II 

Calendar No. 296 

112TH CONGRESS 

2D 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 

JANUARY 26, 2012 

Reported by Mr. LIEBERMAN, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

A BILL 

To improve, sustain, and transform the United States Postal 

Service. 

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

3 SECTION 1. SHORT TITLE. 

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

5 Service Act of 2011.’’ 


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1 SEC. 2. TABLE OF CONTENTS. 

2 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. 


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Sec. 407. Contract disputes. 

Sec. 408. Contracting provisions. 

1 SEC. 3. DEFINITIONS. 

2 In this Act, the following definitions shall apply: 

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

4 means the Postal Regulatory Commission. 

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

7 TITLE I—POSTAL WORKFORCE 

8 MATTERS 

9 SEC. 101. TREATMENT OF SURPLUS CONTRIBUTIONS TO 

10 FEDERAL EMPLOYEES RETIREMENT SYSTEM. 

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

12 amended— 

13 (1) by redesignating paragraph (5) as para14 graph (6); and 

15 (2) by inserting after paragraph (4) the fol16 lowing: 

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

18 contributions’ means the amount by which the amount 

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

20 ‘‘(B) For each fiscal year in which the amount com21 puted under paragraph (1)(B) is less than zero, upon re22 quest of the Postmaster General, the Director shall trans23 fer to the United States Postal Service from the Fund an 


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1 amount equal to the surplus postal contributions for that 

2 fiscal year for use in accordance with this paragraph. 

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

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

5 than zero, a portion of the surplus postal contributions 

6 for the fiscal year shall be used by the United States Post7 al Service for the cost of providing to employees of the 

8 United States Postal Service who voluntarily separate 

9 from service before October 1, 2014— 

10 ‘‘(i) voluntary separation incentive payments 

11 (including payments to employees who retire under 

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

13 1, 2014) that may not exceed the maximum amount 

14 provided under section 3523(b)(3)(B) for any em15 ployee; and 

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

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

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

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

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

21 ‘‘(i) repaying any obligation issued under sec22 tion 2005 of title 39; or 

23 ‘‘(ii) making required payments to— 

24 ‘‘(I) the Employees’ Compensation Fund 

25 established under section 8147; 


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1 ‘‘(II) the Postal Service Retiree Health 

2 Benefits Fund established under section 8909a; 

3 ‘‘(III) the Employees Health Benefits 

4 Fund established under section 8909; or 

5 ‘‘(IV) the Civil Service Retirement and 

6 Disability Fund.’’. 

7 SEC. 102. ADDITIONAL SERVICE CREDIT. 

8 (a) CIVIL SERVICE RETIREMENT SYSTEM.—Section 

9 8332 of title 5, United States Code, is amended by adding 

10 at the end the following: 

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

12 Postal Service who is covered under this subchapter and 

13 voluntarily separates from service before October 1, 2014, 

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

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

16 United States Postal Service) to the total creditable serv17 ice of the employee for purposes of determining entitle18 ment to and computing the amount of an annuity under 

19 this subchapter (except for a disability annuity under sec20 tion 8337). 

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

22 service under this paragraph may not receive a voluntary 

23 separation incentive payment from the United States 

24 Postal Service. 


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1 ‘‘(2)(A) Subject to subparagraph (B), and notwith2 standing any other provision of law, no deduction, deposit, 

3 or contribution shall be required for service credited under 

4 this subsection. 

5 ‘‘(B) The actuarial present value of the additional li6 ability of the United States Postal Service to the Fund 

7 resulting from this subsection shall be included in the 

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

9 (b) FEDERAL EMPLOYEES RETIREMENT SYSTEM.— 

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

11 by adding at the end the following: 

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

13 Postal Service who is covered under this chapter and vol14 untarily separates from service before October 1, 2014, 

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

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

17 the United States Postal Service) to the total creditable 

18 service of the employee for purposes of determining enti19 tlement to and computing the amount of an annuity under 

20 this chapter (except for a disability annuity under sub21 chapter V of that chapter). 

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

23 service under this paragraph may not receive a voluntary 

24 separation incentive payment from the United States 

25 Postal Service. 


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1 ‘‘(2)(A) Subject to subparagraph (B), and notwith2 standing any other provision of law, no deduction, deposit, 

3 or contribution shall be required for service credited under 

4 this subsection. 

5 ‘‘(B) The actuarial present value of the additional li6 ability of the United States Postal Service to the Fund 

7 resulting from this subsection shall be included in the 

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

9 SEC. 103. MEDICARE COVERAGE FOR POSTAL SERVICE 

10 MEDICARE ELIGIBLE ANNUITANTS. 

11 (a) FEDERAL EMPLOYEES HEALTH BENEFITS

12 PLANS.— 

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

14 States Code, is amended by inserting after section 

15 8903b the following: 

16 ‘‘§ 8903c. Postal Service Medicare eligible annuitants 

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

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

19 year in which health benefits plans are administered 

20 under this chapter; 

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

22 Medicare program for hospital insurance benefits 

23 under part A of title XVIII of the Social Security 

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


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

2 Medicare program for supplementary medical insur3 ance benefits under part B of title XVIII of the So4 cial Security Act (42 U.S.C. 1395j et seq.); and 

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

6 annuitant’ means an individual who— 

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

8 chapter whose Government contribution is paid 

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

10 and 

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

12 A and Medicare part B. 

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

14 ‘‘(1) POSTAL SERVICE MEDICARE ELIGIBLE AN15 NUITANTS.— 

16 ‘‘(A) IMMEDIATE APPLICATION.—An indi17 vidual who is a Postal Service Medicare eligible 

18 annuitant on the date of enactment of the 21st 

19 Century Postal Service Act of 2011 may not 

20 continue coverage under this chapter, unless 

21 that individual enrolls in Medicare part A and 

22 Medicare part B during the special enrollment 

23 period established under section 1837(m) of the 

24 Social Security Act. 


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1 ‘‘(B) PROSPECTIVE APPLICATION.—An in2 dividual who becomes a Postal Service Medicare 

3 eligible annuitant after the date of enactment of 

4 the 21st Century Postal Service Act of 2011 

5 may not continue coverage under this chapter, 

6 unless after becoming eligible for Medicare part 

7 A and Medicare part B that individual enrolls 

8 in Medicare part A and Medicare part B during 

9 the applicable initial enrollment period under 

10 section 1837 of the Social Security Act (42 

11 U.S.C. 1395p). 

12 ‘‘(2) FAMILY MEMBERS OF POSTAL SERVICE

13 MEDICARE ELIGIBLE ANNUITANTS.— 

14 ‘‘(A) FAMILY MEMBER IS MEDICARE ELIGI15 BLE.—An individual who, on the date of enact16 ment of the 21st Century Postal Service Act of 

17 2011, is a Postal Service Medicare eligible an18 nuitant, is enrolled in self and family coverage 

19 under this chapter, and has a member of the 

20 family who is eligible to enroll in Medicare part 

21 A and Medicare part B, may not continue cov22 erage under this chapter, unless— 

23 ‘‘(i) the family member enrolls in 

24 Medicare part A and Medicare part B dur25 ing the special enrollment period estabVerDate Mar 15 2010 22:34 Jan 26, 2012 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6401 E:\BILLS\S1789.RS S1789

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1 lished under section 1837(m) of the Social 

2 Security Act; or 

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

4 coverage under this chapter. 

5 ‘‘(B) FAMILY MEMBER BECOMES MEDI6 CARE ELIGIBLE.—An individual who, on the 

7 date of enactment of the 21st Century Postal 

8 Service Act of 2011, is a Postal Service Medi9 care eligible annuitant, is enrolled in self and 

10 family coverage under this chapter, and has a 

11 member of the family who becomes eligible to 

12 enroll in Medicare part A and Medicare part B 

13 after that date, may not continue coverage 

14 under this chapter, unless— 

15 ‘‘(i) the family member enrolls in 

16 Medicare part A and Medicare part B dur17 ing the applicable initial enrollment period 

18 under section 1837 of the Social Security 

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

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

21 coverage under this chapter. 

22 ‘‘(c) ENROLLMENT OPTIONS.— 

23 ‘‘(1) ESTABLISHMENT.—For contract years fol24 lowing the date of enactment of the 21st Century 

25 Postal Service Act of 2011, the Office shall establish 


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1 enrollment options for health benefits plans that are 

2 open only to Postal Service Medicare eligible annu3 itants or family members of a Postal Service Medi4 care eligible annuitants who continue coverage under 

5 this chapter in accordance with subsection (b). 

6 ‘‘(2) ENROLLMENT REQUIREMENT.—Any Post7 al Service Medicare eligible annuitant or family 

8 member of a Postal Service Medicare eligible annu9 itant who continues coverage under this chapter in 

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

11 of the enrollment options established under para12 graph (1). 

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

14 ensure that the aggregate actuarial value of coverage 

15 under the enrollment options established under this 

16 subsection, in combination with the value of coverage 

17 under Medicare part A and Medicare part B, shall 

18 be not less than the actuarial value of the most 

19 closely corresponding enrollment options available 

20 under section 8905. 

21 ‘‘(4) ENROLLMENT OPTIONS.— 

22 ‘‘(A) IN GENERAL.—The enrollment op23 tions established under paragraph (1) shall in24 clude— 


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

2 Service Medicare eligible annuitants sub3 ject to subsection (b)(1); 

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

5 Postal Service Medicare eligible annuitants 

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

7 members of Postal Service Medicare eligi8 ble annuitants subject to subsection (b)(2); 

9 and 

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

11 Postal Service Medicare eligible annuitants 

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

13 members of Postal Service Medicare eligi14 ble annuitants, including family members 

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

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

17 may establish more specific enrollment options 

18 within the types of options described under sub19 paragraph (A). 

20 ‘‘(5) REDUCED PREMIUMS TO ACCOUNT FOR

21 MEDICARE COORDINATION.—In determining the pre22 miums for the enrollment options under paragraph 

23 (4), the Office shall— 


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

2 individuals eligible for coverage under those op3 tions; and 

4 ‘‘(B) ensure that— 

5 ‘‘(i) the premiums are reduced from 

6 the premiums otherwise established under 

7 this chapter to directly reflect the full cost 

8 savings to the health benefits plans due to 

9 the complete coordination of benefits with 

10 Medicare part A and Medicare part B for 

11 Postal Service Medicare eligible annuitants 

12 or family members of Postal Service Medi13 care eligible annuitants who continue cov14 erage under this chapter; and 

15 ‘‘(ii) the cost savings described under 

16 clause (i) result solely in the reduction 

17 of— 

18 ‘‘(I) the premiums paid by the 

19 Postal Service Medicare eligible annu20 itant; and 

21 ‘‘(II) the Government contribu22 tions paid by the Postal Service. 

23 ‘‘(d) CONVERSION OF ENROLLMENT.— 

24 ‘‘(1) IN GENERAL.—For any individual who en25 rolls in Medicare part A and Medicare part B in acVerDate Mar 15 2010 22:34 Jan 26, 2012 Jkt 019200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6401 E:\BILLS\S1789.RS S1789

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1 cordance with subsection (b) other than during the 

2 special enrollment period established under section 

3 1837(m) of the Social Security Act, coverage under 

4 this chapter shall be converted to coverage under the 

5 applicable enrollment option established under sub6 section (c) upon enrollment in Medicare part A and 

7 Medicare part B. 

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

9 reasonable advance notice to any Postal Service 

10 Medicare eligible annuitant or family member of any 

11 Postal Service Medicare eligible annuitant that such 

12 annuitant or family member will become subject to 

13 conversion of enrollment under paragraph (1). 

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

15 shall establish the enrollment options and premiums under 

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

17 (2) TECHNICAL AND CONFORMING AMEND18 MENTS.—The table of sections for chapter 89 of title 

19 5, United States Code, is amended by inserting after 

20 the item relating to section 8903b the following: 

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

21 (3) EFFECTIVE DATE.—The amendments made 

22 by this subsection shall apply with respect to con23 tract years beginning 6 months following the date of 

24 enactment of this Act. 


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1 (b) SPECIAL ENROLLMENT PERIOD FOR POSTAL

2 SERVICE MEDICARE ELIGIBLE ANNUITANTS.— 

3 (1) SPECIAL ENROLLMENT PERIOD.— 

4 (A) IN GENERAL.—Section 1837 of the So5 cial Security Act (42 U.S.C. 1395p) is amended 

6 by adding at the end the following new sub7 section: 

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

9 Service Medicare eligible annuitant (as defined in section 

10 8903c(a) of title 5, United States Code) at the time the 

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

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

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

14 individual’s initial enrollment period, there shall be a spe15 cial enrollment period described in paragraph (2). 

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

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

18 period, beginning on the first day of the month which in19 cludes the date of enactment of the 21st Century Postal 

20 Service Act of 2011. 

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

22 the special enrollment period provided under paragraph 

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

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


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1 (B) EFFECTIVE DATE.—The amendment 

2 made by subparagraph (A) shall apply to elec3 tions made with respect to initial enrollment pe4 riods that end after the date of enactment of 

5 the 21st Century Postal Service Act of 2011. 

6 (2) WAIVER OF INCREASE OF PREMIUM.—Sec7 tion 1839(b) of the Social Security Act (42 U.S.C. 

8 1395r(b)) is amended by striking ‘‘(i)(4) or (l)’’ and 

9 inserting ‘‘(i)(4), (l), or (m)’’. 

10 SEC. 104. RESTRUCTURING OF PAYMENTS FOR RETIREE 

11 HEALTH BENEFITS. 

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

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

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

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

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

17 2011’’. 

18 (b) POSTAL SERVICE RETIREE HEALTH BENEFITS

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

20 amended— 

21 (1) in subsection (d)— 

22 (A) in paragraph (2)(B)— 

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

24 ‘‘2012’’; and 


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

2 following: ‘‘80 percent of’’; and 

3 (B) in paragraph (3)— 

4 (i) in subparagraph (A)— 

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

6 ‘‘and’’ at the end; 

7 (II) in clause (iv), by striking the 

8 semicolon at the end and inserting a 

9 period; and 

10 (III) by striking clauses (v) 

11 through (x); and 

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

13 ‘‘2017’’ and inserting ‘‘2012’’; and 

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

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

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

17 2011.’’. 

18 SEC. 105. POSTAL SERVICE HEALTH BENEFITS PROGRAM. 

19 (a) DEFINITIONS.—In this section— 

20 (1) the term ‘‘covered employee’’ means an em21 ployee of the Postal Service who is represented by a 

22 bargaining representative recognized under section 

23 1203 of title 39, United States Code; 


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1 (2) the term ‘‘Federal Employee Health Bene2 fits Program’’ means the health benefits program 

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

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

5 Program’’ means the health benefits program that 

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

7 (b) COLLECTIVE BARGAINING.— 

8 (1) IN GENERAL.—Consistent with section 

9 1005(f) of title 39, United States Code, the Postal 

10 Service may negotiate jointly with all bargaining 

11 representatives recognized under section 1203 of 

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

13 collective bargaining agreement with those bar14 gaining representatives to establish the Postal Serv15 ice Health Benefits Program that satisfies the condi16 tions under subsection (c). The Postal Service and 

17 the bargaining representatives shall negotiate in con18 sultation with the Director of the Office of Per19 sonnel Management. 

20 (2) ARBITRATION LIMITATION.—Notwith21 standing chapter 12 of title 39, United States Code, 

22 there shall not be arbitration of any dispute in the 

23 negotiations under this subsection. 


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1 (3) TIME LIMITATION.—The authority under 

2 this subsection shall extend until September 30, 

3 2012. 

4 (c) POSTAL SERVICE HEALTH BENEFITS PRO5 GRAM.—The Postal Service Health Benefits Program— 

6 (1) shall— 

7 (A) be available for participation by all 

8 covered employees; 

9 (B) provide adequate and appropriate 

10 health benefits; 

11 (C) be administered by the Postmaster 

12 General; and 

13 (D) provide for transition of coverage 

14 under the Federal Employee Health Benefits 

15 Program of covered employees to coverage 

16 under the Postal Service Health Benefits Pro17 gram on January 1, 2013; 

18 (2) may provide dental benefits; and 

19 (3) may provide vision benefits. 

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

21 agreement is reached under subsection (b)— 

22 (1) the Postal Service shall implement the Post23 al Service Health Benefits Program; 

24 (2) the Postal Service Health Benefits Program 

25 shall constitute an agreement between the collective 


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1 bargaining representatives and the Postal Service for 

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

3 States Code; and 

4 (3) covered employees may not participate as 

5 employees in the Federal Employees Health Benefits 

6 Program. 

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

8 Benefits Program shall be a government plan as that term 

9 is defined under section 3(32) of Employee Retirement In10 come Security Act of 1974 (29 U.S.C. 1002(32)). 

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

12 Postal Service shall submit a report to the Committee on 

13 Homeland Security and Governmental Affairs of the Sen14 ate and the Committee on Oversight and Government Re15 form of the House of Representatives that— 

16 (1) reports on the implementation of this sec17 tion; and 

18 (2) requests any additional statutory authority 

19 that the Postal Service determines is necessary to 

20 carry out the purposes of this section. 

21 SEC. 106. ARBITRATION; LABOR DISPUTES. 

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

23 is amended— 

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


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1 (2) by striking the last sentence and inserting 

2 ‘‘The arbitration board shall render a decision not 

3 later than 45 days after the date of its appoint4 ment.’’; and 

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

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

7 the arbitration board shall consider such relevant factors 

8 as— 

9 ‘‘(i) the financial condition of the Postal Serv10 ice; 

11 ‘‘(ii) the requirements relating to pay and com12 pensation comparability under section 1003(a); and 

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

14 TITLE II—POSTAL SERVICES 

15 AND OPERATIONS 

16 SEC. 201. POSTAL FACILITIES. 

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

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

19 ‘‘(f) CLOSING OR CONSOLIDATION OF CERTAIN

20 POSTAL FACILITIES.— 

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

22 term ‘postal facility’ does not include— 

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

24 ‘‘(B) any facility used only for administra25 tive functions. 


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1 ‘‘(2) AREA MAIL PROCESSING STUDY.— 

2 ‘‘(A) NEW AREA MAIL PROCESSING STUD3 IES.—After the date of enactment of this sub4 section, before making a determination under 

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

6 closing or consolidation of any postal facility, 

7 the Postal Service shall— 

8 ‘‘(i) conduct an area mail processing 

9 study relating to that postal facility that 

10 includes a plan to reduce the capacity of 

11 the postal facility, but not close the postal 

12 facility; 

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

14 Service website; and 

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

16 is complete and available to the public, in17 cluding on the Postal Service website. 

18 ‘‘(B) COMPLETED OR ONGOING AREA MAIL

19 PROCESSING STUDIES.— 

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

21 postal facility described in clause (ii), the 

22 Postal Service shall— 

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

24 capacity of the postal facility, but not 

25 close the post facility; and 


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1 ‘‘(II) publish the results of the 

2 consideration under subclause (I) with 

3 or as an amendment to the area mail 

4 processing study relating to the postal 

5 facility. 

6 ‘‘(ii) POSTAL FACILITIES.—A postal 

7 facility described in this clause is a postal 

8 facility for which, on or before the date of 

9 enactment of this subsection— 

10 ‘‘(I) an area mail processing 

11 study that does not include a plan to 

12 reduce the capacity of the postal facil13 ity, but not close the facility, has been 

14 completed or is in progress; and 

15 ‘‘(II) a determination as to the 

16 necessity for the closing or consolida17 tion of the postal facility has not been 

18 made. 

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

20 HEARING.—If the Postal Service makes a determina21 tion under subsection (a)(3) to close or consolidate 

22 a postal facility, the Postal Service shall— 

23 ‘‘(A) provide notice of the determination 

24 to— 

25 ‘‘(i) Congress; and 


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1 ‘‘(ii) the Postal Regulatory Commis2 sion; 

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

4 intention of the Postal Service to close or con5 solidate the postal facility; 

6 ‘‘(C) ensure that interested persons have 

7 an opportunity to submit public comments dur8 ing a 45-day period after the notice of intention 

9 is provided under subparagraph (B); 

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

11 public notice of that opportunity by— 

12 ‘‘(i) publication on the Postal Service 

13 website; 

14 ‘‘(ii) posting at the affected postal fa15 cility; and 

16 ‘‘(iii) advertising the date and location 

17 of the public community meeting under 

18 subparagraph (E); and 

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

20 under subparagraph (C), conduct a public com21 munity meeting that provides an opportunity 

22 for public comments to be submitted verbally or 

23 in writing. 

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

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


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1 public comment under paragraph (3), the Postal 

2 Service, in making a determination whether or not 

3 to close or consolidate a postal facility, shall con4 sider— 

5 ‘‘(A) the views presented by interested per6 sons solicited under paragraph (3); 

7 ‘‘(B) the effect of the closing or consolida8 tion on the affected community, including any 

9 disproportionate impact the closure or consoli10 dation may have on a State, region, or locality; 

11 ‘‘(C) the effect of the closing or consolida12 tion on the travel times and distances for af13 fected customers to access services under the 

14 proposed closing or consolidation; 

15 ‘‘(D) the effect of the closing or consolida16 tion on delivery times for all classes of mail; 

17 ‘‘(E) any characteristics of certain geo18 graphical areas, such as remoteness, broadband 

19 internet availability, and weather-related obsta20 cles to using alternative facilities, that may re21 sult in the closing or consolidation having a 

22 unique effect; and 

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

24 determines is necessary. 


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

2 date on which the Postal Service closes or consoli3 dates a postal facility, the Postal Service shall post 

4 on the Postal Service website a closure or consolida5 tion justification statement that includes— 

6 ‘‘(A) a response to all public comments re7 ceived with respect to the considerations de8 scribed under paragraph (4); 

9 ‘‘(B) a description of the considerations 

10 made by the Postal Service under paragraph 

11 (4); and 

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

13 Postal Service to mitigate any negative effects 

14 identified under paragraph (4). 

15 ‘‘(6) CLOSING OR CONSOLIDATION OF POSTAL

16 FACILITIES.— 

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

18 15 days after posting and publishing the final 

19 determination and the justification statement 

20 under paragraph (6) with respect to a postal fa21 cility, the Postal Service may close or consoli22 date the postal facility. 

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

24 the Postal Service closes or consolidates a post25 al facility under subparagraph (A), the Postal 


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1 Service shall make reasonable efforts to ensure 

2 continued mail receipt from customers of the 

3 closed or consolidated postal facility at the 

4 same location or at another appropriate location 

5 in close geographic proximity to the closed or 

6 consolidated postal facility. 

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

8 of any notice required to be published on the Postal 

9 Service website under this subsection, the Postal 

10 Service shall ensure that the Postal Service 

11 website— 

12 ‘‘(A) is updated routinely; and 

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

14 the person, the opportunity to receive relevant 

15 updates by electronic mail.’’. 

16 SEC. 202. ADDITIONAL POSTAL SERVICE PLANNING. 

17 Section 302(d) of the Postal Accountability and En18 hancement Act of 2006 (39 U.S.C. 3691 note) is amend19 ed— 

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

21 the end and inserting ‘‘; and’’; 

22 (2) by redesignating paragraphs (1) through 

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

24 and adjusting the margins accordingly; 


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

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

3 inserting the following: ‘‘shall— 

4 ‘‘(1) include’’; and 

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

6 ‘‘(2) where possible, provide for an improve7 ment in customer access to postal services; 

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

9 Postal Service relating to the implementation of the 

10 plan on small communities and rural areas; and 

11 ‘‘(4) ensure that— 

12 ‘‘(A) small communities and rural areas 

13 continue to receive regular and effective access 

14 to retail postal services after implementation of 

15 the plan; and 

16 ‘‘(B) the Postal Service solicits community 

17 input in accordance with applicable provisions 

18 of Federal law.’’. 

19 SEC. 203. AREA AND DISTRICT OFFICE STRUCTURE. 

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

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

22 submit to the Committee on Homeland Security and Gov23 ernmental Affairs of the Senate and the Committee on 

24 Oversight and Governmental Reform of the House of Rep25 resentatives— 


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1 (1) a comprehensive strategic plan to govern 

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

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

6 relevant to establishing an effective area and district 

7 office structure; and 

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

9 provides for consolidation of area and district offices 

10 wherever the Postal Service determines a consolida11 tion would— 

12 (A) be cost-effective; and 

13 (B) not substantially and adversely affect 

14 the operations of the Postal Service. 

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

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

17 Service shall, consistent with the plans required under 

18 subsection (a)— 

19 (1) consolidate district offices that are located 

20 within 50 miles of each other; 

21 (2) consolidate area and district offices that 

22 have less than the mean mail volume and number of 

23 work hours for all area and district offices; and 

24 (3) relocate area offices to headquarters. 


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

2 plans required under subsection (a) not less frequently 

3 than once every 5 years. 

4 SEC. 204. RETAIL SERVICE STANDARDS. 

5 (a) ESTABLISHMENT OF SERVICE STANDARDS.—Not 

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

7 the Postal Service shall exercise its authority under sec8 tion 3691 of title 39, United States Code, to establish 

9 service standards for market-dominant products in order 

10 to guarantee customers of the Postal Service regular and 

11 effective access to retail postal services nationwide (includ12 ing in territories and possessions of the United States) 

13 on a reasonable basis. 

14 (b) CONTENTS.—The service standards established 

15 under subsection (a) shall— 

16 (1) be consistent with— 

17 (A) the obligations of the Postal Service 

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

19 Code; and 

20 (B) the contents of the plan developed 

21 under section 302 of the Postal Accountability 

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

23 note), as amended by section 202 of this Act; 

24 and 

25 (2) take into account factors including— 


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1 (A) geography, including the establishment 

2 of standards for the proximity of retail postal 

3 services to postal customers, including a consid4 eration of the reasonable maximum time a post5 al customer should expect to travel to access a 

6 postal retail location; 

7 (B) population, including population den8 sity, demographic factors such as the age and 

9 disability status of individuals in the area to be 

10 served by a location providing postal retail serv11 ices, and other factors that may impact the 

12 ability of postal customers, including busi13 nesses, to travel to a postal retail location; 

14 (C) the feasibility of offering retail access 

15 to postal services in addition to post offices, as 

16 described in section 302(d) of the Postal Ac17 countability and Enhancement Act of 2006 (39 

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

19 (D) the requirement that the Postal Serv20 ice serve remote areas and communities with 

21 transportation challenges, including commu22 nities in which the effects of inclement weather 

23 or other natural conditions might obstruct or 

24 otherwise impede access to retail postal serv25 ices. 


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1 SEC. 205. CONVERSION OF DOOR DELIVERY POINTS. 

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

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

4 end the following: 

5 ‘‘§ 3692. Conversion of door delivery points 

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

7 definitions shall apply: 

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

9 term ‘centralized delivery point’ means a group or 

10 cluster of mail receptacles at 1 delivery point that is 

11 within reasonable proximity of the street address as12 sociated with the delivery point. 

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

14 ‘curbline delivery point’ means a delivery point that 

15 is— 

16 ‘‘(A) adjacent to the street address associ17 ated with the delivery point; and 

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

19 is not a private driveway. 

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

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

22 the structure at a street address. 

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

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

25 sidewalk adjacent to the street address associated 

26 with the delivery point. 


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

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

3 standards established by the Postal Service, the Postal 

4 Service may, where feasible, convert door delivery points 

5 to— 

6 ‘‘(1) curbline delivery points; 

7 ‘‘(2) sidewalk delivery points; or 

8 ‘‘(3) centralized delivery points. 

9 ‘‘(c) EXCEPTIONS.— 

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

11 Service may allow for the continuation of door deliv12 ery due to— 

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

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

15 snow removal efforts could obstruct access to 

16 mailboxes near a road; 

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

18 preclude efficient use of curbside delivery 

19 points; 

20 ‘‘(D) other exceptional circumstances, as 

21 determined in accordance with regulations 

22 issued by the Postal Service; or 

23 ‘‘(E) other circumstances in which the 

24 Postal Service determines that alternatives to 


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1 door delivery would not be practical or cost ef2 fective. 

3 ‘‘(2) NEW DOOR DELIVERY POINTS.—The Post4 al Service may provide door delivery to a new deliv5 ery point in a delivery area that received door deliv6 ery on the day before the date of enactment of this 

7 section, if the delivery point is established before the 

8 delivery area is converted from door delivery under 

9 subsection (b). 

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

11 Service shall establish procedures to solicit, consider, and 

12 respond to input from individuals affected by a conversion 

13 under this section. 

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

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

16 Service under this section. 

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

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

19 Service shall submit to Congress and the Inspector Gen20 eral of the Postal Service a report on the implementation 

21 of this section during the preceding fiscal year that— 

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

23 points— 

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

25 year preceding the preceding fiscal year; 


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1 ‘‘(B) that existed at the end of the pre2 ceding fiscal year; 

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

4 converted to— 

5 ‘‘(i) curbline delivery points or side6 walk delivery points; 

7 ‘‘(ii) centralized delivery points; and 

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

9 and 

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

11 under subsection (c)(1); 

12 ‘‘(2) estimates the cost savings from the conver13 sions from door delivery that occurred during the 

14 preceding fiscal year; 

15 ‘‘(3) describes the progress of the Postal Serv16 ice toward achieving the requirements under sub17 section (b); and 

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

19 Postal Service considers appropriate.’’. 

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

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

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

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


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1 SEC. 206. LIMITATIONS ON CHANGES TO MAIL DELIVERY 

2 SCHEDULE. 

3 (a) LIMITATION ON CHANGE IN SCHEDULE.—Not4 withstanding any other provision of law— 

5 (1) the Postal Service may not establish a gen6 eral, nationwide 5-day-per-week delivery schedule to 

7 street addresses under the authority of the Postal 

8 Service under section 3691 of title 39, United States 

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

10 the date of enactment of this Act; and 

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

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

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

14 delivery schedule to street addresses under the au15 thority of the Postal Service under section 3691 of 

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

17 the requirements and limitations under this section. 

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

19 to establish a change in delivery schedule under subsection 

20 (a)(2), the Postal Service shall— 

21 (1) identify customers and communities for 

22 whom the change may have a disproportionate, neg23 ative impact, including the customers identified as 

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

25 Elimination of Saturday Delivery issued by the Com26 mission on March 24, 2011; 


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

2 measures to ameliorate any disproportionate, nega3 tive impact the change would have on customers and 

4 communities identified under paragraph (1), includ5 ing, where appropriate, providing or expanding ac6 cess to mailboxes for periodical mailers on days on 

7 which the Postal Service does not provide delivery; 

8 (3) implement measures to increase revenue 

9 and reduce costs, including the measures authorized 

10 under the amendments made by sections 101, 102, 

11 103, 104, 204, and 208 of this Act; 

12 (4) evaluate whether any increase in revenue or 

13 reduction in costs resulting from the measures im14 plemented under paragraph (3) are sufficient to 

15 allow the Postal Service, without implementing a 

16 change in delivery schedule under subsection (a), 

17 to— 

18 (A) become profitable by fiscal year 2015; 

19 and 

20 (B) achieve long-term financial solvency; 

21 and 

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

23 of enactment of this Act and not later than 9 

24 months before the effective date proposed by the 

25 Postal Service for the change, submit a report on 


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1 the steps the Postal Service has taken to carry out 

2 this subsection to— 

3 (A) the Committee on Homeland Security 

4 and Governmental Affairs of the Senate and the 

5 Committee on Oversight and Government Re6 form of the House of Representatives; 

7 (B) the Comptroller General of the United 

8 States; and 

9 (C) the Commission. 

10 (c) REVIEW.— 

11 (1) GOVERNMENT ACCOUNTABILITY OFFICE.— 

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

13 Postal Service submits a report under subsection 

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

15 Commission and to the Committee on Homeland Se16 curity and Governmental Affairs of the Senate and 

17 the Committee on Oversight and Government Re18 form of the House of Representatives a report that 

19 contains findings relating to each of the following: 

20 (A) Whether the Postal Service has ade21 quately complied with subsection (b)(3), taking 

22 into consideration the statutory authority of 

23 and limitations on the Postal Service. 

24 (B) The accuracy of any statement by the 

25 Postal Service that the measures implemented 


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

2 or reduced costs, and the accuracy of any pro3 jection by the Postal Service relating to in4 creased revenue or reduced costs resulting from 

5 the measures implemented under subsection 

6 (b)(3). 

7 (C) The adequacy and methodological 

8 soundness of any evaluation conducted by the 

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

10 the Postal Service to assert the necessity of a 

11 change in delivery schedule under subsection 

12 (a)(2). 

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

14 measures implemented by the Postal Service to 

15 increase revenues and reduce costs, projections 

16 of increased revenue and cost savings, and the 

17 details of the profitability plan required under 

18 section 401, a change in delivery schedule is 

19 necessary to allow the Postal Service to— 

20 (i) become profitable by fiscal year 

21 2015; and 

22 (ii) achieve long-term financial sol23 vency. 

24 (2) POSTAL REGULATORY COMMISSION.— 


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

2 before the proposed effective date of a change 

3 in delivery schedule under subsection (a), the 

4 Postal Service shall submit to the Commission 

5 a request for an advisory opinion relating to the 

6 change. 

7 (B) ADVISORY OPINION.— 

8 (i) IN GENERAL.—The Commission 

9 shall— 

10 (I) issue an advisory opinion with 

11 respect to a request under subpara12 graph (A), in accordance with the 

13 time limits for the issuance of advi14 sory opinions under section 

15 3661(b)(2) of title 39, United States 

16 Code, as amended by this Act; and 

17 (II) submit the advisory opinion 

18 to the Committee on Homeland Secu19 rity and Governmental Affairs of the 

20 Senate and the Committee on Over21 sight and Government Reform of the 

22 House of Representatives. 

23 (ii) REQUIRED DETERMINATIONS.— 

24 An advisory opinion under clause (i) shall 

25 determine— 


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1 (I) whether the measures devel2 oped under subsection (b)(2) amelio3 rate any disproportionate, negative 

4 impact that a change in schedule may 

5 have on customers and communities 

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

7 (II) based on the report sub8 mitted by the Comptroller General 

9 under paragraph (1)— 

10 (aa) whether the Postal 

11 Service has implemented meas12 ures to reduce operating losses as 

13 required under subsection (b)(3); 

14 (bb) whether the implemen15 tation of the measures described 

16 in item (aa) has increased reve17 nues or reduced costs, or is pro18 jected to further increase reve19 nues or reduce costs in the fu20 ture; and 

21 (cc) whether a change in 

22 schedule under subsection (a)(2) 

23 is necessary to allow the Postal 

24 Service to— 


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1 (AA) become profitable 

2 by fiscal year 2015; and 

3 (BB) achieve long-term 

4 financial solvency. 

5 (3) PROHIBITION ON IMPLEMENTATION OF

6 CHANGE IN SCHEDULE.—The Postal Service may 

7 not implement a change in delivery schedule under 

8 subsection (a)(2)— 

9 (A) before the date on which the Comp10 troller General submits the report required 

11 under paragraph (1); and 

12 (B) unless the Commission determines 

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

14 Comptroller General has concluded that the 

15 change is necessary to allow the Postal Service 

16 to become profitable by fiscal year 2015 and to 

17 achieve long-term financial solvency, without re18 gard to whether the Commission determines 

19 that the change is advisable. 

20 (d) ADDITIONAL LIMITATIONS.— 

21 (1) RULES OF CONSTRUCTION.—Nothing in 

22 this subsection shall be construed to— 

23 (A) authorize the reduction, or require an 

24 increase, in delivery frequency for any route for 

25 which the Postal Service provided delivery on 


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1 fewer than 6 days per week on the date of en2 actment of this Act; 

3 (B) authorize any change in— 

4 (i) the days and times that postal re5 tail service or any mail acceptance is avail6 able; or 

7 (ii) the locations at which postal retail 

8 service or mail acceptance occurs; 

9 (C) authorize any change in the frequency 

10 of delivery to a post office box; 

11 (D) prohibit the collection or delivery of a 

12 competitive mail product on a weekend or a rec13 ognized Federal holiday; or 

14 (E) prohibit the Postal Service from exer15 cising its authority to make changes to proc16 essing or retail networks. 

17 (2) PROHIBITION ON CONSECUTIVE DAYS WITH18 OUT MAIL DELIVERY.—The Postal Service shall en19 sure that, under any change in schedule under sub20 section (a)(2), at no time shall there be more than 

21 2 consecutive days without mail delivery to street 

22 addresses, including recognized Federal holidays. 


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1 SEC. 207. TIME LIMITS FOR CONSIDERATION OF SERVICE 

2 CHANGES. 

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

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

5 the following: 

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

7 PRODUCTS.— 

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

9 Service determines that there should be a change in 

10 the nature of postal services relating to market-dom11 inant products that will generally affect service on a 

12 nationwide or substantially nationwide basis, the 

13 Postal Service shall submit a proposal to the Postal 

14 Regulatory Commission requesting an advisory opin15 ion on the change. 

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

17 proposal under paragraph (1), the Postal Regulatory 

18 Commission shall— 

19 ‘‘(A) provide an opportunity for public 

20 comment on the proposal; and 

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

22 than— 

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

24 the Postal Regulatory Commission receives 

25 the proposal; or 


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1 ‘‘(ii) a date that the Postal Regu2 latory Commission and the Postal Service 

3 may, not later than 1 week after the date 

4 on which the Postal Regulatory Commis5 sion receives the proposal, determine joint6 ly. 

7 ‘‘(3) RESPONSE TO OPINION.—The Postal Serv8 ice shall submit to the President and to Congress a 

9 response to the advisory opinion issued under para10 graph (2), including any recommendations contained 

11 therein. 

12 ‘‘(4) ACTION ON PROPOSAL.—The Postal Serv13 ice may take action regarding a proposal submitted 

14 under paragraph (1)— 

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

16 after the date on which the Postal Service sub17 mits the response required under paragraph 

18 (3); 

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

20 Regulatory Commission and the Postal Service 

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

22 which the Postal Regulatory Commission re23 ceives a proposal under paragraph (2), deter24 mine jointly; or 


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

2 (2)(B), if— 

3 ‘‘(i) the Postal Regulatory Commis4 sion fails to issue an advisory opinion on 

5 or before the date described in paragraph 

6 (2)(B); and 

7 ‘‘(ii) the action is not otherwise pro8 hibited under Federal law. 

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

10 time, the Postal Service and the Postal Regulatory 

11 Commission may jointly redetermine a date deter12 mined under paragraph (2)(B)(ii) or (4)(B).’’. 

13 SEC. 208. PUBLIC PROCEDURES FOR SIGNIFICANT 

14 CHANGES TO MAILING SPECIFICATIONS. 

15 (a) NOTICE AND OPPORTUNITY FOR COMMENT RE16 QUIRED.—Effective on the date on which the Postal Serv17 ice issues a final rule under subsection (c), before making 

18 a change to mailing specifications that could pose a sig19 nificant burden to the customers of the Postal Service and 

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

21 shall— 

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

23 the specification in the Federal Register; 


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1 (2) provide an opportunity for the submission 

2 of written comments concerning the proposed change 

3 for a period of not less than 30 days; 

4 (3) after considering any comments submitted 

5 under paragraph (2) and making any modifications 

6 to the proposed change that the Postal Service de7 termines are necessary, publish— 

8 (A) the final change to the specification in 

9 the Federal Register; 

10 (B) responses to any comments submitted 

11 under paragraph (2); and 

12 (C) an analysis of the financial impact that 

13 the proposed change would have on— 

14 (i) the Postal Service; and 

15 (ii) the customers of the Postal Serv16 ice that would be affected by the proposed 

17 change; and 

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

19 mailing specifications that is not earlier than 30 

20 days after the date on which the Postal Service pub21 lishes the final change under paragraph (3). 

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

23 Service determines that there is an urgent and compelling 

24 need for a change to a mailing specification described in 

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


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

2 the Postal Service may— 

3 (1) change the mailing specifications by— 

4 (A) issuing an interim final rule that— 

5 (i) includes a finding by the Postal 

6 Service that there is good cause for the in7 terim final rule; 

8 (ii) provides an opportunity for the 

9 submission of written comments on the in10 terim final rule for a period of not less 

11 than 30 days; and 

12 (iii) establishes an effective date for 

13 the interim final rule that is not earlier 

14 than 30 days after the date on which the 

15 interim final rule is issued; and 

16 (B) publishing in the Federal Register a 

17 response to any comments submitted under 

18 subparagraph (A)(ii); and 

19 (2) waive the requirement under paragraph 

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

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

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

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

24 Service shall issue rules governing the provision of 


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1 notice and opportunity for comment for changes in 

2 mailing specifications under subsection (a). 

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

4 under paragraph (1), the Postal Service shall— 

5 (A) publish a notice of proposed rule6 making in the Federal Register that includes 

7 proposed definitions of the terms ‘‘mailing spec8 ifications’’ and ‘‘significant burden’’; 

9 (B) provide an opportunity for the submis10 sion of written comments concerning the pro11 posed change for a period of not less than 30 

12 days; and 

13 (C) publish— 

14 (i) the rule in final form in the Fed15 eral Register; and 

16 (ii) responses to the comments sub17 mitted under subparagraph (B). 

18 SEC. 209. NONPOSTAL PRODUCTS AND SERVICES. 

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

20 States Code, is amended— 

21 (1) in subsection (a)— 

22 (A) by redesignating paragraphs (6) 

23 through (8) as paragraphs (7) through (9), re24 spectively; and 


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

2 following: 

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

4 Century Postal Service Act of 2011, and except as 

5 provided in subsection (e), to provide other services 

6 that are not postal services, after the Postal Regu7 latory Commission— 

8 ‘‘(A) makes a determination that the provi9 sion of such services— 

10 ‘‘(i) uses the processing, transpor11 tation, delivery, retail network, or tech12 nology of the Postal Service; 

13 ‘‘(ii) is consistent with the public in14 terest and a demonstrated or potential 

15 public demand for— 

16 ‘‘(I) the Postal Service to provide 

17 the services instead of another entity 

18 providing the services; or 

19 ‘‘(II) the Postal Service to pro20 vide the services in addition to an21 other entity providing the services; 

22 ‘‘(iii) would not create unfair competi23 tion with the private sector; and 

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

25 net financial position of the Postal Service, 


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1 based on a market analysis provided to the 

2 Postal Regulatory Commission by the 

3 Postal Service; and 

4 ‘‘(B) for services that the Postal Regu5 latory Commission determines meet the criteria 

6 under subparagraph (A), classifies each such 

7 service as a market-dominant product, competi8 tive product, experimental product, or new 

9 product, as required under chapter 36 of title 

10 39, United States Code;’’; and 

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

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

13 inserting ‘‘The’’. 

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

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

16 Service shall submit a copy of any market analysis pro17 vided to the Commission under section 404(a)(6)(A)(iv) 

18 of title 39, United States Code, as amended by this sec19 tion, to the Committee on Homeland Security and Govern20 mental Affairs of the Senate and the Committee on Over21 sight and Government Reform of the House of Represent22 atives. 


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1 TITLE III—FEDERAL EMPLOY2 EES’ COMPENSATION ACT 

3 SEC. 301. SHORT TITLE; REFERENCES. 

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

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

6 (b) REFERENCES.—Except as otherwise expressly 

7 provided, whenever in this title an amendment or repeal 

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

9 of, a section or other provision, the reference shall be con10 sidered to be made to a section or other provision of title 

11 5, United States Code. 

12 SEC. 302. FEDERAL WORKERS COMPENSATION REFORMS 

13 FOR RETIREMENT-AGE EMPLOYEES. 

14 (a) CONVERSION OF ENTITLEMENT AT RETIREMENT

15 AGE.— 

16 (1) DEFINITIONS.—Section 8101 is amended 

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

18 at the end; 

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

20 at the end; 

21 (C) in paragraph (20), by striking the pe22 riod at the end and inserting a semicolon; and 

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


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

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

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

5 a claim for a period of total disability that com6 menced before the date of enactment of the Work7 ers’ Compensation Reform Act of 2011; 

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

9 means a claim for a period of partial disability that 

10 commenced before the date of enactment of the 

11 Workers’ Compensation Reform Act of 2011; and 

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

13 condition’ means an individual— 

14 ‘‘(A) who— 

15 ‘‘(i) is eligible to receive continuous 

16 periodic compensation for total disability 

17 under section 8105 on the date of enact18 ment of the Workers’ Compensation Re19 form Act of 2011; and 

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

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

22 Workers’ Compensation Reform Act of 2011— 

23 ‘‘(i) is eligible to receive continuous 

24 periodic compensation for total disability 

25 under section 8105; and 


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1 ‘‘(ii) has sustained a currently irre2 versible severe mental or physical disability 

3 for which the Secretary of Labor has au4 thorized, for at least the 1 year period end5 ing on the date of enactment of the Work6 ers’ Compensation Reform Act of 2011, 

7 constant in-home care or custodial care, 

8 such as in placement in a nursing home; or 

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

10 periodic compensation for total disability under 

11 section 8105— 

12 ‘‘(i) for not less than the 3-year pe13 riod ending on the date of enactment of 

14 the Workers’ Compensation Reform Act of 

15 2011; or 

16 ‘‘(ii) if the individual became eligible 

17 to receive continuous periodic compensa18 tion for total disability under section 8105 

19 during the period beginning on the date 

20 that is 3 years before the date of enact21 ment of the Workers’ Compensation Re22 form Act of 2011 and ending on such date 

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

24 period beginning on the date on which the 

25 individual became eligible.’’. 


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1 (2) TOTAL DISABILITY.—Section 8105 is 

2 amended— 

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

4 inserting ‘‘IN GENERAL.—Subject to subsection 

5 (b), if’’; 

6 (B) by redesignating subsection (b) as sub7 section (c); and 

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

9 following: 

10 ‘‘(b) CONVERSION OF ENTITLEMENT AT RETIRE11 MENT AGE.— 

12 ‘‘(1) IN GENERAL.—Except as provided in para13 graph (2), the basic compensation for total disability 

14 for an employee who has attained retirement age 

15 shall be 50 percent of the monthly pay of the em16 ployee. 

17 ‘‘(2) EXCEPTIONS.— 

18 ‘‘(A) COVERED RECIPIENTS WHO ARE RE19 TIREMENT AGE OR HAVE AN EXEMPT DIS20 ABILITY CONDITION.—Paragraph (1) shall not 

21 apply to a covered claim for total disability by 

22 an employee if the employee— 

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

24 Workers’ Compensation Reform Act of 

25 2011, has attained retirement age; or 


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1 ‘‘(ii) is an individual who has an ex2 empt disability condition. 

3 ‘‘(B) TRANSITION PERIOD FOR CERTAIN

4 EMPLOYEES.—For a covered claim for total dis5 ability by an employee who is not an employee 

6 described in subparagraph (A), the employee 

7 shall receive the basic compensation for total 

8 disability provided under subsection (a) until 

9 the later of— 

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

11 attains retirement age; and 

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

13 date of enactment of the Workers’ Com14 pensation Reform Act of 2011.’’. 

15 (3) PARTIAL DISABILITY.—Section 8106 is 

16 amended— 

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

18 inserting ‘‘IN GENERAL.—Subject to subsection 

19 (b), if’’; 

20 (B) by redesignating subsections (b) and 

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

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

23 following: 

24 ‘‘(b) CONVERSION OF ENTITLEMENT AT RETIRE25 MENT AGE.— 


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1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (2), the basic compensation for partial dis3 ability for an employee who has attained retirement 

4 age shall be 50 percent of the difference between the 

5 monthly pay of the employee and the monthly wage6 earning capacity of the employee after the beginning 

7 of the partial disability. 

8 ‘‘(2) EXCEPTIONS.— 

9 ‘‘(A) COVERED RECIPIENTS WHO ARE RE10 TIREMENT AGE.—Paragraph (1) shall not apply 

11 to a covered claim for partial disability by an 

12 employee if, on the date of enactment of 

13 theWorkers’ Compensation Reform Act of 2011, 

14 the employee has attained retirement age. 

15 ‘‘(B) TRANSITION PERIOD FOR CERTAIN

16 EMPLOYEES.—For a covered claim for partial 

17 disability by an employee who is not an em18 ployee described in subparagraph (A), the em19 ployee shall receive basic compensation for par20 tial disability in accordance with subsection (a) 

21 until the later of— 

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

23 attains retirement age; and 


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

2 date of enactment of the Workers’ Com3 pensation Reform Act of 2011.’’. 

4 SEC. 303. AUGMENTED COMPENSATION FOR DEPENDENTS. 

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

6 (1) by redesignating subsection (b) as sub7 section (c); and 

8 (2) by inserting after subsection (a) the fol9 lowing: 

10 ‘‘(b) TERMINATION OF AUGMENTED COMPENSA11 TION.— 

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

13 augmented compensation for dependants under sub14 section (c) shall not be provided. 

15 ‘‘(2) EXCEPTIONS.— 

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

17 claim for total disability by an employee— 

18 ‘‘(i) the employee shall receive aug19 mented compensation under subsection (c) 

20 if the employee is an individual who has an 

21 exempt disability condition; and 

22 ‘‘(ii) the employee shall receive aug23 mented compensation under subsection (c) 

24 until the date that is 3 years after the date 

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1 tion Reform Act of 2011 if the employee is 

2 not an employee described in clause (i). 

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

4 claim for partial disability by an employee, the 

5 employee shall receive augmented compensation 

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

7 years after the date of enactment of the Work8 ers’ Compensation Reform Act of 2011. 

9 ‘‘(C) PERMANENT DISABILITY COM10 PENSATED BY A SCHEDULE.—For a claim for a 

11 permanent disability described in section 

12 8107(a) by an employee that commenced before 

13 the date of enactment of the Workers’ Com14 pensation Reform Act of 2011, the employee 

15 shall receive augmented compensation under 

16 subsection (c).’’. 

17 (b) MAXIMUM AND MINIMUM MONTHLY PAY18 MENTS.—Section 8112 is amended— 

19 (1) in subsection (a)— 

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

21 and’’ before ‘‘section 8138’’; 

22 (B) by striking ‘‘including augmented com23 pensation under section 8110 of this title but’’; 

24 and 


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

appears and inserting ‘‘66 2 2 ⁄3 percent’’; 

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

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

7 ‘‘(b) EXCEPTIONS.— 

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

9 covered claim for total disability by an employee, if 

10 the employee is an individual who has an exempt 

11 disability condition— 

12 ‘‘(A) the monthly rate of compensation for 

13 disability that is subject to the maximum and 

14 minimum monthly amounts under subsection 

15 (a) shall include any augmented compensation 

16 under section 8110; and 

17 ‘‘(B) subsection (a) shall be applied by 

substituting ‘75 percent’ for ‘66 2 18 ⁄3 percent’ 

19 each place it appears. 

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

21 claim for partial disability by an employee, until the 

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

23 the Workers’ Compensation Reform Act of 2011— 

24 ‘‘(A) the monthly rate of compensation for 

25 disability that is subject to the maximum and 


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1 minimum monthly amounts under subsection 

2 (a) shall include any augmented compensation 

3 under section 8110; and 

4 ‘‘(B) subsection (a) shall be applied by 

substituting ‘75 percent’ for ‘66 2 5 ⁄3 percent’ 

6 each place it appears.’’; and 

7 (4) in subsection (c), as redesignated by para8 graph (2), by striking ‘‘subsection (a)’’ and inserting 

9 ‘‘subsections (a) and (b)’’. 

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

11 amended— 

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

percent’’ each place it appears and inserting ‘‘66 2 13 ⁄3

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

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

16 ‘‘(g) If the death occurred before the date of enact17 ment of the Workers’ Compensation Reform Act of 2011, 

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

‘75 percent’ for ‘66 2 19 ⁄3 percent’ each place it appears.’’. 

20 (d) DEATH BENEFITS FOR CIVIL AIR PATROL VOL21 UNTEERS.—Section 8141 is amended— 

22 (1) in subsection (b)(2)(B) by striking ‘‘75 percent’’ and inserting ‘‘66 2 23 ⁄3 percent (except as pro24 vided in subsection (c))’’; 


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1 (2) by redesignating subsection (c) as sub2 section (d); and 

3 (3) by inserting after subsection (b) the fol4 lowing: 

5 ‘‘(c) If the death occurred before the date of enact6 ment of the Workers’ Compensation Reform Act of 2011, 

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

percent’ for ‘66 2 8 ⁄3 percent’.’’. 

9 SEC. 304. SCHEDULE COMPENSATION PAYMENTS. 

10 Section 8107 is amended— 

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

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

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

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

15 ‘‘(d) RATE FOR COMPENSATION.— 

16 ‘‘(1) ANNUAL SALARY.— 

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

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

shall be the rate of 66 2 19 ⁄3 percent of the annual 

20 salary level established under subparagraph 

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

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

23 amount of compensation payable under the 

24 schedule. 

25 ‘‘(B) ESTABLISHMENT.— 


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1 ‘‘(i) IN GENERAL.—The Secretary of 

2 Labor shall establish an annual salary for 

3 purposes of subparagraph (A) in the 

4 amount the Secretary determines will re5 sult in the aggregate cost of payments 

6 made under this section being equal to 

7 what would have been the aggregate cost 

8 of payments under this section if the 

9 amendments made by section 304(a) of the 

10 Workers’ Compensation Reform Act of 

11 2011 had not been enacted. 

12 ‘‘(ii) COST OF LIVING ADJUSTMENT.— 

13 The annual salary established under clause 

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

15 year by the amount determined by the Sec16 retary of Labor to represent the percent 

17 change in the price index published for De18 cember of the preceding year over the price 

19 index published for the December of the 

20 year prior to the preceding year, adjusted 

21 to the nearest one-tenth of 1 percent. 

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

23 Labor shall calculate the present value for pur24 poses of subparagraph (A) using a rate of inter25 est equal to the average market yield for outVerDate Mar 15 2010 22:34 Jan 26, 2012 Jkt 019200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6401 E:\BILLS\S1789.RS S1789

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1 standing marketable obligations of the United 

2 States with a maturity of 2 years on the first 

3 business day of the month in which the com4 pensation is paid or, in the event that such 

5 marketable obligations are not being issued on 

6 such date, at an equivalent rate selected by the 

7 Secretary of Labor, true discount compounded 

8 annually. 

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

10 occurred before the date of enactment of the Work11 ers’ Compensation Reform Act of 2011, the rate 

under subsection (a) shall be 66 2 12 ⁄3 percent of the 

13 employee’s monthly pay. 

14 ‘‘(e) SIMULTANEOUS RECEIPT.— 

15 ‘‘(1) TOTAL DISABILITY.—An employee who re16 ceives compensation for total disability under section 

17 8105 may only receive the lump sum of schedule 

18 compensation under this section in addition to and 

19 simultaneously with the benefits for total disability 

20 after the later of— 

21 ‘‘(A) the date on which the basic com22 pensation for total disability of the employee be23 comes 50 percent of the monthly pay of the em24 ployee under section 8105(b); or 


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1 ‘‘(B) the date on which augmented com2 pensation of the employee terminates under sec3 tion 8110(b)(2)(A)(ii), if the employee receives 

4 such compensation. 

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

6 receives benefits for partial disability under section 

7 8106 may only receive the lump sum of schedule 

8 compensation under this section in addition to and 

9 simultaneously with the benefits for partial disability 

10 after the later of— 

11 ‘‘(A) the date on which the basic com12 pensation for partial disability of the employee 

13 becomes 50 percent of the difference between 

14 the monthly pay of the employee and the 

15 monthly wage-earning capacity of the employee 

16 after the beginning of the partial disability 

17 under section 8106(b); or 

18 ‘‘(B) the date on which augmented com19 pensation of the employee terminates under sec20 tion 8110(b)(2)(B), if the employee receives 

21 such compensation.’’. 

22 SEC. 305. VOCATIONAL REHABILITATION. 

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

24 (1) in subsection (a)— 


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

2 Labor may’’ and all that follows through ‘‘un3 dergo vocational rehabilitation.’’ and inserting 

4 the following: 

5 ‘‘(a) IN GENERAL.— 

6 ‘‘(1) DIRECTION.—Except as provided in para7 graph (2), not earlier than the date that is 6 months 

8 after the date on which an individual eligible for 

9 wage-loss compensation under section 8105 or 8106 

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

11 Labor determines it would be reasonable under the 

12 circumstances for the individual to begin vocational 

13 rehabilitation, and if vocational rehabilitation may 

14 enable the individual to become capable of more 

15 gainful employment, the Secretary of Labor shall di16 rect the individual to participate in developing a 

17 comprehensive return to work plan and to undergo 

18 vocational rehabilitation at a location a reasonable 

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

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

21 Education, and Welfare in carrying out the pur22 poses of chapter 4 of title 29’’ and inserting 

23 ‘‘the Secretary of Education in carrying out the 

24 purposes of the Rehabilitation Act of 1973 (29 

25 U.S.C. 701 et seq.)’’; 


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

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

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

4 and 

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

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

7 not direct an individual who has attained retirement 

8 age to participate in developing a comprehensive re9 turn to work plan or to undergo vocational rehabili10 tation.’’; 

11 (2) by redesignating subsection (b) as sub12 section (c); 

13 (3) by inserting after subsection (a) the fol14 lowing: 

15 ‘‘(b) CONTENTS OF RETURN TO WORK PLAN.—A re16 turn to work plan developed under subsection (a)— 

17 ‘‘(1) shall— 

18 ‘‘(A) set forth specific measures designed 

19 to increase the wage-earning capacity of an in20 dividual; 

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

22 and education of the individual and the train23 ing, educational, and employment opportunities 

24 reasonably available to the individual; and 


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1 ‘‘(C) provide that any employment under2 taken by the individual under the return to 

3 work plan be at a location a reasonable distance 

4 from the residence of the individual; 

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

6 out of amounts in the Employees’ Compensation 

7 Fund reasonable expenses of vocational rehabilita8 tion (which may include tuition, books, training fees, 

9 supplies, equipment, and child or dependent care) 

10 during the course of the plan; and 

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

12 years, unless the Secretary finds good cause to grant 

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

14 years.’’; 

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

16 (A) by inserting ‘‘COMPENSATION.—’’ be17 fore ‘‘Notwithstanding’’; and 

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

19 undertaken pursuant to such rehabilitation’’; 

20 and 

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

22 ‘‘(d) ASSISTED REEMPLOYMENT AGREEMENTS.— 

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

24 into an assisted reemployment agreement with an 

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1 eral Government or a State or local government or 

2 a private employer that employs an individual eligi3 ble for wage-loss compensation under section 8105 

4 or 8106 to enable the individual to return to produc5 tive employment. 

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

7 agreement under paragraph (1)— 

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

9 use amounts in the Employees’ Compensation 

10 Fund to reimburse an employer in an amount 

11 equal to not more than 100 percent of the com12 pensation the individual would otherwise receive 

13 under section 8105 or 8106; and 

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

15 3 years. 

16 ‘‘(e) LIST.—To facilitate the hiring of individuals eli17 gible for wage-loss compensation under section 8105 or 

18 8106, the Secretary shall provide a list of such individuals 

19 to the Office of Personnel Management, which the Office 

20 of Personnel Management shall provide to all agencies and 

21 instrumentalities of the Federal Government.’’. 

22 (b) TERMINATION OF VOCATIONAL REHABILITATION

23 REQUIREMENT AFTER RETIREMENT AGE.—Section 

24 8113(b) is amended by adding at the end the following: 


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

2 be required to undergo vocational rehabilitation.’’. 

3 (c) MANDATORY BENEFIT REDUCTION FOR NON4 COMPLIANCE.—Section 8113(b) is amended by striking 

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

6 (d) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

8 15 of title 31, United States Code, is amended by 

9 adding at the end the following: 

10 ‘‘§ 1538. Authorization for assisted reemployment 

11 ‘‘Funds may be transferred from the Employees’ 

12 Compensation Fund established under section 8147 of 

13 title 5 to the applicable appropriations account for an 

14 agency or instrumentality of any branch of the Federal 

15 Government for the purposes of reimbursing the agency 

16 or instrumentality in accordance with an assisted reem17 ployment agreement entered into under section 8104 of 

18 title 5.’’. 

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

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

21 amended by inserting after the item relating to sec22 tion 1537 the following: 

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

23 SEC. 306. REPORTING REQUIREMENTS. 

24 (a) IN GENERAL.—Chapter 81 is amended by insert25 ing after section 8106 the following: 


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1 ‘‘§ 8106a. Reporting requirements 

2 ‘‘(a) DEFINITION.—In this section, the term ‘em3 ployee receiving compensation’ means an employee who— 

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

5 or 8106; and 

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

7 ‘‘(b) AUTHORITY.—The Secretary of Labor shall re8 quire an employee receiving compensation to report the 

9 earnings of the employee receiving compensation from em10 ployment or self-employment, by affidavit or otherwise, in 

11 the manner and at the times the Secretary specifies. 

12 ‘‘(c) CONTENTS.—An employee receiving compensa13 tion shall include in a report required under subsection 

14 (a) the value of housing, board, lodging, and other advan15 tages which are part of the earnings of the employee re16 ceiving compensation in employment or self-employment 

17 and the value of which can be estimated. 

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

19 ‘‘(1) IN GENERAL.—An employee receiving com20 pensation who fails to make an affidavit or other re21 port required under subsection (b) or who knowingly 

22 omits or understates any part of the earnings of the 

23 employee in such an affidavit or other report shall 

24 forfeit the right to compensation with respect to any 

25 period for which the report was required. 


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1 ‘‘(2) FORFEITED COMPENSATION.—Compensa2 tion forfeited under this subsection, if already paid 

3 to the employee receiving compensation, shall be re4 covered by a deduction from the compensation pay5 able to the employee or otherwise recovered under 

6 section 8129, unless recovery is waived under that 

7 section.’’. 

8 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

9 The table of sections for chapter 81 is amended by insert10 ing after the item relating to section 8106 the following: 

‘‘8106a. Reporting requirements.’’. 

11 SEC. 307. DISABILITY MANAGEMENT REVIEW; INDE12 PENDENT MEDICAL EXAMINATIONS. 

13 Section 8123 is amended by adding at the end the 

14 following: 

15 ‘‘(e) DISABILITY MANAGEMENT REVIEW.— 

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

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

18 employee who is in continuous receipt of com19 pensation for total disability under section 8105 

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

21 ‘‘(B) the term ‘disability management re22 view process’ means the disability management 

23 review process established under paragraph 

24 (2)(A). 


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

2 Labor shall— 

3 ‘‘(A) establish a disability management re4 view process for the purpose of certifying and 

5 monitoring the disability status and extent of 

6 injury of each covered employee; and 

7 ‘‘(B) promulgate regulations for the ad8 ministration of the disability management re9 view process. 

10 ‘‘(3) PHYSICAL EXAMINATIONS REQUIRED.— 

11 Under the disability management review process, the 

12 Secretary of Labor shall periodically require covered 

13 employees to submit to physical examinations under 

14 subsection (a) by physicians selected by the Sec15 retary. A physician conducting a physical examina16 tion of a covered employee shall submit to the Sec17 retary a report regarding the nature and extent of 

18 the injury to and disability of the covered employee. 

19 ‘‘(4) FREQUENCY.— 

20 ‘‘(A) IN GENERAL.—The regulations pro21 mulgated under paragraph (2)(B) shall specify 

22 the process and criteria for determining when 

23 and how frequently a physical examination 

24 should be conducted for a covered employee. 

25 ‘‘(B) MINIMUM FREQUENCY.— 


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1 ‘‘(i) INITIAL.—An initial physical ex2 amination shall be conducted not more 

3 than a brief period after the date on which 

4 a covered employee has been in continuous 

5 receipt of compensation for total disability 

6 under section 8015 for 6 months. 

7 ‘‘(ii) SUBSEQUENT EXAMINATIONS.— 

8 After the initial physical examination, 

9 physical examinations of a covered em10 ployee shall be conducted not less than 

11 once every 3 years. 

12 ‘‘(5) EMPLOYING AGENCY OR INSTRUMEN13 TALITY REQUESTS.— 

14 ‘‘(A) IN GENERAL.—The agency or instru15 mentality employing an employee who has made 

16 a claim for compensation for total disability 

17 under section 8105 may at any time submit a 

18 request for the Secretary of Labor to promptly 

19 require the employee to submit to a physical ex20 amination under this subsection. 

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

22 under subparagraph (A) shall be made on be23 half of an agency or instrumentality by— 

24 ‘‘(i) the head of the agency or instru25 mentality; 


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1 ‘‘(ii) the Chief Human Capital Officer 

2 of the agency or instrumentality; or 

3 ‘‘(iii) if the agency or instrumentality 

4 does not have a Chief Human Capital Offi5 cer, an officer with responsibilities similar 

6 to those of a Chief Human Capital Officer 

7 designated by the head of the agency or in8 strumentality to make requests under this 

9 paragraph. 

10 ‘‘(C) INFORMATION.—A request under sub11 paragraph (A) shall be in writing and accom12 panied by— 

13 ‘‘(i) a certification by the officer mak14 ing the request that the officer has re15 viewed the relevant material in the employ16 ee’s file; 

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

18 has determined, based on the materials in 

19 the file and other information known to 

20 the officer, that requiring a physical exam21 ination of the employee under this sub22 section is necessary; and 

23 ‘‘(iii) copies of the materials relating 

24 to the employee that are relevant to the of25 ficer’s determination and request, unless 


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1 the agency or instrumentality has a rea2 sonable basis for not providing the mate3 rials. 

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

5 Labor receives a request under this paragraph 

6 before an employee has undergone an initial 

7 physical examination under paragraph 

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

9 the physical examination of the employee. A 

10 physical examination under this subparagraph 

11 shall satisfy the requirement under paragraph 

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

13 conducted. 

14 ‘‘(E) AFTER INITIAL EXAMINATION.— 

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

16 Labor receives a request under this para17 graph after an employee has undergone an 

18 initial physical examination under para19 graph (4)(B)(i), the Secretary shall— 

20 ‘‘(I) review the request and the 

21 information, explanation, and other 

22 materials submitted with the request; 

23 and 

24 ‘‘(II) determine whether to re25 quire the physical examination of the 


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1 employee who is the subject of the re2 quest. 

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

4 determines not to grant a request de5 scribed in clause (i), the Secretary shall 

6 promptly notify the officer who made the 

7 request and provide an explanation of the 

8 reasons why the request was denied.’’. 

9 SEC. 308. WAITING PERIOD. 

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

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

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

13 period’’; 

14 (2) in subsection (a)— 

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

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

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

18 GENERAL.—An employee is not entitled to con19 tinuation of pay within the meaning of section 

20 8118 for the first 3 days of temporary disability 

21 or, if section 8118 does not apply, is not enti22 tled’’; 

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

24 the end; 

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


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1 (D) by redesignating paragraph (3) as 

2 paragraph (2); and 

3 (3) in subsection (b)— 

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

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

6 Postal Service’’ the second place it appears and 

7 inserting ‘‘USE OF LEAVE.—An’’; 

8 (B) by striking ‘‘that 3-day period’’ and in9 serting ‘‘the first 3 days of temporary dis10 ability’’; and 

11 (C) by striking ‘‘or is followed by perma12 nent disability’’. 

13 (b) CONTINUATION OF PAY.—Section 8118 is amend14 ed— 

15 (1) in the section heading, by striking ‘‘; elec16 tion to use annual or sick leave’’; 

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

18 8117(b)’’ and inserting ‘‘section 8117’’; 

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

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

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

22 (c) TECHNICAL AND CONFORMING AMENDMENTS.— 

23 The table of sections for chapter 81 is amended by strik24 ing the items relating to sections 8117 and 8118 and in25 serting the following: 


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‘‘8117. Waiting period. 

‘‘8118. Continuation of pay.’’. 

1 SEC. 309. ELECTION OF BENEFITS. 

2 (a) IN GENERAL.—Section 8116 is amended by add3 ing at the end the following: 

4 ‘‘(e) RETIREMENT BENEFITS.— 

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

6 compensation benefits payable under this subchapter 

7 and under chapter 83 or 84 or any other retirement 

8 system for employees of the Government, for the 

9 same period, shall elect which benefits the individual 

10 will receive. 

11 ‘‘(2) ELECTION.— 

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

13 make an election under paragraph (1) in ac14 cordance with such deadlines as the Secretary 

15 of Labor shall establish. 

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

17 paragraph (1) shall be revocable, notwith18 standing any other provision of law, except for 

19 any period during which an individual— 

20 ‘‘(i) was qualified for benefits payable 

21 under both this subchapter and under a re22 tirement system described in paragraph 

23 (1); and 


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1 ‘‘(ii) was paid benefits under the re2 tirement system after having been notified 

3 of eligibility for benefits under this sub4 chapter. 

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

6 Labor shall provide information, and shall ensure 

7 that information is provided, to an individual de8 scribed in paragraph (1) about the benefits available 

9 to the individual under this subchapter or under 

10 chapter 83 or 84 or any other retirement system re11 ferred to in paragraph (1) the individual may elect 

12 to receive.’’. 

13 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

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

16 under chapter 81, paragraphs’’. 

17 SEC. 310. SANCTION FOR NONCOOPERATION WITH FIELD 

18 NURSES. 

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

20 by adding at the end the following: 

21 ‘‘(f) FIELD NURSES.— 

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

23 ‘field nurse’ means a registered nurse that assists 

24 the Secretary in the medical management of dis25 ability claims under this subchapter and provides 


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1 claimants with assistance in coordinating medical 

2 care. 

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

4 field nurses to coordinate medical services and voca5 tional rehabilitation programs for injured employees 

6 under this subchapter. If an employee refuses to co7 operate with a field nurse or obstructs a field nurse 

8 in the performance of duties under this subchapter, 

9 the right to compensation under this subchapter 

10 shall be suspended until the refusal or obstruction 

11 stops.’’. 

12 SEC. 311. SUBROGATION OF CONTINUATION OF PAY. 

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

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

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

16 before ‘‘compensation’’; and 

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

18 of pay’’ before compensation; and 

19 (3) in subsection (c)— 

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

21 before ‘‘compensation already paid’’; and 

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

23 before ‘‘compensation payable’’. 

24 (b) ADJUSTMENT AFTER RECOVERY FROM A THIRD

25 PERSON.—Section 8132 is amended— 


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1 (1) in the first sentence— 

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

3 before ‘‘compensation is payable’’; 

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

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

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

7 and inserting ‘‘by the beneficiary or on behalf 

8 of the beneficiary’’; 

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

10 before ‘‘compensation paid by the United 

11 States’’; and 

12 (E) by striking ‘‘compensation payable to 

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

14 compensation payable to the beneficiary’’; 

15 (2) in the second sentence, by striking ‘‘his des16 ignee’’ and inserting ‘‘the designee of the bene17 ficiary’’; and 

18 (3) in the fourth sentence, by striking ‘‘If com19 pensation’’ and all that follows through ‘‘payable to 

20 him by the United States’’ and inserting ‘‘If con21 tinuation of pay or compensation has not been paid 

22 to the beneficiary, the money or property shall be 

23 credited against continuation of pay or compensation 

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


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1 SEC. 312. SOCIAL SECURITY EARNINGS INFORMATION. 

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

3 by adding at the end the following: 

4 ‘‘(f) EARNINGS INFORMATION.—Notwithstanding 

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

6 law, the Social Security Administration shall make avail7 able to the Secretary of Labor, upon written request, the 

8 Social Security earnings information of a living or de9 ceased employee who may have sustained an injury or died 

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

11 this subchapter required by the Secretary of Labor to 

12 carry out this subchapter.’’. 

13 SEC. 313. AMOUNT OF COMPENSATION. 

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

15 8107(c)(21) is amended— 

16 (1) by striking ‘‘not to exceed $3,500’’ and in17 serting ‘‘in proportion to the severity of the dis18 figurement, not to exceed $50,000,’’; and 

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

20 maximum amount of compensation under this para21 graph shall be increased on March 1 of each year by 

22 the amount determined by the Secretary of Labor to 

23 represent the percent change in the price index pub24 lished for December of the preceding year over the 

25 price index published for the December of the year 


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1 prior to the preceding year, adjusted to the nearest 

2 one-tenth of 1 percent.’’. 

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

4 amended— 

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

6 and 

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

8 maximum amount of compensation under this sub9 section shall be increased on March 1 of each year 

10 by the amount determined by the Secretary of Labor 

11 to represent the percent change in the price index 

12 published for December of the preceding year over 

13 the price index published for the December of the 

14 year prior to the preceding year, adjusted to the 

15 nearest one-tenth of 1 percent.’’. 

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

17 section shall apply to injuries or deaths, respectively, oc18 curring on or after the date of enactment of this Act. 

19 SEC. 314. TECHNICAL AND CONFORMING AMENDMENTS. 

20 Chapter 81 is amended— 

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

22 injury that occurred before the effective date of sec23 tion 204(e) of the District of Columbia Self-Govern24 ment and Governmental Reorganization Act (Public 


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

2 before the semicolon; 

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

4 subchapter’’ after ‘‘Compensation awarded’’; 

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

6 8106’’ and inserting ‘‘section 8106a’’; 

7 SEC. 315. REGULATIONS. 

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

9 of enactment of this Act, the Secretary of Labor shall pro10 mulgate regulations (which may include interim final reg11 ulations) to carry out this title. 

12 (b) CONTENTS.—The regulations promulgated under 

13 subsection (a) shall include, for purposes of the amend14 ments made by sections 302 and 303, clarification of— 

15 (1) what is a claim; and 

16 (2) what is the date on which a period of dis17 ability, for which a claim is made, commences. 

18 TITLE IV—OTHER MATTERS 

19 SEC. 401. PROFITABILITY PLAN. 

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

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

22 submit to the Committee on Homeland Security and Gov23 ernmental Affairs of the Senate, the Committee on Over24 sight and Government Reform of the House of Represent25 atives, the Comptroller General of the United States, and 


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

2 the Postal Service will take to— 

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

4 (2) achieve long-term financial solvency. 

5 (b) CONSIDERATIONS.—The plan required under sub6 section (a) shall take into consideration— 

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

8 (2) the changes in the legal authority and re9 sponsibilities of the Postal Service under this Act; 

10 (3) any cost savings that the Postal Service an11 ticipates will be achieved through negotiations with 

12 employees of the Postal Service; and 

13 (4) projected changes in mail volume. 

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

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

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

17 SEC. 402. POSTAL RATES. 

18 (a) COMMISSION STUDY.— 

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

20 after the date of enactment of this Act, the Commis21 sion shall commence a study to determine— 

22 (A) whether and to what extent any mar23 ket-dominant classes, products, or types of mail 

24 services do not bear the direct and indirect 


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1 costs attributable to those classes, products, or 

2 types of mail service; and 

3 (B) the impact of any excess mail proc4 essing, transportation, or delivery capacity of 

5 the Postal Service on the direct and indirect 

6 costs attributable to any class that bears less 

7 than 100 percent of the costs attributable to 

8 the class, as determined under subparagraph 

9 (A). 

10 (2) REQUIREMENTS.—The Commission shall 

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

12 that protects confidential and proprietary business 

13 information. 

14 (3) HEARING.—Before completing the study 

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

16 public hearing, on the record, in order to better in17 form the conclusions of the study. The Postal Serv18 ice, postal customers, and other interested persons 

19 may participate in the hearing under this paragraph. 

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

21 after the date on which the Commission commences 

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

23 complete the study. 

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

25 1 year after the date of completion of the study under 


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

2 shall— 

3 (1) determine whether any class of mail bears 

4 less than 100 percent of the direct and indirect costs 

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

6 service, in the same manner as under subsection 

7 (a)(1)(A); 

8 (2) for any class of mail for which the Commis9 sion makes a determination under paragraph (1), 

10 update the study under subsection (a); and 

11 (3) include the study updated under paragraph 

12 (2) in the annual written determination of the Com13 mission under section 3653 of title 39, United 

14 States Code. 

15 (c) POSTAL RATES.— 

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

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

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

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

20 according to the most recent annual determination 

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

22 adjusted to account for the quantitative effect of ex23 cess mail processing, transportation, or delivery ca24 pacity of the Postal Service on the costs attributable 

25 to the class of mail. 


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

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

3 completed, and annually thereafter, the Postal Serv4 ice shall establish postal rates for each loss-making 

5 class of mail. 

6 (3) CONSIDERATIONS.—The Postal Service may 

7 establish postal rates under paragraph (2) in a man8 ner that ensures, to the extent practicable, that a 

9 class of mail described in paragraph (2) is not loss10 making by— 

11 (A) using the authority to increase rates 

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

13 States Code; 

14 (B) exhausting any unused rate adjust15 ment authority, as defined in section 

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

17 subject to paragraph (4); and 

18 (C) maximizing incentives to reduce costs 

19 and increase efficiency with regard to the proc20 essing, transportation, and delivery of such mail 

21 by the Postal Service. 

22 (4) UNUSED RATE ADJUSTMENT AUTHORITY.— 

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

24 Code, shall be applied by annually increasing by 2 

25 percentage points any unused rate adjustment auVerDate Mar 15 2010 22:34 Jan 26, 2012 Jkt 019200 PO 00000 Frm 00089 Fmt 6652 Sfmt 6401 E:\BILLS\S1789.RS S1789

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1 thority for a class of mail that bears less than 90 

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

3 according to the most recent annual determination 

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

5 adjusted to account for the quantitative effect of ex6 cess mail processing, transportation, or delivery ca7 pacity of the Postal Service on the costs attributable 

8 to the class of mail. 

9 SEC. 403. COOPERATION WITH STATE AND LOCAL GOVERN10 MENTS; INTRA-SERVICE AGREEMENTS. 

11 (a) COOPERATION WITH STATE AND LOCAL GOV12 ERNMENTS.—Section 411 of title 39, United States Code, 

13 is amended, in the first sentence by striking ‘‘and the Gov14 ernment Printing Office’’ inserting ‘‘, the Government 

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

16 local governments’’. 

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

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

19 (a), is amended— 

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

21 the following: ‘‘and within the Postal Serv22 ice’’; 

23 (2) in the second sentence, by striking ‘‘sec24 tion’’ and inserting ‘‘subsection’’; 


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1 (3) by striking ‘‘Executive agencies’’ and insert2 ing the following: 

3 ‘‘(a) COOPERATION WITH STATE AND LOCAL GOV4 ERNMENTS.—Executive agencies’’; and 

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

6 ‘‘(b) COOPERATION WITHIN THE POSTAL SERV7 ICE.—The Office of the Inspector General and other com8 ponents of the Postal Service may enter into agreements 

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

10 and personal and nonpersonal services. The furnishing of 

11 property and services under this subsection shall be under 

12 such terms and conditions, including reimbursability, as 

13 the Inspector General and the head of the component con14 cerned shall deem appropriate.’’. 

15 (c) TECHNICAL AND CONFORMING AMENDMENT.— 

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

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

18 section 411 and inserting the following: 

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

19 SEC. 404. SHIPPING OF WINE AND BEER. 

20 (a) MAILABILITY.— 

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

22 of title 18, United States Code, is amended by strik23 ing ‘‘mails’’ and inserting ‘‘mails, except to the exVerDate Mar 15 2010 22:34 Jan 26, 2012 Jkt 019200 PO 00000 Frm 00091 Fmt 6652 Sfmt 6401 E:\BILLS\S1789.RS S1789

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1 tent that the mailing is allowable under section 

2 3001(p) of title 39’’. 

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

4 title 18, United States Code, is amended, by insert5 ing ‘‘, and, with respect to the mailing of wine or 

6 malt beverages (as those terms are defined in section 

7 117 of the Federal Alcohol Administration Act (27 

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

9 of title 39’’ after ‘‘Register’’. 

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

11 States Code, is amended by adding at the end the fol12 lowing: 

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

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

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

16 ‘‘(2) Wine or malt beverages shall be considered mail17 able if mailed— 

18 ‘‘(A) by a licensed winery or brewery, in accord19 ance with applicable regulations under paragraph 

20 (3); and 

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

22 territory, or district of the United States where the 

23 addressee or duly authorized agent takes delivery. 


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1 ‘‘(3) The Postal Service shall prescribe such regula2 tions as may be necessary to carry out this subsection, 

3 including regulations providing that— 

4 ‘‘(A) the mailing shall be by a means estab5 lished by the Postal Service to ensure direct delivery 

6 to the addressee or a duly authorized agent; 

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

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

9 age; 

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

11 the addressee or a duly authorized agent, shall 

12 present a valid, government-issued photo identifica13 tion at the time of delivery; 

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

15 resale or other commercial purpose; and 

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

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

18 the Postal Service, through a registration proc19 ess administered by the Postal Service, that the 

20 mailing is not in violation of any provision of 

21 this subsection or regulation prescribed under 

22 this subsection; and 

23 ‘‘(ii) provide any other information or af24 firmation that the Postal Service may require, 


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1 including with respect to the prepayment of 

2 State alcohol beverage taxes. 

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

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

5 if it holds an appropriate basic permit issued— 

6 ‘‘(i) under the Federal Alcohol Administra7 tion Act; and 

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

9 the winery is located; and 

10 ‘‘(B) a brewery shall be considered to be li11 censed if— 

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

13 and bond approved by the Alcohol and Tobacco 

14 Tax and Trade Bureau of the Department of 

15 the Treasury; and 

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

17 malt beverages in the State in which the brew18 ery is located.’’. 

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

20 this section shall take effect on the earlier of— 

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

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

23 States Code, as amended by this section; and 

24 (2) 120 days after the date of enactment of this 

25 Act. 


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1 SEC. 405. ANNUAL REPORT ON UNITED STATES MAILING IN2 DUSTRY. 

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

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

6 ‘‘§ 2403. Annual report on the fiscal stability of the 

7 United States mailing industry 

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

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

10 the Postal Regulatory Commission shall submit a report 

11 on the fiscal stability of the United States mailing indus12 try with respect to the preceding fiscal year to— 

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

14 Governmental Affairs of the Senate; and 

15 ‘‘(2) the Committee on Oversight and Govern16 ment Reform of the House of Representatives. 

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

18 and any Federal agency involved in oversight or data col19 lection regarding industry sectors relevant to the report 

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

21 Postal Regulatory Commission that the Postal Regulatory 

22 Commission determines is necessary in the preparation of 

23 a report under subsection (a).’’. 

24 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

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


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1 States Code, is amended by adding at the end the fol2 lowing: 

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

3 SEC. 406. USE OF NEGOTIATED SERVICE AGREEMENTS. 

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

5 amended— 

6 (1) in subsection (c)(10)(A)— 

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

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

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

10 end; 

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

12 end and inserting ‘‘or’’; and 

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

14 ‘‘(iii) preserve mail volume and rev15 enue; and’’; and 

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

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

18 Postal Regulatory Commission shall coordinate actions to 

19 identify methods to increase the use of negotiated service 

20 agreements for market-dominant products by the Postal 

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

22 SEC. 407. CONTRACT DISPUTES. 

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

24 amended— 


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

2 the end; 

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

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

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

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

7 the Postal Regulatory Commission.’’. 

8 SEC. 408. CONTRACTING PROVISIONS. 

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

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

11 ‘‘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. 

12 ‘‘§ 701. Definitions 

13 ‘‘In this chapter— 

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

15 employee of a covered postal entity who has author16 ity to enter into a postal contract; 

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

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

19 ‘‘(B) the Postal Regulatory Commission; 

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

21 means— 


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1 ‘‘(A) in the case of the United States Post2 al Service, the Postmaster General; or 

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

4 Commission, the Chairman of the Postal Regu5 latory Commission; 

6 ‘‘(4) the term ‘postal contract’ means any con7 tract (including any agreement or memorandum of 

8 understanding) entered into by a covered postal enti9 ty for the procurement of goods or services; and 

10 ‘‘(5) the term ‘senior procurement executive’ 

11 means the senior procurement executive of a covered 

12 postal entity. 

13 ‘‘§ 702. Advocate for competition 

14 ‘‘(a) ESTABLISHMENT AND DESIGNATION.— 

15 ‘‘(1) There is established in each covered postal 

16 entity an advocate for competition. 

17 ‘‘(2) The head of each covered postal entity 

18 shall designate for the covered postal entity 1 or 

19 more officers or employees (other than the senior 

20 procurement executive) to serve as the advocate for 

21 competition. 

22 ‘‘(b) RESPONSIBILITIES.—The advocate for competi23 tion of each covered postal entity shall— 

24 ‘‘(1) be responsible for promoting competition 

25 to the maximum extent practicable consistent with 


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1 obtaining best value by promoting the acquisition of 

2 commercial items and challenging barriers to com3 petition; 

4 ‘‘(2) review the procurement activities of the 

5 covered postal entity; and 

6 ‘‘(3) prepare and transmit to the head of each 

7 covered postal entity, the senior procurement execu8 tive of each covered postal entity, the Board of Gov9 ernors of the United States Postal Service, and Con10 gress, an annual report describing— 

11 ‘‘(A) the activities of the advocate under 

12 this section; 

13 ‘‘(B) initiatives required to promote com14 petition; 

15 ‘‘(C) barriers to competition that remain; 

16 and 

17 ‘‘(D) the number of waivers made by each 

18 covered postal entity under section 704(c). 

19 ‘‘§ 703. Delegation of contracting authority 

20 ‘‘(a) IN GENERAL.— 

21 ‘‘(1) POLICY.—Not later than 60 days after the 

22 date of enactment of the 21st Century Postal Serv23 ice Act of 2011, the head of each covered postal en24 tity shall issue a policy on contracting officer delega25 tions of authority for the covered postal entity. 


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1 ‘‘(2) CONTENTS.—The policy issued under 

2 paragraph (1) shall require that— 

3 ‘‘(A) notwithstanding any delegation of au4 thority with respect to postal contracts, the ulti5 mate responsibility and accountability for the 

6 award and administration of postal contracts 

7 resides with the senior procurement executive; 

8 and 

9 ‘‘(B) a contracting officer shall maintain 

10 an awareness of and engagement in the activi11 ties being performed on postal contracts of 

12 which that officer has cognizance, notwith13 standing any delegation of authority that may 

14 have been executed. 

15 ‘‘(b) POSTING OF DELEGATIONS.— 

16 ‘‘(1) IN GENERAL.—The head of each covered 

17 postal entity shall make any delegation of authority 

18 for postal contracts outside the functional con19 tracting unit readily available and accessible on the 

20 website of the covered postal entity. 

21 ‘‘(2) EFFECTIVE DATE.—This paragraph shall 

22 apply to any delegation of authority made on or 

23 after 30 days after the date of enactment of the 21st 

24 Century Postal Service Act of 2011. 


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1 ‘‘§ 704. Posting of noncompetitive purchase requests 

2 for noncompetitive contracts 

3 ‘‘(a) POSTING REQUIRED.— 

4 ‘‘(1) POSTAL REGULATORY COMMISSION.—The 

5 Postal Regulatory Commission shall make the non6 competitive purchase request for any noncompetitive 

7 award, including the rationale supporting the non8 competitive award, publicly available on the website 

9 of the Postal Regulatory Commission— 

10 ‘‘(A) not later than 14 days after the date 

11 of the award of the noncompetitive contract; or 

12 ‘‘(B) not later than 30 days after the date 

13 of the award of the noncompetitive contract, if 

14 the basis for the award was a compelling busi15 ness interest. 

16 ‘‘(2) UNITED STATES POSTAL SERVICE.—The 

17 United States Postal Service shall make the non18 competitive purchase request for any noncompetitive 

19 award of a postal contract valued at $250,000 or 

20 more, including the rationale supporting the non21 competitive award, publicly available on the website 

22 of the United States Postal Service— 

23 ‘‘(A) not later than 14 days after the date 

24 of the award; or 


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1 ‘‘(B) not later than 30 days after the date 

2 of the award, if the basis for the award was a 

3 compelling business interest. 

4 ‘‘(3) ADJUSTMENTS TO THE POSTING THRESH5 OLD FOR THE UNITED STATES POSTAL SERVICE.— 

6 ‘‘(A) REVIEW AND DETERMINATION.—Not 

7 later than January 31 of each year, the United 

8 States Postal Service shall— 

9 ‘‘(i) review the $250,000 threshold es10 tablished under paragraph (2); and 

11 ‘‘(ii) based on any change in the Con12 sumer Price Index for all-urban consumers 

13 of the Department of Labor, determine 

14 whether an adjustment to the threshold 

15 shall be made. 

16 ‘‘(B) AMOUNT OF ADJUSTMENTS.—An ad17 justment under subparagraph (A) shall be made 

18 in increments of $5,000. If the United States 

19 Postal Service determines that a change in the 

20 Consumer Price Index for a year would require 

21 an adjustment in an amount that is less than 

22 $5,000, the United States Postal Service may 

23 not make an adjustment to the threshold for 

24 the year. 


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1 ‘‘(4) EFFECTIVE DATE.—This subsection shall 

2 apply to any noncompetitive contract awarded on or 

3 after the date that is 90 days after the date of en4 actment of the 21st Century Postal Service Act of 

5 2011. 

6 ‘‘(b) PUBLIC AVAILABILITY.— 

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

8 the information required to be made publicly avail9 able by a covered postal entity under subsection (a) 

10 shall be readily accessible on the website of the cov11 ered postal entity. 

12 ‘‘(2) PROTECTION OF PROPRIETARY INFORMA13 TION.—A covered postal entity shall— 

14 ‘‘(A) carefully screen any description of the 

15 rationale supporting a noncompetitive award re16 quired to be made publicly available under sub17 section (a) to determine whether the description 

18 includes proprietary data (including any ref19 erence or citation to the proprietary data) or se20 curity-related information; and 

21 ‘‘(B) remove any proprietary data or secu22 rity-related information before making publicly 

23 available a description of the rational sup24 porting a noncompetitive award. 

25 ‘‘(c) WAIVERS.— 


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1 ‘‘(1) WAIVER PERMITTED.—If a covered postal 

2 entity determines that making a noncompetitive pur3 chase request publicly available would risk placing 

4 the United States Postal Service at a competitive 

5 disadvantage relative to a private sector competitor, 

6 the senior procurement executive, in consultation 

7 with the advocate for competition of the covered 

8 postal entity, may waive the requirements under 

9 subsection (a). 

10 ‘‘(2) FORM AND CONTENT OF WAIVER.— 

11 ‘‘(A) FORM.—A waiver under paragraph 

12 (1) shall be in the form of a written determina13 tion placed in the file of the contract to which 

14 the noncompetitive purchase agreement relates. 

15 ‘‘(B) CONTENT.—A waiver under para16 graph (1) shall include— 

17 ‘‘(i) a description of the risk associ18 ated with making the noncompetitive pur19 chase request publicly available; and 

20 ‘‘(ii) a statement that redaction of 

21 sensitive information in the noncompetitive 

22 purchase request would not be sufficient to 

23 protect the United States Postal Service 

24 from being placed at a competitive disVerDate Mar 15 2010 22:34 Jan 26, 2012 Jkt 019200 PO 00000 Frm 00104 Fmt 6652 Sfmt 6401 E:\BILLS\S1789.RS S1789

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1 advantage relative to a private sector com2 petitor. 

3 ‘‘(3) DELEGATION OF WAIVER AUTHORITY.—A 

4 covered postal entity may not delegate the authority 

5 to approve a waiver under paragraph (1) to any em6 ployee having less authority than the senior procure7 ment executive. 

8 ‘‘§ 705. Review of ethical issues 

9 ‘‘If a contracting officer identifies any ethical issues 

10 relating to a proposed contract and submits those issues 

11 and that proposed contract to the designated ethics official 

12 for the covered postal entity before the awarding of that 

13 contract, that ethics official shall— 

14 ‘‘(1) review the proposed contract; and 

15 ‘‘(2) advise the contracting officer on the appro16 priate resolution of ethical issues. 

17 ‘‘§ 706. Ethical restrictions on participation in certain 

18 contracting activity 

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

20 ‘‘(1) the term ‘covered employee’ means— 

21 ‘‘(A) a contracting officer; or 

22 ‘‘(B) any employee of a covered postal en23 tity whose decisionmaking affects a postal con24 tract as determined by regulations prescribed 

25 by the head of a covered postal entity; 


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1 ‘‘(2) the term ‘covered relationship’ means a 

2 covered relationship described in section 

3 2635.502(b)(1) of title 5, Code of Federal Regula4 tions, or any successor thereto; and 

5 ‘‘(3) the term ‘final conviction’ means a convic6 tion, whether entered on a verdict or plea, including 

7 a plea of nolo contendere, for which a sentence has 

8 been imposed. 

9 ‘‘(b) IN GENERAL.— 

10 ‘‘(1) REGULATIONS.—The head of each covered 

11 postal entity shall prescribe regulations that— 

12 ‘‘(A) require a covered employee to include 

13 in the file of any noncompetitive purchase re14 quest for a noncompetitive postal contract a 

15 written certification that— 

16 ‘‘(i) discloses any covered relationship 

17 of the covered employee; and 

18 ‘‘(ii) the covered employee will not 

19 take any action with respect to the non20 competitive purchase request that affects 

21 the financial interests of a friend, relative, 

22 or person with whom the covered employee 

23 is affiliated in a nongovernmental capacity, 

24 or otherwise gives rise to an appearance of 

25 the use of public office for private gain, as 


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1 described in section 2635.702 of title 5, 

2 Code of Federal Regulations, or any suc3 cessor thereto; 

4 ‘‘(B) require a contracting officer to con5 sult with the ethics counsel for the covered 

6 postal entity regarding any disclosure made by 

7 a covered employee under subparagraph (A)(i), 

8 to determine whether participation by the cov9 ered employee in the noncompetitive purchase 

10 request would give rise to a violation of part 

11 2635 of title 5, Code of Federal Regulations 

12 (commonly referred to as the ‘Standards of 

13 Ethical Conduct for Employees of the Executive 

14 Branch’); 

15 ‘‘(C) require the ethics counsel for a cov16 ered postal entity to review any disclosure made 

17 by a contracting officer under subparagraph 

18 (A)(i) to determine whether participation by the 

19 contracting officer in the noncompetitive pur20 chase request would give rise to a violation of 

21 part 2635 of title 5, Code of Federal Regula22 tions (commonly referred to as the ‘Standards 

23 of Ethical Conduct for Employees of the Execu24 tive Branch’), or any successor thereto; 


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1 ‘‘(D) under subsections (d) and (e) of sec2 tion 2635.50 of title 5, Code of Federal Regula3 tions, or any successor thereto, require the eth4 ics counsel for a covered postal entity to— 

5 ‘‘(i) authorize a covered employee that 

6 makes a disclosure under subparagraph 

7 (A)(i) to participate in the noncompetitive 

8 postal contract; or 

9 ‘‘(ii) disqualify a covered employee 

10 that makes a disclosure under subpara11 graph (A)(i) from participating in the non12 competitive postal contract; 

13 ‘‘(E) require a contractor to timely disclose 

14 to the contracting officer in a bid, solicitation, 

15 award, or performance of a postal contract any 

16 conflict of interest with a covered employee; and 

17 ‘‘(F) include authority for the head of the 

18 covered postal entity to a grant a waiver or oth19 erwise mitigate any organizational or personal 

20 conflict of interest, if the head of the covered 

21 postal entity determines that the waiver or miti22 gation is in the best interests of the Postal 

23 Service. 

24 ‘‘(2) POSTING OF WAIVERS.—Not later than 30 

25 days after the head of a covered postal entity grants 


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1 a waiver described in paragraph (1)(F), the head of 

2 the covered postal entity shall make the waiver pub3 licly available on the website of the covered postal 

4 entity. 

5 ‘‘(c) CONTRACT VOIDANCE AND RECOVERY.— 

6 ‘‘(1) UNLAWFUL CONDUCT.—In any case in 

7 which there is a final conviction for a violation of 

8 any provision of chapter 11 of title 18 relating to a 

9 postal contract, the head of a covered postal entity 

10 may— 

11 ‘‘(A) void that contract; and 

12 ‘‘(B) recover the amounts expended and 

13 property transferred by the covered postal enti14 ty under that contract. 

15 ‘‘(2) OBTAINING OR DISCLOSING PROCUREMENT

16 INFORMATION.— 

17 ‘‘(A) IN GENERAL.—In any case where a 

18 contractor under a postal contract fails to time19 ly disclose a conflict of interest to the appro20 priate contracting officer as required under the 

21 regulations promulgated under subsection 

22 (b)(1)(D), the head of a covered postal entity 

23 may— 

24 ‘‘(i) void that contract; and 


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1 ‘‘(ii) recover the amounts expended 

2 and property transferred by the covered 

3 postal entity under that contract. 

4 ‘‘(B) CONVICTION OR ADMINISTRATIVE DE5 TERMINATION.—A case described under sub6 paragraph (A) is any case in which— 

7 ‘‘(i) there is a final conviction for an 

8 offense punishable under section 27(e) of 

9 the Office of Federal Procurement Policy 

10 Act (41 U.S.C. 423(e)); or 

11 ‘‘(ii) the head of a covered postal enti12 ty determines, based upon a preponderance 

13 of the evidence, that the contractor or 

14 someone acting for the contractor has en15 gaged in conduct constituting an offense 

16 punishable under section 27(e) of that 

17 Act.’’. 

18 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

19 The table of chapters for part I of title 39, United States 

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

‘‘7. Contracting Provisions ....................................................................... 701’’. 

21 SECTION 1. SHORT TITLE. 

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

23 Service Act of 2012’’. 

24 SEC. 2. TABLE OF CONTENTS. 

25 The table of contents for this Act is as follows: 


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Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. Definitions. 

TITLE I—POSTAL WORKFORCE MATTERS 

Sec. 101. Treatment of postal funding surplus for Federal Employees Retirement 

System. 

Sec. 102. Additional service credit. 

Sec. 103. Restructuring of payments for retiree health benefits. 

Sec. 104. Postal Service Health Benefits Program. 

Sec. 105. 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. Post offices; 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. Integrity and compliance. 

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. 


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1 SEC. 3. DEFINITIONS. 

2 In this Act, the following definitions shall apply: 

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

4 means the Postal Regulatory Commission. 

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

7 TITLE I—POSTAL WORKFORCE 

8 MATTERS 

9 SEC. 101. TREATMENT OF POSTAL FUNDING SURPLUS FOR 

10 FEDERAL EMPLOYEES RETIREMENT SYSTEM. 

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

12 amended— 

13 (1) by redesignating paragraph (5) as para14 graph (6); and 

15 (2) by inserting after paragraph (4) the fol16 lowing: 

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

18 surplus’ means the amount by which the amount computed 

19 under paragraph (1)(B) is less than zero. 

20 ‘‘(B)(i) Beginning with fiscal year 2011, for each fiscal 

21 year in which the amount computed under paragraph 

22 (1)(B) is less than zero, upon request of the Postmaster Gen23 eral, the Director shall transfer to the United States Postal 

24 Service from the Fund an amount equal to the postal fund25 ing surplus for that fiscal year for use in accordance with 

26 this paragraph. 


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1 ‘‘(ii) The Office shall calculate the amount under para2 graph (1)(B) for a fiscal year by not later than June 15 

3 after the close of the fiscal year, and shall transfer any post4 al funding surplus to the United States Postal Service with5 in 10 days after a request by the Postmaster General. 

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

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

8 than zero, a portion of the postal funding surplus for the 

9 fiscal year shall be used by the United States Postal Service 

10 for the cost of providing to employees of the United States 

11 Postal Service who voluntarily separate from service before 

12 October 1, 2014— 

13 ‘‘(i) voluntary separation incentive payments 

14 (including payments to employees who retire under 

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

16 2014) that may not exceed the maximum amount pro17 vided under section 3523(b)(3)(B) for any employee; 

18 and 

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

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

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

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

23 United States Postal Service for the purposes of— 

24 ‘‘(i) repaying any obligation issued under sec25 tion 2005 of title 39; or 


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1 ‘‘(ii) making required payments to— 

2 ‘‘(I) the Employees’ Compensation Fund es3 tablished under section 8147; 

4 ‘‘(II) the Postal Service Retiree Health Ben5 efits Fund established under section 8909a; 

6 ‘‘(III) the Employees Health Benefits Fund 

7 established under section 8909; or 

8 ‘‘(IV) the Civil Service Retirement and Dis9 ability Fund.’’. 

10 SEC. 102. ADDITIONAL SERVICE CREDIT. 

11 (a) CIVIL SERVICE RETIREMENT SYSTEM.—Section 

12 8332 of title 5, United States Code, is amended by adding 

13 at the end the following: 

14 ‘‘(p)(1)(A) For an employee of the United States Post15 al Service who is covered under this subchapter and volun16 tarily separates from service before October 1, 2014, at the 

17 direction of the United States Postal Service, the Office 

18 shall add not more than 1 year (as specified by the United 

19 States Postal Service) to the total creditable service of the 

20 employee for purposes of determining entitlement to and 

21 computing the amount of an annuity under this subchapter 

22 (except for a disability annuity under section 8337). 

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

24 service under this paragraph may not receive a voluntary 


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1 separation incentive payment from the United States Postal 

2 Service. 

3 ‘‘(2)(A) Subject to subparagraph (B), and notwith4 standing any other provision of law, no deduction, deposit, 

5 or contribution shall be required for service credited under 

6 this subsection. 

7 ‘‘(B) The actuarial present value of the additional li8 ability of the United States Postal Service to the Fund re9 sulting from this subsection shall be included in the amount 

10 calculated under section 8348(h)(1)(A).’’. 

11 (b) FEDERAL EMPLOYEES RETIREMENT SYSTEM.— 

12 Section 8411 of title 5, United States Code, is amended by 

13 adding at the end the following: 

14 ‘‘(m)(1)(A) For an employee of the United States Post15 al Service who is covered under this chapter and volun16 tarily separates from service before October 1, 2014, at the 

17 direction of the United States Postal Service, the Office 

18 shall add not more than 2 years (as specified by the United 

19 States Postal Service) to the total creditable service of the 

20 employee for purposes of determining entitlement to and 

21 computing the amount of an annuity under this chapter 

22 (except for a disability annuity under subchapter V of that 

23 chapter). 

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

25 service under this paragraph may not receive a voluntary 


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1 separation incentive payment from the United States Postal 

2 Service. 

3 ‘‘(2)(A) Subject to subparagraph (B), and notwith4 standing any other provision of law, no deduction, deposit, 

5 or contribution shall be required for service credited under 

6 this subsection. 

7 ‘‘(B) The actuarial present value of the additional li8 ability of the United States Postal Service to the Fund re9 sulting from this subsection shall be included in the amount 

10 calculated under section 8423(b)(1)(B).’’. 

11 SEC. 103. RESTRUCTURING OF PAYMENTS FOR RETIREE 

12 HEALTH BENEFITS. 

13 (a) CONTRIBUTIONS.—Section 8906(g)(2)(A) of title 5, 

14 United States Code, is amended by striking ‘‘through Sep15 tember 30, 2016, be paid by the United States Postal Serv16 ice, and thereafter shall’’ and inserting ‘‘after the date of 

17 enactment of the 21st Century Postal Service Act of 2012’’. 

18 (b) POSTAL SERVICE RETIREE HEALTH BENEFITS

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

20 amended— 

21 (1) in subsection (d)— 

22 (A) in paragraph (2)(B)— 

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

24 ‘‘2012’’; and 


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

2 following: ‘‘80 percent of’’; and 

3 (B) in paragraph (3)— 

4 (i) in subparagraph (A)— 

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

6 ‘‘and’’ at the end; 

7 (II) in clause (iv), by striking the 

8 semicolon at the end and inserting a 

9 period; and 

10 (III) by striking clauses (v) 

11 through (x); and 

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

13 ‘‘2017’’ and inserting ‘‘2012’’; and 

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

15 ‘‘(e) Subsections (a) through (d) shall be subject to sec16 tion 104 of the 21st Century Postal Service Act of 2012.’’. 

17 SEC. 104. POSTAL SERVICE HEALTH BENEFITS PROGRAM. 

18 (a) DEFINITIONS.—In this section— 

19 (1) the term ‘‘covered employee’’ means an em20 ployee of the Postal Service who is represented by a 

21 bargaining representative recognized under section 

22 1203 of title 39, United States Code; 

23 (2) the term ‘‘Federal Employee Health Benefits 

24 Program’’ means the health benefits program under 

25 chapter 89 of title 5, United States Code; and 


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

2 Program’’ means the health benefits program that 

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

4 (b) COLLECTIVE BARGAINING.— 

5 (1) IN GENERAL.—Consistent with section 

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

7 Service may negotiate jointly with all bargaining 

8 representatives recognized under section 1203 of title 

9 39, United States Code, and enter into a joint collec10 tive bargaining agreement with those bargaining rep11 resentatives to establish the Postal Service Health 

12 Benefits Program that satisfies the conditions under 

13 subsection (c). The Postal Service and the bargaining 

14 representatives shall negotiate in consultation with 

15 the Director of the Office of Personnel Management. 

16 (2) CONSULTATION WITH SUPERVISORY AND

17 MANAGERIAL PERSONNEL.—In the course of negotia18 tions under paragraph (1), the Postal Service shall 

19 consult with each of the organizations of supervisory 

20 and other managerial personnel that are recognized 

21 under section 1004 of title 39, United States Code, 

22 concerning the views of the personnel represented by 

23 each of those organizations. 

24 (3) ARBITRATION LIMITATION.—Notwithstanding 

25 chapter 12 of title 39, United States Code, there shall 


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1 not be arbitration of any dispute in the negotiations 

2 under this subsection. 

3 (4) TIME LIMITATION.—The authority under this 

4 subsection shall extend until September 30, 2012. 

5 (c) POSTAL SERVICE HEALTH BENEFITS PROGRAM.— 

6 The Postal Service Health Benefits Program— 

7 (1) shall— 

8 (A) be available for participation by all 

9 covered employees; 

10 (B) be available for participation by any 

11 officer or employee of the Postal Service who is 

12 not a covered employee, at the option solely of 

13 that officer or employee; 

14 (C) provide adequate and appropriate 

15 health benefits; 

16 (D) be administered in a manner deter17 mined in a joint agreement reached under sub18 section (b); and 

19 (E) provide for transition of coverage under 

20 the Federal Employee Health Benefits Program 

21 of covered employees to coverage under the Postal 

22 Service Health Benefits Program on January 1, 

23 2013; 

24 (2) may provide dental benefits; and 

25 (3) may provide vision benefits. 


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

2 agreement is reached under subsection (b)— 

3 (1) the Postal Service shall implement the Postal 

4 Service Health Benefits Program; 

5 (2) the Postal Service Health Benefits Program 

6 shall constitute an agreement between the collective 

7 bargaining representatives and the Postal Service for 

8 purposes of section 1005(f) of title 39, United States 

9 Code; and 

10 (3) covered employees may not participate as 

11 employees in the Federal Employees Health Benefits 

12 Program. 

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

14 Benefits Program shall be a government plan as that term 

15 is defined under section 3(32) of Employee Retirement In16 come Security Act of 1974 (29 U.S.C. 1002(32)). 

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

18 Service shall submit a report to the Committee on Home19 land Security and Governmental Affairs of the Senate and 

20 the Committee on Oversight and Government Reform of the 

21 House of Representatives that— 

22 (1) reports on the implementation of this section; 

23 and 


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1 (2) requests any additional statutory authority 

2 that the Postal Service determines is necessary to 

3 carry out the purposes of this section. 

4 SEC. 105. ARBITRATION; LABOR DISPUTES. 

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

6 amended— 

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

8 (2) by striking the last sentence and inserting 

9 ‘‘The arbitration board shall render a decision not 

10 later than 45 days after the date of its appointment.’’; 

11 and 

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

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

14 the arbitration board shall consider such relevant factors 

15 as— 

16 ‘‘(i) the financial condition of the Postal Service; 

17 ‘‘(ii) the requirements relating to pay and com18 pensation comparability under section 1003(a); and 

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

20 TITLE II—POSTAL SERVICES AND 

21 OPERATIONS 

22 SEC. 201. POSTAL FACILITIES. 

23 Section 404 of title 39, United States Code, is amended 

24 by adding after subsection (e) the following: 


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1 ‘‘(f) CLOSING OR CONSOLIDATION OF CERTAIN POSTAL

2 FACILITIES.— 

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

4 term ‘postal facility’— 

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

6 is primarily involved in the preparation, dis7 patch, or other physical processing of mail; and 

8 ‘‘(B) does not include— 

9 ‘‘(i) any post office, station, or branch; 

10 or 

11 ‘‘(ii) any facility used only for admin12 istrative functions. 

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

14 ‘‘(A) NEW AREA MAIL PROCESSING STUD15 IES.—After the date of enactment of this sub16 section, before making a determination under 

17 subsection (a)(3) as to the necessity for the clos18 ing or consolidation of any postal facility, the 

19 Postal Service shall— 

20 ‘‘(i) conduct an area mail processing 

21 study relating to that postal facility that 

22 includes a plan to reduce the capacity of the 

23 postal facility, but not close the postal facil24 ity; 


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

2 Service website; and 

3 ‘‘(iii) publish a notice that the study is 

4 complete and available to the public, includ5 ing on the Postal Service website. 

6 ‘‘(B) COMPLETED OR ONGOING AREA MAIL

7 PROCESSING STUDIES.— 

8 ‘‘(i) IN GENERAL.—In the case of a 

9 postal facility described in clause (ii), the 

10 Postal Service shall— 

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

12 capacity of the postal facility, but not 

13 close the postal facility; and 

14 ‘‘(II) publish the results of the 

15 consideration under subclause (I) with 

16 or as an amendment to the area mail 

17 processing study relating to the postal 

18 facility. 

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

20 facility described in this clause is a postal 

21 facility for which, on or before the date of 

22 enactment of this subsection— 

23 ‘‘(I) an area mail processing 

24 study that does not include a plan to 

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1 ity, but not close the facility, has been 

2 completed or is in progress; and 

3 ‘‘(II) a determination as to the 

4 necessity for the closing or consolida5 tion of the postal facility has not been 

6 made. 

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

8 HEARING.—If the Postal Service makes a determina9 tion under subsection (a)(3) to close or consolidate a 

10 postal facility, the Postal Service shall— 

11 ‘‘(A) provide notice of the determination 

12 to— 

13 ‘‘(i) Congress; and 

14 ‘‘(ii) the Postal Regulatory Commis15 sion; 

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

17 intention of the Postal Service to close or consoli18 date the postal facility; 

19 ‘‘(C) ensure that interested persons have an 

20 opportunity to submit public comments during a 

21 45-day period after the notice of intention is 

22 provided under subparagraph (B); 

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

24 subparagraph (C), provide for public notice of 

25 that opportunity by— 


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1 ‘‘(i) publication on the Postal Service 

2 website; 

3 ‘‘(ii) posting at the affected postal fa4 cility; and 

5 ‘‘(iii) advertising the date and location 

6 of the public community meeting under sub7 paragraph (E); and 

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

9 subparagraph (C), conduct a public community 

10 meeting that provides an opportunity for public 

11 comments to be submitted verbally or in writing. 

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

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

14 public comment under paragraph (3), the Postal 

15 Service, in making a determination whether or not to 

16 close or consolidate a postal facility, shall consider— 

17 ‘‘(A) the views presented by interested per18 sons solicited under paragraph (3); 

19 ‘‘(B) the effect of the closing or consolida20 tion on the affected community, including any 

21 disproportionate impact the closure or consolida22 tion may have on a State, region, or locality; 

23 ‘‘(C) the effect of the closing or consolidation 

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1 tomers to access services under the proposed clos2 ing or consolidation; 

3 ‘‘(D) the effect of the closing or consolida4 tion on delivery times for all classes of mail; 

5 ‘‘(E) any characteristics of certain geo6 graphical areas, such as remoteness, broadband 

7 internet availability, and weather-related obsta8 cles to using alternative facilities, that may re9 sult in the closing or consolidation having a 

10 unique effect; and 

11 ‘‘(F) any other factor the Postal Service de12 termines is necessary. 

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

14 date on which the Postal Service closes or consolidates 

15 a postal facility, the Postal Service shall post on the 

16 Postal Service website a closure or consolidation jus17 tification statement that includes— 

18 ‘‘(A) a response to all public comments re19 ceived with respect to the considerations de20 scribed under paragraph (4); 

21 ‘‘(B) a description of the considerations 

22 made by the Postal Service under paragraph (4); 

23 and 


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

2 Postal Service to mitigate any negative effects 

3 identified under paragraph (4). 

4 ‘‘(6) CLOSING OR CONSOLIDATION OF POSTAL FA5 CILITIES.— 

6 ‘‘(A) IN GENERAL.—Not earlier than the 15 

7 days after posting and publishing the final deter8 mination and the justification statement under 

9 paragraph (6) with respect to a postal facility, 

10 the Postal Service may close or consolidate the 

11 postal facility. 

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

13 the Postal Service closes or consolidates a postal 

14 facility under subparagraph (A), the Postal 

15 Service shall make reasonable efforts to ensure 

16 continued mail receipt from customers of the 

17 closed or consolidated postal facility at the same 

18 location or at another appropriate location in 

19 close geographic proximity to the closed or con20 solidated postal facility. 

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

22 of any notice required to be published on the Postal 

23 Service website under this subsection, the Postal Serv24 ice shall ensure that the Postal Service website— 

25 ‘‘(A) is updated routinely; and 


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

2 the person, the opportunity to receive relevant 

3 updates by electronic mail. 

4 ‘‘(8) PROTECTION OF CERTAIN INFORMATION.— 

5 Nothing in this subsection may be construed to re6 quire the Postal Service to disclose— 

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

8 reference or citation to proprietary data; and 

9 ‘‘(B) any information relating to the secu10 rity of a postal facility.’’. 

11 SEC. 202. ADDITIONAL POSTAL SERVICE PLANNING. 

12 Section 302(d) of the Postal Accountability and En13 hancement Act of 2006 (39 U.S.C. 3691 note) is amended— 

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

15 the end and inserting ‘‘; and’’; 

16 (2) by redesignating paragraphs (1) through (8) 

17 as subparagraphs (A) through (H), respectively, and 

18 adjusting the margins accordingly; 

19 (3) in the matter preceding subparagraph (A), as 

20 so redesignated, by striking ‘‘shall include’’ and in21 serting the following: ‘‘shall— 

22 ‘‘(1) include’’; and 

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

24 ‘‘(2) where possible, provide for an improvement 

25 in customer access to postal services; 


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

2 Postal Service relating to the implementation of the 

3 plan on small communities and rural areas; and 

4 ‘‘(4) ensure that— 

5 ‘‘(A) small communities and rural areas 

6 continue to receive regular and effective access to 

7 retail postal services after implementation of the 

8 plan; and 

9 ‘‘(B) the Postal Service solicits community 

10 input in accordance with applicable provisions 

11 of Federal law.’’. 

12 SEC. 203. AREA AND DISTRICT OFFICE STRUCTURE. 

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

14 date of enactment of this Act, the Postal Service shall sub15 mit to the Committee on Homeland Security and Govern16 mental Affairs of the Senate and the Committee on Over17 sight and Governmental Reform of the House of Representa18 tives— 

19 (1) a comprehensive strategic plan to govern de20 cisions relating to area and district office structure 

21 that considers efficiency, costs, redundancies, mail 

22 volume, technological advancements, operational con23 siderations, and other issues that may be relevant to 

24 establishing an effective area and district office struc25 ture; and 


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

2 provides for consolidation of area and district offices 

3 wherever the Postal Service determines a consolida4 tion would— 

5 (A) be cost effective; and 

6 (B) not substantially and adversely affect 

7 the operations of the Postal Service. 

8 (b) CONSOLIDATION.—Beginning not later than 1 year 

9 after the date of enactment of this Act, the Postal Service 

10 shall, consistent with the plans required under and the cri11 teria described in subsection (a)— 

12 (1) consolidate district offices that are located 

13 within 50 miles of each other; 

14 (2) consolidate area and district offices that have 

15 less than the mean mail volume and number of work 

16 hours for all area and district offices; and 

17 (3) relocate area offices to headquarters. 

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

19 plans required under subsection (a) not less frequently than 

20 once every 5 years. 

21 SEC. 204. POST OFFICES; RETAIL SERVICE STANDARDS. 

22 (a) CLOSING POST OFFICES.—Section 404 of title 39, 

23 United States Code, is amended— 


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1 (1) by striking ‘‘(d)(1)’’ and all that follows 

2 through ‘‘present their views.’’ and inserting the fol3 lowing: 

4 ‘‘(d)(1) The Postal Service, prior to making a deter5 mination under subsection (a)(3) of this section as to the 

6 necessity for the closing or consolidation of any post office, 

7 shall— 

8 ‘‘(A) consider whether— 

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

10 post office and another post office located within 

11 a reasonable distance; 

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

13 post office— 

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

15 day that the post office operates; or 

16 ‘‘(II) to continue operating the post of17 fice for the same number of hours a day; 

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

19 or less than full, retail services in the community 

20 served by the post office; or 

21 ‘‘(iv) to provide postal services to the com22 munity served by the post office through a rural 

23 carrier; 

24 ‘‘(B) provide postal customers served by the post 

25 office an opportunity to participate in a nonbinding 


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1 survey conducted by mail on a preference for an op2 tion described in subparagraph (A); and 

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

4 consolidate the post office, provide adequate notice of 

5 its intention to close or consolidate such post office at 

6 least 60 days prior to the proposed date of such clos7 ing or consolidation to persons served by such post of8 fice to ensure that such persons will have an oppor9 tunity to present their views.’’; and 

10 (2) in subsection (d)(5), in the first sentence— 

11 (A) by inserting ‘‘, station, or branch’’ after 

12 ‘‘post office’’; 

13 (B) by inserting ‘‘, station, or branch’’ after 

14 ‘‘such office’’; and 

15 (C) by striking ‘‘under paragraph (3)’’. 

16 (b) RETAIL SERVICE STANDARDS.— 

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

18 ‘‘retail postal service’’ means service that allows a 

19 postal customer to— 

20 (A) purchase postage; 

21 (B) enter packages into the mail; and 

22 (C) procure other services offered by the 

23 Postal Service. 

24 (2) ESTABLISHMENT.—Not later than 6 months 

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


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1 Service shall exercise its authority under section 3691 

2 of title 39, United States Code, to establish service 

3 standards for market-dominant products in order to 

4 guarantee customers of the Postal Service regular and 

5 effective access to retail postal services nationwide 

6 (including in territories and possessions of the United 

7 States) on a reasonable basis. 

8 (3) CONTENTS.—The service standards estab9 lished under paragraph (2) shall— 

10 (A) be consistent with— 

11 (i) the obligations of the Postal Service 

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

13 States Code; and 

14 (ii) the contents of the plan developed 

15 under section 302 of the Postal Account16 ability and Enhancement Act of 2006 (39 

17 U.S.C. 3691 note), as amended by section 

18 202 of this Act; and 

19 (B) take into account factors including— 

20 (i) geography, including the establish21 ment of standards for the proximity of re22 tail postal services to postal customers, in23 cluding a consideration of the reasonable 

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1 pect to travel to access a postal retail loca2 tion; 

3 (ii) population, including population 

4 density, demographic factors such as the age 

5 and disability status of individuals in the 

6 area to be served by a location providing 

7 postal retail services, and other factors that 

8 may impact the ability of postal customers, 

9 including businesses, to travel to a postal 

10 retail location; 

11 (iii) the feasibility of offering retail ac12 cess to postal services in addition to post of13 fices, as described in section 302(d) of the 

14 Postal Accountability and Enhancement Act 

15 of 2006 (39 U.S.C. 3691 note); 

16 (iv) the requirement that the Postal 

17 Service serve remote areas and communities 

18 with transportation challenges, including 

19 communities in which the effects of inclem20 ent weather or other natural conditions 

21 might obstruct or otherwise impede access to 

22 retail postal services; and 

23 (v) the ability of postal customers to 

24 access retail postal services in areas that 

25 were served by a post office that was closed 


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1 or consolidated during the 1 year period 

2 ending on the date of enactment of this Act. 

3 (c) PROHIBITION ON CLOSING POST OFFICES.—Not4 withstanding section 404(d) of title 39, United States Code, 

5 during the period beginning on the date of enactment of 

6 this Act and ending on the date on which the Postal Service 

7 establishes the service standards under subsection (b), the 

8 Postal Service may not close a post office, except as required 

9 for the immediate protection of health and safety. 

10 SEC. 205. CONVERSION OF DOOR DELIVERY POINTS. 

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

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

13 end the following: 

14 ‘‘§ 3692. Conversion of door delivery points 

15 ‘‘(a) DEFINITIONS.—In this section, the following defi16 nitions shall apply: 

17 ‘‘(1) CENTRALIZED DELIVERY POINT.—The term 

18 ‘centralized delivery point’ means a group or cluster 

19 of mail receptacles at 1 delivery point that is within 

20 reasonable proximity of the street address associated 

21 with the delivery point. 

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

23 ‘curbline delivery point’ means a delivery point that 

24 is— 


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1 ‘‘(A) adjacent to the street address associ2 ated with the delivery point; and 

3 ‘‘(B) accessible by vehicle on a street that is 

4 not a private driveway. 

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

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

7 the structure at a street address. 

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

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

10 sidewalk adjacent to the street address associated with 

11 the delivery point. 

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

13 (c), and in accordance with the profitability plan required 

14 under section 401 and standards established by the Postal 

15 Service, the Postal Service is authorized to, to the maximum 

16 extent feasible, convert door delivery points to— 

17 ‘‘(1) curbline delivery points; 

18 ‘‘(2) sidewalk delivery points; or 

19 ‘‘(3) centralized delivery points. 

20 ‘‘(c) EXCEPTIONS.— 

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

22 Service may allow for the continuation of door deliv23 ery due to— 

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


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

2 snow removal efforts could obstruct access to 

3 mailboxes near a road; 

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

5 preclude efficient use of curbline delivery points; 

6 ‘‘(D) other exceptional circumstances, as de7 termined in accordance with regulations issued 

8 by the Postal Service; or 

9 ‘‘(E) other circumstances in which the Post10 al Service determines that alternatives to door 

11 delivery would not be practical or cost effective. 

12 ‘‘(2) NEW DOOR DELIVERY POINTS.—The Postal 

13 Service may provide door delivery to a new delivery 

14 point in a delivery area that received door delivery 

15 on the day before the date of enactment of this section, 

16 if the delivery point is established before the delivery 

17 area is converted from door delivery under subsection 

18 (b). 

19 ‘‘(d) SOLICITATION OF COMMENTS.—The Postal Serv20 ice shall establish procedures to solicit, consider, and re21 spond to input from individuals affected by a conversion 

22 under this section. 

23 ‘‘(e) REVIEW.—Subchapter V of this chapter shall not 

24 apply with respect to any action taken by the Postal Service 

25 under this section. 


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

2 of each fiscal year through fiscal year 2015, the Postal Serv3 ice shall submit to Congress and the Inspector General of 

4 the Postal Service a report on the implementation of this 

5 section during the preceding fiscal year that— 

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

7 points— 

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

9 year preceding the preceding fiscal year; 

10 ‘‘(B) that existed at the end of the preceding 

11 fiscal year; 

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

13 converted to— 

14 ‘‘(i) curbline delivery points or side15 walk delivery points; 

16 ‘‘(ii) centralized delivery points; and 

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

18 and 

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

20 under subsection (c)(1); 

21 ‘‘(2) estimates any cost savings, revenue loss, or 

22 decline in the value of mail resulting from the conver23 sions from door delivery that occurred during the pre24 ceding fiscal year; 


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1 ‘‘(3) describes the progress of the Postal Service 

2 toward achieving the conversions authorized under 

3 subsection (b); and 

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

5 Postal Service considers appropriate.’’. 

6 (b) CLERICAL AMENDMENT.—The table of sections for 

7 subchapter VII of chapter 36 of title 39, United States Code, 

8 is amended by adding at the end the following: 

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

9 SEC. 206. LIMITATIONS ON CHANGES TO MAIL DELIVERY 

10 SCHEDULE. 

11 (a) LIMITATION ON CHANGE IN SCHEDULE.—Notwith12 standing any other provision of law— 

13 (1) the Postal Service may not establish a gen14 eral, nationwide delivery schedule of 5 or fewer days 

15 per week to street addresses under the authority of the 

16 Postal Service under title 39, United States Code, 

17 earlier than the date that is 24 months after the date 

18 of enactment of this Act; and 

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

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

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

22 delivery schedule to street addresses under the author23 ity of the Postal Service under section 3691 of title 

24 39, United States Code, only in accordance with the 

25 requirements and limitations under this section. 


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1 (b) PRECONDITIONS.—If the Postal Service intends to 

2 establish a change in delivery schedule under subsection 

3 (a)(2), the Postal Service shall— 

4 (1) identify customers and communities for 

5 whom the change may have a disproportionate, nega6 tive impact, including the customers identified as 

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

8 Elimination of Saturday Delivery issued by the Com9 mission on March 24, 2011; 

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

11 measures to ameliorate any disproportionate, negative 

12 impact the change would have on customers and com13 munities identified under paragraph (1), including, 

14 where appropriate, providing or expanding access to 

15 mailboxes for periodical mailers on days on which the 

16 Postal Service does not provide delivery; 

17 (3) implement measures to increase revenue and 

18 reduce costs, including the measures authorized under 

19 the amendments made by sections 101, 102, 103, 205, 

20 and 209 of this Act; 

21 (4) evaluate whether any increase in revenue or 

22 reduction in costs resulting from the measures imple23 mented under paragraph (3) are sufficient to allow 

24 the Postal Service, without implementing a change in 

25 delivery schedule under subsection (a), to— 


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1 (A) become profitable by fiscal year 2015; 

2 and 

3 (B) achieve long-term financial solvency; 

4 and 

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

6 enactment of this Act and not later than 9 months be7 fore the effective date proposed by the Postal Service 

8 for the change, submit a report on the steps the Postal 

9 Service has taken to carry out this subsection to— 

10 (A) the Committee on Homeland Security 

11 and Governmental Affairs of the Senate and the 

12 Committee on Oversight and Government Reform 

13 of the House of Representatives; 

14 (B) the Comptroller General of the United 

15 States; and 

16 (C) the Commission. 

17 (c) REVIEW.— 

18 (1) GOVERNMENT ACCOUNTABILITY OFFICE.—Not 

19 later than 3 months after the date on which the Postal 

20 Service submits a report under subsection (b)(5), the 

21 Comptroller General shall submit to the Commission 

22 and to the Committee on Homeland Security and 

23 Governmental Affairs of the Senate and the Com24 mittee on Oversight and Government Reform of the 


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1 House of Representatives a report that contains find2 ings relating to each of the following: 

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

5 into consideration the statutory authority of and 

6 limitations on the Postal Service. 

7 (B) The accuracy of any statement by the 

8 Postal Service that the measures implemented 

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

10 or reduced costs, and the accuracy of any projec11 tion by the Postal Service relating to increased 

12 revenue or reduced costs resulting from the meas13 ures implemented under subsection (b)(3). 

14 (C) The adequacy and methodological 

15 soundness of any evaluation conducted by the 

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

17 the Postal Service to assert the necessity of a 

18 change in delivery schedule under subsection 

19 (a)(2). 

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

21 measures implemented by the Postal Service to 

22 increase revenues and reduce costs, projections of 

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1 tion 401, a change in delivery schedule is nec2 essary to allow the Postal Service to— 

3 (i) become profitable by fiscal year 

4 2015; and 

5 (ii) achieve long-term financial sol6 vency. 

7 (2) POSTAL REGULATORY COMMISSION.— 

8 (A) REQUEST.—Not later than 6 months be9 fore the proposed effective date of a change in de10 livery schedule under subsection (a), the Postal 

11 Service shall submit to the Commission a request 

12 for an advisory opinion relating to the change. 

13 (B) ADVISORY OPINION.— 

14 (i) IN GENERAL.—The Commission 

15 shall— 

16 (I) issue an advisory opinion with 

17 respect to a request under subpara18 graph (A), in accordance with the time 

19 limits for the issuance of advisory 

20 opinions under section 3661(b)(2) of 

21 title 39, United States Code, as amend22 ed by this Act; and 

23 (II) submit the advisory opinion 

24 to the Committee on Homeland Secu25 rity and Governmental Affairs of the 


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1 Senate and the Committee on Over2 sight and Government Reform of the 

3 House of Representatives. 

4 (ii) REQUIRED DETERMINATIONS.—An 

5 advisory opinion under clause (i) shall de6 termine— 

7 (I) whether the measures devel8 oped under subsection (b)(2) amelio9 rate any disproportionate, negative 

10 impact that a change in schedule may 

11 have on customers and communities 

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

13 (II) based on the report submitted 

14 by the Comptroller General under 

15 paragraph (1)— 

16 (aa) whether the Postal Serv17 ice has implemented measures to 

18 reduce operating losses as required 

19 under subsection (b)(3); 

20 (bb) whether the implementa21 tion of the measures described in 

22 item (aa) has increased revenues 

23 or reduced costs, or is projected to 

24 further increase revenues or re25 duce costs in the future; and 


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1 (cc) whether a change in 

2 schedule under subsection (a)(2) is 

3 necessary to allow the Postal 

4 Service to— 

5 (AA) become profitable 

6 by fiscal year 2015; and 

7 (BB) achieve long-term 

8 financial solvency. 

9 (3) PROHIBITION ON IMPLEMENTATION OF

10 CHANGE IN SCHEDULE.—The Postal Service may not 

11 implement a change in delivery schedule under sub12 section (a)(2)— 

13 (A) before the date on which the Comptroller 

14 General submits the report required under para15 graph (1); and 

16 (B) unless the Commission determines 

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

18 Comptroller General has concluded that the 

19 change is necessary to allow the Postal Service to 

20 become profitable by fiscal year 2015 and to 

21 achieve long-term financial solvency, without re22 gard to whether the Commission determines that 

23 the change is advisable. 

24 (d) ADDITIONAL LIMITATIONS.— 


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1 (1) RULES OF CONSTRUCTION.—Nothing in this 

2 subsection shall be construed to— 

3 (A) authorize the reduction, or require an 

4 increase, in delivery frequency for any route for 

5 which the Postal Service provided delivery on 

6 fewer than 6 days per week on the date of enact7 ment of this Act; 

8 (B) authorize any change in— 

9 (i) the days and times that postal re10 tail service or any mail acceptance is avail11 able at postal retail facilities or processing 

12 facilities; or 

13 (ii) the locations at which postal retail 

14 service or mail acceptance occurs at postal 

15 retail facilities or processing facilities; 

16 (C) authorize any change in the frequency 

17 of delivery to a post office box; 

18 (D) prohibit the collection or delivery of a 

19 competitive mail product on a weekend, a recog20 nized Federal holiday, or any other specific day 

21 of the week; or 

22 (E) prohibit the Postal Service from exer23 cising its authority to make changes to proc24 essing or retail networks. 


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1 (2) PROHIBITION ON CONSECUTIVE DAYS WITH2 OUT MAIL DELIVERY.—The Postal Service shall ensure 

3 that, under any change in schedule under subsection 

4 (a)(2), at no time shall there be more than 2 consecu5 tive days without mail delivery to street addresses, in6 cluding recognized Federal holidays. 

7 SEC. 207. TIME LIMITS FOR CONSIDERATION OF SERVICE 

8 CHANGES. 

9 Section 3661 of title 39, United States Code, is amend10 ed by striking subsections (b) and (c) and inserting the fol11 lowing: 

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

13 PRODUCTS.— 

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

15 Service determines that there should be a change in 

16 the nature of postal services relating to market-domi17 nant products that will generally affect service on a 

18 nationwide or substantially nationwide basis, the 

19 Postal Service shall submit a proposal to the Postal 

20 Regulatory Commission requesting an advisory opin21 ion on the change. 

22 ‘‘(2) ADVISORY OPINION.—Upon receipt of a pro23 posal under paragraph (1), the Postal Regulatory 

24 Commission shall— 


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1 ‘‘(A) provide an opportunity for public 

2 comment on the proposal; and 

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

4 than— 

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

6 the Postal Regulatory Commission receives 

7 the proposal; or 

8 ‘‘(ii) a date that the Postal Regulatory 

9 Commission and the Postal Service may, 

10 not later than 1 week after the date on 

11 which the Postal Regulatory Commission 

12 receives the proposal, determine jointly. 

13 ‘‘(3) RESPONSE TO OPINION.—The Postal Service 

14 shall submit to the President and to Congress a re15 sponse to an advisory opinion issued under para16 graph (2) that includes— 

17 ‘‘(A) a statement of whether the Postal Serv18 ice plans to modify the proposal to address any 

19 concerns or implement any recommendations 

20 made by the Commission; and 

21 ‘‘(B) for any concern that the Postal Service 

22 determines not to address and any recommenda23 tion that the Postal Service determines not to 

24 implement, the reasons for the determination. 


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1 ‘‘(4) ACTION ON PROPOSAL.—The Postal Service 

2 may take action regarding a proposal submitted 

3 under paragraph (1)— 

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

5 after the date on which the Postal Service sub6 mits the response required under paragraph (3); 

7 ‘‘(B) on or after a date that the Postal Reg8 ulatory Commission and the Postal Service may, 

9 not later than 1 week after the date on which the 

10 Postal Regulatory Commission receives a pro11 posal under paragraph (2), determine jointly; or 

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

13 (2)(B), if— 

14 ‘‘(i) the Postal Regulatory Commission 

15 fails to issue an advisory opinion on or be16 fore the date described in paragraph (2)(B); 

17 and 

18 ‘‘(ii) the action is not otherwise pro19 hibited under Federal law. 

20 ‘‘(5) MODIFICATION OF TIMELINE.—At any time, 

21 the Postal Service and the Postal Regulatory Commis22 sion may jointly redetermine a date determined under 

23 paragraph (2)(B)(ii) or (4)(B).’’. 


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1 SEC. 208. PUBLIC PROCEDURES FOR SIGNIFICANT 

2 CHANGES TO MAILING SPECIFICATIONS. 

3 (a) NOTICE AND OPPORTUNITY FOR COMMENT RE4 QUIRED.—Effective on the date on which the Postal Service 

5 issues a final rule under subsection (c), before making a 

6 change to mailing specifications that could pose a signifi7 cant burden to the customers of the Postal Service and that 

8 is not reviewed by the Commission, the Postal Service 

9 shall— 

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

11 specification in the Federal Register; 

12 (2) provide an opportunity for the submission of 

13 written comments concerning the proposed change for 

14 a period of not less than 30 days; 

15 (3) after considering any comments submitted 

16 under paragraph (2) and making any modifications 

17 to the proposed change that the Postal Service deter18 mines are necessary, publish— 

19 (A) the final change to the specification in 

20 the Federal Register; 

21 (B) responses to any comments submitted 

22 under paragraph (2); and 

23 (C) an analysis of the financial impact that 

24 the proposed change would have on— 

25 (i) the Postal Service; and 


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1 (ii) the customers of the Postal Service 

2 that would be affected by the proposed 

3 change; and 

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

5 mailing specifications that is not earlier than 30 days 

6 after the date on which the Postal Service publishes 

7 the final change under paragraph (3). 

8 (b) EXCEPTION FOR GOOD CAUSE.—If the Postal Serv9 ice determines that there is an urgent and compelling need 

10 for a change to a mailing specification described in sub11 section (a) in order to avoid demonstrable harm to the oper12 ations of the Postal Service or to the public interest, the 

13 Postal Service may— 

14 (1) change the mailing specifications by— 

15 (A) issuing an interim final rule that— 

16 (i) includes a finding by the Postal 

17 Service that there is good cause for the in18 terim final rule; 

19 (ii) provides an opportunity for the 

20 submission of written comments on the in21 terim final rule for a period of not less than 

22 30 days; and 

23 (iii) establishes an effective date for the 

24 interim final rule that is not earlier than 


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1 30 days after the date on which the interim 

2 final rule is issued; and 

3 (B) publishing in the Federal Register a re4 sponse to any comments submitted under sub5 paragraph (A)(ii); and 

6 (2) waive the requirement under paragraph 

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

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

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

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

11 shall issue rules governing the provision of notice and 

12 opportunity for comment for changes in mailing spec13 ifications under subsection (a). 

14 (2) RULES.—In issuing the rules required under 

15 paragraph (1), the Postal Service shall— 

16 (A) publish a notice of proposed rulemaking 

17 in the Federal Register that includes proposed 

18 definitions of the terms ‘‘mailing specifications’’ 

19 and ‘‘significant burden’’; 

20 (B) provide an opportunity for the submis21 sion of written comments concerning the pro22 posed change for a period of not less than 30 

23 days; and 

24 (C) publish— 


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1 (i) the rule in final form in the Fed2 eral Register; and 

3 (ii) responses to the comments sub4 mitted under subparagraph (B). 

5 SEC. 209. NONPOSTAL PRODUCTS AND SERVICES. 

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

7 States Code, is amended— 

8 (1) in subsection (a)— 

9 (A) by redesignating paragraphs (6) 

10 through (8) as paragraphs (7) through (9), re11 spectively; and 

12 (B) by inserting after paragraph (5) the fol13 lowing: 

14 ‘‘(6) after the date of enactment of the 21st Cen15 tury Postal Service Act of 2012, and except as pro16 vided in subsection (e), to provide other services that 

17 are not postal services, after the Postal Regulatory 

18 Commission— 

19 ‘‘(A) makes a determination that the provi20 sion of such services— 

21 ‘‘(i) uses the processing, transpor22 tation, delivery, retail network, or tech23 nology of the Postal Service; 


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1 ‘‘(ii) is consistent with the public in2 terest and a demonstrated or potential pub3 lic demand for— 

4 ‘‘(I) the Postal Service to provide 

5 the services instead of another entity 

6 providing the services; or 

7 ‘‘(II) the Postal Service to provide 

8 the services in addition to another en9 tity providing the services; 

10 ‘‘(iii) would not create unfair competi11 tion with the private sector; and 

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

13 net financial position of the Postal Service, 

14 based on a market analysis provided to the 

15 Postal Regulatory Commission by the Post16 al Service; and 

17 ‘‘(B) for services that the Postal Regulatory 

18 Commission determines meet the criteria under 

19 subparagraph (A), classifies each such service as 

20 a market-dominant product, competitive product, 

21 or experimental product, as required under chap22 ter 36 of title 39, United States Code;’’; and 

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

24 and all that follows through ‘‘except that the’’ and in25 serting ‘‘The’’. 


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1 (b) MARKET ANALYSIS.—During the 5-year period be2 ginning on the date of enactment of this Act, the Postal 

3 Service shall submit a copy of any market analysis pro4 vided to the Commission under section 404(a)(6)(A)(iv) of 

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

6 to the Committee on Homeland Security and Governmental 

7 Affairs of the Senate and the Committee on Oversight and 

8 Government Reform of the House of Representatives. 

9 TITLE III—FEDERAL EMPLOY10 EES’ COMPENSATION ACT 

11 SEC. 301. SHORT TITLE; REFERENCES. 

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

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

14 (b) REFERENCES.—Except as otherwise expressly pro15 vided, whenever in this title an amendment or repeal is ex16 pressed in terms of an amendment to, or a repeal of, a sec17 tion or other provision, the reference shall be considered to 

18 be made to a section or other provision of title 5, United 

19 States Code. 

20 SEC. 302. FEDERAL WORKERS COMPENSATION REFORMS 

21 FOR RETIREMENT-AGE EMPLOYEES. 

22 (a) CONVERSION OF ENTITLEMENT AT RETIREMENT

23 AGE.— 

24 (1) DEFINITIONS.—Section 8101 is amended 


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

2 at the end; 

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

4 at the end; 

5 (C) in paragraph (20), by striking the pe6 riod at the end and inserting a semicolon; and 

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

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

9 that term under section 216(l)(1) of the Social Secu10 rity Act (42 U.S.C. 416(l)(1)); 

11 ‘‘(22) ‘covered claim for total disability’ means a 

12 claim for a period of total disability that commenced 

13 before the date of enactment of the Workers’ Com14 pensation Reform Act of 2012; 

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

16 a claim for a period of partial disability that com17 menced before the date of enactment of the Workers’ 

18 Compensation Reform Act of 2012; and 

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

20 condition’ means an individual— 

21 ‘‘(A) who— 

22 ‘‘(i) is eligible to receive continuous 

23 periodic compensation for total disability 

24 under section 8105 on the date of enactment 


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1 of the Workers’ Compensation Reform Act of 

2 2012; and 

3 ‘‘(ii) meets the criteria under section 

4 8105(c); 

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

6 Workers’ Compensation Reform Act of 2012— 

7 ‘‘(i) is eligible to receive continuous 

8 periodic compensation for total disability 

9 under section 8105; and 

10 ‘‘(ii) has sustained a currently irre11 versible severe mental or physical disability 

12 for which the Secretary of Labor has au13 thorized, for at least the 1-year period end14 ing on the date of enactment of the Workers’ 

15 Compensation Reform Act of 2012, constant 

16 in-home care or custodial care, such as 

17 placement in a nursing home; or 

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

19 periodic compensation for total disability under 

20 section 8105— 

21 ‘‘(i) for not less than the 3-year period 

22 ending on the date of enactment of the 

23 Workers’ Compensation Reform Act of 2012; 

24 or 


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1 ‘‘(ii) if the individual became eligible 

2 to receive continuous periodic compensation 

3 for total disability under section 8105 dur4 ing the period beginning on the date that is 

5 3 years before the date of enactment of the 

6 Workers’ Compensation Reform Act of 2012 

7 and ending on such date of enactment, for 

8 not less than the 3-year period beginning on 

9 the date on which the individual became eli10 gible.’’. 

11 (2) TOTAL DISABILITY.—Section 8105 is amend12 ed— 

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

14 inserting ‘‘IN GENERAL.—Subject to subsection 

15 (b), if’’; 

16 (B) by redesignating subsection (b) as sub17 section (c); and 

18 (C) by inserting after subsection (a) the fol19 lowing: 

20 ‘‘(b) CONVERSION OF ENTITLEMENT AT RETIREMENT

21 AGE.— 

22 ‘‘(1) IN GENERAL.—Except as provided in para23 graph (2), the basic compensation for total disability 

24 for an employee who has attained retirement age shall 

25 be 50 percent of the monthly pay of the employee. 


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1 ‘‘(2) EXCEPTIONS.— 

2 ‘‘(A) COVERED RECIPIENTS WHO ARE RE3 TIREMENT AGE OR HAVE AN EXEMPT DISABILITY

4 CONDITION.—Paragraph (1) shall not apply to a 

5 covered claim for total disability by an employee 

6 if the employee— 

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

8 Workers’ Compensation Reform Act of 2012, 

9 has attained retirement age; or 

10 ‘‘(ii) is an individual who has an ex11 empt disability condition. 

12 ‘‘(B) TRANSITION PERIOD FOR CERTAIN EM13 PLOYEES.—For a covered claim for total dis14 ability by an employee who is not an employee 

15 described in subparagraph (A), the employee 

16 shall receive the basic compensation for total dis17 ability provided under subsection (a) until the 

18 later of— 

19 ‘‘(i) the date on which the employee at20 tains retirement age; and 

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

22 date of enactment of the Workers’ Com23 pensation Reform Act of 2012.’’. 

24 (3) PARTIAL DISABILITY.—Section 8106 is 

25 amended— 


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

2 inserting ‘‘IN GENERAL.—Subject to subsection 

3 (b), if’’; 

4 (B) by redesignating subsections (b) and (c) 

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

6 (C) by inserting after subsection (a) the fol7 lowing: 

8 ‘‘(b) CONVERSION OF ENTITLEMENT AT RETIREMENT

9 AGE.— 

10 ‘‘(1) IN GENERAL.—Except as provided in para11 graph (2), the basic compensation for partial dis12 ability for an employee who has attained retirement 

13 age shall be 50 percent of the difference between the 

14 monthly pay of the employee and the monthly wage15 earning capacity of the employee after the beginning 

16 of the partial disability. 

17 ‘‘(2) EXCEPTIONS.— 

18 ‘‘(A) COVERED RECIPIENTS WHO ARE RE19 TIREMENT AGE.—Paragraph (1) shall not apply 

20 to a covered claim for partial disability by an 

21 employee if, on the date of enactment of the 

22 Workers’ Compensation Reform Act of 2012, the 

23 employee has attained retirement age. 

24 ‘‘(B) TRANSITION PERIOD FOR CERTAIN EM25 PLOYEES.—For a covered claim for partial disVerDate Mar 15 2010 22:34 Jan 26, 2012 Jkt 019200 PO 00000 Frm 00160 Fmt 6652 Sfmt 6203 E:\BILLS\S1789.RS S1789

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1 ability by an employee who is not an employee 

2 described in subparagraph (A), the employee 

3 shall receive basic compensation for partial dis4 ability in accordance with subsection (a) until 

5 the later of— 

6 ‘‘(i) the date on which the employee at7 tains retirement age; and 

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

9 date of enactment of the Workers’ Com10 pensation Reform Act of 2012.’’. 

11 SEC. 303. AUGMENTED COMPENSATION FOR DEPENDENTS. 

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

13 (1) by redesignating subsection (b) as subsection 

14 (c); and 

15 (2) by inserting after subsection (a) the fol16 lowing: 

17 ‘‘(b) TERMINATION OF AUGMENTED COMPENSATION.— 

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

19 augmented compensation for dependants under sub20 section (c) shall not be provided. 

21 ‘‘(2) EXCEPTIONS.— 

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

23 claim for total disability by an employee— 

24 ‘‘(i) the employee shall receive aug25 mented compensation under subsection (c) if 


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1 the employee is an individual who has an 

2 exempt disability condition; and 

3 ‘‘(ii) the employee shall receive aug4 mented compensation under subsection (c) 

5 until the date that is 3 years after the date 

6 of enactment of the Workers’ Compensation 

7 Reform Act of 2012 if the employee is not 

8 an employee described in clause (i). 

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

10 claim for partial disability by an employee, the 

11 employee shall receive augmented compensation 

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

13 years after the date of enactment of the Workers’ 

14 Compensation Reform Act of 2012. 

15 ‘‘(C) PERMANENT DISABILITY COM16 PENSATED BY A SCHEDULE.—For a claim for a 

17 permanent disability described in section 

18 8107(a) by an employee that commenced before 

19 the date of enactment of the Workers’ Compensa20 tion Reform Act of 2012, the employee shall re21 ceive augmented compensation under subsection 

22 (c).’’. 

23 (b) MAXIMUM AND MINIMUM MONTHLY PAYMENTS.— 

24 Section 8112 is amended— 

25 (1) in subsection (a)— 


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

2 and’’ before ‘‘section 8138’’; 

3 (B) by striking ‘‘including augmented com4 pensation under section 8110 of this title but’’; 

5 and 

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

appears and inserting ‘‘662 7 ⁄3 percent’’; 

8 (2) by redesignating subsection (b) as subsection 

9 (c); 

10 (3) by inserting after subsection (a) the fol11 lowing: 

12 ‘‘(b) EXCEPTIONS.— 

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

14 covered claim for total disability by an employee, if 

15 the employee is an individual who has an exempt dis16 ability condition— 

17 ‘‘(A) the monthly rate of compensation for 

18 disability that is subject to the maximum and 

19 minimum monthly amounts under subsection (a) 

20 shall include any augmented compensation 

21 under section 8110; and 

22 ‘‘(B) subsection (a) shall be applied by substituting ‘75 percent’ for ‘662 23 ⁄3 percent’ each 

24 place it appears. 


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1 ‘‘(2) PARTIAL DISABILITY.—For a covered claim 

2 for partial disability by an employee, until the date 

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

4 Workers’ Compensation Reform Act of 2012— 

5 ‘‘(A) the monthly rate of compensation for 

6 disability that is subject to the maximum and 

7 minimum monthly amounts under subsection (a) 

8 shall include any augmented compensation 

9 under section 8110; and 

10 ‘‘(B) subsection (a) shall be applied by substituting ‘75 percent’ for ‘662 11 ⁄3 percent’ each 

12 place it appears.’’; and 

13 (4) in subsection (c), as redesignated by para14 graph (2), by striking ‘‘subsection (a)’’ and inserting 

15 ‘‘subsections (a) and (b)’’. 

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

17 amended— 

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

percent’’ each place it appears and inserting ‘‘66 2 19 ⁄3

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

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

22 ‘‘(g) If the death occurred before the date of enactment 

23 of the Workers’ Compensation Reform Act of 2012, sub24 sections (a) and (e) shall be applied by substituting ‘75 percent’ for ‘662 25 ⁄3 percent’ each place it appears.’’. 


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1 (d) DEATH BENEFITS FOR CIVIL AIR PATROL VOLUN2 TEERS.—Section 8141 is amended— 

3 (1) in subsection (b)(2)(B) by striking ‘‘75 percent’’ and inserting ‘‘662 4 ⁄3 percent (except as provided 

5 in subsection (c))’’; 

6 (2) by redesignating subsection (c) as subsection 

7 (d); and 

8 (3) by inserting after subsection (b) the fol9 lowing: 

10 ‘‘(c) If the death occurred before the date of enactment 

11 of the Workers’ Compensation Reform Act of 2012, sub12 section (b)(2)(B) shall be applied by substituting ‘75 percent’ for ‘662 13 ⁄3 percent’.’’. 

14 SEC. 304. SCHEDULE COMPENSATION PAYMENTS. 

15 Section 8107 is amended— 

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

662 17 ⁄3 percent of his monthly pay’’ and inserting ‘‘at 

18 the rate specified under subsection (d)’’; and 

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

20 ‘‘(d) RATE FOR COMPENSATION.— 

21 ‘‘(1) ANNUAL SALARY.— 

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

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

shall be the rate of 662 24 ⁄3 percent of the annual 

25 salary level established under subparagraph (B), 


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1 in a lump sum equal to the present value (as 

2 calculated under subparagraph (C)) of the 

3 amount of compensation payable under the 

4 schedule. 

5 ‘‘(B) ESTABLISHMENT.— 

6 ‘‘(i) IN GENERAL.—The Secretary of 

7 Labor shall establish an annual salary for 

8 purposes of subparagraph (A) in the 

9 amount the Secretary determines will result 

10 in the aggregate cost of payments made 

11 under this section being equal to what 

12 would have been the aggregate cost of pay13 ments under this section if the amendments 

14 made by section 304(a) of the Workers’ 

15 Compensation Reform Act of 2012 had not 

16 been enacted. 

17 ‘‘(ii) COST OF LIVING ADJUSTMENT.— 

18 The annual salary established under clause 

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

20 year by the amount determined by the Sec21 retary of Labor to represent the percent 

22 change in the price index published for De23 cember of the preceding year over the price 

24 index published for the December of the year 


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1 prior to the preceding year, adjusted to the 

2 nearest one-tenth of 1 percent. 

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

4 Labor shall calculate the present value for pur5 poses of subparagraph (A) using a rate of inter6 est equal to the average market yield for out7 standing marketable obligations of the United 

8 States with a maturity of 2 years on the first 

9 business day of the month in which the com10 pensation is paid or, in the event that such mar11 ketable obligations are not being issued on such 

12 date, at an equivalent rate selected by the Sec13 retary of Labor, true discount compounded an14 nually. 

15 ‘‘(2) CERTAIN INJURIES.—For an injury that oc16 curred before the date of enactment of the Workers’ 

17 Compensation Reform Act of 2012, the rate under 

subsection (a) shall be 662 18 ⁄3 percent of the employee’s 

19 monthly pay. 

20 ‘‘(e) SIMULTANEOUS RECEIPT.— 

21 ‘‘(1) TOTAL DISABILITY.—An employee who re22 ceives compensation for total disability under section 

23 8105 may only receive the lump sum of schedule com24 pensation under this section in addition to and siVerDate Mar 15 2010 22:34 Jan 26, 2012 Jkt 019200 PO 00000 Frm 00167 Fmt 6652 Sfmt 6203 E:\BILLS\S1789.RS S1789

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1 multaneously with the benefits for total disability 

2 after the earlier of— 

3 ‘‘(A) the date on which the basic compensa4 tion for total disability of the employee becomes 

5 50 percent of the monthly pay of the employee 

6 under section 8105(b); or 

7 ‘‘(B) the date on which augmented com8 pensation of the employee terminates under sec9 tion 8110(b)(2)(A)(ii), if the employee receives 

10 such compensation. 

11 ‘‘(2) PARTIAL DISABILITY.—An employee who re12 ceives benefits for partial disability under section 

13 8106 may only receive the lump sum of schedule com14 pensation under this section in addition to and si15 multaneously with the benefits for partial disability 

16 after the earlier of— 

17 ‘‘(A) the date on which the basic compensa18 tion for partial disability of the employee be19 comes 50 percent of the difference between the 

20 monthly pay of the employee and the monthly 

21 wage-earning capacity of the employee after the 

22 beginning of the partial disability under section 

23 8106(b); or 

24 ‘‘(B) the date on which augmented com25 pensation of the employee terminates under secVerDate Mar 15 2010 22:34 Jan 26, 2012 Jkt 019200 PO 00000 Frm 00168 Fmt 6652 Sfmt 6203 E:\BILLS\S1789.RS S1789

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1 tion 8110(b)(2)(B), if the employee receives such 

2 compensation.’’. 

3 SEC. 305. VOCATIONAL REHABILITATION. 

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

5 (1) in subsection (a)— 

6 (A) by striking ‘‘(a) The Secretary of Labor 

7 may’’ and all that follows through ‘‘undergo vo8 cational rehabilitation.’’ and inserting the fol9 lowing: 

10 ‘‘(a) IN GENERAL.— 

11 ‘‘(1) DIRECTION.—Except as provided in para12 graph (2), not earlier than the date that is 6 months 

13 after the date on which an individual eligible for 

14 wage-loss compensation under section 8105 or 8106 is 

15 injured, or by such other date as the Secretary of 

16 Labor determines it would be reasonable under the 

17 circumstances for the individual to begin vocational 

18 rehabilitation, and if vocational rehabilitation may 

19 enable the individual to become capable of more gain20 ful employment, the Secretary of Labor shall direct 

21 the individual to participate in developing a com22 prehensive return to work plan and to undergo voca23 tional rehabilitation at a location a reasonable dis24 tance from the residence of the individual.’’; 


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

2 Education, and Welfare in carrying out the pur3 poses of chapter 4 of title 29’’ and inserting ‘‘the 

4 Secretary of Education in carrying out the pur5 poses of the Rehabilitation Act of 1973 (29 

6 U.S.C. 701 et seq.)’’; 

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

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

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

10 and 

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

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

13 not direct an individual who has attained retirement 

14 age to participate in developing a comprehensive re15 turn to work plan or to undergo vocational rehabili16 tation.’’; 

17 (2) by redesignating subsection (b) as subsection 

18 (c); 

19 (3) by inserting after subsection (a) the fol20 lowing: 

21 ‘‘(b) CONTENTS OF RETURN TO WORK PLAN.—A re22 turn to work plan developed under subsection (a)— 

23 ‘‘(1) shall— 


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1 ‘‘(A) set forth specific measures designed to 

2 increase the wage-earning capacity of an indi3 vidual; 

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

5 and education of the individual and the train6 ing, educational, and employment opportunities 

7 reasonably available to the individual; and 

8 ‘‘(C) provide that any employment under9 taken by the individual under the return to work 

10 plan be at a location a reasonable distance from 

11 the residence of the individual; 

12 ‘‘(2) may provide that the Secretary will pay out 

13 of amounts in the Employees’ Compensation Fund 

14 reasonable expenses of vocational rehabilitation 

15 (which may include tuition, books, training fees, sup16 plies, equipment, and child or dependent care) during 

17 the course of the plan; and 

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

19 years, unless the Secretary finds good cause to grant 

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

21 years.’’; 

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

23 (A) by inserting ‘‘COMPENSATION.—’’ before 

24 ‘‘Notwithstanding’’; and 


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

2 undertaken pursuant to such rehabilitation’’; 

3 and 

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

5 ‘‘(d) ASSISTED REEMPLOYMENT AGREEMENTS.— 

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

7 into an assisted reemployment agreement with an 

8 agency or instrumentality of any branch of the Fed9 eral Government or a State or local government or a 

10 private employer that employs an individual eligible 

11 for wage-loss compensation under section 8105 or 

12 8106 to enable the individual to return to productive 

13 employment. 

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

15 agreement under paragraph (1)— 

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

17 use amounts in the Employees’ Compensation 

18 Fund to reimburse an employer in an amount 

19 equal to not more than 100 percent of the com20 pensation the individual would otherwise receive 

21 under section 8105 or 8106; and 

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

23 3 years. 

24 ‘‘(e) LIST.—To facilitate the hiring of individuals eli25 gible for wage-loss compensation under section 8105 or 


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1 8106, the Secretary shall provide a list of such individuals 

2 to the Office of Personnel Management, which the Office of 

3 Personnel Management shall provide to all agencies and in4 strumentalities of the Federal Government.’’. 

5 (b) EMPLOYEES’ COMPENSATION FUND.—Section 8147 

6 is amended by adding at the end: 

7 ‘‘(d) Notwithstanding subsection (b), any benefits or 

8 other payments paid to or on behalf of an employee under 

9 this subchapter or any extension or application thereof for 

10 a recurrence of injury, consequential injury, aggravation 

11 of injury, or increase in percentage of impairment to a 

12 member for which compensation is provided under the 

13 schedule under section 8107 suffered in a permanent posi14 tion with an agency or instrumentality of the United States 

15 while the employment with the agency or instrumentality 

16 is covered under an assisted reemployment agreement en17 tered into under section 8104(d) shall not be included in 

18 total cost of benefits and other payments in the statement 

19 provided to the agency or instrumentality under subsection 

20 (b) if the injury was originally incurred in a position not 

21 covered by an assisted reemployment agreement.’’. 

22 (c) TERMINATION OF VOCATIONAL REHABILITATION

23 REQUIREMENT AFTER RETIREMENT AGE.—Section 

24 8113(b) is amended by adding at the end the following: ‘‘An 


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1 individual who has attained retirement age may not be re2 quired to undergo vocational rehabilitation.’’. 

3 (d) MANDATORY BENEFIT REDUCTION FOR NON4 COMPLIANCE.—Section 8113(b) is amended by striking 

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

6 (e) TECHNICAL AND CONFORMING AMENDMENTS.— 

7 (1) IN GENERAL.—Subchapter III of chapter 15 

8 of title 31, United States Code, is amended by adding 

9 at the end the following: 

10 ‘‘§ 1538. Authorization for assisted reemployment 

11 ‘‘Funds may be transferred from the Employees’ Com12 pensation Fund established under section 8147 of title 5 to 

13 the applicable appropriations account for an agency or in14 strumentality of any branch of the Federal Government for 

15 the purposes of reimbursing the agency or instrumentality 

16 in accordance with an assisted reemployment agreement en17 tered into under section 8104 of title 5.’’. 

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

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

20 amended by inserting after the item relating to sec21 tion 1537 the following: 

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

22 SEC. 306. REPORTING REQUIREMENTS. 

23 (a) IN GENERAL.—Chapter 81 is amended by insert24 ing after section 8106 the following: 


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1 ‘‘§ 8106a. Reporting requirements 

2 ‘‘(a) DEFINITION.—In this section, the term ‘employee 

3 receiving compensation’ means an employee who— 

4 ‘‘(1) is paid compensation under section 8105 or 

5 8106; and 

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

7 ‘‘(b) AUTHORITY.—The Secretary of Labor shall re8 quire an employee receiving compensation to report the 

9 earnings of the employee receiving compensation from em10 ployment or self-employment, by affidavit or otherwise, in 

11 the manner and at the times the Secretary specifies. 

12 ‘‘(c) CONTENTS.—An employee receiving compensation 

13 shall include in a report required under subsection (a) the 

14 value of housing, board, lodging, and other advantages 

15 which are part of the earnings of the employee receiving 

16 compensation in employment or self-employment and the 

17 value of which can be estimated. 

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

19 ‘‘(1) IN GENERAL.—An employee receiving com20 pensation who fails to make an affidavit or other re21 port required under subsection (b) or who knowingly 

22 omits or understates any part of the earnings of the 

23 employee in such an affidavit or other report shall 

24 forfeit the right to compensation with respect to any 

25 period for which the report was required. 


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1 ‘‘(2) FORFEITED COMPENSATION.—Compensation 

2 forfeited under this subsection, if already paid to the 

3 employee receiving compensation, shall be recovered 

4 by a deduction from the compensation payable to the 

5 employee or otherwise recovered under section 8129, 

6 unless recovery is waived under that section.’’. 

7 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

8 The table of sections for chapter 81 is amended by inserting 

9 after the item relating to section 8106 the following: 

‘‘8106a. Reporting requirements.’’. 

10 SEC. 307. DISABILITY MANAGEMENT REVIEW; INDE11 PENDENT MEDICAL EXAMINATIONS. 

12 Section 8123 is amended by adding at the end the fol13 lowing: 

14 ‘‘(e) DISABILITY MANAGEMENT REVIEW.— 

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

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

17 employee who is in continuous receipt of com18 pensation for total disability under section 8105 

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

20 ‘‘(B) the term ‘disability management re21 view process’ means the disability management 

22 review process established under paragraph 

23 (2)(A). 

24 ‘‘(2) ESTABLISHMENT.—The Secretary of Labor 

25 shall— 


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1 ‘‘(A) establish a disability management re2 view process for the purpose of certifying and 

3 monitoring the disability status and extent of in4 jury of each covered employee; and 

5 ‘‘(B) promulgate regulations for the admin6 istration of the disability management review 

7 process. 

8 ‘‘(3) PHYSICAL EXAMINATIONS REQUIRED.— 

9 Under the disability management review process, the 

10 Secretary of Labor shall periodically require covered 

11 employees to submit to physical examinations under 

12 subsection (a) by physicians selected by the Secretary. 

13 A physician conducting a physical examination of a 

14 covered employee shall submit to the Secretary a re15 port regarding the nature and extent of the injury to 

16 and disability of the covered employee. 

17 ‘‘(4) FREQUENCY.— 

18 ‘‘(A) IN GENERAL.—The regulations pro19 mulgated under paragraph (2)(B) shall specify 

20 the process and criteria for determining when 

21 and how frequently a physical examination 

22 should be conducted for a covered employee. 

23 ‘‘(B) MINIMUM FREQUENCY.— 

24 ‘‘(i) INITIAL.—An initial physical ex25 amination shall be conducted not more than 


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1 a brief period after the date on which a cov2 ered employee has been in continuous re3 ceipt of compensation for total disability 

4 under section 8015 for 6 months. 

5 ‘‘(ii) SUBSEQUENT EXAMINATIONS.— 

6 After the initial physical examination, 

7 physical examinations of a covered em8 ployee shall be conducted not less than once 

9 every 3 years. 

10 ‘‘(5) EMPLOYING AGENCY OR INSTRUMENTALITY

11 REQUESTS.— 

12 ‘‘(A) IN GENERAL.—The agency or instru13 mentality employing an employee who has made 

14 a claim for compensation for total disability 

15 under section 8105 may at any time submit a 

16 request for the Secretary of Labor to promptly 

17 require the employee to submit to a physical ex18 amination under this subsection. 

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

20 under subparagraph (A) shall be made on behalf 

21 of an agency or instrumentality by— 

22 ‘‘(i) the head of the agency or instru23 mentality; 

24 ‘‘(ii) the Chief Human Capital Officer 

25 of the agency or instrumentality; or 


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1 ‘‘(iii) if the agency or instrumentality 

2 does not have a Chief Human Capital Offi3 cer, an officer with responsibilities similar 

4 to those of a Chief Human Capital Officer 

5 designated by the head of the agency or in6 strumentality to make requests under this 

7 paragraph. 

8 ‘‘(C) INFORMATION.—A request under sub9 paragraph (A) shall be in writing and accom10 panied by— 

11 ‘‘(i) a certification by the officer mak12 ing the request that the officer has reviewed 

13 the relevant material in the employee’s file; 

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

15 has determined, based on the materials in 

16 the file and other information known to the 

17 officer, that requiring a physical examina18 tion of the employee under this subsection is 

19 necessary; and 

20 ‘‘(iii) copies of the materials relating 

21 to the employee that are relevant to the offi22 cer’s determination and request, unless the 

23 agency or instrumentality has a reasonable 

24 basis for not providing the materials. 


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

2 Labor receives a request under this paragraph 

3 before an employee has undergone an initial 

4 physical examination under paragraph 

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

6 the physical examination of the employee. A 

7 physical examination under this subparagraph 

8 shall satisfy the requirement under paragraph 

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

10 conducted. 

11 ‘‘(E) AFTER INITIAL EXAMINATION.— 

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

13 Labor receives a request under this para14 graph after an employee has undergone an 

15 initial physical examination under para16 graph (4)(B)(i), the Secretary shall— 

17 ‘‘(I) review the request and the in18 formation, explanation, and other ma19 terials submitted with the request; and 

20 ‘‘(II) determine whether to require 

21 the physical examination of the em22 ployee who is the subject of the request. 

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

24 determines not to grant a request described 

25 in clause (i), the Secretary shall promptly 


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1 notify the officer who made the request and 

2 provide an explanation of the reasons why 

3 the request was denied.’’. 

4 SEC. 308. WAITING PERIOD. 

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

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

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

8 period’’; 

9 (2) in subsection (a)— 

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

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

12 through ‘‘is not entitled’’ and inserting ‘‘IN GEN13 ERAL.—An employee is not entitled to continu14 ation of pay within the meaning of section 8118 

15 for the first 3 days of temporary disability or, if 

16 section 8118 does not apply, is not entitled’’; 

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

18 the end; 

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

20 (D) by redesignating paragraph (3) as 

21 paragraph (2); and 

22 (3) in subsection (b)— 

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

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


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1 Postal Service’’ the second place it appears and 

2 inserting ‘‘USE OF LEAVE.—An’’; 

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

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

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

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

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

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

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

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

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

17 (c) TECHNICAL AND CONFORMING AMENDMENTS.—The 

18 table of sections for chapter 81 is amended by striking the 

19 items relating to sections 8117 and 8118 and inserting the 

20 following: 

‘‘8117. Waiting period. 

‘‘8118. Continuation of pay.’’. 

21 SEC. 309. ELECTION OF BENEFITS. 

22 (a) IN GENERAL.—Section 8116 is amended by adding 

23 at the end the following: 

24 ‘‘(e) RETIREMENT BENEFITS.— 


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

2 compensation benefits payable under this subchapter 

3 and under chapter 83 or 84 or any other retirement 

4 system for employees of the Government, for the same 

5 period, shall elect which benefits the individual will 

6 receive. 

7 ‘‘(2) ELECTION.— 

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

9 an election under paragraph (1) in accordance 

10 with such deadlines as the Secretary of Labor 

11 shall establish, which shall be a reasonable period 

12 after the individual has received notice of a final 

13 determination that the individual is entitled to 

14 compensation benefits payable under this sub15 chapter. 

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

17 paragraph (1) shall be revocable, notwith18 standing any other provision of law, except for 

19 any period during which an individual— 

20 ‘‘(i) was qualified for benefits payable 

21 under both this subchapter and under a re22 tirement system described in paragraph (1); 

23 and 

24 ‘‘(ii) was paid benefits under the re25 tirement system after having been notified 


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1 of eligibility for benefits under this sub2 chapter. 

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

4 Labor shall provide information, and shall ensure 

5 that information is provided, to an individual de6 scribed in paragraph (1) about the benefits available 

7 to the individual under this subchapter or under 

8 chapter 83 or 84 or any other retirement system re9 ferred to in paragraph (1) the individual may elect 

10 to receive.’’. 

11 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

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

14 under chapter 81, paragraphs’’. 

15 SEC. 310. SANCTION FOR NONCOOPERATION WITH FIELD 

16 NURSES. 

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

18 by adding at the end the following: 

19 ‘‘(f) FIELD NURSES.— 

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

21 ‘field nurse’ means a registered nurse that assists the 

22 Secretary in the medical management of disability 

23 claims under this subchapter and provides claimants 

24 with assistance in coordinating medical care. 


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

2 field nurses to coordinate medical services and voca3 tional rehabilitation programs for injured employees 

4 under this subchapter. If an employee refuses to co5 operate with a field nurse or obstructs a field nurse 

6 in the performance of duties under this subchapter, 

7 the right to compensation under this subchapter shall 

8 be suspended until the refusal or obstruction stops.’’. 

9 SEC. 311. SUBROGATION OF CONTINUATION OF PAY. 

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

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

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

13 before ‘‘compensation’’; 

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

15 of pay or’’ before ‘‘compensation’’; and 

16 (3) in subsection (c)— 

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

18 before ‘‘compensation already paid’’; and 

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

20 before ‘‘compensation payable’’. 

21 (b) ADJUSTMENT AFTER RECOVERY FROM A THIRD

22 PERSON.—Section 8132 is amended— 

23 (1) in the first sentence— 

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

25 before ‘‘compensation is payable’’; 


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

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

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

4 and inserting ‘‘by the beneficiary or on behalf of 

5 the beneficiary’’; 

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

7 before ‘‘compensation paid by the United 

8 States’’; and 

9 (E) by striking ‘‘compensation payable to 

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

11 compensation payable to the beneficiary’’; 

12 (2) in the second sentence, by striking ‘‘his des13 ignee’’ and inserting ‘‘the designee of the beneficiary’’; 

14 and 

15 (3) in the fourth sentence, by striking ‘‘If com16 pensation’’ and all that follows through ‘‘payable to 

17 him by the United States’’ and inserting ‘‘If continu18 ation of pay or compensation has not been paid to the 

19 beneficiary, the money or property shall be credited 

20 against continuation of pay or compensation payable 

21 to the beneficiary by the United States’’. 

22 SEC. 312. INTEGRITY AND COMPLIANCE. 

23 (a) IN GENERAL.—Subchapter I of chapter 81 is 

24 amended by adding at the end the following: 


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1 ‘‘§ 8153. Integrity and Compliance Program 

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

3 ‘‘(1) the term ‘FECA program’ means the Fed4 eral Employees Compensation Program administered 

5 under this subchapter; 

6 ‘‘(2) the term ‘Integrity and Compliance Pro7 gram’ means the Integrity and Compliance Program 

8 established under subsection (b); 

9 ‘‘(3) the term ‘provider’ means a provider of 

10 medical or other services under the FECA program; 

11 and 

12 ‘‘(4) the term ‘Secretary’ means the Secretary of 

13 Labor. 

14 ‘‘(b) INTEGRITY AND COMPLIANCE PROGRAM.—Not 

15 later than 270 days after the date of enactment of this sec16 tion, the Secretary shall establish an Integrity and Compli17 ance Program for the purpose of preventing, identifying, 

18 and recovering improper payments (including improper 

19 payments obtained by fraud) for the FECA program, which 

20 shall include— 

21 ‘‘(1) procedures for identifying potentially im22 proper payments (including improper payments ob23 tained by fraud) before payment is made to claimants 

24 and providers, including, where appropriate, pre25 dictive analytics; 


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1 ‘‘(2) reviews after payment is made to identify 

2 potentially improper payments (including improper 

3 payments obtained by fraud) to claimants and pro4 viders; 

5 ‘‘(3) on-going screening and verification proce6 dures to ensure the continued eligibility of medical 

7 providers to provide services under the FECA pro8 gram, including licensure, Federal disbarment, and 

9 the existence of relevant criminal convictions; 

10 ‘‘(4) provision of appropriate information, edu11 cation, and training to claimants and providers on 

12 requirements to ensure the integrity of the FECA pro13 gram, including payments under the FECA program; 

14 ‘‘(5) appropriate controls and audits to ensure 

15 that providers adopt internal controls and procedures 

16 for compliance with requirements under the FECA 

17 program; 

18 ‘‘(6) procedures to ensure— 

19 ‘‘(A) initial and continuing eligibility of 

20 claimants for compensation, benefits, or services 

21 under the FECA program; and 

22 ‘‘(B) ongoing verification of databases of in23 formation relating to claimants to ensure accu24 racy and completeness; and 


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1 ‘‘(7) appropriately sharing and accessing data 

2 and information with other agencies and instrumen3 talities of the United States, including the United 

4 States Postal Service. 

5 ‘‘(c) INTERAGENCY COOPERATION ON ANTI-FRAUD EF6 FORTS.— 

7 ‘‘(1) IN GENERAL.—In administering the FECA 

8 program, including the Integrity and Compliance 

9 Program, the Secretary shall cooperate with other 

10 agencies and instrumentalities of the United States 

11 (including the United States Postal Service) and the 

12 Inspectors General of such agencies and instrumental13 ities to prevent, identify, and recover improper pay14 ments (including improper payments obtained by 

15 fraud) under the FECA program. 

16 ‘‘(2) TASK FORCE.— 

17 ‘‘(A) IN GENERAL.—There is established a 

18 task force, which shall be known as the FECA 

19 Integrity and Compliance Task Force (in this 

20 paragraph referred to as the ‘Task Force’). 

21 ‘‘(B) MEMBERSHIP.—The members of the 

22 Task Force shall be— 

23 ‘‘(i) the Secretary, who shall serve as 

24 the Chairperson of the Task Force; 


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1 ‘‘(ii) the Postmaster General, who shall 

2 serve as the Vice Chairperson of the Task 

3 Force; 

4 ‘‘(iii) the Attorney General; 

5 ‘‘(iv) the Director of the Office of Man6 agement and Budget; 

7 ‘‘(v) the Inspector General of the De8 partment of Labor; 

9 ‘‘(vi) the Inspector General of the 

10 United States Postal Service; 

11 ‘‘(vii) the Inspectors General of other 

12 appropriate agencies and instrumentalities 

13 of the United States that employ a signifi14 cant number of individuals receiving com15 pensation, benefits, or services under the 

16 FECA program, as determined by the 

17 Chairperson and Vice Chairperson of the 

18 Task Force; and 

19 ‘‘(viii) other appropriate Federal offi20 cials, as determined by the Chairperson and 

21 Vice Chairperson of the Task Force. 

22 ‘‘(C) DUTIES.—The Task Force shall— 

23 ‘‘(i) set forth, in writing, a description 

24 of the respective roles and responsibilities in 

25 preventing, identifying, recovering, and 


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1 prosecuting fraud under, and otherwise en2 suring integrity and compliance of, the 

3 FECA program of— 

4 ‘‘(I) the Secretary (including sub5 ordinate officials such as the Director 

6 of the Office of Workers’ Compensation 

7 Programs); 

8 ‘‘(II) the Inspector General of the 

9 Department of Labor; 

10 ‘‘(III) the Inspectors General of 

11 agencies and instrumentalities of the 

12 United States that employ claimants 

13 under the FECA program; 

14 ‘‘(IV) the Attorney General; and 

15 ‘‘(V) any other relevant officials; 

16 ‘‘(ii) develop procedures for sharing in17 formation of possible fraud under the FECA 

18 program or other intentional misstatements 

19 by claimants or providers under the FECA 

20 program, including procedures addressing— 

21 ‘‘(I) notification of appropriate 

22 officials of the Department of Labor of 

23 potential fraud or intentional 

24 misstatements, including provision of 

25 supporting information; 


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1 ‘‘(II) timely and appropriate re2 sponse by officials of the Department of 

3 Labor to notifications described in sub4 clause (I); 

5 ‘‘(III) the inclusion of informa6 tion and evidence relating to fraud and 

7 other intentional misstatements in 

8 criminal, civil, and administrative 

9 proceedings relating to the provision of 

10 compensation, benefits, or medical 

11 services (including payments to pro12 viders) under the FECA program; 

13 ‘‘(IV) the coordination of criminal 

14 investigations with the administration 

15 of the FECA program; and 

16 ‘‘(V) the protection of information 

17 relating to an investigation of possible 

18 fraud under the FECA program from 

19 potential disclosure, including require20 ments that enable investigative files to 

21 be appropriately separated from case 

22 management files; 

23 ‘‘(iii) not later than 1 year after the 

24 date of enactment of this section, submit to 

25 the Committee on Homeland Security and 


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1 Governmental Affairs of the Senate and the 

2 Committee on Oversight and Government 

3 Reform and the Committee on Education 

4 and the Workforce of the House of Rep5 resentatives a report that includes the de6 scription and procedures required under 

7 clauses (i) and (ii). 

8 ‘‘(d) IMPROVEMENTS TO ACCESS OF FEDERAL DATA9 BASES.— 

10 ‘‘(1) IN GENERAL.—The Secretary, the Post11 master General, the Inspector General of the United 

12 States Postal Service, and the Inspector General of 

13 the Department of Labor shall have access to and 

14 make use of the agency databases described in this 

15 subsection in order to improve compliance with the 

16 requirements under and the integrity of the FECA 

17 program. 

18 ‘‘(2) SOCIAL SECURITY EARNINGS INFORMA19 TION.— 

20 ‘‘(A) IN GENERAL.—Notwithstanding sec21 tion 552a or any other provision of Federal or 

22 State law, upon written request, the Commis23 sioner of Social Security shall make available to 

24 the Secretary, the Inspector General of the De25 partment of Labor, the Postmaster General, and 


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1 the Inspector General of the United States Postal 

2 Service the Social Security earnings information 

3 of a living or deceased employee required by the 

4 Secretary to carry out this subchapter. 

5 ‘‘(B) PROCEDURES.—The Secretary shall 

6 establish procedures for correlating the identity 

7 and status of recipients of compensation, bene8 fits, or services under this subchapter with Social 

9 Security earnings information described in sub10 paragraph (A). 

11 ‘‘(3) OFFICE OF PERSONNEL MANAGEMENT FED12 ERAL RETIREE DATABASE.—Notwithstanding section 

13 552a or any other provision of Federal or State law, 

14 upon written request, the Director of the Office of Per15 sonnel Management shall make available to the Sec16 retary, the Inspector General of the Department of 

17 Labor, the Postmaster General, and the Inspector 

18 General of the United States Postal Service the infor19 mation in the databases of Federal employees and re20 tirees maintained by the Director. 

21 ‘‘(4) DEPARTMENT OF VETERANS AFFAIRS BENE22 FICIARIES DATABASE.—Notwithstanding section 552a 

23 or any other provision of Federal or State law, upon 

24 written request, the Secretary of Veterans Affairs shall 

25 make available to the Secretary, the Inspector General 


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1 of the Department of Labor, the Postmaster General, 

2 and the Inspector General of the United States Postal 

3 Service the information in the database of disabled 

4 individuals maintained by the Secretary of Veterans 

5 Affairs. 

6 ‘‘(5) NATIONAL DIRECTORY OF NEW HIRES.— 

7 Notwithstanding section 552a, section 453(j) of the 

8 Social Security Act (42 U.S.C. 653(j)), or any other 

9 provision of Federal or State law, upon written re10 quest, the Secretary of Health and Human Services 

11 shall make available to the Secretary, the Inspector 

12 General of the Department of Labor, the Postmaster 

13 General, the Inspector General of the United States 

14 Postal Service, and the Comptroller General of the 

15 United States the information in the National Direc16 tory of New Hires. The Comptroller General may ob17 tain information from the National Directory of New 

18 Hires under this paragraph for any audit, evalua19 tion, or investigation, including any audit, evalua20 tion, or investigation relating to program integrity. 

21 ‘‘(6) PROVISION.—Information requested under 

22 this subsection shall be provided— 

23 ‘‘(A) in a timely manner; 

24 ‘‘(B) at a reasonable cost to the Secretary, 

25 the Inspector General of the Department of 


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1 Labor, the Postmaster General, the Inspector 

2 General of the United States Postal Service, or 

3 the Comptroller General of the United States; 

4 and 

5 ‘‘(C) in the manner, frequency, and form 

6 reasonably specified by the officer making the re7 quest, which, upon request, shall include elec8 tronic form. 

9 ‘‘(7) ASSESSMENT OF DATA COST-EFFECTIVE10 NESS.— 

11 ‘‘(A) IN GENERAL.—The Secretary shall 

12 consider and assess procedures for correlating the 

13 identity and status of recipients of compensa14 tion, benefits, or services under this subchapter 

15 with information relating to employees, retirees, 

16 and individuals described in paragraphs (3), (4), 

17 and (5). 

18 ‘‘(B) REPORT.—Not later than 1 year after 

19 the date of enactment of this section, the Sec20 retary shall submit to the Committee on Home21 land Security and Governmental Affairs of the 

22 Senate and the Committee on Oversight and 

23 Government Reform and the Committee on Edu24 cation and the Workforce of the House of Rep25 resentatives a report on the cost-effectiveness of 


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1 the use of the databases described in paragraphs 

2 (3), (4), and (5) for program compliance and in3 tegrity. The report required under this subpara4 graph may be included as part of the report re5 quired under subsection (f). 

6 ‘‘(8) UNITED STATES POSTAL SERVICE FECA EN7 ROLLEE DATABASE.—Not later than 180 days after 

8 the date of enactment of this section, in order to 

9 track, verify, and communicate with the Secretary 

10 and other relevant entities, the Postmaster General 

11 shall establish an electronic database of information 

12 relating to employees of the United States Postal 

13 Service who have applied for or are receiving com14 pensation, benefits, or services under this subchapter. 

15 ‘‘(e) GENERAL PROTOCOLS AND SECURITY.— 

16 ‘‘(1) ESTABLISHMENT.— 

17 ‘‘(A) IN GENERAL.—In order to ensure 

18 strong information security and privacy stand19 ards, the Secretary, the Postmaster General, the 

20 Inspector General of the Department of Labor, 

21 and the Inspector General of the United States 

22 Postal Service shall establish protocols for the se23 cure transfer and storage of any information 

24 provided to an individual or entity under this 

25 section. 


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1 ‘‘(B) CONSIDERATIONS.—In establishing 

2 protocols under subparagraph (A), the Secretary, 

3 the Postmaster General, the Inspector General of 

4 the Department of Labor, and the Inspector Gen5 eral of the United States Postal Service shall 

6 consider any recommendations submitted to the 

7 Secretary by the Inspector General of the De8 partment of Health and Human Services with 

9 respect to the secure transfer and storage of in10 formation, and to comply with privacy laws and 

11 best practices. 

12 ‘‘(C) FRAUD CASE PROTECTION.—The Sec13 retary, the Postmaster General, the Inspector 

14 General of the Department of Labor, and the In15 spector General of the United States Postal Serv16 ice shall establish protocols and procedures to en17 able information and materials relating to an 

18 active investigation of possible fraud relating to 

19 the FECA program to be appropriately kept sep20 arate from the files for employees relating to the 

21 provision of compensation, benefits, or services 

22 under the FECA program. 

23 ‘‘(2) COMPLIANCE.—The Secretary, the Post24 master General, the Inspector General of the Depart25 ment of Labor, and the Inspector General of the 


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1 United States Postal Service shall ensure that any in2 formation provided to an individual or entity under 

3 this section is provided in accordance with protocols 

4 established under paragraph (1). 

5 ‘‘(f) REPORT.—Not later than 1 year after the date of 

6 enactment of this section, and annually thereafter for 5 

7 years, the Secretary shall submit a report on the activities 

8 of the Secretary under this section, including implementa9 tion of the Integrity and Compliance Program, to— 

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

11 Governmental Affairs of the Senate; and 

12 ‘‘(2) the Committee on Oversight and Govern13 ment Reform and the Committee on Education and 

14 the Workforce of the House of Representatives. 

15 ‘‘(g) GAO REVIEW.—The Comptroller General of the 

16 United States shall— 

17 ‘‘(1) conduct periodic reviews of the Integrity 

18 and Compliance Program; and 

19 ‘‘(2) submit reports on the results of the reviews 

20 under paragraph (1) to the Committee on Homeland 

21 Security and Governmental Affairs of the Senate and 

22 the Committee on Oversight and Government Reform 

23 and the Committee on Education and the Workforce 

24 of the House of Representatives not later than— 


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1 ‘‘(A) 2 years after the date of enactment of 

2 this section; and 

3 ‘‘(B) 3 years after submission of the report 

4 under subparagraph (A).’’. 

5 (b) TECHNICAL AND CONFORMING AMENDMENT.—The 

6 table of sections for chapter 81 is amended by inserting after 

7 the item relating to section 8152 the following: 

‘‘8153. Integrity and Compliance Program.’’. 

8 SEC. 313. AMOUNT OF COMPENSATION. 

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

10 8107(c)(21) is amended— 

11 (1) by striking ‘‘not to exceed $3,500’’ and in12 serting ‘‘in proportion to the severity of the disfigure13 ment, not to exceed $50,000,’’; and 

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

15 maximum amount of compensation under this para16 graph shall be increased on March 1 of each year by 

17 the amount determined by the Secretary of Labor to 

18 represent the percent change in the price index pub19 lished for December of the preceding year over the 

20 price index published for the December of the year 

21 prior to the preceding year, adjusted to the nearest 

22 one-tenth of 1 percent.’’. 

23 (b) FUNERAL EXPENSES.—Section 8134(a) is amend24 ed— 


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

2 and 

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

4 maximum amount of compensation under this sub5 section shall be increased on March 1 of each year by 

6 the amount determined by the Secretary of Labor to 

7 represent the percent change in the price index pub8 lished for December of the preceding year over the 

9 price index published for the December of the year 

10 prior to the preceding year, adjusted to the nearest 

11 one-tenth of 1 percent.’’. 

12 (c) APPLICATION.—The amendments made by this sec13 tion shall apply to injuries or deaths, respectively, occur14 ring on or after the date of enactment of this Act. 

15 SEC. 314. TECHNICAL AND CONFORMING AMENDMENTS. 

16 Chapter 81 is amended— 

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

18 injury that occurred before the effective date of section 

19 204(e) of the District of Columbia Self-Government 

20 and Governmental Reorganization Act (Public Law 

21 93–198; 87 Stat. 783; 5 U.S.C. 8101 note)’’ before the 

22 semicolon; 

23 (2) in section 8139, by inserting ‘‘under this sub24 chapter’’ after ‘‘Compensation awarded’’; 


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

2 8106’’ and inserting ‘‘section 8106a’’; 

3 SEC. 315. REGULATIONS. 

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

5 of enactment of this Act, the Secretary of Labor shall pro6 mulgate regulations (which may include interim final regu7 lations) to carry out this title. 

8 (b) CONTENTS.—The regulations promulgated under 

9 subsection (a) shall include, for purposes of the amendments 

10 made by sections 302 and 303, clarification of— 

11 (1) what is a claim; and 

12 (2) what is the date on which a period of dis13 ability, for which a claim is made, commences. 

14 TITLE IV—OTHER MATTERS 

15 SEC. 401. PROFITABILITY PLAN. 

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

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

18 submit to the Committee on Homeland Security and Gov19 ernmental Affairs of the Senate, the Committee on Oversight 

20 and Government Reform of the House of Representatives, 

21 the Comptroller General of the United States, and the Com22 mission a plan describing, in detail, the actions the Postal 

23 Service will take to— 

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

25 (2) achieve long-term financial solvency. 


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1 (b) CONSIDERATIONS.—The plan required under sub2 section (a) shall take into consideration— 

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

4 (2) the changes in the legal authority and re5 sponsibilities of the Postal Service under this Act; 

6 (3) any cost savings that the Postal Service an7 ticipates will be achieved through negotiations with 

8 employees of the Postal Service; and 

9 (4) projected changes in mail volume. 

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

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

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

13 SEC. 402. POSTAL RATES. 

14 (a) COMMISSION STUDY.— 

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

16 the date of enactment of this Act, the Commission 

17 shall commence a study to determine— 

18 (A) whether and to what extent any market19 dominant classes, products, or types of mail serv20 ices do not bear the direct and indirect costs at21 tributable to those classes, products, or types of 

22 mail service; and 

23 (B) the impact of any excess mail proc24 essing, transportation, or delivery capacity of the 

25 Postal Service on the direct and indirect costs 


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1 attributable to any class, product, or type of 

2 mail service that bears less than 100 percent of 

3 the costs attributable to the class, product, or 

4 type of mail service, as determined under sub5 paragraph (A). 

6 (2) REQUIREMENTS.—The Commission shall 

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

8 that protects confidential and proprietary business 

9 information. 

10 (3) HEARING.—Before completing the study 

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

12 public hearing, on the record, in order to better in13 form the conclusions of the study. The Postal Service, 

14 postal customers, and other interested persons may 

15 participate in the hearing under this paragraph. 

16 (4) COMPLETION.—Not later than 6 months after 

17 the date on which the Commission commences the 

18 study under subsection (a), the Commission shall 

19 complete the study. 

20 (b) ANNUAL UPDATES REQUIRED.—Not later than 1 

21 year after the date of completion of the study under sub22 section (a), and annually thereafter, the Commission 

23 shall— 

24 (1) determine whether any class of mail bears 

25 less than 100 percent of the direct and indirect costs 


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1 attributable to the class, product, or type of mail serv2 ice, in the same manner as under subsection 

3 (a)(1)(A); 

4 (2) for any class of mail for which the Commis5 sion makes a determination under paragraph (1), up6 date the study under subsection (a); and 

7 (3) include the study updated under paragraph 

8 (2) in the annual written determination of the Com9 mission under section 3653 of title 39, United States 

10 Code. 

11 (c) POSTAL RATES.— 

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

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

14 means a class of mail that bears less than 100 percent 

15 of the costs attributable to the class of mail, according 

16 to the most recent annual determination of the Com17 mission under subsection (a)(1) or (b)(1), adjusted to 

18 account for the quantitative effect of excess mail proc19 essing, transportation, or delivery capacity of the 

20 Postal Service on the costs attributable to the class of 

21 mail. 

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

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

24 completed, and annually thereafter, the Postal Service 


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1 shall establish postal rates for each loss-making class 

2 of mail. 

3 (3) CONSIDERATIONS.—The Postal Service may 

4 establish postal rates under paragraph (2) in a man5 ner that ensures, to the extent practicable, that a class 

6 of mail described in paragraph (2) is not loss-making 

7 by— 

8 (A) using the authority to increase rates 

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

10 States Code; 

11 (B) exhausting any unused rate adjustment 

12 authority, as defined in section 3622(d)(2)(C) of 

13 title 39, United States Code, subject to para14 graph (4); and 

15 (C) maximizing incentives to reduce costs 

16 and increase efficiency with regard to the proc17 essing, transportation, and delivery of such mail 

18 by the Postal Service. 

19 (4) UNUSED RATE ADJUSTMENT AUTHORITY.— 

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

21 shall be applied by annually increasing by 2 percent22 age points any unused rate adjustment authority for 

23 a class of mail that bears less than 90 percent of the 

24 costs attributable to the class of mail, according to the 

25 most recent annual determination of the Commission 


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1 under subsection (a)(1) or (b)(1), adjusted to account 

2 for the quantitative effect of excess mail processing, 

3 transportation, or delivery capacity of the Postal 

4 Service on the costs attributable to the class of mail. 

5 SEC. 403. COOPERATION WITH STATE AND LOCAL GOVERN6 MENTS; INTRA-SERVICE AGREEMENTS. 

7 (a) COOPERATION WITH STATE AND LOCAL GOVERN8 MENTS.—Section 411 of title 39, United States Code, is 

9 amended, in the first sentence, by striking ‘‘and the Govern10 ment Printing Office’’ inserting ‘‘, the Government Print11 ing Office, and agencies and other units of State and local 

12 governments’’. 

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

14 title 39, United States Code, as amended by subsection (a), 

15 is amended— 

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

17 the following: ‘‘and within the Postal Serv18 ice’’; 

19 (2) in the second sentence, by striking ‘‘section’’ 

20 and inserting ‘‘subsection’’; 

21 (3) by striking ‘‘Executive agencies’’ and insert22 ing the following: 

23 ‘‘(a) COOPERATION WITH STATE AND LOCAL GOVERN24 MENTS.—Executive agencies’’; and 

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


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1 ‘‘(b) COOPERATION WITHIN THE POSTAL SERVICE.— 

2 The Office of the Inspector General and other components 

3 of the Postal Service may enter into agreements to furnish 

4 to each other property, both real and personal, and personal 

5 and nonpersonal services. The furnishing of property and 

6 services under this subsection shall be under such terms and 

7 conditions, including reimbursability, as the Inspector Gen8 eral and the head of the component concerned shall deem 

9 appropriate.’’. 

10 (c) TECHNICAL AND CONFORMING AMENDMENT.—The 

11 table of sections for chapter 4 of title 39, United States 

12 Code, is amended by striking the item relating to section 

13 411 and inserting the following: 

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

14 SEC. 404. SHIPPING OF WINE AND BEER. 

15 (a) MAILABILITY.— 

16 (1) NONMAILABLE ARTICLES.—Section 1716(f) of 

17 title 18, United States Code, is amended by striking 

18 ‘‘mails’’ and inserting ‘‘mails, except to the extent 

19 that the mailing is allowable under section 3001(p) of 

20 title 39’’. 

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

22 title 18, United States Code, is amended, by inserting 

23 ‘‘, and, with respect to the mailing of wine or malt 

24 beverages (as those terms are defined in section 117 


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1 of the Federal Alcohol Administration Act (27 U.S.C. 

2 211)), is in conformity with section 3001(p) of title 

3 39’’ after ‘‘Register’’. 

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

5 States Code, is amended by adding at the end the following: 

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

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

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

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

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

13 (3); and 

14 ‘‘(B) in accordance with the laws of— 

15 ‘‘(i) the State, territory, or district of the 

16 United States where the sender or duly author17 ized agent initiates the mailing; and 

18 ‘‘(ii) the State, territory, or district of the 

19 United States where the addressee or duly au20 thorized agent takes delivery. 

21 ‘‘(3) The Postal Service shall prescribe such regulations 

22 as may be necessary to carry out this subsection, including 

23 regulations providing that— 


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1 ‘‘(A) the mailing shall be by a means established 

2 by the Postal Service to ensure direct delivery to the 

3 addressee or a duly authorized agent; 

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

5 agent) shall be an individual at least 21 years of age; 

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

7 the addressee or a duly authorized agent, shall present 

8 a valid, government-issued photo identification at the 

9 time of delivery; 

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

11 resale or other commercial purpose; and 

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

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

14 the Postal Service, through a registration process 

15 administered by the Postal Service, that the 

16 mailing is not in violation of any provision of 

17 this subsection or regulation prescribed under 

18 this subsection; and 

19 ‘‘(ii) provide any other information or af20 firmation that the Postal Service may require, 

21 including with respect to the prepayment of 

22 State alcohol beverage taxes. 

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

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

25 if it holds an appropriate basic permit issued— 


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1 ‘‘(i) under the Federal Alcohol Administra2 tion Act; and 

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

4 the winery is located; and 

5 ‘‘(B) a brewery shall be considered to be licensed 

6 if— 

7 ‘‘(i) it possesses a notice of registration and 

8 bond approved by the Alcohol and Tobacco Tax 

9 and Trade Bureau of the Department of the 

10 Treasury; and 

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

12 malt beverages in the State in which the brewery 

13 is located.’’. 

14 (c) EFFECTIVE DATE.—The amendments made by this 

15 section shall take effect on the earlier of— 

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

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

18 States Code, as amended by this section; and 

19 (2) 120 days after the date of enactment of this 

20 Act. 

21 SEC. 405. ANNUAL REPORT ON UNITED STATES MAILING IN22 DUSTRY. 

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

24 States Code, is amended by adding at the end the following: 


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1 ‘‘§ 2403. Annual report on the fiscal stability of the 

2 United States mailing industry 

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

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

5 the Postal Regulatory Commission shall submit a report on 

6 the fiscal stability of the United States mailing industry 

7 with respect to the preceding fiscal year to— 

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

9 Governmental Affairs of the Senate; and 

10 ‘‘(2) the Committee on Oversight and Govern11 ment Reform of the House of Representatives. 

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

13 and any Federal agency involved in oversight or data col14 lection regarding industry sectors relevant to the report 

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

16 Postal Regulatory Commission that the Postal Regulatory 

17 Commission determines is necessary in the preparation of 

18 a report under subsection (a).’’. 

19 (b) TECHNICAL AND CONFORMING AMENDMENT.—The 

20 table of sections for chapter 24 of title 39, United States 

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

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

22 SEC. 406. USE OF NEGOTIATED SERVICE AGREEMENTS. 

23 Section 3622 of title 39, United States Code, is amend24 ed— 


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1 (1) in subsection (c)(10)(A)— 

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

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

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

5 end; 

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

7 end and inserting ‘‘or’’; and 

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

9 ‘‘(iii) preserve mail volume and rev10 enue; and’’; and 

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

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

13 Postal Regulatory Commission shall coordinate actions to 

14 identify methods to increase the use of negotiated service 

15 agreements for market-dominant products by the Postal 

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

17 SEC. 407. CONTRACT DISPUTES. 

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

19 amended— 

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

21 the end; 

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

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

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


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

2 the Postal Regulatory Commission.’’. 

3 SEC. 408. CONTRACTING PROVISIONS. 

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

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

6 ‘‘CHAPTER 7—CONTRACTING PROVISIONS 

‘‘Sec. 

‘‘701. Definitions. 

‘‘702. Advocate for competition. 

‘‘703. Delegation of contracting authority. 

‘‘704. Posting of noncompetitive purchase requests for noncompetitive contracts. 

‘‘705. Review of ethical issues. 

‘‘706. Ethical restrictions on participation in certain contracting activity. 

‘‘707. Congressional oversight authority. 

7 ‘‘§ 701. Definitions 

8 ‘‘In this chapter— 

9 ‘‘(1) the term ‘contracting officer’ means an em10 ployee of a covered postal entity who has authority to 

11 enter into a postal contract; 

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

13 ‘‘(A) the Postal Service; or 

14 ‘‘(B) the Postal Regulatory Commission; 

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

16 means— 

17 ‘‘(A) in the case of the Postal Service, the 

18 Postmaster General; or 

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

20 Commission, the Chairman of the Postal Regu21 latory Commission; 


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1 ‘‘(4) the term ‘postal contract’ means any con2 tract (including any agreement or memorandum of 

3 understanding) entered into by a covered postal entity 

4 for the procurement of goods or services; and 

5 ‘‘(5) the term ‘senior procurement executive’ 

6 means the senior procurement executive of a covered 

7 postal entity. 

8 ‘‘§ 702. Advocate for competition 

9 ‘‘(a) ESTABLISHMENT AND DESIGNATION.— 

10 ‘‘(1) ESTABLISHMENT.—There is established in 

11 each covered postal entity an advocate for competi12 tion. 

13 ‘‘(2) DESIGNATION.—The head of each covered 

14 postal entity shall designate for the covered postal en15 tity 1 or more officers or employees (other than the 

16 senior procurement executive) to serve as the advocate 

17 for competition. 

18 ‘‘(b) RESPONSIBILITIES.—The advocate for competi19 tion of each covered postal entity shall— 

20 ‘‘(1) be responsible for promoting competition to 

21 the maximum extent practicable consistent with ob22 taining best value by promoting the acquisition of 

23 commercial items and challenging barriers to com24 petition; 


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1 ‘‘(2) review the procurement activities of the cov2 ered postal entity; and 

3 ‘‘(3) prepare and transmit to the head of each 

4 covered postal entity, the senior procurement executive 

5 of each covered postal entity, the Board of Governors, 

6 and Congress, an annual report describing— 

7 ‘‘(A) the activities of the advocate under 

8 this section; 

9 ‘‘(B) initiatives required to promote com10 petition; 

11 ‘‘(C) barriers to competition that remain; 

12 and 

13 ‘‘(D) the number of waivers made by each 

14 covered postal entity under section 704(c). 

15 ‘‘§ 703. Delegation of contracting authority 

16 ‘‘(a) IN GENERAL.— 

17 ‘‘(1) POLICY.—Not later than 60 days after the 

18 date of enactment of the 21st Century Postal Service 

19 Act of 2012, the head of each covered postal entity 

20 shall issue a policy on contracting officer delegations 

21 of authority for the covered postal entity. 

22 ‘‘(2) CONTENTS.—The policy issued under para23 graph (1) shall require that— 

24 ‘‘(A) notwithstanding any delegation of au25 thority with respect to postal contracts, the ultiVerDate Mar 15 2010 22:34 Jan 26, 2012 Jkt 019200 PO 00000 Frm 00216 Fmt 6652 Sfmt 6203 E:\BILLS\S1789.RS S1789

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1 mate responsibility and accountability for the 

2 award and administration of postal contracts re3 sides with the senior procurement executive; and 

4 ‘‘(B) a contracting officer shall maintain 

5 an awareness of and engagement in the activities 

6 being performed on postal contracts of which 

7 that officer has cognizance, notwithstanding any 

8 delegation of authority that may have been exe9 cuted. 

10 ‘‘(b) POSTING OF DELEGATIONS.— 

11 ‘‘(1) IN GENERAL.—The head of each covered 

12 postal entity shall make any delegation of authority 

13 for postal contracts outside the functional contracting 

14 unit readily available and accessible on the website of 

15 the covered postal entity. 

16 ‘‘(2) EFFECTIVE DATE.—This paragraph shall 

17 apply to any delegation of authority made on or after 

18 30 days after the date of enactment of the 21st Cen19 tury Postal Service Act of 2012. 

20 ‘‘§ 704. Posting of noncompetitive purchase requests 

21 for noncompetitive contracts 

22 ‘‘(a) POSTING REQUIRED.— 

23 ‘‘(1) POSTAL REGULATORY COMMISSION.—The 

24 Postal Regulatory Commission shall make the non25 competitive purchase request for any noncompetitive 


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1 award, including the rationale supporting the non2 competitive award, publicly available on the website 

3 of the Postal Regulatory Commission— 

4 ‘‘(A) not later than 14 days after the date 

5 of the award of the noncompetitive contract; or 

6 ‘‘(B) not later than 30 days after the date 

7 of the award of the noncompetitive contract, if 

8 the basis for the award was a compelling busi9 ness interest. 

10 ‘‘(2) POSTAL SERVICE.—The Postal Service shall 

11 make the noncompetitive purchase request for any 

12 noncompetitive award of a postal contract valued at 

13 $250,000 or more, including the rationale supporting 

14 the noncompetitive award, publicly available on the 

15 website of the Postal Service— 

16 ‘‘(A) not later than 14 days after the date 

17 of the award; or 

18 ‘‘(B) not later than 30 days after the date 

19 of the award, if the basis for the award was a 

20 compelling business interest. 

21 ‘‘(3) ADJUSTMENTS TO THE POSTING THRESH22 OLD FOR THE POSTAL SERVICE.— 

23 ‘‘(A) REVIEW AND DETERMINATION.—Not 

24 later than January 31 of each year, the Postal 

25 Service shall— 


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1 ‘‘(i) review the $250,000 threshold es2 tablished under paragraph (2); and 

3 ‘‘(ii) based on any change in the Con4 sumer Price Index for all-urban consumers 

5 of the Department of Labor, determine 

6 whether an adjustment to the threshold shall 

7 be made. 

8 ‘‘(B) AMOUNT OF ADJUSTMENTS.—An ad9 justment under subparagraph (A) shall be made 

10 in increments of $5,000. If the Postal Service de11 termines that a change in the Consumer Price 

12 Index for a year would require an adjustment in 

13 an amount that is less than $5,000, the Postal 

14 Service may not make an adjustment to the 

15 threshold for the year. 

16 ‘‘(4) EFFECTIVE DATE.—This subsection shall 

17 apply to any noncompetitive contract awarded on or 

18 after the date that is 90 days after the date of enact19 ment of the 21st Century Postal Service Act of 2012. 

20 ‘‘(b) PUBLIC AVAILABILITY.— 

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

22 information required to be made publicly available by 

23 a covered postal entity under subsection (a) shall be 

24 readily accessible on the website of the covered postal 

25 entity. 


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1 ‘‘(2) PROTECTION OF PROPRIETARY INFORMA2 TION.—A covered postal entity shall— 

3 ‘‘(A) carefully screen any description of the 

4 rationale supporting a noncompetitive award re5 quired to be made publicly available under sub6 section (a) to determine whether the description 

7 includes proprietary data (including any ref8 erence or citation to the proprietary data) or se9 curity-related information; and 

10 ‘‘(B) remove any proprietary data or secu11 rity-related information before making publicly 

12 available a description of the rational sup13 porting a noncompetitive award. 

14 ‘‘(c) WAIVERS.— 

15 ‘‘(1) WAIVER PERMITTED.—If a covered postal 

16 entity determines that making a noncompetitive pur17 chase request publicly available would risk placing 

18 the Postal Service at a competitive disadvantage rel19 ative to a private sector competitor, the senior pro20 curement executive, in consultation with the advocate 

21 for competition of the covered postal entity, may 

22 waive the requirements under subsection (a). 

23 ‘‘(2) FORM AND CONTENT OF WAIVER.— 

24 ‘‘(A) FORM.—A waiver under paragraph 

25 (1) shall be in the form of a written determinaVerDate Mar 15 2010 22:34 Jan 26, 2012 Jkt 019200 PO 00000 Frm 00220 Fmt 6652 Sfmt 6203 E:\BILLS\S1789.RS S1789

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1 tion placed in the file of the contract to which 

2 the noncompetitive purchase agreement relates. 

3 ‘‘(B) CONTENT.—A waiver under para4 graph (1) shall include— 

5 ‘‘(i) a description of the risk associated 

6 with making the noncompetitive purchase 

7 request publicly available; and 

8 ‘‘(ii) a statement that redaction of sen9 sitive information in the noncompetitive 

10 purchase request would not be sufficient to 

11 protect the Postal Service from being placed 

12 at a competitive disadvantage relative to a 

13 private sector competitor. 

14 ‘‘(3) DELEGATION OF WAIVER AUTHORITY.—A 

15 covered postal entity may not delegate the authority 

16 to approve a waiver under paragraph (1) to any em17 ployee having less authority than the senior procure18 ment executive. 

19 ‘‘§ 705. Review of ethical issues 

20 ‘‘If a contracting officer identifies any ethical issues 

21 relating to a proposed contract and submits those issues and 

22 that proposed contract to the designated ethics official for 

23 the covered postal entity before the awarding of that con24 tract, that ethics official shall— 

25 ‘‘(1) review the proposed contract; and 


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1 ‘‘(2) advise the contracting officer on the appro2 priate resolution of ethical issues. 

3 ‘‘§ 706. Ethical restrictions on participation in certain 

4 contracting activity 

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

6 ‘‘(1) the term ‘covered employee’ means— 

7 ‘‘(A) a contracting officer; or 

8 ‘‘(B) any employee of a covered postal enti9 ty whose decisionmaking affects a postal contract 

10 as determined by regulations prescribed by the 

11 head of a covered postal entity; 

12 ‘‘(2) the term ‘covered relationship’ means a cov13 ered relationship described in section 2635.502(b)(1) 

14 of title 5, Code of Federal Regulations, or any suc15 cessor thereto; and 

16 ‘‘(3) the term ‘final conviction’ means a convic17 tion, whether entered on a verdict or plea, including 

18 a plea of nolo contendere, for which a sentence has 

19 been imposed. 

20 ‘‘(b) IN GENERAL.— 

21 ‘‘(1) REGULATIONS.—The head of each covered 

22 postal entity shall prescribe regulations that— 

23 ‘‘(A) require a covered employee to include 

24 in the file of any noncompetitive purchase reVerDate Mar 15 2010 22:34 Jan 26, 2012 Jkt 019200 PO 00000 Frm 00222 Fmt 6652 Sfmt 6203 E:\BILLS\S1789.RS S1789

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1 quest for a noncompetitive postal contract a 

2 written certification that— 

3 ‘‘(i) discloses any covered relationship 

4 of the covered employee; and 

5 ‘‘(ii) the covered employee will not take 

6 any action with respect to the noncompeti7 tive purchase request that affects the finan8 cial interests of a friend, relative, or person 

9 with whom the covered employee is affili10 ated in a nongovernmental capacity, or oth11 erwise gives rise to an appearance of the use 

12 of public office for private gain, as described 

13 in section 2635.702 of title 5, Code of Fed14 eral Regulations, or any successor thereto; 

15 ‘‘(B) require a contracting officer to consult 

16 with the ethics counsel for the covered postal en17 tity regarding any disclosure made by a covered 

18 employee under subparagraph (A)(i), to deter19 mine whether participation by the covered em20 ployee in the noncompetitive purchase request 

21 would give rise to a violation of part 2635 of 

22 title 5, Code of Federal Regulations (commonly 

23 referred to as the ‘Standards of Ethical Conduct 

24 for Employees of the Executive Branch’); 


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1 ‘‘(C) require the ethics counsel for a covered 

2 postal entity to review any disclosure made by 

3 a contracting officer under subparagraph (A)(i) 

4 to determine whether participation by the con5 tracting officer in the noncompetitive purchase 

6 request would give rise to a violation of part 

7 2635 of title 5, Code of Federal Regulations 

8 (commonly referred to as the ‘Standards of Eth9 ical Conduct for Employees of the Executive 

10 Branch’), or any successor thereto; 

11 ‘‘(D) under subsections (d) and (e) of sec12 tion 2635.50 of title 5, Code of Federal Regula13 tions, or any successor thereto, require the ethics 

14 counsel for a covered postal entity to— 

15 ‘‘(i) authorize a covered employee that 

16 makes a disclosure under subparagraph 

17 (A)(i) to participate in the noncompetitive 

18 postal contract; or 

19 ‘‘(ii) disqualify a covered employee 

20 that makes a disclosure under subparagraph 

21 (A)(i) from participating in the non22 competitive postal contract; 

23 ‘‘(E) require a contractor to timely disclose 

24 to the contracting officer in a bid, solicitation, 


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1 award, or performance of a postal contract any 

2 conflict of interest with a covered employee; and 

3 ‘‘(F) include authority for the head of the 

4 covered postal entity to a grant a waiver or oth5 erwise mitigate any organizational or personal 

6 conflict of interest, if the head of the covered 

7 postal entity determines that the waiver or miti8 gation is in the best interests of the Postal Serv9 ice. 

10 ‘‘(2) POSTING OF WAIVERS.—Not later than 30 

11 days after the head of a covered postal entity grants 

12 a waiver described in paragraph (1)(F), the head of 

13 the covered postal entity shall make the waiver pub14 licly available on the website of the covered postal en15 tity. 

16 ‘‘(c) CONTRACT VOIDANCE AND RECOVERY.— 

17 ‘‘(1) UNLAWFUL CONDUCT.—In any case in 

18 which there is a final conviction for a violation of 

19 any provision of chapter 11 of title 18 relating to a 

20 postal contract, the head of a covered postal entity 

21 may— 

22 ‘‘(A) void that contract; and 

23 ‘‘(B) recover the amounts expended and 

24 property transferred by the covered postal entity 

25 under that contract. 


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1 ‘‘(2) OBTAINING OR DISCLOSING PROCUREMENT

2 INFORMATION.— 

3 ‘‘(A) IN GENERAL.—In any case where a 

4 contractor under a postal contract fails to timely 

5 disclose a conflict of interest to the appropriate 

6 contracting officer as required under the regula7 tions promulgated under subsection (b)(1)(D), 

8 the head of a covered postal entity may— 

9 ‘‘(i) void that contract; and 

10 ‘‘(ii) recover the amounts expended and 

11 property transferred by the covered postal 

12 entity under that contract. 

13 ‘‘(B) CONVICTION OR ADMINISTRATIVE DE14 TERMINATION.—A case described under subpara15 graph (A) is any case in which— 

16 ‘‘(i) there is a final conviction for an 

17 offense punishable under section 27(e) of the 

18 Office of Federal Procurement Policy Act 

19 (41 U.S.C. 423(e)); or 

20 ‘‘(ii) the head of a covered postal entity 

21 determines, based upon a preponderance of 

22 the evidence, that the contractor or someone 

23 acting for the contractor has engaged in 

24 conduct constituting an offense punishable 

25 under section 27(e) of that Act. 


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1 ‘‘§ 707. Congressional oversight authority 

2 ‘‘The Postal Service may not enter into any contract 

3 that restricts the ability of Congress to exercise oversight 

4 authority.’’. 

5 (b) TECHNICAL AND CONFORMING AMENDMENT.—The 

6 table of chapters for part I of title 39, United States Code, 

7 is amended by adding at the end the following: 

‘‘7. Contracting Provisions .............................................................................. 701’’. 


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Calendar No. 296 

112TH CONGRESS 

2D SESSION S. 1789 

A BILL 

To improve, sustain, and transform the United 

States Postal Service. 

JANUARY 26, 2012 

Reported with an amendment 


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