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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1486 Reported in Senate (RS)]

                                                       Calendar No. 523
113th CONGRESS
  2d Session
                                S. 1486

                          [Report No. 113-237]

  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

                             July 31, 2014

               Reported by Mr. Carper, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

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

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Postal Reform Act of 
2013''.</DELETED>

<DELETED>SEC. 2. TABLE OF CONTENTS.</DELETED>

<DELETED>    The table of contents for this Act is as 
follows:</DELETED>

<DELETED>Sec. 1. Short title.
<DELETED>Sec. 2. Table of contents.
<DELETED>Sec. 3. Definitions.
               <DELETED>TITLE I--POSTAL SERVICE WORKFORCE

<DELETED>Sec. 101. Annual Federal Employee Retirement System and Civil 
                            Service Retirement System Assessments.
<DELETED>Sec. 102. Postal service authority to negotiate retirement 
                            benefit terms for new employees.
<DELETED>Sec. 103. Restructuring of payments for retiree health 
                            benefits.
<DELETED>Sec. 104. Postal service health benefits plan.
<DELETED>Sec. 105. Medicare coordination efforts for postal service 
                            employees and retirees.
<DELETED>Sec. 106. Labor disputes.
              <DELETED>TITLE II--POSTAL SERVICE OPERATIONS

<DELETED>Sec. 201. Maintenance of delivery service standards.
<DELETED>Sec. 202. Preserving mail processing capacity.
<DELETED>Sec. 203. Preserving community post offices.
<DELETED>Sec. 204. Changes to mail delivery schedule.
<DELETED>Sec. 205. Delivery point modernization.
<DELETED>Sec. 206. Postal services for market-dominant products.
               <DELETED>TITLE III--POSTAL SERVICE REVENUE

<DELETED>Sec. 301. Postal rates.
<DELETED>Sec. 302. Nonpostal services.
<DELETED>Sec. 303. Shipping of wine, beer, and distilled spirits.
              <DELETED>TITLE IV--POSTAL SERVICE GOVERNANCE

<DELETED>Sec. 401. Board of Governors of the Postal Service.
<DELETED>Sec. 402. Strategic Advisory Commission on Postal Service 
                            Solvency and Innovation.
<DELETED>Sec. 403. Long-term solvency plan; annual financial plan and 
                            budget.
<DELETED>Sec. 404. Chief Innovation Officer; innovation strategy.
<DELETED>Sec. 405. Area and district office structure.
<DELETED>Sec. 406. Inspector General of the Postal Service.
         <DELETED>TITLE V--FEDERAL EMPLOYEES' COMPENSATION ACT

<DELETED>Sec. 501. Short title; references.
<DELETED>Sec. 502. Federal workers compensation reforms for retirement-
                            age employees.
<DELETED>Sec. 503. Augmented compensation for dependents.
<DELETED>Sec. 504. Schedule compensation payments.
<DELETED>Sec. 505. Vocational rehabilitation.
<DELETED>Sec. 506. Reporting requirements.
<DELETED>Sec. 507. Disability management review; independent medical 
                            examinations.
<DELETED>Sec. 508. Waiting period.
<DELETED>Sec. 509. Election of benefits.
<DELETED>Sec. 510. Sanction for noncooperation with field nurses.
<DELETED>Sec. 511. Subrogation of continuation of pay.
<DELETED>Sec. 512. Integrity and compliance.
<DELETED>Sec. 513. Amount of compensation.
<DELETED>Sec. 514. Terrorism injuries; zones of armed conflict.
<DELETED>Sec. 515. Technical and conforming amendments.
<DELETED>Sec. 516. Regulations.
<DELETED>Sec. 517. Effective date.
 <DELETED>TITLE VI--PROPERTY MANAGEMENT AND EXPEDITED DISPOSAL OF REAL 
                                PROPERTY

<DELETED>Sec. 601. Short title.
<DELETED>Sec. 602. Purpose.
<DELETED>Sec. 603. Property management and expedited disposal of real 
                            property.
<DELETED>Sec. 604. Report of the Comptroller General.
<DELETED>Sec. 605. Technical and conforming amendment.

<DELETED>SEC. 3. DEFINITIONS.</DELETED>

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

          <DELETED>TITLE I--POSTAL SERVICE WORKFORCE</DELETED>

<DELETED>SEC. 101. ANNUAL FEDERAL EMPLOYEE RETIREMENT SYSTEM AND CIVIL 
              SERVICE RETIREMENT SYSTEM ASSESSMENTS.</DELETED>

<DELETED>    (a) Use of Postal-Specific Assumptions in Normal Cost 
Calculation.--</DELETED>
        <DELETED>    (1) In general.--Section 8423(a) of title 5, 
        United States Code, is amended--</DELETED>
                <DELETED>    (A) in paragraph (1)--</DELETED>
                        <DELETED>    (i) in subparagraph (A)--
                        </DELETED>
                                <DELETED>    (I) in clause (i), by 
                                inserting ``or (C)'' after 
                                ``subparagraph (B)''; and</DELETED>
                                <DELETED>    (II) in clause (ii), by 
                                striking ``and'';</DELETED>
                        <DELETED>    (ii) in subparagraph (B)(ii), by 
                        striking the period at the end and inserting 
                        ``; and''; and</DELETED>
                        <DELETED>    (iii) by adding at the end the 
                        following:</DELETED>
                <DELETED>    ``(C) the product of--</DELETED>
                        <DELETED>    ``(i) the normal-cost percentage, 
                        as determined for employees of the United 
                        States Postal Service under paragraph (5), 
                        multiplied by</DELETED>
                        <DELETED>    ``(ii) the aggregate amount of 
                        basic pay payable by the United States Postal 
                        Service, for the period involved, to employees 
                        of the United States Postal Service.''; 
                        and</DELETED>
                <DELETED>    (B) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(5)(A) In determining the normal-cost percentage 
        for employees of the United States Postal Service, the Office 
        shall use--</DELETED>
                <DELETED>    ``(i) demographic factors specific to the 
                employees; and</DELETED>
                <DELETED>    ``(ii) economic assumptions regarding wage 
                and salary growth that reflect the specific past, and 
                likely future, pay for the employees.</DELETED>
        <DELETED>    ``(B) The United States Postal Service shall 
        provide any data or projections the Office requires in order to 
        determine the normal-cost percentage for employees of the 
        United States Postal Service consistent with subparagraph 
        (A).</DELETED>
        <DELETED>    ``(C) The Office shall review the determination of 
        the normal-cost percentage for employees of the United States 
        Postal Service and make such adjustments as are necessary--
        </DELETED>
                <DELETED>    ``(i) upon request of the United States 
                Postal Service, but no more frequently than once each 
                fiscal year; and</DELETED>
                <DELETED>    ``(ii) at any additional times, as the 
                Office considers appropriate.''.</DELETED>
        <DELETED>    (2) Initial determination.--Not later than 90 days 
        after the date of enactment of this Act, the Office shall 
        determine the normal-cost percentage for employees of the 
        United States Postal Service in accordance with the 
        requirements under section 8423(a)(5) of title 5, United States 
        Code, as added by paragraph (1).</DELETED>
<DELETED>    (b) Postal Funding Surplus or Liability.--</DELETED>
        <DELETED>    (1) Treatment of postal funding surplus.--Section 
        8423(b) of title 5, United States Code, is amended--</DELETED>
                <DELETED>    (A) by redesignating paragraph (5) as 
                paragraph (6); and</DELETED>
                <DELETED>    (B) by inserting after paragraph (4) the 
                following:</DELETED>
        <DELETED>    ``(5)(A) In this paragraph, the term `postal 
        funding surplus' means the amount by which the amount of 
        supplemental liability computed under paragraph (1)(B) is less 
        than zero.</DELETED>
        <DELETED>    ``(B)(i) After the date on which the Office 
        determines or redetermines under paragraph (7)(C) the amount of 
        supplemental liability computed under paragraph (1)(B) as of 
        the close of the fiscal year ending on September 30, 2013, and 
        if such amount is less than zero, the Postmaster General may 
        request that some or all of the amount of the postal funding 
        surplus be returned to the Postal Service, and not later than 
        10 days after the request, the Director shall transfer to the 
        United States Postal Service from the Fund an amount equal to 
        the portion of the postal funding surplus requested for use in 
        accordance with this subparagraph.</DELETED>
        <DELETED>    ``(ii) Of the amount transferred under clause (i), 
        not more than $6,000,000,000 may be used by the United States 
        Postal Service for the purposes of repaying any obligation 
        issued under section 2005(a) of title 39.</DELETED>
        <DELETED>    ``(C) If the amount of supplemental liability 
        computed under paragraph (1)(B) as of the close of any fiscal 
        year commencing after September 30, 2013, is less than zero, 
        the Office shall establish an amortization schedule, including 
        a series of annual installments, to be transferred to the 
        United States Postal Service from the Fund, commencing on 
        September 30 of the subsequent fiscal year, which provides for 
        the liquidation of the postal funding surplus by September 30, 
        2054.''.</DELETED>
        <DELETED>    (2) Supplemental liability calculation.--
        </DELETED>
                <DELETED>    (A) FERS.--Section 8423(b) of title 5, 
                United States Code, as amended by paragraph (1) of this 
                subsection, is amended--</DELETED>
                        <DELETED>    (i) in paragraph (6), as so 
                        redesignated, in the matter preceding 
                        subparagraph (A), by striking ``For the 
                        purpose'' and inserting ``Subject to paragraph 
                        (7), for the purpose''; and</DELETED>
                        <DELETED>    (ii) by adding at the end the 
                        following:</DELETED>
        <DELETED>    ``(7)(A) For the purpose of carrying out paragraph 
        (1)(B) with respect to the fiscal year ending September 30, 
        2013, and each fiscal year thereafter, the Office shall, 
        consistent with subsection (a)(5), use--</DELETED>
                <DELETED>    ``(i) demographic factors specific to 
                current and former employees of the United States 
                Postal Service; and</DELETED>
                <DELETED>    ``(ii) economic assumptions regarding wage 
                and salary growth that reflect the specific past and 
                likely future pay for current employees of the United 
                States Postal Service.</DELETED>
        <DELETED>    ``(B) The United States Postal Service shall 
        provide any data or projections the Office requires in order to 
        carry out paragraph (1)(B) consistent with subparagraph (A) of 
        this paragraph.</DELETED>
        <DELETED>    ``(C) Not later than June 14, 2014, the Office 
        shall determine or redetermine whether there is a postal 
        funding surplus (as defined in paragraph (5)) or a supplemental 
        liability described in paragraph (1)(B) (and the amount 
        thereof) as of the close of the fiscal year ending on September 
        30, 2013, in accordance with the requirements under 
        subparagraph (A) of this paragraph.''.</DELETED>
                <DELETED>    (B) CSRS.--Section 8348(h) of title 5, 
                United States Code, is amended--</DELETED>
                        <DELETED>    (i) in paragraph (2), by striking 
                        subparagraph (B) and inserting the 
                        following:</DELETED>
<DELETED>    ``(B)(i)(I) Not later than June 14, 2014, the Office shall 
redetermine the Postal surplus or supplemental liability as of the 
close of the fiscal year ending on September 30, 2013, in accordance 
with the requirements under paragraph (4).</DELETED>
<DELETED>    ``(II) If the result of the redetermination under 
subclause (I) is a surplus, that amount shall remain in the Fund until 
distribution is authorized under subparagraph (C).</DELETED>
<DELETED>    ``(III) If the result of the redetermination under 
subclause (I) is a supplemental liability, the Office shall establish 
an amortization schedule, including a series of annual installments 
commencing on September 30, 2015, which provides for the liquidation of 
such liability by September 30, 2054.</DELETED>
<DELETED>    ``(ii)(I) The Office shall redetermine the Postal surplus 
or supplemental liability as of the close of each fiscal year beginning 
after September 30, 2013, in accordance with the requirements under 
paragraph (4).</DELETED>
<DELETED>    ``(II) If the result of the redetermination under 
subclause (I) is a surplus, that amount shall remain in the Fund until 
distribution is authorized under subparagraph (C).</DELETED>
<DELETED>    ``(III) On and after June 15, 2015, if the result of the 
redetermination under subclause (I) is a supplemental liability, the 
Office shall establish an amortization schedule, including a series of 
annual installments commencing on September 30 of the subsequent fiscal 
year, which provides for the liquidation of such liability by September 
30, 2054.''; and</DELETED>
                        <DELETED>    (ii) by adding at the end the 
                        following:</DELETED>
        <DELETED>    ``(4)(A) For the purpose of carrying out 
        paragraphs (1) and (2), the Office shall, consistent with 
        section 8423(a)(5), use--</DELETED>
                <DELETED>    ``(i) demographic factors specific to 
                current and former employees of the United States 
                Postal Service; and</DELETED>
                <DELETED>    ``(ii) economic assumptions regarding wage 
                and salary growth that reflect the specific past and 
                likely future pay for current employees of the United 
                States Postal Service.</DELETED>
        <DELETED>    ``(B) The United States Postal Service shall 
        provide any data or projections the Office requires in order to 
        carry out paragraphs (1) and (2) consistent with subparagraph 
        (A) of this paragraph.''.</DELETED>

<DELETED>SEC. 102. POSTAL SERVICE AUTHORITY TO NEGOTIATE RETIREMENT 
              BENEFIT TERMS FOR NEW EMPLOYEES.</DELETED>

<DELETED>    (a) Authority To Negotiate Retirement Benefit Terms.--
</DELETED>
        <DELETED>    (1) Collective bargaining over certain retirement 
        benefits.--Section 1005 of title 39, United States Code, is 
        amended by adding at the end the following:</DELETED>
<DELETED>    ``(g)(1) In this subsection--</DELETED>
        <DELETED>    ``(A) the term `collective bargaining agreement' 
        means a collective bargaining agreement between the Postal 
        Service and a bargaining representative recognized under 
        section 1203 entered into after the date of enactment of the 
        Postal Reform Act of 2013;</DELETED>
        <DELETED>    ``(B) the term `new employee' means an individual 
        who becomes an officer or employee of the Postal Service after 
        the date of enactment of the Postal Reform Act of 
        2013;</DELETED>
        <DELETED>    ``(C) the term `not covered under the FERS defined 
        benefit plan', with respect to an officer or employee of the 
        Postal Service, means that service by the officer or employee 
        of the Postal Service as an officer or employee of the Postal 
        Service shall not be creditable service for purposes of chapter 
        84 of title 5.</DELETED>
<DELETED>    ``(2)(A) A collective bargaining agreement may provide, 
notwithstanding chapter 84 of title 5, that some or all new employees 
covered under the collective bargaining agreement shall be not covered 
under the FERS defined benefit plan.</DELETED>
<DELETED>    ``(B) If a new employee is not covered under the FERS 
defined benefit plan pursuant to a collective bargaining agreement, any 
subsequent service by the new employee as an officer or employee of the 
Postal Service shall be not covered under the FERS defined benefit 
plan.</DELETED>
<DELETED>    ``(C) Subject to the requirements under this subsection, a 
collective bargaining agreement may include one or more additional 
retirement benefit plans for the benefit of some or all new employees 
covered under the collective bargaining agreement.</DELETED>
<DELETED>    ``(3)(A) A collective bargaining agreement may establish, 
with respect to some or all new employees covered under the collective 
bargaining agreement--</DELETED>
        <DELETED>    ``(i) without regard to section 8422 of title 5, 
        and subject to subparagraph (C) of this paragraph and paragraph 
        (2)(B), the amounts to be deducted and withheld from the pay of 
        the new employees for deposit in the Treasury of the United 
        States to the credit of the Civil Service Retirement and 
        Disability Fund;</DELETED>
        <DELETED>    ``(ii) without regard to section 8432 of title 5, 
        whether the Postal Service shall make contributions to the 
        Thrift Savings Fund for the benefit of the new employees, and, 
        if the Postal Service shall make such contributions, the 
        amounts that the Postal Service shall contribute; and</DELETED>
        <DELETED>    ``(iii) for any retirement benefit plan 
        established under the bargaining agreement, the amounts to be 
        deducted and withheld from the pay of the new employees under 
        the retirement benefit plan for the benefit of the new 
        employees.</DELETED>
<DELETED>    ``(B) Except as provided in paragraph (2)(B), a collective 
bargaining agreement may establish the amounts described in 
subparagraph (A)(i) with respect to some or all new employees who were 
covered under a previous collective bargaining agreement.</DELETED>
<DELETED>    ``(C) The Postal Service shall, under section 8422(c) of 
title 5, deposit in the Treasury to the credit of the Civil Service 
Retirement and Disability Fund the amount that the Postal Service would 
have deducted and withheld from the basic pay of each officer and 
employee of the Postal Service, except an officer or employee who is 
not covered under the FERS defined benefit plan, without regard to 
subparagraph (A)(i) or any agreement regarding amounts to be deducted 
and withheld under subparagraph (A)(i).</DELETED>
<DELETED>    ``(4) If any new employee is not covered under the FERS 
defined benefit plan pursuant to a collective bargaining agreement, any 
member of the Postal Career Executive Service shall be not covered 
under the FERS defined benefit plan on and after the effective date of 
the collective bargaining agreement.</DELETED>
<DELETED>    ``(5) Except as provided in paragraph (3)(A), nothing in 
this subsection or in a provision of a collective bargaining agreement 
entered under this subsection shall affect the coverage of an officer 
or employee of the Postal Service under subchapter III of chapter 84 of 
the United States Code (relating to the Thrift Savings 
Plan).''.</DELETED>
        <DELETED>    (2) Applicability of laws relating to federal 
        employees.--Section 1005 of title 39, United States Code, is 
        amended--</DELETED>
                <DELETED>    (A) in subsection (d)(1), by striking 
                ``Officers'' and inserting ``Except as provided in 
                subsection (g), officers''; and</DELETED>
                <DELETED>    (B) in subsection (f), in the second 
                sentence--</DELETED>
                        <DELETED>    (i) by inserting ``84,'' before 
                        ``87,''; and</DELETED>
                        <DELETED>    (ii) by striking ``this 
                        subsection.'' and inserting ``this subsection 
                        or subsection (g).''.</DELETED>
<DELETED>    (b) Special Rules Relating to FERS Coverage for Covered 
Postal Employees.--</DELETED>
        <DELETED>    (1) In general.--Subchapter II of chapter 84 of 
        title 5, United States Code, is amended by adding at the end 
        the following:</DELETED>
<DELETED>``Sec. 8426. Postal Service retirement</DELETED>
<DELETED>    ``The application of sections 8422 and 8423 of this title 
and subchapters III and VII of this chapter with respect to an officer 
or employee of the Postal Service may be modified as provided under 
section 1005(g) of title 39.''.</DELETED>
        <DELETED>    (2) Technical and conforming amendments.--The 
        table of sections for chapter 84 of title 5, United States 
        Code, is amended by adding at the end the following:</DELETED>

<DELETED>``8426. Postal Service retirement.''.

<DELETED>SEC. 103. RESTRUCTURING OF PAYMENTS FOR RETIREE HEALTH 
              BENEFITS.</DELETED>

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

<DELETED>SEC. 104. POSTAL SERVICE HEALTH BENEFITS PLAN.</DELETED>

<DELETED>    (a) Definitions.--In this section--</DELETED>
        <DELETED>    (1) the term ``bargaining representative'' means a 
        bargaining representative recognized under section 1203 of 
        title 39, United States Code;</DELETED>
        <DELETED>    (2) the term ``covered employee'' means an officer 
        or employee of the Postal Service who is--</DELETED>
                <DELETED>    (A) represented by a bargaining 
                representative; or</DELETED>
                <DELETED>    (B) a member of the Postal Career 
                Executive Service;</DELETED>
        <DELETED>    (3) the term ``Federal Employee Health Benefits 
        Program'' means the health benefits program under chapter 89 of 
        title 5, United States Code;</DELETED>
        <DELETED>    (4) the term ``participant'' means--</DELETED>
                <DELETED>    (A) a covered employee who is--</DELETED>
                        <DELETED>    (i) represented by a bargaining 
                        representative that enters into an agreement to 
                        establish a Postal Service Health Benefits 
                        Plan; or</DELETED>
                        <DELETED>    (ii) if any bargaining 
                        representative enters into an agreement to 
                        establish a Postal Service Health Benefits 
                        Plan, a member of the Postal Career Executive 
                        Service; and</DELETED>
                <DELETED>    (B) an officer or employee of the Postal 
                Service who--</DELETED>
                        <DELETED>    (i) is not a covered employee; 
                        and</DELETED>
                        <DELETED>    (ii) elects to participate in the 
                        Postal Service Health Benefits Plan; 
                        and</DELETED>
        <DELETED>    (5) the term ``Postal Service Health Benefits 
        Plan'' means the health benefits plan that may be agreed to 
        under subsection (b)(1).</DELETED>
<DELETED>    (b) Collective Bargaining.--</DELETED>
        <DELETED>    (1) In general.--Consistent with section 1005(f) 
        of title 39, United States Code, the Postal Service may 
        negotiate individually or jointly with bargaining 
        representatives and enter into a collective bargaining 
        agreement or agreements with 1 or more of those bargaining 
        representatives to establish a single Postal Service Health 
        Benefits Plan that--</DELETED>
                <DELETED>    (A) satisfies the conditions under 
                subsection (c); and</DELETED>
                <DELETED>    (B) may be a health benefits plan offered 
                under chapter 89 of title 5, United States 
                Code.</DELETED>
        <DELETED>    (2) Consultation with opm.--The Postal Service and 
        bargaining representatives shall conduct negotiations under 
        paragraph (1) in consultation with the Director of the Office 
        of Personnel Management.</DELETED>
        <DELETED>    (3) Consultation with supervisory and managerial 
        personnel.--In the course of negotiations under paragraph (1), 
        the Postal Service shall consult with each of the organizations 
        of supervisory and other managerial personnel that are 
        recognized under section 1004 of title 39, United States Code, 
        concerning the views of the personnel represented by each of 
        those organizations.</DELETED>
        <DELETED>    (4) Disputes.--If the Postal Service or a 
        bargaining representative offers a proposed agreement for 
        negotiation under paragraph (1) and the parties do not reach 
        agreement within 180 days after the commencement of collective 
        bargaining on the proposal, the procedures under section 
        1207(d) of title 39, United States Code, shall apply upon the 
        election of any party to the negotiations.</DELETED>
        <DELETED>    (5) Time limitation.--The authority under this 
        subsection shall extend until the date that is 2 years after 
        the date of enactment of this Act.</DELETED>
<DELETED>    (c) Postal Service Health Benefits Plan.--The Postal 
Service Health Benefits Plan--</DELETED>
        <DELETED>    (1) shall--</DELETED>
                <DELETED>    (A) be available for participation by--
                </DELETED>
                        <DELETED>    (i) all covered employees 
                        represented by a bargaining representative 
                        entering an agreement described in subsection 
                        (b)(1); and</DELETED>
                        <DELETED>    (ii) all covered employees who are 
                        members of the Postal Career Executive 
                        Service;</DELETED>
                <DELETED>    (B) be available for participation by any 
                officer or employee of the Postal Service who is not a 
                covered employee, at the option solely of that officer 
                or employee;</DELETED>
                <DELETED>    (C) provide coverage that is actuarially 
                equivalent to the coverage offered under the types of 
                plans available under the Federal Employee Health 
                Benefits Program, as determined by the Director of the 
                Office of Personnel Management;</DELETED>
                <DELETED>    (D) be administered in a manner determined 
                in an agreement or agreements reached under subsection 
                (b);</DELETED>
                <DELETED>    (E) unless the Postal Service Health 
                Benefits Plan is a health benefits plan offered under 
                chapter 89 of title 5, United States Code, provide for 
                transition of coverage under the Federal Employee 
                Health Benefits Program of all participants in the 
                Postal Service Health Benefits Plan to coverage under 
                the Postal Service Health Benefits Plan; and</DELETED>
                <DELETED>    (F) if the Postal Service Health Benefits 
                Plan is a health benefits plan offered under chapter 89 
                of title 5, United States Code, and except as provided 
                in section 8903c of title 5, United States Code, as 
                added by section 105 of this Act, provide that the 
                Postal Service Health Benefits Plan is the only health 
                benefits plan under the Federal Employee Health 
                Benefits Program in which a participant in the Postal 
                Service Health Benefits Plan may participate as an 
                employee;</DELETED>
        <DELETED>    (2) may provide dental benefits; and</DELETED>
        <DELETED>    (3) may provide vision benefits.</DELETED>
<DELETED>    (d) Agreement and Implementation.--If an agreement or 
agreements are reached under subsection (b) to provide a Postal Service 
Health Benefits Plan--</DELETED>
        <DELETED>    (1) the Postal Service shall implement the Postal 
        Service Health Benefits Plan;</DELETED>
        <DELETED>    (2) the Postal Service Health Benefits Plan shall 
        constitute an agreement between the collective bargaining 
        representatives and the Postal Service for purposes of section 
        1005(f) of title 39, United States Code; and</DELETED>
        <DELETED>    (3) unless the Postal Service Health Benefits Plan 
        is a health benefits plan offered under chapter 89 of title 5, 
        United States Code, participants in the Postal Service Health 
        Benefits Plan may not participate as employees in the Federal 
        Employees Health Benefits Program.</DELETED>
<DELETED>    (e) Governmental Plan.--The Postal Service Health Benefits 
Plan shall be a governmental plan as that term is defined under section 
3(32) of Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1002(32)).</DELETED>
<DELETED>    (f) Report.--Not later than 6 months after the earlier of 
the date on which any agreement is reached under subsection (b) and 
June 30, 2016, the Postal Service shall submit a report to the 
Committee on Homeland Security and Governmental Affairs of the Senate 
and the Committee on Oversight and Government Reform of the House of 
Representatives that--</DELETED>
        <DELETED>    (1) reports on the implementation of this section; 
        and</DELETED>
        <DELETED>    (2) requests any additional statutory authority 
        that the Postal Service determines is necessary to carry out 
        the purposes of this section.</DELETED>

<DELETED>SEC. 105. MEDICARE COORDINATION EFFORTS FOR POSTAL SERVICE 
              EMPLOYEES AND RETIREES.</DELETED>

<DELETED>    (a) Additional Enrollment Options Under Federal Employees 
Health Benefits Plans.--Chapter 89 of title 5, United States Code, is 
amended by inserting after section 8903b the following:</DELETED>
<DELETED>``Sec. 8903c. Coordination with Medicare for Postal Service 
              employees and annuitants</DELETED>
<DELETED>    ``(a) Definitions.--In this section--</DELETED>
        <DELETED>    ``(1) the term `contract year' means a calendar 
        year in which health benefits plans are administered under this 
        chapter;</DELETED>
        <DELETED>    ``(2) the term `Medicare part A' means the 
        Medicare program for hospital insurance benefits under part A 
        of title XVIII of the Social Security Act (42 U.S.C. 1395c et 
        seq.);</DELETED>
        <DELETED>    ``(3) the term `Medicare part B' means the 
        Medicare program for supplementary medical insurance benefits 
        under part B of title XVIII of the Social Security Act (42 
        U.S.C. 1395j et seq.); and</DELETED>
        <DELETED>    ``(4) the term `Postal Service employee or 
        annuitant' means an individual who is--</DELETED>
                <DELETED>    ``(A) an employee of the Postal Service 
                covered under this chapter; or</DELETED>
                <DELETED>    ``(B) an annuitant covered under this 
                chapter whose Government contribution is paid by the 
                Postal Service or the Postal Service Retiree Health 
                Benefits Fund under section 8906(g)(2).</DELETED>
<DELETED>    ``(b) Enrollment Options.--</DELETED>
        <DELETED>    ``(1) Establishment.--</DELETED>
                <DELETED>    ``(A) In general.--For contract years 
                beginning on or after January 1, 2015, the Office shall 
                establish enrollment options for health benefits plans 
                that are open only to Postal Service employees and 
                annuitants, and family members of a Postal Service 
                employee or annuitant, who are enrolled in Medicare 
                part A and Medicare part B.</DELETED>
                <DELETED>    ``(B) Additional plans.--The enrollment 
                options established under this subsection shall be in 
                addition to any other health benefit plan or enrollment 
                option otherwise available to Postal Service employees 
                or annuitants under this chapter and shall not affect 
                the eligibility of a Postal Service employee or 
                annuitant for any another health benefit plan or 
                enrollment option under this chapter.</DELETED>
        <DELETED>    ``(2) Enrollment eligibility.--</DELETED>
                <DELETED>    ``(A) In general.--Any Postal Service 
                employee or annuitant, or family member of a Postal 
                Service employee or annuitant, who is enrolled in 
                Medicare part A and Medicare part B may enroll in 1 of 
                the enrollment options established under paragraph 
                (1).</DELETED>
                <DELETED>    ``(B) Determination of eligibility.--
                Eligibility to enroll in an enrollment option 
                established under paragraph (1) shall be determined 
                without regard to the requirements under section 
                8905(b).</DELETED>
        <DELETED>    ``(3) Value of coverage.--The Office shall ensure 
        that the aggregate actuarial value of coverage under the 
        enrollment options established under this subsection, in 
        combination with the value of coverage under Medicare part A 
        and Medicare part B, shall be not less than the actuarial value 
        of the most closely corresponding enrollment options for each 
        plan available under section 8905, in combination with the 
        value of coverage under Medicare part A and Medicare part 
        B.</DELETED>
        <DELETED>    ``(4) Enrollment options.--</DELETED>
                <DELETED>    ``(A) In general.--The enrollment options 
                established under paragraph (1) shall include--
                </DELETED>
                        <DELETED>    ``(i) an individual option, for 
                        Postal Service employees or annuitants enrolled 
                        in Medicare part A and Medicare part 
                        B;</DELETED>
                        <DELETED>    ``(ii) a self and family option, 
                        for Postal Service employees or annuitants and 
                        family members who are each enrolled in 
                        Medicare part A and Medicare part B; 
                        and</DELETED>
                        <DELETED>    ``(iii) a self and family option, 
                        for Postal Service employees or annuitants--
                        </DELETED>
                                <DELETED>    ``(I) who are enrolled in 
                                Medicare part A and Medicare part B; 
                                and</DELETED>
                                <DELETED>    ``(II) the family members 
                                of whom are not enrolled in Medicare 
                                part A or Medicare part B.</DELETED>
                <DELETED>    ``(B) Specific sub-options.--The Office 
                may establish more specific enrollment options within 
                the types of options described under subparagraph 
                (A).</DELETED>
        <DELETED>    ``(5) Reduced premiums to account for medicare 
        coordination.--In determining the premiums for the enrollment 
        options under paragraph (4), the Office shall--</DELETED>
                <DELETED>    ``(A) establish a separate risk pool for 
                individuals eligible for coverage under any of those 
                options; and</DELETED>
                <DELETED>    ``(B) ensure that--</DELETED>
                        <DELETED>    ``(i) the premiums are reduced 
                        from the premiums otherwise established under 
                        this chapter to directly reflect the full cost 
                        savings to the health benefits plans due to the 
                        complete coordination of benefits with Medicare 
                        part A and Medicare part B for Postal Service 
                        employees or annuitants, or family members of 
                        Postal Service employees or annuitants, who are 
                        enrolled in Medicare part A and Medicare part 
                        B; and</DELETED>
                        <DELETED>    ``(ii) the cost savings described 
                        under clause (i) result solely in the reduction 
                        of--</DELETED>
                                <DELETED>    ``(I) the premiums paid by 
                                the Postal Service employee or 
                                annuitant; and</DELETED>
                                <DELETED>    ``(II) the Government 
                                contributions paid by the Postal 
                                Service or other employer.</DELETED>
<DELETED>    ``(c) Postal Service Consultation.--The Office shall 
establish the enrollment options and premiums under this section in 
consultation with the Postal Service.''.</DELETED>
<DELETED>    (b) Technical and Conforming Amendments.--The table of 
sections for chapter 89 of title 5, United States Code, is amended by 
inserting after the item relating to section 8903b the 
following:</DELETED>

<DELETED>``8903c. Coordination with Medicare for Postal Service 
                            employees and annuitants.''.
<DELETED>    (c) Effective Date.--The amendments made by subsection (a) 
shall apply with respect to contract years beginning on or after 
January 1, 2015.</DELETED>
<DELETED>    (d) Special Enrollment Period for Postal Service Employees 
and Annuitants.--</DELETED>
        <DELETED>    (1) Special enrollment period.--Section 1837 of 
        the Social Security Act (42 U.S.C. 1395p) is amended by adding 
        at the end the following new subsection:</DELETED>
<DELETED>    ``(m)(1) In the case of any individual who, as of the date 
of enactment of the Postal Reform Act of 2013, is a Postal Service 
employee or annuitant (as defined in section 8903c(a) of title 5, 
United States Code) at the time the individual is entitled to part A 
under section 226 or section 226A and who is eligible to enroll but who 
has elected not to enroll (or to be deemed enrolled) during the 
individual's initial enrollment period, there shall be a special 
enrollment period described in paragraph (2).</DELETED>
<DELETED>    ``(2) The special enrollment period described in this 
paragraph, with respect to an individual, is the 1-year period 
beginning on July 1, 2014.</DELETED>
<DELETED>    ``(3) In the case of an individual who enrolls during the 
special enrollment period provided under paragraph (1), the coverage 
period under this part shall begin on the first day of the month in 
which the individual enrolls.''.</DELETED>
        <DELETED>    (2) Waiver of increase of premium.--Section 
        1839(b) of the Social Security Act (42 U.S.C. 1395r(b)) is 
        amended by striking ``(i)(4) or (l)'' and inserting ``(i)(4), 
        (l), or (m)''.</DELETED>

<DELETED>SEC. 106. LABOR DISPUTES.</DELETED>

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

         <DELETED>TITLE II--POSTAL SERVICE OPERATIONS</DELETED>

<DELETED>SEC. 201. MAINTENANCE OF DELIVERY SERVICE STANDARDS.</DELETED>

<DELETED>    During the 2-year period beginning on the date of 
enactment of this Act, the Postal Service shall maintain the service 
standards for first-class mail and periodicals under part 121 of title 
39, Code of Federal Regulations, as in effect on the date of enactment 
of this Act.</DELETED>

<DELETED>SEC. 202. PRESERVING MAIL PROCESSING CAPACITY.</DELETED>

<DELETED>    (a) Definition of Postal Facility.--In this section, the 
term ``postal facility'' means a processing and distribution center, 
processing and distribution facility, network distribution center, or 
other facility that is operated by the Postal Service, the primary 
function of which is to sort and process mail.</DELETED>
<DELETED>    (b) Moratorium on Closures of Postal Facilities.--During 
the 2-year period beginning on the date of enactment of this Act, the 
Postal Service may not close or consolidate any postal facility that is 
open as of the date of enactment of this Act.</DELETED>

<DELETED>SEC. 203. PRESERVING COMMUNITY POST OFFICES.</DELETED>

<DELETED>    Section 404(d) of title 39, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) by redesignating paragraphs (5) and (6) as 
        paragraphs (6) and (7), respectively;</DELETED>
        <DELETED>    (2) by striking paragraphs (1) through (4) and 
        inserting the following:</DELETED>
<DELETED>    ``(d)(1) In this subsection, the term `post office' means 
a post office, post office branch, post office classified station, or 
other facility that is operated by the Postal Service, the primary 
function of which is to provide retail postal services.</DELETED>
<DELETED>    ``(2) The Postal Service, prior to making a determination 
under subsection (a)(3) of this section as to the necessity for the 
discontinuance of any post office, shall, to the extent practicable and 
appropriate--</DELETED>
        <DELETED>    ``(A) consider whether--</DELETED>
                <DELETED>    ``(i) to discontinue the post office and 
                another post office located within a reasonable 
                distance;</DELETED>
                <DELETED>    ``(ii) instead of discontinuing the post 
                office--</DELETED>
                        <DELETED>    ``(I) to reduce the number of 
                        hours a day that the post office operates; 
                        or</DELETED>
                        <DELETED>    ``(II) to continue operating the 
                        post office for the same number of hours a 
                        day;</DELETED>
                <DELETED>    ``(iii) to procure a contract providing 
                full, or less than full, retail services in the 
                community served by the post office; or</DELETED>
                <DELETED>    ``(iv) to provide postal services to the 
                community served by the post office--</DELETED>
                        <DELETED>    ``(I) through a letter carrier; 
                        or</DELETED>
                        <DELETED>    ``(II) by co-locating postal 
                        services at a commercial or government 
                        entity;</DELETED>
        <DELETED>    ``(B) provide postal customers served by the post 
        office an opportunity to present their views, which may be by 
        nonbinding survey conducted by mail; and</DELETED>
        <DELETED>    ``(C) if the Postal Service determines to 
        discontinue the post office, provide adequate public notice of 
        its intention to discontinue such post office at least 60 days 
        prior to the proposed date of such discontinuance to persons 
        served by such post office.</DELETED>
<DELETED>    ``(3) The Postal Service, in making a determination 
whether or not to discontinue a post office--</DELETED>
        <DELETED>    ``(A) shall consider, to the extent practicable 
        and appropriate--</DELETED>
                <DELETED>    ``(i) the effect of the discontinuance on 
                the community served by such post office;</DELETED>
                <DELETED>    ``(ii) the effect of the discontinuance on 
                businesses, including small businesses, in the 
                area;</DELETED>
                <DELETED>    ``(iii) the effect of such discontinuance 
                on employees of the Postal Service employed at such 
                office;</DELETED>
                <DELETED>    ``(iv) whether such discontinuance is 
                consistent with the policy of the Government, as stated 
                in section 101(b) of this title, that the Postal 
                Service shall provide a maximum degree of effective and 
                regular postal services to rural areas, communities, 
                and small towns where post offices are not self-
                sustaining;</DELETED>
                <DELETED>    ``(v) the extent to which the community 
                served by the post office lacks access to Internet 
                phone service;</DELETED>
                <DELETED>    ``(vi) the extent to which postal 
                customers served by the post office would continue 
                after the discontinuance to receive substantially 
                similar access to essential items and time-sensitive 
                communications;</DELETED>
                <DELETED>    ``(vii) the proximity and accessibility of 
                other post offices;</DELETED>
                <DELETED>    ``(viii) whether substantial economic 
                savings to the Postal Service would result from such 
                discontinuance; and</DELETED>
                <DELETED>    ``(ix) such other factors as the Postal 
                Service determines are necessary; and</DELETED>
        <DELETED>    ``(B) may not consider compliance with any 
        provision of the Occupational Safety and Health Act of 1970 (29 
        U.S.C. 651 et seq.).</DELETED>
<DELETED>    ``(4) Any determination of the Postal Service to 
discontinue a post office shall be in writing and shall include the 
findings of the Postal Service, to the extent practicable and 
appropriate, with respect to the considerations required to be made 
under paragraph (3) of this subsection. Such determination and findings 
shall be made available to persons served by such post office by public 
notice.</DELETED>
<DELETED>    ``(5)(A) The Postal Service shall take no action to 
discontinue a post office until 60 days after its written determination 
is made available to persons served by such post office.</DELETED>
<DELETED>    ``(B) The Postal Service shall take no action to 
discontinue a post office until 60 days after the Postal Service 
provides written notice of the determination under paragraph (4) to the 
State board of elections for the State in which the post office is 
located.'';</DELETED>
        <DELETED>    (3) in paragraph (6), as redesignated by this 
        section--</DELETED>
                <DELETED>    (A) by striking ``close or consolidate'' 
                and inserting ``discontinue''; and</DELETED>
                <DELETED>    (B) by striking ``paragraph (3)'' and 
                inserting ``paragraph (4)''; and</DELETED>
        <DELETED>    (4) in paragraph (7), as redesignated by this 
        section, by striking ``paragraph (5)'' and inserting 
        ``paragraph (6)''.</DELETED>

<DELETED>SEC. 204. CHANGES TO MAIL DELIVERY SCHEDULE.</DELETED>

<DELETED>    (a) Limitation on Change in Schedule.--The Postal Service 
may establish a general, nationwide delivery schedule of 5 or fewer 
days per week to street addresses under the authority of the Postal 
Service under title 39, United States Code, if--</DELETED>
        <DELETED>    (1) the Postal Service determines that such a 
        delivery schedule would contribute to the achievement of long-
        term solvency; and</DELETED>
        <DELETED>    (2) not less than 1 year has elapsed since the 
        date of enactment of this Act.</DELETED>
<DELETED>    (b) Implementation.--</DELETED>
        <DELETED>    (1) In general.--If the Postal Service intends to 
        establish a change in delivery schedule under subsection (a), 
        the Postal Service, to the extent practicable and appropriate, 
        shall--</DELETED>
                <DELETED>    (A) identify customers and communities for 
                which the change may have a disproportionate, negative 
                impact, including small business customers and the 
                customers identified as ``particularly affected'' in 
                the Advisory Opinion on Elimination of Saturday 
                Delivery issued by the Commission on March 24, 
                2011;</DELETED>
                <DELETED>    (B) develop measures to ameliorate any 
                disproportionately negative impact the change would 
                have on customers and communities identified under 
                paragraph (1); and</DELETED>
                <DELETED>    (C) not later than 3 months before the 
                effective date for any proposed change, submit a report 
                that includes the determination required under 
                subsection (a)(1) and details any measures developed 
                pursuant to subparagraph (B) of this paragraph to--
                </DELETED>
                        <DELETED>    (i) the Committee on Homeland 
                        Security and Governmental Affairs of the 
                        Senate;</DELETED>
                        <DELETED>    (ii) the Committee on Oversight 
                        and Government Reform of the House of 
                        Representatives; and</DELETED>
                        <DELETED>    (iii) the Commission.</DELETED>
        <DELETED>    (2) Rule of construction.--Nothing in this 
        subsection shall be construed to affect the authority of the 
        Postal Service to establish a nationwide delivery schedule of 5 
        or fewer days per week if the conditions in subsection (a) are 
        satisfied.</DELETED>
<DELETED>    (c) GAO Report.--Not later than 270 days after the date of 
enactment of this Act, the Comptroller General of the United States 
shall submit to the Committee on Homeland Security and Governmental 
Affairs of the Senate and the Committee on Oversight and Government 
Reform of the House of Representatives a report evaluating the extent 
to which a change in delivery schedule would improve the financial 
condition of the Postal Service and assist in the efforts of the Postal 
Service to achieve long-term solvency, taking into consideration other 
ongoing and planned efforts to increase revenue and reduce costs, 
consistent with the requirements of this Act.</DELETED>
<DELETED>    (d) Rules of Construction.--Nothing in this section shall 
be construed to--</DELETED>
        <DELETED>    (1) require the decrease or increase in delivery 
        frequency for any route for which the Postal Service provided 
        delivery on fewer than 6 days per week as of the date of 
        enactment of this Act;</DELETED>
        <DELETED>    (2) authorize any change in--</DELETED>
                <DELETED>    (A) the days and times that postal retail 
                service or any mail acceptance is available at postal 
                retail facilities or processing facilities; 
                or</DELETED>
                <DELETED>    (B) the locations at which postal retail 
                service or mail acceptance occurs at postal retail 
                facilities or processing facilities;</DELETED>
        <DELETED>    (3) require any change in the frequency of 
        delivery to a post office box;</DELETED>
        <DELETED>    (4) prohibit the collection or delivery of a 
        competitive mail product on a weekend, a recognized Federal 
        holiday, or any other specific day of the week; or</DELETED>
        <DELETED>    (5) prohibit the Postal Service from exercising 
        its authority to make changes to processing or retail 
        networks.</DELETED>
<DELETED>    (e) Packages.--Notwithstanding any other provision of this 
section, for a period of not less than 2 years, beginning on the date 
of enactment of this Act, the Postal Service shall provide package 
service--</DELETED>
        <DELETED>    (1) 6 days per week to each street address that 
        was eligible to receive package service 6 days per week as of 
        January 1, 2013; and</DELETED>
        <DELETED>    (2) 7 days per week to each street address for 
        which the Postal Service determines that such service provides 
        an economic benefit to the Postal Service.</DELETED>
<DELETED>    (f) Mailbox Access.--If the Postal Service establishes a 
general, nationwide delivery schedule of 5 or fewer days per week 
consistent with the provisions of this section, the Postal Service 
shall amend the Mailing Standards of the United States, Domestic Mail 
Manual to ensure that the provisions of section 508.3.2.10 of such 
manual, as in effect on January 1, 2013, shall apply on any day on 
which the Postal Service does not deliver the mail under the 
established delivery schedule.</DELETED>

<DELETED>SEC. 205. DELIVERY POINT MODERNIZATION.</DELETED>

<DELETED>    (a) In General.--Subchapter VII of chapter 36 of title 39, 
United States Code, is amended by adding at the end the 
following:</DELETED>
<DELETED>``Sec. 3692. Delivery point modernization</DELETED>
<DELETED>    ``(a) Definitions.--In this section, the following 
definitions shall apply:</DELETED>
        <DELETED>    ``(1) Centralized delivery.--The term `centralized 
        delivery' means a primary mode of mail delivery whereby mail is 
        delivered to a group or cluster of mail receptacles at a single 
        location.</DELETED>
        <DELETED>    ``(2) Curbside delivery.--The term `curbside 
        delivery' means a primary mode of mail delivery whereby mail is 
        delivered to a mail receptacle that is situated at the edge of 
        a public sidewalk abutting a road or curb, at a road, or at a 
        curb.</DELETED>
        <DELETED>    ``(3) Delivery point.--The term `delivery point' 
        means a mailbox or other receptacle to which mail is 
        delivered.</DELETED>
        <DELETED>    ``(4) District office.--The term `district office' 
        means the central office of an administrative field unit with 
        responsibility for postal operations in a designated geographic 
        area (as defined under regulations, directives, or other 
        guidance of the Postal Service).</DELETED>
        <DELETED>    ``(5) Door delivery.--The term `door delivery'--
        </DELETED>
                <DELETED>    ``(A) means a primary mode of mail 
                delivery whereby mail is--</DELETED>
                        <DELETED>    ``(i) delivered to a mail 
                        receptacle at or near a postal customer's door; 
                        or</DELETED>
                        <DELETED>    ``(ii) hand-delivered to a postal 
                        customer; and</DELETED>
                <DELETED>    ``(B) does not include curbside or 
                centralized delivery.</DELETED>
        <DELETED>    ``(6) Primary mode of mail delivery.--The term 
        `primary mode of mail delivery' means the typical method by 
        which the Postal Service delivers mail to the delivery point of 
        a postal customer.</DELETED>
<DELETED>    ``(b) Policy.--Except as otherwise provided in this 
section, including paragraphs (4) and (5) of subsection (c), it shall 
be the policy of the Postal Service to use the primary mode of mail 
delivery that is most cost-effective and is in the best long-term 
interest of the Postal Service.</DELETED>
<DELETED>    ``(c) Conversion to Other Delivery Modes.--</DELETED>
        <DELETED>    ``(1) New addresses.--Except as provided in 
        paragraphs (4) and (5), the Postal Service shall provide 
        centralized delivery to new addresses established after the 
        date of enactment of the Postal Reform Act of 2013, or if 
        centralized delivery is not practicable shall provide curbside 
        delivery.</DELETED>
        <DELETED>    ``(2) Business address conversion.--The Postal 
        Service shall carry out a program to convert business addresses 
        with door delivery on the date of enactment of the Postal 
        Reform Act of 2013 to centralized delivery or to curbside 
        delivery.</DELETED>
        <DELETED>    ``(3) Residential address conversion.--</DELETED>
                <DELETED>    ``(A) Identification.--Not later than 9 
                months after the date of enactment of the Postal Reform 
                Act of 2013, the head of each district office of the 
                Postal Service shall identify residential addresses 
                within the district office's service area that are 
                appropriate candidates for conversion from door 
                delivery to another primary mode of delivery, in 
                accordance with standards established by the Postal 
                Service.</DELETED>
                <DELETED>    ``(B) Voluntary conversion.--Not later 
                than 1 year after the date of enactment of the Postal 
                Reform Act of 2013, and consistent with subsection (b) 
                and paragraph (4), the Postal Service shall begin 
                implementation of a program to convert, on a voluntary 
                basis, the addresses identified under subparagraph (A) 
                from door delivery to a more cost-effective primary 
                mode of delivery.</DELETED>
                <DELETED>    ``(C) Procedures.--In pursuing conversion 
                under subparagraph (B), the Postal Service shall 
                establish procedures to--</DELETED>
                        <DELETED>    ``(i) solicit and consider input 
                        from postal customers, State and local 
                        governments, local associations, and property 
                        owners; and</DELETED>
                        <DELETED>    ``(ii) place centralized delivery 
                        points in locations that maximize delivery 
                        efficiency, ease of use for postal customers, 
                        and respect for private property 
                        rights.</DELETED>
        <DELETED>    ``(4) Exceptions.--In establishing a primary mode 
        of mail delivery for new addresses under paragraph (1) or 
        converting the primary mode of mail delivery for an address 
        under paragraph (2) or (3), the Postal Service may provide door 
        delivery if--</DELETED>
                <DELETED>    ``(A) a physical barrier precludes the 
                efficient provision of centralized delivery or curbside 
                delivery;</DELETED>
                <DELETED>    ``(B) the address is located in a 
                registered historic district, as that term is defined 
                in section 47(c)(3)(B) of the Internal Revenue Code of 
                1986; or</DELETED>
                <DELETED>    ``(C) the Postal Service determines that 
                the provision of centralized delivery or curbside 
                delivery would be impractical, would not be cost-
                effective, or would not be in the best long-term 
                interest of the Postal Service.</DELETED>
        <DELETED>    ``(5) Waiver for physical hardship.--The Postal 
        Service shall establish and maintain a waiver program under 
        which, upon the application of a postal customer, door delivery 
        may be continued or provided to a delivery point if--</DELETED>
                <DELETED>    ``(A) centralized delivery or curbside 
                delivery would, but for this paragraph, be the primary 
                mode of mail delivery for the delivery point; 
                and</DELETED>
                <DELETED>    ``(B) a physical hardship prevents the 
                postal customer from receiving his or her mail through 
                any other form of mail delivery.''.</DELETED>
<DELETED>    (b) Clerical Amendment.--The table of sections for 
subchapter VII of chapter 36 of title 39, United States Code, is 
amended by adding at the end the following:</DELETED>

<DELETED>``3692. Delivery point modernization.''.

<DELETED>SEC. 206. POSTAL SERVICES FOR MARKET-DOMINANT 
              PRODUCTS.</DELETED>

<DELETED>    (a) In General.--Strike section 3661 of title 39, United 
States Code, and insert the following:</DELETED>
<DELETED>``Sec. 3661. Postal services for market-dominant 
              products</DELETED>
<DELETED>    ``(a) General Obligation.--The Postal Service shall 
develop and promote adequate and efficient postal services with respect 
to its market-dominant products.</DELETED>
<DELETED>    ``(b) Change in Service.--The Board of Governors of the 
Postal Service is authorized to determine whether there should be a 
change in the nature of postal service provided for market-dominant 
products that will generally affect such service on a nationwide or 
substantially nationwide basis. The authority under this subsection may 
not be delegated to the Postmaster General or to any other individual 
or entity.</DELETED>
<DELETED>    ``(c) Notice, Comment, and Review.--</DELETED>
        <DELETED>    ``(1) Notice.--</DELETED>
                <DELETED>    ``(A) In general.--Not later than 60 days 
                before the date on which any change in service under 
                subsection (b) is implemented, the Board of Governors 
                shall provide public notice of the proposed change in 
                service implementation of the proposed change, 
                including any adjustment in classes or rates proposed 
                to be made under this section.</DELETED>
                <DELETED>    ``(B) Publication.--The notice required by 
                subparagraph (A) shall be--</DELETED>
                        <DELETED>    ``(i) published in the Federal 
                        Register and on the website of the Postal 
                        Service; and</DELETED>
                        <DELETED>    ``(ii) provided to the Postal 
                        Regulatory Commission.</DELETED>
                <DELETED>    ``(C) Contents.--The notice required by 
                subparagraph (A) shall describe the proposed change in 
                service, and address the consistency of the change with 
                the policies of this title, including its effect on the 
                provision of universal postal service.</DELETED>
        <DELETED>    ``(2) Public comment.--The Board of Governors 
        shall solicit and receive public comments on any proposed 
        change in service under subsection (b). The Board shall give 
        interested persons an opportunity to comment on the proposed 
        change in service through the submission of written data, 
        views, or arguments, with or without opportunity for oral 
        presentation, and shall take any relevant matter presented into 
        consideration in making its final determination regarding the 
        proposed change in service.</DELETED>
        <DELETED>    ``(3) Final decision.--Not later than 30 days 
        before the date on which a change in service under subsection 
        (b) takes effect, the Board of Governors shall issue a final 
        decision on the change in service which shall--</DELETED>
                <DELETED>    ``(A) be published in the Federal Register 
                and on the website of the Postal Service; and</DELETED>
                <DELETED>    ``(B) include an explanation responding to 
                all relevant comments received.</DELETED>
        <DELETED>    ``(4) Commission review.--Any change in service 
        made by the Board of Governors under this section shall be 
        subject to review by the Commission under section 
        3662.</DELETED>
<DELETED>    ``(d) Limitation.--Nothing in this section shall be 
construed as authorizing the making of changes under this section to 
the nature of service provided for competitive products. For a change 
that affects the nature of service provided for both market-dominant 
products and competitive products, only the effect on market-dominant 
products shall be subject to this section.''.</DELETED>
<DELETED>    (b) Technical and Conforming Amendment.--The table of 
sections for chapter 36 of title 39, United States Code, is amended by 
striking the item relating to section 3661 and inserting the 
following:</DELETED>

<DELETED>``3661. Postal services for market-dominant products.''.

          <DELETED>TITLE III--POSTAL SERVICE REVENUE</DELETED>

<DELETED>SEC. 301. POSTAL RATES.</DELETED>

<DELETED>    (a) Modern Rate System.--</DELETED>
        <DELETED>    (1) In general.--Chapter 36 of title 39, United 
        States Code, is amended by striking section 3622 and inserting 
        the following:</DELETED>
<DELETED>``Sec. 3622. Modern rate system</DELETED>
<DELETED>    ``(a) Authority Generally.--The Board of Governors of the 
Postal Service shall establish, and may from time to time thereafter 
revise, a system of classes and rates for market-dominant products, 
consistent with the requirements of this section. The authority under 
this section may not be delegated to the Postmaster General or to any 
other individual or body.</DELETED>
<DELETED>    ``(b) Objectives.--Such system shall be designed to 
achieve the following objectives, each of which shall be applied in 
conjunction with the others:</DELETED>
        <DELETED>    ``(1) To maximize incentives for the Postal 
        Service to reduce costs and increase efficiency.</DELETED>
        <DELETED>    ``(2) To create predictability and stability in 
        rates through the establishment of a schedule whereby rates 
        change at regular intervals by predictable amounts.</DELETED>
        <DELETED>    ``(3) To maintain high quality service standards 
        established under section 3691.</DELETED>
        <DELETED>    ``(4) To assure adequate revenues, including 
        retained earnings, to maintain financial stability.</DELETED>
        <DELETED>    ``(5) To establish and maintain a just and 
        reasonable schedule for rates and classifications, however the 
        objective under this paragraph shall not be construed to 
        prohibit the Board of Governors from making changes of unequal 
        magnitude within, between, or among classes of mail.</DELETED>
        <DELETED>    ``(6) To enhance mail security and deter 
        terrorism.</DELETED>
        <DELETED>    ``(7) To allocate the total institutional costs of 
        the Postal Service appropriately between market-dominant and 
        competitive products, in accordance with regulations 
        established by the Postal Regulatory Commission under section 
        3633.</DELETED>
<DELETED>    ``(c) Factors.--In establishing or revising such system, 
the Board of Governors shall take into account--</DELETED>
        <DELETED>    ``(1) the value of the mail service actually 
        provided each class or type of mail service to both the sender 
        and the recipient, including but not limited to the collection, 
        mode of transportation, and priority of delivery;</DELETED>
        <DELETED>    ``(2) the direct and indirect postal costs 
        attributable to each class or type of mail service through 
        reliably identified causal relationships and that portion of 
        all other costs of the Postal Service reasonably assignable to 
        such class or type;</DELETED>
        <DELETED>    ``(3) the effect of rate increases upon the 
        general public, business mail users, and enterprises in the 
        private sector of the economy engaged in the delivery of mail 
        matter other than letters;</DELETED>
        <DELETED>    ``(4) the available alternative means of sending 
        and receiving letters and other mail matter at reasonable 
        costs;</DELETED>
        <DELETED>    ``(5) the simplicity of structure for the entire 
        schedule and simple, identifiable relationships between the 
        rates or fees charged the various classes of mail for postal 
        services;</DELETED>
        <DELETED>    ``(6) the relative value to the people of the 
        kinds of mail matter entered into the postal system and the 
        desirability and justification for special classifications and 
        services of mail;</DELETED>
        <DELETED>    ``(7) the importance of providing classifications 
        with extremely high degrees of reliability and speed of 
        delivery and of providing those that do not require high 
        degrees of reliability and speed of delivery;</DELETED>
        <DELETED>    ``(8) the desirability of special classifications 
        for both postal users and the Postal Service in accordance with 
        the policies of this title;</DELETED>
        <DELETED>    ``(9) the educational, cultural, scientific, and 
        informational value to the recipient of mail matter;</DELETED>
        <DELETED>    ``(10) the need for the Postal Service to increase 
        its efficiency and reduce its costs, including infrastructure 
        costs, to help maintain high quality, affordable postal 
        services;</DELETED>
        <DELETED>    ``(11) the value to the Postal Service and postal 
        users of promoting intelligent mail and of secure, sender-
        identified mail; and</DELETED>
        <DELETED>    ``(12) the policies of this title as well as such 
        other factors as the Board of Governors determines 
        appropriate.</DELETED>
<DELETED>    ``(d) Notice, Comment, and Review.--</DELETED>
        <DELETED>    ``(1) Notice.--The Board of Governors shall 
        provide notice of any adjustment in classes or rates proposed 
        to be made under this section--</DELETED>
                <DELETED>    ``(A) not less than--</DELETED>
                        <DELETED>    ``(i) 90 days before 
                        implementation of any class or rate adjustment 
                        that affects all or substantially all market-
                        dominant products; and</DELETED>
                        <DELETED>    ``(ii) 45 days before 
                        implementation of any other class or rate 
                        adjustment; and</DELETED>
                <DELETED>    ``(B) to--</DELETED>
                        <DELETED>    ``(i) the public, including by--
                        </DELETED>
                                <DELETED>    ``(I) publication in the 
                                Federal Register; and</DELETED>
                                <DELETED>    ``(II) posting on Postal 
                                Service's website; and</DELETED>
                        <DELETED>    ``(ii) the Postal Regulatory 
                        Commission.</DELETED>
        <DELETED>    ``(2) Public comment.--The Board of Governors 
        shall solicit and receive public comments on any proposed rate 
        or class adjustment, and shall take such comments into account 
        in making its final determination as to a rate or class 
        adjustment.</DELETED>
        <DELETED>    ``(3) Final decision.--Not later than 10 days 
        before a rate or class adjustment takes effect, the Board of 
        Governors shall issue a final decision on the adjustment which 
        shall--</DELETED>
                <DELETED>    ``(A) be published in the Federal Register 
                and on the Postal Service's website; and</DELETED>
                <DELETED>    ``(B) include an explanation responding to 
                all relevant comments received.</DELETED>
        <DELETED>    ``(4) Commission review.--Any adjustment made by 
        the Board of Governors under this section shall be subject to 
        review by the Commission under section 3662.</DELETED>
<DELETED>    ``(e) Limitations on Rate Adjustments.--</DELETED>
        <DELETED>    ``(1) Annual limitation.--The Board of Governors 
        may not increase rates under this section for market-dominant 
        products as a whole by an annual percentage that exceeds the 
        percentage change in the Consumer Price Index for All Urban 
        Consumers unadjusted for seasonal variation over the most 
        recent available 12-month period preceding the date the Board 
        of Governors provides notice of its intention to increase 
        rates.</DELETED>
        <DELETED>    ``(2) Conditions.--</DELETED>
                <DELETED>    ``(A) Rounding of rates and fees.--Nothing 
                in this subsection shall preclude the Board of 
                Governors from rounding rates and fees to the nearest 
                whole integer, if the effect of such rounding does not 
                cause the overall rate increase for any class to exceed 
                the Consumer Price Index for All Urban 
                Consumers.</DELETED>
                <DELETED>    ``(B) Use of unused rate authority.--
                </DELETED>
                        <DELETED>    ``(i) Definition.--In this 
                        subparagraph, the term `unused rate adjustment 
                        authority' means the difference between--
                        </DELETED>
                                <DELETED>    ``(I) the maximum amount 
                                of a rate adjustment that the Board of 
                                Governors is authorized to make in any 
                                year subject to the annual limitation 
                                under paragraph (1); and</DELETED>
                                <DELETED>    ``(II) the amount of the 
                                rate adjustment the Board of Governors 
                                actually makes in that year.</DELETED>
                        <DELETED>    ``(ii) Authority.--Subject to 
                        clause (iii), the Postal Service may use any 
                        unused rate adjustment authority for any of the 
                        5 years following the year such authority 
                        occurred.</DELETED>
                        <DELETED>    ``(iii) Limitations.--In 
                        exercising the authority under clause (ii) in 
                        any year, the Postal Service--</DELETED>
                                <DELETED>    ``(I) may use unused rate 
                                adjustment authority from more than 1 
                                year;</DELETED>
                                <DELETED>    ``(II) may use any part of 
                                the unused rate adjustment authority 
                                from any year;</DELETED>
                                <DELETED>    ``(III) shall use the 
                                unused rate adjustment authority from 
                                the earliest year such authority first 
                                occurred and then each following year; 
                                and</DELETED>
                                <DELETED>    ``(IV) may not exceed the 
                                annual limitation under paragraph (1) 
                                by more than 2 percentage 
                                points.</DELETED>
        <DELETED>    ``(3) Exigent circumstances.--Notwithstanding any 
        limitation under subsection (d)(1) and paragraph (1) of this 
        subsection, and provided there is not sufficient unused rate 
        authority under paragraph (2)(B), the Board of Governors may 
        adjust rates on an expedited basis due to either extraordinary 
        or exceptional circumstances, provided that the Board of 
        Governors unanimously determines, after notice and opportunity 
        for public comment, that such adjustment is reasonable and 
        equitable and necessary to enable the Postal Service, under 
        best practices of honest, efficient, and economical management, 
        to maintain and continue the development of postal services of 
        the kind and quality adapted to the needs of the United 
        States.</DELETED>
        <DELETED>    ``(4) Expiration of rate cap.--Any system of rates 
        and classes established or revised by the Board of Governors 
        under subsection (a) after December 20, 2016, shall not be 
        subject to the limitation in paragraph (1) of this 
        subsection.</DELETED>
<DELETED>    ``(f) Workshare Discounts.--</DELETED>
        <DELETED>    ``(1) Definition.--In this subsection, the term 
        `workshare discount' refers to rate discounts provided to 
        mailers for the presorting, prebarcoding, handling, or 
        transportation of mail, as further defined by the Board of 
        Governors under subsection (a).</DELETED>
        <DELETED>    ``(2) Scope.--The Board of Governors shall ensure 
        that such discounts do not exceed the cost that the Postal 
        Service avoids as a result of workshare activity, unless--
        </DELETED>
                <DELETED>    ``(A) the discount is--</DELETED>
                        <DELETED>    ``(i) associated with a new postal 
                        service, a change to an existing postal 
                        service, or with a new work share initiative 
                        related to an existing postal service; 
                        and</DELETED>
                        <DELETED>    ``(ii) necessary to induce mailer 
                        behavior that furthers the economically 
                        efficient operation of the Postal Service and 
                        the portion of the discount in excess of the 
                        cost that the Postal Service avoids as a result 
                        of the workshare activity will be phased out 
                        over a limited period of time;</DELETED>
                <DELETED>    ``(B) the amount of the discount above 
                costs avoided--</DELETED>
                        <DELETED>    ``(i) is necessary to mitigate 
                        rate shock; and</DELETED>
                        <DELETED>    ``(ii) will be phased out over 
                        time;</DELETED>
                <DELETED>    ``(C) the discount is provided in 
                connection with a category of mail consisting 
                exclusively of mail matter of educational, cultural, 
                scientific, or informational value; or</DELETED>
                <DELETED>    ``(D) reduction or elimination of the 
                discount would--</DELETED>
                        <DELETED>    ``(i) impede the efficient 
                        operation of the Postal Service;</DELETED>
                        <DELETED>    ``(ii) lead to a loss of volume in 
                        the affected category of mail and reduce the 
                        aggregate contribution to the institutional 
                        costs of the Postal Service from the category 
                        subject to the discount below what it otherwise 
                        would have been if the discount had not been 
                        reduced or eliminated; or</DELETED>
                        <DELETED>    ``(iii) result in a further 
                        increase in the rates paid by mailers not able 
                        to take advantage of the discount.</DELETED>
        <DELETED>    ``(3) Notice.--Whenever a workshare discount is 
        established, the Board of Governors shall ensure that the 
        notice provided under subsection (d)(1) includes--</DELETED>
                <DELETED>    ``(A) the reasons for establishing the 
                discount;</DELETED>
                <DELETED>    ``(B) the data, economic analyses, and 
                other information relied on by the Board of Governors 
                to justify the rate; and</DELETED>
                <DELETED>    ``(C) a certification that the discount 
                will not adversely affect rates or services provided to 
                users of postal services who do not take advantage of 
                the discount rate.</DELETED>
<DELETED>    ``(g) Negotiated Service Agreements.--The Board of 
Governors shall ensure that any agreement between the Postal Service 
and a mailer that adjusts rates or classes in a manner that is specific 
to the mailer--</DELETED>
        <DELETED>    ``(1) is available on public and reasonable terms 
        to similarly situated mailers;</DELETED>
        <DELETED>    ``(2) either--</DELETED>
                <DELETED>    ``(A) improves the net financial position 
                of the Postal Service through reducing Postal Service 
                costs or increasing the overall contribution to the 
                institutional costs of the Postal Service; or</DELETED>
                <DELETED>    ``(B) enhances the performance of mail 
                preparation, processing, transportation, or other 
                functions; and</DELETED>
        <DELETED>    ``(3) does not cause unreasonable harm to the 
        marketplace.</DELETED>
<DELETED>    ``(h) Consideration of Prior Commission Decisions.--In 
making any determination under this section, including the construction 
and interpretation of the terms used in this section, the Board of 
Governors shall give consideration to decisions of the Commission made 
prior to the date of enactment of the Postal Reform Act of 2013, and 
shall include an explanation of any deviation from such decisions in 
the notice required under subsection (d)(1).''.</DELETED>
        <DELETED>    (2) Technical and conforming amendment.--The table 
        of sections for chapter 36 of title 39, United States Code, is 
        amended by striking the item relating to section 3622 and 
        inserting the following:</DELETED>

<DELETED>``3622. Postal services for market-dominant products.''.
<DELETED>    (b) Repeal of Rate Preferences for Qualified Political 
Committees.--</DELETED>
        <DELETED>    (1) In general.--Section 3626 of title 39, United 
        States Code, is amended--</DELETED>
                <DELETED>    (A) by striking subsection (e);</DELETED>
                <DELETED>    (B) by redesignating subsections (f), (g), 
                and (h) as subsections (e), (f), and (g), 
                respectively;</DELETED>
                <DELETED>    (C) by redesignating subsections (j) 
                through (n) as subsections (h) through (l), 
                respectively; and</DELETED>
                <DELETED>    (D) in subsection (h), as redesignated by 
                paragraph (3)--</DELETED>
                        <DELETED>    (i) in paragraph (1)(D), by 
                        striking ``subsection (m)(2)'' and inserting 
                        ``subsection (k)(2)''; and</DELETED>
                        <DELETED>    (ii) in paragraph (3)(B), by 
                        striking ``subsection (m)'' and inserting 
                        ``subsection (k)''.</DELETED>
        <DELETED>    (2) Technical and conforming amendment.--Section 
        3629 of title 39, United States Code, is amended--</DELETED>
                <DELETED>    (A) by striking ``is available'' and 
                inserting ``was available''; and</DELETED>
                <DELETED>    (B) by striking ``section 3626'' and 
                inserting ``section 3626, as in effect on the day 
                before the date of enactment of the Postal Reform Act 
                of 2013,''.</DELETED>

SEC. 302. NONPOSTAL SERVICES.

<DELETED>    (a) Authorization of New Nonpostal Services.--</DELETED>
        <DELETED>    (1) In general.--Section 404 of title 39, United 
        States Code, is amended--</DELETED>
                <DELETED>    (A) in subsection (a)--</DELETED>
                        <DELETED>    (i) by redesignating paragraphs 
                        (6) through (8) as paragraphs (7) through (9), 
                        respectively; and</DELETED>
                        <DELETED>    (ii) by inserting after paragraph 
                        (5) the following:</DELETED>
        <DELETED>    ``(6) on and after the date of enactment of the 
        Postal Reform Act of 2013, and except as provided in subsection 
        (e)--</DELETED>
                <DELETED>    ``(A) to provide other services that are 
                not postal services, if the provision of such 
                services--</DELETED>
                        <DELETED>    ``(i) uses the processing, 
                        transportation, delivery, retail network, or 
                        technology of the Postal Service;</DELETED>
                        <DELETED>    ``(ii) is consistent with the 
                        public interest and a demonstrated or potential 
                        public demand for--</DELETED>
                                <DELETED>    ``(I) the Postal Service, 
                                rather than another entity, to provide 
                                the services; or</DELETED>
                                <DELETED>    ``(II) the Postal Service, 
                                in addition to or in partnership with 
                                another entity, to provide the 
                                services;</DELETED>
                        <DELETED>    ``(iii) would not create unfair 
                        competition with the private sector, taking 
                        into consideration the extent to which the 
                        Postal Service will not, either by legal 
                        obligation or voluntarily, comply with any 
                        state or local requirements that generally 
                        apply to persons providing the 
                        services;</DELETED>
                        <DELETED>    ``(iv) does not unreasonably 
                        interfere with or detract from the value of 
                        postal services, including--</DELETED>
                                <DELETED>    ``(I) the cost and 
                                efficiency of postal services; 
                                and</DELETED>
                                <DELETED>    ``(II) access to postal 
                                retail service;</DELETED>
                        <DELETED>    ``(v) will be undertaken in 
                        accordance with all Federal laws generally 
                        applicable to the provision of such services; 
                        and</DELETED>
                        <DELETED>    ``(vi) has the potential to 
                        improve the net financial position of the 
                        Postal Service, based on a market analysis 
                        provided to the Postal Regulatory Commission by 
                        the Postal Service; and</DELETED>
                <DELETED>    ``(B) to classify a service provided under 
                subparagraph (A) as an experimental product subject to 
                section 3641;'';</DELETED>
                <DELETED>    (B) in subsection (e)(1), by inserting 
                ``and that was offered by the Postal Service on the 
                date of enactment of the Postal Reform Act of 2013'' 
                after ``102(5)''; and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
<DELETED>    ``(g) For purposes of chapters 20 and 36 of this title, 
nonpostal services provided under subsection (a)(6) shall be treated as 
competitive products.''.</DELETED>
        <DELETED>    (2) Complaints.--Section 3662(a) of title 39, 
        United States Code, is amended by inserting ``404(a)(6),'' 
        after ``403(c),''.</DELETED>
        <DELETED>    (3) Market analysis.--During the 5-year period 
        beginning on the date of enactment of this Act, the Postal 
        Service shall submit a copy of any market analysis provided to 
        the Commission under section 404(a)(6)(A)(vi) of title 39, 
        United States Code, as amended by this section, to the 
        Committee on Homeland Security and Governmental Affairs of the 
        Senate and the Committee on Oversight and Government Reform of 
        the House of Representatives.</DELETED>
<DELETED>    (b) Governmental Services.--Section 411 of title 39, 
United States Code, is amended--</DELETED>
        <DELETED>    (1) in the second sentence, by striking ``this 
        section'' and inserting ``this subsection'';</DELETED>
        <DELETED>    (2) by inserting ``(a)'' before ``Executive 
        agencies''; and</DELETED>
        <DELETED>    (3) by adding at the end the following--</DELETED>
<DELETED>    ``(b)(1) The Postal Service is authorized to furnish 
property and services to States, local governments, and tribal 
governments, under such terms and conditions, including 
reimbursability, as the Postal Service and the applicable State, local 
government, or tribal government shall determine appropriate.</DELETED>
<DELETED>    ``(2) For purposes of this subsection--</DELETED>
        <DELETED>    ``(A) the term `local government' means--
        </DELETED>
                <DELETED>    ``(i) a county, municipality, city, town, 
                township, local public authority, school district, 
                special district, intrastate district, council of 
                governments, or regional or interstate government 
                entity;</DELETED>
                <DELETED>    ``(ii) an agency or instrumentality of an 
                entity described in clause (i); or</DELETED>
                <DELETED>    ``(iii) a rural community, an 
                unincorporated town or village, or an instrumentality 
                of a rural community or an unincorporated town or 
                village;</DELETED>
        <DELETED>    ``(B) the term `State' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, the United States 
        Virgin Islands, Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, and any other territory or possession 
        of the United States; and</DELETED>
        <DELETED>    ``(C) the term `tribal government' means the 
        government of an Indian tribe, as that term is defined in 
        section 4(e) of the Indian Self-Determination Act (25 U.S.C. 
        450b(e)).</DELETED>
<DELETED>    ``(c) The Postal Service shall submit to the Postal 
Regulatory Commission, together with the report required under section 
3652, a report that details the costs and revenues of the services 
provided by the Postal Service under this section.</DELETED>
<DELETED>    ``(d) In determining reimbursability under subsections (a) 
and (b), the Postal Service shall ensure that each service provided 
under such subsections covers its costs attributable, as that term is 
defined in section 3631(b).''.</DELETED>
<DELETED>    (c) Conforming Amendments.--</DELETED>
        <DELETED>    (1) Section 404(e) of title 39.--Section 404(e) of 
        title 39, United States Code, is amended by striking paragraph 
        (5) and inserting the following:</DELETED>
<DELETED>    ``(5) Each nonpostal service authorized under this 
subsection shall be designated as market-dominant or competitive based 
on the designation of the nonpostal service in the Mail Classification 
Schedule as in effect on the date of enactment of the Postal Reform Act 
of 2013.</DELETED>
<DELETED>    ``(6) Nothing in this subsection shall be construed to 
prevent the Postal Service from establishing nonpostal products and 
services that are expressly authorized by subsection 
(a)(6).''.</DELETED>
        <DELETED>    (2) Section 3641 of title 39.--Section 3641 of 
        title 39, United States Code, is amended--</DELETED>
                <DELETED>    (A) in subsection (b)(1), by inserting 
                ``(or the appropriate consumers in the case of 
                nonpostal products)'' after ``users'';</DELETED>
                <DELETED>    (B) in the first sentence of subsection 
                (b)(3), by striking ``section 3642(b)(1)'' and 
                inserting ``sections 404(g) and 3642(b)(1)'';</DELETED>
                <DELETED>    (C) in the second sentence of subsection 
                (b)(3), by striking ``section 3633(3)'' and inserting 
                ``section 3633(a)(3)'';</DELETED>
                <DELETED>    (D) in subsection (e)(1), by striking 
                ``$10,000,000'' and inserting ``$50,000,000''; 
                and</DELETED>
                <DELETED>    (E) in subsection (e)(2), by striking 
                ``$50,000,000'' and inserting 
                ``$100,000,000''.</DELETED>
        <DELETED>    (3) Technical and conforming amendments.--Section 
        2003(b)(1) of title 39, United States Code, is amended by 
        striking ``postal and nonpostal services'' and inserting 
        ``postal services, nonpostal services authorized under section 
        404(e), and products and services authorized under section 
        411,''.</DELETED>

<DELETED>SEC. 303. SHIPPING OF WINE, BEER, AND DISTILLED 
              SPIRITS.</DELETED>

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

         <DELETED>TITLE IV--POSTAL SERVICE GOVERNANCE</DELETED>

<DELETED>SEC. 401. BOARD OF GOVERNORS OF THE POSTAL SERVICE.</DELETED>

<DELETED>    (a) Board of Governors.--Title 39, United States Code, is 
amended by striking section 202 and inserting the following:</DELETED>
<DELETED>``Sec. 202. Board of Governors</DELETED>
<DELETED>    ``(a) In General.--The exercise of the power of the Postal 
Service shall be directed by a Board of Governors composed of 9 members 
appointed in accordance with this section, each of whom shall be a 
voting member of the Board.</DELETED>
<DELETED>    ``(b) Membership.--</DELETED>
        <DELETED>    ``(1) Composition.--The Board shall be composed 
        of--</DELETED>
                <DELETED>    ``(A) the Postmaster General;</DELETED>
                <DELETED>    ``(B) the Secretary of the Treasury; 
                and</DELETED>
                <DELETED>    ``(C) 7 members, to be known as Governors, 
                who shall be appointed by the President, by and with 
                the advice and consent of the Senate.</DELETED>
        <DELETED>    ``(2) Affiliation.--Not more than 4 of the 
        Governors may be members of any one political party.</DELETED>
        <DELETED>    ``(3) Chairperson.--The President shall designate 
        one of the Governors to serve as the Chairperson of the 
        Board.</DELETED>
<DELETED>    ``(c) Qualifications.--</DELETED>
        <DELETED>    ``(1) In general.--The Governors shall represent 
        the public interest generally, and shall be chosen solely on 
        the basis of experience in public service, law, or accounting, 
        or on a demonstrated ability to manage organizations or 
        corporations (in either the public or private sector) of 
        substantial size.</DELETED>
        <DELETED>    ``(2) No specific interest.--A Governor may not be 
        a representative of a specific interest using the Postal 
        Service.</DELETED>
        <DELETED>    ``(3) Initial appointments.--At least one of the 
        Governors who is appointed to fill a position that is vacant on 
        the date of enactment of the Postal Reform Act of 2013 shall, 
        in addition to the qualifications set forth in paragraph (1), 
        be appointed based on the demonstrated ability of that 
        individual to manage and improve financially troubled 
        organizations.</DELETED>
<DELETED>    ``(d) Removal.--A Governor may be removed only for 
cause.</DELETED>
<DELETED>    ``(e) Compensation.--</DELETED>
        <DELETED>    ``(1) Salary.--Each Governor shall receive a 
        salary of $30,000 each year, plus $300 for each day, for not 
        more than 42 days, on which the Governor attends a meeting of 
        the Board. Nothing in this paragraph shall be construed to 
        limit the number of days of meetings each year to 42 
        days.</DELETED>
        <DELETED>    ``(2) Reimbursement for meetings.--Each Governor 
        shall be reimbursed for travel and reasonable expenses incurred 
        in attending meeting meetings of the Board.</DELETED>
<DELETED>    ``(f) Terms.--</DELETED>
        <DELETED>    ``(1) In general.--Each Governor shall serve for a 
        term of 7 years.</DELETED>
        <DELETED>    ``(2) Vacancies.--A Governor appointed to fill a 
        vacancy occurring before the expiration of the term to which 
        the predecessor of that Governor was appointed shall serve for 
        the remainder for the remainder of that term.</DELETED>
        <DELETED>    ``(3) Continuation of service.--A Governor may 
        continue to serve after the expiration of the term of that 
        Governor until a successor has been appointed, except that a 
        Governor may not continue to serve for more than 1 year after 
        the date on which the term of that Governor would have 
        otherwise expired.</DELETED>
        <DELETED>    ``(4) Limit.--A Governor may serve for not more 
        than 2 terms.</DELETED>
<DELETED>    ``(g) Postmaster General.--</DELETED>
        <DELETED>    ``(1) Appointment and removal.--The Governors 
        shall appoint and shall have the power to remove the Postmaster 
        General.</DELETED>
        <DELETED>    ``(2) Pay and term of service.--The pay and term 
        of service of the Postmaster General shall be determined by the 
        Governors.</DELETED>
<DELETED>    ``(h) Deputy Postmaster General.--</DELETED>
        <DELETED>    ``(1) Appointment and removal.--The Governors and 
        the Postmaster General shall appoint and shall have the power 
        to remove the Deputy Postmaster General.</DELETED>
        <DELETED>    ``(2) Pay.--The pay of the Deputy Postmaster 
        General shall be determined by the Governors.</DELETED>
        <DELETED>    ``(3) Term of service.--The term of service of the 
        Deputy Postmaster General shall be determined by the Governors 
        and the Postmaster General.</DELETED>
<DELETED>    ``(i) Executive Committee.--</DELETED>
        <DELETED>    ``(1) Authority to establish.--The Board, by a 
        vote of a majority of its members, may establish an Executive 
        Committee of the Board, consistent with paragraph 
        (2).</DELETED>
        <DELETED>    ``(2) Board membership and responsibilities.--If 
        established by the Board, the Executive Committee shall--
        </DELETED>
                <DELETED>    ``(A) be composed of the Chairperson of 
                the Board and 2 additional Governors designated by the 
                Board, except that not more than 2 members of the 
                Executive Committee may be members of any one political 
                party;</DELETED>
                <DELETED>    ``(B) develop and oversee implementation 
                of strategies and measures to ensure the long-term 
                financial solvency of the Postal Service;</DELETED>
                <DELETED>    ``(C) develop and oversee the 
                implementation of the financial plan and budget 
                required under section 403 of the Postal Reform Act of 
                2013 and updates to the financial plan and 
                budget;</DELETED>
                <DELETED>    ``(D) make recommendations to the Board 
                regarding aspects of postal operations; and</DELETED>
                <DELETED>    ``(E) assume such other responsibilities 
                as the Board determines appropriate.</DELETED>
        <DELETED>    ``(3) Quorum.--2 members of the Executive 
        Committee shall constitute a quorum for the transaction of 
        business by the Executive Committee.</DELETED>
        <DELETED>    ``(4) Termination.--The Executive Committee may be 
        terminated by a vote of the majority of the members of the 
        Board.''.</DELETED>
<DELETED>    (b) Procedures of the Board.--Section 205(c) of title 39, 
United States Code, is amended by striking ``6 members'' and inserting 
``5 members''.</DELETED>
<DELETED>    (c) Incumbents; Implementation.--</DELETED>
        <DELETED>    (1) Incumbents.--An individual serving as a 
        Governor on the Board of Governors of the Postal Service 
        (referred to in this subsection as a ``Governor'') on the date 
        of enactment of this Act may continue to serve as a Governor 
        until the expiration of the term of that Governor.</DELETED>
        <DELETED>    (2) Implementation of membership reduction.--
        </DELETED>
                <DELETED>    (A) In general.--The following vacancies 
                in the position of Governor shall not be 
                filled:</DELETED>
                        <DELETED>    (i) One of the 2 positions as a 
                        Governor for which the term is scheduled to 
                        expire on December 8, 2014.</DELETED>
                        <DELETED>    (ii) One of the 2 positions as a 
                        Governor for which the term is scheduled to 
                        expire on December 8, 2015.</DELETED>
                <DELETED>    (B) Preference for abolishing vacant 
                positions.--</DELETED>
                        <DELETED>    (i) Positions expiring in 2014.--
                        If one of the 2 positions referred to in clause 
                        (i) of subparagraph (A) is vacant on the date 
                        of enactment of this Act, that vacant position 
                        shall be the position that is not filled, as 
                        required under such clause (i).</DELETED>
                        <DELETED>    (ii) Positions expiring in 2015.--
                        If one of the 2 positions referred to in clause 
                        (ii) of subparagraph (A) is vacant on the date 
                        of enactment of this Act, that vacant position 
                        shall be the position that is not filled, as 
                        required under such clause (ii).</DELETED>
<DELETED>    (d) Conforming Amendments.--Title 39, United States Code, 
is amended--</DELETED>
        <DELETED>    (1) in section 102(3)--</DELETED>
                <DELETED>    (A) by striking ``9'' and inserting ``7''; 
                and</DELETED>
                <DELETED>    (B) by striking ``202(a)'' and inserting 
                ``202(b)(1)(C)''; and</DELETED>
        <DELETED>    (2) in section 203--</DELETED>
                <DELETED>    (A) by striking ``202(c)'' and inserting 
                ``202(g)''; and</DELETED>
                <DELETED>    (B) by striking ``202(d)'' and inserting 
                ``202(h)''.</DELETED>

<DELETED>SEC. 402. STRATEGIC ADVISORY COMMISSION ON POSTAL SERVICE 
              SOLVENCY AND INNOVATION.</DELETED>

<DELETED>    (a) Establishment.--</DELETED>
        <DELETED>    (1) In general.--There is established in the 
        Postal Service a Strategic Advisory Commission on Postal 
        Service Solvency and Innovation (referred to in this section as 
        the ``Advisory Commission'').</DELETED>
        <DELETED>    (2) Independence.--The Advisory Commission shall 
        not be subject to the supervision of the Board of Governors of 
        the Postal Service (referred to in this section as the ``Board 
        of Governors''), the Postmaster General, or any other officer 
        or employee of the Postal Service.</DELETED>
<DELETED>    (b) Purpose.--The purpose of the Advisory Commission is--
</DELETED>
        <DELETED>    (1) to provide strategic guidance to the 
        President, Congress, the Board of Governors, and the Postmaster 
        General on enhancing the long-term solvency of the Postal 
        Service; and</DELETED>
        <DELETED>    (2) to foster innovative thinking to address the 
        challenges facing the Postal Service.</DELETED>
<DELETED>    (c) Membership.--</DELETED>
        <DELETED>    (1) Composition.--The Advisory Commission shall be 
        composed of 7 members, of whom--</DELETED>
                <DELETED>    (A) 3 members shall be appointed by the 
                President, who shall designate 1 member appointed under 
                this subparagraph to serve as Chairperson of the 
                Advisory Commission; and</DELETED>
                <DELETED>    (B) 1 member shall be appointed by each 
                of--</DELETED>
                        <DELETED>    (i) the majority leader of the 
                        Senate;</DELETED>
                        <DELETED>    (ii) the minority leader of the 
                        Senate;</DELETED>
                        <DELETED>    (iii) the Speaker of the House of 
                        Representatives; and</DELETED>
                        <DELETED>    (iv) the minority leader of the 
                        House of Representatives.</DELETED>
        <DELETED>    (2) Qualifications.--Members of the Advisory 
        Commission shall be prominent citizens having--</DELETED>
                <DELETED>    (A) significant depth of experience in 
                such fields as business and public 
                administration;</DELETED>
                <DELETED>    (B) a reputation for innovative 
                thinking;</DELETED>
                <DELETED>    (C) familiarity with new and emerging 
                technologies; and</DELETED>
                <DELETED>    (D) experience with revitalizing 
                organizations that experienced significant financial 
                challenges or other challenges.</DELETED>
        <DELETED>    (3) Incompatible offices.--An individual who is 
        appointed to the Advisory Commission may not serve as an 
        elected official or an officer or employee of the Federal 
        Government while serving as a member of the Advisory 
        Commission, except in the capacity of that individual as a 
        member of the Advisory Commission.</DELETED>
        <DELETED>    (4) Deadline for appointment.--Each member of the 
        Advisory Commission shall be appointed not later than 45 days 
        after the date of enactment of this Act.</DELETED>
        <DELETED>    (5) Meetings; quorum; vacancies.--</DELETED>
                <DELETED>    (A) Meetings.--The Advisory Commission 
                shall meet at the call of the Chairperson or a majority 
                of the members of the Advisory Commission.</DELETED>
                <DELETED>    (B) Quorum.--4 members of the Advisory 
                Commission shall constitute a quorum.</DELETED>
                <DELETED>    (C) Vacancies.--Any vacancy in the 
                Advisory Commission shall not affect the powers of the 
                Advisory Commission, but shall be filled as soon as 
                practicable in the same manner in which the original 
                appointment was made.</DELETED>
<DELETED>    (d) Duties and Powers.--</DELETED>
        <DELETED>    (1) Duties.--The Advisory Commission shall--
        </DELETED>
                <DELETED>    (A) study matters that the Advisory 
                Commission determines are necessary and appropriate to 
                develop a strategic blueprint for the long-term 
                solvency of the Postal Service, including--</DELETED>
                        <DELETED>    (i) the financial, operational, 
                        and structural condition of the Postal 
                        Service;</DELETED>
                        <DELETED>    (ii) alternative strategies and 
                        business models that the Postal Service could 
                        adopt;</DELETED>
                        <DELETED>    (iii) opportunities for additional 
                        postal and nonpostal products and services that 
                        the Postal Service could offer;</DELETED>
                        <DELETED>    (iv) innovative services that 
                        postal services in foreign countries have 
                        offered, including services that respond to the 
                        increasing use of electronic means of 
                        communication; and</DELETED>
                        <DELETED>    (v) the governance structure, 
                        management structure, and management of the 
                        Postal Service, including--</DELETED>
                                <DELETED>    (I) the appropriate method 
                                of appointment, qualifications, duties, 
                                and compensation for senior officials 
                                of the Postal Service, including the 
                                Postmaster General; and</DELETED>
                                <DELETED>    (II) the number and 
                                functions of senior officials of the 
                                Postal Service and the number of levels 
                                of management of the Postal Service; 
                                and</DELETED>
                <DELETED>    (B) submit the report required under 
                subsection (f).</DELETED>
        <DELETED>    (2) Hearings.--The Advisory Commission may hold 
        such hearings, take such testimony, and receive such evidence 
        as is necessary to carry out this section.</DELETED>
        <DELETED>    (3) Access to information.--The Advisory 
        Commission may secure directly from the Postal Service, the 
        Board of Governors, the Postal Regulatory Commission, and any 
        other Federal department or agency such information as the 
        Advisory Commission considers necessary to carry out this 
        section. Upon request of the Chairperson of the Advisory 
        Commission, the head of the department or agency shall furnish 
        the information described in the preceding sentence to the 
        Advisory Commission.</DELETED>
<DELETED>    (e) Personnel Matters.--</DELETED>
        <DELETED>    (1) Advisory commission members.--</DELETED>
                <DELETED>    (A) Compensation of members.--Each member 
                of the Advisory Commission shall be compensated at a 
                rate equal to the daily equivalent of the annual rate 
                of basic pay prescribed for level IV of the Executive 
                Schedule under section 5315 of title 5, United States 
                Code, for each day during which the member is engaged 
                in the actual performance of the duties of the Advisory 
                Commission.</DELETED>
                <DELETED>    (B) Travel expenses.--Each member of the 
                Advisory Commission shall be allowed travel expenses, 
                including per diem in lieu of subsistence, at the rate 
                authorized for employees serving intermittently in the 
                Government service under section 5703 of title 5, 
                United States Code, while away from home or regular 
                place of business in the performance of services for 
                the Advisory Commission.</DELETED>
        <DELETED>    (2) Staff.--</DELETED>
                <DELETED>    (A) Appointment and compensation.--The 
                Chairperson, in accordance with rules agreed upon by 
                the Advisory Commission, shall appoint and fix the 
                compensation of an executive director and such other 
                personnel as may be necessary to enable the Advisory 
                Commission to carry out the functions of the Advisory 
                Commission, without regard to the provisions of title 
                5, United States Code, governing appointments in the 
                competitive service, and without regard to the 
                provisions of chapter 51 and subchapter III of chapter 
                53 of such title relating to classification of 
                positions and General Schedule pay rates, except that a 
                rate of pay fixed under this subparagraph may not 
                exceed the annual rate of basic pay prescribed for 
                level V of the Executive Schedule under section 5316 of 
                title 5, United States Code.</DELETED>
                <DELETED>    (B) Detailees.--Any Federal employee, 
                including an employee of the Postal Service, may be 
                detailed to the Advisory Commission without 
                reimbursement, and such detail shall be without 
                interruption or loss of the civil service rights, 
                status, or privilege of the employee.</DELETED>
                <DELETED>    (C) Consultant services.--The Advisory 
                Commission may procure the services of experts and 
                consultants in accordance with section 3109 of title 5, 
                United States Code, at rates for individuals that do 
                not exceed the daily equivalent of the annual rate of 
                basic pay prescribed for level IV of the Executive 
                Schedule under section 5315 of such title.</DELETED>
<DELETED>    (f) Strategic Blueprint for Long-Term Solvency.--
</DELETED>
        <DELETED>    (1) In general.--Not later than 9 months after the 
        date of enactment of this Act, the Advisory Commission shall 
        submit a report that contains a strategic blueprint for the 
        long-term solvency of the Postal Service to--</DELETED>
                <DELETED>    (A) the President;</DELETED>
                <DELETED>    (B) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;</DELETED>
                <DELETED>    (C) the Committee on Oversight and 
                Government Reform of the House of 
                Representatives;</DELETED>
                <DELETED>    (D) the Board of Governors; and</DELETED>
                <DELETED>    (E) the Postmaster General.</DELETED>
        <DELETED>    (2) Contents.--The strategic blueprint contained 
        in the report submitted under paragraph (1) shall include--
        </DELETED>
                <DELETED>    (A) an assessment of the business model of 
                the Postal Service as of the date on which the report 
                is submitted;</DELETED>
                <DELETED>    (B) an assessment of potential future 
                business models for the Postal Service, including an 
                evaluation of the appropriate balance between--
                </DELETED>
                        <DELETED>    (i) necessary reductions in costs 
                        and services; and</DELETED>
                        <DELETED>    (ii) additional opportunities for 
                        growth and revenue;</DELETED>
                <DELETED>    (C) a strategy for addressing significant 
                current and future liabilities;</DELETED>
                <DELETED>    (D) identification of opportunities for 
                further reductions in costs;</DELETED>
                <DELETED>    (E) identification of opportunities for 
                new and innovative products and services;</DELETED>
                <DELETED>    (F) a strategy for future 
                growth;</DELETED>
                <DELETED>    (G) a vision of how the Postal Service 
                will operate in a sustainable manner 20 years after the 
                date of enactment of this Act; and</DELETED>
                <DELETED>    (H) recommendations for any legislative 
                changes necessary to implement the strategic blueprint 
                described in this paragraph.</DELETED>
<DELETED>    (g) Study and Strategic Plan on Interagency Agreements for 
Post Offices.--</DELETED>
        <DELETED>    (1) Duties of advisory commission.--</DELETED>
                <DELETED>    (A) Study.--</DELETED>
                        <DELETED>    (i) In general.--The Advisory 
                        Commission shall conduct a study concerning the 
                        advisability of the Postal Service entering 
                        into interagency agreements with Federal, 
                        State, and local agencies, with respect to post 
                        offices, that--</DELETED>
                                <DELETED>    (I) streamline and 
                                consolidate services provided by 
                                Federal, State, and local 
                                agencies;</DELETED>
                                <DELETED>    (II) decrease the costs 
                                incurred by Federal agencies in 
                                providing services to the general 
                                public; and</DELETED>
                                <DELETED>    (III) improve the 
                                efficiency and maintain the customer 
                                service standards of the Federal, 
                                State, and local agencies.</DELETED>
                        <DELETED>    (ii) Clarification of inter-agency 
                        agreements.--The study under clause (i) shall 
                        include consideration of the advisability of 
                        the Postal Service entering into an interagency 
                        agreement with--</DELETED>
                                <DELETED>    (I) the Bureau of the 
                                Census for the provision of personnel 
                                and resources for the 2020 decennial 
                                census;</DELETED>
                                <DELETED>    (II) the department of 
                                motor vehicles, or an equivalent 
                                agency, of each State for the provision 
                                of driver licenses, vehicle 
                                registration, and voter 
                                registration;</DELETED>
                                <DELETED>    (III) the division of 
                                wildlife, the department of natural 
                                resources, or an equivalent agency, of 
                                each State for the provision of hunting 
                                and fishing licenses; and</DELETED>
                                <DELETED>    (IV) other Federal 
                                agencies responsible for providing 
                                services to the general 
                                public.</DELETED>
                <DELETED>    (B) Findings.--The Advisory Commission 
                shall--</DELETED>
                        <DELETED>    (i) not later than 9 months after 
                        the date of enactment of this Act, submit to 
                        the Postal Service the findings of the study 
                        conducted under subparagraph (A); and</DELETED>
                        <DELETED>    (ii) incorporate the findings 
                        described in clause (i) into the strategic 
                        blueprint required under subsection 
                        (f).</DELETED>
        <DELETED>    (2) Postal service strategic plan.--</DELETED>
                <DELETED>    (A) In general.--Not later than 6 months 
                after the date on which the Advisory Commission submits 
                to the Postal Service the findings under paragraph 
                (1)(B), the Postal Service shall submit a strategic 
                plan for entering into interagency agreements 
                concerning post offices to--</DELETED>
                        <DELETED>    (i) the Committee on Homeland 
                        Security and Governmental Affairs of the 
                        Senate; and</DELETED>
                        <DELETED>    (ii) the Committee on Oversight 
                        and Government Reform of the House of 
                        Representatives.</DELETED>
                <DELETED>    (B) Limitations.--The strategic plan 
                submitted under subparagraph (A) shall be consistent 
                with public interest and demand.</DELETED>
                <DELETED>    (C) Cost savings projections.--The 
                strategic plan submitted under subparagraph (A) shall 
                include, for each proposed interagency agreement, a 
                projection of cost savings to be realized by the Postal 
                Service and by any other Federal agency that is a party 
                to the agreement.</DELETED>
<DELETED>    (h) Termination of the Commission.--The Advisory 
Commission shall terminate 90 days after the later of--</DELETED>
        <DELETED>    (1) the date on which the Advisory Commission 
        submits the report on the strategic blueprint for long-term 
        solvency under subsection (f); and</DELETED>
        <DELETED>    (2) the date on which the Advisory Commission 
        submits the findings on interagency agreements for post offices 
        under subsection (g).</DELETED>
<DELETED>    (i) Authorization of Appropriations.--There are authorized 
to be appropriated out of the Postal Service Fund for fiscal years 2014 
and 2015 such sums as may be necessary to carry out this 
section.</DELETED>

<DELETED>SEC. 403. LONG-TERM SOLVENCY PLAN; ANNUAL FINANCIAL PLAN AND 
              BUDGET.</DELETED>

<DELETED>    (a) Definitions.--In this section--</DELETED>
        <DELETED>    (1) the term ``Board of Governors'' means the 
        Board of Governors of the Postal Service;</DELETED>
        <DELETED>    (2) the term ``long-term solvency plan'' means the 
        plan required to be submitted by the Postmaster General under 
        subsection (b)(1); and</DELETED>
        <DELETED>    (3) the term ``solvency'' means the ability of the 
        Postal Service to pay debts and meet expenses, including the 
        ability to perform maintenance and repairs, make investments, 
        and maintain financial reserves, as necessary to fulfill the 
        requirements under, and comply with the policies of, title 39, 
        United States Code, and other obligations of the Postal 
        Service.</DELETED>
<DELETED>    (b) Plan for the Long-Term Solvency of the Postal 
Service.--</DELETED>
        <DELETED>    (1) Solvency plan required.--</DELETED>
                <DELETED>    (A) In general.--Not later than the date 
                described in subparagraph (B), the Postmaster General 
                shall submit to the Board of Governors a plan 
                describing the actions the Postal Service intends to 
                take to achieve long-term solvency.</DELETED>
                <DELETED>    (B) Date.--The date described in this 
                subparagraph is the later of--</DELETED>
                        <DELETED>    (i) the date that is 90 days after 
                        the date of enactment of this Act; 
                        and</DELETED>
                        <DELETED>    (ii) the earliest date as of which 
                        the Board of Governors has the number of 
                        members required for a quorum.</DELETED>
        <DELETED>    (2) Considerations.--The long-term solvency plan 
        shall take into account--</DELETED>
                <DELETED>    (A) the legal authority of the Postal 
                Service;</DELETED>
                <DELETED>    (B) changes in the legal authority and 
                responsibilities of the Postal Service under this Act 
                and the amendments made by this Act;</DELETED>
                <DELETED>    (C) any cost savings that the Postal 
                Service anticipates will be achieved through 
                negotiations with employees of the Postal 
                Service;</DELETED>
                <DELETED>    (D) projected changes in mail 
                volume;</DELETED>
                <DELETED>    (E) the impact of any regulations that the 
                Postal Service is required to promulgate under Federal 
                law;</DELETED>
                <DELETED>    (F) projected changes in the number of 
                employees needed to carry out the responsibilities of 
                the Postal Service; and</DELETED>
                <DELETED>    (G) the long-term capital needs of the 
                Postal Service, including the need to maintain, repair, 
                and replace facilities and equipment.</DELETED>
        <DELETED>    (3) Review and submission to congress.--</DELETED>
                <DELETED>    (A) Review.--Upon receipt of the long-term 
                solvency plan, the Board of Governors shall review the 
                long-term solvency plan and may request that the 
                Postmaster General make changes to the long-term 
                solvency plan.</DELETED>
                <DELETED>    (B) Submission to congress.--Not later 
                than 60 days after initial receipt of the long-term 
                solvency plan, the Board of Governors shall provide a 
                copy of the long-term solvency plan to the Committee on 
                Homeland Security and Governmental Affairs of the 
                Senate and the Committee on Oversight and Government 
                Reform of the House of Representatives, together with a 
                letter indicating whether and in what respects the 
                Board of Governors agrees or disagrees with the 
                measures set out in the long-term solvency 
                plan.</DELETED>
        <DELETED>    (4) Updates.--</DELETED>
                <DELETED>    (A) Annual updates required.--The 
                Postmaster General shall update and submit to the Board 
                of Governors the long-term solvency plan not less 
                frequently than annually for 5 years after the 
                enactment of this Act.</DELETED>
                <DELETED>    (B) Review by board of governors.--The 
                Board of Governors shall review and submit to Congress 
                the updates under this paragraph in accordance with 
                paragraph (3).</DELETED>
<DELETED>    (c) Annual Financial Plan and Budget.--</DELETED>
        <DELETED>    (1) In general.--For each of the first 5 full 
        fiscal years after the date of enactment of this Act, not later 
        than August 1 of the preceding fiscal year, the Postmaster 
        General shall submit to the Board of Governors a financial plan 
        and budget for the fiscal year that is consistent with the goal 
        of promoting the long-term solvency of the Postal 
        Service.</DELETED>
        <DELETED>    (2) Contents of financial plan and budget.--The 
        financial plan and budget for a fiscal year shall--</DELETED>
                <DELETED>    (A) promote the financial stability of the 
                Postal Service and provide for progress towards the 
                long-term solvency of the Postal Service;</DELETED>
                <DELETED>    (B) include the annual budget program of 
                the Postal Service under section 2009 of title 39, 
                United States Code, and the plan of the Postal Service 
                commonly referred to as the ``Integrated Financial 
                Plan'';</DELETED>
                <DELETED>    (C) describe lump-sum expenditures by all 
                categories traditionally used by the Postal 
                Service;</DELETED>
                <DELETED>    (D) describe capital expenditures, 
                together with a schedule of projected capital 
                commitments and cash outlays of the Postal Service, and 
                proposed sources of funding;</DELETED>
                <DELETED>    (E) contain estimates of overall debt 
                (both outstanding and expected to be 
                incurred);</DELETED>
                <DELETED>    (F) contain cash flow and liquidity 
                forecasts for the Postal Service at such intervals as 
                the Board of Governors may require;</DELETED>
                <DELETED>    (G) include a statement describing methods 
                of estimations and significant assumptions; 
                and</DELETED>
                <DELETED>    (H) address any other issues that the 
                Board of Governors considers appropriate.</DELETED>
        <DELETED>    (3) Process for submission and approval of 
        financial plan and budget.--</DELETED>
                <DELETED>    (A) Definition.--In this paragraph, the 
                term ``covered recipient'' means--</DELETED>
                        <DELETED>    (i) the Postmaster 
                        General;</DELETED>
                        <DELETED>    (ii) the President;</DELETED>
                        <DELETED>    (iii) the Committee on Homeland 
                        Security and Governmental Affairs of the 
                        Senate; and</DELETED>
                        <DELETED>    (iv) the Committee on Oversight 
                        and Government Reform of the House of 
                        Representatives.</DELETED>
                <DELETED>    (B) Review by the board of governors.--
                </DELETED>
                        <DELETED>    (i) In general.--Upon receipt of a 
                        financial plan and budget under paragraph (1), 
                        the Board of Governors shall promptly review 
                        the financial plan and budget.</DELETED>
                        <DELETED>    (ii) Additional information.--In 
                        conducting the review under this subparagraph, 
                        the Board of Governors may request any 
                        additional information it considers necessary 
                        and appropriate to carry out the duties of the 
                        Board of Governors.</DELETED>
                <DELETED>    (C) Approval of financial plan and budget 
                submitted by the postmaster general.--If the Board of 
                Governors determines that the financial plan and budget 
                for a fiscal year received under paragraph (1) meets 
                the requirements under paragraph (2) and otherwise 
                adequately addresses the financial situation of the 
                Postal Service--</DELETED>
                        <DELETED>    (i) the Board of Governors shall 
                        approve the financial plan and budget and 
                        submit a notice of approval to each covered 
                        recipient; and</DELETED>
                        <DELETED>    (ii) the Postmaster General shall 
                        submit the annual budget program for the 
                        relevant fiscal year to the Office of 
                        Management and Budget in accordance with 
                        section 2009 of title 39, United States 
                        Code.</DELETED>
                <DELETED>    (D) Disapproval of financial plan and 
                budget submitted by the postmaster general.--</DELETED>
                        <DELETED>    (i) In general.--If the Board of 
                        Governors determines that the financial plan 
                        and budget for a fiscal year under paragraph 
                        (1) does not meet the requirements under 
                        paragraph (2) or is otherwise inadequate in 
                        addressing the financial situation of the 
                        Postal Service, the Board of Governors shall--
                        </DELETED>
                                <DELETED>    (I) disapprove the 
                                financial plan and budget;</DELETED>
                                <DELETED>    (II) submit to each 
                                covered recipient a statement that 
                                describes the reasons for the 
                                disapproval;</DELETED>
                                <DELETED>    (III) direct the 
                                Postmaster General to appropriately 
                                revise the financial plan and budget 
                                for the Postal Service; and</DELETED>
                                <DELETED>    (IV) submit the revised 
                                financial plan and budget to each 
                                covered recipient.</DELETED>
                        <DELETED>    (ii) Submission to office of 
                        management and budget.--Upon receipt of a 
                        revised financial plan and budget under clause 
                        (i)(IV), the Postmaster General shall submit 
                        the annual budget program for the relevant 
                        fiscal year to the Office of Management and 
                        Budget in accordance with section 2009 of title 
                        39, United States Code.</DELETED>
                <DELETED>    (E) Deadline for transmission of financial 
                plan and budget by board of governors.--Notwithstanding 
                any other provision of this paragraph, not later than 
                September 30 of the fiscal year that precedes each 
                fiscal year for which a financial plan and budget is 
                required under paragraph (1), the Board of Governors 
                shall--</DELETED>
                        <DELETED>    (i) submit to each covered 
                        recipient a notice of approval under 
                        subparagraph (C)(i)(I); or</DELETED>
                        <DELETED>    (ii) submit to each covered 
                        recipient an approved financial plan and budget 
                        for the fiscal year under subparagraph 
                        (D)(i)(IV).</DELETED>
                <DELETED>    (F) Revisions to financial plan and 
                budget.--</DELETED>
                        <DELETED>    (i) Permitting postmaster general 
                        to submit revisions.--The Postmaster General 
                        may submit proposed revisions to the financial 
                        plan and budget for a fiscal year to the Board 
                        of Governors at any time during the fiscal 
                        year.</DELETED>
                        <DELETED>    (ii) Process for review, approval, 
                        disapproval, and postmaster general action.--
                        The procedures described in subparagraphs (C) 
                        through (E) shall apply with respect to a 
                        proposed revision to a financial plan and 
                        budget in the same manner as such procedures 
                        apply with respect to the original financial 
                        plan and budget.</DELETED>
<DELETED>    (d) Assumptions Based on Current Law.--In preparing the 
long-term solvency plan or an annual financial plan and budget required 
under this section, the Postal Service shall base estimates of revenues 
and expenditures on Federal law as in effect at the time of the 
preparation of the long-term solvency plan or the financial plan and 
budget.</DELETED>

<DELETED>SEC. 404. CHIEF INNOVATION OFFICER; INNOVATION 
              STRATEGY.</DELETED>

<DELETED>    (a) Chief Innovation Officer.--</DELETED>
        <DELETED>    (1) In general.--Chapter 2 of part I of title 39, 
        United States Code, is amended by adding at the end the 
        following:</DELETED>
<DELETED>``Sec. 209. Chief innovation officer</DELETED>
<DELETED>    ``(a) Establishment.--There shall be in the Postal Service 
a Chief Innovation Officer appointed by the Postmaster 
General.</DELETED>
<DELETED>    ``(b) Qualifications.--The Chief Innovation Officer shall 
have proven expertise and a record of accomplishment in areas such as--
</DELETED>
        <DELETED>    ``(1) the postal and shipping industry;</DELETED>
        <DELETED>    ``(2) innovative product research and 
        development;</DELETED>
        <DELETED>    ``(3) brand marketing strategy;</DELETED>
        <DELETED>    ``(4) new and emerging technology, including 
        communications technology; or</DELETED>
        <DELETED>    ``(5) business process management.</DELETED>
<DELETED>    ``(c) Duties.--The Chief Innovation Officer shall lead the 
development and implementation of--</DELETED>
        <DELETED>    ``(1) innovative postal products and services, 
        particularly products and services that use new and emerging 
        technology, including communications technology, to improve the 
        net financial position of the Postal Service; and</DELETED>
        <DELETED>    ``(2) nonpostal products and services authorized 
        under section 404(a)(6) that have the potential to improve the 
        net financial position of the Postal Service.</DELETED>
<DELETED>    ``(d) Deadline.--The Postmaster General shall appoint a 
Chief Innovation Officer not later than 90 days after the date of 
enactment of the Postal Reform Act of 2013.''.</DELETED>
        <DELETED>    (2) Technical and conforming amendment.--The table 
        of sections for chapter 2 of part I of title 39, United States 
        Code, is amended by adding at the end the following:</DELETED>

<DELETED>``209. Chief Innovation Officer.''.
<DELETED>    (b) Innovation Strategy.--</DELETED>
        <DELETED>    (1) Initial report on innovation strategy.--
        </DELETED>
                <DELETED>    (A) In general.--Not later than 9 months 
                after the date of enactment of this Act, the Postmaster 
                General, acting through the Chief Innovation Officer, 
                shall submit a report that contains a comprehensive 
                strategy (referred to in this subsection as the 
                ``innovation strategy'') for improving the net 
                financial position of the Postal Service through 
                innovation, including the offering of new postal and 
                nonpostal products and services, to--</DELETED>
                        <DELETED>    (i) the Committee on Homeland 
                        Security and Governmental Affairs of the 
                        Senate; and</DELETED>
                        <DELETED>    (ii) the Committee on Oversight 
                        and Government Reform of the House of 
                        Representatives.</DELETED>
                <DELETED>    (B) Matters to be addressed.--At a 
                minimum, the report on innovation strategy required 
                under subparagraph (A) shall describe--</DELETED>
                        <DELETED>    (i) the specific innovative postal 
                        and nonpostal products and services to be 
                        developed and offered by the Postal Service, 
                        including--</DELETED>
                                <DELETED>    (I) the nature of the 
                                market demand to be satisfied by each 
                                product or service; and</DELETED>
                                <DELETED>    (II) the estimated date by 
                                which each product or service will be 
                                introduced;</DELETED>
                        <DELETED>    (ii) the cost of developing and 
                        offering each product or service;</DELETED>
                        <DELETED>    (iii) the anticipated sales volume 
                        for each product or service;</DELETED>
                        <DELETED>    (iv) the anticipated revenues and 
                        profits to be generated by each product or 
                        service;</DELETED>
                        <DELETED>    (v) the likelihood of success of 
                        each product or service and the risks 
                        associated with the development and sale of 
                        each product or service;</DELETED>
                        <DELETED>    (vi) the trends anticipated in 
                        market conditions that may affect the success 
                        of each product or service during the 5-year 
                        period beginning on the date of the submission 
                        of the report under subparagraph (A);</DELETED>
                        <DELETED>    (vii) any innovations designed to 
                        improve the net financial position of the 
                        Postal Service, other than the offering of new 
                        products and services; and</DELETED>
                        <DELETED>    (viii) the metrics that will be 
                        used to assess the effectiveness of the 
                        innovation strategy.</DELETED>
        <DELETED>    (2) Annual report.--</DELETED>
                <DELETED>    (A) In general.--Not later than 1 year 
                after the date of the submission of the initial report 
                containing the innovation strategy under paragraph (1), 
                and annually thereafter for 10 years, the Postmaster 
                General, acting through the Chief Innovation Officer, 
                shall submit a report on the implementation of the 
                innovation strategy to--</DELETED>
                        <DELETED>    (i) the Committee on Homeland 
                        Security and Governmental Affairs of the 
                        Senate; and</DELETED>
                        <DELETED>    (ii) the Committee on Oversight 
                        and Government Reform of the House of 
                        Representatives.</DELETED>
                <DELETED>    (B) Matters to be addressed.--At a 
                minimum, an annual report submitted under subparagraph 
                (A) shall include--</DELETED>
                        <DELETED>    (i) an update of the initial 
                        report on innovation strategy submitted under 
                        paragraph (1);</DELETED>
                        <DELETED>    (ii) a description of the progress 
                        made by the Postal Service in implementing the 
                        products, services, and other innovations 
                        described in the initial report on innovation 
                        strategy; and</DELETED>
                        <DELETED>    (iii) an analysis of the 
                        performance of each product, service, or other 
                        innovation described in the initial report on 
                        innovation strategy, including--</DELETED>
                                <DELETED>    (I) the revenue generated 
                                by each product or service developed in 
                                accordance with the innovation strategy 
                                under this section and the cost of 
                                developing and offering each product or 
                                service for the preceding 
                                year;</DELETED>
                                <DELETED>    (II) trends in each market 
                                in which a product or service is 
                                intended to satisfy a demand;</DELETED>
                                <DELETED>    (III) each product or 
                                service identified in the innovation 
                                strategy that is to be discontinued, 
                                the date on which each discontinuance 
                                will occur, and the reasons for each 
                                discontinuance;</DELETED>
                                <DELETED>    (IV) each alteration that 
                                the Postal Service plans to make to a 
                                product or service identified in the 
                                innovation strategy to address changing 
                                market conditions and an explanation of 
                                how each alteration will ensure the 
                                success of the product or 
                                service;</DELETED>
                                <DELETED>    (V) the performance of 
                                innovations other than new products and 
                                services that are designed to improve 
                                the net financial position of the 
                                Postal Service; and</DELETED>
                                <DELETED>    (VI) the performance of 
                                the innovation strategy according to 
                                the metrics described in paragraph 
                                (1)(B)(viii).</DELETED>

<DELETED>SEC. 405. AREA AND DISTRICT OFFICE STRUCTURE.</DELETED>

<DELETED>    (a) Definitions.--In this section--</DELETED>
        <DELETED>    (1) the term ``area office'' means the central 
        office of an administrative field unit with responsibility for 
        postal operations in a designated geographic area that is 
        comprised of district offices;</DELETED>
        <DELETED>    (2) the term ``district office'' means the central 
        office of an administrative field unit with responsibility for 
        postal operations in a designated geographic area (as defined 
        under regulations, directives, or other guidance of the Postal 
        Service, as in effect on January 1, 2013); and</DELETED>
        <DELETED>    (3) the term ``State'' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, the United States 
        Virgin Islands, Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, and any other territory or possession 
        of the United States.</DELETED>
<DELETED>    (b) Plan Required.--Not later than 1 year after the date 
of enactment of this Act, the Postal Service shall submit to the 
Committee on Homeland Security and Governmental Affairs of the Senate 
and the Committee on Oversight and Government Reform of the House of 
Representatives a comprehensive strategic plan for an area office and 
district office structure that will--</DELETED>
        <DELETED>    (1) be efficient and cost effective;</DELETED>
        <DELETED>    (2) not substantially and adversely affect the 
        operations of the Postal Service; and</DELETED>
        <DELETED>    (3) reduce the total number of area and district 
        offices.</DELETED>
<DELETED>    (c) Implementation.--Not later than 60 days after the date 
on which the Postal Service submits the plan under subsection (b), the 
Postal Service shall begin implementing the plan, including, where 
appropriate, by consolidating area and district offices.</DELETED>
<DELETED>    (d) State Liaison.--If the Postal Service does not 
maintain a district office in a State, the Postal Service shall 
designate at least 1 employee of the district office responsible for 
Postal Service operations in the State to represent the needs of Postal 
Service customers in the State. An employee designated under this 
subsection to represent the needs of Postal Service customers in a 
State shall be located in that State.</DELETED>

<DELETED>SEC. 406. INSPECTOR GENERAL OF THE POSTAL SERVICE.</DELETED>

<DELETED>    (a) Appointment of Inspector General of the Postal Service 
by President.--The Inspector General Act of 1978 (5 U.S.C. App.) is 
amended--</DELETED>
        <DELETED>    (1) in section 8G--</DELETED>
                <DELETED>    (A) in subsection (a)--</DELETED>
                        <DELETED>    (i) in paragraph (2), by striking 
                        ``the Postal Regulatory Commission, and the 
                        United States Postal Service'' and inserting 
                        ``and the Postal Regulatory 
                        Commission'';</DELETED>
                        <DELETED>    (ii) in paragraph (3), by striking 
                        ``subsection (h)(1)'' and inserting 
                        ``subsection (g)(1)''; and</DELETED>
                        <DELETED>    (iii) in paragraph (4)--</DELETED>
                                <DELETED>    (I) in the matter 
                                preceding subparagraph (A), by striking 
                                ``subsection (h)(1)'' and inserting 
                                ``subsection (g)(1)'';</DELETED>
                                <DELETED>    (II) by striking 
                                subparagraph (B); and</DELETED>
                                <DELETED>    (III) by redesignating 
                                subparagraphs (C) through (H) as 
                                subparagraphs (B) through (G), 
                                respectively;</DELETED>
                <DELETED>    (B) in subsection (c), by striking 
                ``Except as provided under subsection (f) of this 
                section, the'' and inserting ``The'';</DELETED>
                <DELETED>    (C) by striking subsection (f); 
                and</DELETED>
                <DELETED>    (D) by redesignating subsections (g) and 
                (h) as subsections (f) and (g), respectively;</DELETED>
        <DELETED>    (2) by inserting after section 8M the 
        following:</DELETED>

<DELETED>``SEC. 8N. SPECIAL PROVISIONS CONCERNING THE INSPECTOR GENERAL 
              OF THE UNITED STATES POSTAL SERVICE.</DELETED>

<DELETED>    ``(a) In this section--</DELETED>
        <DELETED>    ``(1) the term `Inspector General' means the 
        Inspector General of the United States Postal Service; 
        and</DELETED>
        <DELETED>    ``(2) the term `Governors' has the meaning given 
        that term in section 102(3) of title 39, United States 
        Code.</DELETED>
<DELETED>    ``(b) In carrying out the duties and responsibilities 
specified in this Act, the Inspector General shall have oversight 
responsibility for all activities of the Postal Inspection Service, 
including any internal investigation performed by the Postal Inspection 
Service. The Chief Postal Inspector shall promptly report the 
significant activities being carried out by the Postal Inspection 
Service to the Inspector General.</DELETED>
<DELETED>    ``(c)(1)(A) The Inspector General shall be under the 
authority, direction, and control of the Governors with respect to 
audits or investigations, or the issuance of subpoenas, which require 
access to sensitive information concerning--</DELETED>
        <DELETED>    ``(i) ongoing civil or criminal investigations or 
        proceedings;</DELETED>
        <DELETED>    ``(ii) undercover operations;</DELETED>
        <DELETED>    ``(iii) the identity of confidential sources, 
        including protected witnesses;</DELETED>
        <DELETED>    ``(iv) intelligence or counterintelligence 
        matters; or</DELETED>
        <DELETED>    ``(v) other matters the disclosure of which would 
        constitute a serious threat to national security.</DELETED>
<DELETED>    ``(B) With respect to the information described under 
subparagraph (A), the Governors may prohibit the Inspector General from 
carrying out or completing any audit or investigation, or from issuing 
any subpoena, after the Inspector General has decided to initiate, 
carry out, or complete such audit or investigation or to issue such 
subpoena, if the Governors determine that such prohibition is necessary 
to prevent the disclosure of any information described under 
subparagraph (A) or to prevent the significant impairment to the 
national interests of the United States.</DELETED>
<DELETED>    ``(C) If the Governors exercise any power under 
subparagraph (A) or (B), the Governors shall notify the Inspector 
General in writing stating the reasons for the exercise of such power. 
Not later than 30 days after receipt of any such notice, the Inspector 
General shall transmit a copy of the notice to the Committee on 
Homeland Security and Governmental Affairs of the Senate and the 
Committee on Oversight and Government Reform of the House of 
Representatives, and to other appropriate committees or subcommittees 
of the Congress.</DELETED>
<DELETED>    ``(2) In carrying out the duties and responsibilities 
specified in this Act, the Inspector General--</DELETED>
        <DELETED>    ``(A) may initiate, conduct, and supervise such 
        audits and investigations in the United States Postal Service 
        as the Inspector General considers appropriate; and</DELETED>
        <DELETED>    ``(B) shall give particular regard to the 
        activities of the Postal Inspection Service with a view toward 
        avoiding duplication and ensuring effective coordination and 
        cooperation.</DELETED>
<DELETED>    ``(3) Any report required to be transmitted by the 
Governors to the appropriate committees or subcommittees of the 
Congress under section 5(d) shall also be transmitted, within the 
seven-day period specified under that section, to the Committee on 
Homeland Security and Governmental Affairs of the Senate and the 
Committee on Oversight and Government Reform of the House of 
Representatives.</DELETED>
<DELETED>    ``(d) Nothing in this Act shall restrict, eliminate, or 
otherwise adversely affect any of the rights, privileges, or benefits 
of either employees of the United States Postal Service, or labor 
organizations representing employees of the United States Postal 
Service, under chapter 12 of title 39, United States Code, the National 
Labor Relations Act (29 U.S.C. 151 et seq.), any handbook or manual 
affecting employee labor relations with the United States Postal 
Service, or any collective bargaining agreement.</DELETED>
<DELETED>    ``(e) There are authorized to be appropriated, out of the 
Postal Service Fund, such sums as may be necessary for the Office of 
Inspector General of the United States Postal Service.''; and</DELETED>
        <DELETED>    (3) in section 12--</DELETED>
                <DELETED>    (A) in paragraph (1), by striking ``or the 
                Federal Cochairpersons of the Commissions established 
                under section 15301 of title 40, United States Code'' 
                and inserting ``the Federal Cochairpersons of the 
                Commissions established under section 15301 of title 
                40, United States Code; or the Board of Governors of 
                the United States Postal Service''; and</DELETED>
                <DELETED>    (B) in paragraph (2), by striking ``or the 
                Commissions established under section 15301 of title 
                40, United States Code'' and inserting ``the 
                Commissions established under section 15301 of title 
                40, United States Code, or the United States Postal 
                Service''.</DELETED>
<DELETED>    (b) Technical and Conforming Amendments.--Title 39, United 
States Code, is amended--</DELETED>
        <DELETED>    (1) in section 102(4), by striking ``section 
        202(e) of this title'' and inserting ``section 3 of the 
        Inspector General Act of 1978 (5 U.S.C. App.)'';</DELETED>
        <DELETED>    (2) in section 1001(b), in the first sentence, by 
        inserting ``, and section 3 of the Inspector General Act of 
        1978 (5 U.S.C. App.)'' after ``1001(c) of this title''; 
        and</DELETED>
        <DELETED>    (3) in section 1005(a)(3), by inserting ``, and 
        section 3 of the Inspector General Act of 1978 (5 U.S.C. 
        App.)'' after ``1001(c) of this title''.</DELETED>
<DELETED>    (c) Applicability.--</DELETED>
        <DELETED>    (1) In general.--The amendments made by this 
        section shall apply with respect to the first individual 
        appointed as Inspector General of the Postal Service after the 
        date of enactment of this Act.</DELETED>
        <DELETED>    (2) Rule of construction.--Nothing in this Act may 
        be construed to alter the authority or the length of the term 
        of the individual serving as Inspector General of the Postal 
        Service on the date of enactment of this Act.</DELETED>

    <DELETED>TITLE V--FEDERAL EMPLOYEES' COMPENSATION ACT</DELETED>

<DELETED>SEC. 501. SHORT TITLE; REFERENCES.</DELETED>

<DELETED>    (a) Short Title.--This title may be cited as the 
``Workers' Compensation Reform Act of 2013''.</DELETED>
<DELETED>    (b) References.--Except as otherwise expressly provided, 
whenever in this title an amendment or repeal is expressed in terms of 
an amendment to, or a repeal of, a section or other provision, the 
reference shall be considered to be made to a section or other 
provision of title 5, United States Code.</DELETED>

<DELETED>SEC. 502. FEDERAL WORKERS COMPENSATION REFORMS FOR RETIREMENT-
              AGE EMPLOYEES.</DELETED>

<DELETED>    (a) Conversion of Entitlement at Retirement Age.--
</DELETED>
        <DELETED>    (1) Definitions.--Section 8101 is amended--
        </DELETED>
                <DELETED>    (A) in paragraph (18), by striking ``and'' 
                at the end;</DELETED>
                <DELETED>    (B) in paragraph (19), by striking ``and'' 
                at the end;</DELETED>
                <DELETED>    (C) in paragraph (20), by striking the 
                period at the end and inserting a semicolon; 
                and</DELETED>
                <DELETED>    (D) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(21) `retirement age' has the meaning given that 
        term under section 216(l)(1) of the Social Security Act (42 
        U.S.C. 416(l)(1));</DELETED>
        <DELETED>    ``(22) `covered claim for total disability' means 
        a claim for a period of total disability that commenced before 
        the date of enactment of the Workers' Compensation Reform Act 
        of 2013;</DELETED>
        <DELETED>    ``(23) `covered claim for partial disability' 
        means a claim for a period of partial disability that commenced 
        before the date of enactment of the Workers' Compensation 
        Reform Act of 2013; and</DELETED>
        <DELETED>    ``(24) `individual who has an exempt disability 
        condition' means an individual--</DELETED>
                <DELETED>    ``(A) who--</DELETED>
                        <DELETED>    ``(i) is eligible to receive 
                        continuous periodic compensation for total 
                        disability under section 8105 on the date of 
                        enactment of the Workers' Compensation Reform 
                        Act of 2013; and</DELETED>
                        <DELETED>    ``(ii) meets the criteria under 
                        section 8105(c);</DELETED>
                <DELETED>    ``(B) who, on the date of enactment of the 
                Workers' Compensation Reform Act of 2013--</DELETED>
                        <DELETED>    ``(i) is eligible to receive 
                        continuous periodic compensation for total 
                        disability under section 8105; and</DELETED>
                        <DELETED>    ``(ii) has sustained a currently 
                        irreversible severe mental or physical 
                        disability for which the Secretary of Labor has 
                        authorized, for at least the 1-year period 
                        ending on the date of enactment of the Workers' 
                        Compensation Reform Act of 2013, constant in-
                        home care or custodial care, such as placement 
                        in a nursing home; or</DELETED>
                <DELETED>    ``(C) who is eligible to receive 
                continuous periodic compensation for total disability 
                under section 8105--</DELETED>
                        <DELETED>    ``(i) for not less than the 3-year 
                        period ending on the date of enactment of the 
                        Workers' Compensation Reform Act of 2013; 
                        or</DELETED>
                        <DELETED>    ``(ii) if the individual became 
                        eligible to receive continuous periodic 
                        compensation for total disability under section 
                        8105 during the period beginning on the date 
                        that is 3 years before the date of enactment of 
                        the Workers' Compensation Reform Act of 2013 
                        and ending on such date of enactment, for not 
                        less than the 3-year period beginning on the 
                        date on which the individual became 
                        eligible.''.</DELETED>
        <DELETED>    (2) Total disability.--Section 8105 is amended--
        </DELETED>
                <DELETED>    (A) in subsection (a), by striking ``If'' 
                and inserting ``In General.--Subject to subsection (b), 
                if'';</DELETED>
                <DELETED>    (B) by redesignating subsection (b) as 
                subsection (c); and</DELETED>
                <DELETED>    (C) by inserting after subsection (a) the 
                following:</DELETED>
<DELETED>    ``(b) Conversion of Entitlement at Retirement Age.--
</DELETED>
        <DELETED>    ``(1) In general.--Except as provided in paragraph 
        (2), the basic compensation for total disability for an 
        employee who has attained retirement age shall be 50 percent of 
        the monthly pay of the employee.</DELETED>
        <DELETED>    ``(2) Exceptions.--</DELETED>
                <DELETED>    ``(A) Covered recipients who are 
                retirement age, have an exempt disability condition, or 
                face financial hardship.--Paragraph (1) shall not apply 
                to a covered claim for total disability by an employee 
                if the employee--</DELETED>
                        <DELETED>    ``(i) on the date of enactment of 
                        the Workers' Compensation Reform Act of 2013, 
                        has attained retirement age;</DELETED>
                        <DELETED>    ``(ii) is an individual who has an 
                        exempt disability condition; or</DELETED>
                        <DELETED>    ``(iii) is a member of a household 
                        that would meet the income and assets 
                        requirements for eligibility for the 
                        supplemental nutrition assistance program as 
                        described in section 5 of the Food and 
                        Nutrition Act of 2008 (7 U.S.C. 2014) (not 
                        including any provisions permitting eligibility 
                        due to benefits received under any other law) 
                        if the basic compensation for total disability 
                        of the employee were provided in accordance 
                        with paragraph (1).</DELETED>
                <DELETED>    ``(B) Transition period for certain 
                employees.--For a covered claim for total disability by 
                an employee who is not an employee described in 
                subparagraph (A), the employee shall receive the basic 
                compensation for total disability provided under 
                subsection (a) until the later of--</DELETED>
                        <DELETED>    ``(i) the date on which the 
                        employee attains retirement age; and</DELETED>
                        <DELETED>    ``(ii) the date that is 3 years 
                        after the date of enactment of the Workers' 
                        Compensation Reform Act of 2013.''.</DELETED>
        <DELETED>    (3) Partial disability.--Section 8106 is amended--
        </DELETED>
                <DELETED>    (A) in subsection (a), by striking ``If'' 
                and inserting ``In General.--Subject to subsection (b), 
                if'';</DELETED>
                <DELETED>    (B) by redesignating subsections (b) and 
                (c) as subsections (c) and (d), respectively; 
                and</DELETED>
                <DELETED>    (C) by inserting after subsection (a) the 
                following:</DELETED>
<DELETED>    ``(b) Conversion of Entitlement at Retirement Age.--
</DELETED>
        <DELETED>    ``(1) In general.--Except as provided in paragraph 
        (2), the basic compensation for partial disability for an 
        employee who has attained retirement age shall be 50 percent of 
        the difference between the monthly pay of the employee and the 
        monthly wage-earning capacity of the employee after the 
        beginning of the partial disability.</DELETED>
        <DELETED>    ``(2) Exceptions.--</DELETED>
                <DELETED>    ``(A) Covered recipients who are 
                retirement age or face financial hardship.--Paragraph 
                (1) shall not apply to a covered claim for partial 
                disability by an employee if the employee--</DELETED>
                        <DELETED>    ``(i) on the date of enactment of 
                        the Workers' Compensation Reform Act of 2013, 
                        has attained retirement age; or</DELETED>
                        <DELETED>    ``(ii) is a member of a household 
                        that would meet the income and assets 
                        requirements for eligibility for the 
                        supplemental nutrition assistance program as 
                        described in section 5 of the Food and 
                        Nutrition Act of 2008 (7 U.S.C. 2014) (not 
                        including any provisions permitting eligibility 
                        due to benefits received under any other law) 
                        if the basic compensation for total disability 
                        of the employee were provided in accordance 
                        with paragraph (1).</DELETED>
                <DELETED>    ``(B) Transition period for certain 
                employees.--For a covered claim for partial disability 
                by an employee who is not an employee described in 
                subparagraph (A), the employee shall receive basic 
                compensation for partial disability in accordance with 
                subsection (a) until the later of--</DELETED>
                        <DELETED>    ``(i) the date on which the 
                        employee attains retirement age; and</DELETED>
                        <DELETED>    ``(ii) the date that is 3 years 
                        after the date of enactment of the Workers' 
                        Compensation Reform Act of 2013.''.</DELETED>

<DELETED>SEC. 503. AUGMENTED COMPENSATION FOR DEPENDENTS.</DELETED>

<DELETED>    (a) In General.--Section 8110 is amended--</DELETED>
        <DELETED>    (1) by redesignating subsection (b) as subsection 
        (c); and</DELETED>
        <DELETED>    (2) by inserting after subsection (a) the 
        following:</DELETED>
<DELETED>    ``(b) Termination of Augmented Compensation.--</DELETED>
        <DELETED>    ``(1) In general.--Subject to paragraph (2), 
        augmented compensation for dependants under subsection (c) 
        shall not be provided.</DELETED>
        <DELETED>    ``(2) Exceptions.--</DELETED>
                <DELETED>    ``(A) Total disability.--For a covered 
                claim for total disability by an employee--</DELETED>
                        <DELETED>    ``(i) the employee shall receive 
                        augmented compensation under subsection (c) if 
                        the employee is an individual who has an exempt 
                        disability condition; and</DELETED>
                        <DELETED>    ``(ii) the employee shall receive 
                        augmented compensation under subsection (c) 
                        until the date that is 3 years after the date 
                        of enactment of the Workers' Compensation 
                        Reform Act of 2013 if the employee is not an 
                        employee described in clause (i).</DELETED>
                <DELETED>    ``(B) Partial disability.--For a covered 
                claim for partial disability by an employee, the 
                employee shall receive augmented compensation under 
                subsection (c) until the date that is 3 years after the 
                date of enactment of the Workers' Compensation Reform 
                Act of 2013.</DELETED>
                <DELETED>    ``(C) Permanent disability compensated by 
                a schedule.--For a claim for a permanent disability 
                described in section 8107(a) by an employee that 
                commenced before the date of enactment of the Workers' 
                Compensation Reform Act of 2013, the employee shall 
                receive augmented compensation under subsection 
                (c).''.</DELETED>
<DELETED>    (b) Maximum and Minimum Monthly Payments.--Section 8112 is 
amended--</DELETED>
        <DELETED>    (1) in subsection (a)--</DELETED>
                <DELETED>    (A) by inserting ``subsections (b) and (c) 
                and'' before ``section 8138'';</DELETED>
                <DELETED>    (B) by striking ``including augmented 
                compensation under section 8110 of this title but''; 
                and</DELETED>
                <DELETED>    (C) by striking ``75 percent'' each place 
                it appears and inserting ``66</DELETED>\<DELETED>2/
                3</DELETED>\ <DELETED>percent'';</DELETED>
        <DELETED>    (2) by redesignating subsection (b) as subsection 
        (c);</DELETED>
        <DELETED>    (3) by inserting after subsection (a) the 
        following:</DELETED>
<DELETED>    ``(b) Exceptions.--</DELETED>
        <DELETED>    ``(1) Covered disability condition.--For a covered 
        claim for total disability by an employee, if the employee is 
        an individual who has an exempt disability condition--
        </DELETED>
                <DELETED>    ``(A) the monthly rate of compensation for 
                disability that is subject to the maximum and minimum 
                monthly amounts under subsection (a) shall include any 
                augmented compensation under section 8110; 
                and</DELETED>
                <DELETED>    ``(B) subsection (a) shall be applied by 
                substituting `75 percent' for `66</DELETED>\<DELETED>2/
                3</DELETED>\ <DELETED>percent' each place it 
                appears.</DELETED>
        <DELETED>    ``(2) Partial disability.--For a covered claim for 
        partial disability by an employee, until the date that is 3 
        years after the date of enactment of the Workers' Compensation 
        Reform Act of 2013--</DELETED>
                <DELETED>    ``(A) the monthly rate of compensation for 
                disability that is subject to the maximum and minimum 
                monthly amounts under subsection (a) shall include any 
                augmented compensation under section 8110; 
                and</DELETED>
                <DELETED>    ``(B) subsection (a) shall be applied by 
                substituting `75 percent' for `66</DELETED>\<DELETED>2/
                3</DELETED>\ <DELETED>percent' each place it 
                appears.''; and</DELETED>
        <DELETED>    (4) in subsection (c), as redesignated by 
        paragraph (2), by striking ``subsection (a)'' and inserting 
        ``subsections (a) and (b)''.</DELETED>
<DELETED>    (c) Death Benefits Generally.--Section 8133 is amended--
</DELETED>
        <DELETED>    (1) in subsections (a) and (e), by striking ``75 
        percent'' each place it appears and inserting 
        ``66</DELETED>\<DELETED>2/3</DELETED>\ <DELETED>percent (except 
        as provided in subsection (g))''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(g) If the death occurred before the date of enactment 
of the Workers' Compensation Reform Act of 2013, subsections (a) and 
(e) shall be applied by substituting `75 percent' for 
`66</DELETED>\<DELETED>2/3</DELETED>\ <DELETED>percent' each place it 
appears.''.</DELETED>
<DELETED>    (d) Death Benefits for Civil Air Patrol Volunteers.--
Section 8141 is amended--</DELETED>
        <DELETED>    (1) in subsection (b)(2)(B) by striking ``75 
        percent'' and inserting ``66</DELETED>\<DELETED>2/3</DELETED>\ 
        <DELETED>percent (except as provided in subsection 
        (c))'';</DELETED>
        <DELETED>    (2) by redesignating subsection (c) as subsection 
        (d); and</DELETED>
        <DELETED>    (3) by inserting after subsection (b) the 
        following:</DELETED>
<DELETED>    ``(c) If the death occurred before the date of enactment 
of the Workers' Compensation Reform Act of 2013, subsection (b)(2)(B) 
shall be applied by substituting `75 percent' for 
`66</DELETED>\<DELETED>2/3</DELETED>\ <DELETED>percent'.''.</DELETED>

<DELETED>SEC. 504. SCHEDULE COMPENSATION PAYMENTS.</DELETED>

<DELETED>    Section 8107 is amended--</DELETED>
        <DELETED>    (1) in subsection (a), by striking ``at the rate 
        of 66</DELETED>\<DELETED>2/3</DELETED>\ <DELETED>percent of his 
        monthly pay'' and inserting ``at the rate specified under 
        subsection (d)''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(d) Rate for Compensation.--</DELETED>
        <DELETED>    ``(1) Annual salary.--</DELETED>
                <DELETED>    ``(A) In general.--Except as provided in 
                paragraph (2), the rate under subsection (a) shall be 
                the rate of 66</DELETED>\<DELETED>2/3</DELETED>\ 
                <DELETED>percent of the annual salary level established 
                under subparagraph (B), in a lump sum equal to the 
                present value (as calculated under subparagraph (C)) of 
                the amount of compensation payable under the 
                schedule.</DELETED>
                <DELETED>    ``(B) Establishment.--</DELETED>
                        <DELETED>    ``(i) In general.--The Secretary 
                        of Labor shall establish an annual salary for 
                        purposes of subparagraph (A) in the amount the 
                        Secretary determines will result in the 
                        aggregate cost of payments made under this 
                        section being equal to what would have been the 
                        aggregate cost of payments under this section 
                        if the amendments made by section 504 of the 
                        Workers' Compensation Reform Act of 2013 had 
                        not been enacted.</DELETED>
                        <DELETED>    ``(ii) Cost of living 
                        adjustment.--The annual salary established 
                        under clause (i) shall be increased on March 1 
                        of each year by the amount determined by the 
                        Secretary of Labor to represent the percent 
                        change in the price index published for 
                        December of the preceding year over the price 
                        index published for the December of the year 
                        prior to the preceding year, adjusted to the 
                        nearest one-tenth of 1 percent.</DELETED>
                <DELETED>    ``(C) Present value.--The Secretary of 
                Labor shall calculate the present value for purposes of 
                subparagraph (A) using a rate of interest equal to the 
                average market yield for outstanding marketable 
                obligations of the United States with a maturity of 2 
                years on the first business day of the month in which 
                the compensation is paid or, in the event that such 
                marketable obligations are not being issued on such 
                date, at an equivalent rate selected by the Secretary 
                of Labor, true discount compounded annually.</DELETED>
        <DELETED>    ``(2) Certain injuries.--For an injury that 
        occurred before the date of enactment of the Workers' 
        Compensation Reform Act of 2013, the rate under subsection (a) 
        shall be 66</DELETED>\<DELETED>2/3</DELETED>\ <DELETED>percent 
        of the employee's monthly pay.</DELETED>
<DELETED>    ``(e) Simultaneous Receipt.--</DELETED>
        <DELETED>    ``(1) Total disability.--An employee who receives 
        compensation for total disability under section 8105 may only 
        receive the lump sum of schedule compensation under this 
        section in addition to and simultaneously with the benefits for 
        total disability after the earlier of--</DELETED>
                <DELETED>    ``(A) the date on which the basic 
                compensation for total disability of the employee 
                becomes 50 percent of the monthly pay of the employee 
                under section 8105(b); or</DELETED>
                <DELETED>    ``(B) the date on which augmented 
                compensation of the employee terminates under section 
                8110(b)(2)(A)(ii), if the employee receives such 
                compensation.</DELETED>
        <DELETED>    ``(2) Partial disability.--An employee who 
        receives benefits for partial disability under section 8106 may 
        only receive the lump sum of schedule compensation under this 
        section in addition to and simultaneously with the benefits for 
        partial disability after the earlier of--</DELETED>
                <DELETED>    ``(A) the date on which the basic 
                compensation for partial disability of the employee 
                becomes 50 percent of the difference between the 
                monthly pay of the employee and the monthly wage-
                earning capacity of the employee after the beginning of 
                the partial disability under section 8106(b); 
                or</DELETED>
                <DELETED>    ``(B) the date on which augmented 
                compensation of the employee terminates under section 
                8110(b)(2)(B), if the employee receives such 
                compensation.''.</DELETED>

<DELETED>SEC. 505. VOCATIONAL REHABILITATION.</DELETED>

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

<DELETED>``1538. Authorization for assisted reemployment.''.

<DELETED>SEC. 506. REPORTING REQUIREMENTS.</DELETED>

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

<DELETED>``8106a. Reporting requirements.''.

<DELETED>SEC. 507. DISABILITY MANAGEMENT REVIEW; INDEPENDENT MEDICAL 
              EXAMINATIONS.</DELETED>

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

<DELETED>SEC. 508. WAITING PERIOD.</DELETED>

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

<DELETED>``8117. Waiting period.
<DELETED>``8118. Continuation of pay.''.

<DELETED>SEC. 509. ELECTION OF BENEFITS.</DELETED>

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

<DELETED>SEC. 510. SANCTION FOR NONCOOPERATION WITH FIELD 
              NURSES.</DELETED>

<DELETED>    Section 8123, as amended by section 507, is amended by 
adding at the end the following:</DELETED>
<DELETED>    ``(f) Field Nurses.--</DELETED>
        <DELETED>    ``(1) Definition.--In this subsection, the term 
        `field nurse' means a registered nurse that assists the 
        Secretary in the medical management of disability claims under 
        this subchapter and provides claimants with assistance in 
        coordinating medical care.</DELETED>
        <DELETED>    ``(2) Authorization.--The Secretary may use field 
        nurses to coordinate medical services and vocational 
        rehabilitation programs for injured employees under this 
        subchapter. If an employee refuses to cooperate with a field 
        nurse or obstructs a field nurse in the performance of duties 
        under this subchapter, the right to compensation under this 
        subchapter shall be suspended until the refusal or obstruction 
        stops.''.</DELETED>

<DELETED>SEC. 511. SUBROGATION OF CONTINUATION OF PAY.</DELETED>

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

<DELETED>SEC. 512. INTEGRITY AND COMPLIANCE.</DELETED>

<DELETED>    (a) In General.--Subchapter I of chapter 81 is amended by 
adding at the end the following:</DELETED>
<DELETED>``Sec. 8153. Integrity and Compliance Program</DELETED>
<DELETED>    ``(a) Definitions.--In this section--</DELETED>
        <DELETED>    ``(1) the term `FECA program' means the Federal 
        Employees Compensation Program administered under this 
        subchapter;</DELETED>
        <DELETED>    ``(2) the term `improper payment' has the meaning 
        given that term in section 2(g) of the Improper Payments 
        Information Act of 2002 (31 U.S.C. 3321 note);</DELETED>
        <DELETED>    ``(3) the term `Inspector General'--</DELETED>
                <DELETED>    ``(A) means an Inspector General described 
                in subparagraph (A), (B), or (I) of section 11(b)(1) of 
                the Inspector General Act of 1978 (5 U.S.C. App.); 
                and</DELETED>
                <DELETED>    ``(B) does not include the Inspector 
                General of an entity having no employees covered under 
                the FECA program;</DELETED>
        <DELETED>    ``(4) the term `Integrity and Compliance Program' 
        means the Integrity and Compliance Program established under 
        subsection (b);</DELETED>
        <DELETED>    ``(5) the term `provider' means a provider of 
        medical or other services under the FECA program;</DELETED>
        <DELETED>    ``(6) the term `Secretary' means the Secretary of 
        Labor; and</DELETED>
        <DELETED>    ``(7) the term `Task Force' means the FECA 
        Integrity and Compliance Task Force established under 
        subsection (c)(2)(A).</DELETED>
<DELETED>    ``(b) Integrity and Compliance Program.--Not later than 
270 days after the date of enactment of this section, the Secretary 
shall establish an Integrity and Compliance Program for the purpose of 
preventing, identifying, and recovering fraudulent and other improper 
payments for the FECA program, which shall include--</DELETED>
        <DELETED>    ``(1) procedures for identifying potentially 
        improper payments before payment is made to claimants and 
        providers, including, where appropriate, predictive 
        analytics;</DELETED>
        <DELETED>    ``(2) reviews after payment is made to identify 
        potentially improper payments to claimants and 
        providers;</DELETED>
        <DELETED>    ``(3) on-going screening and verification 
        procedures to ensure the continued eligibility of medical 
        providers to provide services under the FECA program, including 
        licensure, Federal disbarment, and the existence of relevant 
        criminal convictions;</DELETED>
        <DELETED>    ``(4) provision of appropriate information, 
        education, and training to claimants and providers on 
        requirements to ensure the integrity of the FECA program, 
        including payments under the FECA program;</DELETED>
        <DELETED>    ``(5) appropriate controls and audits to ensure 
        that providers adopt internal controls and procedures for 
        compliance with requirements under the FECA program;</DELETED>
        <DELETED>    ``(6) procedures to ensure--</DELETED>
                <DELETED>    ``(A) initial and continuing eligibility 
                of claimants for compensation, benefits, or services 
                under the FECA program; and</DELETED>
                <DELETED>    ``(B) ongoing verification of information 
                in databases relating to claimants to ensure accuracy 
                and completeness; and</DELETED>
        <DELETED>    ``(7) sharing and accessing data and information 
        with other agencies and instrumentalities of the United States, 
        including the United States Postal Service.</DELETED>
<DELETED>    ``(c) Interagency Cooperation on Anti-Fraud Efforts.--
</DELETED>
        <DELETED>    ``(1) In general.--In administering the FECA 
        program, including the Integrity and Compliance Program, the 
        Secretary shall cooperate with other agencies and 
        instrumentalities of the United States (including the United 
        States Postal Service) and the Inspectors General of such 
        agencies and instrumentalities to prevent, identify, and 
        recover fraudulent and other improper payments under the FECA 
        program.</DELETED>
        <DELETED>    ``(2) Task force.--</DELETED>
                <DELETED>    ``(A) In general.--There is established a 
                task force, which shall be known as the FECA Integrity 
                and Compliance Task Force.</DELETED>
                <DELETED>    ``(B) Membership.--The members of the Task 
                Force shall be--</DELETED>
                        <DELETED>    ``(i) the Secretary, who shall 
                        serve as the Chairperson of the Task 
                        Force;</DELETED>
                        <DELETED>    ``(ii) the Postmaster General, who 
                        shall serve as the Vice Chairperson of the Task 
                        Force;</DELETED>
                        <DELETED>    ``(iii) the Attorney 
                        General;</DELETED>
                        <DELETED>    ``(iv) the Director of the Office 
                        of Management and Budget; and</DELETED>
                        <DELETED>    ``(v) other appropriate Federal 
                        officials, as determined by the Chairperson and 
                        Vice Chairperson of the Task Force.</DELETED>
                <DELETED>    ``(C) Advisory members.--The following 
                officials shall attend meetings of the Task Force and 
                participate as ad hoc, advisory members, to provide 
                technical assistance and guidance to the Task Force 
                with respect to the duties of the Task Force:</DELETED>
                        <DELETED>    ``(i) The Inspector General of the 
                        Department of Labor.</DELETED>
                        <DELETED>    ``(ii) The Inspector General of 
                        the United States Postal Service.</DELETED>
                        <DELETED>    ``(iii) The Inspectors General of 
                        other appropriate agencies and 
                        instrumentalities of the United States that 
                        employ a significant number of individuals 
                        receiving compensation, benefits, or services 
                        under the FECA program, as determined by the 
                        Chairperson of the Task Force.</DELETED>
                <DELETED>    ``(D) Duties.--The Task Force shall--
                </DELETED>
                        <DELETED>    ``(i) set forth, in writing, a 
                        description of the respective roles and 
                        responsibilities in preventing, identifying, 
                        recovering, and prosecuting fraud under, and 
                        otherwise ensuring integrity and compliance of, 
                        the FECA program of--</DELETED>
                                <DELETED>    ``(I) the Secretary 
                                (including subordinate officials such 
                                as the Director of the Office of 
                                Workers' Compensation 
                                Programs);</DELETED>
                                <DELETED>    ``(II) the Inspector 
                                General of the Department of 
                                Labor;</DELETED>
                                <DELETED>    ``(III) the Inspectors 
                                General of agencies and 
                                instrumentalities of the United States 
                                that employ claimants under the FECA 
                                program;</DELETED>
                                <DELETED>    ``(IV) the Attorney 
                                General; and</DELETED>
                                <DELETED>    ``(V) any other relevant 
                                officials;</DELETED>
                        <DELETED>    ``(ii) develop procedures for 
                        sharing information of possible fraud under the 
                        FECA program or other intentional misstatements 
                        by claimants or providers under the FECA 
                        program, including procedures addressing--
                        </DELETED>
                                <DELETED>    ``(I) notification of 
                                appropriate officials of the Department 
                                of Labor of potential fraud or other 
                                intentional misstatements, including 
                                provision of supporting 
                                information;</DELETED>
                                <DELETED>    ``(II) timely and 
                                appropriate response by officials of 
                                the Department of Labor to 
                                notifications described in subclause 
                                (I);</DELETED>
                                <DELETED>    ``(III) the inclusion of 
                                information and evidence relating to 
                                fraud and other intentional 
                                misstatements in criminal, civil, and 
                                administrative proceedings relating to 
                                the provision of compensation, 
                                benefits, or medical services 
                                (including payments to providers) under 
                                the FECA program;</DELETED>
                                <DELETED>    ``(IV) the coordination of 
                                criminal investigations with the 
                                administration of the FECA program; 
                                and</DELETED>
                                <DELETED>    ``(V) the protection of 
                                information relating to an 
                                investigation of possible fraud under 
                                the FECA program from potential 
                                disclosure, including requirements that 
                                enable investigative files to be 
                                appropriately separated from case 
                                management files; and</DELETED>
                        <DELETED>    ``(iii) not later than 1 year 
                        after the date of enactment of this section, 
                        submit to the Committee on Homeland Security 
                        and Governmental Affairs of the Senate and the 
                        Committee on Oversight and Government Reform 
                        and the Committee on Education and the 
                        Workforce of the House of Representatives a 
                        report that includes the description and 
                        procedures required under clauses (i) and 
                        (ii).</DELETED>
        <DELETED>    ``(3) Rule of construction.--Nothing in this 
        subsection shall be construed to limit or restrict any 
        authority of an Inspector General.</DELETED>
<DELETED>    ``(d) Improvements to Access of Federal Databases.--
</DELETED>
        <DELETED>    ``(1) In general.--In order to improve compliance 
        with the requirements under and the integrity of the FECA 
        program, or as required to otherwise detect and prevent 
        improper payments under the FECA program (including for 
        purposes of computer matching under subsection (e)(1)(D)), upon 
        written request--</DELETED>
                <DELETED>    ``(A) the Commissioner of Social Security 
                shall make available to the Secretary, the Postmaster 
                General, and each Inspector General the Social Security 
                earnings information of a living or deceased 
                employee;</DELETED>
                <DELETED>    ``(B) the Director of the Office of 
                Personnel Management shall make available to the 
                Secretary, the Postmaster General, and each Inspector 
                General the information in the databases of Federal 
                employees and retirees maintained by the Director; 
                and</DELETED>
                <DELETED>    ``(C) the Secretary of Veterans Affairs 
                shall make available to the Secretary, the Postmaster 
                General, and each Inspector General the information in 
                the database of disabled individuals maintained by the 
                Secretary of Veterans Affairs.</DELETED>
        <DELETED>    ``(2) National directory of new hires.--Upon 
        written request, the Secretary of Health and Human Services 
        shall make available to the Secretary, the Postmaster General, 
        each Inspector General, and the Comptroller General of the 
        United States the information in the National Directory of New 
        Hires for purposes of carrying out this subchapter, in order to 
        improve compliance with the requirements under and the 
        integrity of the FECA program, or as required to otherwise 
        detect and prevent improper payments under the FECA program 
        (including for purposes of computer matching under subsection 
        (e)(1)(D)). The Comptroller General may obtain information from 
        the National Directory of New Hires for purposes of any audit, 
        evaluation, or investigation, including any audit, evaluation, 
        or investigation relating to program integrity.</DELETED>
        <DELETED>    ``(3) Procedures.--The Secretary shall establish 
        procedures for correlating the identity and status of 
        recipients of compensation, benefits, or services under this 
        subchapter with Social Security earnings information described 
        in paragraph (1)(A).</DELETED>
        <DELETED>    ``(4) Provision.--Information requested under this 
        subsection shall be provided--</DELETED>
                <DELETED>    ``(A) in a timely manner;</DELETED>
                <DELETED>    ``(B) at a reasonable cost to the 
                Secretary, the Postmaster General, or an Inspector 
                General;</DELETED>
                <DELETED>    ``(C) without cost to the Comptroller 
                General of the United States; and</DELETED>
                <DELETED>    ``(D) in the manner, frequency, and form 
                reasonably specified by the officer making the request, 
                which, upon request, shall include electronic 
                form.</DELETED>
        <DELETED>    ``(5) Assessment of data cost-effectiveness.--
        </DELETED>
                <DELETED>    ``(A) In general.--The Secretary shall 
                consider and assess procedures for correlating the 
                identity and status of recipients of compensation, 
                benefits, or services under this subchapter with 
                information relating to employees, retirees, and 
                individuals described in subparagraphs (B) and (C) of 
                paragraph (1) and paragraph (2).</DELETED>
                <DELETED>    ``(B) Report.--Not later than 1 year after 
                the date of enactment of this section, the Secretary 
                shall submit to the Committee on Homeland Security and 
                Governmental Affairs of the Senate and the Committee on 
                Oversight and Government Reform and the Committee on 
                Education and the Workforce of the House of 
                Representatives a report on the cost-effectiveness of 
                the use of the databases described in subparagraphs (B) 
                and (C) of paragraph (1) and paragraph (2) for program 
                compliance and integrity. The report required under 
                this subparagraph may be included as part of the report 
                required under subsection (f).</DELETED>
        <DELETED>    ``(6) United states postal service feca enrollee 
        database.--Not later than 180 days after the date of enactment 
        of this section, in order to track, verify, and communicate 
        with the Secretary and other relevant entities, the Postmaster 
        General shall establish an electronic database of information 
        relating to employees of the United States Postal Service who 
        have applied for or are receiving compensation, benefits, or 
        services under this subchapter.</DELETED>
        <DELETED>    ``(7) Rule of construction.--Nothing in this 
        subsection shall be construed to limit the authority of the 
        Comptroller General of the United States under section 716 of 
        title 31.</DELETED>
<DELETED>    ``(e) General Protocols and Security.--</DELETED>
        <DELETED>    ``(1) Establishment.--</DELETED>
                <DELETED>    ``(A) In general.--In order to ensure 
                strong information security and privacy standards, the 
                Task Force shall establish protocols for the secure 
                transfer and storage of any information provided to an 
                individual or entity under this section.</DELETED>
                <DELETED>    ``(B) Considerations.--In establishing 
                protocols under subparagraph (A), the Task Force shall 
                consider any recommendations submitted to the Secretary 
                by the Inspector General of the Department of Health 
                and Human Services with respect to the secure transfer 
                and storage of information, and to comply with privacy 
                laws and best practices.</DELETED>
                <DELETED>    ``(C) Fraud case protection.--The Task 
                Force shall establish protocols and procedures to 
                enable information and materials relating to an active 
                investigation of possible fraud relating to the FECA 
                program to be appropriately kept separate from the 
                files for employees relating to the provision of 
                compensation, benefits, or services under the FECA 
                program.</DELETED>
                <DELETED>    ``(D) Computer matching by federal 
                agencies for purposes of investigation and prevention 
                of improper payments and fraud.--</DELETED>
                        <DELETED>    ``(i) In general.--Except as 
                        provided in this subparagraph, in accordance 
                        with section 552a (commonly known as the 
                        Privacy Act of 1974), the Secretary, the 
                        Postmaster General, each Inspector General, and 
                        the head of each agency may enter into computer 
                        matching agreements that allow ongoing data 
                        matching (which shall include automated data 
                        matching) in order to assist in the detection 
                        and prevention of improper payments under the 
                        FECA program.</DELETED>
                        <DELETED>    ``(ii) Review.--Not later than 60 
                        days after a proposal for an agreement under 
                        clause (i) has been presented to a Data 
                        Integrity Board established under section 
                        552a(u) for consideration, the Data Integrity 
                        Board shall approve or deny the 
                        agreement.</DELETED>
                        <DELETED>    ``(iii) Termination date.--An 
                        agreement under clause (i)--</DELETED>
                                <DELETED>    ``(I) shall have a 
                                termination date of less than 3 years; 
                                and</DELETED>
                                <DELETED>    ``(II) during the 3-month 
                                period ending on the date on which the 
                                agreement is scheduled to terminate, 
                                may be renewed by the agencies entering 
                                the agreement for not more than 3 
                                years.</DELETED>
                        <DELETED>    ``(iv) Multiple agencies.--For 
                        purposes of this subparagraph, section 
                        552a(o)(1) shall be applied by substituting 
                        `between the source agency and the recipient 
                        agency or non-Federal agency or an agreement 
                        governing multiple agencies' for `between the 
                        source agency and the recipient agency or non-
                        Federal agency' in the matter preceding 
                        subparagraph (A).</DELETED>
                        <DELETED>    ``(v) Cost-benefit analysis.--An 
                        agreement under clause (i) may be entered 
                        without regard to section 552a(o)(1)(B), 
                        relating to a cost-benefit analysis of the 
                        proposed matching program.</DELETED>
                        <DELETED>    ``(vi) Guidance by the office of 
                        management and budget.--Not later than 6 months 
                        after the date of enactment of the Workers' 
                        Compensation Reform Act of 2013, and in 
                        consultation with the Council of Inspectors 
                        General on Integrity and Efficiency, the 
                        Secretary of Health and Human Services, the 
                        Commissioner of Social Security, and the head 
                        of any other relevant agency, the Director of 
                        the Office of Management and Budget shall--
                        </DELETED>
                                <DELETED>    ``(I) issue guidance for 
                                agencies regarding implementing this 
                                subparagraph, which shall include 
                                standards for reimbursement costs, when 
                                necessary, between agencies; 
                                and</DELETED>
                                <DELETED>    ``(II) establish standards 
                                and develop standard matching 
                                agreements for the purpose of improving 
                                the process for establishing data use 
                                or computer matching 
                                agreements.</DELETED>
        <DELETED>    ``(2) Compliance.--The Secretary, the Postmaster 
        General, and each Inspector General shall ensure that any 
        information provided to an individual or entity under this 
        section is provided in accordance with protocols established 
        under paragraph (1).</DELETED>
        <DELETED>    ``(3) Rule of construction.--Nothing in this 
        section shall be construed to affect the rights of an 
        individual under section 552a(p).</DELETED>
<DELETED>    ``(f) Report.--Not later than 1 year after the date of 
enactment of this section, and annually thereafter for 5 years, the 
Secretary shall submit a report on the activities of the Secretary 
under this section, including implementation of the Integrity and 
Compliance Program, to--</DELETED>
        <DELETED>    ``(1) the Committee on Homeland Security and 
        Governmental Affairs of the Senate; and</DELETED>
        <DELETED>    ``(2) the Committee on Oversight and Government 
        Reform and the Committee on Education and the Workforce of the 
        House of Representatives.</DELETED>
<DELETED>    ``(g) GAO Review.--The Comptroller General of the United 
States shall--</DELETED>
        <DELETED>    ``(1) conduct periodic reviews of the Integrity 
        and Compliance Program; and</DELETED>
        <DELETED>    ``(2) submit reports on the results of the reviews 
        under paragraph (1) to the Committee on Homeland Security and 
        Governmental Affairs of the Senate and the Committee on 
        Oversight and Government Reform and the Committee on Education 
        and the Workforce of the House of Representatives not later 
        than--</DELETED>
                <DELETED>    ``(A) 2 years after the date of enactment 
                of this section; and</DELETED>
                <DELETED>    ``(B) 3 years after submission of the 
                report under subparagraph (A).''.</DELETED>
<DELETED>    (b) Technical and Conforming Amendment.--The table of 
sections for chapter 81 is amended by inserting after the item relating 
to section 8152 the following:</DELETED>

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

<DELETED>SEC. 513. AMOUNT OF COMPENSATION.</DELETED>

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

<DELETED>SEC. 514. TERRORISM INJURIES; ZONES OF ARMED 
              CONFLICT.</DELETED>

<DELETED>    (a) Covering Terrorism Injuries.--Section 8102(b) is 
amended in the matter preceding paragraph (1)--</DELETED>
        <DELETED>    (1) by inserting ``or from an attack by a 
        terrorist or terrorist organization, either known or unknown,'' 
        after ``force or individual,''; and</DELETED>
        <DELETED>    (2) by striking ``outside'' and all that follows 
        through ``1979)'' and inserting ``outside of the United 
        States''.</DELETED>
<DELETED>    (b) Continuation of Pay in a Zone of Armed Conflict.--
Section 8118, as amended by section 508(b) of this Act, is amended--
</DELETED>
        <DELETED>    (1) in subsection (b), by striking 
        ``Continuation'' and inserting ``Except as provided under 
        subsection (d)(2), continuation'';</DELETED>
        <DELETED>    (2) in subsection (c), as redesignated by section 
        508(b)(4) of this Act, by striking ``subsection (a)'' and 
        inserting ``subsection (a) or (d)''; and</DELETED>
        <DELETED>    (3) inserting before subsection (e) the 
        following:</DELETED>
<DELETED>    ``(d) Continuation of Pay in a Zone of Armed Conflict.--
</DELETED>
        <DELETED>    ``(1) In general.--Notwithstanding subsection (a), 
        the United States shall authorize the continuation of pay of an 
        employee described in subparagraph (A), (C), (D), or (F) of 
        section 8101(1), who--</DELETED>
                <DELETED>    ``(A) files a claim for a period of wage 
                loss due to an injury in performance of duty in a zone 
                of armed conflict (as determined by the Secretary of 
                Labor under paragraph (3)); and</DELETED>
                <DELETED>    ``(B) files the claim for such wage loss 
                benefit with the immediate superior of the employee not 
                later than 45 days after the later of--</DELETED>
                        <DELETED>    ``(i) the termination of the 
                        assignment of the employee to the zone of armed 
                        conflict; or</DELETED>
                        <DELETED>    ``(ii) the return of the employee 
                        to the United States.</DELETED>
        <DELETED>    ``(2) Continuation of pay.--Notwithstanding 
        subsection (b), continuation of pay under this subsection shall 
        be furnished for a period not to exceed 135 days without any 
        break in time or waiting period, unless controverted under 
        regulations prescribed by the Secretary of Labor.</DELETED>
        <DELETED>    ``(3) Determination of zones of armed conflict.--
        For purposes of this subsection, the Secretary of Labor, in 
        consultation with the Secretary of State and the Secretary of 
        Defense, shall determine whether a foreign country or other 
        foreign geographic area outside of the United States (as 
        defined in section 202(a)(7) of the State Department Basic 
        Authorities Act of 1956 (22 U.S.C. 4302(a)(7)) is a zone of 
        armed conflict based on whether--</DELETED>
                <DELETED>    ``(A) the Armed Forces of the United 
                States are involved in hostilities in the country or 
                area;</DELETED>
                <DELETED>    ``(B) the incidence of civil insurrection, 
                civil war, terrorism, or wartime conditions threatens 
                physical harm or imminent danger to the health or well-
                being of United States civilian employees in the 
                country or area;</DELETED>
                <DELETED>    ``(C) the country or area has been 
                designated a combat zone by the President under section 
                112(c) of the Internal Revenue Code of 1986;</DELETED>
                <DELETED>    ``(D) a contingency operation involving 
                combat operations directly affects civilian employees 
                in the country or area; or</DELETED>
                <DELETED>    ``(E) there exist other relevant 
                conditions and factors.''.</DELETED>

<DELETED>SEC. 515. TECHNICAL AND CONFORMING AMENDMENTS.</DELETED>

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

<DELETED>SEC. 516. REGULATIONS.</DELETED>

<DELETED>    (a) In General.--As soon as possible after the date of 
enactment of this Act, the Secretary of Labor shall promulgate 
regulations (which may include interim final regulations) to carry out 
this title.</DELETED>
<DELETED>    (b) Contents.--The regulations promulgated under 
subsection (a) shall include, for purposes of the amendments made by 
sections 502 and 503, clarification of--</DELETED>
        <DELETED>    (1) what is a claim; and</DELETED>
        <DELETED>    (2) what is the date on which a period of 
        disability, for which a claim is made, commences.</DELETED>

<DELETED>SEC. 517. EFFECTIVE DATE.</DELETED>

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

 <DELETED>TITLE VI--PROPERTY MANAGEMENT AND EXPEDITED DISPOSAL OF REAL 
                           PROPERTY</DELETED>

<DELETED>SEC. 601. SHORT TITLE.</DELETED>

<DELETED>    This title may be cited as the ``Federal Real Property 
Asset Management Reform Act of 2013''.</DELETED>

<DELETED>SEC. 602. PURPOSE.</DELETED>

<DELETED>    The purpose of this title is to increase the efficiency 
and effectiveness of the Federal Government in managing real property 
by--</DELETED>
        <DELETED>    (1) requiring agencies to maintain an up-to-date 
        inventory of real property;</DELETED>
        <DELETED>    (2) establishing a Federal Real Property Council 
        to develop guidance on and ensure the implementation of 
        strategies for better managing Federal real property; 
        and</DELETED>
        <DELETED>    (3) authorizing a pilot program to expedite the 
        disposal of surplus real property.</DELETED>

<DELETED>SEC. 603. PROPERTY MANAGEMENT AND EXPEDITED DISPOSAL OF REAL 
              PROPERTY.</DELETED>

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

 <DELETED>``SUBCHAPTER VII--PROPERTY MANAGEMENT AND EXPEDITED DISPOSAL 
                       OF REAL PROPERTY</DELETED>

<DELETED>``Sec. 621. Definitions</DELETED>
<DELETED>    ``In this subchapter:</DELETED>
        <DELETED>    ``(1) Administrator.--The term `Administrator' 
        means the Administrator of General Services.</DELETED>
        <DELETED>    ``(2) Council.--The term `Council' means the 
        Federal Real Property Council established by section 
        623(a).</DELETED>
        <DELETED>    ``(3) Director.--The term `Director' means the 
        Director of the Office of Management and Budget.</DELETED>
        <DELETED>    ``(4) Disposal.--The term `disposal' means any 
        action that constitutes the removal of any real property from 
        the Federal inventory, including sale, deed, demolition, or 
        exchange.</DELETED>
        <DELETED>    ``(5) Excess property.--The term `excess property' 
        means any real property under the control of a Federal agency 
        that the head of the Federal agency determines is not required 
        to meet the needs or responsibilities of the Federal 
        agency.</DELETED>
        <DELETED>    ``(6) Federal agency.--The term `Federal agency' 
        means--</DELETED>
                <DELETED>    ``(A) an executive department or 
                independent establishment in the executive branch of 
                the Government; or</DELETED>
                <DELETED>    ``(B) a wholly owned Government 
                corporation.</DELETED>
        <DELETED>    ``(7) Field office.--The term `field office' means 
        any office of a Federal agency that is not the headquarters 
        office location for the Federal agency.</DELETED>
        <DELETED>    ``(8) Postal property.--The term `postal property' 
        means any building owned by the United States Postal 
        Service.</DELETED>
        <DELETED>    ``(9) Surplus property.--</DELETED>
                <DELETED>    ``(A) In general.--The term `surplus 
                property' means excess real property that is not 
                required to meet the needs or responsibilities of any 
                Federal agency.</DELETED>
                <DELETED>    ``(B) Exclusions.--The term `surplus 
                property' does not include--</DELETED>
                        <DELETED>    ``(i) any military installation 
                        (as defined in section 2910 of the Defense Base 
                        Closure and Realignment Act of 1990 (10 U.S.C. 
                        2687 note; Public Law 101-510));</DELETED>
                        <DELETED>    ``(ii) any property that is 
                        excepted from the definition of the term 
                        `property' under section 102;</DELETED>
                        <DELETED>    ``(iii) Indian and native Eskimo 
                        property held in trust by the Federal 
                        Government as described in section 
                        3301(a)(5)(C)(iii);</DELETED>
                        <DELETED>    ``(iv) real property operated and 
                        maintained by the Tennessee Valley Authority 
                        pursuant to the Tennessee Valley Authority Act 
                        of 1933 (16 U.S.C. 831 et seq.);</DELETED>
                        <DELETED>    ``(v) any real property the 
                        Director excludes for reasons of national 
                        security;</DELETED>
                        <DELETED>    ``(vi) any public lands (as 
                        defined in section 203 of the Public Lands 
                        Corps Act of 1993 (16 U.S.C. 1722)) 
                        administered by--</DELETED>
                                <DELETED>    ``(I) the Secretary of the 
                                Interior, acting through--</DELETED>
                                        <DELETED>    ``(aa) the 
                                        Director of the Bureau of Land 
                                        Management;</DELETED>
                                        <DELETED>    ``(bb) the 
                                        Director of the National Park 
                                        Service;</DELETED>
                                        <DELETED>    ``(cc) the 
                                        Commissioner of Reclamation; 
                                        or</DELETED>
                                        <DELETED>    ``(dd) the 
                                        Director of the United States 
                                        Fish and Wildlife Service; 
                                        or</DELETED>
                                <DELETED>    ``(II) the Secretary of 
                                Agriculture, acting through the Chief 
                                of the Forest Service; or</DELETED>
                        <DELETED>    ``(vii) any property operated and 
                        maintained by the United States Postal 
                        Service.</DELETED>
        <DELETED>    ``(10) Underutilized property.--The term 
        `underutilized property' means a portion or the entirety of any 
        real property, including any improvements, that is used--
        </DELETED>
                <DELETED>    ``(A) irregularly or intermittently by the 
                accountable Federal agency for program purposes of the 
                Federal agency; or</DELETED>
                <DELETED>    ``(B) for program purposes that can be 
                satisfied only with a portion of the 
                property.</DELETED>
<DELETED>``Sec. 622. Duties of Federal agencies</DELETED>
<DELETED>    ``Each Federal agency shall--</DELETED>
        <DELETED>    ``(1) maintain adequate inventory controls and 
        accountability systems for real property under the control of 
        the Federal agency;</DELETED>
        <DELETED>    ``(2) develop current and future workforce 
        projections so as to have the capacity to assess the needs of 
        the Federal workforce regarding the use of real 
        property;</DELETED>
        <DELETED>    ``(3) continuously survey real property under the 
        control of the Federal agency to identify excess property, 
        underutilized property, and other real property suitable to be 
        used for--</DELETED>
                <DELETED>    ``(A) colocation with other Federal 
                agencies; or</DELETED>
                <DELETED>    ``(B) consolidation with other 
                facilities;</DELETED>
        <DELETED>    ``(4) promptly report excess property and 
        underutilized property to the Administrator;</DELETED>
        <DELETED>    ``(5) establish goals that will lead the Federal 
        agency to reduce excess property and underutilized property in 
        the inventory of the Federal agency;</DELETED>
        <DELETED>    ``(6) submit to the Council a report on all excess 
        property and underutilized property in the inventory of the 
        Federal agency, including--</DELETED>
                <DELETED>    ``(A) whether underutilized property can 
                be better utilized; and</DELETED>
                <DELETED>    ``(B) the extent to which the Federal 
                agency believes that the underutilized property serves 
                the needs of the Federal agency to retain underutilized 
                property;</DELETED>
        <DELETED>    ``(7) adopt workplace practices, configurations, 
        and management techniques that can achieve increased levels of 
        productivity and decrease the need for real property 
        assets;</DELETED>
        <DELETED>    ``(8) assess leased space to identify space that 
        is not fully used or occupied;</DELETED>
        <DELETED>    ``(9) on an annual basis and subject to the 
        guidance of the Council--</DELETED>
                <DELETED>    ``(A) conduct an inventory of real 
                property under control of the Federal agency; 
                and</DELETED>
                <DELETED>    ``(B) make an assessment of each real 
                property, which shall include--</DELETED>
                        <DELETED>    ``(i) the age and condition of the 
                        property;</DELETED>
                        <DELETED>    ``(ii) the size of the property in 
                        square footage and acreage;</DELETED>
                        <DELETED>    ``(iii) the geographical location 
                        of the property, including an address and 
                        description;</DELETED>
                        <DELETED>    ``(iv) the extent to which the 
                        property is being utilized;</DELETED>
                        <DELETED>    ``(v) the actual annual operating 
                        costs associated with the property;</DELETED>
                        <DELETED>    ``(vi) the total cost of capital 
                        expenditures associated with the 
                        property;</DELETED>
                        <DELETED>    ``(vii) sustainability metrics 
                        associated with the property;</DELETED>
                        <DELETED>    ``(viii) the number of Federal 
                        employees and functions housed at the 
                        property;</DELETED>
                        <DELETED>    ``(ix) the extent to which the 
                        mission of the Federal agency is dependent on 
                        the property;</DELETED>
                        <DELETED>    ``(x) the estimated amount of 
                        capital expenditures projected to maintain and 
                        operate the property over each of the next 5 
                        years after the date of enactment of this 
                        subchapter; and</DELETED>
                        <DELETED>    ``(xi) any additional information 
                        required by the Administrator to carry out 
                        section 624; and</DELETED>
        <DELETED>    ``(10) provide to the Council and the 
        Administrator the information described in paragraph (9)(B) to 
        be used for the establishment and maintenance of the database 
        described in section 624.</DELETED>
<DELETED>``Sec. 623. Colocation among United States Postal Service 
              properties</DELETED>
<DELETED>    ``(a) Identification of Postal Property.--Each year, the 
Postmaster General may--</DELETED>
        <DELETED>    ``(1) identify a list of postal properties with 
        space available for use by Federal agencies; and</DELETED>
        <DELETED>    ``(2) submit the list to the Council.</DELETED>
<DELETED>    ``(b) Submission of List of Postal Properties to Federal 
Agencies.--</DELETED>
        <DELETED>    ``(1) In general.--Not later than 30 days after 
        the completion of a list under subsection (a), the Council 
        shall provide the list to each Federal agency.</DELETED>
        <DELETED>    ``(2) Review by federal agencies.--Not later than 
        90 days after the receipt of the list submitted under paragraph 
        (1), each Federal agency shall--</DELETED>
                <DELETED>    ``(A) review the list;</DELETED>
                <DELETED>    ``(B) identify real property assets under 
                the control of the Federal agency; and</DELETED>
                <DELETED>    ``(C) recommend colocations if 
                appropriate.</DELETED>
<DELETED>    ``(c) Terms of Colocation.--On approval of the 
recommendations under subsection (b) by the Postmaster General and the 
applicable agency head, the Federal agency or appropriate landholding 
entity may work with the Postmaster General to establish appropriate 
terms of a lease for each postal property.</DELETED>
<DELETED>``Sec. 624. Establishment of a Federal Real Property 
              Council</DELETED>
<DELETED>    ``(a) Establishment.--There is established a Federal Real 
Property Council.</DELETED>
<DELETED>    ``(b) Purpose.--The purpose of the Council shall be--
</DELETED>
        <DELETED>    ``(1) to develop guidance and ensure 
        implementation of an efficient and effective real property 
        management strategy;</DELETED>
        <DELETED>    ``(2) to identify opportunities for the Federal 
        Government to better manage real property assets; and</DELETED>
        <DELETED>    ``(3) to reduce the costs of managing real 
        property, including operations, maintenance, and 
        security.</DELETED>
<DELETED>    ``(c) Composition.--</DELETED>
        <DELETED>    ``(1) In general.--The Council shall be composed 
        exclusively of--</DELETED>
                <DELETED>    ``(A) the senior real property officers of 
                each Federal agency;</DELETED>
                <DELETED>    ``(B) the Deputy Director for Management 
                of the Office of Management and Budget;</DELETED>
                <DELETED>    ``(C) the Controller of the Office of 
                Management and Budget;</DELETED>
                <DELETED>    ``(D) the Administrator; and</DELETED>
                <DELETED>    ``(E) any other full-time or permanent 
                part-time Federal officials or employees, as the 
                Chairperson determines to be necessary.</DELETED>
        <DELETED>    ``(2) Chairperson.--The Deputy Director for 
        Management of the Office of Management and Budget shall serve 
        as Chairperson of the Council.</DELETED>
        <DELETED>    ``(3) Executive director.--</DELETED>
                <DELETED>    ``(A) In general.--The Chairperson shall 
                designate an Executive Director to assist in carrying 
                out the duties of the Council.</DELETED>
                <DELETED>    ``(B) Qualifications; full-time.--The 
                Executive Director shall--</DELETED>
                        <DELETED>    ``(i) be appointed from among 
                        individuals who have substantial experience in 
                        the areas of commercial real estate and 
                        development, real property management, and 
                        Federal operations and management; 
                        and</DELETED>
                        <DELETED>    ``(ii) serve full time.</DELETED>
<DELETED>    ``(d) Meetings.--</DELETED>
        <DELETED>    ``(1) In general.--The Council shall meet subject 
        to the call of the Chairperson.</DELETED>
        <DELETED>    ``(2) Minimum.--The Council shall meet not fewer 
        than 4 times each year.</DELETED>
<DELETED>    ``(e) Duties.--The Council, in consultation with the 
Director and the Administrator, shall--</DELETED>
        <DELETED>    ``(1) not later than 1 year after the date of 
        enactment of this subchapter, establish a real property 
        management plan template, to be updated annually, which shall 
        include performance measures, specific milestones, measurable 
        savings, strategies, and government-wide goals based on the 
        goals established under section 622(5) to reduce surplus 
        property or to achieve better utilization of underutilized 
        property, and evaluation criteria to determine the 
        effectiveness of real property management that are designed--
        </DELETED>
                <DELETED>    ``(A) to enable Congress and heads of 
                Federal agencies to track progress in the achievement 
                of real property management objectives on a government-
                wide basis;</DELETED>
                <DELETED>    ``(B) to improve the management of real 
                property; and</DELETED>
                <DELETED>    ``(C) to allow for comparison of the 
                performance of Federal agencies against industry and 
                other public sector agencies in terms of 
                performance;</DELETED>
        <DELETED>    ``(2) develop standard use rates consistent 
        throughout each category of space and with nongovernmental 
        space use rates;</DELETED>
        <DELETED>    ``(3) develop a strategy to reduce the reliance of 
        Federal agencies on leased space for long-term needs if 
        ownership would be less costly;</DELETED>
        <DELETED>    ``(4) provide guidance on eliminating 
        inefficiencies in the Federal leasing process;</DELETED>
        <DELETED>    ``(5) compile a list of real property assets that 
        are field offices that are suitable for colocation with other 
        real property assets; and</DELETED>
        <DELETED>    ``(6) not later than 1 year after the date of 
        enactment of this subchapter and annually during the 4-year 
        period beginning on the date that is 1 year after the date of 
        enactment of this subchapter and ending on the date that is 5 
        years after the date of enactment of this subchapter, the 
        Council shall submit to the Director a report that contains--
        </DELETED>
                <DELETED>    ``(A) a list of the remaining excess 
                property, surplus property, and underutilized 
                properties of each Federal agency;</DELETED>
                <DELETED>    ``(B) the progress of the Council toward 
                developing guidance for Federal agencies to ensure that 
                the assessment required under section 622(9)(B) is 
                carried out in a uniform manner; and</DELETED>
                <DELETED>    ``(C) the progress of Federal agencies 
                toward achieving the goals established under section 
                622(5).</DELETED>
<DELETED>    ``(f) Consultation.--In carrying out the duties described 
in subsection (e), the Council shall also consult with representatives 
of--</DELETED>
        <DELETED>    ``(1) State, local, tribal authorities, and 
        affected communities; and</DELETED>
        <DELETED>    ``(2) appropriate private sector entities and 
        nongovernmental organizations that have expertise in areas of--
        </DELETED>
                <DELETED>    ``(A) commercial real estate and 
                development;</DELETED>
                <DELETED>    ``(B) government management and 
                operations;</DELETED>
                <DELETED>    ``(C) space planning;</DELETED>
                <DELETED>    ``(D) community development, including 
                transportation and planning; and</DELETED>
                <DELETED>    ``(E) historic preservation.</DELETED>
<DELETED>    ``(g) Council Resources.--The Director and the 
Administrator shall provide staffing, and administrative support for 
the Council, as appropriate.</DELETED>
<DELETED>``Sec. 625. Federal real property inventory and 
              database</DELETED>
<DELETED>    ``(a) In General.--Not later than 1 year after the date of 
enactment of this subchapter, the Administrator shall establish and 
maintain a single, comprehensive, and descriptive database of all real 
property under the custody and control of all Federal 
agencies.</DELETED>
<DELETED>    ``(b) Contents.--The database shall include--</DELETED>
        <DELETED>    ``(1) information provided to the Administrator 
        under section 622(9)(B); and</DELETED>
        <DELETED>    ``(2) a list of real property disposals completed, 
        including--</DELETED>
                <DELETED>    ``(A) the date and disposal method used 
                for each real property;</DELETED>
                <DELETED>    ``(B) the proceeds obtained from the 
                disposal of each real property;</DELETED>
                <DELETED>    ``(C) the amount of time required to 
                dispose of the real property, including the date on 
                which the real property is designated as excess 
                property;</DELETED>
                <DELETED>    ``(D) the date on which the property is 
                designated as surplus property and the date on which 
                the property is disposed; and</DELETED>
                <DELETED>    ``(E) all costs associated with the 
                disposal.</DELETED>
<DELETED>    ``(c) Accessibility.--</DELETED>
        <DELETED>    ``(1) Committees.--The database established under 
        subsection (a) shall be made available on request to the 
        Committee on Homeland Security and Governmental Affairs and the 
        Committee on Environment and Public Works of the Senate and the 
        Committee on Oversight and Government Reform and the Committee 
        on Transportation and Infrastructure of the House of 
        Representatives.</DELETED>
        <DELETED>    ``(2) General public.--Not later than 3 years 
        after the date of enactment of this subchapter and to the 
        extent consistent with national security, the Administrator 
        shall make the database established under subsection (a) 
        accessible to the public at no cost through the website of the 
        General Services Administration.</DELETED>
<DELETED>``Sec. 626. Limitation on certain leasing 
              authorities</DELETED>
<DELETED>    ``(a) In General.--Except as provided in subsection (b), 
not later than December 31 of each year following the date of enactment 
of this subchapter, a Federal agency with independent leasing authority 
shall submit to the Council a list of all leases, including operating 
leases, in effect on the date of enactment of this subchapter that 
includes--</DELETED>
        <DELETED>    ``(1) the date on which each lease was 
        executed;</DELETED>
        <DELETED>    ``(2) the date on which ease lease will 
        expire;</DELETED>
        <DELETED>    ``(3) a description of the size of the 
        space;</DELETED>
        <DELETED>    ``(4) the location of the property;</DELETED>
        <DELETED>    ``(5) the tenant agency;</DELETED>
        <DELETED>    ``(6) the total annual rental rate; and</DELETED>
        <DELETED>    ``(7) the amount of the net present value of the 
        total estimated legal obligations of the Federal Government 
        over the life of the contract.</DELETED>
<DELETED>    ``(b) Exception.--Subsection (a) shall not apply to--
</DELETED>
        <DELETED>    ``(1) the United States Postal Service;</DELETED>
        <DELETED>    ``(2) the Department of Veterans Affairs; 
        or</DELETED>
        <DELETED>    ``(3) any other property the President excludes 
        from subsection (a) for reasons of national security.</DELETED>
<DELETED>``Sec. 627. Expedited disposal pilot program</DELETED>
<DELETED>    ``(a) Establishment.--The Director shall establish a pilot 
program to dispose of, by sale, transfer, or other means of disposal, 
any surplus property.</DELETED>
        <DELETED>    ``(1) Properties for expedited disposal.--
        </DELETED>
                <DELETED>    ``(A) In general.--On an annual basis, the 
                Director may authorize the expedited disposal of not 
                more than 200 surplus properties.</DELETED>
                <DELETED>    ``(B) Priority.--In determining which 
                properties to dispose of, the Director shall give 
                priority to surplus properties that have the highest 
                fair market value and the greatest potential for 
                disposal.</DELETED>
                <DELETED>    ``(C) Costs associated with disposal.--
                </DELETED>
                        <DELETED>    ``(i) In general.--The 
                        Administrator may obligate an amount to pay any 
                        direct and indirect costs under section 572 
                        related to identifying and preparing properties 
                        to be reported as excess property by a Federal 
                        agency.</DELETED>
                        <DELETED>    ``(ii) Reimbursement.--An amount 
                        obligated under clause (i) shall be paid from 
                        the proceeds of any sale of real property under 
                        this subsection.</DELETED>
                        <DELETED>    ``(iii) Net proceeds.--Net 
                        proceeds shall be distributed under subsection 
                        (b).</DELETED>
                <DELETED>    ``(D) Maximum net proceeds.--Any real 
                property authorized to be disposed of by sale of under 
                subparagraph (A) shall disposed of in a manner that, as 
                determined by the Administrator in consultation with 
                the head of the applicable Federal agency, is 
                structured and marketed to maximize the value to the 
                Federal Government.</DELETED>
                <DELETED>    ``(E) Monetary proceeds requirement.--
                Surplus property may be disposed of under this section 
                only if disposal of the property will generate monetary 
                proceeds to the Federal Government that--</DELETED>
                        <DELETED>    ``(i) exceed the costs of disposal 
                        of the property; and</DELETED>
                        <DELETED>    ``(ii) are not less than 90 
                        percent of fair market value.</DELETED>
        <DELETED>    ``(2) Applicability of certain law.--Any expedited 
        disposal of real property conducted under this section shall 
        not be subject to--</DELETED>
                <DELETED>    ``(A) any section of An Act Authorizing 
                the Transfer of Certain Real Property for Wildlife, or 
                Other Purposes (16 U.S.C. 667b);</DELETED>
                <DELETED>    ``(B) sections 107 and 317 of title 
                23;</DELETED>
                <DELETED>    ``(C) sections 545(b)(8), 550, 553, 554, 
                and 1304(b);</DELETED>
                <DELETED>    ``(D) section 501 of the McKinney-Vento 
                Homeless Assistance Act (42 U.S.C. 11411);</DELETED>
                <DELETED>    ``(E) section 47151 of title 49; 
                or</DELETED>
                <DELETED>    ``(F) section 13(d) of the Surplus 
                Property Act of 1944 (50 U.S.C. App. 
                1622(d)).</DELETED>
        <DELETED>    ``(3) Effect.--Except as provided in paragraph 
        (2), nothing in this subchapter terminates or in any way limits 
        the authority of any Federal agency under any other provision 
        of law to dispose of real property.</DELETED>
<DELETED>    ``(b) Use of Proceeds.--</DELETED>
        <DELETED>    ``(1) In general.--Of the proceeds received from 
        the disposal of any real property under this subchapter--
        </DELETED>
                <DELETED>    ``(A) not less than 80 percent shall be 
                returned to the general fund of the Treasury for debt 
                reduction;</DELETED>
                <DELETED>    ``(B) the lesser of 18 percent or the 
                share of proceeds otherwise authorized to be retained 
                under law shall be retained by the Federal agency that 
                has custody and is accountable for the real property, 
                subject to paragraph (2);</DELETED>
                <DELETED>    ``(C) not greater than 2 percent shall be 
                made available to carry out section 627, subject to 
                annual appropriations; and</DELETED>
                <DELETED>    ``(D) any remaining share of the proceeds 
                shall be returned to the general fund of the Treasury 
                for Federal budget deficit reduction.</DELETED>
        <DELETED>    ``(2) Limitation on use of proceeds.--Any proceeds 
        retained by Federal agencies under this section shall be--
        </DELETED>
                <DELETED>    ``(A) deposited into the appropriate real 
                property account of the Federal agency that had custody 
                and accountability for the real property, with the 
                funds expended only as authorized in annual 
                appropriations Acts;</DELETED>
                <DELETED>    ``(B) used--</DELETED>
                        <DELETED>    ``(i) by not later than 2 years 
                        after the date of disposal of the real 
                        property; and</DELETED>
                        <DELETED>    ``(ii) only for activities 
                        relating to Federal real property asset 
                        management and disposal; and</DELETED>
                <DELETED>    ``(C) if not used by the date described in 
                subparagraph (B)(i), shall be deposited in the Treasury 
                and used for Federal budget deficit 
                reduction.</DELETED>
<DELETED>    ``(c) Public Benefit.--</DELETED>
        <DELETED>    ``(1) Conveyance.--Except as provided in paragraph 
        (2), if a real property authorized to be disposed of under 
        subsection (a) has not been disposed of by the date that is 2 
        years after the date the property is listed for sale, the 
        Director, in consultation with the Administrator and the 
        Secretary of Housing and Urban Development, may consider a 
        request from the disposing Federal agency that the real 
        property be conveyed to State and local governments or 
        nonprofit organizations for various public purposes or uses as 
        permitted by applicable law.</DELETED>
        <DELETED>    ``(2) Predominant use and size standards.--
        </DELETED>
                <DELETED>    ``(A) In general.--Any real property 
                authorized to be disposed of under subsection (a) shall 
                not be conveyed under paragraph (1) if--</DELETED>
                        <DELETED>    ``(i) the predominant use of the 
                        property is not for housing; and</DELETED>
                        <DELETED>    ``(ii)(I) the area of the property 
                        is not less than 25,000 square feet; 
                        or</DELETED>
                        <DELETED>    ``(II) the appraised fair market 
                        value of the property is greater than 
                        $1,000,000.</DELETED>
                <DELETED>    ``(B) Appraised fair market value.--The 
                appraised fair market value described in subparagraph 
                (A)(ii)(II) shall be determined by the Federal agency 
                with custody or control of the property, in 
                consultation with the Administrator and standard 
                appraisal practice.</DELETED>
<DELETED>    ``(d) Enforcement.--</DELETED>
        <DELETED>    ``(1) Increase in size of inventory.--Except as 
        provided in paragraph (2), if a Federal agency fails to make 
        available for public sale the real property authorized to be 
        disposed of under subsection (a) by the date that is 18 months 
        after the date on which the authorization is made under 
        subsection (a), that Federal agency, except for specific 
        exceptions promulgated by the Director, shall not increase the 
        size of the civilian real property inventory, unless the square 
        footage of the increase is offset, within an appropriate time 
        as determined by the Director, through consolidation, 
        colocation, or disposal of another building space from the 
        inventory of that Federal agency.</DELETED>
        <DELETED>    ``(2) Exception.--Paragraph (1) shall not apply to 
        a Federal agency that acquires any real property not under the 
        administrative jurisdiction of the Federal Government, by sale 
        or lease, until the Director submits a certification to 
        Congress of the disposal of all of those surplus 
        properties.</DELETED>
<DELETED>    ``(e) Termination of Authority.--The authority provided by 
this section terminates on the date that is 5 years after the date of 
enactment of this subchapter.</DELETED>
<DELETED>``Sec. 628. Homeless assistance grants</DELETED>
<DELETED>    ``(a) Definitions.--In this section:</DELETED>
        <DELETED>    ``(1) Eligible nonprofit organization.--The term 
        `eligible nonprofit organization' means a nonprofit 
        organization that is a representative of the 
        homeless.</DELETED>
        <DELETED>    ``(2) Homeless.--The term `homeless' has the 
        meaning given the term in section 103 of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11302), except that 
        subsection (c) of that section shall not apply.</DELETED>
        <DELETED>    ``(3) Permanent housing.--The term `permanent 
        housing' has the meaning given the term in section 401 of the 
        McKinney-Vento Homeless Assistance Act (42 U.S.C. 
        11360).</DELETED>
        <DELETED>    ``(4) Private nonprofit organization.--The term 
        `private nonprofit organization' has the meaning given the term 
        in section 401 of the McKinney-Vento Homeless Assistance Act 
        (42 U.S.C. 11360).</DELETED>
        <DELETED>    ``(5) Representative of the homeless.--The term 
        `representative of the homeless' has the meaning given the term 
        in section 501(i) of the McKinney-Vento Homeless Assistance Act 
        (42 U.S.C. 11411(i)).</DELETED>
        <DELETED>    ``(6) Secretary.--The term `Secretary' means the 
        Secretary of Housing and Urban Development.</DELETED>
        <DELETED>    ``(7) Transitional housing.--The term 
        `transitional housing' has the meaning given the term in 
        section 401 of the McKinney-Vento Homeless Assistance Act (42 
        U.S.C. 11360).</DELETED>
<DELETED>    ``(b) Grant Authority.--</DELETED>
        <DELETED>    ``(1) In general.--To the extent amounts are made 
        available under section 626(b)(1)(B) for use under this 
        section, the Secretary shall make grants to eligible private 
        nonprofit organizations through the continuum of care program 
        established under subtitle C of title IV of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11381 et seq.), to purchase 
        real property suitable for use to assist the homeless in 
        accordance with subsection (c).</DELETED>
        <DELETED>    ``(2) Terms and conditions.--Except as otherwise 
        provided in this section, a grant under this section shall be 
        subject to the same terms and conditions as a grant under the 
        continuum of care program established under subtitle C of title 
        IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
        11381 et seq.).</DELETED>
<DELETED>    ``(c) Use of Properties for Housing or Shelter for the 
Homeless.--</DELETED>
        <DELETED>    ``(1) Eligible uses.--An eligible private 
        nonprofit organization that receives a grant under subsection 
        (b) shall use the amounts received only to purchase or 
        rehabilitate real property for use to provide permanent 
        housing, transitional housing, or temporary shelter to the 
        homeless.</DELETED>
        <DELETED>    ``(2) Term of use.--The Secretary may not make a 
        grant under subsection (b) to an eligible private nonprofit 
        organization unless the eligible private nonprofit organization 
        provides to the Secretary such assurances as the Secretary 
        determines necessary to ensure that any real property purchased 
        or rehabilitated using amounts received under the grant is used 
        only for the uses described in paragraph (1) for a period of 
        not less than 15 years.</DELETED>
<DELETED>    ``(d) Preference.--In awarding grants under subsection 
(b), the Secretary shall give preference to eligible private nonprofit 
organizations that operate within areas in which Federal real property 
is being sold under the disposal program authorized under section 
626.</DELETED>
<DELETED>    ``(e) Regulations.--The Secretary may promulgate such 
regulations as are necessary to carry out this section.''.</DELETED>

<DELETED>SEC. 604. REPORT OF THE COMPTROLLER GENERAL.</DELETED>

<DELETED>    (a) Draft.--Not later than 3 years after the date of 
enactment of this Act, the Comptroller General of the United States 
shall submit to Congress a draft report on the expedited disposal pilot 
program established by the amendments made by section 3.</DELETED>
<DELETED>    (b) Final.--Not later than 5 years after the date of 
enactment of this Act, the Comptroller General of the United States 
shall submit to Congress a final report on the expedited disposal pilot 
program established by the amendments made by section 3.</DELETED>

<DELETED>SEC. 605. TECHNICAL AND CONFORMING AMENDMENT.</DELETED>

<DELETED>    The table of sections for chapter 5 of subtitle I of title 
40, United States Code, is amended by inserting after the item relating 
to section 611 the following:</DELETED>

<DELETED> ``subchapter vii--property management and expedited disposal 
                            of real property

<DELETED>``621. Definitions.
<DELETED>``622. Duties of Federal agencies.
<DELETED>``623. Colocation among United States Postal Service 
                            properties.
<DELETED>``624. Establishment of a Federal Real Property Council.
<DELETED>``625. Federal real property inventory and database.
<DELETED>``626. Limitation on certain leasing authorities.
<DELETED>``627. Expedited disposal pilot program.
<DELETED>``628. Homeless assistance grants.''.

</DELETED>SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Postal Reform Act of 2014''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.

                   TITLE I--POSTAL SERVICE WORKFORCE

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 Program.
Sec. 105. Labor disputes.
Sec. 106. Prefunding and financial reporting with respect to workers' 
                            compensation liability.
Sec. 107. Right of appeal to Merit Systems Protection Board.
Sec. 108. Supervisory and other managerial organizations.

                  TITLE II--POSTAL SERVICE OPERATIONS

Sec. 201. Maintenance of delivery service standards.
Sec. 202. Preserving mail processing capacity; review of 
                            discontinuances, closings, and 
                            consolidations.
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.
Sec. 207. Report on pilot program for use of natural gas and propane 
                            for postal trucks.
Sec. 208. Capitol Complex post offices.
Sec. 209. Lawful possession of firearms in post office parking lots.

                   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.
Sec. 407. Postal Regulatory Commission.
Sec. 408. Postal Service contracts and congressional oversight 
                            authority.

              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

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.

SEC. 3. DEFINITIONS.

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

                   TITLE I--POSTAL SERVICE WORKFORCE

SEC. 101. ANNUAL FEDERAL EMPLOYEE RETIREMENT SYSTEM AND CIVIL SERVICE 
              RETIREMENT SYSTEM ASSESSMENTS.

    (a) Use of Postal-specific Assumptions in Normal Cost 
Calculation.--
            (1) In general.--Section 8423(a) of title 5, United States 
        Code, is amended--
                    (A) in paragraph (1), by inserting ``other than the 
                United States Postal Service'' after ``Each employing 
                agency''; and
                    (B) by adding at the end the following:
            ``(5)(A) The United States Postal Service shall contribute 
        to the Fund an amount equal to the product of--
                    ``(i) the normal-cost percentage, as determined for 
                employees of the United States Postal Service under 
                subparagraph (B), multiplied by
                    ``(ii) the aggregate amount of basic pay payable by 
                the United States Postal Service, for the period 
                involved, to employees of the United States Postal 
                Service.
            ``(B)(i) In determining the normal-cost percentage for 
        employees of the United States Postal Service, the Office shall 
        use--
                    ``(I) demographic factors specific to the 
                employees; and
                    ``(II) appropriate economic assumptions, as 
                determined by the Office, regarding wage and salary 
                trends specific to the employees.
            ``(ii) The United States Postal Service shall provide any 
        data or projections the Office requires in order to determine 
        the normal-cost percentage for employees of the United States 
        Postal Service consistent with clause (i).
            ``(iii) Notwithstanding paragraph (2), in determining the 
        normal-cost percentage to be applied for employees of the 
        United States Postal Service, the Office shall take into 
        account amounts provided under section 8422 and amounts 
        provided under section 1005(g)(3)(A)(i) of title 39.
            ``(iv) The Office shall review the determination of the 
        normal-cost percentage for employees of the United States 
        Postal Service and make such adjustments as the Office 
        determines are necessary--
                    ``(I) upon request of the United States Postal 
                Service, but no more frequently than once each fiscal 
                year; and
                    ``(II) at any additional times, as the Office 
                considers appropriate.''.
            (2) Initial determination.--Not later than 180 days after 
        the date on which the Office receives the appropriate data or 
        projections from the Postal Service under clause (ii) of 
        section 8423(a)(5)(B) of title 5, United States Code, as added 
        by paragraph (1), the Office shall determine the normal-cost 
        percentage for employees of the Postal Service in accordance 
        with the requirements under such section 8423(a)(5)(B).
            (3) Applicability.--On and after the date on which the 
        Office determines the normal-cost percentage under paragraph 
        (2), the contributions of the Postal Service to the Civil 
        Service Retirement and Disability Fund relating to employees 
        covered under chapter 84 of title 5, United States Code, shall 
        be determined in accordance with paragraph (5) of section 
        8423(a) of title 5, United States Code, as added by paragraph 
        (1).
    (b) Postal Funding Surplus or Liability.--
            (1) Treatment of postal funding surplus.--Section 8423(b) 
        of title 5, United States Code, is amended--
                    (A) by redesignating paragraph (5) as paragraph 
                (6); and
                    (B) by inserting after paragraph (4) the following:
            ``(5)(A) In this paragraph, the term `postal funding 
        surplus' means the amount by which the amount of supplemental 
        liability computed under paragraph (1)(B) is less than zero.
            ``(B) After the date on which the Office determines under 
        paragraph (7)(C) the amount of supplemental liability computed 
        under paragraph (1)(B) as of the close of the fiscal year 
        ending on September 30, 2013, not later than the date on which 
        the Postmaster General makes a request under subparagraph (C) 
        of this paragraph, and if the amount determined under paragraph 
        (7)(C) is less than zero, the Postmaster General may request 
        that some or all of the amount of the postal funding surplus, 
        not to exceed $6,000,000,000, be returned to the United States 
        Postal Service, and not later than 10 days after the request, 
        the Director shall transfer to the United States Postal Service 
        from the Fund an amount equal to the portion of the postal 
        funding surplus requested, for use in accordance with 
        subparagraph (E)(i).
            ``(C)(i) Subject to clause (ii), after the date on which 
        the Office computes the amount of supplemental liability under 
        paragraph (1)(B) as of the close of the fiscal year ending on 
        September 30, 2014, and if such amount is less than zero, the 
        Postmaster General may request that some of the amount of the 
        postal funding surplus, not to exceed \2/3\ of the amount, be 
        returned to the United States Postal Service, and not later 
        than 10 days after the request, the Director shall transfer to 
        the United States Postal Service from the Fund an amount equal 
        to the portion of the postal funding surplus requested, for use 
        in accordance with subparagraph (E)(ii).
            ``(ii) If any amount requested by the Postmaster General 
        under subparagraph (B) is not transferred from the Fund as of 
        the close of the fiscal year ending on September 30, 2014, for 
        purposes of this subparagraph, the Office shall recompute the 
        amount of supplemental liability computed under paragraph 
        (1)(B) as of the close of that fiscal year by subtracting from 
        the balance of the Fund the amount requested under subparagraph 
        (B) of this paragraph.
            ``(D) If the amount of supplemental liability computed 
        under paragraph (1)(B) as of the close of any fiscal year 
        commencing after September 30, 2014, is less than zero, the 
        Office shall establish an amortization schedule, including a 
        series of equal annual installments that--
                    ``(i) provide for the liquidation of the postal 
                funding surplus in 40 years, commencing on September 30 
                of the subsequent fiscal year; and
                    ``(ii) shall be transferred to the United States 
                Postal Service from the Fund for use in accordance with 
                subparagraph (E)(ii).
            ``(E)(i) The United States Postal Service may use an amount 
        transferred under subparagraph (B) only for the purpose of 
        repaying any obligation issued under section 2005(a) of title 
        39.
            ``(ii) The United States Postal Service may use an amount 
        transferred under subparagraph (C) or (D) only--
                    ``(I) by directing that some or all of the amount 
                be transferred to the Postal Service Retiree Health 
                Benefits Fund for the purpose of reducing any Postal 
                Service actuarial liability referred to under section 
                8909a;
                    ``(II) by directing that some or all of the amount 
                be transferred to the Civil Service Retirement and 
                Disability Fund for the purpose of reducing any 
                supplemental liability under section 8348(h);
                    ``(III) by directing that some or all of the amount 
                be transferred to the Civil Service Retirement and 
                Disability Fund for the purpose of reducing any 
                supplemental liability under section 8423(b)(1)(B);
                    ``(IV) by directing that some or all of the amount 
                be transferred to the Postal Service Workers' 
                Compensation Accrued Liability Fund for the purpose of 
                reducing any Postal Service actuarial liability under 
                section 2012 of title 39; or
                    ``(V) as described in clause (i), if none of the 
                liabilities referred to in subclause (I), (II), (III), 
                or (IV) remain unpaid.''.
            (2) Supplemental liability calculation.--
                    (A) FERS.--Section 8423(b) of title 5, United 
                States Code, as amended by paragraph (1) of this 
                subsection, is amended--
                            (i) in paragraph (6), as so redesignated, 
                        in the matter preceding subparagraph (A), by 
                        striking ``For the purpose'' and inserting 
                        ``Subject to paragraph (7), for the purpose''; 
                        and
                            (ii) by adding at the end the following:
            ``(7)(A) For the purpose of carrying out paragraph (1)(B) 
        with respect to the fiscal year ending September 30, 2013, and 
        each fiscal year thereafter, the Office shall, consistent with 
        subsection (a)(5)(B), use--
                    ``(i) demographic factors specific to current and 
                former employees of the United States Postal Service; 
                and
                    ``(ii) appropriate economic assumptions, as 
                determined by the Office, regarding wage and salary 
                trends specific to current employees of the United 
                States Postal Service.
            ``(B) The United States Postal Service shall provide any 
        data or projections the Office requires in order to carry out 
        paragraph (1)(B) consistent with subparagraph (A) of this 
        paragraph.
            ``(C) Not later than 180 days after the later of the date 
        on which the Office receives the appropriate data or 
        projections from the United States Postal Service under 
        subparagraph (B) or the date of enactment of the Postal Reform 
        Act of 2014, the Office shall determine or redetermine whether 
        there is a postal funding surplus (as defined in paragraph (5)) 
        or a supplemental liability described in paragraph (1)(B) (and 
        the amount thereof) as of the close of the fiscal year ending 
        on September 30, 2013, in accordance with the requirements 
        under subparagraph (A) of this paragraph.''.
                    (B) CSRS.--Section 8348(h) of title 5, United 
                States Code, is amended--
                            (i) in paragraph (2), by striking 
                        subparagraph (B) and inserting the following:
    ``(B)(i)(I) Not later than the date on which the Office determines 
the normal-cost percentage under section 101(a)(2) of the Postal Reform 
Act of 2014, the Office shall redetermine the Postal surplus or 
supplemental liability as of the close of the fiscal year ending on 
September 30, 2013, in accordance with the requirements under paragraph 
(4).
    ``(II) If the result of the redetermination under subclause (I) is 
a surplus, that amount shall remain in the Fund until distribution is 
authorized under subparagraph (C).
    ``(III) If the result of the redetermination under subclause (I) is 
a supplemental liability, the Office shall establish an amortization 
schedule, including a series of annual installments commencing on 
September 30, 2015, which provides for the liquidation of such 
liability by September 30, 2054.
    ``(ii)(I) The Office shall redetermine the Postal surplus or 
supplemental liability as of the close of each fiscal year beginning 
after September 30, 2013, in accordance with the requirements under 
paragraph (4).
    ``(II) If the result of the redetermination under subclause (I) is 
a surplus, that amount shall remain in the Fund until distribution is 
authorized under subparagraph (C).
    ``(III) On and after June 15, 2015, if the result of the 
redetermination under subclause (I) is a supplemental liability, the 
Office shall establish an amortization schedule, including a series of 
annual installments commencing on September 30 of the subsequent fiscal 
year, which provides for the liquidation of such liability by September 
30, 2054.''; and
                            (ii) by adding at the end the following:
    ``(4)(A) For the purpose of carrying out paragraphs (1) and (2), 
the Office shall, consistent with section 8423(a)(5)(B), use--
            ``(i) demographic factors specific to current and former 
        employees of the United States Postal Service; and
            ``(ii) appropriate economic assumptions, as determined by 
        the Office, regarding wage and salary trends specific to the 
        employees.
    ``(B) The United States Postal Service shall provide any data or 
projections the Office requires in order to carry out paragraphs (1) 
and (2) consistent with subparagraph (A) of this paragraph.''.

SEC. 102. POSTAL SERVICE AUTHORITY TO NEGOTIATE RETIREMENT BENEFIT 
              TERMS FOR NEW EMPLOYEES.

    (a) Authority to Negotiate Retirement Benefit Terms.--
            (1) Collective bargaining over certain retirement 
        benefits.--Section 1005 of title 39, United States Code, is 
        amended by adding at the end the following:
    ``(g)(1) In this subsection--
            ``(A) the term `collective bargaining agreement' means a 
        collective bargaining agreement between the Postal Service and 
        a bargaining representative recognized under section 1203 
        entered into after the date of enactment of the Postal Reform 
        Act of 2014;
            ``(B) the term `new employee' means an individual who 
        becomes an officer or employee of the Postal Service after the 
        date of enactment of the Postal Reform Act of 2014; and
            ``(C) the term `not eligible to receive FERS service 
        credit', with respect to an officer or employee of the Postal 
        Service, means that service by the officer or employee of the 
        Postal Service as an officer or employee of the Postal Service 
        shall not be creditable service for purposes of chapter 84 of 
        title 5.
    ``(2)(A) A collective bargaining agreement may provide, 
notwithstanding chapter 84 of title 5, that some or all new employees 
covered under the collective bargaining agreement shall be not eligible 
to receive FERS service credit for service performed during any pay 
period beginning after the effective date of the provision.
    ``(B) If a new employee is not eligible to receive FERS credit 
pursuant to a collective bargaining agreement, any subsequent service 
by the new employee as an officer or employee of the Postal Service 
shall not be creditable service for purposes of chapter 84 of title 5.
    ``(C) Subject to the requirements under this subsection, a 
collective bargaining agreement may include 1 or more additional 
retirement benefit plans for the benefit of some or all new employees 
covered under the collective bargaining agreement.
    ``(3)(A) A collective bargaining agreement may establish, with 
respect to some or all new employees covered under the collective 
bargaining agreement--
            ``(i) without regard to section 8422 of title 5--
                    ``(I) the amounts to be deducted and withheld from 
                the pay of the new employees for deposit in the 
                Treasury of the United States to the credit of the 
                Civil Service Retirement and Disability Fund; and
                    ``(II) the corresponding adjustment under section 
                8423(a)(5)(B)(iii) of title 5 to the amount of the 
                contributions to be made by the Postal Service to the 
                Fund; and
            ``(ii) for any retirement benefit plan established under 
        the collective bargaining agreement, the amounts to be deducted 
        and withheld from the pay of the new employees under the 
        retirement benefit plan for the benefit of the new employees.
    ``(B) Except as provided in paragraph (2)(B), a collective 
bargaining agreement may establish the amounts described in 
subparagraph (A)(i) with respect to some or all new employees who were 
covered under a previous collective bargaining agreement.
    ``(4)(A) A collective bargaining agreement among the Postal Service 
and all bargaining representatives recognized under section 1203 may 
establish, without regard to section 8432 of title 5, with respect to 
some or all new employees covered under the collective bargaining 
agreement, whether the Postal Service shall make contributions to the 
Thrift Savings Fund for the benefit of the new employees, and, if the 
Postal Service shall make such contributions, the amounts that the 
Postal Service shall contribute.
    ``(B) A collective bargaining agreement described in subparagraph 
(A) may not establish more than 1 option regarding the contributions by 
the Postal Service to the Thrift Savings Fund that will apply to some 
or all new employees covered under the agreement.
    ``(C) If a collective bargaining agreement described in 
subparagraph (A) is not in effect, and if the Postal Service or a 
bargaining representative requests that the Postal Service and all 
bargaining representatives commence collective bargaining to seek such 
an agreement, the procedures under section 1207(d) shall apply.
    ``(D) Except as provided in subparagraph (A), nothing in this 
subsection or in a provision of a collective bargaining agreement 
entered under this subsection shall affect the coverage of an officer 
or employee of the Postal Service under subchapter III of chapter 84 of 
title 5.''.
            (2) Applicability of laws relating to federal employees.--
        Section 1005 of title 39, United States Code, is amended--
                    (A) in subsection (d)(1), by striking ``Officers'' 
                and inserting ``Except as provided in subsection (g), 
                officers''; and
                    (B) in subsection (f), in the second sentence--
                            (i) by inserting ``84,'' before ``87,''; 
                        and
                            (ii) by striking ``this subsection.'' and 
                        inserting ``this subsection or subsection 
                        (g).''.
            (3) Ineligibility for automatic enrollment in thrift 
        savings plan.--Section 8432(b)(2)(D) of title 5, United States 
        Code, is amended--
                    (A) by striking ``clause (ii)'' and inserting 
                ``clauses (ii) and (iii)''; and
                    (B) by adding at the end following:
    ``(iii) An individual for whom a collective bargaining agreement 
authorized under section 1005(g)(4) of title 39 establishes whether the 
Postal Service shall make contributions to the Thrift Savings Fund for 
the benefit of the individual and the amount of the contributions shall 
not be an eligible individual for purposes of this paragraph.''.
    (b) Special Rules Relating to FERS Coverage for Covered Postal 
Employees.--
            (1) In general.--Subchapter II of chapter 84 of title 5, 
        United States Code, is amended by adding at the end the 
        following:
``Sec. 8426. Postal Service retirement
            ``(1) The application of sections 8422 and 8423 of this 
        title and subchapters III and VII of this chapter with respect 
        to an officer or employee of the Postal Service may be modified 
        as provided under section 1005(g) of title 39.''.
            (2) Technical and conforming amendments.--The table of 
        sections for subchapter II of chapter 84 of title 5, United 
        States Code, is amended by adding at the end the following:

``8426. Postal Service retirement.''.

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

    (a) Contributions.--Section 8906(g)(2)(A) of title 5, United States 
Code, is amended by striking ``through September 30, 2016, be paid by 
the United States Postal Service, and thereafter shall'' and inserting 
``after the date of enactment of the Postal Reform Act of 2014''.
    (b) Postal Service Retiree Health Benefits Fund.--Section 8909a of 
title 5, United States Code, is amended--
            (1) in subsection (d)--
                    (A) by striking paragraph (2) and inserting the 
                following:
    ``(2)(A) Not later than June 30, 2016, the Office shall compute, 
and by June 30 of each succeeding year, the Office shall recompute, a 
schedule including a series of annual installments which provide for 
the liquidation of the amount described under subparagraph (B) 
(regardless of whether the amount is a liability or surplus) by 
September 30, 2055, or within 15 years, whichever is later, including 
interest at the rate used in the computations under this subsection.
    ``(B) The amount described in this subparagraph is the amount, as 
of the date on which the applicable computation or recomputation under 
subparagraph (A) is made, that is equal to the difference between--
            ``(i) 80 percent of the Postal Service actuarial liability 
        as of September 30 of the preceding fiscal year; and
            ``(ii) the value of the assets of the Postal Retiree Health 
        Benefits Fund as of September 30 of the preceding fiscal 
        year.'';
                    (B) in paragraph (3)--
                            (i) in subparagraph (A)--
                                    (I) in clause (iii), by adding 
                                ``and'' at the end;
                                    (II) in clause (iv), by striking 
                                the semicolon at the end and inserting 
                                a period; and
                                    (III) by striking clauses (v) 
                                through (x); and
                            (ii) in subparagraph (B)--
                                    (I) in the matter preceding clause 
                                (i), by striking ``2017'' and inserting 
                                ``2016''; and
                                    (II) in clause (ii), by striking 
                                ``paragraph (2)(B).'' and inserting 
                                ``paragraph (2).'';
                    (C) by amending paragraph (4) to read as follows:
    ``(4) Computations under this subsection shall be based on--
            ``(A) economic and actuarial methods and assumptions 
        consistent with the methods and assumptions used in determining 
        the Postal surplus or supplemental liability under section 
        8348(h); and
            ``(B) any other methods and assumptions, including a health 
        care cost trend rate, that the Director of the Office 
        determines to be appropriate.''; and
                    (D) by adding at the end the following:
    ``(7) In this subsection, the term `Postal Service actuarial 
liability' means the difference between--
            ``(A) the net present value of future payments required 
        under section 8906(g)(2)(A) for current and future United 
        States Postal Service annuitants; and
            ``(B) the net present value as computed under paragraph (1) 
        attributable to the future service of United States Postal 
        Service employees.''; and
            (2) by adding at the end the following:
    ``(e) Subsections (a) through (d) of this section shall be subject 
to section 104 of the Postal Reform Act of 2014.''.
    (c) Cancellation of Certain Unpaid Obligations of the Postal 
Service.--Any obligation of the Postal Service under section 
8909a(d)(3)(A) of title 5, United States Code, as in effect on the day 
before the date of enactment of this Act, that remains unpaid as of 
such date of enactment is cancelled.
    (d) Technical and Conforming Amendment.--The heading of section 
8909a of title 5, United States Code, is amended by striking 
``Benefit'' and inserting ``Benefits''.

SEC. 104. POSTAL SERVICE HEALTH BENEFITS PROGRAM.

    (a) Establishment.--
            (1) In general.--Chapter 89 of title 5, United States Code, 
        is amended by inserting after section 8903b the following:
``Sec. 8903c. Postal Service Health Benefits Program
    ``(a) Definitions.--In this section--
            ``(1) the term `initial participating carrier' means a 
        carrier that enters into a contract with the Office to 
        participate in the Postal Service Health Benefits Program 
        during the contract year beginning in January 2016;
            ``(2) the term `Medicare eligible individual' means an 
        individual who--
                    ``(A) is entitled to Medicare part A, but excluding 
                an individual who is eligible to enroll under such part 
                under section 1818 of the Social Security Act (42 
                U.S.C. 1395i-2); and
                    ``(B) is eligible to enroll in Medicare part B;
            ``(3) the term `Medicare part A' means the Medicare program 
        for hospital insurance benefits under part A of title XVIII of 
        the Social Security Act (42 U.S.C. 1395c et seq.);
            ``(4) the term `Medicare part B' means the Medicare program 
        for supplementary medical insurance benefits under part B of 
        title XVIII of the Social Security Act (42 U.S.C. 1395j et 
        seq.);
            ``(5) the term `Medicare part D' means the Medicare 
        insurance program established under part D of title XVIII of 
        the Social Security Act (42 U.S.C. 1395w-101 et seq.);
            ``(6) the term `Office' means the Office of Personnel 
        Management;
            ``(7) the term `Postal Service' means the United States 
        Postal Service;
            ``(8) the term `Postal Service annuitant' means an 
        annuitant enrolled in a health benefits plan under this chapter 
        whose Government contribution is paid by the Postal Service or 
        the Postal Service Retiree Health Benefits Fund under section 
        8906(g)(2);
            ``(9) the term `Postal Service employee' means an employee 
        of the Postal Service enrolled in a health benefits plan under 
        this chapter;
            ``(10) the term `Postal Service Health Benefits Program' 
        means the program of health benefits plans established under 
        subsection (c);
            ``(11) the term `Postal Service Medicare eligible 
        annuitant' means an individual who--
                    ``(A) is a Postal Service annuitant; and
                    ``(B) is a Medicare eligible individual;
            ``(12) the term `PSHBP plan' means a health benefits plan 
        offered under the Postal Service Health Benefits Program; and
            ``(13) the term `qualified carrier' means a carrier for 
        which the total enrollment in the plans provided under this 
        chapter includes, in the contract year beginning in January 
        2015, 5,000 or more enrollees who are--
                    ``(A) Postal Service employees; or
                    ``(B) Postal Service annuitants.
    ``(b) Application of Section.--The requirements under this section 
shall--
            ``(1) apply to the contract year beginning in January 2016, 
        and each contract year thereafter; and
            ``(2) supersede other provisions of this chapter to the 
        extent of any specific inconsistency, as determined by the 
        Office.
    ``(c) Establishment of the Postal Service Health Benefits 
Program.--
            ``(1) In general.--The Office shall establish the Postal 
        Service Health Benefits Program, which shall--
                    ``(A) consist of health benefit plans offered under 
                this chapter;
                    ``(B) include plans offered by--
                            ``(i) each qualified carrier; and
                            ``(ii) any other carrier determined 
                        appropriate by the Office;
                    ``(C) be available for participation by all Postal 
                Service employees, in accordance with subsection (d);
                    ``(D) be available for participation by all Postal 
                Service annuitants, in accordance with subsection (d);
                    ``(E) not be available for participation by an 
                individual who is not a Postal Service employee or 
                Postal Service annuitant (except as a family member of 
                such an employee or annuitant); and
                    ``(F) be implemented and administered by the 
                Office.
            ``(2) Separate postal service risk pool.--The Office shall 
        ensure that each PSHBP plan includes rates, one for enrollment 
        as an individual, one for enrollment for self plus one, and one 
        for enrollment for self and family within each option in the 
        PSHBP plan, that reasonably and equitably reflect the cost of 
        benefits provided to a risk pool consisting solely of Postal 
        Service employees and Postal Service annuitants (and family 
        members of such employees and annuitants), taking into specific 
        account the reduction in benefits cost for the PSHBP plan due 
        to the Medicare enrollment requirements under subsection (e) 
        and any savings or subsidies resulting from subsection (f).
            ``(3) Actuarially equivalent coverage.--The Office shall 
        ensure that each carrier participating in the Postal Service 
        Health Benefits Program provides coverage under the PSHBP plans 
        offered by the carrier that is actuarially equivalent, as 
        determined by the Director of the Office, to the coverage that 
        the carrier provides under the health benefits plans offered by 
        the carrier under the Federal Employee Health Benefits Program 
        that are not PSHBP plans.
    ``(d) Election of Coverage.--
            ``(1) In general.--Except as provided in paragraphs (2) and 
        (3), each Postal Service employee and Postal Service annuitant 
        who elects to receive health benefits coverage under this 
        chapter--
                    ``(A) shall be subject to the requirements under 
                this section; and
                    ``(B) may only enroll in a PSHBP plan.
            ``(2) Annuitants.--A Postal Service annuitant shall not be 
        subject to this section if the Postal Service annuitant--
                    ``(A) is enrolled in a health benefits plan under 
                this chapter for the contract year beginning in January 
                2015 that is not a health benefits plan offered by an 
                initial participating carrier, unless the Postal 
                Service annuitant voluntarily enrolls in a PSHBP plan; 
                or
                    ``(B) resides in a geographic area for which there 
                is not a PSHBP plan in which the Postal Service 
                annuitant may enroll.
            ``(3) Employees.--A Postal Service employee who is enrolled 
        in a health benefits plan under this chapter for the contract 
        year beginning in January 2015 that is not a health benefits 
        plan offered by an initial participating carrier shall not be 
        subject to the requirements under this section, except that--
                    ``(A) if the Postal Service employee changes 
                enrollment to a different health benefits plan under 
                this chapter after the start of the contract year 
                beginning in January 2016, the Postal Service employee 
                may only enroll in a PSHBP plan; and
                    ``(B) upon becoming a Postal Service annuitant, if 
                the Postal Service employee elects to continue coverage 
                under this chapter, the Postal Service employee shall 
                enroll in a PSHBP plan during the open season that is--
                            ``(i) being held when the Postal Service 
                        employee becomes a Postal Service annuitant; or
                            ``(ii) if the date on which the Postal 
                        Service employee becomes a Postal Service 
                        annuitant falls outside of an open season, the 
                        first open season following that date.
    ``(e) Requirement of Medicare Enrollment.--
            ``(1) Postal service medicare eligible annuitants.--A 
        Postal Service Medicare eligible annuitant subject to this 
        section may not continue coverage under the Postal Service 
        Health Benefits Program unless the Postal Service Medicare 
        eligible annuitant enrolls in Medicare part A, Medicare part B, 
        and Medicare part D (as part of a prescription drug plan 
        described in subsection (f)).
            ``(2) Medicare eligible family members.--If a family member 
        of a Postal Service annuitant who is subject to this section is 
        a Medicare eligible individual, the family member may not be 
        covered under the Postal Service Health Benefits Program as a 
        family member of the Postal Service annuitant unless the family 
        member enrolls in Medicare part A, Medicare part B, and 
        Medicare part D (as part of a prescription drug plan described 
        in subsection (f)).
    ``(f) Medicare Part D Prescription Drug Benefits.--The Office shall 
require each PSHBP plan to provide prescription drug benefits for 
Postal Service annuitants and family members who are eligible for 
Medicare part D through a prescription drug plan offered under a waiver 
under section 1860D-22 of the Social Security Act (42 U.S.C. 1395w-
132).
    ``(g) Postal Service Contribution.--
            ``(1) In general.--Subject to subsection (i), for purposes 
        of applying section 8906(b) to the Postal Service, the weighted 
        average shall be calculated in accordance with paragraph (2).
            ``(2) Weighted average calculation.--Not later than October 
        1 of each year, the Office shall determine the weighted average 
        of the rates established pursuant to subsection (c)(2) for 
        PSHBP plans that will be in effect during the following 
        contract year with respect to--
                    ``(A) enrollments for self only;
                    ``(B) enrollments for self plus one; and
                    ``(C) enrollments for self and family.
    ``(h) Reserves.--
            ``(1) Separate reserves.--
                    ``(A) In general.--The Office shall ensure that 
                each PSHBP plan maintains separate reserves (including 
                a separate contingency reserve) with respect to the 
                enrollees in the PSHBP plan in accordance with section 
                8909.
                    ``(B) References.--For purposes of the Postal 
                Service Health Benefits Program, each reference to `the 
                Government' in section 8909 shall be deemed to be a 
                reference to the Postal Service.
                    ``(C) Amounts to be credited.--The reserves 
                (including the separate contingency reserve) maintained 
                by each PSHBP plan shall be credited with a 
                proportionate amount of the funds in the existing 
                reserves for health benefits plans offered by an 
                initial participating carrier.
            ``(2) Discontinuation of pshbp plan.--In applying section 
        8909(e) relating to a PSHBP plan that is discontinued, the 
        Office shall credit the separate Postal Service contingency 
        reserve maintained under paragraph (1) for that plan only to 
        the separate Postal Service contingency reserves of the PSHBP 
        plans continuing under this chapter.
    ``(i) No Effect on Existing Law.--Nothing in this section shall be 
construed as affecting section 1005(f) of title 39 regarding 
variations, additions, or substitutions to the provisions of this 
chapter.''.
            (2) Technical and conforming amendments.--
                    (A) Section 8903(1) of title 5, United States Code, 
                is amended by striking ``two levels of benefits'' and 
                inserting ``2 levels of benefits for enrollees under 
                this chapter generally and 2 levels of benefits for 
                enrollees under the Postal Service Health Benefits 
                Program established under section 8903c''.
                    (B) The table of sections for chapter 89 of title 
                5, United States Code, is amended by inserting after 
                the item relating to section 8903b the following:

``8903c. Postal Service Health Benefits Program.''.
    (b) Special Enrollment Period for Postal Service Medicare Eligible 
Annuitants and Medicare Eligible Family Members of Postal Service 
Annuitants.--
            (1) Special enrollment period.--Section 1837 of the Social 
        Security Act (42 U.S.C. 1395p) is amended by adding at the end 
        the following new subsection:
    ``(m)(1)(A) In the case of any individual who is subject to the 
enrollment requirement of section 8903c(e) of title 5, United States 
Code, who has elected not to enroll (or to be deemed enrolled) during 
the individual's initial enrollment period, there shall be a special 
enrollment period described in subparagraph (B).
    ``(B) The special enrollment period described in this subparagraph 
is the 6-month period, beginning on August 1, 2015 and ending on 
January 31, 2016.
    ``(2)(A) In the case of any individual who--
            ``(i) was initially not subject to the enrollment 
        requirement of section 8903c(e) of title 5, United States Code;
            ``(ii) is eligible to enroll in a plan under chapter 89 of 
        title 5, United States Code, because of an involuntary loss of 
        health care coverage;
            ``(iii) upon the involuntary loss of health care coverage, 
        becomes subject to the enrollment requirement of section 
        8903c(e) of title 5, United States Code, because of enrollment 
        in a PSHBP plan; and
            ``(iv) has elected not to enroll (or to be deemed enrolled) 
        during the individual's initial enrollment period,
there shall be a special enrollment period described in subparagraph 
(B).
    ``(B) The special enrollment period described in this subparagraph 
is the period of time equivalent to the period of time in which the 
individual has the ability to enroll in a PSHBP plan due to the 
involuntary loss of health care coverage, pursuant to chapter 89 of 
title 5, United States Code, and its implementing regulations.
    ``(C) For purposes of this subsection, the term `PSHBP plan' has 
the meaning under section 8903c(a) of title 5, United States Code.
    ``(3) In the case of an individual who enrolls during the special 
enrollment period provided under paragraphs (1) and (2), the coverage 
period under this part shall begin on the first day of the month in 
which the individual enrolls.''.
            (2) Waiver of increase of premium.--Section 1839(b) of the 
        Social Security Act (42 U.S.C. 1395r(b)) is amended by striking 
        ``(i)(4) or (l)'' and inserting ``(i)(4), (l), or (m)''.

SEC. 105. LABOR DISPUTES.

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

SEC. 106. PREFUNDING AND FINANCIAL REPORTING WITH RESPECT TO WORKERS' 
              COMPENSATION LIABILITY.

    (a) Financial Provisions Relating to Workers' Compensation 
Liability.--
            (1) In general.--Chapter 20 of title 39, United States 
        Code, is amended by adding at the end the following:
``Sec. 2012. Provisions relating to workers' compensation prefunding
    ``(a) Definitions.--
            ``(1) In general.--In this section--
                    ``(A) the term `adjusted net income', except as 
                provided in paragraph (2), means the net income (or 
                loss) reported by the Postal Service in the statement 
                of operations included in the annual report required 
                under section 3654(a)(1)(B);
                    ``(B) the term `Fund' means the Postal Service 
                Workers' Compensation Accrued Liability Fund 
                established under subsection (b); and
                    ``(C) the term `Postal Service actuarial liability' 
                means, as of September 30 of a fiscal year, the net 
                present value of projected future payments required to 
                be made by the Postal Service under section 8147 of 
                title 5 (including any payments required to be made 
                from the Fund under subsection (f) of this section) on 
                account of injuries or deaths that occurred during that 
                fiscal year or any preceding fiscal year.
            ``(2) Calculation of adjusted net income.--In calculating 
        adjusted net income for a fiscal year--
                    ``(A) any payment made under subsection (e) shall 
                not be taken into account; and
                    ``(B) any change in the net present value of 
                projected future payments required to be made by the 
                Postal Service under section 8147 of title 5 shall not 
                be taken into account.
    ``(b) Establishment.--There is established in the Treasury of the 
United States a revolving fund, to be called the Postal Service 
Workers' Compensation Accrued Liability Fund.
    ``(c) Availability.--The Fund shall be available without fiscal 
year limitation for payments required under subsection (f).
    ``(d) Investment.--
            ``(1) In general.--The Secretary of the Treasury shall 
        immediately invest, in interest-bearing securities of the 
        United States, such currently available portions of the Fund as 
        are not immediately required for payments from the Fund.
            ``(2) Manner of investments.--Investments under paragraph 
        (1) shall be made in the same manner as investments for the 
        Civil Service Retirement and Disability Fund under section 8348 
        of title 5.
    ``(e) Payments to Fund.--
            ``(1) Cost attributable to 1 year of employees' service.--
        Not later than June 30, 2017, and not later than June 30 of 
        each year thereafter, the Postal Service shall compute--
                    ``(A) with respect to each of the 3 preceding 
                fiscal years, the net present value, as of September 30 
                of the fiscal year, of projected future payments 
                required to be paid by the Postal Service under section 
                8147 of title 5 on account of injuries or deaths that 
                occurred during the fiscal year;
                    ``(B) for each of the 3 amounts computed under 
                subparagraph (A), the sum of--
                            ``(i) the amount; and
                            ``(ii) accrued interest on the amount 
                        through September 30 of the preceding fiscal 
                        year; and
                    ``(C) the average of the 3 sums computed under 
                subparagraph (B).
            ``(2) Liquidation schedule.--
                    ``(A) Computation; recomputation.--Not later than 
                June 30, 2017, the Postal Service shall compute, and 
                not later than June 30 of each year thereafter the 
                Postal Service shall recompute, a schedule including a 
                series of annual installments that provide for the 
                liquidation of the amount described in subparagraph (B) 
                (regardless of whether the amount is a liability or 
                surplus), including interest at the rate used in the 
                computations under paragraph (1), by the later of--
                            ``(i) September 30, 2057; or
                            ``(ii) September 30 of the fiscal year that 
                        is 15 years after the fiscal year in which the 
                        computation or recomputation is made.
                    ``(B) Amount to be liquidated.--The amount 
                described in this subparagraph is the difference 
                between--
                            ``(i) the difference between--
                                    ``(I) 80 percent of the Postal 
                                Service actuarial liability as of 
                                September 30 of the preceding fiscal 
                                year; and
                                    ``(II) 80 percent of the amount 
                                computed under paragraph (1)(C) as of 
                                September 30 of the preceding fiscal 
                                year; and
                            ``(ii) the value of the assets of the Fund 
                        as of September 30 of the preceding fiscal 
                        year.
            ``(3) Liquidation of liability.--
                    ``(A) In general.--Subject to subparagraph (B), not 
                later than September 30, 2018, and not later than 
                September 30 of each year thereafter, the Postal 
                Service shall pay into the Fund the lesser of--
                            ``(i) the sum of--
                                    ``(I) 80 percent of the amount 
                                computed under paragraph (1)(C) during 
                                the fiscal year; and
                                    ``(II) any annual installment 
                                computed under paragraph (2)(A); and
                            ``(ii) the amount by which--
                                    ``(I) the amount of adjusted net 
                                income earned by the Postal Service 
                                during the fiscal year that ended 1 
                                year before the date by which a payment 
                                is required to be made under this 
                                subparagraph; exceeds
                                    ``(II) $1,000,000,000.
                    ``(B) Exception.--If the amount of adjusted net 
                income earned by the Postal Service during a fiscal 
                year does not exceed $1,000,000,000, the Postal Service 
                shall not be required to make a payment under this 
                paragraph during the subsequent fiscal year.
    ``(f) Payments From Fund.--
            ``(1) In general.--Beginning with the fiscal year ending on 
        September 30, 2018, for each payment that the Postal Service is 
        required to make under section 8147 of title 5 during the 
        fiscal year--
                    ``(A) a fraction of the amount of the payment shall 
                be paid from the Fund in accordance with paragraph (2) 
                of this subsection; and
                    ``(B) the remaining amount of the payment shall be 
                paid by the Postal Service.
            ``(2) Fraction.--The fraction to be paid from the Fund, as 
        required under paragraph (1), is, with respect to the fiscal 
        year during which the payment is required to be made, the 
        quotient of--
                    ``(A) the value of the assets of the Fund as of 
                September 30 of the preceding fiscal year; and
                    ``(B) the sum of--
                            ``(i) the Postal Service actuarial 
                        liability as of the end of the fiscal year 
                        before the preceding fiscal year, plus interest 
                        accrued on that amount through the end of the 
                        preceding fiscal year; and
                            ``(ii) the amount calculated under 
                        subsection (e)(1)(C) as of the end of the 
                        fiscal year before the preceding fiscal year, 
                        plus interest accrued on that amount through 
                        the end of the preceding fiscal year.
    ``(g) Assumptions and Methodology.--The assumptions and methodology 
used in the computations under this section shall be consistent, 
insofar as reasonable and appropriate, with the assumptions and 
methodology used by the Postal Service in making computations of its 
assets and liabilities for the financial reporting required under 
section 3654.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 20 of title 39, United States Code, is 
        amended by adding at the end the following:

``2012. Provisions relating to workers' compensation prefunding.''.
    (b) Additional Annual Financial Reporting.--
            (1) In general.--Section 3654(b) of title 39, United States 
        Code, is amended by adding at the end the following:
            ``(4)(A) Each report required by subsection (a)(1)(B) shall 
        include, with respect to the workers' compensation obligations 
        of the Postal Service--
                    ``(i) as of the last day of the fiscal year to 
                which the report applies, the amount of the Postal 
                Service actuarial liability;
                    ``(ii) the value of the assets in the Fund, and the 
                difference between that amount and the amount of the 
                Postal Service actuarial liability;
                    ``(iii) the amounts calculated under paragraphs (1) 
                and (2) of section 2012(e);
                    ``(iv) significant methods and assumptions 
                underlying the relevant actuarial valuations;
                    ``(v) any payments to the Fund and from the Fund 
                for the fiscal year to which the report applies; and
                    ``(vi) the assumed rate of return on balances of 
                the Fund and the actual rate of return for the fiscal 
                year to which the report applies.
            ``(B) In this paragraph, the terms `Fund' and `Postal 
        Service actuarial liability' have the meaning given those terms 
        in section 2012(a).''.
            (2) Applicability.--The amendment made by paragraph (1) 
        shall apply with respect to the report required under section 
        3654(a)(1)(B) of title 39, United States Code, for the fiscal 
        year ending on September 30, 2014, and to such report for each 
        fiscal year thereafter.

SEC. 107. RIGHT OF APPEAL TO MERIT SYSTEMS PROTECTION BOARD.

    Section 1005(a)(4)(A)(ii)(I) of title 39, United States Code, is 
amended to read as follows:
                    ``(I) is an officer or employee of the Postal 
                Service who--
                            ``(aa) is not represented by a bargaining 
                        representative recognized under section 1203; 
                        and
                            ``(bb) is in a supervisory, professional, 
                        technical, clerical, administrative, or 
                        managerial position covered by the Executive 
                        and Administrative Schedule; and''.

SEC. 108. SUPERVISORY AND OTHER MANAGERIAL ORGANIZATIONS.

    Section 1004 of title 39, United States Code, is amended--
            (1) in subsection (a), by inserting ``and fringe benefits'' 
        after ``differentials in rates of pay'';
            (2) in subsection (b), in the second sentence, by inserting 
        ``as provided under subsection (d) and any changes in, or 
        termination of, pay policies and schedules and fringe benefit 
        programs for members of the supervisors' organization as 
        provided under subsection (e). Such pay policies and fringe 
        benefit programs shall reflect adequate differentials in rates 
        of pay and fringe benefits as provided under subsection (a)'' 
        before the period; and
            (3) in subsection (e)(1), by inserting ``, or termination 
        of,'' after ``any changes in''.

                  TITLE II--POSTAL SERVICE OPERATIONS

SEC. 201. MAINTENANCE OF DELIVERY SERVICE STANDARDS.

    (a) Moratorium on Changes in Delivery Service Standards.--The 
Postal Service shall maintain the service standards for first-class 
mail and periodicals under part 121 of title 39, Code of Federal 
Regulations, as in effect on October 1, 2013, until the later of--
            (1) the date that is 2 years after the date of enactment of 
        this Act; or
            (2) the date that is 1 year after the date on which the 
        Comptroller General of the United States submits the report 
        required under subsection (b)(2).
    (b) GAO Study and Report.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct a study that assesses--
                    (A) how the Postal Service measures delivery times 
                for the purpose of determining whether service 
                standards have been met; and
                    (B) whether the method used by the Postal Service 
                to measure delivery times reflects the total period of 
                time beginning when a mailed item is transferred from a 
                postal customer and ending when the mailed item arrives 
                at its final destination.
            (2) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Comptroller General shall submit to 
        the Committee on Homeland Security and Governmental Affairs of 
        the Senate and the Committee on Oversight and Government Reform 
        of the House of Representatives a report on the findings of the 
        study conducted under paragraph (1) that includes 
        recommendations as to whether the Postal Service should use 
        additional or improved methods to--
                    (A) measure the actual delivery times experienced 
                by postal customers; and
                    (B) assess compliance with the service standards 
                promulgated under section 3691 of title 39, United 
                States Code.
            (3) Consultation.--In conducting the study under paragraph 
        (1), the Comptroller General shall consult with the Commission 
        to the extent appropriate.
    (c) Alternate Means of Transportation Contracts.--
            (1) Maintenance of delivery service standards.--
        Notwithstanding subsection (a), during the 2-year period 
        beginning on the date of enactment of this Act, the Postal 
        Service shall apply the service standards for first-class mail 
        and periodicals under part 121 of title 39, Code of Federal 
        Regulations, as in effect on June 30, 2012, to routes on which, 
        as of June 30, 2012, first-class mail and periodicals were 
        transported under Alternate Means of Transportation contracts 
        with the Postal Service.
            (2) Restriction on discontinuance of alternate means of 
        transportation contracts.--Section 404 of title 39, United 
        States Code, as amended by section 302, is amended by adding at 
        the end the following:
    ``(i) Alternative Means of Transportation Contracts.--
            ``(1) Definition.--In this subsection, the term `covered 
        route' means a route on which first-class mail and periodicals 
        are transported under an Alternate Means of Transportation 
        contract.
            ``(2) Requirements before changing to other means of 
        transportation.--The Postal Service, prior to making a 
        determination under subsection (a)(1) to transport first-class 
        mail or periodicals on a covered route using a means other than 
        under an Alternate Means of Transportation contract, shall 
        consider--
                    ``(A) the effect of the change on--
                            ``(i) each community served by the covered 
                        route;
                            ``(ii) businesses, including small 
                        businesses, in the area served by the covered 
                        route; and
                            ``(iii) employees of the Postal Service 
                        involved in transportation on the covered 
                        route;
                    ``(B) whether the change is consistent with the 
                policy of the Government, as stated in section 101(b), 
                that the Postal Service shall provide a maximum degree 
                of effective and regular postal services to rural 
                areas, communities, and small towns where post offices 
                are not self-sustaining;
                    ``(C) the extent to which each community served by 
                the covered route lacks access to Internet service;
                    ``(D) the extent to which postal customers served 
                by the covered route would continue after the change to 
                receive substantially similar access to essential items 
                and time-sensitive communications;
                    ``(E) whether substantial economic savings to the 
                Postal Service would result from the change;
                    ``(F) the average daily volume of mail transported 
                on the covered route;
                    ``(G) any change in the volume of mail transported 
                on the covered route during the preceding 12 months;
                    ``(H) the capacity of available transportation 
                service providers to meet the volume needs of the 
                Postal Service on the covered route;
                    ``(I) the ability of the Postal Service to procure 
                and access additional transportation capacity to meet 
                the volume needs of the Postal Service on the covered 
                route;
                    ``(J) the impact of the change on postal facilities 
                (as that term is defined in subsection (f)) that use 
                the covered route;
                    ``(K) the ability of postal facilities described in 
                subparagraph (J) to continue to provide service that 
                complies with applicable service standards after the 
                change; and
                    ``(L) any other factors that the Postal Service 
                determines are necessary.
            ``(3) Determinations.--Any determination of the Postal 
        Service to transport first-class mail or periodicals on a 
        covered route using a means other than under an Alternate Means 
        of Transportation contract shall--
                    ``(A) be in writing;
                    ``(B) include the findings of the Postal Service 
                with respect to the considerations required to be made 
                under paragraph (2); and
                    ``(C) be made available by public notice to persons 
                served by the covered route.
            ``(4) Advance notice of determinations.--The Postal Service 
        shall take no action to transport first-class mail or 
        periodicals on a covered route using a means other than under 
        an Alternate Means of Transportation contract until 60 days 
        after the date on which the Postal Service makes available to 
        persons served by the covered route a written determination 
        under paragraph (3).''.
            (3) Report.--Not later than 2 years after the date of 
        enactment of this Act, the Postal Service shall submit to 
        Congress a report on potential cost savings resulting from any 
        decision made during the 2-year period beginning on the date of 
        enactment of this Act--
                    (A) to transport first-class mail or periodicals on 
                a covered route (as defined in section 404(i)(1) of 
                title 39, United States Code, as added by this section) 
                using a means other than under an Alternate Means of 
                Transportation contract; or
                    (B) to discontinue a post office.

SEC. 202. PRESERVING MAIL PROCESSING CAPACITY; REVIEW OF 
              DISCONTINUANCES, CLOSINGS, AND CONSOLIDATIONS.

    (a) Moratorium on Closing or Consolidation of Postal Facilities.--
The Postal Service may not close or consolidate any postal facility (as 
that term is defined in section 404(f) of title 39, United States Code, 
as added by this section) that was open as of October 1, 2013 until the 
later of--
            (1) the date that is 2 years after the date of enactment of 
        this Act; or
            (2) the date that is 1 year after the date on which the 
        Comptroller General of the United States submits the report on 
        delivery service standards required under section 201(b)(2).
    (b) Procedures for Closing or Consolidation of Postal Facilities.--
Section 404 of title 39, United States Code, is amended by adding at 
the end the following:
    ``(f) Closing or Consolidation of Certain Postal Facilities.--
            ``(1) Definition.--In this subsection, the term `postal 
        facility' means a processing and distribution center, 
        processing and distribution facility, network distribution 
        center, or other facility that is operated by the Postal 
        Service, the primary function of which is to sort and process 
        mail.
            ``(2) Area mail processing studies.--
                    ``(A) Applicability.--In this paragraph--
                            ``(i) the term `area mail processing study' 
                        means an area mail processing feasibility study 
                        described in section 2-1 of Handbook PO-408 of 
                        the Postal Service, entitled `Area Mail 
                        Processing Guidelines', as in effect on October 
                        1, 2013;
                            ``(ii) the term `closing', with respect to 
                        a covered postal facility, means the transfer 
                        of all incoming and outgoing mail sortation and 
                        processing operations of the covered postal 
                        facility to a different covered postal 
                        facility;
                            ``(iii) the term `consolidate', with 
                        respect to a covered postal facility, means the 
                        transfer of either all incoming or all outgoing 
                        mail sortation and processing operations of the 
                        covered postal facility to a different covered 
                        postal facility; and
                            ``(iv) the term `covered postal facility' 
                        means a postal facility, the primary function 
                        of which is to sort and process first-class 
                        mail originating or designating within a 
                        defined geographic area.
                    ``(B) New area mail processing studies.--Before 
                making a determination under subsection (a)(3) as to 
                the necessity for the closing or consolidation of a 
                covered postal facility, the Postal Service shall--
                            ``(i) conduct an area mail processing study 
                        relating to the covered postal facility that 
                        includes consideration of a plan to reduce the 
                        capacity of the covered postal facility without 
                        closing the covered postal facility; and
                            ``(ii) upon completing the study under 
                        clause (i)--
                                    ``(I) publish the results of the 
                                study on the website of the Postal 
                                Service; and
                                    ``(II) publish a notice that the 
                                study is complete and the results of 
                                the study are available to the public, 
                                including on the website of the Postal 
                                Service.
                    ``(C) Completed or ongoing area mail processing 
                studies.--
                            ``(i) In general.--In the case of a covered 
                        postal facility described in clause (ii), the 
                        Postal Service shall--
                                    ``(I) consider a plan to reduce the 
                                capacity of the covered postal facility 
                                without closing the covered postal 
                                facility; and
                                    ``(II) publish the results of the 
                                consideration under subclause (I) with 
                                or as an amendment to the area mail 
                                processing study relating to the 
                                covered postal facility.
                            ``(ii) Postal facilities.--A covered postal 
                        facility described in this clause is a covered 
                        postal facility--
                                    ``(I) for which, as of the date of 
                                enactment of this subsection, an area 
                                mail processing study--
                                            ``(aa) has been completed 
                                        but does not include a plan to 
                                        reduce the capacity of the 
                                        covered postal facility without 
                                        closing the covered postal 
                                        facility; or
                                            ``(bb) is in progress; and
                                    ``(II) which, as of the date of 
                                enactment of this subsection, has not 
                                been closed or consolidated.
            ``(3) Notice, public comment, and public hearing.--If the 
        Postal Service makes a determination under subsection (a)(3) to 
        close or consolidate a postal facility, the Postal Service 
        shall--
                    ``(A) provide notice of the determination to--
                            ``(i) Congress; and
                            ``(ii) the Postal Regulatory Commission;
                    ``(B) provide adequate public notice of the 
                intention of the Postal Service to close or consolidate 
                the postal facility;
                    ``(C) ensure that interested persons have an 
                opportunity to submit public comments during a 45-day 
                period after the Postal Service provides the notice of 
                intention under subparagraph (B);
                    ``(D) before the 45-day period described in 
                subparagraph (C), provide public notice of the 
                opportunity under subparagraph (C) to submit public 
                comments during that period by--
                            ``(i) publication on the website of the 
                        Postal Service;
                            ``(ii) posting at the affected postal 
                        facility; and
                            ``(iii) publicizing the date and location 
                        of the public community meeting under 
                        subparagraph (E); and
                    ``(E) during the 45-day period described in 
                subparagraph (C), conduct a public meeting that 
                provides an opportunity for comments to be submitted 
                verbally or in writing.
            ``(4) Further considerations.--The Postal Service, in 
        making a determination under subsection (a)(3) to close or 
        consolidate a postal facility, shall consider--
                    ``(A) the views presented by interested persons 
                under paragraph (3);
                    ``(B) the effect of the closing or consolidation on 
                the affected community, including the impact the 
                closing or consolidation may have on a State, region, 
                or locality;
                    ``(C) the effect of the closing or consolidation on 
                the travel times and distances for affected customers 
                to access services under the proposed closing or 
                consolidation;
                    ``(D) the effect of the closing or consolidation on 
                delivery times for all classes of mail and packages;
                    ``(E) any characteristics of certain geographical 
                areas, such as remoteness, broadband internet 
                availability with a lower rates of access than the 
                average rate of access in other geographical areas of 
                the United States, and weather-related obstacles, that 
                may result in the closing or consolidation having a 
                unique effect;
                    ``(F) the effect of the closing or consolidation on 
                small businesses in the area, including shipping and 
                communications with customers and suppliers and the 
                corresponding impact on revenues, operations, and 
                growth;
                    ``(G) the extent to which significant changes in 
                delivery service resulting from the closure or 
                consolidation of the postal facility would affect the 
                ability of individuals and businesses in the region 
                served by the postal facility to participate in the 
                national economy;
                    ``(H) the ability of the Postal Service to maintain 
                a safe working environment at each postal facility 
                that, as a result of the closing or consolidation, 
                would process the mail that had been processed by the 
                closed or consolidated postal facility, including by 
                examining--
                            ``(i) the capacity of each affected postal 
                        facility to process a greater volume of mail;
                            ``(ii) the ability of the workforce at each 
                        affected postal facility to handle a larger 
                        workload; and
                            ``(iii) whether the Postal Service would 
                        need to hire additional employees at affected 
                        postal facilities to process the increased 
                        volume of mail;
                    ``(I) the extent to which the Postal Service can 
                take action to mitigate significant negative impacts 
                identified through the considerations under this 
                paragraph; and
                    ``(J) any other factor the Postal Service 
                determines is necessary.
            ``(5) Notice of final determination; justification 
        statement.--If the Postal Service determines to close or 
        consolidate a postal facility, the Postal Service shall post on 
        the website of the Postal Service--
                    ``(A) notice of the final determination to close or 
                consolidate the postal facility; and
                    ``(B) a closing or consolidation justification 
                statement that includes--
                            ``(i) a response to the public comments 
                        received with respect to the considerations 
                        described under paragraph (4);
                            ``(ii) a description of the considerations 
                        made by the Postal Service under paragraph (4); 
                        and
                            ``(iii) the actions that the Postal Service 
                        will take to mitigate any significant negative 
                        effects identified under paragraph (4).
            ``(6) Closing or consolidation of postal facilities.--
                    ``(A) In general.--Not earlier than 15 days after 
                the date on which the Postal Service posts notice of a 
                final determination and a justification statement under 
                paragraph (5) with respect to a postal facility, the 
                Postal Service may close or consolidate the postal 
                facility.
                    ``(B) Alternative intake of mail.--If the Postal 
                Service closes or consolidates a postal facility under 
                subparagraph (A), the Postal Service shall make 
                reasonable efforts to ensure continued mail receipt 
                from customers of the closed or consolidated postal 
                facility at the same location or at another appropriate 
                location in close geographic proximity to the closed or 
                consolidated postal facility.
            ``(7) Protection of certain information.--Nothing in this 
        subsection shall be construed to require the Postal Service to 
        disclose any--
                    ``(A) proprietary data;
                    ``(B) information relating to the security of a 
                postal facility; or
                    ``(C) information that is exempt from disclosure 
                under section 552 of title 5.
            ``(8) Postal regulatory commission appeals.--
                    ``(A) Right to appeal.--A determination of the 
                Postal Service to close or consolidate any postal 
                facility may be appealed by any person served by the 
                postal facility to the Postal Regulatory Commission not 
                later than 30 days after the date on which the 
                determination is posted on the Postal Service website 
                under paragraph (5).
                    ``(B) Review based on record.--The Commission shall 
                review a determination appealed under this paragraph on 
                the basis of the record before the Postal Service in 
                the making of the determination.
                    ``(C) Deadline for commission determination.--The 
                Commission shall make a determination based upon a 
                review conducted under subparagraph (B) not later than 
                90 days after the date on which the Commission receives 
                the appeal of the determination under subparagraph (A).
                    ``(D) Bases for setting aside postal service 
                determinations.--In making a determination under 
                subparagraph (C), the Commission shall set aside any 
                determination, finding, or conclusion of the Postal 
                Service that the Commission determines--
                            ``(i) is arbitrary, capricious, an abuse of 
                        discretion, or otherwise not in accordance with 
                        the law;
                            ``(ii) is without observance of the 
                        procedures required under this subsection or 
                        any other applicable law; or
                            ``(iii) is unsupported by substantial 
                        evidence on the record.
                    ``(E) Option to affirm or remand.--The Commission--
                            ``(i) may affirm a determination of the 
                        Postal Service appealed under this paragraph or 
                        order that the entire matter be returned for 
                        further consideration; and
                            ``(ii) may not modify the determination of 
                        the Postal Service.
                    ``(F) Temporary suspension.--The Commission may 
                suspend the effectiveness of a determination of the 
                Postal Service appealed under this paragraph until the 
                final disposition of the appeal.
                    ``(G) Applicability of other laws.--The provisions 
                of section 556, section 557, and chapter 7 of title 5 
                shall not apply to any review carried out by the 
                Commission under this paragraph.
                    ``(H) Date of receipt of appeal.--For purposes of 
                subparagraph (A), any appeal received by the Commission 
                shall--
                            ``(i) if sent to the Commission through the 
                        mails, be considered to have been received on 
                        the date of the Postal Service postmark on the 
                        envelope or other cover in which the appeal is 
                        mailed; or
                            ``(ii) if otherwise lawfully delivered to 
                        the Commission, be considered to have been 
                        received on the date determined based on any 
                        appropriate documentation or other indicia (as 
                        determined under regulations of the 
                        Commission).''.

SEC. 203. PRESERVING COMMUNITY POST OFFICES.

    Section 404(d) of title 39, United States Code, is amended--
            (1) by striking ``(6) For purposes of paragraph (5)'' and 
        inserting the following:
            ``(8) Date of receipt of appeals.--For purposes of 
        paragraph (7)'';
            (2) by striking ``(5) A determination'' and inserting the 
        following:
            ``(7) Appeals.--A determination'';
            (3) by striking ``(d)(1) The Postal Service'' and all that 
        follows through the end of paragraph (4) and inserting the 
        following:
    ``(d) Discontinuance of Post Offices.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `discontinuance' has the meaning 
                given the term in section 241.3 of title 39, Code of 
                Federal Regulations, as in effect on November 1, 2013;
                    ``(B) the term `local government' means--
                            ``(i) a county, municipality, city, town, 
                        township, local public authority, special 
                        district, intrastate district, council of 
                        government, or regional or interstate 
                        government entity;
                            ``(ii) an agency or instrumentality of an 
                        entity described in clause (i); or
                            ``(iii) a rural community, an 
                        unincorporated town or village, or an 
                        instrumentality of a rural community or an 
                        unincorporated town or village;
                    ``(C) the term `post office' means a post office, 
                post office branch, post office classified station, or 
                other facility that is operated by the Postal Service, 
                the primary function of which is to provide retail 
                postal services; and
                    ``(D) the term `rural post office' means a post 
                office that is--
                            ``(i) in a rural area, as defined by the 
                        Census Bureau; and
                            ``(ii) within the K or L cost ascertainment 
                        grouping, as classified by the Postal Service.
            ``(2) Preliminary considerations.--The Postal Service, 
        prior to making a determination under subsection (a)(3) of this 
        section as to the necessity for the discontinuance of any post 
        office, and, with respect to a determination to discontinue a 
        rural post office, prior to making the determinations required 
        under paragraph (5), shall--
                    ``(A) consider whether--
                            ``(i) to discontinue the post office and 
                        combine it with another post office located 
                        within a reasonable distance;
                            ``(ii) instead of discontinuing the post 
                        office--
                                    ``(I) to reduce the number of hours 
                                a day that the post office operates; or
                                    ``(II) to continue operating the 
                                post office for the same number of 
                                hours a day;
                            ``(iii) to procure a contract providing 
                        full, or less than full, retail postal services 
                        in the community served by the post office; or
                            ``(iv) to provide postal services to the 
                        community served by the post office--
                                    ``(I) through a letter carrier or 
                                by Alternate Means of Transportation 
                                delivery contract;
                                    ``(II) by colocating postal 
                                services at a commercial or government 
                                entity; or
                                    ``(III) by implementing an 
                                alternative proposal made by a local 
                                government under subparagraph (B)(iii);
                    ``(B) provide--
                            ``(i) relevant information on financial 
                        costs associated with the operations of the 
                        post office to postal customers and local 
                        governments served by the post office;
                            ``(ii) postal customers served by the post 
                        office an opportunity to present their views, 
                        which may be by nonbinding survey conducted by 
                        mail; and
                            ``(iii) local governments served by the 
                        post office an opportunity to present 
                        alternative proposals for providing postal 
                        services to the community; and
                    ``(C) if the Postal Service determines to 
                discontinue the post office, provide adequate public 
                notice of its intention to discontinue the post office 
                at least 60 days prior to the proposed date of the 
                discontinuance to persons and local governments served 
                by the post office.
            ``(3) Considerations.--The Postal Service, in making a 
        determination whether or not to discontinue a post office--
                    ``(A) shall consider--
                            ``(i) the effect of the discontinuance on 
                        the community served by the post office;
                            ``(ii) the effect of the discontinuance on 
                        businesses, including small businesses, in the 
                        area;
                            ``(iii) the effect of the discontinuance on 
                        employees of the Postal Service employed at the 
                        post office;
                            ``(iv) whether the discontinuance would 
                        have a significant adverse effect on regular 
                        postal services to rural areas, communities, 
                        and small towns where post offices are not 
                        self-sustaining;
                            ``(v) the extent to which the community 
                        served by the post office lacks access to 
                        Internet, broadband, or cellular telephone 
                        service;
                            ``(vi) the extent to which postal customers 
                        served by the post office would continue after 
                        the discontinuance to receive substantially 
                        similar access to essential items, such as 
                        prescription drugs and time-sensitive 
                        communications;
                            ``(vii) the proximity and accessibility of 
                        other post offices;
                            ``(viii) whether substantial economic 
                        savings to the Postal Service would result from 
                        the discontinuance; and
                            ``(ix) any other factors that the Postal 
                        Service determines are necessary; and
                    ``(B) may not consider compliance with any 
                provision of the Occupational Safety and Health Act of 
                1970 (29 U.S.C. 651 et seq.).
            ``(4) Written determination and findings.--
                    ``(A) In general.--Any determination of the Postal 
                Service to discontinue a post office shall--
                            ``(i) be in writing;
                            ``(ii) include the findings of the Postal 
                        Service with respect to the considerations 
                        required to be made under paragraph (3); and
                            ``(iii) with respect to a determination to 
                        discontinue a rural post office, include a 
                        summary of the determinations required under 
                        paragraph (5).
                    ``(B) Availability of findings.--The Postal Service 
                shall make available, to persons served by a post 
                office that the Postal Service determines to 
                discontinue, any determination and findings under 
                subparagraph (A) with respect to that post office.
                    ``(C) Notice before discontinuance.--The Postal 
                Service may not take any action to discontinue a post 
                office until 60 days after the date on which the Postal 
                Service makes available, to persons served by the post 
                office, the written determination and findings with 
                respect to the post office as required under 
                subparagraph (B).
            ``(5) Rural post offices.--
                    ``(A) Moratorium on discontinuance of rural post 
                offices.--The Postal Service may not discontinue a 
                rural post office during the 1-year period beginning on 
                the date of enactment of the Postal Reform Act of 2014.
                    ``(B) Requirements for discontinuance of rural post 
                offices.--The Postal Service may not make a 
                determination under subsection (a)(3) to discontinue a 
                rural post office unless the Postal Service--
                            ``(i)(I) determines that postal customers 
                        served by the post office would continue after 
                        the discontinuance to receive substantially 
                        similar access to essential items, such as 
                        prescription medications and time-sensitive 
                        communications, that are sent through the 
                        mails; or
                            ``(II) takes action to substantially 
                        ameliorate any projected reduction in access to 
                        essential items described in subclause (I); and
                            ``(ii) determines that--
                                    ``(I) there is unlikely to be 
                                substantial economic loss to the 
                                community served by the post office as 
                                a result of the discontinuance;
                                    ``(II) the area served by the post 
                                office has adequate access to broadband 
                                Internet service, as identified on the 
                                National Broadband Map of the National 
                                Telecommunications and Information 
                                Administration; and
                                    ``(III) there is a road with year-
                                round access connecting the community 
                                to another post office that is within 
                                10 miles from the post office proposed 
                                to be discontinued.
                    ``(C) Study and report.--
                            ``(i) Study.--The Inspector General shall 
                        conduct a study after the discontinuance of a 
                        rural post office under this section, which 
                        shall include--
                                    ``(I) the actual cost savings 
                                resulting from the discontinuance; and
                                    ``(II) a comparison between the 
                                findings described in subclause (I) and 
                                the cost savings that the Postal 
                                Service predicted would result from the 
                                discontinuance.
                            ``(ii) Report.--Not later than 2 years 
                        after the date of the discontinuance of a rural 
                        post office under this section, the Inspector 
                        General shall submit a report on the findings 
                        of the study conducted under clause (i) with 
                        respect to the rural post office to--
                                    ``(I) the Postal Regulatory 
                                Commission;
                                    ``(II) the Board of Governors;
                                    ``(III) the Committee on Homeland 
                                Security and Governmental Affairs of 
                                the Senate;
                                    ``(IV) the Committee on Oversight 
                                and Government Reform of the House of 
                                Representatives;
                                    ``(V) the Member of the House of 
                                Representatives in whose district the 
                                rural post office was located; and
                                    ``(VI) the Senators in whose State 
                                the rural post office was located.
                            ``(iii) Sunset.--This subparagraph is 
                        repealed effective 10 years after the date of 
                        enactment of the Postal Reform Act of 2014.
            ``(6) Reductions in hours of operation.--
                    ``(A) Considerations.--The Postal Service, prior to 
                making a determination under paragraph (2)(A)(ii)(I) to 
                reduce the number of hours per day that a post office 
                operates, shall consider--
                            ``(i) the impact of the proposed reduction 
                        in hours on local businesses;
                            ``(ii) the effect of the proposed reduction 
                        in hours on the community served by the post 
                        office;
                            ``(iii) the ability of the Postal Service 
                        to hire qualified employees to operate the post 
                        office during the reduced hours;
                            ``(iv) the proximity and accessibility of 
                        other post offices within 15 miles of the post 
                        office, and the hours those post offices are 
                        open;
                            ``(v) the impact of the proposed reduction 
                        in hours on the elderly and other vulnerable 
                        populations; and
                            ``(vi) the impact of alternative schedules 
                        on the community served by the post office, 
                        including consideration of which schedules 
                        would most effectively mitigate any negative 
                        impacts identified under clauses (i) through 
                        (v).
                    ``(B) Findings.--If the Postal Service determines, 
                after considering the factors under subparagraph (A), 
                to reduce the number of hours per day that a post 
                office operates, the Postal Service shall make 
                available to persons served by the post office--
                            ``(i) a summary of the findings of the 
                        Postal Service under subparagraph (A);
                            ``(ii) the hours during which the post 
                        office will be open; and
                            ``(iii) an explanation of the change in 
                        hours referred to in clause (ii).'';
            (4) in paragraph (7), as so designated--
                    (A) by striking ``close or consolidate'' and 
                inserting ``discontinue'';
                    (B) by striking ``under paragraph (3)'' and 
                inserting ``under paragraph (4)'';
                    (C) by moving subparagraphs (A), (B), and (C) 2 ems 
                to the right; and
                    (D) by moving the flush text following subparagraph 
                (C) 2 ems to the right;
            (5) in paragraph (8), as so designated, by moving 
        subparagraphs (A) and (B) 2 ems to the right; and
            (6) by adding at the end the following:
            ``(9) Minimum retail standards.--The Postal Service shall 
        establish minimum standards for retail postal services.''.

SEC. 204. CHANGES TO MAIL DELIVERY SCHEDULE.

    (a) Limitation on Change in Schedule.--
            (1) In general.--The Postal Service may establish a 
        general, nationwide delivery schedule of 5 days per week to 
        street addresses under the authority of the Postal Service 
        under title 39, United States Code--
                    (A) if the Postal Service determines that such a 
                delivery schedule would contribute to the achievement 
                of long-term solvency; and
                    (B) at any time after the total mail volume during 
                any period of 4 consecutive quarters, beginning with 
                the first full quarter after the date of enactment of 
                this Act, is less than 140,000,000,000 pieces, as 
                reported in the Form 10-Q quarterly reports filed by 
                the Postal Service with the Commission under section 
                3654(a)(1)(A) of title 39, United States Code.
            (2) Continuation of authority.--If each condition under 
        subsection (a)(1) is satisfied, the fact that total mail volume 
        during any period of 4 consecutive quarters, after the first 
        quarter of the period described in subsection (a)(1)(B), 
        exceeds 140,000,000,000 pieces shall not affect the continued 
        authority of the Postal Service to establish or maintain a 
        nationwide delivery schedule of 5 days per week.
            (3) Limitation.--Notwithstanding any other provision of 
        this subsection or subsection (d)(3), the Postal Service may 
        not establish a nationwide delivery schedule of 5 days per week 
        earlier than October 1, 2017.
    (b) Implementation.--If the Postal Service intends to establish a 
change in delivery schedule under subsection (a), the Postal Service 
shall--
            (1) identify customers and communities for whom the change 
        may have a disproportionate, negative impact, including small 
        business customers, the elderly, those who live in locations 
        without access to broadband Internet service, and the customers 
        identified as ``particularly affected'' in the Advisory Opinion 
        on Elimination of Saturday Delivery issued by the Commission on 
        March 24, 2011;
            (2) develop measures to ameliorate any disproportionately 
        negative impact the change would have on customers and 
        communities identified under paragraph (1);
            (3) implement measures to increase revenue and reduce 
        costs, including the measures authorized under this Act and the 
        amendments made by this Act;
            (4) evaluate whether any increase in revenue or reduction 
        in costs, or anticipated increase in revenue or reduction in 
        costs, resulting from the measures implemented under paragraph 
        (3) are sufficient to allow the Postal Service, without 
        implementing a change in delivery schedule under subsection 
        (a), to achieve long-term solvency; and
            (5) not earlier than 2 years and not later than 6 months 
        before the effective date for any proposed change, submit a 
        report that includes the determination required under 
        subsection (a)(1) and details any measures developed or 
        implemented pursuant to paragraph (2) or (3) of this subsection 
        to--
                    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (B) the Committee on Oversight and Government 
                Reform of the House of Representatives;
                    (C) the Commission; and
                    (D) the Comptroller General of the United States.
    (c) GAO Report.--Not later than 3 months after the date on which 
the Comptroller General receives the report submitted by the Postal 
Service under subsection (b)(5), the Comptroller General shall submit 
to the Postal Service, the Committee on Homeland Security and 
Governmental Affairs of the Senate, and the Committee on Oversight and 
Government Reform of the House of Representatives a report evaluating 
the extent to which--
            (1) a change in delivery schedule would improve the 
        financial condition of the Postal Service and assist in the 
        efforts of the Postal Service to achieve long-term solvency, 
        taking into consideration other ongoing and planned efforts to 
        increase revenue and reduce costs, consistent with the 
        requirements under this Act; and
            (2) the Postal Service has complied with each of the 
        requirements under subsection (b).
    (d) Postal Service Response to GAO Report.--
            (1) In general.--The Postal Service shall review the report 
        submitted by the Comptroller General under subsection (c) and 
        submit to the Committee on Homeland Security and Governmental 
        Affairs of the Senate and the Committee on Oversight and 
        Government Reform of the House of Representatives a response to 
        the report if the report includes a finding by the Comptroller 
        General that--
                    (A) the proposed change in delivery schedule would 
                not substantially improve the financial condition of 
                the Postal Service and assist in the efforts of the 
                Postal Service to achieve long-term solvency; or
                    (B) the Postal Service has not complied with each 
                of the requirements under subsection (b).
            (2) Contents of response.--A response by the Postal Service 
        under paragraph (1) shall include--
                    (A) a statement regarding whether the Postal 
                Service agrees with each finding of the Comptroller 
                General described in subparagraph (A) or (B) of 
                paragraph (1);
                    (B) a statement regarding whether the Postal 
                Service intends to reevaluate whether to establish a 
                change in delivery schedule under subsection (a) based 
                on the overall findings of the Comptroller General; and
                    (C) if the Postal Service intends to establish the 
                proposed change in delivery schedule, the justification 
                of the Postal Service for doing so in light of the 
                findings of the Comptroller General.
            (3) Prohibition on implementation of change in delivery 
        schedule.--The Postal Service may not implement a change in 
        delivery schedule under subsection (a) until 60 days after the 
        date on which the Postal Service submits the response required 
        under paragraph (2).
    (e) Rules of Construction.--Nothing in this section shall be 
construed to--
            (1) require the decrease or increase in delivery frequency 
        for any route for which the Postal Service provided delivery on 
        fewer than 6 days per week as of the date of enactment of this 
        Act;
            (2) require that the Postal Service deliver mail on Federal 
        holidays;
            (3) authorize any change in--
                    (A) the days and times that postal retail service 
                or any mail acceptance is available at postal retail 
                facilities or processing facilities; or
                    (B) the locations at which postal retail service or 
                mail acceptance occurs at postal retail facilities or 
                processing facilities;
            (4) require any change in the frequency of delivery to a 
        post office box;
            (5) prohibit the collection or delivery of a competitive 
        mail product on a weekend, a recognized Federal holiday, or any 
        other specific day of the week;
            (6) prohibit the Postal Service from exercising its 
        authority to make changes to processing or retail networks; or
            (7) confer a cause of action, either express or implied.
    (f) Packages.--Notwithstanding any other provision of this section, 
for a period of not less than 5 years, beginning on the date of 
enactment of this Act, the Postal Service shall provide package 
service--
            (1) 6 days per week to each street address that was 
        eligible to receive package service 6 days per week, and to 
        each new street address that is located in an area that was 
        eligible to receive package service 6 days per week, as of 
        October 1, 2013; and
            (2) 7 days per week to each street address for which the 
        Postal Service determines that such service provides an 
        economic benefit to the Postal Service.
    (g) Mailbox Access.--If the Postal Service establishes a general, 
nationwide delivery schedule of 5 days per week consistent with the 
provisions of this section, the Postal Service shall amend the Mailing 
Standards of the United States, Domestic Mail Manual to ensure that the 
provisions of section 508.3.2.10 of such manual, as in effect on 
October 1, 2013, shall apply on any day on which the Postal Service 
does not deliver the mail under the established delivery schedule.
    (h) Study of Environmental Impact of 5-day Delivery.--Not later 
than 180 days after the date of enactment of this Act, the Chief 
Sustainability Officer of the Postal Service shall--
            (1) conduct a study that assesses the environmental impact 
        of moving to a nationwide delivery schedule of 5 days per week, 
        which shall include the impact on green house gas emissions, 
        facility energy use, and transportation fuel use; and
            (2) publish the results of the study conducted under 
        paragraph (1) on the website of the Postal Service.

SEC. 205. DELIVERY POINT MODERNIZATION.

    (a) In General.--Subchapter VII of chapter 36 of title 39, United 
States Code, is amended by adding at the end the following:
``Sec. 3692. Delivery point modernization
    ``(a) Definitions.--In this section, the following definitions 
shall apply:
            ``(1) Centralized delivery.--The term `centralized 
        delivery' means a primary mode of mail delivery whereby mail is 
        delivered to a group or cluster of mail receptacles at a single 
        location.
            ``(2) Curbside delivery.--The term `curbside delivery' 
        means a primary mode of mail delivery whereby mail is delivered 
        to a mail receptacle that is situated at the edge of a public 
        sidewalk abutting a road or curb, at a road, or at a curb.
            ``(3) Delivery point.--The term `delivery point' means a 
        mailbox or other receptacle to which mail is delivered.
            ``(4) District office.--The term `district office' means 
        the central office of an administrative field unit with 
        responsibility for postal operations in a designated geographic 
        area (as defined under regulations, directives, or other 
        guidance of the Postal Service).
            ``(5) Door delivery.--The term `door delivery'--
                    ``(A) means a primary mode of mail delivery whereby 
                mail is--
                            ``(i) delivered to a mail receptacle at or 
                        near a postal customer's door; or
                            ``(ii) hand-delivered to a postal customer; 
                        and
                    ``(B) does not include curbside or centralized 
                delivery.
            ``(6) Primary mode of mail delivery.--The term `primary 
        mode of mail delivery' means the typical method by which the 
        Postal Service delivers mail to the delivery point of a postal 
        customer.
    ``(b) Policy.--Except as otherwise provided in this section, 
including paragraphs (4) and (5) of subsection (c), it shall be the 
policy of the Postal Service to use the primary mode of mail delivery 
that is most cost effective and is in the best long-term interest of 
the Postal Service.
    ``(c) Conversion to Other Delivery Modes.--
            ``(1) New addresses.--Except as provided in paragraphs (4) 
        and (5), the Postal Service shall provide centralized delivery 
        to new addresses established after the date of enactment of the 
        Postal Reform Act of 2014, or if centralized delivery is not 
        practicable shall provide curbside delivery.
            ``(2) Business address conversion.--The Postal Service 
        shall carry out a program to convert business addresses with 
        door delivery on the date of enactment of the Postal Reform Act 
        of 2014 to centralized delivery or to curbside delivery.
            ``(3) Residential address conversion.--
                    ``(A) Identification.--Not later than 9 months 
                after the date of enactment of the Postal Reform Act of 
                2014, the head of each district office of the Postal 
                Service shall identify residential addresses within the 
                service area of the district office that are 
                appropriate candidates for conversion from door 
                delivery to a more cost-effective primary mode of 
                delivery, in accordance with standards established by 
                the Postal Service.
                    ``(B) Voluntary conversion.--Not later than 1 year 
                after the date of enactment of the Postal Reform Act of 
                2014, and consistent with subsection (b) and paragraph 
                (4), the Postal Service shall begin implementation of a 
                program to convert, on a voluntary basis, the addresses 
                identified under subparagraph (A) from door delivery to 
                a more cost-effective primary mode of delivery.
                    ``(C) Procedures.--In pursuing conversion under 
                subparagraph (B), the Postal Service shall establish 
                procedures to--
                            ``(i) solicit and consider input from 
                        postal customers, State and local governments, 
                        local associations, and property owners; and
                            ``(ii) place centralized delivery points in 
                        locations that maximize delivery efficiency, 
                        ease of use for postal customers, and respect 
                        for private property rights.
            ``(4) Exceptions.--In establishing a primary mode of mail 
        delivery for new addresses under paragraph (1) or converting 
        the primary mode of mail delivery for an address under 
        paragraph (2) or (3), the Postal Service may provide door 
        delivery if--
                    ``(A) a physical barrier precludes the efficient 
                provision of centralized delivery or curbside delivery;
                    ``(B) the address is located in a registered 
                historic district, as that term is defined in section 
                47(c)(3)(B) of the Internal Revenue Code of 1986; or
                    ``(C) the Postal Service determines that the 
                provision of centralized delivery or curbside delivery 
                would be impractical, would not be cost effective, or 
                would not be in the best long-term interest of the 
                Postal Service.
            ``(5) Waiver for physical hardship.--
                    ``(A) In general.--The Postal Service shall 
                establish and maintain a waiver program under which, 
                upon the application of a postal customer, door 
                delivery may be continued or provided to a delivery 
                point if--
                            ``(i) centralized delivery or curbside 
                        delivery would, but for this paragraph, be the 
                        primary mode of mail delivery for the delivery 
                        point; and
                            ``(ii) a physical hardship prevents the 
                        postal customer from receiving his or her mail 
                        through any other form of mail delivery.
                    ``(B) Publicity; simplicity.--In establishing and 
                maintaining the waiver program under subparagraph (A), 
                the Postal Service shall--
                            ``(i) publicize the waiver program; and
                            ``(ii) provide a simple application process 
                        for participation in the waiver program.
                    ``(C) Postal service discretion.--Nothing in this 
                paragraph shall be construed to--
                            ``(i) prohibit the Postal Service from 
                        requiring evidence of a physical hardship in an 
                        appropriate case; or
                            ``(ii) require the Postal Service to 
                        require evidence of a physical hardship in any 
                        case.
                    ``(D) No fees for application or door delivery.--In 
                establishing and maintaining the waiver program under 
                subparagraph (A), the Postal Service may not charge a 
                postal customer any fee to--
                            ``(i) apply for a waiver; or
                            ``(ii) upon the granting of a waiver by the 
                        Postal Service, receive mail through door 
                        delivery.''.
    (b) Clerical Amendment.--The table of sections for subchapter VII 
of chapter 36 of title 39, United States Code, is amended by adding at 
the end the following:

``3692. Delivery point modernization.''.

SEC. 206. POSTAL SERVICES FOR MARKET-DOMINANT PRODUCTS.

    (a) In General.--Strike section 3661 of title 39, United States 
Code, and insert the following:
``Sec. 3661. Postal services for market-dominant products
    ``(a) General Obligation.--The Postal Service shall develop and 
promote adequate and efficient postal services with respect to its 
market-dominant products.
    ``(b) Proposed Changes for Market-dominant Products.--
            ``(1) Submission of proposal.--If the Postal Service 
        determines that there should be a change in the nature of 
        postal services relating to market-dominant products that will 
        generally affect service on a nationwide or substantially 
        nationwide basis, the Postal Service shall submit a proposal to 
        the Postal Regulatory Commission requesting an advisory opinion 
        on the change.
            ``(2) Advisory opinion.--Upon receipt of a proposal under 
        paragraph (1), the Postal Regulatory Commission shall--
                    ``(A) provide notice and an opportunity for public 
                comment and a public hearing on the proposal; and
                    ``(B) issue an advisory opinion not later than--
                            ``(i) 90 days after the date on which the 
                        Postal Regulatory Commission receives the 
                        proposal; or
                            ``(ii) a date that the Postal Regulatory 
                        Commission and the Postal Service may determine 
                        jointly.
            ``(3) Response to opinion.--The Postal Service shall submit 
        to the President and to Congress a response to an advisory 
        opinion issued under paragraph (2) that includes--
                    ``(A) a statement of whether the Postal Service 
                plans to modify the proposal to address any concerns or 
                implement any recommendations made by the Commission; 
                and
                    ``(B) for any matter that the Postal Service 
                determines not to address and any recommendation that 
                the Postal Service determines not to implement, the 
                reasons for the determination.
            ``(4) Action on proposal.--The Postal Service may take 
        action regarding a proposal submitted under paragraph (1)--
                    ``(A) on or after the date on which the Postal 
                Service submits the response required under paragraph 
                (3);
                    ``(B) on or after a date that the Postal Regulatory 
                Commission and the Postal Service may determine 
                jointly; or
                    ``(C) after the date described in paragraph (2)(B), 
                if--
                            ``(i) the Postal Regulatory Commission 
                        fails to issue an advisory opinion on or before 
                        the date described in paragraph (2)(B); and
                            ``(ii) the action is not otherwise 
                        prohibited under Federal law.
            ``(5) Modification of timeline.--At any time, the Postal 
        Service and the Postal Regulatory Commission may jointly 
        redetermine a date determined under paragraph (2)(B)(ii) or 
        (4)(B).
    ``(c) Limitation.--
            ``(1) No changes for competitive products.--Nothing in this 
        section shall be construed as authorizing the making of changes 
        under this section to the nature of service provided for 
        competitive products.
            ``(2) Hybrid changes.--For a change that affects the nature 
        of service provided for both market-dominant products and 
        competitive products, only the effect on market-dominant 
        products shall be subject to this section.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 36 of title 39, United States Code, is amended by striking the 
item relating to section 3661 and inserting the following:

``3661. Postal services for market-dominant products.''.

SEC. 207. REPORT ON PILOT PROGRAM FOR USE OF NATURAL GAS AND PROPANE 
              FOR POSTAL TRUCKS.

    Not later than 180 days after the date of enactment of this Act, 
the Postmaster General shall submit to the Committee on Homeland 
Security and Governmental Affairs of the Senate a report on the 
feasibility of a pilot program to implement the use of natural gas and 
propane as fuels for heavy-duty over-the-road trucks, in addition to 
natural gas-fueled vehicles already in the postal fleet, as a fuel 
cost-saving measure.

SEC. 208. CAPITOL COMPLEX POST OFFICES.

    (a) House of Representatives.--
            (1) In general.--The Postal Service shall not maintain or 
        operate more than 1 post office in the United States Capitol 
        Complex, as defined in section 310(a)(3)(B) of the Legislative 
        Branch Appropriations Act, 1990 (2 U.S.C. 2172(a)(3)(B)), which 
        shall be located in a House Office Building.
            (2) Closing of capitol post offices.--The Postal Service 
        shall close any post office in the United States Capitol 
        Complex, as defined in section 310(a)(3)(B) of the Legislative 
        Branch Appropriations Act, 1990 (2 U.S.C. 2172(a)(3)(B)), not 
        permitted under this subsection, without regard to the 
        requirements under section 404(d) of title 39, United States 
        Code.
    (b) Senate.--
            (1) In general.--The Sergeant at Arms and Doorkeeper of the 
        Senate may not enter into, modify, or renew a contract with the 
        Postal Service to maintain or operate more than 1 post office 
        in a Senate Office Building.
            (2) Existing contracts.--Nothing in paragraph (1) may be 
        construed to affect a contract entered into by the Sergeant at 
        Arms and Doorkeeper of the Senate and the Postal Service before 
        the date of enactment of this Act.

SEC. 209. LAWFUL POSSESSION OF FIREARMS IN POST OFFICE PARKING LOTS.

    (a) Definitions.--In this section--
            (1) the term ``nonpublic area'', with respect to a postal 
        facility, means any area of the facility that is--
                    (A) accessible exclusively to authorized personnel 
                for the performance of official postal functions, as 
                determined by the Postmaster General; and
                    (B) not accessible to the general public;
            (2) the term ``parking lot'', with respect to a post 
        office--
                    (A) means any lot or structure--
                            (i) the principal purpose of which is the 
                        parking of vehicles to allow the general public 
                        to access the post office; and
                            (ii) that is owned or leased by the Postal 
                        Service;
                    (B) does not include street parking; and
                    (C) does not include parking lots for other Federal 
                facilities or Federal court facilities (as those terms 
                are defined in section 930(g)(3) of title 18, United 
                States Code);
            (3) the term ``post office'' has the meaning given the term 
        in section 404(d) of title 39, United States Code, as added by 
        this Act; and
            (4) the term ``postal facility'' means any facility owned 
        or leased by the Postal Service.
    (b) Lawful Purpose.--The Postal Service shall consider the lawful 
carrying or storing of a firearm in a parking lot of a post office, in 
a manner not inconsistent with State or local laws and not in violation 
of any lease for use of the parking lot or of the postal facility that 
the parking lot serves, to be a lawful purpose for purposes of section 
930(d)(3) of title 18, United States Code.
    (c) Code of Federal Regulations.--The Postal Service shall amend 
section 232.1 of title 39, Code of Federal Regulations, to specify 
that--
            (1) an individual who is otherwise permitted to carry or 
        store a firearm in a manner not inconsistent with State or 
        local laws may carry or store a firearm in a parking lot of a 
        post office; and
            (2) carrying or storing a firearm in a parking lot of a 
        post office, in accordance with paragraph (1), shall be 
        considered a lawful purpose under section 930(d)(3) of title 
        18, United States Code.
    (d) Signage.--The Postal Service shall post signage in each parking 
lot of a post office to communicate to the general public the changes 
in law required under this section.
    (e) Rules of Construction.--
            (1) In general.--Nothing in this section shall be construed 
        to limit the authority of the Postmaster General to establish--
                    (A) workplace rules for employees of the Postal 
                Service; or
                    (B) regulations relating to nonpublic areas of 
                postal facilities.
            (2) Lawful purposes.--Nothing in this Act or an amendment 
        made by this Act shall be construed to impose the meaning of 
        the term ``lawful purpose'' under subsection (b) with respect 
        to any property that is not a post office or postal property.

                   TITLE III--POSTAL SERVICE REVENUE

SEC. 301. POSTAL RATES.

    (a) Modern Rate System.--
            (1) In general.--Chapter 36 of title 39, United States 
        Code, is amended by striking section 3622 and inserting the 
        following:
``Sec. 3622. Modern rate system
    ``(a) Authority Generally.--
            ``(1) Board of governors.--The Board may, acting in 
        accordance with this section, establish, and from time to time 
        thereafter revise, a system of rates and classes for market-
        dominant products (referred to in this section as the 
        `system'), consistent with the requirements under this section.
            ``(2) No delegation.--The authority under this section may 
        not be delegated to the Postmaster General or to any other 
        individual or entity.
    ``(b) Objectives.--The system shall be designed to achieve the 
following objectives, each of which shall be applied in conjunction 
with the others:
            ``(1) To maximize incentives for the Postal Service to 
        reduce costs and increase efficiency.
            ``(2) To create predictability and stability in rates.
            ``(3) To maintain high quality service standards 
        established under section 3691.
            ``(4) To assure adequate revenues and maintain the 
        financial stability of the Postal Service.
            ``(5) To establish and maintain a just and reasonable 
        schedule for rates and classifications, however the objective 
        under this paragraph shall not be construed to prohibit the 
        Postal Service from making changes of unequal magnitude within, 
        between, or among classes of mail.
            ``(6) To allocate the total institutional costs of the 
        Postal Service appropriately between market-dominant and 
        competitive products, in accordance with regulations 
        promulgated by the Postal Regulatory Commission (referred to in 
        this section as the `Commission') under section 3633.
    ``(c) Factors.--In establishing or revising the system, the Board 
and the Commission shall take into account--
            ``(1) the value of the mail service provided through each 
        class or type of mail service to both the sender and the 
        recipient, including the educational, cultural, scientific, and 
        informational value;
            ``(2) the direct and indirect postal costs attributable to 
        each class or type of mail service;
            ``(3) the effect of rate increases upon Postal Service 
        customers;
            ``(4) the available alternative means of sending and 
        receiving letters and other mail matter;
            ``(5) the simplicity of structure for the entire schedule 
        and simple, identifiable relationships between the rates or 
        fees charged the various classes of mail for postal services; 
        and
            ``(6) the policies of this title as well as such other 
        factors as the Board or the Commission determines appropriate.
    ``(d) Adjustments Consistent With System.--
            ``(1) Notice.--The Board shall provide notice of any 
        adjustment in rates or classes proposed to be made under this 
        section that is consistent with the system then in effect--
                    ``(A) not later than--
                            ``(i) 90 days before the implementation of 
                        any rate or class adjustment that affects all 
                        or substantially all market-dominant products; 
                        and
                            ``(ii) 45 days before the implementation of 
                        any other rate or class adjustment; and
                    ``(B) to--
                            ``(i) the public, including by--
                                    ``(I) publication in the Federal 
                                Register; and
                                    ``(II) posting on the website of 
                                the Postal Service; and
                            ``(ii) the Commission.
            ``(2) Public comment.--The Board shall solicit and receive 
        public comments on any proposed rate or class adjustment, and 
        shall take such comments into account in making its final 
        determination as to a rate or class adjustment.
            ``(3) Final decision.--Not later than 10 days before the 
        implementation of a rate or class adjustment, the Board shall 
        issue a final decision on the adjustment which shall--
                    ``(A) be published in the Federal Register and 
                posted on the website of the Postal Service; and
                    ``(B) include an explanation responding to all 
                relevant comments received.
            ``(4) Commission review.--
                    ``(A) In general.--Any adjustment made by the Board 
                under this section shall be subject to review by the 
                Commission under section 3662.
                    ``(B) Application of section 3662.--In a review 
                described in subparagraph (A), section 3662 shall be 
                applied by substituting `Board of Governors' for 
                `Postal Service' where applicable.
    ``(e) Rate Base.--The rates for market-dominant products in effect 
on the date of enactment of the Postal Reform Act of 2014, including 
any rates adjusted under this section on an expedited basis due to 
either extraordinary or exceptional circumstances, shall remain in 
effect unless adjusted in accordance with this section.
    ``(f) Limitations on Rate Adjustments.--
            ``(1) Applicability of limitations.--The limitations under 
        this subsection shall remain in effect unless revised or 
        eliminated under subsection (g).
            ``(2) Annual limitation.--There shall be an annual 
        limitation on the percentage changes in rates for market-
        dominant products as a whole under this section that shall be 
        equal to the percentage change in the Consumer Price Index for 
        All Urban Consumers unadjusted for seasonal variation over the 
        most recent available 12-month period preceding the date the 
        Board provides notice of its intention to increase rates.
            ``(3) Conditions.--
                    ``(A) Classes of mail.--The Board shall ensure that 
                the annual percentage change in rates under this 
                section for a class of mail, as defined in the Domestic 
                Mail Classification Schedule (as in effect on the date 
                of enactment of the Postal Accountability and 
                Enhancement Act), does not exceed the annual limitation 
                under paragraph (2) by more than 2 percentage points.
                    ``(B) Use of unused rate adjustment authority.--
                            ``(i) Definition.--In this subparagraph, 
                        the term `unused rate adjustment authority' 
                        means the difference between--
                                    ``(I) the maximum amount of a rate 
                                adjustment that the Board is authorized 
                                to make in any year subject to the 
                                annual limitation under paragraph (2); 
                                and
                                    ``(II) the amount of the rate 
                                adjustment the Board actually makes in 
                                that year.
                            ``(ii) Authority.--Subject to clause (iii), 
                        the Board may use any unused rate adjustment 
                        authority for any of the 5 years following the 
                        year the authority occurred.
                            ``(iii) Limitations.--In exercising the 
                        authority under clause (ii) in any year, the 
                        Governors--
                                    ``(I) may use unused rate 
                                adjustment authority from more than 1 
                                year;
                                    ``(II) may use any part of the 
                                unused rate adjustment authority from 
                                any year; and
                                    ``(III) may not exceed the annual 
                                limitation under paragraph (2) by more 
                                than 2 percentage points.
            ``(4) Exception to annual limitation.--Notwithstanding the 
        annual limitation under paragraph (2), and provided there is 
        not sufficient unused rate adjustment authority under paragraph 
        (3)(B), rates may be adjusted on an expedited basis due to 
        either extraordinary or exceptional circumstances, provided 
        that the Commission determines, after notice and opportunity 
        for public comment, and within 90 days after any request by the 
        Board, that such adjustment is reasonable and equitable and 
        necessary to enable the Postal Service, under best practices of 
        honest, efficient, and economical management, to maintain and 
        continue the development of postal services of the kind and 
        quality adapted to the needs of the United States.
    ``(g) Adoption of Revisions to System or New System.--
            ``(1) Board proposal.--Not earlier than January 1, 2017, 
        and as appropriate thereafter, the Board may, after notice and 
        opportunity for public comment, submit to the Commission a 
        proposal for revisions to the system or a new system, 
        consistent with the objectives under subsection (b), taking 
        into account the factors under subsection (c), and which may 
        include revision or elimination of the limitations established 
        under subsection (f).
            ``(2) Final commission action.--The Commission--
                    ``(A) shall consider a proposal submitted by the 
                Board under paragraph (1); and
                    ``(B) may--
                            ``(i) adopt the proposal, without 
                        modification; or
                            ``(ii) reject the proposal.
    ``(h) Workshare Discounts.--
            ``(1) Definition.--In this subsection, the term `workshare 
        discount' refers to rate discounts provided to mailers for the 
        presorting, prebarcoding, handling, or transportation of mail, 
        as further defined by the Board in accordance with subsection 
        (a).
            ``(2) Scope.--The Board shall ensure that such discounts do 
        not exceed the cost that the Postal Service avoids as a result 
        of workshare activity, unless--
                    ``(A) the discount is--
                            ``(i) associated with a new postal service, 
                        a change to an existing postal service, or with 
                        a new work share initiative related to an 
                        existing postal service; and
                            ``(ii) necessary to induce mailer behavior 
                        that furthers the economically efficient 
                        operation of the Postal Service and the portion 
                        of the discount in excess of the cost that the 
                        Postal Service avoids as a result of the 
                        workshare activity will be phased out over a 
                        limited period of time;
                    ``(B) the amount of the discount above costs 
                avoided--
                            ``(i) is necessary to mitigate rate shock; 
                        and
                            ``(ii) will be phased out over time;
                    ``(C) the discount is provided in connection with a 
                category of mail consisting exclusively of mail matter 
                of educational, cultural, scientific, or informational 
                value; or
                    ``(D) reduction or elimination of the discount 
                would--
                            ``(i) impede the efficient operation of the 
                        Postal Service;
                            ``(ii) lead to a loss of volume in the 
                        affected category of mail and reduce the 
                        aggregate contribution to the institutional 
                        costs of the Postal Service from the category 
                        subject to the discount below what it otherwise 
                        would have been if the discount had not been 
                        reduced or eliminated; or
                            ``(iii) result in a further increase in the 
                        rates paid by mailers not able to take 
                        advantage of the discount.
            ``(3) Notice.--Whenever a workshare discount is 
        established, the Board shall ensure that the notice provided 
        under subsection (d)(1) includes--
                    ``(A) the reasons for establishing the discount;
                    ``(B) the data, economic analyses, and other 
                information relied on by the Board to justify the rate; 
                and
                    ``(C) a certification that the discount will not 
                adversely affect rates or services provided to users of 
                postal services who do not take advantage of the 
                discount rate.
    ``(i) Negotiated Service Agreements.--The Board shall ensure that 
any agreement between the Postal Service and a mailer that adjusts 
rates or classes in a manner that is specific to the mailer--
            ``(1) is available on public and reasonable terms to 
        similarly situated mailers;
            ``(2) either--
                    ``(A) improves the net financial position of the 
                Postal Service through reducing Postal Service costs or 
                increasing the overall contribution to the 
                institutional costs of the Postal Service taking into 
                account changes in volume and revenues from mailers 
                ineligible for the agreement; or
                    ``(B) enhances the performance of mail preparation, 
                processing, transportation, or other functions; and
            ``(3) does not cause--
                    ``(A) unfair competitive advantage for the Postal 
                Service or mailers eligible for the agreement; or
                    ``(B) unreasonable disruption to the volume or 
                revenues of other mailers ineligible for the agreement.
    ``(j) Consideration of Prior Commission Decisions.--In making any 
determination under this section, including the construction and 
interpretation of the terms used in this section, the Board shall give 
consideration to decisions of the Commission made prior to the date of 
enactment of the Postal Reform Act of 2014, and shall include an 
explanation of any deviation from such decisions in the notice required 
under subsection (d)(1).''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 36 of title 39, United States Code, is 
        amended by striking the item relating to section 3622 and 
        inserting the following:

``3622. Modern rate system.''.
    (b) Repeal of Rate Preferences for Qualified Political 
Committees.--Section 3626 of title 39, United States Code, is amended--
            (1) by striking subsection (e);
            (2) by redesignating subsections (f), (g), and (h) as 
        subsections (e), (f), and (g), respectively;
            (3) by redesignating subsections (j) through (n) as 
        subsections (h) through (l), respectively; and
            (4) in subsection (h), as redesignated by paragraph (3)--
                    (A) in paragraph (1)(D), by striking ``subsection 
                (m)(2)'' and inserting ``subsection (k)(2)''; and
                    (B) in paragraph (3)(B), by striking ``subsection 
                (m)'' and inserting ``subsection (k)''.
    (c) Standard Post.--
            (1) Definition.--In this subsection, the term ``covered 
        package'' means a Standard Post package that--
                    (A) originates and destinates within the same 
                State; and
                    (B) destinates in a community that is not served by 
                regular overland transportation from the community in 
                which the shipment originates.
            (2) Temporary standard post pricing.--Notwithstanding 
        section 3642 of title 39, United States Code, during the period 
        beginning on the date of enactment of this Act and ending on 
        the date on which the Commission issues an order resolving the 
        proceeding described in paragraph (3)(B), the Postal Service 
        shall deliver covered packages at the rates that were 
        applicable to Standard Post on January 27, 2013.
            (3) Commission study and proceeding.--
                    (A) Study.--The Commission shall conduct a study to 
                determine--
                            (i) the extent to which the Postal Service 
                        exercises monopoly power and the extent to 
                        which delivery services are reasonably 
                        available from a private carrier with respect 
                        to the delivery of covered packages; and
                            (ii) the extent to which there are 
                        communities for which the Postal Service 
                        exercises monopoly power for the delivery of 
                        items shipped by Standard Post or for which 
                        delivery services are not reasonably available 
                        for such items.
                    (B) Proceeding.--The Commission shall initiate a 
                proceeding under section 3642 of title 39, United 
                States Code, to determine whether covered packages and 
                any other packages identified under subparagraph 
                (A)(ii), if considered as a single product, would 
                constitute a market dominant product or a competitive 
                product.
                    (C) Rates.--If the Commission determines in the 
                proceeding under subparagraph (B) that covered packages 
                constitute a market dominant product, the rates for 
                covered packages shall be as provided in paragraph (2) 
                until adjusted in accordance with the procedures under 
                section 3622 of title 39, United States Code, 
                applicable to market dominant products.
                    (D) Information.--The Postal Service shall provide 
                the Commission with such information as may, in the 
                judgment of the Commission, be necessary in order for 
                the Commission to conduct its study and proceeding 
                under this paragraph.

SEC. 302. NONPOSTAL SERVICES.

    (a) Authorization of New Nonpostal Services.--
            (1) In general.--Section 404 of title 39, United States 
        Code, as amended by this Act, is amended--
                    (A) in subsection (a)--
                            (i) by redesignating paragraphs (6) through 
                        (8) as paragraphs (7) through (9), 
                        respectively; and
                            (ii) by inserting after paragraph (5) the 
                        following:
            ``(6) on and after the date of enactment of the Postal 
        Reform Act of 2014, except as provided in subsection (e) and 
        subject to subsection (h)--
                    ``(A) to provide other services that are not postal 
                services, if the provision of such services--
                            ``(i) uses the processing, transportation, 
                        delivery, retail network, or technology of the 
                        Postal Service;
                            ``(ii) is consistent with the public 
                        interest and demonstrated likely public demand 
                        for--
                                    ``(I) the Postal Service, rather 
                                than another entity, to provide the 
                                services; or
                                    ``(II) the Postal Service, in 
                                addition to or in partnership with 
                                another entity, to provide the 
                                services;
                            ``(iii) would not create unfair competition 
                        with the private sector, taking into 
                        consideration the extent to which the Postal 
                        Service will not, either by legal obligation or 
                        voluntarily, comply with any State or local 
                        laws or requirements generally applicable to 
                        the provision of such services;
                            ``(iv) does not unreasonably interfere with 
                        or detract from the value of postal services, 
                        including--
                                    ``(I) the cost and efficiency of 
                                postal services; and
                                    ``(II) access to postal retail 
                                service;
                            ``(v) will be undertaken in accordance with 
                        all Federal laws and regulations applicable to 
                        the provision of such services; and
                            ``(vi) is reasonably expected to improve 
                        the net financial position of the Postal 
                        Service, based on a market analysis conducted 
                        by or on behalf of the Postal Service; and
                    ``(B) to classify a service provided under 
                subparagraph (A) as an experimental product subject to 
                section 3641;'';
                    (B) in subsection (e)(1), by inserting ``and that 
                was offered by the Postal Service on the date of 
                enactment of the Postal Reform Act of 2014'' after 
                ``102(5)''; and
                    (C) by adding at the end the following:
    ``(g) Treatment of New Nonpostal Services.--For purposes of 
chapters 20 and 36 of this title, nonpostal services provided under 
subsection (a)(6) shall be treated as competitive products.
    ``(h) Federal Regulation of New Nonpostal Services.--The Postal 
Service shall ensure that any nonpostal service provided under 
subsection (a)(6) that is otherwise subject to the jurisdiction and 
regulation of a Federal regulatory agency remains subject to the 
jurisdiction and regulation of the Federal regulatory agency 
notwithstanding the fact that the nonpostal service is provided by the 
Postal Service.''.
            (2) Complaints.--Section 3662(a) of title 39, United States 
        Code, is amended by inserting ``404(a)(6),'' after ``403(c),''.
            (3) Market analysis.--During the 5-year period beginning on 
        the date of enactment of this Act, not later than 7 days after 
        the date on which any market analysis conducted under section 
        404(a)(6)(A)(vi) of title 39, United States Code, as amended by 
        this section, is completed, the Postal Service shall submit a 
        copy of the market analysis to--
                    (A) the Commission;
                    (B) the Committee on Homeland Security and 
                Governmental Affairs of the Senate; and
                    (C) the Committee on Oversight and Government 
                Reform of the House of Representatives.
    (b) Governmental Services.--Section 411 of title 39, United States 
Code, is amended--
            (1) in the second sentence, by striking ``this section'' 
        and inserting ``this subsection'';
            (2) by striking ``Executive agencies'' and inserting ``(a) 
        Federal Government.--Executive agencies''; and
            (3) by adding at the end the following:
    ``(b) State, Local, and Tribal Governments.--
            ``(1) Authority of postal service.--The Postal Service is 
        authorized to furnish property and services to States, local 
        governments, and tribal governments, under such terms and 
        conditions, including the possibility for reimbursement, as the 
        Postal Service and the applicable State, local government, or 
        tribal government shall determine appropriate.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) the term `local government' means--
                            ``(i) a county, municipality, city, town, 
                        township, local public authority, school 
                        district, special district, intrastate 
                        district, council of governments, or regional 
                        or interstate government entity;
                            ``(ii) an agency or instrumentality of an 
                        entity described in clause (i); or
                            ``(iii) a rural community, an 
                        unincorporated town or village, or an 
                        instrumentality of a rural community or an 
                        unincorporated town or village;
                    ``(B) the term `State' includes the District of 
                Columbia, the Commonwealth of Puerto Rico, the United 
                States Virgin Islands, Guam, American Samoa, the 
                Commonwealth of the Northern Mariana Islands, and any 
                other territory or possession of the United States; and
                    ``(C) the term `tribal government' means the 
                government of an Indian tribe, as that term is defined 
                in section 4(e) of the Indian Self-Determination Act 
                (25 U.S.C. 450b(e)).
    ``(c) Report.--The Postal Service shall submit to the Postal 
Regulatory Commission, together with the report required under section 
3652, a report that details the costs and revenues of the property and 
services furnished by the Postal Service under this section during the 
period covered by the report required under section 3652.
    ``(d) Reimbursement Determination.--In determining the possibility 
for reimbursement under subsections (a) and (b), the Postal Service 
shall ensure that each property or service furnished under such 
subsections covers its costs attributable, as that term is defined in 
section 3631(b).''.
    (c) Conforming Amendments.--
            (1) Section 404(e) of title 39.--Section 404(e) of title 
        39, United States Code, is amended--
                    (A) by striking ``(e)(1) In this'' and inserting 
                the following:
    ``(e) Previously Offered Nonpostal Services.--
            ``(1) Definition.--In this'';
                    (B) in paragraph (2), by striking ``(2) Nothing'' 
                and inserting the following:
            ``(2) Eligible nonpostal services.--Nothing'';
                    (C) in paragraph (3)--
                            (i) by striking ``(3) Not'' and inserting 
                        the following:
            ``(3) Review of nonpostal services.--Not''; and
                            (ii) by moving subparagraphs (A) and (B) 2 
                        ems to the right;
                    (D) in paragraph (4), by striking ``(4) Any'' and 
                inserting the following:
            ``(4) Termination.--Any''; and
                    (E) by striking paragraph (5) and inserting the 
                following:
            ``(5) Designation.--Each nonpostal service authorized under 
        this subsection shall be designated as market-dominant or 
        competitive based on the designation of the nonpostal service 
        in the Mail Classification Schedule as in effect on the date of 
        enactment of the Postal Reform Act of 2014.
            ``(6) Rule of construction.--Nothing in this subsection 
        shall be construed to prevent the Postal Service from providing 
        nonpostal services under subsection (a)(6).''.
            (2) Section 3641 of title 39.--Section 3641 of title 39, 
        United States Code, is amended--
                    (A) in subsection (b)(1), by inserting ``(or the 
                appropriate consumers in the case of nonpostal 
                services)'' after ``users'';
                    (B) in the first sentence of subsection (b)(3), by 
                striking ``section 3642(b)(1)'' and inserting 
                ``sections 404(g) and 3642(b)(1)'';
                    (C) in the second sentence of subsection (b)(3), by 
                striking ``section 3633(3)'' and inserting ``section 
                3633(a)(3)'';
                    (D) in subsection (e)(1), by striking 
                ``$10,000,000'' and inserting ``$50,000,000''; and
                    (E) in subsection (e)(2), by striking 
                ``$50,000,000'' and inserting ``$100,000,000''.
            (3) Technical and conforming amendments.--Section 
        2003(b)(1) of title 39, United States Code, is amended by 
        striking ``postal and nonpostal services'' and inserting 
        ``postal services, nonpostal services authorized under section 
        404(e), and property and services authorized under section 
        411,''.

SEC. 303. SHIPPING OF WINE, BEER, AND DISTILLED SPIRITS.

    (a) Mailability.--
            (1) Nonmailable articles.--Section 1716(f) of title 18, 
        United States Code, is amended by striking ``mails'' and 
        inserting ``mails, except to the extent that the mailing is 
        allowable under section 3001(p) of title 39''.
            (2) Application of laws.--Section 1161 of title 18, United 
        States Code, is amended by inserting ``, and, with respect to 
        the mailing of distilled spirits, wine, or malt beverages (as 
        those terms are defined in section 117 of the Federal Alcohol 
        Administration Act (27 U.S.C. 211)), is in conformity with 
        section 3001(p) of title 39'' after ``Register''.
    (b) Regulations.--Section 3001 of title 39, United States Code, is 
amended by adding at the end the following:
    ``(p)(1) In this subsection, the terms `distilled spirits', `wine', 
and `malt beverage' have the same meanings as in section 117 of the 
Federal Alcohol Administration Act (27 U.S.C. 211).
    ``(2) Distilled spirits, wine, or malt beverages shall be 
considered mailable if mailed--
            ``(A) in accordance with the laws and regulations of--
                    ``(i) the State, territory, or district of the 
                United States where the sender or duly authorized agent 
                initiates the mailing; and
                    ``(ii) the State, territory, or district of the 
                United States where the addressee or duly authorized 
                agent takes delivery; and
            ``(B) to an addressee who is at least 21 years of age--
                    ``(i) who provides a signature and presents a 
                valid, government-issued photo identification upon 
                delivery; or
                    ``(ii) the duly authorized agent of whom--
                            ``(I) is at least 21 years of age; and
                            ``(II) provides a signature and presents a 
                        valid, government-issued photo identification 
                        upon delivery.
    ``(3) The Postal Service shall prescribe such regulations as may be 
necessary to carry out this subsection.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the earlier of--
            (1) the date on which the Postal Service issues regulations 
        under section 3001(p) of title 39, United States Code, as 
        amended by this section; and
            (2) the date that is 120 days after the date of enactment 
        of this Act.
    (d) No Preemption of State, Local, or Tribal Laws Prohibiting 
Deliveries, Shipments, or Sales.--Nothing in this section, the 
amendments made by this section, or any regulation promulgated under 
this section or the amendments made by this section, shall be construed 
to preempt, supersede, or otherwise limit or restrict any State, local, 
or tribal law that prohibits or regulates the delivery, shipment, or 
sale of distilled spirits, wine, or malt beverages (as those terms are 
defined in section 117 of the Federal Alcohol Administration Act (27 
U.S.C. 211)).

                  TITLE IV--POSTAL SERVICE GOVERNANCE

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

    (a) Board of Governors.--Title 39, United States Code, is amended 
by striking section 202 and inserting the following:
``Sec. 202. Board of Governors
    ``(a) In General.--The exercise of the power of the Postal Service 
shall be directed by a Board of Governors composed of 9 members 
appointed in accordance with this section, each of whom shall be a 
voting member of the Board.
    ``(b) Membership.--
            ``(1) Composition.--The Board shall be composed of--
                    ``(A) the Postmaster General; and
                    ``(B) 8 members, to be known as Governors, who 
                shall be appointed by the President, by and with the 
                advice and consent of the Senate.
            ``(2) Affiliation.--Not more than 4 of the Governors may be 
        members of any 1 political party.
            ``(3) Chairperson.--The Governors shall elect a Chairperson 
        from among the members of the Board.
    ``(c) Qualifications.--
            ``(1) In general.--The Governors shall represent the public 
        interest generally, and shall be chosen solely on the basis of 
        experience in public service, law, or accounting, or on a 
        demonstrated ability to manage organizations or corporations 
        (in either the public or private sector) of substantial size.
            ``(2) No specific interest.--A Governor may not be a 
        representative of a specific interest using the Postal Service.
            ``(3) Initial appointments.--At least 1 of the Governors 
        who is appointed to fill a position that is vacant on the date 
        of enactment of the Postal Reform Act of 2014 shall, in 
        addition to the qualifications set forth in paragraph (1), be 
        appointed based on the demonstrated ability of that individual 
        to manage and improve financially troubled organizations.
    ``(d) Removal.--A Governor may be removed only for cause.
    ``(e) Compensation.--
            ``(1) Salary.--Each Governor shall receive a salary of 
        $30,000 each year, plus $300 for each day, for not more than 42 
        days, on which the Governor attends a meeting of the Board. 
        Nothing in this paragraph shall be construed to limit the 
        number of days of meetings each year to 42 days.
            ``(2) Reimbursement for meetings.--Each Governor shall be 
        reimbursed for travel and reasonable expenses incurred in 
        attending meetings of the Board.
    ``(f) Terms.--
            ``(1) In general.--Each Governor shall serve for a term of 
        7 years.
            ``(2) Vacancies.--A Governor appointed to fill a vacancy 
        occurring before the expiration of the term to which the 
        predecessor of that Governor was appointed shall serve for the 
        remainder of that term.
            ``(3) Continuation of service.--A Governor may continue to 
        serve after the expiration of the term of that Governor until a 
        successor has been appointed, except that a Governor may not 
        continue to serve for more than 1 year after the date on which 
        the term of that Governor would have otherwise expired.
            ``(4) Limit.--A Governor may serve for not more than 2 
        terms.
    ``(g) Postmaster General.--
            ``(1) Appointment and removal.--The Governors shall appoint 
        and shall have the power to remove the Postmaster General.
            ``(2) Pay and term of service.--The pay and term of service 
        of the Postmaster General shall be determined by the Governors.
    ``(h) Deputy Postmaster General.--
            ``(1) Appointment and removal.--The Governors and the 
        Postmaster General shall appoint and shall have the power to 
        remove the Deputy Postmaster General.
            ``(2) Pay.--The pay of the Deputy Postmaster General shall 
        be determined by the Governors.
            ``(3) Term of service.--The term of service of the Deputy 
        Postmaster General shall be determined by the Governors and the 
        Postmaster General.
    ``(i) Executive Committee.--
            ``(1) Authority to establish.--The Board, by a vote of a 
        majority of its members, may establish an Executive Committee 
        of the Board, consistent with paragraph (2).
            ``(2) Board membership and responsibilities.--If 
        established by the Board, the Executive Committee shall--
                    ``(A) be composed of the Chairperson of the Board 
                and 2 additional Governors designated by the Board, 
                except that not more than 2 members of the Executive 
                Committee may be members of any 1 political party;
                    ``(B) develop and oversee implementation of 
                strategies and measures to ensure the long-term 
                financial solvency of the Postal Service;
                    ``(C) develop and oversee the implementation of the 
                financial plan and budget required under section 403 of 
                the Postal Reform Act of 2014 and updates to the 
                financial plan and budget;
                    ``(D) make recommendations to the Board regarding 
                aspects of postal operations; and
                    ``(E) assume such other responsibilities as the 
                Board determines appropriate.
            ``(3) Quorum.--2 members of the Executive Committee shall 
        constitute a quorum for the transaction of business by the 
        Executive Committee.
            ``(4) Termination.--The Executive Committee may be 
        terminated by a vote of the majority of the members of the 
        Board.''.
    (b) Procedures of the Board.--Section 205(c) of title 39, United 
States Code, is amended by striking ``6 members'' and inserting ``5 
members''.
    (c) Incumbents; Implementation.--
            (1) Incumbents.--An individual serving as a Governor on the 
        Board of Governors of the Postal Service (referred to in this 
        subsection as a ``Governor'') on the date of enactment of this 
        Act may continue to serve as a Governor until the expiration of 
        the term of that Governor.
            (2) Implementation of membership reduction.--
                    (A) In general.--One of the 2 positions as a 
                Governor for which the term is scheduled to expire on 
                December 8, 2014, shall not be filled after the 
                position becomes vacant.
                    (B) Preference for abolishing vacant position.--If 
                1 of the 2 positions referred to in subparagraph (A) is 
                vacant on the date of enactment of this Act, that 
                vacant position shall be the position that is not 
                filled, as required under such subparagraph.
    (d) Conforming Amendments.--Title 39, United States Code, is 
amended--
            (1) in section 102(3)--
                    (A) by striking ``9'' and inserting ``8''; and
                    (B) by striking ``202(a)'' and inserting 
                ``202(b)(1)(C)''; and
            (2) in section 203--
                    (A) by striking ``202(c)'' and inserting 
                ``202(g)''; and
                    (B) by striking ``202(d)'' and inserting 
                ``202(h)''.

SEC. 402. STRATEGIC ADVISORY COMMISSION ON POSTAL SERVICE SOLVENCY AND 
              INNOVATION.

    (a) Establishment.--
            (1) In general.--There is established in the executive 
        branch a Strategic Advisory Commission on Postal Service 
        Solvency and Innovation (referred to in this section as the 
        ``Advisory Commission'').
            (2) Independence.--The Advisory Commission shall not be 
        subject to the supervision of the Board of Governors of the 
        Postal Service (referred to in this section as the ``Board of 
        Governors''), any Executive Committee established under section 
        202(i) of title 39, United States Code, the Postmaster General, 
        or any other officer or employee of the Postal Service.
    (b) Purpose.--The purpose of the Advisory Commission is to--
            (1) provide strategic guidance to the President, Congress, 
        the Board of Governors, the Postmaster General, and the Chief 
        Innovation Officer on enhancing the long-term solvency of the 
        Postal Service; and
            (2) foster innovative thinking to address the challenges 
        facing the Postal Service without unfairly competing with the 
        private sector.
    (c) Membership.--
            (1) Composition.--The Advisory Commission shall be composed 
        of 7 members, of whom--
                    (A) 3 members shall be appointed by the President, 
                who shall designate 1 member appointed under this 
                subparagraph to serve as Chairperson of the Advisory 
                Commission; and
                    (B) 1 member shall be appointed by each of--
                            (i) the majority leader of the Senate;
                            (ii) the minority leader of the Senate;
                            (iii) the Speaker of the House of 
                        Representatives; and
                            (iv) the minority leader of the House of 
                        Representatives.
            (2) Qualifications.--Members of the Advisory Commission 
        shall have--
                    (A) recognized and significant experience in such 
                fields as business, technology, and public 
                administration;
                    (B) a documented record of innovative thinking;
                    (C) familiarity with new and emerging technologies; 
                and
                    (D) experience with revitalizing organizations, 
                corporations, or communities that experienced 
                significant financial challenges or other challenges.
            (3) Incompatible offices.--An individual who is appointed 
        to the Advisory Commission may not serve as an elected official 
        or an officer or employee of the Federal Government while 
        serving as a member of the Advisory Commission, except in the 
        capacity of that individual as a member of the Advisory 
        Commission.
            (4) Deadline for appointment.--Each member of the Advisory 
        Commission shall be appointed not later than 60 days after the 
        date of enactment of this Act.
            (5) Meetings; quorum; vacancies.--
                    (A) Meetings.--The Advisory Commission shall meet 
                at the call of the Chairperson or a majority of the 
                members of the Advisory Commission.
                    (B) Quorum.--4 members of the Advisory Commission 
                shall constitute a quorum.
                    (C) Vacancies.--Any vacancy in the Advisory 
                Commission shall not affect the powers of the Advisory 
                Commission, but shall be filled as soon as practicable 
                in the same manner in which the original appointment 
                was made.
    (d) Duties and Powers.--
            (1) Duties.--The Advisory Commission shall--
                    (A) study matters that the Advisory Commission 
                determines are necessary and appropriate to develop a 
                strategic blueprint for the long-term solvency of the 
                Postal Service, including--
                            (i) the financial, operational, and 
                        structural condition of the Postal Service;
                            (ii) alternative strategies and business 
                        models that the Postal Service could adopt;
                            (iii) opportunities for additional postal 
                        and nonpostal services that the Postal Service 
                        could offer;
                            (iv) the comparative postal practices of 
                        other countries, including innovative products 
                        and services that postal services in other 
                        countries have offered, including services that 
                        respond to the increasing use of electronic 
                        means of communication, and different 
                        approaches to mail delivery that other 
                        countries have adopted;
                            (v) the governance and organizational and 
                        management structures of the Postal Service; 
                        and
                            (vi) efforts by the Postal Service to 
                        recruit and retain a workforce, particularly in 
                        rural areas, capable of meeting the strategic 
                        needs of the Postal Service regarding 
                        innovation, nationwide service standards, and 
                        nationwide delivery schedules; and
                    (B) submit the report required under subsection 
                (h).
            (2) Hearings.--The Advisory Commission may hold such 
        hearings, take such testimony, and receive such evidence as is 
        necessary to carry out this section.
            (3) Access to information.--The Advisory Commission may 
        secure directly from the Postal Service, the Board of 
        Governors, the Postal Regulatory Commission, and any other 
        Federal department or agency such information as the Advisory 
        Commission considers necessary to carry out this section. Upon 
        request of the Chairperson of the Advisory Commission, the head 
        of the department or agency shall furnish the information 
        described in the preceding sentence to the Advisory Commission.
    (e) Applicability of Laws.--The Federal Advisory Committee Act (5 
U.S.C. App) and section 552a of title 5, United States Code (commonly 
known as the ``Privacy Act of 1974'') shall apply to the Advisory 
Commission.
    (f) Assistance From Federal Agencies.--
            (1) Postal service.--The Postmaster General shall provide 
        to the Advisory Commission administrative support and other 
        services for the performance of the functions of the Advisory 
        Commission.
            (2) Other departments and agencies.--An agency of the 
        Federal Government may provide to the Advisory Committee such 
        services, funds, facilities, staff, and other support services 
        that the agency determines to be advisable or is otherwise 
        authorized under law.
    (g) Personnel Matters.--
            (1) Advisory commission members.--
                    (A) Compensation of members.--Each member of the 
                Advisory Commission shall be compensated at a rate 
                equal to the daily equivalent of the annual rate of 
                basic pay prescribed for level IV of the Executive 
                Schedule under section 5315 of title 5, United States 
                Code, for each day during which the member is engaged 
                in the actual performance of the duties of the Advisory 
                Commission.
                    (B) Travel expenses.--Each member of the Advisory 
                Commission shall be allowed travel expenses, including 
                per diem in lieu of subsistence, at the rate authorized 
                for employees serving intermittently in the Government 
                service under section 5703 of title 5, United States 
                Code, while away from home or regular place of business 
                in the performance of services for the Advisory 
                Commission.
            (2) Staff.--
                    (A) Appointment and compensation.--The Chairperson, 
                in accordance with rules agreed upon by the Advisory 
                Commission, shall appoint and fix the compensation of 
                an executive director and such other personnel as may 
                be necessary to enable the Advisory Commission to carry 
                out the functions of the Advisory Commission, without 
                regard to the provisions of title 5, United States 
                Code, governing appointments in the competitive 
                service, and without regard to the provisions of 
                chapter 51 and subchapter III of chapter 53 of such 
                title relating to classification of positions and 
                General Schedule pay rates, except that a rate of pay 
                fixed under this subparagraph may not exceed the annual 
                rate of basic pay prescribed for level V of the 
                Executive Schedule under section 5316 of title 5, 
                United States Code.
                    (B) Detailees.--Any Federal employee, including an 
                employee of the Postal Service, may be detailed to the 
                Advisory Commission without reimbursement, and such 
                detail shall be without interruption or loss of the 
                civil service rights, status, or privilege of the 
                employee.
    (h) Strategic Blueprint for Long-term Solvency.--
            (1) In general.--Not later than 9 months after the date of 
        enactment of this Act, the Advisory Commission shall submit a 
        report that contains a strategic blueprint for the long-term 
        solvency of the Postal Service to--
                    (A) the President;
                    (B) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (C) the Committee on Oversight and Government 
                Reform of the House of Representatives;
                    (D) the Board of Governors; and
                    (E) the Postmaster General.
            (2) Contents.--The strategic blueprint contained in the 
        report submitted under paragraph (1) shall include--
                    (A) an assessment of the business model of the 
                Postal Service as of the date on which the report is 
                submitted;
                    (B) an assessment of potential future business 
                models for the Postal Service, including an evaluation 
                of the appropriate balance between--
                            (i) necessary reductions in costs and 
                        services; and
                            (ii) additional opportunities for growth 
                        and revenue;
                    (C) a strategy for addressing significant current 
                and future liabilities;
                    (D) identification of opportunities for further 
                reductions in costs;
                    (E) identification of opportunities for new and 
                innovative products and services;
                    (F) a strategy for future growth;
                    (G) a vision of how the Postal Service will operate 
                in a sustainable manner 20 years after the date of 
                enactment of this Act;
                    (H) a strategy for ensuring that the Postal Service 
                has a sufficient workforce to meet all of its needs and 
                comply with applicable legal requirements; and
                    (I) recommendations for any legislative changes 
                necessary to implement the strategic blueprint 
                described in this paragraph.
    (i) Study and Strategic Plan on Interagency Agreements for Post 
Offices.--
            (1) Duties of advisory commission.--
                    (A) Study.--
                            (i) In general.--The Advisory Commission 
                        shall conduct a study concerning the 
                        advisability of the Postal Service entering 
                        into interagency agreements with Federal, 
                        State, and local agencies, with respect to post 
                        offices, that--
                                    (I) streamline and consolidate 
                                services provided by Federal, State, 
                                and local agencies;
                                    (II) decrease the costs incurred by 
                                Federal agencies in providing services 
                                to the general public; and
                                    (III) improve the efficiency and 
                                maintain the customer service standards 
                                of the Federal, State, and local 
                                agencies.
                            (ii) Clarification of interagency 
                        agreements.--The study under clause (i) shall 
                        include consideration of the advisability of 
                        the Postal Service entering into an interagency 
                        agreement with Federal agencies responsible for 
                        providing services to the general public.
                    (B) Findings.--The Advisory Commission shall--
                            (i) not later than 9 months after the date 
                        of enactment of this Act, submit to the Postal 
                        Service the findings of the study conducted 
                        under subparagraph (A); and
                            (ii) incorporate the findings described in 
                        clause (i) into the strategic blueprint 
                        required under subsection (h).
            (2) Postal service strategic plan.--
                    (A) In general.--Not later than 6 months after the 
                date on which the Advisory Commission submits to the 
                Postal Service the findings under paragraph (1)(B), the 
                Postal Service shall submit a nonbinding strategic plan 
                for entering into interagency agreements concerning 
                post offices to--
                            (i) the Committee on Homeland Security and 
                        Governmental Affairs of the Senate; and
                            (ii) the Committee on Oversight and 
                        Government Reform of the House of 
                        Representatives.
                    (B) Limitations.--The strategic plan submitted 
                under subparagraph (A) shall be consistent with public 
                interest and demand.
                    (C) Cost savings projections.--The strategic plan 
                submitted under subparagraph (A) shall include, for 
                each proposed interagency agreement, a projection of 
                cost savings to be realized by the Postal Service and 
                by any other Federal agency that is a party to the 
                agreement.
    (j) Termination of the Commission.--The Advisory Commission shall 
terminate on the earlier of--
            (1) the date that is 60 days after the later of--
                    (A) the date on which the Advisory Commission 
                submits the report on the strategic blueprint for long-
                term solvency under subsection (h); or
                    (B) the date on which the Advisory Commission 
                submits the findings on interagency agreements for post 
                offices under subsection (i); or
            (2) the date that is 1 year after the date of enactment.
    (k) Authorization of Appropriations.--There are authorized to be 
appropriated out of the Postal Service Fund a total of not more than 
$3,000,000 for fiscal years 2014 and 2015.

SEC. 403. LONG-TERM SOLVENCY PLAN; ANNUAL FINANCIAL PLAN AND BUDGET.

    (a) Definitions.--In this section--
            (1) the term ``Board of Governors'' means the Board of 
        Governors of the Postal Service;
            (2) the term ``long-term solvency plan'' means the plan 
        required to be submitted by the Postmaster General under 
        subsection (b)(1); and
            (3) the term ``solvency'' means the ability of the Postal 
        Service to pay debts and meet expenses, including the ability 
        to perform maintenance and repairs, make investments, and 
        maintain financial reserves, as necessary to fulfill the 
        requirements under, and comply with the policies of, title 39, 
        United States Code, and other obligations of the Postal 
        Service.
    (b) Plan for the Long-term Solvency of the Postal Service.--
            (1) Solvency plan required.--
                    (A) In general.--Not later than the date described 
                in subparagraph (B), the Postmaster General shall 
                submit to the Board of Governors a plan describing the 
                actions the Postal Service intends to take to achieve 
                long-term solvency.
                    (B) Date.--The date described in this subparagraph 
                is the later of--
                            (i) the date that is 90 days after the date 
                        of enactment of this Act; and
                            (ii) the earliest date as of which the 
                        Board of Governors has the number of members 
                        required for a quorum.
            (2) Considerations.--The long-term solvency plan shall take 
        into account--
                    (A) the legal authority of the Postal Service;
                    (B) changes in the legal authority and 
                responsibilities of the Postal Service under this Act 
                and the amendments made by this Act;
                    (C) any cost savings that the Postal Service 
                anticipates will be achieved through negotiations with 
                employees of the Postal Service;
                    (D) projected changes in mail volume;
                    (E) the impact of any regulations that the Postal 
                Service is required to promulgate under Federal law;
                    (F) projected changes in the number of employees 
                needed to carry out the responsibilities of the Postal 
                Service; and
                    (G) the long-term capital needs of the Postal 
                Service, including the need to maintain, repair, and 
                replace facilities and equipment.
            (3) Review and submission to congress.--
                    (A) Review.--Upon receipt of the long-term solvency 
                plan, the Board of Governors shall review the long-term 
                solvency plan and may request that the Postmaster 
                General make changes to the long-term solvency plan.
                    (B) Submission to congress.--Not later than 60 days 
                after initial receipt of the long-term solvency plan, 
                the Board of Governors shall provide a copy of the 
                long-term solvency plan to the Committee on Homeland 
                Security and Governmental Affairs of the Senate and the 
                Committee on Oversight and Government Reform of the 
                House of Representatives, together with a letter 
                indicating whether and in what respects the Board of 
                Governors agrees or disagrees with the measures set out 
                in the long-term solvency plan.
            (4) Updates.--
                    (A) Annual updates required.--The Postmaster 
                General shall update and submit to the Board of 
                Governors the long-term solvency plan not less 
                frequently than annually for 5 years after the date of 
                enactment of this Act.
                    (B) Review by board of governors.--The Board of 
                Governors shall review and submit to Congress the 
                updates under this paragraph in accordance with 
                paragraph (3).
    (c) Annual Financial Plan and Budget.--
            (1) In general.--For each of the first 5 full fiscal years 
        after the date of enactment of this Act, not later than August 
        1 of the preceding fiscal year, the Postmaster General shall 
        submit to the Board of Governors a financial plan and budget 
        for the fiscal year that is consistent with the goal of 
        achieving the long-term solvency of the Postal Service.
            (2) Contents of financial plan and budget.--The financial 
        plan and budget for a fiscal year shall--
                    (A) promote the financial stability of the Postal 
                Service and provide for progress towards the long-term 
                solvency of the Postal Service;
                    (B) include the annual budget program of the Postal 
                Service under section 2009 of title 39, United States 
                Code, and the plan of the Postal Service commonly 
                referred to as the ``Integrated Financial Plan'';
                    (C) describe lump-sum expenditures by all 
                categories traditionally used by the Postal Service;
                    (D) describe capital expenditures, together with a 
                schedule of projected capital commitments and cash 
                outlays of the Postal Service, and proposed sources of 
                funding;
                    (E) contain estimates of overall debt (both 
                outstanding and expected to be incurred);
                    (F) contain cash flow and liquidity forecasts for 
                the Postal Service at such intervals as the Board of 
                Governors may require;
                    (G) include a statement describing methods of 
                estimations and significant assumptions; and
                    (H) address any other issues that the Board of 
                Governors considers appropriate.
            (3) Process for submission and approval of financial plan 
        and budget.--
                    (A) Definition.--In this paragraph, the term 
                ``covered recipient'' means--
                            (i) the Postmaster General;
                            (ii) the President;
                            (iii) the Committee on Homeland Security 
                        and Governmental Affairs of the Senate; and
                            (iv) the Committee on Oversight and 
                        Government Reform of the House of 
                        Representatives.
                    (B) Review by the board of governors.--
                            (i) In general.--Upon receipt of a 
                        financial plan and budget under paragraph (1), 
                        the Board of Governors shall promptly review 
                        the financial plan and budget.
                            (ii) Additional information.--In conducting 
                        the review under this subparagraph, the Board 
                        of Governors may request any additional 
                        information it considers necessary and 
                        appropriate to carry out the duties of the 
                        Board of Governors.
                    (C) Approval of financial plan and budget submitted 
                by the postmaster general.--If the Board of Governors 
                determines that the financial plan and budget for a 
                fiscal year received under paragraph (1) meets the 
                requirements under paragraph (2) and otherwise 
                adequately addresses the financial situation of the 
                Postal Service--
                            (i) the Board of Governors shall approve 
                        the financial plan and budget and submit a 
                        notice of approval to each covered recipient; 
                        and
                            (ii) the Postmaster General shall submit 
                        the annual budget program for the relevant 
                        fiscal year to the Office of Management and 
                        Budget in accordance with section 2009 of title 
                        39, United States Code.
                    (D) Disapproval of financial plan and budget 
                submitted by the postmaster general.--
                            (i) In general.--If the Board of Governors 
                        determines that the financial plan and budget 
                        for a fiscal year under paragraph (1) does not 
                        meet the requirements under paragraph (2) or is 
                        otherwise inadequate in addressing the 
                        financial situation of the Postal Service, the 
                        Board of Governors shall--
                                    (I) disapprove the financial plan 
                                and budget;
                                    (II) submit to each covered 
                                recipient a statement that describes 
                                the reasons for the disapproval;
                                    (III) direct the Postmaster General 
                                to appropriately revise the financial 
                                plan and budget for the Postal Service; 
                                and
                                    (IV) submit the revised financial 
                                plan and budget to each covered 
                                recipient.
                            (ii) Submission to office of management and 
                        budget.--Upon receipt of a revised financial 
                        plan and budget under clause (i)(IV), the 
                        Postmaster General shall submit the annual 
                        budget program for the relevant fiscal year to 
                        the Office of Management and Budget in 
                        accordance with section 2009 of title 39, 
                        United States Code.
                    (E) Deadline for transmission of financial plan and 
                budget by board of governors.--Notwithstanding any 
                other provision of this paragraph, not later than 
                September 30 of the fiscal year that precedes each 
                fiscal year for which a financial plan and budget is 
                required under paragraph (1), the Board of Governors 
                shall submit to each covered recipient--
                            (i) a notice of approval under subparagraph 
                        (C)(i); or
                            (ii) an approved financial plan and budget 
                        for the fiscal year under subparagraph 
                        (D)(i)(IV).
                    (F) Revisions to financial plan and budget.--
                            (i) Permitting postmaster general to submit 
                        revisions.--The Postmaster General may submit 
                        proposed revisions to the financial plan and 
                        budget for a fiscal year to the Board of 
                        Governors at any time during that fiscal year.
                            (ii) Process for review, approval, 
                        disapproval, and postmaster general action.--
                        The procedures described in subparagraphs (B) 
                        through (E) shall apply with respect to a 
                        proposed revision to a financial plan and 
                        budget in the same manner as such procedures 
                        apply with respect to the original financial 
                        plan and budget.
    (d) Assumptions Based on Current Law.--In preparing the long-term 
solvency plan or an annual financial plan and budget required under 
this section, the Postal Service shall base estimates of revenues and 
expenditures on Federal law as in effect at the time of the preparation 
of the long-term solvency plan or the financial plan and budget.

SEC. 404. CHIEF INNOVATION OFFICER; INNOVATION STRATEGY.

    (a) Chief Innovation Officer.--
            (1) In general.--Chapter 2 of title 39, United States Code, 
        is amended by adding at the end the following:
``Sec. 209. Chief innovation officer
    ``(a) Establishment.--There shall be in the Postal Service a Chief 
Innovation Officer appointed by the Postmaster General.
    ``(b) Qualifications.--The Chief Innovation Officer shall have 
proven expertise and a record of accomplishment in areas such as--
            ``(1) the postal and shipping industry;
            ``(2) innovative product research and development;
            ``(3) brand marketing strategy;
            ``(4) new and emerging technology, including communications 
        technology; or
            ``(5) business process management.
    ``(c) Duties.--The Chief Innovation Officer shall lead the 
development and implementation of--
            ``(1) innovative postal products and services, particularly 
        products and services that use new and emerging technology, 
        including communications technology, to improve the net 
        financial position of the Postal Service; and
            ``(2) nonpostal services authorized under section 404(a)(6) 
        that have the potential to improve the net financial position 
        of the Postal Service.
    ``(d) Deadline.--The Postmaster General shall appoint a Chief 
Innovation Officer not later than 90 days after the date of enactment 
of the Postal Reform Act of 2014.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 2 of title 39, United States Code, is 
        amended by adding at the end the following:

``209. Chief Innovation Officer.''.
    (b) Innovation Strategy.--
            (1) Initial report on innovation strategy.--
                    (A) In general.--Not later than 9 months after the 
                date of enactment of this Act, the Postmaster General, 
                acting through the Chief Innovation Officer, shall 
                submit a report that contains a comprehensive strategy 
                (referred to in this subsection as the ``innovation 
                strategy'') for improving the net financial position of 
                the Postal Service through innovation, including the 
                offering of new postal and nonpostal services, to--
                            (i) the Committee on Homeland Security and 
                        Governmental Affairs of the Senate; and
                            (ii) the Committee on Oversight and 
                        Government Reform of the House of 
                        Representatives.
                    (B) Matters to be addressed.--At a minimum, the 
                report on innovation strategy required under 
                subparagraph (A) shall describe--
                            (i) the specific innovative postal and 
                        nonpostal services to be developed and offered 
                        by the Postal Service, including--
                                    (I) the nature of the market demand 
                                to be satisfied by each product or 
                                service; and
                                    (II) the estimated date by which 
                                each product or service will be 
                                introduced;
                            (ii) the cost of developing and offering 
                        each product or service;
                            (iii) the anticipated sales volume for each 
                        product or service;
                            (iv) the anticipated revenues and profits 
                        to be generated by each product or service;
                            (v) the likelihood of success of each 
                        product or service and the risks associated 
                        with the development and sale of each product 
                        or service;
                            (vi) the trends anticipated in market 
                        conditions that may affect the success of each 
                        product or service during the 5-year period 
                        beginning on the date of the submission of the 
                        report under subparagraph (A);
                            (vii) any innovations designed to improve 
                        the net financial position of the Postal 
                        Service, other than the offering of new 
                        products and services; and
                            (viii) the metrics that will be used to 
                        assess the effectiveness of the innovation 
                        strategy.
            (2) Annual report.--
                    (A) In general.--Not later than 1 year after the 
                date of the submission of the initial report containing 
                the innovation strategy under paragraph (1), and 
                annually thereafter for 10 years, the Postmaster 
                General, acting through the Chief Innovation Officer, 
                shall submit a report on the implementation of the 
                innovation strategy to--
                            (i) the Committee on Homeland Security and 
                        Governmental Affairs of the Senate; and
                            (ii) the Committee on Oversight and 
                        Government Reform of the House of 
                        Representatives.
                    (B) Matters to be addressed.--At a minimum, an 
                annual report submitted under subparagraph (A) shall 
                include--
                            (i) an update of the initial report on 
                        innovation strategy submitted under paragraph 
                        (1);
                            (ii) a description of the progress made by 
                        the Postal Service in implementing the 
                        products, services, and other innovations 
                        described in the initial report on innovation 
                        strategy; and
                            (iii) an analysis of the performance of 
                        each product, service, or other innovation 
                        described in the initial report on innovation 
                        strategy, including--
                                    (I) the revenue generated by each 
                                product or service developed in 
                                accordance with the innovation strategy 
                                under this section and the cost of 
                                developing and offering each product or 
                                service for the preceding year;
                                    (II) trends in each market in which 
                                a product or service is intended to 
                                satisfy a demand;
                                    (III) each product or service 
                                identified in the innovation strategy 
                                that is to be discontinued, the date on 
                                which each discontinuance will occur, 
                                and the reasons for each 
                                discontinuance;
                                    (IV) each alteration that the 
                                Postal Service plans to make to a 
                                product or service identified in the 
                                innovation strategy to address changing 
                                market conditions and an explanation of 
                                how each alteration will ensure the 
                                success of the product or service;
                                    (V) the performance of innovations 
                                other than new products and services 
                                that are designed to improve the net 
                                financial position of the Postal 
                                Service; and
                                    (VI) the performance of the 
                                innovation strategy according to the 
                                metrics described in paragraph 
                                (1)(B)(viii).

SEC. 405. AREA AND DISTRICT OFFICE STRUCTURE.

    (a) Definitions.--In this section--
            (1) the term ``area office'' means the central office of an 
        administrative field unit with responsibility for postal 
        operations in a designated geographic area that is comprised of 
        district offices;
            (2) the term ``district office'' means the central office 
        of an administrative field unit with responsibility for postal 
        operations in a designated geographic area (as defined under 
        regulations, directives, or other guidance of the Postal 
        Service, as in effect on January 1, 2013); and
            (3) the term ``State'' includes the District of Columbia, 
        the Commonwealth of Puerto Rico, the United States Virgin 
        Islands, Guam, American Samoa, the Commonwealth of the Northern 
        Mariana Islands, and any other territory or possession of the 
        United States.
    (b) Plan Required.--Not later than 1 year after the date of 
enactment of this Act, the Postal Service shall submit to the Committee 
on Homeland Security and Governmental Affairs of the Senate and the 
Committee on Oversight and Government Reform of the House of 
Representatives a comprehensive strategic plan for an area office and 
district office structure that will--
            (1) be efficient and cost effective;
            (2) not substantially and adversely affect the operations 
        of the Postal Service; and
            (3) reduce the total number of area and district offices.
    (c) Implementation.--Not later than 60 days after the date on which 
the Postal Service submits the plan under subsection (b), the Postal 
Service shall begin implementing the plan, including, where 
appropriate, by consolidating area and district offices.
    (d) State Liaison.--If the Postal Service does not maintain a 
district office in a State, the Postal Service shall designate at least 
1 employee of the district office responsible for Postal Service 
operations in the State to represent the needs of Postal Service 
customers in the State. An employee designated under this subsection to 
represent the needs of Postal Service customers in a State shall be 
located in that State.

SEC. 406. INSPECTOR GENERAL OF THE POSTAL SERVICE.

    (a) Appointment of Inspector General of the Postal Service by 
President.--The Inspector General Act of 1978 (5 U.S.C. App.) is 
amended--
            (1) in section 8G--
                    (A) in subsection (a)--
                            (i) in paragraph (2), by striking ``the 
                        Postal Regulatory Commission, and the United 
                        States Postal Service'' and inserting ``and the 
                        Postal Regulatory Commission'';
                            (ii) in paragraph (3), by striking 
                        ``subsection (h)(1)'' and inserting 
                        ``subsection (g)(1)''; and
                            (iii) in paragraph (4)--
                                    (I) in the matter preceding 
                                subparagraph (A), by striking 
                                ``subsection (h)(1)'' and inserting 
                                ``subsection (g)(1)'';
                                    (II) by striking subparagraph (B); 
                                and
                                    (III) by redesignating 
                                subparagraphs (C) through (H) as 
                                subparagraphs (B) through (G), 
                                respectively;
                    (B) in subsection (c), by striking ``Except as 
                provided under subsection (f) of this section, the'' 
                and inserting ``The'';
                    (C) by striking subsection (f); and
                    (D) by redesignating subsections (g) and (h) as 
                subsections (f) and (g), respectively;
            (2) by inserting after section 8M the following:

``SEC. 8N. SPECIAL PROVISIONS CONCERNING THE INSPECTOR GENERAL OF THE 
              UNITED STATES POSTAL SERVICE.

    ``(a) In this section--
            ``(1) the term `Governors' has the meaning given that term 
        in section 102(3) of title 39, United States Code; and
            ``(2) the term `Inspector General' means the Inspector 
        General of the United States Postal Service.
    ``(b) In carrying out the duties and responsibilities specified in 
this Act, the Inspector General shall have oversight responsibility for 
all activities of the Postal Inspection Service, including any internal 
investigation performed by the Postal Inspection Service. The Chief 
Postal Inspector shall promptly report the significant activities being 
carried out by the Postal Inspection Service to the Inspector General.
    ``(c)(1)(A) The Inspector General shall be under the authority, 
direction, and control of the Governors with respect to audits or 
investigations, or the issuance of subpoenas, which require access to 
sensitive information concerning--
            ``(i) ongoing civil or criminal investigations or 
        proceedings;
            ``(ii) undercover operations;
            ``(iii) the identity of confidential sources, including 
        protected witnesses;
            ``(iv) intelligence or counterintelligence matters; or
            ``(v) other matters the disclosure of which would 
        constitute a serious threat to national security.
    ``(B) With respect to the information described under subparagraph 
(A), the Governors may prohibit the Inspector General from carrying out 
or completing any audit or investigation, or from issuing any subpoena, 
after the Inspector General has decided to initiate, carry out, or 
complete such audit or investigation or to issue such subpoena, if the 
Governors determine that such prohibition is necessary to prevent the 
disclosure of any information described under subparagraph (A) or to 
prevent the significant impairment to the national interests of the 
United States.
    ``(C) If the Governors exercise any power under subparagraph (A) or 
(B), the Governors shall notify the Inspector General in writing of the 
reasons for the exercise of such power. Not later than 30 days after 
receipt of any such notice, the Inspector General shall transmit a copy 
of the notice to the Committee on Homeland Security and Governmental 
Affairs of the Senate and the Committee on Oversight and Government 
Reform of the House of Representatives, and to other appropriate 
committees or subcommittees of the Congress.
    ``(2) In carrying out the duties and responsibilities specified in 
this Act, the Inspector General--
            ``(A) may initiate, conduct, and supervise such audits and 
        investigations of the United States Postal Service as the 
        Inspector General considers appropriate; and
            ``(B) shall give particular regard to the activities of the 
        Postal Inspection Service with a view toward avoiding 
        duplication and ensuring effective coordination and 
        cooperation.
    ``(3) Any report required to be transmitted by the Governors to the 
appropriate committees or subcommittees of the Congress under section 
5(d) shall also be transmitted, within the 7-day period specified under 
that section, to the Committee on Homeland Security and Governmental 
Affairs of the Senate and the Committee on Oversight and Government 
Reform of the House of Representatives.
    ``(d) Nothing in this Act shall restrict, eliminate, or otherwise 
adversely affect any of the rights, privileges, or benefits of either 
employees of the United States Postal Service, or labor organizations 
representing employees of the United States Postal Service, under 
chapter 12 of title 39, United States Code, the National Labor 
Relations Act (29 U.S.C. 151 et seq.), any handbook or manual affecting 
employee labor relations with the United States Postal Service, or any 
collective bargaining agreement.
    ``(e) There are authorized to be appropriated, out of the Postal 
Service Fund, such sums as may be necessary for the Office of Inspector 
General of the United States Postal Service.''; and
            (3) in section 12--
                    (A) in paragraph (1), by striking ``or the Director 
                of the National Reconnaissance Office'' and inserting 
                ``the Director of the National Reconnaissance Office; 
                or the Board of Governors of the United States Postal 
                Service''; and
                    (B) in paragraph (2), by striking ``or the National 
                Reconnaissance Office'' and inserting ``the National 
                Reconnaissance Office, or the United States Postal 
                Service''.
    (b) Technical and Conforming Amendments.--Title 39, United States 
Code, is amended--
            (1) in section 102(4), by striking ``section 202(e) of this 
        title'' and inserting ``section 3 of the Inspector General Act 
        of 1978 (5 U.S.C. App.)'';
            (2) in section 1001(b), in the first sentence, by inserting 
        ``, and section 3 of the Inspector General Act of 1978 (5 
        U.S.C. App.)'' after ``1001(c) of this title''; and
            (3) in section 1005(a)(3), by inserting ``, and section 3 
        of the Inspector General Act of 1978 (5 U.S.C. App.)'' after 
        ``1001(c) of this title''.
    (c) Applicability.--
            (1) In general.--The amendments made by this section shall 
        apply with respect to the first individual appointed as 
        Inspector General of the Postal Service after the date of 
        enactment of this Act.
            (2) Rule of construction.--Nothing in this Act may be 
        construed to alter the authority or the length of the term of 
        the individual serving as Inspector General of the Postal 
        Service on the date of enactment of this Act.

SEC. 407. POSTAL REGULATORY COMMISSION.

    (a) Commissioners.--Section 502 of title 39, United States Code, is 
amended--
            (1) in subsection (c), by striking ``subsection (f)'' and 
        inserting ``subsections (f) and (g)''; and
            (2) by adding at the end the following:
    ``(g) The Commissioners may serve for not more than 2 full 
terms.''.
    (b) Administration.--Section 504 of title 39, United States Code, 
is amended--
            (1) in subsection (a), in the second sentence--
                    (A) by striking ``The Chairman'' and inserting 
                ``Subject to the policies adopted under subsection (b), 
                the Chairman''; and
                    (B) by striking ``all the executive'' and inserting 
                ``the day-to-day executive'';
            (2) by amending subsection (b) to read as follows:
    ``(b)(1) The Chairman shall be governed by the policies adopted by 
the Commission under paragraph (2)(A) in carrying out any of the 
functions under this section.
    ``(2) The Commission shall adopt, by a vote of the majority of the 
members of the Commission, policies that shall govern all functions of 
the Commission, including the finances, operations, and administration 
of the Commission.
    ``(3) The Commission shall review and, if necessary, revise the 
policies adopted under paragraph (2) not less frequently than every 4 
years. Adoption of revised policies, or re-adoption of existing 
policies, shall be by a vote of the majority of the members of the 
Commission.''; and
            (3) in subsection (c), by striking ``The Chairman'' and 
        inserting ``Subject to the policies adopted under subsection 
        (b), the Chairman''.

SEC. 408. POSTAL SERVICE CONTRACTS AND CONGRESSIONAL OVERSIGHT 
              AUTHORITY.

    (a) In General.--Chapter 4 of title 39, United States Code, is 
amended by adding at the end the following:
``Sec. 417. Postal Service contracts and congressional oversight 
              authority
    ``The Postal Service may not enter into any contract that restricts 
the ability of Congress to exercise oversight authority.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 4 of title 39, United States Code, is amended by adding at the 
end the following:

``417. Postal Service contracts and congressional oversight 
                            authority.''.

              TITLE V--FEDERAL EMPLOYEES' COMPENSATION ACT

SEC. 501. SHORT TITLE; REFERENCES.

    (a) Short Title.--This title may be cited as the ``Workers' 
Compensation Reform Act of 2014''.
    (b) References.--Except as otherwise expressly provided, whenever 
in this title an amendment or repeal is expressed in terms of an 
amendment to, or a repeal of, a section or other provision, the 
reference shall be considered to be made to a section or other 
provision of title 5, United States Code.

SEC. 502. FEDERAL WORKERS COMPENSATION REFORMS FOR RETIREMENT-AGE 
              EMPLOYEES.

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

SEC. 503. AUGMENTED COMPENSATION FOR DEPENDENTS.

    (a) In General.--Section 8110 is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following:
    ``(b) Termination of Augmented Compensation.--
            ``(1) In general.--Subject to paragraph (2), augmented 
        compensation for dependants under subsection (c) shall not be 
        provided.
            ``(2) Exceptions.--
                    ``(A) Total disability.--For a covered claim for 
                total disability by an employee--
                            ``(i) the employee shall receive augmented 
                        compensation under subsection (c) if the 
                        employee is an individual who has an exempt 
                        disability condition; and
                            ``(ii) the employee shall receive augmented 
                        compensation under subsection (c) until the 
                        date that is 3 years after the date of 
                        enactment of the Workers' Compensation Reform 
                        Act of 2014 if the employee is not an employee 
                        described in clause (i).
                    ``(B) Partial disability.--For a covered claim for 
                partial disability by an employee, the employee shall 
                receive augmented compensation under subsection (c) 
                until the date that is 3 years after the date of 
                enactment of the Workers' Compensation Reform Act of 
                2014.
                    ``(C) Permanent disability compensated by a 
                schedule.--For a claim for a permanent disability 
                described in section 8107(a) by an employee that 
                commenced before the date of enactment of the Workers' 
                Compensation Reform Act of 2014, the employee shall 
                receive augmented compensation under subsection (c).''.
    (b) Maximum and Minimum Monthly Payments.--Section 8112 is 
amended--
            (1) in subsection (a)--
                    (A) by inserting ``subsections (b) and (c) and'' 
                before ``section 8138'';
                    (B) by striking ``including augmented compensation 
                under section 8110 of this title but''; and
                    (C) by striking ``75 percent'' each place it 
                appears and inserting ``66 \2/3\ percent'';
            (2) by redesignating subsection (b) as subsection (c);
            (3) by inserting after subsection (a) the following:
    ``(b) Exceptions.--
            ``(1) Covered disability condition.--For a covered claim 
        for total disability by an employee, if the employee is an 
        individual who has an exempt disability condition--
                    ``(A) the monthly rate of compensation for 
                disability that is subject to the maximum and minimum 
                monthly amounts under subsection (a) shall include any 
                augmented compensation under section 8110; and
                    ``(B) subsection (a) shall be applied by 
                substituting `75 percent' for `66 \2/3\ percent' each 
                place it appears.
            ``(2) Partial disability.--For a covered claim for partial 
        disability by an employee, until the date that is 3 years after 
        the date of enactment of the Workers' Compensation Reform Act 
        of 2014--
                    ``(A) the monthly rate of compensation for 
                disability that is subject to the maximum and minimum 
                monthly amounts under subsection (a) shall include any 
                augmented compensation under section 8110; and
                    ``(B) subsection (a) shall be applied by 
                substituting `75 percent' for `66 \2/3\ percent' each 
                place it appears.''; and
            (4) in subsection (c), as redesignated by paragraph (2), by 
        striking ``subsection (a)'' and inserting ``subsections (a) and 
        (b)''.
    (c) Death Benefits Generally.--Section 8133 is amended--
            (1) in subsections (a) and (e), by striking ``75 percent'' 
        each place it appears and inserting ``66 \2/3\ percent (except 
        as provided in subsection (g))''; and
            (2) by adding at the end the following:
    ``(g) If the death occurred before the date of enactment of the 
Workers' Compensation Reform Act of 2014, subsections (a) and (e) shall 
be applied by substituting `75 percent' for `66 \2/3\ percent' each 
place it appears.''.
    (d) Death Benefits for Civil Air Patrol Volunteers.--Section 8141 
is amended--
            (1) in subsection (b)(2)(B) by striking ``75 percent'' and 
        inserting ``66 \2/3\ percent (except as provided in subsection 
        (c))'';
            (2) by redesignating subsection (c) as subsection (d); and
            (3) by inserting after subsection (b) the following:
    ``(c) If the death occurred before the date of enactment of the 
Workers' Compensation Reform Act of 2014, subsection (b)(2)(B) shall be 
applied by substituting `75 percent' for `66 \2/3\ percent'.''.

SEC. 504. SCHEDULE COMPENSATION PAYMENTS.

    Section 8107 is amended--
            (1) in subsection (a), by striking ``at the rate of 66 \2/
        3\ percent of his monthly pay'' and inserting ``at the rate 
        specified under subsection (d)''; and
            (2) by adding at the end the following:
    ``(d) Rate for Compensation.--
            ``(1) Annual salary.--
                    ``(A) In general.--Except as provided in paragraph 
                (2), the rate under subsection (a) shall be the rate of 
                66 \2/3\ percent of the annual salary level established 
                under subparagraph (B), in a lump sum equal to the 
                present value (as calculated under subparagraph (C)) of 
                the amount of compensation payable under the schedule.
                    ``(B) Establishment.--
                            ``(i) In general.--The Secretary of Labor 
                        shall establish an annual salary for purposes 
                        of subparagraph (A) in the amount the Secretary 
                        determines will result in the aggregate cost of 
                        payments made under this section being equal to 
                        what would have been the aggregate cost of 
                        payments under this section if the amendments 
                        made by section 504 of the Workers' 
                        Compensation Reform Act of 2014 had not been 
                        enacted.
                            ``(ii) Cost of living adjustment.--The 
                        annual salary established under clause (i) 
                        shall be increased on March 1 of each year by 
                        the amount determined by the Secretary of Labor 
                        to represent the percent change in the price 
                        index published for December of the preceding 
                        year over the price index published for the 
                        December of the year prior to the preceding 
                        year, adjusted to the nearest one-tenth of 1 
                        percent.
                    ``(C) Present value.--The Secretary of Labor shall 
                calculate the present value for purposes of 
                subparagraph (A) using a rate of interest equal to the 
                average market yield for outstanding marketable 
                obligations of the United States with a maturity of 2 
                years on the first business day of the month in which 
                the compensation is paid or, in the event that such 
                marketable obligations are not being issued on such 
                date, at an equivalent rate selected by the Secretary 
                of Labor, true discount compounded annually.
            ``(2) Certain injuries.--For an injury that occurred before 
        the date of enactment of the Workers' Compensation Reform Act 
        of 2014, the rate under subsection (a) shall be 66 \2/3\ 
        percent of the employee's monthly pay.
    ``(e) Simultaneous Receipt.--
            ``(1) Total disability.--An employee who receives 
        compensation for total disability under section 8105 may only 
        receive the lump sum of schedule compensation under this 
        section in addition to and simultaneously with the benefits for 
        total disability after the earlier of--
                    ``(A) the date on which the basic compensation for 
                total disability of the employee becomes 50 percent of 
                the monthly pay of the employee under section 8105(b); 
                or
                    ``(B) the date on which augmented compensation of 
                the employee terminates under section 
                8110(b)(2)(A)(ii), if the employee receives such 
                compensation.
            ``(2) Partial disability.--An employee who receives 
        benefits for partial disability under section 8106 may only 
        receive the lump sum of schedule compensation under this 
        section in addition to and simultaneously with the benefits for 
        partial disability after the earlier of--
                    ``(A) the date on which the basic compensation for 
                partial disability of the employee becomes 50 percent 
                of the difference between the monthly pay of the 
                employee and the monthly wage-earning capacity of the 
                employee after the beginning of the partial disability 
                under section 8106(b); or
                    ``(B) the date on which augmented compensation of 
                the employee terminates under section 8110(b)(2)(B), if 
                the employee receives such compensation.''.

SEC. 505. VOCATIONAL REHABILITATION.

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

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

SEC. 506. REPORTING REQUIREMENTS.

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

``8106a. Reporting requirements.''.

SEC. 507. DISABILITY MANAGEMENT REVIEW; INDEPENDENT MEDICAL 
              EXAMINATIONS.

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

SEC. 508. WAITING PERIOD.

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

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

SEC. 509. ELECTION OF BENEFITS.

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

SEC. 510. SANCTION FOR NONCOOPERATION WITH FIELD NURSES.

    Section 8123, as amended by section 507, is amended by adding at 
the end the following:
    ``(f) Field Nurses.--
            ``(1) Definition.--In this subsection, the term `field 
        nurse' means a registered nurse that assists the Secretary in 
        the medical management of disability claims under this 
        subchapter and provides claimants with assistance in 
        coordinating medical care.
            ``(2) Authorization.--The Secretary may use field nurses to 
        coordinate medical services and vocational rehabilitation 
        programs for injured employees under this subchapter. If an 
        employee refuses to cooperate with a field nurse or obstructs a 
        field nurse in the performance of duties under this subchapter, 
        the right to compensation under this subchapter shall be 
        suspended until the refusal or obstruction stops.''.

SEC. 511. SUBROGATION OF CONTINUATION OF PAY.

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

SEC. 512. INTEGRITY AND COMPLIANCE.

    (a) In General.--Subchapter I of chapter 81 is amended by adding at 
the end the following:
``Sec. 8153. Integrity and Compliance Program
    ``(a) Definitions.--In this section--
            ``(1) the term `FECA program' means the Federal Employees 
        Compensation Program administered under this subchapter;
            ``(2) the term `improper payment' has the meaning given 
        that term in section 2(g) of the Improper Payments Information 
        Act of 2002 (31 U.S.C. 3321 note);
            ``(3) the term `Inspector General'--
                    ``(A) means an Inspector General described in 
                subparagraph (A), (B), or (I) of section 11(b)(1) of 
                the Inspector General Act of 1978 (5 U.S.C. App.); and
                    ``(B) does not include the Inspector General of an 
                entity having no employees covered under the FECA 
                program;
            ``(4) the term `Integrity and Compliance Program' means the 
        Integrity and Compliance Program established under subsection 
        (b);
            ``(5) the term `provider' means a provider of medical or 
        other services under the FECA program;
            ``(6) the term `Secretary' means the Secretary of Labor; 
        and
            ``(7) the term `Task Force' means the FECA Integrity and 
        Compliance Task Force established under subsection (c)(2)(A).
    ``(b) Integrity and Compliance Program.--Not later than 270 days 
after the date of enactment of this section, the Secretary shall 
establish an Integrity and Compliance Program for the purpose of 
preventing, identifying, and recovering fraudulent and other improper 
payments for the FECA program, which shall include--
            ``(1) procedures for identifying potentially improper 
        payments before payment is made to claimants and providers, 
        including, where appropriate, predictive analytics;
            ``(2) reviews after payment is made to identify potentially 
        improper payments to claimants and providers;
            ``(3) ongoing screening and verification procedures to 
        ensure the continued eligibility of medical providers to 
        provide services under the FECA program, including licensure, 
        Federal disbarment, and the existence of relevant criminal 
        convictions;
            ``(4) provision of appropriate information, education, and 
        training to claimants and providers on requirements to ensure 
        the integrity of the FECA program, including payments under the 
        FECA program;
            ``(5) appropriate controls and audits to ensure that 
        providers adopt internal controls and procedures for compliance 
        with requirements under the FECA program;
            ``(6) procedures to ensure--
                    ``(A) initial and continuing eligibility of 
                claimants for compensation, benefits, or services under 
                the FECA program; and
                    ``(B) ongoing verification of information in 
                databases relating to claimants to ensure accuracy and 
                completeness; and
            ``(7) sharing and accessing data and information with other 
        agencies and instrumentalities of the United States, including 
        the United States Postal Service.
    ``(c) Interagency Cooperation on Anti-Fraud Efforts.--
            ``(1) In general.--In administering the FECA program, 
        including the Integrity and Compliance Program, the Secretary 
        shall cooperate with other agencies and instrumentalities of 
        the United States (including the United States Postal Service) 
        and the Inspectors General of such agencies and 
        instrumentalities to prevent, identify, and recover fraudulent 
        and other improper payments under the FECA program.
            ``(2) Task force.--
                    ``(A) In general.--There is established a task 
                force, which shall be known as the FECA Integrity and 
                Compliance Task Force.
                    ``(B) Membership.--The members of the Task Force 
                shall be--
                            ``(i) the Secretary, who shall serve as the 
                        Chairperson of the Task Force;
                            ``(ii) the Postmaster General, who shall 
                        serve as the Vice Chairperson of the Task 
                        Force;
                            ``(iii) the Attorney General;
                            ``(iv) the Director of the Office of 
                        Management and Budget; and
                            ``(v) other appropriate Federal officials, 
                        as determined by the Chairperson and Vice 
                        Chairperson of the Task Force.
                    ``(C) Advisory members.--The following officials 
                shall attend meetings of the Task Force and participate 
                as ad hoc, advisory members, to provide technical 
                assistance and guidance to the Task Force with respect 
                to the duties of the Task Force:
                            ``(i) The Inspector General of the 
                        Department of Labor.
                            ``(ii) The Inspector General of the United 
                        States Postal Service.
                            ``(iii) The Inspectors General of other 
                        appropriate agencies and instrumentalities of 
                        the United States that employ a significant 
                        number of individuals receiving compensation, 
                        benefits, or services under the FECA program, 
                        as determined by the Chairperson of the Task 
                        Force.
                    ``(D) Duties.--The Task Force shall--
                            ``(i) set forth, in writing, a description 
                        of the respective roles and responsibilities in 
                        preventing, identifying, recovering, and 
                        prosecuting fraud under, and otherwise ensuring 
                        integrity and compliance of, the FECA program 
                        of--
                                    ``(I) the Secretary (including 
                                subordinate officials such as the 
                                Director of the Office of Workers' 
                                Compensation Programs);
                                    ``(II) the Inspector General of the 
                                Department of Labor;
                                    ``(III) the Inspectors General of 
                                agencies and instrumentalities of the 
                                United States that employ claimants 
                                under the FECA program;
                                    ``(IV) the Attorney General; and
                                    ``(V) any other relevant officials;
                            ``(ii) develop procedures for sharing 
                        information of possible fraud under the FECA 
                        program or other intentional misstatements by 
                        claimants or providers under the FECA program, 
                        including procedures addressing--
                                    ``(I) notification of appropriate 
                                officials of the Department of Labor of 
                                potential fraud or other intentional 
                                misstatements, including provision of 
                                supporting information;
                                    ``(II) timely and appropriate 
                                response by officials of the Department 
                                of Labor to notifications described in 
                                subclause (I);
                                    ``(III) the inclusion of 
                                information and evidence relating to 
                                fraud and other intentional 
                                misstatements in criminal, civil, and 
                                administrative proceedings relating to 
                                the provision of compensation, 
                                benefits, or medical services 
                                (including payments to providers) under 
                                the FECA program;
                                    ``(IV) the coordination of criminal 
                                investigations with the administration 
                                of the FECA program; and
                                    ``(V) the protection of information 
                                relating to an investigation of 
                                possible fraud under the FECA program 
                                from potential disclosure, including 
                                requirements that enable investigative 
                                files to be appropriately separated 
                                from case management files; and
                            ``(iii) not later than 1 year after the 
                        date of enactment of this section, submit to 
                        the Committee on Homeland Security and 
                        Governmental Affairs of the Senate and the 
                        Committee on Oversight and Government Reform 
                        and the Committee on Education and the 
                        Workforce of the House of Representatives a 
                        report that includes the description and 
                        procedures required under clauses (i) and (ii).
            ``(3) Rule of construction.--Nothing in this subsection 
        shall be construed to limit or restrict any authority of an 
        Inspector General.
    ``(d) Improvements to Access of Federal Databases.--
            ``(1) In general.--In order to improve compliance with the 
        requirements under and the integrity of the FECA program, or as 
        required to otherwise detect and prevent improper payments 
        under the FECA program (including for purposes of computer 
        matching under subsection (e)(1)(D)), upon written request--
                    ``(A) the Commissioner of Social Security shall 
                make available to the Secretary, the Postmaster 
                General, and each Inspector General the Social Security 
                earnings information of a living or deceased employee;
                    ``(B) the Director of the Office of Personnel 
                Management shall make available to the Secretary, the 
                Postmaster General, and each Inspector General the 
                information in the databases of Federal employees and 
                retirees maintained by the Director; and
                    ``(C) the Secretary of Veterans Affairs shall make 
                available to the Secretary, the Postmaster General, and 
                each Inspector General the information in the database 
                of disabled individuals maintained by the Secretary of 
                Veterans Affairs.
            ``(2) National directory of new hires.--Upon written 
        request, the Secretary of Health and Human Services shall make 
        available to the Secretary, the Postmaster General, each 
        Inspector General, and the Comptroller General of the United 
        States the information in the National Directory of New Hires 
        for purposes of carrying out this subchapter, in order to 
        improve compliance with the requirements under and the 
        integrity of the FECA program, or as required to otherwise 
        detect and prevent improper payments under the FECA program 
        (including for purposes of computer matching under subsection 
        (e)(1)(D)). The Comptroller General may obtain information from 
        the National Directory of New Hires for purposes of any audit, 
        evaluation, or investigation, including any audit, evaluation, 
        or investigation relating to program integrity.
            ``(3) Procedures.--The Secretary shall establish procedures 
        for correlating the identity and status of recipients of 
        compensation, benefits, or services under this subchapter with 
        Social Security earnings information described in paragraph 
        (1)(A).
            ``(4) Provision.--Information requested under this 
        subsection shall be provided--
                    ``(A) in a timely manner;
                    ``(B) at a reasonable cost to the Secretary, the 
                Postmaster General, or an Inspector General;
                    ``(C) without cost to the Comptroller General of 
                the United States; and
                    ``(D) in the manner, frequency, and form reasonably 
                specified by the officer making the request, which, 
                upon request, shall include electronic form.
            ``(5) Assessment of data cost-effectiveness.--
                    ``(A) In general.--The Secretary shall consider and 
                assess procedures for correlating the identity and 
                status of recipients of compensation, benefits, or 
                services under this subchapter with information 
                relating to employees, retirees, and individuals 
                described in subparagraphs (B) and (C) of paragraph (1) 
                and paragraph (2).
                    ``(B) Report.--Not later than 1 year after the date 
                of enactment of this section, the Secretary shall 
                submit to the Committee on Homeland Security and 
                Governmental Affairs of the Senate and the Committee on 
                Oversight and Government Reform and the Committee on 
                Education and the Workforce of the House of 
                Representatives a report on the cost-effectiveness of 
                the use of the databases described in subparagraphs (B) 
                and (C) of paragraph (1) and paragraph (2) for program 
                compliance and integrity. The report required under 
                this subparagraph may be included as part of the report 
                required under subsection (f).
            ``(6) United states postal service feca enrollee 
        database.--Not later than 180 days after the date of enactment 
        of this section, in order to track, verify, and communicate 
        with the Secretary and other relevant entities, the Postmaster 
        General shall establish an electronic database of information 
        relating to employees of the United States Postal Service who 
        have applied for or are receiving compensation, benefits, or 
        services under this subchapter.
            ``(7) Rule of construction.--Nothing in this subsection 
        shall be construed to limit the authority of the Comptroller 
        General of the United States under section 716 of title 31.
    ``(e) General Protocols and Security.--
            ``(1) Establishment.--
                    ``(A) In general.--In order to ensure strong 
                information security and privacy standards, the Task 
                Force shall establish protocols for the secure transfer 
                and storage of any information provided to an 
                individual or entity under this section.
                    ``(B) Considerations.--In establishing protocols 
                under subparagraph (A), the Task Force shall consider 
                any recommendations submitted to the Secretary by the 
                Inspector General of the Department of Health and Human 
                Services with respect to the secure transfer and 
                storage of information, and to comply with privacy laws 
                and best practices.
                    ``(C) Fraud case protection.--The Task Force shall 
                establish protocols and procedures to enable 
                information and materials relating to an active 
                investigation of possible fraud relating to the FECA 
                program to be appropriately kept separate from the 
                files for employees relating to the provision of 
                compensation, benefits, or services under the FECA 
                program.
                    ``(D) Computer matching by federal agencies for 
                purposes of investigation and prevention of improper 
                payments and fraud.--
                            ``(i) In general.--Except as provided in 
                        this subparagraph, in accordance with section 
                        552a (commonly known as the Privacy Act of 
                        1974), the Secretary, the Postmaster General, 
                        each Inspector General, and the head of each 
                        agency may enter into computer matching 
                        agreements that allow ongoing data matching 
                        (which shall include automated data matching) 
                        in order to assist in the detection and 
                        prevention of improper payments under the FECA 
                        program.
                            ``(ii) Review.--Not later than 60 days 
                        after a proposal for an agreement under clause 
                        (i) has been presented to a Data Integrity 
                        Board established under section 552a(u) for 
                        consideration, the Data Integrity Board shall 
                        approve or deny the agreement.
                            ``(iii) Termination date.--An agreement 
                        under clause (i)--
                                    ``(I) shall have a termination date 
                                of less than 3 years; and
                                    ``(II) during the 3-month period 
                                ending on the date on which the 
                                agreement is scheduled to terminate, 
                                may be renewed by the agencies entering 
                                the agreement for not more than 3 
                                years.
                            ``(iv) Multiple agencies.--For purposes of 
                        this subparagraph, section 552a(o)(1) shall be 
                        applied by substituting `between the source 
                        agency and the recipient agency or non-Federal 
                        agency or an agreement governing multiple 
                        agencies' for `between the source agency and 
                        the recipient agency or non-Federal agency' in 
                        the matter preceding subparagraph (A).
                            ``(v) Cost-benefit analysis.--An agreement 
                        under clause (i) may be entered without regard 
                        to section 552a(o)(1)(B), relating to a cost-
                        benefit analysis of the proposed matching 
                        program.
                            ``(vi) Guidance by the office of management 
                        and budget.--Not later than 6 months after the 
                        date of enactment of the Workers' Compensation 
                        Reform Act of 2014, and in consultation with 
                        the Council of Inspectors General on Integrity 
                        and Efficiency, the Secretary of Health and 
                        Human Services, the Commissioner of Social 
                        Security, and the head of any other relevant 
                        agency, the Director of the Office of 
                        Management and Budget shall--
                                    ``(I) issue guidance for agencies 
                                regarding implementing this 
                                subparagraph, which shall include 
                                standards for reimbursement costs, when 
                                necessary, between agencies; and
                                    ``(II) establish standards and 
                                develop standard matching agreements 
                                for the purpose of improving the 
                                process for establishing data use or 
                                computer matching agreements.
            ``(2) Compliance.--The Secretary, the Postmaster General, 
        and each Inspector General shall ensure that any information 
        provided to an individual or entity under this section is 
        provided in accordance with protocols established under 
        paragraph (1).
            ``(3) Rule of construction.--Nothing in this section shall 
        be construed to affect the rights of an individual under 
        section 552a(p).
    ``(f) Report.--Not later than 1 year after the date of enactment of 
this section, and annually thereafter for 5 years, the Secretary shall 
submit a report on the activities of the Secretary under this section, 
including implementation of the Integrity and Compliance Program, to--
            ``(1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate; and
            ``(2) the Committee on Oversight and Government Reform and 
        the Committee on Education and the Workforce of the House of 
        Representatives.
    ``(g) GAO Review.--The Comptroller General of the United States 
shall--
            ``(1) conduct periodic reviews of the Integrity and 
        Compliance Program; and
            ``(2) submit reports on the results of the reviews under 
        paragraph (1) to the Committee on Homeland Security and 
        Governmental Affairs of the Senate and the Committee on 
        Oversight and Government Reform and the Committee on Education 
        and the Workforce of the House of Representatives not later 
        than--
                    ``(A) 2 years after the date of enactment of this 
                section; and
                    ``(B) 3 years after submission of the report under 
                subparagraph (A).''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 81 is amended by inserting after the item relating to section 
8152 the following:

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

SEC. 513. AMOUNT OF COMPENSATION.

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

SEC. 514. TERRORISM INJURIES; ZONES OF ARMED CONFLICT.

    (a) Covering Terrorism Injuries.--Section 8102(b) is amended in the 
matter preceding paragraph (1)--
            (1) by inserting ``or from an attack by a terrorist or 
        terrorist organization, either known or unknown,'' after 
        ``force or individual,''; and
            (2) by striking ``outside'' and all that follows through 
        ``1979)'' and inserting ``outside of the United States''.
    (b) Continuation of Pay in a Zone of Armed Conflict.--Section 8118, 
as amended by section 508(b) of this Act, is amended--
            (1) in subsection (b), by striking ``Continuation'' and 
        inserting ``Except as provided under subsection (d)(2), 
        continuation'';
            (2) in subsection (c), as redesignated by section 508(b)(4) 
        of this Act, by striking ``subsection (a)'' and inserting 
        ``subsection (a) or (d)''; and
            (3) inserting before subsection (e) the following:
    ``(d) Continuation of Pay in a Zone of Armed Conflict.--
            ``(1) In general.--Notwithstanding subsection (a), the 
        United States shall authorize the continuation of pay of an 
        employee described in subparagraph (A), (C), (D), or (F) of 
        section 8101(1), who--
                    ``(A) files a claim for a period of wage loss due 
                to an injury in performance of duty in a zone of armed 
                conflict (as determined by the Secretary of Labor under 
                paragraph (3)); and
                    ``(B) files the claim for such wage loss benefit 
                with the immediate superior of the employee not later 
                than 45 days after the later of--
                            ``(i) the termination of the assignment of 
                        the employee to the zone of armed conflict; or
                            ``(ii) the return of the employee to the 
                        United States.
            ``(2) Continuation of pay.--Notwithstanding subsection (b), 
        continuation of pay under this subsection shall be furnished 
        for a period not to exceed 135 days without any break in time 
        or waiting period, unless controverted under regulations 
        prescribed by the Secretary of Labor.
            ``(3) Determination of zones of armed conflict.--For 
        purposes of this subsection, the Secretary of Labor, in 
        consultation with the Secretary of State and the Secretary of 
        Defense, shall determine whether a foreign country or other 
        foreign geographic area outside of the United States (as 
        defined in section 202(a)(7) of the State Department Basic 
        Authorities Act of 1956 (22 U.S.C. 4302(a)(7)) is a zone of 
        armed conflict based on whether--
                    ``(A) the Armed Forces of the United States are 
                involved in hostilities in the country or area;
                    ``(B) the incidence of civil insurrection, civil 
                war, terrorism, or wartime conditions threatens 
                physical harm or imminent danger to the health or well-
                being of United States civilian employees in the 
                country or area;
                    ``(C) the country or area has been designated a 
                combat zone by the President under section 112(c) of 
                the Internal Revenue Code of 1986;
                    ``(D) a contingency operation involving combat 
                operations directly affects civilian employees in the 
                country or area; or
                    ``(E) there exist other relevant conditions and 
                factors.''.

SEC. 515. TECHNICAL AND CONFORMING AMENDMENTS.

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

SEC. 516. REGULATIONS.

    (a) In General.--As soon as possible after the date of enactment of 
this Act, the Secretary of Labor shall promulgate regulations (which 
may include interim final regulations) to carry out this title.
    (b) Contents.--The regulations promulgated under subsection (a) 
shall include, for purposes of the amendments made by sections 502 and 
503, clarification of--
            (1) what is a claim; and
            (2) what is the date on which a period of disability, for 
        which a claim is made, commences.

SEC. 517. EFFECTIVE DATE.

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

 TITLE VI--PROPERTY MANAGEMENT AND EXPEDITED DISPOSAL OF REAL PROPERTY

SEC. 601. SHORT TITLE.

    This title may be cited as the ``Federal Real Property Asset 
Management Reform Act of 2014''.

SEC. 602. PURPOSE.

    The purpose of this title is to increase the efficiency and 
effectiveness of the Federal Government in managing real property by--
            (1) requiring agencies to maintain an up-to-date inventory 
        of real property;
            (2) establishing a Federal Real Property Council to develop 
        guidance on and ensure the implementation of strategies for 
        better managing Federal real property; and
            (3) authorizing a pilot program to expedite the disposal of 
        surplus real property.

SEC. 603. PROPERTY MANAGEMENT AND EXPEDITED DISPOSAL OF REAL PROPERTY.

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

 ``SUBCHAPTER VII--PROPERTY MANAGEMENT AND EXPEDITED DISPOSAL OF REAL 
                                PROPERTY

``Sec. 621. Definitions
    ``In this subchapter:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of General Services.
            ``(2) Council.--The term `Council' means the Federal Real 
        Property Council established by section 624(a).
            ``(3) Director.--The term `Director' means the Director of 
        the Office of Management and Budget.
            ``(4) Disposal.--The term `disposal' means any action that 
        constitutes the removal of any real property from the Federal 
        inventory, including sale, deed, demolition, or exchange.
            ``(5) Excess property.--The term `excess property' means 
        any real property under the control of a Federal agency that 
        the head of the Federal agency determines is not required to 
        meet the needs or responsibilities of the Federal agency.
            ``(6) Federal agency.--The term `Federal agency' means--
                    ``(A) an executive department or independent 
                establishment in the executive branch of the 
                Government; or
                    ``(B) a wholly owned Government corporation.
            ``(7) Field office.--The term `field office' means any 
        office of a Federal agency that is not the headquarters office 
        location for the Federal agency.
            ``(8) Postal property.--The term `postal property' means 
        any building owned by the United States Postal Service.
            ``(9) Surplus property.--
                    ``(A) In general.--The term `surplus property' 
                means excess real property that is not required to meet 
                the needs or responsibilities of any Federal agency.
                    ``(B) Exclusions.--The term `surplus property' does 
                not include--
                            ``(i) any military installation (as defined 
                        in section 2910 of the Defense Base Closure and 
                        Realignment Act of 1990 (10 U.S.C. 2687 note; 
                        Public Law 101-510));
                            ``(ii) any property that is excepted from 
                        the definition of the term `property' under 
                        section 102;
                            ``(iii) Indian and native Eskimo property 
                        held in trust by the Federal Government as 
                        described in section 3301(a)(5)(C)(iii);
                            ``(iv) real property operated and 
                        maintained by the Tennessee Valley Authority 
                        pursuant to the Tennessee Valley Authority Act 
                        of 1933 (16 U.S.C. 831 et seq.);
                            ``(v) any real property the Director 
                        excludes for reasons of national security;
                            ``(vi) any public lands (as defined in 
                        section 203 of the Public Lands Corps Act of 
                        1993 (16 U.S.C. 1722)) administered by--
                                    ``(I) the Secretary of the 
                                Interior, acting through--
                                            ``(aa) the Director of the 
                                        Bureau of Land Management;
                                            ``(bb) the Director of the 
                                        National Park Service;
                                            ``(cc) the Commissioner of 
                                        Reclamation; or
                                            ``(dd) the Director of the 
                                        United States Fish and Wildlife 
                                        Service; or
                                    ``(II) the Secretary of 
                                Agriculture, acting through the Chief 
                                of the Forest Service; or
                            ``(vii) any property operated and 
                        maintained by the United States Postal Service.
            ``(10) Underutilized property.--The term `underutilized 
        property' means a portion or the entirety of any real property, 
        including any improvements, that is used--
                    ``(A) irregularly or intermittently by the 
                accountable Federal agency for program purposes of the 
                Federal agency; or
                    ``(B) for program purposes that can be satisfied 
                with only a portion of the property.
``Sec. 622. Duties of Federal agencies
    ``Each Federal agency shall--
            ``(1) maintain adequate inventory controls and 
        accountability systems for real property under the control of 
        the Federal agency;
            ``(2) develop current and future workforce projections so 
        as to have the capacity to assess the needs of the Federal 
        workforce regarding the use of real property;
            ``(3) continuously survey real property under the control 
        of the Federal agency to identify excess property, 
        underutilized property, and other real property suitable to be 
        used for--
                    ``(A) colocation with other Federal agencies; or
                    ``(B) consolidation with other facilities;
            ``(4) promptly report excess property and underutilized 
        property to the Administrator;
            ``(5) establish goals that will lead the Federal agency to 
        reduce excess property and underutilized property in the 
        inventory of the Federal agency;
            ``(6) submit to the Council a report on all excess property 
        and underutilized property in the inventory of the Federal 
        agency, including--
                    ``(A) whether underutilized property can be better 
                utilized; and
                    ``(B) the extent to which the Federal agency 
                believes that the underutilized property serves the 
                needs of the Federal agency to retain underutilized 
                property;
            ``(7) adopt workplace practices, configurations, and 
        management techniques that can achieve increased levels of 
        productivity and decrease the need for real property assets;
            ``(8) assess leased space to identify space that is not 
        fully used or occupied;
            ``(9) on an annual basis and subject to the guidance of the 
        Council--
                    ``(A) conduct an inventory of real property under 
                control of the Federal agency; and
                    ``(B) make an assessment of each real property, 
                which shall include--
                            ``(i) the age and condition of the 
                        property;
                            ``(ii) the size of the property in square 
                        footage and acreage;
                            ``(iii) the geographical location of the 
                        property, including an address and description;
                            ``(iv) the extent to which the property is 
                        being utilized;
                            ``(v) the actual annual operating costs 
                        associated with the property;
                            ``(vi) the total cost of capital 
                        expenditures associated with the property;
                            ``(vii) sustainability metrics associated 
                        with the property;
                            ``(viii) the number of Federal employees 
                        and functions housed at the property;
                            ``(ix) the extent to which the mission of 
                        the Federal agency is dependent on the 
                        property;
                            ``(x) the estimated amount of capital 
                        expenditures projected to maintain and operate 
                        the property over each of the next 5 years 
                        after the date of enactment of this subchapter; 
                        and
                            ``(xi) any additional information required 
                        by the Administrator to carry out section 625; 
                        and
            ``(10) provide to the Council and the Administrator the 
        information described in paragraph (9)(B) to be used for the 
        establishment and maintenance of the database described in 
        section 625.
``Sec. 623. Colocation among United States Postal Service properties
    ``(a) Identification of Postal Property.--Each year, the Postmaster 
General may--
            ``(1) identify a list of postal properties with space 
        available for use by Federal agencies; and
            ``(2) submit the list to the Council.
    ``(b) Submission of List of Postal Properties to Federal 
Agencies.--
            ``(1) In general.--Not later than 30 days after the 
        completion of a list under subsection (a), the Council shall 
        provide the list to each Federal agency.
            ``(2) Review by federal agencies.--Not later than 90 days 
        after the receipt of the list submitted under paragraph (1), 
        each Federal agency shall--
                    ``(A) review the list;
                    ``(B) identify real property assets under the 
                control of the Federal agency; and
                    ``(C) recommend colocations if appropriate.
    ``(c) Terms of Colocation.--On approval of the recommendations 
under subsection (b) by the Postmaster General and the applicable 
agency head, the Federal agency or appropriate landholding entity may 
work with the Postmaster General to establish appropriate terms of a 
lease for each postal property.
``Sec. 624. Establishment of a Federal Real Property Council
    ``(a) Establishment.--There is established a Federal Real Property 
Council.
    ``(b) Purpose.--The purpose of the Council shall be to--
            ``(1) develop guidance and ensure implementation of an 
        efficient and effective real property management strategy;
            ``(2) identify opportunities for the Federal Government to 
        better manage real property assets; and
            ``(3) reduce the costs of managing real property, including 
        operations, maintenance, and security.
    ``(c) Composition.--
            ``(1) In general.--The Council shall be composed 
        exclusively of--
                    ``(A) the senior real property officers of each 
                Federal agency;
                    ``(B) the Deputy Director for Management of the 
                Office of Management and Budget;
                    ``(C) the Controller of the Office of Management 
                and Budget;
                    ``(D) the Administrator; and
                    ``(E) any other full-time or permanent part-time 
                Federal officials or employees, as the Chairperson 
                determines to be necessary.
            ``(2) Chairperson.--The Deputy Director for Management of 
        the Office of Management and Budget shall serve as Chairperson 
        of the Council.
            ``(3) Executive director.--
                    ``(A) In general.--The Chairperson shall designate 
                an Executive Director to assist in carrying out the 
                duties of the Council.
                    ``(B) Qualifications; full-time.--The Executive 
                Director shall--
                            ``(i) be appointed from among individuals 
                        who have substantial experience in the areas of 
                        commercial real estate and development, real 
                        property management, and Federal operations and 
                        management; and
                            ``(ii) serve full time.
    ``(d) Meetings.--
            ``(1) In general.--The Council shall meet subject to the 
        call of the Chairperson.
            ``(2) Minimum.--The Council shall meet not fewer than 4 
        times each year.
    ``(e) Duties.--The Council, in consultation with the Director and 
the Administrator, shall--
            ``(1) not later than 1 year after the date of enactment of 
        this subchapter, establish a real property management plan 
        template, to be updated annually, which shall include 
        performance measures, specific milestones, measurable savings, 
        strategies, and Government-wide goals based on the goals 
        established under section 622(5) to reduce surplus property or 
        to achieve better utilization of underutilized property, and 
        evaluation criteria to determine the effectiveness of real 
        property management that are designed to--
                    ``(A) enable Congress and heads of Federal agencies 
                to track progress in the achievement of real property 
                management objectives on a Government-wide basis;
                    ``(B) improve the management of real property; and
                    ``(C) allow for comparison of the performance of 
                Federal agencies against industry and other public 
                sector agencies in terms of performance;
            ``(2) develop standard use rates consistent throughout each 
        category of space and with nongovernmental space use rates;
            ``(3) develop a strategy to reduce the reliance of Federal 
        agencies on leased space for long-term needs if ownership would 
        be less costly;
            ``(4) provide guidance on eliminating inefficiencies in the 
        Federal leasing process;
            ``(5) compile a list of real property assets that are field 
        offices that are suitable for colocation with other real 
        property assets; and
            ``(6) not later than 1 year after the date of enactment of 
        this subchapter and annually during the 4-year period beginning 
        on the date that is 1 year after the date of enactment of this 
        subchapter and ending on the date that is 5 years after the 
        date of enactment of this subchapter, the Council shall submit 
        to the Director a report that contains--
                    ``(A) a list of the remaining excess, surplus, and 
                underutilized properties of each Federal agency;
                    ``(B) the progress of the Council toward developing 
                guidance for Federal agencies to ensure that the 
                assessment required under section 622(9)(B) is carried 
                out in a uniform manner; and
                    ``(C) the progress of Federal agencies toward 
                achieving the goals established under section 622(5).
    ``(f) Consultation.--In carrying out the duties described in 
subsection (e), the Council shall also consult with representatives 
of--
            ``(1) State, local, tribal authorities, and affected 
        communities; and
            ``(2) appropriate private sector entities and 
        nongovernmental organizations that have expertise in areas of--
                    ``(A) commercial real estate and development;
                    ``(B) government management and operations;
                    ``(C) space planning;
                    ``(D) community development, including 
                transportation and planning; and
                    ``(E) historic preservation.
    ``(g) Council Resources.--The Director and the Administrator shall 
provide staffing, and administrative support for the Council, as 
appropriate.
``Sec. 625. Federal real property inventory and database
    ``(a) In General.--Not later than 1 year after the date of 
enactment of this subchapter, the Administrator shall establish and 
maintain a single, comprehensive, and descriptive database of all real 
property under the custody and control of all Federal agencies.
    ``(b) Contents.--The database shall include--
            ``(1) information provided to the Administrator under 
        section 622(10); and
            ``(2) a list of real property disposals completed, 
        including--
                    ``(A) the date and disposal method used for each 
                real property;
                    ``(B) the proceeds obtained from the disposal of 
                each real property;
                    ``(C) the amount of time required to dispose of the 
                real property, including the date on which the real 
                property is designated as excess property;
                    ``(D) the date on which the property is designated 
                as surplus property and the date on which the property 
                is disposed; and
                    ``(E) all costs associated with the disposal.
    ``(c) Accessibility.--
            ``(1) Committees.--The database established under 
        subsection (a) shall be made available on request to the 
        Committee on Homeland Security and Governmental Affairs and the 
        Committee on Environment and Public Works of the Senate and the 
        Committee on Oversight and Government Reform and the Committee 
        on Transportation and Infrastructure of the House of 
        Representatives.
            ``(2) General public.--Not later than 3 years after the 
        date of enactment of this subchapter and to the extent 
        consistent with national security, the Administrator shall make 
        the database established under subsection (a) accessible to the 
        public at no cost through the website of the General Services 
        Administration.
``Sec. 626. Limitation on certain leasing authorities
    ``(a) In General.--Except as provided in subsection (b), not later 
than December 31 of each year following the date of enactment of this 
subchapter, a Federal agency with independent leasing authority shall 
submit to the Council a list of all leases, including operating leases, 
in effect on the date of enactment of this subchapter that includes--
            ``(1) the date on which each lease was executed;
            ``(2) the date on which each lease will expire;
            ``(3) a description of the size of the space;
            ``(4) the location of the property;
            ``(5) the tenant agency;
            ``(6) the total annual rental rate; and
            ``(7) the amount of the net present value of the total 
        estimated legal obligations of the Federal Government over the 
        life of the contract.
    ``(b) Exception.--Subsection (a) shall not apply to--
            ``(1) the United States Postal Service;
            ``(2) the Department of Veterans Affairs; or
            ``(3) any other property the President excludes from 
        subsection (a) for reasons of national security.
``Sec. 627. Expedited disposal pilot program
    ``(a) Establishment.--The Director shall establish a pilot program 
for disposal of any surplus property by sale, transfer, or other means.
            ``(1) Properties for expedited disposal.--
                    ``(A) In general.--On an annual basis, the Director 
                may authorize the expedited disposal of not more than 
                200 surplus properties.
                    ``(B) Priority.--In determining which properties to 
                dispose of, the Director shall give priority to surplus 
                properties that have the highest fair market value and 
                the greatest potential for disposal.
                    ``(C) Costs associated with disposal.--
                            ``(i) In general.--The Administrator may 
                        obligate an amount to pay any direct and 
                        indirect costs under section 572 related to 
                        identifying and preparing properties to be 
                        reported as excess property by a Federal 
                        agency.
                            ``(ii) Reimbursement.--An amount obligated 
                        under clause (i) shall be paid from the 
                        proceeds of any sale of real property under 
                        this subsection.
                            ``(iii) Net proceeds.--Net proceeds shall 
                        be distributed under subsection (b).
                    ``(D) Maximum net proceeds.--Any real property 
                authorized for disposal by sale under subparagraph (A) 
                shall be disposed of in a manner that, as determined by 
                the Administrator in consultation with the head of the 
                applicable Federal agency, is structured and marketed 
                to maximize the value to the Federal Government.
                    ``(E) Monetary proceeds requirement.--Surplus 
                property may be disposed of under this section only if 
                disposal of the property will generate monetary 
                proceeds to the Federal Government that--
                            ``(i) exceed the costs of disposal of the 
                        property; and
                            ``(ii) are not less than 90 percent of fair 
                        market value.
                    ``(F) Local government notification.--
                            ``(i) Notification.--Not later than 30 days 
                        after the date on which the Director makes the 
                        authorization under subparagraph (A), the 
                        Director shall submit in writing to the 
                        appropriate local government unit in which the 
                        property is located a notification that 
                        includes a list of each applicable property 
                        authorized to be disposed of under subparagraph 
                        (A).
                            ``(ii) Removal from pilot program.--
                                    ``(I) In general.--The Director, at 
                                the discretion of the Director, may 
                                remove a property for which 
                                notification has been provided under 
                                clause (i) from the pilot program 
                                established under subparagraph (A).
                                    ``(II) Replacement.--For each 
                                property removed from the pilot program 
                                under subclause (I), the Director may 
                                authorize the expedited disposal of 1 
                                property not originally authorized 
                                under subparagraph (A).
            ``(2) Applicability of certain law.--Any expedited disposal 
        of real property conducted under this section shall not be 
        subject to--
                    ``(A) any section of An Act Authorizing the 
                Transfer of Certain Real Property for Wildlife, or 
                Other Purposes (16 U.S.C. 667b);
                    ``(B) sections 107 and 317 of title 23;
                    ``(C) sections 545(b)(8), 550, 553, 554, and 
                1304(b) of this title;
                    ``(D) section 501 of the McKinney-Vento Homeless 
                Assistance Act (42 U.S.C. 11411);
                    ``(E) section 47151 of title 49; or
                    ``(F) section 13(d) of the Surplus Property Act of 
                1944 (50 U.S.C. App. 1622(d)).
            ``(3) Effect.--Except as provided in paragraph (2), nothing 
        in this subchapter terminates or in any way limits the 
        authority of any Federal agency under any other provision of 
        law to dispose of real property.
    ``(b) Use of Proceeds.--
            ``(1) In general.--Of the proceeds received from the 
        disposal of any real property under this subchapter--
                    ``(A) not less than 80 percent shall be returned to 
                the general fund of the Treasury for debt reduction;
                    ``(B) the lesser of 18 percent or the share of 
                proceeds otherwise authorized to be retained under law 
                shall be retained by the Federal agency that has 
                custody and is accountable for the real property, 
                subject to paragraph (2);
                    ``(C) not greater than 2 percent shall be made 
                available to carry out section 628, subject to annual 
                appropriations; and
                    ``(D) any remaining share of the proceeds shall be 
                returned to the general fund of the Treasury for 
                Federal budget deficit reduction.
            ``(2) Limitation on use of proceeds.--Any proceeds retained 
        by Federal agencies under this section shall be--
                    ``(A) deposited into the appropriate real property 
                account of the Federal agency that had custody and 
                accountability for the real property, with the funds 
                expended only as authorized in annual appropriations 
                Acts;
                    ``(B) used--
                            ``(i) by not later than 2 years after the 
                        date of disposal of the real property; and
                            ``(ii) only for activities relating to 
                        Federal real property asset management and 
                        disposal; and
                    ``(C) if not used by the date described in 
                subparagraph (B)(i), shall be deposited in the Treasury 
                and used for Federal budget deficit reduction.
    ``(c) Public Benefit.--
            ``(1) Conveyance.--Except as provided in paragraph (2), if 
        a real property authorized to be disposed of under subsection 
        (a) has not been disposed of by the date that is 2 years after 
        the date the property is listed for sale, the Director, in 
        consultation with the Administrator and the Secretary of 
        Housing and Urban Development, may consider a request from the 
        disposing Federal agency that the real property be conveyed to 
        State and local governments or nonprofit organizations for 
        various public purposes or uses as permitted by applicable law.
            ``(2) Predominant use and size standards.--
                    ``(A) In general.--Any real property authorized to 
                be disposed of under subsection (a) shall not be 
                conveyed under paragraph (1) if--
                            ``(i) the predominant use of the property 
                        is not for housing; and
                            ``(ii)(I) the area of the property is not 
                        less than 25,000 square feet; or
                            ``(II) the appraised fair market value of 
                        the property is greater than $1,000,000.
                    ``(B) Appraised fair market value.--The appraised 
                fair market value described in subparagraph (A)(ii)(II) 
                shall be determined by the Federal agency with custody 
                or control of the property, in consultation with the 
                Administrator and standard appraisal practice.
    ``(d) Enforcement.--
            ``(1) Increase in size of inventory.--Except as provided in 
        paragraph (2), if a Federal agency fails to make available for 
        public sale the real property authorized for disposal under 
        subsection (a) by the date that is 18 months after the date on 
        which the authorization is made, that Federal agency, except 
        for specific exceptions promulgated by the Director, shall not 
        increase the size of the civilian real property inventory, 
        unless the square footage of the increase is offset, within an 
        appropriate time as determined by the Director, through 
        consolidation, colocation, or disposal of another building 
        space from the inventory of that Federal agency.
            ``(2) Exception.--Paragraph (1) shall not apply to a 
        Federal agency that acquires any real property not under the 
        administrative jurisdiction of the Federal Government, by sale 
        or lease, until the Director submits a certification to 
        Congress of the disposal of all of those surplus properties.
    ``(e) Termination of Authority.--The authority provided by this 
section terminates on the date that is 5 years after the date of 
enactment of this subchapter.
``Sec. 628. Homeless assistance grants
    ``(a) Definitions.--In this section:
            ``(1) Eligible nonprofit organization.--The term `eligible 
        nonprofit organization' means a nonprofit organization that is 
        a representative of the homeless.
            ``(2) Homeless.--The term `homeless' has the meaning given 
        the term in section 103 of the McKinney-Vento Homeless 
        Assistance Act (42 U.S.C. 11302), except that subsection (c) of 
        that section shall not apply.
            ``(3) Permanent housing.--The term `permanent housing' has 
        the meaning given the term in section 401 of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11360).
            ``(4) Private nonprofit organization.--The term `private 
        nonprofit organization' has the meaning given the term in 
        section 401 of the McKinney-Vento Homeless Assistance Act (42 
        U.S.C. 11360).
            ``(5) Representative of the homeless.--The term 
        `representative of the homeless' has the meaning given the term 
        in section 501(i) of the McKinney-Vento Homeless Assistance Act 
        (42 U.S.C. 11411(i)).
            ``(6) Secretary.--The term `Secretary' means the Secretary 
        of Housing and Urban Development.
            ``(7) Transitional housing.--The term `transitional 
        housing' has the meaning given the term in section 401 of the 
        McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360).
    ``(b) Grant Authority.--
            ``(1) In general.--To the extent amounts are made available 
        under section 627(b)(1)(C) for use under this section, the 
        Secretary shall make grants to eligible private nonprofit 
        organizations through the continuum of care program established 
        under subtitle C of title IV of the McKinney-Vento Homeless 
        Assistance Act (42 U.S.C. 11381 et seq.), to purchase real 
        property suitable for use to assist the homeless in accordance 
        with subsection (c).
            ``(2) Terms and conditions.--Except as otherwise provided 
        in this section, a grant under this section shall be subject to 
        the same terms and conditions as a grant under the continuum of 
        care program established under subtitle C of title IV of the 
        McKinney-Vento Homeless Assistance Act (42 U.S.C. 11381 et 
        seq.).
    ``(c) Use of Properties for Housing or Shelter for the Homeless.--
            ``(1) Eligible uses.--An eligible private nonprofit 
        organization that receives a grant under subsection (b) shall 
        use the amounts received only to purchase or rehabilitate real 
        property to provide permanent housing, transitional housing, or 
        temporary shelter to the homeless.
            ``(2) Term of use.--The Secretary may not make a grant 
        under subsection (b) to an eligible private nonprofit 
        organization unless the eligible private nonprofit organization 
        provides to the Secretary such assurances as the Secretary 
        determines necessary to ensure that any real property purchased 
        or rehabilitated using amounts received under the grant is used 
        only for the purposes described in paragraph (1) for a period 
        of not less than 15 years.
    ``(d) Preference.--In awarding grants under subsection (b), the 
Secretary shall give preference to eligible private nonprofit 
organizations that operate within areas in which Federal real property 
is being sold under the disposal program authorized under section 627.
    ``(e) Regulations.--The Secretary may promulgate such regulations 
as are necessary to carry out this section.''.

SEC. 604. REPORT OF THE COMPTROLLER GENERAL.

    (a) Draft.--Not later than 3 years after the date of enactment of 
this Act, the Comptroller General of the United States shall submit to 
Congress a draft report on the expedited disposal pilot program 
established by the amendments made by section 3.
    (b) Final.--Not later than 5 years after the date of enactment of 
this Act, the Comptroller General of the United States shall submit to 
Congress a final report on the expedited disposal pilot program 
established by the amendments made by section 3.

SEC. 605. TECHNICAL AND CONFORMING AMENDMENT.

    The table of sections for chapter 5 of subtitle I of title 40, 
United States Code, is amended by inserting after 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.''.
                                                       Calendar No. 523

113th CONGRESS

  2d Session

                                S. 1486

                          [Report No. 113-237]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                             July 31, 2014

                       Reported with an amendment
```