II 

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. 

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

3 SECTION 1. SHORT TITLE. 

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

5 2013’’. 


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1 SEC. 2. TABLE OF CONTENTS. 

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

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. Definitions. 

TITLE I—POSTAL 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 plan. 

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

Sec. 106. Labor disputes. 

TITLE II—POSTAL SERVICE OPERATIONS 

Sec. 201. Maintenance of delivery service standards. 

Sec. 202. Preserving mail processing capacity. 

Sec. 203. Preserving community post offices. 

Sec. 204. Changes to mail delivery schedule. 

Sec. 205. Delivery point modernization. 

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

TITLE III—POSTAL SERVICE REVENUE 

Sec. 301. Postal rates. 

Sec. 302. Nonpostal services. 

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

TITLE IV—POSTAL SERVICE GOVERNANCE 

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

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

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

Sec. 404. Chief Innovation Officer; innovation strategy. 

Sec. 405. Area and district office structure. 

Sec. 406. Inspector General of the Postal Service. 

TITLE V—FEDERAL EMPLOYEES’ COMPENSATION ACT 

Sec. 501. Short title; references. 

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

Sec. 503. Augmented compensation for dependents. 

Sec. 504. Schedule compensation payments. 

Sec. 505. Vocational rehabilitation. 

Sec. 506. Reporting requirements. 

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

Sec. 508. Waiting period. 

Sec. 509. Election of benefits. 

Sec. 510. Sanction for noncooperation with field nurses. 


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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. 

1 SEC. 3. DEFINITIONS. 

2 In this Act, the following definitions shall apply: 

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

4 means the Postal Regulatory Commission. 

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

7 TITLE I—POSTAL SERVICE 

8 WORKFORCE 

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

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

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

15 United States Code, is amended— 

16 (A) in paragraph (1)— 

17 (i) in subparagraph (A)— 


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

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

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

4 ‘‘and’’; 

5 (ii) in subparagraph (B)(ii), by strik6 ing the period at the end and inserting ‘‘; 

7 and’’; and 

8 (iii) by adding at the end the fol9 lowing: 

10 ‘‘(C) the product of— 

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

12 determined for employees of the United 

13 States Postal Service under paragraph (5), 

14 multiplied by 

15 ‘‘(ii) the aggregate amount of basic 

16 pay payable by the United States Postal 

17 Service, for the period involved, to employ18 ees of the United States Postal Service.’’; 

19 and 

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

21 ‘‘(5)(A) In determining the normal-cost per22 centage for employees of the United States Postal 

23 Service, the Office shall use— 

24 ‘‘(i) demographic factors specific to the 

25 employees; and 


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1 ‘‘(ii) economic assumptions regarding wage 

2 and salary growth that reflect the specific past, 

3 and likely future, pay for the employees. 

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

5 provide any data or projections the Office requires 

6 in order to determine the normal-cost percentage for 

7 employees of the United States Postal Service con8 sistent with subparagraph (A). 

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

10 of the normal-cost percentage for employees of the 

11 United States Postal Service and make such adjust12 ments as are necessary— 

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

14 Postal Service, but no more frequently than 

15 once each fiscal year; and 

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

17 considers appropriate.’’. 

18 (2) INITIAL DETERMINATION.—Not later than 

19 90 days after the date of enactment of this Act, the 

20 Office shall determine the normal-cost percentage 

21 for employees of the United States Postal Service in 

22 accordance with the requirements under section 

23 8423(a)(5) of title 5, United States Code, as added 

24 by paragraph (1). 

25 (b) POSTAL FUNDING SURPLUS OR LIABILITY.— 


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1 (1) TREATMENT OF POSTAL FUNDING SUR2 PLUS.—Section 8423(b) of title 5, United States 

3 Code, is amended— 

4 (A) by redesignating paragraph (5) as 

5 paragraph (6); and 

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

7 following: 

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

9 funding surplus’ means the amount by which the 

10 amount of supplemental liability computed under 

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

12 ‘‘(B)(i) After the date on which the Office de13 termines or redetermines under paragraph (7)(C) 

14 the amount of supplemental liability computed under 

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

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

17 is less than zero, the Postmaster General may re18 quest that some or all of the amount of the postal 

19 funding surplus be returned to the Postal Service, 

20 and not later than 10 days after the request, the Di21 rector shall transfer to the United States Postal 

22 Service from the Fund an amount equal to the por23 tion of the postal funding surplus requested for use 

24 in accordance with this subparagraph. 


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

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

3 the United States Postal Service for the purposes of 

4 repaying any obligation issued under section 2005(a) 

5 of title 39. 

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

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

8 any fiscal year commencing after September 30, 

9 2013, is less than zero, the Office shall establish an 

10 amortization schedule, including a series of annual 

11 installments, to be transferred to the United States 

12 Postal Service from the Fund, commencing on Sep13 tember 30 of the subsequent fiscal year, which pro14 vides for the liquidation of the postal funding sur15 plus by September 30, 2054.’’. 

16 (2) SUPPLEMENTAL LIABILITY CALCULA17 TION.— 

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

19 United States Code, as amended by paragraph 

20 (1) of this subsection, is amended— 

21 (i) in paragraph (6), as so redesig22 nated, in the matter preceding subpara23 graph (A), by striking ‘‘For the purpose’’ 

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

25 for the purpose’’; and 


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1 (ii) by adding at the end the fol2 lowing: 

3 ‘‘(7)(A) For the purpose of carrying out para4 graph (1)(B) with respect to the fiscal year ending 

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

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

7 use— 

8 ‘‘(i) demographic factors specific to current 

9 and former employees of the United States 

10 Postal Service; and 

11 ‘‘(ii) economic assumptions regarding wage 

12 and salary growth that reflect the specific past 

13 and likely future pay for current employees of 

14 the United States Postal Service. 

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

16 provide any data or projections the Office requires 

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

18 with subparagraph (A) of this paragraph. 

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

20 shall determine or redetermine whether there is a 

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

22 or a supplemental liability described in paragraph 

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

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1 cordance with the requirements under subparagraph 

2 (A) of this paragraph.’’. 

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

4 United States Code, is amended— 

5 (i) in paragraph (2), by striking sub6 paragraph (B) and inserting the following: 

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

8 shall redetermine the Postal surplus or supplemental li9 ability as of the close of the fiscal year ending on Sep10 tember 30, 2013, in accordance with the requirements 

11 under paragraph (4). 

12 ‘‘(II) If the result of the redetermination under sub13 clause (I) is a surplus, that amount shall remain in the 

14 Fund until distribution is authorized under subparagraph 

15 (C). 

16 ‘‘(III) If the result of the redetermination under sub17 clause (I) is a supplemental liability, the Office shall estab18 lish an amortization schedule, including a series of annual 

19 installments commencing on September 30, 2015, which 

20 provides for the liquidation of such liability by September 

21 30, 2054. 

22 ‘‘(ii)(I) The Office shall redetermine the Postal sur23 plus or supplemental liability as of the close of each fiscal 

24 year beginning after September 30, 2013, in accordance 

25 with the requirements under paragraph (4). 


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1 ‘‘(II) If the result of the redetermination under sub2 clause (I) is a surplus, that amount shall remain in the 

3 Fund until distribution is authorized under subparagraph 

4 (C). 

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

6 the redetermination under subclause (I) is a supplemental 

7 liability, the Office shall establish an amortization sched8 ule, including a series of annual installments commencing 

9 on September 30 of the subsequent fiscal year, which pro10 vides for the liquidation of such liability by September 30, 

11 2054.’’; and 

12 (ii) by adding at the end the fol13 lowing: 

14 ‘‘(4)(A) For the purpose of carrying out para15 graphs (1) and (2), the Office shall, consistent with 

16 section 8423(a)(5), use— 

17 ‘‘(i) demographic factors specific to current 

18 and former employees of the United States 

19 Postal Service; and 

20 ‘‘(ii) economic assumptions regarding wage 

21 and salary growth that reflect the specific past 

22 and likely future pay for current employees of 

23 the United States Postal Service. 

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

25 provide any data or projections the Office requires 


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1 in order to carry out paragraphs (1) and (2) con2 sistent with subparagraph (A) of this paragraph.’’. 

3 SEC. 102. POSTAL SERVICE AUTHORITY TO NEGOTIATE RE4 TIREMENT BENEFIT TERMS FOR NEW EM5 PLOYEES. 

6 (a) AUTHORITY TO NEGOTIATE RETIREMENT BEN7 EFIT TERMS.— 

8 (1) COLLECTIVE BARGAINING OVER CERTAIN

9 RETIREMENT BENEFITS.—Section 1005 of title 39, 

10 United States Code, is amended by adding at the 

11 end the following: 

12 ‘‘(g)(1) In this subsection— 

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

14 means a collective bargaining agreement between the 

15 Postal Service and a bargaining representative rec16 ognized under section 1203 entered into after the 

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

18 ‘‘(B) the term ‘new employee’ means an indi19 vidual who becomes an officer or employee of the 

20 Postal Service after the date of enactment of the 

21 Postal Reform Act of 2013; 

22 ‘‘(C) the term ‘not covered under the FERS de23 fined benefit plan’, with respect to an officer or em24 ployee of the Postal Service, means that service by 

25 the officer or employee of the Postal Service as an 


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1 officer or employee of the Postal Service shall not be 

2 creditable service for purposes of chapter 84 of title 

3 5. 

4 ‘‘(2)(A) A collective bargaining agreement may pro5 vide, notwithstanding chapter 84 of title 5, that some or 

6 all new employees covered under the collective bargaining 

7 agreement shall be not covered under the FERS defined 

8 benefit plan. 

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

10 FERS defined benefit plan pursuant to a collective bar11 gaining agreement, any subsequent service by the new em12 ployee as an officer or employee of the Postal Service shall 

13 be not covered under the FERS defined benefit plan. 

14 ‘‘(C) Subject to the requirements under this sub15 section, a collective bargaining agreement may include one 

16 or more additional retirement benefit plans for the benefit 

17 of some or all new employees covered under the collective 

18 bargaining agreement. 

19 ‘‘(3)(A) A collective bargaining agreement may estab20 lish, with respect to some or all new employees covered 

21 under the collective bargaining agreement— 

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

23 and subject to subparagraph (C) of this paragraph 

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

25 and withheld from the pay of the new employees for 


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1 deposit in the Treasury of the United States to the 

2 credit of the Civil Service Retirement and Disability 

3 Fund; 

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

5 whether the Postal Service shall make contributions 

6 to the Thrift Savings Fund for the benefit of the 

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

8 such contributions, the amounts that the Postal 

9 Service shall contribute; and 

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

11 under the bargaining agreement, the amounts to be 

12 deducted and withheld from the pay of the new em13 ployees under the retirement benefit plan for the 

14 benefit of the new employees. 

15 ‘‘(B) Except as provided in paragraph (2)(B), a col16 lective bargaining agreement may establish the amounts 

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

18 all new employees who were covered under a previous col19 lective bargaining agreement. 

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

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

22 Service Retirement and Disability Fund the amount that 

23 the Postal Service would have deducted and withheld from 

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

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


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1 under the FERS defined benefit plan, without regard to 

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

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

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

5 FERS defined benefit plan pursuant to a collective bar6 gaining agreement, any member of the Postal Career Ex7 ecutive Service shall be not covered under the FERS de8 fined benefit plan on and after the effective date of the 

9 collective bargaining agreement. 

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

11 in this subsection or in a provision of a collective bar12 gaining agreement entered under this subsection shall af13 fect the coverage of an officer or employee of the Postal 

14 Service under subchapter III of chapter 84 of the United 

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

16 (2) APPLICABILITY OF LAWS RELATING TO

17 FEDERAL EMPLOYEES.—Section 1005 of title 39, 

18 United States Code, is amended— 

19 (A) in subsection (d)(1), by striking ‘‘Offi20 cers’’ and inserting ‘‘Except as provided in sub21 section (g), officers’’; and 

22 (B) in subsection (f), in the second sen23 tence— 

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

25 and 


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

2 inserting ‘‘this subsection or subsection 

3 (g).’’. 

4 (b) SPECIAL RULES RELATING TO FERS COVERAGE

5 FOR COVERED POSTAL EMPLOYEES.— 

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

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

8 at the end the following: 

9 ‘‘§ 8426. Postal Service retirement 

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

11 title and subchapters III and VII of this chapter with re12 spect to an officer or employee of the Postal Service may 

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

14 39.’’. 

15 (2) TECHNICAL AND CONFORMING AMEND16 MENTS.—The table of sections for chapter 84 of title 

17 5, United States Code, is amended by adding at the 

18 end the following: 

‘‘8426. Postal Service retirement.’’. 

19 SEC. 103. RESTRUCTURING OF PAYMENTS FOR RETIREE 

20 HEALTH BENEFITS. 

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

22 5, United States Code, is amended by striking ‘‘through 

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

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

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


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1 (b) POSTAL SERVICE RETIREE HEALTH BENEFITS

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

3 amended— 

4 (1) in subsection (d)— 

5 (A) by striking paragraph (2) and insert6 ing the following: 

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

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

9 the Office shall recompute, a schedule including a series 

10 of annual installments which provide for the liquidation 

11 of the amount described under subparagraph (B) (regard12 less of whether the amount is a liability or surplus) by 

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

14 later, including interest at the rate used in the computa15 tions under this subsection. 

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

17 the amount, as of the date on which the applicable com18 putation or recomputation under subparagraph (A) is 

19 made, that is equal to the difference between— 

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

21 liability as of September 30 of the most recently 

22 ended fiscal year; and 

23 ‘‘(ii) the value of the assets of the Postal Re24 tiree Health Benefits Fund as of September 30 of 

25 the most recently ended fiscal year.’’; 


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1 (B) in paragraph (3)— 

2 (i) in subparagraph (A)— 

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

4 ‘‘and’’ at the end; 

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

6 semicolon at the end and inserting a 

7 period; and 

8 (III) by striking clauses (v) 

9 through (x); and 

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

11 ‘‘2017’’ and inserting ‘‘2016’’; 

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

13 follows: 

14 ‘‘(4) Computations under this subsection shall 

15 be based on— 

16 ‘‘(A) economic and actuarial methods and 

17 assumptions consistent with the methods and 

18 assumptions used in determining the Postal 

19 surplus or supplemental liability under section 

20 8348(h); and 

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

22 including a health care cost trend rate, that the 

23 Director of the Office determines to be appro24 priate.’’; and 

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


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

2 actuarial liability’ means the difference between— 

3 ‘‘(A) the net present value of future pay4 ments required under section 8906(g)(2)(A) for 

5 current and future United States Postal Service 

6 annuitants; and 

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

8 under paragraph (1) attributable to the future 

9 service of United States Postal Service employ10 ees.’’; and 

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

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

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

14 2013.’’. 

15 (c) CANCELLATION OF CERTAIN UNPAID OBLIGA16 TIONS OF THE POSTAL SERVICE.—Any obligation of the 

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

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

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

20 date of enactment is cancelled. 

21 (d) TECHNICAL AND CONFORMING AMENDMENT.— 

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

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

24 ‘‘Benefits’’. 


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1 SEC. 104. POSTAL SERVICE HEALTH BENEFITS PLAN. 

2 (a) DEFINITIONS.—In this section— 

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

4 a bargaining representative recognized under section 

5 1203 of title 39, United States Code; 

6 (2) the term ‘‘covered employee’’ means an offi7 cer or employee of the Postal Service who is— 

8 (A) represented by a bargaining represent9 ative; or 

10 (B) a member of the Postal Career Execu11 tive Service; 

12 (3) the term ‘‘Federal Employee Health Bene13 fits Program’’ means the health benefits program 

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

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

16 (A) a covered employee who is— 

17 (i) represented by a bargaining rep18 resentative that enters into an agreement 

19 to establish a Postal Service Health Bene20 fits Plan; or 

21 (ii) if any bargaining representative 

22 enters into an agreement to establish a 

23 Postal Service Health Benefits Plan, a 

24 member of the Postal Career Executive 

25 Service; and 


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1 (B) an officer or employee of the Postal 

2 Service who— 

3 (i) is not a covered employee; and 

4 (ii) elects to participate in the Postal 

5 Service Health Benefits Plan; and 

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

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

8 agreed to under subsection (b)(1). 

9 (b) COLLECTIVE BARGAINING.— 

10 (1) IN GENERAL.—Consistent with section 

11 1005(f) of title 39, United States Code, the Postal 

12 Service may negotiate individually or jointly with 

13 bargaining representatives and enter into a collective 

14 bargaining agreement or agreements with 1 or more 

15 of those bargaining representatives to establish a 

16 single Postal Service Health Benefits Plan that— 

17 (A) satisfies the conditions under sub18 section (c); and 

19 (B) may be a health benefits plan offered 

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

21 (2) CONSULTATION WITH OPM.—The Postal 

22 Service and bargaining representatives shall conduct 

23 negotiations under paragraph (1) in consultation 

24 with the Director of the Office of Personnel Manage25 ment. 


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1 (3) CONSULTATION WITH SUPERVISORY AND

2 MANAGERIAL PERSONNEL.—In the course of nego3 tiations under paragraph (1), the Postal Service 

4 shall consult with each of the organizations of super5 visory and other managerial personnel that are rec6 ognized under section 1004 of title 39, United 

7 States Code, concerning the views of the personnel 

8 represented by each of those organizations. 

9 (4) DISPUTES.—If the Postal Service or a bar10 gaining representative offers a proposed agreement 

11 for negotiation under paragraph (1) and the parties 

12 do not reach agreement within 180 days after the 

13 commencement of collective bargaining on the pro14 posal, the procedures under section 1207(d) of title 

15 39, United States Code, shall apply upon the elec16 tion of any party to the negotiations. 

17 (5) TIME LIMITATION.—The authority under 

18 this subsection shall extend until the date that is 2 

19 years after the date of enactment of this Act. 

20 (c) POSTAL SERVICE HEALTH BENEFITS PLAN.— 

21 The Postal Service Health Benefits Plan— 

22 (1) shall— 

23 (A) be available for participation by— 

24 (i) all covered employees represented 

25 by a bargaining representative entering an 


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

2 and 

3 (ii) all covered employees who are 

4 members of the Postal Career Executive 

5 Service; 

6 (B) be available for participation by any 

7 officer or employee of the Postal Service who is 

8 not a covered employee, at the option solely of 

9 that officer or employee; 

10 (C) provide coverage that is actuarially 

11 equivalent to the coverage offered under the 

12 types of plans available under the Federal Em13 ployee Health Benefits Program, as determined 

14 by the Director of the Office of Personnel Man15 agement; 

16 (D) be administered in a manner deter17 mined in an agreement or agreements reached 

18 under subsection (b); 

19 (E) unless the Postal Service Health Bene20 fits Plan is a health benefits plan offered under 

21 chapter 89 of title 5, United States Code, pro22 vide for transition of coverage under the Fed23 eral Employee Health Benefits Program of all 

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1 fits Plan to coverage under the Postal Service 

2 Health Benefits Plan; and 

3 (F) if the Postal Service Health Benefits 

4 Plan is a health benefits plan offered under 

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

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

7 United States Code, as added by section 105 of 

8 this Act, provide that the Postal Service Health 

9 Benefits Plan is the only health benefits plan 

10 under the Federal Employee Health Benefits 

11 Program in which a participant in the Postal 

12 Service Health Benefits Plan may participate as 

13 an employee; 

14 (2) may provide dental benefits; and 

15 (3) may provide vision benefits. 

16 (d) AGREEMENT AND IMPLEMENTATION.—If an 

17 agreement or agreements are reached under subsection (b) 

18 to provide a Postal Service Health Benefits Plan— 

19 (1) the Postal Service shall implement the Post20 al Service Health Benefits Plan; 

21 (2) the Postal Service Health Benefits Plan 

22 shall constitute an agreement between the collective 

23 bargaining representatives and the Postal Service for 

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

25 States Code; and 


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1 (3) unless the Postal Service Health Benefits 

2 Plan is a health benefits plan offered under chapter 

3 89 of title 5, United States Code, participants in the 

4 Postal Service Health Benefits Plan may not partici5 pate as employees in the Federal Employees Health 

6 Benefits Program. 

7 (e) GOVERNMENTAL PLAN.—The Postal Service 

8 Health Benefits Plan shall be a governmental plan as that 

9 term is defined under section 3(32) of Employee Retire10 ment Income Security Act of 1974 (29 U.S.C. 1002(32)). 

11 (f) REPORT.—Not later than 6 months after the ear12 lier of the date on which any agreement is reached under 

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

14 submit a report to the Committee on Homeland Security 

15 and Governmental Affairs of the Senate and the Com16 mittee on Oversight and Government Reform of the House 

17 of Representatives that— 

18 (1) reports on the implementation of this sec19 tion; and 

20 (2) requests any additional statutory authority 

21 that the Postal Service determines is necessary to 

22 carry out the purposes of this section. 


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1 SEC. 105. MEDICARE COORDINATION EFFORTS FOR POST2 AL SERVICE EMPLOYEES AND RETIREES. 

3 (a) ADDITIONAL ENROLLMENT OPTIONS UNDER

4 FEDERAL EMPLOYEES HEALTH BENEFITS PLANS.— 

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

6 inserting after section 8903b the following: 

7 ‘‘§ 8903c. Coordination with Medicare for Postal Serv8 ice employees and annuitants 

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

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

11 year in which health benefits plans are administered 

12 under this chapter; 

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

14 Medicare program for hospital insurance benefits 

15 under part A of title XVIII of the Social Security 

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

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

18 Medicare program for supplementary medical insur19 ance benefits under part B of title XVIII of the So20 cial Security Act (42 U.S.C. 1395j et seq.); and 

21 ‘‘(4) the term ‘Postal Service employee or annu22 itant’ means an individual who is— 

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

24 covered under this chapter; or 

25 ‘‘(B) an annuitant covered under this 

26 chapter whose Government contribution is paid 


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1 by the Postal Service or the Postal Service Re2 tiree Health Benefits Fund under section 

3 8906(g)(2). 

4 ‘‘(b) ENROLLMENT OPTIONS.— 

5 ‘‘(1) ESTABLISHMENT.— 

6 ‘‘(A) IN GENERAL.—For contract years be7 ginning on or after January 1, 2015, the Office 

8 shall establish enrollment options for health 

9 benefits plans that are open only to Postal 

10 Service employees and annuitants, and family 

11 members of a Postal Service employee or annu12 itant, who are enrolled in Medicare part A and 

13 Medicare part B. 

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

15 options established under this subsection shall 

16 be in addition to any other health benefit plan 

17 or enrollment option otherwise available to 

18 Postal Service employees or annuitants under 

19 this chapter and shall not affect the eligibility 

20 of a Postal Service employee or annuitant for 

21 any another health benefit plan or enrollment 

22 option under this chapter. 

23 ‘‘(2) ENROLLMENT ELIGIBILITY.— 

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

25 employee or annuitant, or family member of a 


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1 Postal Service employee or annuitant, who is 

2 enrolled in Medicare part A and Medicare part 

3 B may enroll in 1 of the enrollment options es4 tablished under paragraph (1). 

5 ‘‘(B) DETERMINATION OF ELIGIBILITY.— 

6 Eligibility to enroll in an enrollment option es7 tablished under paragraph (1) shall be deter8 mined without regard to the requirements 

9 under section 8905(b). 

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

11 ensure that the aggregate actuarial value of coverage 

12 under the enrollment options established under this 

13 subsection, in combination with the value of coverage 

14 under Medicare part A and Medicare part B, shall 

15 be not less than the actuarial value of the most 

16 closely corresponding enrollment options for each 

17 plan available under section 8905, in combination 

18 with the value of coverage under Medicare part A 

19 and Medicare part B. 

20 ‘‘(4) ENROLLMENT OPTIONS.— 

21 ‘‘(A) IN GENERAL.—The enrollment op22 tions established under paragraph (1) shall in23 clude— 


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

2 Service employees or annuitants enrolled in 

3 Medicare part A and Medicare part B; 

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

5 Postal Service employees or annuitants 

6 and family members who are each enrolled 

7 in Medicare part A and Medicare part B; 

8 and 

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

10 Postal Service employees or annuitants— 

11 ‘‘(I) who are enrolled in Medicare 

12 part A and Medicare part B; and 

13 ‘‘(II) the family members of 

14 whom are not enrolled in Medicare 

15 part A or Medicare part B. 

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

17 may establish more specific enrollment options 

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

20 ‘‘(5) REDUCED PREMIUMS TO ACCOUNT FOR

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

23 (4), the Office shall— 


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1 ‘‘(A) establish a separate risk pool for indi2 viduals eligible for coverage under any of those 

3 options; and 

4 ‘‘(B) ensure that— 

5 ‘‘(i) the premiums are reduced from 

6 the premiums otherwise established under 

7 this chapter to directly reflect the full cost 

8 savings to the health benefits plans due to 

9 the complete coordination of benefits with 

10 Medicare part A and Medicare part B for 

11 Postal Service employees or annuitants, or 

12 family members of Postal Service employ13 ees or annuitants, who are enrolled in 

14 Medicare part A and Medicare part B; and 

15 ‘‘(ii) the cost savings described under 

16 clause (i) result solely in the reduction 

17 of— 

18 ‘‘(I) the premiums paid by the 

19 Postal Service employee or annuitant; 

20 and 

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

23 other employer. 


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

2 shall establish the enrollment options and premiums under 

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

4 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

6 States Code, is amended by inserting after the item relat7 ing to section 8903b the following: 

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

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

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

10 beginning on or after January 1, 2015. 

11 (d) SPECIAL ENROLLMENT PERIOD FOR POSTAL

12 SERVICE EMPLOYEES AND ANNUITANTS.— 

13 (1) SPECIAL ENROLLMENT PERIOD.—Section 

14 1837 of the Social Security Act (42 U.S.C. 1395p) 

15 is amended by adding at the end the following new 

16 subsection: 

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

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

19 a Postal Service employee or annuitant (as defined in sec20 tion 8903c(a) of title 5, United States Code) at the time 

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

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

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


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1 individual’s initial enrollment period, there shall be a spe2 cial enrollment period described in paragraph (2). 

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

4 paragraph, with respect to an individual, is the 1-year pe5 riod beginning on July 1, 2014. 

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

7 the special enrollment period provided under paragraph 

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

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

10 (2) WAIVER OF INCREASE OF PREMIUM.—Sec11 tion 1839(b) of the Social Security Act (42 U.S.C. 

12 1395r(b)) is amended by striking ‘‘(i)(4) or (l)’’ and 

13 inserting ‘‘(i)(4), (l), or (m)’’. 

14 SEC. 106. LABOR DISPUTES. 

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

16 amended— 

17 (1) in paragraph (2)— 

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

19 (B) by striking the last sentence and in20 serting ‘‘The arbitration board shall render a 

21 decision not later than 45 days after the date 

22 of its appointment.’’; and 

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

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

25 paragraph, the arbitration board shall consider 


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1 such relevant factors as the financial condition 

2 of the Postal Service.’’; and 

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

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

5 to limit the relevant factors that the arbitration 

6 board may take into consideration in rendering a de7 cision under paragraph (2).’’. 

8 TITLE II—POSTAL SERVICE 

9 OPERATIONS 

10 SEC. 201. MAINTENANCE OF DELIVERY SERVICE STAND11 ARDS. 

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

13 enactment of this Act, the Postal Service shall maintain 

14 the service standards for first-class mail and periodicals 

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

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

17 SEC. 202. PRESERVING MAIL PROCESSING CAPACITY. 

18 (a) DEFINITION OF POSTAL FACILITY.—In this sec19 tion, the term ‘‘postal facility’’ means a processing and 

20 distribution center, processing and distribution facility, 

21 network distribution center, or other facility that is oper22 ated by the Postal Service, the primary function of which 

23 is to sort and process mail. 

24 (b) MORATORIUM ON CLOSURES OF POSTAL FACILI25 TIES.—During the 2-year period beginning on the date of 


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

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

3 date of enactment of this Act. 

4 SEC. 203. PRESERVING COMMUNITY POST OFFICES. 

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

6 amended— 

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

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

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

10 inserting the following: 

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

12 means a post office, post office branch, post office classi13 fied station, or other facility that is operated by the Postal 

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

15 postal services. 

16 ‘‘(2) The Postal Service, prior to making a deter17 mination under subsection (a)(3) of this section as to the 

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

19 to the extent practicable and appropriate— 

20 ‘‘(A) consider whether— 

21 ‘‘(i) to discontinue the post office and an22 other post office located within a reasonable 

23 distance; 

24 ‘‘(ii) instead of discontinuing the post of25 fice— 


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

2 day that the post office operates; or 

3 ‘‘(II) to continue operating the post 

4 office for the same number of hours a day; 

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

6 or less than full, retail services in the commu7 nity served by the post office; or 

8 ‘‘(iv) to provide postal services to the com9 munity served by the post office— 

10 ‘‘(I) through a letter carrier; or 

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

12 a commercial or government entity; 

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

14 post office an opportunity to present their views, 

15 which may be by nonbinding survey conducted by 

16 mail; and 

17 ‘‘(C) if the Postal Service determines to dis18 continue the post office, provide adequate public no19 tice of its intention to discontinue such post office 

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

21 discontinuance to persons served by such post office. 

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

23 whether or not to discontinue a post office— 

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

25 and appropriate— 


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

2 community served by such post office; 

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

4 businesses, including small businesses, in the 

5 area; 

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

7 employees of the Postal Service employed at 

8 such office; 

9 ‘‘(iv) whether such discontinuance is con10 sistent with the policy of the Government, as 

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

12 Postal Service shall provide a maximum degree 

13 of effective and regular postal services to rural 

14 areas, communities, and small towns where post 

15 offices are not self-sustaining; 

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

17 served by the post office lacks access to Inter18 net phone service; 

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

20 served by the post office would continue after 

21 the discontinuance to receive substantially simi22 lar access to essential items and time-sensitive 

23 communications; 

24 ‘‘(vii) the proximity and accessibility of 

25 other post offices; 


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

3 such discontinuance; and 

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

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

7 provision of the Occupational Safety and Health Act 

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

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

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

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

14 Such determination and findings shall be made available 

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

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

17 discontinue a post office until 60 days after its written 

18 determination is made available to persons served by such 

19 post office. 

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

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

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


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

2 section— 

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

4 inserting ‘‘discontinue’’; and 

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

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

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

9 ‘‘paragraph (6)’’. 

10 SEC. 204. CHANGES TO MAIL DELIVERY SCHEDULE. 

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

12 Postal Service may establish a general, nationwide delivery 

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

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

15 United States Code, if— 

16 (1) the Postal Service determines that such a 

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

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

20 date of enactment of this Act. 

21 (b) IMPLEMENTATION.— 

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

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


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1 (A) identify customers and communities 

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

5 ‘‘particularly affected’’ in the Advisory Opinion 

6 on Elimination of Saturday Delivery issued by 

7 the Commission on March 24, 2011; 

8 (B) develop measures to ameliorate any 

9 disproportionately negative impact the change 

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

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

14 report that includes the determination required 

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

17 this paragraph to— 

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

21 (ii) the Committee on Oversight and 

22 Government Reform of the House of Rep23 resentatives; and 

24 (iii) the Commission. 


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

2 subsection shall be construed to affect the authority 

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

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

7 date of enactment of this Act, the Comptroller General 

8 of the United States shall submit to the Committee on 

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

12 the extent to which a change in delivery schedule would 

13 improve the financial condition of the Postal Service and 

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

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

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

20 (1) require the decrease or increase in delivery 

21 frequency for any route for which the Postal Service 

22 provided delivery on fewer than 6 days per week as 

23 of the date of enactment of this Act; 

24 (2) authorize any change in— 


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1 (A) the days and times that postal retail 

2 service or any mail acceptance is available at 

3 postal retail facilities or processing facilities; or 

4 (B) the locations at which postal retail 

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

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

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

11 Federal holiday, or any other specific day of the 

12 week; or 

13 (5) prohibit the Postal Service from exercising 

14 its authority to make changes to processing or retail 

15 networks. 

16 (e) PACKAGES.—Notwithstanding any other provision 

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

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

21 was eligible to receive package service 6 days per 

22 week as of January 1, 2013; and 

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

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

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

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

7 of the United States, Domestic Mail Manual to ensure 

8 that the provisions of section 508.3.2.10 of such manual, 

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

10 on which the Postal Service does not deliver the mail 

11 under the established delivery schedule. 

12 SEC. 205. DELIVERY POINT MODERNIZATION. 

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

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

15 end the following: 

16 ‘‘§ 3692. Delivery point modernization 

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

18 definitions shall apply: 

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

22 of mail receptacles at a single location. 

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

24 delivery’ means a primary mode of mail delivery 

25 whereby mail is delivered to a mail receptacle that 


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1 is situated at the edge of a public sidewalk abutting 

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

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

4 point’ means a mailbox or other receptacle to which 

5 mail is delivered. 

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

8 field unit with responsibility for postal operations in 

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

11 Service). 

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

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

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

17 or near a postal customer’s door; or 

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

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

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

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

25 to the delivery point of a postal customer. 


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

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

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

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

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

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

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

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

10 after the date of enactment of the Postal Reform 

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

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

14 Postal Service shall carry out a program to convert 

15 business addresses with door delivery on the date of 

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

18 ‘‘(3) RESIDENTIAL ADDRESS CONVERSION.— 

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

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

23 residential addresses within the district office’s 

24 service area that are appropriate candidates for 

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1 mary mode of delivery, in accordance with 

2 standards established by the Postal Service. 

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

4 than 1 year after the date of enactment of the 

5 Postal Reform Act of 2013, and consistent with 

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

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

10 door delivery to a more cost-effective primary 

11 mode of delivery. 

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

15 ‘‘(i) solicit and consider input from 

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

18 owners; and 

19 ‘‘(ii) place centralized delivery points 

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

22 and respect for private property rights. 

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

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


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

2 the Postal Service may provide door delivery if— 

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

5 curbside delivery; 

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

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

9 of 1986; or 

10 ‘‘(C) the Postal Service determines that 

11 the provision of centralized delivery or curbside 

12 delivery would be impractical, would not be 

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

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

16 Postal Service shall establish and maintain a waiver 

17 program under which, upon the application of a 

18 postal customer, door delivery may be continued or 

19 provided to a delivery point if— 

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

23 point; and 


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

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

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

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

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

‘‘3692. Delivery point modernization.’’. 

7 SEC. 206. POSTAL SERVICES FOR MARKET-DOMINANT 

8 PRODUCTS. 

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

10 United States Code, and insert the following: 

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

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

14 shall develop and promote adequate and efficient postal 

15 services with respect to its market-dominant products. 

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

17 of the Postal Service is authorized to determine whether 

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

19 provided for market-dominant products that will generally 

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

22 be delegated to the Postmaster General or to any other 

23 individual or entity. 

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

25 ‘‘(1) NOTICE.— 


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

2 days before the date on which any change in 

3 service under subsection (b) is implemented, the 

4 Board of Governors shall provide public notice 

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

8 made under this section. 

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

10 by subparagraph (A) shall be— 

11 ‘‘(i) published in the Federal Register 

12 and on the website of the Postal Service; 

13 and 

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

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

17 subparagraph (A) shall describe the proposed 

18 change in service, and address the consistency 

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

21 postal service. 

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

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

25 The Board shall give interested persons an opporVerDate Mar 15 2010 04:57 Aug 01, 2014 Jkt 039200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6401 E:\BILLS\S1486.RS S1486

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1 tunity to comment on the proposed change in service 

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

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

8 before the date on which a change in service under 

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

10 shall issue a final decision on the change in service 

11 which shall— 

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

13 and on the website of the Postal Service; and 

14 ‘‘(B) include an explanation responding to 

15 all relevant comments received. 

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

17 service made by the Board of Governors under this 

18 section shall be subject to review by the Commission 

19 under section 3662. 

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

21 construed as authorizing the making of changes under this 

22 section to the nature of service provided for competitive 

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

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

2 shall be subject to this section.’’. 

3 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

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

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

6 section 3661 and inserting the following: 

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

7 TITLE III—POSTAL SERVICE 

8 REVENUE 

9 SEC. 301. POSTAL RATES. 

10 (a) MODERN RATE SYSTEM.— 

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

12 United States Code, is amended by striking section 

13 3622 and inserting the following: 

14 ‘‘§ 3622. Modern rate system 

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

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

18 rates for market-dominant products, consistent with the 

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

21 to any other individual or body. 

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

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


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

2 Service to reduce costs and increase efficiency. 

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

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

6 amounts. 

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

8 established under section 3691. 

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

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

14 construed to prohibit the Board of Governors from 

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

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

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

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

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

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


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

3 sender and the recipient, including but not limited to 

4 the collection, mode of transportation, and priority 

5 of delivery; 

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

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

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

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

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

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

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

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

21 of mail for postal services; 

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

23 kinds of mail matter entered into the postal system 

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


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1 ‘‘(7) the importance of providing classifications 

2 with extremely high degrees of reliability and speed 

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

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

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

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

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

13 infrastructure costs, to help maintain high quality, 

14 affordable postal services; 

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

16 users of promoting intelligent mail and of secure, 

17 sender-identified mail; and 

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

19 other factors as the Board of Governors determines 

20 appropriate. 

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

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

23 provide notice of any adjustment in classes or rates 

24 proposed to be made under this section— 

25 ‘‘(A) not less than— 


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1 ‘‘(i) 90 days before implementation of 

2 any class or rate adjustment that affects 

3 all or substantially all market-dominant 

4 products; and 

5 ‘‘(ii) 45 days before implementation of 

6 any other class or rate adjustment; and 

7 ‘‘(B) to— 

8 ‘‘(i) the public, including by— 

9 ‘‘(I) publication in the Federal 

10 Register; and 

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

12 website; and 

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

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

17 any proposed rate or class adjustment, and shall 

18 take such comments into account in making its final 

19 determination as to a rate or class adjustment. 

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

21 before a rate or class adjustment takes effect, the 

22 Board of Governors shall issue a final decision on 

23 the adjustment which shall— 

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

25 and on the Postal Service’s website; and 


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1 ‘‘(B) include an explanation responding to 

2 all relevant comments received. 

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

4 made by the Board of Governors under this section 

5 shall be subject to review by the Commission under 

6 section 3662. 

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

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

10 market-dominant products as a whole by an annual 

11 percentage that exceeds the percentage change in 

12 the Consumer Price Index for All Urban Consumers 

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

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

17 ‘‘(2) CONDITIONS.— 

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

19 Nothing in this subsection shall preclude the 

20 Board of Governors from rounding rates and 

21 fees to the nearest whole integer, if the effect 

22 of such rounding does not cause the overall rate 

23 increase for any class to exceed the Consumer 

24 Price Index for All Urban Consumers. 


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

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

5 authority’ means the difference between— 

6 ‘‘(I) the maximum amount of a 

7 rate adjustment that the Board of 

8 Governors is authorized to make in 

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

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

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

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

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

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

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

21 Postal Service— 

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

24 year; 


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

3 any year; 

4 ‘‘(III) shall use the unused rate 

5 adjustment authority from the earliest 

6 year such authority first occurred and 

7 then each following year; and 

8 ‘‘(IV) may not exceed the annual 

9 limitation under paragraph (1) by 

10 more than 2 percentage points. 

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

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

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

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

18 the Board of Governors unanimously determines, 

19 after notice and opportunity for public comment, 

20 that such adjustment is reasonable and equitable 

21 and necessary to enable the Postal Service, under 

22 best practices of honest, efficient, and economical 

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

25 adapted to the needs of the United States. 


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

2 of rates and classes established or revised by the 

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

6 ‘‘(f) WORKSHARE DISCOUNTS.— 

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

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

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

12 (a). 

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

15 the Postal Service avoids as a result of workshare 

16 activity, unless— 

17 ‘‘(A) the discount is— 

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

20 or with a new work share initiative related 

21 to an existing postal service; and 

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

24 operation of the Postal Service and the 

25 portion of the discount in excess of the 


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

3 phased out over a limited period of time; 

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

5 costs avoided— 

6 ‘‘(i) is necessary to mitigate rate 

7 shock; and 

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

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

10 with a category of mail consisting exclusively of 

11 mail matter of educational, cultural, scientific, 

12 or informational value; or 

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

15 ‘‘(i) impede the efficient operation of 

16 the Postal Service; 

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

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

22 otherwise would have been if the discount 

23 had not been reduced or eliminated; or 


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

2 the rates paid by mailers not able to take 

3 advantage of the discount. 

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

5 is established, the Board of Governors shall ensure 

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

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

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

11 other information relied on by the Board of 

12 Governors to justify the rate; and 

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

14 not adversely affect rates or services provided to 

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

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

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

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

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

22 to similarly situated mailers; 

23 ‘‘(2) either— 

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

25 the Postal Service through reducing Postal 


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

3 Service; or 

4 ‘‘(B) enhances the performance of mail 

5 preparation, processing, transportation, or other 

6 functions; and 

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

8 marketplace. 

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

11 including the construction and interpretation of the terms 

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

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

15 and shall include an explanation of any deviation from 

16 such decisions in the notice required under subsection 

17 (d)(1).’’. 

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

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

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

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

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


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

2 United States Code, is amended— 

3 (A) by striking subsection (e); 

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

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

7 (C) by redesignating subsections (j) 

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

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

11 paragraph (3)— 

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

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

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

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

17 (k)’’. 

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

20 Code, is amended— 

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

22 ‘‘was available’’; and 

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1 fore the date of enactment of the Postal Reform 

2 Act of 2013,’’. 

3 SEC. 302. NONPOSTAL SERVICES. 

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

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

7 United States Code, is amended— 

8 (A) in subsection (a)— 

9 (i) by redesignating paragraphs (6) 

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

11 respectively; and 

12 (ii) by inserting after paragraph (5) 

13 the following: 

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

15 Postal Reform Act of 2013, and except as provided 

16 in subsection (e)— 

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

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

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

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

25 public demand for— 


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1 ‘‘(I) the Postal Service, rather 

2 than another entity, to provide the 

3 services; or 

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

6 entity, to provide the services; 

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

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

12 or local requirements that generally apply 

13 to persons providing the services; 

14 ‘‘(iv) does not unreasonably interfere 

15 with or detract from the value of postal 

16 services, including— 

17 ‘‘(I) the cost and efficiency of 

18 postal services; and 

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

21 ‘‘(v) will be undertaken in accordance 

22 with all Federal laws generally applicable 

23 to the provision of such services; and 

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

25 net financial position of the Postal Service, 


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1 based on a market analysis provided to the 

2 Postal Regulatory Commission by the 

3 Postal Service; and 

4 ‘‘(B) to classify a service provided under 

5 subparagraph (A) as an experimental product 

6 subject to section 3641;’’; 

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

8 that was offered by the Postal Service on the 

9 date of enactment of the Postal Reform Act of 

10 2013’’ after ‘‘102(5)’’; and 

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

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

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

14 be treated as competitive products.’’. 

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

16 United States Code, is amended by inserting 

17 ‘‘404(a)(6),’’ after ‘‘403(c),’’. 

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

20 the Postal Service shall submit a copy of any market 

21 analysis provided to the Commission under section 

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

23 amended by this section, to the Committee on 

24 Homeland Security and Governmental Affairs of the 


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

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

4 39, United States Code, is amended— 

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

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

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

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

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

11 property and services to States, local governments, and 

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

15 shall determine appropriate. 

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

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

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

19 township, local public authority, school district, 

20 special district, intrastate district, council of 

21 governments, or regional or interstate govern22 ment entity; 

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

24 entity described in clause (i); or 


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

3 a rural community or an unincorporated town 

4 or village; 

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

6 Columbia, the Commonwealth of Puerto Rico, the 

7 United States Virgin Islands, Guam, American 

8 Samoa, the Commonwealth of the Northern Mariana 

9 Islands, and any other territory or possession of the 

10 United States; and 

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

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

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

16 Regulatory Commission, together with the report required 

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

18 revenues of the services provided by the Postal Service 

19 under this section. 

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

22 each service provided under such subsections covers its 

23 costs attributable, as that term is defined in section 

24 3631(b).’’. 

25 (c) CONFORMING AMENDMENTS.— 


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

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

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

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

6 subsection shall be designated as market-dominant or 

7 competitive based on the designation of the nonpostal 

8 service in the Mail Classification Schedule as in effect on 

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

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

11 prevent the Postal Service from establishing nonpostal 

12 products and services that are expressly authorized by 

13 subsection (a)(6).’’. 

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

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

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

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

19 (B) in the first sentence of subsection 

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

22 (C) in the second sentence of subsection 

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


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

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

3 and 

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

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

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

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

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

10 nonpostal services authorized under section 404(e), 

11 and products and services authorized under section 

12 411,’’. 

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

15 (a) MAILABILITY.— 

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

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

20 3001(p) of title 39’’. 

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

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

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

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

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

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

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

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

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

8 section 117 of the Federal Alcohol Administration Act (27 

9 U.S.C. 211). 

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

11 be considered mailable if mailed— 

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

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

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

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

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

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

21 of age— 

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

23 a valid, government-issued photo identification 

24 upon delivery; or 

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


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

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

4 identification upon delivery. 

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

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

8 this section shall take effect on the earlier of— 

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

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

11 States Code, as amended by this section; and 

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

13 Act. 

14 TITLE IV—POSTAL SERVICE 

15 GOVERNANCE 

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

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

18 Code, is amended by striking section 202 and inserting 

19 the following: 

20 ‘‘§ 202. Board of Governors 

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

22 Postal Service shall be directed by a Board of Governors 

23 composed of 9 members appointed in accordance with this 

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

25 Board. 


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1 ‘‘(b) MEMBERSHIP.— 

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

4 ‘‘(A) the Postmaster General; 

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

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

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

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

11 Governors may be members of any one political 

12 party. 

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

16 ‘‘(c) QUALIFICATIONS.— 

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

21 to manage organizations or corporations (in either 

22 the public or private sector) of substantial size. 

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

24 not be a representative of a specific interest using 

25 the Postal Service. 


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

2 the Governors who is appointed to fill a position that 

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

6 on the demonstrated ability of that individual to 

7 manage and improve financially troubled organiza8 tions. 

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

10 for cause. 

11 ‘‘(e) COMPENSATION.— 

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

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

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

15 attends a meeting of the Board. Nothing in this 

16 paragraph shall be construed to limit the number of 

17 days of meetings each year to 42 days. 

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

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

22 ‘‘(f) TERMS.— 

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

24 for a term of 7 years. 


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

2 a vacancy occurring before the expiration of the 

3 term to which the predecessor of that Governor was 

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

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

7 may continue to serve after the expiration of the 

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

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

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

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

14 more than 2 terms. 

15 ‘‘(g) POSTMASTER GENERAL.— 

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

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

20 and term of service of the Postmaster General shall 

21 be determined by the Governors. 

22 ‘‘(h) DEPUTY POSTMASTER GENERAL.— 

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


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

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

4 General shall be determined by the Governors. 

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

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

9 ‘‘(i) EXECUTIVE COMMITTEE.— 

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

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

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

16 Committee shall— 

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

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

20 than 2 members of the Executive Committee 

21 may be members of any one political party; 

22 ‘‘(B) develop and oversee implementation 

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


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

3 under section 403 of the Postal Reform Act of 

4 2013 and updates to the financial plan and 

5 budget; 

6 ‘‘(D) make recommendations to the Board 

7 regarding aspects of postal operations; and 

8 ‘‘(E) assume such other responsibilities as 

9 the Board determines appropriate. 

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

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

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

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

15 members of the Board.’’. 

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

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

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

19 (c) INCUMBENTS; IMPLEMENTATION.— 

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

21 Governor on the Board of Governors of the Postal 

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

24 continue to serve as a Governor until the expiration 

25 of the term of that Governor. 


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1 (2) IMPLEMENTATION OF MEMBERSHIP REDUC2 TION.— 

3 (A) IN GENERAL.—The following vacancies 

4 in the position of Governor shall not be filled: 

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

7 expire on December 8, 2014. 

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

10 expire on December 8, 2015. 

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

13 (i) POSITIONS EXPIRING IN 2014.—If 

14 one of the 2 positions referred to in clause 

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

16 date of enactment of this Act, that vacant 

17 position shall be the position that is not 

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

19 (ii) POSITIONS EXPIRING IN 2015.—If 

20 one of the 2 positions referred to in clause 

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

22 date of enactment of this Act, that vacant 

23 position shall be the position that is not 

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


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

2 States Code, is amended— 

3 (1) in section 102(3)— 

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

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

6 ‘‘202(b)(1)(C)’’; and 

7 (2) in section 203— 

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

9 ‘‘202(g)’’; and 

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

11 ‘‘202(h)’’. 

12 SEC. 402. STRATEGIC ADVISORY COMMISSION ON POSTAL 

13 SERVICE SOLVENCY AND INNOVATION. 

14 (a) ESTABLISHMENT.— 

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

16 Postal Service a Strategic Advisory Commission on 

17 Postal Service Solvency and Innovation (referred to 

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

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

21 Board of Governors of the Postal Service (referred 

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

23 Postmaster General, or any other officer or employee 

24 of the Postal Service. 


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

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

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

7 (2) to foster innovative thinking to address the 

8 challenges facing the Postal Service. 

9 (c) MEMBERSHIP.— 

10 (1) COMPOSITION.—The Advisory Commission 

11 shall be composed of 7 members, of whom— 

12 (A) 3 members shall be appointed by the 

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

15 Chairperson of the Advisory Commission; and 

16 (B) 1 member shall be appointed by each 

17 of— 

18 (i) the majority leader of the Senate; 

19 (ii) the minority leader of the Senate; 

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

22 (iv) the minority leader of the House 

23 of Representatives. 


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

4 (A) significant depth of experience in such 

5 fields as business and public administration; 

6 (B) a reputation for innovative thinking; 

7 (C) familiarity with new and emerging 

8 technologies; and 

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

12 (3) INCOMPATIBLE OFFICES.—An individual 

13 who is appointed to the Advisory Commission may 

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

16 a member of the Advisory Commission, except in the 

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

19 (4) DEADLINE FOR APPOINTMENT.—Each 

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

23 (5) MEETINGS; QUORUM; VACANCIES.— 

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


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1 a majority of the members of the Advisory 

2 Commission. 

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

4 Commission shall constitute a quorum. 

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

7 the Advisory Commission, but shall be filled as 

8 soon as practicable in the same manner in 

9 which the original appointment was made. 

10 (d) DUTIES AND POWERS.— 

11 (1) DUTIES.—The Advisory Commission 

12 shall— 

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

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

18 (i) the financial, operational, and 

19 structural condition of the Postal Service; 

20 (ii) alternative strategies and business 

21 models that the Postal Service could adopt; 

22 (iii) opportunities for additional postal 

23 and nonpostal products and services that 

24 the Postal Service could offer; 


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1 (iv) innovative services that postal 

2 services in foreign countries have offered, 

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

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

8 Postal Service, including— 

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

11 compensation for senior officials of 

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

14 (II) the number and functions of 

15 senior officials of the Postal Service 

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

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

20 (2) HEARINGS.—The Advisory Commission may 

21 hold such hearings, take such testimony, and receive 

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

24 (3) ACCESS TO INFORMATION.—The Advisory 

25 Commission may secure directly from the Postal 


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

4 Commission considers necessary to carry out this 

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

7 agency shall furnish the information described in the 

8 preceding sentence to the Advisory Commission. 

9 (e) PERSONNEL MATTERS.— 

10 (1) ADVISORY COMMISSION MEMBERS.— 

11 (A) COMPENSATION OF MEMBERS.—Each 

12 member of the Advisory Commission shall be 

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

15 for level IV of the Executive Schedule under 

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

17 each day during which the member is engaged 

18 in the actual performance of the duties of the 

19 Advisory Commission. 

20 (B) TRAVEL EXPENSES.—Each member of 

21 the Advisory Commission shall be allowed travel 

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

25 under section 5703 of title 5, United States 


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1 Code, while away from home or regular place of 

2 business in the performance of services for the 

3 Advisory Commission. 

4 (2) STAFF.— 

5 (A) APPOINTMENT AND COMPENSATION.— 

6 The Chairperson, in accordance with rules 

7 agreed upon by the Advisory Commission, shall 

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

10 be necessary to enable the Advisory Commission 

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

13 5, United States Code, governing appointments 

14 in the competitive service, and without regard 

15 to the provisions of chapter 51 and subchapter 

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

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

19 subparagraph may not exceed the annual rate 

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

22 United States Code. 

23 (B) DETAILEES.—Any Federal employee, 

24 including an employee of the Postal Service, 

25 may be detailed to the Advisory Commission 


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1 without reimbursement, and such detail shall be 

2 without interruption or loss of the civil service 

3 rights, status, or privilege of the employee. 

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

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

8 rates for individuals that do not exceed the 

9 daily equivalent of the annual rate of basic pay 

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

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

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

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

16 Commission shall submit a report that contains a 

17 strategic blueprint for the long-term solvency of the 

18 Postal Service to— 

19 (A) the President; 

20 (B) the Committee on Homeland Security 

21 and Governmental Affairs of the Senate; 

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

25 (D) the Board of Governors; and 


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1 (E) the Postmaster General. 

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

4 shall include— 

5 (A) an assessment of the business model of 

6 the Postal Service as of the date on which the 

7 report is submitted; 

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

10 evaluation of the appropriate balance between— 

11 (i) necessary reductions in costs and 

12 services; and 

13 (ii) additional opportunities for 

14 growth and revenue; 

15 (C) a strategy for addressing significant 

16 current and future liabilities; 

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

19 (E) identification of opportunities for new 

20 and innovative products and services; 

21 (F) a strategy for future growth; 

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

23 operate in a sustainable manner 20 years after 

24 the date of enactment of this Act; and 


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1 (H) recommendations for any legislative 

2 changes necessary to implement the strategic 

3 blueprint described in this paragraph. 

4 (g) STUDY AND STRATEGIC PLAN ON INTERAGENCY

5 AGREEMENTS FOR POST OFFICES.— 

6 (1) DUTIES OF ADVISORY COMMISSION.— 

7 (A) STUDY.— 

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

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

13 to post offices, that— 

14 (I) streamline and consolidate 

15 services provided by Federal, State, 

16 and local agencies; 

17 (II) decrease the costs incurred 

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

20 (III) improve the efficiency and 

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

23 agencies. 

24 (ii) CLARIFICATION OF INTER-AGENCY

25 AGREEMENTS.—The study under clause (i) 


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

3 an interagency agreement with— 

4 (I) the Bureau of the Census for 

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

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

9 each State for the provision of driver 

10 licenses, vehicle registration, and voter 

11 registration; 

12 (III) the division of wildlife, the 

13 department of natural resources, or 

14 an equivalent agency, of each State 

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

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

19 general public. 

20 (B) FINDINGS.—The Advisory Commission 

21 shall— 

22 (i) not later than 9 months after the 

23 date of enactment of this Act, submit to 

24 the Postal Service the findings of the study 

25 conducted under subparagraph (A); and 


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1 (ii) incorporate the findings described 

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

4 (2) POSTAL SERVICE STRATEGIC PLAN.— 

5 (A) IN GENERAL.—Not later than 6 

6 months after the date on which the Advisory 

7 Commission submits to the Postal Service the 

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

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

11 post offices to— 

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

15 (ii) the Committee on Oversight and 

16 Government Reform of the House of Rep17 resentatives. 

18 (B) LIMITATIONS.—The strategic plan 

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

21 (C) COST SAVINGS PROJECTIONS.—The 

22 strategic plan submitted under subparagraph 

23 (A) shall include, for each proposed interagency 

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


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

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

5 of— 

6 (1) the date on which the Advisory Commission 

7 submits the report on the strategic blueprint for 

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

9 (2) the date on which the Advisory Commission 

10 submits the findings on interagency agreements for 

11 post offices under subsection (g). 

12 (i) AUTHORIZATION OF APPROPRIATIONS.—There 

13 are authorized to be appropriated out of the Postal Service 

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

15 be necessary to carry out this section. 

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

18 (a) DEFINITIONS.—In this section— 

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

20 Board of Governors of the Postal Service; 

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

22 the plan required to be submitted by the Postmaster 

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

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

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

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

5 United States Code, and other obligations of the 

6 Postal Service. 

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

8 POSTAL SERVICE.— 

9 (1) SOLVENCY PLAN REQUIRED.— 

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

11 described in subparagraph (B), the Postmaster 

12 General shall submit to the Board of Governors 

13 a plan describing the actions the Postal Service 

14 intends to take to achieve long-term solvency. 

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

16 subparagraph is the later of— 

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

18 date of enactment of this Act; and 

19 (ii) the earliest date as of which the 

20 Board of Governors has the number of 

21 members required for a quorum. 

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

23 plan shall take into account— 

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


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

3 Act and the amendments made by this Act; 

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

7 (D) projected changes in mail volume; 

8 (E) the impact of any regulations that the 

9 Postal Service is required to promulgate under 

10 Federal law; 

11 (F) projected changes in the number of 

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

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

15 Postal Service, including the need to maintain, 

16 repair, and replace facilities and equipment. 

17 (3) REVIEW AND SUBMISSION TO CONGRESS.— 

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

20 shall review the long-term solvency plan and 

21 may request that the Postmaster General make 

22 changes to the long-term solvency plan. 

23 (B) SUBMISSION TO CONGRESS.—Not later 

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


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1 shall provide a copy of the long-term solvency 

2 plan to the Committee on Homeland Security 

3 and Governmental Affairs of the Senate and the 

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

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

10 (4) UPDATES.— 

11 (A) ANNUAL UPDATES REQUIRED.—The 

12 Postmaster General shall update and submit to 

13 the Board of Governors the long-term solvency 

14 plan not less frequently than annually for 5 

15 years after the enactment of this Act. 

16 (B) REVIEW BY BOARD OF GOVERNORS.— 

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

20 (c) ANNUAL FINANCIAL PLAN AND BUDGET.— 

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

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

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

24 the Postmaster General shall submit to the Board of 

25 Governors a financial plan and budget for the fiscal 


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1 year that is consistent with the goal of promoting 

2 the long-term solvency of the Postal Service. 

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

5 shall— 

6 (A) promote the financial stability of the 

7 Postal Service and provide for progress towards 

8 the long-term solvency of the Postal Service; 

9 (B) include the annual budget program of 

10 the Postal Service under section 2009 of title 

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

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

14 (C) describe lump-sum expenditures by all 

15 categories traditionally used by the Postal Serv16 ice; 

17 (D) describe capital expenditures, together 

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

20 and proposed sources of funding; 

21 (E) contain estimates of overall debt (both 

22 outstanding and expected to be incurred); 

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

25 the Board of Governors may require; 


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

3 and 

4 (H) address any other issues that the 

5 Board of Governors considers appropriate. 

6 (3) PROCESS FOR SUBMISSION AND APPROVAL

7 OF FINANCIAL PLAN AND BUDGET.— 

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

9 term ‘‘covered recipient’’ means— 

10 (i) the Postmaster General; 

11 (ii) the President; 

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

14 Senate; and 

15 (iv) the Committee on Oversight and 

16 Government Reform of the House of Rep17 resentatives. 

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

20 (i) IN GENERAL.—Upon receipt of a 

21 financial plan and budget under paragraph 

22 (1), the Board of Governors shall promptly 

23 review the financial plan and budget. 

24 (ii) ADDITIONAL INFORMATION.—In 

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

4 out the duties of the Board of Governors. 

5 (C) APPROVAL OF FINANCIAL PLAN AND

6 BUDGET SUBMITTED BY THE POSTMASTER

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

9 fiscal year received under paragraph (1) meets 

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

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

15 submit a notice of approval to each covered 

16 recipient; and 

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

22 (D) DISAPPROVAL OF FINANCIAL PLAN

23 AND BUDGET SUBMITTED BY THE POSTMASTER

24 GENERAL.— 


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1 (i) IN GENERAL.—If the Board of 

2 Governors determines that the financial 

3 plan and budget for a fiscal year under 

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

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

8 Governors shall— 

9 (I) disapprove the financial plan 

10 and budget; 

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

13 reasons for the disapproval; 

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

17 Service; and 

18 (IV) submit the revised financial 

19 plan and budget to each covered re20 cipient. 

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

23 a revised financial plan and budget under 

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

25 shall submit the annual budget program 


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1 for the relevant fiscal year to the Office of 

2 Management and Budget in accordance 

3 with section 2009 of title 39, United 

4 States Code. 

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

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

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

12 of Governors shall— 

13 (i) submit to each covered recipient a 

14 notice of approval under subparagraph 

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

16 (ii) submit to each covered recipient 

17 an approved financial plan and budget for 

18 the fiscal year under subparagraph 

19 (D)(i)(IV). 

20 (F) REVISIONS TO FINANCIAL PLAN AND

21 BUDGET.— 

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


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1 a fiscal year to the Board of Governors at 

2 any time during the fiscal year. 

3 (ii) PROCESS FOR REVIEW, APPROVAL, 

4 DISAPPROVAL, AND POSTMASTER GENERAL

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

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

10 to the original financial plan and budget. 

11 (d) ASSUMPTIONS BASED ON CURRENT LAW.—In 

12 preparing the long-term solvency plan or an annual finan13 cial plan and budget required under this section, the Post14 al Service shall base estimates of revenues and expendi15 tures on Federal law as in effect at the time of the prepa16 ration of the long-term solvency plan or the financial plan 

17 and budget. 

18 SEC. 404. CHIEF INNOVATION OFFICER; INNOVATION 

19 STRATEGY. 

20 (a) CHIEF INNOVATION OFFICER.— 

21 (1) IN GENERAL.—Chapter 2 of part I of title 

22 39, United States Code, is amended by adding at 

23 the end the following: 


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1 ‘‘§ 209. Chief innovation officer 

2 ‘‘(a) ESTABLISHMENT.—There shall be in the Postal 

3 Service a Chief Innovation Officer appointed by the Post4 master General. 

5 ‘‘(b) QUALIFICATIONS.—The Chief Innovation Offi6 cer shall have proven expertise and a record of accomplish7 ment in areas such as— 

8 ‘‘(1) the postal and shipping industry; 

9 ‘‘(2) innovative product research and develop10 ment; 

11 ‘‘(3) brand marketing strategy; 

12 ‘‘(4) new and emerging technology, including 

13 communications technology; or 

14 ‘‘(5) business process management. 

15 ‘‘(c) DUTIES.—The Chief Innovation Officer shall 

16 lead the development and implementation of— 

17 ‘‘(1) innovative postal products and services, 

18 particularly products and services that use new and 

19 emerging technology, including communications 

20 technology, to improve the net financial position of 

21 the Postal Service; and 

22 ‘‘(2) nonpostal products and services authorized 

23 under section 404(a)(6) that have the potential to 

24 improve the net financial position of the Postal Serv25 ice. 


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1 ‘‘(d) DEADLINE.—The Postmaster General shall ap2 point a Chief Innovation Officer not later than 90 days 

3 after the date of enactment of the Postal Reform Act of 

4 2013.’’. 

5 (2) TECHNICAL AND CONFORMING AMEND6 MENT.—The table of sections for chapter 2 of part 

7 I of title 39, United States Code, is amended by 

8 adding at the end the following: 

‘‘209. Chief Innovation Officer.’’. 

9 (b) INNOVATION STRATEGY.— 

10 (1) INITIAL REPORT ON INNOVATION STRAT11 EGY.— 

12 (A) IN GENERAL.—Not later than 9 

13 months after the date of enactment of this Act, 

14 the Postmaster General, acting through the 

15 Chief Innovation Officer, shall submit a report 

16 that contains a comprehensive strategy (re17 ferred to in this subsection as the ‘‘innovation 

18 strategy’’) for improving the net financial posi19 tion of the Postal Service through innovation, 

20 including the offering of new postal and non21 postal products and services, to— 

22 (i) the Committee on Homeland Secu23 rity and Governmental Affairs of the Sen24 ate; and 


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1 (ii) the Committee on Oversight and 

2 Government Reform of the House of Rep3 resentatives. 

4 (B) MATTERS TO BE ADDRESSED.—At a 

5 minimum, the report on innovation strategy re6 quired under subparagraph (A) shall describe— 

7 (i) the specific innovative postal and 

8 nonpostal products and services to be de9 veloped and offered by the Postal Service, 

10 including— 

11 (I) the nature of the market de12 mand to be satisfied by each product 

13 or service; and 

14 (II) the estimated date by which 

15 each product or service will be intro16 duced; 

17 (ii) the cost of developing and offering 

18 each product or service; 

19 (iii) the anticipated sales volume for 

20 each product or service; 

21 (iv) the anticipated revenues and prof22 its to be generated by each product or 

23 service; 

24 (v) the likelihood of success of each 

25 product or service and the risks associated 


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1 with the development and sale of each 

2 product or service; 

3 (vi) the trends anticipated in market 

4 conditions that may affect the success of 

5 each product or service during the 5-year 

6 period beginning on the date of the sub7 mission of the report under subparagraph 

8 (A); 

9 (vii) any innovations designed to im10 prove the net financial position of the 

11 Postal Service, other than the offering of 

12 new products and services; and 

13 (viii) the metrics that will be used to 

14 assess the effectiveness of the innovation 

15 strategy. 

16 (2) ANNUAL REPORT.— 

17 (A) IN GENERAL.—Not later than 1 year 

18 after the date of the submission of the initial 

19 report containing the innovation strategy under 

20 paragraph (1), and annually thereafter for 10 

21 years, the Postmaster General, acting through 

22 the Chief Innovation Officer, shall submit a re23 port on the implementation of the innovation 

24 strategy to— 


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1 (i) the Committee on Homeland Secu2 rity and Governmental Affairs of the Sen3 ate; and 

4 (ii) the Committee on Oversight and 

5 Government Reform of the House of Rep6 resentatives. 

7 (B) MATTERS TO BE ADDRESSED.—At a 

8 minimum, an annual report submitted under 

9 subparagraph (A) shall include— 

10 (i) an update of the initial report on 

11 innovation strategy submitted under para12 graph (1); 

13 (ii) a description of the progress made 

14 by the Postal Service in implementing the 

15 products, services, and other innovations 

16 described in the initial report on innovation 

17 strategy; and 

18 (iii) an analysis of the performance of 

19 each product, service, or other innovation 

20 described in the initial report on innovation 

21 strategy, including— 

22 (I) the revenue generated by each 

23 product or service developed in ac24 cordance with the innovation strategy 

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1 veloping and offering each product or 

2 service for the preceding year; 

3 (II) trends in each market in 

4 which a product or service is intended 

5 to satisfy a demand; 

6 (III) each product or service 

7 identified in the innovation strategy 

8 that is to be discontinued, the date on 

9 which each discontinuance will occur, 

10 and the reasons for each discontinu11 ance; 

12 (IV) each alteration that the 

13 Postal Service plans to make to a 

14 product or service identified in the in15 novation strategy to address changing 

16 market conditions and an explanation 

17 of how each alteration will ensure the 

18 success of the product or service; 

19 (V) the performance of innova20 tions other than new products and 

21 services that are designed to improve 

22 the net financial position of the Postal 

23 Service; and 

24 (VI) the performance of the inno25 vation strategy according to the 


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1 metrics described in paragraph 

2 (1)(B)(viii). 

3 SEC. 405. AREA AND DISTRICT OFFICE STRUCTURE. 

4 (a) DEFINITIONS.—In this section— 

5 (1) the term ‘‘area office’’ means the central of6 fice of an administrative field unit with responsibility 

7 for postal operations in a designated geographic area 

8 that is comprised of district offices; 

9 (2) the term ‘‘district office’’ means the central 

10 office of an administrative field unit with responsi11 bility for postal operations in a designated geo12 graphic area (as defined under regulations, direc13 tives, or other guidance of the Postal Service, as in 

14 effect on January 1, 2013); and 

15 (3) the term ‘‘State’’ includes the District of 

16 Columbia, the Commonwealth of Puerto Rico, the 

17 United States Virgin Islands, Guam, American 

18 Samoa, the Commonwealth of the Northern Mariana 

19 Islands, and any other territory or possession of the 

20 United States. 

21 (b) PLAN REQUIRED.—Not later than 1 year after 

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

23 submit to the Committee on Homeland Security and Gov24 ernmental Affairs of the Senate and the Committee on 

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1 resentatives a comprehensive strategic plan for an area of2 fice and district office structure that will— 

3 (1) be efficient and cost effective; 

4 (2) not substantially and adversely affect the 

5 operations of the Postal Service; and 

6 (3) reduce the total number of area and district 

7 offices. 

8 (c) IMPLEMENTATION.—Not later than 60 days after 

9 the date on which the Postal Service submits the plan 

10 under subsection (b), the Postal Service shall begin imple11 menting the plan, including, where appropriate, by consoli12 dating area and district offices. 

13 (d) STATE LIAISON.—If the Postal Service does not 

14 maintain a district office in a State, the Postal Service 

15 shall designate at least 1 employee of the district office 

16 responsible for Postal Service operations in the State to 

17 represent the needs of Postal Service customers in the 

18 State. An employee designated under this subsection to 

19 represent the needs of Postal Service customers in a State 

20 shall be located in that State. 

21 SEC. 406. INSPECTOR GENERAL OF THE POSTAL SERVICE. 

22 (a) APPOINTMENT OF INSPECTOR GENERAL OF THE

23 POSTAL SERVICE BY PRESIDENT.—The Inspector General 

24 Act of 1978 (5 U.S.C. App.) is amended— 

25 (1) in section 8G— 


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1 (A) in subsection (a)— 

2 (i) in paragraph (2), by striking ‘‘the 

3 Postal Regulatory Commission, and the 

4 United States Postal Service’’ and insert5 ing ‘‘and the Postal Regulatory Commis6 sion’’; 

7 (ii) in paragraph (3), by striking 

8 ‘‘subsection (h)(1)’’ and inserting ‘‘sub9 section (g)(1)’’; and 

10 (iii) in paragraph (4)— 

11 (I) in the matter preceding sub12 paragraph (A), by striking ‘‘sub13 section (h)(1)’’ and inserting ‘‘sub14 section (g)(1)’’; 

15 (II) by striking subparagraph 

16 (B); and 

17 (III) by redesignating subpara18 graphs (C) through (H) as subpara19 graphs (B) through (G), respectively; 

20 (B) in subsection (c), by striking ‘‘Except 

21 as provided under subsection (f) of this section, 

22 the’’ and inserting ‘‘The’’; 

23 (C) by striking subsection (f); and 

24 (D) by redesignating subsections (g) and 

25 (h) as subsections (f) and (g), respectively; 


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1 (2) by inserting after section 8M the following: 

2 ‘‘SEC. 8N. SPECIAL PROVISIONS CONCERNING THE INSPEC3 TOR GENERAL OF THE UNITED STATES POST4 AL SERVICE. 

5 ‘‘(a) In this section— 

6 ‘‘(1) the term ‘Inspector General’ means the In7 spector General of the United States Postal Service; 

8 and 

9 ‘‘(2) the term ‘Governors’ has the meaning 

10 given that term in section 102(3) of title 39, United 

11 States Code. 

12 ‘‘(b) In carrying out the duties and responsibilities 

13 specified in this Act, the Inspector General shall have 

14 oversight responsibility for all activities of the Postal In15 spection Service, including any internal investigation per16 formed by the Postal Inspection Service. The Chief Postal 

17 Inspector shall promptly report the significant activities 

18 being carried out by the Postal Inspection Service to the 

19 Inspector General. 

20 ‘‘(c)(1)(A) The Inspector General shall be under the 

21 authority, direction, and control of the Governors with re22 spect to audits or investigations, or the issuance of sub23 poenas, which require access to sensitive information con24 cerning— 


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1 ‘‘(i) ongoing civil or criminal investigations or 

2 proceedings; 

3 ‘‘(ii) undercover operations; 

4 ‘‘(iii) the identity of confidential sources, in5 cluding protected witnesses; 

6 ‘‘(iv) intelligence or counterintelligence matters; 

7 or 

8 ‘‘(v) other matters the disclosure of which 

9 would constitute a serious threat to national secu10 rity. 

11 ‘‘(B) With respect to the information described under 

12 subparagraph (A), the Governors may prohibit the Inspec13 tor General from carrying out or completing any audit or 

14 investigation, or from issuing any subpoena, after the In15 spector General has decided to initiate, carry out, or com16 plete such audit or investigation or to issue such subpoena, 

17 if the Governors determine that such prohibition is nec18 essary to prevent the disclosure of any information de19 scribed under subparagraph (A) or to prevent the signifi20 cant impairment to the national interests of the United 

21 States. 

22 ‘‘(C) If the Governors exercise any power under sub23 paragraph (A) or (B), the Governors shall notify the In24 spector General in writing stating the reasons for the exer25 cise of such power. Not later than 30 days after receipt 


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1 of any such notice, the Inspector General shall transmit 

2 a copy of the notice to the Committee on Homeland Secu3 rity and Governmental Affairs of the Senate and the Com4 mittee on Oversight and Government Reform of the House 

5 of Representatives, and to other appropriate committees 

6 or subcommittees of the Congress. 

7 ‘‘(2) In carrying out the duties and responsibilities 

8 specified in this Act, the Inspector General— 

9 ‘‘(A) may initiate, conduct, and supervise such 

10 audits and investigations in the United States Postal 

11 Service as the Inspector General considers appro12 priate; and 

13 ‘‘(B) shall give particular regard to the activi14 ties of the Postal Inspection Service with a view to15 ward avoiding duplication and ensuring effective co16 ordination and cooperation. 

17 ‘‘(3) Any report required to be transmitted by the 

18 Governors to the appropriate committees or subcommit19 tees of the Congress under section 5(d) shall also be trans20 mitted, within the seven-day period specified under that 

21 section, to the Committee on Homeland Security and Gov22 ernmental Affairs of the Senate and the Committee on 

23 Oversight and Government Reform of the House of Rep24 resentatives. 


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1 ‘‘(d) Nothing in this Act shall restrict, eliminate, or 

2 otherwise adversely affect any of the rights, privileges, or 

3 benefits of either employees of the United States Postal 

4 Service, or labor organizations representing employees of 

5 the United States Postal Service, under chapter 12 of title 

6 39, United States Code, the National Labor Relations Act 

7 (29 U.S.C. 151 et seq.), any handbook or manual affecting 

8 employee labor relations with the United States Postal 

9 Service, or any collective bargaining agreement. 

10 ‘‘(e) There are authorized to be appropriated, out of 

11 the Postal Service Fund, such sums as may be necessary 

12 for the Office of Inspector General of the United States 

13 Postal Service.’’; and 

14 (3) in section 12— 

15 (A) in paragraph (1), by striking ‘‘or the 

16 Federal Cochairpersons of the Commissions es17 tablished under section 15301 of title 40, 

18 United States Code’’ and inserting ‘‘the Federal 

19 Cochairpersons of the Commissions established 

20 under section 15301 of title 40, United States 

21 Code; or the Board of Governors of the United 

22 States Postal Service’’; and 

23 (B) in paragraph (2), by striking ‘‘or the 

24 Commissions established under section 15301 

25 of title 40, United States Code’’ and inserting 


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1 ‘‘the Commissions established under section 

2 15301 of title 40, United States Code, or the 

3 United States Postal Service’’. 

4 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

5 Title 39, United States Code, is amended— 

6 (1) in section 102(4), by striking ‘‘section 

7 202(e) of this title’’ and inserting ‘‘section 3 of the 

8 Inspector General Act of 1978 (5 U.S.C. App.)’’; 

9 (2) in section 1001(b), in the first sentence, by 

10 inserting ‘‘, and section 3 of the Inspector General 

11 Act of 1978 (5 U.S.C. App.)’’ after ‘‘1001(c) of this 

12 title’’; and 

13 (3) in section 1005(a)(3), by inserting ‘‘, and 

14 section 3 of the Inspector General Act of 1978 (5 

15 U.S.C. App.)’’ after ‘‘1001(c) of this title’’. 

16 (c) APPLICABILITY.— 

17 (1) IN GENERAL.—The amendments made by 

18 this section shall apply with respect to the first indi19 vidual appointed as Inspector General of the Postal 

20 Service after the date of enactment of this Act. 

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

22 Act may be construed to alter the authority or the 

23 length of the term of the individual serving as In24 spector General of the Postal Service on the date of 

25 enactment of this Act. 


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1 TITLE V—FEDERAL EMPLOYEES’ 

2 COMPENSATION ACT 

3 SEC. 501. SHORT TITLE; REFERENCES. 

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

5 ‘‘Workers’ Compensation Reform Act of 2013’’. 

6 (b) REFERENCES.—Except as otherwise expressly 

7 provided, whenever in this title an amendment or repeal 

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

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

11 5, United States Code. 

12 SEC. 502. FEDERAL WORKERS COMPENSATION REFORMS 

13 FOR RETIREMENT-AGE EMPLOYEES. 

14 (a) CONVERSION OF ENTITLEMENT AT RETIREMENT

15 AGE.— 

16 (1) DEFINITIONS.—Section 8101 is amended— 

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

18 at the end; 

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

20 at the end; 

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

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


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

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

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

5 a claim for a period of total disability that com6 menced before the date of enactment of the Work7 ers’ Compensation Reform Act of 2013; 

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

9 means a claim for a period of partial disability that 

10 commenced before the date of enactment of the 

11 Workers’ Compensation Reform Act of 2013; and 

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

13 condition’ means an individual— 

14 ‘‘(A) who— 

15 ‘‘(i) is eligible to receive continuous 

16 periodic compensation for total disability 

17 under section 8105 on the date of enact18 ment of the Workers’ Compensation Re19 form Act of 2013; and 

20 ‘‘(ii) meets the criteria under section 

21 8105(c); 

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

23 Workers’ Compensation Reform Act of 2013— 


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1 ‘‘(i) is eligible to receive continuous 

2 periodic compensation for total disability 

3 under section 8105; and 

4 ‘‘(ii) has sustained a currently irre5 versible severe mental or physical disability 

6 for which the Secretary of Labor has au7 thorized, for at least the 1-year period end8 ing on the date of enactment of the Work9 ers’ Compensation Reform Act of 2013, 

10 constant in-home care or custodial care, 

11 such as placement in a nursing home; or 

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

13 periodic compensation for total disability under 

14 section 8105— 

15 ‘‘(i) for not less than the 3-year pe16 riod ending on the date of enactment of 

17 the Workers’ Compensation Reform Act of 

18 2013; or 

19 ‘‘(ii) if the individual became eligible 

20 to receive continuous periodic compensa21 tion for total disability under section 8105 

22 during the period beginning on the date 

23 that is 3 years before the date of enact24 ment of the Workers’ Compensation Re25 form Act of 2013 and ending on such date 


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

2 period beginning on the date on which the 

3 individual became eligible.’’. 

4 (2) TOTAL DISABILITY.—Section 8105 is 

5 amended— 

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

7 inserting ‘‘IN GENERAL.—Subject to subsection 

8 (b), if’’; 

9 (B) by redesignating subsection (b) as sub10 section (c); and 

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

12 following: 

13 ‘‘(b) CONVERSION OF ENTITLEMENT AT RETIRE14 MENT AGE.— 

15 ‘‘(1) IN GENERAL.—Except as provided in para16 graph (2), the basic compensation for total disability 

17 for an employee who has attained retirement age 

18 shall be 50 percent of the monthly pay of the em19 ployee. 

20 ‘‘(2) EXCEPTIONS.— 

21 ‘‘(A) COVERED RECIPIENTS WHO ARE RE22 TIREMENT AGE, HAVE AN EXEMPT DISABILITY

23 CONDITION, OR FACE FINANCIAL HARDSHIP.— 

24 Paragraph (1) shall not apply to a covered 


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1 claim for total disability by an employee if the 

2 employee— 

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

4 Workers’ Compensation Reform Act of 

5 2013, has attained retirement age; 

6 ‘‘(ii) is an individual who has an ex7 empt disability condition; or 

8 ‘‘(iii) is a member of a household that 

9 would meet the income and assets require10 ments for eligibility for the supplemental 

11 nutrition assistance program as described 

12 in section 5 of the Food and Nutrition Act 

13 of 2008 (7 U.S.C. 2014) (not including 

14 any provisions permitting eligibility due to 

15 benefits received under any other law) if 

16 the basic compensation for total disability 

17 of the employee were provided in accord18 ance with paragraph (1). 

19 ‘‘(B) TRANSITION PERIOD FOR CERTAIN

20 EMPLOYEES.—For a covered claim for total dis21 ability by an employee who is not an employee 

22 described in subparagraph (A), the employee 

23 shall receive the basic compensation for total 

24 disability provided under subsection (a) until 

25 the later of— 


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

2 attains retirement age; and 

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

4 date of enactment of the Workers’ Com5 pensation Reform Act of 2013.’’. 

6 (3) PARTIAL DISABILITY.—Section 8106 is 

7 amended— 

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

9 inserting ‘‘IN GENERAL.—Subject to subsection 

10 (b), if’’; 

11 (B) by redesignating subsections (b) and 

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

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

14 following: 

15 ‘‘(b) CONVERSION OF ENTITLEMENT AT RETIRE16 MENT AGE.— 

17 ‘‘(1) IN GENERAL.—Except as provided in para18 graph (2), the basic compensation for partial dis19 ability for an employee who has attained retirement 

20 age shall be 50 percent of the difference between the 

21 monthly pay of the employee and the monthly wage22 earning capacity of the employee after the beginning 

23 of the partial disability. 

24 ‘‘(2) EXCEPTIONS.— 


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1 ‘‘(A) COVERED RECIPIENTS WHO ARE RE2 TIREMENT AGE OR FACE FINANCIAL HARD3 SHIP.—Paragraph (1) shall not apply to a cov4 ered claim for partial disability by an employee 

5 if the employee— 

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

7 Workers’ Compensation Reform Act of 

8 2013, has attained retirement age; or 

9 ‘‘(ii) is a member of a household that 

10 would meet the income and assets require11 ments for eligibility for the supplemental 

12 nutrition assistance program as described 

13 in section 5 of the Food and Nutrition Act 

14 of 2008 (7 U.S.C. 2014) (not including 

15 any provisions permitting eligibility due to 

16 benefits received under any other law) if 

17 the basic compensation for total disability 

18 of the employee were provided in accord19 ance with paragraph (1). 

20 ‘‘(B) TRANSITION PERIOD FOR CERTAIN

21 EMPLOYEES.—For a covered claim for partial 

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1 tial disability in accordance with subsection (a) 

2 until the later of— 

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

4 attains retirement age; and 

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

6 date of enactment of the Workers’ Com7 pensation Reform Act of 2013.’’. 

8 SEC. 503. AUGMENTED COMPENSATION FOR DEPENDENTS. 

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

10 (1) by redesignating subsection (b) as sub11 section (c); and 

12 (2) by inserting after subsection (a) the fol13 lowing: 

14 ‘‘(b) TERMINATION OF AUGMENTED COMPENSA15 TION.— 

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

17 augmented compensation for dependants under sub18 section (c) shall not be provided. 

19 ‘‘(2) EXCEPTIONS.— 

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

21 claim for total disability by an employee— 

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

24 if the employee is an individual who has an 

25 exempt disability condition; and 


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1 ‘‘(ii) the employee shall receive aug2 mented compensation under subsection (c) 

3 until the date that is 3 years after the date 

4 of enactment of the Workers’ Compensa5 tion Reform Act of 2013 if the employee is 

6 not an employee described in clause (i). 

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

8 claim for partial disability by an employee, the 

9 employee shall receive augmented compensation 

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

11 years after the date of enactment of the Work12 ers’ Compensation Reform Act of 2013. 

13 ‘‘(C) PERMANENT DISABILITY COM14 PENSATED BY A SCHEDULE.—For a claim for a 

15 permanent disability described in section 

16 8107(a) by an employee that commenced before 

17 the date of enactment of the Workers’ Com18 pensation Reform Act of 2013, the employee 

19 shall receive augmented compensation under 

20 subsection (c).’’. 

21 (b) MAXIMUM AND MINIMUM MONTHLY PAY22 MENTS.—Section 8112 is amended— 

23 (1) in subsection (a)— 

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

25 and’’ before ‘‘section 8138’’; 


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1 (B) by striking ‘‘including augmented com2 pensation under section 8110 of this title but’’; 

3 and 

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

appears and inserting ‘‘662 5 ⁄3 percent’’; 

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

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

10 ‘‘(b) EXCEPTIONS.— 

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

12 covered claim for total disability by an employee, if 

13 the employee is an individual who has an exempt 

14 disability condition— 

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

16 disability that is subject to the maximum and 

17 minimum monthly amounts under subsection 

18 (a) shall include any augmented compensation 

19 under section 8110; and 

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

substituting ‘75 percent’ for ‘662 21 ⁄3 percent’ 

22 each place it appears. 

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

24 claim for partial disability by an employee, until the 


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

2 the Workers’ Compensation Reform Act of 2013— 

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

4 disability that is subject to the maximum and 

5 minimum monthly amounts under subsection 

6 (a) shall include any augmented compensation 

7 under section 8110; and 

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

substituting ‘75 percent’ for ‘662 9 ⁄3 percent’ 

10 each place it appears.’’; and 

11 (4) in subsection (c), as redesignated by para12 graph (2), by striking ‘‘subsection (a)’’ and inserting 

13 ‘‘subsections (a) and (b)’’. 

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

15 amended— 

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

percent’’ each place it appears and inserting ‘‘662 17 ⁄3

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

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

20 ‘‘(g) If the death occurred before the date of enact21 ment of the Workers’ Compensation Reform Act of 2013, 

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

‘75 percent’ for ‘662 23 ⁄3 percent’ each place it appears.’’. 

24 (d) DEATH BENEFITS FOR CIVIL AIR PATROL VOL25 UNTEERS.—Section 8141 is amended— 


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1 (1) in subsection (b)(2)(B) by striking ‘‘75 percent’’ and inserting ‘‘662 2 ⁄3 percent (except as pro3 vided in subsection (c))’’; 

4 (2) by redesignating subsection (c) as sub5 section (d); and 

6 (3) by inserting after subsection (b) the fol7 lowing: 

8 ‘‘(c) If the death occurred before the date of enact9 ment of the Workers’ Compensation Reform Act of 2013, 

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

percent’ for ‘662 11 ⁄3 percent’.’’. 

12 SEC. 504. SCHEDULE COMPENSATION PAYMENTS. 

13 Section 8107 is amended— 

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

of 662 15 ⁄3 percent of his monthly pay’’ and inserting 

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

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

18 ‘‘(d) RATE FOR COMPENSATION.— 

19 ‘‘(1) ANNUAL SALARY.— 

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

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

shall be the rate of 662 22 ⁄3 percent of the annual 

23 salary level established under subparagraph 

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

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


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1 amount of compensation payable under the 

2 schedule. 

3 ‘‘(B) ESTABLISHMENT.— 

4 ‘‘(i) IN GENERAL.—The Secretary of 

5 Labor shall establish an annual salary for 

6 purposes of subparagraph (A) in the 

7 amount the Secretary determines will re8 sult in the aggregate cost of payments 

9 made under this section being equal to 

10 what would have been the aggregate cost 

11 of payments under this section if the 

12 amendments made by section 504 of the 

13 Workers’ Compensation Reform Act of 

14 2013 had not been enacted. 

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

16 The annual salary established under clause 

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

18 year by the amount determined by the Sec19 retary of Labor to represent the percent 

20 change in the price index published for De21 cember of the preceding year over the price 

22 index published for the December of the 

23 year prior to the preceding year, adjusted 

24 to the nearest one-tenth of 1 percent. 


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

2 Labor shall calculate the present value for pur3 poses of subparagraph (A) using a rate of inter4 est equal to the average market yield for out5 standing marketable obligations of the United 

6 States with a maturity of 2 years on the first 

7 business day of the month in which the com8 pensation is paid or, in the event that such 

9 marketable obligations are not being issued on 

10 such date, at an equivalent rate selected by the 

11 Secretary of Labor, true discount compounded 

12 annually. 

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

14 occurred before the date of enactment of the Work15 ers’ Compensation Reform Act of 2013, the rate 

under subsection (a) shall be 662 16 ⁄3 percent of the 

17 employee’s monthly pay. 

18 ‘‘(e) SIMULTANEOUS RECEIPT.— 

19 ‘‘(1) TOTAL DISABILITY.—An employee who re20 ceives compensation for total disability under section 

21 8105 may only receive the lump sum of schedule 

22 compensation under this section in addition to and 

23 simultaneously with the benefits for total disability 

24 after the earlier of— 


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1 ‘‘(A) the date on which the basic com2 pensation for total disability of the employee be3 comes 50 percent of the monthly pay of the em4 ployee under section 8105(b); or 

5 ‘‘(B) the date on which augmented com6 pensation of the employee terminates under sec7 tion 8110(b)(2)(A)(ii), if the employee receives 

8 such compensation. 

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

10 receives benefits for partial disability under section 

11 8106 may only receive the lump sum of schedule 

12 compensation under this section in addition to and 

13 simultaneously with the benefits for partial disability 

14 after the earlier of— 

15 ‘‘(A) the date on which the basic com16 pensation for partial disability of the employee 

17 becomes 50 percent of the difference between 

18 the monthly pay of the employee and the 

19 monthly wage-earning capacity of the employee 

20 after the beginning of the partial disability 

21 under section 8106(b); or 

22 ‘‘(B) the date on which augmented com23 pensation of the employee terminates under sec24 tion 8110(b)(2)(B), if the employee receives 

25 such compensation.’’. 


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1 SEC. 505. VOCATIONAL REHABILITATION. 

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

3 (1) in subsection (a)— 

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

5 Labor may’’ and all that follows through ‘‘un6 dergo vocational rehabilitation.’’ and inserting 

7 the following: 

8 ‘‘(a) IN GENERAL.— 

9 ‘‘(1) DIRECTION.—Except as provided in para10 graph (2), not earlier than the date that is 6 months 

11 after the date on which an individual eligible for 

12 wage-loss compensation under section 8105 or 8106 

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

14 Labor determines it would be reasonable under the 

15 circumstances for the individual to begin vocational 

16 rehabilitation, and if vocational rehabilitation may 

17 enable the individual to become capable of more 

18 gainful employment, the Secretary of Labor shall di19 rect the individual to participate in developing a 

20 comprehensive return to work plan and to undergo 

21 vocational rehabilitation at a location a reasonable 

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

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

24 Education, and Welfare in carrying out the pur25 poses of chapter 4 of title 29’’ and inserting 

26 ‘‘the Secretary of Education in carrying out the 


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1 purposes of the Rehabilitation Act of 1973 (29 

2 U.S.C. 701 et seq.)’’; 

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

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

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

6 and 

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

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

9 not direct an individual who has attained retirement 

10 age to participate in developing a comprehensive re11 turn to work plan or to undergo vocational rehabili12 tation.’’; 

13 (2) by redesignating subsection (b) as sub14 section (c); 

15 (3) by inserting after subsection (a) the fol16 lowing: 

17 ‘‘(b) CONTENTS OF RETURN TO WORK PLAN.—A re18 turn to work plan developed under subsection (a)— 

19 ‘‘(1) shall— 

20 ‘‘(A) set forth specific measures designed 

21 to increase the wage-earning capacity of an in22 dividual; 

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

24 and education of the individual and the trainVerDate Mar 15 2010 04:57 Aug 01, 2014 Jkt 039200 PO 00000 Frm 00129 Fmt 6652 Sfmt 6401 E:\BILLS\S1486.RS S1486

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1 ing, educational, and employment opportunities 

2 reasonably available to the individual; and 

3 ‘‘(C) provide that any employment under4 taken by the individual under the return to 

5 work plan be at a location a reasonable distance 

6 from the residence of the individual; 

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

8 out of amounts in the Employees’ Compensation 

9 Fund reasonable expenses of vocational rehabilita10 tion (which may include tuition, books, training fees, 

11 supplies, equipment, and child or dependent care) 

12 during the course of the plan; and 

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

14 years, unless the Secretary finds good cause to grant 

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

16 years.’’; 

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

18 (A) by inserting ‘‘COMPENSATION.—’’ be19 fore ‘‘Notwithstanding’’; and 

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

21 undertaken pursuant to such rehabilitation’’; 

22 and 

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

24 ‘‘(d) ASSISTED REEMPLOYMENT AGREEMENTS.— 


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

2 into an assisted reemployment agreement with an 

3 agency or instrumentality of any branch of the Fed4 eral Government or a State or local government or 

5 a private employer that employs an individual eligi6 ble for wage-loss compensation under section 8105 

7 or 8106 to enable the individual to return to produc8 tive employment. 

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

10 agreement under paragraph (1)— 

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

12 use amounts in the Employees’ Compensation 

13 Fund to reimburse an employer in an amount 

14 equal to not more than 100 percent of the com15 pensation the individual would otherwise receive 

16 under section 8105 or 8106; and 

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

18 3 years. 

19 ‘‘(e) LIST.—To facilitate the hiring of individuals eli20 gible for wage-loss compensation under section 8105 or 

21 8106, the Secretary shall provide a list of such individuals 

22 to the Office of Personnel Management, which the Office 

23 of Personnel Management shall provide to all agencies and 

24 instrumentalities of the Federal Government.’’. 


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1 (b) EMPLOYEES’ COMPENSATION FUND.—Section 

2 8147 is amended by adding at the end: 

3 ‘‘(d) Notwithstanding subsection (b), any benefits or 

4 other payments paid to or on behalf of an employee under 

5 this subchapter or any extension or application thereof for 

6 a recurrence of injury, consequential injury, aggravation 

7 of injury, or increase in percentage of impairment to a 

8 member for which compensation is provided under the 

9 schedule under section 8107 suffered in a permanent posi10 tion with an agency or instrumentality of the United 

11 States while the employment with the agency or instru12 mentality is covered under an assisted reemployment 

13 agreement entered into under section 8104(d) shall not 

14 be included in total cost of benefits and other payments 

15 in the statement provided to the agency or instrumentality 

16 under subsection (b) if the injury was originally incurred 

17 in a position not covered by an assisted reemployment 

18 agreement.’’. 

19 (c) TERMINATION OF VOCATIONAL REHABILITATION

20 REQUIREMENT AFTER RETIREMENT AGE.—Section 

21 8113(b) is amended by adding at the end the following: 

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

23 be required to undergo vocational rehabilitation.’’. 


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1 (d) MANDATORY BENEFIT REDUCTION FOR NON2 COMPLIANCE.—Section 8113(b) is amended by striking 

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

4 (e) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

6 15 of title 31, United States Code, is amended by 

7 adding at the end the following: 

8 ‘‘§ 1538. Authorization for assisted reemployment 

9 ‘‘Funds may be transferred from the Employees’ 

10 Compensation Fund established under section 8147 of 

11 title 5 to the applicable appropriations account for an 

12 agency or instrumentality of any branch of the Federal 

13 Government for the purposes of reimbursing the agency 

14 or instrumentality in accordance with an assisted reem15 ployment agreement entered into under section 8104 of 

16 title 5.’’. 

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

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

19 amended by inserting after the item relating to sec20 tion 1537 the following: 

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

21 SEC. 506. REPORTING REQUIREMENTS. 

22 (a) IN GENERAL.—Chapter 81 is amended by insert23 ing after section 8106 the following: 


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1 ‘‘§ 8106a. Reporting requirements 

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

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

5 or 8106; and 

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

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

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

11 the manner and at the times the Secretary specifies. 

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

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

17 and the value of which can be estimated. 

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

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

22 omits or understates any part of the earnings of the 

23 employee in such an affidavit or other report shall 

24 forfeit the right to compensation with respect to any 

25 period for which the report was required. 


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

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

6 section 8129, unless recovery is waived under that 

7 section.’’. 

8 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

‘‘8106a. Reporting requirements.’’. 

11 SEC. 507. DISABILITY MANAGEMENT REVIEW; INDE12 PENDENT MEDICAL EXAMINATIONS. 

13 Section 8123 is amended by adding at the end the 

14 following: 

15 ‘‘(e) DISABILITY MANAGEMENT REVIEW.— 

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

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

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

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

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

23 review process established under paragraph 

24 (2)(A). 


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

2 Labor shall— 

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

5 monitoring the disability status and extent of 

6 injury of each covered employee; and 

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

10 ‘‘(3) PHYSICAL EXAMINATIONS REQUIRED.— 

11 Under the disability management review process, the 

12 Secretary of Labor shall periodically require covered 

13 employees to submit to physical examinations under 

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

18 the injury to and disability of the covered employee. 

19 ‘‘(4) FREQUENCY.— 

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

22 the process and criteria for determining when 

23 and how frequently a physical examination 

24 should be conducted for a covered employee. 

25 ‘‘(B) MINIMUM FREQUENCY.— 


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

3 than a brief period after the date on which 

4 a covered employee has been in continuous 

5 receipt of compensation for total disability 

6 under section 8015 for 6 months. 

7 ‘‘(ii) SUBSEQUENT EXAMINATIONS.— 

8 After the initial physical examination, 

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

11 once every 3 years. 

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

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

16 a claim for compensation for total disability 

17 under section 8105 may at any time submit a 

18 request for the Secretary of Labor to promptly 

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

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

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

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


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1 ‘‘(ii) the Chief Human Capital Officer 

2 of the agency or instrumentality; or 

3 ‘‘(iii) if the agency or instrumentality 

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

6 to those of a Chief Human Capital Officer 

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

9 paragraph. 

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

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

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

18 has determined, based on the materials in 

19 the file and other information known to 

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

23 ‘‘(iii) copies of the materials relating 

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


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

4 ‘‘(D) EXAMINATION.—If the Secretary of 

5 Labor receives a request under this paragraph 

6 before an employee has undergone an initial 

7 physical examination under paragraph 

8 (4)(B)(i), the Secretary shall promptly require 

9 the physical examination of the employee. A 

10 physical examination under this subparagraph 

11 shall satisfy the requirement under paragraph 

12 (4)(B)(i) that an initial physical examination be 

13 conducted. 

14 ‘‘(E) AFTER INITIAL EXAMINATION.— 

15 ‘‘(i) IN GENERAL.—If the Secretary of 

16 Labor receives a request under this para17 graph after an employee has undergone an 

18 initial physical examination under para19 graph (4)(B)(i), the Secretary shall— 

20 ‘‘(I) review the request and the 

21 information, explanation, and other 

22 materials submitted with the request; 

23 and 

24 ‘‘(II) determine whether to re25 quire the physical examination of the 


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1 employee who is the subject of the re2 quest. 

3 ‘‘(ii) NOT GRANTED.—If the Secretary 

4 determines not to grant a request de5 scribed in clause (i), the Secretary shall 

6 promptly notify the officer who made the 

7 request and provide an explanation of the 

8 reasons why the request was denied.’’. 

9 SEC. 508. WAITING PERIOD. 

10 (a) IN GENERAL.—Section 8117 is amended— 

11 (1) in the section heading, by striking ‘‘Time 

12 of accrual of right’’ and inserting ‘‘Waiting 

13 period’’; 

14 (2) in subsection (a)— 

15 (A) in the matter preceding paragraph (1), 

16 by striking ‘‘An employee’’ and all that follows 

17 through ‘‘is not entitled’’ and inserting ‘‘IN

18 GENERAL.—An employee is not entitled to con19 tinuation of pay within the meaning of section 

20 8118 for the first 3 days of temporary disability 

21 or, if section 8118 does not apply, is not enti22 tled’’; 

23 (B) in paragraph (1), by adding ‘‘or’’ at 

24 the end; 

25 (C) by striking paragraph (2); and 


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1 (D) by redesignating paragraph (3) as 

2 paragraph (2); and 

3 (3) in subsection (b)— 

4 (A) by striking ‘‘A Postal Service’’ the first 

5 place it appears and all that follows through ‘‘A 

6 Postal Service’’ the second place it appears and 

7 inserting ‘‘USE OF LEAVE.—An’’; 

8 (B) by striking ‘‘that 3-day period’’ and in9 serting ‘‘the first 3 days of temporary dis10 ability’’; and 

11 (C) by striking ‘‘or is followed by perma12 nent disability’’. 

13 (b) CONTINUATION OF PAY.—Section 8118 is amend14 ed— 

15 (1) in the section heading, by striking ‘‘; elec16 tion to use annual or sick leave’’; 

17 (2) in subsection (b)(1), by striking ‘‘section 

18 8117(b)’’ and inserting ‘‘section 8117’’; 

19 (3) by striking subsection (c); and 

20 (4) by redesignating subsection (d) as sub21 section (c). 

22 (c) TECHNICAL AND CONFORMING AMENDMENTS.— 

23 The table of sections for chapter 81 is amended by strik24 ing the items relating to sections 8117 and 8118 and in25 serting the following: 


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‘‘8117. Waiting period. 

‘‘8118. Continuation of pay.’’. 

1 SEC. 509. ELECTION OF BENEFITS. 

2 (a) IN GENERAL.—Section 8116 is amended by add3 ing at the end the following: 

4 ‘‘(e) RETIREMENT BENEFITS.— 

5 ‘‘(1) IN GENERAL.—An individual entitled to 

6 compensation benefits payable under this subchapter 

7 and under chapter 83 or 84 or any other retirement 

8 system for employees of the Government, for the 

9 same period, shall elect which benefits the individual 

10 will receive. 

11 ‘‘(2) ELECTION.— 

12 ‘‘(A) DEADLINE.—An individual shall 

13 make an election under paragraph (1) in ac14 cordance with such deadlines as the Secretary 

15 of Labor shall establish, which shall be a rea16 sonable period after the individual has received 

17 notice of a final determination that the indi18 vidual is entitled to compensation benefits pay19 able under this subchapter. 

20 ‘‘(B) REVOCABILITY.—An election under 

21 paragraph (1) shall be revocable, notwith22 standing any other provision of law, except for 

23 any period during which an individual— 


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1 ‘‘(i) was qualified for benefits payable 

2 under both this subchapter and under a re3 tirement system described in paragraph 

4 (1); and 

5 ‘‘(ii) was paid benefits under the re6 tirement system after having been notified 

7 of eligibility for benefits under this sub8 chapter. 

9 ‘‘(3) INFORMED CHOICE.—The Secretary of 

10 Labor shall provide information, and shall ensure 

11 that information is provided, to an individual de12 scribed in paragraph (1) about the benefits available 

13 to the individual under this subchapter or under 

14 chapter 83 or 84 or any other retirement system re15 ferred to in paragraph (1) the individual may elect 

16 to receive.’’. 

17 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

18 Sections 8337(f)(3) and 8464a(a)(3) are each amended by 

19 striking ‘‘Paragraphs’’ and inserting ‘‘Except as provided 

20 under chapter 81, paragraphs’’. 

21 SEC. 510. SANCTION FOR NONCOOPERATION WITH FIELD 

22 NURSES. 

23 Section 8123, as amended by section 507, is amended 

24 by adding at the end the following: 

25 ‘‘(f) FIELD NURSES.— 


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1 ‘‘(1) DEFINITION.—In this subsection, the term 

2 ‘field nurse’ means a registered nurse that assists 

3 the Secretary in the medical management of dis4 ability claims under this subchapter and provides 

5 claimants with assistance in coordinating medical 

6 care. 

7 ‘‘(2) AUTHORIZATION.—The Secretary may use 

8 field nurses to coordinate medical services and voca9 tional rehabilitation programs for injured employees 

10 under this subchapter. If an employee refuses to co11 operate with a field nurse or obstructs a field nurse 

12 in the performance of duties under this subchapter, 

13 the right to compensation under this subchapter 

14 shall be suspended until the refusal or obstruction 

15 stops.’’. 

16 SEC. 511. SUBROGATION OF CONTINUATION OF PAY. 

17 (a) IN GENERAL.—Section 8131 is amended— 

18 (1) in subsection (a), in the matter preceding 

19 paragraph (1), by inserting ‘‘continuation of pay or’’ 

20 before ‘‘compensation’’; 

21 (2) in subsection (b), by inserting ‘‘continuation 

22 of pay or’’ before ‘‘compensation’’; and 

23 (3) in subsection (c)— 

24 (A) by inserting ‘‘continuation of pay or’’ 

25 before ‘‘compensation already paid’’; and 


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1 (B) by inserting ‘‘continuation of pay or’’ 

2 before ‘‘compensation payable’’. 

3 (b) ADJUSTMENT AFTER RECOVERY FROM A THIRD

4 PERSON.—Section 8132 is amended— 

5 (1) in the first sentence— 

6 (A) by inserting ‘‘continuation of pay or’’ 

7 before ‘‘compensation is payable’’; 

8 (B) by inserting ‘‘continuation of pay or’’ 

9 before ‘‘compensation from the United States’’; 

10 (C) by striking ‘‘by him or in his behalf’’ 

11 and inserting ‘‘by the beneficiary or on behalf 

12 of the beneficiary’’; 

13 (D) by inserting ‘‘continuation of pay and’’ 

14 before ‘‘compensation paid by the United 

15 States’’; and 

16 (E) by striking ‘‘compensation payable to 

17 him’’ and inserting ‘‘continuation of pay or 

18 compensation payable to the beneficiary’’; 

19 (2) in the second sentence, by striking ‘‘his des20 ignee’’ and inserting ‘‘the designee of the bene21 ficiary’’; and 

22 (3) in the fourth sentence, by striking ‘‘If com23 pensation’’ and all that follows through ‘‘payable to 

24 him by the United States’’ and inserting ‘‘If con25 tinuation of pay or compensation has not been paid 


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1 to the beneficiary, the money or property shall be 

2 credited against continuation of pay or compensation 

3 payable to the beneficiary by the United States’’. 

4 (c) EFFECTIVE DATE.—This section and the amend5 ments made by this section shall take effect on the date 

6 of enactment of this Act. 

7 SEC. 512. INTEGRITY AND COMPLIANCE. 

8 (a) IN GENERAL.—Subchapter I of chapter 81 is 

9 amended by adding at the end the following: 

10 ‘‘§ 8153. Integrity and Compliance Program 

11 ‘‘(a) DEFINITIONS.—In this section— 

12 ‘‘(1) the term ‘FECA program’ means the Fed13 eral Employees Compensation Program administered 

14 under this subchapter; 

15 ‘‘(2) the term ‘improper payment’ has the 

16 meaning given that term in section 2(g) of the Im17 proper Payments Information Act of 2002 (31 

18 U.S.C. 3321 note); 

19 ‘‘(3) the term ‘Inspector General’— 

20 ‘‘(A) means an Inspector General described 

21 in subparagraph (A), (B), or (I) of section 

22 11(b)(1) of the Inspector General Act of 1978 

23 (5 U.S.C. App.); and 


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1 ‘‘(B) does not include the Inspector Gen2 eral of an entity having no employees covered 

3 under the FECA program; 

4 ‘‘(4) the term ‘Integrity and Compliance Pro5 gram’ means the Integrity and Compliance Program 

6 established under subsection (b); 

7 ‘‘(5) the term ‘provider’ means a provider of 

8 medical or other services under the FECA program; 

9 ‘‘(6) the term ‘Secretary’ means the Secretary 

10 of Labor; and 

11 ‘‘(7) the term ‘Task Force’ means the FECA 

12 Integrity and Compliance Task Force established 

13 under subsection (c)(2)(A). 

14 ‘‘(b) INTEGRITY AND COMPLIANCE PROGRAM.—Not 

15 later than 270 days after the date of enactment of this 

16 section, the Secretary shall establish an Integrity and 

17 Compliance Program for the purpose of preventing, identi18 fying, and recovering fraudulent and other improper pay19 ments for the FECA program, which shall include— 

20 ‘‘(1) procedures for identifying potentially im21 proper payments before payment is made to claim22 ants and providers, including, where appropriate, 

23 predictive analytics; 


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1 ‘‘(2) reviews after payment is made to identify 

2 potentially improper payments to claimants and pro3 viders; 

4 ‘‘(3) on-going screening and verification proce5 dures to ensure the continued eligibility of medical 

6 providers to provide services under the FECA pro7 gram, including licensure, Federal disbarment, and 

8 the existence of relevant criminal convictions; 

9 ‘‘(4) provision of appropriate information, edu10 cation, and training to claimants and providers on 

11 requirements to ensure the integrity of the FECA 

12 program, including payments under the FECA pro13 gram; 

14 ‘‘(5) appropriate controls and audits to ensure 

15 that providers adopt internal controls and proce16 dures for compliance with requirements under the 

17 FECA program; 

18 ‘‘(6) procedures to ensure— 

19 ‘‘(A) initial and continuing eligibility of 

20 claimants for compensation, benefits, or services 

21 under the FECA program; and 

22 ‘‘(B) ongoing verification of information in 

23 databases relating to claimants to ensure accu24 racy and completeness; and 


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1 ‘‘(7) sharing and accessing data and informa2 tion with other agencies and instrumentalities of the 

3 United States, including the United States Postal 

4 Service. 

5 ‘‘(c) INTERAGENCY COOPERATION ON ANTI-FRAUD

6 EFFORTS.— 

7 ‘‘(1) IN GENERAL.—In administering the 

8 FECA program, including the Integrity and Compli9 ance Program, the Secretary shall cooperate with 

10 other agencies and instrumentalities of the United 

11 States (including the United States Postal Service) 

12 and the Inspectors General of such agencies and in13 strumentalities to prevent, identify, and recover 

14 fraudulent and other improper payments under the 

15 FECA program. 

16 ‘‘(2) TASK FORCE.— 

17 ‘‘(A) IN GENERAL.—There is established a 

18 task force, which shall be known as the FECA 

19 Integrity and Compliance Task Force. 

20 ‘‘(B) MEMBERSHIP.—The members of the 

21 Task Force shall be— 

22 ‘‘(i) the Secretary, who shall serve as 

23 the Chairperson of the Task Force; 


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1 ‘‘(ii) the Postmaster General, who 

2 shall serve as the Vice Chairperson of the 

3 Task Force; 

4 ‘‘(iii) the Attorney General; 

5 ‘‘(iv) the Director of the Office of 

6 Management and Budget; and 

7 ‘‘(v) other appropriate Federal offi8 cials, as determined by the Chairperson 

9 and Vice Chairperson of the Task Force. 

10 ‘‘(C) ADVISORY MEMBERS.—The following 

11 officials shall attend meetings of the Task 

12 Force and participate as ad hoc, advisory mem13 bers, to provide technical assistance and guid14 ance to the Task Force with respect to the du15 ties of the Task Force: 

16 ‘‘(i) The Inspector General of the De17 partment of Labor. 

18 ‘‘(ii) The Inspector General of the 

19 United States Postal Service. 

20 ‘‘(iii) The Inspectors General of other 

21 appropriate agencies and instrumentalities 

22 of the United States that employ a signifi23 cant number of individuals receiving com24 pensation, benefits, or services under the 


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1 FECA program, as determined by the 

2 Chairperson of the Task Force. 

3 ‘‘(D) DUTIES.—The Task Force shall— 

4 ‘‘(i) set forth, in writing, a description 

5 of the respective roles and responsibilities 

6 in preventing, identifying, recovering, and 

7 prosecuting fraud under, and otherwise en8 suring integrity and compliance of, the 

9 FECA program of— 

10 ‘‘(I) the Secretary (including sub11 ordinate officials such as the Director 

12 of the Office of Workers’ Compensa13 tion Programs); 

14 ‘‘(II) the Inspector General of 

15 the Department of Labor; 

16 ‘‘(III) the Inspectors General of 

17 agencies and instrumentalities of the 

18 United States that employ claimants 

19 under the FECA program; 

20 ‘‘(IV) the Attorney General; and 

21 ‘‘(V) any other relevant officials; 

22 ‘‘(ii) develop procedures for sharing 

23 information of possible fraud under the 

24 FECA program or other intentional 

25 misstatements by claimants or providers 


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1 under the FECA program, including proce2 dures addressing— 

3 ‘‘(I) notification of appropriate 

4 officials of the Department of Labor 

5 of potential fraud or other intentional 

6 misstatements, including provision of 

7 supporting information; 

8 ‘‘(II) timely and appropriate re9 sponse by officials of the Department 

10 of Labor to notifications described in 

11 subclause (I); 

12 ‘‘(III) the inclusion of informa13 tion and evidence relating to fraud 

14 and other intentional misstatements 

15 in criminal, civil, and administrative 

16 proceedings relating to the provision 

17 of compensation, benefits, or medical 

18 services (including payments to pro19 viders) under the FECA program; 

20 ‘‘(IV) the coordination of crimi21 nal investigations with the administra22 tion of the FECA program; and 

23 ‘‘(V) the protection of informa24 tion relating to an investigation of 

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1 gram from potential disclosure, in2 cluding requirements that enable in3 vestigative files to be appropriately 

4 separated from case management 

5 files; and 

6 ‘‘(iii) not later than 1 year after the 

7 date of enactment of this section, submit 

8 to the Committee on Homeland Security 

9 and Governmental Affairs of the Senate 

10 and the Committee on Oversight and Gov11 ernment Reform and the Committee on 

12 Education and the Workforce of the House 

13 of Representatives a report that includes 

14 the description and procedures required 

15 under clauses (i) and (ii). 

16 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

17 this subsection shall be construed to limit or restrict 

18 any authority of an Inspector General. 

19 ‘‘(d) IMPROVEMENTS TO ACCESS OF FEDERAL DATA20 BASES.— 

21 ‘‘(1) IN GENERAL.—In order to improve compli22 ance with the requirements under and the integrity 

23 of the FECA program, or as required to otherwise 

24 detect and prevent improper payments under the 

25 FECA program (including for purposes of computer 


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1 matching under subsection (e)(1)(D)), upon written 

2 request— 

3 ‘‘(A) the Commissioner of Social Security 

4 shall make available to the Secretary, the Post5 master General, and each Inspector General the 

6 Social Security earnings information of a living 

7 or deceased employee; 

8 ‘‘(B) the Director of the Office of Per9 sonnel Management shall make available to the 

10 Secretary, the Postmaster General, and each 

11 Inspector General the information in the data12 bases of Federal employees and retirees main13 tained by the Director; and 

14 ‘‘(C) the Secretary of Veterans Affairs 

15 shall make available to the Secretary, the Post16 master General, and each Inspector General the 

17 information in the database of disabled individ18 uals maintained by the Secretary of Veterans 

19 Affairs. 

20 ‘‘(2) NATIONAL DIRECTORY OF NEW HIRES.— 

21 Upon written request, the Secretary of Health and 

22 Human Services shall make available to the Sec23 retary, the Postmaster General, each Inspector Gen24 eral, and the Comptroller General of the United 

25 States the information in the National Directory of 


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1 New Hires for purposes of carrying out this sub2 chapter, in order to improve compliance with the re3 quirements under and the integrity of the FECA 

4 program, or as required to otherwise detect and pre5 vent improper payments under the FECA program 

6 (including for purposes of computer matching under 

7 subsection (e)(1)(D)). The Comptroller General may 

8 obtain information from the National Directory of 

9 New Hires for purposes of any audit, evaluation, or 

10 investigation, including any audit, evaluation, or in11 vestigation relating to program integrity. 

12 ‘‘(3) PROCEDURES.—The Secretary shall estab13 lish procedures for correlating the identity and sta14 tus of recipients of compensation, benefits, or serv15 ices under this subchapter with Social Security earn16 ings information described in paragraph (1)(A). 

17 ‘‘(4) PROVISION.—Information requested under 

18 this subsection shall be provided— 

19 ‘‘(A) in a timely manner; 

20 ‘‘(B) at a reasonable cost to the Secretary, 

21 the Postmaster General, or an Inspector Gen22 eral; 

23 ‘‘(C) without cost to the Comptroller Gen24 eral of the United States; and 


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1 ‘‘(D) in the manner, frequency, and form 

2 reasonably specified by the officer making the 

3 request, which, upon request, shall include elec4 tronic form. 

5 ‘‘(5) ASSESSMENT OF DATA COST-EFFECTIVE6 NESS.— 

7 ‘‘(A) IN GENERAL.—The Secretary shall 

8 consider and assess procedures for correlating 

9 the identity and status of recipients of com10 pensation, benefits, or services under this sub11 chapter with information relating to employees, 

12 retirees, and individuals described in subpara13 graphs (B) and (C) of paragraph (1) and para14 graph (2). 

15 ‘‘(B) REPORT.—Not later than 1 year 

16 after the date of enactment of this section, the 

17 Secretary shall submit to the Committee on 

18 Homeland Security and Governmental Affairs 

19 of the Senate and the Committee on Oversight 

20 and Government Reform and the Committee on 

21 Education and the Workforce of the House of 

22 Representatives a report on the cost-effective23 ness of the use of the databases described in 

24 subparagraphs (B) and (C) of paragraph (1) 

25 and paragraph (2) for program compliance and 


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1 integrity. The report required under this sub2 paragraph may be included as part of the re3 port required under subsection (f). 

4 ‘‘(6) UNITED STATES POSTAL SERVICE FECA

5 ENROLLEE DATABASE.—Not later than 180 days 

6 after the date of enactment of this section, in order 

7 to track, verify, and communicate with the Secretary 

8 and other relevant entities, the Postmaster General 

9 shall establish an electronic database of information 

10 relating to employees of the United States Postal 

11 Service who have applied for or are receiving com12 pensation, benefits, or services under this sub13 chapter. 

14 ‘‘(7) RULE OF CONSTRUCTION.—Nothing in 

15 this subsection shall be construed to limit the au16 thority of the Comptroller General of the United 

17 States under section 716 of title 31. 

18 ‘‘(e) GENERAL PROTOCOLS AND SECURITY.— 

19 ‘‘(1) ESTABLISHMENT.— 

20 ‘‘(A) IN GENERAL.—In order to ensure 

21 strong information security and privacy stand22 ards, the Task Force shall establish protocols 

23 for the secure transfer and storage of any infor24 mation provided to an individual or entity 

25 under this section. 


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1 ‘‘(B) CONSIDERATIONS.—In establishing 

2 protocols under subparagraph (A), the Task 

3 Force shall consider any recommendations sub4 mitted to the Secretary by the Inspector Gen5 eral of the Department of Health and Human 

6 Services with respect to the secure transfer and 

7 storage of information, and to comply with pri8 vacy laws and best practices. 

9 ‘‘(C) FRAUD CASE PROTECTION.—The 

10 Task Force shall establish protocols and proce11 dures to enable information and materials relat12 ing to an active investigation of possible fraud 

13 relating to the FECA program to be appro14 priately kept separate from the files for employ15 ees relating to the provision of compensation, 

16 benefits, or services under the FECA program. 

17 ‘‘(D) COMPUTER MATCHING BY FEDERAL

18 AGENCIES FOR PURPOSES OF INVESTIGATION

19 AND PREVENTION OF IMPROPER PAYMENTS

20 AND FRAUD.— 

21 ‘‘(i) IN GENERAL.—Except as pro22 vided in this subparagraph, in accordance 

23 with section 552a (commonly known as the 

24 Privacy Act of 1974), the Secretary, the 

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1 eral, and the head of each agency may 

2 enter into computer matching agreements 

3 that allow ongoing data matching (which 

4 shall include automated data matching) in 

5 order to assist in the detection and preven6 tion of improper payments under the 

7 FECA program. 

8 ‘‘(ii) REVIEW.—Not later than 60 

9 days after a proposal for an agreement 

10 under clause (i) has been presented to a 

11 Data Integrity Board established under 

12 section 552a(u) for consideration, the Data 

13 Integrity Board shall approve or deny the 

14 agreement. 

15 ‘‘(iii) TERMINATION DATE.—An 

16 agreement under clause (i)— 

17 ‘‘(I) shall have a termination 

18 date of less than 3 years; and 

19 ‘‘(II) during the 3-month period 

20 ending on the date on which the 

21 agreement is scheduled to terminate, 

22 may be renewed by the agencies enter23 ing the agreement for not more than 

24 3 years. 


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1 ‘‘(iv) MULTIPLE AGENCIES.—For pur2 poses of this subparagraph, section 

3 552a(o)(1) shall be applied by substituting 

4 ‘between the source agency and the recipi5 ent agency or non-Federal agency or an 

6 agreement governing multiple agencies’ for 

7 ‘between the source agency and the recipi8 ent agency or non-Federal agency’ in the 

9 matter preceding subparagraph (A). 

10 ‘‘(v) COST-BENEFIT ANALYSIS.—An 

11 agreement under clause (i) may be entered 

12 without regard to section 552a(o)(1)(B), 

13 relating to a cost-benefit analysis of the 

14 proposed matching program. 

15 ‘‘(vi) GUIDANCE BY THE OFFICE OF

16 MANAGEMENT AND BUDGET.—Not later 

17 than 6 months after the date of enactment 

18 of the Workers’ Compensation Reform Act 

19 of 2013, and in consultation with the 

20 Council of Inspectors General on Integrity 

21 and Efficiency, the Secretary of Health 

22 and Human Services, the Commissioner of 

23 Social Security, and the head of any other 

24 relevant agency, the Director of the Office 

25 of Management and Budget shall— 


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1 ‘‘(I) issue guidance for agencies 

2 regarding implementing this subpara3 graph, which shall include standards 

4 for reimbursement costs, when nec5 essary, between agencies; and 

6 ‘‘(II) establish standards and de7 velop standard matching agreements 

8 for the purpose of improving the proc9 ess for establishing data use or com10 puter matching agreements. 

11 ‘‘(2) COMPLIANCE.—The Secretary, the Post12 master General, and each Inspector General shall 

13 ensure that any information provided to an indi14 vidual or entity under this section is provided in ac15 cordance with protocols established under paragraph 

16 (1). 

17 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

18 this section shall be construed to affect the rights of 

19 an individual under section 552a(p). 

20 ‘‘(f) REPORT.—Not later than 1 year after the date 

21 of enactment of this section, and annually thereafter for 

22 5 years, the Secretary shall submit a report on the activi23 ties of the Secretary under this section, including imple24 mentation of the Integrity and Compliance Program, to— 


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1 ‘‘(1) the Committee on Homeland Security and 

2 Governmental Affairs of the Senate; and 

3 ‘‘(2) the Committee on Oversight and Govern4 ment Reform and the Committee on Education and 

5 the Workforce of the House of Representatives. 

6 ‘‘(g) GAO REVIEW.—The Comptroller General of the 

7 United States shall— 

8 ‘‘(1) conduct periodic reviews of the Integrity 

9 and Compliance Program; and 

10 ‘‘(2) submit reports on the results of the re11 views under paragraph (1) to the Committee on 

12 Homeland Security and Governmental Affairs of the 

13 Senate and the Committee on Oversight and Govern14 ment Reform and the Committee on Education and 

15 the Workforce of the House of Representatives not 

16 later than— 

17 ‘‘(A) 2 years after the date of enactment 

18 of this section; and 

19 ‘‘(B) 3 years after submission of the report 

20 under subparagraph (A).’’. 

21 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

22 The table of sections for chapter 81 is amended by insert23 ing after the item relating to section 8152 the following: 

‘‘8153. Integrity and Compliance Program.’’. 


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1 (c) EFFECTIVE DATE.—This section and the amend2 ments made by this section shall take effect on the date 

3 of enactment of this Act. 

4 SEC. 513. AMOUNT OF COMPENSATION. 

5 (a) INJURIES TO FACE, HEAD, AND NECK.—Section 

6 8107(c)(21) is amended— 

7 (1) by striking ‘‘not to exceed $3,500’’ and in8 serting ‘‘in proportion to the severity of the dis9 figurement, not to exceed $50,000,’’; and 

10 (2) by adding at the end the following: ‘‘The 

11 maximum amount of compensation under this para12 graph shall be increased on March 1 of each year by 

13 the amount determined by the Secretary of Labor to 

14 represent the percent change in the price index pub15 lished for December of the preceding year over the 

16 price index published for the December of the year 

17 prior to the preceding year, adjusted to the nearest 

18 one-tenth of 1 percent.’’. 

19 (b) FUNERAL EXPENSES.—Section 8134(a) is 

20 amended— 

21 (1) by striking ‘‘$800’’ and inserting ‘‘$6,000’’; 

22 and 

23 (2) by adding at the end the following: ‘‘The 

24 maximum amount of compensation under this sub25 section shall be increased on March 1 of each year 


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1 by the amount determined by the Secretary of Labor 

2 to represent the percent change in the price index 

3 published for December of the preceding year over 

4 the price index published for the December of the 

5 year prior to the preceding year, adjusted to the 

6 nearest one-tenth of 1 percent.’’. 

7 (c) APPLICATION.—The amendments made by this 

8 section shall apply to injuries or deaths, respectively, oc9 curring on or after the date of enactment of this Act. 

10 SEC. 514. TERRORISM INJURIES; ZONES OF ARMED CON11 FLICT. 

12 (a) COVERING TERRORISM INJURIES.—Section 

13 8102(b) is amended in the matter preceding paragraph 

14 (1)— 

15 (1) by inserting ‘‘or from an attack by a ter16 rorist or terrorist organization, either known or un17 known,’’ after ‘‘force or individual,’’; and 

18 (2) by striking ‘‘outside’’ and all that follows 

19 through ‘‘1979)’’ and inserting ‘‘outside of the 

20 United States’’. 

21 (b) CONTINUATION OF PAY IN A ZONE OF ARMED

22 CONFLICT.—Section 8118, as amended by section 508(b) 

23 of this Act, is amended— 


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1 (1) in subsection (b), by striking ‘‘Continu2 ation’’ and inserting ‘‘Except as provided under sub3 section (d)(2), continuation’’; 

4 (2) in subsection (c), as redesignated by section 

5 508(b)(4) of this Act, by striking ‘‘subsection (a)’’ 

6 and inserting ‘‘subsection (a) or (d)’’; and 

7 (3) inserting before subsection (e) the following: 

8 ‘‘(d) CONTINUATION OF PAY IN A ZONE OF ARMED

9 CONFLICT.— 

10 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

11 (a), the United States shall authorize the continu12 ation of pay of an employee described in subpara13 graph (A), (C), (D), or (F) of section 8101(1), 

14 who— 

15 ‘‘(A) files a claim for a period of wage loss 

16 due to an injury in performance of duty in a 

17 zone of armed conflict (as determined by the 

18 Secretary of Labor under paragraph (3)); and 

19 ‘‘(B) files the claim for such wage loss ben20 efit with the immediate superior of the em21 ployee not later than 45 days after the later 

22 of— 

23 ‘‘(i) the termination of the assignment 

24 of the employee to the zone of armed con25 flict; or 


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1 ‘‘(ii) the return of the employee to the 

2 United States. 

3 ‘‘(2) CONTINUATION OF PAY.—Notwithstanding 

4 subsection (b), continuation of pay under this sub5 section shall be furnished for a period not to exceed 

6 135 days without any break in time or waiting pe7 riod, unless controverted under regulations pre8 scribed by the Secretary of Labor. 

9 ‘‘(3) DETERMINATION OF ZONES OF ARMED

10 CONFLICT.—For purposes of this subsection, the 

11 Secretary of Labor, in consultation with the Sec12 retary of State and the Secretary of Defense, shall 

13 determine whether a foreign country or other foreign 

14 geographic area outside of the United States (as de15 fined in section 202(a)(7) of the State Department 

16 Basic Authorities Act of 1956 (22 U.S.C. 

17 4302(a)(7)) is a zone of armed conflict based on 

18 whether— 

19 ‘‘(A) the Armed Forces of the United 

20 States are involved in hostilities in the country 

21 or area; 

22 ‘‘(B) the incidence of civil insurrection, 

23 civil war, terrorism, or wartime conditions 

24 threatens physical harm or imminent danger to 


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1 the health or well-being of United States civil2 ian employees in the country or area; 

3 ‘‘(C) the country or area has been des4 ignated a combat zone by the President under 

5 section 112(c) of the Internal Revenue Code of 

6 1986; 

7 ‘‘(D) a contingency operation involving 

8 combat operations directly affects civilian em9 ployees in the country or area; or 

10 ‘‘(E) there exist other relevant conditions 

11 and factors.’’. 

12 SEC. 515. TECHNICAL AND CONFORMING AMENDMENTS. 

13 Chapter 81 is amended— 

14 (1) in section 8101(1)(D), by inserting ‘‘for an 

15 injury that occurred before the effective date of sec16 tion 204(e) of the District of Columbia Self-Govern17 ment and Governmental Reorganization Act (Public 

18 Law 93–198; 87 Stat. 783; 5 U.S.C. 8101 note)’’ 

19 before the semicolon; 

20 (2) in section 8139, by inserting ‘‘under this 

21 subchapter’’ after ‘‘Compensation awarded’’; and 

22 (3) in section 8148(a), by striking ‘‘section 

23 8106’’ and inserting ‘‘section 8106a’’. 


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1 SEC. 516. REGULATIONS. 

2 (a) IN GENERAL.—As soon as possible after the date 

3 of enactment of this Act, the Secretary of Labor shall pro4 mulgate regulations (which may include interim final reg5 ulations) to carry out this title. 

6 (b) CONTENTS.—The regulations promulgated under 

7 subsection (a) shall include, for purposes of the amend8 ments made by sections 502 and 503, clarification of— 

9 (1) what is a claim; and 

10 (2) what is the date on which a period of dis11 ability, for which a claim is made, commences. 

12 SEC. 517. EFFECTIVE DATE. 

13 Except as otherwise provided in this title, this title 

14 and the amendments made by this title shall take effect 

15 60 days after the date of enactment of this Act. 

16 TITLE VI—PROPERTY MANAGE17 MENT AND EXPEDITED DIS18 POSAL OF REAL PROPERTY 

19 SEC. 601. SHORT TITLE. 

20 This title may be cited as the ‘‘Federal Real Property 

21 Asset Management Reform Act of 2013’’. 

22 SEC. 602. PURPOSE. 

23 The purpose of this title is to increase the efficiency 

24 and effectiveness of the Federal Government in managing 

25 real property by— 


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1 (1) requiring agencies to maintain an up-to2 date inventory of real property; 

3 (2) establishing a Federal Real Property Coun4 cil to develop guidance on and ensure the implemen5 tation of strategies for better managing Federal real 

6 property; and 

7 (3) authorizing a pilot program to expedite the 

8 disposal of surplus real property. 

9 SEC. 603. PROPERTY MANAGEMENT AND EXPEDITED DIS10 POSAL OF REAL PROPERTY. 

11 Chapter 5 of subtitle I of title 40, United States 

12 Code, is amended by adding at the end the following: 

13 ‘‘SUBCHAPTER VII—PROPERTY MANAGEMENT 

14 AND EXPEDITED DISPOSAL OF REAL PROP15 ERTY 

16 ‘‘§ 621. Definitions 

17 ‘‘In this subchapter: 

18 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis19 trator’ means the Administrator of General Services. 

20 ‘‘(2) COUNCIL.—The term ‘Council’ means the 

21 Federal Real Property Council established by section 

22 623(a). 

23 ‘‘(3) DIRECTOR.—The term ‘Director’ means 

24 the Director of the Office of Management and Budg25 et. 


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1 ‘‘(4) DISPOSAL.—The term ‘disposal’ means 

2 any action that constitutes the removal of any real 

3 property from the Federal inventory, including sale, 

4 deed, demolition, or exchange. 

5 ‘‘(5) EXCESS PROPERTY.—The term ‘excess 

6 property’ means any real property under the control 

7 of a Federal agency that the head of the Federal 

8 agency determines is not required to meet the needs 

9 or responsibilities of the Federal agency. 

10 ‘‘(6) FEDERAL AGENCY.—The term ‘Federal 

11 agency’ means— 

12 ‘‘(A) an executive department or inde13 pendent establishment in the executive branch 

14 of the Government; or 

15 ‘‘(B) a wholly owned Government corpora16 tion. 

17 ‘‘(7) FIELD OFFICE.—The term ‘field office’ 

18 means any office of a Federal agency that is not the 

19 headquarters office location for the Federal agency. 

20 ‘‘(8) POSTAL PROPERTY.—The term ‘postal 

21 property’ means any building owned by the United 

22 States Postal Service. 

23 ‘‘(9) SURPLUS PROPERTY.— 

24 ‘‘(A) IN GENERAL.—The term ‘surplus 

25 property’ means excess real property that is not 


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1 required to meet the needs or responsibilities of 

2 any Federal agency. 

3 ‘‘(B) EXCLUSIONS.—The term ‘surplus 

4 property’ does not include— 

5 ‘‘(i) any military installation (as de6 fined in section 2910 of the Defense Base 

7 Closure and Realignment Act of 1990 (10 

8 U.S.C. 2687 note; Public Law 101–510)); 

9 ‘‘(ii) any property that is excepted 

10 from the definition of the term ‘property’ 

11 under section 102; 

12 ‘‘(iii) Indian and native Eskimo prop13 erty held in trust by the Federal Govern14 ment as described in section 

15 3301(a)(5)(C)(iii); 

16 ‘‘(iv) real property operated and main17 tained by the Tennessee Valley Authority 

18 pursuant to the Tennessee Valley Author19 ity Act of 1933 (16 U.S.C. 831 et seq.); 

20 ‘‘(v) any real property the Director 

21 excludes for reasons of national security; 

22 ‘‘(vi) any public lands (as defined in 

23 section 203 of the Public Lands Corps Act 

24 of 1993 (16 U.S.C. 1722)) administered 

25 by— 


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1 ‘‘(I) the Secretary of the Interior, 

2 acting through— 

3 ‘‘(aa) the Director of the 

4 Bureau of Land Management; 

5 ‘‘(bb) the Director of the 

6 National Park Service; 

7 ‘‘(cc) the Commissioner of 

8 Reclamation; or 

9 ‘‘(dd) the Director of the 

10 United States Fish and Wildlife 

11 Service; or 

12 ‘‘(II) the Secretary of Agri13 culture, acting through the Chief of 

14 the Forest Service; or 

15 ‘‘(vii) any property operated and 

16 maintained by the United States Postal 

17 Service. 

18 ‘‘(10) UNDERUTILIZED PROPERTY.—The term 

19 ‘underutilized property’ means a portion or the en20 tirety of any real property, including any improve21 ments, that is used— 

22 ‘‘(A) irregularly or intermittently by the 

23 accountable Federal agency for program pur24 poses of the Federal agency; or 


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1 ‘‘(B) for program purposes that can be 

2 satisfied only with a portion of the property. 

3 ‘‘§ 622. Duties of Federal agencies 

4 ‘‘Each Federal agency shall— 

5 ‘‘(1) maintain adequate inventory controls and 

6 accountability systems for real property under the 

7 control of the Federal agency; 

8 ‘‘(2) develop current and future workforce pro9 jections so as to have the capacity to assess the 

10 needs of the Federal workforce regarding the use of 

11 real property; 

12 ‘‘(3) continuously survey real property under 

13 the control of the Federal agency to identify excess 

14 property, underutilized property, and other real 

15 property suitable to be used for— 

16 ‘‘(A) colocation with other Federal agen17 cies; or 

18 ‘‘(B) consolidation with other facilities; 

19 ‘‘(4) promptly report excess property and un20 derutilized property to the Administrator; 

21 ‘‘(5) establish goals that will lead the Federal 

22 agency to reduce excess property and underutilized 

23 property in the inventory of the Federal agency; 


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1 ‘‘(6) submit to the Council a report on all ex2 cess property and underutilized property in the in3 ventory of the Federal agency, including— 

4 ‘‘(A) whether underutilized property can be 

5 better utilized; and 

6 ‘‘(B) the extent to which the Federal agen7 cy believes that the underutilized property 

8 serves the needs of the Federal agency to retain 

9 underutilized property; 

10 ‘‘(7) adopt workplace practices, configurations, 

11 and management techniques that can achieve in12 creased levels of productivity and decrease the need 

13 for real property assets; 

14 ‘‘(8) assess leased space to identify space that 

15 is not fully used or occupied; 

16 ‘‘(9) on an annual basis and subject to the 

17 guidance of the Council— 

18 ‘‘(A) conduct an inventory of real property 

19 under control of the Federal agency; and 

20 ‘‘(B) make an assessment of each real 

21 property, which shall include— 

22 ‘‘(i) the age and condition of the prop23 erty; 

24 ‘‘(ii) the size of the property in square 

25 footage and acreage; 


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1 ‘‘(iii) the geographical location of the 

2 property, including an address and descrip3 tion; 

4 ‘‘(iv) the extent to which the property 

5 is being utilized; 

6 ‘‘(v) the actual annual operating costs 

7 associated with the property; 

8 ‘‘(vi) the total cost of capital expendi9 tures associated with the property; 

10 ‘‘(vii) sustainability metrics associated 

11 with the property; 

12 ‘‘(viii) the number of Federal employ13 ees and functions housed at the property; 

14 ‘‘(ix) the extent to which the mission 

15 of the Federal agency is dependent on the 

16 property; 

17 ‘‘(x) the estimated amount of capital 

18 expenditures projected to maintain and op19 erate the property over each of the next 5 

20 years after the date of enactment of this 

21 subchapter; and 

22 ‘‘(xi) any additional information re23 quired by the Administrator to carry out 

24 section 624; and 


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1 ‘‘(10) provide to the Council and the Adminis2 trator the information described in paragraph (9)(B) 

3 to be used for the establishment and maintenance of 

4 the database described in section 624. 

5 ‘‘§ 623. Colocation among United States Postal Serv6 ice properties 

7 ‘‘(a) IDENTIFICATION OF POSTAL PROPERTY.—Each 

8 year, the Postmaster General may— 

9 ‘‘(1) identify a list of postal properties with 

10 space available for use by Federal agencies; and 

11 ‘‘(2) submit the list to the Council. 

12 ‘‘(b) SUBMISSION OF LIST OF POSTAL PROPERTIES

13 TO FEDERAL AGENCIES.— 

14 ‘‘(1) IN GENERAL.—Not later than 30 days 

15 after the completion of a list under subsection (a), 

16 the Council shall provide the list to each Federal 

17 agency. 

18 ‘‘(2) REVIEW BY FEDERAL AGENCIES.—Not 

19 later than 90 days after the receipt of the list sub20 mitted under paragraph (1), each Federal agency 

21 shall— 

22 ‘‘(A) review the list; 

23 ‘‘(B) identify real property assets under 

24 the control of the Federal agency; and 

25 ‘‘(C) recommend colocations if appropriate. 


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1 ‘‘(c) TERMS OF COLOCATION.—On approval of the 

2 recommendations under subsection (b) by the Postmaster 

3 General and the applicable agency head, the Federal agen4 cy or appropriate landholding entity may work with the 

5 Postmaster General to establish appropriate terms of a 

6 lease for each postal property. 

7 ‘‘§ 624. Establishment of a Federal Real Property 

8 Council 

9 ‘‘(a) ESTABLISHMENT.—There is established a Fed10 eral Real Property Council. 

11 ‘‘(b) PURPOSE.—The purpose of the Council shall 

12 be— 

13 ‘‘(1) to develop guidance and ensure implemen14 tation of an efficient and effective real property 

15 management strategy; 

16 ‘‘(2) to identify opportunities for the Federal 

17 Government to better manage real property assets; 

18 and 

19 ‘‘(3) to reduce the costs of managing real prop20 erty, including operations, maintenance, and secu21 rity. 

22 ‘‘(c) COMPOSITION.— 

23 ‘‘(1) IN GENERAL.—The Council shall be com24 posed exclusively of— 


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1 ‘‘(A) the senior real property officers of 

2 each Federal agency; 

3 ‘‘(B) the Deputy Director for Management 

4 of the Office of Management and Budget; 

5 ‘‘(C) the Controller of the Office of Man6 agement and Budget; 

7 ‘‘(D) the Administrator; and 

8 ‘‘(E) any other full-time or permanent 

9 part-time Federal officials or employees, as the 

10 Chairperson determines to be necessary. 

11 ‘‘(2) CHAIRPERSON.—The Deputy Director for 

12 Management of the Office of Management and 

13 Budget shall serve as Chairperson of the Council. 

14 ‘‘(3) EXECUTIVE DIRECTOR.— 

15 ‘‘(A) IN GENERAL.—The Chairperson shall 

16 designate an Executive Director to assist in 

17 carrying out the duties of the Council. 

18 ‘‘(B) QUALIFICATIONS; FULL-TIME.—The 

19 Executive Director shall— 

20 ‘‘(i) be appointed from among individ21 uals who have substantial experience in the 

22 areas of commercial real estate and devel23 opment, real property management, and 

24 Federal operations and management; and 

25 ‘‘(ii) serve full time. 


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1 ‘‘(d) MEETINGS.— 

2 ‘‘(1) IN GENERAL.—The Council shall meet 

3 subject to the call of the Chairperson. 

4 ‘‘(2) MINIMUM.—The Council shall meet not 

5 fewer than 4 times each year. 

6 ‘‘(e) DUTIES.—The Council, in consultation with the 

7 Director and the Administrator, shall— 

8 ‘‘(1) not later than 1 year after the date of en9 actment of this subchapter, establish a real property 

10 management plan template, to be updated annually, 

11 which shall include performance measures, specific 

12 milestones, measurable savings, strategies, and gov13 ernment-wide goals based on the goals established 

14 under section 622(5) to reduce surplus property or 

15 to achieve better utilization of underutilized prop16 erty, and evaluation criteria to determine the effec17 tiveness of real property management that are de18 signed— 

19 ‘‘(A) to enable Congress and heads of Fed20 eral agencies to track progress in the achieve21 ment of real property management objectives on 

22 a government-wide basis; 

23 ‘‘(B) to improve the management of real 

24 property; and 


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1 ‘‘(C) to allow for comparison of the per2 formance of Federal agencies against industry 

3 and other public sector agencies in terms of 

4 performance; 

5 ‘‘(2) develop standard use rates consistent 

6 throughout each category of space and with non7 governmental space use rates; 

8 ‘‘(3) develop a strategy to reduce the reliance of 

9 Federal agencies on leased space for long-term needs 

10 if ownership would be less costly; 

11 ‘‘(4) provide guidance on eliminating inefficien12 cies in the Federal leasing process; 

13 ‘‘(5) compile a list of real property assets that 

14 are field offices that are suitable for colocation with 

15 other real property assets; and 

16 ‘‘(6) not later than 1 year after the date of en17 actment of this subchapter and annually during the 

18 4-year period beginning on the date that is 1 year 

19 after the date of enactment of this subchapter and 

20 ending on the date that is 5 years after the date of 

21 enactment of this subchapter, the Council shall sub22 mit to the Director a report that contains— 

23 ‘‘(A) a list of the remaining excess prop24 erty, surplus property, and underutilized prop25 erties of each Federal agency; 


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1 ‘‘(B) the progress of the Council toward 

2 developing guidance for Federal agencies to en3 sure that the assessment required under section 

4 622(9)(B) is carried out in a uniform manner; 

5 and 

6 ‘‘(C) the progress of Federal agencies to7 ward achieving the goals established under sec8 tion 622(5). 

9 ‘‘(f) CONSULTATION.—In carrying out the duties de10 scribed in subsection (e), the Council shall also consult 

11 with representatives of— 

12 ‘‘(1) State, local, tribal authorities, and affected 

13 communities; and 

14 ‘‘(2) appropriate private sector entities and 

15 nongovernmental organizations that have expertise 

16 in areas of— 

17 ‘‘(A) commercial real estate and develop18 ment; 

19 ‘‘(B) government management and oper20 ations; 

21 ‘‘(C) space planning; 

22 ‘‘(D) community development, including 

23 transportation and planning; and 

24 ‘‘(E) historic preservation. 


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1 ‘‘(g) COUNCIL RESOURCES.—The Director and the 

2 Administrator shall provide staffing, and administrative 

3 support for the Council, as appropriate. 

4 ‘‘§ 625. Federal real property inventory and database 

5 ‘‘(a) IN GENERAL.—Not later than 1 year after the 

6 date of enactment of this subchapter, the Administrator 

7 shall establish and maintain a single, comprehensive, and 

8 descriptive database of all real property under the custody 

9 and control of all Federal agencies. 

10 ‘‘(b) CONTENTS.—The database shall include— 

11 ‘‘(1) information provided to the Administrator 

12 under section 622(9)(B); and 

13 ‘‘(2) a list of real property disposals completed, 

14 including— 

15 ‘‘(A) the date and disposal method used 

16 for each real property; 

17 ‘‘(B) the proceeds obtained from the dis18 posal of each real property; 

19 ‘‘(C) the amount of time required to dis20 pose of the real property, including the date on 

21 which the real property is designated as excess 

22 property; 

23 ‘‘(D) the date on which the property is 

24 designated as surplus property and the date on 

25 which the property is disposed; and 


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1 ‘‘(E) all costs associated with the disposal. 

2 ‘‘(c) ACCESSIBILITY.— 

3 ‘‘(1) COMMITTEES.—The database established 

4 under subsection (a) shall be made available on re5 quest to the Committee on Homeland Security and 

6 Governmental Affairs and the Committee on Envi7 ronment and Public Works of the Senate and the 

8 Committee on Oversight and Government Reform 

9 and the Committee on Transportation and Infra10 structure of the House of Representatives. 

11 ‘‘(2) GENERAL PUBLIC.—Not later than 3 years 

12 after the date of enactment of this subchapter and 

13 to the extent consistent with national security, the 

14 Administrator shall make the database established 

15 under subsection (a) accessible to the public at no 

16 cost through the website of the General Services Ad17 ministration. 

18 ‘‘§ 626. Limitation on certain leasing authorities 

19 ‘‘(a) IN GENERAL.—Except as provided in subsection 

20 (b), not later than December 31 of each year following 

21 the date of enactment of this subchapter, a Federal agency 

22 with independent leasing authority shall submit to the 

23 Council a list of all leases, including operating leases, in 

24 effect on the date of enactment of this subchapter that 

25 includes— 


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1 ‘‘(1) the date on which each lease was executed; 

2 ‘‘(2) the date on which ease lease will expire; 

3 ‘‘(3) a description of the size of the space; 

4 ‘‘(4) the location of the property; 

5 ‘‘(5) the tenant agency; 

6 ‘‘(6) the total annual rental rate; and 

7 ‘‘(7) the amount of the net present value of the 

8 total estimated legal obligations of the Federal Gov9 ernment over the life of the contract. 

10 ‘‘(b) EXCEPTION.—Subsection (a) shall not apply 

11 to— 

12 ‘‘(1) the United States Postal Service; 

13 ‘‘(2) the Department of Veterans Affairs; or 

14 ‘‘(3) any other property the President excludes 

15 from subsection (a) for reasons of national security. 

16 ‘‘§ 627. Expedited disposal pilot program 

17 ‘‘(a) ESTABLISHMENT.—The Director shall establish 

18 a pilot program to dispose of, by sale, transfer, or other 

19 means of disposal, any surplus property. 

20 ‘‘(1) PROPERTIES FOR EXPEDITED DISPOSAL.— 

21 ‘‘(A) IN GENERAL.—On an annual basis, 

22 the Director may authorize the expedited dis23 posal of not more than 200 surplus properties. 

24 ‘‘(B) PRIORITY.—In determining which 

25 properties to dispose of, the Director shall give 


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1 priority to surplus properties that have the 

2 highest fair market value and the greatest po3 tential for disposal. 

4 ‘‘(C) COSTS ASSOCIATED WITH DIS5 POSAL.— 

6 ‘‘(i) IN GENERAL.—The Administrator 

7 may obligate an amount to pay any direct 

8 and indirect costs under section 572 re9 lated to identifying and preparing prop10 erties to be reported as excess property by 

11 a Federal agency. 

12 ‘‘(ii) REIMBURSEMENT.—An amount 

13 obligated under clause (i) shall be paid 

14 from the proceeds of any sale of real prop15 erty under this subsection. 

16 ‘‘(iii) NET PROCEEDS.—Net proceeds 

17 shall be distributed under subsection (b). 

18 ‘‘(D) MAXIMUM NET PROCEEDS.—Any real 

19 property authorized to be disposed of by sale of 

20 under subparagraph (A) shall disposed of in a 

21 manner that, as determined by the Adminis22 trator in consultation with the head of the ap23 plicable Federal agency, is structured and mar24 keted to maximize the value to the Federal Gov25 ernment. 


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1 ‘‘(E) MONETARY PROCEEDS REQUIRE2 MENT.—Surplus property may be disposed of 

3 under this section only if disposal of the prop4 erty will generate monetary proceeds to the 

5 Federal Government that— 

6 ‘‘(i) exceed the costs of disposal of the 

7 property; and 

8 ‘‘(ii) are not less than 90 percent of 

9 fair market value. 

10 ‘‘(2) APPLICABILITY OF CERTAIN LAW.—Any 

11 expedited disposal of real property conducted under 

12 this section shall not be subject to— 

13 ‘‘(A) any section of An Act Authorizing the 

14 Transfer of Certain Real Property for Wildlife, 

15 or Other Purposes (16 U.S.C. 667b); 

16 ‘‘(B) sections 107 and 317 of title 23; 

17 ‘‘(C) sections 545(b)(8), 550, 553, 554, 

18 and 1304(b); 

19 ‘‘(D) section 501 of the McKinney-Vento 

20 Homeless Assistance Act (42 U.S.C. 11411); 

21 ‘‘(E) section 47151 of title 49; or 

22 ‘‘(F) section 13(d) of the Surplus Property 

23 Act of 1944 (50 U.S.C. App. 1622(d)). 

24 ‘‘(3) EFFECT.—Except as provided in para25 graph (2), nothing in this subchapter terminates or 


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1 in any way limits the authority of any Federal agen2 cy under any other provision of law to dispose of 

3 real property. 

4 ‘‘(b) USE OF PROCEEDS.— 

5 ‘‘(1) IN GENERAL.—Of the proceeds received 

6 from the disposal of any real property under this 

7 subchapter— 

8 ‘‘(A) not less than 80 percent shall be re9 turned to the general fund of the Treasury for 

10 debt reduction; 

11 ‘‘(B) the lesser of 18 percent or the share 

12 of proceeds otherwise authorized to be retained 

13 under law shall be retained by the Federal 

14 agency that has custody and is accountable for 

15 the real property, subject to paragraph (2); 

16 ‘‘(C) not greater than 2 percent shall be 

17 made available to carry out section 627, subject 

18 to annual appropriations; and 

19 ‘‘(D) any remaining share of the proceeds 

20 shall be returned to the general fund of the 

21 Treasury for Federal budget deficit reduction. 

22 ‘‘(2) LIMITATION ON USE OF PROCEEDS.—Any 

23 proceeds retained by Federal agencies under this 

24 section shall be— 


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1 ‘‘(A) deposited into the appropriate real 

2 property account of the Federal agency that 

3 had custody and accountability for the real 

4 property, with the funds expended only as au5 thorized in annual appropriations Acts; 

6 ‘‘(B) used— 

7 ‘‘(i) by not later than 2 years after 

8 the date of disposal of the real property; 

9 and 

10 ‘‘(ii) only for activities relating to 

11 Federal real property asset management 

12 and disposal; and 

13 ‘‘(C) if not used by the date described in 

14 subparagraph (B)(i), shall be deposited in the 

15 Treasury and used for Federal budget deficit 

16 reduction. 

17 ‘‘(c) PUBLIC BENEFIT.— 

18 ‘‘(1) CONVEYANCE.—Except as provided in 

19 paragraph (2), if a real property authorized to be 

20 disposed of under subsection (a) has not been dis21 posed of by the date that is 2 years after the date 

22 the property is listed for sale, the Director, in con23 sultation with the Administrator and the Secretary 

24 of Housing and Urban Development, may consider a 

25 request from the disposing Federal agency that the 


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1 real property be conveyed to State and local govern2 ments or nonprofit organizations for various public 

3 purposes or uses as permitted by applicable law. 

4 ‘‘(2) PREDOMINANT USE AND SIZE STAND5 ARDS.— 

6 ‘‘(A) IN GENERAL.—Any real property au7 thorized to be disposed of under subsection (a) 

8 shall not be conveyed under paragraph (1) if— 

9 ‘‘(i) the predominant use of the prop10 erty is not for housing; and 

11 ‘‘(ii)(I) the area of the property is not 

12 less than 25,000 square feet; or 

13 ‘‘(II) the appraised fair market value 

14 of the property is greater than $1,000,000. 

15 ‘‘(B) APPRAISED FAIR MARKET VALUE.— 

16 The appraised fair market value described in 

17 subparagraph (A)(ii)(II) shall be determined by 

18 the Federal agency with custody or control of 

19 the property, in consultation with the Adminis20 trator and standard appraisal practice. 

21 ‘‘(d) ENFORCEMENT.— 

22 ‘‘(1) INCREASE IN SIZE OF INVENTORY.—Ex23 cept as provided in paragraph (2), if a Federal agen24 cy fails to make available for public sale the real 

25 property authorized to be disposed of under subVerDate Mar 15 2010 04:57 Aug 01, 2014 Jkt 039200 PO 00000 Frm 00189 Fmt 6652 Sfmt 6401 E:\BILLS\S1486.RS S1486

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1 section (a) by the date that is 18 months after the 

2 date on which the authorization is made under sub3 section (a), that Federal agency, except for specific 

4 exceptions promulgated by the Director, shall not in5 crease the size of the civilian real property inventory, 

6 unless the square footage of the increase is offset, 

7 within an appropriate time as determined by the Di8 rector, through consolidation, colocation, or disposal 

9 of another building space from the inventory of that 

10 Federal agency. 

11 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 

12 apply to a Federal agency that acquires any real 

13 property not under the administrative jurisdiction of 

14 the Federal Government, by sale or lease, until the 

15 Director submits a certification to Congress of the 

16 disposal of all of those surplus properties. 

17 ‘‘(e) TERMINATION OF AUTHORITY.—The authority 

18 provided by this section terminates on the date that is 5 

19 years after the date of enactment of this subchapter. 

20 ‘‘§ 628. Homeless assistance grants 

21 ‘‘(a) DEFINITIONS.—In this section: 

22 ‘‘(1) ELIGIBLE NONPROFIT ORGANIZATION.— 

23 The term ‘eligible nonprofit organization’ means a 

24 nonprofit organization that is a representative of the 

25 homeless. 


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1 ‘‘(2) HOMELESS.—The term ‘homeless’ has the 

2 meaning given the term in section 103 of the 

3 McKinney-Vento Homeless Assistance Act (42 

4 U.S.C. 11302), except that subsection (c) of that 

5 section shall not apply. 

6 ‘‘(3) PERMANENT HOUSING.—The term ‘perma7 nent housing’ has the meaning given the term in 

8 section 401 of the McKinney-Vento Homeless Assist9 ance Act (42 U.S.C. 11360). 

10 ‘‘(4) PRIVATE NONPROFIT ORGANIZATION.— 

11 The term ‘private nonprofit organization’ has the 

12 meaning given the term in section 401 of the 

13 McKinney-Vento Homeless Assistance Act (42 

14 U.S.C. 11360). 

15 ‘‘(5) REPRESENTATIVE OF THE HOMELESS.— 

16 The term ‘representative of the homeless’ has the 

17 meaning given the term in section 501(i) of the 

18 McKinney-Vento Homeless Assistance Act (42 

19 U.S.C. 11411(i)). 

20 ‘‘(6) SECRETARY.—The term ‘Secretary’ means 

21 the Secretary of Housing and Urban Development. 

22 ‘‘(7) TRANSITIONAL HOUSING.—The term 

23 ‘transitional housing’ has the meaning given the 

24 term in section 401 of the McKinney-Vento Home25 less Assistance Act (42 U.S.C. 11360). 


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1 ‘‘(b) GRANT AUTHORITY.— 

2 ‘‘(1) IN GENERAL.—To the extent amounts are 

3 made available under section 626(b)(1)(B) for use 

4 under this section, the Secretary shall make grants 

5 to eligible private nonprofit organizations through 

6 the continuum of care program established under 

7 subtitle C of title IV of the McKinney-Vento Home8 less Assistance Act (42 U.S.C. 11381 et seq.), to 

9 purchase real property suitable for use to assist the 

10 homeless in accordance with subsection (c). 

11 ‘‘(2) TERMS AND CONDITIONS.—Except as oth12 erwise provided in this section, a grant under this 

13 section shall be subject to the same terms and condi14 tions as a grant under the continuum of care pro15 gram established under subtitle C of title IV of the 

16 McKinney-Vento Homeless Assistance Act (42 

17 U.S.C. 11381 et seq.). 

18 ‘‘(c) USE OF PROPERTIES FOR HOUSING OR SHEL19 TER FOR THE HOMELESS.— 

20 ‘‘(1) ELIGIBLE USES.—An eligible private non21 profit organization that receives a grant under sub22 section (b) shall use the amounts received only to 

23 purchase or rehabilitate real property for use to pro24 vide permanent housing, transitional housing, or 

25 temporary shelter to the homeless. 


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1 ‘‘(2) TERM OF USE.—The Secretary may not 

2 make a grant under subsection (b) to an eligible pri3 vate nonprofit organization unless the eligible pri4 vate nonprofit organization provides to the Secretary 

5 such assurances as the Secretary determines nec6 essary to ensure that any real property purchased or 

7 rehabilitated using amounts received under the grant 

8 is used only for the uses described in paragraph (1) 

9 for a period of not less than 15 years. 

10 ‘‘(d) PREFERENCE.—In awarding grants under sub11 section (b), the Secretary shall give preference to eligible 

12 private nonprofit organizations that operate within areas 

13 in which Federal real property is being sold under the dis14 posal program authorized under section 626. 

15 ‘‘(e) REGULATIONS.—The Secretary may promulgate 

16 such regulations as are necessary to carry out this sec17 tion.’’. 

18 SEC. 604. REPORT OF THE COMPTROLLER GENERAL. 

19 (a) DRAFT.—Not later than 3 years after the date 

20 of enactment of this Act, the Comptroller General of the 

21 United States shall submit to Congress a draft report on 

22 the expedited disposal pilot program established by the 

23 amendments made by section 3. 

24 (b) FINAL.—Not later than 5 years after the date 

25 of enactment of this Act, the Comptroller General of the 


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1 United States shall submit to Congress a final report on 

2 the expedited disposal pilot program established by the 

3 amendments made by section 3. 

4 SEC. 605. TECHNICAL AND CONFORMING AMENDMENT. 

5 The table of sections for chapter 5 of subtitle I of 

6 title 40, United States Code, is amended by inserting after 

7 the item relating to section 611 the following: 

‘‘SUBCHAPTER VII—PROPERTY MANAGEMENT AND EXPEDITED DISPOSAL OF

REAL PROPERTY

‘‘621. Definitions. 

‘‘622. Duties of Federal agencies. 

‘‘623. Colocation among United States Postal Service properties. 

‘‘624. Establishment of a Federal Real Property Council. 

‘‘625. Federal real property inventory and database. 

‘‘626. Limitation on certain leasing authorities. 

‘‘627. Expedited disposal pilot program. 

‘‘628. Homeless assistance grants.’’. 

8 SECTION 1. SHORT TITLE. 

9 This Act may be cited as the ‘‘Postal Reform Act of 

10 2014’’. 

11 SEC. 2. TABLE OF CONTENTS. 

12 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. 


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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. 


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Sec. 603. Property management and expedited disposal of real property. 

Sec. 604. Report of the Comptroller General. 

Sec. 605. Technical and conforming amendment. 

1 SEC. 3. DEFINITIONS. 

2 In this Act, the following definitions shall apply: 

3 (1) COMMISSION.—The term ‘‘Commission’’ 

4 means the Postal Regulatory Commission. 

5 (2) POSTAL SERVICE.—The term ‘‘Postal Serv6 ice’’ means the United States Postal Service. 

7 TITLE I—POSTAL SERVICE 

8 WORKFORCE 

9 SEC. 101. ANNUAL FEDERAL EMPLOYEE RETIREMENT SYS10 TEM AND CIVIL SERVICE RETIREMENT SYS11 TEM ASSESSMENTS. 

12 (a) USE OF POSTAL-SPECIFIC ASSUMPTIONS IN NOR13 MAL COST CALCULATION.— 

14 (1) IN GENERAL.—Section 8423(a) of title 5, 

15 United States Code, is amended— 

16 (A) in paragraph (1), by inserting ‘‘other 

17 than the United States Postal Service’’ after 

18 ‘‘Each employing agency’’; and 

19 (B) by adding at the end the following: 

20 ‘‘(5)(A) The United States Postal Service shall 

21 contribute to the Fund an amount equal to the prod22 uct of— 


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1 ‘‘(i) the normal-cost percentage, as deter2 mined for employees of the United States Postal 

3 Service under subparagraph (B), multiplied by 

4 ‘‘(ii) the aggregate amount of basic pay 

5 payable by the United States Postal Service, for 

6 the period involved, to employees of the United 

7 States Postal Service. 

8 ‘‘(B)(i) In determining the normal-cost percent9 age for employees of the United States Postal Service, 

10 the Office shall use— 

11 ‘‘(I) demographic factors specific to the em12 ployees; and 

13 ‘‘(II) appropriate economic assumptions, as 

14 determined by the Office, regarding wage and 

15 salary trends specific to the employees. 

16 ‘‘(ii) The United States Postal Service shall pro17 vide any data or projections the Office requires in 

18 order to determine the normal-cost percentage for em19 ployees of the United States Postal Service consistent 

20 with clause (i). 

21 ‘‘(iii) Notwithstanding paragraph (2), in deter22 mining the normal-cost percentage to be applied for 

23 employees of the United States Postal Service, the Of24 fice shall take into account amounts provided under 


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1 section 8422 and amounts provided under section 

2 1005(g)(3)(A)(i) of title 39. 

3 ‘‘(iv) The Office shall review the determination of 

4 the normal-cost percentage for employees of the 

5 United States Postal Service and make such adjust6 ments as the Office determines are necessary— 

7 ‘‘(I) upon request of the United States Post8 al Service, but no more frequently than once each 

9 fiscal year; and 

10 ‘‘(II) at any additional times, as the Office 

11 considers appropriate.’’. 

12 (2) INITIAL DETERMINATION.—Not later than 

13 180 days after the date on which the Office receives 

14 the appropriate data or projections from the Postal 

15 Service under clause (ii) of section 8423(a)(5)(B) of 

16 title 5, United States Code, as added by paragraph 

17 (1), the Office shall determine the normal-cost per18 centage for employees of the Postal Service in accord19 ance with the requirements under such section 

20 8423(a)(5)(B). 

21 (3) APPLICABILITY.—On and after the date on 

22 which the Office determines the normal-cost percent23 age under paragraph (2), the contributions of the 

24 Postal Service to the Civil Service Retirement and 

25 Disability Fund relating to employees covered under 


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1 chapter 84 of title 5, United States Code, shall be de2 termined in accordance with paragraph (5) of section 

3 8423(a) of title 5, United States Code, as added by 

4 paragraph (1). 

5 (b) POSTAL FUNDING SURPLUS OR LIABILITY.— 

6 (1) TREATMENT OF POSTAL FUNDING SUR7 PLUS.—Section 8423(b) of title 5, United States Code, 

8 is amended— 

9 (A) by redesignating paragraph (5) as 

10 paragraph (6); and 

11 (B) by inserting after paragraph (4) the fol12 lowing: 

13 ‘‘(5)(A) In this paragraph, the term ‘postal fund14 ing surplus’ means the amount by which the amount 

15 of supplemental liability computed under paragraph 

16 (1)(B) is less than zero. 

17 ‘‘(B) After the date on which the Office deter18 mines under paragraph (7)(C) the amount of supple19 mental liability computed under paragraph (1)(B) as 

20 of the close of the fiscal year ending on September 30, 

21 2013, not later than the date on which the Postmaster 

22 General makes a request under subparagraph (C) of 

23 this paragraph, and if the amount determined under 

24 paragraph (7)(C) is less than zero, the Postmaster 

25 General may request that some or all of the amount 


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1 of the postal funding surplus, not to exceed 

2 $6,000,000,000, be returned to the United States Post3 al Service, and not later than 10 days after the re4 quest, the Director shall transfer to the United States 

5 Postal Service from the Fund an amount equal to the 

6 portion of the postal funding surplus requested, for 

7 use in accordance with subparagraph (E)(i). 

8 ‘‘(C)(i) Subject to clause (ii), after the date on 

9 which the Office computes the amount of supple10 mental liability under paragraph (1)(B) as of the 

11 close of the fiscal year ending on September 30, 2014, 

12 and if such amount is less than zero, the Postmaster 

13 General may request that some of the amount of the 

postal funding surplus, not to exceed 2 14 ⁄3 of the 

15 amount, be returned to the United States Postal Serv16 ice, and not later than 10 days after the request, the 

17 Director shall transfer to the United States Postal 

18 Service from the Fund an amount equal to the por19 tion of the postal funding surplus requested, for use 

20 in accordance with subparagraph (E)(ii). 

21 ‘‘(ii) If any amount requested by the Postmaster 

22 General under subparagraph (B) is not transferred 

23 from the Fund as of the close of the fiscal year ending 

24 on September 30, 2014, for purposes of this subpara25 graph, the Office shall recompute the amount of supVerDate Mar 15 2010 04:57 Aug 01, 2014 Jkt 039200 PO 00000 Frm 00200 Fmt 6652 Sfmt 6203 E:\BILLS\S1486.RS S1486

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1 plemental liability computed under paragraph (1)(B) 

2 as of the close of that fiscal year by subtracting from 

3 the balance of the Fund the amount requested under 

4 subparagraph (B) of this paragraph. 

5 ‘‘(D) If the amount of supplemental liability 

6 computed under paragraph (1)(B) as of the close of 

7 any fiscal year commencing after September 30, 2014, 

8 is less than zero, the Office shall establish an amorti9 zation schedule, including a series of equal annual in10 stallments that— 

11 ‘‘(i) provide for the liquidation of the postal 

12 funding surplus in 40 years, commencing on 

13 September 30 of the subsequent fiscal year; and 

14 ‘‘(ii) shall be transferred to the United 

15 States Postal Service from the Fund for use in 

16 accordance with subparagraph (E)(ii). 

17 ‘‘(E)(i) The United States Postal Service may 

18 use an amount transferred under subparagraph (B) 

19 only for the purpose of repaying any obligation issued 

20 under section 2005(a) of title 39. 

21 ‘‘(ii) The United States Postal Service may use 

22 an amount transferred under subparagraph (C) or 

23 (D) only— 

24 ‘‘(I) by directing that some or all of the 

25 amount be transferred to the Postal Service ReVerDate Mar 15 2010 04:57 Aug 01, 2014 Jkt 039200 PO 00000 Frm 00201 Fmt 6652 Sfmt 6203 E:\BILLS\S1486.RS S1486

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1 tiree Health Benefits Fund for the purpose of re2 ducing any Postal Service actuarial liability re3 ferred to under section 8909a; 

4 ‘‘(II) by directing that some or all of the 

5 amount be transferred to the Civil Service Re6 tirement and Disability Fund for the purpose of 

7 reducing any supplemental liability under sec8 tion 8348(h); 

9 ‘‘(III) by directing that some or all of the 

10 amount be transferred to the Civil Service Re11 tirement and Disability Fund for the purpose of 

12 reducing any supplemental liability under sec13 tion 8423(b)(1)(B); 

14 ‘‘(IV) by directing that some or all of the 

15 amount be transferred to the Postal Service 

16 Workers’ Compensation Accrued Liability Fund 

17 for the purpose of reducing any Postal Service 

18 actuarial liability under section 2012 of title 39; 

19 or 

20 ‘‘(V) as described in clause (i), if none of 

21 the liabilities referred to in subclause (I), (II), 

22 (III), or (IV) remain unpaid.’’. 

23 (2) SUPPLEMENTAL LIABILITY CALCULATION.— 


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1 (A) FERS.—Section 8423(b) of title 5, 

2 United States Code, as amended by paragraph 

3 (1) of this subsection, is amended— 

4 (i) in paragraph (6), as so redesig5 nated, in the matter preceding subpara6 graph (A), by striking ‘‘For the purpose’’ 

7 and inserting ‘‘Subject to paragraph (7), for 

8 the purpose’’; and 

9 (ii) by adding at the end the following: 

10 ‘‘(7)(A) For the purpose of carrying out para11 graph (1)(B) with respect to the fiscal year ending 

12 September 30, 2013, and each fiscal year thereafter, 

13 the Office shall, consistent with subsection (a)(5)(B), 

14 use— 

15 ‘‘(i) demographic factors specific to current 

16 and former employees of the United States Postal 

17 Service; and 

18 ‘‘(ii) appropriate economic assumptions, as 

19 determined by the Office, regarding wage and 

20 salary trends specific to current employees of the 

21 United States Postal Service. 

22 ‘‘(B) The United States Postal Service shall pro23 vide any data or projections the Office requires in 

24 order to carry out paragraph (1)(B) consistent with 

25 subparagraph (A) of this paragraph. 


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1 ‘‘(C) Not later than 180 days after the later of 

2 the date on which the Office receives the appropriate 

3 data or projections from the United States Postal 

4 Service under subparagraph (B) or the date of enact5 ment of the Postal Reform Act of 2014, the Office 

6 shall determine or redetermine whether there is a 

7 postal funding surplus (as defined in paragraph (5)) 

8 or a supplemental liability described in paragraph 

9 (1)(B) (and the amount thereof) as of the close of the 

10 fiscal year ending on September 30, 2013, in accord11 ance with the requirements under subparagraph (A) 

12 of this paragraph.’’. 

13 (B) CSRS.—Section 8348(h) of title 5, 

14 United States Code, is amended— 

15 (i) in paragraph (2), by striking sub16 paragraph (B) and inserting the following: 

17 ‘‘(B)(i)(I) Not later than the date on which the Office 

18 determines the normal-cost percentage under section 

19 101(a)(2) of the Postal Reform Act of 2014, the Office shall 

20 redetermine the Postal surplus or supplemental liability as 

21 of the close of the fiscal year ending on September 30, 2013, 

22 in accordance with the requirements under paragraph (4). 

23 ‘‘(II) If the result of the redetermination under sub24 clause (I) is a surplus, that amount shall remain in the 


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1 Fund until distribution is authorized under subparagraph 

2 (C). 

3 ‘‘(III) If the result of the redetermination under sub4 clause (I) is a supplemental liability, the Office shall estab5 lish an amortization schedule, including a series of annual 

6 installments commencing on September 30, 2015, which 

7 provides for the liquidation of such liability by September 

8 30, 2054. 

9 ‘‘(ii)(I) The Office shall redetermine the Postal surplus 

10 or supplemental liability as of the close of each fiscal year 

11 beginning after September 30, 2013, in accordance with the 

12 requirements under paragraph (4). 

13 ‘‘(II) If the result of the redetermination under sub14 clause (I) is a surplus, that amount shall remain in the 

15 Fund until distribution is authorized under subparagraph 

16 (C). 

17 ‘‘(III) On and after June 15, 2015, if the result of the 

18 redetermination under subclause (I) is a supplemental li19 ability, the Office shall establish an amortization schedule, 

20 including a series of annual installments commencing on 

21 September 30 of the subsequent fiscal year, which provides 

22 for the liquidation of such liability by September 30, 

23 2054.’’; and 

24 (ii) by adding at the end the following: 


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1 ‘‘(4)(A) For the purpose of carrying out paragraphs 

2 (1) and (2), the Office shall, consistent with section 

3 8423(a)(5)(B), use— 

4 ‘‘(i) demographic factors specific to current and 

5 former employees of the United States Postal Service; 

6 and 

7 ‘‘(ii) appropriate economic assumptions, as de8 termined by the Office, regarding wage and salary 

9 trends specific to the employees. 

10 ‘‘(B) The United States Postal Service shall provide 

11 any data or projections the Office requires in order to carry 

12 out paragraphs (1) and (2) consistent with subparagraph 

13 (A) of this paragraph.’’. 

14 SEC. 102. POSTAL SERVICE AUTHORITY TO NEGOTIATE RE15 TIREMENT BENEFIT TERMS FOR NEW EM16 PLOYEES. 

17 (a) AUTHORITY TO NEGOTIATE RETIREMENT BENEFIT

18 TERMS.— 

19 (1) COLLECTIVE BARGAINING OVER CERTAIN RE20 TIREMENT BENEFITS.—Section 1005 of title 39, 

21 United States Code, is amended by adding at the end 

22 the following: 

23 ‘‘(g)(1) In this subsection— 

24 ‘‘(A) the term ‘collective bargaining agreement’ 

25 means a collective bargaining agreement between the 


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1 Postal Service and a bargaining representative recog2 nized under section 1203 entered into after the date 

3 of enactment of the Postal Reform Act of 2014; 

4 ‘‘(B) the term ‘new employee’ means an indi5 vidual who becomes an officer or employee of the Post6 al Service after the date of enactment of the Postal 

7 Reform Act of 2014; and 

8 ‘‘(C) the term ‘not eligible to receive FERS serv9 ice credit’, with respect to an officer or employee of 

10 the Postal Service, means that service by the officer 

11 or employee of the Postal Service as an officer or em12 ployee of the Postal Service shall not be creditable 

13 service for purposes of chapter 84 of title 5. 

14 ‘‘(2)(A) A collective bargaining agreement may pro15 vide, notwithstanding chapter 84 of title 5, that some or 

16 all new employees covered under the collective bargaining 

17 agreement shall be not eligible to receive FERS service cred18 it for service performed during any pay period beginning 

19 after the effective date of the provision. 

20 ‘‘(B) If a new employee is not eligible to receive FERS 

21 credit pursuant to a collective bargaining agreement, any 

22 subsequent service by the new employee as an officer or em23 ployee of the Postal Service shall not be creditable service 

24 for purposes of chapter 84 of title 5. 


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1 ‘‘(C) Subject to the requirements under this subsection, 

2 a collective bargaining agreement may include 1 or more 

3 additional retirement benefit plans for the benefit of some 

4 or all new employees covered under the collective bargaining 

5 agreement. 

6 ‘‘(3)(A) A collective bargaining agreement may estab7 lish, with respect to some or all new employees covered 

8 under the collective bargaining agreement— 

9 ‘‘(i) without regard to section 8422 of title 5— 

10 ‘‘(I) the amounts to be deducted and with11 held from the pay of the new employees for de12 posit in the Treasury of the United States to the 

13 credit of the Civil Service Retirement and Dis14 ability Fund; and 

15 ‘‘(II) the corresponding adjustment under 

16 section 8423(a)(5)(B)(iii) of title 5 to the 

17 amount of the contributions to be made by the 

18 Postal Service to the Fund; and 

19 ‘‘(ii) for any retirement benefit plan established 

20 under the collective bargaining agreement, the 

21 amounts to be deducted and withheld from the pay of 

22 the new employees under the retirement benefit plan 

23 for the benefit of the new employees. 

24 ‘‘(B) Except as provided in paragraph (2)(B), a collec25 tive bargaining agreement may establish the amounts deVerDate Mar 15 2010 04:57 Aug 01, 2014 Jkt 039200 PO 00000 Frm 00208 Fmt 6652 Sfmt 6203 E:\BILLS\S1486.RS S1486

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1 scribed in subparagraph (A)(i) with respect to some or all 

2 new employees who were covered under a previous collective 

3 bargaining agreement. 

4 ‘‘(4)(A) A collective bargaining agreement among the 

5 Postal Service and all bargaining representatives recog6 nized under section 1203 may establish, without regard to 

7 section 8432 of title 5, with respect to some or all new em8 ployees covered under the collective bargaining agreement, 

9 whether the Postal Service shall make contributions to the 

10 Thrift Savings Fund for the benefit of the new employees, 

11 and, if the Postal Service shall make such contributions, 

12 the amounts that the Postal Service shall contribute. 

13 ‘‘(B) A collective bargaining agreement described in 

14 subparagraph (A) may not establish more than 1 option 

15 regarding the contributions by the Postal Service to the 

16 Thrift Savings Fund that will apply to some or all new 

17 employees covered under the agreement. 

18 ‘‘(C) If a collective bargaining agreement described in 

19 subparagraph (A) is not in effect, and if the Postal Service 

20 or a bargaining representative requests that the Postal 

21 Service and all bargaining representatives commence collec22 tive bargaining to seek such an agreement, the procedures 

23 under section 1207(d) shall apply. 

24 ‘‘(D) Except as provided in subparagraph (A), nothing 

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1 gaining agreement entered under this subsection shall affect 

2 the coverage of an officer or employee of the Postal Service 

3 under subchapter III of chapter 84 of title 5.’’. 

4 (2) APPLICABILITY OF LAWS RELATING TO FED5 ERAL EMPLOYEES.—Section 1005 of title 39, United 

6 States Code, is amended— 

7 (A) in subsection (d)(1), by striking ‘‘Offi8 cers’’ and inserting ‘‘Except as provided in sub9 section (g), officers’’; and 

10 (B) in subsection (f), in the second sen11 tence— 

12 (i) by inserting ‘‘84,’’ before ‘‘87,’’; and 

13 (ii) by striking ‘‘this subsection.’’ and 

14 inserting ‘‘this subsection or subsection 

15 (g).’’. 

16 (3) INELIGIBILITY FOR AUTOMATIC ENROLLMENT

17 IN THRIFT SAVINGS PLAN.—Section 8432(b)(2)(D) of 

18 title 5, United States Code, is amended— 

19 (A) by striking ‘‘clause (ii)’’ and inserting 

20 ‘‘clauses (ii) and (iii)’’; and 

21 (B) by adding at the end following: 

22 ‘‘(iii) An individual for whom a collective bargaining 

23 agreement authorized under section 1005(g)(4) of title 39 

24 establishes whether the Postal Service shall make contribu25 tions to the Thrift Savings Fund for the benefit of the indiVerDate Mar 15 2010 04:57 Aug 01, 2014 Jkt 039200 PO 00000 Frm 00210 Fmt 6652 Sfmt 6203 E:\BILLS\S1486.RS S1486

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1 vidual and the amount of the contributions shall not be an 

2 eligible individual for purposes of this paragraph.’’. 

3 (b) SPECIAL RULES RELATING TO FERS COVERAGE

4 FOR COVERED POSTAL EMPLOYEES.— 

5 (1) IN GENERAL.—Subchapter II of chapter 84 of 

6 title 5, United States Code, is amended by adding at 

7 the end the following: 

8 ‘‘§ 8426. Postal Service retirement 

9 ‘‘(1) The application of sections 8422 and 8423 

10 of this title and subchapters III and VII of this chap11 ter with respect to an officer or employee of the Postal 

12 Service may be modified as provided under section 

13 1005(g) of title 39.’’. 

14 (2) TECHNICAL AND CONFORMING AMEND15 MENTS.—The table of sections for subchapter II of 

16 chapter 84 of title 5, United States Code, is amended 

17 by adding at the end the following: 

‘‘8426. Postal Service retirement.’’. 

18 SEC. 103. RESTRUCTURING OF PAYMENTS FOR RETIREE 

19 HEALTH BENEFITS. 

20 (a) CONTRIBUTIONS.—Section 8906(g)(2)(A) of title 5, 

21 United States Code, is amended by striking ‘‘through Sep22 tember 30, 2016, be paid by the United States Postal Serv23 ice, and thereafter shall’’ and inserting ‘‘after the date of 

24 enactment of the Postal Reform Act of 2014’’. 


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1 (b) POSTAL SERVICE RETIREE HEALTH BENEFITS

2 FUND.—Section 8909a of title 5, United States Code, is 

3 amended— 

4 (1) in subsection (d)— 

5 (A) by striking paragraph (2) and inserting 

6 the following: 

7 ‘‘(2)(A) Not later than June 30, 2016, the Office shall 

8 compute, and by June 30 of each succeeding year, the Office 

9 shall recompute, a schedule including a series of annual in10 stallments which provide for the liquidation of the amount 

11 described under subparagraph (B) (regardless of whether 

12 the amount is a liability or surplus) by September 30, 2055, 

13 or within 15 years, whichever is later, including interest 

14 at the rate used in the computations under this subsection. 

15 ‘‘(B) The amount described in this subparagraph is 

16 the amount, as of the date on which the applicable computa17 tion or recomputation under subparagraph (A) is made, 

18 that is equal to the difference between— 

19 ‘‘(i) 80 percent of the Postal Service actuarial li20 ability as of September 30 of the preceding fiscal 

21 year; and 

22 ‘‘(ii) the value of the assets of the Postal Retiree 

23 Health Benefits Fund as of September 30 of the pre24 ceding fiscal year.’’; 

25 (B) in paragraph (3)— 


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1 (i) in subparagraph (A)— 

2 (I) in clause (iii), by adding 

3 ‘‘and’’ at the end; 

4 (II) in clause (iv), by striking the 

5 semicolon at the end and inserting a 

6 period; and 

7 (III) by striking clauses (v) 

8 through (x); and 

9 (ii) in subparagraph (B)— 

10 (I) in the matter preceding clause 

11 (i), by striking ‘‘2017’’ and inserting 

12 ‘‘2016’’; and 

13 (II) in clause (ii), by striking 

14 ‘‘paragraph (2)(B).’’ and inserting 

15 ‘‘paragraph (2).’’; 

16 (C) by amending paragraph (4) to read as 

17 follows: 

18 ‘‘(4) Computations under this subsection shall be based 

19 on— 

20 ‘‘(A) economic and actuarial methods and as21 sumptions consistent with the methods and assump22 tions used in determining the Postal surplus or sup23 plemental liability under section 8348(h); and 


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1 ‘‘(B) any other methods and assumptions, in2 cluding a health care cost trend rate, that the Direc3 tor of the Office determines to be appropriate.’’; and 

4 (D) by adding at the end the following: 

5 ‘‘(7) In this subsection, the term ‘Postal Service actu6 arial liability’ means the difference between— 

7 ‘‘(A) the net present value of future payments re8 quired under section 8906(g)(2)(A) for current and 

9 future United States Postal Service annuitants; and 

10 ‘‘(B) the net present value as computed under 

11 paragraph (1) attributable to the future service of 

12 United States Postal Service employees.’’; and 

13 (2) by adding at the end the following: 

14 ‘‘(e) Subsections (a) through (d) of this section shall 

15 be subject to section 104 of the Postal Reform Act of 2014.’’. 

16 (c) CANCELLATION OF CERTAIN UNPAID OBLIGATIONS

17 OF THE POSTAL SERVICE.—Any obligation of the Postal 

18 Service under section 8909a(d)(3)(A) of title 5, United 

19 States Code, as in effect on the day before the date of enact20 ment of this Act, that remains unpaid as of such date of 

21 enactment is cancelled. 

22 (d) TECHNICAL AND CONFORMING AMENDMENT.—The 

23 heading of section 8909a of title 5, United States Code, is 

24 amended by striking ‘‘Benefit’’ and inserting ‘‘Bene25 fits’’. 


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1 SEC. 104. POSTAL SERVICE HEALTH BENEFITS PROGRAM. 

2 (a) ESTABLISHMENT.— 

3 (1) IN GENERAL.—Chapter 89 of title 5, United 

4 States Code, is amended by inserting after section 

5 8903b the following: 

6 ‘‘§ 8903c. Postal Service Health Benefits Program 

7 ‘‘(a) DEFINITIONS.—In this section— 

8 ‘‘(1) the term ‘initial participating carrier’ 

9 means a carrier that enters into a contract with the 

10 Office to participate in the Postal Service Health 

11 Benefits Program during the contract year beginning 

12 in January 2016; 

13 ‘‘(2) the term ‘Medicare eligible individual’ 

14 means an individual who— 

15 ‘‘(A) is entitled to Medicare part A, but ex16 cluding an individual who is eligible to enroll 

17 under such part under section 1818 of the Social 

18 Security Act (42 U.S.C. 1395i–2); and 

19 ‘‘(B) is eligible to enroll in Medicare part 

20 B; 

21 ‘‘(3) the term ‘Medicare part A’ means the Medi22 care program for hospital insurance benefits under 

23 part A of title XVIII of the Social Security Act (42 

24 U.S.C. 1395c et seq.); 

25 ‘‘(4) the term ‘Medicare part B’ means the Medi26 care program for supplementary medical insurance 


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1 benefits under part B of title XVIII of the Social Se2 curity Act (42 U.S.C. 1395j et seq.); 

3 ‘‘(5) the term ‘Medicare part D’ means the Medi4 care insurance program established under part D of 

5 title XVIII of the Social Security Act (42 U.S.C. 

6 1395w–101 et seq.); 

7 ‘‘(6) the term ‘Office’ means the Office of Per8 sonnel Management; 

9 ‘‘(7) the term ‘Postal Service’ means the United 

10 States Postal Service; 

11 ‘‘(8) the term ‘Postal Service annuitant’ means 

12 an annuitant enrolled in a health benefits plan under 

13 this chapter whose Government contribution is paid 

14 by the Postal Service or the Postal Service Retiree 

15 Health Benefits Fund under section 8906(g)(2); 

16 ‘‘(9) the term ‘Postal Service employee’ means an 

17 employee of the Postal Service enrolled in a health 

18 benefits plan under this chapter; 

19 ‘‘(10) the term ‘Postal Service Health Benefits 

20 Program’ means the program of health benefits plans 

21 established under subsection (c); 

22 ‘‘(11) the term ‘Postal Service Medicare eligible 

23 annuitant’ means an individual who— 

24 ‘‘(A) is a Postal Service annuitant; and 

25 ‘‘(B) is a Medicare eligible individual; 


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1 ‘‘(12) the term ‘PSHBP plan’ means a health 

2 benefits plan offered under the Postal Service Health 

3 Benefits Program; and 

4 ‘‘(13) the term ‘qualified carrier’ means a car5 rier for which the total enrollment in the plans pro6 vided under this chapter includes, in the contract 

7 year beginning in January 2015, 5,000 or more en8 rollees who are— 

9 ‘‘(A) Postal Service employees; or 

10 ‘‘(B) Postal Service annuitants. 

11 ‘‘(b) APPLICATION OF SECTION.—The requirements 

12 under this section shall— 

13 ‘‘(1) apply to the contract year beginning in 

14 January 2016, and each contract year thereafter; and 

15 ‘‘(2) supersede other provisions of this chapter to 

16 the extent of any specific inconsistency, as determined 

17 by the Office. 

18 ‘‘(c) ESTABLISHMENT OF THE POSTAL SERVICE

19 HEALTH BENEFITS PROGRAM.— 

20 ‘‘(1) IN GENERAL.—The Office shall establish the 

21 Postal Service Health Benefits Program, which 

22 shall— 

23 ‘‘(A) consist of health benefit plans offered 

24 under this chapter; 

25 ‘‘(B) include plans offered by— 


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1 ‘‘(i) each qualified carrier; and 

2 ‘‘(ii) any other carrier determined ap3 propriate by the Office; 

4 ‘‘(C) be available for participation by all 

5 Postal Service employees, in accordance with 

6 subsection (d); 

7 ‘‘(D) be available for participation by all 

8 Postal Service annuitants, in accordance with 

9 subsection (d); 

10 ‘‘(E) not be available for participation by 

11 an individual who is not a Postal Service em12 ployee or Postal Service annuitant (except as a 

13 family member of such an employee or annu14 itant); and 

15 ‘‘(F) be implemented and administered by 

16 the Office. 

17 ‘‘(2) SEPARATE POSTAL SERVICE RISK POOL.— 

18 The Office shall ensure that each PSHBP plan in19 cludes rates, one for enrollment as an individual, one 

20 for enrollment for self plus one, and one for enroll21 ment for self and family within each option in the 

22 PSHBP plan, that reasonably and equitably reflect 

23 the cost of benefits provided to a risk pool consisting 

24 solely of Postal Service employees and Postal Service 

25 annuitants (and family members of such employees 


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1 and annuitants), taking into specific account the re2 duction in benefits cost for the PSHBP plan due to 

3 the Medicare enrollment requirements under sub4 section (e) and any savings or subsidies resulting 

5 from subsection (f). 

6 ‘‘(3) ACTUARIALLY EQUIVALENT COVERAGE.— 

7 The Office shall ensure that each carrier participating 

8 in the Postal Service Health Benefits Program pro9 vides coverage under the PSHBP plans offered by the 

10 carrier that is actuarially equivalent, as determined 

11 by the Director of the Office, to the coverage that the 

12 carrier provides under the health benefits plans of13 fered by the carrier under the Federal Employee 

14 Health Benefits Program that are not PSHBP plans. 

15 ‘‘(d) ELECTION OF COVERAGE.— 

16 ‘‘(1) IN GENERAL.—Except as provided in para17 graphs (2) and (3), each Postal Service employee and 

18 Postal Service annuitant who elects to receive health 

19 benefits coverage under this chapter— 

20 ‘‘(A) shall be subject to the requirements 

21 under this section; and 

22 ‘‘(B) may only enroll in a PSHBP plan. 

23 ‘‘(2) ANNUITANTS.—A Postal Service annuitant 

24 shall not be subject to this section if the Postal Service 

25 annuitant— 


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1 ‘‘(A) is enrolled in a health benefits plan 

2 under this chapter for the contract year begin3 ning in January 2015 that is not a health bene4 fits plan offered by an initial participating car5 rier, unless the Postal Service annuitant volun6 tarily enrolls in a PSHBP plan; or 

7 ‘‘(B) resides in a geographic area for which 

8 there is not a PSHBP plan in which the Postal 

9 Service annuitant may enroll. 

10 ‘‘(3) EMPLOYEES.—A Postal Service employee 

11 who is enrolled in a health benefits plan under this 

12 chapter for the contract year beginning in January 

13 2015 that is not a health benefits plan offered by an 

14 initial participating carrier shall not be subject to the 

15 requirements under this section, except that— 

16 ‘‘(A) if the Postal Service employee changes 

17 enrollment to a different health benefits plan 

18 under this chapter after the start of the contract 

19 year beginning in January 2016, the Postal 

20 Service employee may only enroll in a PSHBP 

21 plan; and 

22 ‘‘(B) upon becoming a Postal Service annu23 itant, if the Postal Service employee elects to 

24 continue coverage under this chapter, the Postal 


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1 Service employee shall enroll in a PSHBP plan 

2 during the open season that is— 

3 ‘‘(i) being held when the Postal Service 

4 employee becomes a Postal Service annu5 itant; or 

6 ‘‘(ii) if the date on which the Postal 

7 Service employee becomes a Postal Service 

8 annuitant falls outside of an open season, 

9 the first open season following that date. 

10 ‘‘(e) REQUIREMENT OF MEDICARE ENROLLMENT.— 

11 ‘‘(1) POSTAL SERVICE MEDICARE ELIGIBLE AN12 NUITANTS.—A Postal Service Medicare eligible annu13 itant subject to this section may not continue coverage 

14 under the Postal Service Health Benefits Program 

15 unless the Postal Service Medicare eligible annuitant 

16 enrolls in Medicare part A, Medicare part B, and 

17 Medicare part D (as part of a prescription drug plan 

18 described in subsection (f)). 

19 ‘‘(2) MEDICARE ELIGIBLE FAMILY MEMBERS.—If 

20 a family member of a Postal Service annuitant who 

21 is subject to this section is a Medicare eligible indi22 vidual, the family member may not be covered under 

23 the Postal Service Health Benefits Program as a fam24 ily member of the Postal Service annuitant unless the 

25 family member enrolls in Medicare part A, Medicare 


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1 part B, and Medicare part D (as part of a prescrip2 tion drug plan described in subsection (f)). 

3 ‘‘(f) MEDICARE PART D PRESCRIPTION DRUG BENE4 FITS.—The Office shall require each PSHBP plan to pro5 vide prescription drug benefits for Postal Service annu6 itants and family members who are eligible for Medicare 

7 part D through a prescription drug plan offered under a 

8 waiver under section 1860D–22 of the Social Security Act 

9 (42 U.S.C. 1395w–132). 

10 ‘‘(g) POSTAL SERVICE CONTRIBUTION.— 

11 ‘‘(1) IN GENERAL.—Subject to subsection (i), for 

12 purposes of applying section 8906(b) to the Postal 

13 Service, the weighted average shall be calculated in 

14 accordance with paragraph (2). 

15 ‘‘(2) WEIGHTED AVERAGE CALCULATION.—Not 

16 later than October 1 of each year, the Office shall de17 termine the weighted average of the rates established 

18 pursuant to subsection (c)(2) for PSHBP plans that 

19 will be in effect during the following contract year 

20 with respect to— 

21 ‘‘(A) enrollments for self only; 

22 ‘‘(B) enrollments for self plus one; and 

23 ‘‘(C) enrollments for self and family. 

24 ‘‘(h) RESERVES.— 

25 ‘‘(1) SEPARATE RESERVES.— 


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1 ‘‘(A) IN GENERAL.—The Office shall ensure 

2 that each PSHBP plan maintains separate re3 serves (including a separate contingency reserve) 

4 with respect to the enrollees in the PSHBP plan 

5 in accordance with section 8909. 

6 ‘‘(B) REFERENCES.—For purposes of the 

7 Postal Service Health Benefits Program, each 

8 reference to ‘the Government’ in section 8909 

9 shall be deemed to be a reference to the Postal 

10 Service. 

11 ‘‘(C) AMOUNTS TO BE CREDITED.—The re12 serves (including the separate contingency re13 serve) maintained by each PSHBP plan shall be 

14 credited with a proportionate amount of the 

15 funds in the existing reserves for health benefits 

16 plans offered by an initial participating carrier. 

17 ‘‘(2) DISCONTINUATION OF PSHBP PLAN.—In ap18 plying section 8909(e) relating to a PSHBP plan 

19 that is discontinued, the Office shall credit the sepa20 rate Postal Service contingency reserve maintained 

21 under paragraph (1) for that plan only to the sepa22 rate Postal Service contingency reserves of the 

23 PSHBP plans continuing under this chapter. 

24 ‘‘(i) NO EFFECT ON EXISTING LAW.—Nothing in this 

25 section shall be construed as affecting section 1005(f) of title 


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1 39 regarding variations, additions, or substitutions to the 

2 provisions of this chapter.’’. 

3 (2) TECHNICAL AND CONFORMING AMEND4 MENTS.— 

5 (A) Section 8903(1) of title 5, United States 

6 Code, is amended by striking ‘‘two levels of bene7 fits’’ and inserting ‘‘2 levels of benefits for enroll8 ees under this chapter generally and 2 levels of 

9 benefits for enrollees under the Postal Service 

10 Health Benefits Program established under sec11 tion 8903c’’. 

12 (B) The table of sections for chapter 89 of 

13 title 5, United States Code, is amended by in14 serting after the item relating to section 8903b 

15 the following: 

‘‘8903c. Postal Service Health Benefits Program.’’. 

16 (b) SPECIAL ENROLLMENT PERIOD FOR POSTAL SERV17 ICE MEDICARE ELIGIBLE ANNUITANTS AND MEDICARE EL18 IGIBLE FAMILY MEMBERS OF POSTAL SERVICE ANNU19 ITANTS.— 

20 (1) SPECIAL ENROLLMENT PERIOD.—Section 

21 1837 of the Social Security Act (42 U.S.C. 1395p) is 

22 amended by adding at the end the following new sub23 section: 

24 ‘‘(m)(1)(A) In the case of any individual who is subject 

25 to the enrollment requirement of section 8903c(e) of title 


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1 5, United States Code, who has elected not to enroll (or to 

2 be deemed enrolled) during the individual’s initial enroll3 ment period, there shall be a special enrollment period de4 scribed in subparagraph (B). 

5 ‘‘(B) The special enrollment period described in this 

6 subparagraph is the 6-month period, beginning on August 

7 1, 2015 and ending on January 31, 2016. 

8 ‘‘(2)(A) In the case of any individual who— 

9 ‘‘(i) was initially not subject to the enrollment 

10 requirement of section 8903c(e) of title 5, United 

11 States Code; 

12 ‘‘(ii) is eligible to enroll in a plan under chapter 

13 89 of title 5, United States Code, because of an invol14 untary loss of health care coverage; 

15 ‘‘(iii) upon the involuntary loss of health care 

16 coverage, becomes subject to the enrollment require17 ment of section 8903c(e) of title 5, United States 

18 Code, because of enrollment in a PSHBP plan; and 

19 ‘‘(iv) has elected not to enroll (or to be deemed 

20 enrolled) during the individual’s initial enrollment 

21 period, 

22 there shall be a special enrollment period described in sub23 paragraph (B). 

24 ‘‘(B) The special enrollment period described in this 

25 subparagraph is the period of time equivalent to the period 


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1 of time in which the individual has the ability to enroll 

2 in a PSHBP plan due to the involuntary loss of health care 

3 coverage, pursuant to chapter 89 of title 5, United States 

4 Code, and its implementing regulations. 

5 ‘‘(C) For purposes of this subsection, the term ‘PSHBP 

6 plan’ has the meaning under section 8903c(a) of title 5, 

7 United States Code. 

8 ‘‘(3) In the case of an individual who enrolls during 

9 the special enrollment period provided under paragraphs 

10 (1) and (2), the coverage period under this part shall begin 

11 on the first day of the month in which the individual en12 rolls.’’. 

13 (2) WAIVER OF INCREASE OF PREMIUM.—Section 

14 1839(b) of the Social Security Act (42 U.S.C. 

15 1395r(b)) is amended by striking ‘‘(i)(4) or (l)’’ and 

16 inserting ‘‘(i)(4), (l), or (m)’’. 

17 SEC. 105. LABOR DISPUTES. 

18 Section 1207(c) of title 39, United States Code, is 

19 amended— 

20 (1) in paragraph (2)— 

21 (A) by inserting ‘‘(A)’’ after ‘‘(2)’’; 

22 (B) by striking the last sentence and insert23 ing ‘‘The arbitration board shall render a deci24 sion not later than 45 days after the date of its 

25 appointment.’’; and 


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1 (C) by adding at the end the following: 

2 ‘‘(B) In rendering a decision under this paragraph, 

3 the arbitration board shall consider such relevant factors 

4 as the financial condition of the Postal Service.’’; and 

5 (2) by adding at the end the following: 

6 ‘‘(4) Nothing in this section may be construed to limit 

7 the relevant factors that the arbitration board may take into 

8 consideration in rendering a decision under paragraph 

9 (2).’’. 

10 SEC. 106. PREFUNDING AND FINANCIAL REPORTING WITH 

11 RESPECT TO WORKERS’ COMPENSATION LI12 ABILITY. 

13 (a) FINANCIAL PROVISIONS RELATING TO WORKERS’ 

14 COMPENSATION LIABILITY.— 

15 (1) IN GENERAL.—Chapter 20 of title 39, United 

16 States Code, is amended by adding at the end the fol17 lowing: 

18 ‘‘§ 2012. Provisions relating to workers’ compensation 

19 prefunding 

20 ‘‘(a) DEFINITIONS.— 

21 ‘‘(1) IN GENERAL.—In this section— 

22 ‘‘(A) the term ‘adjusted net income’, except 

23 as provided in paragraph (2), means the net in24 come (or loss) reported by the Postal Service in 

25 the statement of operations included in the anVerDate Mar 15 2010 04:57 Aug 01, 2014 Jkt 039200 PO 00000 Frm 00227 Fmt 6652 Sfmt 6203 E:\BILLS\S1486.RS S1486

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1 nual report required under section 

2 3654(a)(1)(B); 

3 ‘‘(B) the term ‘Fund’ means the Postal 

4 Service Workers’ Compensation Accrued Liabil5 ity Fund established under subsection (b); and 

6 ‘‘(C) the term ‘Postal Service actuarial li7 ability’ means, as of September 30 of a fiscal 

8 year, the net present value of projected future 

9 payments required to be made by the Postal 

10 Service under section 8147 of title 5 (including 

11 any payments required to be made from the 

12 Fund under subsection (f) of this section) on ac13 count of injuries or deaths that occurred during 

14 that fiscal year or any preceding fiscal year. 

15 ‘‘(2) CALCULATION OF ADJUSTED NET INCOME.— 

16 In calculating adjusted net income for a fiscal year— 

17 ‘‘(A) any payment made under subsection 

18 (e) shall not be taken into account; and 

19 ‘‘(B) any change in the net present value of 

20 projected future payments required to be made 

21 by the Postal Service under section 8147 of title 

22 5 shall not be taken into account. 

23 ‘‘(b) ESTABLISHMENT.—There is established in the 

24 Treasury of the United States a revolving fund, to be called 


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1 the Postal Service Workers’ Compensation Accrued Liabil2 ity Fund. 

3 ‘‘(c) AVAILABILITY.—The Fund shall be available with4 out fiscal year limitation for payments required under sub5 section (f). 

6 ‘‘(d) INVESTMENT.— 

7 ‘‘(1) IN GENERAL.—The Secretary of the Treas8 ury shall immediately invest, in interest-bearing secu9 rities of the United States, such currently available 

10 portions of the Fund as are not immediately required 

11 for payments from the Fund. 

12 ‘‘(2) MANNER OF INVESTMENTS.—Investments 

13 under paragraph (1) shall be made in the same man14 ner as investments for the Civil Service Retirement 

15 and Disability Fund under section 8348 of title 5. 

16 ‘‘(e) PAYMENTS TO FUND.— 

17 ‘‘(1) COST ATTRIBUTABLE TO 1 YEAR OF EM18 PLOYEES’ SERVICE.—Not later than June 30, 2017, 

19 and not later than June 30 of each year thereafter, 

20 the Postal Service shall compute— 

21 ‘‘(A) with respect to each of the 3 preceding 

22 fiscal years, the net present value, as of Sep23 tember 30 of the fiscal year, of projected future 

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1 juries or deaths that occurred during the fiscal 

2 year; 

3 ‘‘(B) for each of the 3 amounts computed 

4 under subparagraph (A), the sum of— 

5 ‘‘(i) the amount; and 

6 ‘‘(ii) accrued interest on the amount 

7 through September 30 of the preceding fiscal 

8 year; and 

9 ‘‘(C) the average of the 3 sums computed 

10 under subparagraph (B). 

11 ‘‘(2) LIQUIDATION SCHEDULE.— 

12 ‘‘(A) COMPUTATION; RECOMPUTATION.—Not 

13 later than June 30, 2017, the Postal Service 

14 shall compute, and not later than June 30 of 

15 each year thereafter the Postal Service shall re16 compute, a schedule including a series of annual 

17 installments that provide for the liquidation of 

18 the amount described in subparagraph (B) (re19 gardless of whether the amount is a liability or 

20 surplus), including interest at the rate used in 

21 the computations under paragraph (1), by the 

22 later of— 

23 ‘‘(i) September 30, 2057; or 

24 ‘‘(ii) September 30 of the fiscal year 

25 that is 15 years after the fiscal year in 


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1 which the computation or recomputation is 

2 made. 

3 ‘‘(B) AMOUNT TO BE LIQUIDATED.—The 

4 amount described in this subparagraph is the 

5 difference between— 

6 ‘‘(i) the difference between— 

7 ‘‘(I) 80 percent of the Postal Serv8 ice actuarial liability as of September 

9 30 of the preceding fiscal year; and 

10 ‘‘(II) 80 percent of the amount 

11 computed under paragraph (1)(C) as 

12 of September 30 of the preceding fiscal 

13 year; and 

14 ‘‘(ii) the value of the assets of the Fund 

15 as of September 30 of the preceding fiscal 

16 year. 

17 ‘‘(3) LIQUIDATION OF LIABILITY.— 

18 ‘‘(A) IN GENERAL.—Subject to subpara19 graph (B), not later than September 30, 2018, 

20 and not later than September 30 of each year 

21 thereafter, the Postal Service shall pay into the 

22 Fund the lesser of— 

23 ‘‘(i) the sum of— 


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1 ‘‘(I) 80 percent of the amount 

2 computed under paragraph (1)(C) dur3 ing the fiscal year; and 

4 ‘‘(II) any annual installment 

5 computed under paragraph (2)(A); and 

6 ‘‘(ii) the amount by which— 

7 ‘‘(I) the amount of adjusted net 

8 income earned by the Postal Service 

9 during the fiscal year that ended 1 

10 year before the date by which a pay11 ment is required to be made under this 

12 subparagraph; exceeds 

13 ‘‘(II) $1,000,000,000. 

14 ‘‘(B) EXCEPTION.—If the amount of ad15 justed net income earned by the Postal Service 

16 during a fiscal year does not exceed 

17 $1,000,000,000, the Postal Service shall not be 

18 required to make a payment under this para19 graph during the subsequent fiscal year. 

20 ‘‘(f) PAYMENTS FROM FUND.— 

21 ‘‘(1) IN GENERAL.—Beginning with the fiscal 

22 year ending on September 30, 2018, for each payment 

23 that the Postal Service is required to make under sec24 tion 8147 of title 5 during the fiscal year— 


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1 ‘‘(A) a fraction of the amount of the pay2 ment shall be paid from the Fund in accordance 

3 with paragraph (2) of this subsection; and 

4 ‘‘(B) the remaining amount of the payment 

5 shall be paid by the Postal Service. 

6 ‘‘(2) FRACTION.—The fraction to be paid from 

7 the Fund, as required under paragraph (1), is, with 

8 respect to the fiscal year during which the payment 

9 is required to be made, the quotient of— 

10 ‘‘(A) the value of the assets of the Fund as 

11 of September 30 of the preceding fiscal year; and 

12 ‘‘(B) the sum of— 

13 ‘‘(i) the Postal Service actuarial liabil14 ity as of the end of the fiscal year before the 

15 preceding fiscal year, plus interest accrued 

16 on that amount through the end of the pre17 ceding fiscal year; and 

18 ‘‘(ii) the amount calculated under sub19 section (e)(1)(C) as of the end of the fiscal 

20 year before the preceding fiscal year, plus 

21 interest accrued on that amount through the 

22 end of the preceding fiscal year. 

23 ‘‘(g) ASSUMPTIONS AND METHODOLOGY.—The as24 sumptions and methodology used in the computations under 

25 this section shall be consistent, insofar as reasonable and 


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1 appropriate, with the assumptions and methodology used 

2 by the Postal Service in making computations of its assets 

3 and liabilities for the financial reporting required under 

4 section 3654.’’. 

5 (2) TECHNICAL AND CONFORMING AMEND6 MENT.—The table of sections for chapter 20 of title 

7 39, United States Code, is amended by adding at the 

8 end the following: 

‘‘2012. Provisions relating to workers’ compensation prefunding.’’. 

9 (b) ADDITIONAL ANNUAL FINANCIAL REPORTING.— 

10 (1) IN GENERAL.—Section 3654(b) of title 39, 

11 United States Code, is amended by adding at the end 

12 the following: 

13 ‘‘(4)(A) Each report required by subsection 

14 (a)(1)(B) shall include, with respect to the workers’ 

15 compensation obligations of the Postal Service— 

16 ‘‘(i) as of the last day of the fiscal year to 

17 which the report applies, the amount of the Post18 al Service actuarial liability; 

19 ‘‘(ii) the value of the assets in the Fund, 

20 and the difference between that amount and the 

21 amount of the Postal Service actuarial liability; 

22 ‘‘(iii) the amounts calculated under para23 graphs (1) and (2) of section 2012(e); 

24 ‘‘(iv) significant methods and assumptions 

25 underlying the relevant actuarial valuations; 


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1 ‘‘(v) any payments to the Fund and from 

2 the Fund for the fiscal year to which the report 

3 applies; and 

4 ‘‘(vi) the assumed rate of return on balances 

5 of the Fund and the actual rate of return for the 

6 fiscal year to which the report applies. 

7 ‘‘(B) In this paragraph, the terms ‘Fund’ and 

8 ‘Postal Service actuarial liability’ have the meaning 

9 given those terms in section 2012(a).’’. 

10 (2) APPLICABILITY.—The amendment made by 

11 paragraph (1) shall apply with respect to the report 

12 required under section 3654(a)(1)(B) of title 39, 

13 United States Code, for the fiscal year ending on Sep14 tember 30, 2014, and to such report for each fiscal 

15 year thereafter. 

16 SEC. 107. RIGHT OF APPEAL TO MERIT SYSTEMS PROTEC17 TION BOARD. 

18 Section 1005(a)(4)(A)(ii)(I) of title 39, United States 

19 Code, is amended to read as follows: 

20 ‘‘(I) is an officer or employee of the Postal 

21 Service who— 

22 ‘‘(aa) is not represented by a bar23 gaining representative recognized under sec24 tion 1203; and 


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1 ‘‘(bb) is in a supervisory, professional, 

2 technical, clerical, administrative, or mana3 gerial position covered by the Executive and 

4 Administrative Schedule; and’’. 

5 SEC. 108. SUPERVISORY AND OTHER MANAGERIAL ORGANI6 ZATIONS. 

7 Section 1004 of title 39, United States Code, is amend8 ed— 

9 (1) in subsection (a), by inserting ‘‘and fringe 

10 benefits’’ after ‘‘differentials in rates of pay’’; 

11 (2) in subsection (b), in the second sentence, by 

12 inserting ‘‘as provided under subsection (d) and any 

13 changes in, or termination of, pay policies and sched14 ules and fringe benefit programs for members of the 

15 supervisors’ organization as provided under sub16 section (e). Such pay policies and fringe benefit pro17 grams shall reflect adequate differentials in rates of 

18 pay and fringe benefits as provided under subsection 

19 (a)’’ before the period; and 

20 (3) in subsection (e)(1), by inserting ‘‘, or termi21 nation of,’’ after ‘‘any changes in’’. 


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1 TITLE II—POSTAL SERVICE 

2 OPERATIONS 

3 SEC. 201. MAINTENANCE OF DELIVERY SERVICE STAND4 ARDS. 

5 (a) MORATORIUM ON CHANGES IN DELIVERY SERVICE

6 STANDARDS.—The Postal Service shall maintain the service 

7 standards for first-class mail and periodicals under part 

8 121 of title 39, Code of Federal Regulations, as in effect 

9 on October 1, 2013, until the later of— 

10 (1) the date that is 2 years after the date of en11 actment of this Act; or 

12 (2) the date that is 1 year after the date on 

13 which the Comptroller General of the United States 

14 submits the report required under subsection (b)(2). 

15 (b) GAO STUDY AND REPORT.— 

16 (1) STUDY.—The Comptroller General of the 

17 United States shall conduct a study that assesses— 

18 (A) how the Postal Service measures deliv19 ery times for the purpose of determining whether 

20 service standards have been met; and 

21 (B) whether the method used by the Postal 

22 Service to measure delivery times reflects the 

23 total period of time beginning when a mailed 

24 item is transferred from a postal customer and 


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1 ending when the mailed item arrives at its final 

2 destination. 

3 (2) REPORT.—Not later than 1 year after the 

4 date of enactment of this Act, the Comptroller General 

5 shall submit to the Committee on Homeland Security 

6 and Governmental Affairs of the Senate and the Com7 mittee on Oversight and Government Reform of the 

8 House of Representatives a report on the findings of 

9 the study conducted under paragraph (1) that in10 cludes recommendations as to whether the Postal 

11 Service should use additional or improved methods 

12 to— 

13 (A) measure the actual delivery times expe14 rienced by postal customers; and 

15 (B) assess compliance with the service 

16 standards promulgated under section 3691 of 

17 title 39, United States Code. 

18 (3) CONSULTATION.—In conducting the study 

19 under paragraph (1), the Comptroller General shall 

20 consult with the Commission to the extent appro21 priate. 

22 (c) ALTERNATE MEANS OF TRANSPORTATION CON23 TRACTS.— 

24 (1) MAINTENANCE OF DELIVERY SERVICE STAND25 ARDS.—Notwithstanding subsection (a), during the 2- 


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1 year period beginning on the date of enactment of this 

2 Act, the Postal Service shall apply the service stand3 ards for first-class mail and periodicals under part 

4 121 of title 39, Code of Federal Regulations, as in ef5 fect on June 30, 2012, to routes on which, as of June 

6 30, 2012, first-class mail and periodicals were trans7 ported under Alternate Means of Transportation con8 tracts with the Postal Service. 

9 (2) RESTRICTION ON DISCONTINUANCE OF AL10 TERNATE MEANS OF TRANSPORTATION CONTRACTS.— 

11 Section 404 of title 39, United States Code, as 

12 amended by section 302, is amended by adding at the 

13 end the following: 

14 ‘‘(i) ALTERNATIVE MEANS OF TRANSPORTATION CON15 TRACTS.— 

16 ‘‘(1) DEFINITION.—In this subsection, the term 

17 ‘covered route’ means a route on which first-class 

18 mail and periodicals are transported under an Alter19 nate Means of Transportation contract. 

20 ‘‘(2) REQUIREMENTS BEFORE CHANGING TO

21 OTHER MEANS OF TRANSPORTATION.—The Postal 

22 Service, prior to making a determination under sub23 section (a)(1) to transport first-class mail or periodi24 cals on a covered route using a means other than 


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1 under an Alternate Means of Transportation contract, 

2 shall consider— 

3 ‘‘(A) the effect of the change on— 

4 ‘‘(i) each community served by the cov5 ered route; 

6 ‘‘(ii) businesses, including small busi7 nesses, in the area served by the covered 

8 route; and 

9 ‘‘(iii) employees of the Postal Service 

10 involved in transportation on the covered 

11 route; 

12 ‘‘(B) whether the change is consistent with 

13 the policy of the Government, as stated in section 

14 101(b), that the Postal Service shall provide a 

15 maximum degree of effective and regular postal 

16 services to rural areas, communities, and small 

17 towns where post offices are not self-sustaining; 

18 ‘‘(C) the extent to which each community 

19 served by the covered route lacks access to Inter20 net service; 

21 ‘‘(D) the extent to which postal customers 

22 served by the covered route would continue after 

23 the change to receive substantially similar access 

24 to essential items and time-sensitive communica25 tions; 


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1 ‘‘(E) whether substantial economic savings 

2 to the Postal Service would result from the 

3 change; 

4 ‘‘(F) the average daily volume of mail 

5 transported on the covered route; 

6 ‘‘(G) any change in the volume of mail 

7 transported on the covered route during the pre8 ceding 12 months; 

9 ‘‘(H) the capacity of available transpor10 tation service providers to meet the volume needs 

11 of the Postal Service on the covered route; 

12 ‘‘(I) the ability of the Postal Service to pro13 cure and access additional transportation capac14 ity to meet the volume needs of the Postal Service 

15 on the covered route; 

16 ‘‘(J) the impact of the change on postal fa17 cilities (as that term is defined in subsection (f)) 

18 that use the covered route; 

19 ‘‘(K) the ability of postal facilities described 

20 in subparagraph (J) to continue to provide serv21 ice that complies with applicable service stand22 ards after the change; and 

23 ‘‘(L) any other factors that the Postal Serv24 ice determines are necessary. 


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1 ‘‘(3) DETERMINATIONS.—Any determination of 

2 the Postal Service to transport first-class mail or 

3 periodicals on a covered route using a means other 

4 than under an Alternate Means of Transportation 

5 contract shall— 

6 ‘‘(A) be in writing; 

7 ‘‘(B) include the findings of the Postal Serv8 ice with respect to the considerations required to 

9 be made under paragraph (2); and 

10 ‘‘(C) be made available by public notice to 

11 persons served by the covered route. 

12 ‘‘(4) ADVANCE NOTICE OF DETERMINATIONS.— 

13 The Postal Service shall take no action to transport 

14 first-class mail or periodicals on a covered route 

15 using a means other than under an Alternate Means 

16 of Transportation contract until 60 days after the 

17 date on which the Postal Service makes available to 

18 persons served by the covered route a written deter19 mination under paragraph (3).’’. 

20 (3) REPORT.—Not later than 2 years after the 

21 date of enactment of this Act, the Postal Service shall 

22 submit to Congress a report on potential cost savings 

23 resulting from any decision made during the 2-year 

24 period beginning on the date of enactment of this 

25 Act— 


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1 (A) to transport first-class mail or periodi2 cals on a covered route (as defined in section 

3 404(i)(1) of title 39, United States Code, as 

4 added by this section) using a means other than 

5 under an Alternate Means of Transportation 

6 contract; or 

7 (B) to discontinue a post office. 

8 SEC. 202. PRESERVING MAIL PROCESSING CAPACITY; RE9 VIEW OF DISCONTINUANCES, CLOSINGS, AND 

10 CONSOLIDATIONS. 

11 (a) MORATORIUM ON CLOSING OR CONSOLIDATION OF

12 POSTAL FACILITIES.—The Postal Service may not close or 

13 consolidate any postal facility (as that term is defined in 

14 section 404(f) of title 39, United States Code, as added by 

15 this section) that was open as of October 1, 2013 until the 

16 later of— 

17 (1) the date that is 2 years after the date of en18 actment of this Act; or 

19 (2) the date that is 1 year after the date on 

20 which the Comptroller General of the United States 

21 submits the report on delivery service standards re22 quired under section 201(b)(2). 

23 (b) PROCEDURES FOR CLOSING OR CONSOLIDATION OF

24 POSTAL FACILITIES.—Section 404 of title 39, United States 

25 Code, is amended by adding at the end the following: 


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1 ‘‘(f) CLOSING OR CONSOLIDATION OF CERTAIN POSTAL

2 FACILITIES.— 

3 ‘‘(1) DEFINITION.—In this subsection, the term 

4 ‘postal facility’ means a processing and distribution 

5 center, processing and distribution facility, network 

6 distribution center, or other facility that is operated 

7 by the Postal Service, the primary function of which 

8 is to sort and process mail. 

9 ‘‘(2) AREA MAIL PROCESSING STUDIES.— 

10 ‘‘(A) APPLICABILITY.—In this paragraph— 

11 ‘‘(i) the term ‘area mail processing 

12 study’ means an area mail processing feasi13 bility study described in section 2–1 of 

14 Handbook PO–408 of the Postal Service, en15 titled ‘Area Mail Processing Guidelines’, as 

16 in effect on October 1, 2013; 

17 ‘‘(ii) the term ‘closing’, with respect to 

18 a covered postal facility, means the transfer 

19 of all incoming and outgoing mail sortation 

20 and processing operations of the covered 

21 postal facility to a different covered postal 

22 facility; 

23 ‘‘(iii) the term ‘consolidate’, with re24 spect to a covered postal facility, means the 

25 transfer of either all incoming or all outVerDate Mar 15 2010 04:57 Aug 01, 2014 Jkt 039200 PO 00000 Frm 00244 Fmt 6652 Sfmt 6203 E:\BILLS\S1486.RS S1486

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1 going mail sortation and processing oper2 ations of the covered postal facility to a dif3 ferent covered postal facility; and 

4 ‘‘(iv) the term ‘covered postal facility’ 

5 means a postal facility, the primary func6 tion of which is to sort and process first7 class mail originating or designating with8 in a defined geographic area. 

9 ‘‘(B) NEW AREA MAIL PROCESSING STUD10 IES.—Before making a determination under sub11 section (a)(3) as to the necessity for the closing 

12 or consolidation of a covered postal facility, the 

13 Postal Service shall— 

14 ‘‘(i) conduct an area mail processing 

15 study relating to the covered postal facility 

16 that includes consideration of a plan to re17 duce the capacity of the covered postal facil18 ity without closing the covered postal facil19 ity; and 

20 ‘‘(ii) upon completing the study under 

21 clause (i)— 

22 ‘‘(I) publish the results of the 

23 study on the website of the Postal Serv24 ice; and 


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1 ‘‘(II) publish a notice that the 

2 study is complete and the results of the 

3 study are available to the public, in4 cluding on the website of the Postal 

5 Service. 

6 ‘‘(C) COMPLETED OR ONGOING AREA MAIL

7 PROCESSING STUDIES.— 

8 ‘‘(i) IN GENERAL.—In the case of a 

9 covered postal facility described in clause 

10 (ii), the Postal Service shall— 

11 ‘‘(I) consider a plan to reduce the 

12 capacity of the covered postal facility 

13 without closing the covered postal facil14 ity; and 

15 ‘‘(II) publish the results of the 

16 consideration under subclause (I) with 

17 or as an amendment to the area mail 

18 processing study relating to the covered 

19 postal facility. 

20 ‘‘(ii) POSTAL FACILITIES.—A covered 

21 postal facility described in this clause is a 

22 covered postal facility— 

23 ‘‘(I) for which, as of the date of 

24 enactment of this subsection, an area 

25 mail processing study— 


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1 ‘‘(aa) has been completed but 

2 does not include a plan to reduce 

3 the capacity of the covered postal 

4 facility without closing the cov5 ered postal facility; or 

6 ‘‘(bb) is in progress; and 

7 ‘‘(II) which, as of the date of en8 actment of this subsection, has not been 

9 closed or consolidated. 

10 ‘‘(3) NOTICE, PUBLIC COMMENT, AND PUBLIC

11 HEARING.—If the Postal Service makes a determina12 tion under subsection (a)(3) to close or consolidate a 

13 postal facility, the Postal Service shall— 

14 ‘‘(A) provide notice of the determination 

15 to— 

16 ‘‘(i) Congress; and 

17 ‘‘(ii) the Postal Regulatory Commis18 sion; 

19 ‘‘(B) provide adequate public notice of the 

20 intention of the Postal Service to close or consoli21 date the postal facility; 

22 ‘‘(C) ensure that interested persons have an 

23 opportunity to submit public comments during a 

24 45-day period after the Postal Service provides 

25 the notice of intention under subparagraph (B); 


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1 ‘‘(D) before the 45-day period described in 

2 subparagraph (C), provide public notice of the 

3 opportunity under subparagraph (C) to submit 

4 public comments during that period by— 

5 ‘‘(i) publication on the website of the 

6 Postal Service; 

7 ‘‘(ii) posting at the affected postal fa8 cility; and 

9 ‘‘(iii) publicizing the date and location 

10 of the public community meeting under sub11 paragraph (E); and 

12 ‘‘(E) during the 45-day period described in 

13 subparagraph (C), conduct a public meeting that 

14 provides an opportunity for comments to be sub15 mitted verbally or in writing. 

16 ‘‘(4) FURTHER CONSIDERATIONS.—The Postal 

17 Service, in making a determination under subsection 

18 (a)(3) to close or consolidate a postal facility, shall 

19 consider— 

20 ‘‘(A) the views presented by interested per21 sons under paragraph (3); 

22 ‘‘(B) the effect of the closing or consolida23 tion on the affected community, including the 

24 impact the closing or consolidation may have on 

25 a State, region, or locality; 


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1 ‘‘(C) the effect of the closing or consolidation 

2 on the travel times and distances for affected cus3 tomers to access services under the proposed clos4 ing or consolidation; 

5 ‘‘(D) the effect of the closing or consolida6 tion on delivery times for all classes of mail and 

7 packages; 

8 ‘‘(E) any characteristics of certain geo9 graphical areas, such as remoteness, broadband 

10 internet availability with a lower rates of access 

11 than the average rate of access in other geo12 graphical areas of the United States, and weath13 er-related obstacles, that may result in the clos14 ing or consolidation having a unique effect; 

15 ‘‘(F) the effect of the closing or consolidation 

16 on small businesses in the area, including ship17 ping and communications with customers and 

18 suppliers and the corresponding impact on reve19 nues, operations, and growth; 

20 ‘‘(G) the extent to which significant changes 

21 in delivery service resulting from the closure or 

22 consolidation of the postal facility would affect 

23 the ability of individuals and businesses in the 

24 region served by the postal facility to participate 

25 in the national economy; 


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1 ‘‘(H) the ability of the Postal Service to 

2 maintain a safe working environment at each 

3 postal facility that, as a result of the closing or 

4 consolidation, would process the mail that had 

5 been processed by the closed or consolidated post6 al facility, including by examining— 

7 ‘‘(i) the capacity of each affected postal 

8 facility to process a greater volume of mail; 

9 ‘‘(ii) the ability of the workforce at 

10 each affected postal facility to handle a 

11 larger workload; and 

12 ‘‘(iii) whether the Postal Service would 

13 need to hire additional employees at affected 

14 postal facilities to process the increased vol15 ume of mail; 

16 ‘‘(I) the extent to which the Postal Service 

17 can take action to mitigate significant negative 

18 impacts identified through the considerations 

19 under this paragraph; and 

20 ‘‘(J) any other factor the Postal Service de21 termines is necessary. 

22 ‘‘(5) NOTICE OF FINAL DETERMINATION; JUS23 TIFICATION STATEMENT.—If the Postal Service deter24 mines to close or consolidate a postal facility, the 


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1 Postal Service shall post on the website of the Postal 

2 Service— 

3 ‘‘(A) notice of the final determination to 

4 close or consolidate the postal facility; and 

5 ‘‘(B) a closing or consolidation justification 

6 statement that includes— 

7 ‘‘(i) a response to the public comments 

8 received with respect to the considerations 

9 described under paragraph (4); 

10 ‘‘(ii) a description of the consider11 ations made by the Postal Service under 

12 paragraph (4); and 

13 ‘‘(iii) the actions that the Postal Serv14 ice will take to mitigate any significant 

15 negative effects identified under paragraph 

16 (4). 

17 ‘‘(6) CLOSING OR CONSOLIDATION OF POSTAL FA18 CILITIES.— 

19 ‘‘(A) IN GENERAL.—Not earlier than 15 

20 days after the date on which the Postal Service 

21 posts notice of a final determination and a jus22 tification statement under paragraph (5) with 

23 respect to a postal facility, the Postal Service 

24 may close or consolidate the postal facility. 


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1 ‘‘(B) ALTERNATIVE INTAKE OF MAIL.—If 

2 the Postal Service closes or consolidates a postal 

3 facility under subparagraph (A), the Postal 

4 Service shall make reasonable efforts to ensure 

5 continued mail receipt from customers of the 

6 closed or consolidated postal facility at the same 

7 location or at another appropriate location in 

8 close geographic proximity to the closed or con9 solidated postal facility. 

10 ‘‘(7) PROTECTION OF CERTAIN INFORMATION.— 

11 Nothing in this subsection shall be construed to re12 quire the Postal Service to disclose any— 

13 ‘‘(A) proprietary data; 

14 ‘‘(B) information relating to the security of 

15 a postal facility; or 

16 ‘‘(C) information that is exempt from dis17 closure under section 552 of title 5. 

18 ‘‘(8) POSTAL REGULATORY COMMISSION AP19 PEALS.— 

20 ‘‘(A) RIGHT TO APPEAL.—A determination 

21 of the Postal Service to close or consolidate any 

22 postal facility may be appealed by any person 

23 served by the postal facility to the Postal Regu24 latory Commission not later than 30 days after 


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1 the date on which the determination is posted on 

2 the Postal Service website under paragraph (5). 

3 ‘‘(B) REVIEW BASED ON RECORD.—The 

4 Commission shall review a determination ap5 pealed under this paragraph on the basis of the 

6 record before the Postal Service in the making of 

7 the determination. 

8 ‘‘(C) DEADLINE FOR COMMISSION DETER9 MINATION.—The Commission shall make a deter10 mination based upon a review conducted under 

11 subparagraph (B) not later than 90 days after 

12 the date on which the Commission receives the 

13 appeal of the determination under subparagraph 

14 (A). 

15 ‘‘(D) BASES FOR SETTING ASIDE POSTAL

16 SERVICE DETERMINATIONS.—In making a deter17 mination under subparagraph (C), the Commis18 sion shall set aside any determination, finding, 

19 or conclusion of the Postal Service that the Com20 mission determines— 

21 ‘‘(i) is arbitrary, capricious, an abuse 

22 of discretion, or otherwise not in accordance 

23 with the law; 


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1 ‘‘(ii) is without observance of the pro2 cedures required under this subsection or 

3 any other applicable law; or 

4 ‘‘(iii) is unsupported by substantial 

5 evidence on the record. 

6 ‘‘(E) OPTION TO AFFIRM OR REMAND.—The 

7 Commission— 

8 ‘‘(i) may affirm a determination of the 

9 Postal Service appealed under this para10 graph or order that the entire matter be re11 turned for further consideration; and 

12 ‘‘(ii) may not modify the determina13 tion of the Postal Service. 

14 ‘‘(F) TEMPORARY SUSPENSION.—The Com15 mission may suspend the effectiveness of a deter16 mination of the Postal Service appealed under 

17 this paragraph until the final disposition of the 

18 appeal. 

19 ‘‘(G) APPLICABILITY OF OTHER LAWS.—The 

20 provisions of section 556, section 557, and chap21 ter 7 of title 5 shall not apply to any review car22 ried out by the Commission under this para23 graph. 


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1 ‘‘(H) DATE OF RECEIPT OF APPEAL.—For 

2 purposes of subparagraph (A), any appeal re3 ceived by the Commission shall— 

4 ‘‘(i) if sent to the Commission through 

5 the mails, be considered to have been re6 ceived on the date of the Postal Service post7 mark on the envelope or other cover in 

8 which the appeal is mailed; or 

9 ‘‘(ii) if otherwise lawfully delivered to 

10 the Commission, be considered to have been 

11 received on the date determined based on 

12 any appropriate documentation or other in13 dicia (as determined under regulations of 

14 the Commission).’’. 

15 SEC. 203. PRESERVING COMMUNITY POST OFFICES. 

16 Section 404(d) of title 39, United States Code, is 

17 amended— 

18 (1) by striking ‘‘(6) For purposes of paragraph 

19 (5)’’ and inserting the following: 

20 ‘‘(8) DATE OF RECEIPT OF APPEALS.—For pur21 poses of paragraph (7)’’; 

22 (2) by striking ‘‘(5) A determination’’ and in23 serting the following: 

24 ‘‘(7) APPEALS.—A determination’’; 


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1 (3) by striking ‘‘(d)(1) The Postal Service’’ and 

2 all that follows through the end of paragraph (4) and 

3 inserting the following: 

4 ‘‘(d) DISCONTINUANCE OF POST OFFICES.— 

5 ‘‘(1) DEFINITIONS.—In this subsection— 

6 ‘‘(A) the term ‘discontinuance’ has the 

7 meaning given the term in section 241.3 of title 

8 39, Code of Federal Regulations, as in effect on 

9 November 1, 2013; 

10 ‘‘(B) the term ‘local government’ means— 

11 ‘‘(i) a county, municipality, city, 

12 town, township, local public authority, spe13 cial district, intrastate district, council of 

14 government, or regional or interstate gov15 ernment entity; 

16 ‘‘(ii) an agency or instrumentality of 

17 an entity described in clause (i); or 

18 ‘‘(iii) a rural community, an unincor19 porated town or village, or an instrumen20 tality of a rural community or an unincor21 porated town or village; 

22 ‘‘(C) the term ‘post office’ means a post of23 fice, post office branch, post office classified sta24 tion, or other facility that is operated by the 


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1 Postal Service, the primary function of which is 

2 to provide retail postal services; and 

3 ‘‘(D) the term ‘rural post office’ means a 

4 post office that is— 

5 ‘‘(i) in a rural area, as defined by the 

6 Census Bureau; and 

7 ‘‘(ii) within the K or L cost ascertain8 ment grouping, as classified by the Postal 

9 Service. 

10 ‘‘(2) PRELIMINARY CONSIDERATIONS.—The Post11 al Service, prior to making a determination under 

12 subsection (a)(3) of this section as to the necessity for 

13 the discontinuance of any post office, and, with re14 spect to a determination to discontinue a rural post 

15 office, prior to making the determinations required 

16 under paragraph (5), shall— 

17 ‘‘(A) consider whether— 

18 ‘‘(i) to discontinue the post office and 

19 combine it with another post office located 

20 within a reasonable distance; 

21 ‘‘(ii) instead of discontinuing the post 

22 office— 

23 ‘‘(I) to reduce the number of hours 

24 a day that the post office operates; or 


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1 ‘‘(II) to continue operating the 

2 post office for the same number of 

3 hours a day; 

4 ‘‘(iii) to procure a contract providing 

5 full, or less than full, retail postal services 

6 in the community served by the post office; 

7 or 

8 ‘‘(iv) to provide postal services to the 

9 community served by the post office— 

10 ‘‘(I) through a letter carrier or by 

11 Alternate Means of Transportation de12 livery contract; 

13 ‘‘(II) by colocating postal services 

14 at a commercial or government entity; 

15 or 

16 ‘‘(III) by implementing an alter17 native proposal made by a local gov18 ernment under subparagraph (B)(iii); 

19 ‘‘(B) provide— 

20 ‘‘(i) relevant information on financial 

21 costs associated with the operations of the 

22 post office to postal customers and local gov23 ernments served by the post office; 

24 ‘‘(ii) postal customers served by the 

25 post office an opportunity to present their 


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1 views, which may be by nonbinding survey 

2 conducted by mail; and 

3 ‘‘(iii) local governments served by the 

4 post office an opportunity to present alter5 native proposals for providing postal serv6 ices to the community; and 

7 ‘‘(C) if the Postal Service determines to dis8 continue the post office, provide adequate public 

9 notice of its intention to discontinue the post of10 fice at least 60 days prior to the proposed date 

11 of the discontinuance to persons and local gov12 ernments served by the post office. 

13 ‘‘(3) CONSIDERATIONS.—The Postal Service, in 

14 making a determination whether or not to discontinue 

15 a post office— 

16 ‘‘(A) shall consider— 

17 ‘‘(i) the effect of the discontinuance on 

18 the community served by the post office; 

19 ‘‘(ii) the effect of the discontinuance on 

20 businesses, including small businesses, in 

21 the area; 

22 ‘‘(iii) the effect of the discontinuance 

23 on employees of the Postal Service employed 

24 at the post office; 


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1 ‘‘(iv) whether the discontinuance would 

2 have a significant adverse effect on regular 

3 postal services to rural areas, communities, 

4 and small towns where post offices are not 

5 self-sustaining; 

6 ‘‘(v) the extent to which the community 

7 served by the post office lacks access to 

8 Internet, broadband, or cellular telephone 

9 service; 

10 ‘‘(vi) the extent to which postal cus11 tomers served by the post office would con12 tinue after the discontinuance to receive 

13 substantially similar access to essential 

14 items, such as prescription drugs and time15 sensitive communications; 

16 ‘‘(vii) the proximity and accessibility 

17 of other post offices; 

18 ‘‘(viii) whether substantial economic 

19 savings to the Postal Service would result 

20 from the discontinuance; and 

21 ‘‘(ix) any other factors that the Postal 

22 Service determines are necessary; and 

23 ‘‘(B) may not consider compliance with any 

24 provision of the Occupational Safety and Health 

25 Act of 1970 (29 U.S.C. 651 et seq.). 


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1 ‘‘(4) WRITTEN DETERMINATION AND FINDINGS.— 

2 ‘‘(A) IN GENERAL.—Any determination of 

3 the Postal Service to discontinue a post office 

4 shall— 

5 ‘‘(i) be in writing; 

6 ‘‘(ii) include the findings of the Postal 

7 Service with respect to the considerations 

8 required to be made under paragraph (3); 

9 and 

10 ‘‘(iii) with respect to a determination 

11 to discontinue a rural post office, include a 

12 summary of the determinations required 

13 under paragraph (5). 

14 ‘‘(B) AVAILABILITY OF FINDINGS.—The 

15 Postal Service shall make available, to persons 

16 served by a post office that the Postal Service de17 termines to discontinue, any determination and 

18 findings under subparagraph (A) with respect to 

19 that post office. 

20 ‘‘(C) NOTICE BEFORE DISCONTINUANCE.— 

21 The Postal Service may not take any action to 

22 discontinue a post office until 60 days after the 

23 date on which the Postal Service makes avail24 able, to persons served by the post office, the 

25 written determination and findings with respect 


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1 to the post office as required under subparagraph 

2 (B). 

3 ‘‘(5) RURAL POST OFFICES.— 

4 ‘‘(A) MORATORIUM ON DISCONTINUANCE OF

5 RURAL POST OFFICES.—The Postal Service may 

6 not discontinue a rural post office during the 1- 

7 year period beginning on the date of enactment 

8 of the Postal Reform Act of 2014. 

9 ‘‘(B) REQUIREMENTS FOR DISCONTINUANCE

10 OF RURAL POST OFFICES.—The Postal Service 

11 may not make a determination under subsection 

12 (a)(3) to discontinue a rural post office unless 

13 the Postal Service— 

14 ‘‘(i)(I) determines that postal cus15 tomers served by the post office would con16 tinue after the discontinuance to receive 

17 substantially similar access to essential 

18 items, such as prescription medications and 

19 time-sensitive communications, that are 

20 sent through the mails; or 

21 ‘‘(II) takes action to substantially ame22 liorate any projected reduction in access to 

23 essential items described in subclause (I); 

24 and 

25 ‘‘(ii) determines that— 


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1 ‘‘(I) there is unlikely to be sub2 stantial economic loss to the commu3 nity served by the post office as a re4 sult of the discontinuance; 

5 ‘‘(II) the area served by the post 

6 office has adequate access to broadband 

7 Internet service, as identified on the 

8 National Broadband Map of the Na9 tional Telecommunications and Infor10 mation Administration; and 

11 ‘‘(III) there is a road with year12 round access connecting the community 

13 to another post office that is within 10 

14 miles from the post office proposed to 

15 be discontinued. 

16 ‘‘(C) STUDY AND REPORT.— 

17 ‘‘(i) STUDY.—The Inspector General 

18 shall conduct a study after the discontinu19 ance of a rural post office under this sec20 tion, which shall include— 

21 ‘‘(I) the actual cost savings result22 ing from the discontinuance; and 

23 ‘‘(II) a comparison between the 

24 findings described in subclause (I) and 

25 the cost savings that the Postal Service 


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1 predicted would result from the dis2 continuance. 

3 ‘‘(ii) REPORT.—Not later than 2 years 

4 after the date of the discontinuance of a 

5 rural post office under this section, the In6 spector General shall submit a report on the 

7 findings of the study conducted under clause 

8 (i) with respect to the rural post office to— 

9 ‘‘(I) the Postal Regulatory Com10 mission; 

11 ‘‘(II) the Board of Governors; 

12 ‘‘(III) the Committee on Home13 land Security and Governmental Af14 fairs of the Senate; 

15 ‘‘(IV) the Committee on Oversight 

16 and Government Reform of the House 

17 of Representatives; 

18 ‘‘(V) the Member of the House of 

19 Representatives in whose district the 

20 rural post office was located; and 

21 ‘‘(VI) the Senators in whose State 

22 the rural post office was located. 

23 ‘‘(iii) SUNSET.—This subparagraph is 

24 repealed effective 10 years after the date of 

25 enactment of the Postal Reform Act of 2014. 


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1 ‘‘(6) REDUCTIONS IN HOURS OF OPERATION.— 

2 ‘‘(A) CONSIDERATIONS.—The Postal Serv3 ice, prior to making a determination under 

4 paragraph (2)(A)(ii)(I) to reduce the number of 

5 hours per day that a post office operates, shall 

6 consider— 

7 ‘‘(i) the impact of the proposed reduc8 tion in hours on local businesses; 

9 ‘‘(ii) the effect of the proposed reduc10 tion in hours on the community served by 

11 the post office; 

12 ‘‘(iii) the ability of the Postal Service 

13 to hire qualified employees to operate the 

14 post office during the reduced hours; 

15 ‘‘(iv) the proximity and accessibility of 

16 other post offices within 15 miles of the post 

17 office, and the hours those post offices are 

18 open; 

19 ‘‘(v) the impact of the proposed reduc20 tion in hours on the elderly and other vul21 nerable populations; and 

22 ‘‘(vi) the impact of alternative sched23 ules on the community served by the post of24 fice, including consideration of which sched25 ules would most effectively mitigate any 


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1 negative impacts identified under clauses 

2 (i) through (v). 

3 ‘‘(B) FINDINGS.—If the Postal Service de4 termines, after considering the factors under sub5 paragraph (A), to reduce the number of hours 

6 per day that a post office operates, the Postal 

7 Service shall make available to persons served by 

8 the post office— 

9 ‘‘(i) a summary of the findings of the 

10 Postal Service under subparagraph (A); 

11 ‘‘(ii) the hours during which the post 

12 office will be open; and 

13 ‘‘(iii) an explanation of the change in 

14 hours referred to in clause (ii).’’; 

15 (4) in paragraph (7), as so designated— 

16 (A) by striking ‘‘close or consolidate’’ and 

17 inserting ‘‘discontinue’’; 

18 (B) by striking ‘‘under paragraph (3)’’ and 

19 inserting ‘‘under paragraph (4)’’; 

20 (C) by moving subparagraphs (A), (B), and 

21 (C) 2 ems to the right; and 

22 (D) by moving the flush text following sub23 paragraph (C) 2 ems to the right; 


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1 (5) in paragraph (8), as so designated, by mov2 ing subparagraphs (A) and (B) 2 ems to the right; 

3 and 

4 (6) by adding at the end the following: 

5 ‘‘(9) MINIMUM RETAIL STANDARDS.—The Postal 

6 Service shall establish minimum standards for retail 

7 postal services.’’. 

8 SEC. 204. CHANGES TO MAIL DELIVERY SCHEDULE. 

9 (a) LIMITATION ON CHANGE IN SCHEDULE.— 

10 (1) IN GENERAL.—The Postal Service may estab11 lish a general, nationwide delivery schedule of 5 days 

12 per week to street addresses under the authority of the 

13 Postal Service under title 39, United States Code— 

14 (A) if the Postal Service determines that 

15 such a delivery schedule would contribute to the 

16 achievement of long-term solvency; and 

17 (B) at any time after the total mail volume 

18 during any period of 4 consecutive quarters, be19 ginning with the first full quarter after the date 

20 of enactment of this Act, is less than 

21 140,000,000,000 pieces, as reported in the Form 

22 10–Q quarterly reports filed by the Postal Serv23 ice with the Commission under section 

24 3654(a)(1)(A) of title 39, United States Code. 


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1 (2) CONTINUATION OF AUTHORITY.—If each con2 dition under subsection (a)(1) is satisfied, the fact 

3 that total mail volume during any period of 4 con4 secutive quarters, after the first quarter of the period 

5 described in subsection (a)(1)(B), exceeds 

6 140,000,000,000 pieces shall not affect the continued 

7 authority of the Postal Service to establish or main8 tain a nationwide delivery schedule of 5 days per 

9 week. 

10 (3) LIMITATION.—Notwithstanding any other 

11 provision of this subsection or subsection (d)(3), the 

12 Postal Service may not establish a nationwide deliv13 ery schedule of 5 days per week earlier than October 

14 1, 2017. 

15 (b) IMPLEMENTATION.—If the Postal Service intends 

16 to establish a change in delivery schedule under subsection 

17 (a), the Postal Service shall— 

18 (1) identify customers and communities for 

19 whom the change may have a disproportionate, nega20 tive impact, including small business customers, the 

21 elderly, those who live in locations without access to 

22 broadband Internet service, and the customers identi23 fied as ‘‘particularly affected’’ in the Advisory Opin24 ion on Elimination of Saturday Delivery issued by 

25 the Commission on March 24, 2011; 


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1 (2) develop measures to ameliorate any dis2 proportionately negative impact the change would 

3 have on customers and communities identified under 

4 paragraph (1); 

5 (3) implement measures to increase revenue and 

6 reduce costs, including the measures authorized under 

7 this Act and the amendments made by this Act; 

8 (4) evaluate whether any increase in revenue or 

9 reduction in costs, or anticipated increase in revenue 

10 or reduction in costs, resulting from the measures im11 plemented under paragraph (3) are sufficient to allow 

12 the Postal Service, without implementing a change in 

13 delivery schedule under subsection (a), to achieve 

14 long-term solvency; and 

15 (5) not earlier than 2 years and not later than 

16 6 months before the effective date for any proposed 

17 change, submit a report that includes the determina18 tion required under subsection (a)(1) and details any 

19 measures developed or implemented pursuant to para20 graph (2) or (3) of this subsection to— 

21 (A) the Committee on Homeland Security 

22 and Governmental Affairs of the Senate; 

23 (B) the Committee on Oversight and Gov24 ernment Reform of the House of Representatives; 

25 (C) the Commission; and 


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1 (D) the Comptroller General of the United 

2 States. 

3 (c) GAO REPORT.—Not later than 3 months after the 

4 date on which the Comptroller General receives the report 

5 submitted by the Postal Service under subsection (b)(5), the 

6 Comptroller General shall submit to the Postal Service, the 

7 Committee on Homeland Security and Governmental Af8 fairs of the Senate, and the Committee on Oversight and 

9 Government Reform of the House of Representatives a re10 port evaluating the extent to which— 

11 (1) a change in delivery schedule would improve 

12 the financial condition of the Postal Service and as13 sist in the efforts of the Postal Service to achieve long14 term solvency, taking into consideration other ongoing 

15 and planned efforts to increase revenue and reduce 

16 costs, consistent with the requirements under this Act; 

17 and 

18 (2) the Postal Service has complied with each of 

19 the requirements under subsection (b). 

20 (d) POSTAL SERVICE RESPONSE TO GAO REPORT.— 

21 (1) IN GENERAL.—The Postal Service shall re22 view the report submitted by the Comptroller General 

23 under subsection (c) and submit to the Committee on 

24 Homeland Security and Governmental Affairs of the 

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1 ment Reform of the House of Representatives a re2 sponse to the report if the report includes a finding 

3 by the Comptroller General that— 

4 (A) the proposed change in delivery schedule 

5 would not substantially improve the financial 

6 condition of the Postal Service and assist in the 

7 efforts of the Postal Service to achieve long-term 

8 solvency; or 

9 (B) the Postal Service has not complied 

10 with each of the requirements under subsection 

11 (b). 

12 (2) CONTENTS OF RESPONSE.—A response by the 

13 Postal Service under paragraph (1) shall include— 

14 (A) a statement regarding whether the Post15 al Service agrees with each finding of the Comp16 troller General described in subparagraph (A) or 

17 (B) of paragraph (1); 

18 (B) a statement regarding whether the Post19 al Service intends to reevaluate whether to estab20 lish a change in delivery schedule under sub21 section (a) based on the overall findings of the 

22 Comptroller General; and 

23 (C) if the Postal Service intends to establish 

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1 tification of the Postal Service for doing so in 

2 light of the findings of the Comptroller General. 

3 (3) PROHIBITION ON IMPLEMENTATION OF

4 CHANGE IN DELIVERY SCHEDULE.—The Postal Serv5 ice may not implement a change in delivery schedule 

6 under subsection (a) until 60 days after the date on 

7 which the Postal Service submits the response re8 quired under paragraph (2). 

9 (e) RULES OF CONSTRUCTION.—Nothing in this sec10 tion shall be construed to— 

11 (1) require the decrease or increase in delivery 

12 frequency for any route for which the Postal Service 

13 provided delivery on fewer than 6 days per week as 

14 of the date of enactment of this Act; 

15 (2) require that the Postal Service deliver mail 

16 on Federal holidays; 

17 (3) authorize any change in— 

18 (A) the days and times that postal retail 

19 service or any mail acceptance is available at 

20 postal retail facilities or processing facilities; or 

21 (B) the locations at which postal retail serv22 ice or mail acceptance occurs at postal retail fa23 cilities or processing facilities; 

24 (4) require any change in the frequency of deliv25 ery to a post office box; 


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1 (5) prohibit the collection or delivery of a com2 petitive mail product on a weekend, a recognized Fed3 eral holiday, or any other specific day of the week; 

4 (6) prohibit the Postal Service from exercising 

5 its authority to make changes to processing or retail 

6 networks; or 

7 (7) confer a cause of action, either express or im8 plied. 

9 (f) PACKAGES.—Notwithstanding any other provision 

10 of this section, for a period of not less than 5 years, begin11 ning on the date of enactment of this Act, the Postal Service 

12 shall provide package service— 

13 (1) 6 days per week to each street address that 

14 was eligible to receive package service 6 days per 

15 week, and to each new street address that is located 

16 in an area that was eligible to receive package service 

17 6 days per week, as of October 1, 2013; and 

18 (2) 7 days per week to each street address for 

19 which the Postal Service determines that such service 

20 provides an economic benefit to the Postal Service. 

21 (g) MAILBOX ACCESS.—If the Postal Service estab22 lishes a general, nationwide delivery schedule of 5 days per 

23 week consistent with the provisions of this section, the Post24 al Service shall amend the Mailing Standards of the United 

25 States, Domestic Mail Manual to ensure that the provisions 


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1 of section 508.3.2.10 of such manual, as in effect on October 

2 1, 2013, shall apply on any day on which the Postal Service 

3 does not deliver the mail under the established delivery 

4 schedule. 

5 (h) STUDY OF ENVIRONMENTAL IMPACT OF 5-DAY DE6 LIVERY.—Not later than 180 days after the date of enact7 ment of this Act, the Chief Sustainability Officer of the 

8 Postal Service shall— 

9 (1) conduct a study that assesses the environ10 mental impact of moving to a nationwide delivery 

11 schedule of 5 days per week, which shall include the 

12 impact on green house gas emissions, facility energy 

13 use, and transportation fuel use; and 

14 (2) publish the results of the study conducted 

15 under paragraph (1) on the website of the Postal 

16 Service. 

17 SEC. 205. DELIVERY POINT MODERNIZATION. 

18 (a) IN GENERAL.—Subchapter VII of chapter 36 of 

19 title 39, United States Code, is amended by adding at the 

20 end the following: 

21 ‘‘§ 3692. Delivery point modernization 

22 ‘‘(a) DEFINITIONS.—In this section, the following defi23 nitions shall apply: 

24 ‘‘(1) CENTRALIZED DELIVERY.—The term ‘cen25 tralized delivery’ means a primary mode of mail deVerDate Mar 15 2010 04:57 Aug 01, 2014 Jkt 039200 PO 00000 Frm 00274 Fmt 6652 Sfmt 6203 E:\BILLS\S1486.RS S1486

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1 livery whereby mail is delivered to a group or cluster 

2 of mail receptacles at a single location. 

3 ‘‘(2) CURBSIDE DELIVERY.—The term ‘curbside 

4 delivery’ means a primary mode of mail delivery 

5 whereby mail is delivered to a mail receptacle that is 

6 situated at the edge of a public sidewalk abutting a 

7 road or curb, at a road, or at a curb. 

8 ‘‘(3) DELIVERY POINT.—The term ‘delivery 

9 point’ means a mailbox or other receptacle to which 

10 mail is delivered. 

11 ‘‘(4) DISTRICT OFFICE.—The term ‘district of12 fice’ means the central office of an administrative 

13 field unit with responsibility for postal operations in 

14 a designated geographic area (as defined under regu15 lations, directives, or other guidance of the Postal 

16 Service). 

17 ‘‘(5) DOOR DELIVERY.—The term ‘door deliv18 ery’— 

19 ‘‘(A) means a primary mode of mail deliv20 ery whereby mail is— 

21 ‘‘(i) delivered to a mail receptacle at or 

22 near a postal customer’s door; or 

23 ‘‘(ii) hand-delivered to a postal cus24 tomer; and 


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1 ‘‘(B) does not include curbside or central2 ized delivery. 

3 ‘‘(6) PRIMARY MODE OF MAIL DELIVERY.—The 

4 term ‘primary mode of mail delivery’ means the typ5 ical method by which the Postal Service delivers mail 

6 to the delivery point of a postal customer. 

7 ‘‘(b) POLICY.—Except as otherwise provided in this 

8 section, including paragraphs (4) and (5) of subsection (c), 

9 it shall be the policy of the Postal Service to use the primary 

10 mode of mail delivery that is most cost effective and is in 

11 the best long-term interest of the Postal Service. 

12 ‘‘(c) CONVERSION TO OTHER DELIVERY MODES.— 

13 ‘‘(1) NEW ADDRESSES.—Except as provided in 

14 paragraphs (4) and (5), the Postal Service shall pro15 vide centralized delivery to new addresses established 

16 after the date of enactment of the Postal Reform Act 

17 of 2014, or if centralized delivery is not practicable 

18 shall provide curbside delivery. 

19 ‘‘(2) BUSINESS ADDRESS CONVERSION.—The 

20 Postal Service shall carry out a program to convert 

21 business addresses with door delivery on the date of 

22 enactment of the Postal Reform Act of 2014 to cen23 tralized delivery or to curbside delivery. 

24 ‘‘(3) RESIDENTIAL ADDRESS CONVERSION.— 


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1 ‘‘(A) IDENTIFICATION.—Not later than 9 

2 months after the date of enactment of the Postal 

3 Reform Act of 2014, the head of each district of4 fice of the Postal Service shall identify residen5 tial addresses within the service area of the dis6 trict office that are appropriate candidates for 

7 conversion from door delivery to a more cost-ef8 fective primary mode of delivery, in accordance 

9 with standards established by the Postal Service. 

10 ‘‘(B) VOLUNTARY CONVERSION.—Not later 

11 than 1 year after the date of enactment of the 

12 Postal Reform Act of 2014, and consistent with 

13 subsection (b) and paragraph (4), the Postal 

14 Service shall begin implementation of a program 

15 to convert, on a voluntary basis, the addresses 

16 identified under subparagraph (A) from door de17 livery to a more cost-effective primary mode of 

18 delivery. 

19 ‘‘(C) PROCEDURES.—In pursuing conver20 sion under subparagraph (B), the Postal Service 

21 shall establish procedures to— 

22 ‘‘(i) solicit and consider input from 

23 postal customers, State and local govern24 ments, local associations, and property 

25 owners; and 


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1 ‘‘(ii) place centralized delivery points 

2 in locations that maximize delivery effi3 ciency, ease of use for postal customers, and 

4 respect for private property rights. 

5 ‘‘(4) EXCEPTIONS.—In establishing a primary 

6 mode of mail delivery for new addresses under para7 graph (1) or converting the primary mode of mail de8 livery for an address under paragraph (2) or (3), the 

9 Postal Service may provide door delivery if— 

10 ‘‘(A) a physical barrier precludes the effi11 cient provision of centralized delivery or curbside 

12 delivery; 

13 ‘‘(B) the address is located in a registered 

14 historic district, as that term is defined in sec15 tion 47(c)(3)(B) of the Internal Revenue Code of 

16 1986; or 

17 ‘‘(C) the Postal Service determines that the 

18 provision of centralized delivery or curbside de19 livery would be impractical, would not be cost ef20 fective, or would not be in the best long-term in21 terest of the Postal Service. 

22 ‘‘(5) WAIVER FOR PHYSICAL HARDSHIP.— 

23 ‘‘(A) IN GENERAL.—The Postal Service 

24 shall establish and maintain a waiver program 

25 under which, upon the application of a postal 


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1 customer, door delivery may be continued or pro2 vided to a delivery point if— 

3 ‘‘(i) centralized delivery or curbside de4 livery would, but for this paragraph, be the 

5 primary mode of mail delivery for the deliv6 ery point; and 

7 ‘‘(ii) a physical hardship prevents the 

8 postal customer from receiving his or her 

9 mail through any other form of mail deliv10 ery. 

11 ‘‘(B) PUBLICITY; SIMPLICITY.—In estab12 lishing and maintaining the waiver program 

13 under subparagraph (A), the Postal Service 

14 shall— 

15 ‘‘(i) publicize the waiver program; and 

16 ‘‘(ii) provide a simple application 

17 process for participation in the waiver pro18 gram. 

19 ‘‘(C) POSTAL SERVICE DISCRETION.—Noth20 ing in this paragraph shall be construed to— 

21 ‘‘(i) prohibit the Postal Service from 

22 requiring evidence of a physical hardship in 

23 an appropriate case; or 


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1 ‘‘(ii) require the Postal Service to re2 quire evidence of a physical hardship in 

3 any case. 

4 ‘‘(D) NO FEES FOR APPLICATION OR DOOR

5 DELIVERY.—In establishing and maintaining the 

6 waiver program under subparagraph (A), the 

7 Postal Service may not charge a postal customer 

8 any fee to— 

9 ‘‘(i) apply for a waiver; or 

10 ‘‘(ii) upon the granting of a waiver by 

11 the Postal Service, receive mail through 

12 door delivery.’’. 

13 (b) CLERICAL AMENDMENT.—The table of sections for 

14 subchapter VII of chapter 36 of title 39, United States Code, 

15 is amended by adding at the end the following: 

‘‘3692. Delivery point modernization.’’. 

16 SEC. 206. POSTAL SERVICES FOR MARKET-DOMINANT 

17 PRODUCTS. 

18 (a) IN GENERAL.—Strike section 3661 of title 39, 

19 United States Code, and insert the following: 

20 ‘‘§ 3661. Postal services for market-dominant products 

21 ‘‘(a) GENERAL OBLIGATION.—The Postal Service shall 

22 develop and promote adequate and efficient postal services 

23 with respect to its market-dominant products. 

24 ‘‘(b) PROPOSED CHANGES FOR MARKET-DOMINANT

25 PRODUCTS.— 


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1 ‘‘(1) SUBMISSION OF PROPOSAL.—If the Postal 

2 Service determines that there should be a change in 

3 the nature of postal services relating to market-domi4 nant products that will generally affect service on a 

5 nationwide or substantially nationwide basis, the 

6 Postal Service shall submit a proposal to the Postal 

7 Regulatory Commission requesting an advisory opin8 ion on the change. 

9 ‘‘(2) ADVISORY OPINION.—Upon receipt of a pro10 posal under paragraph (1), the Postal Regulatory 

11 Commission shall— 

12 ‘‘(A) provide notice and an opportunity for 

13 public comment and a public hearing on the pro14 posal; and 

15 ‘‘(B) issue an advisory opinion not later 

16 than— 

17 ‘‘(i) 90 days after the date on which 

18 the Postal Regulatory Commission receives 

19 the proposal; or 

20 ‘‘(ii) a date that the Postal Regulatory 

21 Commission and the Postal Service may de22 termine jointly. 

23 ‘‘(3) RESPONSE TO OPINION.—The Postal Service 

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1 sponse to an advisory opinion issued under para2 graph (2) that includes— 

3 ‘‘(A) a statement of whether the Postal Serv4 ice plans to modify the proposal to address any 

5 concerns or implement any recommendations 

6 made by the Commission; and 

7 ‘‘(B) for any matter that the Postal Service 

8 determines not to address and any recommenda9 tion that the Postal Service determines not to 

10 implement, the reasons for the determination. 

11 ‘‘(4) ACTION ON PROPOSAL.—The Postal Service 

12 may take action regarding a proposal submitted 

13 under paragraph (1)— 

14 ‘‘(A) on or after the date on which the Post15 al Service submits the response required under 

16 paragraph (3); 

17 ‘‘(B) on or after a date that the Postal Reg18 ulatory Commission and the Postal Service may 

19 determine jointly; or 

20 ‘‘(C) after the date described in paragraph 

21 (2)(B), if— 

22 ‘‘(i) the Postal Regulatory Commission 

23 fails to issue an advisory opinion on or be24 fore the date described in paragraph (2)(B); 

25 and 


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1 ‘‘(ii) the action is not otherwise pro2 hibited under Federal law. 

3 ‘‘(5) MODIFICATION OF TIMELINE.—At any time, 

4 the Postal Service and the Postal Regulatory Commis5 sion may jointly redetermine a date determined under 

6 paragraph (2)(B)(ii) or (4)(B). 

7 ‘‘(c) LIMITATION.— 

8 ‘‘(1) NO CHANGES FOR COMPETITIVE PROD9 UCTS.—Nothing in this section shall be construed as 

10 authorizing the making of changes under this section 

11 to the nature of service provided for competitive prod12 ucts. 

13 ‘‘(2) HYBRID CHANGES.—For a change that af14 fects the nature of service provided for both market15 dominant products and competitive products, only the 

16 effect on market-dominant products shall be subject to 

17 this section.’’. 

18 (b) TECHNICAL AND CONFORMING AMENDMENT.—The 

19 table of sections for chapter 36 of title 39, United States 

20 Code, is amended by striking the item relating to section 

21 3661 and inserting the following: 

‘‘3661. Postal services for market-dominant products.’’. 


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1 SEC. 207. REPORT ON PILOT PROGRAM FOR USE OF NAT2 URAL GAS AND PROPANE FOR POSTAL 

3 TRUCKS. 

4 Not later than 180 days after the date of enactment 

5 of this Act, the Postmaster General shall submit to the Com6 mittee on Homeland Security and Governmental Affairs of 

7 the Senate a report on the feasibility of a pilot program 

8 to implement the use of natural gas and propane as fuels 

9 for heavy-duty over-the-road trucks, in addition to natural 

10 gas-fueled vehicles already in the postal fleet, as a fuel cost11 saving measure. 

12 SEC. 208. CAPITOL COMPLEX POST OFFICES. 

13 (a) HOUSE OF REPRESENTATIVES.— 

14 (1) IN GENERAL.—The Postal Service shall not 

15 maintain or operate more than 1 post office in the 

16 United States Capitol Complex, as defined in section 

17 310(a)(3)(B) of the Legislative Branch Appropria18 tions Act, 1990 (2 U.S.C. 2172(a)(3)(B)), which shall 

19 be located in a House Office Building. 

20 (2) CLOSING OF CAPITOL POST OFFICES.—The 

21 Postal Service shall close any post office in the United 

22 States Capitol Complex, as defined in section 

23 310(a)(3)(B) of the Legislative Branch Appropria24 tions Act, 1990 (2 U.S.C. 2172(a)(3)(B)), not per25 mitted under this subsection, without regard to the reVerDate Mar 15 2010 04:57 Aug 01, 2014 Jkt 039200 PO 00000 Frm 00284 Fmt 6652 Sfmt 6203 E:\BILLS\S1486.RS S1486

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1 quirements under section 404(d) of title 39, United 

2 States Code. 

3 (b) SENATE.— 

4 (1) IN GENERAL.—The Sergeant at Arms and 

5 Doorkeeper of the Senate may not enter into, modify, 

6 or renew a contract with the Postal Service to main7 tain or operate more than 1 post office in a Senate 

8 Office Building. 

9 (2) EXISTING CONTRACTS.—Nothing in para10 graph (1) may be construed to affect a contract en11 tered into by the Sergeant at Arms and Doorkeeper 

12 of the Senate and the Postal Service before the date 

13 of enactment of this Act. 

14 SEC. 209. LAWFUL POSSESSION OF FIREARMS IN POST OF15 FICE PARKING LOTS. 

16 (a) DEFINITIONS.—In this section— 

17 (1) the term ‘‘nonpublic area’’, with respect to a 

18 postal facility, means any area of the facility that 

19 is— 

20 (A) accessible exclusively to authorized per21 sonnel for the performance of official postal func22 tions, as determined by the Postmaster General; 

23 and 

24 (B) not accessible to the general public; 


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1 (2) the term ‘‘parking lot’’, with respect to a post 

2 office— 

3 (A) means any lot or structure— 

4 (i) the principal purpose of which is 

5 the parking of vehicles to allow the general 

6 public to access the post office; and 

7 (ii) that is owned or leased by the 

8 Postal Service; 

9 (B) does not include street parking; and 

10 (C) does not include parking lots for other 

11 Federal facilities or Federal court facilities (as 

12 those terms are defined in section 930(g)(3) of 

13 title 18, United States Code); 

14 (3) the term ‘‘post office’’ has the meaning given 

15 the term in section 404(d) of title 39, United States 

16 Code, as added by this Act; and 

17 (4) the term ‘‘postal facility’’ means any facility 

18 owned or leased by the Postal Service. 

19 (b) LAWFUL PURPOSE.—The Postal Service shall con20 sider the lawful carrying or storing of a firearm in a park21 ing lot of a post office, in a manner not inconsistent with 

22 State or local laws and not in violation of any lease for 

23 use of the parking lot or of the postal facility that the park24 ing lot serves, to be a lawful purpose for purposes of section 

25 930(d)(3) of title 18, United States Code. 


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1 (c) CODE OF FEDERAL REGULATIONS.—The Postal 

2 Service shall amend section 232.1 of title 39, Code of Fed3 eral Regulations, to specify that— 

4 (1) an individual who is otherwise permitted to 

5 carry or store a firearm in a manner not inconsistent 

6 with State or local laws may carry or store a firearm 

7 in a parking lot of a post office; and 

8 (2) carrying or storing a firearm in a parking 

9 lot of a post office, in accordance with paragraph (1), 

10 shall be considered a lawful purpose under section 

11 930(d)(3) of title 18, United States Code. 

12 (d) SIGNAGE.—The Postal Service shall post signage 

13 in each parking lot of a post office to communicate to the 

14 general public the changes in law required under this sec15 tion. 

16 (e) RULES OF CONSTRUCTION.— 

17 (1) IN GENERAL.—Nothing in this section shall 

18 be construed to limit the authority of the Postmaster 

19 General to establish— 

20 (A) workplace rules for employees of the 

21 Postal Service; or 

22 (B) regulations relating to nonpublic areas 

23 of postal facilities. 

24 (2) LAWFUL PURPOSES.—Nothing in this Act or 

25 an amendment made by this Act shall be construed to 


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1 impose the meaning of the term ‘‘lawful purpose’’ 

2 under subsection (b) with respect to any property that 

3 is not a post office or postal property. 

4 TITLE III—POSTAL SERVICE 

5 REVENUE 

6 SEC. 301. POSTAL RATES. 

7 (a) MODERN RATE SYSTEM.— 

8 (1) IN GENERAL.—Chapter 36 of title 39, United 

9 States Code, is amended by striking section 3622 and 

10 inserting the following: 

11 ‘‘§ 3622. Modern rate system 

12 ‘‘(a) AUTHORITY GENERALLY.— 

13 ‘‘(1) BOARD OF GOVERNORS.—The Board may, 

14 acting in accordance with this section, establish, and 

15 from time to time thereafter revise, a system of rates 

16 and classes for market-dominant products (referred to 

17 in this section as the ‘system’), consistent with the re18 quirements under this section. 

19 ‘‘(2) NO DELEGATION.—The authority under this 

20 section may not be delegated to the Postmaster Gen21 eral or to any other individual or entity. 

22 ‘‘(b) OBJECTIVES.—The system shall be designed to 

23 achieve the following objectives, each of which shall be ap24 plied in conjunction with the others: 


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1 ‘‘(1) To maximize incentives for the Postal Serv2 ice to reduce costs and increase efficiency. 

3 ‘‘(2) To create predictability and stability in 

4 rates. 

5 ‘‘(3) To maintain high quality service standards 

6 established under section 3691. 

7 ‘‘(4) To assure adequate revenues and maintain 

8 the financial stability of the Postal Service. 

9 ‘‘(5) To establish and maintain a just and rea10 sonable schedule for rates and classifications, however 

11 the objective under this paragraph shall not be con12 strued to prohibit the Postal Service from making 

13 changes of unequal magnitude within, between, or 

14 among classes of mail. 

15 ‘‘(6) To allocate the total institutional costs of 

16 the Postal Service appropriately between market-dom17 inant and competitive products, in accordance with 

18 regulations promulgated by the Postal Regulatory 

19 Commission (referred to in this section as the ‘Com20 mission’) under section 3633. 

21 ‘‘(c) FACTORS.—In establishing or revising the system, 

22 the Board and the Commission shall take into account— 

23 ‘‘(1) the value of the mail service provided 

24 through each class or type of mail service to both the 


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1 sender and the recipient, including the educational, 

2 cultural, scientific, and informational value; 

3 ‘‘(2) the direct and indirect postal costs attrib4 utable to each class or type of mail service; 

5 ‘‘(3) the effect of rate increases upon Postal Serv6 ice customers; 

7 ‘‘(4) the available alternative means of sending 

8 and receiving letters and other mail matter; 

9 ‘‘(5) the simplicity of structure for the entire 

10 schedule and simple, identifiable relationships be11 tween the rates or fees charged the various classes of 

12 mail for postal services; and 

13 ‘‘(6) the policies of this title as well as such other 

14 factors as the Board or the Commission determines 

15 appropriate. 

16 ‘‘(d) ADJUSTMENTS CONSISTENT WITH SYSTEM.— 

17 ‘‘(1) NOTICE.—The Board shall provide notice of 

18 any adjustment in rates or classes proposed to be 

19 made under this section that is consistent with the 

20 system then in effect— 

21 ‘‘(A) not later than— 

22 ‘‘(i) 90 days before the implementation 

23 of any rate or class adjustment that affects 

24 all or substantially all market-dominant 

25 products; and 


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1 ‘‘(ii) 45 days before the implementa2 tion of any other rate or class adjustment; 

3 and 

4 ‘‘(B) to— 

5 ‘‘(i) the public, including by— 

6 ‘‘(I) publication in the Federal 

7 Register; and 

8 ‘‘(II) posting on the website of the 

9 Postal Service; and 

10 ‘‘(ii) the Commission. 

11 ‘‘(2) PUBLIC COMMENT.—The Board shall solicit 

12 and receive public comments on any proposed rate or 

13 class adjustment, and shall take such comments into 

14 account in making its final determination as to a 

15 rate or class adjustment. 

16 ‘‘(3) FINAL DECISION.—Not later than 10 days 

17 before the implementation of a rate or class adjust18 ment, the Board shall issue a final decision on the ad19 justment which shall— 

20 ‘‘(A) be published in the Federal Register 

21 and posted on the website of the Postal Service; 

22 and 

23 ‘‘(B) include an explanation responding to 

24 all relevant comments received. 

25 ‘‘(4) COMMISSION REVIEW.— 


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1 ‘‘(A) IN GENERAL.—Any adjustment made 

2 by the Board under this section shall be subject 

3 to review by the Commission under section 3662. 

4 ‘‘(B) APPLICATION OF SECTION 3662.—In a 

5 review described in subparagraph (A), section 

6 3662 shall be applied by substituting ‘Board of 

7 Governors’ for ‘Postal Service’ where applicable. 

8 ‘‘(e) RATE BASE.—The rates for market-dominant 

9 products in effect on the date of enactment of the Postal 

10 Reform Act of 2014, including any rates adjusted under this 

11 section on an expedited basis due to either extraordinary 

12 or exceptional circumstances, shall remain in effect unless 

13 adjusted in accordance with this section. 

14 ‘‘(f) LIMITATIONS ON RATE ADJUSTMENTS.— 

15 ‘‘(1) APPLICABILITY OF LIMITATIONS.—The limi16 tations under this subsection shall remain in effect 

17 unless revised or eliminated under subsection (g). 

18 ‘‘(2) ANNUAL LIMITATION.—There shall be an 

19 annual limitation on the percentage changes in rates 

20 for market-dominant products as a whole under this 

21 section that shall be equal to the percentage change in 

22 the Consumer Price Index for All Urban Consumers 

23 unadjusted for seasonal variation over the most recent 

24 available 12-month period preceding the date the 


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1 Board provides notice of its intention to increase 

2 rates. 

3 ‘‘(3) CONDITIONS.— 

4 ‘‘(A) CLASSES OF MAIL.—The Board shall 

5 ensure that the annual percentage change in 

6 rates under this section for a class of mail, as de7 fined in the Domestic Mail Classification Sched8 ule (as in effect on the date of enactment of the 

9 Postal Accountability and Enhancement Act), 

10 does not exceed the annual limitation under 

11 paragraph (2) by more than 2 percentage points. 

12 ‘‘(B) USE OF UNUSED RATE ADJUSTMENT

13 AUTHORITY.— 

14 ‘‘(i) DEFINITION.—In this subpara15 graph, the term ‘unused rate adjustment au16 thority’ means the difference between— 

17 ‘‘(I) the maximum amount of a 

18 rate adjustment that the Board is au19 thorized to make in any year subject to 

20 the annual limitation under para21 graph (2); and 

22 ‘‘(II) the amount of the rate ad23 justment the Board actually makes in 

24 that year. 


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1 ‘‘(ii) AUTHORITY.—Subject to clause 

2 (iii), the Board may use any unused rate 

3 adjustment authority for any of the 5 years 

4 following the year the authority occurred. 

5 ‘‘(iii) LIMITATIONS.—In exercising the 

6 authority under clause (ii) in any year, the 

7 Governors— 

8 ‘‘(I) may use unused rate adjust9 ment authority from more than 1 year; 

10 ‘‘(II) may use any part of the un11 used rate adjustment authority from 

12 any year; and 

13 ‘‘(III) may not exceed the annual 

14 limitation under paragraph (2) by 

15 more than 2 percentage points. 

16 ‘‘(4) EXCEPTION TO ANNUAL LIMITATION.—Not17 withstanding the annual limitation under paragraph 

18 (2), and provided there is not sufficient unused rate 

19 adjustment authority under paragraph (3)(B), rates 

20 may be adjusted on an expedited basis due to either 

21 extraordinary or exceptional circumstances, provided 

22 that the Commission determines, after notice and op23 portunity for public comment, and within 90 days 

24 after any request by the Board, that such adjustment 

25 is reasonable and equitable and necessary to enable 


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1 the Postal Service, under best practices of honest, effi2 cient, and economical management, to maintain and 

3 continue the development of postal services of the kind 

4 and quality adapted to the needs of the United States. 

5 ‘‘(g) ADOPTION OF REVISIONS TO SYSTEM OR NEW

6 SYSTEM.— 

7 ‘‘(1) BOARD PROPOSAL.—Not earlier than Janu8 ary 1, 2017, and as appropriate thereafter, the Board 

9 may, after notice and opportunity for public com10 ment, submit to the Commission a proposal for revi11 sions to the system or a new system, consistent with 

12 the objectives under subsection (b), taking into ac13 count the factors under subsection (c), and which may 

14 include revision or elimination of the limitations es15 tablished under subsection (f). 

16 ‘‘(2) FINAL COMMISSION ACTION.—The Commis17 sion— 

18 ‘‘(A) shall consider a proposal submitted by 

19 the Board under paragraph (1); and 

20 ‘‘(B) may— 

21 ‘‘(i) adopt the proposal, without modi22 fication; or 

23 ‘‘(ii) reject the proposal. 

24 ‘‘(h) WORKSHARE DISCOUNTS.— 


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1 ‘‘(1) DEFINITION.—In this subsection, the term 

2 ‘workshare discount’ refers to rate discounts provided 

3 to mailers for the presorting, prebarcoding, handling, 

4 or transportation of mail, as further defined by the 

5 Board in accordance with subsection (a). 

6 ‘‘(2) SCOPE.—The Board shall ensure that such 

7 discounts do not exceed the cost that the Postal Serv8 ice avoids as a result of workshare activity, unless— 

9 ‘‘(A) the discount is— 

10 ‘‘(i) associated with a new postal serv11 ice, a change to an existing postal service, 

12 or with a new work share initiative related 

13 to an existing postal service; and 

14 ‘‘(ii) necessary to induce mailer behav15 ior that furthers the economically efficient 

16 operation of the Postal Service and the por17 tion of the discount in excess of the cost that 

18 the Postal Service avoids as a result of the 

19 workshare activity will be phased out over 

20 a limited period of time; 

21 ‘‘(B) the amount of the discount above costs 

22 avoided— 

23 ‘‘(i) is necessary to mitigate rate shock; 

24 and 

25 ‘‘(ii) will be phased out over time; 


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1 ‘‘(C) the discount is provided in connection 

2 with a category of mail consisting exclusively of 

3 mail matter of educational, cultural, scientific, 

4 or informational value; or 

5 ‘‘(D) reduction or elimination of the dis6 count would— 

7 ‘‘(i) impede the efficient operation of 

8 the Postal Service; 

9 ‘‘(ii) lead to a loss of volume in the af10 fected category of mail and reduce the ag11 gregate contribution to the institutional 

12 costs of the Postal Service from the category 

13 subject to the discount below what it other14 wise would have been if the discount had 

15 not been reduced or eliminated; or 

16 ‘‘(iii) result in a further increase in 

17 the rates paid by mailers not able to take 

18 advantage of the discount. 

19 ‘‘(3) NOTICE.—Whenever a workshare discount is 

20 established, the Board shall ensure that the notice pro21 vided under subsection (d)(1) includes— 

22 ‘‘(A) the reasons for establishing the dis23 count; 


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1 ‘‘(B) the data, economic analyses, and other 

2 information relied on by the Board to justify the 

3 rate; and 

4 ‘‘(C) a certification that the discount will 

5 not adversely affect rates or services provided to 

6 users of postal services who do not take advan7 tage of the discount rate. 

8 ‘‘(i) NEGOTIATED SERVICE AGREEMENTS.—The Board 

9 shall ensure that any agreement between the Postal Service 

10 and a mailer that adjusts rates or classes in a manner that 

11 is specific to the mailer— 

12 ‘‘(1) is available on public and reasonable terms 

13 to similarly situated mailers; 

14 ‘‘(2) either— 

15 ‘‘(A) improves the net financial position of 

16 the Postal Service through reducing Postal Serv17 ice costs or increasing the overall contribution to 

18 the institutional costs of the Postal Service tak19 ing into account changes in volume and revenues 

20 from mailers ineligible for the agreement; or 

21 ‘‘(B) enhances the performance of mail 

22 preparation, processing, transportation, or other 

23 functions; and 

24 ‘‘(3) does not cause— 


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1 ‘‘(A) unfair competitive advantage for the 

2 Postal Service or mailers eligible for the agree3 ment; or 

4 ‘‘(B) unreasonable disruption to the volume 

5 or revenues of other mailers ineligible for the 

6 agreement. 

7 ‘‘(j) CONSIDERATION OF PRIOR COMMISSION DECI8 SIONS.—In making any determination under this section, 

9 including the construction and interpretation of the terms 

10 used in this section, the Board shall give consideration to 

11 decisions of the Commission made prior to the date of enact12 ment of the Postal Reform Act of 2014, and shall include 

13 an explanation of any deviation from such decisions in the 

14 notice required under subsection (d)(1).’’. 

15 (2) TECHNICAL AND CONFORMING AMEND16 MENT.—The table of sections for chapter 36 of title 

17 39, United States Code, is amended by striking the 

18 item relating to section 3622 and inserting the fol19 lowing: 

‘‘3622. Modern rate system.’’. 

20 (b) REPEAL OF RATE PREFERENCES FOR QUALIFIED

21 POLITICAL COMMITTEES.—Section 3626 of title 39, United 

22 States Code, is amended— 

23 (1) by striking subsection (e); 

24 (2) by redesignating subsections (f), (g), and (h) 

25 as subsections (e), (f), and (g), respectively; 


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1 (3) by redesignating subsections (j) through (n) 

2 as subsections (h) through (l), respectively; and 

3 (4) in subsection (h), as redesignated by para4 graph (3)— 

5 (A) in paragraph (1)(D), by striking ‘‘sub6 section (m)(2)’’ and inserting ‘‘subsection 

7 (k)(2)’’; and 

8 (B) in paragraph (3)(B), by striking ‘‘sub9 section (m)’’ and inserting ‘‘subsection (k)’’. 

10 (c) STANDARD POST.— 

11 (1) DEFINITION.—In this subsection, the term 

12 ‘‘covered package’’ means a Standard Post package 

13 that— 

14 (A) originates and destinates within the 

15 same State; and 

16 (B) destinates in a community that is not 

17 served by regular overland transportation from 

18 the community in which the shipment originates. 

19 (2) TEMPORARY STANDARD POST PRICING.—Not20 withstanding section 3642 of title 39, United States 

21 Code, during the period beginning on the date of en22 actment of this Act and ending on the date on which 

23 the Commission issues an order resolving the pro24 ceeding described in paragraph (3)(B), the Postal 

25 Service shall deliver covered packages at the rates that 


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1 were applicable to Standard Post on January 27, 

2 2013. 

3 (3) COMMISSION STUDY AND PROCEEDING.— 

4 (A) STUDY.—The Commission shall conduct 

5 a study to determine— 

6 (i) the extent to which the Postal Serv7 ice exercises monopoly power and the extent 

8 to which delivery services are reasonably 

9 available from a private carrier with re10 spect to the delivery of covered packages; 

11 and 

12 (ii) the extent to which there are com13 munities for which the Postal Service exer14 cises monopoly power for the delivery of 

15 items shipped by Standard Post or for 

16 which delivery services are not reasonably 

17 available for such items. 

18 (B) PROCEEDING.—The Commission shall 

19 initiate a proceeding under section 3642 of title 

20 39, United States Code, to determine whether 

21 covered packages and any other packages identi22 fied under subparagraph (A)(ii), if considered as 

23 a single product, would constitute a market dom24 inant product or a competitive product. 


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1 (C) RATES.—If the Commission determines 

2 in the proceeding under subparagraph (B) that 

3 covered packages constitute a market dominant 

4 product, the rates for covered packages shall be 

5 as provided in paragraph (2) until adjusted in 

6 accordance with the procedures under section 

7 3622 of title 39, United States Code, applicable 

8 to market dominant products. 

9 (D) INFORMATION.—The Postal Service 

10 shall provide the Commission with such informa11 tion as may, in the judgment of the Commission, 

12 be necessary in order for the Commission to con13 duct its study and proceeding under this para14 graph. 

15 SEC. 302. NONPOSTAL SERVICES. 

16 (a) AUTHORIZATION OF NEW NONPOSTAL SERV17 ICES.— 

18 (1) IN GENERAL.—Section 404 of title 39, 

19 United States Code, as amended by this Act, is 

20 amended— 

21 (A) in subsection (a)— 

22 (i) by redesignating paragraphs (6) 

23 through (8) as paragraphs (7) through (9), 

24 respectively; and 


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1 (ii) by inserting after paragraph (5) 

2 the following: 

3 ‘‘(6) on and after the date of enactment of the 

4 Postal Reform Act of 2014, except as provided in sub5 section (e) and subject to subsection (h)— 

6 ‘‘(A) to provide other services that are not 

7 postal services, if the provision of such services— 

8 ‘‘(i) uses the processing, transpor9 tation, delivery, retail network, or tech10 nology of the Postal Service; 

11 ‘‘(ii) is consistent with the public in12 terest and demonstrated likely public de13 mand for— 

14 ‘‘(I) the Postal Service, rather 

15 than another entity, to provide the 

16 services; or 

17 ‘‘(II) the Postal Service, in addi18 tion to or in partnership with another 

19 entity, to provide the services; 

20 ‘‘(iii) would not create unfair competi21 tion with the private sector, taking into 

22 consideration the extent to which the Postal 

23 Service will not, either by legal obligation 

24 or voluntarily, comply with any State or 


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1 local laws or requirements generally appli2 cable to the provision of such services; 

3 ‘‘(iv) does not unreasonably interfere 

4 with or detract from the value of postal 

5 services, including— 

6 ‘‘(I) the cost and efficiency of 

7 postal services; and 

8 ‘‘(II) access to postal retail serv9 ice; 

10 ‘‘(v) will be undertaken in accordance 

11 with all Federal laws and regulations ap12 plicable to the provision of such services; 

13 and 

14 ‘‘(vi) is reasonably expected to improve 

15 the net financial position of the Postal 

16 Service, based on a market analysis con17 ducted by or on behalf of the Postal Service; 

18 and 

19 ‘‘(B) to classify a service provided under 

20 subparagraph (A) as an experimental product 

21 subject to section 3641;’’; 

22 (B) in subsection (e)(1), by inserting ‘‘and 

23 that was offered by the Postal Service on the date 

24 of enactment of the Postal Reform Act of 2014’’ 

25 after ‘‘102(5)’’; and 


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1 (C) by adding at the end the following: 

2 ‘‘(g) TREATMENT OF NEW NONPOSTAL SERVICES.— 

3 For purposes of chapters 20 and 36 of this title, nonpostal 

4 services provided under subsection (a)(6) shall be treated 

5 as competitive products. 

6 ‘‘(h) FEDERAL REGULATION OF NEW NONPOSTAL

7 SERVICES.—The Postal Service shall ensure that any non8 postal service provided under subsection (a)(6) that is other9 wise subject to the jurisdiction and regulation of a Federal 

10 regulatory agency remains subject to the jurisdiction and 

11 regulation of the Federal regulatory agency notwith12 standing the fact that the nonpostal service is provided by 

13 the Postal Service.’’. 

14 (2) COMPLAINTS.—Section 3662(a) of title 39, 

15 United States Code, is amended by inserting 

16 ‘‘404(a)(6),’’ after ‘‘403(c),’’. 

17 (3) MARKET ANALYSIS.—During the 5-year pe18 riod beginning on the date of enactment of this Act, 

19 not later than 7 days after the date on which any 

20 market analysis conducted under section 

21 404(a)(6)(A)(vi) of title 39, United States Code, as 

22 amended by this section, is completed, the Postal 

23 Service shall submit a copy of the market analysis 

24 to— 

25 (A) the Commission; 


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1 (B) the Committee on Homeland Security 

2 and Governmental Affairs of the Senate; and 

3 (C) the Committee on Oversight and Gov4 ernment Reform of the House of Representatives. 

5 (b) GOVERNMENTAL SERVICES.—Section 411 of title 

6 39, United States Code, is amended— 

7 (1) in the second sentence, by striking ‘‘this sec8 tion’’ and inserting ‘‘this subsection’’; 

9 (2) by striking ‘‘Executive agencies’’ and insert10 ing ‘‘(a) FEDERAL GOVERNMENT.—Executive agen11 cies’’; and 

12 (3) by adding at the end the following: 

13 ‘‘(b) STATE, LOCAL, AND TRIBAL GOVERNMENTS.— 

14 ‘‘(1) AUTHORITY OF POSTAL SERVICE.—The 

15 Postal Service is authorized to furnish property and 

16 services to States, local governments, and tribal gov17 ernments, under such terms and conditions, including 

18 the possibility for reimbursement, as the Postal Serv19 ice and the applicable State, local government, or 

20 tribal government shall determine appropriate. 

21 ‘‘(2) DEFINITIONS.—For purposes of this sub22 section— 

23 ‘‘(A) the term ‘local government’ means— 

24 ‘‘(i) a county, municipality, city, 

25 town, township, local public authority, 


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1 school district, special district, intrastate 

2 district, council of governments, or regional 

3 or interstate government entity; 

4 ‘‘(ii) an agency or instrumentality of 

5 an entity described in clause (i); or 

6 ‘‘(iii) a rural community, an unincor7 porated town or village, or an instrumen8 tality of a rural community or an unincor9 porated town or village; 

10 ‘‘(B) the term ‘State’ includes the District of 

11 Columbia, the Commonwealth of Puerto Rico, the 

12 United States Virgin Islands, Guam, American 

13 Samoa, the Commonwealth of the Northern Mar14 iana Islands, and any other territory or posses15 sion of the United States; and 

16 ‘‘(C) the term ‘tribal government’ means the 

17 government of an Indian tribe, as that term is 

18 defined in section 4(e) of the Indian Self-Deter19 mination Act (25 U.S.C. 450b(e)). 

20 ‘‘(c) REPORT.—The Postal Service shall submit to the 

21 Postal Regulatory Commission, together with the report re22 quired under section 3652, a report that details the costs 

23 and revenues of the property and services furnished by the 

24 Postal Service under this section during the period covered 

25 by the report required under section 3652. 


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1 ‘‘(d) REIMBURSEMENT DETERMINATION.—In deter2 mining the possibility for reimbursement under subsections 

3 (a) and (b), the Postal Service shall ensure that each prop4 erty or service furnished under such subsections covers its 

5 costs attributable, as that term is defined in section 

6 3631(b).’’. 

7 (c) CONFORMING AMENDMENTS.— 

8 (1) SECTION 404(e) OF TITLE 39.—Section 404(e) 

9 of title 39, United States Code, is amended— 

10 (A) by striking ‘‘(e)(1) In this’’ and insert11 ing the following: 

12 ‘‘(e) PREVIOUSLY OFFERED NONPOSTAL SERVICES.— 

13 ‘‘(1) DEFINITION.—In this’’; 

14 (B) in paragraph (2), by striking ‘‘(2) 

15 Nothing’’ and inserting the following: 

16 ‘‘(2) ELIGIBLE NONPOSTAL SERVICES.—Noth17 ing’’; 

18 (C) in paragraph (3)— 

19 (i) by striking ‘‘(3) Not’’ and inserting 

20 the following: 

21 ‘‘(3) REVIEW OF NONPOSTAL SERVICES.—Not’’; 

22 and 

23 (ii) by moving subparagraphs (A) and 

24 (B) 2 ems to the right; 


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1 (D) in paragraph (4), by striking ‘‘(4) 

2 Any’’ and inserting the following: 

3 ‘‘(4) TERMINATION.—Any’’; and 

4 (E) by striking paragraph (5) and inserting 

5 the following: 

6 ‘‘(5) DESIGNATION.—Each nonpostal service au7 thorized under this subsection shall be designated as 

8 market-dominant or competitive based on the designa9 tion of the nonpostal service in the Mail Classifica10 tion Schedule as in effect on the date of enactment of 

11 the Postal Reform Act of 2014. 

12 ‘‘(6) RULE OF CONSTRUCTION.—Nothing in this 

13 subsection shall be construed to prevent the Postal 

14 Service from providing nonpostal services under sub15 section (a)(6).’’. 

16 (2) SECTION 3641 OF TITLE 39.—Section 3641 of 

17 title 39, United States Code, is amended— 

18 (A) in subsection (b)(1), by inserting ‘‘(or 

19 the appropriate consumers in the case of non20 postal services)’’ after ‘‘users’’; 

21 (B) in the first sentence of subsection (b)(3), 

22 by striking ‘‘section 3642(b)(1)’’ and inserting 

23 ‘‘sections 404(g) and 3642(b)(1)’’; 


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1 (C) in the second sentence of subsection 

2 (b)(3), by striking ‘‘section 3633(3)’’ and insert3 ing ‘‘section 3633(a)(3)’’; 

4 (D) in subsection (e)(1), by striking 

5 ‘‘$10,000,000’’ and inserting ‘‘$50,000,000’’; and 

6 (E) in subsection (e)(2), by striking 

7 ‘‘$50,000,000’’ and inserting ‘‘$100,000,000’’. 

8 (3) TECHNICAL AND CONFORMING AMEND9 MENTS.—Section 2003(b)(1) of title 39, United States 

10 Code, is amended by striking ‘‘postal and nonpostal 

11 services’’ and inserting ‘‘postal services, nonpostal 

12 services authorized under section 404(e), and property 

13 and services authorized under section 411,’’. 

14 SEC. 303. SHIPPING OF WINE, BEER, AND DISTILLED SPIR15 ITS. 

16 (a) MAILABILITY.— 

17 (1) NONMAILABLE ARTICLES.—Section 1716(f) of 

18 title 18, United States Code, is amended by striking 

19 ‘‘mails’’ and inserting ‘‘mails, except to the extent 

20 that the mailing is allowable under section 3001(p) of 

21 title 39’’. 

22 (2) APPLICATION OF LAWS.—Section 1161 of 

23 title 18, United States Code, is amended by inserting 

24 ‘‘, and, with respect to the mailing of distilled spirits, 

25 wine, or malt beverages (as those terms are defined in 


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1 section 117 of the Federal Alcohol Administration Act 

2 (27 U.S.C. 211)), is in conformity with section 

3 3001(p) of title 39’’ after ‘‘Register’’. 

4 (b) REGULATIONS.—Section 3001 of title 39, United 

5 States Code, is amended by adding at the end the following: 

6 ‘‘(p)(1) In this subsection, the terms ‘distilled spirits’, 

7 ‘wine’, and ‘malt beverage’ have the same meanings as in 

8 section 117 of the Federal Alcohol Administration Act (27 

9 U.S.C. 211). 

10 ‘‘(2) Distilled spirits, wine, or malt beverages shall be 

11 considered mailable if mailed— 

12 ‘‘(A) in accordance with the laws and regula13 tions of— 

14 ‘‘(i) the State, territory, or district of the 

15 United States where the sender or duly author16 ized agent initiates the mailing; and 

17 ‘‘(ii) the State, territory, or district of the 

18 United States where the addressee or duly au19 thorized agent takes delivery; and 

20 ‘‘(B) to an addressee who is at least 21 years of 

21 age— 

22 ‘‘(i) who provides a signature and presents 

23 a valid, government-issued photo identification 

24 upon delivery; or 

25 ‘‘(ii) the duly authorized agent of whom— 


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1 ‘‘(I) is at least 21 years of age; and 

2 ‘‘(II) provides a signature and presents 

3 a valid, government-issued photo identifica4 tion upon delivery. 

5 ‘‘(3) The Postal Service shall prescribe such regulations 

6 as may be necessary to carry out this subsection.’’. 

7 (c) EFFECTIVE DATE.—The amendments made by this 

8 section shall take effect on the earlier of— 

9 (1) the date on which the Postal Service issues 

10 regulations under section 3001(p) of title 39, United 

11 States Code, as amended by this section; and 

12 (2) the date that is 120 days after the date of en13 actment of this Act. 

14 (d) NO PREEMPTION OF STATE, LOCAL, OR TRIBAL

15 LAWS PROHIBITING DELIVERIES, SHIPMENTS, OR

16 SALES.—Nothing in this section, the amendments made by 

17 this section, or any regulation promulgated under this sec18 tion or the amendments made by this section, shall be con19 strued to preempt, supersede, or otherwise limit or restrict 

20 any State, local, or tribal law that prohibits or regulates 

21 the delivery, shipment, or sale of distilled spirits, wine, or 

22 malt beverages (as those terms are defined in section 117 

23 of the Federal Alcohol Administration Act (27 U.S.C. 211)). 


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1 TITLE IV—POSTAL SERVICE 

2 GOVERNANCE 

3 SEC. 401. BOARD OF GOVERNORS OF THE POSTAL SERVICE. 

4 (a) BOARD OF GOVERNORS.—Title 39, United States 

5 Code, is amended by striking section 202 and inserting the 

6 following: 

7 ‘‘§ 202. Board of Governors 

8 ‘‘(a) IN GENERAL.—The exercise of the power of the 

9 Postal Service shall be directed by a Board of Governors 

10 composed of 9 members appointed in accordance with this 

11 section, each of whom shall be a voting member of the 

12 Board. 

13 ‘‘(b) MEMBERSHIP.— 

14 ‘‘(1) COMPOSITION.—The Board shall be com15 posed of— 

16 ‘‘(A) the Postmaster General; and 

17 ‘‘(B) 8 members, to be known as Governors, 

18 who shall be appointed by the President, by and 

19 with the advice and consent of the Senate. 

20 ‘‘(2) AFFILIATION.—Not more than 4 of the Gov21 ernors may be members of any 1 political party. 

22 ‘‘(3) CHAIRPERSON.—The Governors shall elect a 

23 Chairperson from among the members of the Board. 

24 ‘‘(c) QUALIFICATIONS.— 


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1 ‘‘(1) IN GENERAL.—The Governors shall rep2 resent the public interest generally, and shall be cho3 sen solely on the basis of experience in public service, 

4 law, or accounting, or on a demonstrated ability to 

5 manage organizations or corporations (in either the 

6 public or private sector) of substantial size. 

7 ‘‘(2) NO SPECIFIC INTEREST.—A Governor may 

8 not be a representative of a specific interest using the 

9 Postal Service. 

10 ‘‘(3) INITIAL APPOINTMENTS.—At least 1 of the 

11 Governors who is appointed to fill a position that is 

12 vacant on the date of enactment of the Postal Reform 

13 Act of 2014 shall, in addition to the qualifications set 

14 forth in paragraph (1), be appointed based on the 

15 demonstrated ability of that individual to manage 

16 and improve financially troubled organizations. 

17 ‘‘(d) REMOVAL.—A Governor may be removed only for 

18 cause. 

19 ‘‘(e) COMPENSATION.— 

20 ‘‘(1) SALARY.—Each Governor shall receive a 

21 salary of $30,000 each year, plus $300 for each day, 

22 for not more than 42 days, on which the Governor at23 tends a meeting of the Board. Nothing in this para24 graph shall be construed to limit the number of days 

25 of meetings each year to 42 days. 


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1 ‘‘(2) REIMBURSEMENT FOR MEETINGS.—Each 

2 Governor shall be reimbursed for travel and reason3 able expenses incurred in attending meetings of the 

4 Board. 

5 ‘‘(f) TERMS.— 

6 ‘‘(1) IN GENERAL.—Each Governor shall serve 

7 for a term of 7 years. 

8 ‘‘(2) VACANCIES.—A Governor appointed to fill a 

9 vacancy occurring before the expiration of the term to 

10 which the predecessor of that Governor was appointed 

11 shall serve for the remainder of that term. 

12 ‘‘(3) CONTINUATION OF SERVICE.—A Governor 

13 may continue to serve after the expiration of the term 

14 of that Governor until a successor has been appointed, 

15 except that a Governor may not continue to serve for 

16 more than 1 year after the date on which the term of 

17 that Governor would have otherwise expired. 

18 ‘‘(4) LIMIT.—A Governor may serve for not more 

19 than 2 terms. 

20 ‘‘(g) POSTMASTER GENERAL.— 

21 ‘‘(1) APPOINTMENT AND REMOVAL.—The Gov22 ernors shall appoint and shall have the power to re23 move the Postmaster General. 


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1 ‘‘(2) PAY AND TERM OF SERVICE.—The pay and 

2 term of service of the Postmaster General shall be de3 termined by the Governors. 

4 ‘‘(h) DEPUTY POSTMASTER GENERAL.— 

5 ‘‘(1) APPOINTMENT AND REMOVAL.—The Gov6 ernors and the Postmaster General shall appoint and 

7 shall have the power to remove the Deputy Postmaster 

8 General. 

9 ‘‘(2) PAY.—The pay of the Deputy Postmaster 

10 General shall be determined by the Governors. 

11 ‘‘(3) TERM OF SERVICE.—The term of service of 

12 the Deputy Postmaster General shall be determined by 

13 the Governors and the Postmaster General. 

14 ‘‘(i) EXECUTIVE COMMITTEE.— 

15 ‘‘(1) AUTHORITY TO ESTABLISH.—The Board, by 

16 a vote of a majority of its members, may establish an 

17 Executive Committee of the Board, consistent with 

18 paragraph (2). 

19 ‘‘(2) BOARD MEMBERSHIP AND RESPONSIBIL20 ITIES.—If established by the Board, the Executive 

21 Committee shall— 

22 ‘‘(A) be composed of the Chairperson of the 

23 Board and 2 additional Governors designated by 

24 the Board, except that not more than 2 members 


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1 of the Executive Committee may be members of 

2 any 1 political party; 

3 ‘‘(B) develop and oversee implementation of 

4 strategies and measures to ensure the long-term 

5 financial solvency of the Postal Service; 

6 ‘‘(C) develop and oversee the implementa7 tion of the financial plan and budget required 

8 under section 403 of the Postal Reform Act of 

9 2014 and updates to the financial plan and 

10 budget; 

11 ‘‘(D) make recommendations to the Board 

12 regarding aspects of postal operations; and 

13 ‘‘(E) assume such other responsibilities as 

14 the Board determines appropriate. 

15 ‘‘(3) QUORUM.—2 members of the Executive 

16 Committee shall constitute a quorum for the trans17 action of business by the Executive Committee. 

18 ‘‘(4) TERMINATION.—The Executive Committee 

19 may be terminated by a vote of the majority of the 

20 members of the Board.’’. 

21 (b) PROCEDURES OF THE BOARD.—Section 205(c) of 

22 title 39, United States Code, is amended by striking ‘‘6 

23 members’’ and inserting ‘‘5 members’’. 

24 (c) INCUMBENTS; IMPLEMENTATION.— 


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1 (1) INCUMBENTS.—An individual serving as a 

2 Governor on the Board of Governors of the Postal 

3 Service (referred to in this subsection as a ‘‘Gov4 ernor’’) on the date of enactment of this Act may con5 tinue to serve as a Governor until the expiration of 

6 the term of that Governor. 

7 (2) IMPLEMENTATION OF MEMBERSHIP REDUC8 TION.— 

9 (A) IN GENERAL.—One of the 2 positions as 

10 a Governor for which the term is scheduled to ex11 pire on December 8, 2014, shall not be filled 

12 after the position becomes vacant. 

13 (B) PREFERENCE FOR ABOLISHING VACANT

14 POSITION.—If 1 of the 2 positions referred to in 

15 subparagraph (A) is vacant on the date of enact16 ment of this Act, that vacant position shall be 

17 the position that is not filled, as required under 

18 such subparagraph. 

19 (d) CONFORMING AMENDMENTS.—Title 39, United 

20 States Code, is amended— 

21 (1) in section 102(3)— 

22 (A) by striking ‘‘9’’ and inserting ‘‘8’’; and 

23 (B) by striking ‘‘202(a)’’ and inserting 

24 ‘‘202(b)(1)(C)’’; and 

25 (2) in section 203— 


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1 (A) by striking ‘‘202(c)’’ and inserting 

2 ‘‘202(g)’’; and 

3 (B) by striking ‘‘202(d)’’ and inserting 

4 ‘‘202(h)’’. 

5 SEC. 402. STRATEGIC ADVISORY COMMISSION ON POSTAL 

6 SERVICE SOLVENCY AND INNOVATION. 

7 (a) ESTABLISHMENT.— 

8 (1) IN GENERAL.—There is established in the ex9 ecutive branch a Strategic Advisory Commission on 

10 Postal Service Solvency and Innovation (referred to 

11 in this section as the ‘‘Advisory Commission’’). 

12 (2) INDEPENDENCE.—The Advisory Commission 

13 shall not be subject to the supervision of the Board of 

14 Governors of the Postal Service (referred to in this 

15 section as the ‘‘Board of Governors’’), any Executive 

16 Committee established under section 202(i) of title 39, 

17 United States Code, the Postmaster General, or any 

18 other officer or employee of the Postal Service. 

19 (b) PURPOSE.—The purpose of the Advisory Commis20 sion is to— 

21 (1) provide strategic guidance to the President, 

22 Congress, the Board of Governors, the Postmaster 

23 General, and the Chief Innovation Officer on enhanc24 ing the long-term solvency of the Postal Service; and 


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1 (2) foster innovative thinking to address the 

2 challenges facing the Postal Service without unfairly 

3 competing with the private sector. 

4 (c) MEMBERSHIP.— 

5 (1) COMPOSITION.—The Advisory Commission 

6 shall be composed of 7 members, of whom— 

7 (A) 3 members shall be appointed by the 

8 President, who shall designate 1 member ap9 pointed under this subparagraph to serve as 

10 Chairperson of the Advisory Commission; and 

11 (B) 1 member shall be appointed by each 

12 of— 

13 (i) the majority leader of the Senate; 

14 (ii) the minority leader of the Senate; 

15 (iii) the Speaker of the House of Rep16 resentatives; and 

17 (iv) the minority leader of the House of 

18 Representatives. 

19 (2) QUALIFICATIONS.—Members of the Advisory 

20 Commission shall have— 

21 (A) recognized and significant experience in 

22 such fields as business, technology, and public 

23 administration; 

24 (B) a documented record of innovative 

25 thinking; 


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1 (C) familiarity with new and emerging 

2 technologies; and 

3 (D) experience with revitalizing organiza4 tions, corporations, or communities that experi5 enced significant financial challenges or other 

6 challenges. 

7 (3) INCOMPATIBLE OFFICES.—An individual 

8 who is appointed to the Advisory Commission may 

9 not serve as an elected official or an officer or em10 ployee of the Federal Government while serving as a 

11 member of the Advisory Commission, except in the ca12 pacity of that individual as a member of the Advisory 

13 Commission. 

14 (4) DEADLINE FOR APPOINTMENT.—Each mem15 ber of the Advisory Commission shall be appointed 

16 not later than 60 days after the date of enactment of 

17 this Act. 

18 (5) MEETINGS; QUORUM; VACANCIES.— 

19 (A) MEETINGS.—The Advisory Commission 

20 shall meet at the call of the Chairperson or a 

21 majority of the members of the Advisory Com22 mission. 

23 (B) QUORUM.—4 members of the Advisory 

24 Commission shall constitute a quorum. 


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1 (C) VACANCIES.—Any vacancy in the Advi2 sory Commission shall not affect the powers of 

3 the Advisory Commission, but shall be filled as 

4 soon as practicable in the same manner in which 

5 the original appointment was made. 

6 (d) DUTIES AND POWERS.— 

7 (1) DUTIES.—The Advisory Commission shall— 

8 (A) study matters that the Advisory Com9 mission determines are necessary and appro10 priate to develop a strategic blueprint for the 

11 long-term solvency of the Postal Service, includ12 ing— 

13 (i) the financial, operational, and 

14 structural condition of the Postal Service; 

15 (ii) alternative strategies and business 

16 models that the Postal Service could adopt; 

17 (iii) opportunities for additional post18 al and nonpostal services that the Postal 

19 Service could offer; 

20 (iv) the comparative postal practices of 

21 other countries, including innovative prod22 ucts and services that postal services in 

23 other countries have offered, including serv24 ices that respond to the increasing use of 

25 electronic means of communication, and 


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1 different approaches to mail delivery that 

2 other countries have adopted; 

3 (v) the governance and organizational 

4 and management structures of the Postal 

5 Service; and 

6 (vi) efforts by the Postal Service to re7 cruit and retain a workforce, particularly 

8 in rural areas, capable of meeting the stra9 tegic needs of the Postal Service regarding 

10 innovation, nationwide service standards, 

11 and nationwide delivery schedules; and 

12 (B) submit the report required under sub13 section (h). 

14 (2) HEARINGS.—The Advisory Commission may 

15 hold such hearings, take such testimony, and receive 

16 such evidence as is necessary to carry out this section. 

17 (3) ACCESS TO INFORMATION.—The Advisory 

18 Commission may secure directly from the Postal 

19 Service, the Board of Governors, the Postal Regu20 latory Commission, and any other Federal depart21 ment or agency such information as the Advisory 

22 Commission considers necessary to carry out this sec23 tion. Upon request of the Chairperson of the Advisory 

24 Commission, the head of the department or agency 


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1 shall furnish the information described in the pre2 ceding sentence to the Advisory Commission. 

3 (e) APPLICABILITY OF LAWS.—The Federal Advisory 

4 Committee Act (5 U.S.C. App) and section 552a of title 

5 5, United States Code (commonly known as the ‘‘Privacy 

6 Act of 1974’’) shall apply to the Advisory Commission. 

7 (f) ASSISTANCE FROM FEDERAL AGENCIES.— 

8 (1) POSTAL SERVICE.—The Postmaster General 

9 shall provide to the Advisory Commission administra10 tive support and other services for the performance of 

11 the functions of the Advisory Commission. 

12 (2) OTHER DEPARTMENTS AND AGENCIES.—An 

13 agency of the Federal Government may provide to the 

14 Advisory Committee such services, funds, facilities, 

15 staff, and other support services that the agency deter16 mines to be advisable or is otherwise authorized under 

17 law. 

18 (g) PERSONNEL MATTERS.— 

19 (1) ADVISORY COMMISSION MEMBERS.— 

20 (A) COMPENSATION OF MEMBERS.—Each 

21 member of the Advisory Commission shall be 

22 compensated at a rate equal to the daily equiva23 lent of the annual rate of basic pay prescribed 

24 for level IV of the Executive Schedule under sec25 tion 5315 of title 5, United States Code, for each 


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1 day during which the member is engaged in the 

2 actual performance of the duties of the Advisory 

3 Commission. 

4 (B) TRAVEL EXPENSES.—Each member of 

5 the Advisory Commission shall be allowed travel 

6 expenses, including per diem in lieu of subsist7 ence, at the rate authorized for employees serving 

8 intermittently in the Government service under 

9 section 5703 of title 5, United States Code, while 

10 away from home or regular place of business in 

11 the performance of services for the Advisory 

12 Commission. 

13 (2) STAFF.— 

14 (A) APPOINTMENT AND COMPENSATION.— 

15 The Chairperson, in accordance with rules 

16 agreed upon by the Advisory Commission, shall 

17 appoint and fix the compensation of an executive 

18 director and such other personnel as may be nec19 essary to enable the Advisory Commission to 

20 carry out the functions of the Advisory Commis21 sion, without regard to the provisions of title 5, 

22 United States Code, governing appointments in 

23 the competitive service, and without regard to 

24 the provisions of chapter 51 and subchapter III 

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1 tion of positions and General Schedule pay rates, 

2 except that a rate of pay fixed under this sub3 paragraph may not exceed the annual rate of 

4 basic pay prescribed for level V of the Executive 

5 Schedule under section 5316 of title 5, United 

6 States Code. 

7 (B) DETAILEES.—Any Federal employee, 

8 including an employee of the Postal Service, may 

9 be detailed to the Advisory Commission without 

10 reimbursement, and such detail shall be without 

11 interruption or loss of the civil service rights, 

12 status, or privilege of the employee. 

13 (h) STRATEGIC BLUEPRINT FOR LONG-TERM SOL14 VENCY.— 

15 (1) IN GENERAL.—Not later than 9 months after 

16 the date of enactment of this Act, the Advisory Com17 mission shall submit a report that contains a stra18 tegic blueprint for the long-term solvency of the Postal 

19 Service to— 

20 (A) the President; 

21 (B) the Committee on Homeland Security 

22 and Governmental Affairs of the Senate; 

23 (C) the Committee on Oversight and Gov24 ernment Reform of the House of Representatives; 

25 (D) the Board of Governors; and 


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1 (E) the Postmaster General. 

2 (2) CONTENTS.—The strategic blueprint con3 tained in the report submitted under paragraph (1) 

4 shall include— 

5 (A) an assessment of the business model of 

6 the Postal Service as of the date on which the re7 port is submitted; 

8 (B) an assessment of potential future busi9 ness models for the Postal Service, including an 

10 evaluation of the appropriate balance between— 

11 (i) necessary reductions in costs and 

12 services; and 

13 (ii) additional opportunities for 

14 growth and revenue; 

15 (C) a strategy for addressing significant 

16 current and future liabilities; 

17 (D) identification of opportunities for fur18 ther reductions in costs; 

19 (E) identification of opportunities for new 

20 and innovative products and services; 

21 (F) a strategy for future growth; 

22 (G) a vision of how the Postal Service will 

23 operate in a sustainable manner 20 years after 

24 the date of enactment of this Act; 


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1 (H) a strategy for ensuring that the Postal 

2 Service has a sufficient workforce to meet all of 

3 its needs and comply with applicable legal re4 quirements; and 

5 (I) recommendations for any legislative 

6 changes necessary to implement the strategic 

7 blueprint described in this paragraph. 

8 (i) STUDY AND STRATEGIC PLAN ON INTERAGENCY

9 AGREEMENTS FOR POST OFFICES.— 

10 (1) DUTIES OF ADVISORY COMMISSION.— 

11 (A) STUDY.— 

12 (i) IN GENERAL.—The Advisory Com13 mission shall conduct a study concerning 

14 the advisability of the Postal Service enter15 ing into interagency agreements with Fed16 eral, State, and local agencies, with respect 

17 to post offices, that— 

18 (I) streamline and consolidate 

19 services provided by Federal, State, 

20 and local agencies; 

21 (II) decrease the costs incurred by 

22 Federal agencies in providing services 

23 to the general public; and 

24 (III) improve the efficiency and 

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1 ards of the Federal, State, and local 

2 agencies. 

3 (ii) CLARIFICATION OF INTERAGENCY

4 AGREEMENTS.—The study under clause (i) 

5 shall include consideration of the advis6 ability of the Postal Service entering into 

7 an interagency agreement with Federal 

8 agencies responsible for providing services to 

9 the general public. 

10 (B) FINDINGS.—The Advisory Commission 

11 shall— 

12 (i) not later than 9 months after the 

13 date of enactment of this Act, submit to the 

14 Postal Service the findings of the study con15 ducted under subparagraph (A); and 

16 (ii) incorporate the findings described 

17 in clause (i) into the strategic blueprint re18 quired under subsection (h). 

19 (2) POSTAL SERVICE STRATEGIC PLAN.— 

20 (A) IN GENERAL.—Not later than 6 months 

21 after the date on which the Advisory Commission 

22 submits to the Postal Service the findings under 

23 paragraph (1)(B), the Postal Service shall sub24 mit a nonbinding strategic plan for entering 


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1 into interagency agreements concerning post of2 fices to— 

3 (i) the Committee on Homeland Secu4 rity and Governmental Affairs of the Sen5 ate; and 

6 (ii) the Committee on Oversight and 

7 Government Reform of the House of Rep8 resentatives. 

9 (B) LIMITATIONS.—The strategic plan sub10 mitted under subparagraph (A) shall be con11 sistent with public interest and demand. 

12 (C) COST SAVINGS PROJECTIONS.—The 

13 strategic plan submitted under subparagraph (A) 

14 shall include, for each proposed interagency 

15 agreement, a projection of cost savings to be real16 ized by the Postal Service and by any other Fed17 eral agency that is a party to the agreement. 

18 (j) TERMINATION OF THE COMMISSION.—The Advisory 

19 Commission shall terminate on the earlier of— 

20 (1) the date that is 60 days after the later of— 

21 (A) the date on which the Advisory Com22 mission submits the report on the strategic blue23 print for long-term solvency under subsection 

24 (h); or 


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1 (B) the date on which the Advisory Com2 mission submits the findings on interagency 

3 agreements for post offices under subsection (i); 

4 or 

5 (2) the date that is 1 year after the date of enact6 ment. 

7 (k) AUTHORIZATION OF APPROPRIATIONS.—There are 

8 authorized to be appropriated out of the Postal Service 

9 Fund a total of not more than $3,000,000 for fiscal years 

10 2014 and 2015. 

11 SEC. 403. LONG-TERM SOLVENCY PLAN; ANNUAL FINANCIAL 

12 PLAN AND BUDGET. 

13 (a) DEFINITIONS.—In this section— 

14 (1) the term ‘‘Board of Governors’’ means the 

15 Board of Governors of the Postal Service; 

16 (2) the term ‘‘long-term solvency plan’’ means 

17 the plan required to be submitted by the Postmaster 

18 General under subsection (b)(1); and 

19 (3) the term ‘‘solvency’’ means the ability of the 

20 Postal Service to pay debts and meet expenses, includ21 ing the ability to perform maintenance and repairs, 

22 make investments, and maintain financial reserves, 

23 as necessary to fulfill the requirements under, and 

24 comply with the policies of, title 39, United States 

25 Code, and other obligations of the Postal Service. 


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1 (b) PLAN FOR THE LONG-TERM SOLVENCY OF THE

2 POSTAL SERVICE.— 

3 (1) SOLVENCY PLAN REQUIRED.— 

4 (A) IN GENERAL.—Not later than the date 

5 described in subparagraph (B), the Postmaster 

6 General shall submit to the Board of Governors 

7 a plan describing the actions the Postal Service 

8 intends to take to achieve long-term solvency. 

9 (B) DATE.—The date described in this sub10 paragraph is the later of— 

11 (i) the date that is 90 days after the 

12 date of enactment of this Act; and 

13 (ii) the earliest date as of which the 

14 Board of Governors has the number of mem15 bers required for a quorum. 

16 (2) CONSIDERATIONS.—The long-term solvency 

17 plan shall take into account— 

18 (A) the legal authority of the Postal Service; 

19 (B) changes in the legal authority and re20 sponsibilities of the Postal Service under this Act 

21 and the amendments made by this Act; 

22 (C) any cost savings that the Postal Service 

23 anticipates will be achieved through negotiations 

24 with employees of the Postal Service; 

25 (D) projected changes in mail volume; 


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1 (E) the impact of any regulations that the 

2 Postal Service is required to promulgate under 

3 Federal law; 

4 (F) projected changes in the number of em5 ployees needed to carry out the responsibilities of 

6 the Postal Service; and 

7 (G) the long-term capital needs of the Postal 

8 Service, including the need to maintain, repair, 

9 and replace facilities and equipment. 

10 (3) REVIEW AND SUBMISSION TO CONGRESS.— 

11 (A) REVIEW.—Upon receipt of the long12 term solvency plan, the Board of Governors shall 

13 review the long-term solvency plan and may re14 quest that the Postmaster General make changes 

15 to the long-term solvency plan. 

16 (B) SUBMISSION TO CONGRESS.—Not later 

17 than 60 days after initial receipt of the long18 term solvency plan, the Board of Governors shall 

19 provide a copy of the long-term solvency plan to 

20 the Committee on Homeland Security and Gov21 ernmental Affairs of the Senate and the Com22 mittee on Oversight and Government Reform of 

23 the House of Representatives, together with a let24 ter indicating whether and in what respects the 


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1 Board of Governors agrees or disagrees with the 

2 measures set out in the long-term solvency plan. 

3 (4) UPDATES.— 

4 (A) ANNUAL UPDATES REQUIRED.—The 

5 Postmaster General shall update and submit to 

6 the Board of Governors the long-term solvency 

7 plan not less frequently than annually for 5 

8 years after the date of enactment of this Act. 

9 (B) REVIEW BY BOARD OF GOVERNORS.— 

10 The Board of Governors shall review and submit 

11 to Congress the updates under this paragraph in 

12 accordance with paragraph (3). 

13 (c) ANNUAL FINANCIAL PLAN AND BUDGET.— 

14 (1) IN GENERAL.—For each of the first 5 full fis15 cal years after the date of enactment of this Act, not 

16 later than August 1 of the preceding fiscal year, the 

17 Postmaster General shall submit to the Board of Gov18 ernors a financial plan and budget for the fiscal year 

19 that is consistent with the goal of achieving the long20 term solvency of the Postal Service. 

21 (2) CONTENTS OF FINANCIAL PLAN AND BUDG22 ET.—The financial plan and budget for a fiscal year 

23 shall— 


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1 (A) promote the financial stability of the 

2 Postal Service and provide for progress towards 

3 the long-term solvency of the Postal Service; 

4 (B) include the annual budget program of 

5 the Postal Service under section 2009 of title 39, 

6 United States Code, and the plan of the Postal 

7 Service commonly referred to as the ‘‘Integrated 

8 Financial Plan’’; 

9 (C) describe lump-sum expenditures by all 

10 categories traditionally used by the Postal Serv11 ice; 

12 (D) describe capital expenditures, together 

13 with a schedule of projected capital commitments 

14 and cash outlays of the Postal Service, and pro15 posed sources of funding; 

16 (E) contain estimates of overall debt (both 

17 outstanding and expected to be incurred); 

18 (F) contain cash flow and liquidity fore19 casts for the Postal Service at such intervals as 

20 the Board of Governors may require; 

21 (G) include a statement describing methods 

22 of estimations and significant assumptions; and 

23 (H) address any other issues that the Board 

24 of Governors considers appropriate. 


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1 (3) PROCESS FOR SUBMISSION AND APPROVAL OF

2 FINANCIAL PLAN AND BUDGET.— 

3 (A) DEFINITION.—In this paragraph, the 

4 term ‘‘covered recipient’’ means— 

5 (i) the Postmaster General; 

6 (ii) the President; 

7 (iii) the Committee on Homeland Se8 curity and Governmental Affairs of the Sen9 ate; and 

10 (iv) the Committee on Oversight and 

11 Government Reform of the House of Rep12 resentatives. 

13 (B) REVIEW BY THE BOARD OF GOV14 ERNORS.— 

15 (i) IN GENERAL.—Upon receipt of a fi16 nancial plan and budget under paragraph 

17 (1), the Board of Governors shall promptly 

18 review the financial plan and budget. 

19 (ii) ADDITIONAL INFORMATION.—In 

20 conducting the review under this subpara21 graph, the Board of Governors may request 

22 any additional information it considers 

23 necessary and appropriate to carry out the 

24 duties of the Board of Governors. 


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1 (C) APPROVAL OF FINANCIAL PLAN AND

2 BUDGET SUBMITTED BY THE POSTMASTER GEN3 ERAL.—If the Board of Governors determines 

4 that the financial plan and budget for a fiscal 

5 year received under paragraph (1) meets the re6 quirements under paragraph (2) and otherwise 

7 adequately addresses the financial situation of 

8 the Postal Service— 

9 (i) the Board of Governors shall ap10 prove the financial plan and budget and 

11 submit a notice of approval to each covered 

12 recipient; and 

13 (ii) the Postmaster General shall sub14 mit the annual budget program for the rel15 evant fiscal year to the Office of Manage16 ment and Budget in accordance with sec17 tion 2009 of title 39, United States Code. 

18 (D) DISAPPROVAL OF FINANCIAL PLAN AND

19 BUDGET SUBMITTED BY THE POSTMASTER GEN20 ERAL.— 

21 (i) IN GENERAL.—If the Board of Gov22 ernors determines that the financial plan 

23 and budget for a fiscal year under para24 graph (1) does not meet the requirements 

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1 equate in addressing the financial situation 

2 of the Postal Service, the Board of Gov3 ernors shall— 

4 (I) disapprove the financial plan 

5 and budget; 

6 (II) submit to each covered recipi7 ent a statement that describes the rea8 sons for the disapproval; 

9 (III) direct the Postmaster Gen10 eral to appropriately revise the finan11 cial plan and budget for the Postal 

12 Service; and 

13 (IV) submit the revised financial 

14 plan and budget to each covered recipi15 ent. 

16 (ii) SUBMISSION TO OFFICE OF MAN17 AGEMENT AND BUDGET.—Upon receipt of a 

18 revised financial plan and budget under 

19 clause (i)(IV), the Postmaster General shall 

20 submit the annual budget program for the 

21 relevant fiscal year to the Office of Manage22 ment and Budget in accordance with sec23 tion 2009 of title 39, United States Code. 

24 (E) DEADLINE FOR TRANSMISSION OF FI25 NANCIAL PLAN AND BUDGET BY BOARD OF GOVVerDate Mar 15 2010 04:57 Aug 01, 2014 Jkt 039200 PO 00000 Frm 00338 Fmt 6652 Sfmt 6203 E:\BILLS\S1486.RS S1486

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1 ERNORS.—Notwithstanding any other provision 

2 of this paragraph, not later than September 30 

3 of the fiscal year that precedes each fiscal year 

4 for which a financial plan and budget is re5 quired under paragraph (1), the Board of Gov6 ernors shall submit to each covered recipient— 

7 (i) a notice of approval under subpara8 graph (C)(i); or 

9 (ii) an approved financial plan and 

10 budget for the fiscal year under subpara11 graph (D)(i)(IV). 

12 (F) REVISIONS TO FINANCIAL PLAN AND

13 BUDGET.— 

14 (i) PERMITTING POSTMASTER GENERAL

15 TO SUBMIT REVISIONS.—The Postmaster 

16 General may submit proposed revisions to 

17 the financial plan and budget for a fiscal 

18 year to the Board of Governors at any time 

19 during that fiscal year. 

20 (ii) PROCESS FOR REVIEW, APPROVAL, 

21 DISAPPROVAL, AND POSTMASTER GENERAL

22 ACTION.—The procedures described in sub23 paragraphs (B) through (E) shall apply 

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1 ner as such procedures apply with respect to 

2 the original financial plan and budget. 

3 (d) ASSUMPTIONS BASED ON CURRENT LAW.—In pre4 paring the long-term solvency plan or an annual financial 

5 plan and budget required under this section, the Postal 

6 Service shall base estimates of revenues and expenditures 

7 on Federal law as in effect at the time of the preparation 

8 of the long-term solvency plan or the financial plan and 

9 budget. 

10 SEC. 404. CHIEF INNOVATION OFFICER; INNOVATION 

11 STRATEGY. 

12 (a) CHIEF INNOVATION OFFICER.— 

13 (1) IN GENERAL.—Chapter 2 of title 39, United 

14 States Code, is amended by adding at the end the fol15 lowing: 

16 ‘‘§ 209. Chief innovation officer 

17 ‘‘(a) ESTABLISHMENT.—There shall be in the Postal 

18 Service a Chief Innovation Officer appointed by the Post19 master General. 

20 ‘‘(b) QUALIFICATIONS.—The Chief Innovation Officer 

21 shall have proven expertise and a record of accomplishment 

22 in areas such as— 

23 ‘‘(1) the postal and shipping industry; 

24 ‘‘(2) innovative product research and develop25 ment; 


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1 ‘‘(3) brand marketing strategy; 

2 ‘‘(4) new and emerging technology, including 

3 communications technology; or 

4 ‘‘(5) business process management. 

5 ‘‘(c) DUTIES.—The Chief Innovation Officer shall lead 

6 the development and implementation of— 

7 ‘‘(1) innovative postal products and services, 

8 particularly products and services that use new and 

9 emerging technology, including communications tech10 nology, to improve the net financial position of the 

11 Postal Service; and 

12 ‘‘(2) nonpostal services authorized under section 

13 404(a)(6) that have the potential to improve the net 

14 financial position of the Postal Service. 

15 ‘‘(d) DEADLINE.—The Postmaster General shall ap16 point a Chief Innovation Officer not later than 90 days 

17 after the date of enactment of the Postal Reform Act of 

18 2014.’’. 

19 (2) TECHNICAL AND CONFORMING AMEND20 MENT.—The table of sections for chapter 2 of title 39, 

21 United States Code, is amended by adding at the end 

22 the following: 

‘‘209. Chief Innovation Officer.’’. 

23 (b) INNOVATION STRATEGY.— 

24 (1) INITIAL REPORT ON INNOVATION STRAT25 EGY.— 


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1 (A) IN GENERAL.—Not later than 9 months 

2 after the date of enactment of this Act, the Post3 master General, acting through the Chief Innova4 tion Officer, shall submit a report that contains 

5 a comprehensive strategy (referred to in this sub6 section as the ‘‘innovation strategy’’) for improv7 ing the net financial position of the Postal Serv8 ice through innovation, including the offering of 

9 new postal and nonpostal services, to— 

10 (i) the Committee on Homeland Secu11 rity and Governmental Affairs of the Sen12 ate; and 

13 (ii) the Committee on Oversight and 

14 Government Reform of the House of Rep15 resentatives. 

16 (B) MATTERS TO BE ADDRESSED.—At a 

17 minimum, the report on innovation strategy re18 quired under subparagraph (A) shall describe— 

19 (i) the specific innovative postal and 

20 nonpostal services to be developed and of21 fered by the Postal Service, including— 

22 (I) the nature of the market de23 mand to be satisfied by each product 

24 or service; and 


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1 (II) the estimated date by which 

2 each product or service will be intro3 duced; 

4 (ii) the cost of developing and offering 

5 each product or service; 

6 (iii) the anticipated sales volume for 

7 each product or service; 

8 (iv) the anticipated revenues and prof9 its to be generated by each product or serv10 ice; 

11 (v) the likelihood of success of each 

12 product or service and the risks associated 

13 with the development and sale of each prod14 uct or service; 

15 (vi) the trends anticipated in market 

16 conditions that may affect the success of 

17 each product or service during the 5-year 

18 period beginning on the date of the submis19 sion of the report under subparagraph (A); 

20 (vii) any innovations designed to im21 prove the net financial position of the Post22 al Service, other than the offering of new 

23 products and services; and 


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1 (viii) the metrics that will be used to 

2 assess the effectiveness of the innovation 

3 strategy. 

4 (2) ANNUAL REPORT.— 

5 (A) IN GENERAL.—Not later than 1 year 

6 after the date of the submission of the initial re7 port containing the innovation strategy under 

8 paragraph (1), and annually thereafter for 10 

9 years, the Postmaster General, acting through the 

10 Chief Innovation Officer, shall submit a report 

11 on the implementation of the innovation strategy 

12 to— 

13 (i) the Committee on Homeland Secu14 rity and Governmental Affairs of the Sen15 ate; and 

16 (ii) the Committee on Oversight and 

17 Government Reform of the House of Rep18 resentatives. 

19 (B) MATTERS TO BE ADDRESSED.—At a 

20 minimum, an annual report submitted under 

21 subparagraph (A) shall include— 

22 (i) an update of the initial report on 

23 innovation strategy submitted under para24 graph (1); 


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1 (ii) a description of the progress made 

2 by the Postal Service in implementing the 

3 products, services, and other innovations de4 scribed in the initial report on innovation 

5 strategy; and 

6 (iii) an analysis of the performance of 

7 each product, service, or other innovation 

8 described in the initial report on innovation 

9 strategy, including— 

10 (I) the revenue generated by each 

11 product or service developed in accord12 ance with the innovation strategy 

13 under this section and the cost of devel14 oping and offering each product or 

15 service for the preceding year; 

16 (II) trends in each market in 

17 which a product or service is intended 

18 to satisfy a demand; 

19 (III) each product or service iden20 tified in the innovation strategy that is 

21 to be discontinued, the date on which 

22 each discontinuance will occur, and the 

23 reasons for each discontinuance; 

24 (IV) each alteration that the Post25 al Service plans to make to a product 


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1 or service identified in the innovation 

2 strategy to address changing market 

3 conditions and an explanation of how 

4 each alteration will ensure the success 

5 of the product or service; 

6 (V) the performance of innova7 tions other than new products and 

8 services that are designed to improve 

9 the net financial position of the Postal 

10 Service; and 

11 (VI) the performance of the inno12 vation strategy according to the 

13 metrics described in paragraph 

14 (1)(B)(viii). 

15 SEC. 405. AREA AND DISTRICT OFFICE STRUCTURE. 

16 (a) DEFINITIONS.—In this section— 

17 (1) the term ‘‘area office’’ means the central of18 fice of an administrative field unit with responsi19 bility for postal operations in a designated geographic 

20 area that is comprised of district offices; 

21 (2) the term ‘‘district office’’ means the central 

22 office of an administrative field unit with responsi23 bility for postal operations in a designated geographic 

24 area (as defined under regulations, directives, or other 


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1 guidance of the Postal Service, as in effect on Janu2 ary 1, 2013); and 

3 (3) the term ‘‘State’’ includes the District of Co4 lumbia, the Commonwealth of Puerto Rico, the 

5 United States Virgin Islands, Guam, American 

6 Samoa, the Commonwealth of the Northern Mariana 

7 Islands, and any other territory or possession of the 

8 United States. 

9 (b) PLAN REQUIRED.—Not later than 1 year after the 

10 date of enactment of this Act, the Postal Service shall sub11 mit to the Committee on Homeland Security and Govern12 mental Affairs of the Senate and the Committee on Over13 sight and Government Reform of the House of Representa14 tives a comprehensive strategic plan for an area office and 

15 district office structure that will— 

16 (1) be efficient and cost effective; 

17 (2) not substantially and adversely affect the op18 erations of the Postal Service; and 

19 (3) reduce the total number of area and district 

20 offices. 

21 (c) IMPLEMENTATION.—Not later than 60 days after 

22 the date on which the Postal Service submits the plan under 

23 subsection (b), the Postal Service shall begin implementing 

24 the plan, including, where appropriate, by consolidating 

25 area and district offices. 


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1 (d) STATE LIAISON.—If the Postal Service does not 

2 maintain a district office in a State, the Postal Service 

3 shall designate at least 1 employee of the district office re4 sponsible for Postal Service operations in the State to rep5 resent the needs of Postal Service customers in the State. 

6 An employee designated under this subsection to represent 

7 the needs of Postal Service customers in a State shall be 

8 located in that State. 

9 SEC. 406. INSPECTOR GENERAL OF THE POSTAL SERVICE. 

10 (a) APPOINTMENT OF INSPECTOR GENERAL OF THE

11 POSTAL SERVICE BY PRESIDENT.—The Inspector General 

12 Act of 1978 (5 U.S.C. App.) is amended— 

13 (1) in section 8G— 

14 (A) in subsection (a)— 

15 (i) in paragraph (2), by striking ‘‘the 

16 Postal Regulatory Commission, and the 

17 United States Postal Service’’ and inserting 

18 ‘‘and the Postal Regulatory Commission’’; 

19 (ii) in paragraph (3), by striking 

20 ‘‘subsection (h)(1)’’ and inserting ‘‘sub21 section (g)(1)’’; and 

22 (iii) in paragraph (4)— 

23 (I) in the matter preceding sub24 paragraph (A), by striking ‘‘subsection 


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1 (h)(1)’’ and inserting ‘‘subsection 

2 (g)(1)’’; 

3 (II) by striking subparagraph 

4 (B); and 

5 (III) by redesignating subpara6 graphs (C) through (H) as subpara7 graphs (B) through (G), respectively; 

8 (B) in subsection (c), by striking ‘‘Except as 

9 provided under subsection (f) of this section, the’’ 

10 and inserting ‘‘The’’; 

11 (C) by striking subsection (f); and 

12 (D) by redesignating subsections (g) and (h) 

13 as subsections (f) and (g), respectively; 

14 (2) by inserting after section 8M the following: 

15 ‘‘SEC. 8N. SPECIAL PROVISIONS CONCERNING THE INSPEC16 TOR GENERAL OF THE UNITED STATES POST17 AL SERVICE. 

18 ‘‘(a) In this section— 

19 ‘‘(1) the term ‘Governors’ has the meaning given 

20 that term in section 102(3) of title 39, United States 

21 Code; and 

22 ‘‘(2) the term ‘Inspector General’ means the In23 spector General of the United States Postal Service. 

24 ‘‘(b) In carrying out the duties and responsibilities 

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1 sight responsibility for all activities of the Postal Inspection 

2 Service, including any internal investigation performed by 

3 the Postal Inspection Service. The Chief Postal Inspector 

4 shall promptly report the significant activities being car5 ried out by the Postal Inspection Service to the Inspector 

6 General. 

7 ‘‘(c)(1)(A) The Inspector General shall be under the 

8 authority, direction, and control of the Governors with re9 spect to audits or investigations, or the issuance of sub10 poenas, which require access to sensitive information con11 cerning— 

12 ‘‘(i) ongoing civil or criminal investigations or 

13 proceedings; 

14 ‘‘(ii) undercover operations; 

15 ‘‘(iii) the identity of confidential sources, includ16 ing protected witnesses; 

17 ‘‘(iv) intelligence or counterintelligence matters; 

18 or 

19 ‘‘(v) other matters the disclosure of which would 

20 constitute a serious threat to national security. 

21 ‘‘(B) With respect to the information described under 

22 subparagraph (A), the Governors may prohibit the Inspec23 tor General from carrying out or completing any audit or 

24 investigation, or from issuing any subpoena, after the In25 spector General has decided to initiate, carry out, or comVerDate Mar 15 2010 04:57 Aug 01, 2014 Jkt 039200 PO 00000 Frm 00350 Fmt 6652 Sfmt 6203 E:\BILLS\S1486.RS S1486

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1 plete such audit or investigation or to issue such subpoena, 

2 if the Governors determine that such prohibition is nec3 essary to prevent the disclosure of any information de4 scribed under subparagraph (A) or to prevent the signifi5 cant impairment to the national interests of the United 

6 States. 

7 ‘‘(C) If the Governors exercise any power under sub8 paragraph (A) or (B), the Governors shall notify the Inspec9 tor General in writing of the reasons for the exercise of such 

10 power. Not later than 30 days after receipt of any such no11 tice, the Inspector General shall transmit a copy of the no12 tice to the Committee on Homeland Security and Govern13 mental Affairs of the Senate and the Committee on Over14 sight and Government Reform of the House of Representa15 tives, and to other appropriate committees or subcommittees 

16 of the Congress. 

17 ‘‘(2) In carrying out the duties and responsibilities 

18 specified in this Act, the Inspector General— 

19 ‘‘(A) may initiate, conduct, and supervise such 

20 audits and investigations of the United States Postal 

21 Service as the Inspector General considers appro22 priate; and 

23 ‘‘(B) shall give particular regard to the activities 

24 of the Postal Inspection Service with a view toward 


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1 avoiding duplication and ensuring effective coordina2 tion and cooperation. 

3 ‘‘(3) Any report required to be transmitted by the Gov4 ernors to the appropriate committees or subcommittees of 

5 the Congress under section 5(d) shall also be transmitted, 

6 within the 7-day period specified under that section, to the 

7 Committee on Homeland Security and Governmental Af8 fairs of the Senate and the Committee on Oversight and 

9 Government Reform of the House of Representatives. 

10 ‘‘(d) Nothing in this Act shall restrict, eliminate, or 

11 otherwise adversely affect any of the rights, privileges, or 

12 benefits of either employees of the United States Postal 

13 Service, or labor organizations representing employees of 

14 the United States Postal Service, under chapter 12 of title 

15 39, United States Code, the National Labor Relations Act 

16 (29 U.S.C. 151 et seq.), any handbook or manual affecting 

17 employee labor relations with the United States Postal 

18 Service, or any collective bargaining agreement. 

19 ‘‘(e) There are authorized to be appropriated, out of 

20 the Postal Service Fund, such sums as may be necessary 

21 for the Office of Inspector General of the United States Post22 al Service.’’; and 

23 (3) in section 12— 

24 (A) in paragraph (1), by striking ‘‘or the 

25 Director of the National Reconnaissance Office’’ 


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1 and inserting ‘‘the Director of the National Re2 connaissance Office; or the Board of Governors of 

3 the United States Postal Service’’; and 

4 (B) in paragraph (2), by striking ‘‘or the 

5 National Reconnaissance Office’’ and inserting 

6 ‘‘the National Reconnaissance Office, or the 

7 United States Postal Service’’. 

8 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

9 Title 39, United States Code, is amended— 

10 (1) in section 102(4), by striking ‘‘section 202(e) 

11 of this title’’ and inserting ‘‘section 3 of the Inspector 

12 General Act of 1978 (5 U.S.C. App.)’’; 

13 (2) in section 1001(b), in the first sentence, by 

14 inserting ‘‘, and section 3 of the Inspector General Act 

15 of 1978 (5 U.S.C. App.)’’ after ‘‘1001(c) of this title’’; 

16 and 

17 (3) in section 1005(a)(3), by inserting ‘‘, and 

18 section 3 of the Inspector General Act of 1978 (5 

19 U.S.C. App.)’’ after ‘‘1001(c) of this title’’. 

20 (c) APPLICABILITY.— 

21 (1) IN GENERAL.—The amendments made by 

22 this section shall apply with respect to the first indi23 vidual appointed as Inspector General of the Postal 

24 Service after the date of enactment of this Act. 


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1 (2) RULE OF CONSTRUCTION.—Nothing in this 

2 Act may be construed to alter the authority or the 

3 length of the term of the individual serving as Inspec4 tor General of the Postal Service on the date of enact5 ment of this Act. 

6 SEC. 407. POSTAL REGULATORY COMMISSION. 

7 (a) COMMISSIONERS.—Section 502 of title 39, United 

8 States Code, is amended— 

9 (1) in subsection (c), by striking ‘‘subsection (f)’’ 

10 and inserting ‘‘subsections (f) and (g)’’; and 

11 (2) by adding at the end the following: 

12 ‘‘(g) The Commissioners may serve for not more than 

13 2 full terms.’’. 

14 (b) ADMINISTRATION.—Section 504 of title 39, United 

15 States Code, is amended— 

16 (1) in subsection (a), in the second sentence— 

17 (A) by striking ‘‘The Chairman’’ and in18 serting ‘‘Subject to the policies adopted under 

19 subsection (b), the Chairman’’; and 

20 (B) by striking ‘‘all the executive’’ and in21 serting ‘‘the day-to-day executive’’; 

22 (2) by amending subsection (b) to read as fol23 lows: 


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1 ‘‘(b)(1) The Chairman shall be governed by the policies 

2 adopted by the Commission under paragraph (2)(A) in car3 rying out any of the functions under this section. 

4 ‘‘(2) The Commission shall adopt, by a vote of the ma5 jority of the members of the Commission, policies that shall 

6 govern all functions of the Commission, including the fi7 nances, operations, and administration of the Commission. 

8 ‘‘(3) The Commission shall review and, if necessary, 

9 revise the policies adopted under paragraph (2) not less fre10 quently than every 4 years. Adoption of revised policies, or 

11 re-adoption of existing policies, shall be by a vote of the 

12 majority of the members of the Commission.’’; and 

13 (3) in subsection (c), by striking ‘‘The Chair14 man’’ and inserting ‘‘Subject to the policies adopted 

15 under subsection (b), the Chairman’’. 

16 SEC. 408. POSTAL SERVICE CONTRACTS AND CONGRES17 SIONAL OVERSIGHT AUTHORITY. 

18 (a) IN GENERAL.—Chapter 4 of title 39, United States 

19 Code, is amended by adding at the end the following: 

20 ‘‘§ 417. Postal Service contracts and congressional 

21 oversight authority 

22 ‘‘The Postal Service may not enter into any contract 

23 that restricts the ability of Congress to exercise oversight 

24 authority.’’. 


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1 (b) TECHNICAL AND CONFORMING AMENDMENT.—The 

2 table of sections for chapter 4 of title 39, United States 

3 Code, is amended by adding at the end the following: 

‘‘417. Postal Service contracts and congressional oversight authority.’’. 

4 TITLE V—FEDERAL EMPLOYEES’ 

5 COMPENSATION ACT 

6 SEC. 501. SHORT TITLE; REFERENCES. 

7 (a) SHORT TITLE.—This title may be cited as the 

8 ‘‘Workers’ Compensation Reform Act of 2014’’. 

9 (b) REFERENCES.—Except as otherwise expressly pro10 vided, whenever in this title an amendment or repeal is ex11 pressed in terms of an amendment to, or a repeal of, a sec12 tion or other provision, the reference shall be considered to 

13 be made to a section or other provision of title 5, United 

14 States Code. 

15 SEC. 502. FEDERAL WORKERS COMPENSATION REFORMS 

16 FOR RETIREMENT-AGE EMPLOYEES. 

17 (a) CONVERSION OF ENTITLEMENT AT RETIREMENT

18 AGE.— 

19 (1) DEFINITIONS.—Section 8101 is amended— 

20 (A) in paragraph (18), by striking ‘‘and’’ 

21 at the end; 

22 (B) in paragraph (19), by striking ‘‘and’’ 

23 at the end; 

24 (C) in paragraph (20), by striking the pe25 riod at the end and inserting a semicolon; and 


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1 (D) by adding at the end the following: 

2 ‘‘(21) ‘retirement age’ has the meaning given 

3 that term under section 216(l)(1) of the Social Secu4 rity Act (42 U.S.C. 416(l)(1)); 

5 ‘‘(22) ‘covered claim for total disability’ means a 

6 claim for a period of total disability that commenced 

7 before the date of enactment of the Workers’ Com8 pensation Reform Act of 2014; 

9 ‘‘(23) ‘covered claim for partial disability’ means 

10 a claim for a period of partial disability that com11 menced before the date of enactment of the Workers’ 

12 Compensation Reform Act of 2014; and 

13 ‘‘(24) ‘individual who has an exempt disability 

14 condition’ means an individual— 

15 ‘‘(A) who— 

16 ‘‘(i) is eligible to receive continuous 

17 periodic compensation for total disability 

18 under section 8105 on the date of enactment 

19 of the Workers’ Compensation Reform Act of 

20 2014; and 

21 ‘‘(ii) meets the criteria under section 

22 8105(c); 

23 ‘‘(B) who, on the date of enactment of the 

24 Workers’ Compensation Reform Act of 2014— 


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1 ‘‘(i) is eligible to receive continuous 

2 periodic compensation for total disability 

3 under section 8105; and 

4 ‘‘(ii) has sustained a currently irre5 versible severe mental or physical disability 

6 for which the Secretary of Labor has au7 thorized, for at least the 1-year period end8 ing on the date of enactment of the Workers’ 

9 Compensation Reform Act of 2014, constant 

10 in-home care or custodial care, such as 

11 placement in a nursing home; or 

12 ‘‘(C) who is eligible to receive continuous 

13 periodic compensation for total disability under 

14 section 8105— 

15 ‘‘(i) for not less than the 3-year period 

16 ending on the date of enactment of the 

17 Workers’ Compensation Reform Act of 2014; 

18 or 

19 ‘‘(ii) if the individual became eligible 

20 to receive continuous periodic compensation 

21 for total disability under section 8105 dur22 ing the period beginning on the date that is 

23 3 years before the date of enactment of the 

24 Workers’ Compensation Reform Act of 2014 

25 and ending on such date of enactment, for 


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1 not less than the 3-year period beginning on 

2 the date on which the individual became eli3 gible.’’. 

4 (2) TOTAL DISABILITY.—Section 8105 is amend5 ed— 

6 (A) in subsection (a), by striking ‘‘If’’ and 

7 inserting ‘‘IN GENERAL.—Subject to subsection 

8 (b), if’’; 

9 (B) by redesignating subsection (b) as sub10 section (c); and 

11 (C) by inserting after subsection (a) the fol12 lowing: 

13 ‘‘(b) CONVERSION OF ENTITLEMENT AT RETIREMENT

14 AGE.— 

15 ‘‘(1) IN GENERAL.—Except as provided in para16 graph (2), the basic compensation for total disability 

17 for an employee who has attained retirement age shall 

18 be 50 percent of the monthly pay of the employee. 

19 ‘‘(2) EXCEPTIONS.— 

20 ‘‘(A) COVERED RECIPIENTS WHO HAVE AT21 TAINED RETIREMENT AGE, HAVE AN EXEMPT

22 DISABILITY CONDITION, OR FACE FINANCIAL

23 HARDSHIP.—Paragraph (1) shall not apply to a 

24 covered claim for total disability by an employee 

25 if the employee— 


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1 ‘‘(i) on the date of enactment of the 

2 Workers’ Compensation Reform Act of 2014, 

3 has attained retirement age; 

4 ‘‘(ii) is an individual who has an ex5 empt disability condition; or 

6 ‘‘(iii) is a member of a household that 

7 would meet the income and assets require8 ments for eligibility for the supplemental 

9 nutrition assistance program as described 

10 in section 5 of the Food and Nutrition Act 

11 of 2008 (7 U.S.C. 2014) (not including any 

12 provisions permitting eligibility due to ben13 efits received under any other law) if the 

14 basic compensation for total disability of 

15 the employee were provided in accordance 

16 with paragraph (1). 

17 ‘‘(B) TRANSITION PERIOD FOR CERTAIN EM18 PLOYEES.—For a covered claim for total dis19 ability by an employee who is not an employee 

20 described in subparagraph (A), the employee 

21 shall receive the basic compensation for total dis22 ability provided under subsection (a) until the 

23 later of— 

24 ‘‘(i) the date on which the employee at25 tains retirement age; and 


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1 ‘‘(ii) the date that is 3 years after the 

2 date of enactment of the Workers’ Com3 pensation Reform Act of 2014.’’. 

4 (3) PARTIAL DISABILITY.—Section 8106 is 

5 amended— 

6 (A) in subsection (a), by striking ‘‘If’’ and 

7 inserting ‘‘IN GENERAL.—Subject to subsection 

8 (b), if’’; 

9 (B) by redesignating subsections (b) and (c) 

10 as subsections (c) and (d), respectively; and 

11 (C) by inserting after subsection (a) the fol12 lowing: 

13 ‘‘(b) CONVERSION OF ENTITLEMENT AT RETIREMENT

14 AGE.— 

15 ‘‘(1) IN GENERAL.—Except as provided in para16 graph (2), the basic compensation for partial dis17 ability for an employee who has attained retirement 

18 age shall be 50 percent of the difference between the 

19 monthly pay of the employee and the monthly wage20 earning capacity of the employee after the beginning 

21 of the partial disability. 

22 ‘‘(2) EXCEPTIONS.— 

23 ‘‘(A) COVERED RECIPIENTS WHO HAVE AT24 TAINED RETIREMENT AGE OR FACE FINANCIAL

25 HARDSHIP.—Paragraph (1) shall not apply to a 


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1 covered claim for partial disability by an em2 ployee if the employee— 

3 ‘‘(i) on the date of enactment of the 

4 Workers’ Compensation Reform Act of 2014, 

5 has attained retirement age; or 

6 ‘‘(ii) is a member of a household that 

7 would meet the income and assets require8 ments for eligibility for the supplemental 

9 nutrition assistance program as described 

10 in section 5 of the Food and Nutrition Act 

11 of 2008 (7 U.S.C. 2014) (not including any 

12 provisions permitting eligibility due to ben13 efits received under any other law) if the 

14 basic compensation for total disability of 

15 the employee were provided in accordance 

16 with paragraph (1). 

17 ‘‘(B) TRANSITION PERIOD FOR CERTAIN EM18 PLOYEES.—For a covered claim for partial dis19 ability by an employee who is not an employee 

20 described in subparagraph (A), the employee 

21 shall receive basic compensation for partial dis22 ability in accordance with subsection (a) until 

23 the later of— 

24 ‘‘(i) the date on which the employee at25 tains retirement age; and 


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1 ‘‘(ii) the date that is 3 years after the 

2 date of enactment of the Workers’ Com3 pensation Reform Act of 2014.’’. 

4 SEC. 503. AUGMENTED COMPENSATION FOR DEPENDENTS. 

5 (a) IN GENERAL.—Section 8110 is amended— 

6 (1) by redesignating subsection (b) as subsection 

7 (c); and 

8 (2) by inserting after subsection (a) the fol9 lowing: 

10 ‘‘(b) TERMINATION OF AUGMENTED COMPENSATION.— 

11 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

12 augmented compensation for dependants under sub13 section (c) shall not be provided. 

14 ‘‘(2) EXCEPTIONS.— 

15 ‘‘(A) TOTAL DISABILITY.—For a covered 

16 claim for total disability by an employee— 

17 ‘‘(i) the employee shall receive aug18 mented compensation under subsection (c) if 

19 the employee is an individual who has an 

20 exempt disability condition; and 

21 ‘‘(ii) the employee shall receive aug22 mented compensation under subsection (c) 

23 until the date that is 3 years after the date 

24 of enactment of the Workers’ Compensation 


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1 Reform Act of 2014 if the employee is not 

2 an employee described in clause (i). 

3 ‘‘(B) PARTIAL DISABILITY.—For a covered 

4 claim for partial disability by an employee, the 

5 employee shall receive augmented compensation 

6 under subsection (c) until the date that is 3 

7 years after the date of enactment of the Workers’ 

8 Compensation Reform Act of 2014. 

9 ‘‘(C) PERMANENT DISABILITY COM10 PENSATED BY A SCHEDULE.—For a claim for a 

11 permanent disability described in section 

12 8107(a) by an employee that commenced before 

13 the date of enactment of the Workers’ Compensa14 tion Reform Act of 2014, the employee shall re15 ceive augmented compensation under subsection 

16 (c).’’. 

17 (b) MAXIMUM AND MINIMUM MONTHLY PAYMENTS.— 

18 Section 8112 is amended— 

19 (1) in subsection (a)— 

20 (A) by inserting ‘‘subsections (b) and (c) 

21 and’’ before ‘‘section 8138’’; 

22 (B) by striking ‘‘including augmented com23 pensation under section 8110 of this title but’’; 

24 and 


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1 (C) by striking ‘‘75 percent’’ each place it 

appears and inserting ‘‘66 2 2 ⁄3 percent’’; 

3 (2) by redesignating subsection (b) as subsection 

4 (c); 

5 (3) by inserting after subsection (a) the fol6 lowing: 

7 ‘‘(b) EXCEPTIONS.— 

8 ‘‘(1) COVERED DISABILITY CONDITION.—For a 

9 covered claim for total disability by an employee, if 

10 the employee is an individual who has an exempt dis11 ability condition— 

12 ‘‘(A) the monthly rate of compensation for 

13 disability that is subject to the maximum and 

14 minimum monthly amounts under subsection (a) 

15 shall include any augmented compensation 

16 under section 8110; and 

17 ‘‘(B) subsection (a) shall be applied by substituting ‘75 percent’ for ‘66 2 18 ⁄3 percent’ each 

19 place it appears. 

20 ‘‘(2) PARTIAL DISABILITY.—For a covered claim 

21 for partial disability by an employee, until the date 

22 that is 3 years after the date of enactment of the 

23 Workers’ Compensation Reform Act of 2014— 

24 ‘‘(A) the monthly rate of compensation for 

25 disability that is subject to the maximum and 


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1 minimum monthly amounts under subsection (a) 

2 shall include any augmented compensation 

3 under section 8110; and 

4 ‘‘(B) subsection (a) shall be applied by substituting ‘75 percent’ for ‘66 2 5 ⁄3 percent’ each 

6 place it appears.’’; and 

7 (4) in subsection (c), as redesignated by para8 graph (2), by striking ‘‘subsection (a)’’ and inserting 

9 ‘‘subsections (a) and (b)’’. 

10 (c) DEATH BENEFITS GENERALLY.—Section 8133 is 

11 amended— 

12 (1) in subsections (a) and (e), by striking ‘‘75 

percent’’ each place it appears and inserting ‘‘66 2 13 ⁄3

14 percent (except as provided in subsection (g))’’; and 

15 (2) by adding at the end the following: 

16 ‘‘(g) If the death occurred before the date of enactment 

17 of the Workers’ Compensation Reform Act of 2014, sub18 sections (a) and (e) shall be applied by substituting ‘75 percent’ for ‘66 2 19 ⁄3 percent’ each place it appears.’’. 

20 (d) DEATH BENEFITS FOR CIVIL AIR PATROL VOLUN21 TEERS.—Section 8141 is amended— 

22 (1) in subsection (b)(2)(B) by striking ‘‘75 percent’’ and inserting ‘‘66 2 23 ⁄3 percent (except as pro24 vided in subsection (c))’’; 


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1 (2) by redesignating subsection (c) as subsection 

2 (d); and 

3 (3) by inserting after subsection (b) the fol4 lowing: 

5 ‘‘(c) If the death occurred before the date of enactment 

6 of the Workers’ Compensation Reform Act of 2014, sub7 section (b)(2)(B) shall be applied by substituting ‘75 percent’ for ‘66 2 8 ⁄3 percent’.’’. 

9 SEC. 504. SCHEDULE COMPENSATION PAYMENTS. 

10 Section 8107 is amended— 

11 (1) in subsection (a), by striking ‘‘at the rate of 

66 2 12 ⁄3 percent of his monthly pay’’ and inserting ‘‘at 

13 the rate specified under subsection (d)’’; and 

14 (2) by adding at the end the following: 

15 ‘‘(d) RATE FOR COMPENSATION.— 

16 ‘‘(1) ANNUAL SALARY.— 

17 ‘‘(A) IN GENERAL.—Except as provided in 

18 paragraph (2), the rate under subsection (a) 

shall be the rate of 66 2 19 ⁄3 percent of the annual 

20 salary level established under subparagraph (B), 

21 in a lump sum equal to the present value (as 

22 calculated under subparagraph (C)) of the 

23 amount of compensation payable under the 

24 schedule. 

25 ‘‘(B) ESTABLISHMENT.— 


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1 ‘‘(i) IN GENERAL.—The Secretary of 

2 Labor shall establish an annual salary for 

3 purposes of subparagraph (A) in the 

4 amount the Secretary determines will result 

5 in the aggregate cost of payments made 

6 under this section being equal to what 

7 would have been the aggregate cost of pay8 ments under this section if the amendments 

9 made by section 504 of the Workers’ Com10 pensation Reform Act of 2014 had not been 

11 enacted. 

12 ‘‘(ii) COST OF LIVING ADJUSTMENT.— 

13 The annual salary established under clause 

14 (i) shall be increased on March 1 of each 

15 year by the amount determined by the Sec16 retary of Labor to represent the percent 

17 change in the price index published for De18 cember of the preceding year over the price 

19 index published for the December of the year 

20 prior to the preceding year, adjusted to the 

21 nearest one-tenth of 1 percent. 

22 ‘‘(C) PRESENT VALUE.—The Secretary of 

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1 standing marketable obligations of the United 

2 States with a maturity of 2 years on the first 

3 business day of the month in which the com4 pensation is paid or, in the event that such mar5 ketable obligations are not being issued on such 

6 date, at an equivalent rate selected by the Sec7 retary of Labor, true discount compounded an8 nually. 

9 ‘‘(2) CERTAIN INJURIES.—For an injury that oc10 curred before the date of enactment of the Workers’ 

11 Compensation Reform Act of 2014, the rate under 

subsection (a) shall be 66 2 12 ⁄3 percent of the employee’s 

13 monthly pay. 

14 ‘‘(e) SIMULTANEOUS RECEIPT.— 

15 ‘‘(1) TOTAL DISABILITY.—An employee who re16 ceives compensation for total disability under section 

17 8105 may only receive the lump sum of schedule com18 pensation under this section in addition to and si19 multaneously with the benefits for total disability 

20 after the earlier of— 

21 ‘‘(A) the date on which the basic compensa22 tion for total disability of the employee becomes 

23 50 percent of the monthly pay of the employee 

24 under section 8105(b); or 


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1 ‘‘(B) the date on which augmented com2 pensation of the employee terminates under sec3 tion 8110(b)(2)(A)(ii), if the employee receives 

4 such compensation. 

5 ‘‘(2) PARTIAL DISABILITY.—An employee who re6 ceives benefits for partial disability under section 

7 8106 may only receive the lump sum of schedule com8 pensation under this section in addition to and si9 multaneously with the benefits for partial disability 

10 after the earlier of— 

11 ‘‘(A) the date on which the basic compensa12 tion for partial disability of the employee be13 comes 50 percent of the difference between the 

14 monthly pay of the employee and the monthly 

15 wage-earning capacity of the employee after the 

16 beginning of the partial disability under section 

17 8106(b); or 

18 ‘‘(B) the date on which augmented com19 pensation of the employee terminates under sec20 tion 8110(b)(2)(B), if the employee receives such 

21 compensation.’’. 

22 SEC. 505. VOCATIONAL REHABILITATION. 

23 (a) IN GENERAL.—Section 8104 is amended— 

24 (1) in subsection (a)— 


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1 (A) by striking ‘‘(a) The Secretary of Labor 

2 may’’ and all that follows through ‘‘undergo vo3 cational rehabilitation.’’ and inserting the fol4 lowing: 

5 ‘‘(a) IN GENERAL.— 

6 ‘‘(1) DIRECTION.—Except as provided in para7 graph (2), not earlier than the date that is 6 months 

8 after the date on which an individual eligible for 

9 wage-loss compensation under section 8105 or 8106 is 

10 injured, or by such other date as the Secretary of 

11 Labor determines it would be reasonable under the 

12 circumstances for the individual to begin vocational 

13 rehabilitation, and if vocational rehabilitation may 

14 enable the individual to become capable of more gain15 ful employment, the Secretary of Labor shall direct 

16 the individual to participate in developing a com17 prehensive return to work plan and to undergo voca18 tional rehabilitation at a location a reasonable dis19 tance from the residence of the individual.’’; 

20 (B) by striking ‘‘the Secretary of Health, 

21 Education, and Welfare in carrying out the pur22 poses of chapter 4 of title 29’’ and inserting ‘‘the 

23 Secretary of Education in carrying out the pur24 poses of the Rehabilitation Act of 1973 (29 

25 U.S.C. 701 et seq.)’’; 


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1 (C) by striking ‘‘under section 32(b)(1) of 

2 title 29’’ and inserting ‘‘under section 5 of the 

3 Rehabilitation Act of 1973 (29 U.S.C. 704)’’; 

4 and 

5 (D) by adding at the end the following: 

6 ‘‘(2) EXCEPTION.—The Secretary of Labor may 

7 not direct an individual who has attained retirement 

8 age to participate in developing a comprehensive re9 turn to work plan or to undergo vocational rehabili10 tation.’’; 

11 (2) by redesignating subsection (b) as subsection 

12 (c); 

13 (3) by inserting after subsection (a) the fol14 lowing: 

15 ‘‘(b) CONTENTS OF RETURN TO WORK PLAN.—A re16 turn to work plan developed under subsection (a)— 

17 ‘‘(1) shall— 

18 ‘‘(A) set forth specific measures designed to 

19 increase the wage-earning capacity of an indi20 vidual; 

21 ‘‘(B) take into account the prior training 

22 and education of the individual and the train23 ing, educational, and employment opportunities 

24 reasonably available to the individual; and 


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1 ‘‘(C) provide that any employment under2 taken by the individual under the return to work 

3 plan be at a location a reasonable distance from 

4 the residence of the individual; 

5 ‘‘(2) may provide that the Secretary will pay out 

6 of amounts in the Employees’ Compensation Fund 

7 reasonable expenses of vocational rehabilitation 

8 (which may include tuition, books, training fees, sup9 plies, equipment, and child or dependent care) during 

10 the course of the plan; and 

11 ‘‘(3) may not be for a period of more than 2 

12 years, unless the Secretary finds good cause to grant 

13 an extension, which may be for not more than 2 

14 years.’’; 

15 (4) in subsection (c), as so redesignated— 

16 (A) by inserting ‘‘COMPENSATION.—’’ before 

17 ‘‘Notwithstanding’’; and 

18 (B) by striking ‘‘, other than employment 

19 undertaken pursuant to such rehabilitation’’; 

20 and 

21 (5) by adding at the end the following: 

22 ‘‘(d) ASSISTED REEMPLOYMENT AGREEMENTS.— 

23 ‘‘(1) IN GENERAL.—The Secretary may enter 

24 into an assisted reemployment agreement with an 

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1 eral Government or a State or local government or a 

2 private employer that employs an individual eligible 

3 for wage-loss compensation under section 8105 or 

4 8106 to enable the individual to return to productive 

5 employment. 

6 ‘‘(2) CONTENTS.—An assisted reemployment 

7 agreement under paragraph (1)— 

8 ‘‘(A) may provide that the Secretary will 

9 use amounts in the Employees’ Compensation 

10 Fund to reimburse an employer in an amount 

11 equal to not more than 100 percent of the com12 pensation the individual would otherwise receive 

13 under section 8105 or 8106; and 

14 ‘‘(B) may not be for a period of more than 

15 3 years. 

16 ‘‘(e) LIST.—To facilitate the hiring of individuals eli17 gible for wage-loss compensation under section 8105 or 

18 8106, the Secretary shall provide a list of such individuals 

19 to the Office of Personnel Management, which the Office of 

20 Personnel Management shall provide to all agencies and in21 strumentalities of the Federal Government.’’. 

22 (b) EMPLOYEES’ COMPENSATION FUND.—Section 8147 

23 is amended by adding at the end: 

24 ‘‘(d) Notwithstanding subsection (b), any benefits or 

25 other payments paid to or on behalf of an employee under 


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1 this subchapter or any extension or application thereof for 

2 a recurrence of injury, consequential injury, aggravation 

3 of injury, or increase in percentage of impairment to a 

4 member for which compensation is provided under the 

5 schedule under section 8107 suffered in a permanent posi6 tion with an agency or instrumentality of the United States 

7 while the employment with the agency or instrumentality 

8 is covered under an assisted reemployment agreement en9 tered into under section 8104(d) shall not be included in 

10 total cost of benefits and other payments in the statement 

11 provided to the agency or instrumentality under subsection 

12 (b) if the injury was originally incurred in a position not 

13 covered by an assisted reemployment agreement.’’. 

14 (c) TERMINATION OF VOCATIONAL REHABILITATION

15 REQUIREMENT AFTER RETIREMENT AGE.—Section 

16 8113(b) is amended by adding at the end the following: ‘‘An 

17 individual who has attained retirement age may not be re18 quired to undergo vocational rehabilitation.’’. 

19 (d) MANDATORY BENEFIT REDUCTION FOR NON20 COMPLIANCE.—Section 8113(b) is amended by striking 

21 ‘‘may reduce’’ and inserting ‘‘shall reduce’’. 

22 (e) TECHNICAL AND CONFORMING AMENDMENTS.— 

23 (1) IN GENERAL.—Subchapter III of chapter 15 

24 of title 31, United States Code, is amended by adding 

25 at the end the following: 


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1 ‘‘§ 1538. Authorization for assisted reemployment 

2 ‘‘Funds may be transferred from the Employees’ Com3 pensation Fund established under section 8147 of title 5 to 

4 the applicable appropriations account for an agency or in5 strumentality of any branch of the Federal Government for 

6 the purposes of reimbursing the agency or instrumentality 

7 in accordance with an assisted reemployment agreement en8 tered into under section 8104 of title 5.’’. 

9 (2) TABLE OF SECTIONS.—The table of sections 

10 for chapter 15 of title 31, United States Code, is 

11 amended by inserting after the item relating to sec12 tion 1537 the following: 

‘‘1538. Authorization for assisted reemployment.’’. 

13 SEC. 506. REPORTING REQUIREMENTS. 

14 (a) IN GENERAL.—Chapter 81 is amended by insert15 ing after section 8106 the following: 

16 ‘‘§ 8106a. Reporting requirements 

17 ‘‘(a) DEFINITION.—In this section, the term ‘employee 

18 receiving compensation’ means an employee who— 

19 ‘‘(1) is paid compensation under section 8105 or 

20 8106; and 

21 ‘‘(2) has not attained retirement age. 

22 ‘‘(b) AUTHORITY.—The Secretary of Labor shall re23 quire an employee receiving compensation to report the 

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1 ployment or self-employment, by affidavit or otherwise, in 

2 the manner and at the times the Secretary specifies. 

3 ‘‘(c) CONTENTS.—An employee receiving compensation 

4 shall include in a report required under subsection (a) the 

5 value of housing, board, lodging, and other advantages 

6 which are part of the earnings of the employee receiving 

7 compensation in employment or self-employment and the 

8 value of which can be estimated. 

9 ‘‘(d) FAILURE TO REPORT AND FALSE REPORTS.— 

10 ‘‘(1) IN GENERAL.—An employee receiving com11 pensation who fails to make an affidavit or other re12 port required under subsection (b) or who knowingly 

13 omits or understates any part of the earnings of the 

14 employee in such an affidavit or other report shall 

15 forfeit the right to compensation with respect to any 

16 period for which the report was required. 

17 ‘‘(2) FORFEITED COMPENSATION.—Compensation 

18 forfeited under this subsection, if already paid to the 

19 employee receiving compensation, shall be recovered 

20 by a deduction from the compensation payable to the 

21 employee or otherwise recovered under section 8129, 

22 unless recovery is waived under that section.’’. 

23 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

24 The table of sections for chapter 81 is amended by inserting 

25 after the item relating to section 8106 the following: 

‘‘8106a. Reporting requirements.’’. 


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1 SEC. 507. DISABILITY MANAGEMENT REVIEW; INDE2 PENDENT MEDICAL EXAMINATIONS. 

3 Section 8123 is amended by adding at the end the fol4 lowing: 

5 ‘‘(e) DISABILITY MANAGEMENT REVIEW.— 

6 ‘‘(1) DEFINITIONS.—In this subsection— 

7 ‘‘(A) the term ‘covered employee’ means an 

8 employee who is in continuous receipt of com9 pensation for total disability under section 8105 

10 for a period of not less than 6 months; and 

11 ‘‘(B) the term ‘disability management re12 view process’ means the disability management 

13 review process established under paragraph 

14 (2)(A). 

15 ‘‘(2) ESTABLISHMENT.—The Secretary of Labor 

16 shall— 

17 ‘‘(A) establish a disability management re18 view process for the purpose of certifying and 

19 monitoring the disability status and extent of in20 jury of each covered employee; and 

21 ‘‘(B) promulgate regulations for the admin22 istration of the disability management review 

23 process. 

24 ‘‘(3) PHYSICAL EXAMINATIONS REQUIRED.— 

25 Under the disability management review process, the 

26 Secretary of Labor shall periodically require covered 


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1 employees to submit to physical examinations under 

2 subsection (a) by physicians selected by the Secretary. 

3 A physician conducting a physical examination of a 

4 covered employee shall submit to the Secretary a re5 port regarding the nature and extent of the injury to 

6 and disability of the covered employee. 

7 ‘‘(4) FREQUENCY.— 

8 ‘‘(A) IN GENERAL.—The regulations pro9 mulgated under paragraph (2)(B) shall specify 

10 the process and criteria for determining when 

11 and how frequently a physical examination 

12 should be conducted for a covered employee. 

13 ‘‘(B) MINIMUM FREQUENCY.— 

14 ‘‘(i) INITIAL.—An initial physical ex15 amination shall be conducted not more than 

16 a brief period after the date on which a cov17 ered employee has been in continuous re18 ceipt of compensation for total disability 

19 under section 8015 for 6 months. 

20 ‘‘(ii) SUBSEQUENT EXAMINATIONS.— 

21 After the initial physical examination, 

22 physical examinations of a covered em23 ployee shall be conducted not less than once 

24 every 3 years. 


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1 ‘‘(5) EMPLOYING AGENCY OR INSTRUMENTALITY

2 REQUESTS.— 

3 ‘‘(A) IN GENERAL.—The agency or instru4 mentality employing an employee who has made 

5 a claim for compensation for total disability 

6 under section 8105 may at any time submit a 

7 request for the Secretary of Labor to promptly 

8 require the employee to submit to a physical ex9 amination under this subsection. 

10 ‘‘(B) REQUESTING OFFICER.—A request 

11 under subparagraph (A) shall be made on behalf 

12 of an agency or instrumentality by— 

13 ‘‘(i) the head of the agency or instru14 mentality; 

15 ‘‘(ii) the Chief Human Capital Officer 

16 of the agency or instrumentality; or 

17 ‘‘(iii) if the agency or instrumentality 

18 does not have a Chief Human Capital Offi19 cer, an officer with responsibilities similar 

20 to those of a Chief Human Capital Officer 

21 designated by the head of the agency or in22 strumentality to make requests under this 

23 paragraph. 


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1 ‘‘(C) INFORMATION.—A request under sub2 paragraph (A) shall be in writing and accom3 panied by— 

4 ‘‘(i) a certification by the officer mak5 ing the request that the officer has reviewed 

6 the relevant material in the employee’s file; 

7 ‘‘(ii) an explanation of why the officer 

8 has determined, based on the materials in 

9 the file and other information known to the 

10 officer, that requiring a physical examina11 tion of the employee under this subsection is 

12 necessary; and 

13 ‘‘(iii) copies of the materials relating 

14 to the employee that are relevant to the offi15 cer’s determination and request, unless the 

16 agency or instrumentality has a reasonable 

17 basis for not providing the materials. 

18 ‘‘(D) EXAMINATION.—If the Secretary of 

19 Labor receives a request under this paragraph 

20 before an employee has undergone an initial 

21 physical examination under paragraph 

22 (4)(B)(i), the Secretary shall promptly require 

23 the physical examination of the employee. A 

24 physical examination under this subparagraph 

25 shall satisfy the requirement under paragraph 


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1 (4)(B)(i) that an initial physical examination be 

2 conducted. 

3 ‘‘(E) AFTER INITIAL EXAMINATION.— 

4 ‘‘(i) IN GENERAL.—If the Secretary of 

5 Labor receives a request under this para6 graph after an employee has undergone an 

7 initial physical examination under para8 graph (4)(B)(i), the Secretary shall— 

9 ‘‘(I) review the request and the in10 formation, explanation, and other ma11 terials submitted with the request; and 

12 ‘‘(II) determine whether to require 

13 the physical examination of the em14 ployee who is the subject of the request. 

15 ‘‘(ii) NOT GRANTED.—If the Secretary 

16 determines not to grant a request described 

17 in clause (i), the Secretary shall promptly 

18 notify the officer who made the request and 

19 provide an explanation of the reasons why 

20 the request was denied.’’. 

21 SEC. 508. WAITING PERIOD. 

22 (a) IN GENERAL.—Section 8117 is amended— 

23 (1) in the section heading, by striking ‘‘Time 

24 of accrual of right’’ and inserting ‘‘Waiting 

25 period’’; 


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1 (2) in subsection (a)— 

2 (A) in the matter preceding paragraph (1), 

3 by striking ‘‘An employee’’ and all that follows 

4 through ‘‘is not entitled’’ and inserting ‘‘IN GEN5 ERAL.—An employee is not entitled to continu6 ation of pay within the meaning of section 8118 

7 for the first 3 days of temporary disability or, if 

8 section 8118 does not apply, is not entitled’’; 

9 (B) in paragraph (1), by adding ‘‘or’’ at 

10 the end; 

11 (C) by striking paragraph (2); and 

12 (D) by redesignating paragraph (3) as 

13 paragraph (2); and 

14 (3) in subsection (b)— 

15 (A) by striking ‘‘A Postal Service’’ the first 

16 place it appears and all that follows through ‘‘A 

17 Postal Service’’ the second place it appears and 

18 inserting ‘‘USE OF LEAVE.—An’’; 

19 (B) by striking ‘‘that 3-day period’’ and in20 serting ‘‘the first 3 days of temporary dis21 ability’’; and 

22 (C) by striking ‘‘or is followed by perma23 nent disability’’. 

24 (b) CONTINUATION OF PAY.—Section 8118 is amend25 ed— 


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1 (1) in the section heading, by striking ‘‘; elec2 tion to use annual or sick leave’’; 

3 (2) in subsection (b)(1), by striking ‘‘section 

4 8117(b)’’ and inserting ‘‘section 8117’’; 

5 (3) by striking subsection (c); and 

6 (4) by redesignating subsection (d) as subsection 

7 (c). 

8 (c) TECHNICAL AND CONFORMING AMENDMENTS.—The 

9 table of sections for chapter 81 is amended by striking the 

10 items relating to sections 8117 and 8118 and inserting the 

11 following: 

‘‘8117. Waiting period. 

‘‘8118. Continuation of pay.’’. 

12 SEC. 509. ELECTION OF BENEFITS. 

13 (a) IN GENERAL.—Section 8116 is amended by adding 

14 at the end the following: 

15 ‘‘(e) RETIREMENT BENEFITS.— 

16 ‘‘(1) IN GENERAL.—An individual entitled to 

17 compensation benefits payable under this subchapter 

18 and under chapter 83 or 84 or any other retirement 

19 system for employees of the Government, for the same 

20 period, shall elect which benefits the individual will 

21 receive. 

22 ‘‘(2) ELECTION.— 

23 ‘‘(A) DEADLINE.—An individual shall make 

24 an election under paragraph (1) in accordance 


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1 with such deadlines as the Secretary of Labor 

2 shall establish, which shall be a reasonable period 

3 after the individual has received notice of a final 

4 determination that the individual is entitled to 

5 compensation benefits payable under this sub6 chapter. 

7 ‘‘(B) REVOCABILITY.—An election under 

8 paragraph (1) shall be revocable, notwith9 standing any other provision of law, except for 

10 any period during which an individual— 

11 ‘‘(i) was qualified for benefits payable 

12 under both this subchapter and under a re13 tirement system described in paragraph (1); 

14 and 

15 ‘‘(ii) was paid benefits under the re16 tirement system after having been notified 

17 of eligibility for benefits under this sub18 chapter. 

19 ‘‘(3) INFORMED CHOICE.—The Secretary of 

20 Labor shall provide information, and shall ensure 

21 that information is provided, to an individual de22 scribed in paragraph (1) about the benefits available 

23 to the individual under this subchapter or under 

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1 ferred to in paragraph (1) the individual may elect 

2 to receive.’’. 

3 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

4 Sections 8337(f)(3) and 8464a(a)(3) are each amended by 

5 striking ‘‘Paragraphs’’ and inserting ‘‘Except as provided 

6 under chapter 81, paragraphs’’. 

7 SEC. 510. SANCTION FOR NONCOOPERATION WITH FIELD 

8 NURSES. 

9 Section 8123, as amended by section 507, is amended 

10 by adding at the end the following: 

11 ‘‘(f) FIELD NURSES.— 

12 ‘‘(1) DEFINITION.—In this subsection, the term 

13 ‘field nurse’ means a registered nurse that assists the 

14 Secretary in the medical management of disability 

15 claims under this subchapter and provides claimants 

16 with assistance in coordinating medical care. 

17 ‘‘(2) AUTHORIZATION.—The Secretary may use 

18 field nurses to coordinate medical services and voca19 tional rehabilitation programs for injured employees 

20 under this subchapter. If an employee refuses to co21 operate with a field nurse or obstructs a field nurse 

22 in the performance of duties under this subchapter, 

23 the right to compensation under this subchapter shall 

24 be suspended until the refusal or obstruction stops.’’. 


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1 SEC. 511. SUBROGATION OF CONTINUATION OF PAY. 

2 (a) IN GENERAL.—Section 8131 is amended— 

3 (1) in subsection (a), in the matter preceding 

4 paragraph (1), by inserting ‘‘continuation of pay or’’ 

5 before ‘‘compensation’’; 

6 (2) in subsection (b), by inserting ‘‘continuation 

7 of pay or’’ before ‘‘compensation’’; and 

8 (3) in subsection (c)— 

9 (A) by inserting ‘‘continuation of pay or’’ 

10 before ‘‘compensation already paid’’; and 

11 (B) by inserting ‘‘continuation of pay or’’ 

12 before ‘‘compensation payable’’. 

13 (b) ADJUSTMENT AFTER RECOVERY FROM A THIRD

14 PERSON.—Section 8132 is amended— 

15 (1) in the first sentence— 

16 (A) by inserting ‘‘continuation of pay or’’ 

17 before ‘‘compensation is payable’’; 

18 (B) by inserting ‘‘continuation of pay or’’ 

19 before ‘‘compensation from the United States’’; 

20 (C) by striking ‘‘by him or in his behalf’’ 

21 and inserting ‘‘by the beneficiary or on behalf of 

22 the beneficiary’’; 

23 (D) by inserting ‘‘continuation of pay and’’ 

24 before ‘‘compensation paid by the United 

25 States’’; and 


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1 (E) by striking ‘‘compensation payable to 

2 him’’ and inserting ‘‘continuation of pay or 

3 compensation payable to the beneficiary’’; 

4 (2) in the second sentence, by striking ‘‘his des5 ignee’’ and inserting ‘‘the designee of the beneficiary’’; 

6 and 

7 (3) in the fourth sentence, by striking ‘‘If com8 pensation’’ and all that follows through ‘‘payable to 

9 him by the United States’’ and inserting ‘‘If continu10 ation of pay or compensation has not been paid to the 

11 beneficiary, the money or property shall be credited 

12 against continuation of pay or compensation payable 

13 to the beneficiary by the United States’’. 

14 (c) EFFECTIVE DATE.—This section and the amend15 ments made by this section shall take effect on the date of 

16 enactment of this Act. 

17 SEC. 512. INTEGRITY AND COMPLIANCE. 

18 (a) IN GENERAL.—Subchapter I of chapter 81 is 

19 amended by adding at the end the following: 

20 ‘‘§ 8153. Integrity and Compliance Program 

21 ‘‘(a) DEFINITIONS.—In this section— 

22 ‘‘(1) the term ‘FECA program’ means the Fed23 eral Employees Compensation Program administered 

24 under this subchapter; 


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1 ‘‘(2) the term ‘improper payment’ has the mean2 ing given that term in section 2(g) of the Improper 

3 Payments Information Act of 2002 (31 U.S.C. 3321 

4 note); 

5 ‘‘(3) the term ‘Inspector General’— 

6 ‘‘(A) means an Inspector General described 

7 in subparagraph (A), (B), or (I) of section 

8 11(b)(1) of the Inspector General Act of 1978 (5 

9 U.S.C. App.); and 

10 ‘‘(B) does not include the Inspector General 

11 of an entity having no employees covered under 

12 the FECA program; 

13 ‘‘(4) the term ‘Integrity and Compliance Pro14 gram’ means the Integrity and Compliance Program 

15 established under subsection (b); 

16 ‘‘(5) the term ‘provider’ means a provider of 

17 medical or other services under the FECA program; 

18 ‘‘(6) the term ‘Secretary’ means the Secretary of 

19 Labor; and 

20 ‘‘(7) the term ‘Task Force’ means the FECA In21 tegrity and Compliance Task Force established under 

22 subsection (c)(2)(A). 

23 ‘‘(b) INTEGRITY AND COMPLIANCE PROGRAM.—Not 

24 later than 270 days after the date of enactment of this sec25 tion, the Secretary shall establish an Integrity and CompliVerDate Mar 15 2010 04:57 Aug 01, 2014 Jkt 039200 PO 00000 Frm 00389 Fmt 6652 Sfmt 6203 E:\BILLS\S1486.RS S1486

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1 ance Program for the purpose of preventing, identifying, 

2 and recovering fraudulent and other improper payments for 

3 the FECA program, which shall include— 

4 ‘‘(1) procedures for identifying potentially im5 proper payments before payment is made to claim6 ants and providers, including, where appropriate, 

7 predictive analytics; 

8 ‘‘(2) reviews after payment is made to identify 

9 potentially improper payments to claimants and pro10 viders; 

11 ‘‘(3) ongoing screening and verification proce12 dures to ensure the continued eligibility of medical 

13 providers to provide services under the FECA pro14 gram, including licensure, Federal disbarment, and 

15 the existence of relevant criminal convictions; 

16 ‘‘(4) provision of appropriate information, edu17 cation, and training to claimants and providers on 

18 requirements to ensure the integrity of the FECA pro19 gram, including payments under the FECA program; 

20 ‘‘(5) appropriate controls and audits to ensure 

21 that providers adopt internal controls and procedures 

22 for compliance with requirements under the FECA 

23 program; 

24 ‘‘(6) procedures to ensure— 


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1 ‘‘(A) initial and continuing eligibility of 

2 claimants for compensation, benefits, or services 

3 under the FECA program; and 

4 ‘‘(B) ongoing verification of information in 

5 databases relating to claimants to ensure accu6 racy and completeness; and 

7 ‘‘(7) sharing and accessing data and information 

8 with other agencies and instrumentalities of the 

9 United States, including the United States Postal 

10 Service. 

11 ‘‘(c) INTERAGENCY COOPERATION ON ANTI-FRAUD EF12 FORTS.— 

13 ‘‘(1) IN GENERAL.—In administering the FECA 

14 program, including the Integrity and Compliance 

15 Program, the Secretary shall cooperate with other 

16 agencies and instrumentalities of the United States 

17 (including the United States Postal Service) and the 

18 Inspectors General of such agencies and instrumental19 ities to prevent, identify, and recover fraudulent and 

20 other improper payments under the FECA program. 

21 ‘‘(2) TASK FORCE.— 

22 ‘‘(A) IN GENERAL.—There is established a 

23 task force, which shall be known as the FECA 

24 Integrity and Compliance Task Force. 


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1 ‘‘(B) MEMBERSHIP.—The members of the 

2 Task Force shall be— 

3 ‘‘(i) the Secretary, who shall serve as 

4 the Chairperson of the Task Force; 

5 ‘‘(ii) the Postmaster General, who shall 

6 serve as the Vice Chairperson of the Task 

7 Force; 

8 ‘‘(iii) the Attorney General; 

9 ‘‘(iv) the Director of the Office of Man10 agement and Budget; and 

11 ‘‘(v) other appropriate Federal offi12 cials, as determined by the Chairperson and 

13 Vice Chairperson of the Task Force. 

14 ‘‘(C) ADVISORY MEMBERS.—The following 

15 officials shall attend meetings of the Task Force 

16 and participate as ad hoc, advisory members, to 

17 provide technical assistance and guidance to the 

18 Task Force with respect to the duties of the Task 

19 Force: 

20 ‘‘(i) The Inspector General of the De21 partment of Labor. 

22 ‘‘(ii) The Inspector General of the 

23 United States Postal Service. 

24 ‘‘(iii) The Inspectors General of other 

25 appropriate agencies and instrumentalities 


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1 of the United States that employ a signifi2 cant number of individuals receiving com3 pensation, benefits, or services under the 

4 FECA program, as determined by the 

5 Chairperson of the Task Force. 

6 ‘‘(D) DUTIES.—The Task Force shall— 

7 ‘‘(i) set forth, in writing, a description 

8 of the respective roles and responsibilities in 

9 preventing, identifying, recovering, and 

10 prosecuting fraud under, and otherwise en11 suring integrity and compliance of, the 

12 FECA program of— 

13 ‘‘(I) the Secretary (including sub14 ordinate officials such as the Director 

15 of the Office of Workers’ Compensation 

16 Programs); 

17 ‘‘(II) the Inspector General of the 

18 Department of Labor; 

19 ‘‘(III) the Inspectors General of 

20 agencies and instrumentalities of the 

21 United States that employ claimants 

22 under the FECA program; 

23 ‘‘(IV) the Attorney General; and 

24 ‘‘(V) any other relevant officials; 


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1 ‘‘(ii) develop procedures for sharing in2 formation of possible fraud under the FECA 

3 program or other intentional misstatements 

4 by claimants or providers under the FECA 

5 program, including procedures addressing— 

6 ‘‘(I) notification of appropriate 

7 officials of the Department of Labor of 

8 potential fraud or other intentional 

9 misstatements, including provision of 

10 supporting information; 

11 ‘‘(II) timely and appropriate re12 sponse by officials of the Department of 

13 Labor to notifications described in sub14 clause (I); 

15 ‘‘(III) the inclusion of informa16 tion and evidence relating to fraud and 

17 other intentional misstatements in 

18 criminal, civil, and administrative 

19 proceedings relating to the provision of 

20 compensation, benefits, or medical 

21 services (including payments to pro22 viders) under the FECA program; 

23 ‘‘(IV) the coordination of criminal 

24 investigations with the administration 

25 of the FECA program; and 


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1 ‘‘(V) the protection of information 

2 relating to an investigation of possible 

3 fraud under the FECA program from 

4 potential disclosure, including require5 ments that enable investigative files to 

6 be appropriately separated from case 

7 management files; and 

8 ‘‘(iii) not later than 1 year after the 

9 date of enactment of this section, submit to 

10 the Committee on Homeland Security and 

11 Governmental Affairs of the Senate and the 

12 Committee on Oversight and Government 

13 Reform and the Committee on Education 

14 and the Workforce of the House of Rep15 resentatives a report that includes the de16 scription and procedures required under 

17 clauses (i) and (ii). 

18 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in this 

19 subsection shall be construed to limit or restrict any 

20 authority of an Inspector General. 

21 ‘‘(d) IMPROVEMENTS TO ACCESS OF FEDERAL DATA22 BASES.— 

23 ‘‘(1) IN GENERAL.—In order to improve compli24 ance with the requirements under and the integrity of 

25 the FECA program, or as required to otherwise detect 


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1 and prevent improper payments under the FECA 

2 program (including for purposes of computer match3 ing under subsection (e)(1)(D)), upon written re4 quest— 

5 ‘‘(A) the Commissioner of Social Security 

6 shall make available to the Secretary, the Post7 master General, and each Inspector General the 

8 Social Security earnings information of a living 

9 or deceased employee; 

10 ‘‘(B) the Director of the Office of Personnel 

11 Management shall make available to the Sec12 retary, the Postmaster General, and each Inspec13 tor General the information in the databases of 

14 Federal employees and retirees maintained by 

15 the Director; and 

16 ‘‘(C) the Secretary of Veterans Affairs shall 

17 make available to the Secretary, the Postmaster 

18 General, and each Inspector General the infor19 mation in the database of disabled individuals 

20 maintained by the Secretary of Veterans Affairs. 

21 ‘‘(2) NATIONAL DIRECTORY OF NEW HIRES.— 

22 Upon written request, the Secretary of Health and 

23 Human Services shall make available to the Sec24 retary, the Postmaster General, each Inspector Gen25 eral, and the Comptroller General of the United 


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1 States the information in the National Directory of 

2 New Hires for purposes of carrying out this sub3 chapter, in order to improve compliance with the re4 quirements under and the integrity of the FECA pro5 gram, or as required to otherwise detect and prevent 

6 improper payments under the FECA program (in7 cluding for purposes of computer matching under sub8 section (e)(1)(D)). The Comptroller General may ob9 tain information from the National Directory of New 

10 Hires for purposes of any audit, evaluation, or inves11 tigation, including any audit, evaluation, or inves12 tigation relating to program integrity. 

13 ‘‘(3) PROCEDURES.—The Secretary shall estab14 lish procedures for correlating the identity and status 

15 of recipients of compensation, benefits, or services 

16 under this subchapter with Social Security earnings 

17 information described in paragraph (1)(A). 

18 ‘‘(4) PROVISION.—Information requested under 

19 this subsection shall be provided— 

20 ‘‘(A) in a timely manner; 

21 ‘‘(B) at a reasonable cost to the Secretary, 

22 the Postmaster General, or an Inspector General; 

23 ‘‘(C) without cost to the Comptroller Gen24 eral of the United States; and 


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1 ‘‘(D) in the manner, frequency, and form 

2 reasonably specified by the officer making the re3 quest, which, upon request, shall include elec4 tronic form. 

5 ‘‘(5) ASSESSMENT OF DATA COST-EFFECTIVE6 NESS.— 

7 ‘‘(A) IN GENERAL.—The Secretary shall 

8 consider and assess procedures for correlating the 

9 identity and status of recipients of compensa10 tion, benefits, or services under this subchapter 

11 with information relating to employees, retirees, 

12 and individuals described in subparagraphs (B) 

13 and (C) of paragraph (1) and paragraph (2). 

14 ‘‘(B) REPORT.—Not later than 1 year after 

15 the date of enactment of this section, the Sec16 retary shall submit to the Committee on Home17 land Security and Governmental Affairs of the 

18 Senate and the Committee on Oversight and 

19 Government Reform and the Committee on Edu20 cation and the Workforce of the House of Rep21 resentatives a report on the cost-effectiveness of 

22 the use of the databases described in subpara23 graphs (B) and (C) of paragraph (1) and para24 graph (2) for program compliance and integrity. 

25 The report required under this subparagraph 


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1 may be included as part of the report required 

2 under subsection (f). 

3 ‘‘(6) UNITED STATES POSTAL SERVICE FECA EN4 ROLLEE DATABASE.—Not later than 180 days after 

5 the date of enactment of this section, in order to 

6 track, verify, and communicate with the Secretary 

7 and other relevant entities, the Postmaster General 

8 shall establish an electronic database of information 

9 relating to employees of the United States Postal 

10 Service who have applied for or are receiving com11 pensation, benefits, or services under this subchapter. 

12 ‘‘(7) RULE OF CONSTRUCTION.—Nothing in this 

13 subsection shall be construed to limit the authority of 

14 the Comptroller General of the United States under 

15 section 716 of title 31. 

16 ‘‘(e) GENERAL PROTOCOLS AND SECURITY.— 

17 ‘‘(1) ESTABLISHMENT.— 

18 ‘‘(A) IN GENERAL.—In order to ensure 

19 strong information security and privacy stand20 ards, the Task Force shall establish protocols for 

21 the secure transfer and storage of any informa22 tion provided to an individual or entity under 

23 this section. 

24 ‘‘(B) CONSIDERATIONS.—In establishing 

25 protocols under subparagraph (A), the Task 


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1 Force shall consider any recommendations sub2 mitted to the Secretary by the Inspector General 

3 of the Department of Health and Human Serv4 ices with respect to the secure transfer and stor5 age of information, and to comply with privacy 

6 laws and best practices. 

7 ‘‘(C) FRAUD CASE PROTECTION.—The Task 

8 Force shall establish protocols and procedures to 

9 enable information and materials relating to an 

10 active investigation of possible fraud relating to 

11 the FECA program to be appropriately kept sep12 arate from the files for employees relating to the 

13 provision of compensation, benefits, or services 

14 under the FECA program. 

15 ‘‘(D) COMPUTER MATCHING BY FEDERAL

16 AGENCIES FOR PURPOSES OF INVESTIGATION

17 AND PREVENTION OF IMPROPER PAYMENTS AND

18 FRAUD.— 

19 ‘‘(i) IN GENERAL.—Except as provided 

20 in this subparagraph, in accordance with 

21 section 552a (commonly known as the Pri22 vacy Act of 1974), the Secretary, the Post23 master General, each Inspector General, and 

24 the head of each agency may enter into 

25 computer matching agreements that allow 


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1 ongoing data matching (which shall include 

2 automated data matching) in order to assist 

3 in the detection and prevention of improper 

4 payments under the FECA program. 

5 ‘‘(ii) REVIEW.—Not later than 60 days 

6 after a proposal for an agreement under 

7 clause (i) has been presented to a Data In8 tegrity Board established under section 

9 552a(u) for consideration, the Data Integ10 rity Board shall approve or deny the agree11 ment. 

12 ‘‘(iii) TERMINATION DATE.—An agree13 ment under clause (i)— 

14 ‘‘(I) shall have a termination date 

15 of less than 3 years; and 

16 ‘‘(II) during the 3-month period 

17 ending on the date on which the agree18 ment is scheduled to terminate, may be 

19 renewed by the agencies entering the 

20 agreement for not more than 3 years. 

21 ‘‘(iv) MULTIPLE AGENCIES.—For pur22 poses of this subparagraph, section 

23 552a(o)(1) shall be applied by substituting 

24 ‘between the source agency and the recipient 

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1 ment governing multiple agencies’ for ‘be2 tween the source agency and the recipient 

3 agency or non-Federal agency’ in the matter 

4 preceding subparagraph (A). 

5 ‘‘(v) COST-BENEFIT ANALYSIS.—An 

6 agreement under clause (i) may be entered 

7 without regard to section 552a(o)(1)(B), re8 lating to a cost-benefit analysis of the pro9 posed matching program. 

10 ‘‘(vi) GUIDANCE BY THE OFFICE OF

11 MANAGEMENT AND BUDGET.—Not later than 

12 6 months after the date of enactment of the 

13 Workers’ Compensation Reform Act of 2014, 

14 and in consultation with the Council of In15 spectors General on Integrity and Effi16 ciency, the Secretary of Health and Human 

17 Services, the Commissioner of Social Secu18 rity, and the head of any other relevant 

19 agency, the Director of the Office of Man20 agement and Budget shall— 

21 ‘‘(I) issue guidance for agencies 

22 regarding implementing this subpara23 graph, which shall include standards 

24 for reimbursement costs, when nec25 essary, between agencies; and 


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1 ‘‘(II) establish standards and de2 velop standard matching agreements 

3 for the purpose of improving the proc4 ess for establishing data use or com5 puter matching agreements. 

6 ‘‘(2) COMPLIANCE.—The Secretary, the Post7 master General, and each Inspector General shall en8 sure that any information provided to an individual 

9 or entity under this section is provided in accordance 

10 with protocols established under paragraph (1). 

11 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in this 

12 section shall be construed to affect the rights of an in13 dividual under section 552a(p). 

14 ‘‘(f) REPORT.—Not later than 1 year after the date of 

15 enactment of this section, and annually thereafter for 5 

16 years, the Secretary shall submit a report on the activities 

17 of the Secretary under this section, including implementa18 tion of the Integrity and Compliance Program, to— 

19 ‘‘(1) the Committee on Homeland Security and 

20 Governmental Affairs of the Senate; and 

21 ‘‘(2) the Committee on Oversight and Govern22 ment Reform and the Committee on Education and 

23 the Workforce of the House of Representatives. 

24 ‘‘(g) GAO REVIEW.—The Comptroller General of the 

25 United States shall— 


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1 ‘‘(1) conduct periodic reviews of the Integrity 

2 and Compliance Program; and 

3 ‘‘(2) submit reports on the results of the reviews 

4 under paragraph (1) to the Committee on Homeland 

5 Security and Governmental Affairs of the Senate and 

6 the Committee on Oversight and Government Reform 

7 and the Committee on Education and the Workforce 

8 of the House of Representatives not later than— 

9 ‘‘(A) 2 years after the date of enactment of 

10 this section; and 

11 ‘‘(B) 3 years after submission of the report 

12 under subparagraph (A).’’. 

13 (b) TECHNICAL AND CONFORMING AMENDMENT.—The 

14 table of sections for chapter 81 is amended by inserting after 

15 the item relating to section 8152 the following: 

‘‘8153. Integrity and Compliance Program.’’. 

16 (c) EFFECTIVE DATE.—This section and the amend17 ments made by this section shall take effect on the date of 

18 enactment of this Act. 

19 SEC. 513. AMOUNT OF COMPENSATION. 

20 (a) INJURIES TO FACE, HEAD, AND NECK.—Section 

21 8107(c)(21) is amended— 

22 (1) by striking ‘‘not to exceed $3,500’’ and in23 serting ‘‘in proportion to the severity of the disfigure24 ment, not to exceed $50,000,’’; and 


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1 (2) by adding at the end the following: ‘‘The 

2 maximum amount of compensation under this para3 graph shall be increased on March 1 of each year by 

4 the amount determined by the Secretary of Labor to 

5 represent the percent change in the price index pub6 lished for December of the preceding year over the 

7 price index published for the December of the year 

8 prior to the preceding year, adjusted to the nearest 

9 one-tenth of 1 percent.’’. 

10 (b) FUNERAL EXPENSES.—Section 8134(a) is amend11 ed— 

12 (1) by striking ‘‘$800’’ and inserting ‘‘$6,000’’; 

13 and 

14 (2) by adding at the end the following: ‘‘The 

15 maximum amount of compensation under this sub16 section shall be increased on March 1 of each year by 

17 the amount determined by the Secretary of Labor to 

18 represent the percent change in the price index pub19 lished for December of the preceding year over the 

20 price index published for the December of the year 

21 prior to the preceding year, adjusted to the nearest 

22 one-tenth of 1 percent.’’. 

23 (c) APPLICATION.—The amendments made by this sec24 tion shall apply to injuries or deaths, respectively, occur25 ring on or after the date of enactment of this Act. 


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1 SEC. 514. TERRORISM INJURIES; ZONES OF ARMED CON2 FLICT. 

3 (a) COVERING TERRORISM INJURIES.—Section 

4 8102(b) is amended in the matter preceding paragraph 

5 (1)— 

6 (1) by inserting ‘‘or from an attack by a ter7 rorist or terrorist organization, either known or un8 known,’’ after ‘‘force or individual,’’; and 

9 (2) by striking ‘‘outside’’ and all that follows 

10 through ‘‘1979)’’ and inserting ‘‘outside of the United 

11 States’’. 

12 (b) CONTINUATION OF PAY IN A ZONE OF ARMED CON13 FLICT.—Section 8118, as amended by section 508(b) of this 

14 Act, is amended— 

15 (1) in subsection (b), by striking ‘‘Continuation’’ 

16 and inserting ‘‘Except as provided under subsection 

17 (d)(2), continuation’’; 

18 (2) in subsection (c), as redesignated by section 

19 508(b)(4) of this Act, by striking ‘‘subsection (a)’’ and 

20 inserting ‘‘subsection (a) or (d)’’; and 

21 (3) inserting before subsection (e) the following: 

22 ‘‘(d) CONTINUATION OF PAY IN A ZONE OF ARMED

23 CONFLICT.— 

24 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

25 (a), the United States shall authorize the continuation 


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1 of pay of an employee described in subparagraph (A), 

2 (C), (D), or (F) of section 8101(1), who— 

3 ‘‘(A) files a claim for a period of wage loss 

4 due to an injury in performance of duty in a 

5 zone of armed conflict (as determined by the Sec6 retary of Labor under paragraph (3)); and 

7 ‘‘(B) files the claim for such wage loss ben8 efit with the immediate superior of the employee 

9 not later than 45 days after the later of— 

10 ‘‘(i) the termination of the assignment 

11 of the employee to the zone of armed con12 flict; or 

13 ‘‘(ii) the return of the employee to the 

14 United States. 

15 ‘‘(2) CONTINUATION OF PAY.—Notwithstanding 

16 subsection (b), continuation of pay under this sub17 section shall be furnished for a period not to exceed 

18 135 days without any break in time or waiting pe19 riod, unless controverted under regulations prescribed 

20 by the Secretary of Labor. 

21 ‘‘(3) DETERMINATION OF ZONES OF ARMED CON22 FLICT.—For purposes of this subsection, the Secretary 

23 of Labor, in consultation with the Secretary of State 

24 and the Secretary of Defense, shall determine whether 

25 a foreign country or other foreign geographic area 


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1 outside of the United States (as defined in section 

2 202(a)(7) of the State Department Basic Authorities 

3 Act of 1956 (22 U.S.C. 4302(a)(7)) is a zone of armed 

4 conflict based on whether— 

5 ‘‘(A) the Armed Forces of the United States 

6 are involved in hostilities in the country or area; 

7 ‘‘(B) the incidence of civil insurrection, 

8 civil war, terrorism, or wartime conditions 

9 threatens physical harm or imminent danger to 

10 the health or well-being of United States civilian 

11 employees in the country or area; 

12 ‘‘(C) the country or area has been des13 ignated a combat zone by the President under 

14 section 112(c) of the Internal Revenue Code of 

15 1986; 

16 ‘‘(D) a contingency operation involving 

17 combat operations directly affects civilian em18 ployees in the country or area; or 

19 ‘‘(E) there exist other relevant conditions 

20 and factors.’’. 

21 SEC. 515. TECHNICAL AND CONFORMING AMENDMENTS. 

22 Chapter 81 is amended— 

23 (1) in section 8101(1)(D), by inserting ‘‘for an 

24 injury that occurred before the effective date of section 

25 204(e) of the District of Columbia Self-Government 


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1 and Governmental Reorganization Act (Public Law 

2 93–198; 87 Stat. 783; 5 U.S.C. 8101 note)’’ before the 

3 semicolon; 

4 (2) in section 8139, by inserting ‘‘under this sub5 chapter’’ after ‘‘Compensation awarded’’; and 

6 (3) in section 8148(a), by striking ‘‘section 

7 8106’’ and inserting ‘‘section 8106a’’. 

8 SEC. 516. REGULATIONS. 

9 (a) IN GENERAL.—As soon as possible after the date 

10 of enactment of this Act, the Secretary of Labor shall pro11 mulgate regulations (which may include interim final regu12 lations) to carry out this title. 

13 (b) CONTENTS.—The regulations promulgated under 

14 subsection (a) shall include, for purposes of the amendments 

15 made by sections 502 and 503, clarification of— 

16 (1) what is a claim; and 

17 (2) what is the date on which a period of dis18 ability, for which a claim is made, commences. 

19 SEC. 517. EFFECTIVE DATE. 

20 Except as otherwise provided in this title, this title and 

21 the amendments made by this title shall take effect 60 days 

22 after the date of enactment of this Act. 


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1 TITLE VI—PROPERTY MANAGE2 MENT AND EXPEDITED DIS3 POSAL OF REAL PROPERTY 

4 SEC. 601. SHORT TITLE. 

5 This title may be cited as the ‘‘Federal Real Property 

6 Asset Management Reform Act of 2014’’. 

7 SEC. 602. PURPOSE. 

8 The purpose of this title is to increase the efficiency 

9 and effectiveness of the Federal Government in managing 

10 real property by— 

11 (1) requiring agencies to maintain an up-to-date 

12 inventory of real property; 

13 (2) establishing a Federal Real Property Council 

14 to develop guidance on and ensure the implementa15 tion of strategies for better managing Federal real 

16 property; and 

17 (3) authorizing a pilot program to expedite the 

18 disposal of surplus real property. 

19 SEC. 603. PROPERTY MANAGEMENT AND EXPEDITED DIS20 POSAL OF REAL PROPERTY. 

21 Chapter 5 of subtitle I of title 40, United States Code, 

22 is amended by adding at the end the following: 


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1 ‘‘SUBCHAPTER VII—PROPERTY MANAGEMENT 

2 AND EXPEDITED DISPOSAL OF REAL PROPERTY 

3 ‘‘§ 621. Definitions 

4 ‘‘In this subchapter: 

5 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis6 trator’ means the Administrator of General Services. 

7 ‘‘(2) COUNCIL.—The term ‘Council’ means the 

8 Federal Real Property Council established by section 

9 624(a). 

10 ‘‘(3) DIRECTOR.—The term ‘Director’ means the 

11 Director of the Office of Management and Budget. 

12 ‘‘(4) DISPOSAL.—The term ‘disposal’ means any 

13 action that constitutes the removal of any real prop14 erty from the Federal inventory, including sale, deed, 

15 demolition, or exchange. 

16 ‘‘(5) EXCESS PROPERTY.—The term ‘excess prop17 erty’ means any real property under the control of a 

18 Federal agency that the head of the Federal agency 

19 determines is not required to meet the needs or re20 sponsibilities of the Federal agency. 

21 ‘‘(6) FEDERAL AGENCY.—The term ‘Federal 

22 agency’ means— 

23 ‘‘(A) an executive department or inde24 pendent establishment in the executive branch of 

25 the Government; or 


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1 ‘‘(B) a wholly owned Government corpora2 tion. 

3 ‘‘(7) FIELD OFFICE.—The term ‘field office’ 

4 means any office of a Federal agency that is not the 

5 headquarters office location for the Federal agency. 

6 ‘‘(8) POSTAL PROPERTY.—The term ‘postal prop7 erty’ means any building owned by the United States 

8 Postal Service. 

9 ‘‘(9) SURPLUS PROPERTY.— 

10 ‘‘(A) IN GENERAL.—The term ‘surplus 

11 property’ means excess real property that is not 

12 required to meet the needs or responsibilities of 

13 any Federal agency. 

14 ‘‘(B) EXCLUSIONS.—The term ‘surplus 

15 property’ does not include— 

16 ‘‘(i) any military installation (as de17 fined in section 2910 of the Defense Base 

18 Closure and Realignment Act of 1990 (10 

19 U.S.C. 2687 note; Public Law 101–510)); 

20 ‘‘(ii) any property that is excepted 

21 from the definition of the term ‘property’ 

22 under section 102; 

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1 ment as described in section 

2 3301(a)(5)(C)(iii); 

3 ‘‘(iv) real property operated and main4 tained by the Tennessee Valley Authority 

5 pursuant to the Tennessee Valley Authority 

6 Act of 1933 (16 U.S.C. 831 et seq.); 

7 ‘‘(v) any real property the Director ex8 cludes for reasons of national security; 

9 ‘‘(vi) any public lands (as defined in 

10 section 203 of the Public Lands Corps Act 

11 of 1993 (16 U.S.C. 1722)) administered 

12 by— 

13 ‘‘(I) the Secretary of the Interior, 

14 acting through— 

15 ‘‘(aa) the Director of the Bu16 reau of Land Management; 

17 ‘‘(bb) the Director of the Na18 tional Park Service; 

19 ‘‘(cc) the Commissioner of 

20 Reclamation; or 

21 ‘‘(dd) the Director of the 

22 United States Fish and Wildlife 

23 Service; or 


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1 ‘‘(II) the Secretary of Agriculture, 

2 acting through the Chief of the Forest 

3 Service; or 

4 ‘‘(vii) any property operated and 

5 maintained by the United States Postal 

6 Service. 

7 ‘‘(10) UNDERUTILIZED PROPERTY.—The term 

8 ‘underutilized property’ means a portion or the en9 tirety of any real property, including any improve10 ments, that is used— 

11 ‘‘(A) irregularly or intermittently by the ac12 countable Federal agency for program purposes 

13 of the Federal agency; or 

14 ‘‘(B) for program purposes that can be sat15 isfied with only a portion of the property. 

16 ‘‘§ 622. Duties of Federal agencies 

17 ‘‘Each Federal agency shall— 

18 ‘‘(1) maintain adequate inventory controls and 

19 accountability systems for real property under the 

20 control of the Federal agency; 

21 ‘‘(2) develop current and future workforce projec22 tions so as to have the capacity to assess the needs of 

23 the Federal workforce regarding the use of real prop24 erty; 


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1 ‘‘(3) continuously survey real property under the 

2 control of the Federal agency to identify excess prop3 erty, underutilized property, and other real property 

4 suitable to be used for— 

5 ‘‘(A) colocation with other Federal agencies; 

6 or 

7 ‘‘(B) consolidation with other facilities; 

8 ‘‘(4) promptly report excess property and under9 utilized property to the Administrator; 

10 ‘‘(5) establish goals that will lead the Federal 

11 agency to reduce excess property and underutilized 

12 property in the inventory of the Federal agency; 

13 ‘‘(6) submit to the Council a report on all excess 

14 property and underutilized property in the inventory 

15 of the Federal agency, including— 

16 ‘‘(A) whether underutilized property can be 

17 better utilized; and 

18 ‘‘(B) the extent to which the Federal agency 

19 believes that the underutilized property serves the 

20 needs of the Federal agency to retain underuti21 lized property; 

22 ‘‘(7) adopt workplace practices, configurations, 

23 and management techniques that can achieve in24 creased levels of productivity and decrease the need 

25 for real property assets; 


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1 ‘‘(8) assess leased space to identify space that is 

2 not fully used or occupied; 

3 ‘‘(9) on an annual basis and subject to the guid4 ance of the Council— 

5 ‘‘(A) conduct an inventory of real property 

6 under control of the Federal agency; and 

7 ‘‘(B) make an assessment of each real prop8 erty, which shall include— 

9 ‘‘(i) the age and condition of the prop10 erty; 

11 ‘‘(ii) the size of the property in square 

12 footage and acreage; 

13 ‘‘(iii) the geographical location of the 

14 property, including an address and descrip15 tion; 

16 ‘‘(iv) the extent to which the property 

17 is being utilized; 

18 ‘‘(v) the actual annual operating costs 

19 associated with the property; 

20 ‘‘(vi) the total cost of capital expendi21 tures associated with the property; 

22 ‘‘(vii) sustainability metrics associated 

23 with the property; 

24 ‘‘(viii) the number of Federal employ25 ees and functions housed at the property; 


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1 ‘‘(ix) the extent to which the mission of 

2 the Federal agency is dependent on the 

3 property; 

4 ‘‘(x) the estimated amount of capital 

5 expenditures projected to maintain and op6 erate the property over each of the next 5 

7 years after the date of enactment of this 

8 subchapter; and 

9 ‘‘(xi) any additional information re10 quired by the Administrator to carry out 

11 section 625; and 

12 ‘‘(10) provide to the Council and the Adminis13 trator the information described in paragraph (9)(B) 

14 to be used for the establishment and maintenance of 

15 the database described in section 625. 

16 ‘‘§ 623. Colocation among United States Postal Service 

17 properties 

18 ‘‘(a) IDENTIFICATION OF POSTAL PROPERTY.—Each 

19 year, the Postmaster General may— 

20 ‘‘(1) identify a list of postal properties with 

21 space available for use by Federal agencies; and 

22 ‘‘(2) submit the list to the Council. 

23 ‘‘(b) SUBMISSION OF LIST OF POSTAL PROPERTIES TO

24 FEDERAL AGENCIES.— 


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1 ‘‘(1) IN GENERAL.—Not later than 30 days after 

2 the completion of a list under subsection (a), the 

3 Council shall provide the list to each Federal agency. 

4 ‘‘(2) REVIEW BY FEDERAL AGENCIES.—Not later 

5 than 90 days after the receipt of the list submitted 

6 under paragraph (1), each Federal agency shall— 

7 ‘‘(A) review the list; 

8 ‘‘(B) identify real property assets under the 

9 control of the Federal agency; and 

10 ‘‘(C) recommend colocations if appropriate. 

11 ‘‘(c) TERMS OF COLOCATION.—On approval of the rec12 ommendations under subsection (b) by the Postmaster Gen13 eral and the applicable agency head, the Federal agency or 

14 appropriate landholding entity may work with the Post15 master General to establish appropriate terms of a lease for 

16 each postal property. 

17 ‘‘§ 624. Establishment of a Federal Real Property 

18 Council 

19 ‘‘(a) ESTABLISHMENT.—There is established a Federal 

20 Real Property Council. 

21 ‘‘(b) PURPOSE.—The purpose of the Council shall be 

22 to— 

23 ‘‘(1) develop guidance and ensure implementa24 tion of an efficient and effective real property man25 agement strategy; 


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1 ‘‘(2) identify opportunities for the Federal Gov2 ernment to better manage real property assets; and 

3 ‘‘(3) reduce the costs of managing real property, 

4 including operations, maintenance, and security. 

5 ‘‘(c) COMPOSITION.— 

6 ‘‘(1) IN GENERAL.—The Council shall be com7 posed exclusively of— 

8 ‘‘(A) the senior real property officers of each 

9 Federal agency; 

10 ‘‘(B) the Deputy Director for Management 

11 of the Office of Management and Budget; 

12 ‘‘(C) the Controller of the Office of Manage13 ment and Budget; 

14 ‘‘(D) the Administrator; and 

15 ‘‘(E) any other full-time or permanent part16 time Federal officials or employees, as the Chair17 person determines to be necessary. 

18 ‘‘(2) CHAIRPERSON.—The Deputy Director for 

19 Management of the Office of Management and Budget 

20 shall serve as Chairperson of the Council. 

21 ‘‘(3) EXECUTIVE DIRECTOR.— 

22 ‘‘(A) IN GENERAL.—The Chairperson shall 

23 designate an Executive Director to assist in car24 rying out the duties of the Council. 


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1 ‘‘(B) QUALIFICATIONS; FULL-TIME.—The 

2 Executive Director shall— 

3 ‘‘(i) be appointed from among individ4 uals who have substantial experience in the 

5 areas of commercial real estate and develop6 ment, real property management, and Fed7 eral operations and management; and 

8 ‘‘(ii) serve full time. 

9 ‘‘(d) MEETINGS.— 

10 ‘‘(1) IN GENERAL.—The Council shall meet sub11 ject to the call of the Chairperson. 

12 ‘‘(2) MINIMUM.—The Council shall meet not 

13 fewer than 4 times each year. 

14 ‘‘(e) DUTIES.—The Council, in consultation with the 

15 Director and the Administrator, shall— 

16 ‘‘(1) not later than 1 year after the date of enact17 ment of this subchapter, establish a real property 

18 management plan template, to be updated annually, 

19 which shall include performance measures, specific 

20 milestones, measurable savings, strategies, and Gov21 ernment-wide goals based on the goals established 

22 under section 622(5) to reduce surplus property or to 

23 achieve better utilization of underutilized property, 

24 and evaluation criteria to determine the effectiveness 

25 of real property management that are designed to— 


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1 ‘‘(A) enable Congress and heads of Federal 

2 agencies to track progress in the achievement of 

3 real property management objectives on a Gov4 ernment-wide basis; 

5 ‘‘(B) improve the management of real prop6 erty; and 

7 ‘‘(C) allow for comparison of the perform8 ance of Federal agencies against industry and 

9 other public sector agencies in terms of perform10 ance; 

11 ‘‘(2) develop standard use rates consistent 

12 throughout each category of space and with non13 governmental space use rates; 

14 ‘‘(3) develop a strategy to reduce the reliance of 

15 Federal agencies on leased space for long-term needs 

16 if ownership would be less costly; 

17 ‘‘(4) provide guidance on eliminating inefficien18 cies in the Federal leasing process; 

19 ‘‘(5) compile a list of real property assets that 

20 are field offices that are suitable for colocation with 

21 other real property assets; and 

22 ‘‘(6) not later than 1 year after the date of enact23 ment of this subchapter and annually during the 4- 

24 year period beginning on the date that is 1 year after 

25 the date of enactment of this subchapter and ending 


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1 on the date that is 5 years after the date of enactment 

2 of this subchapter, the Council shall submit to the Di3 rector a report that contains— 

4 ‘‘(A) a list of the remaining excess, surplus, 

5 and underutilized properties of each Federal 

6 agency; 

7 ‘‘(B) the progress of the Council toward de8 veloping guidance for Federal agencies to ensure 

9 that the assessment required under section 

10 622(9)(B) is carried out in a uniform manner; 

11 and 

12 ‘‘(C) the progress of Federal agencies toward 

13 achieving the goals established under section 

14 622(5). 

15 ‘‘(f) CONSULTATION.—In carrying out the duties de16 scribed in subsection (e), the Council shall also consult with 

17 representatives of— 

18 ‘‘(1) State, local, tribal authorities, and affected 

19 communities; and 

20 ‘‘(2) appropriate private sector entities and non21 governmental organizations that have expertise in 

22 areas of— 

23 ‘‘(A) commercial real estate and develop24 ment; 


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1 ‘‘(B) government management and oper2 ations; 

3 ‘‘(C) space planning; 

4 ‘‘(D) community development, including 

5 transportation and planning; and 

6 ‘‘(E) historic preservation. 

7 ‘‘(g) COUNCIL RESOURCES.—The Director and the Ad8 ministrator shall provide staffing, and administrative sup9 port for the Council, as appropriate. 

10 ‘‘§ 625. Federal real property inventory and database 

11 ‘‘(a) IN GENERAL.—Not later than 1 year after the 

12 date of enactment of this subchapter, the Administrator 

13 shall establish and maintain a single, comprehensive, and 

14 descriptive database of all real property under the custody 

15 and control of all Federal agencies. 

16 ‘‘(b) CONTENTS.—The database shall include— 

17 ‘‘(1) information provided to the Administrator 

18 under section 622(10); and 

19 ‘‘(2) a list of real property disposals completed, 

20 including— 

21 ‘‘(A) the date and disposal method used for 

22 each real property; 

23 ‘‘(B) the proceeds obtained from the disposal 

24 of each real property; 


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1 ‘‘(C) the amount of time required to dispose 

2 of the real property, including the date on which 

3 the real property is designated as excess prop4 erty; 

5 ‘‘(D) the date on which the property is des6 ignated as surplus property and the date on 

7 which the property is disposed; and 

8 ‘‘(E) all costs associated with the disposal. 

9 ‘‘(c) ACCESSIBILITY.— 

10 ‘‘(1) COMMITTEES.—The database established 

11 under subsection (a) shall be made available on re12 quest to the Committee on Homeland Security and 

13 Governmental Affairs and the Committee on Environ14 ment and Public Works of the Senate and the Com15 mittee on Oversight and Government Reform and the 

16 Committee on Transportation and Infrastructure of 

17 the House of Representatives. 

18 ‘‘(2) GENERAL PUBLIC.—Not later than 3 years 

19 after the date of enactment of this subchapter and to 

20 the extent consistent with national security, the Ad21 ministrator shall make the database established under 

22 subsection (a) accessible to the public at no cost 

23 through the website of the General Services Adminis24 tration. 


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1 ‘‘§ 626. Limitation on certain leasing authorities 

2 ‘‘(a) IN GENERAL.—Except as provided in subsection 

3 (b), not later than December 31 of each year following the 

4 date of enactment of this subchapter, a Federal agency with 

5 independent leasing authority shall submit to the Council 

6 a list of all leases, including operating leases, in effect on 

7 the date of enactment of this subchapter that includes— 

8 ‘‘(1) the date on which each lease was executed; 

9 ‘‘(2) the date on which each lease will expire; 

10 ‘‘(3) a description of the size of the space; 

11 ‘‘(4) the location of the property; 

12 ‘‘(5) the tenant agency; 

13 ‘‘(6) the total annual rental rate; and 

14 ‘‘(7) the amount of the net present value of the 

15 total estimated legal obligations of the Federal Gov16 ernment over the life of the contract. 

17 ‘‘(b) EXCEPTION.—Subsection (a) shall not apply to— 

18 ‘‘(1) the United States Postal Service; 

19 ‘‘(2) the Department of Veterans Affairs; or 

20 ‘‘(3) any other property the President excludes 

21 from subsection (a) for reasons of national security. 

22 ‘‘§ 627. Expedited disposal pilot program 

23 ‘‘(a) ESTABLISHMENT.—The Director shall establish a 

24 pilot program for disposal of any surplus property by sale, 

25 transfer, or other means. 

26 ‘‘(1) PROPERTIES FOR EXPEDITED DISPOSAL.— 


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1 ‘‘(A) IN GENERAL.—On an annual basis, 

2 the Director may authorize the expedited dis3 posal of not more than 200 surplus properties. 

4 ‘‘(B) PRIORITY.—In determining which 

5 properties to dispose of, the Director shall give 

6 priority to surplus properties that have the high7 est fair market value and the greatest potential 

8 for disposal. 

9 ‘‘(C) COSTS ASSOCIATED WITH DISPOSAL.— 

10 ‘‘(i) IN GENERAL.—The Administrator 

11 may obligate an amount to pay any direct 

12 and indirect costs under section 572 related 

13 to identifying and preparing properties to 

14 be reported as excess property by a Federal 

15 agency. 

16 ‘‘(ii) REIMBURSEMENT.—An amount 

17 obligated under clause (i) shall be paid from 

18 the proceeds of any sale of real property 

19 under this subsection. 

20 ‘‘(iii) NET PROCEEDS.—Net proceeds 

21 shall be distributed under subsection (b). 

22 ‘‘(D) MAXIMUM NET PROCEEDS.—Any real 

23 property authorized for disposal by sale under 

24 subparagraph (A) shall be disposed of in a man25 ner that, as determined by the Administrator in 


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1 consultation with the head of the applicable Fed2 eral agency, is structured and marketed to maxi3 mize the value to the Federal Government. 

4 ‘‘(E) MONETARY PROCEEDS REQUIRE5 MENT.—Surplus property may be disposed of 

6 under this section only if disposal of the prop7 erty will generate monetary proceeds to the Fed8 eral Government that— 

9 ‘‘(i) exceed the costs of disposal of the 

10 property; and 

11 ‘‘(ii) are not less than 90 percent of 

12 fair market value. 

13 ‘‘(F) LOCAL GOVERNMENT NOTIFICATION.— 

14 ‘‘(i) NOTIFICATION.—Not later than 30 

15 days after the date on which the Director 

16 makes the authorization under subpara17 graph (A), the Director shall submit in 

18 writing to the appropriate local government 

19 unit in which the property is located a noti20 fication that includes a list of each applica21 ble property authorized to be disposed of 

22 under subparagraph (A). 

23 ‘‘(ii) REMOVAL FROM PILOT PRO24 GRAM.— 


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1 ‘‘(I) IN GENERAL.—The Director, 

2 at the discretion of the Director, may 

3 remove a property for which notifica4 tion has been provided under clause (i) 

5 from the pilot program established 

6 under subparagraph (A). 

7 ‘‘(II) REPLACEMENT.—For each 

8 property removed from the pilot pro9 gram under subclause (I), the Director 

10 may authorize the expedited disposal of 

11 1 property not originally authorized 

12 under subparagraph (A). 

13 ‘‘(2) APPLICABILITY OF CERTAIN LAW.—Any ex14 pedited disposal of real property conducted under this 

15 section shall not be subject to— 

16 ‘‘(A) any section of An Act Authorizing the 

17 Transfer of Certain Real Property for Wildlife, 

18 or Other Purposes (16 U.S.C. 667b); 

19 ‘‘(B) sections 107 and 317 of title 23; 

20 ‘‘(C) sections 545(b)(8), 550, 553, 554, and 

21 1304(b) of this title; 

22 ‘‘(D) section 501 of the McKinney-Vento 

23 Homeless Assistance Act (42 U.S.C. 11411); 

24 ‘‘(E) section 47151 of title 49; or 


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1 ‘‘(F) section 13(d) of the Surplus Property 

2 Act of 1944 (50 U.S.C. App. 1622(d)). 

3 ‘‘(3) EFFECT.—Except as provided in paragraph 

4 (2), nothing in this subchapter terminates or in any 

5 way limits the authority of any Federal agency under 

6 any other provision of law to dispose of real property. 

7 ‘‘(b) USE OF PROCEEDS.— 

8 ‘‘(1) IN GENERAL.—Of the proceeds received from 

9 the disposal of any real property under this sub10 chapter— 

11 ‘‘(A) not less than 80 percent shall be re12 turned to the general fund of the Treasury for 

13 debt reduction; 

14 ‘‘(B) the lesser of 18 percent or the share of 

15 proceeds otherwise authorized to be retained 

16 under law shall be retained by the Federal agen17 cy that has custody and is accountable for the 

18 real property, subject to paragraph (2); 

19 ‘‘(C) not greater than 2 percent shall be 

20 made available to carry out section 628, subject 

21 to annual appropriations; and 

22 ‘‘(D) any remaining share of the proceeds 

23 shall be returned to the general fund of the 

24 Treasury for Federal budget deficit reduction. 


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1 ‘‘(2) LIMITATION ON USE OF PROCEEDS.—Any 

2 proceeds retained by Federal agencies under this sec3 tion shall be— 

4 ‘‘(A) deposited into the appropriate real 

5 property account of the Federal agency that had 

6 custody and accountability for the real property, 

7 with the funds expended only as authorized in 

8 annual appropriations Acts; 

9 ‘‘(B) used— 

10 ‘‘(i) by not later than 2 years after the 

11 date of disposal of the real property; and 

12 ‘‘(ii) only for activities relating to Fed13 eral real property asset management and 

14 disposal; and 

15 ‘‘(C) if not used by the date described in 

16 subparagraph (B)(i), shall be deposited in the 

17 Treasury and used for Federal budget deficit re18 duction. 

19 ‘‘(c) PUBLIC BENEFIT.— 

20 ‘‘(1) CONVEYANCE.—Except as provided in para21 graph (2), if a real property authorized to be disposed 

22 of under subsection (a) has not been disposed of by the 

23 date that is 2 years after the date the property is list24 ed for sale, the Director, in consultation with the Ad25 ministrator and the Secretary of Housing and Urban 


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1 Development, may consider a request from the dis2 posing Federal agency that the real property be con3 veyed to State and local governments or nonprofit or4 ganizations for various public purposes or uses as 

5 permitted by applicable law. 

6 ‘‘(2) PREDOMINANT USE AND SIZE STAND7 ARDS.— 

8 ‘‘(A) IN GENERAL.—Any real property au9 thorized to be disposed of under subsection (a) 

10 shall not be conveyed under paragraph (1) if— 

11 ‘‘(i) the predominant use of the prop12 erty is not for housing; and 

13 ‘‘(ii)(I) the area of the property is not 

14 less than 25,000 square feet; or 

15 ‘‘(II) the appraised fair market value 

16 of the property is greater than $1,000,000. 

17 ‘‘(B) APPRAISED FAIR MARKET VALUE.— 

18 The appraised fair market value described in 

19 subparagraph (A)(ii)(II) shall be determined by 

20 the Federal agency with custody or control of the 

21 property, in consultation with the Administrator 

22 and standard appraisal practice. 

23 ‘‘(d) ENFORCEMENT.— 

24 ‘‘(1) INCREASE IN SIZE OF INVENTORY.—Except 

25 as provided in paragraph (2), if a Federal agency 


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1 fails to make available for public sale the real prop2 erty authorized for disposal under subsection (a) by 

3 the date that is 18 months after the date on which the 

4 authorization is made, that Federal agency, except for 

5 specific exceptions promulgated by the Director, shall 

6 not increase the size of the civilian real property in7 ventory, unless the square footage of the increase is 

8 offset, within an appropriate time as determined by 

9 the Director, through consolidation, colocation, or dis10 posal of another building space from the inventory of 

11 that Federal agency. 

12 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 

13 apply to a Federal agency that acquires any real 

14 property not under the administrative jurisdiction of 

15 the Federal Government, by sale or lease, until the 

16 Director submits a certification to Congress of the dis17 posal of all of those surplus properties. 

18 ‘‘(e) TERMINATION OF AUTHORITY.—The authority 

19 provided by this section terminates on the date that is 5 

20 years after the date of enactment of this subchapter. 

21 ‘‘§ 628. Homeless assistance grants 

22 ‘‘(a) DEFINITIONS.—In this section: 

23 ‘‘(1) ELIGIBLE NONPROFIT ORGANIZATION.—The 

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1 profit organization that is a representative of the 

2 homeless. 

3 ‘‘(2) HOMELESS.—The term ‘homeless’ has the 

4 meaning given the term in section 103 of the McKin5 ney-Vento Homeless Assistance Act (42 U.S.C. 11302), 

6 except that subsection (c) of that section shall not 

7 apply. 

8 ‘‘(3) PERMANENT HOUSING.—The term ‘perma9 nent housing’ has the meaning given the term in sec10 tion 401 of the McKinney-Vento Homeless Assistance 

11 Act (42 U.S.C. 11360). 

12 ‘‘(4) PRIVATE NONPROFIT ORGANIZATION.—The 

13 term ‘private nonprofit organization’ has the mean14 ing given the term in section 401 of the McKinney15 Vento Homeless Assistance Act (42 U.S.C. 11360). 

16 ‘‘(5) REPRESENTATIVE OF THE HOMELESS.—The 

17 term ‘representative of the homeless’ has the meaning 

18 given the term in section 501(i) of the McKinney19 Vento Homeless Assistance Act (42 U.S.C. 11411(i)). 

20 ‘‘(6) SECRETARY.—The term ‘Secretary’ means 

21 the Secretary of Housing and Urban Development. 

22 ‘‘(7) TRANSITIONAL HOUSING.—The term ‘transi23 tional housing’ has the meaning given the term in 

24 section 401 of the McKinney-Vento Homeless Assist25 ance Act (42 U.S.C. 11360). 


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1 ‘‘(b) GRANT AUTHORITY.— 

2 ‘‘(1) IN GENERAL.—To the extent amounts are 

3 made available under section 627(b)(1)(C) for use 

4 under this section, the Secretary shall make grants to 

5 eligible private nonprofit organizations through the 

6 continuum of care program established under subtitle 

7 C of title IV of the McKinney-Vento Homeless Assist8 ance Act (42 U.S.C. 11381 et seq.), to purchase real 

9 property suitable for use to assist the homeless in ac10 cordance with subsection (c). 

11 ‘‘(2) TERMS AND CONDITIONS.—Except as other12 wise provided in this section, a grant under this sec13 tion shall be subject to the same terms and conditions 

14 as a grant under the continuum of care program es15 tablished under subtitle C of title IV of the McKinney16 Vento Homeless Assistance Act (42 U.S.C. 11381 et 

17 seq.). 

18 ‘‘(c) USE OF PROPERTIES FOR HOUSING OR SHELTER

19 FOR THE HOMELESS.— 

20 ‘‘(1) ELIGIBLE USES.—An eligible private non21 profit organization that receives a grant under sub22 section (b) shall use the amounts received only to pur23 chase or rehabilitate real property to provide perma24 nent housing, transitional housing, or temporary shel25 ter to the homeless. 


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1 ‘‘(2) TERM OF USE.—The Secretary may not 

2 make a grant under subsection (b) to an eligible pri3 vate nonprofit organization unless the eligible private 

4 nonprofit organization provides to the Secretary such 

5 assurances as the Secretary determines necessary to 

6 ensure that any real property purchased or rehabili7 tated using amounts received under the grant is used 

8 only for the purposes described in paragraph (1) for 

9 a period of not less than 15 years. 

10 ‘‘(d) PREFERENCE.—In awarding grants under sub11 section (b), the Secretary shall give preference to eligible 

12 private nonprofit organizations that operate within areas 

13 in which Federal real property is being sold under the dis14 posal program authorized under section 627. 

15 ‘‘(e) REGULATIONS.—The Secretary may promulgate 

16 such regulations as are necessary to carry out this section.’’. 

17 SEC. 604. REPORT OF THE COMPTROLLER GENERAL. 

18 (a) DRAFT.—Not later than 3 years after the date of 

19 enactment of this Act, the Comptroller General of the United 

20 States shall submit to Congress a draft report on the expe21 dited disposal pilot program established by the amendments 

22 made by section 3. 

23 (b) FINAL.—Not later than 5 years after the date of 

24 enactment of this Act, the Comptroller General of the United 

25 States shall submit to Congress a final report on the expeVerDate Mar 15 2010 04:57 Aug 01, 2014 Jkt 039200 PO 00000 Frm 00435 Fmt 6652 Sfmt 6203 E:\BILLS\S1486.RS S1486

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1 dited disposal pilot program established by the amendments 

2 made by section 3. 

3 SEC. 605. TECHNICAL AND CONFORMING AMENDMENT. 

4 The table of sections for chapter 5 of subtitle I of title 

5 40, United States Code, is amended by inserting after the 

6 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.’’. 


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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 


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