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

112th CONGRESS
  1st Session
                                S. 1789

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

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            November 2, 2011

 Mr. Lieberman (for himself, Ms. Collins, Mr. Carper, and Mr. Brown of 
Massachusetts) introduced the following bill; which was read twice and 
referred to the Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

                                 A BILL

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

    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 
2011''.

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 surplus contributions to Federal Employees 
                            Retirement System.
Sec. 102. Additional service credit.
Sec. 103. Medicare coverage for Postal Service Medicare eligible 
                            annuitants.
Sec. 104. Restructuring of payments for retiree health benefits.
Sec. 105. Postal Service Health Benefits Program.
Sec. 106. Arbitration; labor disputes.
                TITLE II--POSTAL SERVICES AND OPERATIONS

Sec. 201. Postal facilities.
Sec. 202. Additional Postal Service planning.
Sec. 203. Area and district office structure.
Sec. 204. Retail service standards.
Sec. 205. Conversion of door delivery points.
Sec. 206. Limitations on changes to mail delivery schedule.
Sec. 207. Time limits for consideration of service changes.
Sec. 208. Public procedures for significant changes to mailing 
                            specifications.
Sec. 209. Nonpostal products and services.
             TITLE III--FEDERAL EMPLOYEES' COMPENSATION ACT

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

Sec. 401. Profitability plan.
Sec. 402. Postal rates.
Sec. 403. Cooperation with State and local governments; intra-Service 
                            agreements.
Sec. 404. Shipping of wine and beer.
Sec. 405. Annual report on United States mailing industry.
Sec. 406. Use of negotiated service agreements.
Sec. 407. Contract disputes.
Sec. 408. Contracting provisions.

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 SURPLUS CONTRIBUTIONS TO 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 `surplus postal contributions' 
means the amount by which the amount computed under paragraph (1)(B) is 
less than zero.
    ``(B) 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 surplus postal 
contributions for that fiscal year for use in accordance with this 
paragraph.
    ``(C) For each of fiscal years 2012, 2013, and 2014, if the amount 
computed under paragraph (1)(B) is less than zero, a portion of the 
surplus postal contributions for the fiscal year shall be used by the 
United States Postal Service for the cost of providing to employees of 
the United States Postal Service who voluntarily separate from service 
before October 1, 2014--
            ``(i) voluntary separation incentive payments (including 
        payments to employees who retire under section 8336(d)(2) or 
        8414(b)(1)(B) before October 1, 2014) that may not exceed the 
        maximum amount provided under section 3523(b)(3)(B) for any 
        employee; and
            ``(ii) retirement service credits, as authorized under 
        section 8332(p) or 8411(m).
    ``(D) Any surplus postal contributions 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. ADDITIONAL SERVICE CREDIT.

    (a) 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, 2014, at the direction of the United States Postal 
Service, the Office shall add not more than 1 year (as specified by the 
United States Postal Service) 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)(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).''.
    (b) 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, 2014, at the direction of the United States Postal 
Service, the Office shall add not more than 2 years (as specified by 
the United States Postal Service) 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)(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).''.

SEC. 103. MEDICARE COVERAGE FOR POSTAL SERVICE MEDICARE ELIGIBLE 
              ANNUITANTS.

    (a) Federal Employees Health Benefits Plans.--
            (1) In general.--Chapter 89 of title 5, United States Code, 
        is amended by inserting after section 8903b the following:
``Sec. 8903c. Postal Service Medicare eligible annuitants
    ``(a) Definitions.--In this section--
            ``(1) the term `contract year' means a calendar year in 
        which health benefits plans are administered under this 
        chapter;
            ``(2) the term `Medicare part A' means the Medicare program 
        for hospital insurance benefits under part A of title XVIII of 
        the Social Security Act (42 U.S.C. 1395c et seq.);
            ``(3) the term `Medicare part B' means the Medicare program 
        for supplementary medical insurance benefits under part B of 
        title XVIII of the Social Security Act (42 U.S.C. 1395j et 
        seq.); and
            ``(4) the term `Postal Service Medicare eligible annuitant' 
        means an individual who--
                    ``(A) is an annuitant covered under this chapter 
                whose Government contribution is paid by the Postal 
                Service under section 8906(g)(2); and
                    ``(B) is eligible to enroll in Medicare part A and 
                Medicare part B.
    ``(b) Requirement of Medicare Enrollment.--
            ``(1) Postal service medicare eligible annuitants.--
                    ``(A) Immediate application.--An individual who is 
                a Postal Service Medicare eligible annuitant on the 
                date of enactment of the 21st Century Postal Service 
                Act of 2011 may not continue coverage under this 
                chapter, unless that individual enrolls in Medicare 
                part A and Medicare part B during the special 
                enrollment period established under section 1837(m) of 
                the Social Security Act.
                    ``(B) Prospective application.--An individual who 
                becomes a Postal Service Medicare eligible annuitant 
                after the date of enactment of the 21st Century Postal 
                Service Act of 2011 may not continue coverage under 
                this chapter, unless after becoming eligible for 
                Medicare part A and Medicare part B that individual 
                enrolls in Medicare part A and Medicare part B during 
                the applicable initial enrollment period under section 
                1837 of the Social Security Act (42 U.S.C. 1395p).
            ``(2) Family members of postal service medicare eligible 
        annuitants.--
                    ``(A) Family member is medicare eligible.--An 
                individual who, on the date of enactment of the 21st 
                Century Postal Service Act of 2011, is a Postal Service 
                Medicare eligible annuitant, is enrolled in self and 
                family coverage under this chapter, and has a member of 
                the family who is eligible to enroll in Medicare part A 
                and Medicare part B, may not continue coverage under 
                this chapter, unless--
                            ``(i) the family member enrolls in Medicare 
                        part A and Medicare part B during the special 
                        enrollment period established under section 
                        1837(m) of the Social Security Act; or
                            ``(ii) the individual enrolls for self only 
                        coverage under this chapter.
                    ``(B) Family member becomes medicare eligible.--An 
                individual who, on the date of enactment of the 21st 
                Century Postal Service Act of 2011, is a Postal Service 
                Medicare eligible annuitant, is enrolled in self and 
                family coverage under this chapter, and has a member of 
                the family who becomes eligible to enroll in Medicare 
                part A and Medicare part B after that date, may not 
                continue coverage under this chapter, unless--
                            ``(i) the family member enrolls in Medicare 
                        part A and Medicare part B during the 
                        applicable initial enrollment period under 
                        section 1837 of the Social Security Act (42 
                        U.S.C. 1395p); or
                            ``(ii) the individual enrolls for self only 
                        coverage under this chapter.
    ``(c) Enrollment Options.--
            ``(1) Establishment.--For contract years following the date 
        of enactment of the 21st Century Postal Service Act of 2011, 
        the Office shall establish enrollment options for health 
        benefits plans that are open only to Postal Service Medicare 
        eligible annuitants or family members of a Postal Service 
        Medicare eligible annuitants who continue coverage under this 
        chapter in accordance with subsection (b).
            ``(2) Enrollment requirement.--Any Postal Service Medicare 
        eligible annuitant or family member of a Postal Service 
        Medicare eligible annuitant who continues coverage under this 
        chapter in accordance with subsection (b) may only enroll in 1 
        of the enrollment options established under paragraph (1).
            ``(3) Value of coverage.--The Office shall ensure that the 
        aggregate actuarial value of coverage under the enrollment 
        options established under this subsection, in combination with 
        the value of coverage under Medicare part A and Medicare part 
        B, shall be not less than the actuarial value of the most 
        closely corresponding enrollment options available under 
        section 8905.
            ``(4) Enrollment options.--
                    ``(A) In general.--The enrollment options 
                established under paragraph (1) shall include--
                            ``(i) an individual option, for Postal 
                        Service Medicare eligible annuitants subject to 
                        subsection (b)(1);
                            ``(ii) a self and family option, for Postal 
                        Service Medicare eligible annuitants subject to 
                        subsection (b)(1) and family members of Postal 
                        Service Medicare eligible annuitants subject to 
                        subsection (b)(2); and
                            ``(iii) a self and family option, for 
                        Postal Service Medicare eligible annuitants 
                        subject to subsection (b)(1) and family members 
                        of Postal Service Medicare eligible annuitants, 
                        including family members not subject to 
                        subsection (b)(2).
                    ``(B) Specific sub-options.--The Office may 
                establish more specific enrollment options within the 
                types of options described under subparagraph (A).
            ``(5) Reduced premiums to account for medicare 
        coordination.--In determining the premiums for the enrollment 
        options under paragraph (4), the Office shall--
                    ``(A) establish a separate claims pool for 
                individuals eligible for coverage under those options; 
                and
                    ``(B) ensure that--
                            ``(i) the premiums are reduced from the 
                        premiums otherwise established under this 
                        chapter to directly reflect the full cost 
                        savings to the health benefits plans due to the 
                        complete coordination of benefits with Medicare 
                        part A and Medicare part B for Postal Service 
                        Medicare eligible annuitants or family members 
                        of Postal Service Medicare eligible annuitants 
                        who continue coverage under this chapter; and
                            ``(ii) the cost savings described under 
                        clause (i) result solely in the reduction of--
                                    ``(I) the premiums paid by the 
                                Postal Service Medicare eligible 
                                annuitant; and
                                    ``(II) the Government contributions 
                                paid by the Postal Service.
    ``(d) Conversion of Enrollment.--
            ``(1) In general.--For any individual who enrolls in 
        Medicare part A and Medicare part B in accordance with 
        subsection (b) other than during the special enrollment period 
        established under section 1837(m) of the Social Security Act, 
        coverage under this chapter shall be converted to coverage 
        under the applicable enrollment option established under 
        subsection (c) upon enrollment in Medicare part A and Medicare 
        part B.
            ``(2) Notification.--The Office shall provide reasonable 
        advance notice to any Postal Service Medicare eligible 
        annuitant or family member of any Postal Service Medicare 
        eligible annuitant that such annuitant or family member will 
        become subject to conversion of enrollment under paragraph (1).
    ``(e) Postal Service Consultation.--The Office shall establish the 
enrollment options and premiums under this section in consultation with 
the Postal Service.''.
            (2) Technical and conforming amendments.--The table of 
        sections for chapter 89 of title 5, United States Code, is 
        amended by inserting after the item relating to section 8903b 
        the following:

``8903c. Postal Service Medicare eligible annuitants.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply with respect to contract years beginning 6 months 
        following the date of enactment of this Act.
    (b) Special Enrollment Period for Postal Service Medicare Eligible 
Annuitants.--
            (1) Special enrollment period.--
                    (A) In general.--Section 1837 of the Social 
                Security Act (42 U.S.C. 1395p) is amended by adding at 
                the end the following new subsection:
    ``(m)(1) In the case of any individual who is a Postal Service 
Medicare eligible annuitant (as defined in section 8903c(a) of title 5, 
United States Code) at the time the individual is entitled to part A 
under section 226(b) or section 226A and who is eligible to enroll but 
who has elected not to enroll (or to be deemed enrolled) during the 
individual's initial enrollment period, there shall be a special 
enrollment period described in paragraph (2).
    ``(2) The special enrollment period described in this paragraph, 
with respect to an individual is the 6-month period, beginning on the 
first day of the month which includes the date of enactment of the 21st 
Century Postal Service Act of 2011.
    ``(3) In the case of an individual who enrolls during the special 
enrollment period provided under paragraph (1), the coverage period 
under this part shall begin on the first day of the month in which the 
individual enrolls.''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall apply to elections made with 
                respect to initial enrollment periods that end after 
                the date of enactment of the 21st Century Postal 
                Service Act of 2011.
            (2) Waiver of increase of premium.--Section 1839(b) of the 
        Social Security Act (42 U.S.C. 1395r(b)) is amended by striking 
        ``(i)(4) or (l)'' and inserting ``(i)(4), (l), or (m)''.

SEC. 104. 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 
2011''.
    (b) Postal Service Retiree Health Benefits Fund.--Section 8909a of 
title 5, United States Code, is amended--
            (1) in subsection (d)--
                    (A) in paragraph (2)(B)--
                            (i) by striking ``2017'' and inserting 
                        ``2012''; and
                            (ii) by inserting after ``later, of'' the 
                        following: ``80 percent of''; and
                    (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 ``2012''; and
            (2) by adding at the end the following:
    ``(e) Subsections (a) through (d) shall be subject to section 105 
of the 21st Century Postal Service Act of 2011.''.

SEC. 105. POSTAL SERVICE HEALTH BENEFITS PROGRAM.

    (a) Definitions.--In this section--
            (1) the term ``covered employee'' means an employee of the 
        Postal Service who is represented by a bargaining 
        representative recognized under section 1203 of title 39, 
        United States Code;
            (2) the term ``Federal Employee Health Benefits Program'' 
        means the health benefits program under chapter 89 of title 5, 
        United States Code; and
            (3) the term ``Postal Service Health Benefits Program'' 
        means the health benefits program that may be agreed to under 
        subsection (b)(1).
    (b) Collective Bargaining.--
            (1) In general.--Consistent with section 1005(f) of title 
        39, United States Code, the Postal Service may negotiate 
        jointly with all bargaining representatives recognized under 
        section 1203 of title 39, United States Code, and enter into a 
        joint collective bargaining agreement with those bargaining 
        representatives to establish the Postal Service Health Benefits 
        Program that satisfies the conditions under subsection (c). The 
        Postal Service and the bargaining representatives shall 
        negotiate in consultation with the Director of the Office of 
        Personnel Management.
            (2) 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.
            (3) 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) provide adequate and appropriate health 
                benefits;
                    (C) be administered by the Postmaster General; and
                    (D) provide for transition of coverage under the 
                Federal Employee Health Benefits Program of covered 
                employees to coverage under the Postal Service Health 
                Benefits Program on January 1, 2013;
            (2) may provide dental benefits; and
            (3) may provide vision benefits.
    (d) Agreement and Implementation.--If a joint agreement is reached 
under subsection (b)--
            (1) the Postal Service shall implement the Postal Service 
        Health Benefits Program;
            (2) the Postal Service Health Benefits Program shall 
        constitute an agreement between the collective bargaining 
        representatives and the Postal Service for purposes of section 
        1005(f) of title 39, United States Code; and
            (3) covered employees may not participate as employees in 
        the Federal Employees Health Benefits Program.
    (e) Government Plan.--The Postal Service Health Benefits Program 
shall be a government plan as that term is defined under section 3(32) 
of Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1002(32)).
    (f) Report.--Not later than June 30, 2013, the Postal Service shall 
submit a report to the Committee on Homeland Security and Governmental 
Affairs of the Senate and the Committee on Oversight and Government 
Reform of the House of Representatives that--
            (1) reports on the implementation of this section; and
            (2) requests any additional statutory authority that the 
        Postal Service determines is necessary to carry out the 
        purposes of this section.

SEC. 106. ARBITRATION; LABOR DISPUTES.

    Section 1207(c)(2) of title 39, United States Code, is amended--
            (1) by inserting ``(A)'' after ``(2)'';
            (2) 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
            (3) by adding at the end the following:
    ``(B) In rendering a decision under this paragraph, the arbitration 
board shall consider such relevant factors as--
            ``(i) the financial condition of the Postal Service;
            ``(ii) the requirements relating to pay and compensation 
        comparability under section 1003(a); and
            ``(iii) the policies of this title.''.

                TITLE II--POSTAL SERVICES AND OPERATIONS

SEC. 201. 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' does not include--
                    ``(A) any post office, station, or branch; or
                    ``(B) any facility used only for administrative 
                functions.
            ``(2) Area mail processing study.--
                    ``(A) New area mail processing studies.--After the 
                date of enactment of this subsection, before making a 
                determination under subsection (a)(3) as to the 
                necessity for the closing or consolidation of any 
                postal facility, the Postal Service shall--
                            ``(i) conduct an area mail processing study 
                        relating to that postal facility that includes 
                        a plan to reduce the capacity of the postal 
                        facility, but not close the postal facility;
                            ``(ii) publish the study on the Postal 
                        Service website; and
                            ``(iii) publish a notice that the study is 
                        complete and available to the public, including 
                        on the Postal Service website.
                    ``(B) Completed or ongoing area mail processing 
                studies.--
                            ``(i) In general.--In the case of a postal 
                        facility described in clause (ii), the Postal 
                        Service shall--
                                    ``(I) consider a plan to reduce the 
                                capacity of the postal facility, but 
                                not close the post facility; and
                                    ``(II) publish the results of the 
                                consideration under subclause (I) with 
                                or as an amendment to the area mail 
                                processing study relating to the postal 
                                facility.
                            ``(ii) Postal facilities.--A postal 
                        facility described in this clause is a postal 
                        facility for which, on or before the date of 
                        enactment of this subsection--
                                    ``(I) an area mail processing study 
                                that does not include a plan to reduce 
                                the capacity of the postal facility, 
                                but not close the facility, has been 
                                completed or is in progress; and
                                    ``(II) a determination as to the 
                                necessity for the closing or 
                                consolidation of the postal facility 
                                has not been made.
            ``(3) Notice; public comment; and public hearing.--If the 
        Postal Service makes a determination under subsection (a)(3) to 
        close or consolidate a postal facility, the Postal Service 
        shall--
                    ``(A) provide notice of the determination to--
                            ``(i) Congress; and
                            ``(ii) the Postal Regulatory Commission;
                    ``(B) provide adequate public notice of the 
                intention of the Postal Service to close or consolidate 
                the postal facility;
                    ``(C) ensure that interested persons have an 
                opportunity to submit public comments during a 45-day 
                period after the notice of intention is provided under 
                subparagraph (B);
                    ``(D) before that 45-day period 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 under 
                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 
        whether or not to close or consolidate a postal facility, shall 
        consider--
                    ``(A) the views presented by interested persons 
                solicited under paragraph (3);
                    ``(B) the effect of the closing or consolidation on 
                the affected community, including any disproportionate 
                impact the closure or consolidation may have on a 
                State, region, or locality;
                    ``(C) the effect of the closing or consolidation on 
                the travel times and distances for affected customers 
                to access services under the proposed closing or 
                consolidation;
                    ``(D) the effect of the closing or consolidation on 
                delivery times for all classes of mail;
                    ``(E) any characteristics of certain geographical 
                areas, such as remoteness, broadband internet 
                availability, and weather-related obstacles to using 
                alternative facilities, that may result in the closing 
                or consolidation having a unique effect; and
                    ``(F) any other factor the Postal Service 
                determines is necessary.
            ``(5) Justification statement.--Before the date on which 
        the Postal Service closes or consolidates a postal facility, 
        the Postal Service shall post on the Postal Service website a 
        closure 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 and publishing the final determination 
                and the justification statement under paragraph (6) 
                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.
            ``(7) 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.''.

SEC. 202. ADDITIONAL POSTAL SERVICE PLANNING.

    Section 302(d) of the Postal Accountability and Enhancement Act of 
2006 (39 U.S.C. 3691 note) is amended--
            (1) in paragraph (8), by striking the period at the end and 
        inserting ``; and'';
            (2) by redesignating paragraphs (1) through (8) as 
        subparagraphs (A) through (H), respectively, and adjusting the 
        margins accordingly;
            (3) in the matter preceding subparagraph (A), as so 
        redesignated, by striking ``shall include'' and inserting the 
        following: ``shall--
            ``(1) include''; and
            (4) by adding at the end the following:
            ``(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 small 
        communities and rural areas; and
            ``(4) ensure that--
                    ``(A) small communities and rural areas 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.''.

SEC. 203. 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 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 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.

SEC. 204. RETAIL SERVICE STANDARDS.

    (a) Establishment of Service Standards.--Not later than 1 year 
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.
    (b) Contents.--The service standards established under subsection 
(a) 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), as 
                amended by section 202 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) population, including population density, 
                demographic factors such as the age and disability 
                status 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;
                    (C) 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); and
                    (D) 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.

SEC. 205. CONVERSION OF DOOR DELIVERY POINTS.

    (a) In General.--Subchapter VII of chapter 36 of title 39, United 
States Code, is amended by adding at the end the following:
``Sec. 3692. Conversion of door delivery points
    ``(a) Definitions.--In this section, the following definitions 
shall apply:
            ``(1) Centralized delivery point.--The term `centralized 
        delivery point' means a group or cluster of mail receptacles at 
        1 delivery point that is within reasonable proximity of the 
        street address associated with the delivery point.
            ``(2) Curbline delivery point.--The term `curbline delivery 
        point' means a delivery point that is--
                    ``(A) adjacent to the street address associated 
                with the delivery point; and
                    ``(B) accessible by vehicle on a street that is not 
                a private driveway.
            ``(3) Door delivery point.--The term `door delivery point' 
        means a delivery point at a door of the structure at a street 
        address.
            ``(4) Sidewalk delivery point.--The term `sidewalk delivery 
        point' means a delivery point on a sidewalk adjacent to the 
        street address associated with the delivery point.
    ``(b) Conversion.--Except as provided in subsection (c), not later 
than September 30, 2015, in accordance with standards established by 
the Postal Service, the Postal Service may, where feasible, convert 
door delivery points to--
            ``(1) curbline delivery points;
            ``(2) sidewalk delivery points; or
            ``(3) centralized delivery points.
    ``(c) Exceptions.--
            ``(1) Continued door delivery.--The Postal Service may 
        allow for the continuation of door delivery due to--
                    ``(A) a physical hardship of a customer;
                    ``(B) weather, in a geographic area where snow 
                removal efforts could obstruct access to mailboxes near 
                a road;
                    ``(C) circumstances in an urban area that preclude 
                efficient use of curbside delivery points;
                    ``(D) other exceptional circumstances, as 
                determined in accordance with regulations issued by the 
                Postal Service; or
                    ``(E) other circumstances in which the Postal 
                Service determines that alternatives to door delivery 
                would not be practical or cost effective.
            ``(2) New door delivery points.--The Postal Service may 
        provide door delivery to a new delivery point in a delivery 
        area that received door delivery on the day before the date of 
        enactment of this section, if the delivery point is established 
        before the delivery area is converted from door delivery under 
        subsection (b).
    ``(d) Solicitation of Comments.--The Postal Service shall establish 
procedures to solicit, consider, and respond to input from individuals 
affected by a conversion under this section.
    ``(e) Review.--Subchapter V of this chapter shall not apply with 
respect to any action taken by the Postal Service under this section.
    ``(f) Report.--Not later than 60 days after the end of each fiscal 
year through fiscal year 2015, the Postal Service shall submit to 
Congress and the Inspector General of the Postal Service a report on 
the implementation of this section during the preceding fiscal year 
that--
            ``(1) includes the number of door delivery points--
                    ``(A) that existed at the end of the fiscal year 
                preceding the preceding fiscal year;
                    ``(B) that existed at the end of the preceding 
                fiscal year;
                    ``(C) that, during the preceding fiscal year, 
                converted to--
                            ``(i) curbline delivery points or sidewalk 
                        delivery points;
                            ``(ii) centralized delivery points; and
                            ``(iii) any other type of delivery point; 
                        and
                    ``(D) for which door delivery was continued under 
                subsection (c)(1);
            ``(2) estimates the cost savings from the conversions from 
        door delivery that occurred during the preceding fiscal year;
            ``(3) describes the progress of the Postal Service toward 
        achieving the requirements under subsection (b); and
            ``(4) provides such additional information as the Postal 
        Service considers appropriate.''.
    (b) Clerical Amendment.--The table of sections for subchapter VII 
of chapter 36 of title 39, United States Code, is amended by adding at 
the end the following:

``3692. Conversion of door delivery points.''.

SEC. 206. 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 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, earlier than the date that is 24 
        months after the date of enactment of this Act; and
            (2) on or after the date that is 24 months after the date 
        of enactment of this Act, the Postal Service may establish a 
        general, nationwide 5-day-per-week delivery schedule to street 
        addresses under the authority of the Postal Service under 
        section 3691 of title 39, United States Code, only in 
        accordance with the requirements and limitations under this 
        section.
    (b) Preconditions.--If the Postal Service intends to establish a 
change in delivery schedule under subsection (a)(2), the Postal Service 
shall--
            (1) identify customers and communities for whom the change 
        may have a disproportionate, negative impact, including the 
        customers identified as ``particularly affected'' in the 
        Advisory Opinion on Elimination of Saturday Delivery issued by 
        the Commission on March 24, 2011;
            (2) develop, to the maximum extent possible, measures to 
        ameliorate any disproportionate, negative impact the change 
        would have on customers and communities identified under 
        paragraph (1), including, where appropriate, providing or 
        expanding access to mailboxes for periodical mailers on days on 
        which the Postal Service does not provide delivery;
            (3) implement measures to increase revenue and reduce 
        costs, including the measures authorized under the amendments 
        made by sections 101, 102, 103, 104, 204, and 208 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--
                    (A) become profitable by fiscal year 2015; and
                    (B) achieve long-term financial 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--
                            (i) become profitable by fiscal year 2015; 
                        and
                            (ii) achieve long-term financial solvency.
            (2) Postal regulatory commission.--
                    (A) Request.--Not later than 6 months before the 
                proposed effective date of a change in delivery 
                schedule under subsection (a), the Postal Service shall 
                submit to the Commission a request for an advisory 
                opinion relating to the change.
                    (B) Advisory opinion.--
                            (i) In general.--The Commission shall--
                                    (I) issue an advisory opinion with 
                                respect to a request under subparagraph 
                                (A), in accordance with the time limits 
                                for the issuance of advisory opinions 
                                under section 3661(b)(2) of title 39, 
                                United States Code, as amended by this 
                                Act; and
                                    (II) submit the advisory opinion to 
                                the Committee on Homeland Security and 
                                Governmental Affairs of the Senate and 
                                the Committee on Oversight and 
                                Government Reform of the House of 
                                Representatives.
                            (ii) Required determinations.--An advisory 
                        opinion under clause (i) shall determine--
                                    (I) whether the measures developed 
                                under subsection (b)(2) ameliorate any 
                                disproportionate, negative impact that 
                                a change in schedule may have on 
                                customers and communities identified 
                                under subsection (b)(1); and
                                    (II) based on the report submitted 
                                by the Comptroller General under 
                                paragraph (1)--
                                            (aa) whether the Postal 
                                        Service has implemented 
                                        measures to reduce operating 
                                        losses 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--

                                                    (AA) become 
                                                profitable by fiscal 
                                                year 2015; and

                                                    (BB) achieve long-
                                                term financial 
                                                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 financial 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; or
                            (ii) the locations at which postal retail 
                        service or mail acceptance occurs;
                    (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 or a recognized 
                Federal holiday; 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.

SEC. 207. 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 the advisory 
        opinion issued under paragraph (2), including any 
        recommendations contained therein.
            ``(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. 208. 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. 209. 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 2011, 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; and
                            ``(iv) 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, 
                experimental product, or new 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) 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)(iv) 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.

             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 2011''.
    (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 2011;
            ``(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 
        2011; 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 2011; 
                        and
                            ``(ii) meets the criteria under 8105(c);
                    ``(B) who, on the date of enactment of the Workers' 
                Compensation Reform Act of 2011--
                            ``(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 2011, constant in-
                        home care or custodial care, such as in 
                        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 2011; 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 2011 and ending on 
                        such date of enactment, for not less than the 
                        3-year period beginning on the date on which 
                        the individual became eligible.''.
            (2) Total disability.--Section 8105 is amended--
                    (A) in subsection (a), by striking ``If'' and 
                inserting ``In General.--Subject to subsection (b), 
                if'';
                    (B) by redesignating subsection (b) as subsection 
                (c); and
                    (C) by inserting after subsection (a) the 
                following:
    ``(b) Conversion of Entitlement at Retirement Age.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        basic compensation for total disability for an employee who has 
        attained retirement age shall be 50 percent of the monthly pay 
        of the employee.
            ``(2) Exceptions.--
                    ``(A) Covered recipients who are retirement age or 
                have an exempt disability condition.--Paragraph (1) 
                shall not apply to a covered claim for total disability 
                by an employee if the employee--
                            ``(i) on the date of enactment of the 
                        Workers' Compensation Reform Act of 2011, has 
                        attained retirement age; or
                            ``(ii) is an individual who has an exempt 
                        disability condition.
                    ``(B) Transition period for certain employees.--For 
                a covered claim for total disability by an employee who 
                is not an employee described in subparagraph (A), the 
                employee shall receive the basic compensation for total 
                disability provided under subsection (a) until the 
                later of--
                            ``(i) the date on which the employee 
                        attains retirement age; and
                            ``(ii) the date that is 3 years after the 
                        date of enactment of the Workers' Compensation 
                        Reform Act of 2011.''.
            (3) Partial disability.--Section 8106 is amended--
                    (A) in subsection (a), by striking ``If'' and 
                inserting ``In General.--Subject to subsection (b), 
                if'';
                    (B) by redesignating subsections (b) and (c) as 
                subsections (c) and (d), respectively; and
                    (C) by inserting after subsection (a) the 
                following:
    ``(b) Conversion of Entitlement at Retirement Age.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        basic compensation for partial disability for an employee who 
        has attained retirement age shall be 50 percent of the 
        difference between the monthly pay of the employee and the 
        monthly wage-earning capacity of the employee after the 
        beginning of the partial disability.
            ``(2) Exceptions.--
                    ``(A) Covered recipients who are retirement age.--
                Paragraph (1) shall not apply to a covered claim for 
                partial disability by an employee if, on the date of 
                enactment of the Workers' Compensation Reform Act of 
                2011, the employee has attained retirement age.
                    ``(B) Transition period for certain employees.--For 
                a covered claim for partial disability by an employee 
                who is not an employee described in subparagraph (A), 
                the employee shall receive basic compensation for 
                partial disability in accordance with subsection (a) 
                until the later of--
                            ``(i) the date on which the employee 
                        attains retirement age; and
                            ``(ii) the date that is 3 years after the 
                        date of enactment of the Workers' Compensation 
                        Reform Act of 2011.''.

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 2011 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 
                2011.
                    ``(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 2011, 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 2011--
                    ``(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 2011, 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 2011, 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 2011 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 2011, 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 later 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 later 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) 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.''.
    (c) Mandatory Benefit Reduction for Noncompliance.--Section 8113(b) 
is amended by striking ``may reduce'' and inserting ``shall reduce''.
    (d) 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) and (e) as subsections 
        (c) and (d), respectively.
    (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.
                    ``(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'' 
        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''.

SEC. 312. SOCIAL SECURITY EARNINGS INFORMATION.

    Section 8116, as amended by section 308, is amended by adding at 
the end the following:
    ``(f) Earnings Information.--Notwithstanding section 552a or any 
other provision of Federal or State law, the Social Security 
Administration shall make available to the Secretary of Labor, upon 
written request, the Social Security earnings information of a living 
or deceased employee who may have sustained an injury or died as a 
result of an injury that is the subject of a claim under this 
subchapter required by the Secretary of Labor to carry out this 
subchapter.''.

SEC. 313. AMOUNT OF COMPENSATION.

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

SEC. 314. TECHNICAL AND CONFORMING AMENDMENTS.

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

SEC. 315. REGULATIONS.

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

                        TITLE IV--OTHER MATTERS

SEC. 401. PROFITABILITY 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--
            (1) become profitable by fiscal year 2015; and
            (2) achieve long-term financial solvency.
    (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; and
            (4) projected changes in mail volume.
    (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 2 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 service; 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 that bears less than 100 percent of the 
                costs attributable to the class, 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. 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'' 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. 404. SHIPPING OF WINE AND BEER.

    (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 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 `wine' and `malt beverage' 
have the same meanings as in section 117 of the Federal Alcohol 
Administration Act (27 U.S.C. 211).
    ``(2) Wine or malt beverages shall be considered mailable if 
mailed--
            ``(A) by a licensed winery or brewery, in accordance with 
        applicable regulations under paragraph (3); and
            ``(B) in accordance with the law of the State, territory, 
        or district of the United States where the addressee or duly 
        authorized agent takes delivery.
    ``(3) The Postal Service shall prescribe such regulations as may be 
necessary to carry out this subsection, including regulations providing 
that--
            ``(A) the mailing shall be by a means established by the 
        Postal Service to ensure direct delivery to the addressee or a 
        duly authorized agent;
            ``(B) the addressee (and any duly authorized agent) shall 
        be an individual at least 21 years of age;
            ``(C) the individual who takes delivery, whether the 
        addressee or a duly authorized agent, shall present a valid, 
        government-issued photo identification at the time of delivery;
            ``(D) the wine or malt beverages may not be for resale or 
        other commercial purpose; and
            ``(E) the winery or brewery involved shall--
                    ``(i) certify in writing to the satisfaction of the 
                Postal Service, through a registration process 
                administered by the Postal Service, that the mailing is 
                not in violation of any provision of this subsection or 
                regulation prescribed under this subsection; and
                    ``(ii) provide any other information or affirmation 
                that the Postal Service may require, including with 
                respect to the prepayment of State alcohol beverage 
                taxes.
    ``(4) For purposes of this subsection--
            ``(A) a winery shall be considered to be licensed if it 
        holds an appropriate basic permit issued--
                    ``(i) under the Federal Alcohol Administration Act; 
                and
                    ``(ii) under the law of the State in which the 
                winery is located; and
            ``(B) a brewery shall be considered to be licensed if--
                    ``(i) it possesses a notice of registration and 
                bond approved by the Alcohol and Tobacco Tax and Trade 
                Bureau of the Department of the Treasury; and
                    ``(ii) it is licensed to manufacture and sell malt 
                beverages in the State in which the brewery is 
                located.''.
    (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. 405. 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. 406. 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. 407. 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. 408. 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.
``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 United States Postal Service; or
                    ``(B) the Postal Regulatory Commission;
            ``(3) the term `head of a covered postal entity' means--
                    ``(A) in the case of the United States 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) There is established in each covered postal entity an 
        advocate for competition.
            ``(2) 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 of the United States 
        Postal Service, 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 2011, 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 2011.
``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) United states postal service.--The United States 
        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 
        United States 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 united 
        states postal service.--
                    ``(A) Review and determination.--Not later than 
                January 31 of each year, the United States 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 United States 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 United States 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 2011.
    ``(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 United States 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 United States 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.''.
    (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''.
                                 <all>
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