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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1789 Engrossed in Senate (ES)]

112th CONGRESS
  2d Session
                                S. 1789

_______________________________________________________________________

                                 AN ACT

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

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

SECTION 1. SHORT TITLE.

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

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
                   TITLE I--POSTAL WORKFORCE MATTERS

Sec. 101. Treatment of postal funding surplus for Federal Employees 
                            Retirement System.
Sec. 102. Incentives for voluntary separation.
Sec. 103. Restructuring of payments for retiree health benefits.
Sec. 104. Postal Service Health Benefits Program.
Sec. 105. Medicare Educational Program for Postal Service Employees and 
                            Retirees.
Sec. 106. Arbitration; labor disputes.
Sec. 107. Retirement reporting.
Sec. 108. Executive compensation.
                TITLE II--POSTAL SERVICES AND OPERATIONS

Sec. 201. Maintenance of delivery service standards.
Sec. 202. Preserving mail processing capacity.
Sec. 203. Establishment of retail service standards.
Sec. 204. Expanded retail access.
Sec. 205. Preserving community post offices.
Sec. 206. Area and district office structure.
Sec. 207. Limitations on changes to mail delivery schedule.
Sec. 208. Time limits for consideration of service changes.
Sec. 209. Public procedures for significant changes to mailing 
                            specifications.
Sec. 210. Nonpostal products and services.
Sec. 211. Chief Innovation Officer; innovation strategy.
Sec. 212. Strategic Advisory Commission on Postal Service Solvency and 
                            Innovation.
Sec. 213. Citizen's service protection advocates.
Sec. 214. Capitol Complex post offices.
             TITLE III--FEDERAL EMPLOYEES' COMPENSATION ACT

Sec. 301. Short title; references.
Sec. 302. Federal workers compensation reforms for retirement-age 
                            employees.
Sec. 303. Augmented compensation for dependents.
Sec. 304. Schedule compensation payments.
Sec. 305. Vocational rehabilitation.
Sec. 306. Reporting requirements.
Sec. 307. Disability management review; independent medical 
                            examinations.
Sec. 308. Waiting period.
Sec. 309. Election of benefits.
Sec. 310. Sanction for noncooperation with field nurses.
Sec. 311. Subrogation of continuation of pay.
Sec. 312. Integrity and compliance.
Sec. 313. Amount of compensation.
Sec. 314. Terrorism injuries; zones of armed conflict.
Sec. 315. Technical and conforming amendments.
Sec. 316. Regulations.
Sec. 317. Effective date.
                        TITLE IV--OTHER MATTERS

Sec. 401. Solvency plan.
Sec. 402. Postal rates.
Sec. 403. Co-location with Federal agencies.
Sec. 404. Cooperation with State and local governments; intra-Service 
                            agreements.
Sec. 405. Shipping of wine, beer, and distilled spirits.
Sec. 406. Annual report on United States mailing industry.
Sec. 407. Use of negotiated service agreements.
Sec. 408. Contract disputes.
Sec. 409. Contracting provisions.
Sec. 410. Executive compensation.
Sec. 411. Sense of the Senate.
                         TITLE V--MISCELLANEOUS

Sec. 501. Government sponsored conferences.

SEC. 3. DEFINITIONS.

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

                   TITLE I--POSTAL WORKFORCE MATTERS

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

    Section 8423(b) of title 5, United States Code, is amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following:
    ``(5)(A) In this paragraph, the term `postal funding surplus' means 
the amount by which the amount computed under paragraph (1)(B) is less 
than zero.
    ``(B)(i) Beginning with fiscal year 2011, for each fiscal year in 
which the amount computed under paragraph (1)(B) is less than zero, 
upon request of the Postmaster General, the Director shall transfer to 
the United States Postal Service from the Fund an amount equal to the 
postal funding surplus for that fiscal year for use in accordance with 
this paragraph.
    ``(ii) The Office shall calculate the amount under paragraph (1)(B) 
for a fiscal year by not later than June 15 after the close of the 
fiscal year, and shall transfer any postal funding surplus to the 
United States Postal Service within 10 days after a request by the 
Postmaster General.
    ``(C) For each of fiscal years 2011, 2012, 2013, and 2014 if the 
amount computed under paragraph (1)(B) is less than zero, a portion of 
the postal funding surplus for the fiscal year shall be used by the 
United States Postal Service for the cost of providing incentives for 
voluntary separation, in accordance with section 102 of the 21st 
Century Postal Service Act of 2012 and sections 8332(p) and 8411(m) of 
this title, to employees of the United States Postal Service who 
voluntarily separate from service before October 1, 2015.
    ``(D) Any postal funding surplus for a fiscal year not expended 
under subparagraph (C) may be used by the United States Postal Service 
for the purposes of--
            ``(i) repaying any obligation issued under section 2005 of 
        title 39; or
            ``(ii) making required payments to--
                    ``(I) the Employees' Compensation Fund established 
                under section 8147;
                    ``(II) the Postal Service Retiree Health Benefits 
                Fund established under section 8909a;
                    ``(III) the Employees Health Benefits Fund 
                established under section 8909; or
                    ``(IV) the Civil Service Retirement and Disability 
                Fund.''.

SEC. 102. INCENTIVES FOR VOLUNTARY SEPARATION.

    (a) Voluntary Separation Incentive Payments.--The Postal Service 
may provide voluntary separation incentive payments to employees of the 
Postal Service who voluntarily separate from service before October 1, 
2015 (including payments to employees who retire under section 
8336(d)(2) or 8414(b)(1)(B) of title 5, United States Code, before 
October 1, 2015), which may not exceed the maximum amount provided 
under section 3523(b)(3)(B) of title 5, United States Code, for any 
employee.
    (b) Additional Service Credit.--
            (1) Civil service retirement system.--Section 8332 of title 
        5, United States Code, is amended by adding at the end the 
        following:
    ``(p)(1)(A) For an employee of the United States Postal Service who 
is covered under this subchapter and voluntarily separates from service 
before October 1, 2015, the Office, if so directed by the United States 
Postal Service, shall add not more than 1 year to the total creditable 
service of the employee for purposes of determining entitlement to and 
computing the amount of an annuity under this subchapter (except for a 
disability annuity under section 8337).
    ``(B) An employee who receives additional creditable service under 
this paragraph may not receive a voluntary separation incentive payment 
from the United States Postal Service.
    ``(2) The United States Postal Service shall ensure that the 
average actuarial present value of the additional liability of the 
United States Postal Service to the Fund resulting from additional 
creditable service provided under paragraph (1) or section 8411(m)(1) 
is not more than $25,000 per employee provided additional creditable 
service under paragraph (1) or section 8411(m)(1).
    ``(3)(A) Subject to subparagraph (B), and notwithstanding any other 
provision of law, no deduction, deposit, or contribution shall be 
required for service credited under this subsection.
    ``(B) The actuarial present value of the additional liability of 
the United States Postal Service to the Fund resulting from this 
subsection shall be included in the amount calculated under section 
8348(h)(1)(A).''.
            (2) Federal employees retirement system.--Section 8411 of 
        title 5, United States Code, is amended by adding at the end 
        the following:
    ``(m)(1)(A) For an employee of the United States Postal Service who 
is covered under this chapter and voluntarily separates from service 
before October 1, 2015, the Office, if so directed by the United States 
Postal Service, shall add not more than 2 years to the total creditable 
service of the employee for purposes of determining entitlement to and 
computing the amount of an annuity under this chapter (except for a 
disability annuity under subchapter V of that chapter).
    ``(B) An employee who receives additional creditable service under 
this paragraph may not receive a voluntary separation incentive payment 
from the United States Postal Service.
    ``(2) The United States Postal Service shall ensure that the 
average actuarial present value of the additional liability of the 
United States Postal Service to the Fund resulting from additional 
creditable service provided under paragraph (1) or section 8332(p)(1) 
is not more than $25,000 per employee provided additional creditable 
service under paragraph (1) or section 8332(p)(1).
    ``(3)(A) Subject to subparagraph (B), and notwithstanding any other 
provision of law, no deduction, deposit, or contribution shall be 
required for service credited under this subsection.
    ``(B) The actuarial present value of the additional liability of 
the United States Postal Service to the Fund resulting from this 
subsection shall be included in the amount calculated under section 
8423(b)(1)(B).''.
    (c) Goals.--
            (1) In general.--The Postal Service shall offer incentives 
        for voluntary separation under this section and the amendments 
        made by this section as a means of ensuring that the size and 
        cost of the workforce of the Postal Service is appropriate to 
        the work required of the Postal Service, including 
        consideration of--
                    (A) the closure and consolidation of postal 
                facilities;
                    (B) the ability to operate existing postal 
                facilities more efficiently, including by reducing the 
                size or scope of operations of postal facilities in 
                lieu of closing postal facilities; and
                    (C) the number of employees eligible, or projected 
                in the near-term to be eligible, for retirement, 
                including early retirement.
            (2) Percentage goal.--The Postal Service shall offer 
        incentives for voluntary separation under this section to a 
        sufficient number of employees as would reasonably be expected 
        to lead to an 18 percent reduction in the total number of 
        career employees of the Postal Service by the end of fiscal 
        year 2015.
            (3) Definition.--In this subsection, the term ``career 
        employee of the Postal Service'' means an employee of the 
        Postal Service--
                    (A) whose appointment is not for a limited period; 
                and
                    (B) who is eligible for benefits, including 
                retirement coverage under chapter 83 or 84 of title 5, 
                United States Code.
    (d) Funding.--The Postal Service shall carry out subsection (a) and 
sections 8332(p) and 8411(m) of title 5, United States Code, as added 
by subsection (b) of this section, using funds made available under 
section 8423(b)(5)(C) of title 5, United States Code, as amended by 
section 101 of this Act.

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

    (a) Contributions.--Section 8906(g)(2)(A) of title 5, United States 
Code, is amended by striking ``through September 30, 2016, be paid by 
the United States Postal Service, and thereafter shall'' and inserting 
``after the date of enactment of the 21st Century Postal Service Act of 
2012''.
    (b) Postal Service Retiree Health Benefits Fund.--Section 8909a of 
title 5, United States Code, is amended--
            (1) in subsection (d)--
                    (A) by striking paragraph (2) and inserting the 
                following:
    ``(2)(A) Not later than 180 days after the date of enactment of the 
21st Century Postal Service Act of 2012, or March 31, 2013, whichever 
is later, the Office shall compute, and by June 30 of each succeeding 
year, the Office shall recompute, a schedule including a series of 
annual installments which provide for the liquidation of the amount 
described under subparagraph (B) (regardless of whether the amount is a 
liability or surplus) by September 30, 2052, or within 15 years, 
whichever is later, including interest at the rate used in the 
computations under this subsection.
    ``(B) The amount described in this subparagraph is the amount, as 
of the date on which the applicable computation or recomputation under 
subparagraph (A) is made, that is equal to the difference between--
            ``(i) 80 percent of the Postal Service actuarial liability 
        as of September 30 of the most recently ended fiscal year; and
            ``(ii) the value of the assets of the Postal Retiree Health 
        Benefits Fund as of September 30 of the most recently ended 
        fiscal year.''.
                    (B) in paragraph (3)--
                            (i) in subparagraph (A)--
                                    (I) in clause (iii), by adding 
                                ``and'' at the end;
                                    (II) in clause (iv), by striking 
                                the semicolon at the end and inserting 
                                a period; and
                                    (III) by striking clauses (v) 
                                through (x); and
                            (ii) in subparagraph (B), by striking 
                        ``2017'' and inserting ``2013'';
                    (C) by amending paragraph (4) to read as follows:
    ``(4) Computations under this subsection shall be based on--
            ``(A) economic and actuarial methods and assumptions 
        consistent with the methods and assumptions used in determining 
        the Postal surplus or supplemental liability under section 
        8348(h); and
            ``(B) any other methods and assumptions, including a health 
        care cost trend rate, that the Director of the Office 
        determines to be appropriate.''; and
                    (D) by adding at the end the following:
    ``(7) In this subsection, the term `Postal Service actuarial 
liability' means the difference between--
            ``(A) the net present value of future payments required 
        under section 8906(g)(2)(A) for current and future United 
        States Postal Service annuitants; and
            ``(B) the net present value as computed under paragraph (1) 
        attributable to the future service of United States Postal 
        Service employees.''; and
            (2) by adding at the end the following:
    ``(e) Subsections (a) through (d) of this section shall be subject 
to section 104 of the 21st Century Postal Service Act of 2012.''.

SEC. 104. POSTAL SERVICE HEALTH BENEFITS PROGRAM.

    (a) Definitions.--In this section--
            (1) the term ``covered employee'' means an officer or 
        employee of the Postal Service who is--
                    (A) represented by a bargaining representative 
                recognized under section 1203 of title 39, United 
                States Code; or
                    (B) a member of the Postal Career Executive 
                Service;
            (2) the term ``Federal Employee Health Benefits Program'' 
        means the health benefits program under chapter 89 of title 5, 
        United States Code;
            (3) the term ``participants'' means--
                    (A) covered employees; and
                    (B) officers and employees of the Postal Service 
                who are not covered employees and who elect to 
                participate in the Postal Service Health Benefits 
                Program; and
            (4) the term ``Postal Service Health Benefits Program'' 
        means the health benefits program that may be agreed to under 
        subsection (b)(1).
    (b) Collective Bargaining.--
            (1) In general.--Consistent with section 1005(f) of title 
        39, United States Code, the Postal Service may negotiate 
        jointly with all bargaining representatives recognized under 
        section 1203 of title 39, United States Code, and enter into a 
        joint collective bargaining agreement with those bargaining 
        representatives to establish the Postal Service Health Benefits 
        Program that satisfies the conditions under subsection (c). The 
        Postal Service and the bargaining representatives shall 
        negotiate in consultation with the Director of the Office of 
        Personnel Management.
            (2) Consultation with supervisory and managerial 
        personnel.--In the course of negotiations under paragraph (1), 
        the Postal Service shall consult with each of the organizations 
        of supervisory and other managerial personnel that are 
        recognized under section 1004 of title 39, United States Code, 
        concerning the views of the personnel represented by each of 
        those organizations.
            (3) Arbitration limitation.--Notwithstanding chapter 12 of 
        title 39, United States Code, there shall not be arbitration of 
        any dispute in the negotiations under this subsection.
            (4) Time limitation.--The authority under this subsection 
        shall extend until September 30, 2012.
    (c) Postal Service Health Benefits Program.--The Postal Service 
Health Benefits Program--
            (1) shall--
                    (A) be available for participation by all covered 
                employees;
                    (B) be available for participation by any officer 
                or employee of the Postal Service who is not a covered 
                employee, at the option solely of that officer or 
                employee;
                    (C) provide coverage that is actuarially equivalent 
                to the types of plans available under the Federal 
                Employee Health Benefits Program, as determined by the 
                Director of the Office of Personnel Management;
                    (D) be administered in a manner determined in a 
                joint agreement reached under subsection (b); and
                    (E) provide for transition of coverage under the 
                Federal Employee Health Benefits Program of all 
                participants to coverage under the Postal Service 
                Health Benefits Program on January 1, 2013;
            (2) may provide dental benefits; and
            (3) may provide vision benefits.
    (d) Agreement and Implementation.--If a joint agreement is reached 
under subsection (b)--
            (1) the Postal Service shall implement the Postal Service 
        Health Benefits Program;
            (2) the Postal Service Health Benefits Program shall 
        constitute an agreement between the collective bargaining 
        representatives and the Postal Service for purposes of section 
        1005(f) of title 39, United States Code; and
            (3) participants may not participate as employees in the 
        Federal Employees Health Benefits Program.
    (e) Government Plan.--The Postal Service Health Benefits Program 
shall be a government plan as that term is defined under section 3(32) 
of Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1002(32)).
    (f) Report.--Not later than June 30, 2013, the Postal Service shall 
submit a report to the Committee on Homeland Security and Governmental 
Affairs of the Senate and the Committee on Oversight and Government 
Reform of the House of Representatives that--
            (1) reports on the implementation of this section; and
            (2) requests any additional statutory authority that the 
        Postal Service determines is necessary to carry out the 
        purposes of this section.
    (g) Rule of Construction.--Nothing in this section shall be 
construed as an endorsement by Congress for withdrawing officers and 
employees of the Postal Service from the Federal Employee Health 
Benefits Program.

SEC. 105. MEDICARE EDUCATIONAL PROGRAM FOR POSTAL SERVICE EMPLOYEES AND 
              RETIREES.

    (a) Educational Program.--The Postmaster General, in consultation 
with the Director of the Office of Personnel Management and the 
Administrator of the Centers for Medicare & Medicaid Services, shall 
develop an educational program for Postal Service employees and 
annuitants who may be eligible to enroll in the Medicare program for 
hospital insurance benefits under part A of title XVIII of the Social 
Security Act (42 U.S.C. 1395c et seq.) (commonly known as ``Medicare 
Part A'') and the Medicare program for supplementary medical insurance 
benefits under part B of title XVIII of the Social Security Act (42 
U.S.C. 1395j et seq.) (commonly known as ``Medicare Part B''), the 
objective of which shall be to educate employees and annuitants on how 
Medicare benefits interact with and can supplement the benefits of the 
employee or annuitant under the Federal Employees Health Benefit 
Program.
    (b) Rule of Construction.--Nothing in this section may be construed 
to authorize the Postal Service to require a Postal Service employee or 
annuitant (as defined in subsection (c)) to enroll in Medicare.
    (c) Definition of Postal Service Employee or Annuitant.--In this 
section, the term ``Postal Service employee or annuitant'' means an 
individual who is--
            (1) an employee of the Postal Service; or
            (2) an annuitant covered under chapter 89 of title 5, 
        United States Code, whose Government contribution is paid by 
        the Postal Service under section 8906(g)(2) of such title.

SEC. 106. ARBITRATION; LABOR DISPUTES.

    Section 1207(c) of title 39, United States Code, is amended--
            (1) in paragraph (2)--
                    (A) by inserting ``(A)'' after ``(2)'';
                    (B) by striking the last sentence and inserting 
                ``The arbitration board shall render a decision not 
                later than 45 days after the date of its 
                appointment.''; and
                    (C) by adding at the end the following:
    ``(B) In rendering a decision under this paragraph, the arbitration 
board shall consider such relevant factors as the financial condition 
of the Postal Service.''; and
            (2) by adding at the end the following:
    ``(4) Nothing in this section may be construed to limit the 
relevant factors that the arbitration board may take into consideration 
in rendering a decision under paragraph (2).''.

SEC. 107. RETIREMENT REPORTING.

    (a) Timeliness and Pending Applications.--Not later than 60 days 
after the date of enactment of this Act, and every month thereafter, 
the Director of the Office of Personnel Management shall submit to 
Congress, the Comptroller General of the United States, and issue 
publicly (including on the website of the Office of Personnel 
Management) a report that--
            (1) evaluates the timeliness, completeness, and accuracy of 
        information submitted by the Postal Service relating to 
        employees of the Postal Service who are retiring, as compared 
        with such information submitted by agencies (as defined under 
        section 551 of title 5, United States Code); and
            (2) includes--
                    (A) the total number of applications for retirement 
                benefits for employees of the Postal Service that are 
                pending action by the Office of Personnel Management; 
                and
                    (B) the number of months each such application has 
                been pending.
    (b) Electronic Data Timetable.--
            (1) In general.--Not later than 60 days after the date of 
        enactment of this Act, the Office of Personnel Management shall 
        submit to Congress and the Comptroller General of the United 
        States a timetable for completion of each component of a 
        retirement systems modernization project of the Office of 
        Personnel Management, including all data elements required for 
        accurate completion of adjudication and the date by which 
        electronic transmission of all personnel data to the Office of 
        Personnel Management by the Postal Service shall commence.
            (2) Timetable considerations.--In providing a timetable for 
        the commencing of the electronic transmission of all personnel 
        data by the Postal Service under paragraph (1), the Office of 
        Personnel Management shall consider the milestones established 
        by other payroll processors participating in the retirement 
        systems modernization project of the Office of Personnel 
        Management.

SEC. 108. EXECUTIVE COMPENSATION.

    (a) Limitations on Compensation.--Section 1003 of title 39, United 
States Code, is amended--
            (1) in subsection (a), by striking the last sentence; and
            (2) by adding at the end the following:
    ``(e) Limitations on Compensation.--
            ``(1) Rates of basic pay.--
                    ``(A) In general.--Subject to subparagraph (B), an 
                officer or employee of the Postal Service may not be 
                paid at a rate of basic pay that exceeds the rate of 
                basic pay for level II of the Executive Schedule under 
                section 5313 of title 5.
                    ``(B) Very senior executives.--Not more than 6 
                officers or employees of the Postal Service that are in 
                very senior executive positions, as determined by the 
                Board of Governors, may be paid at a rate of basic pay 
                that does not exceed the rate of basic pay for level I 
                of the Executive Schedule under section 5312 of title 
                5.
            ``(2) Benefits.--For any fiscal year, an officer or 
        employee of the Postal Service who is in a critical senior 
        executive or equivalent position, as designated under section 
        3686(c), may not receive fringe benefits (within the meaning 
        given that term under section 1005(f)) that are greater than 
        the fringe benefits received by supervisory and other 
        managerial personnel who are not subject to collective-
        bargaining agreements under chapter 12.''.
    (b) Limitation on Bonus Authority.--Section 3686 of title 39, 
United States Code, is amended--
            (1) in subsection (a), by striking ``The Postal Service'' 
        and inserting ``Subject to subsection (f), the Postal 
        Service''; and
            (2) by adding at the end the following:
    ``(f) Limitation on Bonus Authority.--
            ``(1) Definition.--In this subsection, the term `covered 
        year' means the fiscal year following a fiscal year relating to 
        which the Office of Management and Budget determines the Postal 
        Service has not implemented the measures needed to achieve 
        long-term solvency, as defined in section 208(e) of the 21st 
        Century Postal Service Act of 2012.
            ``(2) Limitation.--The Postal Service may not provide a 
        bonus or other reward under this section to an officer or 
        employee of the Postal service in a critical senior executive 
        or equivalent position, as designated under subsection (c), 
        during a covered year.''.
    (c) Effective Date; Applicability.--The amendments made by 
subsections (a) and (b) shall--
            (1) take effect on the date of enactment of this Act; and
            (2) apply to any contract entered or modified by the Postal 
        Service on or after the date of enactment of this Act.
    (d) Sunset.--Effective 2 years after the date of enactment of this 
Act--
            (1) section 1003 of title 39, United States Code, is 
        amended--
                    (A) in subsection (a), by adding at the end the 
                following: ``No officer or employee shall be paid 
                compensation at a rate in excess of the rate for level 
                I of the Executive Schedule under section 5312 of title 
                5.''; and
                    (B) by striking subsection (e); and
            (2) section 3686 of title 39, United States Code, is 
        amended--
                    (A) in subsection (a), by striking ``Subject to 
                subsection (f), the Postal Service'' and inserting 
                ``The Postal Service''; and
                    (B) by striking subsection (f).

                TITLE II--POSTAL SERVICES AND OPERATIONS

SEC. 201. MAINTENANCE OF DELIVERY SERVICE STANDARDS.

    (a) Definitions.--For purposes of this section--
            (1) the term ``plant service area'' means the geographic 
        area served by a single sectional center facility, or a 
        corresponding successor facility, as designated by the Postal 
        Service; and
            (2) the term ``continental United States'' means the 48 
        contiguous States and the District of Columbia.
    (b) Interim Maintenance of Standards.--During the 3-year period 
beginning on the date of enactment of this Act, the Postal Service--
            (1) shall maintain the service standards described in 
        subsection (c);
            (2) may not establish a new or revised service standard for 
        market-dominant products under section 3691 of title 39, United 
        States Code, that is inconsistent with the requirements under 
        subsection (c); and
            (3) shall include in any new or revised overnight service 
        standard established for market-dominant products under section 
        3691 of title 39, United States Code, a policy on changes to 
        critical entry times at post offices and business mail entry 
        units that ensures that any such changes maintain meaningful 
        access to the services provided under the service standard 
        required to be maintained under subsection (c).
    (c) Service Standards.--
            (1) Overnight standard for first-class mail and 
        periodicals.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the Postal Service shall maintain an overnight 
                service standard that provides overnight service for 
                first-class mail and periodicals that--
                            (i) originate and destinate in the same 
                        plant service area; and
                            (ii) enter the mails before the critical 
                        entry time established and published by the 
                        Postal Service.
                    (B) Areas outside the continental united states.--
                The requirements of subparagraph (A) shall not apply to 
                areas outside the continental United States--
                            (i) in the case of mail that originates or 
                        destinates in a territory or possession of the 
                        United States that is part of a plant service 
                        area having a sectional center facility that--
                                    (I) is not located in the territory 
                                or possession; and
                                    (II) was not located in the 
                                territory or possession on January 1, 
                                2012; and
                            (ii) in the case of mail not described in 
                        clause (i), except to the extent that the 
                        requirements are consistent with the service 
                        standards under part 121 of title 39, Code of 
                        Federal Regulations, as in effect on January 1, 
                        2012.
            (2) Two-day delivery for first-class mail.--The Postal 
        Service shall maintain a service standard that provides that 
        first-class mail not delivered overnight will be delivered 
        within 2 delivery days, to the maximum extent feasible using 
        the network of postal facilities maintained to meet the 
        requirements under paragraph (1).
            (3) Maximum delivery time for first-class mail.--
                    (A) In general.--The Postal Service shall maintain 
                a service standard that provides that first-class mail 
                will be delivered--
                            (i) within a maximum of 3 delivery days, 
                        for mail that originates and destinates within 
                        the continental United States; and
                            (ii) within a maximum period of time 
                        consistent with service standards under part 
                        121 of title 39, Code of Federal Regulations, 
                        as in effect on January 1, 2012, for mail 
                        originating or destinating outside the 
                        continental United States.
                    (B) Revisions.--Notwithstanding subparagraph 
                (A)(ii), the Postal Service may revise the service 
                standards under part 121 of title 39, Code of Federal 
                Regulations for mail described in subparagraph (A)(ii) 
                to take into account transportation conditions 
                (including the availability of transportation) or other 
                circumstances outside the control of the Postal 
                Service.

SEC. 202. PRESERVING MAIL PROCESSING CAPACITY.

    (a) Closing or Consolidating Certain Postal Facilities.--Section 
404 of title 39, United States Code, is amended by adding after 
subsection (e) the following:
    ``(f) Closing or Consolidation of Certain Postal Facilities.--
            ``(1) Postal facility.--In this subsection, the term 
        `postal facility'--
                    ``(A) means any Postal Service facility that is 
                primarily involved in the preparation, dispatch, or 
                other physical processing of mail; and
                    ``(B) does not include--
                            ``(i) any post office, station, or branch; 
                        or
                            ``(ii) any facility used only for 
                        administrative functions.
            ``(2) Area mail processing study.--
                    ``(A) New area mail processing studies.--After the 
                date of enactment of this subsection, before making a 
                determination under subsection (a)(3) as to the 
                necessity for the closing or consolidation of any 
                postal facility, the Postal Service shall--
                            ``(i) conduct an area mail processing study 
                        relating to that postal facility that 
                        includes--
                                    ``(I) a plan to reduce the capacity 
                                of the postal facility, but not close 
                                the postal facility; and
                                    ``(II) consideration of the effect 
                                of the closure or consolidation of the 
                                postal facility on the ability of 
                                individuals served by the postal 
                                facility to vote by mail and the 
                                ability of the Postal Service to timely 
                                deliver ballots by mail in accordance 
                                with the deadline to return ballots 
                                established under applicable State law;
                            ``(ii) publish the study on the Postal 
                        Service website; and
                            ``(iii) publish a notice that the study is 
                        complete and available to the public, including 
                        on the Postal Service website.
                    ``(B) Completed or ongoing area mail processing 
                studies.--
                            ``(i) In general.--In the case of a postal 
                        facility described in clause (ii), the Postal 
                        Service shall--
                                    ``(I) consider a plan to reduce the 
                                capacity of the postal facility without 
                                closing the postal facility;
                                    ``(II) consider the effect of the 
                                closure or consolidation of the postal 
                                facility on the ability of individuals 
                                served by the postal facility to vote 
                                by mail and the ability of the Postal 
                                Service to timely deliver ballots by 
                                mail in accordance with the deadline to 
                                return ballots established under 
                                applicable State law; and
                                    ``(III) publish the results of the 
                                consideration under subclause (I) with 
                                or as an amendment to the area mail 
                                processing study relating to the postal 
                                facility.
                            ``(ii) Postal facilities.--A postal 
                        facility described in this clause is a postal 
                        facility for which, on or before the date of 
                        enactment of this subsection--
                                    ``(I) an area mail processing study 
                                that does not include a plan to reduce 
                                the capacity of the postal facility 
                                without closing the postal facility or 
                                consideration of the effect of the 
                                closure or consolidation of the postal 
                                facility on the ability of individuals 
                                served by the postal facility to vote 
                                by mail and the ability of the Postal 
                                Service to timely deliver ballots by 
                                mail in accordance with the deadline to 
                                return ballots established under 
                                applicable State law has been 
                                completed;
                                    ``(II) an area mail processing 
                                study is in progress; or
                                    ``(III) a determination as to the 
                                necessity for the closing or 
                                consolidation of the postal facility 
                                has not been made.
            ``(3) Notice, public comment, and public hearing.--If the 
        Postal Service makes a determination under subsection (a)(3) to 
        close or consolidate a postal facility, the Postal Service 
        shall--
                    ``(A) provide notice of the determination to--
                            ``(i) Congress;
                            ``(ii) the Postal Regulatory Commission; 
                        and
                            ``(iii) the chief executive of each State 
                        whose residents are served by the postal 
                        facility, to allow the chief executive to 
                        appoint a citizen's service protection advocate 
                        under section 417;
                    ``(B) provide adequate public notice of the 
                intention of the Postal Service to close or consolidate 
                the postal facility;
                    ``(C) ensure that interested persons have an 
                opportunity to submit public comments during a 45-day 
                period after the notice of intention is provided under 
                subparagraph (B);
                    ``(D) before the 45-day period described in 
                subparagraph (C), provide for public notice of that 
                opportunity by--
                            ``(i) publication on the Postal Service 
                        website;
                            ``(ii) posting at the affected postal 
                        facility; and
                            ``(iii) advertising the date and location 
                        of the public community meeting under 
                        subparagraph (E); and
                    ``(E) during the 45-day period described in 
                subparagraph (C), conduct a public community meeting 
                that provides an opportunity for public comments to be 
                submitted verbally or in writing.
            ``(4) Further considerations.--Not earlier than 30 days 
        after the end of the 45-day period for public comment under 
        paragraph (3), the Postal Service, in making a determination to 
        close or consolidate a postal facility, shall consider--
                    ``(A) the views presented by interested persons 
                under paragraph (3);
                    ``(B) the effect of the closing or consolidation on 
                the affected community, including any disproportionate 
                impact the closing or consolidation may have on a 
                State, region, or locality;
                    ``(C) the effect of the closing or consolidation on 
                the travel times and distances for affected customers 
                to access services under the proposed closing or 
                consolidation;
                    ``(D) the effect of the closing or consolidation on 
                delivery times for all classes of mail;
                    ``(E) any characteristics of certain geographical 
                areas, such as remoteness, broadband internet 
                availability, and weather-related obstacles to using 
                alternative facilities, that may result in the closing 
                or consolidation having a unique effect;
                    ``(F) the effect of the closing or consolidation on 
                small businesses in the area, including shipping and 
                communications with customers and suppliers and the 
                corresponding impact on revenues, operations, and 
                growth; and
                    ``(G) any other factor the Postal Service 
                determines is necessary.
            ``(5) Justification statement.--Before the date on which 
        the Postal Service closes or consolidates a postal facility, 
        the Postal Service shall post on the Postal Service website a 
        closing or consolidation justification statement that 
        includes--
                    ``(A) a response to all public comments received 
                with respect to the considerations described under 
                paragraph (4);
                    ``(B) a description of the considerations made by 
                the Postal Service under paragraph (4); and
                    ``(C) the actions that will be taken by the Postal 
                Service to mitigate any negative effects identified 
                under paragraph (4).
            ``(6) Closing or consolidation of postal facilities.--
                    ``(A) In general.--Not earlier than the 15 days 
                after posting the final determination and the 
                justification statement under paragraph (5) with 
                respect to a postal facility, the Postal Service may 
                close or consolidate the postal facility.
                    ``(B) Alternative intake of mail.--If the Postal 
                Service closes or consolidates a postal facility under 
                subparagraph (A), the Postal Service shall make 
                reasonable efforts to ensure continued mail receipt 
                from customers of the closed or consolidated postal 
                facility at the same location or at another appropriate 
                location in close geographic proximity to the closed or 
                consolidated postal facility.
                    ``(C) Limitations.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), during the 3-year period beginning 
                        on the date of enactment of the 21st Century 
                        Postal Service Act of 2012, the Postal Service 
                        may not close or consolidate a postal facility 
                        if--
                                    ``(I) the closing or consolidation 
                                prevents the Postal Service from 
                                maintaining service standards as 
                                required under section 201 of the 21st 
                                Century Postal Service Act of 2012; or
                                    ``(II) the Postal Service--
                                            ``(aa) did not close or 
                                        consolidate the postal facility 
                                        before May 15, 2012; and
                                            ``(bb) conducted an area 
                                        mail processing study with 
                                        respect to the postal facility 
                                        after January 1, 2006 that--

                                                    ``(AA) was 
                                                terminated; or

                                                    ``(BB) concluded 
                                                that no significant 
                                                cost savings or 
                                                efficiencies would 
                                                result from closing or 
                                                consolidating the 
                                                postal facility.

                            ``(ii) Exception.--Clause (i) shall not 
                        apply with respect to a postal facility 
                        described in clause (i)(II) for which--
                                    ``(I) an audit under clause (iii) 
                                concludes that the mail volume and 
                                operations of the facility have changed 
                                since the date of termination or 
                                completion of an area mail processing 
                                study described in clause (i)(II)(bb) 
                                to such an extent that the study is no 
                                longer valid; and
                                    ``(II) an area mail processing 
                                study completed under this subsection 
                                concludes that the closing or 
                                consolidation or the postal facility is 
                                justified, taking into consideration 
                                the savings to the Postal Service and 
                                the impact of the closing or 
                                consolidation on postal customers.
                            ``(iii) Audit by inspector general.--
                                    ``(I) In general.--Upon the written 
                                request of the Postmaster General, the 
                                Inspector General shall conduct an 
                                audit of the mail volume and operations 
                                of a postal facility.
                                    ``(II) Completion.--Not later than 
                                90 days after the date on which the 
                                Inspector General receives a request 
                                under subclause (I), the Inspector 
                                General shall submit to the Postmaster 
                                General and the Postal Regulatory 
                                Commission a report containing the 
                                conclusions of the audit under 
                                subclause (I).
            ``(7) Review by postal regulatory commission.--In 
        accordance with section 3662--
                    ``(A) an interested person may lodge a complaint 
                with the Postal Regulatory Commission if the person 
                believes that the closure or consolidation of a postal 
                facility is not in conformance with applicable service 
                standards, including the service standards established 
                under section 201 of the 21st Century Postal Service 
                Act of 2012, or with the requirements of section 417 of 
                this title;
                    ``(B) if a complaint described in subparagraph (A) 
                is lodged relating to the closure or consolidation of a 
                postal facility, upon request by the person lodging the 
                complaint, the Postal Regulatory Commission shall 
                determine whether--
                            ``(i) the area mail processing study 
                        relating to the postal facility used an 
                        appropriate methodology; and
                            ``(ii) the cost savings identified in the 
                        area mail processing study relating to the 
                        postal facility are accurate;
                    ``(C) the Postal Regulatory Commission may direct 
                the Postal Service to conduct another area mail 
                processing study or direct the Postal Service to take 
                action as described under subparagraph (D) if the 
                Postal Regulatory Commission determines that--
                            ``(i) the area mail processing study 
                        relating to the postal facility used an 
                        inappropriate methodology; or
                            ``(ii) the cost savings identified in the 
                        area mail processing study relating to the 
                        postal facility are inaccurate; and
                    ``(D) if the Postal Regulatory Commission finds a 
                complaint lodged by an interested person to be 
                justified, the Commission shall order the Postal 
                Service to take appropriate action to achieve 
                compliance with applicable service standards, including 
                the service standards established under section 201 of 
                the 21st Century Postal Service Act of 2012, or with 
                the requirements of section 417 of this title, or to 
                remedy the effects of any noncompliance.
            ``(8) Postal service website.--For purposes of any notice 
        required to be published on the Postal Service website under 
        this subsection, the Postal Service shall ensure that the 
        Postal Service website--
                    ``(A) is updated routinely; and
                    ``(B) provides any person, at the option of the 
                person, the opportunity to receive relevant updates by 
                electronic mail.
            ``(9) Protection of certain information.--Nothing in this 
        subsection may be construed to require the Postal Service to 
        disclose--
                    ``(A) any proprietary data, including any reference 
                or citation to proprietary data; or
                    ``(B) any information relating to the security of a 
                postal facility.''.
    (b) Complaints Relating to Closing or Consolidation of Postal 
Facilities.--Section 3662 of title 39, United States Code, is amended--
            (1) in subsection (b), by adding at the end the following:
            ``(3) Suspension of effectiveness of determination to close 
        or consolidate postal facilities.--The Postal Regulatory 
        Commission shall suspend the effectiveness of a determination 
        by the Postal Service to close or consolidate a postal facility 
        until the disposition of any complaint challenging the closing 
        or consolidation on the basis that the closing or consolidation 
        is--
                    ``(A) not in conformance with service standards 
                issued under section 3691, including the service 
                standards required to be maintained under section 201 
                of the 21st Century Postal Service Act of 2012; or
                    ``(B) unsupported by evidence on the record that 
                substantial economic savings are likely to be achieved 
                as a result of the closing or consolidation.''; and
            (2) in subsection (c), by inserting ``ordering the Postal 
        Service to keep a postal facility open,'' after ``loss-making 
        products,''.

SEC. 203. ESTABLISHMENT OF RETAIL SERVICE STANDARDS.

    (a) Definition.--In this section, the term ``retail postal 
service'' means service that allows a postal customer to--
            (1) purchase postage;
            (2) enter packages into the mail; and
            (3) procure other services offered by the Postal Service.
    (b) Establishment of Retail Service Standards.--Not later than 6 
months after the date of enactment of this Act, the Postal Service 
shall exercise its authority under section 3691 of title 39, United 
States Code, to establish service standards for market-dominant 
products in order to guarantee customers of the Postal Service regular 
and effective access to retail postal services nationwide (including in 
territories and possessions of the United States) on a reasonable 
basis.
    (c) Contents.--The service standards established under subsection 
(b) shall--
            (1) be consistent with--
                    (A) the obligations of the Postal Service under 
                section 101(b) of title 39, United States Code; and
                    (B) the contents of the plan developed under 
                section 302 of the Postal Accountability and 
                Enhancement Act of 2006 (39 U.S.C. 3691 note), and any 
                updated or revised plan developed under section 204 of 
                this Act; and
            (2) take into account factors including--
                    (A) geography, including the establishment of 
                standards for the proximity of retail postal services 
                to postal customers, including a consideration of the 
                reasonable maximum time a postal customer should expect 
                to travel to access a postal retail location;
                    (B) the importance of facilitating communications 
                for communities with limited or no access to Internet, 
                broadband, or cellular telephone services;
                    (C) population, including population density, 
                demographic factors such as the age, disability status, 
                and degree of poverty of individuals in the area to be 
                served by a location providing postal retail services, 
                and other factors that may impact the ability of postal 
                customers, including businesses, to travel to a postal 
                retail location;
                    (D) the feasibility of offering retail access to 
                postal services in addition to post offices, as 
                described in section 302(d) of the Postal 
                Accountability and Enhancement Act of 2006 (39 U.S.C. 
                3691 note);
                    (E) the requirement that the Postal Service serve 
                remote areas and communities with transportation 
                challenges, including communities in which the effects 
                of inclement weather or other natural conditions might 
                obstruct or otherwise impede access to retail postal 
                services; and
                    (F) the ability of postal customers to access 
                retail postal services in areas that were served by a 
                post office that was closed or consolidated during the 
                1 year period ending on the date of enactment of this 
                Act.

SEC. 204. EXPANDED RETAIL ACCESS.

    (a) Updated Plan.--Not later than 1 year after the date of 
enactment of this Act, the Postal Service shall, in consultation with 
the Commission, develop and submit to Congress a revised and updated 
version of the plan to expand and market retail access to postal 
services required under section 302(d) of the Postal Accountability and 
Enhancement Act of 2006 (39 U.S.C. 3691 note).
    (b) Contents.--The plan required under subsection (a) shall--
            (1) include a consideration of methods to expand and market 
        retail access to postal services described in paragraphs (1) 
        through (8) of section 302(d) of the Postal Accountability and 
        Enhancement Act of 2006 (39 U.S.C. 3691 note);
            (2) where possible, provide for an improvement in customer 
        access to postal services;
            (3) consider the impact of any decisions by the Postal 
        Service relating to the implementation of the plan on rural 
        areas, communities, and small towns; and
            (4) ensure that--
                    (A) rural areas, communities, and small towns 
                continue to receive regular and effective access to 
                retail postal services after implementation of the 
                plan; and
                    (B) the Postal Service solicits community input in 
                accordance with applicable provisions of Federal law.
    (c) Further Updates.--The Postal Service, in consultation with the 
Commission, shall--
            (1) update the plan required under subsection (a) as the 
        Postal Service determines is appropriate; and
            (2) submit each update under paragraph (1) to Congress.

SEC. 205. PRESERVING COMMUNITY POST OFFICES.

    (a) Closing Post Offices.--Section 404(d) of title 39, United 
States Code, is amended to read as follows:
    ``(d)(1) The Postal Service, prior to making a determination under 
subsection (a)(3) of this section as to the necessity for the closing 
or consolidation of any post office and, with respect to a 
determination to close a post office in a rural area, as defined by the 
Census Bureau, prior to making the determinations required by paragraph 
(4), shall--
            ``(A) consider whether--
                    ``(i) to close the post office or consolidate the 
                post office and another post office located within a 
                reasonable distance;
                    ``(ii) instead of closing or consolidating the post 
                office--
                            ``(I) to reduce the number of hours a day 
                        that the post office operates; or
                            ``(II) to continue operating the post 
                        office for the same number of hours a day;
                    ``(iii) to procure a contract providing full, or 
                less than full, retail services in the community served 
                by the post office; or
                    ``(iv) to provide postal services to the community 
                served by the post office--
                            ``(I) through a rural carrier; or
                            ``(II) by co-locating an employee of the 
                        Postal Service at a commercial or government 
                        entity;
            ``(B) provide postal customers served by the post office an 
        opportunity to participate in a nonbinding survey conducted by 
        mail on a preference for an option described in subparagraph 
        (A); and
            ``(C) if the Postal Service determines to close or 
        consolidate the post office, provide adequate notice of its 
        intention to close or consolidate such post office at least 60 
        days prior to the proposed date of such closing or 
        consolidation to--
    ``(i) persons served by such post office to ensure that such 
persons will have an opportunity to present their views; and
    ``(ii) the chief executive of each State whose residents are served 
by such post office to allow the chief executive to appoint a citizen's 
service protection advocate under section 417.
    ``(2) The Postal Service, in making a determination whether or not 
to close or consolidate a post office--
            ``(A) shall consider--
                    ``(i) the effect of such closing or consolidation 
                on the community served by such post office;
                    ``(ii) the effect of the closing or consolidation 
                on small businesses in the area, including shipping and 
                communications with customers and suppliers and the 
                corresponding impact on revenues, operations, and 
                growth; and
                    ``(iii) the effect of such closing or consolidation 
                on employees of the Postal Service employed at such 
                office;
                    ``(iv) whether such closing or consolidation is 
                consistent with--
                            ``(I) the policy of the Government, as 
                        stated in section 101(b) of this title, that 
                        the Postal Service shall provide a maximum 
                        degree of effective and regular postal services 
                        to rural areas, communities, and small towns 
                        where post offices are not self-sustaining; and
                            ``(II) the retail service standards 
                        established under section 203 of the 21st 
                        Century Postal Service Act of 2012;
                    ``(v) the extent to which the community served by 
                the post office lacks access to Internet, broadband and 
                cellular phone service;
                    ``(vi) whether substantial economic savings to the 
                Postal Service would result from such closing or 
                consolidation; and
                    ``(vii) such other factors as the Postal Service 
                determines are necessary; and
            ``(B) may not consider compliance with any provision of the 
        Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et 
        seq.).
    ``(3) Any determination of the Postal Service to close or 
consolidate a post office shall be in writing and shall include the 
findings of the Postal Service with respect to the considerations 
required to be made under paragraph (2) of this subsection and, with 
respect to a determination to close a post office located in a rural 
area, as defined by the Census Bureau, a summary of the determinations 
required under paragraph (4). Such determination and findings shall be 
made available to persons served by such post office.
    ``(4) The Postal Service may not make a determination under 
subsection (a)(3) to close a post office located in a rural area, as 
defined by the Census Bureau, unless the Postal Service--
            ``(A)(i) determines that postal customers served by the 
        post office would continue after the closing to receive 
        substantially similar access to essential items, such as 
        prescription medications and time-sensitive communications, 
        that are sent through the mail; or
            ``(ii) takes action to substantially ameliorate any 
        projected reduction in access to essential items described in 
        clause (i); and
            ``(B) determines that--
                    ``(i) businesses located in the community served by 
                the post office would not suffer substantial financial 
                loss as a result of the closing;
                    ``(ii) any economic loss to the community served by 
                the post office as a result of the closing does not 
                exceed the cost to the Postal Service of not closing 
                the post office;
                    ``(iii) the area served by the post office has 
                adequate access to wired broadband Internet service, as 
                identified on the National Broadband Map of the 
                National Telecommunications and Information 
                Administration; and
                    ``(iv) there is a road connecting the community to 
                another post office that is not more than 10 miles from 
                the post office proposed to be closed (as measured on 
                roads with year-round access).
    ``(5)(A) The Postal Service shall take no action to close or 
consolidate a post office until 60 days after its written determination 
is made available to persons served by such post office.
    ``(B) The Postal Service shall take no action to close or 
consolidate a post office until 60 days after the Postal Service 
provides written notice of the determination under paragraph (3) to--
            ``(i) the State board of elections for the State in which 
        the post office is located; and
            ``(ii) each local board of elections (or equivalent local 
        entity) having jurisdiction of an area served by the post 
        office.
    ``(6) A determination of the Postal Service to close or consolidate 
any post office, station, or branch may be appealed by any person 
served by such office, station, or branch to the Postal Regulatory 
Commission within 30 days after such determination is made available to 
such person. The Commission shall review such determination on the 
basis of the record before the Postal Service in the making of such 
determination. The Commission shall make a determination based upon 
such review no later than 120 days after receiving any appeal under 
this paragraph. The Commission shall set aside any determination, 
findings, and conclusions found to be--
            ``(A) arbitrary, capricious, an abuse of discretion, or 
        otherwise not in accordance with the law;
            ``(B) without observance of procedure required by law;
            ``(C) inconsistent with the delivery service standards 
        required to be maintained under section 201 of the 21st Century 
        Postal Service Act of 2012 or not in conformance with the 
        retail service standards established under section 203 of the 
        21st Century Postal Service Act of 2012; or
            ``(D) unsupported by substantial evidence on the record, 
        including that substantial economic savings are likely to be 
        achieved as a result of the closing or consolidation.
The Commission may affirm or reverse the determination of the Postal 
Service or order that the entire matter be returned for further 
consideration, but the Commission may not modify the determination of 
the Postal Service. The determination of the Postal Service shall be 
suspended until the final disposition of the appeal. The provisions of 
section 556, section 557, and chapter 7 of title 5 shall not apply to 
any review carried out by the Commission under this paragraph.
    ``(7) For purposes of paragraph (6), any appeal received by the 
Commission shall--
            ``(A) if sent to the Commission through the mails, be 
        considered to have been received on the date of the Postal 
        Service postmark on the envelope or other cover in which such 
        appeal is mailed; or
            ``(B) if otherwise lawfully delivered to the Commission, be 
        considered to have been received on the date determined based 
        on any appropriate documentation or other indicia (as 
        determined under regulations of the Commission).
    ``(8) Nothing in this subsection shall be construed to limit the 
right under section 3662--
            ``(A) of an interested person to lodge a complaint with the 
        Postal Regulatory Commission under section 3662 concerning 
        nonconformance with service standards, including the retail 
        service standards established under section 203 of the 21st 
        Century Postal Service Act of 2012; or
            ``(B) of the Postal Regulatory Commission, if the 
        Commission finds a complaint lodged by an interested person to 
        be justified, to order the Postal Service to take appropriate 
        action to achieve compliance with applicable requirements, 
        including the retail service standards established under 
        section 203 of the 21st Century Postal Service Act of 2012, or 
        to remedy the effects of any noncompliance.''.
    (b) Prohibition on Closing Post Offices.--
            (1) Moratorium pending establishment of service 
        standards.--Notwithstanding section 404(d) of title 39, United 
        States Code, as amended by this section, during the period 
        beginning on the date of enactment of this Act and ending on 
        the date on which the Postal Service establishes the service 
        standards under section 203 of this Act, the Postal Service may 
        not close a post office, except as required for the immediate 
        protection of health and safety.
            (2) Moratorium on closing rural post offices.--
                    (A) In general.--Notwithstanding paragraph (1) of 
                this subsection or section 404(d) of title 39, United 
                States Code, during the 12-month period beginning on 
                the date of enactment of this Act, the Postal Service 
                may not close a post office located in a rural area, as 
                defined by the Census Bureau, except as required for 
                the immediate protection of health and safety, or 
                unless there is no significant community opposition to 
                such closure.
                    (B) Rule of construction.--Nothing in this 
                paragraph shall be construed to limit the authority of 
                the Postal Service to implement, consistent with the 
                procedures under section 404(d)(1)(B) of title 39, 
                United States Code, as amended by this Act, cost-saving 
                measures with respect to the post offices described in 
                subparagraph (A), including, as appropriate, the 
                measures required to be considered under clauses (ii), 
                (iii), and (iv) of section 404(d)(1)(A) of title 39, 
                United States Code, as amended by this Act.
    (c) Moratorium To Protect the Ability of Voters To Vote Absentee or 
by Mail.--Notwithstanding subsection (b) of this subsection or 
subsection (d) or (f) of section 404 of title 39, United States Code, 
as amended by this Act, during the period beginning on the date of 
enactment of this Act and ending on November 13, 2012, the Postal 
Service may not close or consolidate a post office or postal facility 
located in a State that conducts all elections by mail or permits no-
excuse absentee voting, except as required for the immediate protection 
of health and safety.
    (d) Historic Post Offices.--Section 404(d) of title 39, United 
States Code, as amended by this section, is amended by adding at the 
end the following:
    ``(9)(A) In this paragraph, the term `historic post office 
building' means a post office building that is a certified historic 
structure, as that term is defined in section 47(c)(3) of the Internal 
Revenue Code of 1986.
    ``(B) In the case of a post office that has been closed and that is 
located within a historic post office building, the Postal Service 
shall provide Federal agencies and State and local government entities 
the opportunity to lease the historic post office building, if--
            ``(i) the Postal Service is unable to sell the building at 
        an acceptable price within a reasonable period of time after 
        the post office has been closed; and
            ``(ii) the Federal agency or State or local government 
        entity that leases the building agrees to--
                    ``(I) restore the historic post office building at 
                no cost to the Postal Service;
                    ``(II) assume responsibility for the maintenance of 
                the historic post office building; and
                    ``(III) make the historic post office building 
                available for public use.''.

SEC. 206. AREA AND DISTRICT OFFICE STRUCTURE.

    (a) Plan Required.--Not later than 1 year after the date of 
enactment of this Act, the Postal Service shall submit to the Committee 
on Homeland Security and Governmental Affairs of the Senate and the 
Committee on Oversight and Governmental Reform of the House of 
Representatives--
            (1) a comprehensive strategic plan to govern decisions 
        relating to area and district office structure that considers 
        efficiency, costs, redundancies, mail volume, technological 
        advancements, operational considerations, and other issues that 
        may be relevant to establishing an effective area and district 
        office structure; and
            (2) a 10-year plan, including a timetable, that provides 
        for consolidation of area and district offices within the 
        continental United States (as defined in section 201(a)) 
        wherever the Postal Service determines a consolidation would--
                    (A) be cost effective; and
                    (B) not substantially and adversely affect the 
                operations of the Postal Service.
    (b) Consolidation.--Beginning not later than 1 year after the date 
of enactment of this Act, the Postal Service shall, consistent with the 
plans required under and the criteria described in subsection (a)--
            (1) consolidate district offices that are located within 50 
        miles of each other;
            (2) consolidate area and district offices that have less 
        than the mean mail volume and number of work hours for all area 
        and district offices; and
            (3) relocate area offices to headquarters.
    (c) Updates.--The Postal Service shall update the plans required 
under subsection (a) not less frequently than once every 5 years.
    (d) State Liaison.--If the Postal Service does not maintain a 
district office in a State, the Postal Service shall designate at least 
1 employee of the district office responsible for Postal Service 
operations in the State to represent the needs of Postal Service 
customers in the State. An employee designated under this subsection to 
represent the needs of Postal Service customers in a State shall be 
located in that State.

SEC. 207. LIMITATIONS ON CHANGES TO MAIL DELIVERY SCHEDULE.

    (a) Limitation on Change in Schedule.--Notwithstanding any other 
provision of law--
            (1) the Postal Service may not establish a general, 
        nationwide delivery schedule of 5 or fewer days per week to 
        street addresses under the authority of the Postal Service 
        under title 39, United States Code, earlier than the date that 
        is 24 months after the date of enactment of this Act; and
            (2) on or after the date that is 24 months after the date 
        of enactment of this Act, the Postal Service may establish a 
        general, nationwide 5-day-per-week delivery schedule to street 
        addresses under the authority of the Postal Service under 
        section 3691 of title 39, United States Code, only in 
        accordance with the requirements and limitations under this 
        section.
    (b) Preconditions.--If the Postal Service intends to establish a 
change in delivery schedule under subsection (a)(2), the Postal Service 
shall--
            (1) identify customers, communities, and small businesses 
        for whom the change may have a disproportionate, negative 
        impact, including the customers identified as ``particularly 
        affected'' in the Advisory Opinion on Elimination of Saturday 
        Delivery issued by the Commission on March 24, 2011;
            (2) develop, to the maximum extent possible, measures to 
        ameliorate any disproportionate, negative impact the change 
        would have on customers and communities identified under 
        paragraph (1), including, where appropriate, providing or 
        expanding access to mailboxes for periodical mailers on days on 
        which the Postal Service does not provide delivery;
            (3) implement measures to increase revenue and reduce 
        costs, including the measures authorized under the amendments 
        made by sections 101, 102, 103, 207, and 211 of this Act;
            (4) evaluate whether any increase in revenue or reduction 
        in costs resulting from the measures implemented under 
        paragraph (3) are sufficient to allow the Postal Service, 
        without implementing a change in delivery schedule under 
        subsection (a), to achieve long-term solvency; and
            (5) not earlier than 15 months after the date of enactment 
        of this Act and not later than 9 months before the effective 
        date proposed by the Postal Service for the change, submit a 
        report on the steps the Postal Service has taken to carry out 
        this subsection to--
                    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate and the Committee on 
                Oversight and Government Reform of the House of 
                Representatives;
                    (B) the Comptroller General of the United States; 
                and
                    (C) the Commission.
    (c) Review.--
            (1) Government accountability office.--Not later than 3 
        months after the date on which the Postal Service submits a 
        report under subsection (b)(5), the Comptroller General shall 
        submit to the Commission and to the Committee on Homeland 
        Security and Governmental Affairs of the Senate and the 
        Committee on Oversight and Government Reform of the House of 
        Representatives a report that contains findings relating to 
        each of the following:
                    (A) Whether the Postal Service has adequately 
                complied with subsection (b)(3), taking into 
                consideration the statutory authority of and 
                limitations on the Postal Service.
                    (B) The accuracy of any statement by the Postal 
                Service that the measures implemented under subsection 
                (b)(3) have increased revenues or reduced costs, and 
                the accuracy of any projection by the Postal Service 
                relating to increased revenue or reduced costs 
                resulting from the measures implemented under 
                subsection (b)(3).
                    (C) The adequacy and methodological soundness of 
                any evaluation conducted by the Postal Service under 
                subsection (b)(4) that led the Postal Service to assert 
                the necessity of a change in delivery schedule under 
                subsection (a)(2).
                    (D) Whether, based on an analysis of the measures 
                implemented by the Postal Service to increase revenues 
                and reduce costs, projections of increased revenue and 
                cost savings, and the details of the profitability plan 
                required under section 401, a change in delivery 
                schedule is necessary to allow the Postal Service to 
                achieve long-term solvency.
            (2) Postal regulatory commission.--
                    (A) Request.--Not later than 6 months before the 
                proposed effective date of a change in delivery 
                schedule under subsection (a), the Postal Service shall 
                submit to the Commission a request for an advisory 
                opinion relating to the change.
                    (B) Advisory opinion.--
                            (i) In general.--The Commission shall--
                                    (I) issue an advisory opinion with 
                                respect to a request under subparagraph 
                                (A), in accordance with the time limits 
                                for the issuance of advisory opinions 
                                under section 3661(b)(2) of title 39, 
                                United States Code, as amended by this 
                                Act; and
                                    (II) submit the advisory opinion to 
                                the Committee on Homeland Security and 
                                Governmental Affairs of the Senate and 
                                the Committee on Oversight and 
                                Government Reform of the House of 
                                Representatives.
                            (ii) Required determinations.--An advisory 
                        opinion under clause (i) shall determine--
                                    (I) whether the measures developed 
                                under subsection (b)(2) ameliorate any 
                                disproportionate, negative impact that 
                                a change in schedule may have on 
                                customers, communities, and small 
                                businesses identified under subsection 
                                (b)(1); and
                                    (II) based on the report submitted 
                                by the Comptroller General under 
                                paragraph (1)--
                                            (aa) whether the Postal 
                                        Service has implemented 
                                        measures to increase revenue 
                                        and reduce costs as required 
                                        under subsection (b)(3);
                                            (bb) whether the 
                                        implementation of the measures 
                                        described in item (aa) has 
                                        increased revenues or reduced 
                                        costs, or is projected to 
                                        further increase revenues or 
                                        reduce costs in the future; and
                                            (cc) whether a change in 
                                        schedule under subsection 
                                        (a)(2) is necessary to allow 
                                        the Postal Service to achieve 
                                        long-term solvency.
            (3) Prohibition on implementation of change in schedule.--
        The Postal Service may not implement a change in delivery 
        schedule under subsection (a)(2)--
                    (A) before the date on which the Comptroller 
                General submits the report required under paragraph 
                (1); and
                    (B) unless the Commission determines under 
                paragraph (2)(B)(ii)(II)(cc) that the Comptroller 
                General has concluded that the change is necessary to 
                allow the Postal Service to become profitable by fiscal 
                year 2015 and to achieve long-term solvency, without 
                regard to whether the Commission determines that the 
                change is advisable.
    (d) Additional Limitations.--
            (1) Rules of construction.--Nothing in this subsection 
        shall be construed to--
                    (A) authorize the reduction, or require an 
                increase, in delivery frequency for any route for which 
                the Postal Service provided delivery on fewer than 6 
                days per week on the date of enactment of this Act;
                    (B) authorize any change in--
                            (i) the days and times that postal retail 
                        service or any mail acceptance is available at 
                        postal retail facilities or processing 
                        facilities; or
                            (ii) the locations at which postal retail 
                        service or mail acceptance occurs at postal 
                        retail facilities or processing facilities;
                    (C) authorize any change in the frequency of 
                delivery to a post office box;
                    (D) prohibit the collection or delivery of a 
                competitive mail product on a weekend, a recognized 
                Federal holiday, or any other specific day of the week; 
                or
                    (E) prohibit the Postal Service from exercising its 
                authority to make changes to processing or retail 
                networks.
            (2) Prohibition on consecutive days without mail 
        delivery.--The Postal Service shall ensure that, under any 
        change in schedule under subsection (a)(2), at no time shall 
        there be more than 2 consecutive days without mail delivery to 
        street addresses, including recognized Federal holidays.
    (e) Definition.--In this section, the term ``long-term solvency'' 
means the ability of the Postal Service to pay debts and meet expenses, 
including the ability to perform maintenance and repairs, make 
investments, and maintain financial reserves, as necessary to fulfill 
the requirements and comply with the policies of title 39, United 
States Code, and other obligations of the Postal Service over the long 
term.

SEC. 208. TIME LIMITS FOR CONSIDERATION OF SERVICE CHANGES.

    Section 3661 of title 39, United States Code, is amended by 
striking subsections (b) and (c) and inserting the following:
    ``(b) Proposed Changes for Market-dominant Products.--
            ``(1) Submission of proposal.--If the Postal Service 
        determines that there should be a change in the nature of 
        postal services relating to market-dominant products that will 
        generally affect service on a nationwide or substantially 
        nationwide basis, the Postal Service shall submit a proposal to 
        the Postal Regulatory Commission requesting an advisory opinion 
        on the change.
            ``(2) Advisory opinion.--Upon receipt of a proposal under 
        paragraph (1), the Postal Regulatory Commission shall--
                    ``(A) provide an opportunity for public comment on 
                the proposal; and
                    ``(B) issue an advisory opinion not later than--
                            ``(i) 90 days after the date on which the 
                        Postal Regulatory Commission receives the 
                        proposal; or
                            ``(ii) a date that the Postal Regulatory 
                        Commission and the Postal Service may, not 
                        later than 1 week after the date on which the 
                        Postal Regulatory Commission receives the 
                        proposal, determine jointly.
            ``(3) Response to opinion.--The Postal Service shall submit 
        to the President and to Congress a response to an advisory 
        opinion issued under paragraph (2) that includes--
                    ``(A) a statement of whether the Postal Service 
                plans to modify the proposal to address any concerns or 
                implement any recommendations made by the Commission; 
                and
                    ``(B) for any concern that the Postal Service 
                determines not to address and any recommendation that 
                the Postal Service determines not to implement, the 
                reasons for the determination.
            ``(4) Action on proposal.--The Postal Service may take 
        action regarding a proposal submitted under paragraph (1)--
                    ``(A) on or after the date that is 30 days after 
                the date on which the Postal Service submits the 
                response required under paragraph (3);
                    ``(B) on or after a date that the Postal Regulatory 
                Commission and the Postal Service may, not later than 1 
                week after the date on which the Postal Regulatory 
                Commission receives a proposal under paragraph (2), 
                determine jointly; or
                    ``(C) after the date described in paragraph (2)(B), 
                if--
                            ``(i) the Postal Regulatory Commission 
                        fails to issue an advisory opinion on or before 
                        the date described in paragraph (2)(B); and
                            ``(ii) the action is not otherwise 
                        prohibited under Federal law.
            ``(5) Modification of timeline.--At any time, the Postal 
        Service and the Postal Regulatory Commission may jointly 
        redetermine a date determined under paragraph (2)(B)(ii) or 
        (4)(B).''.

SEC. 209. PUBLIC PROCEDURES FOR SIGNIFICANT CHANGES TO MAILING 
              SPECIFICATIONS.

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

SEC. 210. NONPOSTAL PRODUCTS AND SERVICES.

    (a) In General.--Section 404 of title 39, United States Code, is 
amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (6) through (8) as 
                paragraphs (7) through (9), respectively; and
                    (B) by inserting after paragraph (5) the following:
            ``(6) after the date of enactment of the 21st Century 
        Postal Service Act of 2012, and except as provided in 
        subsection (e), to provide other services that are not postal 
        services, after the Postal Regulatory Commission--
                    ``(A) makes a determination that the provision of 
                such services--
                            ``(i) uses the processing, transportation, 
                        delivery, retail network, or technology of the 
                        Postal Service;
                            ``(ii) is consistent with the public 
                        interest and a demonstrated or potential public 
                        demand for--
                                    ``(I) the Postal Service to provide 
                                the services instead of another entity 
                                providing the services; or
                                    ``(II) the Postal Service to 
                                provide the services in addition to 
                                another entity providing the services;
                            ``(iii) would not create unfair competition 
                        with the private sector, taking into 
                        consideration the extent to which the Postal 
                        Service will not, either by legal obligation or 
                        voluntarily, comply with any State or local 
                        requirements that are generally applicable to 
                        persons that provide the services;
                            ``(iv) will be undertaken in accordance 
                        with all Federal laws generally applicable to 
                        the provision of such services; and
                            ``(v) has the potential to improve the net 
                        financial position of the Postal Service, based 
                        on a market analysis provided to the Postal 
                        Regulatory Commission by the Postal Service; 
                        and
                    ``(B) for services that the Postal Regulatory 
                Commission determines meet the criteria under 
                subparagraph (A), classifies each such service as a 
                market-dominant product, competitive product, or 
                experimental product, as required under chapter 36 of 
                title 39, United States Code;''; and
            (2) in subsection (e)(2), by striking ``Nothing'' and all 
        that follows through ``except that the'' and inserting ``The''.
    (b) Complaints.--Section 3662(a) of title 39, United States Code, 
is amended by inserting ``404(a)(6)(A),'' after ``403(c),''.
    (c) Market Analysis.--During the 5-year period beginning on the 
date of enactment of this Act, the Postal Service shall submit a copy 
of any market analysis provided to the Commission under section 
404(a)(6)(A)(v) of title 39, United States Code, as amended by this 
section, to the Committee on Homeland Security and Governmental Affairs 
of the Senate and the Committee on Oversight and Government Reform of 
the House of Representatives.

SEC. 211. CHIEF INNOVATION OFFICER; INNOVATION STRATEGY.

    (a) Chief Innovation Officer.--
            (1) In general.--Chapter 2 of title 39, United States Code, 
        is amended by adding at the end the following:
``Sec. 209. Chief innovation officer
    ``(a) Establishment.--There shall be in the Postal Service a Chief 
Innovation Officer appointed by the Postmaster General.
    ``(b) Qualifications.--The Chief Innovation Officer shall have 
proven expertise and a record of accomplishment in areas such as--
            ``(1) the postal and shipping industry;
            ``(2) innovative product research and development;
            ``(3) brand marketing strategy;
            ``(4) new and emerging technology, including communications 
        technology; or
            ``(5) business process management.
    ``(c) Duties.--The Chief Innovation Officer shall lead the 
development and implementation of--
            ``(1) innovative postal products and services, particularly 
        products and services that use new and emerging technology, 
        including communications technology, to improve the net 
        financial position of the Postal Service; and
            ``(2) nonpostal products and services authorized under 
        section 404(a)(6) that have the potential to improve the net 
        financial position of the Postal Service.
    ``(d) Deadline.--The Postmaster General shall appoint a Chief 
Innovation Officer not later than 90 days after the date of enactment 
of the 21st Century Postal Service Act of 2012.
    ``(e) Condition.--
            ``(1) In general.--The Chief Innovation Officer may not 
        hold any other office or position in the Postal Service while 
        serving as Chief Innovation Officer.
            ``(2) Rule of construction.--Nothing in this section shall 
        be construed to prohibit an individual who holds another office 
        or position in the Postal Service at the time the individual is 
        appointed Chief Innovation Officer from serving as the Chief 
        Innovation Officer under this section.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 2 of title 39, United States Code, is 
        amended by adding at the end the following:

``209. Chief innovation officer.''.
    (b) Innovation Strategy.--
            (1) Initial report on innovation strategy.--
                    (A) In general.--Not later than 1 year after the 
                date of enactment of this Act, the Postmaster General, 
                acting through the Chief Innovation Officer, shall 
                submit a report that contains a comprehensive strategy 
                (referred to in this subsection as the ``innovation 
                strategy'') for improving the net financial position of 
                the Postal Service through innovation, including the 
                offering of new postal and nonpostal products and 
                services, to--
                            (i) the Committee on Homeland Security and 
                        Governmental Affairs of the Senate; and
                            (ii) the Committee on Oversight and 
                        Government Reform of the House of 
                        Representatives.
                    (B) Matters to be addressed.--At a minimum, the 
                report on innovation strategy required under 
                subparagraph (A) shall describe--
                            (i) the specific innovative postal and 
                        nonpostal products and services to be developed 
                        and offered by the Postal Service, including--
                                    (I) the nature of the market demand 
                                to be satisfied by each product or 
                                service; and
                                    (II) the estimated date by which 
                                each product or service will be 
                                introduced;
                            (ii) the cost of developing and offering 
                        each product or service;
                            (iii) the anticipated sales volume for each 
                        product or service;
                            (iv) the anticipated revenues and profits 
                        to be generated by each product or service;
                            (v) the likelihood of success of each 
                        product or service and the risks associated 
                        with the development and sale of each product 
                        or service;
                            (vi) the trends anticipated in market 
                        conditions that may affect the success of each 
                        product or service during the 5-year period 
                        beginning on the date of the submission of the 
                        report under subparagraph (A);
                            (vii) any innovations designed to improve 
                        the net financial position of the Postal 
                        Service, other than the offering of new 
                        products and services; and
                            (viii) the metrics that will be used to 
                        assess the effectiveness of the innovation 
                        strategy.
            (2) Annual report.--
                    (A) In general.--Not later than 1 year after the 
                date of the submission of the initial report containing 
                the innovation strategy under paragraph (1), and 
                annually thereafter for 10 years, the Postmaster 
                General, acting through the Chief Innovation Officer, 
                shall submit a report on the implementation of the 
                innovation strategy to--
                            (i) the Committee on Homeland Security and 
                        Governmental Affairs of the Senate; and
                            (ii) the Committee on Oversight and 
                        Government Reform of the House of 
                        Representatives.
                    (B) Matters to be addressed.--At a minimum, an 
                annual report submitted under subparagraph (A) shall 
                include--
                            (i) an update of the initial report on 
                        innovation strategy submitted under paragraph 
                        (1);
                            (ii) a description of the progress made by 
                        the Postal Service in implementing the 
                        products, services, and other innovations 
                        described in the initial report on innovation 
                        strategy;
                            (iii) an analysis of the performance of 
                        each product, service, or other innovation 
                        described in the initial report on innovation 
                        strategy, including--
                                    (I) the revenue generated by each 
                                product or service developed in 
                                accordance with the innovation strategy 
                                under this section and the cost of 
                                developing and offering each product or 
                                service for the preceding year;
                                    (II) trends in each market in which 
                                a product or service is intended to 
                                satisfy a demand;
                                    (III) each product or service 
                                identified in the innovation strategy 
                                that is to be discontinued, the date on 
                                which each discontinuance will occur, 
                                and the reasons for each 
                                discontinuance;
                                    (IV) each alteration that the 
                                Postal Service plans to make to a 
                                product or service identified in the 
                                innovation strategy to address changing 
                                market conditions and an explanation of 
                                how each alteration will ensure the 
                                success of the product or service;
                                    (V) the performance of innovations 
                                other than new products and services 
                                that are designed to improve the net 
                                financial position of the Postal 
                                Service; and
                                    (VI) the performance of the 
                                innovation strategy according to the 
                                metrics described in paragraph 
                                (1)(B)(viii).

SEC. 212. STRATEGIC ADVISORY COMMISSION ON POSTAL SERVICE SOLVENCY AND 
              INNOVATION.

    (a) Establishment.--
            (1) In general.--There is established in the Postal Service 
        a Strategic Advisory Commission on Postal Service Solvency and 
        Innovation (in this section referred to as the ``Advisory 
        Commission'').
            (2) Independence.--The Advisory Commission shall not be 
        subject to the supervision of the Board of Governors of the 
        Postal Service (in this section referred to as the ``Board of 
        Governors''), the Postmaster General, or any other officer or 
        employee of the Postal Service.
    (b) Purpose.--The purpose of the Advisory Commission is--
            (1) to provide strategic guidance to the President, 
        Congress, the Board of Governors, and the Postmaster General on 
        enhancing the long-term solvency of the Postal Service; and
            (2) to foster innovative thinking to address the challenges 
        facing the Postal Service.
    (c) Membership.--
            (1) Composition.--The Advisory Commission shall be composed 
        of 7 members, of whom--
                    (A) 3 members shall be appointed by the President, 
                who shall designate 1 member appointed under this 
                subparagraph to serve as Chairperson of the Advisory 
                Commission; and
                    (B) 1 member shall be appointed by each of--
                            (i) the majority leader of the Senate;
                            (ii) the minority leader of the Senate;
                            (iii) the Speaker of the House of 
                        Representatives; and
                            (iv) the minority leader of the House of 
                        Representatives.
            (2) Qualifications.--Members of the Advisory Commission 
        shall be prominent citizens having--
                    (A) significant depth of experience in such fields 
                as business and public administration;
                    (B) a reputation for innovative thinking;
                    (C) familiarity with new and emerging technologies; 
                and
                    (D) experience with revitalizing organizations that 
                experienced significant financial challenges or other 
                challenges.
            (3) Incompatible offices.--An individual who is appointed 
        to the Advisory Commission may not serve as an elected official 
        or an officer or employee of the Federal Government while 
        serving as a member of the Advisory Commission, except in the 
        capacity of that individual as a member of the Advisory 
        Commission.
            (4) Deadline for appointment.--Each member of the Advisory 
        Commission shall be appointed not later than 45 days after the 
        date of enactment of this Act.
            (5) Meetings; quorum; vacancies.--
                    (A) Meetings.--The Advisory Commission shall meet 
                at the call of the Chairperson or a majority of the 
                members of the Advisory Commission.
                    (B) Quorum.--4 members of the Advisory Commission 
                shall constitute a quorum.
                    (C) Vacancies.--Any vacancy in the Advisory 
                Commission shall not affect the powers of the Advisory 
                Commission, but shall be filled as soon as practicable 
                in the same manner in which the original appointment 
                was made.
    (d) Duties and Powers.--
            (1) Duties.--The Advisory Commission shall--
                    (A) study matters that the Advisory Commission 
                determines are necessary and appropriate to develop a 
                strategic blueprint for the long-term solvency of the 
                Postal Service, including--
                            (i) the financial, operational, and 
                        structural condition of the Postal Service;
                            (ii) alternative strategies and business 
                        models that the Postal Service could adopt;
                            (iii) opportunities for additional postal 
                        and nonpostal products and services that the 
                        Postal Service could offer;
                            (iv) innovative services that postal 
                        services in foreign countries have offered, 
                        including services that respond to the 
                        increasing use of electronic means of 
                        communication; and
                            (v) the governance structure, management 
                        structure, and management of the Postal 
                        Service, including--
                                    (I) the appropriate method of 
                                appointment, qualifications, duties, 
                                and compensation for senior officials 
                                of the Postal Service, including the 
                                Postmaster General; and
                                    (II) the number and functions of 
                                senior officials of the Postal Service 
                                and the number of levels of management 
                                of the Postal Service; and
                    (B) submit the report required under subsection 
                (f).
            (2) Hearings.--The Advisory Commission may hold such 
        hearings, take such testimony, and receive such evidence as is 
        necessary to carry out this section.
            (3) Access to information.--The Advisory Commission may 
        secure directly from the Postal Service, the Board of 
        Governors, the Postal Regulatory Commission, and any other 
        Federal department or agency such information as the Advisory 
        Commission considers necessary to carry out this section. Upon 
        request of the Chairperson of the Advisory Commission, the head 
        of the department or agency shall furnish the information 
        described in the preceding sentence to the Advisory Commission.
    (e) Personnel Matters.--
            (1) Advisory commission members.--
                    (A) Compensation of members.--Each member of the 
                Advisory Commission shall be compensated at a rate 
                equal to the daily equivalent of the annual rate of 
                basic pay prescribed for level IV of the Executive 
                Schedule under section 5315 of title 5, United States 
                Code, for each day during which the member is engaged 
                in the actual performance of the duties of the Advisory 
                Commission.
                    (B) Travel expenses.--Members of the Advisory 
                Commission shall be allowed travel expenses, including 
                per diem in lieu of subsistence, at rates authorized 
                for employees serving intermittently in the Government 
                service under section 5703 of title 5, United States 
                Code, while away from their homes or regular places of 
                business in the performance of services for the 
                Advisory Commission.
            (2) Staff.--
                    (A) Appointment and compensation.--The Chairperson, 
                in accordance with rules agreed upon by the Advisory 
                Commission, shall appoint and fix the compensation of 
                an executive director and such other personnel as may 
                be necessary to enable the Advisory Commission to carry 
                out the functions of the Advisory Commission, without 
                regard to the provisions of title 5, United States 
                Code, governing appointments in the competitive 
                service, and without regard to the provisions of 
                chapter 51 and subchapter III of chapter 53 of such 
                title relating to classification of positions and 
                General Schedule pay rates, except that a rate of pay 
                fixed under this subsection may not exceed the rate 
                payable for level V of the Executive Schedule under 
                section 5316 of title 5, United States Code.
                    (B) Detailees.--Any Federal employee, including an 
                employee of the Postal Service, may be detailed to the 
                Advisory Commission without reimbursement, and such 
                detail shall be without interruption or loss of the 
                civil service rights, status, or privilege of the 
                employee.
                    (C) Consultant services.--The Advisory Commission 
                may procure the services of experts and consultants in 
                accordance with section 3109 of title 5, United States 
                Code, at rates for individuals that do not exceed the 
                daily equivalent of the annual rate of basic pay 
                prescribed for level IV of the Executive Schedule under 
                section 5315 of such title.
    (f) Strategic Blueprint for Long-term Solvency.--
            (1) In general.--Not later than 18 months after the date of 
        enactment of this Act, the Advisory Commission shall submit a 
        report that contains a strategic blueprint to--
                    (A) the President;
                    (B) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (C) the Committee on Oversight and Government 
                Reform of the House of Representatives;
                    (D) the Board of Governors; and
                    (E) the Postmaster General.
            (2) Contents.--The report submitted under paragraph (1) 
        shall contain a strategic blueprint for the long-term solvency 
        of the Postal Service that includes--
                    (A) an assessment of the business model of the 
                Postal Service as of the date on which the report is 
                submitted;
                    (B) an assessment of potential future business 
                models for the Postal Service, including an evaluation 
                of the appropriate balance between--
                            (i) necessary reductions in costs and 
                        services; and
                            (ii) additional opportunities for growth 
                        and revenue;
                    (C) a strategy for addressing significant current 
                and future liabilities;
                    (D) identification of opportunities for further 
                reductions in costs;
                    (E) identification of opportunities for new and 
                innovative products and services;
                    (F) a strategy for future growth;
                    (G) a vision of how the Postal Service will operate 
                in a sustainable manner 20 years after the date of 
                enactment of this Act; and
                    (H) recommendations for any legislative changes 
                necessary to implement the strategic blueprint 
                described in this paragraph.
    (g) Study and Strategic Plan on Inter-agency Agreements for Post 
Offices.--
            (1) Duties of advisory commission.--
                    (A) Study.--
                            (i) In general.--The Advisory Commission 
                        shall conduct a study concerning the 
                        advisability of the Postal Service entering 
                        into inter-agency agreements with Federal, 
                        State, and local agencies, with respect to post 
                        offices, that--
                                    (I) streamline and consolidate 
                                services provided by Federal, State, 
                                and local agencies;
                                    (II) decrease the costs incurred by 
                                Federal agencies in providing services 
                                to the general public; and
                                    (III) improve the efficiency and 
                                maintain the customer service standards 
                                of the Federal, State, and local 
                                agencies.
                            (ii) Clarification of inter-agency 
                        agreements.--The study under clause (i) shall 
                        include consideration of the advisability of 
                        the Postal Service entering into an inter-
                        agency agreement with--
                                    (I) the Bureau of the Census for 
                                the provision of personnel and 
                                resources for the 2020 decennial 
                                census;
                                    (II) the department of motor 
                                vehicles, or an equivalent agency, of 
                                each State for the provision of driver 
                                licenses, vehicle registration, and 
                                voter registration;
                                    (III) the division of wildlife, the 
                                department of natural resources, or an 
                                equivalent agency, of each State for 
                                the provision of hunting and fishing 
                                licenses; and
                                    (IV) other Federal agencies 
                                responsible for providing services to 
                                the general public.
                    (B) Findings.--The Advisory Commission shall--
                            (i) not later than 1 year after the date of 
                        enactment of this Act, submit to the Postal 
                        Service the findings of the study conducted 
                        under subparagraph (A); and
                            (ii) incorporate the findings described in 
                        clause (i) into the strategic blueprint 
                        required under subsection (f).
            (2) Postal service strategic plan.--
                    (A) In general.--Not later than 6 months after the 
                date on which the Advisory Commission submits to the 
                Postal Service the findings under paragraph (1)(B), the 
                Postal Service shall submit a strategic plan for 
                entering into inter-agency agreements concerning post 
                offices to--
                            (i) the Committee on Homeland Security and 
                        Governmental Affairs of the Senate; and
                            (ii) the Committee on Oversight and 
                        Government Reform of the House of 
                        Representatives.
                    (B) Limitations.--The strategic plan submitted 
                under subparagraph (A)--
                            (i) shall be consistent with--
                                    (I) the retail service standards 
                                established under section 203 of this 
                                Act;
                                    (II) section 411 of title 39, 
                                United States Code, as amended by this 
                                Act; and
                                    (III) public interest and demand; 
                                and
                            (ii) may not prevent the implementation of 
                        Postal Service initiatives with respect to 
                        retail access to postal services under sections 
                        203 and 204 of this Act.
                    (C) Cost savings projections.--The strategic plan 
                submitted under subparagraph (A) shall include, for 
                each proposed inter-agency agreement, a projection of 
                cost savings to be realized by the Postal Service and 
                by any other Federal agency that is a party to the 
                agreement.
    (h) Termination of the Commission.--The Advisory Commission shall 
terminate 90 days after the later of--
            (1) the date on which the Advisory Commission submits the 
        report on the strategic blueprint for long-term solvency under 
        subsection (f); and
            (2) the date on which the Advisory Commission submits the 
        findings on inter-agency agreements for post offices under 
        subsection (g).
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal years 2013 and 2014 such sums as may be 
necessary to carry out this section.

SEC. 213. CITIZEN'S SERVICE PROTECTION ADVOCATES.

    (a) In General.--Chapter 4 of title 39, United States Code, is 
amended by adding at the end the following:
``Sec. 417. Citizen's service protection advocates
    ``(a) Definitions.--In this section--
            ``(1) the term `citizen's service protection advocate' 
        means an individual appointed or designated under applicable 
        State law, in the manner described in subsection (b), by the 
        chief executive of a State affected by the closing or 
        consolidation of a post office or postal facility to represent 
        the interests of postal customers affected by the closing or 
        consolidation; and
            ``(2) the term `postal facility' has the meaning given the 
        term in section 404(f).
    ``(b) Appointment of Advocate.--
            ``(1) In general.--The chief executive of a State affected 
        by the proposed closing or consolidation of a post office or 
        postal facility may appoint or designate a citizen's service 
        protection advocate to represent the interests of postal 
        customers affected by the proposed closing or consolidation.
            ``(2) Consultation.--To be considered a citizen's service 
        protection advocate for purposes of this section, an individual 
        must have been appointed or designated by the chief executive 
        of a State in consultation with--
                    ``(A) the mayor (or equivalent official) of any 
                city affected by the closing or consolidation; and
                    ``(B) the commissioner (or equivalent official) of 
                any county or parish affected by the closing or 
                consolidation.
    ``(c) Access to Information and Assistance.--
            ``(1) In general.--Subject to paragraph (2), upon the 
        request of any citizen's service protection advocate appointed 
        under this section, the Postal Service shall provide to the 
        citizen's service protection advocate--
                    ``(A) not later than 15 days after the request, 
                access to any records, reports, audits, reviews, 
                documents, papers, recommendations, or other materials 
                of the Postal Service relating to the closing or 
                consolidation of the relevant post office or postal 
                facility; and
                    ``(B) technical assistance in carrying out the 
                duties of the citizen's service protection advocate.
            ``(2) Limitations.--Nothing in this section may be 
        construed to require the Postal Service to provide to a 
        citizen's service protection advocate any information that is 
        exempt from disclosure under section 552(b) of title 5.
    ``(d) Communication and Consultation.--The Postal Service shall--
            ``(1) provide for regular and efficient communication 
        between a citizen's service protection advocate and the officer 
        or employee of the Postal Service responsible for the closing 
        or consolidation of the relevant post office or postal 
        facility; and
            ``(2) consult with the citizen's service protection 
        advocate in developing and implementing service changes that 
        affect postal customers affected by the closing or 
        consolidation of the relevant post office or postal facility.
    ``(e) Termination of Service.--An individual may not serve as a 
citizen's service protection advocate with respect to the closing or 
consolidation of a post office or postal facility after the later of--
            ``(1) the date on which the Postal Service determines not 
        to close or consolidate the post office or postal facility; and
            ``(2) the date on which the Postal Service determines to 
        close or consolidate the post office or postal facility.''.
    (b) Table of Sections.--The table of sections for chapter 4 of 
title 39, United States Code, is amended by adding at the end the 
following:

``417. Citizen's service protection advocates.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date on which the Postal Service establishes retail 
service standards under section 203.

SEC. 214. CAPITOL COMPLEX POST OFFICES.

    (a) House of Representatives.--
            (1) In general.--The Postal Service shall not maintain or 
        operate more than 1 post office in the United States Capitol 
        Complex, as defined in section 310(a)(3)(B) of the Legislative 
        Branch Appropriations Act, 1990 (2 U.S.C. 130e(a)(3)(B)), which 
        shall be located in a House Office Building.
            (2) Closing of capitol post offices.--The Postal Service 
        shall close any post office in the United States Capitol 
        Complex, as defined in section 310(a)(3)(B) of the Legislative 
        Branch Appropriations Act, 1990 (2 U.S.C. 130e(a)(3)(B)), not 
        permitted under this subsection, without regard to the 
        requirements under section 404(d) of title 39, United States 
        Code.
    (b) Senate.--
            (1) In general.--The Sergeant at Arms and Doorkeeper of the 
        Senate may not enter into, modify, or renew a contract with the 
        Postal Service to maintain or operate more than 1 post office 
        in a Senate Office Building.
            (2) Existing contracts.--Nothing in paragraph (1) may be 
        construed to affect a contract entered into by the Sergeant at 
        Arms and Doorkeeper of the Senate and the Postal Service before 
        the date of enactment of this Act.

             TITLE III--FEDERAL EMPLOYEES' COMPENSATION ACT

SEC. 301. SHORT TITLE; REFERENCES.

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

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

    (a) Conversion of Entitlement at Retirement Age.--
            (1) Definitions.--Section 8101 is amended--
                    (A) in paragraph (18), by striking ``and'' at the 
                end;
                    (B) in paragraph (19), by striking ``and'' at the 
                end;
                    (C) in paragraph (20), by striking the period at 
                the end and inserting a semicolon; and
                    (D) by adding at the end the following:
            ``(21) `retirement age' has the meaning given that term 
        under section 216(l)(1) of the Social Security Act (42 U.S.C. 
        416(l)(1));
            ``(22) `covered claim for total disability' means a claim 
        for a period of total disability that commenced before the date 
        of enactment of the Workers' Compensation Reform Act of 2012;
            ``(23) `covered claim for partial disability' means a claim 
        for a period of partial disability that commenced before the 
        date of enactment of the Workers' Compensation Reform Act of 
        2012; and
            ``(24) `individual who has an exempt disability condition' 
        means an individual--
                    ``(A) who--
                            ``(i) is eligible to receive continuous 
                        periodic compensation for total disability 
                        under section 8105 on the date of enactment of 
                        the Workers' Compensation Reform Act of 2012; 
                        and
                            ``(ii) meets the criteria under section 
                        8105(c);
                    ``(B) who, on the date of enactment of the Workers' 
                Compensation Reform Act of 2012--
                            ``(i) is eligible to receive continuous 
                        periodic compensation for total disability 
                        under section 8105; and
                            ``(ii) has sustained a currently 
                        irreversible severe mental or physical 
                        disability for which the Secretary of Labor has 
                        authorized, for at least the 1-year period 
                        ending on the date of enactment of the Workers' 
                        Compensation Reform Act of 2012, constant in-
                        home care or custodial care, such as placement 
                        in a nursing home; or
                    ``(C) who is eligible to receive continuous 
                periodic compensation for total disability under 
                section 8105--
                            ``(i) for not less than the 3-year period 
                        ending on the date of enactment of the Workers' 
                        Compensation Reform Act of 2012; or
                            ``(ii) if the individual became eligible to 
                        receive continuous periodic compensation for 
                        total disability under section 8105 during the 
                        period beginning on the date that is 3 years 
                        before the date of enactment of the Workers' 
                        Compensation Reform Act of 2012 and ending on 
                        such date of enactment, for not less than the 
                        3-year period beginning on the date on which 
                        the individual became eligible.''.
            (2) Total disability.--Section 8105 is amended--
                    (A) in subsection (a), by striking ``If'' and 
                inserting ``In General.--Subject to subsection (b), 
                if'';
                    (B) by redesignating subsection (b) as subsection 
                (c); and
                    (C) by inserting after subsection (a) the 
                following:
    ``(b) Conversion of Entitlement at Retirement Age.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        basic compensation for total disability for an employee who has 
        attained retirement age shall be 50 percent of the monthly pay 
        of the employee.
            ``(2) Exceptions.--
                    ``(A) Covered recipients who are retirement age, 
                have an exempt disability condition, or face financial 
                hardship.--Paragraph (1) shall not apply to a covered 
                claim for total disability by an employee if the 
                employee--
                            ``(i) on the date of enactment of the 
                        Workers' Compensation Reform Act of 2012, has 
                        attained retirement age;
                            ``(ii) is an individual who has an exempt 
                        disability condition; or
                            ``(iii) is a member of a household that 
                        would meet the income and assets requirements 
                        for eligibility for the supplemental nutrition 
                        assistance program as described in section 5 of 
                        the Food and Nutrition Act of 2008 (7 U.S.C. 
                        2014) (not including any provisions permitting 
                        eligibility due to benefits received under any 
                        other law) if the basic compensation for total 
                        disability of the employee were provided in 
                        accordance with paragraph (1).
                    ``(B) Transition period for certain employees.--For 
                a covered claim for total disability by an employee who 
                is not an employee described in subparagraph (A), the 
                employee shall receive the basic compensation for total 
                disability provided under subsection (a) until the 
                later of--
                            ``(i) the date on which the employee 
                        attains retirement age; and
                            ``(ii) the date that is 3 years after the 
                        date of enactment of the Workers' Compensation 
                        Reform Act of 2012.''.
            (3) Partial disability.--Section 8106 is amended--
                    (A) in subsection (a), by striking ``If'' and 
                inserting ``In General.--Subject to subsection (b), 
                if'';
                    (B) by redesignating subsections (b) and (c) as 
                subsections (c) and (d), respectively; and
                    (C) by inserting after subsection (a) the 
                following:
    ``(b) Conversion of Entitlement at Retirement Age.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        basic compensation for partial disability for an employee who 
        has attained retirement age shall be 50 percent of the 
        difference between the monthly pay of the employee and the 
        monthly wage-earning capacity of the employee after the 
        beginning of the partial disability.
            ``(2) Exceptions.--
                    ``(A) Covered recipients who are retirement age or 
                face financial hardship.--Paragraph (1) shall not apply 
                to a covered claim for partial disability by an 
                employee if the employee--
                            ``(i) on the date of enactment of the 
                        Workers' Compensation Reform Act of 2012, has 
                        attained retirement age; or
                            ``(ii) is a member of a household that 
                        would meet the income and assets requirements 
                        for eligibility for the supplemental nutrition 
                        assistance program as described in section 5 of 
                        the Food and Nutrition Act of 2008 (7 U.S.C. 
                        2014) (not including any provisions permitting 
                        eligibility due to benefits received under any 
                        other law) if the basic compensation for total 
                        disability of the employee were provided in 
                        accordance with paragraph (1).
                    ``(B) Transition period for certain employees.--For 
                a covered claim for partial disability by an employee 
                who is not an employee described in subparagraph (A), 
                the employee shall receive basic compensation for 
                partial disability in accordance with subsection (a) 
                until the later of--
                            ``(i) the date on which the employee 
                        attains retirement age; and
                            ``(ii) the date that is 3 years after the 
                        date of enactment of the Workers' Compensation 
                        Reform Act of 2012.''.

SEC. 303. AUGMENTED COMPENSATION FOR DEPENDENTS.

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

SEC. 304. SCHEDULE COMPENSATION PAYMENTS.

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

SEC. 305. VOCATIONAL REHABILITATION.

    (a) In General.--Section 8104 is amended--
            (1) in subsection (a)--
                    (A) by striking ``(a) The Secretary of Labor may'' 
                and all that follows through ``undergo vocational 
                rehabilitation.'' and inserting the following:
    ``(a) In General.--
            ``(1) Direction.--Except as provided in paragraph (2), not 
        earlier than the date that is 6 months after the date on which 
        an individual eligible for wage-loss compensation under section 
        8105 or 8106 is injured, or by such other date as the Secretary 
        of Labor determines it would be reasonable under the 
        circumstances for the individual to begin vocational 
        rehabilitation, and if vocational rehabilitation may enable the 
        individual to become capable of more gainful employment, the 
        Secretary of Labor shall direct the individual to participate 
        in developing a comprehensive return to work plan and to 
        undergo vocational rehabilitation at a location a reasonable 
        distance from the residence of the individual.'';
                    (B) by striking ``the Secretary of Health, 
                Education, and Welfare in carrying out the purposes of 
                chapter 4 of title 29'' and inserting ``the Secretary 
                of Education in carrying out the purposes of the 
                Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.)'';
                    (C) by striking ``under section 32(b)(1) of title 
                29'' and inserting ``under section 5 of the 
                Rehabilitation Act of 1973 (29 U.S.C. 704)''; and
                    (D) by adding at the end the following:
            ``(2) Exception.--The Secretary of Labor may not direct an 
        individual who has attained retirement age to participate in 
        developing a comprehensive return to work plan or to undergo 
        vocational rehabilitation.'';
            (2) by redesignating subsection (b) as subsection (c);
            (3) by inserting after subsection (a) the following:
    ``(b) Contents of Return to Work Plan.--A return to work plan 
developed under subsection (a)--
            ``(1) shall--
                    ``(A) set forth specific measures designed to 
                increase the wage-earning capacity of an individual;
                    ``(B) take into account the prior training and 
                education of the individual and the training, 
                educational, and employment opportunities reasonably 
                available to the individual; and
                    ``(C) provide that any employment undertaken by the 
                individual under the return to work plan be at a 
                location a reasonable distance from the residence of 
                the individual;
            ``(2) may provide that the Secretary will pay out of 
        amounts in the Employees' Compensation Fund reasonable expenses 
        of vocational rehabilitation (which may include tuition, books, 
        training fees, supplies, equipment, and child or dependent 
        care) during the course of the plan; and
            ``(3) may not be for a period of more than 2 years, unless 
        the Secretary finds good cause to grant an extension, which may 
        be for not more than 2 years.'';
            (4) in subsection (c), as so redesignated--
                    (A) by inserting ``Compensation.--'' before 
                ``Notwithstanding''; and
                    (B) by striking ``, other than employment 
                undertaken pursuant to such rehabilitation''; and
            (5) by adding at the end the following:
    ``(d) Assisted Reemployment Agreements.--
            ``(1) In general.--The Secretary may enter into an assisted 
        reemployment agreement with an agency or instrumentality of any 
        branch of the Federal Government or a State or local government 
        or a private employer that employs an individual eligible for 
        wage-loss compensation under section 8105 or 8106 to enable the 
        individual to return to productive employment.
            ``(2) Contents.--An assisted reemployment agreement under 
        paragraph (1)--
                    ``(A) may provide that the Secretary will use 
                amounts in the Employees' Compensation Fund to 
                reimburse an employer in an amount equal to not more 
                than 100 percent of the compensation the individual 
                would otherwise receive under section 8105 or 8106; and
                    ``(B) may not be for a period of more than 3 years.
    ``(e) List.--To facilitate the hiring of individuals eligible for 
wage-loss compensation under section 8105 or 8106, the Secretary shall 
provide a list of such individuals to the Office of Personnel 
Management, which the Office of Personnel Management shall provide to 
all agencies and instrumentalities of the Federal Government.''.
    (b) Employees' Compensation Fund.--Section 8147 is amended by 
adding at the end:
    ``(d) Notwithstanding subsection (b), any benefits or other 
payments paid to or on behalf of an employee under this subchapter or 
any extension or application thereof for a recurrence of injury, 
consequential injury, aggravation of injury, or increase in percentage 
of impairment to a member for which compensation is provided under the 
schedule under section 8107 suffered in a permanent position with an 
agency or instrumentality of the United States while the employment 
with the agency or instrumentality is covered under an assisted 
reemployment agreement entered into under section 8104(d) shall not be 
included in total cost of benefits and other payments in the statement 
provided to the agency or instrumentality under subsection (b) if the 
injury was originally incurred in a position not covered by an assisted 
reemployment agreement.''.
    (c) Termination of Vocational Rehabilitation Requirement After 
Retirement Age.--Section 8113(b) is amended by adding at the end the 
following: ``An individual who has attained retirement age may not be 
required to undergo vocational rehabilitation.''.
    (d) Mandatory Benefit Reduction for Noncompliance.--Section 8113(b) 
is amended by striking ``may reduce'' and inserting ``shall reduce''.
    (e) Technical and Conforming Amendments.--
            (1) In general.--Subchapter III of chapter 15 of title 31, 
        United States Code, is amended by adding at the end the 
        following:
``Sec. 1538. Authorization for assisted reemployment
    ``Funds may be transferred from the Employees' Compensation Fund 
established under section 8147 of title 5 to the applicable 
appropriations account for an agency or instrumentality of any branch 
of the Federal Government for the purposes of reimbursing the agency or 
instrumentality in accordance with an assisted reemployment agreement 
entered into under section 8104 of title 5.''.
            (2) Table of sections.--The table of sections for chapter 
        15 of title 31, United States Code, is amended by inserting 
        after the item relating to section 1537 the following:

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

SEC. 306. REPORTING REQUIREMENTS.

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

``8106a. Reporting requirements.''.

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

    Section 8123 is amended by adding at the end the following:
    ``(e) Disability Management Review.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `covered employee' means an employee 
                who is in continuous receipt of compensation for total 
                disability under section 8105 for a period of not less 
                than 6 months; and
                    ``(B) the term `disability management review 
                process' means the disability management review process 
                established under paragraph (2)(A).
            ``(2) Establishment.--The Secretary of Labor shall--
                    ``(A) establish a disability management review 
                process for the purpose of certifying and monitoring 
                the disability status and extent of injury of each 
                covered employee; and
                    ``(B) promulgate regulations for the administration 
                of the disability management review process.
            ``(3) Physical examinations required.--Under the disability 
        management review process, the Secretary of Labor shall 
        periodically require covered employees to submit to physical 
        examinations under subsection (a) by physicians selected by the 
        Secretary. A physician conducting a physical examination of a 
        covered employee shall submit to the Secretary a report 
        regarding the nature and extent of the injury to and disability 
        of the covered employee.
            ``(4) Frequency.--
                    ``(A) In general.--The regulations promulgated 
                under paragraph (2)(B) shall specify the process and 
                criteria for determining when and how frequently a 
                physical examination should be conducted for a covered 
                employee.
                    ``(B) Minimum frequency.--
                            ``(i) Initial.--An initial physical 
                        examination shall be conducted not more than a 
                        brief period after the date on which a covered 
                        employee has been in continuous receipt of 
                        compensation for total disability under section 
                        8015 for 6 months.
                            ``(ii) Subsequent examinations.--After the 
                        initial physical examination, physical 
                        examinations of a covered employee shall be 
                        conducted not less than once every 3 years.
            ``(5) Employing agency or instrumentality requests.--
                    ``(A) In general.--The agency or instrumentality 
                employing an employee who has made a claim for 
                compensation for total disability under section 8105 
                may at any time submit a request for the Secretary of 
                Labor to promptly require the employee to submit to a 
                physical examination under this subsection.
                    ``(B) Requesting officer.--A request under 
                subparagraph (A) shall be made on behalf of an agency 
                or instrumentality by--
                            ``(i) the head of the agency or 
                        instrumentality;
                            ``(ii) the Chief Human Capital Officer of 
                        the agency or instrumentality; or
                            ``(iii) if the agency or instrumentality 
                        does not have a Chief Human Capital Officer, an 
                        officer with responsibilities similar to those 
                        of a Chief Human Capital Officer designated by 
                        the head of the agency or instrumentality to 
                        make requests under this paragraph.
                    ``(C) Information.--A request under subparagraph 
                (A) shall be in writing and accompanied by--
                            ``(i) a certification by the officer making 
                        the request that the officer has reviewed the 
                        relevant material in the employee's file;
                            ``(ii) an explanation of why the officer 
                        has determined, based on the materials in the 
                        file and other information known to the 
                        officer, that requiring a physical examination 
                        of the employee under this subsection is 
                        necessary; and
                            ``(iii) copies of the materials relating to 
                        the employee that are relevant to the officer's 
                        determination and request, unless the agency or 
                        instrumentality has a reasonable basis for not 
                        providing the materials.
                    ``(D) Examination.--If the Secretary of Labor 
                receives a request under this paragraph before an 
                employee has undergone an initial physical examination 
                under paragraph (4)(B)(i), the Secretary shall promptly 
                require the physical examination of the employee. A 
                physical examination under this subparagraph shall 
                satisfy the requirement under paragraph (4)(B)(i) that 
                an initial physical examination be conducted.
                    ``(E) After initial examination.--
                            ``(i) In general.--If the Secretary of 
                        Labor receives a request under this paragraph 
                        after an employee has undergone an initial 
                        physical examination under paragraph (4)(B)(i), 
                        the Secretary shall--
                                    ``(I) review the request and the 
                                information, explanation, and other 
                                materials submitted with the request; 
                                and
                                    ``(II) determine whether to require 
                                the physical examination of the 
                                employee who is the subject of the 
                                request.
                            ``(ii) Not granted.--If the Secretary 
                        determines not to grant a request described in 
                        clause (i), the Secretary shall promptly notify 
                        the officer who made the request and provide an 
                        explanation of the reasons why the request was 
                        denied.''.

SEC. 308. WAITING PERIOD.

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

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

SEC. 309. ELECTION OF BENEFITS.

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

SEC. 310. SANCTION FOR NONCOOPERATION WITH FIELD NURSES.

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

SEC. 311. SUBROGATION OF CONTINUATION OF PAY.

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

SEC. 312. INTEGRITY AND COMPLIANCE.

    (a) In General.--Subchapter I of chapter 81 is amended by adding at 
the end the following:
``Sec. 8153. Integrity and Compliance Program
    ``(a) Definitions.--In this section--
            ``(1) the term `FECA program' means the Federal Employees 
        Compensation Program administered under this subchapter;
            ``(2) the term `improper payment' has the meaning given 
        that term in section 2(f) of the Improper Payments Information 
        Act of 2002 (31 U.S.C. 3321 note);
            ``(3) the term `Inspector General'--
                    ``(A) means an Inspector General described in 
                subparagraph (A), (B), or (I) of section 11(b)(1) of 
                the Inspector General Act of 1978 (5 U.S.C. App.); and
                    ``(B) does not include the Inspector General of an 
                entity having no employees covered under the FECA 
                program.
            ``(4) the term `Integrity and Compliance Program' means the 
        Integrity and Compliance Program established under subsection 
        (b);
            ``(5) the term `provider' means a provider of medical or 
        other services under the FECA program;
            ``(6) the term `Secretary' means the Secretary of Labor; 
        and
            ``(7) the term `Task Force' means the FECA Integrity and 
        Compliance Task Force established under subsection (c)(2)(A).
    ``(b) Integrity and Compliance Program.--Not later than 270 days 
after the date of enactment of this section, the Secretary shall 
establish an Integrity and Compliance Program for the purpose of 
preventing, identifying, and recovering fraudulent and other improper 
payments for the FECA program, which shall include--
            ``(1) procedures for identifying potentially improper 
        payments before payment is made to claimants and providers, 
        including, where appropriate, predictive analytics;
            ``(2) reviews after payment is made to identify potentially 
        improper payments to claimants and providers;
            ``(3) on-going screening and verification procedures to 
        ensure the continued eligibility of medical providers to 
        provide services under the FECA program, including licensure, 
        Federal disbarment, and the existence of relevant criminal 
        convictions;
            ``(4) provision of appropriate information, education, and 
        training to claimants and providers on requirements to ensure 
        the integrity of the FECA program, including payments under the 
        FECA program;
            ``(5) appropriate controls and audits to ensure that 
        providers adopt internal controls and procedures for compliance 
        with requirements under the FECA program;
            ``(6) procedures to ensure--
                    ``(A) initial and continuing eligibility of 
                claimants for compensation, benefits, or services under 
                the FECA program; and
                    ``(B) ongoing verification of information in 
                databases relating to claimants to ensure accuracy and 
                completeness; and
            ``(7) sharing and accessing data and information with other 
        agencies and instrumentalities of the United States, including 
        the United States Postal Service.
    ``(c) Interagency Cooperation on Anti-fraud Efforts.--
            ``(1) In general.--In administering the FECA program, 
        including the Integrity and Compliance Program, the Secretary 
        shall cooperate with other agencies and instrumentalities of 
        the United States (including the United States Postal Service) 
        and the Inspectors General of such agencies and 
        instrumentalities to prevent, identify, and recover fraudulent 
        and other improper payments under the FECA program.
            ``(2) Task force.--
                    ``(A) In general.--There is established a task 
                force, which shall be known as the FECA Integrity and 
                Compliance Task Force.
                    ``(B) Membership.--The members of the Task Force 
                shall be--
                            ``(i) the Secretary, who shall serve as the 
                        Chairperson of the Task Force;
                            ``(ii) the Postmaster General, who shall 
                        serve as the Vice Chairperson of the Task 
                        Force;
                            ``(iii) the Attorney General;
                            ``(iv) the Director of the Office of 
                        Management and Budget; and
                            ``(v) other appropriate Federal officials, 
                        as determined by the Chairperson and Vice 
                        Chairperson of the Task Force.
                    ``(C) Advisory members.--The following officials 
                shall attend meetings of the Task Force and participate 
                as ad hoc, advisory members, to provide technical 
                assistance and guidance to the Task Force with respect 
                to the duties of the Task Force:
                            ``(i) The Inspector General of the 
                        Department of Labor.
                            ``(ii) The Inspector General of the United 
                        States Postal Service.
                            ``(iii) The Inspectors General of other 
                        appropriate agencies and instrumentalities of 
                        the United States that employ a significant 
                        number of individuals receiving compensation, 
                        benefits, or services under the FECA program, 
                        as determined by the Chairperson of the Task 
                        Force.
                    ``(D) Duties.--The Task Force shall--
                            ``(i) set forth, in writing, a description 
                        of the respective roles and responsibilities in 
                        preventing, identifying, recovering, and 
                        prosecuting fraud under, and otherwise ensuring 
                        integrity and compliance of, the FECA program 
                        of--
                                    ``(I) the Secretary (including 
                                subordinate officials such as the 
                                Director of the Office of Workers' 
                                Compensation Programs);
                                    ``(II) the Inspector General of the 
                                Department of Labor;
                                    ``(III) the Inspectors General of 
                                agencies and instrumentalities of the 
                                United States that employ claimants 
                                under the FECA program;
                                    ``(IV) the Attorney General; and
                                    ``(V) any other relevant officials;
                            ``(ii) develop procedures for sharing 
                        information of possible fraud under the FECA 
                        program or other intentional misstatements by 
                        claimants or providers under the FECA program, 
                        including procedures addressing--
                                    ``(I) notification of appropriate 
                                officials of the Department of Labor of 
                                potential fraud or other intentional 
                                misstatements, including provision of 
                                supporting information;
                                    ``(II) timely and appropriate 
                                response by officials of the Department 
                                of Labor to notifications described in 
                                subclause (I);
                                    ``(III) the inclusion of 
                                information and evidence relating to 
                                fraud and other intentional 
                                misstatements in criminal, civil, and 
                                administrative proceedings relating to 
                                the provision of compensation, 
                                benefits, or medical services 
                                (including payments to providers) under 
                                the FECA program;
                                    ``(IV) the coordination of criminal 
                                investigations with the administration 
                                of the FECA program; and
                                    ``(V) the protection of information 
                                relating to an investigation of 
                                possible fraud under the FECA program 
                                from potential disclosure, including 
                                requirements that enable investigative 
                                files to be appropriately separated 
                                from case management files;
                            ``(iii) not later than 1 year after the 
                        date of enactment of this section, submit to 
                        the Committee on Homeland Security and 
                        Governmental Affairs of the Senate and the 
                        Committee on Oversight and Government Reform 
                        and the Committee on Education and the 
                        Workforce of the House of Representatives a 
                        report that includes the description and 
                        procedures required under clauses (i) and (ii).
            ``(3) Rule of construction.--Nothing in this subsection 
        shall be construed to limit or restrict any authority of an 
        Inspector General.
    ``(d) Improvements to Access of Federal Databases.--
            ``(1) In general.--In order to improve compliance with the 
        requirements under and the integrity of the FECA program, or as 
        required to otherwise detect and prevent improper payments 
        under the FECA program (including for purposes of computer 
        matching under subsection (e)(1)(D)), upon written request--
                    ``(A) the Commissioner of Social Security shall 
                make available to the Secretary, the Postmaster 
                General, and each Inspector General the Social Security 
                earnings information of a living or deceased employee;
                    ``(B) the Director of the Office of Personnel 
                Management shall make available to the Secretary, the 
                Postmaster General, and each Inspector General the 
                information in the databases of Federal employees and 
                retirees maintained by the Director; and
                    ``(C) the Secretary of Veterans Affairs shall make 
                available to the Secretary, the Postmaster General, and 
                each Inspector General the information in the database 
                of disabled individuals maintained by the Secretary of 
                Veterans Affairs.
            ``(2) National directory of new hires.--Upon written 
        request, the Secretary of Health and Human Services shall make 
        available to the Secretary, the Postmaster General, each 
        Inspector General, and the Comptroller General of the United 
        States the information in the National Directory of New Hires 
        for purposes of carrying out this subchapter, in order to 
        improve compliance with the requirements under and the 
        integrity of the FECA program, or as required to otherwise 
        detect and prevent improper payments under the FECA program 
        (including for purposes of computer matching under subsection 
        (e)(1)(D)). The Comptroller General may obtain information from 
        the National Directory of New Hires for purposes of any audit, 
        evaluation, or investigation, including any audit, evaluation, 
        or investigation relating to program integrity.
            ``(3) Procedures.--The Secretary shall establish procedures 
        for correlating the identity and status of recipients of 
        compensation, benefits, or services under this subchapter with 
        Social Security earnings information described in paragraph 
        (1)(A).
            ``(4) Provision.--Information requested under this 
        subsection shall be provided--
                    ``(A) in a timely manner;
                    ``(B) at a reasonable cost to the Secretary, the 
                Postmaster General, or an Inspector General;
                    ``(C) without cost to the Comptroller General of 
                the United States; and
                    ``(D) in the manner, frequency, and form reasonably 
                specified by the officer making the request, which, 
                upon request, shall include electronic form.
            ``(5) Assessment of data cost-effectiveness.--
                    ``(A) In general.--The Secretary shall consider and 
                assess procedures for correlating the identity and 
                status of recipients of compensation, benefits, or 
                services under this subchapter with information 
                relating to employees, retirees, and individuals 
                described in subparagraphs (B) and (C) of paragraph (1) 
                and paragraph (2).
                    ``(B) Report.--Not later than 1 year after the date 
                of enactment of this section, the Secretary shall 
                submit to the Committee on Homeland Security and 
                Governmental Affairs of the Senate and the Committee on 
                Oversight and Government Reform and the Committee on 
                Education and the Workforce of the House of 
                Representatives a report on the cost-effectiveness of 
                the use of the databases described in subparagraphs (B) 
                and (C) of paragraph (1) and paragraph (2) for program 
                compliance and integrity. The report required under 
                this subparagraph may be included as part of the report 
                required under subsection (f).
            ``(6) United states postal service feca enrollee 
        database.--Not later than 180 days after the date of enactment 
        of this section, in order to track, verify, and communicate 
        with the Secretary and other relevant entities, the Postmaster 
        General shall establish an electronic database of information 
        relating to employees of the United States Postal Service who 
        have applied for or are receiving compensation, benefits, or 
        services under this subchapter.
            ``(7) Rule of construction.--Nothing in this subsection 
        shall be construed to limit the authority of the Comptroller 
        General of the United States under section 716 of title 31.
    ``(e) General Protocols and Security.--
            ``(1) Establishment.--
                    ``(A) In general.--In order to ensure strong 
                information security and privacy standards, the Task 
                Force shall establish protocols for the secure transfer 
                and storage of any information provided to an 
                individual or entity under this section.
                    ``(B) Considerations.--In establishing protocols 
                under subparagraph (A), the Task Force shall consider 
                any recommendations submitted to the Secretary by the 
                Inspector General of the Department of Health and Human 
                Services with respect to the secure transfer and 
                storage of information, and to comply with privacy laws 
                and best practices.
                    ``(C) Fraud case protection.--The Task Force shall 
                establish protocols and procedures to enable 
                information and materials relating to an active 
                investigation of possible fraud relating to the FECA 
                program to be appropriately kept separate from the 
                files for employees relating to the provision of 
                compensation, benefits, or services under the FECA 
                program.
                    ``(D) Computer matching by federal agencies for 
                purposes of investigation and prevention of improper 
                payments and fraud.--
                            ``(i) In general.--Except as provided in 
                        this subparagraph, in accordance with section 
                        552a (commonly known as the Privacy Act of 
                        1974), the Secretary, the Postmaster General, 
                        each Inspector General, and the head of each 
                        agency may enter into computer matching 
                        agreements that allow ongoing data matching 
                        (which shall include automated data matching) 
                        in order to assist in the detection and 
                        prevention of improper payments under the FECA 
                        program.
                            ``(ii) Review.--Not later than 60 days 
                        after a proposal for an agreement under clause 
                        (i) has been presented to a Data Integrity 
                        Board established under section 552a(u) for 
                        consideration, the Data Integrity Board shall 
                        approve or deny the agreement.
                            ``(iii) Termination date.--An agreement 
                        under clause (i)--
                                    ``(I) shall have a termination date 
                                of less than 3 years; and
                                    ``(II) during the 3-month period 
                                ending on the date on which the 
                                agreement is scheduled to terminate, 
                                may be renewed by the agencies entering 
                                the agreement for not more than 3 
                                years.
                            ``(iv) Multiple agencies.--For purposes of 
                        this subparagraph, section 552a(o)(1) shall be 
                        applied by substituting `between the source 
                        agency and the recipient agency or non-Federal 
                        agency or an agreement governing multiple 
                        agencies' for `between the source agency and 
                        the recipient agency or non-Federal agency' in 
                        the matter preceding subparagraph (A).
                            ``(v) Cost-benefit analysis.--An agreement 
                        under clause (i) may be entered without regard 
                        to section 552a(o)(1)(B), relating to a cost-
                        benefit analysis of the proposed matching 
                        program.
                            ``(vi) Guidance by the office of management 
                        and budget.--Not later than 6 months after the 
                        date of enactment of the Workers' Compensation 
                        Reform Act of 2012, and in consultation with 
                        the Council of Inspectors General on Integrity 
                        and Efficiency, the Secretary of Health and 
                        Human Services, the Commissioner of Social 
                        Security, and the head of any other relevant 
                        agency, the Director of the Office of 
                        Management and Budget shall--
                                    ``(I) issue guidance for agencies 
                                regarding implementing this 
                                subparagraph, which shall include 
                                standards for reimbursement costs, when 
                                necessary, between agencies; and
                                    ``(II) establish standards and 
                                develop standard matching agreements 
                                for the purpose of improving the 
                                process for establishing data use or 
                                computer matching agreements.
            ``(2) Compliance.--The Secretary, the Postmaster General, 
        and each Inspector General shall ensure that any information 
        provided to an individual or entity under this section is 
        provided in accordance with protocols established under 
        paragraph (1).
            ``(3) Rule of construction.--Nothing in this section shall 
        be construed to affect the rights of an individual under 
        section 552a(p).
    ``(f) Report.--Not later than 1 year after the date of enactment of 
this section, and annually thereafter for 5 years, the Secretary shall 
submit a report on the activities of the Secretary under this section, 
including implementation of the Integrity and Compliance Program, to--
            ``(1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate; and
            ``(2) the Committee on Oversight and Government Reform and 
        the Committee on Education and the Workforce of the House of 
        Representatives.
    ``(g) GAO Review.--The Comptroller General of the United States 
shall--
            ``(1) conduct periodic reviews of the Integrity and 
        Compliance Program; and
            ``(2) submit reports on the results of the reviews under 
        paragraph (1) to the Committee on Homeland Security and 
        Governmental Affairs of the Senate and the Committee on 
        Oversight and Government Reform and the Committee on Education 
        and the Workforce of the House of Representatives not later 
        than--
                    ``(A) 2 years after the date of enactment of this 
                section; and
                    ``(B) 3 years after submission of the report under 
                subparagraph (A).''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 81 is amended by inserting after the item relating to section 
8152 the following:

``8153. Integrity and Compliance Program.''.
    (c) Effective Date.--This section and the amendments made by this 
section shall take effect on the date of enactment of this Act.

SEC. 313. AMOUNT OF COMPENSATION.

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

SEC. 314. TERRORISM INJURIES; ZONES OF ARMED CONFLICT.

    (a) Covering Terrorism Injuries.--Section 8102(b) of title 5, 
United States Code, is amended in the matter preceding paragraph (1)--
            (1) by inserting ``or from an attack by a terrorist or 
        terrorist organization, either known or unknown,'' after 
        ``force or individual,''; and
            (2) by striking ``outside'' and all that follows through 
        ``1979)'' and inserting ``outside of the United States''.
    (b) Continuation of Pay in a Zone of Armed Conflict.--Section 8118 
of title 5, United States Code, as amended by section 308(b) of this 
Act, is amended--
            (1) in subsection (b), by striking ``Continuation'' and 
        inserting ``Except as provided under subsection (d)(2), 
        continuation'';
            (2) in subsection (c), as redesignated by section 308(b)(4) 
        of this Act, by striking ``subsection (a)'' and inserting 
        ``subsection (a) or (d)'';
            (3) by redesignating subsection (d), as redesignated by 
        section 308(b)(4) of this Act, as subsection (e); and
            (4) inserting after subsection (c) the following:
    ``(d) Continuation of Pay in a Zone of Armed Conflict.--
            ``(1) In general.--Notwithstanding subsection (a), the 
        United States shall authorize the continuation of pay of an 
        employee described in subparagraph (A), (C), (D), or (F) of 
        section 8101(1), who--
                    ``(A) files a claim for a period of wage loss due 
                to an injury in performance of duty in a zone of armed 
                conflict (as determined by the Secretary of Labor under 
                paragraph (3)); and
                    ``(B) files the claim for such wage loss benefit 
                with the immediate superior of the employee not later 
                than 45 days after the later of--
                            ``(i) the termination of the assignment of 
                        the employee to the zone of armed conflict; or
                            ``(ii) the return of the employee to the 
                        United States.
            ``(2) Continuation of pay.--Notwithstanding subsection (b), 
        continuation of pay under this subsection shall be furnished 
        for a period not to exceed 135 days without any break in time 
        or waiting period, unless controverted under regulations 
        prescribed by the Secretary of Labor.
            ``(3) Determination of zones of armed conflict.--For 
        purposes of this subsection, the Secretary of Labor, in 
        consultation with the Secretary of State and the Secretary of 
        Defense, shall determine whether a foreign country or other 
        foreign geographic area outside of the United States (as 
        defined in section 202(a)(7) of the State Department Basic 
        Authorities Act of 1956 (22 U.S.C. 4302(a)(7)) is a zone of 
        armed conflict based on whether--
                    ``(A) the Armed Forces of the United States are 
                involved in hostilities in the country or area;
                    ``(B) the incidence of civil insurrection, civil 
                war, terrorism, or wartime conditions threatens 
                physical harm or imminent danger to the health or well-
                being of United States civilian employees in the 
                country or area;
                    ``(C) the country or area has been designated a 
                combat zone by the President under section 112(c) of 
                the Internal Revenue Code of 1986;
                    ``(D) a contingency operation involving combat 
                operations directly affects civilian employees in the 
                country or area; or
                    ``(E) there exist other relevant conditions and 
                factors.''.

SEC. 315. TECHNICAL AND CONFORMING AMENDMENTS.

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

SEC. 316. REGULATIONS.

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

SEC. 317. EFFECTIVE DATE.

    Except as otherwise provided in this title, this title and the 
amendments made by this title shall take effect 60 days after the date 
of enactment of this Act.

                        TITLE IV--OTHER MATTERS

SEC. 401. SOLVENCY PLAN.

    (a) Plan Required.--Not later than 90 days after the date of 
enactment of this Act, the Postal Service shall submit to the Committee 
on Homeland Security and Governmental Affairs of the Senate, the 
Committee on Oversight and Government Reform of the House of 
Representatives, the Comptroller General of the United States, and the 
Commission a plan describing, in detail, the actions the Postal Service 
will take to achieve long-term solvency (as defined in section 208(e) 
of this Act).
    (b) Considerations.--The plan required under subsection (a) shall 
take into consideration--
            (1) the legal authority of the Postal Service;
            (2) the changes in the legal authority and responsibilities 
        of the Postal Service under this Act;
            (3) any cost savings that the Postal Service anticipates 
        will be achieved through negotiations with employees of the 
        Postal Service;
            (4) projected changes in mail volume;
            (5) the impact of--
                    (A) regulations the Postmaster General was required 
                by Congress to promulgate; and
                    (B) congressional action required to facilitate the 
                profitability of the Postal Service;
            (6) projected changes in the number of employees needed to 
        carry out the responsibilities of the Postal Service; and
            (7) the long-term capital needs of the Postal Service, 
        including the need to maintain, repair, and replace facilities 
        and equipment.
    (c) Updates.--The Postal Service shall update the plan required 
under subsection (a) not less frequently than quarterly, until the last 
quarter of fiscal year 2015.

SEC. 402. POSTAL RATES.

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

SEC. 403. CO-LOCATION WITH FEDERAL AGENCIES.

    Chapter 5 of subtitle I of title 40, United States Code, is amended 
by adding at the end the following:

        ``SUBCHAPTER VII--FEDERAL REAL PROPERTY ASSET MANAGEMENT

``Sec. 701. Definitions
    ``In this subchapter:
            ``(1) Agency field office.--The term `agency field office' 
        means the field office of a landholding agency.
            ``(2) Council.--The term `Council' means the Federal Real 
        Property Council established under section 702.
            ``(3) Landholding agency.--The term `landholding agency' 
        has the same meaning as in section 501(i) of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11411(i)).
            ``(4) Postal property.--The term `Postal property' means 
        real property owned by the United States Postal Service.
``Sec. 702. Establishment of a Federal Real Property Council
    ``(a) Establishment.--There is within the Office of Management and 
Budget a council to be known as the `Federal Real Property Council'.
    ``(b) Purpose.--The purpose of the Council shall be to develop 
guidance for the asset management program of each executive agency.
    ``(c) Composition.--
            ``(1) In general.--The Council shall be composed of--
                    ``(A) the senior real property officers of each 
                executive agency;
                    ``(B) the Deputy Director for Management of the 
                Office of Management and Budget;
                    ``(C) the Controller of the Office of Management 
                and Budget;
                    ``(D) the Administrator of General Services; and
                    ``(E) any other full-time or permanent part-time 
                Federal officials or employees, as the Chairperson 
                determines to be necessary.
            ``(2) Chairperson.--The Deputy Director for Management of 
        the Office of Management and Budget shall serve as Chairperson 
        of the Council.
            ``(3) Administrative support.--The Office of Management and 
        Budget shall provide funding and administrative support for the 
        Council, as appropriate.
``Sec. 703. Co-location among Postal Service properties
    ``(a) Co-location Among Postal Service Properties.--
            ``(1) Identification of real property assets.--Each year, 
        the Council shall--
                    ``(A) identify and compile a list of agency field 
                offices that are suitable for co-location with another 
                Federal civilian real property asset; and
                    ``(B) submit the list to the Director of the Office 
                of Management and Budget and the Postmaster General of 
                the United States.
            ``(2) Postal property.--
                    ``(A) In general.--Not later than 30 days after the 
                completion of a list under paragraph (1), the Director 
                of the Office of Management and Budget, in 
                collaboration with the Postmaster General, shall 
                identify agency field offices on the list that are 
                within reasonable distance of a Postal property.
                    ``(B) Reasonable distance.--For purposes of this 
                paragraph, an agency field office shall be considered 
                to be within reasonable distance of a Postal property 
                if the office would be able to fulfill the mission of 
                the office if the office is located at the Postal 
                property.
                    ``(C) Review by postal service.--Not later than 90 
                days after the receipt of the list submitted under 
                subparagraph (B), the Postmaster General shall--
                            ``(i) review the list; and
                            ``(ii) submit to the Director of the Office 
                        of Management and Budget a report containing 
                        the conclusions of the review.
            ``(3) Terms of co-location.--On approval of the 
        recommendations under paragraph (2) by the Postmaster General 
        and the applicable agency head, the co-location of a Postal 
        property and an agency field office shall consist of the 
        Executive agency that owns or leases the agency field office 
        entering into a lease for space within the Postal property with 
        United States Postal Service that has--
                    ``(A) an initial lease term of not less than 5 
                years; and
                    ``(B) a cost that is within 5 percent of the 
                prevailing market lease rate for a similarly situated 
                space.''.

SEC. 404. COOPERATION WITH STATE AND LOCAL GOVERNMENTS; INTRA-SERVICE 
              AGREEMENTS.

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

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

SEC. 405. SHIPPING OF WINE, BEER, AND DISTILLED SPIRITS.

    (a) Mailability.--
            (1) Nonmailable articles.--Section 1716(f) of title 18, 
        United States Code, is amended by striking ``mails'' and 
        inserting ``mails, except to the extent that the mailing is 
        allowable under section 3001(p) of title 39''.
            (2) Application of laws.--Section 1161 of title 18, United 
        States Code, is amended, by inserting ``, and, with respect to 
        the mailing of distilled spirits, wine, or malt beverages (as 
        those terms are defined in section 117 of the Federal Alcohol 
        Administration Act (27 U.S.C. 211)), is in conformity with 
        section 3001(p) of title 39'' after ``Register''.
    (b) Regulations.--Section 3001 of title 39, United States Code, is 
amended by adding at the end the following:
    ``(p)(1) In this subsection, the terms `distilled spirits', `wine', 
and `malt beverage' have the same meanings as in section 117 of the 
Federal Alcohol Administration Act (27 U.S.C. 211).
    ``(2) Distilled spirits, wine, or malt beverages shall be 
considered mailable if mailed--
            ``(A) in accordance with the laws and regulations of--
                    ``(i) the State, territory, or district of the 
                United States where the sender or duly authorized agent 
                initiates the mailing; and
                    ``(ii) the State, territory, or district of the 
                United States where the addressee or duly authorized 
                agent takes delivery; and
            ``(B) to an addressee who is at least 21 years of age--
                    ``(i) who provides a signature and presents a 
                valid, government-issued photo identification upon 
                delivery; or
                    ``(ii) the duly authorized agent of whom--
                            ``(I) is at least 21 years of age; and
                            ``(II) provides a signature and presents a 
                        valid, government-issued photo identification 
                        upon delivery.
    ``(3) The Postal Service shall prescribe such regulations as may be 
necessary to carry out this subsection.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the earlier of--
            (1) the date on which the Postal Service issues regulations 
        under section 3001(p) of title 39, United States Code, as 
        amended by this section; and
            (2) 120 days after the date of enactment of this Act.

SEC. 406. ANNUAL REPORT ON UNITED STATES MAILING INDUSTRY.

    (a) In General.--Chapter 24 of title 39, United States Code, is 
amended by adding at the end the following:
``Sec. 2403. Annual report on the fiscal stability of the United States 
              mailing industry
    ``(a) In General.--Not later than 1 year after the date of 
enactment of this section, and annually thereafter, the Postal 
Regulatory Commission shall submit a report on the fiscal stability of 
the United States mailing industry with respect to the preceding fiscal 
year to--
            ``(1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate; and
            ``(2) the Committee on Oversight and Government Reform of 
        the House of Representatives.
    ``(b) Assistance.--The United States Postal Service and any Federal 
agency involved in oversight or data collection regarding industry 
sectors relevant to the report under subsection (a) shall provide any 
assistance to the Postal Regulatory Commission that the Postal 
Regulatory Commission determines is necessary in the preparation of a 
report under subsection (a).''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 24 of title 39, United States Code, is amended by adding at the 
end the following:

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

SEC. 407. USE OF NEGOTIATED SERVICE AGREEMENTS.

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

SEC. 408. CONTRACT DISPUTES.

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

SEC. 409. CONTRACTING PROVISIONS.

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

                  ``CHAPTER 7--CONTRACTING PROVISIONS

``Sec.
``701. Definitions.
``702. Advocate for competition.
``703. Delegation of contracting authority.
``704. Posting of noncompetitive purchase requests for noncompetitive 
                            contracts.
``705. Review of ethical issues.
``706. Ethical restrictions on participation in certain contracting 
                            activity.
``707. Congressional oversight authority.
``Sec. 701. Definitions
    ``In this chapter--
            ``(1) the term `contracting officer' means an employee of a 
        covered postal entity who has authority to enter into a postal 
        contract;
            ``(2) the term `covered postal entity' means--
                    ``(A) the Postal Service; or
                    ``(B) the Postal Regulatory Commission;
            ``(3) the term `head of a covered postal entity' means--
                    ``(A) in the case of the Postal Service, the 
                Postmaster General; or
                    ``(B) in the case of the Postal Regulatory 
                Commission, the Chairman of the Postal Regulatory 
                Commission;
            ``(4) the term `postal contract' means any contract 
        (including any agreement or memorandum of understanding) 
        entered into by a covered postal entity for the procurement of 
        goods or services; and
            ``(5) the term `senior procurement executive' means the 
        senior procurement executive of a covered postal entity.
``Sec. 702. Advocate for competition
    ``(a) Establishment and Designation.--
            ``(1) Establishment.--There is established in each covered 
        postal entity an advocate for competition.
            ``(2) Designation.--The head of each covered postal entity 
        shall designate for the covered postal entity 1 or more 
        officers or employees (other than the senior procurement 
        executive) to serve as the advocate for competition.
    ``(b) Responsibilities.--The advocate for competition of each 
covered postal entity shall--
            ``(1) be responsible for promoting competition to the 
        maximum extent practicable consistent with obtaining best value 
        by promoting the acquisition of commercial items and 
        challenging barriers to competition;
            ``(2) review the procurement activities of the covered 
        postal entity; and
            ``(3) prepare and transmit to the head of each covered 
        postal entity, the senior procurement executive of each covered 
        postal entity, the Board of Governors, and Congress, an annual 
        report describing--
                    ``(A) the activities of the advocate under this 
                section;
                    ``(B) initiatives required to promote competition;
                    ``(C) barriers to competition that remain; and
                    ``(D) the number of waivers made by each covered 
                postal entity under section 704(c).
``Sec. 703. Delegation of contracting authority
    ``(a) In General.--
            ``(1) Policy.--Not later than 60 days after the date of 
        enactment of the 21st Century Postal Service Act of 2012, the 
        head of each covered postal entity shall issue a policy on 
        contracting officer delegations of authority for the covered 
        postal entity.
            ``(2) Contents.--The policy issued under paragraph (1) 
        shall require that--
                    ``(A) notwithstanding any delegation of authority 
                with respect to postal contracts, the ultimate 
                responsibility and accountability for the award and 
                administration of postal contracts resides with the 
                senior procurement executive; and
                    ``(B) a contracting officer shall maintain an 
                awareness of and engagement in the activities being 
                performed on postal contracts of which that officer has 
                cognizance, notwithstanding any delegation of authority 
                that may have been executed.
    ``(b) Posting of Delegations.--
            ``(1) In general.--The head of each covered postal entity 
        shall make any delegation of authority for postal contracts 
        outside the functional contracting unit readily available and 
        accessible on the website of the covered postal entity.
            ``(2) Effective date.--This paragraph shall apply to any 
        delegation of authority made on or after 30 days after the date 
        of enactment of the 21st Century Postal Service Act of 2012.
``Sec. 704. Posting of noncompetitive purchase requests for 
              noncompetitive contracts
    ``(a) Posting Required.--
            ``(1) Postal regulatory commission.--The Postal Regulatory 
        Commission shall make the noncompetitive purchase request for 
        any noncompetitive award, including the rationale supporting 
        the noncompetitive award, publicly available on the website of 
        the Postal Regulatory Commission--
                    ``(A) not later than 14 days after the date of the 
                award of the noncompetitive contract; or
                    ``(B) not later than 30 days after the date of the 
                award of the noncompetitive contract, if the basis for 
                the award was a compelling business interest.
            ``(2) Postal service.--The Postal Service shall make the 
        noncompetitive purchase request for any noncompetitive award of 
        a postal contract valued at $250,000 or more, including the 
        rationale supporting the noncompetitive award, publicly 
        available on the website of the Postal Service--
                    ``(A) not later than 14 days after the date of the 
                award; or
                    ``(B) not later than 30 days after the date of the 
                award, if the basis for the award was a compelling 
                business interest.
            ``(3) Adjustments to the posting threshold for the postal 
        service.--
                    ``(A) Review and determination.--Not later than 
                January 31 of each year, the Postal Service shall--
                            ``(i) review the $250,000 threshold 
                        established under paragraph (2); and
                            ``(ii) based on any change in the Consumer 
                        Price Index for all-urban consumers of the 
                        Department of Labor, determine whether an 
                        adjustment to the threshold shall be made.
                    ``(B) Amount of adjustments.--An adjustment under 
                subparagraph (A) shall be made in increments of $5,000. 
                If the Postal Service determines that a change in the 
                Consumer Price Index for a year would require an 
                adjustment in an amount that is less than $5,000, the 
                Postal Service may not make an adjustment to the 
                threshold for the year.
            ``(4) Effective date.--This subsection shall apply to any 
        noncompetitive contract awarded on or after the date that is 90 
        days after the date of enactment of the 21st Century Postal 
        Service Act of 2012.
    ``(b) Public Availability.--
            ``(1) In general.--Subject to paragraph (2), the 
        information required to be made publicly available by a covered 
        postal entity under subsection (a) shall be readily accessible 
        on the website of the covered postal entity.
            ``(2) Protection of proprietary information.--A covered 
        postal entity shall--
                    ``(A) carefully screen any description of the 
                rationale supporting a noncompetitive award required to 
                be made publicly available under subsection (a) to 
                determine whether the description includes proprietary 
                data (including any reference or citation to the 
                proprietary data) or security-related information; and
                    ``(B) remove any proprietary data or security-
                related information before making publicly available a 
                description of the rational supporting a noncompetitive 
                award.
    ``(c) Waivers.--
            ``(1) Waiver permitted.--If a covered postal entity 
        determines that making a noncompetitive purchase request 
        publicly available would risk placing the Postal Service at a 
        competitive disadvantage relative to a private sector 
        competitor, the senior procurement executive, in consultation 
        with the advocate for competition of the covered postal entity, 
        may waive the requirements under subsection (a).
            ``(2) Form and content of waiver.--
                    ``(A) Form.--A waiver under paragraph (1) shall be 
                in the form of a written determination placed in the 
                file of the contract to which the noncompetitive 
                purchase agreement relates.
                    ``(B) Content.--A waiver under paragraph (1) shall 
                include--
                            ``(i) a description of the risk associated 
                        with making the noncompetitive purchase request 
                        publicly available; and
                            ``(ii) a statement that redaction of 
                        sensitive information in the noncompetitive 
                        purchase request would not be sufficient to 
                        protect the Postal Service from being placed at 
                        a competitive disadvantage relative to a 
                        private sector competitor.
            ``(3) Delegation of waiver authority.--A covered postal 
        entity may not delegate the authority to approve a waiver under 
        paragraph (1) to any employee having less authority than the 
        senior procurement executive.
``Sec. 705. Review of ethical issues
    ``If a contracting officer identifies any ethical issues relating 
to a proposed contract and submits those issues and that proposed 
contract to the designated ethics official for the covered postal 
entity before the awarding of that contract, that ethics official 
shall--
            ``(1) review the proposed contract; and
            ``(2) advise the contracting officer on the appropriate 
        resolution of ethical issues.
``Sec. 706. Ethical restrictions on participation in certain 
              contracting activity
    ``(a) Definitions.--In this section--
            ``(1) the term `covered employee' means--
                    ``(A) a contracting officer; or
                    ``(B) any employee of a covered postal entity whose 
                decisionmaking affects a postal contract as determined 
                by regulations prescribed by the head of a covered 
                postal entity;
            ``(2) the term `covered relationship' means a covered 
        relationship described in section 2635.502(b)(1) of title 5, 
        Code of Federal Regulations, or any successor thereto; and
            ``(3) the term `final conviction' means a conviction, 
        whether entered on a verdict or plea, including a plea of nolo 
        contendere, for which a sentence has been imposed.
    ``(b) In General.--
            ``(1) Regulations.--The head of each covered postal entity 
        shall prescribe regulations that--
                    ``(A) require a covered employee to include in the 
                file of any noncompetitive purchase request for a 
                noncompetitive postal contract a written certification 
                that--
                            ``(i) discloses any covered relationship of 
                        the covered employee; and
                            ``(ii) the covered employee will not take 
                        any action with respect to the noncompetitive 
                        purchase request that affects the financial 
                        interests of a friend, relative, or person with 
                        whom the covered employee is affiliated in a 
                        nongovernmental capacity, or otherwise gives 
                        rise to an appearance of the use of public 
                        office for private gain, as described in 
                        section 2635.702 of title 5, Code of Federal 
                        Regulations, or any successor thereto;
                    ``(B) require a contracting officer to consult with 
                the ethics counsel for the covered postal entity 
                regarding any disclosure made by a covered employee 
                under subparagraph (A)(i), to determine whether 
                participation by the covered employee in the 
                noncompetitive purchase request would give rise to a 
                violation of part 2635 of title 5, Code of Federal 
                Regulations (commonly referred to as the `Standards of 
                Ethical Conduct for Employees of the Executive 
                Branch');
                    ``(C) require the ethics counsel for a covered 
                postal entity to review any disclosure made by a 
                contracting officer under subparagraph (A)(i) to 
                determine whether participation by the contracting 
                officer in the noncompetitive purchase request would 
                give rise to a violation of part 2635 of title 5, Code 
                of Federal Regulations (commonly referred to as the 
                `Standards of Ethical Conduct for Employees of the 
                Executive Branch'), or any successor thereto;
                    ``(D) under subsections (d) and (e) of section 
                2635.50 of title 5, Code of Federal Regulations, or any 
                successor thereto, require the ethics counsel for a 
                covered postal entity to--
                            ``(i) authorize a covered employee that 
                        makes a disclosure under subparagraph (A)(i) to 
                        participate in the noncompetitive postal 
                        contract; or
                            ``(ii) disqualify a covered employee that 
                        makes a disclosure under subparagraph (A)(i) 
                        from participating in the noncompetitive postal 
                        contract;
                    ``(E) require a contractor to timely disclose to 
                the contracting officer in a bid, solicitation, award, 
                or performance of a postal contract any conflict of 
                interest with a covered employee; and
                    ``(F) include authority for the head of the covered 
                postal entity to a grant a waiver or otherwise mitigate 
                any organizational or personal conflict of interest, if 
                the head of the covered postal entity determines that 
                the waiver or mitigation is in the best interests of 
                the Postal Service.
            ``(2) Posting of waivers.--Not later than 30 days after the 
        head of a covered postal entity grants a waiver described in 
        paragraph (1)(F), the head of the covered postal entity shall 
        make the waiver publicly available on the website of the 
        covered postal entity.
    ``(c) Contract Voidance and Recovery.--
            ``(1) Unlawful conduct.--In any case in which there is a 
        final conviction for a violation of any provision of chapter 11 
        of title 18 relating to a postal contract, the head of a 
        covered postal entity may--
                    ``(A) void that contract; and
                    ``(B) recover the amounts expended and property 
                transferred by the covered postal entity under that 
                contract.
            ``(2) Obtaining or disclosing procurement information.--
                    ``(A) In general.--In any case where a contractor 
                under a postal contract fails to timely disclose a 
                conflict of interest to the appropriate contracting 
                officer as required under the regulations promulgated 
                under subsection (b)(1)(D), the head of a covered 
                postal entity may--
                            ``(i) void that contract; and
                            ``(ii) recover the amounts expended and 
                        property transferred by the covered postal 
                        entity under that contract.
                    ``(B) Conviction or administrative determination.--
                A case described under subparagraph (A) is any case in 
                which--
                            ``(i) there is a final conviction for an 
                        offense punishable under section 27(e) of the 
                        Office of Federal Procurement Policy Act (41 
                        U.S.C. 423(e)); or
                            ``(ii) the head of a covered postal entity 
                        determines, based upon a preponderance of the 
                        evidence, that the contractor or someone acting 
                        for the contractor has engaged in conduct 
                        constituting an offense punishable under 
                        section 27(e) of that Act.
``Sec. 707. Congressional oversight authority
    ``The Postal Service may not enter into any contract that restricts 
the ability of Congress to exercise oversight authority.''.
    (b) Technical and Conforming Amendment.--The table of chapters for 
part I of title 39, United States Code, is amended by adding at the end 
the following:

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

SEC. 410. EXECUTIVE COMPENSATION.

    (a) Limit on Maximum Compensation.--
            (1) Number of executives.--Section 3686(c) of title 39, 
        United States Code, is amended in the first sentence by 
        striking ``12 officers'' and inserting ``6 officers''.
            (2) Interim limitation.--
                    (A) In general.--Except as provided in subparagraph 
                (B), and notwithstanding section 3686(c) of title 39, 
                United States Code, as amended by this Act, for 2012, 
                2013, 2014, and 2015, the total compensation of an 
                officer or employee of the Postal Service may not 
                exceed the annual amount of basic pay payable for level 
                I of the Executive Schedule under section 5312 of title 
                5.
                    (B) Performance based compensation relating to 
                solvency plan.--
                            (i) In general.--Any compensation relating 
                        to achieving the goals established under the 
                        plan under section 401 shall not apply toward 
                        the limit on compensation under subparagraph 
                        (A).
                            (ii) Other limitations apply.--Nothing in 
                        this subparagraph shall be construed to modify 
                        the limitation on compensation under 
                        subsections (b) and (c) of section 3686 of 
                        title 39, United States Code, as amended by 
                        this Act.
    (b) Carry Over Compensation.--The Postal Service may not pay 
compensation for service performed during a year (in this subsection 
referred to as the ``base year'') in any subsequent year if the total 
amount of compensation provided relating to service during the base 
year would exceed the amount specified under section 3686(c) of title 
39, United States Code, as amended by this Act, or subsection (a)(2), 
as applicable.
    (c) Benefits.--Section 1003 of title 39, United States Code, is 
amended by adding at the end the following:
    ``(e) Limitations on Benefits.--For any fiscal year, an officer or 
employee of the Postal Service who is in a critical senior executive or 
equivalent position, as designated under section 3686(c), may not 
receive fringe benefits (within the meaning given that term under 
section 1005(f)) that are greater than the fringe benefits received by 
supervisory and other managerial personnel who are not subject to 
collective-bargaining agreements under chapter 12.''.
    (d) Effective Date; Applicability.--This section and the amendments 
made by this section shall--
            (1) take effect on the date of enactment of this Act; and
            (2) apply to any contract entered or modified by the Postal 
        Service on or after the date of enactment of this Act.

SEC. 411. SENSE OF THE SENATE.

    It is the sense of the Senate that the Postal Service should not 
close or consolidate any postal facility (as defined in section 404(f) 
of title 39, United States Code, as added by this Act) or post office 
before the date of enactment of this Act.

                         TITLE V--MISCELLANEOUS

SEC. 501. GOVERNMENT SPONSORED CONFERENCES.

    (a) Travel Expenses of Federal Agencies Relating to Conferences.--
            (1) Limitations and reports on travel expenses to 
        conferences.--Chapter 57 of title 5, United States Code, is 
        amended by inserting after section 5711 the following:
``Sec. 5712. Limitations and reports on travel expenses to conferences
    ``(a) In this section, the term--
            ``(1) `conference' means a meeting that--
                    ``(A) is held for consultation, education, or 
                discussion;
                    ``(B) is not held entirely at an agency facility;
                    ``(C) involves costs associated with travel and 
                lodging for some participants; and
                    ``(D) is sponsored by 1 or more agencies, 1 or more 
                organizations that are not agencies, or a combination 
                of such agencies or organizations; and
            ``(2) `international conference' means a conference 
        attended by representatives of --
                    ``(A) the United States Government; and
                    ``(B) any foreign government, international 
                organization, or foreign nongovernmental organization.
    ``(b) No agency may pay the travel expenses for more than 50 
employees of that agency who are stationed in the United States, for 
any international conference occurring outside the United States, 
unless the Secretary of State determines that attendance for such 
employees is in the national interest.
    ``(c) At the beginning of each quarter of each fiscal year, each 
agency shall post on the public Internet website of that agency a 
report on each conference for which the agency paid travel expenses 
during the preceding 3 months that includes--
            ``(1) the itemized expenses paid by the agency, including 
        travel expenses, the cost of scouting for and selecting the 
        location of the conference, and any agency expenditures to 
        otherwise support the conference;
            ``(2) the primary sponsor of the conference;
            ``(3) the location of the conference;
            ``(4) in the case of a conference for which that agency was 
        the primary sponsor, a statement that--
                    ``(A) justifies the location selected;
                    ``(B) demonstrates the cost efficiency of the 
                location; and
                    ``(C) provides a cost benefit analysis of holding a 
                conference rather than conducting a teleconference;
            ``(5) the date of the conference;
            ``(6) a brief explanation how the conference advanced the 
        mission of the agency;
            ``(7) the title of any Federal employee or any individual 
        who is not a Federal employee whose travel expenses or other 
        conference expenses were paid by the agency; and
            ``(8) the total number of individuals whose travel expenses 
        or other conference expenses were paid by the agency.
    ``(d) Each report posted on the public Internet website under 
subsection (c) shall--
            ``(1) be in a searchable electronic format; and
            ``(2) remain on that website for at least 5 years after the 
        date of posting.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 57 of title 5, United States Code, is 
        amended by inserting after the item relating to section 5711 
        the following:

``5712. Limitations and reports on travel expenses to conferences.''.
    (b) Limitations on Annual Travel Expenses.--
            (1) In general.--In the case of each of fiscal years 2012 
        through 2016, an agency (as defined under section 5701(1) of 
        title 5, United States Code) may not make, or obligate to make, 
        expenditures for travel expenses, in an aggregate amount 
        greater than 80 percent of the aggregate amount of such 
        expenses for fiscal year 2010.
            (2) Identification of travel expenses.--Not later than 
        September 1, 2012 and after consultation with the Administrator 
        of General Services and the Director of the Administrative 
        Office of the United States Courts, the Director of the Office 
        of Management and Budget shall establish guidelines for the 
        determination of what expenses constitute travel expenses for 
        purposes of this subsection. The guidelines shall identify 
        specific expenses, and classes of expenses, that are to be 
        treated as travel expenses.
    (c) Conference Transparency and Limitations.--
            (1) Definitions.--In this subsection--
                    (A) the term ``agency'' has the meaning given under 
                section 5701(1) of title 5, United States Code; and
                    (B) the term ``conference'' has the meaning given 
                under section 5712(a)(1) of that title (as added by 
                subsection (a)).
            (2) Public availability of conference materials.--Each 
        agency shall post on the public Internet website of that agency 
        a detailed information on any presentation made by any employee 
        of that agency at a conference, including--
                    (A) any minutes relating to the presentation;
                    (B) any speech delivered;
                    (C) any visual exhibit, including photographs or 
                slides;
                    (D) any video, digital, or audio recordings of the 
                conference; and
                    (E) information regarding any financial support or 
                other assistance from a foundation or other non-Federal 
                source used to pay or defray the costs of the 
                conference, which shall include a certification by the 
                head of the agency that there is no conflict of 
                interest resulting from the support received from each 
                such source.
            (3) Limitation on amount expended on a conference.--
                    (A) In general.--No agency may expend more than 
                $500,000 to support a single conference.
                    (B) Rule of construction.--Nothing in this 
                paragraph shall be construed to preclude an agency from 
                receiving financial support or other assistance from a 
                foundation or other non-Federal source to pay or defray 
                the costs of a conference the total cost of which 
                exceeds $500,000.
            (4) Limitation on the annual number of conferences an 
        agency may support.--No agency may expend funds on more than a 
        single conference sponsored or organized by an organization 
        during any fiscal year, unless the agency is the primary 
        sponsor and organizer of the conference.

            Passed the Senate April 25, 2012.

            Attest:

                                                             Secretary.
112th CONGRESS

  2d Session

                                S. 1789

_______________________________________________________________________

                                 AN ACT

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