II 

112TH CONGRESS 

1ST SESSION S. 1789 

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

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 2, 2011 

Mr. LIEBERMAN (for himself, Ms. COLLINS, Mr. CARPER, and Mr. BROWN of 

Massachusetts) introduced the following bill; which was read twice and 

referred to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To improve, sustain, and transform the United States Postal 

Service. 

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

3 SECTION 1. SHORT TITLE. 

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

5 Service Act of 2011’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 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 


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Sec. 101. Treatment of surplus contributions to Federal Employees Retirement 

System. 

Sec. 102. Additional service credit. 

Sec. 103. Medicare coverage for Postal Service Medicare eligible annuitants. 

Sec. 104. Restructuring of payments for retiree health benefits. 

Sec. 105. Postal Service Health Benefits Program. 

Sec. 106. Arbitration; labor disputes. 

TITLE II—POSTAL SERVICES AND OPERATIONS 

Sec. 201. Postal facilities. 

Sec. 202. Additional Postal Service planning. 

Sec. 203. Area and district office structure. 

Sec. 204. Retail service standards. 

Sec. 205. Conversion of door delivery points. 

Sec. 206. Limitations on changes to mail delivery schedule. 

Sec. 207. Time limits for consideration of service changes. 

Sec. 208. Public procedures for significant changes to mailing specifications. 

Sec. 209. Nonpostal products and services. 

TITLE III—FEDERAL EMPLOYEES’ COMPENSATION ACT 

Sec. 301. Short title; references. 

Sec. 302. Federal workers compensation reforms for retirement-age employees. 

Sec. 303. Augmented compensation for dependents. 

Sec. 304. Schedule compensation payments. 

Sec. 305. Vocational rehabilitation. 

Sec. 306. Reporting requirements. 

Sec. 307. Disability management review; independent medical examinations. 

Sec. 308. Waiting period. 

Sec. 309. Election of benefits. 

Sec. 310. Sanction for noncooperation with field nurses. 

Sec. 311. Subrogation of continuation of pay. 

Sec. 312. Social Security earnings information. 

Sec. 313. Amount of compensation. 

Sec. 314. Technical and conforming amendments. 

Sec. 315. Regulations. 

TITLE IV—OTHER MATTERS 

Sec. 401. Profitability plan. 

Sec. 402. Postal rates. 

Sec. 403. Cooperation with State and local governments; intra-Service agreements. 

Sec. 404. Shipping of wine and beer. 

Sec. 405. Annual report on United States mailing industry. 

Sec. 406. Use of negotiated service agreements. 

Sec. 407. Contract disputes. 

Sec. 408. Contracting provisions. 

1 SEC. 3. DEFINITIONS. 

2 In this Act, the following definitions shall apply: 


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

2 means the Postal Regulatory Commission. 

3 (2) POSTAL SERVICE.—The term ‘‘Postal Serv4 ice’’ means the United States Postal Service. 

5 TITLE I—POSTAL WORKFORCE 

6 MATTERS 

7 SEC. 101. TREATMENT OF SURPLUS CONTRIBUTIONS TO 

8 FEDERAL EMPLOYEES RETIREMENT SYSTEM. 

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

10 amended— 

11 (1) by redesignating paragraph (5) as para12 graph (6); and 

13 (2) by inserting after paragraph (4) the fol14 lowing: 

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

16 contributions’ means the amount by which the amount 

17 computed under paragraph (1)(B) is less than zero. 

18 ‘‘(B) For each fiscal year in which the amount com19 puted under paragraph (1)(B) is less than zero, upon re20 quest of the Postmaster General, the Director shall trans21 fer to the United States Postal Service from the Fund an 

22 amount equal to the surplus postal contributions for that 

23 fiscal year for use in accordance with this paragraph. 

24 ‘‘(C) For each of fiscal years 2012, 2013, and 2014, 

25 if the amount computed under paragraph (1)(B) is less 


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1 than zero, a portion of the surplus postal contributions 

2 for the fiscal year shall be used by the United States Post3 al Service for the cost of providing to employees of the 

4 United States Postal Service who voluntarily separate 

5 from service before October 1, 2014— 

6 ‘‘(i) voluntary separation incentive payments 

7 (including payments to employees who retire under 

8 section 8336(d)(2) or 8414(b)(1)(B) before October 

9 1, 2014) that may not exceed the maximum amount 

10 provided under section 3523(b)(3)(B) for any em11 ployee; and 

12 ‘‘(ii) retirement service credits, as authorized 

13 under section 8332(p) or 8411(m). 

14 ‘‘(D) Any surplus postal contributions for a fiscal 

15 year not expended under subparagraph (C) may be used 

16 by the United States Postal Service for the purposes of— 

17 ‘‘(i) repaying any obligation issued under sec18 tion 2005 of title 39; or 

19 ‘‘(ii) making required payments to— 

20 ‘‘(I) the Employees’ Compensation Fund 

21 established under section 8147; 

22 ‘‘(II) the Postal Service Retiree Health 

23 Benefits Fund established under section 8909a; 

24 ‘‘(III) the Employees Health Benefits 

25 Fund established under section 8909; or 


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1 ‘‘(IV) the Civil Service Retirement and 

2 Disability Fund.’’. 

3 SEC. 102. ADDITIONAL SERVICE CREDIT. 

4 (a) CIVIL SERVICE RETIREMENT SYSTEM.—Section 

5 8332 of title 5, United States Code, is amended by adding 

6 at the end the following: 

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

8 Postal Service who is covered under this subchapter and 

9 voluntarily separates from service before October 1, 2014, 

10 at the direction of the United States Postal Service, the 

11 Office shall add not more than 1 year (as specified by the 

12 United States Postal Service) to the total creditable serv13 ice of the employee for purposes of determining entitle14 ment to and computing the amount of an annuity under 

15 this subchapter (except for a disability annuity under sec16 tion 8337). 

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

18 service under this paragraph may not receive a voluntary 

19 separation incentive payment from the United States 

20 Postal Service. 

21 ‘‘(2)(A) Subject to subparagraph (B), and notwith22 standing any other provision of law, no deduction, deposit, 

23 or contribution shall be required for service credited under 

24 this subsection. 


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1 ‘‘(B) The actuarial present value of the additional li2 ability of the United States Postal Service to the Fund 

3 resulting from this subsection shall be included in the 

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

5 (b) FEDERAL EMPLOYEES RETIREMENT SYSTEM.— 

6 Section 8411 of title 5, United States Code, is amended 

7 by adding at the end the following: 

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

9 Postal Service who is covered under this chapter and vol10 untarily separates from service before October 1, 2014, 

11 at the direction of the United States Postal Service, the 

12 Office shall add not more than 2 years (as specified by 

13 the United States Postal Service) to the total creditable 

14 service of the employee for purposes of determining enti15 tlement to and computing the amount of an annuity under 

16 this chapter (except for a disability annuity under sub17 chapter V of that chapter). 

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

19 service under this paragraph may not receive a voluntary 

20 separation incentive payment from the United States 

21 Postal Service. 

22 ‘‘(2)(A) Subject to subparagraph (B), and notwith23 standing any other provision of law, no deduction, deposit, 

24 or contribution shall be required for service credited under 

25 this subsection. 


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1 ‘‘(B) The actuarial present value of the additional li2 ability of the United States Postal Service to the Fund 

3 resulting from this subsection shall be included in the 

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

5 SEC. 103. MEDICARE COVERAGE FOR POSTAL SERVICE 

6 MEDICARE ELIGIBLE ANNUITANTS. 

7 (a) FEDERAL EMPLOYEES HEALTH BENEFITS

8 PLANS.— 

9 (1) IN GENERAL.—Chapter 89 of title 5, United 

10 States Code, is amended by inserting after section 

11 8903b the following: 

12 ‘‘§ 8903c. Postal Service Medicare eligible annuitants 

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

14 ‘‘(1) the term ‘contract year’ means a calendar 

15 year in which health benefits plans are administered 

16 under this chapter; 

17 ‘‘(2) the term ‘Medicare part A’ means the 

18 Medicare program for hospital insurance benefits 

19 under part A of title XVIII of the Social Security 

20 Act (42 U.S.C. 1395c et seq.); 

21 ‘‘(3) the term ‘Medicare part B’ means the 

22 Medicare program for supplementary medical insur23 ance benefits under part B of title XVIII of the So24 cial Security Act (42 U.S.C. 1395j et seq.); and 


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1 ‘‘(4) the term ‘Postal Service Medicare eligible 

2 annuitant’ means an individual who— 

3 ‘‘(A) is an annuitant covered under this 

4 chapter whose Government contribution is paid 

5 by the Postal Service under section 8906(g)(2); 

6 and 

7 ‘‘(B) is eligible to enroll in Medicare part 

8 A and Medicare part B. 

9 ‘‘(b) REQUIREMENT OF MEDICARE ENROLLMENT.— 

10 ‘‘(1) POSTAL SERVICE MEDICARE ELIGIBLE AN11 NUITANTS.— 

12 ‘‘(A) IMMEDIATE APPLICATION.—An indi13 vidual who is a Postal Service Medicare eligible 

14 annuitant on the date of enactment of the 21st 

15 Century Postal Service Act of 2011 may not 

16 continue coverage under this chapter, unless 

17 that individual enrolls in Medicare part A and 

18 Medicare part B during the special enrollment 

19 period established under section 1837(m) of the 

20 Social Security Act. 

21 ‘‘(B) PROSPECTIVE APPLICATION.—An in22 dividual who becomes a Postal Service Medicare 

23 eligible annuitant after the date of enactment of 

24 the 21st Century Postal Service Act of 2011 

25 may not continue coverage under this chapter, 


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1 unless after becoming eligible for Medicare part 

2 A and Medicare part B that individual enrolls 

3 in Medicare part A and Medicare part B during 

4 the applicable initial enrollment period under 

5 section 1837 of the Social Security Act (42 

6 U.S.C. 1395p). 

7 ‘‘(2) FAMILY MEMBERS OF POSTAL SERVICE

8 MEDICARE ELIGIBLE ANNUITANTS.— 

9 ‘‘(A) FAMILY MEMBER IS MEDICARE ELIGI10 BLE.—An individual who, on the date of enact11 ment of the 21st Century Postal Service Act of 

12 2011, is a Postal Service Medicare eligible an13 nuitant, is enrolled in self and family coverage 

14 under this chapter, and has a member of the 

15 family who is eligible to enroll in Medicare part 

16 A and Medicare part B, may not continue cov17 erage under this chapter, unless— 

18 ‘‘(i) the family member enrolls in 

19 Medicare part A and Medicare part B dur20 ing the special enrollment period estab21 lished under section 1837(m) of the Social 

22 Security Act; or 

23 ‘‘(ii) the individual enrolls for self only 

24 coverage under this chapter. 


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1 ‘‘(B) FAMILY MEMBER BECOMES MEDI2 CARE ELIGIBLE.—An individual who, on the 

3 date of enactment of the 21st Century Postal 

4 Service Act of 2011, is a Postal Service Medi5 care eligible annuitant, is enrolled in self and 

6 family coverage under this chapter, and has a 

7 member of the family who becomes eligible to 

8 enroll in Medicare part A and Medicare part B 

9 after that date, may not continue coverage 

10 under this chapter, unless— 

11 ‘‘(i) the family member enrolls in 

12 Medicare part A and Medicare part B dur13 ing the applicable initial enrollment period 

14 under section 1837 of the Social Security 

15 Act (42 U.S.C. 1395p); or 

16 ‘‘(ii) the individual enrolls for self only 

17 coverage under this chapter. 

18 ‘‘(c) ENROLLMENT OPTIONS.— 

19 ‘‘(1) ESTABLISHMENT.—For contract years fol20 lowing the date of enactment of the 21st Century 

21 Postal Service Act of 2011, the Office shall establish 

22 enrollment options for health benefits plans that are 

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1 care eligible annuitants who continue coverage under 

2 this chapter in accordance with subsection (b). 

3 ‘‘(2) ENROLLMENT REQUIREMENT.—Any Post4 al Service Medicare eligible annuitant or family 

5 member of a Postal Service Medicare eligible annu6 itant who continues coverage under this chapter in 

7 accordance with subsection (b) may only enroll in 1 

8 of the enrollment options established under para9 graph (1). 

10 ‘‘(3) VALUE OF COVERAGE.—The Office shall 

11 ensure that the aggregate actuarial value of coverage 

12 under the enrollment options established under this 

13 subsection, in combination with the value of coverage 

14 under Medicare part A and Medicare part B, shall 

15 be not less than the actuarial value of the most 

16 closely corresponding enrollment options available 

17 under section 8905. 

18 ‘‘(4) ENROLLMENT OPTIONS.— 

19 ‘‘(A) IN GENERAL.—The enrollment op20 tions established under paragraph (1) shall in21 clude— 

22 ‘‘(i) an individual option, for Postal 

23 Service Medicare eligible annuitants sub24 ject to subsection (b)(1); 


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1 ‘‘(ii) a self and family option, for 

2 Postal Service Medicare eligible annuitants 

3 subject to subsection (b)(1) and family 

4 members of Postal Service Medicare eligi5 ble annuitants subject to subsection (b)(2); 

6 and 

7 ‘‘(iii) a self and family option, for 

8 Postal Service Medicare eligible annuitants 

9 subject to subsection (b)(1) and family 

10 members of Postal Service Medicare eligi11 ble annuitants, including family members 

12 not subject to subsection (b)(2). 

13 ‘‘(B) SPECIFIC SUB-OPTIONS.—The Office 

14 may establish more specific enrollment options 

15 within the types of options described under sub16 paragraph (A). 

17 ‘‘(5) REDUCED PREMIUMS TO ACCOUNT FOR

18 MEDICARE COORDINATION.—In determining the pre19 miums for the enrollment options under paragraph 

20 (4), the Office shall— 

21 ‘‘(A) establish a separate claims pool for 

22 individuals eligible for coverage under those op23 tions; and 

24 ‘‘(B) ensure that— 


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1 ‘‘(i) the premiums are reduced from 

2 the premiums otherwise established under 

3 this chapter to directly reflect the full cost 

4 savings to the health benefits plans due to 

5 the complete coordination of benefits with 

6 Medicare part A and Medicare part B for 

7 Postal Service Medicare eligible annuitants 

8 or family members of Postal Service Medi9 care eligible annuitants who continue cov10 erage under this chapter; and 

11 ‘‘(ii) the cost savings described under 

12 clause (i) result solely in the reduction 

13 of— 

14 ‘‘(I) the premiums paid by the 

15 Postal Service Medicare eligible annu16 itant; and 

17 ‘‘(II) the Government contribu18 tions paid by the Postal Service. 

19 ‘‘(d) CONVERSION OF ENROLLMENT.— 

20 ‘‘(1) IN GENERAL.—For any individual who en21 rolls in Medicare part A and Medicare part B in ac22 cordance with subsection (b) other than during the 

23 special enrollment period established under section 

24 1837(m) of the Social Security Act, coverage under 

25 this chapter shall be converted to coverage under the 


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1 applicable enrollment option established under sub2 section (c) upon enrollment in Medicare part A and 

3 Medicare part B. 

4 ‘‘(2) NOTIFICATION.—The Office shall provide 

5 reasonable advance notice to any Postal Service 

6 Medicare eligible annuitant or family member of any 

7 Postal Service Medicare eligible annuitant that such 

8 annuitant or family member will become subject to 

9 conversion of enrollment under paragraph (1). 

10 ‘‘(e) POSTAL SERVICE CONSULTATION.—The Office 

11 shall establish the enrollment options and premiums under 

12 this section in consultation with the Postal Service.’’. 

13 (2) TECHNICAL AND CONFORMING AMEND14 MENTS.—The table of sections for chapter 89 of title 

15 5, United States Code, is amended by inserting after 

16 the item relating to section 8903b the following: 

‘‘8903c. Postal Service Medicare eligible annuitants.’’. 

17 (3) EFFECTIVE DATE.—The amendments made 

18 by this subsection shall apply with respect to con19 tract years beginning 6 months following the date of 

20 enactment of this Act. 

21 (b) SPECIAL ENROLLMENT PERIOD FOR POSTAL

22 SERVICE MEDICARE ELIGIBLE ANNUITANTS.— 

23 (1) SPECIAL ENROLLMENT PERIOD.— 

24 (A) IN GENERAL.—Section 1837 of the So25 cial Security Act (42 U.S.C. 1395p) is amended 


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1 by adding at the end the following new sub2 section: 

3 ‘‘(m)(1) In the case of any individual who is a Postal 

4 Service Medicare eligible annuitant (as defined in section 

5 8903c(a) of title 5, United States Code) at the time the 

6 individual is entitled to part A under section 226(b) or 

7 section 226A and who is eligible to enroll but who has 

8 elected not to enroll (or to be deemed enrolled) during the 

9 individual’s initial enrollment period, there shall be a spe10 cial enrollment period described in paragraph (2). 

11 ‘‘(2) The special enrollment period described in this 

12 paragraph, with respect to an individual is the 6-month 

13 period, beginning on the first day of the month which in14 cludes the date of enactment of the 21st Century Postal 

15 Service Act of 2011. 

16 ‘‘(3) In the case of an individual who enrolls during 

17 the special enrollment period provided under paragraph 

18 (1), the coverage period under this part shall begin on the 

19 first day of the month in which the individual enrolls.’’. 

20 (B) EFFECTIVE DATE.—The amendment 

21 made by subparagraph (A) shall apply to elec22 tions made with respect to initial enrollment pe23 riods that end after the date of enactment of 

24 the 21st Century Postal Service Act of 2011. 


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1 (2) WAIVER OF INCREASE OF PREMIUM.—Sec2 tion 1839(b) of the Social Security Act (42 U.S.C. 

3 1395r(b)) is amended by striking ‘‘(i)(4) or (l)’’ and 

4 inserting ‘‘(i)(4), (l), or (m)’’. 

5 SEC. 104. RESTRUCTURING OF PAYMENTS FOR RETIREE 

6 HEALTH BENEFITS. 

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

8 5, United States Code, is amended by striking ‘‘through 

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

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

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

12 2011’’. 

13 (b) POSTAL SERVICE RETIREE HEALTH BENEFITS

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

15 amended— 

16 (1) in subsection (d)— 

17 (A) in paragraph (2)(B)— 

18 (i) by striking ‘‘2017’’ and inserting 

19 ‘‘2012’’; and 

20 (ii) by inserting after ‘‘later, of’’ the 

21 following: ‘‘80 percent of’’; and 

22 (B) in paragraph (3)— 

23 (i) in subparagraph (A)— 

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

25 ‘‘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 ‘‘2012’’; and 

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

9 ‘‘(e) Subsections (a) through (d) shall be subject to 

10 section 105 of the 21st Century Postal Service Act of 

11 2011.’’. 

12 SEC. 105. POSTAL SERVICE HEALTH BENEFITS PROGRAM. 

13 (a) DEFINITIONS.—In this section— 

14 (1) the term ‘‘covered employee’’ means an em15 ployee of the Postal Service who is represented by a 

16 bargaining representative recognized under section 

17 1203 of title 39, United States Code; 

18 (2) the term ‘‘Federal Employee Health Bene19 fits Program’’ means the health benefits program 

20 under chapter 89 of title 5, United States Code; and 

21 (3) the term ‘‘Postal Service Health Benefits 

22 Program’’ means the health benefits program that 

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

24 (b) COLLECTIVE BARGAINING.— 


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1 (1) IN GENERAL.—Consistent with section 

2 1005(f) of title 39, United States Code, the Postal 

3 Service may negotiate jointly with all bargaining 

4 representatives recognized under section 1203 of 

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

6 collective bargaining agreement with those bar7 gaining representatives to establish the Postal Serv8 ice Health Benefits Program that satisfies the condi9 tions under subsection (c). The Postal Service and 

10 the bargaining representatives shall negotiate in con11 sultation with the Director of the Office of Per12 sonnel Management. 

13 (2) ARBITRATION LIMITATION.—Notwith14 standing chapter 12 of title 39, United States Code, 

15 there shall not be arbitration of any dispute in the 

16 negotiations under this subsection. 

17 (3) TIME LIMITATION.—The authority under 

18 this subsection shall extend until September 30, 

19 2012. 

20 (c) POSTAL SERVICE HEALTH BENEFITS PRO21 GRAM.—The Postal Service Health Benefits Program— 

22 (1) shall— 

23 (A) be available for participation by all 

24 covered employees; 


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1 (B) provide adequate and appropriate 

2 health benefits; 

3 (C) be administered by the Postmaster 

4 General; and 

5 (D) provide for transition of coverage 

6 under the Federal Employee Health Benefits 

7 Program of covered employees to coverage 

8 under the Postal Service Health Benefits Pro9 gram on January 1, 2013; 

10 (2) may provide dental benefits; and 

11 (3) may provide vision benefits. 

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

13 agreement is reached under subsection (b)— 

14 (1) the Postal Service shall implement the Post15 al Service Health Benefits Program; 

16 (2) the Postal Service Health Benefits Program 

17 shall constitute an agreement between the collective 

18 bargaining representatives and the Postal Service for 

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

20 States Code; and 

21 (3) covered employees may not participate as 

22 employees in the Federal Employees Health Benefits 

23 Program. 

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

25 Benefits Program shall be a government plan as that term 


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1 is defined under section 3(32) of Employee Retirement In2 come Security Act of 1974 (29 U.S.C. 1002(32)). 

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

4 Postal Service shall submit a report to the Committee on 

5 Homeland Security and Governmental Affairs of the Sen6 ate and the Committee on Oversight and Government Re7 form of the House of Representatives that— 

8 (1) reports on the implementation of this sec9 tion; and 

10 (2) requests any additional statutory authority 

11 that the Postal Service determines is necessary to 

12 carry out the purposes of this section. 

13 SEC. 106. ARBITRATION; LABOR DISPUTES. 

14 Section 1207(c)(2) of title 39, United States Code, 

15 is amended— 

16 (1) by inserting ‘‘(A)’’ after ‘‘(2)’’; 

17 (2) by striking the last sentence and inserting 

18 ‘‘The arbitration board shall render a decision not 

19 later than 45 days after the date of its appoint20 ment.’’; and 

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

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

23 the arbitration board shall consider such relevant factors 

24 as— 


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1 ‘‘(i) the financial condition of the Postal Serv2 ice; 

3 ‘‘(ii) the requirements relating to pay and com4 pensation comparability under section 1003(a); and 

5 ‘‘(iii) the policies of this title.’’. 

6 TITLE II—POSTAL SERVICES 

7 AND OPERATIONS 

8 SEC. 201. POSTAL FACILITIES. 

9 Section 404 of title 39, United States Code, is 

10 amended by adding after subsection (e) the following: 

11 ‘‘(f) CLOSING OR CONSOLIDATION OF CERTAIN

12 POSTAL FACILITIES.— 

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

14 term ‘postal facility’ does not include— 

15 ‘‘(A) any post office, station, or branch; or 

16 ‘‘(B) any facility used only for administra17 tive functions. 

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

19 ‘‘(A) NEW AREA MAIL PROCESSING STUD20 IES.—After the date of enactment of this sub21 section, before making a determination under 

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

23 closing or consolidation of any postal facility, 

24 the Postal Service shall— 


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1 ‘‘(i) conduct an area mail processing 

2 study relating to that postal facility that 

3 includes a plan to reduce the capacity of 

4 the postal facility, but not close the postal 

5 facility; 

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

7 Service website; and 

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

9 is complete and available to the public, in10 cluding on the Postal Service website. 

11 ‘‘(B) COMPLETED OR ONGOING AREA MAIL

12 PROCESSING STUDIES.— 

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

14 postal facility described in clause (ii), the 

15 Postal Service shall— 

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

17 capacity of the postal facility, but not 

18 close the post facility; and 

19 ‘‘(II) publish the results of the 

20 consideration under subclause (I) with 

21 or as an amendment to the area mail 

22 processing study relating to the postal 

23 facility. 

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

25 facility described in this clause is a postal 


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1 facility for which, on or before the date of 

2 enactment of this subsection— 

3 ‘‘(I) an area mail processing 

4 study that does not include a plan to 

5 reduce the capacity of the postal facil6 ity, but not close the facility, has been 

7 completed or is in progress; and 

8 ‘‘(II) a determination as to the 

9 necessity for the closing or consolida10 tion of the postal facility has not been 

11 made. 

12 ‘‘(3) NOTICE; PUBLIC COMMENT; AND PUBLIC

13 HEARING.—If the Postal Service makes a determina14 tion under subsection (a)(3) to close or consolidate 

15 a postal facility, the Postal Service shall— 

16 ‘‘(A) provide notice of the determination 

17 to— 

18 ‘‘(i) Congress; and 

19 ‘‘(ii) the Postal Regulatory Commis20 sion; 

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

22 intention of the Postal Service to close or con23 solidate the postal facility; 

24 ‘‘(C) ensure that interested persons have 

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1 ing a 45-day period after the notice of intention 

2 is provided under subparagraph (B); 

3 ‘‘(D) before that 45-day period provide for 

4 public notice of that opportunity by— 

5 ‘‘(i) publication on the Postal Service 

6 website; 

7 ‘‘(ii) posting at the affected postal fa8 cility; and 

9 ‘‘(iii) advertising the date and location 

10 of the public community meeting under 

11 subparagraph (E); and 

12 ‘‘(E) during the 45-day period described 

13 under subparagraph (C), conduct a public com14 munity meeting that provides an opportunity 

15 for public comments to be submitted verbally or 

16 in writing. 

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

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

19 public comment under paragraph (3), the Postal 

20 Service, in making a determination whether or not 

21 to close or consolidate a postal facility, shall con22 sider— 

23 ‘‘(A) the views presented by interested per24 sons solicited under paragraph (3); 


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1 ‘‘(B) the effect of the closing or consolida2 tion on the affected community, including any 

3 disproportionate impact the closure or consoli4 dation may have on a State, region, or locality; 

5 ‘‘(C) the effect of the closing or consolida6 tion on the travel times and distances for af7 fected customers to access services under the 

8 proposed closing or consolidation; 

9 ‘‘(D) the effect of the closing or consolida10 tion on delivery times for all classes of mail; 

11 ‘‘(E) any characteristics of certain geo12 graphical areas, such as remoteness, broadband 

13 internet availability, and weather-related obsta14 cles to using alternative facilities, that may re15 sult in the closing or consolidation having a 

16 unique effect; and 

17 ‘‘(F) any other factor the Postal Service 

18 determines is necessary. 

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

20 date on which the Postal Service closes or consoli21 dates a postal facility, the Postal Service shall post 

22 on the Postal Service website a closure or consolida23 tion justification statement that includes— 


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1 ‘‘(A) a response to all public comments re2 ceived with respect to the considerations de3 scribed under paragraph (4); 

4 ‘‘(B) a description of the considerations 

5 made by the Postal Service under paragraph 

6 (4); and 

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

8 Postal Service to mitigate any negative effects 

9 identified under paragraph (4). 

10 ‘‘(6) CLOSING OR CONSOLIDATION OF POSTAL

11 FACILITIES.— 

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

13 15 days after posting and publishing the final 

14 determination and the justification statement 

15 under paragraph (6) with respect to a postal fa16 cility, the Postal Service may close or consoli17 date the postal facility. 

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

19 the Postal Service closes or consolidates a post20 al facility under subparagraph (A), the Postal 

21 Service shall make reasonable efforts to ensure 

22 continued mail receipt from customers of the 

23 closed or consolidated postal facility at the 

24 same location or at another appropriate location 


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1 in close geographic proximity to the closed or 

2 consolidated postal facility. 

3 ‘‘(7) POSTAL SERVICE WEBSITE.—For purposes 

4 of any notice required to be published on the Postal 

5 Service website under this subsection, the Postal 

6 Service shall ensure that the Postal Service 

7 website— 

8 ‘‘(A) is updated routinely; and 

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

10 the person, the opportunity to receive relevant 

11 updates by electronic mail.’’. 

12 SEC. 202. ADDITIONAL POSTAL SERVICE PLANNING. 

13 Section 302(d) of the Postal Accountability and En14 hancement Act of 2006 (39 U.S.C. 3691 note) is amend15 ed— 

16 (1) in paragraph (8), by striking the period at 

17 the end and inserting ‘‘; and’’; 

18 (2) by redesignating paragraphs (1) through 

19 (8) as subparagraphs (A) through (H), respectively, 

20 and adjusting the margins accordingly; 

21 (3) in the matter preceding subparagraph (A), 

22 as so redesignated, by striking ‘‘shall include’’ and 

23 inserting the following: ‘‘shall— 

24 ‘‘(1) include’’; and 

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


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1 ‘‘(2) where possible, provide for an improve2 ment in customer access to postal services; 

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

4 Postal Service relating to the implementation of the 

5 plan on small communities and rural areas; and 

6 ‘‘(4) ensure that— 

7 ‘‘(A) small communities and rural areas 

8 continue to receive regular and effective access 

9 to retail postal services after implementation of 

10 the plan; and 

11 ‘‘(B) the Postal Service solicits community 

12 input in accordance with applicable provisions 

13 of Federal law.’’. 

14 SEC. 203. AREA AND DISTRICT OFFICE STRUCTURE. 

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

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

17 submit to the Committee on Homeland Security and Gov18 ernmental Affairs of the Senate and the Committee on 

19 Oversight and Governmental Reform of the House of Rep20 resentatives— 

21 (1) a comprehensive strategic plan to govern 

22 decisions relating to area and district office struc23 ture that considers efficiency, costs, redundancies, 

24 mail volume, technological advancements, oper25 ational considerations, and other issues that may be 


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1 relevant to establishing an effective area and district 

2 office structure; and 

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

4 provides for consolidation of area and district offices 

5 wherever the Postal Service determines a consolida6 tion would— 

7 (A) be cost-effective; and 

8 (B) not substantially and adversely affect 

9 the operations of the Postal Service. 

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

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

12 Service shall, consistent with the plans required under 

13 subsection (a)— 

14 (1) consolidate district offices that are located 

15 within 50 miles of each other; 

16 (2) consolidate area and district offices that 

17 have less than the mean mail volume and number of 

18 work hours for all area and district offices; and 

19 (3) relocate area offices to headquarters. 

20 (c) UPDATES.—The Postal Service shall update the 

21 plans required under subsection (a) not less frequently 

22 than once every 5 years. 

23 SEC. 204. RETAIL SERVICE STANDARDS. 

24 (a) ESTABLISHMENT OF SERVICE STANDARDS.—Not 

25 later than 1 year after the date of enactment of this Act, 


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1 the Postal Service shall exercise its authority under sec2 tion 3691 of title 39, United States Code, to establish 

3 service standards for market-dominant products in order 

4 to guarantee customers of the Postal Service regular and 

5 effective access to retail postal services nationwide (includ6 ing in territories and possessions of the United States) 

7 on a reasonable basis. 

8 (b) CONTENTS.—The service standards established 

9 under subsection (a) 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), as amended by section 202 of this Act; 

18 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; 


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1 (B) population, including population den2 sity, demographic factors such as the age and 

3 disability status of individuals in the area to be 

4 served by a location providing postal retail serv5 ices, and other factors that may impact the 

6 ability of postal customers, including busi7 nesses, to travel to a postal retail location; 

8 (C) the feasibility of offering retail access 

9 to postal services in addition to post offices, as 

10 described in section 302(d) of the Postal Ac11 countability and Enhancement Act of 2006 (39 

12 U.S.C. 3691 note); and 

13 (D) the requirement that the Postal Serv14 ice serve remote areas and communities with 

15 transportation challenges, including commu16 nities in which the effects of inclement weather 

17 or other natural conditions might obstruct or 

18 otherwise impede access to retail postal serv19 ices. 

20 SEC. 205. CONVERSION OF DOOR DELIVERY POINTS. 

21 (a) IN GENERAL.—Subchapter VII of chapter 36 of 

22 title 39, United States Code, is amended by adding at the 

23 end the following: 


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1 ‘‘§ 3692. Conversion of door delivery points 

2 ‘‘(a) DEFINITIONS.—In this section, the following 

3 definitions shall apply: 

4 ‘‘(1) CENTRALIZED DELIVERY POINT.—The 

5 term ‘centralized delivery point’ means a group or 

6 cluster of mail receptacles at 1 delivery point that is 

7 within reasonable proximity of the street address as8 sociated with the delivery point. 

9 ‘‘(2) CURBLINE DELIVERY POINT.—The term 

10 ‘curbline delivery point’ means a delivery point that 

11 is— 

12 ‘‘(A) adjacent to the street address associ13 ated with the delivery point; and 

14 ‘‘(B) accessible by vehicle on a street that 

15 is not a private driveway. 

16 ‘‘(3) DOOR DELIVERY POINT.—The term ‘door 

17 delivery point’ means a delivery point at a door of 

18 the structure at a street address. 

19 ‘‘(4) SIDEWALK DELIVERY POINT.—The term 

20 ‘sidewalk delivery point’ means a delivery point on a 

21 sidewalk adjacent to the street address associated 

22 with the delivery point. 

23 ‘‘(b) CONVERSION.—Except as provided in subsection 

24 (c), not later than September 30, 2015, in accordance with 

25 standards established by the Postal Service, the Postal 


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1 Service may, where feasible, convert door delivery points 

2 to— 

3 ‘‘(1) curbline delivery points; 

4 ‘‘(2) sidewalk delivery points; or 

5 ‘‘(3) centralized delivery points. 

6 ‘‘(c) EXCEPTIONS.— 

7 ‘‘(1) CONTINUED DOOR DELIVERY.—The Postal 

8 Service may allow for the continuation of door deliv9 ery due to— 

10 ‘‘(A) a physical hardship of a customer; 

11 ‘‘(B) weather, in a geographic area where 

12 snow removal efforts could obstruct access to 

13 mailboxes near a road; 

14 ‘‘(C) circumstances in an urban area that 

15 preclude efficient use of curbside delivery 

16 points; 

17 ‘‘(D) other exceptional circumstances, as 

18 determined in accordance with regulations 

19 issued by the Postal Service; or 

20 ‘‘(E) other circumstances in which the 

21 Postal Service determines that alternatives to 

22 door delivery would not be practical or cost ef23 fective. 

24 ‘‘(2) NEW DOOR DELIVERY POINTS.—The Post25 al Service may provide door delivery to a new delivVerDate Mar 15 2010 04:24 Nov 04, 2011 Jkt 019200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\S1789.IS S1789

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1 ery point in a delivery area that received door deliv2 ery on the day before the date of enactment of this 

3 section, if the delivery point is established before the 

4 delivery area is converted from door delivery under 

5 subsection (b). 

6 ‘‘(d) SOLICITATION OF COMMENTS.—The Postal 

7 Service shall establish procedures to solicit, consider, and 

8 respond to input from individuals affected by a conversion 

9 under this section. 

10 ‘‘(e) REVIEW.—Subchapter V of this chapter shall 

11 not apply with respect to any action taken by the Postal 

12 Service under this section. 

13 ‘‘(f) REPORT.—Not later than 60 days after the end 

14 of each fiscal year through fiscal year 2015, the Postal 

15 Service shall submit to Congress and the Inspector Gen16 eral of the Postal Service a report on the implementation 

17 of this section during the preceding fiscal year that— 

18 ‘‘(1) includes the number of door delivery 

19 points— 

20 ‘‘(A) that existed at the end of the fiscal 

21 year preceding the preceding fiscal year; 

22 ‘‘(B) that existed at the end of the pre23 ceding fiscal year; 

24 ‘‘(C) that, during the preceding fiscal year, 

25 converted to— 


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1 ‘‘(i) curbline delivery points or side2 walk delivery points; 

3 ‘‘(ii) centralized delivery points; and 

4 ‘‘(iii) any other type of delivery point; 

5 and 

6 ‘‘(D) for which door delivery was continued 

7 under subsection (c)(1); 

8 ‘‘(2) estimates the cost savings from the conver9 sions from door delivery that occurred during the 

10 preceding fiscal year; 

11 ‘‘(3) describes the progress of the Postal Serv12 ice toward achieving the requirements under sub13 section (b); and 

14 ‘‘(4) provides such additional information as the 

15 Postal Service considers appropriate.’’. 

16 (b) CLERICAL AMENDMENT.—The table of sections 

17 for subchapter VII of chapter 36 of title 39, United States 

18 Code, is amended by adding at the end the following: 

‘‘3692. Conversion of door delivery points.’’. 

19 SEC. 206. LIMITATIONS ON CHANGES TO MAIL DELIVERY 

20 SCHEDULE. 

21 (a) LIMITATION ON CHANGE IN SCHEDULE.—Not22 withstanding any other provision of law— 

23 (1) the Postal Service may not establish a gen24 eral, nationwide 5-day-per-week delivery schedule to 

25 street addresses under the authority of the Postal 


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1 Service under section 3691 of title 39, United States 

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

3 the date of enactment of this Act; and 

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

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

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

7 delivery schedule to street addresses under the au8 thority of the Postal Service under section 3691 of 

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

10 the requirements and limitations under this section. 

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

12 to establish a change in delivery schedule under subsection 

13 (a)(2), the Postal Service shall— 

14 (1) identify customers and communities for 

15 whom the change may have a disproportionate, neg16 ative impact, including the customers identified as 

17 ‘‘particularly affected’’ in the Advisory Opinion on 

18 Elimination of Saturday Delivery issued by the Com19 mission on March 24, 2011; 

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

21 measures to ameliorate any disproportionate, nega22 tive impact the change would have on customers and 

23 communities identified under paragraph (1), includ24 ing, where appropriate, providing or expanding acVerDate Mar 15 2010 04:24 Nov 04, 2011 Jkt 019200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S1789.IS S1789

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1 cess to mailboxes for periodical mailers on days on 

2 which the Postal Service does not provide delivery; 

3 (3) implement measures to increase revenue 

4 and reduce costs, including the measures authorized 

5 under the amendments made by sections 101, 102, 

6 103, 104, 204, and 208 of this Act; 

7 (4) evaluate whether any increase in revenue or 

8 reduction in costs resulting from the measures im9 plemented under paragraph (3) are sufficient to 

10 allow the Postal Service, without implementing a 

11 change in delivery schedule under subsection (a), 

12 to— 

13 (A) become profitable by fiscal year 2015; 

14 and 

15 (B) achieve long-term financial solvency; 

16 and 

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

18 of enactment of this Act and not later than 9 

19 months before the effective date proposed by the 

20 Postal Service for the change, submit a report on 

21 the steps the Postal Service has taken to carry out 

22 this subsection to— 

23 (A) the Committee on Homeland Security 

24 and Governmental Affairs of the Senate and the 


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1 Committee on Oversight and Government Re2 form of the House of Representatives; 

3 (B) the Comptroller General of the United 

4 States; and 

5 (C) the Commission. 

6 (c) REVIEW.— 

7 (1) GOVERNMENT ACCOUNTABILITY OFFICE.— 

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

9 Postal Service submits a report under subsection 

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

11 Commission and to the Committee on Homeland Se12 curity and Governmental Affairs of the Senate and 

13 the Committee on Oversight and Government Re14 form of the House of Representatives a report that 

15 contains findings relating to each of the following: 

16 (A) Whether the Postal Service has ade17 quately complied with subsection (b)(3), taking 

18 into consideration the statutory authority of 

19 and limitations on the Postal Service. 

20 (B) The accuracy of any statement by the 

21 Postal Service that the measures implemented 

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

23 or reduced costs, and the accuracy of any pro24 jection by the Postal Service relating to in25 creased revenue or reduced costs resulting from 


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1 the measures implemented under subsection 

2 (b)(3). 

3 (C) The adequacy and methodological 

4 soundness of any evaluation conducted by the 

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

6 the Postal Service to assert the necessity of a 

7 change in delivery schedule under subsection 

8 (a)(2). 

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

10 measures implemented by the Postal Service to 

11 increase revenues and reduce costs, projections 

12 of increased revenue and cost savings, and the 

13 details of the profitability plan required under 

14 section 401, a change in delivery schedule is 

15 necessary to allow the Postal Service to— 

16 (i) become profitable by fiscal year 

17 2015; and 

18 (ii) achieve long-term financial sol19 vency. 

20 (2) POSTAL REGULATORY COMMISSION.— 

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

22 before the proposed effective date of a change 

23 in delivery schedule under subsection (a), the 

24 Postal Service shall submit to the Commission 


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1 a request for an advisory opinion relating to the 

2 change. 

3 (B) ADVISORY OPINION.— 

4 (i) IN GENERAL.—The Commission 

5 shall— 

6 (I) issue an advisory opinion with 

7 respect to a request under subpara8 graph (A), in accordance with the 

9 time limits for the issuance of advi10 sory opinions under section 

11 3661(b)(2) of title 39, United States 

12 Code, as amended by this Act; and 

13 (II) submit the advisory opinion 

14 to the Committee on Homeland Secu15 rity and Governmental Affairs of the 

16 Senate and the Committee on Over17 sight and Government Reform of the 

18 House of Representatives. 

19 (ii) REQUIRED DETERMINATIONS.— 

20 An advisory opinion under clause (i) shall 

21 determine— 

22 (I) whether the measures devel23 oped under subsection (b)(2) amelio24 rate any disproportionate, negative 

25 impact that a change in schedule may 


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1 have on customers and communities 

2 identified under subsection (b)(1); and 

3 (II) based on the report sub4 mitted by the Comptroller General 

5 under paragraph (1)— 

6 (aa) whether the Postal 

7 Service has implemented meas8 ures to reduce operating losses as 

9 required under subsection (b)(3); 

10 (bb) whether the implemen11 tation of the measures described 

12 in item (aa) has increased reve13 nues or reduced costs, or is pro14 jected to further increase reve15 nues or reduce costs in the fu16 ture; and 

17 (cc) whether a change in 

18 schedule under subsection (a)(2) 

19 is necessary to allow the Postal 

20 Service to— 

21 (AA) become profitable 

22 by fiscal year 2015; and 

23 (BB) achieve long-term 

24 financial solvency. 


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1 (3) PROHIBITION ON IMPLEMENTATION OF

2 CHANGE IN SCHEDULE.—The Postal Service may 

3 not implement a change in delivery schedule under 

4 subsection (a)(2)— 

5 (A) before the date on which the Comp6 troller General submits the report required 

7 under paragraph (1); and 

8 (B) unless the Commission determines 

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

10 Comptroller General has concluded that the 

11 change is necessary to allow the Postal Service 

12 to become profitable by fiscal year 2015 and to 

13 achieve long-term financial solvency, without re14 gard to whether the Commission determines 

15 that the change is advisable. 

16 (d) ADDITIONAL LIMITATIONS.— 

17 (1) RULES OF CONSTRUCTION.—Nothing in 

18 this subsection shall be construed to— 

19 (A) authorize the reduction, or require an 

20 increase, in delivery frequency for any route for 

21 which the Postal Service provided delivery on 

22 fewer than 6 days per week on the date of en23 actment of this Act; 

24 (B) authorize any change in— 


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1 (i) the days and times that postal re2 tail service or any mail acceptance is avail3 able; or 

4 (ii) the locations at which postal retail 

5 service or mail acceptance occurs; 

6 (C) authorize any change in the frequency 

7 of delivery to a post office box; 

8 (D) prohibit the collection or delivery of a 

9 competitive mail product on a weekend or a rec10 ognized Federal holiday; or 

11 (E) prohibit the Postal Service from exer12 cising its authority to make changes to proc13 essing or retail networks. 

14 (2) PROHIBITION ON CONSECUTIVE DAYS WITH15 OUT MAIL DELIVERY.—The Postal Service shall en16 sure that, under any change in schedule under sub17 section (a)(2), at no time shall there be more than 

18 2 consecutive days without mail delivery to street 

19 addresses, including recognized Federal holidays. 

20 SEC. 207. TIME LIMITS FOR CONSIDERATION OF SERVICE 

21 CHANGES. 

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

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

24 the following: 


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

2 PRODUCTS.— 

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

4 Service determines that there should be a change in 

5 the nature of postal services relating to market-dom6 inant products that will generally affect service on a 

7 nationwide or substantially nationwide basis, the 

8 Postal Service shall submit a proposal to the Postal 

9 Regulatory Commission requesting an advisory opin10 ion on the change. 

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

12 proposal under paragraph (1), the Postal Regulatory 

13 Commission shall— 

14 ‘‘(A) provide an opportunity for public 

15 comment on the proposal; and 

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

17 than— 

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

19 the Postal Regulatory Commission receives 

20 the proposal; or 

21 ‘‘(ii) a date that the Postal Regu22 latory Commission and the Postal Service 

23 may, not later than 1 week after the date 

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1 sion receives the proposal, determine joint2 ly. 

3 ‘‘(3) RESPONSE TO OPINION.—The Postal Serv4 ice shall submit to the President and to Congress a 

5 response to the advisory opinion issued under para6 graph (2), including any recommendations contained 

7 therein. 

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. 208. 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. 209. 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 2011, 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; and 

19 ‘‘(iv) has the potential to improve the 

20 net financial position of the Postal Service, 

21 based on a market analysis provided to the 

22 Postal Regulatory Commission by the 

23 Postal Service; and 

24 ‘‘(B) for services that the Postal Regu25 latory Commission determines meet the criteria 


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1 under subparagraph (A), classifies each such 

2 service as a market-dominant product, competi3 tive product, experimental product, or new 

4 product, as required under chapter 36 of title 

5 39, United States Code;’’; and 

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

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

8 inserting ‘‘The’’. 

9 (b) MARKET ANALYSIS.—During the 5-year period 

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

11 Service shall submit a copy of any market analysis pro12 vided to the Commission under section 404(a)(6)(A)(iv) 

13 of title 39, United States Code, as amended by this sec14 tion, to the Committee on Homeland Security and Govern15 mental Affairs of the Senate and the Committee on Over16 sight and Government Reform of the House of Represent17 atives. 

18 TITLE III—FEDERAL EMPLOY19 EES’ COMPENSATION ACT 

20 SEC. 301. SHORT TITLE; REFERENCES. 

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

22 ‘‘Workers’ Compensation Reform Act of 2011’’. 

23 (b) REFERENCES.—Except as otherwise expressly 

24 provided, whenever in this title an amendment or repeal 

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


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1 of, a section or other provision, the reference shall be con2 sidered to be made to a section or other provision of title 

3 5, United States Code. 

4 SEC. 302. FEDERAL WORKERS COMPENSATION REFORMS 

5 FOR RETIREMENT-AGE EMPLOYEES. 

6 (a) CONVERSION OF ENTITLEMENT AT RETIREMENT

7 AGE.— 

8 (1) DEFINITIONS.—Section 8101 is amended 

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

10 at the end; 

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

12 at the end; 

13 (C) in paragraph (20), by striking the pe14 riod at the end and inserting a semicolon; and 

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

16 ‘‘(21) ‘retirement age’ has the meaning given 

17 that term under section 216(l)(1) of the Social Secu18 rity Act (42 U.S.C. 416(l)(1)); 

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

20 a claim for a period of total disability that com21 menced before the date of enactment of the Work22 ers’ Compensation Reform Act of 2011; 

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

24 means a claim for a period of partial disability that 


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1 commenced before the date of enactment of the 

2 Workers’ Compensation Reform Act of 2011; and 

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

4 condition’ means an individual— 

5 ‘‘(A) who— 

6 ‘‘(i) is eligible to receive continuous 

7 periodic compensation for total disability 

8 under section 8105 on the date of enact9 ment of the Workers’ Compensation Re10 form Act of 2011; and 

11 ‘‘(ii) meets the criteria under 8105(c); 

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

13 Workers’ Compensation Reform Act of 2011— 

14 ‘‘(i) is eligible to receive continuous 

15 periodic compensation for total disability 

16 under section 8105; and 

17 ‘‘(ii) has sustained a currently irre18 versible severe mental or physical disability 

19 for which the Secretary of Labor has au20 thorized, for at least the 1 year period end21 ing on the date of enactment of the Work22 ers’ Compensation Reform Act of 2011, 

23 constant in-home care or custodial care, 

24 such as in placement in a nursing home; or 


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

2 periodic compensation for total disability under 

3 section 8105— 

4 ‘‘(i) for not less than the 3-year pe5 riod ending on the date of enactment of 

6 the Workers’ Compensation Reform Act of 

7 2011; or 

8 ‘‘(ii) if the individual became eligible 

9 to receive continuous periodic compensa10 tion for total disability under section 8105 

11 during the period beginning on the date 

12 that is 3 years before the date of enact13 ment of the Workers’ Compensation Re14 form Act of 2011 and ending on such date 

15 of enactment, for not less than the 3-year 

16 period beginning on the date on which the 

17 individual became eligible.’’. 

18 (2) TOTAL DISABILITY.—Section 8105 is 

19 amended— 

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

21 inserting ‘‘IN GENERAL.—Subject to subsection 

22 (b), if’’; 

23 (B) by redesignating subsection (b) as sub24 section (c); and 


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

2 following: 

3 ‘‘(b) CONVERSION OF ENTITLEMENT AT RETIRE4 MENT AGE.— 

5 ‘‘(1) IN GENERAL.—Except as provided in para6 graph (2), the basic compensation for total disability 

7 for an employee who has attained retirement age 

8 shall be 50 percent of the monthly pay of the em9 ployee. 

10 ‘‘(2) EXCEPTIONS.— 

11 ‘‘(A) COVERED RECIPIENTS WHO ARE RE12 TIREMENT AGE OR HAVE AN EXEMPT DIS13 ABILITY CONDITION.—Paragraph (1) shall not 

14 apply to a covered claim for total disability by 

15 an employee if the employee— 

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

17 Workers’ Compensation Reform Act of 

18 2011, has attained retirement age; or 

19 ‘‘(ii) is an individual who has an ex20 empt disability condition. 

21 ‘‘(B) TRANSITION PERIOD FOR CERTAIN

22 EMPLOYEES.—For a covered claim for total dis23 ability by an employee who is not an employee 

24 described in subparagraph (A), the employee 

25 shall receive the basic compensation for total 


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1 disability provided under subsection (a) until 

2 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 2011.’’. 

8 (3) PARTIAL DISABILITY.—Section 8106 is 

9 amended— 

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

11 inserting ‘‘IN GENERAL.—Subject to subsection 

12 (b), if’’; 

13 (B) by redesignating subsections (b) and 

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

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

16 following: 

17 ‘‘(b) CONVERSION OF ENTITLEMENT AT RETIRE18 MENT AGE.— 

19 ‘‘(1) IN GENERAL.—Except as provided in para20 graph (2), the basic compensation for partial dis21 ability for an employee who has attained retirement 

22 age shall be 50 percent of the difference between the 

23 monthly pay of the employee and the monthly wage24 earning capacity of the employee after the beginning 

25 of the partial disability. 


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1 ‘‘(2) EXCEPTIONS.— 

2 ‘‘(A) COVERED RECIPIENTS WHO ARE RE3 TIREMENT AGE.—Paragraph (1) shall not apply 

4 to a covered claim for partial disability by an 

5 employee if, on the date of enactment of the 

6 Workers’ Compensation Reform Act of 2011, 

7 the employee has attained retirement age. 

8 ‘‘(B) TRANSITION PERIOD FOR CERTAIN

9 EMPLOYEES.—For a covered claim for partial 

10 disability by an employee who is not an em11 ployee described in subparagraph (A), the em12 ployee shall receive basic compensation for par13 tial disability in accordance with subsection (a) 

14 until the later of— 

15 ‘‘(i) the date on which the employee 

16 attains retirement age; and 

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

18 date of enactment of the Workers’ Com19 pensation Reform Act of 2011.’’. 

20 SEC. 303. AUGMENTED COMPENSATION FOR DEPENDENTS. 

21 (a) IN GENERAL.—Section 8110 is amended— 

22 (1) by redesignating subsection (b) as sub23 section (c); and 

24 (2) by inserting after subsection (a) the fol25 lowing: 


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1 ‘‘(b) TERMINATION OF AUGMENTED COMPENSA2 TION.— 

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

4 augmented compensation for dependants under sub5 section (c) shall not be provided. 

6 ‘‘(2) EXCEPTIONS.— 

7 ‘‘(A) TOTAL DISABILITY.—For a covered 

8 claim for total disability by an employee— 

9 ‘‘(i) the employee shall receive aug10 mented compensation under subsection (c) 

11 if the employee is an individual who has an 

12 exempt disability condition; and 

13 ‘‘(ii) the employee shall receive aug14 mented compensation under subsection (c) 

15 until the date that is 3 years after the date 

16 of enactment of the Workers’ Compensa17 tion Reform Act of 2011 if the employee is 

18 not an employee described in clause (i). 

19 ‘‘(B) PARTIAL DISABILITY.—For a covered 

20 claim for partial disability by an employee, the 

21 employee shall receive augmented compensation 

22 under subsection (c) until the date that is 3 

23 years after the date of enactment of the Work24 ers’ Compensation Reform Act of 2011. 


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1 ‘‘(C) PERMANENT DISABILITY COM2 PENSATED BY A SCHEDULE.—For a claim for a 

3 permanent disability described in section 

4 8107(a) by an employee that commenced before 

5 the date of enactment of the Workers’ Com6 pensation Reform Act of 2011, the employee 

7 shall receive augmented compensation under 

8 subsection (c).’’. 

9 (b) MAXIMUM AND MINIMUM MONTHLY PAY10 MENTS.—Section 8112 is amended— 

11 (1) in subsection (a)— 

12 (A) by inserting ‘‘subsections (b) and (c) 

13 and’’ before ‘‘section 8138’’; 

14 (B) by striking ‘‘including augmented com15 pensation under section 8110 of this title but’’; 

16 and 

17 (C) by striking ‘‘75 percent’’ each place it 

appears and inserting ‘‘662 18 ⁄3 percent’’; 

19 (2) by redesignating subsection (b) as sub20 section (c); 

21 (3) by inserting after subsection (a) the fol22 lowing: 

23 ‘‘(b) EXCEPTIONS.— 

24 ‘‘(1) COVERED DISABILITY CONDITION.—For a 

25 covered claim for total disability by an employee, if 


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1 the employee is an individual who has an exempt 

2 disability condition— 

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. 

11 ‘‘(2) PARTIAL DISABILITY.—For a covered 

12 claim for partial disability by an employee, until the 

13 date that is 3 years after the date of enactment of 

14 the Workers’ Compensation Reform Act of 2011— 

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.’’; and 

23 (4) in subsection (c), as redesignated by para24 graph (2), by striking ‘‘subsection (a)’’ and inserting 

25 ‘‘subsections (a) and (b)’’. 


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1 (c) DEATH BENEFITS GENERALLY.—Section 8133 is 

2 amended— 

3 (1) in subsections (a) and (e), by striking ‘‘75 

percent’’ each place it appears and inserting ‘‘662 4 ⁄3

5 percent (except as provided in subsection (g))’’; and 

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

7 ‘‘(g) If the death occurred before the date of enact8 ment of the Workers’ Compensation Reform Act of 2011, 

9 subsections (a) and (e) shall be applied by substituting 

‘75 percent’ for ‘662 10 ⁄3 percent’ each place it appears.’’. 

11 (d) DEATH BENEFITS FOR CIVIL AIR PATROL VOL12 UNTEERS.—Section 8141 is amended— 

13 (1) in subsection (b)(2)(B) by striking ‘‘75 percent’’ and inserting ‘‘662 14 ⁄3 percent (except as pro15 vided in subsection (c))’’; 

16 (2) by redesignating subsection (c) as sub17 section (d); and 

18 (3) by inserting after subsection (b) the fol19 lowing: 

20 ‘‘(c) If the death occurred before the date of enact21 ment of the Workers’ Compensation Reform Act of 2011, 

22 subsection (b)(2)(B) shall be applied by substituting ‘75 

percent’ for ‘662 23 ⁄3 percent’.’’. 

24 SEC. 304. SCHEDULE COMPENSATION PAYMENTS. 

25 Section 8107 is amended— 


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1 (1) in subsection (a), by striking ‘‘at the rate 

2 of 66 2/3 percent of his monthly pay’’ and inserting 

3 ‘‘at the rate specified under subsection (d)’’; and 

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

5 ‘‘(d) RATE FOR COMPENSATION.— 

6 ‘‘(1) ANNUAL SALARY.— 

7 ‘‘(A) IN GENERAL.—Except as provided in 

8 paragraph (2), the rate under subsection (a) 

shall be the rate of 662 9 ⁄3 percent of the annual 

10 salary level established under subparagraph 

11 (B), in a lump sum equal to the present value 

12 (as calculated under subparagraph (C)) of the 

13 amount of compensation payable under the 

14 schedule. 

15 ‘‘(B) ESTABLISHMENT.— 

16 ‘‘(i) IN GENERAL.—The Secretary of 

17 Labor shall establish an annual salary for 

18 purposes of subparagraph (A) in the 

19 amount the Secretary determines will re20 sult in the aggregate cost of payments 

21 made under this section being equal to 

22 what would have been the aggregate cost 

23 of payments under this section if the 

24 amendments made by section 304(a) of the 


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1 Workers’ Compensation Reform Act of 

2 2011 had not been enacted. 

3 ‘‘(ii) COST OF LIVING ADJUSTMENT.— 

4 The annual salary established under clause 

5 (i) shall be increased on March 1 of each 

6 year by the amount determined by the Sec7 retary of Labor to represent the percent 

8 change in the price index published for De9 cember of the preceding year over the price 

10 index published for the December of the 

11 year prior to the preceding year, adjusted 

12 to the nearest one-tenth of 1 percent. 

13 ‘‘(C) PRESENT VALUE.—The Secretary of 

14 Labor shall calculate the present value for pur15 poses of subparagraph (A) using a rate of inter16 est equal to the average market yield for out17 standing marketable obligations of the United 

18 States with a maturity of 2 years on the first 

19 business day of the month in which the com20 pensation is paid or, in the event that such 

21 marketable obligations are not being issued on 

22 such date, at an equivalent rate selected by the 

23 Secretary of Labor, true discount compounded 

24 annually. 


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1 ‘‘(2) CERTAIN INJURIES.—For an injury that 

2 occurred before the date of enactment of the Work3 ers’ Compensation Reform Act of 2011, the rate 

under subsection (a) shall be 662 4 ⁄3 percent of the 

5 employee’s monthly pay. 

6 ‘‘(e) SIMULTANEOUS RECEIPT.— 

7 ‘‘(1) TOTAL DISABILITY.—An employee who re8 ceives compensation for total disability under section 

9 8105 may only receive the lump sum of schedule 

10 compensation under this section in addition to and 

11 simultaneously with the benefits for total disability 

12 after the later of— 

13 ‘‘(A) the date on which the basic com14 pensation for total disability of the employee be15 comes 50 percent of the monthly pay of the em16 ployee under section 8105(b); or 

17 ‘‘(B) the date on which augmented com18 pensation of the employee terminates under sec19 tion 8110(b)(2)(A)(ii), if the employee receives 

20 such compensation. 

21 ‘‘(2) PARTIAL DISABILITY.—An employee who 

22 receives benefits for partial disability under section 

23 8106 may only receive the lump sum of schedule 

24 compensation under this section in addition to and 


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1 simultaneously with the benefits for partial disability 

2 after the later of— 

3 ‘‘(A) the date on which the basic com4 pensation for partial disability of the employee 

5 becomes 50 percent of the difference between 

6 the monthly pay of the employee and the 

7 monthly wage-earning capacity of the employee 

8 after the beginning of the partial disability 

9 under section 8106(b); or 

10 ‘‘(B) the date on which augmented com11 pensation of the employee terminates under sec12 tion 8110(b)(2)(B), if the employee receives 

13 such compensation.’’. 

14 SEC. 305. VOCATIONAL REHABILITATION. 

15 (a) IN GENERAL.—Section 8104 is amended— 

16 (1) in subsection (a)— 

17 (A) by striking ‘‘(a) The Secretary of 

18 Labor may’’ and all that follows through ‘‘un19 dergo vocational rehabilitation.’’ and inserting 

20 the following: 

21 ‘‘(a) IN GENERAL.— 

22 ‘‘(1) DIRECTION.—Except as provided in para23 graph (2), not earlier than the date that is 6 months 

24 after the date on which an individual eligible for 

25 wage-loss compensation under section 8105 or 8106 


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1 is injured, or by such other date as the Secretary of 

2 Labor determines it would be reasonable under the 

3 circumstances for the individual to begin vocational 

4 rehabilitation, and if vocational rehabilitation may 

5 enable the individual to become capable of more 

6 gainful employment, the Secretary of Labor shall di7 rect the individual to participate in developing a 

8 comprehensive return to work plan and to undergo 

9 vocational rehabilitation at a location a reasonable 

10 distance from the residence of the individual.’’; 

11 (B) by striking ‘‘the Secretary of Health, 

12 Education, and Welfare in carrying out the pur13 poses of chapter 4 of title 29’’ and inserting 

14 ‘‘the Secretary of Education in carrying out the 

15 purposes of the Rehabilitation Act of 1973 (29 

16 U.S.C. 701 et seq.)’’; 

17 (C) by striking ‘‘under section 32(b)(1) of 

18 title 29’’ and inserting ‘‘under section 5 of the 

19 Rehabilitation Act of 1973 (29 U.S.C. 704)’’; 

20 and 

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

22 ‘‘(2) EXCEPTION.—The Secretary of Labor may 

23 not direct an individual who has attained retirement 

24 age to participate in developing a comprehensive reVerDate Mar 15 2010 04:24 Nov 04, 2011 Jkt 019200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\S1789.IS S1789

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1 turn to work plan or to undergo vocational rehabili2 tation.’’; 

3 (2) by redesignating subsection (b) as sub4 section (c); 

5 (3) by inserting after subsection (a) the fol6 lowing: 

7 ‘‘(b) CONTENTS OF RETURN TO WORK PLAN.—A re8 turn to work plan developed under subsection (a)— 

9 ‘‘(1) shall— 

10 ‘‘(A) set forth specific measures designed 

11 to increase the wage-earning capacity of an in12 dividual; 

13 ‘‘(B) take into account the prior training 

14 and education of the individual and the train15 ing, educational, and employment opportunities 

16 reasonably available to the individual; and 

17 ‘‘(C) provide that any employment under18 taken by the individual under the return to 

19 work plan be at a location a reasonable distance 

20 from the residence of the individual; 

21 ‘‘(2) may provide that the Secretary will pay 

22 out of amounts in the Employees’ Compensation 

23 Fund reasonable expenses of vocational rehabilita24 tion (which may include tuition, books, training fees, 


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1 supplies, equipment, and child or dependent care) 

2 during the course of the plan; and 

3 ‘‘(3) may not be for a period of more than 2 

4 years, unless the Secretary finds good cause to grant 

5 an extension, which may be for not more than 2 

6 years.’’; 

7 (4) in subsection (c), as so redesignated— 

8 (A) by inserting ‘‘COMPENSATION.—’’ be9 fore ‘‘Notwithstanding’’; and 

10 (B) by striking ‘‘, other than employment 

11 undertaken pursuant to such rehabilitation’’; 

12 and 

13 (5) by adding at the end the following: 

14 ‘‘(d) ASSISTED REEMPLOYMENT AGREEMENTS.— 

15 ‘‘(1) IN GENERAL.—The Secretary may enter 

16 into an assisted reemployment agreement with an 

17 agency or instrumentality of any branch of the Fed18 eral Government or a State or local government or 

19 a private employer that employs an individual eligi20 ble for wage-loss compensation under section 8105 

21 or 8106 to enable the individual to return to produc22 tive employment. 

23 ‘‘(2) CONTENTS.—An assisted reemployment 

24 agreement under paragraph (1)— 


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1 ‘‘(A) may provide that the Secretary will 

2 use amounts in the Employees’ Compensation 

3 Fund to reimburse an employer in an amount 

4 equal to not more than 100 percent of the com5 pensation the individual would otherwise receive 

6 under section 8105 or 8106; and 

7 ‘‘(B) may not be for a period of more than 

8 3 years. 

9 ‘‘(e) LIST.—To facilitate the hiring of individuals eli10 gible for wage-loss compensation under section 8105 or 

11 8106, the Secretary shall provide a list of such individuals 

12 to the Office of Personnel Management, which the Office 

13 of Personnel Management shall provide to all agencies and 

14 instrumentalities of the Federal Government.’’. 

15 (b) TERMINATION OF VOCATIONAL REHABILITATION

16 REQUIREMENT AFTER RETIREMENT AGE.—Section 

17 8113(b) is amended by adding at the end the following: 

18 ‘‘An individual who has attained retirement age may not 

19 be required to undergo vocational rehabilitation.’’. 

20 (c) MANDATORY BENEFIT REDUCTION FOR NON21 COMPLIANCE.—Section 8113(b) is amended by striking 

22 ‘‘may reduce’’ and inserting ‘‘shall reduce’’. 

23 (d) TECHNICAL AND CONFORMING AMENDMENTS.— 


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1 (1) IN GENERAL.—Subchapter III of chapter 

2 15 of title 31, United States Code, is amended by 

3 adding at the end the following: 

4 ‘‘§ 1538. Authorization for assisted reemployment 

5 ‘‘Funds may be transferred from the Employees’ 

6 Compensation Fund established under section 8147 of 

7 title 5 to the applicable appropriations account for an 

8 agency or instrumentality of any branch of the Federal 

9 Government for the purposes of reimbursing the agency 

10 or instrumentality in accordance with an assisted reem11 ployment agreement entered into under section 8104 of 

12 title 5.’’. 

13 (2) TABLE OF SECTIONS.—The table of sections 

14 for chapter 15 of title 31, United States Code, is 

15 amended by inserting after the item relating to sec16 tion 1537 the following: 

‘‘1538. Authorization for assisted reemployment.’’. 

17 SEC. 306. REPORTING REQUIREMENTS. 

18 (a) IN GENERAL.—Chapter 81 is amended by insert19 ing after section 8106 the following: 

20 ‘‘§ 8106a. Reporting requirements 

21 ‘‘(a) DEFINITION.—In this section, the term ‘em22 ployee receiving compensation’ means an employee who— 

23 ‘‘(1) is paid compensation under section 8105 

24 or 8106; and 

25 ‘‘(2) has not attained retirement age. 


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1 ‘‘(b) AUTHORITY.—The Secretary of Labor shall re2 quire an employee receiving compensation to report the 

3 earnings of the employee receiving compensation from em4 ployment or self-employment, by affidavit or otherwise, in 

5 the manner and at the times the Secretary specifies. 

6 ‘‘(c) CONTENTS.—An employee receiving compensa7 tion shall include in a report required under subsection 

8 (a) the value of housing, board, lodging, and other advan9 tages which are part of the earnings of the employee re10 ceiving compensation in employment or self-employment 

11 and the value of which can be estimated. 

12 ‘‘(d) FAILURE TO REPORT AND FALSE REPORTS.— 

13 ‘‘(1) IN GENERAL.—An employee receiving com14 pensation who fails to make an affidavit or other re15 port required under subsection (b) or who knowingly 

16 omits or understates any part of the earnings of the 

17 employee in such an affidavit or other report shall 

18 forfeit the right to compensation with respect to any 

19 period for which the report was required. 

20 ‘‘(2) FORFEITED COMPENSATION.—Compensa21 tion forfeited under this subsection, if already paid 

22 to the employee receiving compensation, shall be re23 covered by a deduction from the compensation pay24 able to the employee or otherwise recovered under 


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1 section 8129, unless recovery is waived under that 

2 section.’’. 

3 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

4 The table of sections for chapter 81 is amended by insert5 ing after the item relating to section 8106 the following: 

‘‘8106a. Reporting requirements.’’. 

6 SEC. 307. DISABILITY MANAGEMENT REVIEW; INDE7 PENDENT MEDICAL EXAMINATIONS. 

8 Section 8123 is amended by adding at the end the 

9 following: 

10 ‘‘(e) DISABILITY MANAGEMENT REVIEW.— 

11 ‘‘(1) DEFINITIONS.—In this subsection— 

12 ‘‘(A) the term ‘covered employee’ means an 

13 employee who is in continuous receipt of com14 pensation for total disability under section 8105 

15 for a period of not less than 6 months; and 

16 ‘‘(B) the term ‘disability management re17 view process’ means the disability management 

18 review process established under paragraph 

19 (2)(A). 

20 ‘‘(2) ESTABLISHMENT.—The Secretary of 

21 Labor shall— 

22 ‘‘(A) establish a disability management re23 view process for the purpose of certifying and 

24 monitoring the disability status and extent of 

25 injury of each covered employee; and 


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1 ‘‘(B) promulgate regulations for the ad2 ministration of the disability management re3 view process. 

4 ‘‘(3) PHYSICAL EXAMINATIONS REQUIRED.— 

5 Under the disability management review process, the 

6 Secretary of Labor shall periodically require covered 

7 employees to submit to physical examinations under 

8 subsection (a) by physicians selected by the Sec9 retary. A physician conducting a physical examina10 tion of a covered employee shall submit to the Sec11 retary a report regarding the nature and extent of 

12 the injury to and disability of the covered employee. 

13 ‘‘(4) FREQUENCY.— 

14 ‘‘(A) IN GENERAL.—The regulations pro15 mulgated under paragraph (2)(B) shall specify 

16 the process and criteria for determining when 

17 and how frequently a physical examination 

18 should be conducted for a covered employee. 

19 ‘‘(B) MINIMUM FREQUENCY.— 

20 ‘‘(i) INITIAL.—An initial physical ex21 amination shall be conducted not more 

22 than a brief period after the date on which 

23 a covered employee has been in continuous 

24 receipt of compensation for total disability 

25 under section 8015 for 6 months. 


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1 ‘‘(ii) SUBSEQUENT EXAMINATIONS.— 

2 After the initial physical examination, 

3 physical examinations of a covered em4 ployee shall be conducted not less than 

5 once every 3 years. 

6 ‘‘(5) EMPLOYING AGENCY OR INSTRUMEN7 TALITY REQUESTS.— 

8 ‘‘(A) IN GENERAL.—The agency or instru9 mentality employing an employee who has made 

10 a claim for compensation for total disability 

11 under section 8105 may at any time submit a 

12 request for the Secretary of Labor to promptly 

13 require the employee to submit to a physical ex14 amination under this subsection. 

15 ‘‘(B) REQUESTING OFFICER.—A request 

16 under subparagraph (A) shall be made on be17 half of an agency or instrumentality by— 

18 ‘‘(i) the head of the agency or instru19 mentality; 

20 ‘‘(ii) the Chief Human Capital Officer 

21 of the agency or instrumentality; or 

22 ‘‘(iii) if the agency or instrumentality 

23 does not have a Chief Human Capital Offi24 cer, an officer with responsibilities similar 

25 to those of a Chief Human Capital Officer 


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1 designated by the head of the agency or in2 strumentality to make requests under this 

3 paragraph. 

4 ‘‘(C) INFORMATION.—A request under sub5 paragraph (A) shall be in writing and accom6 panied by— 

7 ‘‘(i) a certification by the officer mak8 ing the request that the officer has re9 viewed the relevant material in the employ10 ee’s file; 

11 ‘‘(ii) an explanation of why the officer 

12 has determined, based on the materials in 

13 the file and other information known to 

14 the officer, that requiring a physical exam15 ination of the employee under this sub16 section is necessary; and 

17 ‘‘(iii) copies of the materials relating 

18 to the employee that are relevant to the of19 ficer’s determination and request, unless 

20 the agency or instrumentality has a rea21 sonable basis for not providing the mate22 rials. 

23 ‘‘(D) EXAMINATION.—If the Secretary of 

24 Labor receives a request under this paragraph 

25 before an employee has undergone an initial 


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1 physical examination under paragraph 

2 (4)(B)(i), the Secretary shall promptly require 

3 the physical examination of the employee. A 

4 physical examination under this subparagraph 

5 shall satisfy the requirement under paragraph 

6 (4)(B)(i) that an initial physical examination be 

7 conducted. 

8 ‘‘(E) AFTER INITIAL EXAMINATION.— 

9 ‘‘(i) IN GENERAL.—If the Secretary of 

10 Labor receives a request under this para11 graph after an employee has undergone an 

12 initial physical examination under para13 graph (4)(B)(i), the Secretary shall— 

14 ‘‘(I) review the request and the 

15 information, explanation, and other 

16 materials submitted with the request; 

17 and 

18 ‘‘(II) determine whether to re19 quire the physical examination of the 

20 employee who is the subject of the re21 quest. 

22 ‘‘(ii) NOT GRANTED.—If the Secretary 

23 determines not to grant a request de24 scribed in clause (i), the Secretary shall 

25 promptly notify the officer who made the 


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1 request and provide an explanation of the 

2 reasons why the request was denied.’’. 

3 SEC. 308. WAITING PERIOD. 

4 (a) IN GENERAL.—Section 8117 is amended— 

5 (1) in the section heading, by striking ‘‘Time 

6 of accrual of right’’ and inserting ‘‘Waiting 

7 period’’; 

8 (2) in subsection (a)— 

9 (A) in the matter preceding paragraph (1), 

10 by striking ‘‘An employee’’ and all that follows 

11 through ‘‘is not entitled’’ and inserting ‘‘IN

12 GENERAL.—An employee is not entitled to con13 tinuation of pay within the meaning of section 

14 8118 for the first 3 days of temporary disability 

15 or, if section 8118 does not apply, is not enti16 tled’’; 

17 (B) in paragraph (1), by adding ‘‘or’’ at 

18 the end; 

19 (C) by striking paragraph (2); and 

20 (D) by redesignating paragraph (3) as 

21 paragraph (2); and 

22 (3) in subsection (b)— 

23 (A) by striking ‘‘A Postal Service’’ the first 

24 place it appears and all that follows through ‘‘A 


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1 Postal Service’’ the second place it appears and 

2 inserting ‘‘USE OF LEAVE.—An’’; 

3 (B) by striking ‘‘that 3-day period’’ and in4 serting ‘‘the first 3 days of temporary dis5 ability’’; and 

6 (C) by striking ‘‘or is followed by perma7 nent disability’’. 

8 (b) CONTINUATION OF PAY.—Section 8118 is amend9 ed— 

10 (1) in the section heading, by striking ‘‘; elec11 tion to use annual or sick leave’’; 

12 (2) in subsection (b)(1), by striking ‘‘section 

13 8117(b)’’ and inserting ‘‘section 8117’’; 

14 (3) by striking subsection (c); and 

15 (4) by redesignating subsections (d) and (e) as 

16 subsections (c) and (d), respectively. 

17 (c) TECHNICAL AND CONFORMING AMENDMENTS.— 

18 The table of sections for chapter 81 is amended by strik19 ing the items relating to sections 8117 and 8118 and in20 serting the following: 

‘‘8117. Waiting period. 

‘‘8118. Continuation of pay.’’. 

21 SEC. 309. ELECTION OF BENEFITS. 

22 (a) IN GENERAL.—Section 8116 is amended by add23 ing at the end the following: 

24 ‘‘(e) RETIREMENT BENEFITS.— 


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1 ‘‘(1) IN GENERAL.—An individual entitled to 

2 compensation benefits payable under this subchapter 

3 and under chapter 83 or 84 or any other retirement 

4 system for employees of the Government, for the 

5 same period, shall elect which benefits the individual 

6 will receive. 

7 ‘‘(2) ELECTION.— 

8 ‘‘(A) DEADLINE.—An individual shall 

9 make an election under paragraph (1) in ac10 cordance with such deadlines as the Secretary 

11 of Labor shall establish. 

12 ‘‘(B) REVOCABILITY.—An election under 

13 paragraph (1) shall be revocable, notwith14 standing any other provision of law, except for 

15 any period during which an individual— 

16 ‘‘(i) was qualified for benefits payable 

17 under both this subchapter and under a re18 tirement system described in paragraph 

19 (1); and 

20 ‘‘(ii) was paid benefits under the re21 tirement system after having been notified 

22 of eligibility for benefits under this sub23 chapter. 

24 ‘‘(3) INFORMED CHOICE.—The Secretary of 

25 Labor shall provide information, and shall ensure 


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1 that information is provided, to an individual de2 scribed in paragraph (1) about the benefits available 

3 to the individual under this subchapter or under 

4 chapter 83 or 84 or any other retirement system re5 ferred to in paragraph (1) the individual may elect 

6 to receive.’’. 

7 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

8 Sections 8337(f)(3) and 8464a(a)(3) are each amended by 

9 striking ‘‘Paragraphs’’ and inserting ‘‘Except as provided 

10 under chapter 81, paragraphs’’. 

11 SEC. 310. SANCTION FOR NONCOOPERATION WITH FIELD 

12 NURSES. 

13 Section 8123, as amended by section 307, is amended 

14 by adding at the end the following: 

15 ‘‘(f) FIELD NURSES.— 

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

17 ‘field nurse’ means a registered nurse that assists 

18 the Secretary in the medical management of dis19 ability claims under this subchapter and provides 

20 claimants with assistance in coordinating medical 

21 care. 

22 ‘‘(2) AUTHORIZATION.—The Secretary may use 

23 field nurses to coordinate medical services and voca24 tional rehabilitation programs for injured employees 

25 under this subchapter. If an employee refuses to coVerDate Mar 15 2010 04:24 Nov 04, 2011 Jkt 019200 PO 00000 Frm 00080 Fmt 6652 Sfmt 6201 E:\BILLS\S1789.IS S1789

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1 operate with a field nurse or obstructs a field nurse 

2 in the performance of duties under this subchapter, 

3 the right to compensation under this subchapter 

4 shall be suspended until the refusal or obstruction 

5 stops.’’. 

6 SEC. 311. SUBROGATION OF CONTINUATION OF PAY. 

7 (a) IN GENERAL.—Section 8131 is amended— 

8 (1) in subsection (a), in the matter preceding 

9 paragraph (1), by inserting ‘‘continuation of pay or’’ 

10 before ‘‘compensation’’; 

11 (2) in subsection (b), by inserting ‘‘continuation 

12 of pay’’ before compensation; and 

13 (3) in subsection (c)— 

14 (A) by inserting ‘‘continuation of pay or’’ 

15 before ‘‘compensation already paid’’; and 

16 (B) by inserting ‘‘continuation of pay or’’ 

17 before ‘‘compensation payable’’. 

18 (b) ADJUSTMENT AFTER RECOVERY FROM A THIRD

19 PERSON.—Section 8132 is amended— 

20 (1) in the first sentence— 

21 (A) by inserting ‘‘continuation of pay or’’ 

22 before ‘‘compensation is payable’’; 

23 (B) by inserting ‘‘continuation of pay or’’ 

24 before ‘‘compensation from the United States’’; 


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1 (C) by striking ‘‘by him or in his behalf’’ 

2 and inserting ‘‘by the beneficiary or on behalf 

3 of the beneficiary’’; 

4 (D) by inserting ‘‘continuation of pay and’’ 

5 before ‘‘compensation paid by the United 

6 States’’; and 

7 (E) by striking ‘‘compensation payable to 

8 him’’ and inserting ‘‘continuation of pay or 

9 compensation payable to the beneficiary’’; 

10 (2) in the second sentence, by striking ‘‘his des11 ignee’’ and inserting ‘‘the designee of the bene12 ficiary’’; and 

13 (3) in the fourth sentence, by striking ‘‘If com14 pensation’’ and all that follows through ‘‘payable to 

15 him by the United States’’ and inserting ‘‘If con16 tinuation of pay or compensation has not been paid 

17 to the beneficiary, the money or property shall be 

18 credited against continuation of pay or compensation 

19 payable to the beneficiary by the United States’’. 

20 SEC. 312. SOCIAL SECURITY EARNINGS INFORMATION. 

21 Section 8116, as amended by section 308, is amended 

22 by adding at the end the following: 

23 ‘‘(f) EARNINGS INFORMATION.—Notwithstanding 

24 section 552a or any other provision of Federal or State 

25 law, the Social Security Administration shall make availVerDate Mar 15 2010 04:24 Nov 04, 2011 Jkt 019200 PO 00000 Frm 00082 Fmt 6652 Sfmt 6201 E:\BILLS\S1789.IS S1789

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1 able to the Secretary of Labor, upon written request, the 

2 Social Security earnings information of a living or de3 ceased employee who may have sustained an injury or died 

4 as a result of an injury that is the subject of a claim under 

5 this subchapter required by the Secretary of Labor to 

6 carry out this subchapter.’’. 

7 SEC. 313. AMOUNT OF COMPENSATION. 

8 (a) INJURIES TO FACE, HEAD, AND NECK.—Section 

9 8107(c)(21) is amended— 

10 (1) by striking ‘‘not to exceed $3,500’’ and in11 serting ‘‘in proportion to the severity of the dis12 figurement, not to exceed $50,000,’’; and 

13 (2) by adding at the end the following: ‘‘The 

14 maximum amount of compensation under this para15 graph shall be increased on March 1 of each year by 

16 the amount determined by the Secretary of Labor to 

17 represent the percent change in the price index pub18 lished for December of the preceding year over the 

19 price index published for the December of the year 

20 prior to the preceding year, adjusted to the nearest 

21 one-tenth of 1 percent.’’. 

22 (b) FUNERAL EXPENSES.—Section 8134(a) is 

23 amended— 

24 (1) by striking ‘‘$800’’ and inserting ‘‘$6,000’’; 

25 and 


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1 (2) by adding at the end the following: ‘‘The 

2 maximum amount of compensation under this sub3 section shall be increased on March 1 of each year 

4 by the amount determined by the Secretary of Labor 

5 to represent the percent change in the price index 

6 published for December of the preceding year over 

7 the price index published for the December of the 

8 year prior to the preceding year, adjusted to the 

9 nearest one-tenth of 1 percent.’’. 

10 (c) APPLICATION.—The amendments made by this 

11 section shall apply to injuries or deaths, respectively, oc12 curring on or after the date of enactment of this Act. 

13 SEC. 314. TECHNICAL AND CONFORMING AMENDMENTS. 

14 Chapter 81 is amended— 

15 (1) in section 8101(1)(D), by inserting ‘‘for an 

16 injury that occurred before the effective date of sec17 tion 204(e) of the District of Columbia Self-Govern18 ment and Governmental Reorganization Act (Public 

19 Law 93–198; 87 Stat. 783; 5 U.S.C. 8101 note)’’ 

20 before the semicolon; 

21 (2) in section 8139, by inserting ‘‘under this 

22 subchapter’’ after ‘‘Compensation awarded’’; and 

23 (3) in section 8148(a), by striking ‘‘section 

24 8106’’ and inserting ‘‘section 8106a’’. 


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1 SEC. 315. REGULATIONS. 

2 (a) IN GENERAL.—As soon as possible after the date 

3 of enactment of this Act, the Secretary of Labor shall pro4 mulgate regulations (which may include interim final reg5 ulations) to carry out this title. 

6 (b) CONTENTS.—The regulations promulgated under 

7 subsection (a) shall include, for purposes of the amend8 ments made by sections 302 and 303, clarification of— 

9 (1) what is a claim; and 

10 (2) what is the date on which a period of dis11 ability, for which a claim is made, commences. 

12 TITLE IV—OTHER MATTERS 

13 SEC. 401. PROFITABILITY PLAN. 

14 (a) PLAN REQUIRED.—Not later than 90 days after 

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

16 submit to the Committee on Homeland Security and Gov17 ernmental Affairs of the Senate, the Committee on Over18 sight and Government Reform of the House of Represent19 atives, the Comptroller General of the United States, and 

20 the Commission a plan describing, in detail, the actions 

21 the Postal Service will take to— 

22 (1) become profitable by fiscal year 2015; and 

23 (2) achieve long-term financial solvency. 

24 (b) CONSIDERATIONS.—The plan required under sub25 section (a) shall take into consideration— 

26 (1) the legal authority of the Postal Service; 


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1 (2) the changes in the legal authority and re2 sponsibilities of the Postal Service under this Act; 

3 (3) any cost savings that the Postal Service an4 ticipates will be achieved through negotiations with 

5 employees of the Postal Service; and 

6 (4) projected changes in mail volume. 

7 (c) UPDATES.—The Postal Service shall update the 

8 plan required under subsection (a) not less frequently than 

9 quarterly, until the last quarter of fiscal year 2015. 

10 SEC. 402. POSTAL RATES. 

11 (a) COMMISSION STUDY.— 

12 (1) IN GENERAL.—Not earlier than 2 years 

13 after the date of enactment of this Act, the Commis14 sion shall commence a study to determine— 

15 (A) whether and to what extent any mar16 ket-dominant classes, products, or types of mail 

17 services do not bear the direct and indirect 

18 costs attributable to those classes, products, or 

19 types of mail service; and 

20 (B) the impact of any excess mail proc21 essing, transportation, or delivery capacity of 

22 the Postal Service on the direct and indirect 

23 costs attributable to any class that bears less 

24 than 100 percent of the costs attributable to 


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1 the class, as determined under subparagraph 

2 (A). 

3 (2) REQUIREMENTS.—The Commission shall 

4 conduct the study under paragraph (1) in a manner 

5 that protects confidential and proprietary business 

6 information. 

7 (3) HEARING.—Before completing the study 

8 under paragraph (1), the Commission shall hold a 

9 public hearing, on the record, in order to better in10 form the conclusions of the study. The Postal Serv11 ice, postal customers, and other interested persons 

12 may participate in the hearing under this paragraph. 

13 (4) COMPLETION.—Not later than 6 months 

14 after the date on which the Commission commences 

15 the study under subsection (a), the Commission shall 

16 complete the study. 

17 (b) ANNUAL UPDATES REQUIRED.—Not later than 

18 1 year after the date of completion of the study under 

19 subsection (a), and annually thereafter, the Commission 

20 shall— 

21 (1) determine whether any class of mail bears 

22 less than 100 percent of the direct and indirect costs 

23 attributable to the class, product, or type of mail 

24 service, in the same manner as under subsection 

25 (a)(1)(A); 


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1 (2) for any class of mail for which the Commis2 sion makes a determination under paragraph (1), 

3 update the study under subsection (a); and 

4 (3) include the study updated under paragraph 

5 (2) in the annual written determination of the Com6 mission under section 3653 of title 39, United 

7 States Code. 

8 (c) POSTAL RATES.— 

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

10 ‘‘loss-making’’, as used with respect to a class of 

11 mail, means a class of mail that bears less than 100 

12 percent of the costs attributable to the class of mail, 

13 according to the most recent annual determination 

14 of the Commission under subsection (a)(1) or (b)(1), 

15 adjusted to account for the quantitative effect of ex16 cess mail processing, transportation, or delivery ca17 pacity of the Postal Service on the costs attributable 

18 to the class of mail. 

19 (2) IN GENERAL.—Not later than 1 year after 

20 the date on which the study under subsection (a) is 

21 completed, and annually thereafter, the Postal Serv22 ice shall establish postal rates for each loss-making 

23 class of mail. 

24 (3) CONSIDERATIONS.—The Postal Service may 

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1 ner that ensures, to the extent practicable, that a 

2 class of mail described in paragraph (2) is not loss3 making by— 

4 (A) using the authority to increase rates 

5 under section 3622(d)(1)(A) of title 39, United 

6 States Code; 

7 (B) exhausting any unused rate adjust8 ment authority, as defined in section 

9 3622(d)(2)(C) of title 39, United States Code, 

10 subject to paragraph (4); and 

11 (C) maximizing incentives to reduce costs 

12 and increase efficiency with regard to the proc13 essing, transportation, and delivery of such mail 

14 by the Postal Service. 

15 (4) UNUSED RATE ADJUSTMENT AUTHORITY.— 

16 Section 3622(d)(2)(C) of title 39, United States 

17 Code, shall be applied by annually increasing by 2 

18 percentage points any unused rate adjustment au19 thority for a class of mail that bears less than 90 

20 percent of the costs attributable to the class of mail, 

21 according to the most recent annual determination 

22 of the Commission under subsection (a)(1) or (b)(1), 

23 adjusted to account for the quantitative effect of ex24 cess mail processing, transportation, or delivery caVerDate Mar 15 2010 04:24 Nov 04, 2011 Jkt 019200 PO 00000 Frm 00089 Fmt 6652 Sfmt 6201 E:\BILLS\S1789.IS S1789

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1 pacity of the Postal Service on the costs attributable 

2 to the class of mail. 

3 SEC. 403. COOPERATION WITH STATE AND LOCAL GOVERN4 MENTS; INTRA-SERVICE AGREEMENTS. 

5 (a) COOPERATION WITH STATE AND LOCAL GOV6 ERNMENTS.—Section 411 of title 39, United States Code, 

7 is amended, in the first sentence by striking ‘‘and the Gov8 ernment Printing Office’’ inserting ‘‘, the Government 

9 Printing Office, and agencies and other units of State and 

10 local governments’’. 

11 (b) INTRA-SERVICE AGREEMENTS.—Section 411 of 

12 title 39, United States Code, as amended by subsection 

13 (a), is amended— 

14 (1) in the section heading, by adding at the end 

15 the following: ‘‘and within the Postal Serv16 ice’’; 

17 (2) in the second sentence, by striking ‘‘sec18 tion’’ and inserting ‘‘subsection’’; 

19 (3) by striking ‘‘Executive agencies’’ and insert20 ing the following: 

21 ‘‘(a) COOPERATION WITH STATE AND LOCAL GOV22 ERNMENTS.—Executive agencies’’; and 

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

24 ‘‘(b) COOPERATION WITHIN THE POSTAL SERV25 ICE.—The Office of the Inspector General and other comVerDate Mar 15 2010 04:24 Nov 04, 2011 Jkt 019200 PO 00000 Frm 00090 Fmt 6652 Sfmt 6201 E:\BILLS\S1789.IS S1789

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1 ponents of the Postal Service may enter into agreements 

2 to furnish to each other property, both real and personal, 

3 and personal and nonpersonal services. The furnishing of 

4 property and services under this subsection shall be under 

5 such terms and conditions, including reimbursability, as 

6 the Inspector General and the head of the component con7 cerned shall deem appropriate.’’. 

8 (c) TECHNICAL AND CONFORMING AMENDMENT.— 

9 The table of sections for chapter 4 of title 39, United 

10 States Code, is amended by striking the item relating to 

11 section 411 and inserting the following: 

‘‘411. Cooperation with other Government agencies and within the Postal Service.’’. 

12 SEC. 404. SHIPPING OF WINE AND BEER. 

13 (a) MAILABILITY.— 

14 (1) NONMAILABLE ARTICLES.—Section 1716(f) 

15 of title 18, United States Code, is amended by strik16 ing ‘‘mails’’ and inserting ‘‘mails, except to the ex17 tent that the mailing is allowable under section 

18 3001(p) of title 39’’. 

19 (2) APPLICATION OF LAWS.—Section 1161 of 

20 title 18, United States Code, is amended, by insert21 ing ‘‘, and, with respect to the mailing of wine or 

22 malt beverages (as those terms are defined in section 

23 117 of the Federal Alcohol Administration Act (27 


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1 U.S.C. 211)), is in conformity with section 3001(p) 

2 of title 39’’ after ‘‘Register’’. 

3 (b) REGULATIONS.—Section 3001 of title 39, United 

4 States Code, is amended by adding at the end the fol5 lowing: 

6 ‘‘(p)(1) In this subsection, the terms ‘wine’ and ‘malt 

7 beverage’ have the same meanings as in section 117 of 

8 the Federal Alcohol Administration Act (27 U.S.C. 211). 

9 ‘‘(2) Wine or malt beverages shall be considered mail10 able if mailed— 

11 ‘‘(A) by a licensed winery or brewery, in accord12 ance with applicable regulations under paragraph 

13 (3); and 

14 ‘‘(B) in accordance with the law of the State, 

15 territory, or district of the United States where the 

16 addressee or duly authorized agent takes delivery. 

17 ‘‘(3) The Postal Service shall prescribe such regula18 tions as may be necessary to carry out this subsection, 

19 including regulations providing that— 

20 ‘‘(A) the mailing shall be by a means estab21 lished by the Postal Service to ensure direct delivery 

22 to the addressee or a duly authorized agent; 

23 ‘‘(B) the addressee (and any duly authorized 

24 agent) shall be an individual at least 21 years of 

25 age; 


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1 ‘‘(C) the individual who takes delivery, whether 

2 the addressee or a duly authorized agent, shall 

3 present a valid, government-issued photo identifica4 tion at the time of delivery; 

5 ‘‘(D) the wine or malt beverages may not be for 

6 resale or other commercial purpose; and 

7 ‘‘(E) the winery or brewery involved shall— 

8 ‘‘(i) certify in writing to the satisfaction of 

9 the Postal Service, through a registration proc10 ess administered by the Postal Service, that the 

11 mailing is not in violation of any provision of 

12 this subsection or regulation prescribed under 

13 this subsection; and 

14 ‘‘(ii) provide any other information or af15 firmation that the Postal Service may require, 

16 including with respect to the prepayment of 

17 State alcohol beverage taxes. 

18 ‘‘(4) For purposes of this subsection— 

19 ‘‘(A) a winery shall be considered to be licensed 

20 if it holds an appropriate basic permit issued— 

21 ‘‘(i) under the Federal Alcohol Administra22 tion Act; and 

23 ‘‘(ii) under the law of the State in which 

24 the winery is located; and 


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1 ‘‘(B) a brewery shall be considered to be li2 censed if— 

3 ‘‘(i) it possesses a notice of registration 

4 and bond approved by the Alcohol and Tobacco 

5 Tax and Trade Bureau of the Department of 

6 the Treasury; and 

7 ‘‘(ii) it is licensed to manufacture and sell 

8 malt beverages in the State in which the brew9 ery is located.’’. 

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

11 this section shall take effect on the earlier of— 

12 (1) the date on which the Postal Service issues 

13 regulations under section 3001(p) of title 39, United 

14 States Code, as amended by this section; and 

15 (2) 120 days after the date of enactment of this 

16 Act. 

17 SEC. 405. ANNUAL REPORT ON UNITED STATES MAILING IN18 DUSTRY. 

19 (a) IN GENERAL.—Chapter 24 of title 39, United 

20 States Code, is amended by adding at the end the fol21 lowing: 

22 ‘‘§ 2403. Annual report on the fiscal stability of the 

23 United States mailing industry 

24 ‘‘(a) IN GENERAL.—Not later than 1 year after the 

25 date of enactment of this section, and annually thereafter, 


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1 the Postal Regulatory Commission shall submit a report 

2 on the fiscal stability of the United States mailing indus3 try with respect to the preceding fiscal year to— 

4 ‘‘(1) the Committee on Homeland Security and 

5 Governmental Affairs of the Senate; and 

6 ‘‘(2) the Committee on Oversight and Govern7 ment Reform of the House of Representatives. 

8 ‘‘(b) ASSISTANCE.—The United States Postal Service 

9 and any Federal agency involved in oversight or data col10 lection regarding industry sectors relevant to the report 

11 under subsection (a) shall provide any assistance to the 

12 Postal Regulatory Commission that the Postal Regulatory 

13 Commission determines is necessary in the preparation of 

14 a report under subsection (a).’’. 

15 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

16 The table of sections for chapter 24 of title 39, United 

17 States Code, is amended by adding at the end the fol18 lowing: 

‘‘2403. Annual report on the fiscal stability of the United States mailing industry.’’. 

19 SEC. 406. USE OF NEGOTIATED SERVICE AGREEMENTS. 

20 Section 3622 of title 39, United States Code, is 

21 amended— 

22 (1) in subsection (c)(10)(A)— 

23 (A) in the matter preceding clause (i), by 

24 striking ‘‘either’’ and inserting ‘‘will’’; 


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1 (B) in clause (i), by striking ‘‘or’’ at the 

2 end; 

3 (C) in clause (ii), by striking ‘‘and’’ at the 

4 end and inserting ‘‘or’’; and 

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

6 ‘‘(iii) preserve mail volume and rev7 enue; and’’; and 

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

9 ‘‘(g) COORDINATION.—The Postal Service and the 

10 Postal Regulatory Commission shall coordinate actions to 

11 identify methods to increase the use of negotiated service 

12 agreements for market-dominant products by the Postal 

13 Service consistent with subsection (c)(10).’’. 

14 SEC. 407. CONTRACT DISPUTES. 

15 Section 7101(8) of title 41, United States Code, is 

16 amended— 

17 (1) in subparagraph (C), by striking ‘‘and’’ at 

18 the end; 

19 (2) in subparagraph (D), by striking the period 

20 at the end and inserting ‘‘; and’’; and 

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

22 ‘‘(E) the United States Postal Service and 

23 the Postal Regulatory Commission.’’. 


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1 SEC. 408. CONTRACTING PROVISIONS. 

2 (a) IN GENERAL.—Part I of title 39, United States 

3 Code, is amended by adding at the end the following: 

4 ‘‘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. 

5 ‘‘§ 701. Definitions 

6 ‘‘In this chapter— 

7 ‘‘(1) the term ‘contracting officer’ means an 

8 employee of a covered postal entity who has author9 ity to enter into a postal contract; 

10 ‘‘(2) the term ‘covered postal entity’ means— 

11 ‘‘(A) the United States Postal Service; or 

12 ‘‘(B) the Postal Regulatory Commission; 

13 ‘‘(3) the term ‘head of a covered postal entity’ 

14 means— 

15 ‘‘(A) in the case of the United States Post16 al Service, the Postmaster General; or 

17 ‘‘(B) in the case of the Postal Regulatory 

18 Commission, the Chairman of the Postal Regu19 latory Commission; 

20 ‘‘(4) the term ‘postal contract’ means any con21 tract (including any agreement or memorandum of 


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1 understanding) entered into by a covered postal enti2 ty for the procurement of goods or services; and 

3 ‘‘(5) the term ‘senior procurement executive’ 

4 means the senior procurement executive of a covered 

5 postal entity. 

6 ‘‘§ 702. Advocate for competition 

7 ‘‘(a) ESTABLISHMENT AND DESIGNATION.— 

8 ‘‘(1) There is established in each covered postal 

9 entity an advocate for competition. 

10 ‘‘(2) The head of each covered postal entity 

11 shall designate for the covered postal entity 1 or 

12 more officers or employees (other than the senior 

13 procurement executive) to serve as the advocate for 

14 competition. 

15 ‘‘(b) RESPONSIBILITIES.—The advocate for competi16 tion of each covered postal entity shall— 

17 ‘‘(1) be responsible for promoting competition 

18 to the maximum extent practicable consistent with 

19 obtaining best value by promoting the acquisition of 

20 commercial items and challenging barriers to com21 petition; 

22 ‘‘(2) review the procurement activities of the 

23 covered postal entity; and 

24 ‘‘(3) prepare and transmit to the head of each 

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1 tive of each covered postal entity, the Board of Gov2 ernors of the United States Postal Service, and Con3 gress, an annual report describing— 

4 ‘‘(A) the activities of the advocate under 

5 this section; 

6 ‘‘(B) initiatives required to promote com7 petition; 

8 ‘‘(C) barriers to competition that remain; 

9 and 

10 ‘‘(D) the number of waivers made by each 

11 covered postal entity under section 704(c). 

12 ‘‘§ 703. Delegation of contracting authority 

13 ‘‘(a) IN GENERAL.— 

14 ‘‘(1) POLICY.—Not later than 60 days after the 

15 date of enactment of the 21st Century Postal Serv16 ice Act of 2011, the head of each covered postal en17 tity shall issue a policy on contracting officer delega18 tions of authority for the covered postal entity. 

19 ‘‘(2) CONTENTS.—The policy issued under 

20 paragraph (1) shall require that— 

21 ‘‘(A) notwithstanding any delegation of au22 thority with respect to postal contracts, the ulti23 mate responsibility and accountability for the 

24 award and administration of postal contracts 


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1 resides with the senior procurement executive; 

2 and 

3 ‘‘(B) a contracting officer shall maintain 

4 an awareness of and engagement in the activi5 ties being performed on postal contracts of 

6 which that officer has cognizance, notwith7 standing any delegation of authority that may 

8 have been executed. 

9 ‘‘(b) POSTING OF DELEGATIONS.— 

10 ‘‘(1) IN GENERAL.—The head of each covered 

11 postal entity shall make any delegation of authority 

12 for postal contracts outside the functional con13 tracting unit readily available and accessible on the 

14 website of the covered postal entity. 

15 ‘‘(2) EFFECTIVE DATE.—This paragraph shall 

16 apply to any delegation of authority made on or 

17 after 30 days after the date of enactment of the 21st 

18 Century Postal Service Act of 2011. 

19 ‘‘§ 704. Posting of noncompetitive purchase requests 

20 for noncompetitive contracts 

21 ‘‘(a) POSTING REQUIRED.— 

22 ‘‘(1) POSTAL REGULATORY COMMISSION.—The 

23 Postal Regulatory Commission shall make the non24 competitive purchase request for any noncompetitive 

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1 competitive award, publicly available on the website 

2 of the Postal Regulatory Commission— 

3 ‘‘(A) not later than 14 days after the date 

4 of the award of the noncompetitive contract; or 

5 ‘‘(B) not later than 30 days after the date 

6 of the award of the noncompetitive contract, if 

7 the basis for the award was a compelling busi8 ness interest. 

9 ‘‘(2) UNITED STATES POSTAL SERVICE.—The 

10 United States Postal Service shall make the non11 competitive purchase request for any noncompetitive 

12 award of a postal contract valued at $250,000 or 

13 more, including the rationale supporting the non14 competitive award, publicly available on the website 

15 of the United States Postal Service— 

16 ‘‘(A) not later than 14 days after the date 

17 of the award; or 

18 ‘‘(B) not later than 30 days after the date 

19 of the award, if the basis for the award was a 

20 compelling business interest. 

21 ‘‘(3) ADJUSTMENTS TO THE POSTING THRESH22 OLD FOR THE UNITED STATES POSTAL SERVICE.— 

23 ‘‘(A) REVIEW AND DETERMINATION.—Not 

24 later than January 31 of each year, the United 

25 States Postal Service shall— 


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1 ‘‘(i) review the $250,000 threshold es2 tablished under paragraph (2); and 

3 ‘‘(ii) based on any change in the Con4 sumer Price Index for all-urban consumers 

5 of the Department of Labor, determine 

6 whether an adjustment to the threshold 

7 shall be made. 

8 ‘‘(B) AMOUNT OF ADJUSTMENTS.—An ad9 justment under subparagraph (A) shall be made 

10 in increments of $5,000. If the United States 

11 Postal Service determines that a change in the 

12 Consumer Price Index for a year would require 

13 an adjustment in an amount that is less than 

14 $5,000, the United States Postal Service may 

15 not make an adjustment to the threshold for 

16 the year. 

17 ‘‘(4) EFFECTIVE DATE.—This subsection shall 

18 apply to any noncompetitive contract awarded on or 

19 after the date that is 90 days after the date of en20 actment of the 21st Century Postal Service Act of 

21 2011. 

22 ‘‘(b) PUBLIC AVAILABILITY.— 

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

24 the information required to be made publicly avail25 able by a covered postal entity under subsection (a) 


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1 shall be readily accessible on the website of the cov2 ered postal entity. 

3 ‘‘(2) PROTECTION OF PROPRIETARY INFORMA4 TION.—A covered postal entity shall— 

5 ‘‘(A) carefully screen any description of the 

6 rationale supporting a noncompetitive award re7 quired to be made publicly available under sub8 section (a) to determine whether the description 

9 includes proprietary data (including any ref10 erence or citation to the proprietary data) or se11 curity-related information; and 

12 ‘‘(B) remove any proprietary data or secu13 rity-related information before making publicly 

14 available a description of the rational sup15 porting a noncompetitive award. 

16 ‘‘(c) WAIVERS.— 

17 ‘‘(1) WAIVER PERMITTED.—If a covered postal 

18 entity determines that making a noncompetitive pur19 chase request publicly available would risk placing 

20 the United States Postal Service at a competitive 

21 disadvantage relative to a private sector competitor, 

22 the senior procurement executive, in consultation 

23 with the advocate for competition of the covered 

24 postal entity, may waive the requirements under 

25 subsection (a). 


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1 ‘‘(2) FORM AND CONTENT OF WAIVER.— 

2 ‘‘(A) FORM.—A waiver under paragraph 

3 (1) shall be in the form of a written determina4 tion placed in the file of the contract to which 

5 the noncompetitive purchase agreement relates. 

6 ‘‘(B) CONTENT.—A waiver under para7 graph (1) shall include— 

8 ‘‘(i) a description of the risk associ9 ated with making the noncompetitive pur10 chase request publicly available; and 

11 ‘‘(ii) a statement that redaction of 

12 sensitive information in the noncompetitive 

13 purchase request would not be sufficient to 

14 protect the United States Postal Service 

15 from being placed at a competitive dis16 advantage relative to a private sector com17 petitor. 

18 ‘‘(3) DELEGATION OF WAIVER AUTHORITY.—A 

19 covered postal entity may not delegate the authority 

20 to approve a waiver under paragraph (1) to any em21 ployee having less authority than the senior procure22 ment executive. 

23 ‘‘§ 705. Review of ethical issues 

24 ‘‘If a contracting officer identifies any ethical issues 

25 relating to a proposed contract and submits those issues 


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1 and that proposed contract to the designated ethics official 

2 for the covered postal entity before the awarding of that 

3 contract, that ethics official shall— 

4 ‘‘(1) review the proposed contract; and 

5 ‘‘(2) advise the contracting officer on the appro6 priate resolution of ethical issues. 

7 ‘‘§ 706. Ethical restrictions on participation in certain 

8 contracting activity 

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

10 ‘‘(1) the term ‘covered employee’ means— 

11 ‘‘(A) a contracting officer; or 

12 ‘‘(B) any employee of a covered postal en13 tity whose decisionmaking affects a postal con14 tract as determined by regulations prescribed 

15 by the head of a covered postal entity; 

16 ‘‘(2) the term ‘covered relationship’ means a 

17 covered relationship described in section 

18 2635.502(b)(1) of title 5, Code of Federal Regula19 tions, or any successor thereto; and 

20 ‘‘(3) the term ‘final conviction’ means a convic21 tion, whether entered on a verdict or plea, including 

22 a plea of nolo contendere, for which a sentence has 

23 been imposed. 

24 ‘‘(b) IN GENERAL.— 


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1 ‘‘(1) REGULATIONS.—The head of each covered 

2 postal entity shall prescribe regulations that— 

3 ‘‘(A) require a covered employee to include 

4 in the file of any noncompetitive purchase re5 quest for a noncompetitive postal contract a 

6 written certification that— 

7 ‘‘(i) discloses any covered relationship 

8 of the covered employee; and 

9 ‘‘(ii) the covered employee will not 

10 take any action with respect to the non11 competitive purchase request that affects 

12 the financial interests of a friend, relative, 

13 or person with whom the covered employee 

14 is affiliated in a nongovernmental capacity, 

15 or otherwise gives rise to an appearance of 

16 the use of public office for private gain, as 

17 described in section 2635.702 of title 5, 

18 Code of Federal Regulations, or any suc19 cessor thereto; 

20 ‘‘(B) require a contracting officer to con21 sult with the ethics counsel for the covered 

22 postal entity regarding any disclosure made by 

23 a covered employee under subparagraph (A)(i), 

24 to determine whether participation by the cov25 ered employee in the noncompetitive purchase 


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1 request would give rise to a violation of part 

2 2635 of title 5, Code of Federal Regulations 

3 (commonly referred to as the ‘Standards of 

4 Ethical Conduct for Employees of the Executive 

5 Branch’); 

6 ‘‘(C) require the ethics counsel for a cov7 ered postal entity to review any disclosure made 

8 by a contracting officer under subparagraph 

9 (A)(i) to determine whether participation by the 

10 contracting officer in the noncompetitive pur11 chase request would give rise to a violation of 

12 part 2635 of title 5, Code of Federal Regula13 tions (commonly referred to as the ‘Standards 

14 of Ethical Conduct for Employees of the Execu15 tive Branch’), or any successor thereto; 

16 ‘‘(D) under subsections (d) and (e) of sec17 tion 2635.50 of title 5, Code of Federal Regula18 tions, or any successor thereto, require the eth19 ics counsel for a covered postal entity to— 

20 ‘‘(i) authorize a covered employee that 

21 makes a disclosure under subparagraph 

22 (A)(i) to participate in the noncompetitive 

23 postal contract; or 

24 ‘‘(ii) disqualify a covered employee 

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1 graph (A)(i) from participating in the non2 competitive postal contract; 

3 ‘‘(E) require a contractor to timely disclose 

4 to the contracting officer in a bid, solicitation, 

5 award, or performance of a postal contract any 

6 conflict of interest with a covered employee; and 

7 ‘‘(F) include authority for the head of the 

8 covered postal entity to a grant a waiver or oth9 erwise mitigate any organizational or personal 

10 conflict of interest, if the head of the covered 

11 postal entity determines that the waiver or miti12 gation is in the best interests of the Postal 

13 Service. 

14 ‘‘(2) POSTING OF WAIVERS.—Not later than 30 

15 days after the head of a covered postal entity grants 

16 a waiver described in paragraph (1)(F), the head of 

17 the covered postal entity shall make the waiver pub18 licly available on the website of the covered postal 

19 entity. 

20 ‘‘(c) CONTRACT VOIDANCE AND RECOVERY.— 

21 ‘‘(1) UNLAWFUL CONDUCT.—In any case in 

22 which there is a final conviction for a violation of 

23 any provision of chapter 11 of title 18 relating to a 

24 postal contract, the head of a covered postal entity 

25 may— 


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1 ‘‘(A) void that contract; and 

2 ‘‘(B) recover the amounts expended and 

3 property transferred by the covered postal enti4 ty under that contract. 

5 ‘‘(2) OBTAINING OR DISCLOSING PROCUREMENT

6 INFORMATION.— 

7 ‘‘(A) IN GENERAL.—In any case where a 

8 contractor under a postal contract fails to time9 ly disclose a conflict of interest to the appro10 priate contracting officer as required under the 

11 regulations promulgated under subsection 

12 (b)(1)(D), the head of a covered postal entity 

13 may— 

14 ‘‘(i) void that contract; and 

15 ‘‘(ii) recover the amounts expended 

16 and property transferred by the covered 

17 postal entity under that contract. 

18 ‘‘(B) CONVICTION OR ADMINISTRATIVE DE19 TERMINATION.—A case described under sub20 paragraph (A) is any case in which— 

21 ‘‘(i) there is a final conviction for an 

22 offense punishable under section 27(e) of 

23 the Office of Federal Procurement Policy 

24 Act (41 U.S.C. 423(e)); or 


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1 ‘‘(ii) the head of a covered postal enti2 ty determines, based upon a preponderance 

3 of the evidence, that the contractor or 

4 someone acting for the contractor has en5 gaged in conduct constituting an offense 

6 punishable under section 27(e) of that 

7 Act.’’. 

8 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

9 The table of chapters for part I of title 39, United States 

10 Code, is amended by adding at the end the following: 

‘‘7. Contracting Provisions ....................................................................... 701’’. 

Æ 


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