II 

113TH CONGRESS 

1ST SESSION S. 1486 

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

IN THE SENATE OF THE UNITED STATES 

AUGUST 1, 2013 

Mr. CARPER (for himself and Mr. COBURN) introduced the following bill; 

which was read twice and referred to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To improve, sustain, and transform the United States Postal 

Service. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Postal Reform Act of 

5 2013’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. Definitions. 

TITLE I—POSTAL SERVICE WORKFORCE 


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Sec. 101. Annual Federal Employee Retirement System and Civil Service Retirement System Assessments. 

Sec. 102. Postal service authority to negotiate retirement benefit terms for new 

employees. 

Sec. 103. Restructuring of payments for retiree health benefits. 

Sec. 104. Postal service health benefits plan. 

Sec. 105. Medicare coordination efforts for postal service employees and retirees. 

Sec. 106. Labor disputes. 

TITLE II—POSTAL SERVICE OPERATIONS 

Sec. 201. Maintenance of delivery service standards. 

Sec. 202. Preserving mail processing capacity. 

Sec. 203. Preserving community post offices. 

Sec. 204. Changes to mail delivery schedule. 

Sec. 205. Delivery point modernization. 

Sec. 206. Postal services for market-dominant products. 

TITLE III—POSTAL SERVICE REVENUE 

Sec. 301. Postal rates. 

Sec. 302. Nonpostal services. 

Sec. 303. Shipping of wine, beer, and distilled spirits. 

TITLE IV—POSTAL SERVICE GOVERNANCE 

Sec. 401. Board of Governors of the Postal Service. 

Sec. 402. Strategic Advisory Commission on Postal Service Solvency and Innovation. 

Sec. 403. Long-term solvency plan; annual financial plan and budget. 

Sec. 404. Chief Innovation Officer; innovation strategy. 

Sec. 405. Area and district office structure. 

Sec. 406. Inspector General of the Postal Service. 

TITLE V—FEDERAL EMPLOYEES’ COMPENSATION ACT 

Sec. 501. Short title; references. 

Sec. 502. Federal workers compensation reforms for retirement-age employees. 

Sec. 503. Augmented compensation for dependents. 

Sec. 504. Schedule compensation payments. 

Sec. 505. Vocational rehabilitation. 

Sec. 506. Reporting requirements. 

Sec. 507. Disability management review; independent medical examinations. 

Sec. 508. Waiting period. 

Sec. 509. Election of benefits. 

Sec. 510. Sanction for noncooperation with field nurses. 

Sec. 511. Subrogation of continuation of pay. 

Sec. 512. Integrity and compliance. 

Sec. 513. Amount of compensation. 

Sec. 514. Terrorism injuries; zones of armed conflict. 

Sec. 515. Technical and conforming amendments. 

Sec. 516. Regulations. 

Sec. 517. Effective date. 

TITLE VI—PROPERTY MANAGEMENT AND EXPEDITED DISPOSAL 

OF REAL PROPERTY 


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Sec. 601. Short title. 

Sec. 602. Purpose. 

Sec. 603. Property management and expedited disposal of real property. 

Sec. 604. Report of the Comptroller General. 

Sec. 605. Technical and conforming amendment. 

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 SERVICE 

8 WORKFORCE 

9 SEC. 101. ANNUAL FEDERAL EMPLOYEE RETIREMENT SYS10 TEM AND CIVIL SERVICE RETIREMENT SYS11 TEM ASSESSMENTS. 

12 (a) USE OF POSTAL-SPECIFIC ASSUMPTIONS IN NOR13 MAL COST CALCULATION.— 

14 (1) IN GENERAL.—Section 8423(a) of title 5, 

15 United States Code, is amended— 

16 (A) in paragraph (1)— 

17 (i) in subparagraph (A)— 

18 (I) in clause (i), by inserting ‘‘or 

19 (C)’’ after ‘‘subparagraph (B)’’; and 

20 (II) in clause (ii), by striking 

21 ‘‘and’’; 


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1 (ii) in subparagraph (B)(ii), by strik2 ing the period at the end and inserting ‘‘; 

3 and’’; and 

4 (iii) by adding at the end the fol5 lowing: 

6 ‘‘(C) the product of— 

7 ‘‘(i) the normal-cost percentage, as 

8 determined for employees of the United 

9 States Postal Service under paragraph (5), 

10 multiplied by 

11 ‘‘(ii) the aggregate amount of basic 

12 pay payable by the United States Postal 

13 Service, for the period involved, to employ14 ees of the United States Postal Service.’’; 

15 and 

16 (B) by adding at the end the following: 

17 ‘‘(5)(A) In determining the normal-cost per18 centage for employees of the United States Postal 

19 Service, the Office shall use— 

20 ‘‘(i) demographic factors specific to the 

21 employees; and 

22 ‘‘(ii) economic assumptions regarding wage 

23 and salary growth that reflect the specific past, 

24 and likely future, pay for the employees. 


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1 ‘‘(B) The United States Postal Service shall 

2 provide any data or projections the Office requires 

3 in order to determine the normal-cost percentage for 

4 employees of the United States Postal Service con5 sistent with subparagraph (A). 

6 ‘‘(C) The Office shall review the determination 

7 of the normal-cost percentage for employees of the 

8 United States Postal Service and make such adjust9 ments as are necessary— 

10 ‘‘(i) upon request of the United States 

11 Postal Service, but no more frequently than 

12 once each fiscal year; and 

13 ‘‘(ii) at any additional times, as the Office 

14 considers appropriate.’’. 

15 (2) INITIAL DETERMINATION.—Not later than 

16 90 days after the date of enactment of this Act, the 

17 Office shall determine the normal-cost percentage 

18 for employees of the United States Postal Service in 

19 accordance with the requirements under section 

20 8423(a)(5) of title 5, United States Code, as added 

21 by paragraph (1). 

22 (b) POSTAL FUNDING SURPLUS OR LIABILITY.— 

23 (1) TREATMENT OF POSTAL FUNDING SUR24 PLUS.—Section 8423(b) of title 5, United States 

25 Code, is amended— 


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1 (A) by redesignating paragraph (5) as 

2 paragraph (6); and 

3 (B) by inserting after paragraph (4) the 

4 following: 

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

6 funding surplus’ means the amount by which the 

7 amount of supplemental liability computed under 

8 paragraph (1)(B) is less than zero. 

9 ‘‘(B)(i) After the date on which the Office de10 termines or redetermines under paragraph (7)(C) 

11 the amount of supplemental liability computed under 

12 paragraph (1)(B) as of the close of the fiscal year 

13 ending on September 30, 2013, and if such amount 

14 is less than zero, the Postmaster General may re15 quest that some or all of the amount of the postal 

16 funding surplus be returned to the Postal Service, 

17 and not later than 10 days after the request, the Di18 rector shall transfer to the United States Postal 

19 Service from the Fund an amount equal to the por20 tion of the postal funding surplus requested for use 

21 in accordance with this subparagraph. 

22 ‘‘(ii) Of the amount transferred under clause 

23 (i), not more than $6,000,000,000 may be used by 

24 the United States Postal Service for the purposes of 


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1 repaying any obligation issued under section 2005(a) 

2 of title 39. 

3 ‘‘(C) If the amount of supplemental liability 

4 computed under paragraph (1)(B) as of the close of 

5 any fiscal year commencing after September 30, 

6 2013, is less than zero, the Office shall establish an 

7 amortization schedule, including a series of annual 

8 installments, to be transferred to the United States 

9 Postal Service from the Fund, commencing on Sep10 tember 30 of the subsequent fiscal year, which pro11 vides for the liquidation of the postal funding sur12 plus by September 30, 2054.’’. 

13 (2) SUPPLEMENTAL LIABILITY CALCULA14 TION.— 

15 (A) FERS.—Section 8423(b) of title 5, 

16 United States Code, as amended by paragraph 

17 (1) of this subsection, is amended— 

18 (i) in paragraph (6), as so redesig19 nated, in the matter preceding subpara20 graph (A), by striking ‘‘For the purpose’’ 

21 and inserting ‘‘Subject to paragraph (7), 

22 for the purpose’’; and 

23 (ii) by adding at the end the fol24 lowing: 


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1 ‘‘(7)(A) For the purpose of carrying out para2 graph (1)(B) with respect to the fiscal year ending 

3 September 30, 2013, and each fiscal year thereafter, 

4 the Office shall, consistent with subsection (a)(5), 

5 use— 

6 ‘‘(i) demographic factors specific to current 

7 and former employees of the United States 

8 Postal Service; and 

9 ‘‘(ii) economic assumptions regarding wage 

10 and salary growth that reflect the specific past 

11 and likely future pay for current employees of 

12 the United States Postal Service. 

13 ‘‘(B) The United States Postal Service shall 

14 provide any data or projections the Office requires 

15 in order to carry out paragraph (1)(B) consistent 

16 with subparagraph (A) of this paragraph. 

17 ‘‘(C) Not later than June 14, 2014, the Office 

18 shall determine or redetermine whether there is a 

19 postal funding surplus (as defined in paragraph (5)) 

20 or a supplemental liability described in paragraph 

21 (1)(B) (and the amount thereof) as of the close of 

22 the fiscal year ending on September 30, 2013, in ac23 cordance with the requirements under subparagraph 

24 (A) of this paragraph.’’. 


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1 (B) CSRS.—Section 8348(h) of title 5, 

2 United States Code, is amended— 

3 (i) in paragraph (2), by striking sub4 paragraph (B) and inserting the following: 

5 ‘‘(B)(i)(I) Not later than June 14, 2014, the Office 

6 shall redetermine the Postal surplus or supplemental li7 ability as of the close of the fiscal year ending on Sep8 tember 30, 2013, in accordance with the requirements 

9 under paragraph (4). 

10 ‘‘(II) If the result of the redetermination under sub11 clause (I) is a surplus, that amount shall remain in the 

12 Fund until distribution is authorized under subparagraph 

13 (C). 

14 ‘‘(III) If the result of the redetermination under sub15 clause (I) is a supplemental liability, the Office shall estab16 lish an amortization schedule, including a series of annual 

17 installments commencing on September 30, 2015, which 

18 provides for the liquidation of such liability by September 

19 30, 2054. 

20 ‘‘(ii)(I) The Office shall redetermine the Postal sur21 plus or supplemental liability as of the close of each fiscal 

22 year beginning after September 30, 2013, in accordance 

23 with the requirements under paragraph (4). 

24 ‘‘(II) If the result of the redetermination under sub25 clause (I) is a surplus, that amount shall remain in the 


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1 Fund until distribution is authorized under subparagraph 

2 (C). 

3 ‘‘(III) On and after June 15, 2015, if the result of 

4 the redetermination under subclause (I) is a supplemental 

5 liability, the Office shall establish an amortization sched6 ule, including a series of annual installments commencing 

7 on September 30 of the subsequent fiscal year, which pro8 vides for the liquidation of such liability by September 30, 

9 2054.’’; and 

10 (ii) by adding at the end the fol11 lowing: 

12 ‘‘(4)(A) For the purpose of carrying out para13 graphs (1) and (2), the Office shall, consistent with 

14 section 8423(a)(5), use— 

15 ‘‘(i) demographic factors specific to current 

16 and former employees of the United States 

17 Postal Service; and 

18 ‘‘(ii) economic assumptions regarding wage 

19 and salary growth that reflect the specific past 

20 and likely future pay for current employees of 

21 the United States Postal Service. 

22 ‘‘(B) The United States Postal Service shall 

23 provide any data or projections the Office requires 

24 in order to carry out paragraphs (1) and (2) con25 sistent with subparagraph (A) of this paragraph.’’. 


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1 SEC. 102. POSTAL SERVICE AUTHORITY TO NEGOTIATE RE2 TIREMENT BENEFIT TERMS FOR NEW EM3 PLOYEES. 

4 (a) AUTHORITY TO NEGOTIATE RETIREMENT BEN5 EFIT TERMS.— 

6 (1) COLLECTIVE BARGAINING OVER CERTAIN

7 RETIREMENT BENEFITS.—Section 1005 of title 39, 

8 United States Code, is amended by adding at the 

9 end the following: 

10 ‘‘(g)(1) In this subsection— 

11 ‘‘(A) the term ‘collective bargaining agreement’ 

12 means a collective bargaining agreement between the 

13 Postal Service and a bargaining representative rec14 ognized under section 1203 entered into after the 

15 date of enactment of the Postal Reform Act of 2013; 

16 ‘‘(B) the term ‘new employee’ means an indi17 vidual who becomes an officer or employee of the 

18 Postal Service after the date of enactment of the 

19 Postal Reform Act of 2013; 

20 ‘‘(C) the term ‘not covered under the FERS de21 fined benefit plan’, with respect to an officer or em22 ployee of the Postal Service, means that service by 

23 the officer or employee of the Postal Service as an 

24 officer or employee of the Postal Service shall not be 

25 creditable service for purposes of chapter 84 of title 

26 5. 


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1 ‘‘(2)(A) A collective bargaining agreement may pro2 vide, notwithstanding chapter 84 of title 5, that some or 

3 all new employees covered under the collective bargaining 

4 agreement shall be not covered under the FERS defined 

5 benefit plan. 

6 ‘‘(B) If a new employee is not covered under the 

7 FERS defined benefit plan pursuant to a collective bar8 gaining agreement, any subsequent service by the new em9 ployee as an officer or employee of the Postal Service shall 

10 be not covered under the FERS defined benefit plan. 

11 ‘‘(C) Subject to the requirements under this sub12 section, a collective bargaining agreement may include one 

13 or more additional retirement benefit plans for the benefit 

14 of some or all new employees covered under the collective 

15 bargaining agreement. 

16 ‘‘(3)(A) A collective bargaining agreement may estab17 lish, with respect to some or all new employees covered 

18 under the collective bargaining agreement— 

19 ‘‘(i) without regard to section 8422 of title 5, 

20 and subject to subparagraph (C) of this paragraph 

21 and paragraph (2)(B), the amounts to be deducted 

22 and withheld from the pay of the new employees for 

23 deposit in the Treasury of the United States to the 

24 credit of the Civil Service Retirement and Disability 

25 Fund; 


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1 ‘‘(ii) without regard to section 8432 of title 5, 

2 whether the Postal Service shall make contributions 

3 to the Thrift Savings Fund for the benefit of the 

4 new employees, and, if the Postal Service shall make 

5 such contributions, the amounts that the Postal 

6 Service shall contribute; and 

7 ‘‘(iii) for any retirement benefit plan established 

8 under the bargaining agreement, the amounts to be 

9 deducted and withheld from the pay of the new em10 ployees under the retirement benefit plan for the 

11 benefit of the new employees. 

12 ‘‘(B) Except as provided in paragraph (2)(B), a col13 lective bargaining agreement may establish the amounts 

14 described in subparagraph (A)(i) with respect to some or 

15 all new employees who were covered under a previous col16 lective bargaining agreement. 

17 ‘‘(C) The Postal Service shall, under section 8422(c) 

18 of title 5, deposit in the Treasury to the credit of the Civil 

19 Service Retirement and Disability Fund the amount that 

20 the Postal Service would have deducted and withheld from 

21 the basic pay of each officer and employee of the Postal 

22 Service, except an officer or employee who is not covered 

23 under the FERS defined benefit plan, without regard to 

24 subparagraph (A)(i) or any agreement regarding amounts 

25 to be deducted and withheld under subparagraph (A)(i). 


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1 ‘‘(4) If any new employee is not covered under the 

2 FERS defined benefit plan pursuant to a collective bar3 gaining agreement, any member of the Postal Career Ex4 ecutive Service shall be not covered under the FERS de5 fined benefit plan on and after the effective date of the 

6 collective bargaining agreement. 

7 ‘‘(5) Except as provided in paragraph (3)(A), nothing 

8 in this subsection or in a provision of a collective bar9 gaining agreement entered under this subsection shall af10 fect the coverage of an officer or employee of the Postal 

11 Service under subchapter III of chapter 84 of the United 

12 States Code (relating to the Thrift Savings Plan).’’. 

13 (2) APPLICABILITY OF LAWS RELATING TO

14 FEDERAL EMPLOYEES.—Section 1005 of title 39, 

15 United States Code, is amended— 

16 (A) in subsection (d)(1), by striking ‘‘Offi17 cers’’ and inserting ‘‘Except as provided in sub18 section (g), officers’’; and 

19 (B) in subsection (f), in the second sen20 tence— 

21 (i) by inserting ‘‘84,’’ before ‘‘87,’’; 

22 and 

23 (ii) by striking ‘‘this subsection.’’ and 

24 inserting ‘‘this subsection or subsection 

25 (g).’’. 


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1 (b) SPECIAL RULES RELATING TO FERS COVERAGE

2 FOR COVERED POSTAL EMPLOYEES.— 

3 (1) IN GENERAL.—Subchapter II of chapter 84 

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

5 at the end the following: 

6 ‘‘§ 8426. Postal Service retirement 

7 ‘‘The application of sections 8422 and 8423 of this 

8 title and subchapters III and VII of this chapter with re9 spect to an officer or employee of the Postal Service may 

10 be modified as provided under section 1005(g) of title 

11 39.’’. 

12 (2) TECHNICAL AND CONFORMING AMEND13 MENTS.—The table of sections for chapter 84 of title 

14 5, United States Code, is amended by adding at the 

15 end the following: 

‘‘8426. Postal Service retirement.’’. 

16 SEC. 103. RESTRUCTURING OF PAYMENTS FOR RETIREE 

17 HEALTH BENEFITS. 

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

19 5, United States Code, is amended by striking ‘‘through 

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

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

22 of enactment of the Postal Reform Act of 2013’’. 

23 (b) POSTAL SERVICE RETIREE HEALTH BENEFITS

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

25 amended— 


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1 (1) in subsection (d)— 

2 (A) by striking paragraph (2) and insert3 ing the following: 

4 ‘‘(2)(A) Not later than June 30, 2016, the Office 

5 shall compute, and by June 30 of each succeeding year, 

6 the Office shall recompute, a schedule including a series 

7 of annual installments which provide for the liquidation 

8 of the amount described under subparagraph (B) (regard9 less of whether the amount is a liability or surplus) by 

10 September 30, 2052, or within 15 years, whichever is 

11 later, including interest at the rate used in the computa12 tions under this subsection. 

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

14 the amount, as of the date on which the applicable com15 putation or recomputation under subparagraph (A) is 

16 made, that is equal to the difference between— 

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

18 liability as of September 30 of the most recently 

19 ended fiscal year; and 

20 ‘‘(ii) the value of the assets of the Postal Re21 tiree Health Benefits Fund as of September 30 of 

22 the most recently ended fiscal year.’’; 

23 (B) in paragraph (3)— 

24 (i) in subparagraph (A)— 


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

2 ‘‘and’’ at the end; 

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

4 semicolon at the end and inserting a 

5 period; and 

6 (III) by striking clauses (v) 

7 through (x); and 

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

9 ‘‘2017’’ and inserting ‘‘2016’’; 

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

11 follows: 

12 ‘‘(4) Computations under this subsection shall 

13 be based on— 

14 ‘‘(A) economic and actuarial methods and 

15 assumptions consistent with the methods and 

16 assumptions used in determining the Postal 

17 surplus or supplemental liability under section 

18 8348(h); and 

19 ‘‘(B) any other methods and assumptions, 

20 including a health care cost trend rate, that the 

21 Director of the Office determines to be appro22 priate.’’; and 

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

24 ‘‘(7) In this subsection, the term ‘Postal Service 

25 actuarial liability’ means the difference between— 


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1 ‘‘(A) the net present value of future pay2 ments required under section 8906(g)(2)(A) for 

3 current and future United States Postal Service 

4 annuitants; and 

5 ‘‘(B) the net present value as computed 

6 under paragraph (1) attributable to the future 

7 service of United States Postal Service employ8 ees.’’; and 

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

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

11 be subject to section 104 of the Postal Reform Act of 

12 2013.’’. 

13 (c) CANCELLATION OF CERTAIN UNPAID OBLIGA14 TIONS OF THE POSTAL SERVICE.—Any obligation of the 

15 Postal Service under section 8909a(d)(3)(A) of title 5, 

16 United States Code, as in effect on the day before the date 

17 of enactment of this Act, that remains unpaid as of such 

18 date of enactment is cancelled. 

19 (d) TECHNICAL AND CONFORMING AMENDMENT.— 

20 The heading of section 8909a of title 5, United States 

21 Code, is amended by striking ‘‘Benefit’’ and inserting 

22 ‘‘Benefits’’. 

23 SEC. 104. POSTAL SERVICE HEALTH BENEFITS PLAN. 

24 (a) DEFINITIONS.—In this section— 


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1 (1) the term ‘‘bargaining representative’’ means 

2 a bargaining representative recognized under section 

3 1203 of title 39, United States Code; 

4 (2) the term ‘‘covered employee’’ means an offi5 cer or employee of the Postal Service who is— 

6 (A) represented by a bargaining represent7 ative; or 

8 (B) a member of the Postal Career Execu9 tive Service; 

10 (3) the term ‘‘Federal Employee Health Bene11 fits Program’’ means the health benefits program 

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

13 (4) the term ‘‘participant’’ means— 

14 (A) a covered employee who is— 

15 (i) represented by a bargaining rep16 resentative that enters into an agreement 

17 to establish a Postal Service Health Bene18 fits Plan; or 

19 (ii) if any bargaining representative 

20 enters into an agreement to establish a 

21 Postal Service Health Benefits Plan, a 

22 member of the Postal Career Executive 

23 Service; and 

24 (B) an officer or employee of the Postal 

25 Service who— 


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1 (i) is not a covered employee; and 

2 (ii) elects to participate in the Postal 

3 Service Health Benefits Plan; and 

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

5 Plan’’ means the health benefits plan that may be 

6 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 individually or jointly with 

11 bargaining representatives and enter into a collective 

12 bargaining agreement or agreements with 1 or more 

13 of those bargaining representatives to establish a 

14 single Postal Service Health Benefits Plan that— 

15 (A) satisfies the conditions under sub16 section (c); and 

17 (B) may be a health benefits plan offered 

18 under chapter 89 of title 5, United States Code. 

19 (2) CONSULTATION WITH OPM.—The Postal 

20 Service and bargaining representatives shall conduct 

21 negotiations under paragraph (1) in consultation 

22 with the Director of the Office of Personnel Manage23 ment. 

24 (3) CONSULTATION WITH SUPERVISORY AND

25 MANAGERIAL PERSONNEL.—In the course of negoVerDate Mar 15 2010 23:36 Aug 08, 2013 Jkt 029200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\S1486.IS S1486

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1 tiations under paragraph (1), the Postal Service 

2 shall consult with each of the organizations of super3 visory and other managerial personnel that are rec4 ognized under section 1004 of title 39, United 

5 States Code, concerning the views of the personnel 

6 represented by each of those organizations. 

7 (4) DISPUTES.—If the Postal Service or a bar8 gaining representative offers a proposed agreement 

9 for negotiation under paragraph (1) and the parties 

10 do not reach agreement within 180 days after the 

11 commencement of collective bargaining on the pro12 posal, the procedures under section 1207(d) of title 

13 39, United States Code, shall apply upon the elec14 tion of any party to the negotiations. 

15 (5) TIME LIMITATION.—The authority under 

16 this subsection shall extend until the date that is 2 

17 years after the date of enactment of this Act. 

18 (c) POSTAL SERVICE HEALTH BENEFITS PLAN.— 

19 The Postal Service Health Benefits Plan— 

20 (1) shall— 

21 (A) be available for participation by— 

22 (i) all covered employees represented 

23 by a bargaining representative entering an 

24 agreement described in subsection (b)(1); 

25 and 


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1 (ii) all covered employees who are 

2 members of the Postal Career Executive 

3 Service; 

4 (B) be available for participation by any 

5 officer or employee of the Postal Service who is 

6 not a covered employee, at the option solely of 

7 that officer or employee; 

8 (C) provide coverage that is actuarially 

9 equivalent to the coverage offered under the 

10 types of plans available under the Federal Em11 ployee Health Benefits Program, as determined 

12 by the Director of the Office of Personnel Man13 agement; 

14 (D) be administered in a manner deter15 mined in an agreement or agreements reached 

16 under subsection (b); 

17 (E) unless the Postal Service Health Bene18 fits Plan is a health benefits plan offered under 

19 chapter 89 of title 5, United States Code, pro20 vide for transition of coverage under the Fed21 eral Employee Health Benefits Program of all 

22 participants in the Postal Service Health Bene23 fits Plan to coverage under the Postal Service 

24 Health Benefits Plan; and 


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1 (F) if the Postal Service Health Benefits 

2 Plan is a health benefits plan offered under 

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

4 except as provided in section 8903c of title 5, 

5 United States Code, as added by section 105 of 

6 this Act, provide that the Postal Service Health 

7 Benefits Plan is the only health benefits plan 

8 under the Federal Employee Health Benefits 

9 Program in which a participant in the Postal 

10 Service Health Benefits Plan may participate as 

11 an employee; 

12 (2) may provide dental benefits; and 

13 (3) may provide vision benefits. 

14 (d) AGREEMENT AND IMPLEMENTATION.—If an 

15 agreement or agreements are reached under subsection (b) 

16 to provide a Postal Service Health Benefits Plan— 

17 (1) the Postal Service shall implement the Post18 al Service Health Benefits Plan; 

19 (2) the Postal Service Health Benefits Plan 

20 shall constitute an agreement between the collective 

21 bargaining representatives and the Postal Service for 

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

23 States Code; and 

24 (3) unless the Postal Service Health Benefits 

25 Plan is a health benefits plan offered under chapter 


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1 89 of title 5, United States Code, participants in the 

2 Postal Service Health Benefits Plan may not partici3 pate as employees in the Federal Employees Health 

4 Benefits Program. 

5 (e) GOVERNMENTAL PLAN.—The Postal Service 

6 Health Benefits Plan shall be a governmental plan as that 

7 term is defined under section 3(32) of Employee Retire8 ment Income Security Act of 1974 (29 U.S.C. 1002(32)). 

9 (f) REPORT.—Not later than 6 months after the ear10 lier of the date on which any agreement is reached under 

11 subsection (b) and June 30, 2016, the Postal Service shall 

12 submit a report to the Committee on Homeland Security 

13 and Governmental Affairs of the Senate and the Com14 mittee on Oversight and Government Reform of the House 

15 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. 105. MEDICARE COORDINATION EFFORTS FOR POST22 AL SERVICE EMPLOYEES AND RETIREES. 

23 (a) ADDITIONAL ENROLLMENT OPTIONS UNDER

24 FEDERAL EMPLOYEES HEALTH BENEFITS PLANS.— 


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1 Chapter 89 of title 5, United States Code, is amended by 

2 inserting after section 8903b the following: 

3 ‘‘§ 8903c. Coordination with Medicare for Postal Serv4 ice employees and annuitants 

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

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

7 year in which health benefits plans are administered 

8 under this chapter; 

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

10 Medicare program for hospital insurance benefits 

11 under part A of title XVIII of the Social Security 

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

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

14 Medicare program for supplementary medical insur15 ance benefits under part B of title XVIII of the So16 cial Security Act (42 U.S.C. 1395j et seq.); and 

17 ‘‘(4) the term ‘Postal Service employee or annu18 itant’ means an individual who is— 

19 ‘‘(A) an employee of the Postal Service 

20 covered under this chapter; or 

21 ‘‘(B) an annuitant covered under this 

22 chapter whose Government contribution is paid 

23 by the Postal Service or the Postal Service Re24 tiree Health Benefits Fund under section 

25 8906(g)(2). 


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1 ‘‘(b) ENROLLMENT OPTIONS.— 

2 ‘‘(1) ESTABLISHMENT.— 

3 ‘‘(A) IN GENERAL.—For contract years be4 ginning on or after January 1, 2015, the Office 

5 shall establish enrollment options for health 

6 benefits plans that are open only to Postal 

7 Service employees and annuitants, and family 

8 members of a Postal Service employee or annu9 itant, who are enrolled in Medicare part A and 

10 Medicare part B. 

11 ‘‘(B) ADDITIONAL PLANS.—The enrollment 

12 options established under this subsection shall 

13 be in addition to any other health benefit plan 

14 or enrollment option otherwise available to 

15 Postal Service employees or annuitants under 

16 this chapter and shall not affect the eligibility 

17 of a Postal Service employee or annuitant for 

18 any another health benefit plan or enrollment 

19 option under this chapter. 

20 ‘‘(2) ENROLLMENT ELIGIBILITY.— 

21 ‘‘(A) IN GENERAL.—Any Postal Service 

22 employee or annuitant, or family member of a 

23 Postal Service employee or annuitant, who is 

24 enrolled in Medicare part A and Medicare part 


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1 B may enroll in 1 of the enrollment options es2 tablished under paragraph (1). 

3 ‘‘(B) DETERMINATION OF ELIGIBILITY.— 

4 Eligibility to enroll in an enrollment option es5 tablished under paragraph (1) shall be deter6 mined without regard to the requirements 

7 under section 8905(b). 

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

9 ensure that the aggregate actuarial value of coverage 

10 under the enrollment options established under this 

11 subsection, in combination with the value of coverage 

12 under Medicare part A and Medicare part B, shall 

13 be not less than the actuarial value of the most 

14 closely corresponding enrollment options for each 

15 plan available under section 8905, in combination 

16 with the value of coverage under Medicare part A 

17 and Medicare part B. 

18 ‘‘(4) ENROLLMENT OPTIONS.— 

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

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

23 Service employees or annuitants enrolled in 

24 Medicare part A and Medicare part B; 


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

2 Postal Service employees or annuitants 

3 and family members who are each enrolled 

4 in Medicare part A and Medicare part B; 

5 and 

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

7 Postal Service employees or annuitants— 

8 ‘‘(I) who are enrolled in Medicare 

9 part A and Medicare part B; and 

10 ‘‘(II) the family members of 

11 whom are not enrolled in Medicare 

12 part A or Medicare part B. 

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

14 may establish more specific enrollment options 

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

17 ‘‘(5) REDUCED PREMIUMS TO ACCOUNT FOR

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

20 (4), the Office shall— 

21 ‘‘(A) establish a separate risk pool for indi22 viduals eligible for coverage under any of those 

23 options; and 

24 ‘‘(B) ensure that— 


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1 ‘‘(i) the premiums are reduced from 

2 the premiums otherwise established under 

3 this chapter to directly reflect the full cost 

4 savings to the health benefits plans due to 

5 the complete coordination of benefits with 

6 Medicare part A and Medicare part B for 

7 Postal Service employees or annuitants, or 

8 family members of Postal Service employ9 ees or annuitants, who are enrolled in 

10 Medicare part A and Medicare part B; and 

11 ‘‘(ii) the cost savings described under 

12 clause (i) result solely in the reduction 

13 of— 

14 ‘‘(I) the premiums paid by the 

15 Postal Service employee or annuitant; 

16 and 

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

19 other employer. 

20 ‘‘(c) POSTAL SERVICE CONSULTATION.—The Office 

21 shall establish the enrollment options and premiums under 

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

23 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

24 The table of sections for chapter 89 of title 5, United 


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1 States Code, is amended by inserting after the item relat2 ing to section 8903b the following: 

‘‘8903c. Coordination with Medicare for Postal Service employees and annuitants.’’. 

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

4 subsection (a) shall apply with respect to contract years 

5 beginning on or after January 1, 2015. 

6 (d) SPECIAL ENROLLMENT PERIOD FOR POSTAL

7 SERVICE EMPLOYEES AND ANNUITANTS.— 

8 (1) SPECIAL ENROLLMENT PERIOD.—Section 

9 1837 of the Social Security Act (42 U.S.C. 1395p) 

10 is amended by adding at the end the following new 

11 subsection: 

12 ‘‘(m)(1) In the case of any individual who, as of the 

13 date of enactment of the Postal Reform Act of 2013, is 

14 a Postal Service employee or annuitant (as defined in sec15 tion 8903c(a) of title 5, United States Code) at the time 

16 the individual is entitled to part A under section 226 or 

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

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

19 individual’s initial enrollment period, there shall be a spe20 cial enrollment period described in paragraph (2). 

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

22 paragraph, with respect to an individual, is the 1-year pe23 riod beginning on July 1, 2014. 


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

2 the special enrollment period provided under paragraph 

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

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

5 (2) WAIVER OF INCREASE OF PREMIUM.—Sec6 tion 1839(b) of the Social Security Act (42 U.S.C. 

7 1395r(b)) is amended by striking ‘‘(i)(4) or (l)’’ and 

8 inserting ‘‘(i)(4), (l), or (m)’’. 

9 SEC. 106. LABOR DISPUTES. 

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

11 amended— 

12 (1) in paragraph (2)— 

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

14 (B) by striking the last sentence and in15 serting ‘‘The arbitration board shall render a 

16 decision not later than 45 days after the date 

17 of its appointment.’’; and 

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

19 ‘‘(B) In rendering a decision under this 

20 paragraph, the arbitration board shall consider 

21 such relevant factors as the financial condition 

22 of the Postal Service.’’; and 

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

24 ‘‘(4) Nothing in this section may be construed 

25 to limit the relevant factors that the arbitration 


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1 board may take into consideration in rendering a de2 cision under paragraph (2).’’. 

3 TITLE II—POSTAL SERVICE 

4 OPERATIONS 

5 SEC. 201. MAINTENANCE OF DELIVERY SERVICE STAND6 ARDS. 

7 During the 2-year period beginning on the date of 

8 enactment of this Act, the Postal Service shall maintain 

9 the service standards for first-class mail and periodicals 

10 under part 121 of title 39, Code of Federal Regulations, 

11 as in effect on the date of enactment of this Act. 

12 SEC. 202. PRESERVING MAIL PROCESSING CAPACITY. 

13 (a) DEFINITION OF POSTAL FACILITY.—In this sec14 tion, the term ‘‘postal facility’’ means a processing and 

15 distribution center, processing and distribution facility, 

16 network distribution center, or other facility that is oper17 ated by the Postal Service, the primary function of which 

18 is to sort and process mail. 

19 (b) MORATORIUM ON CLOSURES OF POSTAL FACILI20 TIES.—During the 2-year period beginning on the date of 

21 enactment of this Act, the Postal Service may not close 

22 or consolidate any postal facility that is open as of the 

23 date of enactment of this Act. 


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1 SEC. 203. PRESERVING COMMUNITY POST OFFICES. 

2 Section 404(d) of title 39, United States Code, is 

3 amended— 

4 (1) by redesignating paragraphs (5) and (6) as 

5 paragraphs (6) and (7), respectively; 

6 (2) by striking paragraphs (1) through (4) and 

7 inserting the following: 

8 ‘‘(d)(1) In this subsection, the term ‘post office’ 

9 means a post office, post office branch, post office classi10 fied station, or other facility that is operated by the Postal 

11 Service, the primary function of which is to provide retail 

12 postal services. 

13 ‘‘(2) The Postal Service, prior to making a deter14 mination under subsection (a)(3) of this section as to the 

15 necessity for the discontinuance of any post office, shall, 

16 to the extent practicable and appropriate— 

17 ‘‘(A) consider whether— 

18 ‘‘(i) to discontinue the post office and an19 other post office located within a reasonable 

20 distance; 

21 ‘‘(ii) instead of discontinuing the post of22 fice— 

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

24 day that the post office operates; or 

25 ‘‘(II) to continue operating the post 

26 office for the same number of hours a day; 


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

2 or less than full, retail services in the commu3 nity served by the post office; or 

4 ‘‘(iv) to provide postal services to the com5 munity served by the post office— 

6 ‘‘(I) through a letter carrier; or 

7 ‘‘(II) by co-locating postal services at 

8 a commercial or government entity; 

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

10 post office an opportunity to present their views, 

11 which may be by nonbinding survey conducted by 

12 mail; and 

13 ‘‘(C) if the Postal Service determines to dis14 continue the post office, provide adequate public no15 tice of its intention to discontinue such post office 

16 at least 60 days prior to the proposed date of such 

17 discontinuance to persons served by such post office. 

18 ‘‘(3) The Postal Service, in making a determination 

19 whether or not to discontinue a post office— 

20 ‘‘(A) shall consider, to the extent practicable 

21 and appropriate— 

22 ‘‘(i) the effect of the discontinuance on the 

23 community served by such post office; 


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1 ‘‘(ii) the effect of the discontinuance on 

2 businesses, including small businesses, in the 

3 area; 

4 ‘‘(iii) the effect of such discontinuance on 

5 employees of the Postal Service employed at 

6 such office; 

7 ‘‘(iv) whether such discontinuance is con8 sistent with the policy of the Government, as 

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

10 Postal Service shall provide a maximum degree 

11 of effective and regular postal services to rural 

12 areas, communities, and small towns where post 

13 offices are not self-sustaining; 

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

15 served by the post office lacks access to Inter16 net phone service; 

17 ‘‘(vi) the extent to which postal customers 

18 served by the post office would continue after 

19 the discontinuance to receive substantially simi20 lar access to essential items and time-sensitive 

21 communications; 

22 ‘‘(vii) the proximity and accessibility of 

23 other post offices; 


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1 ‘‘(viii) whether substantial economic sav2 ings to the Postal Service would result from 

3 such discontinuance; and 

4 ‘‘(ix) such other factors as the Postal Serv5 ice determines are necessary; and 

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

7 provision of the Occupational Safety and Health Act 

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

9 ‘‘(4) Any determination of the Postal Service to dis10 continue a post office shall be in writing and shall include 

11 the findings of the Postal Service, to the extent practicable 

12 and appropriate, with respect to the considerations re13 quired to be made under paragraph (3) of this subsection. 

14 Such determination and findings shall be made available 

15 to persons served by such post office by public notice. 

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

17 discontinue a post office until 60 days after its written 

18 determination is made available to persons served by such 

19 post office. 

20 ‘‘(B) The Postal Service shall take no action to dis21 continue a post office until 60 days after the Postal Serv22 ice provides written notice of the determination under 

23 paragraph (4) to the State board of elections for the State 

24 in which the post office is located.’’; 


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1 (3) in paragraph (6), as redesignated by this 

2 section— 

3 (A) by striking ‘‘close or consolidate’’ and 

4 inserting ‘‘discontinue’’; and 

5 (B) by striking ‘‘paragraph (3)’’ and in6 serting ‘‘paragraph (4)’’; and 

7 (4) in paragraph (7), as redesignated by this 

8 section, by striking ‘‘paragraph (5)’’ and inserting 

9 ‘‘paragraph (6)’’. 

10 SEC. 204. CHANGES TO MAIL DELIVERY SCHEDULE. 

11 (a) LIMITATION ON CHANGE IN SCHEDULE.—The 

12 Postal Service may establish a general, nationwide delivery 

13 schedule of 5 or fewer days per week to street addresses 

14 under the authority of the Postal Service under title 39, 

15 United States Code, if— 

16 (1) the Postal Service determines that such a 

17 delivery schedule would contribute to the achieve18 ment of long-term solvency; and 

19 (2) not less than 1 year has elapsed since the 

20 date of enactment of this Act. 

21 (b) IMPLEMENTATION.— 

22 (1) IN GENERAL.—If the Postal Service intends 

23 to establish a change in delivery schedule under sub24 section (a), the Postal Service, to the extent prac25 ticable and appropriate, shall— 


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1 (A) identify customers and communities 

2 for which the change may have a dispropor3 tionate, negative impact, including small busi4 ness customers and the customers identified as 

5 ‘‘particularly affected’’ in the Advisory Opinion 

6 on Elimination of Saturday Delivery issued by 

7 the Commission on March 24, 2011; 

8 (B) develop measures to ameliorate any 

9 disproportionately negative impact the change 

10 would have on customers and communities iden11 tified under paragraph (1); and 

12 (C) not later than 3 months before the ef13 fective date for any proposed change, submit a 

14 report that includes the determination required 

15 under subsection (a)(1) and details any meas16 ures developed pursuant to subparagraph (B) of 

17 this paragraph to— 

18 (i) the Committee on Homeland Secu19 rity and Governmental Affairs of the Sen20 ate; 

21 (ii) the Committee on Oversight and 

22 Government Reform of the House of Rep23 resentatives; and 

24 (iii) the Commission. 


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1 (2) RULE OF CONSTRUCTION.—Nothing in this 

2 subsection shall be construed to affect the authority 

3 of the Postal Service to establish a nationwide deliv4 ery schedule of 5 or fewer days per week if the con5 ditions in subsection (a) are satisfied. 

6 (c) GAO REPORT.—Not later than 270 days after the 

7 date of enactment of this Act, the Comptroller General 

8 of the United States shall submit to the Committee on 

9 Homeland Security and Governmental Affairs of the Sen10 ate and the Committee on Oversight and Government Re11 form of the House of Representatives a report evaluating 

12 the extent to which a change in delivery schedule would 

13 improve the financial condition of the Postal Service and 

14 assist in the efforts of the Postal Service to achieve long15 term solvency, taking into consideration other ongoing and 

16 planned efforts to increase revenue and reduce costs, con17 sistent with the requirements of this Act. 

18 (d) RULES OF CONSTRUCTION.—Nothing in this sec19 tion shall be construed to— 

20 (1) require the decrease or increase in delivery 

21 frequency for any route for which the Postal Service 

22 provided delivery on fewer than 6 days per week as 

23 of the date of enactment of this Act; 

24 (2) authorize any change in— 


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1 (A) the days and times that postal retail 

2 service or any mail acceptance is available at 

3 postal retail facilities or processing facilities; or 

4 (B) the locations at which postal retail 

5 service or mail acceptance occurs at postal re6 tail facilities or processing facilities; 

7 (3) require any change in the frequency of de8 livery to a post office box; 

9 (4) prohibit the collection or delivery of a com10 petitive mail product on a weekend, a recognized 

11 Federal holiday, or any other specific day of the 

12 week; or 

13 (5) prohibit the Postal Service from exercising 

14 its authority to make changes to processing or retail 

15 networks. 

16 (e) PACKAGES.—Notwithstanding any other provision 

17 of this section, for a period of not less than 2 years, begin18 ning on the date of enactment of this Act, the Postal Serv19 ice shall provide package service— 

20 (1) 6 days per week to each street address that 

21 was eligible to receive package service 6 days per 

22 week as of January 1, 2013; and 

23 (2) 7 days per week to each street address for 

24 which the Postal Service determines that such servVerDate Mar 15 2010 23:36 Aug 08, 2013 Jkt 029200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\S1486.IS S1486

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1 ice provides an economic benefit to the Postal Serv2 ice. 

3 (f) MAILBOX ACCESS.—If the Postal Service estab4 lishes a general, nationwide delivery schedule of 5 or fewer 

5 days per week consistent with the provisions of this sec6 tion, the Postal Service shall amend the Mailing Standards 

7 of the United States, Domestic Mail Manual to ensure 

8 that the provisions of section 508.3.2.10 of such manual, 

9 as in effect on January 1, 2013, shall apply on any day 

10 on which the Postal Service does not deliver the mail 

11 under the established delivery schedule. 

12 SEC. 205. DELIVERY POINT MODERNIZATION. 

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

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

15 end the following: 

16 ‘‘§ 3692. Delivery point modernization 

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

18 definitions shall apply: 

19 ‘‘(1) CENTRALIZED DELIVERY.—The term ‘cen20 tralized delivery’ means a primary mode of mail de21 livery whereby mail is delivered to a group or cluster 

22 of mail receptacles at a single location. 

23 ‘‘(2) CURBSIDE DELIVERY.—The term ‘curbside 

24 delivery’ means a primary mode of mail delivery 

25 whereby mail is delivered to a mail receptacle that 


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1 is situated at the edge of a public sidewalk abutting 

2 a road or curb, at a road, or at a curb. 

3 ‘‘(3) DELIVERY POINT.—The term ‘delivery 

4 point’ means a mailbox or other receptacle to which 

5 mail is delivered. 

6 ‘‘(4) DISTRICT OFFICE.—The term ‘district of7 fice’ means the central office of an administrative 

8 field unit with responsibility for postal operations in 

9 a designated geographic area (as defined under reg10 ulations, directives, or other guidance of the Postal 

11 Service). 

12 ‘‘(5) DOOR DELIVERY.—The term ‘door deliv13 ery’— 

14 ‘‘(A) means a primary mode of mail deliv15 ery whereby mail is— 

16 ‘‘(i) delivered to a mail receptacle at 

17 or near a postal customer’s door; or 

18 ‘‘(ii) hand-delivered to a postal cus19 tomer; and 

20 ‘‘(B) does not include curbside or central21 ized delivery. 

22 ‘‘(6) PRIMARY MODE OF MAIL DELIVERY.—The 

23 term ‘primary mode of mail delivery’ means the typ24 ical method by which the Postal Service delivers mail 

25 to the delivery point of a postal customer. 


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1 ‘‘(b) POLICY.—Except as otherwise provided in this 

2 section, including paragraphs (4) and (5) of subsection 

3 (c), it shall be the policy of the Postal Service to use the 

4 primary mode of mail delivery that is most cost-effective 

5 and is in the best long-term interest of the Postal Service. 

6 ‘‘(c) CONVERSION TO OTHER DELIVERY MODES.— 

7 ‘‘(1) NEW ADDRESSES.—Except as provided in 

8 paragraphs (4) and (5), the Postal Service shall pro9 vide centralized delivery to new addresses established 

10 after the date of enactment of the Postal Reform 

11 Act of 2013, or if centralized delivery is not prac12 ticable shall provide curbside delivery. 

13 ‘‘(2) BUSINESS ADDRESS CONVERSION.—The 

14 Postal Service shall carry out a program to convert 

15 business addresses with door delivery on the date of 

16 enactment of the Postal Reform Act of 2013 to cen17 tralized delivery or to curbside delivery. 

18 ‘‘(3) RESIDENTIAL ADDRESS CONVERSION.— 

19 ‘‘(A) IDENTIFICATION.—Not later than 9 

20 months after the date of enactment of the Post21 al Reform Act of 2013, the head of each dis22 trict office of the Postal Service shall identify 

23 residential addresses within the district office’s 

24 service area that are appropriate candidates for 

25 conversion from door delivery to another priVerDate Mar 15 2010 23:36 Aug 08, 2013 Jkt 029200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\S1486.IS S1486

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1 mary mode of delivery, in accordance with 

2 standards established by the Postal Service. 

3 ‘‘(B) VOLUNTARY CONVERSION.—Not later 

4 than 1 year after the date of enactment of the 

5 Postal Reform Act of 2013, and consistent with 

6 subsection (b) and paragraph (4), the Postal 

7 Service shall begin implementation of a pro8 gram to convert, on a voluntary basis, the ad9 dresses identified under subparagraph (A) from 

10 door delivery to a more cost-effective primary 

11 mode of delivery. 

12 ‘‘(C) PROCEDURES.—In pursuing conver13 sion under subparagraph (B), the Postal Serv14 ice shall establish procedures to— 

15 ‘‘(i) solicit and consider input from 

16 postal customers, State and local govern17 ments, local associations, and property 

18 owners; and 

19 ‘‘(ii) place centralized delivery points 

20 in locations that maximize delivery effi21 ciency, ease of use for postal customers, 

22 and respect for private property rights. 

23 ‘‘(4) EXCEPTIONS.—In establishing a primary 

24 mode of mail delivery for new addresses under para25 graph (1) or converting the primary mode of mail 


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1 delivery for an address under paragraph (2) or (3), 

2 the Postal Service may provide door delivery if— 

3 ‘‘(A) a physical barrier precludes the effi4 cient provision of centralized delivery or 

5 curbside delivery; 

6 ‘‘(B) the address is located in a registered 

7 historic district, as that term is defined in sec8 tion 47(c)(3)(B) of the Internal Revenue Code 

9 of 1986; or 

10 ‘‘(C) the Postal Service determines that 

11 the provision of centralized delivery or curbside 

12 delivery would be impractical, would not be 

13 cost-effective, or would not be in the best long14 term interest of the Postal Service. 

15 ‘‘(5) WAIVER FOR PHYSICAL HARDSHIP.—The 

16 Postal Service shall establish and maintain a waiver 

17 program under which, upon the application of a 

18 postal customer, door delivery may be continued or 

19 provided to a delivery point if— 

20 ‘‘(A) centralized delivery or curbside deliv21 ery would, but for this paragraph, be the pri22 mary mode of mail delivery for the delivery 

23 point; and 


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1 ‘‘(B) a physical hardship prevents the post2 al customer from receiving his or her mail 

3 through any other form of mail delivery.’’. 

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

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

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

‘‘3692. Delivery point modernization.’’. 

7 SEC. 206. POSTAL SERVICES FOR MARKET-DOMINANT 

8 PRODUCTS. 

9 (a) IN GENERAL.—Strike section 3661 of title 39, 

10 United States Code, and insert the following: 

11 ‘‘§ 3661. Postal services for market-dominant prod12 ucts 

13 ‘‘(a) GENERAL OBLIGATION.—The Postal Service 

14 shall develop and promote adequate and efficient postal 

15 services with respect to its market-dominant products. 

16 ‘‘(b) CHANGE IN SERVICE.—The Board of Governors 

17 of the Postal Service is authorized to determine whether 

18 there should be a change in the nature of postal service 

19 provided for market-dominant products that will generally 

20 affect such service on a nationwide or substantially nation21 wide basis. The authority under this subsection may not 

22 be delegated to the Postmaster General or to any other 

23 individual or entity. 

24 ‘‘(c) NOTICE, COMMENT, AND REVIEW.— 

25 ‘‘(1) NOTICE.— 


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1 ‘‘(A) IN GENERAL.—Not later than 60 

2 days before the date on which any change in 

3 service under subsection (b) is implemented, the 

4 Board of Governors shall provide public notice 

5 of the proposed change in service implementa6 tion of the proposed change, including any ad7 justment in classes or rates proposed to be 

8 made under this section. 

9 ‘‘(B) PUBLICATION.—The notice required 

10 by subparagraph (A) shall be— 

11 ‘‘(i) published in the Federal Register 

12 and on the website of the Postal Service; 

13 and 

14 ‘‘(ii) provided to the Postal Regu15 latory Commission. 

16 ‘‘(C) CONTENTS.—The notice required by 

17 subparagraph (A) shall describe the proposed 

18 change in service, and address the consistency 

19 of the change with the policies of this title, in20 cluding its effect on the provision of universal 

21 postal service. 

22 ‘‘(2) PUBLIC COMMENT.—The Board of Gov23 ernors shall solicit and receive public comments on 

24 any proposed change in service under subsection (b). 

25 The Board shall give interested persons an opporVerDate Mar 15 2010 23:36 Aug 08, 2013 Jkt 029200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\S1486.IS S1486

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1 tunity to comment on the proposed change in service 

2 through the submission of written data, views, or ar3 guments, with or without opportunity for oral pres4 entation, and shall take any relevant matter pre5 sented into consideration in making its final deter6 mination regarding the proposed change in service. 

7 ‘‘(3) FINAL DECISION.—Not later than 30 days 

8 before the date on which a change in service under 

9 subsection (b) takes effect, the Board of Governors 

10 shall issue a final decision on the change in service 

11 which shall— 

12 ‘‘(A) be published in the Federal Register 

13 and on the website of the Postal Service; and 

14 ‘‘(B) include an explanation responding to 

15 all relevant comments received. 

16 ‘‘(4) COMMISSION REVIEW.—Any change in 

17 service made by the Board of Governors under this 

18 section shall be subject to review by the Commission 

19 under section 3662. 

20 ‘‘(d) LIMITATION.—Nothing in this section shall be 

21 construed as authorizing the making of changes under this 

22 section to the nature of service provided for competitive 

23 products. For a change that affects the nature of service 

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1 tive products, only the effect on market-dominant products 

2 shall be subject to this section.’’. 

3 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

4 The table of sections for chapter 36 of title 39, United 

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

6 section 3661 and inserting the following: 

‘‘3661. Postal services for market-dominant products.’’. 

7 TITLE III—POSTAL SERVICE 

8 REVENUE 

9 SEC. 301. POSTAL RATES. 

10 (a) MODERN RATE SYSTEM.— 

11 (1) IN GENERAL.—Chapter 36 of title 39, 

12 United States Code, is amended by striking section 

13 3622 and inserting the following: 

14 ‘‘§ 3622. Modern rate system 

15 ‘‘(a) AUTHORITY GENERALLY.—The Board of Gov16 ernors of the Postal Service shall establish, and may from 

17 time to time thereafter revise, a system of classes and 

18 rates for market-dominant products, consistent with the 

19 requirements of this section. The authority under this sec20 tion may not be delegated to the Postmaster General or 

21 to any other individual or body. 

22 ‘‘(b) OBJECTIVES.—Such system shall be designed to 

23 achieve the following objectives, each of which shall be ap24 plied in conjunction with the others: 


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1 ‘‘(1) To maximize incentives for the Postal 

2 Service to reduce costs and increase efficiency. 

3 ‘‘(2) To create predictability and stability in 

4 rates through the establishment of a schedule where5 by rates change at regular intervals by predictable 

6 amounts. 

7 ‘‘(3) To maintain high quality service standards 

8 established under section 3691. 

9 ‘‘(4) To assure adequate revenues, including re10 tained earnings, to maintain financial stability. 

11 ‘‘(5) To establish and maintain a just and rea12 sonable schedule for rates and classifications, how13 ever the objective under this paragraph shall not be 

14 construed to prohibit the Board of Governors from 

15 making changes of unequal magnitude within, be16 tween, or among classes of mail. 

17 ‘‘(6) To enhance mail security and deter ter18 rorism. 

19 ‘‘(7) To allocate the total institutional costs of 

20 the Postal Service appropriately between market21 dominant and competitive products, in accordance 

22 with regulations established by the Postal Regu23 latory Commission under section 3633. 

24 ‘‘(c) FACTORS.—In establishing or revising such sys25 tem, the Board of Governors shall take into account— 


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1 ‘‘(1) the value of the mail service actually pro2 vided each class or type of mail service to both the 

3 sender and the recipient, including but not limited to 

4 the collection, mode of transportation, and priority 

5 of delivery; 

6 ‘‘(2) the direct and indirect postal costs attrib7 utable to each class or type of mail service through 

8 reliably identified causal relationships and that por9 tion of all other costs of the Postal Service reason10 ably assignable to such class or type; 

11 ‘‘(3) the effect of rate increases upon the gen12 eral public, business mail users, and enterprises in 

13 the private sector of the economy engaged in the de14 livery of mail matter other than letters; 

15 ‘‘(4) the available alternative means of sending 

16 and receiving letters and other mail matter at rea17 sonable costs; 

18 ‘‘(5) the simplicity of structure for the entire 

19 schedule and simple, identifiable relationships be20 tween the rates or fees charged the various classes 

21 of mail for postal services; 

22 ‘‘(6) the relative value to the people of the 

23 kinds of mail matter entered into the postal system 

24 and the desirability and justification for special clas25 sifications and services of mail; 


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1 ‘‘(7) the importance of providing classifications 

2 with extremely high degrees of reliability and speed 

3 of delivery and of providing those that do not re4 quire high degrees of reliability and speed of deliv5 ery; 

6 ‘‘(8) the desirability of special classifications for 

7 both postal users and the Postal Service in accord8 ance with the policies of this title; 

9 ‘‘(9) the educational, cultural, scientific, and in10 formational value to the recipient of mail matter; 

11 ‘‘(10) the need for the Postal Service to in12 crease its efficiency and reduce its costs, including 

13 infrastructure costs, to help maintain high quality, 

14 affordable postal services; 

15 ‘‘(11) the value to the Postal Service and postal 

16 users of promoting intelligent mail and of secure, 

17 sender-identified mail; and 

18 ‘‘(12) the policies of this title as well as such 

19 other factors as the Board of Governors determines 

20 appropriate. 

21 ‘‘(d) NOTICE, COMMENT, AND REVIEW.— 

22 ‘‘(1) NOTICE.—The Board of Governors shall 

23 provide notice of any adjustment in classes or rates 

24 proposed to be made under this section— 

25 ‘‘(A) not less than— 


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1 ‘‘(i) 90 days before implementation of 

2 any class or rate adjustment that affects 

3 all or substantially all market-dominant 

4 products; and 

5 ‘‘(ii) 45 days before implementation of 

6 any other class or rate adjustment; and 

7 ‘‘(B) to— 

8 ‘‘(i) the public, including by— 

9 ‘‘(I) publication in the Federal 

10 Register; and 

11 ‘‘(II) posting on Postal Service’s 

12 website; and 

13 ‘‘(ii) the Postal Regulatory Commis14 sion. 

15 ‘‘(2) PUBLIC COMMENT.—The Board of Gov16 ernors shall solicit and receive public comments on 

17 any proposed rate or class adjustment, and shall 

18 take such comments into account in making its final 

19 determination as to a rate or class adjustment. 

20 ‘‘(3) FINAL DECISION.—Not later than 10 days 

21 before a rate or class adjustment takes effect, the 

22 Board of Governors shall issue a final decision on 

23 the adjustment which shall— 

24 ‘‘(A) be published in the Federal Register 

25 and on the Postal Service’s website; and 


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1 ‘‘(B) include an explanation responding to 

2 all relevant comments received. 

3 ‘‘(4) COMMISSION REVIEW.—Any adjustment 

4 made by the Board of Governors under this section 

5 shall be subject to review by the Commission under 

6 section 3662. 

7 ‘‘(e) LIMITATIONS ON RATE ADJUSTMENTS.— 

8 ‘‘(1) ANNUAL LIMITATION.—The Board of Gov9 ernors may not increase rates under this section for 

10 market-dominant products as a whole by an annual 

11 percentage that exceeds the percentage change in 

12 the Consumer Price Index for All Urban Consumers 

13 unadjusted for seasonal variation over the most re14 cent available 12-month period preceding the date 

15 the Board of Governors provides notice of its inten16 tion to increase rates. 

17 ‘‘(2) CONDITIONS.— 

18 ‘‘(A) ROUNDING OF RATES AND FEES.— 

19 Nothing in this subsection shall preclude the 

20 Board of Governors from rounding rates and 

21 fees to the nearest whole integer, if the effect 

22 of such rounding does not cause the overall rate 

23 increase for any class to exceed the Consumer 

24 Price Index for All Urban Consumers. 


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1 ‘‘(B) USE OF UNUSED RATE AUTHOR2 ITY.— 

3 ‘‘(i) DEFINITION.—In this subpara4 graph, the term ‘unused rate adjustment 

5 authority’ means the difference between— 

6 ‘‘(I) the maximum amount of a 

7 rate adjustment that the Board of 

8 Governors is authorized to make in 

9 any year subject to the annual limita10 tion under paragraph (1); and 

11 ‘‘(II) the amount of the rate ad12 justment the Board of Governors ac13 tually makes in that year. 

14 ‘‘(ii) AUTHORITY.—Subject to clause 

15 (iii), the Postal Service may use any un16 used rate adjustment authority for any of 

17 the 5 years following the year such author18 ity occurred. 

19 ‘‘(iii) LIMITATIONS.—In exercising the 

20 authority under clause (ii) in any year, the 

21 Postal Service— 

22 ‘‘(I) may use unused rate adjust23 ment authority from more than 1 

24 year; 


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1 ‘‘(II) may use any part of the un2 used rate adjustment authority from 

3 any year; 

4 ‘‘(III) shall use the unused rate 

5 adjustment authority from the earliest 

6 year such authority first occurred and 

7 then each following year; and 

8 ‘‘(IV) may not exceed the annual 

9 limitation under paragraph (1) by 

10 more than 2 percentage points. 

11 ‘‘(3) EXIGENT CIRCUMSTANCES.—Notwith12 standing any limitation under subsection (d)(1) and 

13 paragraph (1) of this subsection, and provided there 

14 is not sufficient unused rate authority under para15 graph (2)(B), the Board of Governors may adjust 

16 rates on an expedited basis due to either extraor17 dinary or exceptional circumstances, provided that 

18 the Board of Governors unanimously determines, 

19 after notice and opportunity for public comment, 

20 that such adjustment is reasonable and equitable 

21 and necessary to enable the Postal Service, under 

22 best practices of honest, efficient, and economical 

23 management, to maintain and continue the develop24 ment of postal services of the kind and quality 

25 adapted to the needs of the United States. 


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1 ‘‘(4) EXPIRATION OF RATE CAP.—Any system 

2 of rates and classes established or revised by the 

3 Board of Governors under subsection (a) after De4 cember 20, 2016, shall not be subject to the limita5 tion in paragraph (1) of this subsection. 

6 ‘‘(f) WORKSHARE DISCOUNTS.— 

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

8 ‘workshare discount’ refers to rate discounts pro9 vided to mailers for the presorting, prebarcoding, 

10 handling, or transportation of mail, as further de11 fined by the Board of Governors under subsection 

12 (a). 

13 ‘‘(2) SCOPE.—The Board of Governors shall en14 sure that such discounts do not exceed the cost that 

15 the Postal Service avoids as a result of workshare 

16 activity, unless— 

17 ‘‘(A) the discount is— 

18 ‘‘(i) associated with a new postal serv19 ice, a change to an existing postal service, 

20 or with a new work share initiative related 

21 to an existing postal service; and 

22 ‘‘(ii) necessary to induce mailer behav23 ior that furthers the economically efficient 

24 operation of the Postal Service and the 

25 portion of the discount in excess of the 


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1 cost that the Postal Service avoids as a re2 sult of the workshare activity will be 

3 phased out over a limited period of time; 

4 ‘‘(B) the amount of the discount above 

5 costs avoided— 

6 ‘‘(i) is necessary to mitigate rate 

7 shock; and 

8 ‘‘(ii) will be phased out over time; 

9 ‘‘(C) the discount is provided in connection 

10 with a category of mail consisting exclusively of 

11 mail matter of educational, cultural, scientific, 

12 or informational value; or 

13 ‘‘(D) reduction or elimination of the dis14 count would— 

15 ‘‘(i) impede the efficient operation of 

16 the Postal Service; 

17 ‘‘(ii) lead to a loss of volume in the af18 fected category of mail and reduce the ag19 gregate contribution to the institutional 

20 costs of the Postal Service from the cat21 egory subject to the discount below what it 

22 otherwise would have been if the discount 

23 had not been reduced or eliminated; or 


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1 ‘‘(iii) result in a further increase in 

2 the rates paid by mailers not able to take 

3 advantage of the discount. 

4 ‘‘(3) NOTICE.—Whenever a workshare discount 

5 is established, the Board of Governors shall ensure 

6 that the notice provided under subsection (d)(1) in7 cludes— 

8 ‘‘(A) the reasons for establishing the dis9 count; 

10 ‘‘(B) the data, economic analyses, and 

11 other information relied on by the Board of 

12 Governors to justify the rate; and 

13 ‘‘(C) a certification that the discount will 

14 not adversely affect rates or services provided to 

15 users of postal services who do not take advan16 tage of the discount rate. 

17 ‘‘(g) NEGOTIATED SERVICE AGREEMENTS.—The 

18 Board of Governors shall ensure that any agreement be19 tween the Postal Service and a mailer that adjusts rates 

20 or classes in a manner that is specific to the mailer— 

21 ‘‘(1) is available on public and reasonable terms 

22 to similarly situated mailers; 

23 ‘‘(2) either— 

24 ‘‘(A) improves the net financial position of 

25 the Postal Service through reducing Postal 


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1 Service costs or increasing the overall contribu2 tion to the institutional costs of the Postal 

3 Service; or 

4 ‘‘(B) enhances the performance of mail 

5 preparation, processing, transportation, or other 

6 functions; and 

7 ‘‘(3) does not cause unreasonable harm to the 

8 marketplace. 

9 ‘‘(h) CONSIDERATION OF PRIOR COMMISSION DECI10 SIONS.—In making any determination under this section, 

11 including the construction and interpretation of the terms 

12 used in this section, the Board of Governors shall give con13 sideration to decisions of the Commission made prior to 

14 the date of enactment of the Postal Reform Act of 2013, 

15 and shall include an explanation of any deviation from 

16 such decisions in the notice required under subsection 

17 (d)(1).’’. 

18 (2) TECHNICAL AND CONFORMING AMEND19 MENT.—The table of sections for chapter 36 of title 

20 39, United States Code, is amended by striking the 

21 item relating to section 3622 and inserting the fol22 lowing: 

‘‘3622. Postal services for market-dominant products.’’. 

23 (b) REPEAL OF RATE PREFERENCES FOR QUALI24 FIED POLITICAL COMMITTEES.— 


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1 (1) IN GENERAL.—Section 3626 of title 39, 

2 United States Code, is amended— 

3 (A) by striking subsection (e); 

4 (B) by redesignating subsections (f), (g), 

5 and (h) as subsections (e), (f), and (g), respec6 tively; 

7 (C) by redesignating subsections (j) 

8 through (n) as subsections (h) through (l), re9 spectively; and 

10 (D) in subsection (h), as redesignated by 

11 paragraph (3)— 

12 (i) in paragraph (1)(D), by striking 

13 ‘‘subsection (m)(2)’’ and inserting ‘‘sub14 section (k)(2)’’; and 

15 (ii) in paragraph (3)(B), by striking 

16 ‘‘subsection (m)’’ and inserting ‘‘subsection 

17 (k)’’. 

18 (2) TECHNICAL AND CONFORMING AMEND19 MENT.—Section 3629 of title 39, United States 

20 Code, is amended— 

21 (A) by striking ‘‘is available’’ and inserting 

22 ‘‘was available’’; and 

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1 fore the date of enactment of the Postal Reform 

2 Act of 2013,’’. 

3 SEC. 302. NONPOSTAL SERVICES. 

4 (a) AUTHORIZATION OF NEW NONPOSTAL SERV5 ICES.— 

6 (1) IN GENERAL.—Section 404 of title 39, 

7 United States Code, is amended— 

8 (A) in subsection (a)— 

9 (i) by redesignating paragraphs (6) 

10 through (8) as paragraphs (7) through (9), 

11 respectively; and 

12 (ii) by inserting after paragraph (5) 

13 the following: 

14 ‘‘(6) on and after the date of enactment of the 

15 Postal Reform Act of 2013, and except as provided 

16 in subsection (e)— 

17 ‘‘(A) to provide other services that are not 

18 postal services, if the provision of such serv19 ices— 

20 ‘‘(i) uses the processing, transpor21 tation, delivery, retail network, or tech22 nology of the Postal Service; 

23 ‘‘(ii) is consistent with the public in24 terest and a demonstrated or potential 

25 public demand for— 


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1 ‘‘(I) the Postal Service, rather 

2 than another entity, to provide the 

3 services; or 

4 ‘‘(II) the Postal Service, in addi5 tion to or in partnership with another 

6 entity, to provide the services; 

7 ‘‘(iii) would not create unfair competi8 tion with the private sector, taking into 

9 consideration the extent to which the Post10 al Service will not, either by legal obliga11 tion or voluntarily, comply with any state 

12 or local requirements that generally apply 

13 to persons providing the services; 

14 ‘‘(iv) does not unreasonably interfere 

15 with or detract from the value of postal 

16 services, including— 

17 ‘‘(I) the cost and efficiency of 

18 postal services; and 

19 ‘‘(II) access to postal retail serv20 ice; 

21 ‘‘(v) will be undertaken in accordance 

22 with all Federal laws generally applicable 

23 to the provision of such services; and 

24 ‘‘(vi) 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) to classify a service provided under 

5 subparagraph (A) as an experimental product 

6 subject to section 3641;’’; 

7 (B) in subsection (e)(1), by inserting ‘‘and 

8 that was offered by the Postal Service on the 

9 date of enactment of the Postal Reform Act of 

10 2013’’ after ‘‘102(5)’’; and 

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

12 ‘‘(g) For purposes of chapters 20 and 36 of this title, 

13 nonpostal services provided under subsection (a)(6) shall 

14 be treated as competitive products.’’. 

15 (2) COMPLAINTS.—Section 3662(a) of title 39, 

16 United States Code, is amended by inserting 

17 ‘‘404(a)(6),’’ after ‘‘403(c),’’. 

18 (3) MARKET ANALYSIS.—During the 5-year pe19 riod beginning on the date of enactment of this Act, 

20 the Postal Service shall submit a copy of any market 

21 analysis provided to the Commission under section 

22 404(a)(6)(A)(vi) of title 39, United States Code, as 

23 amended by this section, to the Committee on 

24 Homeland Security and Governmental Affairs of the 


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1 Senate and the Committee on Oversight and Govern2 ment Reform of the House of Representatives. 

3 (b) GOVERNMENTAL SERVICES.—Section 411 of title 

4 39, United States Code, is amended— 

5 (1) in the second sentence, by striking ‘‘this 

6 section’’ and inserting ‘‘this subsection’’; 

7 (2) by inserting ‘‘(a)’’ before ‘‘Executive agen8 cies’’; and 

9 (3) by adding at the end the following— 

10 ‘‘(b)(1) The Postal Service is authorized to furnish 

11 property and services to States, local governments, and 

12 tribal governments, under such terms and conditions, in13 cluding reimbursability, as the Postal Service and the ap14 plicable State, local government, or tribal government 

15 shall determine appropriate. 

16 ‘‘(2) For purposes of this subsection— 

17 ‘‘(A) the term ‘local government’ means— 

18 ‘‘(i) a county, municipality, city, town, 

19 township, local public authority, school district, 

20 special district, intrastate district, council of 

21 governments, or regional or interstate govern22 ment entity; 

23 ‘‘(ii) an agency or instrumentality of an 

24 entity described in clause (i); or 


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1 ‘‘(iii) a rural community, an unincor2 porated town or village, or an instrumentality of 

3 a rural community or an unincorporated town 

4 or village; 

5 ‘‘(B) the term ‘State’ includes the District of 

6 Columbia, the Commonwealth of Puerto Rico, the 

7 United States Virgin Islands, Guam, American 

8 Samoa, the Commonwealth of the Northern Mariana 

9 Islands, and any other territory or possession of the 

10 United States; and 

11 ‘‘(C) the term ‘tribal government’ means the 

12 government of an Indian tribe, as that term is de13 fined in section 4(e) of the Indian Self-Determina14 tion Act (25 U.S.C. 450b(e)). 

15 ‘‘(c) The Postal Service shall submit to the Postal 

16 Regulatory Commission, together with the report required 

17 under section 3652, a report that details the costs and 

18 revenues of the services provided by the Postal Service 

19 under this section. 

20 ‘‘(d) In determining reimbursability under sub21 sections (a) and (b), the Postal Service shall ensure that 

22 each service provided under such subsections covers its 

23 costs attributable, as that term is defined in section 

24 3631(b).’’. 

25 (c) CONFORMING AMENDMENTS.— 


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1 (1) SECTION 404(e) OF TITLE 39.—Section 

2 404(e) of title 39, United States Code, is amended 

3 by striking paragraph (5) and inserting the fol4 lowing: 

5 ‘‘(5) Each nonpostal service authorized under this 

6 subsection shall be designated as market-dominant or 

7 competitive based on the designation of the nonpostal 

8 service in the Mail Classification Schedule as in effect on 

9 the date of enactment of the Postal Reform Act of 2013. 

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

11 prevent the Postal Service from establishing nonpostal 

12 products and services that are expressly authorized by 

13 subsection (a)(6).’’. 

14 (2) SECTION 3641 OF TITLE 39.—Section 3641 

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

16 (A) in subsection (b)(1), by inserting ‘‘(or 

17 the appropriate consumers in the case of non18 postal products)’’ after ‘‘users’’; 

19 (B) in the first sentence of subsection 

20 (b)(3), by striking ‘‘section 3642(b)(1)’’ and in21 serting ‘‘sections 404(g) and 3642(b)(1)’’; 

22 (C) in the second sentence of subsection 

23 (b)(3), by striking ‘‘section 3633(3)’’ and in24 serting ‘‘section 3633(a)(3)’’; 


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1 (D) in subsection (e)(1), by striking 

2 ‘‘$10,000,000’’ and inserting ‘‘$50,000,000’’; 

3 and 

4 (E) in subsection (e)(2), by striking 

5 ‘‘$50,000,000’’ and inserting ‘‘$100,000,000’’. 

6 (3) TECHNICAL AND CONFORMING AMEND7 MENTS.—Section 2003(b)(1) of title 39, United 

8 States Code, is amended by striking ‘‘postal and 

9 nonpostal services’’ and inserting ‘‘postal services, 

10 nonpostal services authorized under section 404(e), 

11 and products and services authorized under section 

12 411,’’. 

13 SEC. 303. SHIPPING OF WINE, BEER, AND DISTILLED SPIR14 ITS. 

15 (a) MAILABILITY.— 

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

17 of title 18, United States Code, is amended by strik18 ing ‘‘mails’’ and inserting ‘‘mails, except to the ex19 tent that the mailing is allowable under section 

20 3001(p) of title 39’’. 

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

22 title 18, United States Code, is amended, by insert23 ing ‘‘, and, with respect to the mailing of distilled 

24 spirits, wine, or malt beverages (as those terms are 

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1 istration Act (27 U.S.C. 211)), is in conformity with 

2 section 3001(p) of title 39’’ after ‘‘Register’’. 

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

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

6 ‘‘(p)(1) In this subsection, the terms ‘distilled spirits’, 

7 ‘wine’, and ‘malt beverage’ have the same meanings as in 

8 section 117 of the Federal Alcohol Administration Act (27 

9 U.S.C. 211). 

10 ‘‘(2) Distilled spirits, wine, or malt beverages shall 

11 be considered mailable if mailed— 

12 ‘‘(A) in accordance with the laws and regula13 tions of— 

14 ‘‘(i) the State, territory, or district of the 

15 United States where the sender or duly author16 ized agent initiates the mailing; and 

17 ‘‘(ii) the State, territory, or district of the 

18 United States where the addressee or duly au19 thorized agent takes delivery; and 

20 ‘‘(B) to an addressee who is at least 21 years 

21 of age— 

22 ‘‘(i) who provides a signature and presents 

23 a valid, government-issued photo identification 

24 upon delivery; or 

25 ‘‘(ii) the duly authorized agent of whom— 


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1 ‘‘(I) is at least 21 years of age; and 

2 ‘‘(II) provides a signature and pre3 sents a valid, government-issued photo 

4 identification upon delivery. 

5 ‘‘(3) The Postal Service shall prescribe such regula6 tions as may be necessary to carry out this subsection.’’. 

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

8 this section shall take effect on the earlier of— 

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

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

11 States Code, as amended by this section; and 

12 (2) 120 days after the date of enactment of this 

13 Act. 

14 TITLE IV—POSTAL SERVICE 

15 GOVERNANCE 

16 SEC. 401. BOARD OF GOVERNORS OF THE POSTAL SERVICE. 

17 (a) BOARD OF GOVERNORS.—Title 39, United States 

18 Code, is amended by striking section 202 and inserting 

19 the following: 

20 ‘‘§ 202. Board of Governors 

21 ‘‘(a) IN GENERAL.—The exercise of the power of the 

22 Postal Service shall be directed by a Board of Governors 

23 composed of 9 members appointed in accordance with this 

24 section, each of whom shall be a voting member of the 

25 Board. 


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1 ‘‘(b) MEMBERSHIP.— 

2 ‘‘(1) COMPOSITION.—The Board shall be com3 posed of— 

4 ‘‘(A) the Postmaster General; 

5 ‘‘(B) the Secretary of the Treasury; and 

6 ‘‘(C) 7 members, to be known as Gov7 ernors, who shall be appointed by the President, 

8 by and with the advice and consent of the Sen9 ate. 

10 ‘‘(2) AFFILIATION.—Not more than 4 of the 

11 Governors may be members of any one political 

12 party. 

13 ‘‘(3) CHAIRPERSON.—The President shall des14 ignate one of the Governors to serve as the Chair15 person of the Board. 

16 ‘‘(c) QUALIFICATIONS.— 

17 ‘‘(1) IN GENERAL.—The Governors shall rep18 resent the public interest generally, and shall be cho19 sen solely on the basis of experience in public serv20 ice, law, or accounting, or on a demonstrated ability 

21 to manage organizations or corporations (in either 

22 the public or private sector) of substantial size. 

23 ‘‘(2) NO SPECIFIC INTEREST.—A Governor may 

24 not be a representative of a specific interest using 

25 the Postal Service. 


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1 ‘‘(3) INITIAL APPOINTMENTS.—At least one of 

2 the Governors who is appointed to fill a position that 

3 is vacant on the date of enactment of the Postal Re4 form Act of 2013 shall, in addition to the qualifica5 tions set forth in paragraph (1), be appointed based 

6 on the demonstrated ability of that individual to 

7 manage and improve financially troubled organiza8 tions. 

9 ‘‘(d) REMOVAL.—A Governor may be removed only 

10 for cause. 

11 ‘‘(e) COMPENSATION.— 

12 ‘‘(1) SALARY.—Each Governor shall receive a 

13 salary of $30,000 each year, plus $300 for each day, 

14 for not more than 42 days, on which the Governor 

15 attends a meeting of the Board. Nothing in this 

16 paragraph shall be construed to limit the number of 

17 days of meetings each year to 42 days. 

18 ‘‘(2) REIMBURSEMENT FOR MEETINGS.—Each 

19 Governor shall be reimbursed for travel and reason20 able expenses incurred in attending meeting meet21 ings of the Board. 

22 ‘‘(f) TERMS.— 

23 ‘‘(1) IN GENERAL.—Each Governor shall serve 

24 for a term of 7 years. 


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1 ‘‘(2) VACANCIES.—A Governor appointed to fill 

2 a vacancy occurring before the expiration of the 

3 term to which the predecessor of that Governor was 

4 appointed shall serve for the remainder for the re5 mainder of that term. 

6 ‘‘(3) CONTINUATION OF SERVICE.—A Governor 

7 may continue to serve after the expiration of the 

8 term of that Governor until a successor has been ap9 pointed, except that a Governor may not continue to 

10 serve for more than 1 year after the date on which 

11 the term of that Governor would have otherwise ex12 pired. 

13 ‘‘(4) LIMIT.—A Governor may serve for not 

14 more than 2 terms. 

15 ‘‘(g) POSTMASTER GENERAL.— 

16 ‘‘(1) APPOINTMENT AND REMOVAL.—The Gov17 ernors shall appoint and shall have the power to re18 move the Postmaster General. 

19 ‘‘(2) PAY AND TERM OF SERVICE.—The pay 

20 and term of service of the Postmaster General shall 

21 be determined by the Governors. 

22 ‘‘(h) DEPUTY POSTMASTER GENERAL.— 

23 ‘‘(1) APPOINTMENT AND REMOVAL.—The Gov24 ernors and the Postmaster General shall appoint and 


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1 shall have the power to remove the Deputy Post2 master General. 

3 ‘‘(2) PAY.—The pay of the Deputy Postmaster 

4 General shall be determined by the Governors. 

5 ‘‘(3) TERM OF SERVICE.—The term of service 

6 of the Deputy Postmaster General shall be deter7 mined by the Governors and the Postmaster Gen8 eral. 

9 ‘‘(i) EXECUTIVE COMMITTEE.— 

10 ‘‘(1) AUTHORITY TO ESTABLISH.—The Board, 

11 by a vote of a majority of its members, may estab12 lish an Executive Committee of the Board, con13 sistent with paragraph (2). 

14 ‘‘(2) BOARD MEMBERSHIP AND RESPONSIBIL15 ITIES.—If established by the Board, the Executive 

16 Committee shall— 

17 ‘‘(A) be composed of the Chairperson of 

18 the Board and 2 additional Governors des19 ignated by the Board, except that not more 

20 than 2 members of the Executive Committee 

21 may be members of any one political party; 

22 ‘‘(B) develop and oversee implementation 

23 of strategies and measures to ensure the long24 term financial solvency of the Postal Service; 


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1 ‘‘(C) develop and oversee the implementa2 tion of the financial plan and budget required 

3 under section 403 of the Postal Reform Act of 

4 2013 and updates to the financial plan and 

5 budget; 

6 ‘‘(D) make recommendations to the Board 

7 regarding aspects of postal operations; and 

8 ‘‘(E) assume such other responsibilities as 

9 the Board determines appropriate. 

10 ‘‘(3) QUORUM.—2 members of the Executive 

11 Committee shall constitute a quorum for the trans12 action of business by the Executive Committee. 

13 ‘‘(4) TERMINATION.—The Executive Committee 

14 may be terminated by a vote of the majority of the 

15 members of the Board.’’. 

16 (b) PROCEDURES OF THE BOARD.—Section 205(c) of 

17 title 39, United States Code, is amended by striking ‘‘6 

18 members’’ and inserting ‘‘5 members’’. 

19 (c) INCUMBENTS; IMPLEMENTATION.— 

20 (1) INCUMBENTS.—An individual serving as a 

21 Governor on the Board of Governors of the Postal 

22 Service (referred to in this subsection as a ‘‘Gov23 ernor’’) on the date of enactment of this Act may 

24 continue to serve as a Governor until the expiration 

25 of the term of that Governor. 


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1 (2) IMPLEMENTATION OF MEMBERSHIP REDUC2 TION.— 

3 (A) IN GENERAL.—The following vacancies 

4 in the position of Governor shall not be filled: 

5 (i) One of the 2 positions as a Gov6 ernor for which the term is scheduled to 

7 expire on December 8, 2014. 

8 (ii) One of the 2 positions as a Gov9 ernor for which the term is scheduled to 

10 expire on December 8, 2015. 

11 (B) PREFERENCE FOR ABOLISHING VA12 CANT POSITIONS.— 

13 (i) POSITIONS EXPIRING IN 2014.—If 

14 one of the 2 positions referred to in clause 

15 (i) of subparagraph (A) is vacant on the 

16 date of enactment of this Act, that vacant 

17 position shall be the position that is not 

18 filled, as required under such clause (i). 

19 (ii) POSITIONS EXPIRING IN 2015.—If 

20 one of the 2 positions referred to in clause 

21 (ii) of subparagraph (A) is vacant on the 

22 date of enactment of this Act, that vacant 

23 position shall be the position that is not 

24 filled, as required under such clause (ii). 


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1 (d) CONFORMING AMENDMENTS.—Title 39, United 

2 States Code, is amended— 

3 (1) in section 102(3)— 

4 (A) by striking ‘‘9’’ and inserting ‘‘7’’; and 

5 (B) by striking ‘‘202(a)’’ and inserting 

6 ‘‘202(b)(1)(C)’’; and 

7 (2) in section 203— 

8 (A) by striking ‘‘202(c)’’ and inserting 

9 ‘‘202(g)’’; and 

10 (B) by striking ‘‘202(d)’’ and inserting 

11 ‘‘202(h)’’. 

12 SEC. 402. STRATEGIC ADVISORY COMMISSION ON POSTAL 

13 SERVICE SOLVENCY AND INNOVATION. 

14 (a) ESTABLISHMENT.— 

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

16 Postal Service a Strategic Advisory Commission on 

17 Postal Service Solvency and Innovation (referred to 

18 in this section as the ‘‘Advisory Commission’’). 

19 (2) INDEPENDENCE.—The Advisory Commis20 sion shall not be subject to the supervision of the 

21 Board of Governors of the Postal Service (referred 

22 to in this section as the ‘‘Board of Governors’’), the 

23 Postmaster General, or any other officer or employee 

24 of the Postal Service. 


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1 (b) PURPOSE.—The purpose of the Advisory Com2 mission is— 

3 (1) to provide strategic guidance to the Presi4 dent, Congress, the Board of Governors, and the 

5 Postmaster General on enhancing the long-term sol6 vency of the Postal Service; and 

7 (2) to foster innovative thinking to address the 

8 challenges facing the Postal Service. 

9 (c) MEMBERSHIP.— 

10 (1) COMPOSITION.—The Advisory Commission 

11 shall be composed of 7 members, of whom— 

12 (A) 3 members shall be appointed by the 

13 President, who shall designate 1 member ap14 pointed under this subparagraph to serve as 

15 Chairperson of the Advisory Commission; and 

16 (B) 1 member shall be appointed by each 

17 of— 

18 (i) the majority leader of the Senate; 

19 (ii) the minority leader of the Senate; 

20 (iii) the Speaker of the House of Rep21 resentatives; and 

22 (iv) the minority leader of the House 

23 of Representatives. 


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1 (2) QUALIFICATIONS.—Members of the Advi2 sory Commission shall be prominent citizens hav3 ing— 

4 (A) significant depth of experience in such 

5 fields as business and public administration; 

6 (B) a reputation for innovative thinking; 

7 (C) familiarity with new and emerging 

8 technologies; and 

9 (D) experience with revitalizing organiza10 tions that experienced significant financial chal11 lenges or other challenges. 

12 (3) INCOMPATIBLE OFFICES.—An individual 

13 who is appointed to the Advisory Commission may 

14 not serve as an elected official or an officer or em15 ployee of the Federal Government while serving as 

16 a member of the Advisory Commission, except in the 

17 capacity of that individual as a member of the Advi18 sory Commission. 

19 (4) DEADLINE FOR APPOINTMENT.—Each 

20 member of the Advisory Commission shall be ap21 pointed not later than 45 days after the date of en22 actment of this Act. 

23 (5) MEETINGS; QUORUM; VACANCIES.— 

24 (A) MEETINGS.—The Advisory Commis25 sion shall meet at the call of the Chairperson or 


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1 a majority of the members of the Advisory 

2 Commission. 

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

4 Commission shall constitute a quorum. 

5 (C) VACANCIES.—Any vacancy in the Advi6 sory Commission shall not affect the powers of 

7 the Advisory Commission, but shall be filled as 

8 soon as practicable in the same manner in 

9 which the original appointment was made. 

10 (d) DUTIES AND POWERS.— 

11 (1) DUTIES.—The Advisory Commission 

12 shall— 

13 (A) study matters that the Advisory Com14 mission determines are necessary and appro15 priate to develop a strategic blueprint for the 

16 long-term solvency of the Postal Service, includ17 ing— 

18 (i) the financial, operational, and 

19 structural condition of the Postal Service; 

20 (ii) alternative strategies and business 

21 models that the Postal Service could adopt; 

22 (iii) opportunities for additional postal 

23 and nonpostal products and services that 

24 the Postal Service could offer; 


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1 (iv) innovative services that postal 

2 services in foreign countries have offered, 

3 including services that respond to the in4 creasing use of electronic means of commu5 nication; and 

6 (v) the governance structure, manage7 ment structure, and management of the 

8 Postal Service, including— 

9 (I) the appropriate method of ap10 pointment, qualifications, duties, and 

11 compensation for senior officials of 

12 the Postal Service, including the Post13 master General; and 

14 (II) the number and functions of 

15 senior officials of the Postal Service 

16 and the number of levels of manage17 ment of the Postal Service; and 

18 (B) submit the report required under sub19 section (f). 

20 (2) HEARINGS.—The Advisory Commission may 

21 hold such hearings, take such testimony, and receive 

22 such evidence as is necessary to carry out this sec23 tion. 

24 (3) ACCESS TO INFORMATION.—The Advisory 

25 Commission may secure directly from the Postal 


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1 Service, the Board of Governors, the Postal Regu2 latory Commission, and any other Federal depart3 ment or agency such information as the Advisory 

4 Commission considers necessary to carry out this 

5 section. Upon request of the Chairperson of the Ad6 visory Commission, the head of the department or 

7 agency shall furnish the information described in the 

8 preceding sentence to the Advisory Commission. 

9 (e) PERSONNEL MATTERS.— 

10 (1) ADVISORY COMMISSION MEMBERS.— 

11 (A) COMPENSATION OF MEMBERS.—Each 

12 member of the Advisory Commission shall be 

13 compensated at a rate equal to the daily equiva14 lent of the annual rate of basic pay prescribed 

15 for level IV of the Executive Schedule under 

16 section 5315 of title 5, United States Code, for 

17 each day during which the member is engaged 

18 in the actual performance of the duties of the 

19 Advisory Commission. 

20 (B) TRAVEL EXPENSES.—Each member of 

21 the Advisory Commission shall be allowed travel 

22 expenses, including per diem in lieu of subsist23 ence, at the rate authorized for employees serv24 ing intermittently in the Government service 

25 under section 5703 of title 5, United States 


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1 Code, while away from home or regular place of 

2 business in the performance of services for the 

3 Advisory Commission. 

4 (2) STAFF.— 

5 (A) APPOINTMENT AND COMPENSATION.— 

6 The Chairperson, in accordance with rules 

7 agreed upon by the Advisory Commission, shall 

8 appoint and fix the compensation of an execu9 tive director and such other personnel as may 

10 be necessary to enable the Advisory Commission 

11 to carry out the functions of the Advisory Com12 mission, without regard to the provisions of title 

13 5, United States Code, governing appointments 

14 in the competitive service, and without regard 

15 to the provisions of chapter 51 and subchapter 

16 III of chapter 53 of such title relating to classi17 fication of positions and General Schedule pay 

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

19 subparagraph may not exceed the annual rate 

20 of basic pay prescribed for level V of the Execu21 tive Schedule under section 5316 of title 5, 

22 United States Code. 

23 (B) DETAILEES.—Any Federal employee, 

24 including an employee of the Postal Service, 

25 may be detailed to the Advisory Commission 


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1 without reimbursement, and such detail shall be 

2 without interruption or loss of the civil service 

3 rights, status, or privilege of the employee. 

4 (C) CONSULTANT SERVICES.—The Advi5 sory Commission may procure the services of 

6 experts and consultants in accordance with sec7 tion 3109 of title 5, United States Code, at 

8 rates for individuals that do not exceed the 

9 daily equivalent of the annual rate of basic pay 

10 prescribed for level IV of the Executive Sched11 ule under section 5315 of such title. 

12 (f) STRATEGIC BLUEPRINT FOR LONG-TERM SOL13 VENCY.— 

14 (1) IN GENERAL.—Not later than 9 months 

15 after the date of enactment of this Act, the Advisory 

16 Commission shall submit a report that contains a 

17 strategic blueprint for the long-term solvency of the 

18 Postal Service to— 

19 (A) the President; 

20 (B) the Committee on Homeland Security 

21 and Governmental Affairs of the Senate; 

22 (C) the Committee on Oversight and Gov23 ernment Reform of the House of Representa24 tives; 

25 (D) the Board of Governors; and 


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1 (E) the Postmaster General. 

2 (2) CONTENTS.—The strategic blueprint con3 tained in the report submitted under paragraph (1) 

4 shall include— 

5 (A) an assessment of the business model of 

6 the Postal Service as of the date on which the 

7 report is submitted; 

8 (B) an assessment of potential future busi9 ness models for the Postal Service, including an 

10 evaluation of the appropriate balance between— 

11 (i) necessary reductions in costs and 

12 services; and 

13 (ii) additional opportunities for 

14 growth and revenue; 

15 (C) a strategy for addressing significant 

16 current and future liabilities; 

17 (D) identification of opportunities for fur18 ther reductions in costs; 

19 (E) identification of opportunities for new 

20 and innovative products and services; 

21 (F) a strategy for future growth; 

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

23 operate in a sustainable manner 20 years after 

24 the date of enactment of this Act; and 


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1 (H) recommendations for any legislative 

2 changes necessary to implement the strategic 

3 blueprint described in this paragraph. 

4 (g) STUDY AND STRATEGIC PLAN ON INTERAGENCY

5 AGREEMENTS FOR POST OFFICES.— 

6 (1) DUTIES OF ADVISORY COMMISSION.— 

7 (A) STUDY.— 

8 (i) IN GENERAL.—The Advisory Com9 mission shall conduct a study concerning 

10 the advisability of the Postal Service enter11 ing into interagency agreements with Fed12 eral, State, and local agencies, with respect 

13 to post offices, that— 

14 (I) streamline and consolidate 

15 services provided by Federal, State, 

16 and local agencies; 

17 (II) decrease the costs incurred 

18 by Federal agencies in providing serv19 ices to the general public; and 

20 (III) improve the efficiency and 

21 maintain the customer service stand22 ards of the Federal, State, and local 

23 agencies. 

24 (ii) CLARIFICATION OF INTER-AGENCY

25 AGREEMENTS.—The study under clause (i) 


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1 shall include consideration of the advis2 ability of the Postal Service entering into 

3 an interagency agreement with— 

4 (I) the Bureau of the Census for 

5 the provision of personnel and re6 sources for the 2020 decennial census; 

7 (II) the department of motor ve8 hicles, or an equivalent agency, of 

9 each State for the provision of driver 

10 licenses, vehicle registration, and voter 

11 registration; 

12 (III) the division of wildlife, the 

13 department of natural resources, or 

14 an equivalent agency, of each State 

15 for the provision of hunting and fish16 ing licenses; and 

17 (IV) other Federal agencies re18 sponsible for providing services to the 

19 general public. 

20 (B) FINDINGS.—The Advisory Commission 

21 shall— 

22 (i) not later than 9 months after the 

23 date of enactment of this Act, submit to 

24 the Postal Service the findings of the study 

25 conducted under subparagraph (A); and 


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1 (ii) incorporate the findings described 

2 in clause (i) into the strategic blueprint re3 quired under subsection (f). 

4 (2) POSTAL SERVICE STRATEGIC PLAN.— 

5 (A) IN GENERAL.—Not later than 6 

6 months after the date on which the Advisory 

7 Commission submits to the Postal Service the 

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

9 Service shall submit a strategic plan for enter10 ing into interagency agreements concerning 

11 post offices to— 

12 (i) the Committee on Homeland Secu13 rity and Governmental Affairs of the Sen14 ate; and 

15 (ii) the Committee on Oversight and 

16 Government Reform of the House of Rep17 resentatives. 

18 (B) LIMITATIONS.—The strategic plan 

19 submitted under subparagraph (A) shall be con20 sistent with public interest and demand. 

21 (C) COST SAVINGS PROJECTIONS.—The 

22 strategic plan submitted under subparagraph 

23 (A) shall include, for each proposed interagency 

24 agreement, a projection of cost savings to be re25 alized by the Postal Service and by any other 


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1 Federal agency that is a party to the agree2 ment. 

3 (h) TERMINATION OF THE COMMISSION.—The Advi4 sory Commission shall terminate 90 days after the later 

5 of— 

6 (1) the date on which the Advisory Commission 

7 submits the report on the strategic blueprint for 

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

9 (2) the date on which the Advisory Commission 

10 submits the findings on interagency agreements for 

11 post offices under subsection (g). 

12 (i) AUTHORIZATION OF APPROPRIATIONS.—There 

13 are authorized to be appropriated out of the Postal Service 

14 Fund for fiscal years 2014 and 2015 such sums as may 

15 be necessary to carry out this section. 

16 SEC. 403. LONG-TERM SOLVENCY PLAN; ANNUAL FINAN17 CIAL PLAN AND BUDGET. 

18 (a) DEFINITIONS.—In this section— 

19 (1) the term ‘‘Board of Governors’’ means the 

20 Board of Governors of the Postal Service; 

21 (2) the term ‘‘long-term solvency plan’’ means 

22 the plan required to be submitted by the Postmaster 

23 General under subsection (b)(1); and 

24 (3) the term ‘‘solvency’’ means the ability of the 

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1 cluding the ability to perform maintenance and re2 pairs, make investments, and maintain financial re3 serves, as necessary to fulfill the requirements 

4 under, and comply with the policies of, title 39, 

5 United States Code, and other obligations of the 

6 Postal Service. 

7 (b) PLAN FOR THE LONG-TERM SOLVENCY OF THE

8 POSTAL SERVICE.— 

9 (1) SOLVENCY PLAN REQUIRED.— 

10 (A) IN GENERAL.—Not later than the date 

11 described in subparagraph (B), the Postmaster 

12 General shall submit to the Board of Governors 

13 a plan describing the actions the Postal Service 

14 intends to take to achieve long-term solvency. 

15 (B) DATE.—The date described in this 

16 subparagraph is the later of— 

17 (i) the date that is 90 days after the 

18 date of enactment of this Act; and 

19 (ii) the earliest date as of which the 

20 Board of Governors has the number of 

21 members required for a quorum. 

22 (2) CONSIDERATIONS.—The long-term solvency 

23 plan shall take into account— 

24 (A) the legal authority of the Postal Serv25 ice; 


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

3 Act and the amendments made by this Act; 

4 (C) any cost savings that the Postal Serv5 ice anticipates will be achieved through negotia6 tions with employees of the Postal Service; 

7 (D) projected changes in mail volume; 

8 (E) the impact of any regulations that the 

9 Postal Service is required to promulgate under 

10 Federal law; 

11 (F) projected changes in the number of 

12 employees needed to carry out the responsibil13 ities of the Postal Service; and 

14 (G) the long-term capital needs of the 

15 Postal Service, including the need to maintain, 

16 repair, and replace facilities and equipment. 

17 (3) REVIEW AND SUBMISSION TO CONGRESS.— 

18 (A) REVIEW.—Upon receipt of the long19 term solvency plan, the Board of Governors 

20 shall review the long-term solvency plan and 

21 may request that the Postmaster General make 

22 changes to the long-term solvency plan. 

23 (B) SUBMISSION TO CONGRESS.—Not later 

24 than 60 days after initial receipt of the long25 term solvency plan, the Board of Governors 


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1 shall provide a copy of the long-term solvency 

2 plan to the Committee on Homeland Security 

3 and Governmental Affairs of the Senate and the 

4 Committee on Oversight and Government Re5 form of the House of Representatives, together 

6 with a letter indicating whether and in what re7 spects the Board of Governors agrees or dis8 agrees with the measures set out in the long9 term solvency plan. 

10 (4) UPDATES.— 

11 (A) ANNUAL UPDATES REQUIRED.—The 

12 Postmaster General shall update and submit to 

13 the Board of Governors the long-term solvency 

14 plan not less frequently than annually for 5 

15 years after the enactment of this Act. 

16 (B) REVIEW BY BOARD OF GOVERNORS.— 

17 The Board of Governors shall review and sub18 mit to Congress the updates under this para19 graph in accordance with paragraph (3). 

20 (c) ANNUAL FINANCIAL PLAN AND BUDGET.— 

21 (1) IN GENERAL.—For each of the first 5 full 

22 fiscal years after the date of enactment of this Act, 

23 not later than August 1 of the preceding fiscal year, 

24 the Postmaster General shall submit to the Board of 

25 Governors a financial plan and budget for the fiscal 


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1 year that is consistent with the goal of promoting 

2 the long-term solvency of the Postal Service. 

3 (2) CONTENTS OF FINANCIAL PLAN AND BUDG4 ET.—The financial plan and budget for a fiscal year 

5 shall— 

6 (A) promote the financial stability of the 

7 Postal Service and provide for progress towards 

8 the long-term solvency of the Postal Service; 

9 (B) include the annual budget program of 

10 the Postal Service under section 2009 of title 

11 39, United States Code, and the plan of the 

12 Postal Service commonly referred to as the ‘‘In13 tegrated Financial Plan’’; 

14 (C) describe lump-sum expenditures by all 

15 categories traditionally used by the Postal Serv16 ice; 

17 (D) describe capital expenditures, together 

18 with a schedule of projected capital commit19 ments and cash outlays of the Postal Service, 

20 and proposed sources of funding; 

21 (E) contain estimates of overall debt (both 

22 outstanding and expected to be incurred); 

23 (F) contain cash flow and liquidity fore24 casts for the Postal Service at such intervals as 

25 the Board of Governors may require; 


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1 (G) include a statement describing meth2 ods of estimations and significant assumptions; 

3 and 

4 (H) address any other issues that the 

5 Board of Governors considers appropriate. 

6 (3) PROCESS FOR SUBMISSION AND APPROVAL

7 OF FINANCIAL PLAN AND BUDGET.— 

8 (A) DEFINITION.—In this paragraph, the 

9 term ‘‘covered recipient’’ means— 

10 (i) the Postmaster General; 

11 (ii) the President; 

12 (iii) the Committee on Homeland Se13 curity and Governmental Affairs of the 

14 Senate; and 

15 (iv) the Committee on Oversight and 

16 Government Reform of the House of Rep17 resentatives. 

18 (B) REVIEW BY THE BOARD OF GOV19 ERNORS.— 

20 (i) IN GENERAL.—Upon receipt of a 

21 financial plan and budget under paragraph 

22 (1), the Board of Governors shall promptly 

23 review the financial plan and budget. 

24 (ii) ADDITIONAL INFORMATION.—In 

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1 graph, the Board of Governors may re2 quest any additional information it con3 siders necessary and appropriate to carry 

4 out the duties of the Board of Governors. 

5 (C) APPROVAL OF FINANCIAL PLAN AND

6 BUDGET SUBMITTED BY THE POSTMASTER

7 GENERAL.—If the Board of Governors deter8 mines that the financial plan and budget for a 

9 fiscal year received under paragraph (1) meets 

10 the requirements under paragraph (2) and oth11 erwise adequately addresses the financial situa12 tion of the Postal Service— 

13 (i) the Board of Governors shall ap14 prove the financial plan and budget and 

15 submit a notice of approval to each covered 

16 recipient; and 

17 (ii) the Postmaster General shall sub18 mit the annual budget program for the rel19 evant fiscal year to the Office of Manage20 ment and Budget in accordance with sec21 tion 2009 of title 39, United States Code. 

22 (D) DISAPPROVAL OF FINANCIAL PLAN

23 AND BUDGET SUBMITTED BY THE POSTMASTER

24 GENERAL.— 


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1 (i) IN GENERAL.—If the Board of 

2 Governors determines that the financial 

3 plan and budget for a fiscal year under 

4 paragraph (1) does not meet the require5 ments under paragraph (2) or is otherwise 

6 inadequate in addressing the financial situ7 ation of the Postal Service, the Board of 

8 Governors shall— 

9 (I) disapprove the financial plan 

10 and budget; 

11 (II) submit to each covered re12 cipient a statement that describes the 

13 reasons for the disapproval; 

14 (III) direct the Postmaster Gen15 eral to appropriately revise the finan16 cial plan and budget for the Postal 

17 Service; and 

18 (IV) submit the revised financial 

19 plan and budget to each covered re20 cipient. 

21 (ii) SUBMISSION TO OFFICE OF MAN22 AGEMENT AND BUDGET.—Upon receipt of 

23 a revised financial plan and budget under 

24 clause (i)(IV), the Postmaster General 

25 shall submit the annual budget program 


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1 for the relevant fiscal year to the Office of 

2 Management and Budget in accordance 

3 with section 2009 of title 39, United 

4 States Code. 

5 (E) DEADLINE FOR TRANSMISSION OF FI6 NANCIAL PLAN AND BUDGET BY BOARD OF

7 GOVERNORS.—Notwithstanding any other provi8 sion of this paragraph, not later than Sep9 tember 30 of the fiscal year that precedes each 

10 fiscal year for which a financial plan and budg11 et is required under paragraph (1), the Board 

12 of Governors shall— 

13 (i) submit to each covered recipient a 

14 notice of approval under subparagraph 

15 (C)(i)(I); or 

16 (ii) submit to each covered recipient 

17 an approved financial plan and budget for 

18 the fiscal year under subparagraph 

19 (D)(i)(IV). 

20 (F) REVISIONS TO FINANCIAL PLAN AND

21 BUDGET.— 

22 (i) PERMITTING POSTMASTER GEN23 ERAL TO SUBMIT REVISIONS.—The Post24 master General may submit proposed revi25 sions to the financial plan and budget for 


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1 a fiscal year to the Board of Governors at 

2 any time during the fiscal year. 

3 (ii) PROCESS FOR REVIEW, APPROVAL, 

4 DISAPPROVAL, AND POSTMASTER GENERAL

5 ACTION.—The procedures described in sub6 paragraphs (C) through (E) shall apply 

7 with respect to a proposed revision to a fi8 nancial plan and budget in the same man9 ner as such procedures apply with respect 

10 to the original financial plan and budget. 

11 (d) ASSUMPTIONS BASED ON CURRENT LAW.—In 

12 preparing the long-term solvency plan or an annual finan13 cial plan and budget required under this section, the Post14 al Service shall base estimates of revenues and expendi15 tures on Federal law as in effect at the time of the prepa16 ration of the long-term solvency plan or the financial plan 

17 and budget. 

18 SEC. 404. CHIEF INNOVATION OFFICER; INNOVATION 

19 STRATEGY. 

20 (a) CHIEF INNOVATION OFFICER.— 

21 (1) IN GENERAL.—Chapter 2 of part I of title 

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

23 the end the following: 


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1 ‘‘§ 209. Chief innovation officer 

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

3 Service a Chief Innovation Officer appointed by the Post4 master General. 

5 ‘‘(b) QUALIFICATIONS.—The Chief Innovation Offi6 cer shall have proven expertise and a record of accomplish7 ment in areas such as— 

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

9 ‘‘(2) innovative product research and develop10 ment; 

11 ‘‘(3) brand marketing strategy; 

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

13 communications technology; or 

14 ‘‘(5) business process management. 

15 ‘‘(c) DUTIES.—The Chief Innovation Officer shall 

16 lead the development and implementation of— 

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

18 particularly products and services that use new and 

19 emerging technology, including communications 

20 technology, to improve the net financial position of 

21 the Postal Service; and 

22 ‘‘(2) nonpostal products and services authorized 

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

24 improve the net financial position of the Postal Serv25 ice. 


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1 ‘‘(d) DEADLINE.—The Postmaster General shall ap2 point a Chief Innovation Officer not later than 90 days 

3 after the date of enactment of the Postal Reform Act of 

4 2013.’’. 

5 (2) TECHNICAL AND CONFORMING AMEND6 MENT.—The table of sections for chapter 2 of part 

7 I of title 39, United States Code, is amended by 

8 adding at the end the following: 

‘‘209. Chief Innovation Officer.’’. 

9 (b) INNOVATION STRATEGY.— 

10 (1) INITIAL REPORT ON INNOVATION STRAT11 EGY.— 

12 (A) IN GENERAL.—Not later than 9 

13 months after the date of enactment of this Act, 

14 the Postmaster General, acting through the 

15 Chief Innovation Officer, shall submit a report 

16 that contains a comprehensive strategy (re17 ferred to in this subsection as the ‘‘innovation 

18 strategy’’) for improving the net financial posi19 tion of the Postal Service through innovation, 

20 including the offering of new postal and non21 postal products and services, to— 

22 (i) the Committee on Homeland Secu23 rity and Governmental Affairs of the Sen24 ate; and 


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1 (ii) the Committee on Oversight and 

2 Government Reform of the House of Rep3 resentatives. 

4 (B) MATTERS TO BE ADDRESSED.—At a 

5 minimum, the report on innovation strategy re6 quired under subparagraph (A) shall describe— 

7 (i) the specific innovative postal and 

8 nonpostal products and services to be de9 veloped and offered by the Postal Service, 

10 including— 

11 (I) the nature of the market de12 mand to be satisfied by each product 

13 or service; and 

14 (II) the estimated date by which 

15 each product or service will be intro16 duced; 

17 (ii) the cost of developing and offering 

18 each product or service; 

19 (iii) the anticipated sales volume for 

20 each product or service; 

21 (iv) the anticipated revenues and prof22 its to be generated by each product or 

23 service; 

24 (v) the likelihood of success of each 

25 product or service and the risks associated 


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1 with the development and sale of each 

2 product or service; 

3 (vi) the trends anticipated in market 

4 conditions that may affect the success of 

5 each product or service during the 5-year 

6 period beginning on the date of the sub7 mission of the report under subparagraph 

8 (A); 

9 (vii) any innovations designed to im10 prove the net financial position of the 

11 Postal Service, other than the offering of 

12 new products and services; and 

13 (viii) the metrics that will be used to 

14 assess the effectiveness of the innovation 

15 strategy. 

16 (2) ANNUAL REPORT.— 

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

18 after the date of the submission of the initial 

19 report containing the innovation strategy under 

20 paragraph (1), and annually thereafter for 10 

21 years, the Postmaster General, acting through 

22 the Chief Innovation Officer, shall submit a re23 port on the implementation of the innovation 

24 strategy to— 


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1 (i) the Committee on Homeland Secu2 rity and Governmental Affairs of the Sen3 ate; and 

4 (ii) the Committee on Oversight and 

5 Government Reform of the House of Rep6 resentatives. 

7 (B) MATTERS TO BE ADDRESSED.—At a 

8 minimum, an annual report submitted under 

9 subparagraph (A) shall include— 

10 (i) an update of the initial report on 

11 innovation strategy submitted under para12 graph (1); 

13 (ii) a description of the progress made 

14 by the Postal Service in implementing the 

15 products, services, and other innovations 

16 described in the initial report on innovation 

17 strategy; and 

18 (iii) an analysis of the performance of 

19 each product, service, or other innovation 

20 described in the initial report on innovation 

21 strategy, including— 

22 (I) the revenue generated by each 

23 product or service developed in ac24 cordance with the innovation strategy 

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1 veloping and offering each product or 

2 service for the preceding year; 

3 (II) trends in each market in 

4 which a product or service is intended 

5 to satisfy a demand; 

6 (III) each product or service 

7 identified in the innovation strategy 

8 that is to be discontinued, the date on 

9 which each discontinuance will occur, 

10 and the reasons for each discontinu11 ance; 

12 (IV) each alteration that the 

13 Postal Service plans to make to a 

14 product or service identified in the in15 novation strategy to address changing 

16 market conditions and an explanation 

17 of how each alteration will ensure the 

18 success of the product or service; 

19 (V) the performance of innova20 tions other than new products and 

21 services that are designed to improve 

22 the net financial position of the Postal 

23 Service; and 

24 (VI) the performance of the inno25 vation strategy according to the 


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1 metrics described in paragraph 

2 (1)(B)(viii). 

3 SEC. 405. AREA AND DISTRICT OFFICE STRUCTURE. 

4 (a) DEFINITIONS.—In this section— 

5 (1) the term ‘‘area office’’ means the central of6 fice of an administrative field unit with responsibility 

7 for postal operations in a designated geographic area 

8 that is comprised of district offices; 

9 (2) the term ‘‘district office’’ means the central 

10 office of an administrative field unit with responsi11 bility for postal operations in a designated geo12 graphic area (as defined under regulations, direc13 tives, or other guidance of the Postal Service, as in 

14 effect on January 1, 2013); and 

15 (3) the term ‘‘State’’ includes the District of 

16 Columbia, the Commonwealth of Puerto Rico, the 

17 United States Virgin Islands, Guam, American 

18 Samoa, the Commonwealth of the Northern Mariana 

19 Islands, and any other territory or possession of the 

20 United States. 

21 (b) PLAN REQUIRED.—Not later than 1 year after 

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

23 submit to the Committee on Homeland Security and Gov24 ernmental Affairs of the Senate and the Committee on 

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1 resentatives a comprehensive strategic plan for an area of2 fice and district office structure that will— 

3 (1) be efficient and cost effective; 

4 (2) not substantially and adversely affect the 

5 operations of the Postal Service; and 

6 (3) reduce the total number of area and district 

7 offices. 

8 (c) IMPLEMENTATION.—Not later than 60 days after 

9 the date on which the Postal Service submits the plan 

10 under subsection (b), the Postal Service shall begin imple11 menting the plan, including, where appropriate, by consoli12 dating area and district offices. 

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

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

15 shall designate at least 1 employee of the district office 

16 responsible for Postal Service operations in the State to 

17 represent the needs of Postal Service customers in the 

18 State. An employee designated under this subsection to 

19 represent the needs of Postal Service customers in a State 

20 shall be located in that State. 

21 SEC. 406. INSPECTOR GENERAL OF THE POSTAL SERVICE. 

22 (a) APPOINTMENT OF INSPECTOR GENERAL OF THE

23 POSTAL SERVICE BY PRESIDENT.—The Inspector General 

24 Act of 1978 (5 U.S.C. App.) is amended— 

25 (1) in section 8G— 


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1 (A) in subsection (a)— 

2 (i) in paragraph (2), by striking ‘‘the 

3 Postal Regulatory Commission, and the 

4 United States Postal Service’’ and insert5 ing ‘‘and the Postal Regulatory Commis6 sion’’; 

7 (ii) in paragraph (3), by striking 

8 ‘‘subsection (h)(1)’’ and inserting ‘‘sub9 section (g)(1)’’; and 

10 (iii) in paragraph (4)— 

11 (I) in the matter preceding sub12 paragraph (A), by striking ‘‘sub13 section (h)(1)’’ and inserting ‘‘sub14 section (g)(1)’’; 

15 (II) by striking subparagraph 

16 (B); and 

17 (III) by redesignating subpara18 graphs (C) through (H) as subpara19 graphs (B) through (G), respectively; 

20 (B) in subsection (c), by striking ‘‘Except 

21 as provided under subsection (f) of this section, 

22 the’’ and inserting ‘‘The’’; 

23 (C) by striking subsection (f); and 

24 (D) by redesignating subsections (g) and 

25 (h) as subsections (f) and (g), respectively; 


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1 (2) by inserting after section 8M the following: 

2 ‘‘SEC. 8N. SPECIAL PROVISIONS CONCERNING THE INSPEC3 TOR GENERAL OF THE UNITED STATES POST4 AL SERVICE. 

5 ‘‘(a) In this section— 

6 ‘‘(1) the term ‘Inspector General’ means the In7 spector General of the United States Postal Service; 

8 and 

9 ‘‘(2) the term ‘Governors’ has the meaning 

10 given that term in section 102(3) of title 39, United 

11 States Code. 

12 ‘‘(b) In carrying out the duties and responsibilities 

13 specified in this Act, the Inspector General shall have 

14 oversight responsibility for all activities of the Postal In15 spection Service, including any internal investigation per16 formed by the Postal Inspection Service. The Chief Postal 

17 Inspector shall promptly report the significant activities 

18 being carried out by the Postal Inspection Service to the 

19 Inspector General. 

20 ‘‘(c)(1)(A) The Inspector General shall be under the 

21 authority, direction, and control of the Governors with re22 spect to audits or investigations, or the issuance of sub23 poenas, which require access to sensitive information con24 cerning— 


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1 ‘‘(i) ongoing civil or criminal investigations or 

2 proceedings; 

3 ‘‘(ii) undercover operations; 

4 ‘‘(iii) the identity of confidential sources, in5 cluding protected witnesses; 

6 ‘‘(iv) intelligence or counterintelligence matters; 

7 or 

8 ‘‘(v) other matters the disclosure of which 

9 would constitute a serious threat to national secu10 rity. 

11 ‘‘(B) With respect to the information described under 

12 subparagraph (A), the Governors may prohibit the Inspec13 tor General from carrying out or completing any audit or 

14 investigation, or from issuing any subpoena, after the In15 spector General has decided to initiate, carry out, or com16 plete such audit or investigation or to issue such subpoena, 

17 if the Governors determine that such prohibition is nec18 essary to prevent the disclosure of any information de19 scribed under subparagraph (A) or to prevent the signifi20 cant impairment to the national interests of the United 

21 States. 

22 ‘‘(C) If the Governors exercise any power under sub23 paragraph (A) or (B), the Governors shall notify the In24 spector General in writing stating the reasons for the exer25 cise of such power. Not later than 30 days after receipt 


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1 of any such notice, the Inspector General shall transmit 

2 a copy of the notice to the Committee on Homeland Secu3 rity and Governmental Affairs of the Senate and the Com4 mittee on Oversight and Government Reform of the House 

5 of Representatives, and to other appropriate committees 

6 or subcommittees of the Congress. 

7 ‘‘(2) In carrying out the duties and responsibilities 

8 specified in this Act, the Inspector General— 

9 ‘‘(A) may initiate, conduct, and supervise such 

10 audits and investigations in the United States Postal 

11 Service as the Inspector General considers appro12 priate; and 

13 ‘‘(B) shall give particular regard to the activi14 ties of the Postal Inspection Service with a view to15 ward avoiding duplication and ensuring effective co16 ordination and cooperation. 

17 ‘‘(3) Any report required to be transmitted by the 

18 Governors to the appropriate committees or subcommit19 tees of the Congress under section 5(d) shall also be trans20 mitted, within the seven-day period specified under that 

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

23 Oversight and Government Reform of the House of Rep24 resentatives. 


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1 ‘‘(d) Nothing in this Act shall restrict, eliminate, or 

2 otherwise adversely affect any of the rights, privileges, or 

3 benefits of either employees of the United States Postal 

4 Service, or labor organizations representing employees of 

5 the United States Postal Service, under chapter 12 of title 

6 39, United States Code, the National Labor Relations Act 

7 (29 U.S.C. 151 et seq.), any handbook or manual affecting 

8 employee labor relations with the United States Postal 

9 Service, or any collective bargaining agreement. 

10 ‘‘(e) There are authorized to be appropriated, out of 

11 the Postal Service Fund, such sums as may be necessary 

12 for the Office of Inspector General of the United States 

13 Postal Service.’’; and 

14 (3) in section 12— 

15 (A) in paragraph (1), by striking ‘‘or the 

16 Federal Cochairpersons of the Commissions es17 tablished under section 15301 of title 40, 

18 United States Code’’ and inserting ‘‘the Federal 

19 Cochairpersons of the Commissions established 

20 under section 15301 of title 40, United States 

21 Code; or the Board of Governors of the United 

22 States Postal Service’’; and 

23 (B) in paragraph (2), by striking ‘‘or the 

24 Commissions established under section 15301 

25 of title 40, United States Code’’ and inserting 


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1 ‘‘the Commissions established under section 

2 15301 of title 40, United States Code, or the 

3 United States Postal Service’’. 

4 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

5 Title 39, United States Code, is amended— 

6 (1) in section 102(4), by striking ‘‘section 

7 202(e) of this title’’ and inserting ‘‘section 3 of the 

8 Inspector General Act of 1978 (5 U.S.C. App.)’’; 

9 (2) in section 1001(b), in the first sentence, by 

10 inserting ‘‘, and section 3 of the Inspector General 

11 Act of 1978 (5 U.S.C. App.)’’ after ‘‘1001(c) of this 

12 title’’; and 

13 (3) in section 1005(a)(3), by inserting ‘‘, and 

14 section 3 of the Inspector General Act of 1978 (5 

15 U.S.C. App.)’’ after ‘‘1001(c) of this title’’. 

16 (c) APPLICABILITY.— 

17 (1) IN GENERAL.—The amendments made by 

18 this section shall apply with respect to the first indi19 vidual appointed as Inspector General of the Postal 

20 Service after the date of enactment of this Act. 

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

22 Act may be construed to alter the authority or the 

23 length of the term of the individual serving as In24 spector General of the Postal Service on the date of 

25 enactment of this Act. 


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1 TITLE V—FEDERAL EMPLOYEES’ 

2 COMPENSATION ACT 

3 SEC. 501. SHORT TITLE; REFERENCES. 

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

5 ‘‘Workers’ Compensation Reform Act of 2013’’. 

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. 502. 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 2013; 

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 2013; 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 2013; and 

20 ‘‘(ii) meets the criteria under section 

21 8105(c); 

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

23 Workers’ Compensation Reform Act of 2013— 


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1 ‘‘(i) is eligible to receive continuous 

2 periodic compensation for total disability 

3 under section 8105; and 

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

6 for which the Secretary of Labor has au7 thorized, for at least the 1-year period end8 ing on the date of enactment of the Work9 ers’ Compensation Reform Act of 2013, 

10 constant in-home care or custodial care, 

11 such as placement in a nursing home; or 

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

13 periodic compensation for total disability under 

14 section 8105— 

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

17 the Workers’ Compensation Reform Act of 

18 2013; or 

19 ‘‘(ii) if the individual became eligible 

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

22 during the period beginning on the date 

23 that is 3 years before the date of enact24 ment of the Workers’ Compensation Re25 form Act of 2013 and ending on such date 


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

2 period beginning on the date on which the 

3 individual became eligible.’’. 

4 (2) TOTAL DISABILITY.—Section 8105 is 

5 amended— 

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

7 inserting ‘‘IN GENERAL.—Subject to subsection 

8 (b), if’’; 

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

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

12 following: 

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

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

17 for an employee who has attained retirement age 

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

20 ‘‘(2) EXCEPTIONS.— 

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

23 CONDITION, OR FACE FINANCIAL HARDSHIP.— 

24 Paragraph (1) shall not apply to a covered 


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1 claim for total disability by an employee if the 

2 employee— 

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

4 Workers’ Compensation Reform Act of 

5 2013, has attained retirement age; 

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

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

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

11 nutrition assistance program as described 

12 in section 5 of the Food and Nutrition Act 

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

14 any provisions permitting eligibility due to 

15 benefits received under any other law) if 

16 the basic compensation for total disability 

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

19 ‘‘(B) TRANSITION PERIOD FOR CERTAIN

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

22 described in subparagraph (A), the employee 

23 shall receive the basic compensation for total 

24 disability provided under subsection (a) until 

25 the later of— 


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

2 attains retirement age; and 

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

4 date of enactment of the Workers’ Com5 pensation Reform Act of 2013.’’. 

6 (3) PARTIAL DISABILITY.—Section 8106 is 

7 amended— 

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

9 inserting ‘‘IN GENERAL.—Subject to subsection 

10 (b), if’’; 

11 (B) by redesignating subsections (b) and 

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

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

14 following: 

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

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

20 age shall be 50 percent of the difference between the 

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

23 of the partial disability. 

24 ‘‘(2) EXCEPTIONS.— 


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1 ‘‘(A) COVERED RECIPIENTS WHO ARE RE2 TIREMENT AGE OR FACE FINANCIAL HARD3 SHIP.—Paragraph (1) shall not apply to a cov4 ered claim for partial disability by an employee 

5 if the employee— 

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

7 Workers’ Compensation Reform Act of 

8 2013, has attained retirement age; or 

9 ‘‘(ii) is a member of a household that 

10 would meet the income and assets require11 ments for eligibility for the supplemental 

12 nutrition assistance program as described 

13 in section 5 of the Food and Nutrition Act 

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

15 any provisions permitting eligibility due to 

16 benefits received under any other law) if 

17 the basic compensation for total disability 

18 of the employee were provided in accord19 ance with paragraph (1). 

20 ‘‘(B) TRANSITION PERIOD FOR CERTAIN

21 EMPLOYEES.—For a covered claim for partial 

22 disability by an employee who is not an em23 ployee described in subparagraph (A), the em24 ployee shall receive basic compensation for parVerDate Mar 15 2010 23:36 Aug 08, 2013 Jkt 029200 PO 00000 Frm 00119 Fmt 6652 Sfmt 6201 E:\BILLS\S1486.IS S1486

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1 tial disability in accordance with subsection (a) 

2 until the later of— 

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

4 attains retirement age; and 

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

6 date of enactment of the Workers’ Com7 pensation Reform Act of 2013.’’. 

8 SEC. 503. AUGMENTED COMPENSATION FOR DEPENDENTS. 

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

10 (1) by redesignating subsection (b) as sub11 section (c); and 

12 (2) by inserting after subsection (a) the fol13 lowing: 

14 ‘‘(b) TERMINATION OF AUGMENTED COMPENSA15 TION.— 

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

17 augmented compensation for dependants under sub18 section (c) shall not be provided. 

19 ‘‘(2) EXCEPTIONS.— 

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

21 claim for total disability by an employee— 

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

24 if the employee is an individual who has an 

25 exempt disability condition; and 


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1 ‘‘(ii) the employee shall receive aug2 mented compensation under subsection (c) 

3 until the date that is 3 years after the date 

4 of enactment of the Workers’ Compensa5 tion Reform Act of 2013 if the employee is 

6 not an employee described in clause (i). 

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

8 claim for partial disability by an employee, the 

9 employee shall receive augmented compensation 

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

11 years after the date of enactment of the Work12 ers’ Compensation Reform Act of 2013. 

13 ‘‘(C) PERMANENT DISABILITY COM14 PENSATED BY A SCHEDULE.—For a claim for a 

15 permanent disability described in section 

16 8107(a) by an employee that commenced before 

17 the date of enactment of the Workers’ Com18 pensation Reform Act of 2013, the employee 

19 shall receive augmented compensation under 

20 subsection (c).’’. 

21 (b) MAXIMUM AND MINIMUM MONTHLY PAY22 MENTS.—Section 8112 is amended— 

23 (1) in subsection (a)— 

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

25 and’’ before ‘‘section 8138’’; 


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1 (B) by striking ‘‘including augmented com2 pensation under section 8110 of this title but’’; 

3 and 

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

appears and inserting ‘‘662 5 ⁄3 percent’’; 

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

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

10 ‘‘(b) EXCEPTIONS.— 

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

12 covered claim for total disability by an employee, if 

13 the employee is an individual who has an exempt 

14 disability condition— 

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

16 disability that is subject to the maximum and 

17 minimum monthly amounts under subsection 

18 (a) shall include any augmented compensation 

19 under section 8110; and 

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

substituting ‘75 percent’ for ‘662 21 ⁄3 percent’ 

22 each place it appears. 

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

24 claim for partial disability by an employee, until the 


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

2 the Workers’ Compensation Reform Act of 2013— 

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

4 disability that is subject to the maximum and 

5 minimum monthly amounts under subsection 

6 (a) shall include any augmented compensation 

7 under section 8110; and 

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

substituting ‘75 percent’ for ‘662 9 ⁄3 percent’ 

10 each place it appears.’’; and 

11 (4) in subsection (c), as redesignated by para12 graph (2), by striking ‘‘subsection (a)’’ and inserting 

13 ‘‘subsections (a) and (b)’’. 

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

15 amended— 

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

percent’’ each place it appears and inserting ‘‘662 17 ⁄3

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

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

20 ‘‘(g) If the death occurred before the date of enact21 ment of the Workers’ Compensation Reform Act of 2013, 

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

‘75 percent’ for ‘662 23 ⁄3 percent’ each place it appears.’’. 

24 (d) DEATH BENEFITS FOR CIVIL AIR PATROL VOL25 UNTEERS.—Section 8141 is amended— 


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1 (1) in subsection (b)(2)(B) by striking ‘‘75 percent’’ and inserting ‘‘662 2 ⁄3 percent (except as pro3 vided in subsection (c))’’; 

4 (2) by redesignating subsection (c) as sub5 section (d); and 

6 (3) by inserting after subsection (b) the fol7 lowing: 

8 ‘‘(c) If the death occurred before the date of enact9 ment of the Workers’ Compensation Reform Act of 2013, 

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

percent’ for ‘662 11 ⁄3 percent’.’’. 

12 SEC. 504. SCHEDULE COMPENSATION PAYMENTS. 

13 Section 8107 is amended— 

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

of 662 15 ⁄3 percent of his monthly pay’’ and inserting 

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

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

18 ‘‘(d) RATE FOR COMPENSATION.— 

19 ‘‘(1) ANNUAL SALARY.— 

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

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

shall be the rate of 662 22 ⁄3 percent of the annual 

23 salary level established under subparagraph 

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

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


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1 amount of compensation payable under the 

2 schedule. 

3 ‘‘(B) ESTABLISHMENT.— 

4 ‘‘(i) IN GENERAL.—The Secretary of 

5 Labor shall establish an annual salary for 

6 purposes of subparagraph (A) in the 

7 amount the Secretary determines will re8 sult in the aggregate cost of payments 

9 made under this section being equal to 

10 what would have been the aggregate cost 

11 of payments under this section if the 

12 amendments made by section 504 of the 

13 Workers’ Compensation Reform Act of 

14 2013 had not been enacted. 

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

16 The annual salary established under clause 

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

18 year by the amount determined by the Sec19 retary of Labor to represent the percent 

20 change in the price index published for De21 cember of the preceding year over the price 

22 index published for the December of the 

23 year prior to the preceding year, adjusted 

24 to the nearest one-tenth of 1 percent. 


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

2 Labor shall calculate the present value for pur3 poses of subparagraph (A) using a rate of inter4 est equal to the average market yield for out5 standing marketable obligations of the United 

6 States with a maturity of 2 years on the first 

7 business day of the month in which the com8 pensation is paid or, in the event that such 

9 marketable obligations are not being issued on 

10 such date, at an equivalent rate selected by the 

11 Secretary of Labor, true discount compounded 

12 annually. 

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

14 occurred before the date of enactment of the Work15 ers’ Compensation Reform Act of 2013, the rate 

under subsection (a) shall be 662 16 ⁄3 percent of the 

17 employee’s monthly pay. 

18 ‘‘(e) SIMULTANEOUS RECEIPT.— 

19 ‘‘(1) TOTAL DISABILITY.—An employee who re20 ceives compensation for total disability under section 

21 8105 may only receive the lump sum of schedule 

22 compensation under this section in addition to and 

23 simultaneously with the benefits for total disability 

24 after the earlier of— 


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1 ‘‘(A) the date on which the basic com2 pensation for total disability of the employee be3 comes 50 percent of the monthly pay of the em4 ployee under section 8105(b); or 

5 ‘‘(B) the date on which augmented com6 pensation of the employee terminates under sec7 tion 8110(b)(2)(A)(ii), if the employee receives 

8 such compensation. 

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

10 receives benefits for partial disability under section 

11 8106 may only receive the lump sum of schedule 

12 compensation under this section in addition to and 

13 simultaneously with the benefits for partial disability 

14 after the earlier of— 

15 ‘‘(A) the date on which the basic com16 pensation for partial disability of the employee 

17 becomes 50 percent of the difference between 

18 the monthly pay of the employee and the 

19 monthly wage-earning capacity of the employee 

20 after the beginning of the partial disability 

21 under section 8106(b); or 

22 ‘‘(B) the date on which augmented com23 pensation of the employee terminates under sec24 tion 8110(b)(2)(B), if the employee receives 

25 such compensation.’’. 


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1 SEC. 505. VOCATIONAL REHABILITATION. 

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

3 (1) in subsection (a)— 

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

5 Labor may’’ and all that follows through ‘‘un6 dergo vocational rehabilitation.’’ and inserting 

7 the following: 

8 ‘‘(a) IN GENERAL.— 

9 ‘‘(1) DIRECTION.—Except as provided in para10 graph (2), not earlier than the date that is 6 months 

11 after the date on which an individual eligible for 

12 wage-loss compensation under section 8105 or 8106 

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

14 Labor determines it would be reasonable under the 

15 circumstances for the individual to begin vocational 

16 rehabilitation, and if vocational rehabilitation may 

17 enable the individual to become capable of more 

18 gainful employment, the Secretary of Labor shall di19 rect the individual to participate in developing a 

20 comprehensive return to work plan and to undergo 

21 vocational rehabilitation at a location a reasonable 

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

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

24 Education, and Welfare in carrying out the pur25 poses of chapter 4 of title 29’’ and inserting 

26 ‘‘the Secretary of Education in carrying out the 


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1 purposes of the Rehabilitation Act of 1973 (29 

2 U.S.C. 701 et seq.)’’; 

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

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

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

6 and 

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

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

9 not direct an individual who has attained retirement 

10 age to participate in developing a comprehensive re11 turn to work plan or to undergo vocational rehabili12 tation.’’; 

13 (2) by redesignating subsection (b) as sub14 section (c); 

15 (3) by inserting after subsection (a) the fol16 lowing: 

17 ‘‘(b) CONTENTS OF RETURN TO WORK PLAN.—A re18 turn to work plan developed under subsection (a)— 

19 ‘‘(1) shall— 

20 ‘‘(A) set forth specific measures designed 

21 to increase the wage-earning capacity of an in22 dividual; 

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

24 and education of the individual and the trainVerDate Mar 15 2010 23:36 Aug 08, 2013 Jkt 029200 PO 00000 Frm 00129 Fmt 6652 Sfmt 6201 E:\BILLS\S1486.IS S1486

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1 ing, educational, and employment opportunities 

2 reasonably available to the individual; and 

3 ‘‘(C) provide that any employment under4 taken by the individual under the return to 

5 work plan be at a location a reasonable distance 

6 from the residence of the individual; 

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

8 out of amounts in the Employees’ Compensation 

9 Fund reasonable expenses of vocational rehabilita10 tion (which may include tuition, books, training fees, 

11 supplies, equipment, and child or dependent care) 

12 during the course of the plan; and 

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

14 years, unless the Secretary finds good cause to grant 

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

16 years.’’; 

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

18 (A) by inserting ‘‘COMPENSATION.—’’ be19 fore ‘‘Notwithstanding’’; and 

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

21 undertaken pursuant to such rehabilitation’’; 

22 and 

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

24 ‘‘(d) ASSISTED REEMPLOYMENT AGREEMENTS.— 


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

2 into an assisted reemployment agreement with an 

3 agency or instrumentality of any branch of the Fed4 eral Government or a State or local government or 

5 a private employer that employs an individual eligi6 ble for wage-loss compensation under section 8105 

7 or 8106 to enable the individual to return to produc8 tive employment. 

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

10 agreement under paragraph (1)— 

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

12 use amounts in the Employees’ Compensation 

13 Fund to reimburse an employer in an amount 

14 equal to not more than 100 percent of the com15 pensation the individual would otherwise receive 

16 under section 8105 or 8106; and 

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

18 3 years. 

19 ‘‘(e) LIST.—To facilitate the hiring of individuals eli20 gible for wage-loss compensation under section 8105 or 

21 8106, the Secretary shall provide a list of such individuals 

22 to the Office of Personnel Management, which the Office 

23 of Personnel Management shall provide to all agencies and 

24 instrumentalities of the Federal Government.’’. 


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1 (b) EMPLOYEES’ COMPENSATION FUND.—Section 

2 8147 is amended by adding at the end: 

3 ‘‘(d) Notwithstanding subsection (b), any benefits or 

4 other payments paid to or on behalf of an employee under 

5 this subchapter or any extension or application thereof for 

6 a recurrence of injury, consequential injury, aggravation 

7 of injury, or increase in percentage of impairment to a 

8 member for which compensation is provided under the 

9 schedule under section 8107 suffered in a permanent posi10 tion with an agency or instrumentality of the United 

11 States while the employment with the agency or instru12 mentality is covered under an assisted reemployment 

13 agreement entered into under section 8104(d) shall not 

14 be included in total cost of benefits and other payments 

15 in the statement provided to the agency or instrumentality 

16 under subsection (b) if the injury was originally incurred 

17 in a position not covered by an assisted reemployment 

18 agreement.’’. 

19 (c) TERMINATION OF VOCATIONAL REHABILITATION

20 REQUIREMENT AFTER RETIREMENT AGE.—Section 

21 8113(b) is amended by adding at the end the following: 

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

23 be required to undergo vocational rehabilitation.’’. 


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1 (d) MANDATORY BENEFIT REDUCTION FOR NON2 COMPLIANCE.—Section 8113(b) is amended by striking 

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

4 (e) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

6 15 of title 31, United States Code, is amended by 

7 adding at the end the following: 

8 ‘‘§ 1538. Authorization for assisted reemployment 

9 ‘‘Funds may be transferred from the Employees’ 

10 Compensation Fund established under section 8147 of 

11 title 5 to the applicable appropriations account for an 

12 agency or instrumentality of any branch of the Federal 

13 Government for the purposes of reimbursing the agency 

14 or instrumentality in accordance with an assisted reem15 ployment agreement entered into under section 8104 of 

16 title 5.’’. 

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

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

19 amended by inserting after the item relating to sec20 tion 1537 the following: 

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

21 SEC. 506. REPORTING REQUIREMENTS. 

22 (a) IN GENERAL.—Chapter 81 is amended by insert23 ing after section 8106 the following: 


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1 ‘‘§ 8106a. Reporting requirements 

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

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

5 or 8106; and 

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

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

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

11 the manner and at the times the Secretary specifies. 

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

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

17 and the value of which can be estimated. 

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

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

22 omits or understates any part of the earnings of the 

23 employee in such an affidavit or other report shall 

24 forfeit the right to compensation with respect to any 

25 period for which the report was required. 


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

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

6 section 8129, unless recovery is waived under that 

7 section.’’. 

8 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

‘‘8106a. Reporting requirements.’’. 

11 SEC. 507. 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. 508. 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 subsection (d) as sub21 section (c). 

22 (c) TECHNICAL AND CONFORMING AMENDMENTS.— 

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


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‘‘8117. Waiting period. 

‘‘8118. Continuation of pay.’’. 

1 SEC. 509. ELECTION OF BENEFITS. 

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

4 ‘‘(e) RETIREMENT BENEFITS.— 

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

6 compensation benefits payable under this subchapter 

7 and under chapter 83 or 84 or any other retirement 

8 system for employees of the Government, for the 

9 same period, shall elect which benefits the individual 

10 will receive. 

11 ‘‘(2) ELECTION.— 

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

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

15 of Labor shall establish, which shall be a rea16 sonable period after the individual has received 

17 notice of a final determination that the indi18 vidual is entitled to compensation benefits pay19 able under this subchapter. 

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

21 paragraph (1) shall be revocable, notwith22 standing any other provision of law, except for 

23 any period during which an individual— 


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1 ‘‘(i) was qualified for benefits payable 

2 under both this subchapter and under a re3 tirement system described in paragraph 

4 (1); and 

5 ‘‘(ii) was paid benefits under the re6 tirement system after having been notified 

7 of eligibility for benefits under this sub8 chapter. 

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

10 Labor shall provide information, and shall ensure 

11 that information is provided, to an individual de12 scribed in paragraph (1) about the benefits available 

13 to the individual under this subchapter or under 

14 chapter 83 or 84 or any other retirement system re15 ferred to in paragraph (1) the individual may elect 

16 to receive.’’. 

17 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

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

20 under chapter 81, paragraphs’’. 

21 SEC. 510. SANCTION FOR NONCOOPERATION WITH FIELD 

22 NURSES. 

23 Section 8123, as amended by section 507, is amended 

24 by adding at the end the following: 

25 ‘‘(f) FIELD NURSES.— 


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

2 ‘field nurse’ means a registered nurse that assists 

3 the Secretary in the medical management of dis4 ability claims under this subchapter and provides 

5 claimants with assistance in coordinating medical 

6 care. 

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

8 field nurses to coordinate medical services and voca9 tional rehabilitation programs for injured employees 

10 under this subchapter. If an employee refuses to co11 operate with a field nurse or obstructs a field nurse 

12 in the performance of duties under this subchapter, 

13 the right to compensation under this subchapter 

14 shall be suspended until the refusal or obstruction 

15 stops.’’. 

16 SEC. 511. SUBROGATION OF CONTINUATION OF PAY. 

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

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

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

20 before ‘‘compensation’’; 

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

22 of pay or’’ before ‘‘compensation’’; and 

23 (3) in subsection (c)— 

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

25 before ‘‘compensation already paid’’; and 


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

2 before ‘‘compensation payable’’. 

3 (b) ADJUSTMENT AFTER RECOVERY FROM A THIRD

4 PERSON.—Section 8132 is amended— 

5 (1) in the first sentence— 

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

7 before ‘‘compensation is payable’’; 

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

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

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

11 and inserting ‘‘by the beneficiary or on behalf 

12 of the beneficiary’’; 

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

14 before ‘‘compensation paid by the United 

15 States’’; and 

16 (E) by striking ‘‘compensation payable to 

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

18 compensation payable to the beneficiary’’; 

19 (2) in the second sentence, by striking ‘‘his des20 ignee’’ and inserting ‘‘the designee of the bene21 ficiary’’; and 

22 (3) in the fourth sentence, by striking ‘‘If com23 pensation’’ and all that follows through ‘‘payable to 

24 him by the United States’’ and inserting ‘‘If con25 tinuation of pay or compensation has not been paid 


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1 to the beneficiary, the money or property shall be 

2 credited against continuation of pay or compensation 

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

4 (c) EFFECTIVE DATE.—This section and the amend5 ments made by this section shall take effect on the date 

6 of enactment of this Act. 

7 SEC. 512. INTEGRITY AND COMPLIANCE. 

8 (a) IN GENERAL.—Subchapter I of chapter 81 is 

9 amended by adding at the end the following: 

10 ‘‘§ 8153. Integrity and Compliance Program 

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

12 ‘‘(1) the term ‘FECA program’ means the Fed13 eral Employees Compensation Program administered 

14 under this subchapter; 

15 ‘‘(2) the term ‘improper payment’ has the 

16 meaning given that term in section 2(g) of the Im17 proper Payments Information Act of 2002 (31 

18 U.S.C. 3321 note); 

19 ‘‘(3) the term ‘Inspector General’— 

20 ‘‘(A) means an Inspector General described 

21 in subparagraph (A), (B), or (I) of section 

22 11(b)(1) of the Inspector General Act of 1978 

23 (5 U.S.C. App.); and 


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1 ‘‘(B) does not include the Inspector Gen2 eral of an entity having no employees covered 

3 under the FECA program; 

4 ‘‘(4) the term ‘Integrity and Compliance Pro5 gram’ means the Integrity and Compliance Program 

6 established under subsection (b); 

7 ‘‘(5) the term ‘provider’ means a provider of 

8 medical or other services under the FECA program; 

9 ‘‘(6) the term ‘Secretary’ means the Secretary 

10 of Labor; and 

11 ‘‘(7) the term ‘Task Force’ means the FECA 

12 Integrity and Compliance Task Force established 

13 under subsection (c)(2)(A). 

14 ‘‘(b) INTEGRITY AND COMPLIANCE PROGRAM.—Not 

15 later than 270 days after the date of enactment of this 

16 section, the Secretary shall establish an Integrity and 

17 Compliance Program for the purpose of preventing, identi18 fying, and recovering fraudulent and other improper pay19 ments for the FECA program, which shall include— 

20 ‘‘(1) procedures for identifying potentially im21 proper payments before payment is made to claim22 ants and providers, including, where appropriate, 

23 predictive analytics; 


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1 ‘‘(2) reviews after payment is made to identify 

2 potentially improper payments to claimants and pro3 viders; 

4 ‘‘(3) on-going screening and verification proce5 dures to ensure the continued eligibility of medical 

6 providers to provide services under the FECA pro7 gram, including licensure, Federal disbarment, and 

8 the existence of relevant criminal convictions; 

9 ‘‘(4) provision of appropriate information, edu10 cation, and training to claimants and providers on 

11 requirements to ensure the integrity of the FECA 

12 program, including payments under the FECA pro13 gram; 

14 ‘‘(5) appropriate controls and audits to ensure 

15 that providers adopt internal controls and proce16 dures for compliance with requirements under the 

17 FECA program; 

18 ‘‘(6) procedures to ensure— 

19 ‘‘(A) initial and continuing eligibility of 

20 claimants for compensation, benefits, or services 

21 under the FECA program; and 

22 ‘‘(B) ongoing verification of information in 

23 databases relating to claimants to ensure accu24 racy and completeness; and 


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1 ‘‘(7) sharing and accessing data and informa2 tion with other agencies and instrumentalities of the 

3 United States, including the United States Postal 

4 Service. 

5 ‘‘(c) INTERAGENCY COOPERATION ON ANTI-FRAUD

6 EFFORTS.— 

7 ‘‘(1) IN GENERAL.—In administering the 

8 FECA program, including the Integrity and Compli9 ance Program, the Secretary shall cooperate with 

10 other agencies and instrumentalities of the United 

11 States (including the United States Postal Service) 

12 and the Inspectors General of such agencies and in13 strumentalities to prevent, identify, and recover 

14 fraudulent and other improper payments under the 

15 FECA program. 

16 ‘‘(2) TASK FORCE.— 

17 ‘‘(A) IN GENERAL.—There is established a 

18 task force, which shall be known as the FECA 

19 Integrity and Compliance Task Force. 

20 ‘‘(B) MEMBERSHIP.—The members of the 

21 Task Force shall be— 

22 ‘‘(i) the Secretary, who shall serve as 

23 the Chairperson of the Task Force; 


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1 ‘‘(ii) the Postmaster General, who 

2 shall serve as the Vice Chairperson of the 

3 Task Force; 

4 ‘‘(iii) the Attorney General; 

5 ‘‘(iv) the Director of the Office of 

6 Management and Budget; and 

7 ‘‘(v) other appropriate Federal offi8 cials, as determined by the Chairperson 

9 and Vice Chairperson of the Task Force. 

10 ‘‘(C) ADVISORY MEMBERS.—The following 

11 officials shall attend meetings of the Task 

12 Force and participate as ad hoc, advisory mem13 bers, to provide technical assistance and guid14 ance to the Task Force with respect to the du15 ties of the Task Force: 

16 ‘‘(i) The Inspector General of the De17 partment of Labor. 

18 ‘‘(ii) The Inspector General of the 

19 United States Postal Service. 

20 ‘‘(iii) The Inspectors General of other 

21 appropriate agencies and instrumentalities 

22 of the United States that employ a signifi23 cant number of individuals receiving com24 pensation, benefits, or services under the 


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1 FECA program, as determined by the 

2 Chairperson of the Task Force. 

3 ‘‘(D) DUTIES.—The Task Force shall— 

4 ‘‘(i) set forth, in writing, a description 

5 of the respective roles and responsibilities 

6 in preventing, identifying, recovering, and 

7 prosecuting fraud under, and otherwise en8 suring integrity and compliance of, the 

9 FECA program of— 

10 ‘‘(I) the Secretary (including sub11 ordinate officials such as the Director 

12 of the Office of Workers’ Compensa13 tion Programs); 

14 ‘‘(II) the Inspector General of 

15 the Department of Labor; 

16 ‘‘(III) the Inspectors General of 

17 agencies and instrumentalities of the 

18 United States that employ claimants 

19 under the FECA program; 

20 ‘‘(IV) the Attorney General; and 

21 ‘‘(V) any other relevant officials; 

22 ‘‘(ii) develop procedures for sharing 

23 information of possible fraud under the 

24 FECA program or other intentional 

25 misstatements by claimants or providers 


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1 under the FECA program, including proce2 dures addressing— 

3 ‘‘(I) notification of appropriate 

4 officials of the Department of Labor 

5 of potential fraud or other intentional 

6 misstatements, including provision of 

7 supporting information; 

8 ‘‘(II) timely and appropriate re9 sponse by officials of the Department 

10 of Labor to notifications described in 

11 subclause (I); 

12 ‘‘(III) the inclusion of informa13 tion and evidence relating to fraud 

14 and other intentional misstatements 

15 in criminal, civil, and administrative 

16 proceedings relating to the provision 

17 of compensation, benefits, or medical 

18 services (including payments to pro19 viders) under the FECA program; 

20 ‘‘(IV) the coordination of crimi21 nal investigations with the administra22 tion of the FECA program; and 

23 ‘‘(V) the protection of informa24 tion relating to an investigation of 

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1 gram from potential disclosure, in2 cluding requirements that enable in3 vestigative files to be appropriately 

4 separated from case management 

5 files; and 

6 ‘‘(iii) not later than 1 year after the 

7 date of enactment of this section, submit 

8 to the Committee on Homeland Security 

9 and Governmental Affairs of the Senate 

10 and the Committee on Oversight and Gov11 ernment Reform and the Committee on 

12 Education and the Workforce of the House 

13 of Representatives a report that includes 

14 the description and procedures required 

15 under clauses (i) and (ii). 

16 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

17 this subsection shall be construed to limit or restrict 

18 any authority of an Inspector General. 

19 ‘‘(d) IMPROVEMENTS TO ACCESS OF FEDERAL DATA20 BASES.— 

21 ‘‘(1) IN GENERAL.—In order to improve compli22 ance with the requirements under and the integrity 

23 of the FECA program, or as required to otherwise 

24 detect and prevent improper payments under the 

25 FECA program (including for purposes of computer 


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1 matching under subsection (e)(1)(D)), upon written 

2 request— 

3 ‘‘(A) the Commissioner of Social Security 

4 shall make available to the Secretary, the Post5 master General, and each Inspector General the 

6 Social Security earnings information of a living 

7 or deceased employee; 

8 ‘‘(B) the Director of the Office of Per9 sonnel Management shall make available to the 

10 Secretary, the Postmaster General, and each 

11 Inspector General the information in the data12 bases of Federal employees and retirees main13 tained by the Director; and 

14 ‘‘(C) the Secretary of Veterans Affairs 

15 shall make available to the Secretary, the Post16 master General, and each Inspector General the 

17 information in the database of disabled individ18 uals maintained by the Secretary of Veterans 

19 Affairs. 

20 ‘‘(2) NATIONAL DIRECTORY OF NEW HIRES.— 

21 Upon written request, the Secretary of Health and 

22 Human Services shall make available to the Sec23 retary, the Postmaster General, each Inspector Gen24 eral, and the Comptroller General of the United 

25 States the information in the National Directory of 


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1 New Hires for purposes of carrying out this sub2 chapter, in order to improve compliance with the re3 quirements under and the integrity of the FECA 

4 program, or as required to otherwise detect and pre5 vent improper payments under the FECA program 

6 (including for purposes of computer matching under 

7 subsection (e)(1)(D)). The Comptroller General may 

8 obtain information from the National Directory of 

9 New Hires for purposes of any audit, evaluation, or 

10 investigation, including any audit, evaluation, or in11 vestigation relating to program integrity. 

12 ‘‘(3) PROCEDURES.—The Secretary shall estab13 lish procedures for correlating the identity and sta14 tus of recipients of compensation, benefits, or serv15 ices under this subchapter with Social Security earn16 ings information described in paragraph (1)(A). 

17 ‘‘(4) PROVISION.—Information requested under 

18 this subsection shall be provided— 

19 ‘‘(A) in a timely manner; 

20 ‘‘(B) at a reasonable cost to the Secretary, 

21 the Postmaster General, or an Inspector Gen22 eral; 

23 ‘‘(C) without cost to the Comptroller Gen24 eral of the United States; and 


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1 ‘‘(D) in the manner, frequency, and form 

2 reasonably specified by the officer making the 

3 request, which, upon request, shall include elec4 tronic form. 

5 ‘‘(5) ASSESSMENT OF DATA COST-EFFECTIVE6 NESS.— 

7 ‘‘(A) IN GENERAL.—The Secretary shall 

8 consider and assess procedures for correlating 

9 the identity and status of recipients of com10 pensation, benefits, or services under this sub11 chapter with information relating to employees, 

12 retirees, and individuals described in subpara13 graphs (B) and (C) of paragraph (1) and para14 graph (2). 

15 ‘‘(B) REPORT.—Not later than 1 year 

16 after the date of enactment of this section, the 

17 Secretary shall submit to the Committee on 

18 Homeland Security and Governmental Affairs 

19 of the Senate and the Committee on Oversight 

20 and Government Reform and the Committee on 

21 Education and the Workforce of the House of 

22 Representatives a report on the cost-effective23 ness of the use of the databases described in 

24 subparagraphs (B) and (C) of paragraph (1) 

25 and paragraph (2) for program compliance and 


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1 integrity. The report required under this sub2 paragraph may be included as part of the re3 port required under subsection (f). 

4 ‘‘(6) UNITED STATES POSTAL SERVICE FECA

5 ENROLLEE DATABASE.—Not later than 180 days 

6 after the date of enactment of this section, in order 

7 to track, verify, and communicate with the Secretary 

8 and other relevant entities, the Postmaster General 

9 shall establish an electronic database of information 

10 relating to employees of the United States Postal 

11 Service who have applied for or are receiving com12 pensation, benefits, or services under this sub13 chapter. 

14 ‘‘(7) RULE OF CONSTRUCTION.—Nothing in 

15 this subsection shall be construed to limit the au16 thority of the Comptroller General of the United 

17 States under section 716 of title 31. 

18 ‘‘(e) GENERAL PROTOCOLS AND SECURITY.— 

19 ‘‘(1) ESTABLISHMENT.— 

20 ‘‘(A) IN GENERAL.—In order to ensure 

21 strong information security and privacy stand22 ards, the Task Force shall establish protocols 

23 for the secure transfer and storage of any infor24 mation provided to an individual or entity 

25 under this section. 


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1 ‘‘(B) CONSIDERATIONS.—In establishing 

2 protocols under subparagraph (A), the Task 

3 Force shall consider any recommendations sub4 mitted to the Secretary by the Inspector Gen5 eral of the Department of Health and Human 

6 Services with respect to the secure transfer and 

7 storage of information, and to comply with pri8 vacy laws and best practices. 

9 ‘‘(C) FRAUD CASE PROTECTION.—The 

10 Task Force shall establish protocols and proce11 dures to enable information and materials relat12 ing to an active investigation of possible fraud 

13 relating to the FECA program to be appro14 priately kept separate from the files for employ15 ees relating to the provision of compensation, 

16 benefits, or services under the FECA program. 

17 ‘‘(D) COMPUTER MATCHING BY FEDERAL

18 AGENCIES FOR PURPOSES OF INVESTIGATION

19 AND PREVENTION OF IMPROPER PAYMENTS

20 AND FRAUD.— 

21 ‘‘(i) IN GENERAL.—Except as pro22 vided in this subparagraph, in accordance 

23 with section 552a (commonly known as the 

24 Privacy Act of 1974), the Secretary, the 

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1 eral, and the head of each agency may 

2 enter into computer matching agreements 

3 that allow ongoing data matching (which 

4 shall include automated data matching) in 

5 order to assist in the detection and preven6 tion of improper payments under the 

7 FECA program. 

8 ‘‘(ii) REVIEW.—Not later than 60 

9 days after a proposal for an agreement 

10 under clause (i) has been presented to a 

11 Data Integrity Board established under 

12 section 552a(u) for consideration, the Data 

13 Integrity Board shall approve or deny the 

14 agreement. 

15 ‘‘(iii) TERMINATION DATE.—An 

16 agreement under clause (i)— 

17 ‘‘(I) shall have a termination 

18 date of less than 3 years; and 

19 ‘‘(II) during the 3-month period 

20 ending on the date on which the 

21 agreement is scheduled to terminate, 

22 may be renewed by the agencies enter23 ing the agreement for not more than 

24 3 years. 


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1 ‘‘(iv) MULTIPLE AGENCIES.—For pur2 poses of this subparagraph, section 

3 552a(o)(1) shall be applied by substituting 

4 ‘between the source agency and the recipi5 ent agency or non-Federal agency or an 

6 agreement governing multiple agencies’ for 

7 ‘between the source agency and the recipi8 ent agency or non-Federal agency’ in the 

9 matter preceding subparagraph (A). 

10 ‘‘(v) COST-BENEFIT ANALYSIS.—An 

11 agreement under clause (i) may be entered 

12 without regard to section 552a(o)(1)(B), 

13 relating to a cost-benefit analysis of the 

14 proposed matching program. 

15 ‘‘(vi) GUIDANCE BY THE OFFICE OF

16 MANAGEMENT AND BUDGET.—Not later 

17 than 6 months after the date of enactment 

18 of the Workers’ Compensation Reform Act 

19 of 2013, and in consultation with the 

20 Council of Inspectors General on Integrity 

21 and Efficiency, the Secretary of Health 

22 and Human Services, the Commissioner of 

23 Social Security, and the head of any other 

24 relevant agency, the Director of the Office 

25 of Management and Budget shall— 


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1 ‘‘(I) issue guidance for agencies 

2 regarding implementing this subpara3 graph, which shall include standards 

4 for reimbursement costs, when nec5 essary, between agencies; and 

6 ‘‘(II) establish standards and de7 velop standard matching agreements 

8 for the purpose of improving the proc9 ess for establishing data use or com10 puter matching agreements. 

11 ‘‘(2) COMPLIANCE.—The Secretary, the Post12 master General, and each Inspector General shall 

13 ensure that any information provided to an indi14 vidual or entity under this section is provided in ac15 cordance with protocols established under paragraph 

16 (1). 

17 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

18 this section shall be construed to affect the rights of 

19 an individual under section 552a(p). 

20 ‘‘(f) REPORT.—Not later than 1 year after the date 

21 of enactment of this section, and annually thereafter for 

22 5 years, the Secretary shall submit a report on the activi23 ties of the Secretary under this section, including imple24 mentation of the Integrity and Compliance Program, to— 


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

2 Governmental Affairs of the Senate; and 

3 ‘‘(2) the Committee on Oversight and Govern4 ment Reform and the Committee on Education and 

5 the Workforce of the House of Representatives. 

6 ‘‘(g) GAO REVIEW.—The Comptroller General of the 

7 United States shall— 

8 ‘‘(1) conduct periodic reviews of the Integrity 

9 and Compliance Program; and 

10 ‘‘(2) submit reports on the results of the re11 views under paragraph (1) to the Committee on 

12 Homeland Security and Governmental Affairs of the 

13 Senate and the Committee on Oversight and Govern14 ment Reform and the Committee on Education and 

15 the Workforce of the House of Representatives not 

16 later than— 

17 ‘‘(A) 2 years after the date of enactment 

18 of this section; and 

19 ‘‘(B) 3 years after submission of the report 

20 under subparagraph (A).’’. 

21 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

22 The table of sections for chapter 81 is amended by insert23 ing after the item relating to section 8152 the following: 

‘‘8153. Integrity and Compliance Program.’’. 


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1 (c) EFFECTIVE DATE.—This section and the amend2 ments made by this section shall take effect on the date 

3 of enactment of this Act. 

4 SEC. 513. AMOUNT OF COMPENSATION. 

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

6 8107(c)(21) is amended— 

7 (1) by striking ‘‘not to exceed $3,500’’ and in8 serting ‘‘in proportion to the severity of the dis9 figurement, not to exceed $50,000,’’; and 

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

11 maximum amount of compensation under this para12 graph shall be increased on March 1 of each year by 

13 the amount determined by the Secretary of Labor to 

14 represent the percent change in the price index pub15 lished for December of the preceding year over the 

16 price index published for the December of the year 

17 prior to the preceding year, adjusted to the nearest 

18 one-tenth of 1 percent.’’. 

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

20 amended— 

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

22 and 

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

24 maximum amount of compensation under this sub25 section shall be increased on March 1 of each year 


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1 by the amount determined by the Secretary of Labor 

2 to represent the percent change in the price index 

3 published for December of the preceding year over 

4 the price index published for the December of the 

5 year prior to the preceding year, adjusted to the 

6 nearest one-tenth of 1 percent.’’. 

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

8 section shall apply to injuries or deaths, respectively, oc9 curring on or after the date of enactment of this Act. 

10 SEC. 514. TERRORISM INJURIES; ZONES OF ARMED CON11 FLICT. 

12 (a) COVERING TERRORISM INJURIES.—Section 

13 8102(b) is amended in the matter preceding paragraph 

14 (1)— 

15 (1) by inserting ‘‘or from an attack by a ter16 rorist or terrorist organization, either known or un17 known,’’ after ‘‘force or individual,’’; and 

18 (2) by striking ‘‘outside’’ and all that follows 

19 through ‘‘1979)’’ and inserting ‘‘outside of the 

20 United States’’. 

21 (b) CONTINUATION OF PAY IN A ZONE OF ARMED

22 CONFLICT.—Section 8118, as amended by section 508(b) 

23 of this Act, is amended— 


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1 (1) in subsection (b), by striking ‘‘Continu2 ation’’ and inserting ‘‘Except as provided under sub3 section (d)(2), continuation’’; 

4 (2) in subsection (c), as redesignated by section 

5 508(b)(4) of this Act, by striking ‘‘subsection (a)’’ 

6 and inserting ‘‘subsection (a) or (d)’’; and 

7 (3) inserting before subsection (e) the following: 

8 ‘‘(d) CONTINUATION OF PAY IN A ZONE OF ARMED

9 CONFLICT.— 

10 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

11 (a), the United States shall authorize the continu12 ation of pay of an employee described in subpara13 graph (A), (C), (D), or (F) of section 8101(1), 

14 who— 

15 ‘‘(A) files a claim for a period of wage loss 

16 due to an injury in performance of duty in a 

17 zone of armed conflict (as determined by the 

18 Secretary of Labor under paragraph (3)); and 

19 ‘‘(B) files the claim for such wage loss ben20 efit with the immediate superior of the em21 ployee not later than 45 days after the later 

22 of— 

23 ‘‘(i) the termination of the assignment 

24 of the employee to the zone of armed con25 flict; or 


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1 ‘‘(ii) the return of the employee to the 

2 United States. 

3 ‘‘(2) CONTINUATION OF PAY.—Notwithstanding 

4 subsection (b), continuation of pay under this sub5 section shall be furnished for a period not to exceed 

6 135 days without any break in time or waiting pe7 riod, unless controverted under regulations pre8 scribed by the Secretary of Labor. 

9 ‘‘(3) DETERMINATION OF ZONES OF ARMED

10 CONFLICT.—For purposes of this subsection, the 

11 Secretary of Labor, in consultation with the Sec12 retary of State and the Secretary of Defense, shall 

13 determine whether a foreign country or other foreign 

14 geographic area outside of the United States (as de15 fined in section 202(a)(7) of the State Department 

16 Basic Authorities Act of 1956 (22 U.S.C. 

17 4302(a)(7)) is a zone of armed conflict based on 

18 whether— 

19 ‘‘(A) the Armed Forces of the United 

20 States are involved in hostilities in the country 

21 or area; 

22 ‘‘(B) the incidence of civil insurrection, 

23 civil war, terrorism, or wartime conditions 

24 threatens physical harm or imminent danger to 


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1 the health or well-being of United States civil2 ian employees in the country or area; 

3 ‘‘(C) the country or area has been des4 ignated a combat zone by the President under 

5 section 112(c) of the Internal Revenue Code of 

6 1986; 

7 ‘‘(D) a contingency operation involving 

8 combat operations directly affects civilian em9 ployees in the country or area; or 

10 ‘‘(E) there exist other relevant conditions 

11 and factors.’’. 

12 SEC. 515. TECHNICAL AND CONFORMING AMENDMENTS. 

13 Chapter 81 is amended— 

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

15 injury that occurred before the effective date of sec16 tion 204(e) of the District of Columbia Self-Govern17 ment and Governmental Reorganization Act (Public 

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

19 before the semicolon; 

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

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

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

23 8106’’ and inserting ‘‘section 8106a’’. 


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1 SEC. 516. REGULATIONS. 

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

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

6 (b) CONTENTS.—The regulations promulgated under 

7 subsection (a) shall include, for purposes of the amend8 ments made by sections 502 and 503, clarification of— 

9 (1) what is a claim; and 

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

12 SEC. 517. EFFECTIVE DATE. 

13 Except as otherwise provided in this title, this title 

14 and the amendments made by this title shall take effect 

15 60 days after the date of enactment of this Act. 

16 TITLE VI—PROPERTY MANAGE17 MENT AND EXPEDITED DIS18 POSAL OF REAL PROPERTY 

19 SEC. 601. SHORT TITLE. 

20 This title may be cited as the ‘‘Federal Real Property 

21 Asset Management Reform Act of 2013’’. 

22 SEC. 602. PURPOSE. 

23 The purpose of this title is to increase the efficiency 

24 and effectiveness of the Federal Government in managing 

25 real property by— 


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1 (1) requiring agencies to maintain an up-to2 date inventory of real property; 

3 (2) establishing a Federal Real Property Coun4 cil to develop guidance on and ensure the implemen5 tation of strategies for better managing Federal real 

6 property; and 

7 (3) authorizing a pilot program to expedite the 

8 disposal of surplus real property. 

9 SEC. 603. PROPERTY MANAGEMENT AND EXPEDITED DIS10 POSAL OF REAL PROPERTY. 

11 Chapter 5 of subtitle I of title 40, United States 

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

13 ‘‘SUBCHAPTER VII—PROPERTY MANAGEMENT 

14 AND EXPEDITED DISPOSAL OF REAL PROP15 ERTY 

16 ‘‘§ 621. Definitions 

17 ‘‘In this subchapter: 

18 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis19 trator’ means the Administrator of General Services. 

20 ‘‘(2) COUNCIL.—The term ‘Council’ means the 

21 Federal Real Property Council established by section 

22 623(a). 

23 ‘‘(3) DIRECTOR.—The term ‘Director’ means 

24 the Director of the Office of Management and Budg25 et. 


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1 ‘‘(4) DISPOSAL.—The term ‘disposal’ means 

2 any action that constitutes the removal of any real 

3 property from the Federal inventory, including sale, 

4 deed, demolition, or exchange. 

5 ‘‘(5) EXCESS PROPERTY.—The term ‘excess 

6 property’ means any real property under the control 

7 of a Federal agency that the head of the Federal 

8 agency determines is not required to meet the needs 

9 or responsibilities of the Federal agency. 

10 ‘‘(6) FEDERAL AGENCY.—The term ‘Federal 

11 agency’ means— 

12 ‘‘(A) an executive department or inde13 pendent establishment in the executive branch 

14 of the Government; or 

15 ‘‘(B) a wholly owned Government corpora16 tion. 

17 ‘‘(7) FIELD OFFICE.—The term ‘field office’ 

18 means any office of a Federal agency that is not the 

19 headquarters office location for the Federal agency. 

20 ‘‘(8) POSTAL PROPERTY.—The term ‘postal 

21 property’ means any building owned by the United 

22 States Postal Service. 

23 ‘‘(9) SURPLUS PROPERTY.— 

24 ‘‘(A) IN GENERAL.—The term ‘surplus 

25 property’ means excess real property that is not 


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1 required to meet the needs or responsibilities of 

2 any Federal agency. 

3 ‘‘(B) EXCLUSIONS.—The term ‘surplus 

4 property’ does not include— 

5 ‘‘(i) any military installation (as de6 fined in section 2910 of the Defense Base 

7 Closure and Realignment Act of 1990 (10 

8 U.S.C. 2687 note; Public Law 101–510)); 

9 ‘‘(ii) any property that is excepted 

10 from the definition of the term ‘property’ 

11 under section 102; 

12 ‘‘(iii) Indian and native Eskimo prop13 erty held in trust by the Federal Govern14 ment as described in section 

15 3301(a)(5)(C)(iii); 

16 ‘‘(iv) real property operated and main17 tained by the Tennessee Valley Authority 

18 pursuant to the Tennessee Valley Author19 ity Act of 1933 (16 U.S.C. 831 et seq.); 

20 ‘‘(v) any real property the Director 

21 excludes for reasons of national security; 

22 ‘‘(vi) any public lands (as defined in 

23 section 203 of the Public Lands Corps Act 

24 of 1993 (16 U.S.C. 1722)) administered 

25 by— 


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1 ‘‘(I) the Secretary of the Interior, 

2 acting through— 

3 ‘‘(aa) the Director of the 

4 Bureau of Land Management; 

5 ‘‘(bb) the Director of the 

6 National Park Service; 

7 ‘‘(cc) the Commissioner of 

8 Reclamation; or 

9 ‘‘(dd) the Director of the 

10 United States Fish and Wildlife 

11 Service; or 

12 ‘‘(II) the Secretary of Agri13 culture, acting through the Chief of 

14 the Forest Service; or 

15 ‘‘(vii) any property operated and 

16 maintained by the United States Postal 

17 Service. 

18 ‘‘(10) UNDERUTILIZED PROPERTY.—The term 

19 ‘underutilized property’ means a portion or the en20 tirety of any real property, including any improve21 ments, that is used— 

22 ‘‘(A) irregularly or intermittently by the 

23 accountable Federal agency for program pur24 poses of the Federal agency; or 


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1 ‘‘(B) for program purposes that can be 

2 satisfied only with a portion of the property. 

3 ‘‘§ 622. Duties of Federal agencies 

4 ‘‘Each Federal agency shall— 

5 ‘‘(1) maintain adequate inventory controls and 

6 accountability systems for real property under the 

7 control of the Federal agency; 

8 ‘‘(2) develop current and future workforce pro9 jections so as to have the capacity to assess the 

10 needs of the Federal workforce regarding the use of 

11 real property; 

12 ‘‘(3) continuously survey real property under 

13 the control of the Federal agency to identify excess 

14 property, underutilized property, and other real 

15 property suitable to be used for— 

16 ‘‘(A) colocation with other Federal agen17 cies; or 

18 ‘‘(B) consolidation with other facilities; 

19 ‘‘(4) promptly report excess property and un20 derutilized property to the Administrator; 

21 ‘‘(5) establish goals that will lead the Federal 

22 agency to reduce excess property and underutilized 

23 property in the inventory of the Federal agency; 


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1 ‘‘(6) submit to the Council a report on all ex2 cess property and underutilized property in the in3 ventory of the Federal agency, including— 

4 ‘‘(A) whether underutilized property can be 

5 better utilized; and 

6 ‘‘(B) the extent to which the Federal agen7 cy believes that the underutilized property 

8 serves the needs of the Federal agency to retain 

9 underutilized property; 

10 ‘‘(7) adopt workplace practices, configurations, 

11 and management techniques that can achieve in12 creased levels of productivity and decrease the need 

13 for real property assets; 

14 ‘‘(8) assess leased space to identify space that 

15 is not fully used or occupied; 

16 ‘‘(9) on an annual basis and subject to the 

17 guidance of the Council— 

18 ‘‘(A) conduct an inventory of real property 

19 under control of the Federal agency; and 

20 ‘‘(B) make an assessment of each real 

21 property, which shall include— 

22 ‘‘(i) the age and condition of the prop23 erty; 

24 ‘‘(ii) the size of the property in square 

25 footage and acreage; 


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1 ‘‘(iii) the geographical location of the 

2 property, including an address and descrip3 tion; 

4 ‘‘(iv) the extent to which the property 

5 is being utilized; 

6 ‘‘(v) the actual annual operating costs 

7 associated with the property; 

8 ‘‘(vi) the total cost of capital expendi9 tures associated with the property; 

10 ‘‘(vii) sustainability metrics associated 

11 with the property; 

12 ‘‘(viii) the number of Federal employ13 ees and functions housed at the property; 

14 ‘‘(ix) the extent to which the mission 

15 of the Federal agency is dependent on the 

16 property; 

17 ‘‘(x) the estimated amount of capital 

18 expenditures projected to maintain and op19 erate the property over each of the next 5 

20 years after the date of enactment of this 

21 subchapter; and 

22 ‘‘(xi) any additional information re23 quired by the Administrator to carry out 

24 section 624; and 


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1 ‘‘(10) provide to the Council and the Adminis2 trator the information described in paragraph (9)(B) 

3 to be used for the establishment and maintenance of 

4 the database described in section 624. 

5 ‘‘§ 623. Colocation among United States Postal Serv6 ice properties 

7 ‘‘(a) IDENTIFICATION OF POSTAL PROPERTY.—Each 

8 year, the Postmaster General may— 

9 ‘‘(1) identify a list of postal properties with 

10 space available for use by Federal agencies; and 

11 ‘‘(2) submit the list to the Council. 

12 ‘‘(b) SUBMISSION OF LIST OF POSTAL PROPERTIES

13 TO FEDERAL AGENCIES.— 

14 ‘‘(1) IN GENERAL.—Not later than 30 days 

15 after the completion of a list under subsection (a), 

16 the Council shall provide the list to each Federal 

17 agency. 

18 ‘‘(2) REVIEW BY FEDERAL AGENCIES.—Not 

19 later than 90 days after the receipt of the list sub20 mitted under paragraph (1), each Federal agency 

21 shall— 

22 ‘‘(A) review the list; 

23 ‘‘(B) identify real property assets under 

24 the control of the Federal agency; and 

25 ‘‘(C) recommend colocations if appropriate. 


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1 ‘‘(c) TERMS OF COLOCATION.—On approval of the 

2 recommendations under subsection (b) by the Postmaster 

3 General and the applicable agency head, the Federal agen4 cy or appropriate landholding entity may work with the 

5 Postmaster General to establish appropriate terms of a 

6 lease for each postal property. 

7 ‘‘§ 624. Establishment of a Federal Real Property 

8 Council 

9 ‘‘(a) ESTABLISHMENT.—There is established a Fed10 eral Real Property Council. 

11 ‘‘(b) PURPOSE.—The purpose of the Council shall 

12 be— 

13 ‘‘(1) to develop guidance and ensure implemen14 tation of an efficient and effective real property 

15 management strategy; 

16 ‘‘(2) to identify opportunities for the Federal 

17 Government to better manage real property assets; 

18 and 

19 ‘‘(3) to reduce the costs of managing real prop20 erty, including operations, maintenance, and secu21 rity. 

22 ‘‘(c) COMPOSITION.— 

23 ‘‘(1) IN GENERAL.—The Council shall be com24 posed exclusively of— 


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1 ‘‘(A) the senior real property officers of 

2 each Federal agency; 

3 ‘‘(B) the Deputy Director for Management 

4 of the Office of Management and Budget; 

5 ‘‘(C) the Controller of the Office of Man6 agement and Budget; 

7 ‘‘(D) the Administrator; and 

8 ‘‘(E) any other full-time or permanent 

9 part-time Federal officials or employees, as the 

10 Chairperson determines to be necessary. 

11 ‘‘(2) CHAIRPERSON.—The Deputy Director for 

12 Management of the Office of Management and 

13 Budget shall serve as Chairperson of the Council. 

14 ‘‘(3) EXECUTIVE DIRECTOR.— 

15 ‘‘(A) IN GENERAL.—The Chairperson shall 

16 designate an Executive Director to assist in 

17 carrying out the duties of the Council. 

18 ‘‘(B) QUALIFICATIONS; FULL-TIME.—The 

19 Executive Director shall— 

20 ‘‘(i) be appointed from among individ21 uals who have substantial experience in the 

22 areas of commercial real estate and devel23 opment, real property management, and 

24 Federal operations and management; and 

25 ‘‘(ii) serve full time. 


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1 ‘‘(d) MEETINGS.— 

2 ‘‘(1) IN GENERAL.—The Council shall meet 

3 subject to the call of the Chairperson. 

4 ‘‘(2) MINIMUM.—The Council shall meet not 

5 fewer than 4 times each year. 

6 ‘‘(e) DUTIES.—The Council, in consultation with the 

7 Director and the Administrator, shall— 

8 ‘‘(1) not later than 1 year after the date of en9 actment of this subchapter, establish a real property 

10 management plan template, to be updated annually, 

11 which shall include performance measures, specific 

12 milestones, measurable savings, strategies, and gov13 ernment-wide goals based on the goals established 

14 under section 622(5) to reduce surplus property or 

15 to achieve better utilization of underutilized prop16 erty, and evaluation criteria to determine the effec17 tiveness of real property management that are de18 signed— 

19 ‘‘(A) to enable Congress and heads of Fed20 eral agencies to track progress in the achieve21 ment of real property management objectives on 

22 a government-wide basis; 

23 ‘‘(B) to improve the management of real 

24 property; and 


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1 ‘‘(C) to allow for comparison of the per2 formance of Federal agencies against industry 

3 and other public sector agencies in terms of 

4 performance; 

5 ‘‘(2) develop standard use rates consistent 

6 throughout each category of space and with non7 governmental space use rates; 

8 ‘‘(3) develop a strategy to reduce the reliance of 

9 Federal agencies on leased space for long-term needs 

10 if ownership would be less costly; 

11 ‘‘(4) provide guidance on eliminating inefficien12 cies in the Federal leasing process; 

13 ‘‘(5) compile a list of real property assets that 

14 are field offices that are suitable for colocation with 

15 other real property assets; and 

16 ‘‘(6) not later than 1 year after the date of en17 actment of this subchapter and annually during the 

18 4-year period beginning on the date that is 1 year 

19 after the date of enactment of this subchapter and 

20 ending on the date that is 5 years after the date of 

21 enactment of this subchapter, the Council shall sub22 mit to the Director a report that contains— 

23 ‘‘(A) a list of the remaining excess prop24 erty, surplus property, and underutilized prop25 erties of each Federal agency; 


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1 ‘‘(B) the progress of the Council toward 

2 developing guidance for Federal agencies to en3 sure that the assessment required under section 

4 622(9)(B) is carried out in a uniform manner; 

5 and 

6 ‘‘(C) the progress of Federal agencies to7 ward achieving the goals established under sec8 tion 622(5). 

9 ‘‘(f) CONSULTATION.—In carrying out the duties de10 scribed in subsection (e), the Council shall also consult 

11 with representatives of— 

12 ‘‘(1) State, local, tribal authorities, and affected 

13 communities; and 

14 ‘‘(2) appropriate private sector entities and 

15 nongovernmental organizations that have expertise 

16 in areas of— 

17 ‘‘(A) commercial real estate and develop18 ment; 

19 ‘‘(B) government management and oper20 ations; 

21 ‘‘(C) space planning; 

22 ‘‘(D) community development, including 

23 transportation and planning; and 

24 ‘‘(E) historic preservation. 


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1 ‘‘(g) COUNCIL RESOURCES.—The Director and the 

2 Administrator shall provide staffing, and administrative 

3 support for the Council, as appropriate. 

4 ‘‘§ 625. Federal real property inventory and database 

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

6 date of enactment of this subchapter, the Administrator 

7 shall establish and maintain a single, comprehensive, and 

8 descriptive database of all real property under the custody 

9 and control of all Federal agencies. 

10 ‘‘(b) CONTENTS.—The database shall include— 

11 ‘‘(1) information provided to the Administrator 

12 under section 622(9)(B); and 

13 ‘‘(2) a list of real property disposals completed, 

14 including— 

15 ‘‘(A) the date and disposal method used 

16 for each real property; 

17 ‘‘(B) the proceeds obtained from the dis18 posal of each real property; 

19 ‘‘(C) the amount of time required to dis20 pose of the real property, including the date on 

21 which the real property is designated as excess 

22 property; 

23 ‘‘(D) the date on which the property is 

24 designated as surplus property and the date on 

25 which the property is disposed; and 


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1 ‘‘(E) all costs associated with the disposal. 

2 ‘‘(c) ACCESSIBILITY.— 

3 ‘‘(1) COMMITTEES.—The database established 

4 under subsection (a) shall be made available on re5 quest to the Committee on Homeland Security and 

6 Governmental Affairs and the Committee on Envi7 ronment and Public Works of the Senate and the 

8 Committee on Oversight and Government Reform 

9 and the Committee on Transportation and Infra10 structure of the House of Representatives. 

11 ‘‘(2) GENERAL PUBLIC.—Not later than 3 years 

12 after the date of enactment of this subchapter and 

13 to the extent consistent with national security, the 

14 Administrator shall make the database established 

15 under subsection (a) accessible to the public at no 

16 cost through the website of the General Services Ad17 ministration. 

18 ‘‘§ 626. Limitation on certain leasing authorities 

19 ‘‘(a) IN GENERAL.—Except as provided in subsection 

20 (b), not later than December 31 of each year following 

21 the date of enactment of this subchapter, a Federal agency 

22 with independent leasing authority shall submit to the 

23 Council a list of all leases, including operating leases, in 

24 effect on the date of enactment of this subchapter that 

25 includes— 


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1 ‘‘(1) the date on which each lease was executed; 

2 ‘‘(2) the date on which ease lease will expire; 

3 ‘‘(3) a description of the size of the space; 

4 ‘‘(4) the location of the property; 

5 ‘‘(5) the tenant agency; 

6 ‘‘(6) the total annual rental rate; and 

7 ‘‘(7) the amount of the net present value of the 

8 total estimated legal obligations of the Federal Gov9 ernment over the life of the contract. 

10 ‘‘(b) EXCEPTION.—Subsection (a) shall not apply 

11 to— 

12 ‘‘(1) the United States Postal Service; 

13 ‘‘(2) the Department of Veterans Affairs; or 

14 ‘‘(3) any other property the President excludes 

15 from subsection (a) for reasons of national security. 

16 ‘‘§ 627. Expedited disposal pilot program 

17 ‘‘(a) ESTABLISHMENT.—The Director shall establish 

18 a pilot program to dispose of, by sale, transfer, or other 

19 means of disposal, any surplus property. 

20 ‘‘(1) PROPERTIES FOR EXPEDITED DISPOSAL.— 

21 ‘‘(A) IN GENERAL.—On an annual basis, 

22 the Director may authorize the expedited dis23 posal of not more than 200 surplus properties. 

24 ‘‘(B) PRIORITY.—In determining which 

25 properties to dispose of, the Director shall give 


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1 priority to surplus properties that have the 

2 highest fair market value and the greatest po3 tential for disposal. 

4 ‘‘(C) COSTS ASSOCIATED WITH DIS5 POSAL.— 

6 ‘‘(i) IN GENERAL.—The Administrator 

7 may obligate an amount to pay any direct 

8 and indirect costs under section 572 re9 lated to identifying and preparing prop10 erties to be reported as excess property by 

11 a Federal agency. 

12 ‘‘(ii) REIMBURSEMENT.—An amount 

13 obligated under clause (i) shall be paid 

14 from the proceeds of any sale of real prop15 erty under this subsection. 

16 ‘‘(iii) NET PROCEEDS.—Net proceeds 

17 shall be distributed under subsection (b). 

18 ‘‘(D) MAXIMUM NET PROCEEDS.—Any real 

19 property authorized to be disposed of by sale of 

20 under subparagraph (A) shall disposed of in a 

21 manner that, as determined by the Adminis22 trator in consultation with the head of the ap23 plicable Federal agency, is structured and mar24 keted to maximize the value to the Federal Gov25 ernment. 


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1 ‘‘(E) MONETARY PROCEEDS REQUIRE2 MENT.—Surplus property may be disposed of 

3 under this section only if disposal of the prop4 erty will generate monetary proceeds to the 

5 Federal Government that— 

6 ‘‘(i) exceed the costs of disposal of the 

7 property; and 

8 ‘‘(ii) are not less than 90 percent of 

9 fair market value. 

10 ‘‘(2) APPLICABILITY OF CERTAIN LAW.—Any 

11 expedited disposal of real property conducted under 

12 this section shall not be subject to— 

13 ‘‘(A) any section of An Act Authorizing the 

14 Transfer of Certain Real Property for Wildlife, 

15 or Other Purposes (16 U.S.C. 667b); 

16 ‘‘(B) sections 107 and 317 of title 23; 

17 ‘‘(C) sections 545(b)(8), 550, 553, 554, 

18 and 1304(b); 

19 ‘‘(D) section 501 of the McKinney-Vento 

20 Homeless Assistance Act (42 U.S.C. 11411); 

21 ‘‘(E) section 47151 of title 49; or 

22 ‘‘(F) section 13(d) of the Surplus Property 

23 Act of 1944 (50 U.S.C. App. 1622(d)). 

24 ‘‘(3) EFFECT.—Except as provided in para25 graph (2), nothing in this subchapter terminates or 


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1 in any way limits the authority of any Federal agen2 cy under any other provision of law to dispose of 

3 real property. 

4 ‘‘(b) USE OF PROCEEDS.— 

5 ‘‘(1) IN GENERAL.—Of the proceeds received 

6 from the disposal of any real property under this 

7 subchapter— 

8 ‘‘(A) not less than 80 percent shall be re9 turned to the general fund of the Treasury for 

10 debt reduction; 

11 ‘‘(B) the lesser of 18 percent or the share 

12 of proceeds otherwise authorized to be retained 

13 under law shall be retained by the Federal 

14 agency that has custody and is accountable for 

15 the real property, subject to paragraph (2); 

16 ‘‘(C) not greater than 2 percent shall be 

17 made available to carry out section 627, subject 

18 to annual appropriations; and 

19 ‘‘(D) any remaining share of the proceeds 

20 shall be returned to the general fund of the 

21 Treasury for Federal budget deficit reduction. 

22 ‘‘(2) LIMITATION ON USE OF PROCEEDS.—Any 

23 proceeds retained by Federal agencies under this 

24 section shall be— 


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1 ‘‘(A) deposited into the appropriate real 

2 property account of the Federal agency that 

3 had custody and accountability for the real 

4 property, with the funds expended only as au5 thorized in annual appropriations Acts; 

6 ‘‘(B) used— 

7 ‘‘(i) by not later than 2 years after 

8 the date of disposal of the real property; 

9 and 

10 ‘‘(ii) only for activities relating to 

11 Federal real property asset management 

12 and disposal; and 

13 ‘‘(C) if not used by the date described in 

14 subparagraph (B)(i), shall be deposited in the 

15 Treasury and used for Federal budget deficit 

16 reduction. 

17 ‘‘(c) PUBLIC BENEFIT.— 

18 ‘‘(1) CONVEYANCE.—Except as provided in 

19 paragraph (2), if a real property authorized to be 

20 disposed of under subsection (a) has not been dis21 posed of by the date that is 2 years after the date 

22 the property is listed for sale, the Director, in con23 sultation with the Administrator and the Secretary 

24 of Housing and Urban Development, may consider a 

25 request from the disposing Federal agency that the 


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1 real property be conveyed to State and local govern2 ments or nonprofit organizations for various public 

3 purposes or uses as permitted by applicable law. 

4 ‘‘(2) PREDOMINANT USE AND SIZE STAND5 ARDS.— 

6 ‘‘(A) IN GENERAL.—Any real property au7 thorized to be disposed of under subsection (a) 

8 shall not be conveyed under paragraph (1) if— 

9 ‘‘(i) the predominant use of the prop10 erty is not for housing; and 

11 ‘‘(ii)(I) the area of the property is not 

12 less than 25,000 square feet; or 

13 ‘‘(II) the appraised fair market value 

14 of the property is greater than $1,000,000. 

15 ‘‘(B) APPRAISED FAIR MARKET VALUE.— 

16 The appraised fair market value described in 

17 subparagraph (A)(ii)(II) shall be determined by 

18 the Federal agency with custody or control of 

19 the property, in consultation with the Adminis20 trator and standard appraisal practice. 

21 ‘‘(d) ENFORCEMENT.— 

22 ‘‘(1) INCREASE IN SIZE OF INVENTORY.—Ex23 cept as provided in paragraph (2), if a Federal agen24 cy fails to make available for public sale the real 

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1 section (a) by the date that is 18 months after the 

2 date on which the authorization is made under sub3 section (a), that Federal agency, except for specific 

4 exceptions promulgated by the Director, shall not in5 crease the size of the civilian real property inventory, 

6 unless the square footage of the increase is offset, 

7 within an appropriate time as determined by the Di8 rector, through consolidation, colocation, or disposal 

9 of another building space from the inventory of that 

10 Federal agency. 

11 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 

12 apply to a Federal agency that acquires any real 

13 property not under the administrative jurisdiction of 

14 the Federal Government, by sale or lease, until the 

15 Director submits a certification to Congress of the 

16 disposal of all of those surplus properties. 

17 ‘‘(e) TERMINATION OF AUTHORITY.—The authority 

18 provided by this section terminates on the date that is 5 

19 years after the date of enactment of this subchapter. 

20 ‘‘§ 628. Homeless assistance grants 

21 ‘‘(a) DEFINITIONS.—In this section: 

22 ‘‘(1) ELIGIBLE NONPROFIT ORGANIZATION.— 

23 The term ‘eligible nonprofit organization’ means a 

24 nonprofit organization that is a representative of the 

25 homeless. 


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1 ‘‘(2) HOMELESS.—The term ‘homeless’ has the 

2 meaning given the term in section 103 of the 

3 McKinney-Vento Homeless Assistance Act (42 

4 U.S.C. 11302), except that subsection (c) of that 

5 section shall not apply. 

6 ‘‘(3) PERMANENT HOUSING.—The term ‘perma7 nent housing’ has the meaning given the term in 

8 section 401 of the McKinney-Vento Homeless Assist9 ance Act (42 U.S.C. 11360). 

10 ‘‘(4) PRIVATE NONPROFIT ORGANIZATION.— 

11 The term ‘private nonprofit organization’ has the 

12 meaning given the term in section 401 of the 

13 McKinney-Vento Homeless Assistance Act (42 

14 U.S.C. 11360). 

15 ‘‘(5) REPRESENTATIVE OF THE HOMELESS.— 

16 The term ‘representative of the homeless’ has the 

17 meaning given the term in section 501(i) of the 

18 McKinney-Vento Homeless Assistance Act (42 

19 U.S.C. 11411(i)). 

20 ‘‘(6) SECRETARY.—The term ‘Secretary’ means 

21 the Secretary of Housing and Urban Development. 

22 ‘‘(7) TRANSITIONAL HOUSING.—The term 

23 ‘transitional housing’ has the meaning given the 

24 term in section 401 of the McKinney-Vento Home25 less Assistance Act (42 U.S.C. 11360). 


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1 ‘‘(b) GRANT AUTHORITY.— 

2 ‘‘(1) IN GENERAL.—To the extent amounts are 

3 made available under section 626(b)(1)(B) for use 

4 under this section, the Secretary shall make grants 

5 to eligible private nonprofit organizations through 

6 the continuum of care program established under 

7 subtitle C of title IV of the McKinney-Vento Home8 less Assistance Act (42 U.S.C. 11381 et seq.), to 

9 purchase real property suitable for use to assist the 

10 homeless in accordance with subsection (c). 

11 ‘‘(2) TERMS AND CONDITIONS.—Except as oth12 erwise provided in this section, a grant under this 

13 section shall be subject to the same terms and condi14 tions as a grant under the continuum of care pro15 gram established under subtitle C of title IV of the 

16 McKinney-Vento Homeless Assistance Act (42 

17 U.S.C. 11381 et seq.). 

18 ‘‘(c) USE OF PROPERTIES FOR HOUSING OR SHEL19 TER FOR THE HOMELESS.— 

20 ‘‘(1) ELIGIBLE USES.—An eligible private non21 profit organization that receives a grant under sub22 section (b) shall use the amounts received only to 

23 purchase or rehabilitate real property for use to pro24 vide permanent housing, transitional housing, or 

25 temporary shelter to the homeless. 


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1 ‘‘(2) TERM OF USE.—The Secretary may not 

2 make a grant under subsection (b) to an eligible pri3 vate nonprofit organization unless the eligible pri4 vate nonprofit organization provides to the Secretary 

5 such assurances as the Secretary determines nec6 essary to ensure that any real property purchased or 

7 rehabilitated using amounts received under the grant 

8 is used only for the uses described in paragraph (1) 

9 for a period of not less than 15 years. 

10 ‘‘(d) PREFERENCE.—In awarding grants under sub11 section (b), the Secretary shall give preference to eligible 

12 private nonprofit organizations that operate within areas 

13 in which Federal real property is being sold under the dis14 posal program authorized under section 626. 

15 ‘‘(e) REGULATIONS.—The Secretary may promulgate 

16 such regulations as are necessary to carry out this sec17 tion.’’. 

18 SEC. 604. REPORT OF THE COMPTROLLER GENERAL. 

19 (a) DRAFT.—Not later than 3 years after the date 

20 of enactment of this Act, the Comptroller General of the 

21 United States shall submit to Congress a draft report on 

22 the expedited disposal pilot program established by the 

23 amendments made by section 3. 

24 (b) FINAL.—Not later than 5 years after the date 

25 of enactment of this Act, the Comptroller General of the 


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1 United States shall submit to Congress a final report on 

2 the expedited disposal pilot program established by the 

3 amendments made by section 3. 

4 SEC. 605. TECHNICAL AND CONFORMING AMENDMENT. 

5 The table of sections for chapter 5 of subtitle I of 

6 title 40, United States Code, is amended by inserting after 

7 the item relating to section 611 the following: 

‘‘SUBCHAPTER VII—PROPERTY MANAGEMENT AND EXPEDITED DISPOSAL OF

REAL PROPERTY

‘‘621. Definitions. 

‘‘622. Duties of Federal agencies. 

‘‘623. Colocation among United States Postal Service properties. 

‘‘624. Establishment of a Federal Real Property Council. 

‘‘625. Federal real property inventory and database. 

‘‘626. Limitation on certain leasing authorities. 

‘‘627. Expedited disposal pilot program. 

‘‘628. Homeless assistance grants.’’. 

Æ 


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