ‘‘(B) to an addressee who is at least 21 years 

16 of age— 

17 ‘‘(i) who provides a signature and presents 

18 a valid, government-issued photo identification 

19 upon delivery; or 

20 ‘‘(ii) the duly authorized agent of whom— 

21 ‘‘(I) is at least 21 years of age; and 

22 ‘‘(II) provides a signature and pre23 sents a valid, government-issued photo 

24 identification upon delivery. 
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1 ‘‘(3) The Postal Service shall prescribe such regula2 tions as may be necessary to carry out this subsection.’’. 

3 (c) EFFECTIVE DATE.—The amendments made by 

4 this section shall take effect on the earlier of— 

5 (1) the date on which the Postal Service issues 

6 regulations under section 3001(p) of title 39, United 

7 States Code, as amended by this section; and 

8 (2) 120 days after the date of enactment of this 

9 Act. 

10 SEC. 406. ANNUAL REPORT ON UNITED STATES MAILING IN11 DUSTRY. 

12 (a) IN GENERAL.—Chapter 24 of title 39, United 

13 States Code, is amended by adding at the end the fol14 lowing: 

15 ‘‘§ 2403. Annual report on the fiscal stability of the 

16 United States mailing industry 

17 ‘‘(a) IN GENERAL.—Not later than 1 year after the 

18 date of enactment of this section, and annually thereafter, 

19 the Postal Regulatory Commission shall submit a report 

20 on the fiscal stability of the United States mailing indus21 try with respect to the preceding fiscal year to— 

22 ‘‘(1) the Committee on Homeland Security and 

23 Governmental Affairs of the Senate; and 

24 ‘‘(2) the Committee on Oversight and Govern25 ment Reform of the House of Representatives. 
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1 ‘‘(b) ASSISTANCE.—The United States Postal Service 

2 and any Federal agency involved in oversight or data col3 lection regarding industry sectors relevant to the report 

4 under subsection (a) shall provide any assistance to the 

5 Postal Regulatory Commission that the Postal Regulatory 

6 Commission determines is necessary in the preparation of 

7 a report under subsection (a).’’. 

8 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

9 The table of sections for chapter 24 of title 39, United 

10 States Code, is amended by adding at the end the fol11 lowing: 

‘‘2403. Annual report on the fiscal stability of the United States mailing industry.’’. 

12 SEC. 407. USE OF NEGOTIATED SERVICE AGREEMENTS. 

13 Section 3622 of title 39, United States Code, is 

14 amended— 

15 (1) in subsection (c)(10)(A)— 

16 (A) in the matter preceding clause (i), by 

17 striking ‘‘either’’ and inserting ‘‘will’’; 

18 (B) in clause (i), by striking ‘‘or’’ at the 

19 end; 

20 (C) in clause (ii), by striking ‘‘and’’ at the 

21 end and inserting ‘‘or’’; and 

22 (D) by adding at the end the following: 

23 ‘‘(iii) preserve mail volume and rev24 enue; and’’; and 
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1 (2) by adding at the end the following: 

2 ‘‘(g) COORDINATION.—The Postal Service and the 

3 Postal Regulatory Commission shall coordinate actions to 

4 identify methods to increase the use of negotiated service 

5 agreements for market-dominant products by the Postal 

6 Service consistent with subsection (c)(10).’’. 

7 SEC. 408. CONTRACT DISPUTES. 

8 Section 7101(8) of title 41, United States Code, is 

9 amended— 

10 (1) in subparagraph (C), by striking ‘‘and’’ at 

11 the end; 

12 (2) in subparagraph (D), by striking the period 

13 at the end and inserting ‘‘; and’’; and 

14 (3) by adding at the end the following: 

15 ‘‘(E) the United States Postal Service and 

16 the Postal Regulatory Commission.’’. 

17 SEC. 409. CONTRACTING PROVISIONS. 

18 (a) IN GENERAL.—Part I of title 39, United States 

19 Code, is amended by adding at the end the following: 

20 ‘‘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. 
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1 ‘‘§ 701. Definitions 

2 ‘‘In this chapter— 

3 ‘‘(1) the term ‘contracting officer’ means an 

4 employee of a covered postal entity who has author5 ity to enter into a postal contract; 

6 ‘‘(2) the term ‘covered postal entity’ means— 

7 ‘‘(A) the Postal Service; or 

8 ‘‘(B) the Postal Regulatory Commission; 

9 ‘‘(3) the term ‘head of a covered postal entity’ 

10 means— 

11 ‘‘(A) in the case of the Postal Service, the 

12 Postmaster General; or 

13 ‘‘(B) in the case of the Postal Regulatory 

14 Commission, the Chairman of the Postal Regu15 latory Commission; 

16 ‘‘(4) the term ‘postal contract’ means any con17 tract (including any agreement or memorandum of 

18 understanding) entered into by a covered postal enti19 ty for the procurement of goods or services; and 

20 ‘‘(5) the term ‘senior procurement executive’ 

21 means the senior procurement executive of a covered 

22 postal entity. 

23 ‘‘§ 702. Advocate for competition 

24 ‘‘(a) ESTABLISHMENT AND DESIGNATION.— 
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1 ‘‘(1) ESTABLISHMENT.—There is established in 

2 each covered postal entity an advocate for competi3 tion. 

4 ‘‘(2) DESIGNATION.—The head of each covered 

5 postal entity shall designate for the covered postal 

6 entity 1 or more officers or employees (other than 

7 the senior procurement executive) to serve as the ad8 vocate for competition. 

9 ‘‘(b) RESPONSIBILITIES.—The advocate for competi10 tion of each covered postal entity shall— 

11 ‘‘(1) be responsible for promoting competition 

12 to the maximum extent practicable consistent with 

13 obtaining best value by promoting the acquisition of 

14 commercial items and challenging barriers to com15 petition; 

16 ‘‘(2) review the procurement activities of the 

17 covered postal entity; and 

18 ‘‘(3) prepare and transmit to the head of each 

19 covered postal entity, the senior procurement execu20 tive of each covered postal entity, the Board of Gov21 ernors, and Congress, an annual report describing— 

22 ‘‘(A) the activities of the advocate under 

23 this section; 

24 ‘‘(B) initiatives required to promote com25 petition; 
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1 ‘‘(C) barriers to competition that remain; 

2 and 

3 ‘‘(D) the number of waivers made by each 

4 covered postal entity under section 704(c). 

5 ‘‘§ 703. Delegation of contracting authority 

6 ‘‘(a) IN GENERAL.— 

7 ‘‘(1) POLICY.—Not later than 60 days after the 

8 date of enactment of the 21st Century Postal Serv9 ice Act of 2012, the head of each covered postal en10 tity shall issue a policy on contracting officer delega11 tions of authority for the covered postal entity. 

12 ‘‘(2) CONTENTS.—The policy issued under 

13 paragraph (1) shall require that— 

14 ‘‘(A) notwithstanding any delegation of au15 thority with respect to postal contracts, the ulti16 mate responsibility and accountability for the 

17 award and administration of postal contracts 

18 resides with the senior procurement executive; 

19 and 

20 ‘‘(B) a contracting officer shall maintain 

21 an awareness of and engagement in the activi22 ties being performed on postal contracts of 

23 which that officer has cognizance, notwith24 standing any delegation of authority that may 

25 have been executed. 
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1 ‘‘(b) POSTING OF DELEGATIONS.— 

2 ‘‘(1) IN GENERAL.—The head of each covered 

3 postal entity shall make any delegation of authority 

4 for postal contracts outside the functional con5 tracting unit readily available and accessible on the 

6 website of the covered postal entity. 

7 ‘‘(2) EFFECTIVE DATE.—This paragraph shall 

8 apply to any delegation of authority made on or 

9 after 30 days after the date of enactment of the 21st 

10 Century Postal Service Act of 2012. 

11 ‘‘§ 704. Posting of noncompetitive purchase requests 

12 for noncompetitive contracts 

13 ‘‘(a) POSTING REQUIRED.— 

14 ‘‘(1) POSTAL REGULATORY COMMISSION.—The 

15 Postal Regulatory Commission shall make the non16 competitive purchase request for any noncompetitive 

17 award, including the rationale supporting the non18 competitive award, publicly available on the website 

19 of the Postal Regulatory Commission— 

20 ‘‘(A) not later than 14 days after the date 

21 of the award of the noncompetitive contract; or 

22 ‘‘(B) not later than 30 days after the date 

23 of the award of the noncompetitive contract, if 

24 the basis for the award was a compelling busi25 ness interest. 
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1 ‘‘(2) POSTAL SERVICE.—The Postal Service 

2 shall make the noncompetitive purchase request for 

3 any noncompetitive award of a postal contract val4 ued at $250,000 or more, including the rationale 

5 supporting the noncompetitive award, publicly avail6 able on the website of the Postal Service— 

7 ‘‘(A) not later than 14 days after the date 

8 of the award; or 

9 ‘‘(B) not later than 30 days after the date 

10 of the award, if the basis for the award was a 

11 compelling business interest. 

12 ‘‘(3) ADJUSTMENTS TO THE POSTING THRESH13 OLD FOR THE POSTAL SERVICE.— 

14 ‘‘(A) REVIEW AND DETERMINATION.—Not 

15 later than January 31 of each year, the Postal 

16 Service shall— 

17 ‘‘(i) review the $250,000 threshold es18 tablished under paragraph (2); and 

19 ‘‘(ii) based on any change in the Con20 sumer Price Index for all-urban consumers 

21 of the Department of Labor, determine 

22 whether an adjustment to the threshold 

23 shall be made. 

24 ‘‘(B) AMOUNT OF ADJUSTMENTS.—An ad25 justment under subparagraph (A) shall be made 
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1 in increments of $5,000. If the Postal Service 

2 determines that a change in the Consumer 

3 Price Index for a year would require an adjust4 ment in an amount that is less than $5,000, the 

5 Postal Service may not make an adjustment to 

6 the threshold for the year. 

7 ‘‘(4) EFFECTIVE DATE.—This subsection shall 

8 apply to any noncompetitive contract awarded on or 

9 after the date that is 90 days after the date of en10 actment of the 21st Century Postal Service Act of 

11 2012. 

12 ‘‘(b) PUBLIC AVAILABILITY.— 

13 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

14 the information required to be made publicly avail15 able by a covered postal entity under subsection (a) 

16 shall be readily accessible on the website of the cov17 ered postal entity. 

18 ‘‘(2) PROTECTION OF PROPRIETARY INFORMA19 TION.—A covered postal entity shall— 

20 ‘‘(A) carefully screen any description of the 

21 rationale supporting a noncompetitive award re22 quired to be made publicly available under sub23 section (a) to determine whether the description 

24 includes proprietary data (including any ref-
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1 erence or citation to the proprietary data) or se2 curity-related information; and 

3 ‘‘(B) remove any proprietary data or secu4 rity-related information before making publicly 

5 available a description of the rational sup6 porting a noncompetitive award. 

7 ‘‘(c) WAIVERS.— 

8 ‘‘(1) WAIVER PERMITTED.—If a covered postal 

9 entity determines that making a noncompetitive pur10 chase request publicly available would risk placing 

11 the Postal Service at a competitive disadvantage rel12 ative to a private sector competitor, the senior pro13 curement executive, in consultation with the advo14 cate for competition of the covered postal entity, 

15 may waive the requirements under subsection (a). 

16 ‘‘(2) FORM AND CONTENT OF WAIVER.— 

17 ‘‘(A) FORM.—A waiver under paragraph 

18 (1) shall be in the form of a written determina19 tion placed in the file of the contract to which 

20 the noncompetitive purchase agreement relates. 

21 ‘‘(B) CONTENT.—A waiver under para22 graph (1) shall include— 

23 ‘‘(i) a description of the risk associ24 ated with making the noncompetitive pur25 chase request publicly available; and 
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1 ‘‘(ii) a statement that redaction of 

2 sensitive information in the noncompetitive 

3 purchase request would not be sufficient to 

4 protect the Postal Service from being 

5 placed at a competitive disadvantage rel6 ative to a private sector competitor. 

7 ‘‘(3) DELEGATION OF WAIVER AUTHORITY.—A 

8 covered postal entity may not delegate the authority 

9 to approve a waiver under paragraph (1) to any em10 ployee having less authority than the senior procure11 ment executive. 

12 ‘‘§ 705. Review of ethical issues 

13 ‘‘If a contracting officer identifies any ethical issues 

14 relating to a proposed contract and submits those issues 

15 and that proposed contract to the designated ethics official 

16 for the covered postal entity before the awarding of that 

17 contract, that ethics official shall— 

18 ‘‘(1) review the proposed contract; and 

19 ‘‘(2) advise the contracting officer on the appro20 priate resolution of ethical issues. 

21 ‘‘§ 706. Ethical restrictions on participation in certain 

22 contracting activity 

23 ‘‘(a) DEFINITIONS.—In this section— 

24 ‘‘(1) the term ‘covered employee’ means— 

25 ‘‘(A) a contracting officer; or 
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1 ‘‘(B) any employee of a covered postal en2 tity whose decisionmaking affects a postal con3 tract as determined by regulations prescribed 

4 by the head of a covered postal entity; 

5 ‘‘(2) the term ‘covered relationship’ means a 

6 covered relationship described in section 

7 2635.502(b)(1) of title 5, Code of Federal Regula8 tions, or any successor thereto; and 

9 ‘‘(3) the term ‘final conviction’ means a convic10 tion, whether entered on a verdict or plea, including 

11 a plea of nolo contendere, for which a sentence has 

12 been imposed. 

13 ‘‘(b) IN GENERAL.— 

14 ‘‘(1) REGULATIONS.—The head of each covered 

15 postal entity shall prescribe regulations that— 

16 ‘‘(A) require a covered employee to include 

17 in the file of any noncompetitive purchase re18 quest for a noncompetitive postal contract a 

19 written certification that— 

20 ‘‘(i) discloses any covered relationship 

21 of the covered employee; and 

22 ‘‘(ii) the covered employee will not 

23 take any action with respect to the non24 competitive purchase request that affects 

25 the financial interests of a friend, relative, 
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1 or person with whom the covered employee 

2 is affiliated in a nongovernmental capacity, 

3 or otherwise gives rise to an appearance of 

4 the use of public office for private gain, as 

5 described in section 2635.702 of title 5, 

6 Code of Federal Regulations, or any suc7 cessor thereto; 

8 ‘‘(B) require a contracting officer to con9 sult with the ethics counsel for the covered 

10 postal entity regarding any disclosure made by 

11 a covered employee under subparagraph (A)(i), 

12 to determine whether participation by the cov13 ered employee in the noncompetitive purchase 

14 request would give rise to a violation of part 

15 2635 of title 5, Code of Federal Regulations 

16 (commonly referred to as the ‘Standards of 

17 Ethical Conduct for Employees of the Executive 

18 Branch’); 

19 ‘‘(C) require the ethics counsel for a cov20 ered postal entity to review any disclosure made 

21 by a contracting officer under subparagraph 

22 (A)(i) to determine whether participation by the 

23 contracting officer in the noncompetitive pur24 chase request would give rise to a violation of 

25 part 2635 of title 5, Code of Federal Regula-
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1 tions (commonly referred to as the ‘Standards 

2 of Ethical Conduct for Employees of the Execu3 tive Branch’), or any successor thereto; 

4 ‘‘(D) under subsections (d) and (e) of sec5 tion 2635.50 of title 5, Code of Federal Regula6 tions, or any successor thereto, require the eth7 ics counsel for a covered postal entity to— 

8 ‘‘(i) authorize a covered employee that 

9 makes a disclosure under subparagraph 

10 (A)(i) to participate in the noncompetitive 

11 postal contract; or 

12 ‘‘(ii) disqualify a covered employee 

13 that makes a disclosure under subpara14 graph (A)(i) from participating in the non15 competitive postal contract; 

16 ‘‘(E) require a contractor to timely disclose 

17 to the contracting officer in a bid, solicitation, 

18 award, or performance of a postal contract any 

19 conflict of interest with a covered employee; and 

20 ‘‘(F) include authority for the head of the 

21 covered postal entity to a grant a waiver or oth22 erwise mitigate any organizational or personal 

23 conflict of interest, if the head of the covered 

24 postal entity determines that the waiver or miti-
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1 gation is in the best interests of the Postal 

2 Service. 

3 ‘‘(2) POSTING OF WAIVERS.—Not later than 30 

4 days after the head of a covered postal entity grants 

5 a waiver described in paragraph (1)(F), the head of 

6 the covered postal entity shall make the waiver pub7 licly available on the website of the covered postal 

8 entity. 

9 ‘‘(c) CONTRACT VOIDANCE AND RECOVERY.— 

10 ‘‘(1) UNLAWFUL CONDUCT.—In any case in 

11 which there is a final conviction for a violation of 

12 any provision of chapter 11 of title 18 relating to a 

13 postal contract, the head of a covered postal entity 

14 may— 

15 ‘‘(A) void that contract; and 

16 ‘‘(B) recover the amounts expended and 

17 property transferred by the covered postal enti18 ty under that contract. 

19 ‘‘(2) OBTAINING OR DISCLOSING PROCUREMENT

20 INFORMATION.— 

21 ‘‘(A) IN GENERAL.—In any case where a 

22 contractor under a postal contract fails to time23 ly disclose a conflict of interest to the appro24 priate contracting officer as required under the 

25 regulations promulgated under subsection 
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1 (b)(1)(D), the head of a covered postal entity 

2 may— 

3 ‘‘(i) void that contract; and 

4 ‘‘(ii) recover the amounts expended 

5 and property transferred by the covered 

6 postal entity under that contract. 

7 ‘‘(B) CONVICTION OR ADMINISTRATIVE DE8 TERMINATION.—A case described under sub9 paragraph (A) is any case in which— 

10 ‘‘(i) there is a final conviction for an 

11 offense punishable under section 27(e) of 

12 the Office of Federal Procurement Policy 

13 Act (41 U.S.C. 423(e)); or 

14 ‘‘(ii) the head of a covered postal enti15 ty determines, based upon a preponderance 

16 of the evidence, that the contractor or 

17 someone acting for the contractor has en18 gaged in conduct constituting an offense 

19 punishable under section 27(e) of that Act. 

20 ‘‘§ 707. Congressional oversight authority 

21 ‘‘The Postal Service may not enter into any contract 

22 that restricts the ability of Congress to exercise oversight 

23 authority.’’. 
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1 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

2 The table of chapters for part I of title 39, United States 

3 Code, is amended by adding at the end the following: 

‘‘7. Contracting Provisions ....................................................................... 701’’. 

4 SEC. 410. EXECUTIVE COMPENSATION. 

5 (a) LIMIT ON MAXIMUM COMPENSATION.— 

6 (1) NUMBER OF EXECUTIVES.—Section 3686(c) 

7 of title 39, United States Code, is amended in the 

8 first sentence by striking ‘‘12 officers’’ and inserting 

9 ‘‘6 officers’’. 

10 (2) INTERIM LIMITATION.— 

11 (A) IN GENERAL.—Except as provided in 

12 subparagraph (B), and notwithstanding section 

13 3686(c) of title 39, United States Code, as 

14 amended by this Act, for 2012, 2013, 2014, 

15 and 2015, the total compensation of an officer 

16 or employee of the Postal Service may not ex17 ceed the annual amount of basic pay payable 

18 for level I of the Executive Schedule under sec19 tion 5312 of title 5. 

20 (B) PERFORMANCE BASED COMPENSATION

21 RELATING TO SOLVENCY PLAN.— 

22 (i) IN GENERAL.—Any compensation 

23 relating to achieving the goals established 

24 under the plan under section 401 shall not 
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1 apply toward the limit on compensation 

2 under subparagraph (A). 

3 (ii) OTHER LIMITATIONS APPLY.— 

4 Nothing in this subparagraph shall be con5 strued to modify the limitation on com6 pensation under subsections (b) and (c) of 

7 section 3686 of title 39, United States 

8 Code, as amended by this Act. 

9 (b) CARRY OVER COMPENSATION.—The Postal Serv10 ice may not pay compensation for service performed dur11 ing a year (in this subsection referred to as the ‘‘base 

12 year’’) in any subsequent year if the total amount of com13 pensation provided relating to service during the base year 

14 would exceed the amount specified under section 3686(c) 

15 of title 39, United States Code, as amended by this Act, 

16 or subsection (a)(2), as applicable. 

17 (c) BENEFITS.—Section 1003 of title 39, United 

18 States Code, is amended by adding at the end the fol19 lowing: 

20 ‘‘(e) LIMITATIONS ON BENEFITS.—For any fiscal 

21 year, an officer or employee of the Postal Service who is 

22 in a critical senior executive or equivalent position, as des23 ignated under section 3686(c), may not receive fringe ben24 efits (within the meaning given that term under section 

25 1005(f)) that are greater than the fringe benefits received 
185 

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1 by supervisory and other managerial personnel who are 

2 not subject to collective-bargaining agreements under 

3 chapter 12.’’. 

4 (d) EFFECTIVE DATE; APPLICABILITY.—This section 

5 and the amendments made by this section shall— 

6 (1) take effect on the date of enactment of this 

7 Act; and 

8 (2) apply to any contract entered or modified 

9 by the Postal Service on or after the date of enact10 ment of this Act. 

11 SEC. 411. SENSE OF THE SENATE. 

12 It is the sense of the Senate that the Postal Service 

13 should not close or consolidate any postal facility (as de14 fined in section 404(f) of title 39, United States Code, 

15 as added by this Act) or post office before the date of 

16 enactment of this Act. 

17 TITLE V—MISCELLANEOUS 

18 SEC. 501. GOVERNMENT SPONSORED CONFERENCES. 

19 (a) TRAVEL EXPENSES OF FEDERAL AGENCIES RE20 LATING TO CONFERENCES.— 

21 (1) LIMITATIONS AND REPORTS ON TRAVEL EX22 PENSES TO CONFERENCES.—Chapter 57 of title 5, 

23 United States Code, is amended by inserting after 

24 section 5711 the following: 
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1 ‘‘§ 5712. Limitations and reports on travel expenses to 

2 conferences 

3 ‘‘(a) In this section, the term— 

4 ‘‘(1) ‘conference’ means a meeting that— 

5 ‘‘(A) is held for consultation, education, or 

6 discussion; 

7 ‘‘(B) is not held entirely at an agency facil8 ity; 

9 ‘‘(C) involves costs associated with travel 

10 and lodging for some participants; and 

11 ‘‘(D) is sponsored by 1 or more agencies, 

12 1 or more organizations that are not agencies, 

13 or a combination of such agencies or organiza14 tions; and 

15 ‘‘(2) ‘international conference’ means a con16 ference attended by representatives of — 

17 ‘‘(A) the United States Government; and 

18 ‘‘(B) any foreign government, international 

19 organization, or foreign nongovernmental orga20 nization. 

21 ‘‘(b) No agency may pay the travel expenses for more 

22 than 50 employees of that agency who are stationed in 

23 the United States, for any international conference occur24 ring outside the United States, unless the Secretary of 

25 State determines that attendance for such employees is 

26 in the national interest. 
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1 ‘‘(c) At the beginning of each quarter of each fiscal 

2 year, each agency shall post on the public Internet website 

3 of that agency a report on each conference for which the 

4 agency paid travel expenses during the preceding 3 

5 months that includes— 

6 ‘‘(1) the itemized expenses paid by the agency, 

7 including travel expenses, the cost of scouting for 

8 and selecting the location of the conference, and any 

9 agency expenditures to otherwise support the con10 ference; 

11 ‘‘(2) the primary sponsor of the conference; 

12 ‘‘(3) the location of the conference; 

13 ‘‘(4) in the case of a conference for which that 

14 agency was the primary sponsor, a statement that— 

15 ‘‘(A) justifies the location selected; 

16 ‘‘(B) demonstrates the cost efficiency of 

17 the location; and 

18 ‘‘(C) provides a cost benefit analysis of 

19 holding a conference rather than conducting a 

20 teleconference; 

21 ‘‘(5) the date of the conference; 

22 ‘‘(6) a brief explanation how the conference ad23 vanced the mission of the agency; 

24 ‘‘(7) the title of any Federal employee or any 

25 individual who is not a Federal employee whose trav-
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1 el expenses or other conference expenses were paid 

2 by the agency; and 

3 ‘‘(8) the total number of individuals whose trav4 el expenses or other conference expenses were paid 

5 by the agency. 

6 ‘‘(d) Each report posted on the public Internet 

7 website under subsection (c) shall— 

8 ‘‘(1) be in a searchable electronic format; and 

9 ‘‘(2) remain on that website for at least 5 years 

10 after the date of posting.’’. 

11 (2) TECHNICAL AND CONFORMING AMEND12 MENT.—The table of sections for chapter 57 of title 

13 5, United States Code, is amended by inserting after 

14 the item relating to section 5711 the following: 

‘‘5712. Limitations and reports on travel expenses to conferences.’’. 

15 (b) LIMITATIONS ON ANNUAL TRAVEL EXPENSES.— 

16 (1) IN GENERAL.—In the case of each of fiscal 

17 years 2012 through 2016, an agency (as defined 

18 under section 5701(1) of title 5, United States 

19 Code) may not make, or obligate to make, expendi20 tures for travel expenses, in an aggregate amount 

21 greater than 80 percent of the aggregate amount of 

22 such expenses for fiscal year 2010. 

23 (2) IDENTIFICATION OF TRAVEL EXPENSES.— 

24 Not later than September 1, 2012 and after con25 sultation with the Administrator of General Services 
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1 and the Director of the Administrative Office of the 

2 United States Courts, the Director of the Office of 

3 Management and Budget shall establish guidelines 

4 for the determination of what expenses constitute 

5 travel expenses for purposes of this subsection. The 

6 guidelines shall identify specific expenses, and class7 es of expenses, that are to be treated as travel ex8 penses. 

9 (c) CONFERENCE TRANSPARENCY AND LIMITA10 TIONS.— 

11 (1) DEFINITIONS.—In this subsection— 

12 (A) the term ‘‘agency’’ has the meaning 

13 given under section 5701(1) of title 5, United 

14 States Code; and 

15 (B) the term ‘‘conference’’ has the mean16 ing given under section 5712(a)(1) of that title 

17 (as added by subsection (a)). 

18 (2) PUBLIC AVAILABILITY OF CONFERENCE MA19 TERIALS.—Each agency shall post on the public 

20 Internet website of that agency a detailed informa21 tion on any presentation made by any employee of 

22 that agency at a conference, including— 

23 (A) any minutes relating to the presen24 tation; 

25 (B) any speech delivered; 
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1 (C) any visual exhibit, including photo2 graphs or slides; 

3 (D) any video, digital, or audio recordings 

4 of the conference; and 

5 (E) information regarding any financial 

6 support or other assistance from a foundation 

7 or other non-Federal source used to pay or de8 fray the costs of the conference, which shall in9 clude a certification by the head of the agency 

10 that there is no conflict of interest resulting 

11 from the support received from each such 

12 source. 

13 (3) LIMITATION ON AMOUNT EXPENDED ON A

14 CONFERENCE.— 

15 (A) IN GENERAL.—No agency may expend 

16 more than $500,000 to support a single con17 ference. 

18 (B) RULE OF CONSTRUCTION.—Nothing in 

19 this paragraph shall be construed to preclude 

20 an agency from receiving financial support or 

21 other assistance from a foundation or other 

22 non-Federal source to pay or defray the costs of 

23 a conference the total cost of which exceeds 

24 $500,000. 
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1 (4) LIMITATION ON THE ANNUAL NUMBER OF

2 CONFERENCES AN AGENCY MAY SUPPORT.—No 

3 agency may expend funds on more than a single con4 ference sponsored or organized by an organization 

5 during any fiscal year, unless the agency is the pri6 mary sponsor and organizer of the conference. 

Passed the Senate April 25, 2012. 

Attest: 

Secretary. 
112TH CONGRESS 

2D SESSION S. 1789 

AN ACT 

To improve, sustain, and transform the United 

States Postal Service.